Rate change archive

See the Board of Directors' approved rate changes for the years noted.


SMUD rate changes beginning in 2020 include an increase in rates and other changes.

Effective date Increase
Jan. 1, 2020 3.75%
Oct. 1, 2020 3%
Jan. 1, 2021 2.5%
Oct. 1, 2021 2%

Customer resources

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.

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.

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After careful consideration, SMUD has withdrawn the Customer Renewable Self-Generation Grid Access Charge proposal, including the July 1, 2019 grandfathering deadline and the Net Energy Metering (NEM) 2.0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

Businesses and other non-residential customers will see rate increases that apply to energy charges, the System Infrastructure Fixed Charge, Site Infrastructure Charge, Summer Peak Demand Charge and other rate charges.

Effective date Increase
Jan. 1, 2020 3.75%
Oct. 1, 2020 3%
Jan. 1, 2021 2.5%
Oct. 1, 2021 2%

How will this impact my bill?

Bill impacts will depend on how much electricity customers use each month. Below are sample 2020 bill increases. 

Small (20 -299 kW) $117 on an average monthly bill of $2,598
Medium (500 – 999 kW) $1,019 on an average monthly bill of $22,675
Large ( >1,000 kW)
$3,881 on an average monthly bill of $85,937
Agriculture (Ag & Pumping)
$15 on an average monthly bill of $329

Rate restructuring

The changes include a rate restructure for commercial customers to better align with the cost of providing electricity when it is used and the fixed costs of maintaining the infrastructure and service that supports a reliable grid. The rate restructure includes:

  • Changes to the Time-of-Day time periods to better reflect the cost of providing service, which fluctuates based on the time of day.
  • Adjustments to the fixed charges to ensure enough collection of the fixed costs for providing service to all customers.
  • Consistency of bill components across all commercial rate classes.

If approved, the restructure will start in 2021 with a up to 8 year transition plan, depending on customer rate class, to minimize bill impacts.

Time periods

While SMUD commercial customers have had time-based pricing for many years, the existing time periods no longer align with SMUD’s costs to serve electricity. An accurate time-based rate structure has a higher price per kWh when electricity is most expensive to provide and a lower price when it costs less to provide.

Aligning rates to costs gives customers the opportunity to manage their usage and bills, while helping reduce peak energy use and the need to buy power from less environmentally sustainable and more expensive sources.

Time-of-Day time periods

Chart showing commercial rate time periods for summer and non-summer seasons

Consistency across rate classes

To improve consistency of bill components for commercial rate classes, the changes includes increasing the System Infrastructure Fixed Charge, the Site Infrastructure Charge and the Summer Peak Demand Charge, which will be offset by a decrease in the energy charges per kWh.

The changes also include adding the Summer Peak Demand Charge to several rate categories, as well as gradually introducing a monthly demand charge to customers who use less than 20 kW per month, such as small offices and strip mall stores (GSN_T rate class).

Time-of-Day

While SMUD commercial customers have had time-based pricing for many years, the existing time periods no longer align with SMUD’s costs to serve electricity. An accurate time-based rate structure has a higher price per kWh when electricity is most expensive to provide and a lower price when it costs less to provide.

We’re adjusting the time periods to better align with the cost of providing electricity as shown by the image to the right.

Aligning rates to costs gives customers the opportunity to manage their usage and bills, while helping reduce peak energy use and the need to buy power from less environmentally sustainable and more expensive sources.

Fixed charges

 The change includes an increase in fixed charges, including the System Infrastructure Fixed Charge, Site Infrastructure Charge and the Summer Peak Demand Charge. These increases are offset by a decrease in energy charges.

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.

Changes to EAPR Rate

Sometimes, paying your energy bill can create a financial hardship. Life circumstances can change for all of us, and we want to help ensure that you continue to have access to safe, reliable energy.

The Energy Assistance Program Rate (EAPR) makes electricity more affordable for qualified low-income customers by providing discounts on monthly bills. Beginning in 2019, we will be phasing in a restructuring of this program so it better serves customers with the greatest need.

For customers at the lowest ranges of the Federal Poverty Level (FPL), energy bills tend to take up a larger portion of household income. The result can contribute to long-term economic hardship. Addressing energy affordability can have a positive impact on household finances.

The changes align the monthly discount with household income. Customers with the lowest household income, based on the federal poverty level, will receive the largest discount. EAPR customers with a household income between 0% and 100% of the Federal Poverty Level (FPL) would receive the largest monthly discounts. EAPR customers with a household income between 100% and 200% of the FPL would receive smaller discounts than those with incomes between 0% and 100% of the FPL.

To help with this transition, the changes will be phased in over several years. SMUD will assist customers with education and energy efficiency programs to help save energy in their homes to further reduce their energy bills. We’ll also invest in energy efficiency upgrades for customers most in need. These improvements will make a significant lasting impact by raising the overall energy efficiency of local housing.

Monthly maximum EAPR discount

Amounts are based on how your income compares to the Federal Poverty Level and can include a discount on energy use as well as a $10 System Infrastructure Fixed Charge discount. View the current monthly discounts

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

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
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%

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, 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 (Rule 16.)

Changes to residential rates

We will 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 Hydro Generation Adjustment (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.