Planning for Tomorrow’s Reliability
At Lassen Municipal Utility District, we’re doing more than just keeping the lights on; we’re planning for the future and making smart decisions with your dollars.
Each spring, our staff, led by our financial team, prepares the next fiscal year’s budget. They forecast purchased power costs, plan capital improvements, and examine every line item so that we can continue to deliver on our mission of providing safe, reliable, and affordable service to our community.
Budgeting is an art and a science. We work with the best information available at the time—wholesale energy prices, weather predictions, planned maintenance schedules, and more—but results often differ.
Last year, for example, wholesale energy prices ended up lower than expected. That, combined with careful spending, will allow us to finish this fiscal year under budget. Recognizing that these savings belong to our customers, the board voted in March to return nearly $830,000 to you through the California Climate Credit. These funds would normally be used to offset the cost of renewable power. Eligible customers will see 2 1-time credits, each for $39, on their August and November bills.
Our board of directors is focused on the district’s long-term financial health. Directors are committed to keeping our community at the forefront of every decision they make. They understand that unexpected increases in energy costs have a direct impact on you, which is why we set aside a portion of last year’s savings in a board-designated power market volatility account, giving you a buffer against sudden spikes in wholesale power prices. We also created a special capital projects account to help fund future infrastructure improvements without the need to take on additional debt. These reserves allow us to continue improving the reliability of the system that serves you, while keeping rates stable and affordable.
Investing in our infrastructure remains a top priority. This year’s board-adopted budget will include funding for continued work on the 4-year, $45,000,000 capital investment program focusing on wildfire mitigation, system hardening, equipment upgrades, and long-term reliability improvements. We also allocate significant funding for vegetation management, which helps improve grid resiliency and reliability. Our capital improvement plan ensures our grid remains resilient and ready to serve you for decades to come.
Keeping you informed through clear and concise communication is important. Our audited financial statements and annual budgets are available at lmud.org. We have also created a financial health snapshot with our quarterly financial dashboard. The dashboard is online and published quarterly in Ruralite. These tools let you track the district’s financial health, keep you informed, and help us to live our core values of transparency and integrity.
As always, I invite you to stay engaged. Visit lmud.org to review our financial dashboard and budget documents, or join us at our monthly board meeting at 5:30 p.m. on the 4th Tuesday of each month in the LMUD Board Room at 65 South Roop Street.
Together, we’ll continue building a resilient and sustainable energy future for Lassen County.
Nick Dominguez
General Manager