2018 rate change proposal

The 2018 Chief Executive Officer & General Manager’s Report and Recommendation on Rates and Services proposes changes to SMUD’s rates.

The proposal does not include an increase in rates. Instead, it recommends changes to encourage regional economic development, a change to the System Infrastructure Fixed Charge for residential customers who receive service for less than 27 days and some other changes.

Download the report

Download the fact sheet

Public workshops and hearings

Members of the public can ask questions and provide feedback at the following meetings to be held at the SMUD Customer Service Center, Rubicon Room, 6301 S Street, Sacramento.

Public workshops Public hearing 
 Tuesday, July 17 at 10 AM  Thursday, Aug. 16 at 6 PM
 Thursday, July 26 at 6 PM  
If you have questions, please email us at ContactUs@smud.org or call 1-855-736-7655.         

Rate change details

A summary of the proposed rate changes is below. For more detailed information, please download the report.

Economic Development Rate

Included in the Report is a proposal to increase and extend the Economic Development Rate (EDR) to attract, retain and help businesses expand in the region. The Report recommends a 10-year contract period for the EDR since most businesses looking to relocate consider a planning horizon of 10 years. Other recommendations require 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. In addition, the recommendation includes 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

The following are the proposed discount options for the EDR, including a higher discount for businesses in disadvantaged communities. 

Proposed 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
discount
6% 6% 6% 6% 6% 5%  4% 3% 2% 1%
Option 2
discount
4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%  4.5%

Proposed 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
discount
8% 8% 8% 8% 8% 6.5%  5% 3.5% 2% 0.5%
Option 2
discount
6% 6% 6% 6% 6% 6% 6% 6% 6% 6%

Rule and Regulation 16

To further encourage economic development, the Report proposes 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

Residential rates

The Report includes a proposal to prorate the System Infrastructure Fixed Charge (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

The Report proposes to modify the Hydro Generation Adjustment (HGA) language 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 calculation. Additional recommendations include minor language changes related to certain tariff sheets and rules and regulations.