Manager’s Message: LMUD budget and rate reduction

The fiscal year 2026 and 2027 budget, approved by the LMUD Board of Directors, builds upon our multiyear commitment to strengthen reliability, resiliency, and affordability. At its core is the completion of the Skedaddle Substation and NV Energy interconnection.

Last year, we launched our four-year capital improvement plan, including projects such as the Skedaddle Substation site construction and completion of the new high-voltage transmission line connecting the substation to our system. In December, the completed project will give us a second connection to the regional grid, making systemwide outages caused by a single transmission line a thing of the past. We’re entering a new era of reliability and structurally changing how we purchase and receive power in wholesale energy markets.

Beyond Skedaddle, our budget continues to improve reliability on our own system, including voltage regulator replacements and line hardening on the I-203 distribution line to Eagle Lake, and the grant-funded transmission upgrade between Westwood and Susanville. These projects will help reduce outages and improve service across our district.

Forecasting plays a key role in our budget process, but real-world conditions often diverge from projections. Last year, wholesale energy prices came in lower than anticipated, allowing us to return nearly $830,000 to customers through the California Climate Credit on your upcoming August and November bills and set aside needed reserves for future energy market volatility. By planning ahead, we can absorb short-term price spikes to help keep rates stable. The board created a special capital projects account to fund future reliability and resiliency projects without taking on additional debt, reducing the long-term costs of these projects.

During the May board meeting, our board conducted its quarterly rate review and approved a half-cent rate decrease across all rate classes, lowering the residential rate from 19.5 to 19 cents per kilowatt-hour. This reduction was made possible by prudent financial management and reflects our ongoing commitment to providing safe, reliable, and affordable service. As your community-owned utility, we reinvest every dollar into the system that serves you or return those savings to you.

As our operations evolve, maintaining our expertise is essential. That’s why we’ve added a new power resource manager dedicated to actively managing our wholesale power purchases and ensuring stable, affordable rates and a human resources director focused on supporting a healthy, balanced workforce. These roles help us navigate an increasingly complex energy environment while keeping our mission front and center.

Transparency remains a cornerstone of our operations. The board-adopted budget will be available at lmud.org — along with our quarterly financial dashboard and audited financial statements — so you can follow our financial health throughout the year.

Stay informed by visiting our website and joining us at monthly board meetings — held at 5:30 p.m. on the fourth Tuesday of each month in our boardroom at 65 South Roop Street.

Together, we’re writing the next chapter of LMUD’s story — one grounded in reliability and community service.