The Lassen Municipal Utility District (LMUD) board has just approved a fifth rate increase, as the utility for the last three months has been under collecting.
Based on the cost analysis worksheets (PDCA) used by LMUD for monitoring operational expenses and power purchase costs from WAPA (Western Area Power Administration), there is a consistent upward trend in costs. To prevent budgetary shortfalls, these increasing costs must be passed on to the customer.
The utility was showing an under-collection of four-tenths of a cent.
Per the publicly owned district’s bylaws, the board of directors can increase rates by up to half a cent without a public hearing. The directors grudgingly approved the half-cent step up.
This marks the fifth increase ratepayers have seen since December of last year. With this latest approval, homes will see an additional 4 to 6 dollars more on their bills come January 10th, according to Business Manager Nick Dominguez.
The new 19.5 cent rate will be effective for your December usage; Dominguez shared that this will allow homes to make adjustments this coming month to save energy and thier pocketbooks.
**This article was edited 10:30 am, correcting that LMUD, not WAPA, generates the PDCA. LMUD creates the PDCA for its own tracking purposes but does include purchase costs of power from WAPA