Chico Times

Four Gridley residents filed a lawsuit Feb. 26 against the city and the city council over what they allege is an unconstitutional rise in electricity rates. The plaintiffs believe city council members are primarily behind the upcharge. 

The suit was filed with the Butte County Superior Court of California on March 1 by plaintiffs Scott McMillan, Michael McMillan, Allison Woolbert and Tyrell Ford. They are represented by the McNeill Law Offices in Nevada City.

Many residents not included in the lawsuit stand behind allegations that the city council is to blame since the rise in electricity prices is not contributed to a rise in service. 

"As of June 24, 2020, the budget called for the city to charge $2.2 million more than it costs to deliver electricity to its residents," said Pat Coghlan, a Gridley resident, told Chico Times. "That's a 37% markup in the middle of a pandemic for a community with high unemployment and poverty to start with."  

Coghlan also says even though some city council members were not re-elected, the newly elected members have no made an effort to provide a solution. 

"A few of us who have been able to put up with the abuse metered out by this administration have managed to get some of the glaringly egregious proposals either lowered or postponed. Three city council incumbents were not re-elected, but there is still a 3-2 majority for continuing in this direction," Coghlan said.

As someone who has fully invested themselves in the ongoing electricity debate, Coghlan is hesitant to believe that the filed lawsuit will provide the necessary solution. 

"This lawsuit looks like a good thing, until you realize that the residents may never get anything," he said. "The city has not curtailed the impact fee subsidy program and they continue to tell the community that new subdivisions will not cost the existing residents anything. While the lawsuit plays out, Gridley is quietly giving away the collected resources by promising to provide $30,000 plus in infrastructure improvements for a contribution of about $7,500 for selected new home buyers. Unless the impact fee waiver program is suspended before any more waivers are given or the money will not be there to give back!" 

The lawsuit asks for a court decision to end the disagreement after the increased rates continued to be implemented in November 2020. The plaintiffs seek restitution.

The suit reads: "A present dispute and controversy exists between plaintiffs and defendants, in that plaintiffs contend that the recent approval of new residential electric rates effective Nov. 1, 2020, is void and invalid due to the incorporation of unlawful charges in the rates that are in excess of the reasonable costs of services, are directed to general governmental purposes, and are not fairly allocated to reflect a fair or reasonable relationship to the ratepayers' burdens on or benefits received from the city electric services."

The California Public Utilities Commission offers assistance payment plans on its website for those impacted by COVID-19.