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Coachella council creates electric financing authority with IID to fast‑track substations; surcharge not set tonight
Summary
The council approved a joint powers agreement to form the Coachella Electric Financing Authority with Imperial Irrigation District to finance electric infrastructure via bonds and a surcharge collected by IID. The vote creates the authority; any surcharge and project approvals will come later with IID consent required for certain actions.
The Coachella City Council voted on March 11 to form a Coachella Electric Financing Authority in partnership with the Imperial Irrigation District (IID) to finance electric infrastructure, including potential new or upgraded substations.
"The action you have before you this evening is the creation of the Coachella Electric Financing Authority," said Brian Forbath, bond counsel, describing the JPA structure and related project and servicing agreements. Forbath emphasized that the council will serve as the financing‑authority board but that IID will retain consent rights on certain matters, including increases to a surcharge above 10% over IID’s system average and approval of specific projects in the project agreement.
The agreement sets out a process: if the JPA is approved by both agencies, IID would collect a voter‑approved or administratively set surcharge on kilowatt‑hour bills within the city boundary and transmit surcharge receipts to a bond trustee to pay debt service on bonds. Any surplus after debt service would return to the authority for further projects. Forbath said the city has retained consultants conducting a rate study to determine surcharge levels tied to project costs and stressed the current action does not impose a surcharge.
Council members raised the need to avoid stranded assets and to ensure projects deliver genuine resiliency and redundancy. Council approved the JPA formation; Forbath and staff said IID’s board will consider the agreement at its March 17 meeting, and the financing authority’s organizational meeting would likely occur in April. Consultants and staff expect bond issuance could be pursued later in the calendar year if the subsequent approvals and studies support that schedule.
What happens next: IID is scheduled to consider the JPA on March 17; if approved, the city will file the JPA and hold an organizational meeting to adopt bylaws and elect officers. Future decisions on projects and any surcharge will require separate actions by the authority (council acting in that capacity) and, where required, IID consent.
