PG&E raised rates six times in 2024.

South San Joaquin Irrigation District had one rate hike rate.

And in the past 10 years, PG&E rates have increased more than two dozen times with the bottom line of electricity costing 101 percent more.

SSJID has increased irrigation rates twice in the same time frame but actually hadn’t increased rates for more than 20 years.

Although its water versus electricity, it underscores the approach of non-profit public utilities versus for-profit utilities.

“Public utilities tend to raise rates as needed,” noted SSJID General Manager Peter Reitkerk.

Reitkerk said that is because public utilities have a higher level of accountability given voters have the power to elect and remove those serving on governing boards.

It tends to mean more attention is paid to maintenance and how money is spent which avoids major issues from developing as PG&E had with its failing infrastructure in wildfire zones.

The financial impact SSJID could have on the economies of Manteca, Ripon, and Escalon as well as surrounding farmland is back before the Manteca City Council when they meet tonight at 6 p.m.

Not only will SSJID initially reduce retail electricity costs by 15 percent, but they will make sure the three cities along with San Joaquin County won’t take a revenue hit if the irrigation district is successful at acquiring PG&E local distribution system.

The council is being asked to approve a memorandum of understanding that locks in SSJID paying 2.5 percent of its retail power gross receipts collected within each of the entities to replace franchise fees and property taxes the cities would lose when PG&E no longer provides retail power within district boundaries.

As a government agency, SSJID is not required to pay property taxes or franchise fees.

The SSJID board from the start vowed to keep local agencies whole as well as pass on the same 15 percent in electricity rate savings the private sector will receive.

PG&E — in a bid to derail SSJID’s effort to exercise its right within the state constitution to acquire the local retail distribution grid — challenged the proposal in court.

The for-profit PG&E argued what SSJID proposed to keep the cities and county whole would be an unconstitutional tax, a gift of public money, and couldn’t be imposed without voter approval.

The court disagreed with PG&E on all three counts, as they dismissed the challenge.

 SSJID is now three steps away from its bid to become the local retail electricity provide by obtaining the PG&E distribution infrastructure.

Originally a “right to take” trial was scheduled in San Joaquin County Court this June.

But PG&E won a motion that basically requires the California Public Utilities Commission to weigh in first.

After that, a  “right to take” before a judge would take place.

If the judge agrees, SSJID meets the state’s constitutional parameters for irrigation districts to use eminent domain for the public good, the last hurdle will then by a court proceeding to establish the price for acquiring the local retail system.

Once the district clears the right to take hurdle, the SSJID can start hiring to ramp up its retail power service.

In 2016, the district did an economic assessment that indicated SSJID providing retail power within its boundaries, that PG&E customers would save $15.5 million a year or $174 million over a decade.

The study will be updated.

Given PG&E has increased rates 101 percent since 2016, the overall dollar amount retail customers in Manteca, Ripon, and Escalon will save will likely rise significantly beyond $15.5 million annually.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com