Not only will South San Joaquin Irrigation District initially reduce retail electricity costs by 15 percent, but they will make sure the cities of Manteca, Ripon, and Escalon along with San Joaquin County won’t take a revenue hit.
It means the SSJID will pay 2.5 percent of its retail power gross receipts collected within each of the entities to replace franchise fees and property taxes they 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.
The SSJID board Tuesday is expected to approve a memorandum of understanding assuring San Joaquin County that when the irrigation district takes over the PG&E retail system the county will have the same deal as the cities have already been given.
SSJID is now just two steps away from its bid to become the local retail electricity provide by obtaining the PG&E distribution infrastructure.
The first step is a “right to take” trial scheduled before a judge in 2025.
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.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
