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SMUD proposes double-digit rate hike by 2025

SMUD, smart meter
File photo, SMUD smart meter.

By Mike Hazlip—
In an effort to address inflation as well as fund wildfire prevention and clean energy needs, the Sacramento Municipal Utility District will hold a public hearing later this month regarding a series of proposed rate increases that would raise rates a total of more than 10 percent by 2025, if approved.

In a June 16 media release, SMUD said four 2.75 percent increases are part of the Chief Executive Officer and General Manager’s Report and Recommendation on Rates and Services, a two-volume public document totaling over 200 pages released June 15.

The increases would be phased in over two years, with the first 2.75 percent increase coming in Jan. 1, 2024. Subsequent 2.75 percent increases would be added on May 1, 2024, Jan. 1, 2025, and May 1, 2025, according to the release. The utility district says the proposal would raise the average residential customer’s bill by $15 per month, and the average small business’s bill by $358 per month in 2025.

“While SMUD works hard to control costs and operate efficiently, the need for a modest rate increase is attributed to several factors including wildfire prevention and mitigation, new generation projects, higher commodity costs for California clean energy compliance, infrastructure investment to maintain a reliable grid, customer programs, inflation and increased operating costs,” the company said in the release.

A public hearing is scheduled for Wednesday, Aug. 30 at 6 p.m. Information on how to join the public hearing is not currently available, but will be posted at

According to the utility district’s website, comments on the proposed rate increases can be submitted to, with any comments received posted on a public comment section of As of Aug. 5, SMUD’s website showed no comments had been received.

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