Modesto Irrigation District gives all customers a reason to smile | Opinion
The Modesto Bee’s Feb. 27 editorial “MID power rate payers kicked in the teeth again” mischaracterized outcomes and customer impacts of the recent Stanislaus County Superior Court’s ruling regarding Modesto Irrigation District’s rates.
At MID, we opened our accounting books, shared all our financial records, hired third-party independent experts to review our processes and prepare a Cost of Service Study (COSS) and devoted significant staff resources to reaffirm and reassure our customers about our ratemaking practices. Ultimately, this investment paid off — the court agreed with MID’s methodology and dismissed claims of a rates subsidy.
To quote the judge’s ruling, “if there is one thing the court and the parties can all agree on, it would likely be that utility ratemaking is not a simple process. Ratemaking review — which is essentially what the court must do here — is slightly easier, if only because the court may rely on experts to inform its review. Here, the court found MID’s experts — those experts who actually prepared the 2018 COSS — more credible.”
We did this work to not only prove our credibility and transparency with the court, but most importantly we did it for our customers.
Missing from the Bee editorial regarding MID rates was the inherent value MID — a community-owned, public utility — brings to our customers and the region. We provide a superior level of service to those who live and do business here.
Locally owned and operated. MID rates are set locally by a customer-elected board in open public meetings. No one has to go to San Francisco, Sacramento or Washington, D.C., to influence our energy and water decisions.
Customers can participate in board meetings and are invited to provide input regarding all aspects of MID’s service, including rates, reliability, programs and customer service.
Lowest rates in California. MID is a not-for-profit organization. Since MID isn’t owned by stockholders, no dividends or profits are added to our rates. We provide the highest level of water and power services at some of the lowest costs in the state. With MID as your publicly owned utility, approximately $335 million a year stays in your community versus going in the pockets of investor-owned utilities like PG&E.
There are communities and businesses on the outskirts of MID’s service area served by PG&E that envy our rates, reliability and the security of being an MID customer.
Lights stay on and the water flows. During recent record-breaking heatwaves and storms, MID customers weren’t left in the dark unlike others across the state. MID invests heavily in maintenance and capital improvements to provide a greater level of reliability — ensuring power is there when you need it — all while keeping rates as low as possible.
MID’s prudent water management practices and innovation have ensured our farmers receive ample water supplies to grow the food that feeds your families and families across the nation.
Also, our state-of-the art water treatment plant provides clean, safe treated drinking water to the city of Modesto.
Long-standing commitment to customers. MID has been a community partner, leader and service provider for more than 135 years. The district was founded on a commitment to effectively serve our customers and this holds true today.
We’re proud that the court recognized and upheld our local authority to carry on this commitment. This and the immense value MID consistently delivers give our customers reasons to smile.
Ed Franciosa is general manager of the Modesto Irrigation District.
