Public workshops on proposed rate action
To increase reliability, safety and renewable energy benefits for everyone
The SMUD Board of Directors is 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 Paul Lau, outlines a proposed rate increase of 1.5 percent in March 2022 and 2 percent in January 2023 for all customers, a new solar and storage rate, a new optional residential critical peak pricing rate, updates to transmission rates and minor tariff language changes.
While SMUD works hard to control costs and operate efficiently, the need for a modest rate increase is attributed to several factors including wildfire prevention and mitigation, infrastructure improvements to maintain high reliability, increased operating costs and clean energy compliance requirements.
SMUD’s proposed rate changes are well below inflation and rates would remain among the lowest rates in the state—on average about 36 percent lower than neighboring PG&E’s rates.
SMUD worked with community and industry stakeholders over the past two years to develop the new proposed solar and storage rate in an effort to maximize solar use and transform the industry to one of solar plus storage, which expands solar and storage use while providing benefits to everyone.
Under the proposed solar and storage rate:
- Current solar/NEM 1.0 customers can remain on that rate through 2030.
- For customers connecting to SMUD’s grid after January 1, 2022, SMUD would pay 7.4 cents per kWh, regardless of the time of day or season for all energy sold back to the grid.
The proposal includes a new interconnection fee to connect new solar systems to the grid. This one-time fee recovers the cost of services such as document review, validation of system size, integration costs and processing fees. SMUD is currently one of a few utilities not recouping these costs. This would be effective January 1, 2022 for new connections.
A new optional residential critical peak pricing rate is also proposed:
- While time-of-day rates remain the standard rate for all customers, this voluntary rate would provide customers with a discount on their summer electricity bills in exchange for reducing electricity during emergency conditions when energy demand is at its highest.
- Customers would be charged an additional per kWh charge during an event, which may last 1-4 hours. Events are declared in advance.
- In exchange, enrolled customers receive a discount on their off-peak and mid-peak summer pricing.
- Available to customers who voluntarily enroll in the smart thermostat program or the storage incentive programs.
Apart from the proposed rate changes, SMUD is proposing a Virtual Net Energy Metering program to bring the benefits of solar to under resourced multi-family dwellings. Virtual Net Energy metering allows solar and storage customers to share their clean energy through the grid with others in the community.
To support the transition to a solar and storage market, which delivers wider reliability and environmental and health benefits to all customers, SMUD will offer storage programs and incentives to encourage the adoption of solar plus storage. SMUD will invest $25 million in storage incentives between now and 2030 to help maximize the benefits of solar energy.
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 smud.org/RateInfo.
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 virtually.
- Thursday, July 8 at 5:30 p.m.
- Tuesday, July 27 at 10 a.m.
- Tuesday, August. 31 at 5:30 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 smud.org/RateInfo or call SMUD at 855-736-7655. Written comments can be emailed to email@example.com or mailed to:
P.O. Box 15830, MS A451
Sacramento, CA 95852-0830.
As the nation’s sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for nearly 75 years. 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.