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-Editorial
In response to the rising costs of energy and the financial strain on residents during the hot summer months, the Imperial Irrigation District (IID) Board of Directors took a significant step toward potentially easing the burden on its residential customers.
On Aug. 20, the Board approved a resolution directing the General Manager to evaluate transitioning all residential customers to an average billing system, a move that could bring much-needed financial predictability to households across the region. The board approved this by a vote of 4-1 with Director Javier Gonzalez voting against.
IID General Manager Jamie Asbury explained that in the past several years, the cost of securing energy and capacity for IID has skyrocketed. The utility, which prides itself on providing reliable and affordable power to its community, has seen its fuel and purchase power budget nearly double, from $222 million in 2020 to a staggering $411 million in 2024. This 86 percent increase is attributed to a variety of factors, including volatile natural gas prices and stringent state mandates aimed at increasing renewable energy usage and grid electrification.
Despite these challenges, IID has managed to maintain rates that are lower than those of many other public and investor-owned utilities in California. However, the District’s customers, particularly those in residential areas, face unique challenges due to the region’s extreme climate. Summers in the Imperial Valley are notoriously hot, with temperatures frequently soaring into the triple digits. As a result, households consume significantly more electricity during these months, primarily due to the heavy reliance on air conditioning. This seasonal spike in consumption leads to sharply higher energy bills, often putting a strain on family budgets.
Recognizing the financial difficulties that many customers face during these high-consumption months, the IID Board decided to explore the possibility of transitioning to an average billing system. This system would calculate customers’ bills based on their average monthly usage over 12 months, rather than billing them based on actual usage in any given month. The goal is to smooth out the peaks and valleys in billing, providing customers with more predictable and manageable energy costs throughout the year.
The Board’s resolution outlines several key areas for the General Manager’s evaluation, including assessing financial implications, offering an opt-out option for customers, mitigating risks of large year-end settlement payments, and implementing average billing only for accounts with at least 12 months of consumption history.
The concept of average billing is not new. Other utilities, including the Los Angeles Department of Water and Power (LADWP), Salt River Project (SRP), and Sacramento Municipal Utility District (SMUD), have successfully implemented similar programs. These utilities have found that average billing can significantly reduce customer complaints related to seasonal bill fluctuations and improve overall customer satisfaction.
IID’s move to consider average billing is part of a broader strategy to enhance customer service and adapt to the evolving energy landscape in California. The District has already taken steps to address the cost impact on customers, such as leveling the Energy Cost Adjustment (ECA) factor in 2024. However, the Board recognizes that more needs to be done, particularly in high-consumption months when energy costs can become a significant financial burden for residents.
