$35.6 Million Capital Budget for T&D Infrastructure: The district proposed a $35.6 million capital budget for transmission and distribution work in 2026, representing a $7.4 million increase from 2025. This includes $18.9 million for routine customer service projects driven by growth in Mountain House, Riverbank, and North/East Modesto areas, plus $4.2 million for the final payment on a critical 230/69kv transformer needed for system reliability.
Significant Material Cost Inflation Continues: Staff reported that material costs have increased 20-40% annually for the past four years, with some assets experiencing 200% price increases since 2020-2021. Supply chain challenges persist with 3-5 year lead times for transformers and major substation equipment, forcing the district to adopt new procurement strategies and maintain larger spare inventories.
Water Conservation Through Regulating Reservoirs: The district is moving forward with design work on lateral 6 and 8 regulating reservoirs, budgeting $800,000 for engineering after already acquiring the land. Each regulating reservoir is projected to save approximately 8,000 acre-feet of water annually, with potential total savings of 30,000 acre-feet per year if all planned reservoirs are completed.
Pole Relocation Costs: MID will spend $1.3 million on pole relocations, primarily for North County Corridor and Highway 132 projects, with MID responsible for 60% of costs when facilities are located on public right-of-way.
Wood Pole Inspection Program: The district is in the fourth and final year of a comprehensive pole inspection program that began in 2023, with $1.7 million budgeted for replacements and restorations based on inspection findings.
Underground Infrastructure Replacement: $3.3 million allocated for replacing aging underground conduit cable and number 6 copper, including 4 miles of underground cable and 6 miles of overhead conductor replacement.
Electric Reliability Performance: MID maintains superior reliability metrics compared to other California utilities, with customers experiencing less than 45 minutes of outage duration and approximately 0.5 outages per year.
Don Pedro Upgrades: Electric Resources budgeted for ongoing Don Pedro generation upgrades and project improvements, with costs fluctuating year-to-year based on project phases.
Water System Improvements: Water operations proposed projects including Highline flow control improvements, pipeline replacements, SCADA upgrades, and monitoring well installations to meet SGMA requirements.
Domestic Water Infrastructure: $2.1 million budgeted for domestic water projects including ozone power supply replacement, membrane basin replacement, and terminal reservoir switchgear upgrades.
For questions or comments about MID operations, contact the district at (209) 526-7360. The next board meeting is scheduled for September 9, 2025, at 1231 Eleventh Street, Modesto, CA at 9:00 AM.
