GRIDLEY, CA (MPG) – Gridley City Administration and Council have been under attack on social media by residents who have experienced higher than usual electric bills in recent months. Many are blaming the City of Gridley for raising rates.

Going back to the month of June when the Council reviewed the 20-21 fiscal year budget and held multiple special meetings in regard to proposed master fee, code, sewer, water and electric rates, council responded to community concerns and postponed any rate increases until further meetings could be held in the Fall. This is documented in the June 24, 2020 meeting and agenda minutes posted on the City of Gridley’s website and was also reported by the Gridley Herald.

On Friday, August 14^th, the City held a special meeting wherein the public again voiced its anger over high rates and shut-offs for failure to pay, along with discrepancies in the service reconnection fee charged after a power shut-off. Last week on September 8^th, a little earlier than planned, Council revisited these issues, pushed by a community who has been increasingly vocal about exorbitant electric rates.

They began the process by presenting a historical overview on each department: Sewer, Water and Electric. This included factors that have influenced past rate increases, the lack thereof and reasons motivating future increases.

The area of most concern was that of the electric utilities. The last electric rate increase was approved in December of 2017 after a detailed public review at the November 20^th 2017 City Council Meeting. At that time, the City’s electric department was in some serious trouble, posing a significant threat to the City as a whole, due to its reliance on Electric Fund transfers to the General Fund. The largest thorn in the electrical department’s financial side: previous administrations over purchasing of energy from the Lodi Energy Center (LEC).  Additionally, utility operations total just over $11 million dollars in expenditures, says City Administrator Paul Eckert.

In 2006, former City Staff made the egregious error of miscalculating Gridley future electric needs and trapped itself into a legally binding contract, forcing the city to purchase unnecessary electric power from the LEC for 25 years. When the LEC came online in 2015/2016, the City became liable for its portion of the debt service, approximately $600,000 annually. The unaudited Electric Fund Balance at the June 30, 2016 City Council Meeting was just $25,000. A year later, June 30^th, 2017, the projected balance was nearly $400,000 in deficit. The 2017 utility rate increase was forced by that quickly growing deficit.

Gridley is currently investigating multiple avenues to maintain the 2017 rates for customers. Among those have been trying, by any means necessary, to get out of the contract with the LEC, postponing a $120,000 electric building expansion, withdrawing $400,000 from the Northern California Power Agency General Operating Reserve, recovering $168,000 from the City of Biggs for Electric Maintenance Services performed and more (for the full list please view the agenda atgridley.ca.us).

Even so, Gridley residents have seen bills in the high hundreds. City Administrator Paul Eckert and Council Members discussed possible causes of higher bills including higher than usual temperatures and more people staying indoors, working and schooling at home due to COVID19.

Gridley’s water and sewer rates have not seen a rate increase since 2010 and remain below what neighboring cities pay. Currently Gridley’s water rates hold at $24.99 base fee with $.97/ 1k gal charged. In comparison, the City of Biggs rates are $55 base fee with $8.50 1K CF over 7K used. Gridley’s sewer rates are currently $37.96 with council considering a rate increase to $41.76 as of January 1, 2021. In comparison, residents in Live Oak pay $68.00 for sewer and Biggs residents pay $65.90 base with $8.50 charges for lmp. Council has maintained that there have been no changes in commodity rates since 2017 and that all Gridley utility rates remain lower than our neighboring cities.

Significant time was spent at the start of the Sept 8^th meeting expressing the desire for community members to communicate with the Council to voice their concerns, ask questions, etc. As always, residents are urged to attend meetings (social distancing and COVID precautions are in effect) or to call in via teleconference at 1-888-204-5987 and enter the access code 5767603#.