Oakdale council approves $75,000 feasibility study on switching from PG&E to Modesto Irrigation District

Oakdale City Council unanimously approved a $75,000 feasibility study to evaluate whether transitioning electricity service from Pacific Gas & Electric (PG&E) to Modesto Irrigation District (MID) is feasible logistically and financially.

Staff presented a proposal from Bell Burnett & Associates and said the firm was recommended for its experience in utility feasibility work. The study will examine technical, legal, operational and financial requirements of a potential transition. Staff noted earlier council direction to obtain consultant recommendations and said the $75,000 would be funded from general-fund contract services in the next fiscal year. Staff also said additional studies may be required later — for example, MID would likely require a system-impact and facility study at an estimated cost of about $50,000 if the city moved to that stage.

Public comment and council discussion split. A PG&E representative, Erica Cabrera, asked the council to delay authorization until PG&E’s scheduled briefings with council members and staff the next day so the utility could share information about costs, rate structure differences between investor-owned and public utilities, and long-term obligations (including eminent-domain and right-of-way considerations). Cabrera said PG&E is working to lower customer costs where possible and warned that municipalization is a large, long-term undertaking that could carry significant costs and risks.

Several residents and council members urged the study, citing steep recent electricity-bill increases and the possible long-term benefit to residents if local public power could provide lower rates. Council members and public speakers also raised logistical concerns: right-of-way and easement negotiations, the time required to extend MID infrastructure to serve PG&E customers (one council member said this can take 10–12 years in some cases), and the need for new substation capacity (staff said MID serves Oakdale from an older substation at the old Hershey building and that additional substation capacity could be required).

Council members said the feasibility study is a first step to determine whether municipalization is realistic; staff noted consultants could also conclude the effort is not feasible. Staff told council the consultant would examine multiple strategies, including whether new developments or annexed areas could be connected to MID before PG&E infrastructure is extended. Council passed the $75,000 agreement and authorized the city manager to execute the contract; several council members noted staff could pause or delay the agreement if new information surfaced from the scheduled PG&E meetings.