In a unanimous 5-0 vote on Monday, June 2, the Oakdale City Council approved a resolution authorizing a $75,000 agreement with Bell Burnett & Associates to conduct a high-level feasibility study examining the potential transition of electric utility service from Pacific Gas & Electric (PG&E) to Modesto Irrigation District (MID).
The study will be funded from the General Fund – General Government – Contract Services Fund and aims to explore whether Oakdale could consolidate its electric service under a single provider—MID—rather than the current split between MID and PG&E.
“This is going to be a broad overview of if this is possible, both logistically and financially,” explained Interim City Manager Jerry Ramar during the meeting. “People actually got their hopes up when we brought this to council. I think our constituents would like to see us spend the money to see if it is possible. If it’s not, I still think it’s money well spent.”
The issue stems from growing concern over PG&E’s rising electric rates. According to data cited in the presentation, PG&E residential rates have increased by 43 percent in the past three years and 104 percent over the past decade.
In contrast, MID rates are significantly lower, and the city estimates that if all PG&E customers in Oakdale were switched to MID, the total household savings could exceed $21.5 million.
Ramar underscored that this is merely the first step in what would be a “monumental task,” noting that even if the transition proves feasible, the city would still face challenges such as the potential need for eminent domain, severance from PG&E infrastructure, and substantial additional studies required by MID, including a $50,000 System Impact Study and Facilities Study.
Mayor Cherilyn Bairos emphasized the need for public patience.
“This is just dipping our toe in the sand … It’s not going to be an automatic savings next month. I want to be very clear,” said Bairos.
Councilmember Jarod Pitassi added a personal note, describing how rate disparities are affecting Oakdale’s most vulnerable.
“I got inundated with text messages … people pleading for this to happen—elderly folks, single-income families. It’s a health issue. I hope that this is feasible in the long run for the health of the residents of our town.”
Not everyone was in support of the timing of the decision. Erica A. Cabrera, Central Coast-Central Valley Local Government Affairs Manager for PG&E, spoke during public comment and asked the Council to delay their vote until scheduled meetings between PG&E and city officials could take place the following day.
“Our hope is that we could have those meetings before you decide to proceed with this expenditure,” Cabrera said. She warned of the “material challenges and significant costs” associated with municipalization and added that PG&E’s electric rates are projected to decrease further by 2026.
Nonetheless, the Council moved forward with the vote.
Councilmember Jeff Kettering voiced cautious optimism.
“I’ve yet to find a jurisdiction in the Pacific Northwest where PG&E has relinquished service to a local utility. It’s never been done before that I could find. If we can do this, it’s monumental—but again, it’s never been done before.”
According to Bell Burnett & Associates, the study will be completed within four months of receiving a Notice to Proceed. The scope will include analysis of strategic alternatives, estimated costs, and legal and operational hurdles of transferring electric service to MID. A draft report will be submitted at the halfway point, with a final report and presentation upon completion.
While the study won’t provide all the answers, it’s a first step in what could be a transformative shift in how Oakdale powers its homes and businesses.
For more information on this particular issue, call City Hall at 209-845-3571.
