Lassen Municipal Utility District (LMUD) General Manager Nick Dominguez is set to testify before the California Assembly Local Government Committee in support of Assembly Bill 1945 (AB 1945). This bill aims to authorize publicly owned utility districts, like LMUD, to offer customers the option to prepay for their electricity usage. Currently, Municipal Utility Districts do not have the legal authority to provide this billing alternative.
AB 1945 would allow districts serving fewer than 100,000 customers to offer a voluntary prepay billing option. Customers who opt in could pay for their electric service in advance, giving them more control over household expenses, enabling closer monitoring of energy use, and helping to avoid unexpected bills, late fees, or service suspensions. Traditional post-usage billing would remain available, ensuring participation is entirely voluntary. Additionally, the bill requires utilities to provide up-to-date balance information and send low-balance alerts to participants.
In a letter supporting the bill, Dominguez emphasized LMUD’s commitment to affordability, transparency, and inclusion. He noted that prepay programs are common in the electric industry and are particularly beneficial for income-challenged customers and those wanting better budget control. However, current Public Utilities Code provisions, including mandatory mail notifications before service suspension, prevent LMUD from implementing automated prepay programs.
Dominguez advocates for an exemption from these requirements for customers who opt into prepay, provided LMUD offers clear disclosures, usage tracking, and timely low-balance alerts. Passing AB 1945 would allow LMUD to modernize its operations and align with California’s goals to increase energy affordability, expand consumer choice, and promote equitable access to utility services.
