By Alex Breitler/Record Staff Writer
MANTECA - A water district's plan to oust Pacific Gas and Electric Co. as the south county's electrical provider is economically feasible, according to a new independent report.
The municipal services review and an accompanying draft environmental impact report signal the start of the next round of an ongoing feud between the South San Joaquin Irrigation District and PG&E, which have battled eight years for the right to serve homes and businesses in Manteca, Ripon and Escalon.
The latest report, written for the San Joaquin Local Agency Formation Commission by the consulting firm Mintier Harnish, relies on a disputed finding earlier this year that the irrigation district greatly underestimated the annual cost of the takeover.
Nevertheless, the new report concludes: "Based on an assessment of SSJID's existing budget and projected budget, it is anticipated that the district has the financial ability to continue providing its existing services (i.e., irrigation, water and drainage) and to provide retail electric services."
Jeff Shields, manager of South San Joaquin, said that conclusion was expected.
"We saw the (earlier) report, and I think we were surprised," he said. "But it really does paint a worst-case scenario."
It is important to remember, Shields said, that the district board reserves the option not to purchase the system if it does end up being too expensive.
A PG&E spokeswoman said the utility is "thoroughly reviewing" both of the new documents, which have been posted to the LAFCO website.
The water district suffered a setback last February when a different consultant determined that the district's estimate of $1.6 million per year to take over the PG&E system was too low. The actual cost would be $15 million per year, PA Consulting Group found.
The district disputed the methodology used in that report, but said that even if the cost is higher than expected, it will still be able to offer customers lower rates than PG&E. That's because the district will have $20.1 million in annual revenue from hydroelectric power generated by three dams on the Stanislaus River to absorb the higher cost, the district says.
The point of the newest reports is to provide LAFCO the information it needs to make a decision whether to accept the irrigation district's proposal, said James Glaser, commission's executive officer. While the Mintier Harnish report finds the district's proposal to be financially feasible, there will also be other factors to consider, Glaser said.
The irrigation district paid for the report, but LAFCO provided oversight and the report is considered an independent document, Glaser said.
He said a workshop will be held to discuss the matter at LAFCO's regular meeting at 10 a.m. on Jan. 20 in the county Board of Supervisors chambers in downtown Stockton.
A decision could come next spring or summer.
Contact reporter Alex Breitler at (209) 546-8295 or abreitler@recordnet.com. Visit his blog at recordnet.com/breitlerblog. See this entire article
I hope everything gets sorted out, and I really hope it leads to much rower rates...
Posted by: Well Pump Service | December 19, 2011 at 09:47 AM
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Eco-Vets!
They will hire vets to install low flush toilets. A Vet can have a well paying job and 9000 gallons of water per year will be saved! They can hire wounded worriors too.
Eco-Vets:
http://www.indiegogo.com/Eco-Vets-We-Will-Hire-Vets-To-Install-Low-Flush-Toilets
Posted by: Nancy Myers | December 30, 2011 at 05:30 AM
I feel everyone who is involved would benefit from this situation. It may be a big purchase but it would save consumers money. Let alone the company would also make money.
Posted by: Home Water Filter | February 20, 2012 at 06:06 PM