Proposed 2022-2023 rate changes
SMUD’s 2021 Chief Executive Officer & General Manager’s Report and Recommendation on Rates and Services proposes changes to SMUD’s rates, including:
- An increase in rates in 2022 and 2023
- A new Solar and Storage Rate for customers that add onsite generation, such as rooftop solar
- A new optional Critical Peak Pricing (CPP) rate for residential customers to help meet peak energy demand when it’s needed most
- The delay of the commercial rate restructure implementation due to COVID-19, now planned for late 2021
- Minor tariff language changes
There is also a separate proposal to revise SMUD's Open Access Transmission Tariff (OATT).
Changes are being proposed for 2022 and 2023
Proposed rate increase
The proposal includes the following increases for all customers:
- 1.5% rate increase effective March 1, 2022
- 2% rate increase effective January 1, 2023
The proposed rate increases are well below the forecasted rate of inflation and support SMUD’s commitment to keep rate increases at or below inflation through 2030.
How will this impact my bill?
The proposed increases will impact all customers differently, depending on how much electricity you use each month.
The average residential customer will see an increase of:
- About $1.91 per month in 2022
- An additional $2.57 per month in 2023
Why rate changes are needed
We work hard to control costs and operate as efficiently as possible. The need for the modest rate increases is due to several factors, including:
Wildfire prevention and mitigation
To maintain high reliability
Clean energy compliance requirements
Increased operating costs
Including materials and labor costs
How our rates compare
As a community-owned, not-for-profit electric utility, SMUD’s rates are among the lowest in California and are on average about 36.5% lower than those of neighboring PG&E.
Public workshops and hearing
Members of the public can ask questions and provide feedback about the Rate Proposal at the following meetings. For the safety of our customers and employees, all meetings will be held virtually.
Thursday, July 8 at 5:30 p.m.
Click here to watch meeting recording
Tuesday, August 31 at 5:30 p.m.
Comments may be submitted by emailing ContactUs@smud.org or by mailing written comments to:
P.O. Box 15830, MS A451
Sacramento, CA 95852-0830
Making comments during public meetings
If you have questions about the public input process, or want to make comments during our virtual public meetings, please read our FAQs.
Solar and Storage Rate
The proposal includes a new Solar and Storage Rate for customers approved to connect to SMUD’s grid on or after January 1, 2022.
The proposed rate structure and supporting programs and incentives will transform the market from solar only to solar and storage because of the greater value and broader benefits pairing solar with storage brings to all customers. The proposed rate is the outcome of extensive collaboration with representatives from the solar and storage industry that began in 2019.
Critical Peak Pricing Rate
The 2021 GM Report proposes a new Critical Peak Pricing (CPP) Rate option for residential customers effective June 1, 2022. The Time-of-Day (TOD) 5-8 p.m. Rate remains the standard rate for all residential customers.
The CPP Rate is designed to allow our customers to help reduce demand on our grid during times when there are emergency conditions with the power system or energy demand is at its highest. Customers who voluntarily participate in the CPP Rate will be asked to reduce their energy usage and dispatch their stored energy if they have a battery to help conserve electricity when it’s needed most to take pressure off of our grid.
The CPP Rate works by charging an additional price per kWh during an event. The events will last 1-4 hours and may be called any time of the day during the summer months (June – September), including weekends and holidays, but may only be called once per day. In exchange, customers will receive a discount on Summer Off-Peak and Mid-Peak prices. SMUD will notify customers a day in advance before a critical peak event is called, though we may call the event with shorter notice during emergency situations.
The proposed CPP Rate will only apply to customers who voluntarily choose to opt-in to participate in a program, such as the planned smart thermostat program, or who accept the storage incentive.
Commercial rate restructure timing
The proposal also includes the delay of the commercial rate restructure implementation due to the COVID-19 pandemic, which is now planned to begin in late 2021, and minor tariff language changes.
Open Access Transmission Tariff
SMUD CEO & General Manager Paul Lau also released the Chief Executive Officer & General Manager’s Report on Open Access Transmission Tariff (OATT). The proposal is to revise SMUD's OATT to ensure SMUD's transmission rates for certain ancillary services reflect current costs.