NID Directors approve a water Cost of Service Study and to begin the rate adoption process

February 13, 2019

Nevada Irrigation District (NID) Directors vowed to keep rates as low as possible for customers while meeting the financial requirements of the District, during their Feb. 13 meeting. Directors have accepted a five-year water Cost of Service Study and to begin the rate adoption public process.

As noted in the Study, NID customers will benefit from low water rates thanks in part to the District’s hydroelectric revenues, which will subsidize both raw and treated water rates over a five-year period.

The NID Study proposes that its water customers will benefit from low rates and will pay 77 percent of the cost of service to deliver water. The Study also proposes that the District will cover the remaining 23 percent through subsidies, including $34 million from hydroelectric revenues, $6.9 million from non-operating reserves and $8.2 million from interest earnings.

Further, through this action the District will secure a budgeted $500,000 to support low-income families with a new disadvantaged communities program, yet to be defined.

Customers will soon receive a notice in the mail with information to help them understand what the rate change entails, why it is being proposed, and the public review process overview that is pursuant to the California Constitution Article XIII D. This notice will start the 45-day public review and comment period, which allows for customers to file a written protest to the proposed rates.

There are about 25,000 homes, farms, and businesses in Nevada, Placer and Yuba counties that depend on an efficient and effective water delivery system that spans 287,000 acres.

 

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