For Immediate Release: March 22, 2019

Public workshops on proposed rate action

To increase reliability, safety amid regulatory changes


The SMUD Board of Directors are holding two public workshops and a public hearing to discuss proposed rate changes.


The Chief Executive Officer & General Manager’s Report and Recommendation on Rates and Services, released by SMUD CEO & General Manager Arlen Orchard, outlines a proposed rate increase of 4.75 percent in 2020 and 4.50 percent in 2021 for all customer classes, a commercial rate restructure, and a proposed charge for on-site renewable electricity generation.


While SMUD has been able to reduce its overall costs by 2 percent, there continue to be new spending requirements that cause SMUD rates to increase. The rate increase will be used for wildfire mitigation, including the increased cost of wildfire insurance and additional vegetation management; additional capacity to ensure reliability during peak demand; technology to support cybersecurity and customer experience; and, investments for new renewable energy resources, and building and transportation electrification to meet carbon reduction goals.


If the action is approved, SMUD customers will still enjoy some of the lowest electricity rates in California — on average about 33 percent lower than neighboring PG&E.  


Also included in the report are the following proposals:

  • A grid access charge for customers with on-site generation facilities, such as solar, that access the SMUD grid.
    • The proposed grid access charge will be effective January 1, 2020 and includes grandfathering provisions for existing customers with on-site generation facilities. Under the proposal, the cutoff deadline to be grandfathered is March 31, 2019.
    • A discount for customers with on-site generation facilities who are also on our low-income Energy Assistance Program Rate (EAPR).
  • A rate restructure for businesses and other non-residential customers that better reflects the cost of providing services, and to improve consistency which will make it easier for business customers to transition between rate classes. 

Detailed information on the proposed rate action and a complete copy of the Chief Executive Officer & General Manager’s Report and Recommendation on Rates and Services can be found on, and at all Sacramento County Public Libraries.


SMUD will work closely with customers and other stakeholders — including community groups, service organizations, business groups, elected officials and more — to discuss these changes.


In addition, two Board of Directors’ workshops and a public hearing will be held for customers to learn more about the process and comment on the proposed changes. All three meetings will be held at SMUD’s Customer Service Center, Rubicon Room, 6301 S Street, Sacramento, CA 95817.


Public Workshop

Public Workshop

Public Hearing

Tuesday, April 23, 2019

10:00 a.m.

Thursday, May 9, 2019

6:00 p.m.

Tuesday, June 4,2019

6:00 p.m.


Accommodations are available for disabled individuals. If you need a hearing assistance device or other aid, or have questions about the proposal, please visit or call SMUD at 888-742-7683*. Written comments can be emailed to or mailed to SMUD, P.O. Box 15830, MS A451, Sacramento, CA 95852-0830.


*Phone number has been edited as of 7/3/19.


About SMUD

As the nation’s sixth-largest community-owned, not-for-profit, electric service provider, SMUD has been providing low-cost, reliable electricity for more than 70 years to Sacramento County and small adjoining portions of Placer and Yolo Counties. SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies, and for its sustainable solutions for a healthier environment. SMUD’s power mix is about 50 percent non-carbon emitting. For more information, visit