For some, more than a 15% savings community-side, they like the local control. Farmers, businessman, teachers, parents and retirees agree that local control of your electricity provider is a huge benefit when it comes to accountability, responsiveness, and effective management of your local utility. Read what the neighbors and businesses have to say about SSJID’s plan here.

The Local Agency Formation Committee (LAFCo) needs to conclude their years-long study on this issue and make a decision. Please write a letter to the LAFCo and tell them you support SSJID’s plan to take over as the electricity provider for the businesses and residents of Escalon, Manteca and Ripon, California. For more information, click here.

SSJID recently completed the last of several major technical reports for the San Joaquin Local Agency Formation Commission – LAFCo – the final step in the process of getting a hearing date and vote scheduled by the Commission.

“The major milestone in this whole process is the LAFCo vote,” explained SSJID General Manager Jeff Shields. “It’s taken a lot of hours and resources to get to this point, but it’s worth it to bring the lower costs of public power to all the homes, business and schools in our District.”

The recently submitted documents were a detailed Environmental Impact Report – 527 pages – and a 186-page Municipal Services Review. You can read both documents here.

“Now that these are in, there are mandated 60-day public comment periods,” Shields explained.

The public comment period for both documents extends through mid-January. After that, SSJID will respond in writing to the comments, and then LAFCo will schedule a hearing.

While a milestone, the upcoming LAFCo vote isn’t the final step in the process. Once authorized to become the area’s electric utility, SSJID will then have to buy PG&E’s existing power poles, transmission lines and other infrastructure inside the District’s boundaries.

“I’m hopeful that PG&E and SSJID will be able to negotiate a fair price for their assets, and we can begin the process of gearing up to provide service,” Shields continued. “Our District’s residents and businesses need the savings SSJID can deliver sooner rather than later.”

We’ll let you know as soon as the LAFCo hearing date is scheduled, so that you can get involved by letting LAFCo and your community leaders know who you want to provide you electric service.  Stay tuned!

Executive Summary - ES.5 Areas of Controversy

A total of four written comment letters were received during the scoping period following release of the

Notice of Preparation on March 15, 2010 (Appendix A of this EIR). No specific comments were received from private citizens, but comments were received from the San Joaquin County Environmental Health Department, California Department of Fish and Game, and PG&E. PG&E submitted two comment letters. The issues raised during the public scoping process include impacts to fish, wildlife, and their habitats including assessment of a fee under PRC Section 21089; avoidance of impacts to special status species; alternatives to reduce impacts to fish, wildlife, water quality, and vegetation; evaluation of project consistency with land use plans; impacts to lakes or streambeds; cost to provide retail electric service could be higher than estimated; increased greenhouse gas emissions under the proposed project and measures to reduce emissions; SSJID’s proposed generation portfolio; project objectives and reliability; project description details; agreements with MID; availability of revised MSR; and protection of biological resources and PG&E’s habitat conservation plan.

LAFCo has chosen to prepare a single Subsequent EIR to address the SSJID‐related actions for the sake of efficiency. LAFCo considered but rejected a strategy of preparing separate CEQA documents for the Sphere Plan and MSR and for SSJID’s plan to provide retail electrical service. This single Subsequent EIR provides an updated “unified EIR” for the retail electric service proposal while also addressing the impacts of the SSJID‐related actions described above.

For the full report, click here.

http://www.sjgov.org/lafco/SSJID/DEIR%20CD/index.htm

AMERICAN PUBLIC POWER ASSOCIATION

CALIFORNIA MUNICIPAL UTILITY ASSOCIATION

COALITION FOR LOCAL POWER

SACRAMENTO MUNICIPAL UTILITY DISTRICT

SAN JOAQUIN LOCAL AGENCY FORMATION COMMISSION

MODESTO IRRIGATION DISTRICT

TURLOCK IRRIGATION DISTRICT

CALIFORNIA INDEPENDENT SYSTEM OPERATOR

CALIFORNIA PUBLIC UTILITIES COMMISSION

Timeline:

1909     South San Joaquin Irrigation District (SSJID) was founded.

1955     Tri-Dam organization formed jointly between Oakdale Irrigation District (OID) and SSJID.

1957     Tri-Dam facilities (Donnells, Beardsley and Tulloch) become operational (built in 2 years).

1980s   Mini-hydro power plants were built.

1982     Woodward mini-hydro – 2,300 kw originally; Tri-Dam Power Authority is formed.

1983     Frankenheimer mini-hydro 4,300 kw originally.

1984     Sandbar Hydroelectric plant goes online as the generation and transmission project of Tri-Dam Power Authority 16.2 mw.

2005     SSJID/OID renegotiate wholesale rate for hydropower to PG&E, which improves revenue stream.

2007     Solar Farm begins construction at Water Treatment Plant site.

2008    First phase of 1.4 mgwt Robert O. Schulz Solar Farm is complete, with the second phase operational in 2009.  Solar Farm provides power for the district’s water treatment plant that serves Manteca, Tracy, Lathrop and Escalon, saving over  $400,000 in power costs.

2008    SSJID/OID terminate wholesale power contract with PG&E and enter into contract with Shell Energy, continuing to improving  revenue stream

It is stuff that PG&E and the CPUC is hoping never gets wide distribution. They may get their wish given television’s inability to get beyond sound bites and needing visuals and the short attention span of many in the printed media.

The following bulletin points are taken verbatim from the report:

•1 “The NTSB’s findings to date identified both the material and the fabrication welds of the section of pipeline that failed did not meet either 1) the engineering consensus standards applicable to natural gas pipelines at the time or 2) the PG&E specifications in effect at the time of construction.”

•2 “The panel was mindful of the external criticism that has been leveled at PG&E. While it was acknowledged the company has many talented professionals, the CPUC admitted it was less effective in dealing with PG&E than any other utilities because of the ‘culture’ of PG&E.”

•3 “Management’s focus in recent times appears to have been focused on the occupational safety of its employees and lacking an equivalent focus on the public safety aspects of its system.”

•4 “PG&E provided erroneous data because of a lack of 1) robust data and document information management systems to archive historical data and 2) processes to capture emerging information about the underground gas transmission line.”

•5 “But the goals (PG&E) sets for management compensation purposes, its investments, and its practices do not suggest its focus is on achieving an industry leading pipeline safety and integrity program.”

6. “PG&E’s internal audit of its processes in 2010 identified in the field personnel were not adhering to the inspection policy during third-party construction, but no training was undertaken to remediate the nonconformance. Further, the company lacks a clear, disciplined communication process between field and general office engineering and between gas transmission engineers and integrity management personnel.

•7 “To fail to inspect during major adjacent earth disturbance and then to analyze the effect of that earth disturbance after-the-fact are examples of the operator pushing its luck.”

•8 “PG&E has no overall strategy to improve how it assesses the integrity of its system.”

•9  “In reviewing the pipeline 2020 program, we did not find it to be well-reasoned or based on a thoughtful examination of alternative. The plan appears to be reactive.”

•10 “PG&E’s management acknowledged to the panel that the implementation of field force automation is not as advanced as what other companies in the industry have available.”

•11 “In early 2007, (PG&E’s) Enterprise Risk Management program identified gas and electric system safety as one of the top 10 catastrophic risks facing PG&E. … PG&E defined a major natural gas transmission accident as one that had any of the following consequences: financial exposure from $100 million to $500 million; significant injury, illness or environmental impact; and/or national or international attention resulting in a severe negative consequence to the company’s image or reputation with regulators, consumers, or the general public.”

•12 “We would cite the following five factors as contributing to a dysfunctional culture…. excessive levels of management… inconsistent presence of subject matter expertise in management ranks… appearance-led strategy setting…. insularity … (and) overemphasis on financial performance.”

In a nutshell the CPUC essentially lets PG&E do as it pleases due to the for-profit’s ‘culture’ by apparently holding San Francsico-based utility to a lower standard than anyone else.

As for PG&E, image seems more important than safety. They also cry poor when it comes to spending money on pipeline safety yet they dumped:

•$46 million into the Proposition 16 campaign in a failed attempt to get voters to amend the California constitution to provide PG&E with a guaranteed monopoly.

•$35 million to sweeten departed chief executive officer Peter Darbee’s severance package.

•$12 million to buy a new corporate jet.

•more than $10 million into bonuses paid to top executives as a reward for steering them to the edge of bankruptcy.

That’s $103 million in just four instances that could have gone into improving pipeline safety.

And that is on top of a $35 million fine for state-imposed building and collection violations, $26 million in fines for a 2009 Christmas Eve natural gas pipeline explosion that killed a customer in Rancho Cordova and millions more in fines for wild land fires started due to failing to maintain power line right-of-ways.

It is clear PG&E refuses to put the public’s interest first and that the CPUC is inept at making sure PG&E doesn’t get reckless with its drive to put profit above public safety.

The time has come to pull the plug on the CPUC and/or PG&E and start all over.
http://www.mantecabulletin.com/section/38/article/25803/

Plain and simple, electricity rates in many parts of South San Joaquin County are too high and continue to escalate at alarming rates. PG&E, the current for-profit electric utility for most of South San Joaquin County, recently filed with the California Public Utilities Commission for permission to increase your rates by 10% in 2011, on top of frequent rate increases over the past few years.  In geographic areas where publicly-owned electric utilities exist, rates are usually more affordable and system reliability is better than in areas served by investor-owned utilities (or for-profit utilities). In the San Joaquin Valley, Modesto Irrigation District, Turlock Irrigation District, and SMUD (Sacramento Municipal Utility District) are examples of effective public utilities.

SSJID wants to provide retail electric service to Manteca, Ripon and Escalon and nearby unincorporated areas to achieve significant cost savings—15% below PG&E’s current electricity rates—service improvement and reliability for its current agricultural customers, residents and businesses.  SSJID made a good faith offer of $79.5 million to PG&E to purchase its electric distribution system serving approximately 40,000 customers in our service territory.  Unfortunately, PG&E thus far has refused to negotiate for their system.

SSJID has also submitted an application to the San Joaquin Local Agency Formation Commission (SJ LAFCo) to begin the process of receiving approval for our plan of service and financial capabilities.  We need LAFCo’s approval before we can move forward with our plan to save you 15% on your electric rates.  The LAFCo commissioners and your city officials are eager to hear where you stand on who you want to provide you with electric service and the rates you think are fair.

SSJID is ideally suited to deliver reliable, lower-cost electricity to the residential, business and agricultural customers in is service territory.  Why?  Because SSJID has 100 years of experience providing reliable utility service with local accountability, and is ready to extend that tradition to providing electricity.  We already have several experienced power experts working hard to make this plan a reality—together, these experts have years of experience running electric utilities, hiring and managing skilled staff, purchasing power at the lowest prices, making prudent investments, and ensuring that system upgrades and maintenance are SSJID’s priorities.

You may wonder how we are so sure we can save you 15% over PG&E’s current electric rates.  The 15% savings comes from several competitive advantages we have over PG&E:

PG&E pays its shareholders an 11.45% dividend each year and charges more to generate that double-digit profit. 7/25/11 m. SSJID is a non-profit and will set rates to benefit ratepayers, not shareholders.

SSJID doesn’t have any fancy San Francisco offices or corporate jets to pay for with ratepayer money.

SSJID has a better credit rating than PG&E, so we can borrow money more cheaply.

Add up all the savings just from these three advantages and it’s clear that SSJID can set rates 15% lower than PG&E’s and have money to upgrade and maintain the distribution system to provide better reliability and superior customer service.  It’s simple math, and a win-win for everyone in our region.

In today’s stressed economic times, the cost of essential goods and services, such as gasoline, utilities and electricity, are at the top of everyone’s mind.  Consumers are looking for value from their hard-earned dollars, and SSJID is prepared to offer just that.

There have been several recent letters to the editor regarding PG&E’s electric rate restructuring and increases, and South San Joaquin Irrigation District’s plan to provide an alternative to PG&E’s high rates and lackluster service.  Specifically, a letter from Mr. Gary Duran asked SSJID what he could do to help move the plan forward.  I’d like to answer that question, not just for Mr. Duran but for all of our constituents in Manteca, Ripon, Escalon and surrounding rural areas.

Your support of SSJID’s effort to become your electric utility is critical to our success at the hearing during which the San Joaquin Local Agency Formation Commission (LAFCo) will vote later this year.  When SSJID says “Powered by People Like You,” we say that because the plan really belongs to electric ratepayers within the District. SSJID fully understands that we must win a “yes” vote from LAFCo in order to become your non-profit electric utility and offer you a 15% discount over PG&E’s current rates.  We will continue to work tirelessly to ensure that the plan offers our communities a public benefit, above and beyond anything that PG&E offers.  Folks ask us “when?” and “how much longer?” until the plan brings them rate relief.  SSJID will do its part to prove to LAFCo that we can and will live up to the commitment we have made to provide better service, local control, improved system reliability, and most importantly for customers and the local economy—a 15% discount over PG&E’s rates.  We appreciate LAFCo’s cautious effort to move the review process forward.

While SSJID would not presume your support unless we can prove our case, you can tell LAFCo about who you want to provide your electricity and why.  Your attendance at the LAFCo hearing, soon to be scheduled, will make the biggest impact, especially if you are willing to speak up.  Prior to the hearing, letters to LAFCo, to your County Supervisor, and to your local newspapers are all ways to have your say.  Open up a dialogue with your friends, family and the businesses you shop at about the issue.   Now is the time to let LAFCo know your opinion, your wishes, and your concerns.  Except for one appointed public member, LAFCo is comprised of local elected officials whose job it is to represent you.  They want to know how you feel about this issue, and while SSJID still has to prove its case at the hearing, your voice is just as important to our success.

If you haven’t already, you can go to our website dedicated to this issue and sign up as a supporter or send us questions and comments.  That will enable SSJID to keep you updated on our progress as we get closer to the hearing and suggest ways that you can get involved if you so choose.  The website is www.savewithssjid.com.  Together, we have a voice.  Together we can change what isn’t working and create a better future.  SSJID
cannot and should not do this in a vacuum; we need folks like Mr. Duran to take a stand.  Public input can make all the difference.

Jeff Shields

General Manager, SSJID

June 24, 2011

“A high level of accountability with a local elected board that essentially gives Manteca, Ripon and Escalon home rule instead of being at the mercy of PG&E.” Manteca Bulletin 5/12/08

Join these community group members to save 15% on your electric bill. You should know the facts. http://www.savewithssjid.com/leadershipgroup.htm

… the SSJID made it clear they were putting their money where their collective mouth is.

It was a key milestone as the San Joaquin Local Agency Formation Commission staff required the written commitment before they’d consider recommending the district be granted the right to provide the retail service. A LAFCO decision on SSJID’s request to save Manteca, Ripon, and Escalon retail power customers 15 percent a year is expected to be before LAFCO this summer.

Read the entire article here.

We look forward to the day when we hopefully will be able to answer that question with “Now!”  The current status of our application before the San Joaquin Local Agency Formation Commission (LAFCo) has not yet been deemed to be complete, as there are several more studies that are still in progress before our hearing date can be set.

The great news is that the second independent expert study that LAFCo commissioned from PA Consulting of Denver, CO, supports SSJID’s contention that we have the financial resources and ability to purchase the system AND offer a 15% discount from PG&E’s current rates.

The first expert study concluded that SSJID has the expertise and experience to run an electric utility.  However, there were a few areas where PA’s economic assumptions differed from SSJID’s.  In response, SSJID submitted a supplement to our original application focusing on three strategies that we believe will enable us to overcome PA’s concerns.  Briefly, these strategies include:

• Reinvesting revenue created by the sale of retail electricity back into the business in order to support a rate reduction.
• Recognizing that PG&E’s rates will rise and that anticipated higher future wholesale power costs should also be applied to PG&E’s rates, not just SSJID’s.
• Investing additional equity to acquire PG&E’s system and lowering our long-term borrowing costs.  By using the District’s considerable cash reserves from our share of Tri-Dam revenue, SSJID can ensure a 15% discount.

The consultants reviewed our supplemental application and, while SSJID is still in the process of carefully analyzing the report’s findings, concurred that our strategies will enable SSJID to make the numbers work.  The report by PA agreed with our estimate of $39 million in upfront equity, but determined that SSJID would have to contribute $15 million annually to achieve the 15% discount.  Because PA Consulting projected future power costs to rise dramatically, if realized, this would result in SSJID’s hydropower generation resources to be more valuable than ever, bringing in an estimated $20 million a year.  This would leave enough cash to continue maintaining and enhancing SSJID’s irrigation and treated drinking water services.  In summary, there was no case in which PA could demonstrate that SSJID would not be able to deliver discounts to PG&E rates.

“We still don’t agree with what PA says we may have to pay to purchase PG&E’s distribution assets, but even if they’re right, we can do it,” says SSJID General Manager Jeff Shields, “If the $15 million a year investment from Tri-Dam revenue is the outcome, we’ll still have money left over to address emergencies and continue to maintain and enhance our irrigation and municipal water systems.”

Stay tuned to our efforts over the next few months.  LAFCo estimates that once all studies are complete, SSJID’s hearing may be scheduled for as early as mid-summer or early fall.

“SSJID’s expertise coupled with no need to show profit as well as the proceeds from the Tri-Dam Project means electrical rates under a SSJID retail power system would be at least 15 percent lower than PG&E.”

ABOUT SSJID’s RETAIL ELECTRIC PLAN

SSJID, as a non-profit utility agency, wants to provide retail electricity to achieve significant cost savings, service improvement and increased reliability to its current agricultural customers, residents, businesses and governmental entities within Manteca, Escalon, Ripon and surrounding rural areas (SSJID’s service territory).  Pacific Gas & Electric (PG&E), a for-profit, investor-owned utility currently provides electric service to approximately 40,000 customers in the same service territory.

Why does SSJID want to assume the responsibility of providing you with power?  Because we think you deserve lower rates and improved, local service.  We also believe you value local control, which allows you to elect the people who run your electric utility and give them input on how the utility runs by attending public meetings, or simply by voicing your opinion when you see a SSJID board member at the local coffee shop.  More than 50 years ago, our Board of Directors foresaw the value of building the Tri-Dam Project with the Oakdale Irrigation District, and now wants you to share in its benefits.

The Tri-Dam Project is a series of hydroelectric power plants on the Stanislaus River that generate electricity.  Recent contract negotiations have allowed SSJID to be in a favorable financial position for many years—meaning more locally re-investable funds and a substantial wholesale power resource for years to come.

What we have done:
As a public agency, we believe it’s our responsibility to share the Tri-Dam Project’s benefits with all the residents and businesses in our service territory.  That’s why SSJID has invested a great deal of time and resources in developing a solid, safe plan to provide retail electric service at a substantial cost savings to our service territory.  We have submitted an application to the San Joaquin Local Agency Formation Commission (SJ LAFCo) to begin the process of receiving approval for our plan of service and financial capability. We need LAFCo’s approval before we can move forward with our plan to save you 15% on your electric rates.  There are many ways you can help us with this effort and you’ll learn more about what you can do by navigating through this website.

SSJID has also engaged electricity experts and staff in considering everything from the valuation of PG&E’s electric distribution system (how much we may have to pay for their system), to working with our cities to plan public benefit programs that will provide assistance with energy conservation and low-income benefits, to making sure we can maintain long-term financial stability for all of our water and electric operations.  We have worked closely with the city officials and staff in each of the cities we serve to ensure their understanding of the benefits and risks of our plan, and we are ready to enter into agreements with each city and San Joaquin County to make them whole for taxes and franchise fees that meet or exceed what PG&E pays.

We have completed thorough environmental studies, and planned for system upgrades to ensure reliability.  Overall, we think the statistic from our exhaustive studies that says the most is that SSJID estimates that we will be able to save our service territory approximately $11.6 million on electricity rates in the first year of service alone, and over $140 million over 10 years of operation.  That is money back in your pocket to spend as you choose, for farmers to keep our agricultural economy thriving, for businesses to keep expanding and employees working, for cities to invest in police and fire services, and for non-profits to put to work serving their clients.

Most importantly, we have made a good faith offer to PG&E of $79.5 million for their distribution system.  This represents two times the value that PG&E says the facilities are worth when they file their taxes.  Unfortunately, PG&E thus far has refused to negotiate for their system.  They have also spent your rate dollars on trying to convince you that public power will not be a good thing for you and your community.  All across California, PG&E has taken steps to thwart public power from being offered in various forms.  Is competition good for our economy?  It’s up to you to decide where you stand on this issue.  You could choose to continue to pay PG&E and its shareholders a hefty profit every year on escalating rates, or you could voice your support and put your trust in the benefits of a utility that wants nothing more than to save you money, provide you with more reliable service, and allow you to participate in its policies and rate setting.

Throughout the country, publicly-owned utilities are growing and improving their local economies.  Public power benefits everyone.  From cost savings and greater reliability to stronger community partnerships and improved efficiencies, the benefits of SSJID providing electric services to your community will be immeasurable.

To learn more about publicly-owned electric utilities, click on BenefitsofPublicPowerBrochure.pdf.

For more information on the program, please click on info@ssjid.comto send an e-mail, or call 209-249-4600.

Yes, I want to save 15% on my electricity rates, show me how.

To view SSJID’s application to LAFCo click here.

To view SSJID’s electric plan click here.

To view the site appraisal click here.

The South San Joaquin Irrigation District (SSJID), located in Southern San Joaquin County, California, was formed in 1909. It was established to provide a reliable and affordable source of irrigation water for 72,000 acres of agricultural area surrounding Escalon, Ripon, and Manteca, California. In 2005, as unprecedented urban growth replaced agricultural land, the district expanded into providing domestic water service to South San Joaquin County cities with its state-of-the-art membrane filtration water treatment plant. More on SSJID history and operations can be found at the agencies website at www.ssjid.com .

SSJID’s historic water rights allow for several hydroelectric power plants on a series of dams and reservoirs on the Stanislaus River. SSJID and Oakdale Irrigation District completed the original Melones Reservoir in 1926, and since 1957 have co-owned the Tri-Dam Project, consisting of Donnells, Beardsley and Tulloch reservoirs and powerhouses.

SSJID recently (dedicated July 18, 2008) completed a 1.4 megawatt solar farm that provides nearly all the electricity to run its water treatment plant, saving the district over $400,000 annually in power costs. SSJID’s solar farm is recognized as the world’s first single-axis solar tracking system featuring thin-film photovoltaic cells. The district recognized that through this technology, they could reduce the electricity costs of its customers.

Late in 2009, the California Public Utilities Commission (CPUC) unanimously approved a resolution finding that the proposed South San Joaquin Irrigation District (SSJID) plan to purchase PG&E’s electric facilities in Manteca, Ripon, Escalon and surrounding farm land will not significantly impact the remaining PG&E electric ratepayers. The San Joaquin Local Agency Formation Commission (LAFCo), requested the approval. The resolution is part of the current San Joaquin LAFCo review process required to be complete before LAFCo can finalize its analysis of SSJID’s retail electric plan.