IID power bills not immune from a ordability crisis, but here’s what we can do
Over the last four years, we have witnessed significant economic change. The cost of living has surged, aecting every aspect of our daily lives.
Consider your morning routine: coffee costs 34% more than it did in 2020. Breakfast staples like eggs are up 75%, bacon 25%, orange juice 77%, and bread 32%. Driving to work in a used car is now 32% more expensive, and filling it up with gas costs 85% more. Even car insurance has risen by 16%.
If you’ve bought a new home, your purchase price is 39% higher than it would have been four years ago. Feeding your pet is 23% more expensive, and shopping online for new clothes or shoes costs 26% more. Even going to sleep at night, your mattress costs 19% more.
As your community-owned utility, Imperial Irrigation District is committed to ensuring that your power bill does not add to these financial burdens. However, IID is not immune to the increased costs affecting today’s economy. In 2020, the cost for IID to buy the fuel and power to serve Imperial and Coachella valleys was $222 million. By 2024, that cost has risen to $411 million — an 86% increase.
What’s Going On?
First, the cost of everything, including the fuel and purchased power IID needs to serve our communities, has gone up. Natural gas, which makes up a sizable portion of IID’s supply, is up 82% compared to four years ago. This is actually a reprieve from last year when the cost was 220% higher than in 2020.
Second, California’s push for clean renewable energy has phased out traditional, lower-cost, reliable supplies.
In recent years, the state has experienced power shortages compounded by rising demands due to higher temperatures and extreme heat.
Despite these challenges, we are fortunate. IID’s base rates are a third or less than those of neighboring investor-owned utilities to our north and west. At the same time, our summers are incredibly hot, and usage is equally high to keep air conditioners running and our homes cool when it is 120 degrees outside. The average family’s power use triples during the summer compared to cooler winter months when air conditioners are off.
Taking Action
While we have no control over state policies, shortages that drive up prices, or the price of natural gas, we do have some control over our utility and personal choices that can address costs.
In December, the IID Board took decisive action. The additional costs not recovered through the base rate are covered through the Energy Cost Adjustment (ECA) on our bills. The Board opted to spread those costs evenly throughout the year to minimize summer spikes to customers. IID is also working to rebuild and retool our generation fleet to insulate our communities from market volatility, giving us more control over costs. We are also working to restructure bills to reflect the fixed costs for operations and maintenance versus the variable costs of fuel and purchased power impacted by state renewable mandates and market conditions.
What You Can Do
Average Billing: Sign up for the average billing program, which spreads your energy costs evenly throughout the year, making it easier on the wallet and more budget-friendly.
Public Programs: Take advantage of public assistance programs that can help with energy costs. IID offers discounts for income-qualified customers and energy efficiency programs, including free home energy audits worth $1,000 that can save you money.
Conservation Measures: Implement energy-saving measures to reduce usage and costs. When temperatures climb and power is most costly from 4 p.m. to 9 p.m., setting your air conditioner to 78 degrees, closing your blinds during the day, turning off unnecessary lights, and using floor and ceiling fans can make a big difference.
IID is your community-owned utility, and we are committed to reliable and cost-effective service for our communities with some of the lowest incomes and highest temperatures in the state. By working together and making smart choices, we can navigate these challenging times and ensure everyone in our community can keep their homes comfortable without breaking the bank.