LMUD Board to Discuss Another Round of Rate Increases as Natural Gas Drives Price Hikes


Lassen Municipal Utility District (LMUD) will consider raising the cost of your power for a third time and a possible fourth just one month after homes started feeling the latest increase.

Tomorrow the board meets to consider the next raise and will set a second public hearing to consider another one. Tuesday, as allowed in their bylaws, the board can raise costs by a half-cent without a public hearing notice, but one must be set to increase rates beyond that. This half-cent step, on average, can add 5 dollars to your energy bill for a typical home in Susanville.

General Manager Pat Holley says, “the board is considering the raise because of continued increase in WAPA power costs due to continued soaring natural gas prices and the severe winter weather the region has been experiencing. Holley explained natural gas drives electricity costs as it drives half of power supply plants. He added that the company’s “billing in January (due to peak costs) was 2.3 million dollars compared to last year’s 800,000 bill. Holley says LMUD hopes the trend will be downward in the coming months, and they are projecting forward as best as possible.

Although An amount has yet to be determined until the public hearing is set, Holley says it could be another 7/10th of a cent. LMUD adds that completing the Skedaddle substation connecting to NV energy will help shield the company from the California market and stabilize rates.

You will have an opportunity to voice your comments during the board meeting tomorrow, which will be held at the LMUD offices on S. Roop street starting at 5:30. The public hearing for the subsequent rate adjustment is scheduled for March 28th at 5:30.