OAKDALE — Oakdale city leaders are exploring whether they can move all residents under one electric provider, potentially cutting ties with Pacific Gas & Electric (PG&E) in favor of the Modesto Irrigation District (MID).

The city currently operates under a dual-provider system. About 7,000 households get electricity from PG&E, while around 1,000 are served by MID. But the difference in cost between the two is substantial.

Interim City Manager Jerry Ramar said PG&E customers in Oakdale pay an average of $250 more per month than those on MID service. That adds up to more than $3,000 annually per household.

Citywide, that gap could mean up to $21.5 million in potential annual savings, according to Ramar's estimates. Those numbers prompted the Oakdale City Council to unanimously direct staff to move forward with a feasibility study examining the legal and logistical path to citywide consolidation under MID.

"I was asked to look into it because PG&E rates are exceptionally high right now, and they seem to continue going higher," Ramar said. "Whereas we have about 1,000 homes on MID, and their rate increases are much lower."

Ramar said he contacted several experts who recommended a consulting firm to lead the study. The consultants returned a proposal faster than expected, and Ramar plans to bring it to the council on June 2 for funding approval. He estimated the study would cost between $50,000 and $75,000 and would likely be paid from the city's general fund.

However, PG&E has made clear it has no intention of selling its infrastructure. Company representative Eric Alvarez told the council that eminent domain would be costly, pointing to the South San Joaquin Irrigation District's ongoing $28 million battle to acquire PG&E infrastructure since 2008.

"I understand where they're coming from," Ramar said. "They invested money to provide a service for the community. But our community thinks that their price is too high, and they want us to look at alternatives."

The feasibility study won't guarantee a switch to MID, but it will determine whether such a move is possible.