How LMUD Sets Electric Rates
Before any changes to LMUD’s electric rates can be considered, California law requires the utility to prepare and present a formal document known as a 14401 Report.
This report—named after Section 14401 of the California Public Utilities Code—is a written recommendation from LMUD’s General Manager outlining the proposed rate adjustments, the financial rationale behind them, and how they align with the District’s long-term goals for reliability, affordability, and infrastructure investment
As a publicly owned utility governed by the California Municipal Utility District Act, LMUD operates within a unique framework that prioritizes transparency, local control, and community benefits. Unlike investor-owned utilities, LMUD’s rates are not set by the California Public Utilities Commission. Instead, the LMUD Board of Directors, elected by local ratepayers, has the authority to establish rates, fees, and charges for electric service.
Rate-setting is guided by several key principles:
- 📊 Financial Sustainability: Rates must cover the cost of providing reliable service, maintaining infrastructure, and planning for future needs.
- 🧾 Legal Compliance: The Board must follow procedures outlined in the Municipal Utility District Act, including the preparation of a 14401 Report and holding a public hearing before adopting any rate changes.
- 🗣️ Public Participation: Ratepayers have the right to review, question, and comment on proposed changes before they are finalized.
Upcoming Rate Hearing – Make Your Voice Heard
LMUD will hold a public hearing on the proposed rate adjustment:
📅 Date: Tuesday, October 28, 2025 🕠 Time: 5:30 PM 📍 Location: LMUD Board Room, 65 S. Roop Street, Susanville, California
This hearing is your opportunity to learn more about the proposal, ask questions, and share your thoughts directly with the Board. Your input helps ensure that LMUD’s decisions reflect the values and priorities of the community we serve. To view the 14401 report, or the hearing announcement, please visit our Public Notices page.