NID says it is considering reducing planned water rate increases

 Directors of the Nevada Irrigation District on Wednesday (Nov. 4) said they would consider rolling back next year’s planned water rate increases to about half the levels they approved earlier this year.

 The rollback is one of three options presented at Wednesday’s regular meeting of the board.  Directors could adhere to the current schedule or go back to no rate increases.  Further study and a committee recommendation are expected before the board considers 2010 water rates in two weeks.

Board members said that rate increases can be difficult for customers in a tough economic climate but agreed that the district faces increasing costs in providing safe and reliable water service.

 The rate discussions were held as part of the board’s ongoing 2010 budgeting process.  The district is also considering additional spending reductions in efforts to keep financial impacts to customers at minimum levels.

 Last February, the board approved a five-year plan that includes average 5.4 percent annual rate increases.   Lesser increases of about 2.5 percent would amount to about 75 cents monthly for a typical treated water user.  An irrigation water customer using 1 miner’s inch of water would see an increase of about $10 for the entire six-month irrigation season.

 Studies have shown that rates currently paid by treated water customers and irrigation water customers do not cover NID’s costs in providing water service.  In recent years, the district has supplemented rates with property tax revenues and reserve funds.

 Proposed water rates will be reviewed by the board’s Administrative Practices Committee at 8 a.m. on Tuesday (Nov. 10).  The committee is expected to make a recommendation to the full board for consideration on Nov. 18.

 In other business, directors:

•  heard budget presentations from Finance Manager Marie Owens on the district’s proposed 2010 budgets for the Hydroelectric Division and the Recreation Division.

• approved a 10-year agreement under which the district will sell hydroelectric energy from the Combie South Powerhouse to the Pacific Gas and Electric Company. Water Operations Manager Don Wight said the standard Small Renewable Generator Power Purchase Agreement would pay NID between 10 and 13 cents per kilowatt-hour, up from the current rate of 6 to 7 cents.

• heard an update from General Manager Ron Nelson on current activity in Sacramento where major water legislation is being developed.  Nelson said NID and other upstream agencies remain very concerned that any new water flow requirements for the Delta could affect upstream water rights and usage.

• congratulated Division I Director Nancy Weber, who has been named as 2009 Woman of the Year by the Business & Professional Women of Nevada County.  BPW representative Judith McCarrick made the announcement during the public comment period early in the meeting.

 The next regular meeting of the NID Board of Directors will be held at 9 a.m. on Nov. 18 at the NID Business Center in Grass Valley.  NID board meetings are open to the public.