LMUD GM to testify in Sacramento Wednesday

Lassen Municipal Utility District General Manager Nick Dominguez travels to Sacramento Wednesday to testify before the Assembly Local Government Committee is support of Assembly Bill 1945 — a bill designed to allow the publicly owned utility district’s customers to pay in advance for energy use as a credit rather than receive a bill after usage. Municipal Utility Districts currently lack the statutory authority to offer this billing alternative.

AB1945 allows LMUD to offer ratepayers a prepay billing option. Specifically, this bill authorizes a district furnishing electrical service to fewer than 100,000 customers to offer consumers a prepay option for electrical service if the consumer opts in.

By allowing customers to prepay for electric service, AB 1945 provides ratepayers with an additional tool to manage household expenses, track usage more closely, and avoid costly bills and fees. Under this bill, traditional billing options are preserved and participation in the program must be voluntary. The bill also requires a district to provide up-to-date balance information and low-balance alerts.

AB 1945 expands consumer choice and makes energy more affordable for ratepayers.

According to a letter Dominguez in support of the bill, “On behalf of the Lassen Municipal Utility District, I am writing to express our full support of AB 1945. This legislation would enable LMUD to offer voluntary pre-pay service programs and allow customers to opt-in to electronic notices in lieu of traditional mail notifications.

“As a Municipal Utility District committed to affordability, transparency, and inclusion, LMUD recognizes the growing demand for flexible billing options. Pre-pay service models are common throughout the electric industry. They allow customers to pay for service in advance, monitor their usage, and avoid deposits, late fees, or untimely suspension of service. These programs are especially beneficial for income-challenged customers and customers seeking greater control over their energy budgets.

The current language in the Public Utilities Code presents a significant barrier to implementing pre-pay programs.

The PUC‘s mandatory mail notification procedures prior to service suspension are incompatible with the automated, opt-in nature of pre-pay service.

LMUD believes that customers who voluntarily choose pre-pay should be exempt from these requirements, provided that LMUD offers clear disclosures, usage tracking, and proactive low-balance alerts.

This amendment would not only modernize LMUD’s operations — it would also align with California’s broader energy affordability goals, including recent initiatives to reduce costs, expand customer choice and support equitable access to affordable energy.”