The recent ECA activity

In response to questions about the Imperial Irrigation District’s Energy Cost Adjustment billing factor, here is what has transpired:

In December 2021, the IID Board of Directors approved the 2022 monthly ECA based on an approved Fuel and Purchased Power budget of $316 million.

In April 2022, the board approved a Fuel and Purchased Power amendment, reducing the approved budget from $316 million to $302 million. Actual expenses for the first quarter of 2022 were lower than budgeted, and through this action, the board formally reduced this budget by $14 million for the rest of the year.

Based on forecast budgeted expenses for the balance of 2022, energy staff presented a potential further reduction of $9 million to the Fuel and Purchased Power budget.

At the April 19 board meeting, the IID board approved reducing the 2022 ECA starting in May and through the rest of 2022, reflecting the forecasted Fuel and Purchased Power Budget of $293 million.

Staff will continue to submit monthly ECA adjustment proposals for the board’s consideration. These adjustments will reflect actual expenses incurred and result in a zero ECA account balance at the end of 2022. –Henry Martinez, IID general manager