In a unanimous 5-0 vote at its May 5 meeting, the Oakdale City Council approved moving forward with a feasibility study to explore consolidating the city’s electric service under a single provider—Modesto Irrigation District (MID).
Currently, Oakdale operates under a dual-provider system with some residents receiving power from MID and others from Pacific Gas & Electric (PG&E). The proposal seeks to assess whether transitioning the entire city to MID would be viable—legally, financially, and logistically.
“This dual provider model causes rate disparities for both residential and commercial properties within the city of Oakdale,” Interim City Manager Jerry Ramar told the council. “Those on PG&E are paying a much higher rate than those on MID.”
According to Ramar, the average Oakdale household on PG&E pays approximately $5,046 per year for electricity, compared to $1,962 under MID—a difference of more than $3,000. Citywide, the potential annual savings could reach $21.5 million, based on an estimated 7,000 households currently served by PG&E.
The feasibility study will require coordination with MID, the California Public Utilities Commission (CPUC), the Local Agency Formation Commission (LAFCo), and legal counsel. Estimated costs for the study range from $50,000 to $75,000, with additional expenses anticipated for required impact and facilities studies from MID.
PG&E’s representative, Eric Alvarez, addressed the council, noting the complexity and cost of such efforts. He cited South San Joaquin Irrigation District’s $28 million effort since 2008 to acquire PG&E infrastructure as an example, and stated, “PG&E is not interested in negotiating a sale.”
Despite PG&E’s objections, some council members expressed strong support. Councilmember Jarod Pitassi called the issue personal, saying, “I know a lot of people, a lot of grandparents … on single income or social security, and it’s not right. If we can hand this to our residents, it would be pretty awesome.”
Councilmember Kayleigh Gilbert emphasized the potential benefit for low-income families: “If we were able to switch to MID … they might be able to run their ACs during the summer, run their heaters (in winter).”
The vote does not initiate the transfer of electric service but authorizes staff to begin the process of evaluating whether such a move is feasible.
“This is just a feasibility study,” Ramar reminded the public. “It could come back and say this is not possible.”
The results of the study will be brought back to the council for further action once complete but Ramar said there is no timetable, though he suspects it will “be a year or longer” for the council to receive any kind of update.
“These are just baby steps,” Ramar said, noting the extensive process ahead to even gather all the required information.
