There was a near consensus at the local utility organization’s meeting Tuesday: it’s a step forward and about time.
The Imperial Irrigation District Board of Directors showed support for an economic-based wheeling rate, the first district officials say they have ever seen. However, a vote will have to wait 60 days while the district gets stakeholder input on an adjusted charge on renewable energy developers, said Chief Financial Officer Greg Broeking.
Concerns have been raised about the wheeling rate — a charge to transport electricity across IID power lines to areas outside the district’s service area — specifically about whether the district’s fee would be “pancaked” on to the California Independent System Operator’s existing rate.
The district initially hired R.W. Beck to perform a cost-of-service study to develop an open access transmission tariff. Recommendations were made, but the board was concerned about the validity of the study. Exeter was hired to review it and further analyze other rate design options.
Exeter’s main recommendation was to develop an economic-based rate that provides the best results for the least cost, Broeking said. As far as Broeking said he knows no other utility provides economic development rate for wheeling the energy.
The rate proposed would increase the wholesale transmission rate cost from $3.29 per megawatt-hour to $3.94 per megawatt-hour. It’s a smaller rate than the California Independent System Operator’s $6.82 per megawatt-hour.
While it doesn’t eliminate the “pancaking” effect, the district hopes to mitigate it substantially, Broeking said.
Bringing in an economic-based rate allows developers within the district’s area to be on a level playing field with others outside the area because their costs aren’t as high, said General Manager Kevin Kelley. The developers, district and ratepayers will all be better off, as the electrical system will be more robust and jobs will be created at the projects.
“If it is ultimately approved by your board in roughly 60 days, it will serve as tangible proof that IID is seriously committed to the planned expansions of its transmission system, which can only be realized if the renewable generation projects in its queue are able to compete on an equal economic footing with those that now bypass the district,” he said.
A wheeling rate has been one of the major issues that developers have talked about, said Imperial Valley Economic Development Corp. President and CEO Timothy Kelley. The group has tried to attract them to the area.
He added he’s very happy to see it moving forward.
While board members supported putting in an economic-based wheeling rate, there were still concerns expressed at Tuesday’s meeting.
“I kind of see this as kicking the field goal when the time’s about the expire,” said Director Jim Hanks, adding that he had asked for a task force awhile back to find a wheeling rate.
This area is going to have the development, and it’s important something like this go into place, he said. The wheeling rate should have been brought forward a year ago.
Director Stella Mendoza agreed.
“I’m glad it’s going forward, but I’m disappointed with the time it’s taken to move forward,” she said. “Let’s make sure it doesn’t happen again.”
Board President John Pierre Menvielle said he was pleased that Kelley and Broeking had brought this forward.
“It’s economic development,” he said. “It will help with job creation.”
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
Meeting glance
Here are five things that happened at Tuesday’s Imperial Irrigation District Board of Directors meeting
1 — New enhancements may go into place for low-income residential assistance programs, including lowering the senior age from 65 to 62, increase summer and winter pledges up to $300 and $200, respectively, and adjust income guidelines.
2 — District Energy Department Controller Sondra Ainsworth presented the monthly energy cost adjustment update for January, showing that another $3 million has been overcollected since the ECA rate was lowered Jan. 1, bringing it from 4.19 cents to 3.24 cents per kilowatt-hour. The Board of Directors is set to review the rate at the end of the first quarter of the year to see if it needs to be reduced.
3 — The board voted to write off $2.4 million in uncollectible energy account funds, though members asked the auditing department to look into repeating accounts.
4 — The board approved a major work authorization to contract with Griffon-Lyon Program and Construction Managers LLS to create a site master map, architectural designs, construction blueprints and more for a new headquarter facility for the district.
5 — Betty Voroveanu was named chief internal auditor for the district during the closed session report given Tuesday afternoon. Voroveanu replaces Tom Kaiser, former chief auditor.
The Imperial Irrigation District Board of Directors showed support for an economic-based wheeling rate, the first district officials say they have ever seen. However, a vote will have to wait 60 days while the district gets stakeholder input on an adjusted charge on renewable energy developers, said Chief Financial Officer Greg Broeking.
Concerns have been raised about the wheeling rate — a charge to transport electricity across IID power lines to areas outside the district’s service area — specifically about whether the district’s fee would be “pancaked” on to the California Independent System Operator’s existing rate.
The district initially hired R.W. Beck to perform a cost-of-service study to develop an open access transmission tariff. Recommendations were made, but the board was concerned about the validity of the study. Exeter was hired to review it and further analyze other rate design options.
Exeter’s main recommendation was to develop an economic-based rate that provides the best results for the least cost, Broeking said. As far as Broeking said he knows no other utility provides economic development rate for wheeling the energy.
The rate proposed would increase the wholesale transmission rate cost from $3.29 per megawatt-hour to $3.94 per megawatt-hour. It’s a smaller rate than the California Independent System Operator’s $6.82 per megawatt-hour.
While it doesn’t eliminate the “pancaking” effect, the district hopes to mitigate it substantially, Broeking said.
Bringing in an economic-based rate allows developers within the district’s area to be on a level playing field with others outside the area because their costs aren’t as high, said General Manager Kevin Kelley. The developers, district and ratepayers will all be better off, as the electrical system will be more robust and jobs will be created at the projects.
“If it is ultimately approved by your board in roughly 60 days, it will serve as tangible proof that IID is seriously committed to the planned expansions of its transmission system, which can only be realized if the renewable generation projects in its queue are able to compete on an equal economic footing with those that now bypass the district,” he said.
A wheeling rate has been one of the major issues that developers have talked about, said Imperial Valley Economic Development Corp. President and CEO Timothy Kelley. The group has tried to attract them to the area.
He added he’s very happy to see it moving forward.
While board members supported putting in an economic-based wheeling rate, there were still concerns expressed at Tuesday’s meeting.
“I kind of see this as kicking the field goal when the time’s about the expire,” said Director Jim Hanks, adding that he had asked for a task force awhile back to find a wheeling rate.
This area is going to have the development, and it’s important something like this go into place, he said. The wheeling rate should have been brought forward a year ago.
Director Stella Mendoza agreed.
“I’m glad it’s going forward, but I’m disappointed with the time it’s taken to move forward,” she said. “Let’s make sure it doesn’t happen again.”
Board President John Pierre Menvielle said he was pleased that Kelley and Broeking had brought this forward.
“It’s economic development,” he said. “It will help with job creation.”
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
Meeting glance
Here are five things that happened at Tuesday’s Imperial Irrigation District Board of Directors meeting
1 — New enhancements may go into place for low-income residential assistance programs, including lowering the senior age from 65 to 62, increase summer and winter pledges up to $300 and $200, respectively, and adjust income guidelines.
2 — District Energy Department Controller Sondra Ainsworth presented the monthly energy cost adjustment update for January, showing that another $3 million has been overcollected since the ECA rate was lowered Jan. 1, bringing it from 4.19 cents to 3.24 cents per kilowatt-hour. The Board of Directors is set to review the rate at the end of the first quarter of the year to see if it needs to be reduced.
3 — The board voted to write off $2.4 million in uncollectible energy account funds, though members asked the auditing department to look into repeating accounts.
4 — The board approved a major work authorization to contract with Griffon-Lyon Program and Construction Managers LLS to create a site master map, architectural designs, construction blueprints and more for a new headquarter facility for the district.
5 — Betty Voroveanu was named chief internal auditor for the district during the closed session report given Tuesday afternoon. Voroveanu replaces Tom Kaiser, former chief auditor.
