SMUD workshop will explain rate proposals
Big changes are coming to Sacramento electricity bills in the next five years. First, rates will rise. Then the Sacramento Municipal Utility District will start charging customers based on when they use power.
The utility will hold a workshop at 10 a.m. Tuesday to explain its proposed rate increases and the eventual change in its electricity pricing structure. The meeting will be at SMUD headquarters, 6201 S St. Another workshop is scheduled for 9 a.m. on July 18.
John Di Stasio, SMUD's general manager and CEO, has recommended raising residential and commercial electricity rates by 2.5 percent in both 2014 and 2015. The average electricity customer would see an increase of about $4 a month by 2015.
Potentially more significant is Di Stasio's proposal to gradually change SMUD's two-tier pricing structure to one based on what time power is used. By 2017, SMUD proposes to get rid of its two tiers and charge customers a flat rate. Then, beginning in 2018, customers would pay more for using electricity during peak hours, typically from 4 to 7 p.m. in the hot summer months.
The changes must be approved by the SMUD board.
Mary Lynne Vellinga