2019 residential rate changes

SMUD rate changes beginning in 2020 include an increase in rates, a restructure of commercial customer rates and other changes.

Own a business? Learn more about proposed changes to our business rates.

Customer resources

Overview

Rate increase

Residential customers as well as non-residential customers will see rate increases of 3.75% on Jan. 1, 2020, 3% on Oct. 1, 2020, 2.5% on Jan. 1, 2021 and 2% on Oct. 1, 2021.

Why is it needed?

SMUD works hard to control costs and operate as efficiently as possible. The increase in rates is mostly driven by external factors, including:

  • Wildfire mitigation, including the increased cost of wildfire insurance and additional vegetation management.
  • Additional capacity to provide electricity to ensure we can reliably serve customers’ energy needs during times of peak demand.
  • New and enhanced technology solutions to support cyber security, customer experience, improved reliability and distributed energy resources.
  • Investments to meet carbon reduction goals through transportation and building electrification, investment in renewable energy and increased energy efficiency.

How will this impact my bill?

For residential customers, bill impacts will depend on how much electricity customers use each month. The average residential customer will see an increase of about $4.94 per month in 2020 and an additional $6.38 per month in 2021.

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 33% lower than those of neighboring PG&E. See how they compare to other utilities.

Additional changes

  • A restructure of commercial rates to better improve consistency of bill components.
  • Updates to language in the green energy rates to allow them to be updated more frequently as legislation changes.
  • Updates to language related to the Time-of-Day Rate (TOD) to reflect the completed transition to TOD as the standard rate for residential customers.
  • Clarifying language regarding the Power Factor Waiver.
  • Miscellaneous language updates to certain Rules and Regulations.

Public workshops and hearings

Members of the public were able to ask questions and provide feedback about the Rate Proposal at the following meetings which were held at the SMUD Customer Service Center, Rubicon Room, 6301 S Street, Sacramento.

Public workshops
Tuesday, April 23 | 10 a.m.
Download the transcript

Thursday, May 9 | 6 p.m.
Download the transcript

Public hearing
Tuesday, June 4 | 6 p.m.
Download the transcript

Accommodations are available for the disabled public.  If you need a hearing assistance device or other aid, please call 1-916-732-7143 in advance of the public workshop or hearing.

How to submit your comments

Comments may be submitted by emailing contactus@smud.org or by mailing written comments to:
SMUD
P.O. Box 15830, MS A451
Sacramento, CA 95852-0830

View comments

If you have questions about the public input process, please read our FAQs.

Grid Access Charge update

After careful consideration, SMUD has withdrawn the Customer Renewable Self-Generation Grid Access Charge proposal, including the July 1, 2019 grandfathering deadline and the Net Energy Metering (NEM) 2.0 rate schedule.

As a community-owned, not-for-profit electric utility, SMUD is committed to making rates and fixed cost recovery fairer and more equitable for all customers as soon as possible. We’ll launch a separate public stakeholder process in 2019 to examine NEM and other customer self-generation, and develop additional analysis addressing the costs, benefits and subsidies related to these systems.

We’ll use feedback from our customers and stakeholders and the additional analysis to further explore a successor NEM rate related to customer self-generation and appropriate assignment of costs and benefits.

The other changes in the CEO & General Manager’s Report and Recommendations on Rates and Services dated March 21, 2019 are still in effect and the established public workshops and public hearing schedule remained the same.

Read the addendum