Eye On Modesto

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More MID Deceit…A Look at MID Rate Increases

By Dave Thomas

Good morning.

There have been 13 rate increases since 2001, or in the last 11 years, and this next one will be the 14thincrease to the rate payers in the same 11 years.

 

                   I have to tell you, though, John, that sometimes I fear that the true harmful economic impact of these insidiously “modest” cost increases is not appreciated.  Today’s story quoted a ratepayer as complaining that we have had rate increases of “86.25% in 10 years”.  I think I am being kind when I say, “That is not quite accurate”.

 

                   You can see by the attached MID rate increase summary, that the actual cost of electricity billed to ratepayers is substantially more than 86%.  We went to our tax records and pulled out every bill we paid in years 1998 through 2004, and recorded the starting rate, each rate increase, then compared those rates to our October bill.  If you look closely at the lowest rate actually charged, it is the Winter Rate of 1998, and the rate was $.0602, or 6.02 cents per Kilowatt hour.  The current rate actually charged occurred on the Summer Rate of 2011.  That rate is $.1808, or 18.08 cents per Kilowatt hour.  This 18 cents is, however, not the whole story, because MID, in its wisdom also added a flat rate of $12.50, thus increasing the costs by another $150 per year to every rate payer.  Moreover, the City of Modesto’s 6% Utility Tax was imposed on every rate increase, and last month MID sent over $1 Million dollars in Utility Tax to the City.

 

                   Let’s do the rest of the math.  If a ratepayer paid $100 a month electricity bill in 2001, the total COST of electricity would now be $264.54 (including the tax).  If that same ratepayer’s monthly summer cost was $200 in 2001, the rate increases published in today’s story would increase his monthly cost to $502.37.  AND the City would charge him another $30.14; the total monthly bill would be $532.51.

 

                   Thank you very much, Dave

MID ELECTRICAL RATES, 1998 THROUGH 2011

                                                SUMMER RATES                              WINTER RATES

1998                1ST 500 KWH             .0727                                                   .0602

                        OVER 500 KWH        .0797                                                   .0661

1999                SAME RATES AS 1998

2000                RATES NOT DISCLOSED

2001                RATES NOT DISCLOSED

2002                FLAT RATE INTRODUCED AT $12.50

                        1ST 5OO KWH           .0784                                                   .0649

                                                            .0860                                                   .0713

2003                FLAT RATE $12.50

                        1ST 500 KWH             .0879                                                   .0728

                        OVER 500 KWH        .0964                                                   .0799

2004                FLAT RATE $12.50

                        1ST 500 KWH             .0962                                                   .0797

                        OVER 500 KWH        .1055                                                   .0874

2011                FLAT RATE $12.50

                        1ST 500 KWH             .1649                                                   .1367

                        OVER 500 KWH        .1808                                                   .1498

______________________________________________________________________________

IN THE 6 YEARSFROM 1998 AND 2003, THE RATES INCREASED BY

                        1ST 500 KWH             .0152                                                   .0126

                        OVER 599 KWH        .0237                                                   .0138

IN THE 8 YEARSFROM 2003 AND 2011, THE RATES INCREASED BY

                        1ST 500 KWH             .0770                                                   .0639

                        OVER 500 KWH        .0841                                                   .0699

When I look at these numbers, I have to ask, just when did Allen Shortbecome the boss at MID?

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