On January 21, the Imperial Irrigation District (IID) Board of Directors voted unanimously to approve a multi-phase electricity rate increase, the first since 2015. The decision addresses the growing costs of maintaining and modernizing the district’s infrastructure while ensuring compliance with evolving regulatory and environmental standards. Despite public concern over the financial burden on customers, IID emphasized that the increase is necessary to sustain reliable service and avoid further system degradation.
Rate Increases: Scope and Impact
Under the new rate structure, residential customers will experience an average monthly bill increase of $29.81 in 2025. The rate adjustment will apply to all customer classes, including residential, agricultural, and commercial users, with further increases planned through 2027. For instance, large general service customers will see an average monthly increase of $579.41 in 2025, while agricultural pumping customers will face an additional $61.42 on their monthly bills.
The approved plan also transitions IID’s electricity pricing away from volatile spot cost adjustments, which have caused unpredictable spikes in summer bills in recent years. This shift aims to provide customers greater price stability, particularly during high-demand periods. “We can’t just continue this rollercoaster where you don’t even know what your bills will be,” said IID Board Chair Gina Dockstader.
Why the Rate Increase is Necessary
The need for the rate increases stems from IID’s aging infrastructure and rising operational costs. Many of the district’s power plants and power poles are more than 60 years old—far exceeding their intended lifespan of 30 years. Additionally, IID’s reserves have fallen below the industry standard of 150 days of operational cash on hand, threatening its credit rating and ability to secure funding for critical projects.
A cost-of-service study conducted by NewGen Strategies and Solutions highlighted the urgency of these upgrades. Without action, IID’s capacity to meet growing energy demands and comply with California’s renewable energy mandates could be compromised.
“Today’s decision is a critical step in securing a stronger and more resilient future for IID and the communities we serve,” Dockstader said. “This rate update enables us to make much-needed investments in our infrastructure to continue delivering reliable and affordable power while meeting evolving state and federal requirements.”
The revenues generated from the rate increases will support:
- $1.3 billion in infrastructure improvements, including modernizing the grid and enhancing power generation facilities.
- Compliance with renewable energy and greenhouse gas reduction goals.
- Improved asset management and operational efficiency.
- Investments in renewable energy development and transmission from the Imperial Valley to the rest of California.
Community Concerns and Responses
While the board’s decision was unanimous, it did not come without significant public pushback. During three public hearings held in El Centro, La Quinta, and Calexico, customers voiced concerns about the financial strain the increases would place on low-income households in a region already grappling with high unemployment and economic challenges.
“This is going to be hard, especially on us retired people,” said Mary Helen Dollente of Holtville during the board meeting. Others criticized the perceived lack of transparency in the cost-of-service study and called for more gradual implementation of the increases.
Despite these objections, the board stressed the importance of addressing infrastructure deficiencies immediately. Vice Chair JB Hamby highlighted that delaying upgrades could lead to even higher costs and greater service disruptions in the future. “To avoid excessive summer bills, we need to become autonomous and not be at the mercy of the open market,” Hamby said.
Mitigating the Impact on Customers
Recognizing the financial challenges faced by many in the district, IID has allocated $10 million from its Public Benefits Fund to assist customers during the transition:
- $5 million for bill payment assistance: This funding will provide direct relief to low-income households through programs such as the Residential Energy Assistance Program (REAP).
- $5 million for energy efficiency initiatives: These funds will support measures to help customers reduce energy consumption and lower their bills.
“We remain committed to supporting our ratepayers through this transition,” said IID General Manager Jamie Asbury. “Our energy efficiency programs and payment assistance options are designed to mitigate the impact of these necessary rate adjustments.”
A Look Ahead
IID’s decision comes at a critical juncture for the region’s energy future. The district serves 165,674 customer accounts across a 7,000-square-mile area, including over 100,000 in Riverside County. With the new rates, IID projects annual revenues to rise from $699 million to $852 million by 2028, providing the financial stability needed to sustain and expand its operations.
Still, the board’s decision has political ramifications. Calexico Mayor Diana Nuricumbo and other community leaders have urged the district to ensure ongoing public engagement and accountability as the rate increases are implemented. “This is a public entity. We are the ratepayers. Think about what your constituents feel about you,” said Nuricumbo.
While the rate increases represent a financial burden for many, IID argues that the long-term benefits of improved reliability, environmental compliance, and economic growth outweigh the immediate costs. As the district moves forward, its ability to balance financial stability with public trust will be crucial in determining the success of this initiative.
For more information on the rate update and available assistance programs, customers are encouraged to visit www.iid.com or contact IID’s customer service team at (800) 303-7756.