IID OKs new rate for some users
On Tuesday the Imperial Irrigation District Board of Directors voted to approve the creation of a new customer class for large agricultural commercial customers who were disproportionately affected by the demand rate increase, which was the result of the rate increase starting in 2015.
The subcategory of customers affected is made of 47 customers in the Imperial Valley and 30 more from the Coachella Valley.
IID previously held two public hearings on the proposed change to the customer class in El Centro on May 10 and in La Quinta on May 17.
Executive Director of the Imperial Valley Vegetable Growers Association Executive Director Kay Day Pricola, who had submitted questions in writing, asked during the meeting about the number of customers affected by the change and how it would impact IID’s revenue.
“This issue was brought to the attention of the board and staff as early as September of 2015,” Pricola said. “This is one of those unintended consequences, where the demand charge really has significant impact on the users.”
General Manager Kevin Kelley said that the class would see a rate decrease and Chief Financial Officer Belen Valenzuela said that the change would mean a $250,000 loss in revenue annually for IID.
President of El Toro Export Bill Plourd also spoke to the board about the unique situation his business was in. He said that they have three large commercial accounts with IID, which are backed up with solar power.
He asked the board and staff to take a closer look at their business to identify the best way to help them.
“We have a unique setup with our solar power systems. They don’t particularly help nearly to the same degree those of us that have solar backing, that is the concern I have today,” Plourd said.
Division 2 Director Bruce Kuhn asked if there was a way to grandfather customers in a similar situation such as Plourd into the proposal they were about to vote on. President of the board Norma Sierra Galindo clarified that that would have to be handled as a separate action item to be scheduled at a later date.
Pricola also asked the board to consider rolling back the proposed rate schedule from July 1 to at least Jan. 1, 2016, or to Jan. 1, 2015, if possible.
“We certainly are appreciative of the effort and hopefully the approval of moving this to a unique class to address that,” Pricola said. “I would however say that it has been a tedious process through probably no one’s fault at all other than changes, but the folks who had been paying this additional charge shouldn’t be penalized because you had some reorganizational structures.”
Valenzuela said that rolling back the date to Jan. 1 would result in an additional $125,000 loss in revenue for IID.
The board voted 4-0 in favor of the new rate changes for the sub category of customers which demand charge will go down to $6.75 per kilowatt starting on July 1. Division 4 Director Stephen Benson abstained from the voting since he could be one of the customers affected by the decision.