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• After resignation of Maria Elena Serna, 10 seek to represent Lodi area on Delta College board

• Wine Country Cardroom in Lodi wants to increase games, hours, tables

• Critics: Water officials need better 'people skills'

• Regional Roundup

November 20th, 2009

• Acampo woman killed

• Salvation Army Kettle Kickoff

• Advocacy groups sue East Bay Municipal Utility District over Pardee expansion

• Regional Roundup

• Galt plans to help residents with energy-efficient projects

• Stable southeast of Lodi approved

• One year after a heart attack, Lodi's Judy Mims thanks rescuers

• National Guard troops return home in time for the holidays

• Real estate market gets on more solid ground

November 19th, 2009

• Lodi Unified School District board votes to cancel summer school for 2010

• Water surges in Mokelumne River yield more salmon

• Lodi City Council will consider redevelopment next June

• Lodi City Council plans to cap number of taco trucks at 22

• Corrections

• Chase ends in crash

• Operation: Christmas

• Logbook

• Suspect arrested after hiding in fridge

• Galt Joint Union High School Distric hires new superintendent

• Sales tax hike yields dividends: 5 new officers join Galt Police

November 18th, 2009

• Regional Roundup

• Paranormal group conducts second investigation of building

• Congress allocates money for local water projects

• Lodi man finds wife's ashes during police display of stolen property

• Galt City Council rejects study on rent stabilization

• Sarah Palin's book hits the shelves: Locals react

November 17th, 2009

• Clarification

• Lodi Budget and Finance Committee to look into ways to save money on employee benefits

• Regional Roundup

• Decision on summer school expected at tonight's Lodi Unified School District meeting

• Clements gets free water rescue boat

• Redevelopment to be discussed by Lodi City Council again

• Court reinstates death penalty for killer of Lodi grad

• Paying tribute to a Lodian

November 16th, 2009

• Correction

• Public Meetings

• Regional Roundup

• Three members of Lodi-area family fall ill after eating poisonous mushrooms they reportedly found at Lodi Lake

• Sierra Adventure store to close after four years in Downtown Lodi

• Lodi's First Sip event showcases area wineries' latest vintages

• City Council 'triple-dog dared' to ditch cars, use Lodi buses

November 14th, 2009

• Galt school district narrows superintendent search to one

• Regional Roundup

• A first look at 2009 vintages at Lodi's First Sip wine-tasting event

• Watchful neighbor in Lodi helped bust suspected burglars

• Despite budget cuts, some Lodi Unified School District salaries continue to rise

• Despite an increase in homeless students, school districts look to bolster enrollment, raise revenue

• New Galt city manager juggles job, family

November 13th, 2009

• What to expect with new homebuyer tax credit

• Lodi Muslim: Local mosque not involved

• Regional Roundup

• Mayor Larry Hansen points out Lodi's economic progress

• First phase of Lockeford park by 2011?

• Lodi veteran recounts close calls in Vietnam

• Burglary suspects are under arrest

The following stories have received the most reader comments during the last 7 days.

• The country's mess is our fault (152)
• Obama is not a moderate (130)
• Sarah Palin's book hits the shelves: Locals react (67)
• Despite budget cuts, some Lodi Unified School District salaries continue to rise (56)
• Lodi City Council plans to cap number of taco trucks at 22 (48)
• The haves should help the have-nots (30)
• Lodi Flames slim playoff chances vanish in setback to Tracy Bulldogs (25)
• Tokay in, traveling to unbeaten No. 3 Grant for football playoffs (25)
• Nightmares about America's future (23)
• Public health care is a Christian option (23)

ADVERTISEMENT

Is city setting stage for an electric rate increase?

If you're a regular reader of this column, you know that I think Lodi's electric rates need some stability.

You also know that Lodi's rates rank in the top three or so, and I'm not talking about the best, but the highest. So when a reader of this column told me that our city manager was discussing rates in his weekly update, I was interested.

In the weekly update of Dec. 19, 2008, City Manager Blair King states: "Turlock Irrigation District's board voted Tuesday to raise electricity rates 13 percent for residential customers, and 12 percent to 20 percent for commercial and industrial customers beginning Feb. 1. That comes on the heels of a similar increase by Modesto Irrigation District and a 6 percent increase by PG&E in October."

While I appreciate City Manager King keeping us updated on electric rates in the area, you must ask yourself why he would give us these tidbits of information. After all, do you really care what people are paying for electricity in these areas? Unless Lodi decides to start using Turlock or Modesto for electricity, you probably don't. So for me, this looks a bit like laying some foundation for a rate increase in Lodi. So let's look at these rate changes a bit more.

I called Turlock, and the last time they changed residential rates was February 2006. Their new rates are going to be effective February 2009. So their residential customers had no change in rates for three years. Stability.

Modesto increased their rates Jan. 1. Prior to that, they increased rates on Jan. 1, 2008, and May 1, 2008. They are also planning to increase rates 7 percent on June 1, 2009, and 6 percent on Sept. 1. So, while they have changed rates often, the changes are known, unlike Lodi's monthly adjustment.

Now, before you say you are glad that you don't have the rates of Modesto or Turlock, let's take a look at the bills. For this analysis, I assumed 850 kilowatts are used and the only charges are for the kilowatt usage. In other words, I did not add taxes, surcharges for solar energy or Lodi's monthly energy cost adjustment, which except for one month only added to your bill.

Turlock Irrigation District:

$ 91.26 at current rates.

$ 102.83 starting in February 2009.

An increase of 4.1 percent a year.

They have a two-tiered rate structure in winter and three in summer.

Modesto Irrigation District:

$ 118.70 at current rates.

$ 132.94 about one year from now.

This will be an increase of 12 percent.

They have a two-tiered rate structure.

Lodi:

$ 155.35 at current rates.

Lodi has a five-tier rate structure.

So, at current rates, Lodi charges 70.2 percent more than Turlock and 30.9 percent more than Modesto. When Turlock increases their rates, Lodi will be 51.1 percent higher. Heck, Modesto will increase their rates two more times and Lodi's charges will still be 16.9 percent higher.

I am sure that some of you will say that if you don't like Lodi's rates, move. Well, remember that I didn't bring this up; the city manager did, so I think the comparison of rates is very fair.

What the city manager put in the weekly update was accurate but incomplete. He should have included that even with the rate increases in Turlock and Modesto, Lodi's rates are still significantly higher. What the city manager should also tell you is that rates will very likely increase in 2010.

So while it may seem that other utilities are gaining on us, I bet you that our City Council will make sure that we stay in the top five and they will do it by using percentage increases from other places, places that have much lower rates than we do.

Our electric utility pays for most of its power long-term and has secured its debt financing, actually increasing the debt by $17 million for nothing — but that's another story. So, why can't we have stability in our rates?

John Johnson, CFA, is a Lodi-based business appraiser. Contact him at john@johnejohnson.com or 369-1451.