The Bee endorsements in SMUD board elections: Is the utility heading in right direction? | Opinion

The Sacramento Municipal Utility District is the backbone of the county’s economy, a public power authority providing reliable electricity at less than half the cost of neighboring Pacific Gas & Electric. Two of its seven board seats have competitive races this November, both with incumbents facing two challengers respectively. The competition is a healthy sign of the importance of SMUD’s future.

This is no quiet moment in the electricity world. SMUD is marching forward with a plan to operate a carbon-free grid by 2030, an ambitious target that is years ahead of statewide goals. To do so will require a transition of its power portfolio away from producing greenhouse gas emissions to solar, wind and other technologies - all while keeping an eye on maintaining affordable rates.

Frankly, SMUD’s traditional benchmark of comparing its electricity rates to those of PG&E is outdated and unhelpful. PG&E, serving much of Northern California’s fire country, simply has a different challenge. SMUD could be one of the worst public power agencies on the planet and still have rates 18 % lower than the for-profit PG&E, which is SMUD’s traditional target. PG&E has received four rate increases alone from the Public Utilities Commission in a single 12-month period.

SMUD, as a more relevant barometer, should be solely comparing itself with peer public power institutions serving other urban centers in California. These agencies face similar challenges of adapting to a carbon-free grid while preparing for additional demands, as Californians transition to electricity to power their cars and heat their water and food.

Voters have an impressive array of candidates. But in the end, two stood out to best represent ratepayers in the coming years.

Ward 1

In Ward 1, incumbent Brandon Rose faces two challengers, Sacramento Suburban Water District director (and former SMUD employee) Robert Wichert and Fair Oaks entrepreneur Chet Corcos. It’s a race between a learned technocrat, a spending hawk and a new-age business mind.

The attributes of all the candidates are admirable. In the end, Rose seems best prepared to lead SMUD in what would be his second term.

Rose is a true energy nerd, having studied SMUD’s hydro-electric system while in college and now working on zero electric vehicles for the California Air Resources Board. His mastery of the subject area is superior to his challengers. He believes that SMUD can reach its zero-carbon energy goal by 2030 with rate increases in the inflation range. Rose has been a needed voice on the SMUD board to invest in undergrounding more utility poles, particularly those that are near busy streets that can be a public safety hazard.

Corcos is running as an independent with no industry ties with a ratepayer focus. Wichert hopes to institute a policy of below-inflation increases at SMUD and to check a staff appetite for more money. All these are worthy approaches. Rose simply stands out both for his knowledge and temperament for board leadership.

Ward 5

Incumbent Rob Kerth has been a fixture in Sacramento-area politics since 1992 when he was first elected to the Sacramento City Council. He was elected to the SMUD board in 2008. He faces candidates with true passions for representing disadvantaged communities in planner Fatima Malik and government relations/public affairs consultant Nkiruka Ohaegbu.

Kerth’s strong track record and his family’s deep roots in North Sacramento have earned him an endorsement for another term, although he should heed some of the community concerns that both Malik and Ohaegbu are advancing. In particular, Ohaegbu’s previous government experience working for former Governor Jerry Brown in several capacities, including at its Business, Consumer Services, and Housing Agency, positions her for a future in public service.

While Malik has frustrations with SMUD’s set monthly charge within its rate structure and higher prices come late summer afternoon, they reflect how more than half of SMUD’s costs do not involve buying power and how those purchases during the peak hours cost the utility dearly. Kerth is a seasoned leader who can help the utility stay on course to its 2030 zero-carbon target as affordably as possible.

Needed: A younger, diverse board

SMUD’s board simply does not represent the diversity of the community that it serves. A majority of the board is in its 60s. While the utility is generally heading in the right direction, it is best served in the long run with periodic new blood to offer fresh community perspectives. That may not happen this election. Ward 2 Director Nancy Bui-Thompson, serving since 2008, is running for re-election without opposition and is thus not on the ballot.

Granted, the endorsements for Rose and Kerth support the status quo for valid reasons. Rose’s tenure on the board is only seven years. But a lack of turnover on any board, at a point, is a cause for concern. SMUD may be reaching such a point. A board with a diversity of backgrounds and perspectives is the best safeguard to ensuring that a public power utility reflects that public.

This story was originally published October 8, 2024 at 11:43 AM.