Oakdale council authorizes feasibility study on switching electric service to Modesto Irrigation District

The Oakdale City Council voted unanimously, 5-0, to direct staff to solicit proposals for a feasibility study to evaluate consolidation of electric service under Modesto Irrigation District (MID).

Interim City Manager Jerry Romar summarized the staff presentation, saying Oakdale currently has two electric providers — Modesto Irrigation District and Pacific Gas and Electric — and that differences in rate structures have created disparities among residents. Romar presented a residential-rate comparison prepared for the council: he said PG&E’s current example rates run roughly 40 cents per kilowatt-hour off-peak and 63 cents peak under the cited structure, while MID’s blended example was about 18 cents for the first 500 kWh and about 21 cents thereafter for an 850-kWh household. Using the city’s calculation, Romar said an 850 kWh household would pay about $5,000 annually under PG&E and about $2,000 under MID — a $3,000 annual savings per household — and estimated roughly $21.6 million in annual savings citywide for about 7,000 households on PG&E (excluding subdivisions already on MID).

Romar emphasized the item before council was a direction to solicit proposals for a feasibility study; he estimated initial consultant costs for a feasibility study at $50,000 to $75,000 and said MID would separately require a system-impact study and a facility study, each roughly $50,000, should the city proceed beyond feasibility. Romar told the council those additional MID studies are not part of the initial feasibility step.

A representative from Pacific Gas and Electric, Eric Alvarez of PG&E Local Government Affairs (Stockton Division), urged caution and described the municipalization process as complex and costly. Alvarez said PG&E is not interested in negotiating a sale and warned cities that pursue acquisition often commit substantial resources; he asked for an accurate rate comparison and said he would work with staff to provide updated numbers. "We are proud to serve electricity to our customers in the City of Oakdale," Alvarez said, adding PG&E is working to reduce rates and citing company-wide initiatives to cut costs.

Residents and local business owners spoke in favor of moving the question forward. One resident described MID bills she pays and said the change could meaningfully reduce costs for low-income households and small businesses that face high PG&E bills. Council members expressed strong support for at least pursuing a feasibility study but noted the process could be lengthy and that MID or regulators might ultimately determine a consolidation is not feasible.

The motion approved directs staff to contact consultant firms for proposals to conduct a feasibility study and return to council with proposed costs and timelines; council approved the direction by roll call (Mayor Pro Tem Smith, Council members Gilbert, Potassie, Kettering, and Mayor Sherilyn Berrios voted yes).