2018 rate change details

To provide incentive for growth in the Sacramento region and encourage regional economic development, SMUD implemented 2018 rate changes to both the Economic Development Rate (EDR) and Rule and Regulation 16 (Rule 16.)

Economic Development Rate

To increase and extend the EDR to attract, retain and help businesses expand in the region, we adopted a 10-year contract period for the EDR since most businesses looking to relocate consider a planning horizon of 10 years. Other recommendations include requiring a customer to certify that a discount on electricity would have a meaningful impact on their business and that the cost of electricity is part of the decision when choosing a location.  A third party will verify both certifications. Additional changes include the following to make it easier to qualify:

  • Remove the industry requirements so that all industries may qualify for the EDR
  • Remove the minimum jobs requirements
  • Remove the “Full service from SMUD” requirement to allow customers to receive power from solar or other distributed energy sources

View Economic Development Rate change FAQs

Following are the discount options for the EDR, including a higher discount for businesses in disadvantaged communities. 

Economic Development Rate discount options 

  Year 1  Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Option 1
6% 6% 6% 6% 6% 5%  4% 3% 2% 1%
Option 2
4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%  4.5%

Economic Development Rate discount options for disadvantaged communities

  Year 1  Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Option 1
8% 8% 8% 8% 8% 6.5%  5% 3.5% 2% 0.5%
Option 2
6% 6% 6% 6% 6% 6% 6% 6% 6% 6%

Rule and Regulation 16

To further encourage economic development, we adopted offsetting the fees charged to businesses for required SMUD infrastructure for new or upgraded electric service to their business.

View Rule and Regulation 16 change FAQs

Changes to residential rates

System Infrastructure Fixed Charge (SIFC) 

We will prorate the SIFC for bills with less than 27 days of service so customers pay it proportional to the number of days their home received power from SMUD.

Other changes

Hydro Generation Adjustment (HGA)

The HGA language has been modified to increase the cap on the Hydro Rate Stabilization Fund (HRSF) from 5% to 6% to better account for fluctuations in precipitation, as well as set a precipitation cap for the HGA transfer calculations. Additionally, minor language changes related to certain tariff sheets and rules and regulations have been implemented.