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GRASS VALLEY, Calif. December 11, 2019 – By a 3-2 vote, Nevada Irrigation District (NID) Directors declined to move forward with an application to the Local Area Formation Commission (LAFCo) to “fully activate NID’s existing statutory authority to furnish electric service and to amend the District’s Sphere of Influence in order to allow the District to potentially furnish electric service within its existing boundaries and in adjacent exterior areas…” In short, NID’s plan to take over PG&Es infrastructure within the district is not moving forward at this time. However, NID’s offer of $300,196,900 to PG&E stands.
Directors heard a presentation on the item which, among other information, outlined the approval process as follows:
- Public Hearing & Resolution of Application
- Local Agency Formation Commission, LAFCo
- ◦ Municipal Services Review, MSR
- ◦ Fiscal Feasibility Study
- ◦ Risk Feasibility Study
- ◦ Activate Latent Powers
- ◦ Amend Sphere Of Influence, SOI
- CPUC Review
- Vote of the Public
- LAFCo Annexation of Parcels
Directors had questions about overall budget impacts, including possible legal fees. The district would have to self-insure, a big issue for Chair Miller. Director Heck pointed to the $550 million in bond issuance and the debt service needed. Director Wilcox said he is “not sold on the long term benefits of this, but we need an independent analysis to see if it’s is viable.”
The Board voted 3-2 not to approve the LAFCo application. Peters, Heck and Miller voted No with Bierwagen and Wilcox voting Yes.