At the December 20, 2022, Lassen MUD Board of Directors meeting, the board voted to increase the kilowatt-hour charge by 1.5 cents. This was in addition to the half-cent increase that was approved at the November 2022 board meeting. Effective with your December energy use, the total rate increase is 2 cents per kilowatt-hour. This brings LMUD’s residential rate from 14 cents per kilowatt-hour to 16 cents.
This rate adjustment represents a 14% increase from LMUD’s 2021 rate. The district’s purchase power rate has increased by about the same amount in this same time frame. However, when you compare purchase power prices over the past 2 years, LMUD’s costs have increased by more than 60%.
Nick Dominguez, LMUD’s business manager, explains what is driving this rate increase.
“As prices for everything continue to rise, it’s important to remember that LMUD is not shielded from this,” Nick says. “We are seeing the same price increases in our bills that you’re seeing at home. Purchased power is by far our largest expense, and any unexpected change in what we pay for our power greatly impacts what we charge our customers.”
What does this rate increase mean to you? In simple terms, every 1,000 kilowatt-hours used will now cost an additional $20. For example, if a customer’s energy use in January 2022 was 1,500 kilowatt-hours, the charge for that energy is $210. The cost for that same amount of energy is now $240.
Of course, energy is not the only thing everyone is paying more for today. According to the U.S. Department of Labor and Statistics, there was a 17.5% increase in the price of gasoline from October 2021 to October 2022. Groceries
increased by 14%, and energy increased 17.6% in the same period.
No matter how necessary, rate increases are never welcomed. Fortunately, there are measures you can take to reduce your energy use. Visit Lassen Municipal Utility District and click on the banner at the top of the home page. We have compiled a list of tips that can help you reduce your energy use and save money on your utility bills.
Customers can download LMUD’s SmartHub app to monitor energy use. The app has features such as setting high use alerts and a view of day-to-day use to help avoid utility bill sticker shock. Find the SmartHub app in the Apple Store and Google store. For help signing up, call LMUD at (530) 257-4174.
Customers who need assistance meeting monthly bills can contact LMUD’s customer service department. Staff can help customers apply for one of LMUD’s assistance programs, or, if needed, they can help set up a payment arrangement. LMUD’s goal is to always keep the power flowing to customers’ homes.