Starting next month, you’ll see another jump in your energy bill as Lassen Municipal Utility District’s Board of Directors approves the latest half-cent increase.
Soaring natural gas prices are fueling the spike in rates, for now, a third time for the utility, as General Manager Pat Holley says, has resulted in a drastic increase in energy purchase costs throughout the state. Holley read a statement from the NCPA, a leading national government purchasing cooperative, issued when the natural gas crisis first hit the state, saying cost increases are unprecedented and very high that continue to persist—resulting in the district receiving a January bill for purchase costs of 2.3 million dollars when a typical billing would be around 800,000.
You can prepare for another increase in the future as the district is facing a total 1.2 cent under-collection, the latest increase only making up a half-cent of this amount, and will need to make up those costs to meet bond obligations requiring LMUD to carry a 125% net revenue, said Director Urionaguena.
LMUD and other energy entities have sent letters to urge legislative actions on the Natural gas crisis to see some relief.
A public hearing has been set for the board’s next meeting on March 28th at 5:30 to make up the remaining balance; Holley stated more data would be received within the month, which could alter the final remaining balance of what is currently estimated at another 7/10th of a cent.
The latest increase is expected to hit on your next billing cycle.
