Putting
t he pieces toget her
Modesto Irrigation District
W a t e r
a n d
P o w e r
two thousand and five
A n n u a l R e p o r t
Stanislaus County,
California
Almonds: $473 million
crop in 2005
Putting the Pieces Together
When the Modesto Irrigation District (MID)
dam and reservoir. A treatment plant to produce
was established in 1887, irrigation water for farms was
drinking water for urban use followed in the early
a universally recognized economic blessing. Forming
1990s. MID flourished as a customer-owned, locally
a special district to build a canal system, dam, and
governed water and power utility.
“Just when you fit the final piece into the puzzle
These were the key pieces
in the development of
and step back to admire the completed picture, someone drops
MID: three services—
a handful of new pieces onto the table or worse yet, pries a few
water for agriculture,
random pieces loose, pockets them, and heads out the door.”
–Allen Short
reservoir on the Tuolumne River was an immense
engineering challenge, but a natural step. The first
electric power, wholesale
drinking water; three
guiding principles—
customer ownership, not-
for-profit operation, local control by elected directors.
official irrigation water delivery in 1904 was hailed
Today new puzzle pieces have suddenly appeared,
as a great victory. When the chance to generate
pieces that don’t necessarily fit neatly into the
hydroelectric power arose eighteen years later, the
picture. Suppose your region has planned well for
people naturally voted for MID
its water needs, but other parts of California have
to provide retail electric service.
In the spirit of pioneer self-reliance,
citizens were willing to consider
promising opportunities, to
shoulder risks, and invest
their own money in the
future of their community.
Decades after the first Don Pedro
not. Or perhaps your electric utility has operated
economically and efficiently, but other utilities
haven’t. It’s entirely possible that someone may try to
chip away at the advantages you have earned. To see
what I mean, let’s take a closer look at some of these
truly puzzling new pieces.
1. “Regional water solutions.” This is a sort of
code that we hear more and more these days. What
Dam was built, the people rose to
it really means is taking water away from those who,
meet a new challenge. In 1967
like MID, built and paid for water storage and water
bonds were issued to construct a second, much larger
m o d e s t o i r r i g a t i o n d i s t r i c t ‘ 2005 Annual Report
treatment facilities on their own; and giving the water
-
Generation—Between 2002 - 2006 MID
will have invested $156 million in new local
generation, part of a diversified resource mix
that also includes long- and short-term power
purchases.
-
R enewable energy—MID’s commitment is
to meet 20 percent of customers’ energy needs
with renewable sources by 2017. We are presently
ahead of schedule thanks to three timely
purchases of wind power.
instead to those who, like much of California, didn’t
plan particularly well for their future water needs.
2. “Shared responsibility for water quality
problems.” The philosophy here is: We know you
-
Air quality—In 2005 we retrofitted a 25-yearold natural gas-fired plant to meet today’s clean
air standards.
didn’t cause this situation, but we think you should
My point is this: If you put the right pieces
help pay for mitigating it, either by giving money or
of the puzzle together—and
by giving up water. MID has no quarrel with cleaning
MID has—legislative
up any water quality degradation that we might cause.
mandates aren’t necessary.
Problems that truly are watershed-wide demand
MID today is a vibrant
broad-based solutions. But what about problems
institution that embraces this time of
that MID didn’t cause and can’t control? Should our
transformation in California’s Central
ratepayers shoulder those burdens too?
Valley. We’re an organization that retains a gutsy
3. “Municipal utilities lag behind.” This is an
pioneer spirit and populist roots; that is quick to
all-too-common misconception about how municipal
defend water rights and local control; that strives to
utilities manage electric resources. Have we planned
continue providing the most reliable water and power
for adequate generation capacity and reserves? Do
service at the best price possible.
we invest in renewable energy like wind or biomass?
Clean air—what are we doing about it? In fact, MID
is forging ahead in all these areas.
Allen Short, G e n e r a l M a n a g e r
Electric service
The technology is complex, but the ABCs of electric service aren’t hard to understand: maintaining
supplies of power, transporting power to customers, and ensuring reliable service. With well-timed
infrastructure investments, MID was ready to connect 3,206 new electric customers in 2005.
Here are some other pieces we fit into the picture:
What MID got done
Built/upgraded
local power plants
What it means for customers
Completed 95 megawatt (MW) power
plant in Ripon, north of Modesto.
“Peaking plant,” used when power use
skyrockets on hot summer days.
Operational summer 2006.
Bought renewable
energy
Invested in
infrastructure
Joined hands
with other public
agencies
Retrofitted older gas turbine units with
Protects air quality, increases useful life
state-of-the-art emission controls.
of 112 MW local generation plant.
Added 50 MW of renewable wind
Will meet about eight percent of
energy generated in northern
customers’ energy needs with non-
California.
polluting wind turbines in 2006.
Finished environmental studies for 17-
Will improve service reliability, access
mile, 230 kilovolt transmission line.
to wholesale power markets.
Finished second of four new electric
Will serve electric customers in fastest
substations.
growing part of MID service area.
Joined control area formed by
Control area members coordinate
Sacramento Municipal Utility District,
operation of their electric systems,
Western Area Power Administration
power reserves for mutual benefit. Like
(part of U.S. Department of Energy).
MID, these agencies focus on reliability,
cost-effectiveness.
Diverse Supplies + Robust Infrastructure = Lights On
m o d e s t o i r r i g a t i o n d i s t r i c t ‘ 2005 Annual Report
Water issues
California water issues can frustrate like a 5,000-piece jigsaw without the picture on the box.
Some pieces obviously fit together—water rights and beneficial use, coordinated planning and dependable
supplies. Others, like a much-trumpeted proposal to drain a mountain reservoir (Hetch Hetchy), seem to
come from a different box altogether.
What MID got done
Advocated for
customers
What it means for customers
Engaged in public debate about
Could raise costs for MID customers,
breaching a dam in City and County of
reduce supply of low-cost hydropower;
San Francisco’s Hetch Hetchy system
negative impacts for operating Don
on upper Tuolumne River. Hetchy
Pedro Reservoir (MID’s primary water
Hetchy’s reservoirs, pipelines supply
supply).
water to 2.4 million people in San
Francisco area.
Planned
infrastructure
expansion
Water Treatment Plant—Finished
Gives Modesto dependable surface
environmental reviews, signed revised
water supply to augment well water,
agreement with City of Modesto.
meet strict public health standards.
Coordinated water
planning
Six public agencies in northern
Coordinated approach will maximize
Stanislaus County adopted Regional
long-term use of water supplies
Groundwater Management Plan.
throughout groundwater basin.
MID, four other agencies received
Will protect water quality, give
$3 million grant to develop
MID voice in developing standards
agricultural/urban water pollution
for salinity, boron, pesticides. Goal:
control plan for Merced, Stanislaus,
Identify, mitigate possible pollutants in
Tuolumne river watersheds.
farm/urban runoff.
Dependable Resources + Highest Quality = Refreshment
m o d e s t o i r r i g a t i o n d i s t r i c t ‘ 2005 Annual Report
Community involvement
Public power utilities offer their customers unique advantages: Customers own the utility, local
voters elect the governing body, and the whole operation is not-for-profit. To complete the picture, plug in
these pieces: an unwavering focus on customers and an eagerness to listen and improve. MID’s Community
Advisory Panel functions as a community hotline. Panel volunteers speak for low-income and
non-English-speaking customers, and others whose voices aren’t always heard.
What MID got done
Boosted lowincome assistance
What it means for customers
Restructured rate discount.
Helps households with low energy
consumption.
Increased weatherization funding.
Energy-efficient homes deliver savings
year after year. In 2005, MID support
weatherized 143 homes.
Included Salvation Army envelopes in
MID customer’s voluntary donations
electric bills.
totaled $19,254, helping 141 needy
persons pay their bills.
Promoted energy
efficiency
Helped Stanislaus County Housing
MID’s technical expertise ensures
Authority make low-income housing
Housing Authority will get the biggest
units more energy-efficient.
energy savings from every dollar it
invests in upgrades.
Completed
independent
review
Offered rebates for purchase of energy-
Customers received 2,424 rebates
efficient products.
totaling $601,569 in 2005.
An independent consultant reviewed
Ensures the $6 million MID spent on
state-mandated programs: energy
public benefits in 2005 is delivering
efficiency, low-income assistance,
measurable results.
renewable energy.
Public Education + Individual Action = Cool Energy Savings
10 m o d e s t o i r r i g a t i o n d i s t r i c t ‘ 2005 Annual Report