The Rate Crisis
How decades of mismanagement led to the largest rate hike in IID history
In late 2024, the Imperial Irrigation District implemented the most severe electricity rate increase in its century-long history. Residential customers saw their base rate jump from 11.69¢ to 19.76¢ per kWh — a perceived 69% overnight increase that devastated working families across the valley.
Why it matters
Imperial County already has the highest unemployment rate in California at 18.6% and a median household income of just $56,000. This rate shock hits the people who can least afford it.
The Z-Global legacy
The roots of today's crisis trace back to the IID's relationship with Z-Global, a regional energy consulting firm that played a central role in managing interconnection queues and advising on battery and solar projects.
By 2017, escalating public allegations of conflicts of interest forced the IID to retain outside legal counsel, Mike Aguirre, for an independent investigation. The probe revealed controversial BESS contracts, procurement irregularities, and the need to unwind agreements with the district.
The bottom line
Decades of prioritizing developer interconnections without enforcing strict cost-recovery left the core distribution network starved of maintenance capital. The result: $1.3 billion in deferred maintenance and a grid with transformers dating back to the 1930s.
The rate hike, by the numbers
| Customer Class | Previous Base Rate | 2025 Rate | 2026 Rate | 2027 Rate |
|---|---|---|---|---|
| Residential | 11.69¢ | 19.76¢ | 22.30¢ | 24.38¢ |
| Mobile Home | 10.93¢ | 18.84¢ | 20.87¢ | 22.86¢ |
| Large General Service | 9.30¢ | 13.95¢ | 13.89¢ | 13.86¢ |
| Agricultural Pumping | 9.52¢ | 15.33¢ | 15.33¢ | 15.33¢ |
Source: Official IID Rate Update schedules
Why it matters
While IID's CFO argued the "real" systemic increase was only 8.5% (because the old ECA surcharge averaged 18.34¢), what families saw on their bills was a base rate nearly doubling overnight. For a county in economic crisis, perception is reality.
The $81 million band-aid
Facing public fury, the Board approved $81 million in summer power bill relief. But the fundamental problem remains: rates are going up through 2027 and beyond, and no structural solution has been offered beyond burdening ratepayers.
There is a structural solution — one that brings in $30 million per year in new revenue instead of extracting it from captive customers. It's the data center the Board is currently blocking.
Learn about the data center solution →Rates keep rising. The Board won't act. You can.
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