Utility Increase Doubleheader
Many residents of Lassen County (located in Northeast California) are feeling the increased cost of utility services. I noted sometime ago that PGE had projected rate increases for the winter.
Hardest hit by the increased costs of necessities are the poor and those on fixed incomes. Even with programs available to assist these groups, the psychological impact is apparent.
In an October 19 doubleheader, the Lassen Municipal Utility District (LMUD) and the City of Susanville increased rates.
LMUD raised it’s facility charge (formerly known as meter fee) from a multi-decade $3.50 to $8.00. This charge is significantly less than originally reported. Additionally, LMUD established a connection fee of $25.00.
The City of Susanville raised its natural gas rate by 79 cents per therm. Surprisingly the Council chambers were not packed by the public. A large stack of Agendas sat unused.
The voters of Susanville approved the establishment of the gas utility some five years ago. To date, hookups have not met expectations. If expectations had been met the fixed costs of the system would have been spread among a larger user base thus reducing the impact on rates.
Each member of the City Council understood the impact of their decision. They are acutely aware of our unemployment rate and the number of citizens living on fixed incomes. Our local “Official Blogger” claimed that Councilman Callegari was the only one “that understood the hardship that this increase would cause and voted against the increase.” Unfortunately, Councilman Callegari missed the point that this rate increase is not a one year deal, the City has been running a deficit in this service, and the proposed rate would represent breakeven if all assumptions were met.
Somehow our local “Official Blogger” finds it unacceptable for the City to break even on this service. This is an enterprise service that is not permitted to run at a deficit.
We will see what impact these increases have on our community.
Hardest hit by the increased costs of necessities are the poor and those on fixed incomes. Even with programs available to assist these groups, the psychological impact is apparent.
In an October 19 doubleheader, the Lassen Municipal Utility District (LMUD) and the City of Susanville increased rates.
LMUD raised it’s facility charge (formerly known as meter fee) from a multi-decade $3.50 to $8.00. This charge is significantly less than originally reported. Additionally, LMUD established a connection fee of $25.00.
The City of Susanville raised its natural gas rate by 79 cents per therm. Surprisingly the Council chambers were not packed by the public. A large stack of Agendas sat unused.
The voters of Susanville approved the establishment of the gas utility some five years ago. To date, hookups have not met expectations. If expectations had been met the fixed costs of the system would have been spread among a larger user base thus reducing the impact on rates.
Each member of the City Council understood the impact of their decision. They are acutely aware of our unemployment rate and the number of citizens living on fixed incomes. Our local “Official Blogger” claimed that Councilman Callegari was the only one “that understood the hardship that this increase would cause and voted against the increase.” Unfortunately, Councilman Callegari missed the point that this rate increase is not a one year deal, the City has been running a deficit in this service, and the proposed rate would represent breakeven if all assumptions were met.
Somehow our local “Official Blogger” finds it unacceptable for the City to break even on this service. This is an enterprise service that is not permitted to run at a deficit.
We will see what impact these increases have on our community.
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