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SMUD rate changes for 2014-2017

As a community-owned, not-for-profit electric service for more than 65 years, SMUD exists to serve our customers and our community. That means we make decisions that focus on the best interests of our customers, including preparing to meet the energy challenges of the future and protecting our environment.

Beginning in 2014 and continuing through 2017, SMUD's rates continue to change to better reflect the true cost of providing service to residential customers, to meet state mandates for renewable energy, and to address the lingering effects of the recession.

Rate adjustment for residential and commercial customers in 2016 and 2017
Rate increases of 2.5 percent will occur for both business and residential customers at the start of 2016 and 2017.

Most residential customers will see bill increases of $2 to $4 a month through 2017. Actual impacts will be based on the electricity use of your business or household.

Residential rate restructuring
The residential rate restructuring is part of an ongoing effort to better align our charges with the true cost of serving customers. Historically, our kilowatt-hour pricing for Base energy usage has not fully covered the costs of providing service, while the Base Plus price covered more than the full cost.

To address this, we reduced the difference between Base and Base Plus energy pricing from 2014 to 2016. While the price per kilowatt-hour for Base usage increased, bill impacts were offset by increasing the amount of energy a household can consume before being charged the higher Base Plus price.

The Base and Base Plus kWh allotments will be eliminated at the start of 2017 and SMUD will implement time-based pricing, otherwise known as time-of-use. The following chart shows standard residential rates per kWh by season through 2017.

Residential Rates 2014 2015 2016 2017
(Price per kWh)
Base Usage $0.1033 $0.1076 $0.1177
Base Plus $0.1836 $0.1870 $0.1928
(Price per kWh)
Base Usage $0.0955 $0.0998 $0.1068
Base Plus $0.1771 $0.1805 $0.1861

Energy assistance for low-income customers
Customers who qualify for the low-income Energy Assistance Program Rate (EAPR), will also see a change to include a monthly dollar cap on the value of the discount, and a percent discount applied to all energy usage as shown in the chart below.

EAPR customers will also see the 2.5 percent increases in electricity rates in 2017 and an increase for the percent discount on all usage.

  2014 2015 2016 2017
Percent discount on all usage 38% 40% 44% 48%
Up to maximum discount $52 $49 $43 $42

The Energy Assistance Program will transition to a discount on all electricity usage, with a maximum discount cap. The maximum discount includes a reduction to the system infrastructure fixed charge. For Energy Assistance Program customers with wells the cap is increased by $12.00

Other changes starting 2017:

  • Revisions and modifications to the Rates, Rules and Regulations to make them easier to understand.
  • Modified Commercial SolarShares® program
  • RTO1 Time-Of-Use rate available to all residential customers

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