Two local agencies charged with reviewing options for continued publicly owned and managed electrical service in the Imperial Irrigation District service area have identified two preferred alternatives in a study conducted by Dopudja & Wells Consulting.
The Riverside Local Agency Formation Commission (Riverside LAFCO) in conjunction with the Imperial Local Agency Formation Commission (Imperial LAFCO) was tasked by the California State Water Resources Control Board (SWRCB) to prepare an “Alternative Governance Structures and Alternative Electricity Service Provision” study (Study) for provision of electricity services by the Imperial Irrigation District (IID) within its current service delivery area, including within Riverside County. The purpose of the Study is to provide an analysis of options for future governance of the IID to include proportional representation of Riverside County electricity customers being served by IID, and options for future electrical service provision by alternative public agencies if IID desires to terminate the service to Riverside and/or Imperial Counties.
Forming a joint powers authority or creating a new publicly owned utility were determined to be the two best options for alternative governance structures to provide voting rights and proportional representation on a governing board to those within the IID service area.
- Under the joint powers authority option, IID would continue to provide electrical service to its current Coachella Valley territory, but a new joint powers authority would be formed between IID and local cities, counties, and tribal governments to oversee the Coachella Valley area. The report describes this option as preferred “if the desire among Coachella Valley stakeholders is to pursue an alternative option that is uncomplicated, efficient to implement, and adaptable going forward.”
- The other option, forming a new publicly owned utility, would involve terminating IID service to the Coachella Valley area and forming a new Public Utility District or Municipal Utility District to provide electricity service to the area.
The two local LAFCOs were tasked with conducting the study, not making a final decision, and the report recommendations aren’t binding. This means local stakeholders like cities and others could continue considering the several other options outlined in the study, beyond the two that were found to be most preferable.
The objectives used to rank possible options included representation, a public and locally governed entity, efficient use of public resources, promotion of local renewable energy programs, and maximized public involvement, along with several others. Notably, the study was directed to “isolate water rights and management as the sole responsibility of the current Imperial Irrigation District Board of Directors and shall not affect the water service area boundaries of the Imperial Irrigation District.”
The Coachella Valley Energy Commission, established by IID and tasked with creating a long-term plan for continued energy service to the Coachella Valley after 2033, is “the best organization to continue its efforts” on making a final decision, according to Imperial LAFCO. The Coachella Valley Energy Commission includes members from IID, the cities of La Quinta, Indio, and Coachella, Imperial and Riverside counties, the Coachella Valley Water District, local tribes, and other entities.
Those groups will still need to make some major decisions and compromise regarding the future governance plans, legal steps, and infrastructure ownership, among many other issues, while determining the best option for electricity service for Coachella Valley residents in IID’s service area.
IID entered the electric power business in 1936 in conjunction with the construction of the All-American Canal. IID anticipated that hydroelectric power generated from five falling water drops on the All-American Canal would enable them to set power rates considerably lower than the competition at that time as Congress had authorized the construction of the All-American Canal to Coachella Valley. However, in negotiating repayment contracts with the United States, both the water and power rights of IID and the Coachella Valley Water District (CVWD) needed to be determined. According to the terms of a 1934 agreement between IID and CVWD, IID was given first rights to water delivered through the All-American Canal and a 99-year lease on any power rights Coachella had on the canal. As a rental arrangement for power rights, IID agreed to pay CVWD a percentage of the net proceeds from its power system, and CVWD in turn authorized IID to provide power service to the Coachella Valley.
Currently, IID’s district jurisdictional boundaries encompass all of Imperial County. IID also provides electricity service to parts of San Diego County, as well as outside its jurisdictional boundaries under the agreement, to the cities of Indio, Coachella, Palm Desert, Rancho Mirage, La Quinta, and a large area and several communities in unincorporated areas in the Coachella Valley, located in Riverside County.
As of 2018, about 239,000, or 55%, of IID’s energy customers resided in Riverside County, outside the jurisdictional boundaries of IID, and the Riverside County share of electric customers has grown since.
