2025 Year in Review, Lassen Municipal Utility District

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Lassen Municipal Utility District

5 Year in Review

Connecting and supporting the community we serve by providing safe, reliable and sustainable service.

2025 Year in Review

General Manager Nick Dominguez

As we look back on 2025 and forward to the new year, I’m proud of what our team, board and community have accomplished together. It’s been nearly four decades since voters placed control of our electric utility in local hands, and Lassen Municipal Utility District’s mission of delivering safe, reliable and sustainable service at an affordable cost continues to drive our actions every day. This past year was about building on that legacy, strengthening our grid and stewarding your dollars wisely to deepen our connection with the people we serve. November marked my first anniversary as LMUD general manager. When the board appointed me in November 2024, I felt honored and humbled by the trust placed in me. Over the past year, I have come to appreciate the dedication of our staff and the engagement of our community even more. It is a privilege to serve alongside you. I remain committed to leading through service and putting your needs first.

Progress and Reliability

In the past year, we kicked off our four-year capital improvement plan. At the center is the Skedaddle Substation and NV Energy interconnection. Once we awarded contracts, the site was prepared, construction began, and key equipment was delivered to the substation.

In 2026, we’ll finish building a new high-voltage transmission line, finalizing LMUD’s connection to the new substation. When this project is completed in December, it will give us a second connection to the regional grid and make systemwide outages caused by a single transmission line a thing of the past.

We’ve also launched other key infrastructure projects. Voltage regulators across the system are being upgraded to improve power quality, and line-hardening work on our I-203 distribution line to Eagle Lake will help reduce outages to customers served by that line. These efforts—along with ongoing vegetation management, pole replacements, and future facility and infrastructure upgrades—lay the groundwork for a more dependable and resilient grid.

Financial Stewardship

Strong finances are the foundation of providing reliable service. During the past year, we put more emphasis on developing greater budget accuracy and tracking financial performance against our budget every month. These regular reports help management, the board and you monitor the district’s financial health.

Our recently adopted three-year rate plan builds on this discipline. By phasing in adjustments gradually, rather than waiting to collect costs after the fact, the plan ensures revenue keeps pace with inflation and future contract obligations while funding essential infrastructure investments.

This approach helps keep rates lower in the long term and allows us to continue investing in our community.

Community and Service

Throughout 2025, we remained focused on the people we serve. Our Winter Energy Assistance Rate and emergency energy assistance program provided discounts and one-time credits to income-eligible households, helping keep the power flowing to those who need it most.

Our rebate programs helped residential and commercial customers be more efficient with their energy use while saving energy and money. We continued investing in youth and community outreach through high-voltage safety demonstrations, scholarships and youth sponsorships. This continued investment in our community reaffirms our commitment to our core values of safety and sustainability.

Looking Ahead

In 2026, we will complete the Skedaddle Substation and NV Energy interconnection, continue wildfire mitigation and system hardening, and launch new initiatives to enhance reliability, affordability, and customer experience. Your engagement and support makes this work possible.

As always, I invite you to stay informed and involved. Join us for our monthly board meetings in the LMUD boardroom at 65 S. Roop St. Visit lmud.org for board meeting dates and detailed reports.

Together, we’re building on our successes and writing the next chapter of LMUD’s story.

Nick Dominguez General Manager

LMUD Financial Update

Business Manager Kelli Thompson, MBA

I’m delighted to provide you with an update regarding LMUD’s financial position this past year and what we’re doing to prepare for the future. We began the year with a strong financial review from independent auditors, who confirmed that our records are accurate and well-kept. This is more than a formality, it’s a sign of trust and transparency that we take seriously.

From July 2024 through June 2025, LMUD generated approximately $30 million in revenue, right on target with our budget. We spent about $12.7 million purchasing the wholesale electricity we use to serve your home or business, and $11.4 million operating the utility. These costs came in lower than expected, which allowed us to save money and strengthen our financial reserves. Those reserves are critical, as they help us maintain stability and protect customers from sudden price swings in the volatile energy market.

We didn’t just save; we invested. Our savings supports equipment maintenance and upgrades, ensuring our infrastructure remains reliable. These savings have been essential in offsetting the sharp rise in construction costs since the COVID-19 pandemic. Industrywide price increases in materials and labor have significantly impacted projects such as the Skedaddle Substation, pushing costs above original estimates. By planning ahead and building reserves, we’ve been able to absorb these unexpected increases without compromising reliability or service. We set aside funds for utility investments and emergencies, because planning ahead is part of our commitment to you.

Looking forward, we’ve developed a new annual budget and a four-year capital improvement plan. This plan includes completing the Skedaddle Substation, replacing aging equipment, improving power lines to reduce outages and remodeling our 50 N. Gay St. building to serve as LMUD’s future headquarters. These projects will enhance reliability, safety and efficiency for decades to come.

Communication with you is equally as important as the infrastructure we steward. In addition to monthly board meetings, we’ll provide quarterly updates with easy-to-read charts and summaries. These updates will demonstrate how we’re spending your money and how our projects are progressing.

At LMUD, our mission is simple: deliver safe and reliable power at fair rates while planning responsibly for the future. Thank you for your continued support. We’re proud to serve you and look forward to keeping you informed every step of the way.

Lassen Municipal Utility District

Fiscal Year July 1, 2025, through June 30, 2026

Board of Directors Approved Budget

OPERATING REVENUE

Sales to Customers

Other Operating Income

Total Operating Revenues

OPERATING EXPENSES

Purchased Power

Transmission

Distribution Operations

Distribution Maintenance

Customer Service

Customer Service and Information Expense

Public Benefits

General & Administrative

Total Operation & Admin Expenses

Depreciation

Interest Expense

Total Cost of Electric Services

Total Income from Operations

NON-OPERATING REVENUES & EXPENSES

Interest Income

Other Income

Total Non-operating Revenues (Expenses)

Net Contribution to Margins

NON-CASH ITEMS ADDED BACK TO CASH FLOW

Depreciation (Included above)

Net increase/decrease in FMV Investments

Other Post Employment Benefits

Amortization of Debt Acquisition

Expected Contribution to Cash

Budgeted Cash Investments

$29,652,814

$1,278,138

$30,930,951

$16,255,779

$35,985

$2,465,528

$2,074,671

$982,358

$146,568

$320,707

$4,681,532

$26,963,128

$2,258,956

$856,199

$30,078,283

$852,668

$1,192,693 $920,641

$2,113,334

$2,966,002

$2,258,956 $200,000 $321,858

($88,799)

$5,658,017

$4,260,000

OPERATING REVENUE NON-OPERATING REVENUE

$30,930,951 OPERATING EXPENSES $26,963,128 $2,113,334

Giving Back to the Community We Serve

By Public Relations Manager Theresa Phillips, CCC

As a community-owned utility, Lassen Municipal Utility District’s focus is on the people we serve. Through our Public Benefits Program, the equivalent of 2.85% of our energy sales is reinvested in our community. These funds are earmarked specifically for programs that directly benefit our customers.

Programs that are funded through Public Benefits include:

• Winter Energy Assistance Rate

• Emergency energy assistance

• Energy-efficiency rebates

• Community education

• Youth sponsorships and scholarships

In addition to the programs we offer our customers, we take pride in our community involvement. In the past year, you found us participating in local events, as well as our own.

In conjunction with Lassen Humane Society, we collected more than 500 pounds of pet food and treats with our Pet Treats for Lights pet food drive. We shared lunch with hundreds of customers at our 18th annual Customer Appreciation Celebration. During Public Power Week, we hosted a bakery takeover at Susanville Supermarket, where customers were treated to a free doughnut and hot beverage.

Our crews supported the community by lending a hand with the setup of the community Christmas tree and continued the decadeslong tradition of hanging holiday lights across Main Street. They also volunteered their time and talents to honor our local servicemen and women by hanging Blue Star banners.

We partnered with Lassen County Office of Education to provide materials and equipment for the first-ever egg drop at the annual Children’s Fair. Our management team attended meetings with local service clubs to keep key stakeholders up to date while gathering input from those we serve.

Living our core values of transparency, integrity, safety, teamwork and sustainability is at the heart of all we do. LMUD is more than just an electric company. We continue to provide affordable energy even within California’s challenging energy landscape. We take pride in adding value to the community we serve, now and into the future.

LMUD by the Numbers

Rate Comparison

$6,047

Connecting the Community We Serve

Helpful information to keep you informed

Where to Find Us

• At LMUD’s business office: 65 S. Roop St., Susanville

• By phone: 530-257-4174

• On LMUD’s website: lmud.org

• On social media: facebook.com/lassenmud

• In print: Lassen’s Ruralite is delivered to your mailbox every month and online at lmud.org.

Meet With Us

Join us throughout the year at these annual events:

July 18: Lassen County Fair Parade

Sept. 3: LMUD’s Customer Appreciation Celebration

Oct. 4-10: Public Power Week Celebration

Manage Your Energy Use and Report Outages

• SmartHub: Call LMUD’s office at 530-257-4174 to enroll.

• Outage text alerts: Text the letters LMUD to 877-754-7697.

Oct. 30: Uptown Trick or Treat

Dec. 5: Magical Country Christmas Board meetings: Board meetings are typically held the fourth Tuesday of the month. Please check our website, lmud.org, for any schedule changes.

Mission Statement

Lassen Municipal Utility District’s mission is to serve our community. We strive to provide reliable service at the most reasonable cost with a focus on safety and sustainability. We work toward being an integral part of the community we serve, while maintaining a skilled and valued workforce.