Residents serviced by the Sacramento Municipal Utility District (SMUD) can expect their electric bills to go up in the future, following the board’s recent approval of two consecutive rate increases.
During a public meeting Thursday, SMUD’s board of directors voted to implement a 3% rate hike in both 2026 and 2027. According to the utility provider, the adjustment will add approximately $4.35 to the average residential customer’s monthly bill in 2026, followed by an additional $4.48 in 2027.
The rate changes, officials say, are driven by rising costs related to wildfire prevention efforts, infrastructure improvements, and clean energy mandates. Ongoing investments include upgrades to the electrical grid, expansion of energy storage capabilities, and the development of a new administrative operations center.
In a statement accompanying the announcement, SMUD emphasized its efforts to keep rates affordable, noting that its customers still pay nearly 50% less than those served by Pacific Gas and Electric Co., even with the approved increases. The utility also noted that the new hikes are projected to stay below the pace of inflation.
As part of the newly adopted plan, SMUD is also rolling out an optional Time-of-Day rate targeted toward residential customers with lower energy use and electric panels rated at 125 amps or less. This rate will retain the same peak hours as the standard plan—between 5:00 and 8:00 p.m.—but will feature a lower fixed monthly charge and a higher per-kilowatt-hour usage rate.
The approved plan reflects SMUD’s broader strategy to maintain reliability, invest in climate-resilient infrastructure, and continue transitioning toward clean energy goals while balancing cost impacts on customers.
For more information on SMUD’s rate changes and future plans, visit www.smud.org.
