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Ripon approves MOU with SSJID as retail electric project moves toward court proceedings
Summary
Council approved a memorandum of understanding with South San Joaquin Irrigation District, which commits SSJID to 2.5% of gross revenues in lieu of franchise fees and signals continued coordination while an eminent‑domain case proceeds; SSJID said the CPUC has deferred review pending court resolution.
The Ripon City Council approved a memorandum of understanding (MOU) with the South San Joaquin Irrigation District (SSJID) on Nov. 10 that formalizes SSJID’s commitment to make payments in lieu of franchise fees as the district pursues a retail electric project.
City Administrator Kevin summarized the MOU as confirming SSJID’s obligation to pay a 2.5% share of gross retail revenues to backfill lost franchise-fee or tax revenue once SSJID secures possession and ownership of distribution assets. "Once SSJID secures possession and ownership of the electric distribution system, the city will work with SSJID to enter into a more formal agreement," Kevin said.
Peter, speaking for SSJID, updated the council on regulatory and legal steps. He said the California Public Utilities Commission (CPUC) issued a proposed decision on Oct. 30 that would dismiss PG&E’s application for commission review until the San Joaquin County Superior Court resolves the eminent‑domain case. Peter said the commission’s proposed action means the CPUC would evaluate the project’s public‑interest implications only after the court determines whether SSJID can acquire PG&E’s assets. "Barring any appeal by PG&E of the PUC's decision, we will find that out by the seventeenth," Peter said, and SSJID hopes to return to trial as soon as 2026.
Council members asked whether existing net‑metering agreements for solar customers would be honored; Peter responded that SSJID expects to honor current net‑metering agreements "for the term of those agreements." The council moved and seconded approval of the MOU; the transcript records the motion and second but does not show a roll‑call tally.
The MOU reiterates financial commitments required by LAFCO (the Local Agency Formation Commission) and lays groundwork for future negotiations on how SSJID would provide electric service within Ripon should SSJID acquire distribution assets. The item is a procedural but important step in the district’s long‑running bid to provide locally owned electric service and to ensure the city’s fiscal interests are addressed while legal proceedings continue.
