Climate Registered™ Accelerator Spotlight:
Sacramento Municipal Utility District (SMUD)

By: Anna Benjamin

Sacramento Municipal Utility District (SMUD)

Recognition Tier: Hero

TCR Member since 2010

The Sacramento Municipal Utility District (SMUD) is the nation’s sixth-largest publicly owned and operated electric utility by number of customers. 

To earn Hero status, SMUD met several key criteria including: 

• Completing at least three third-party verified emissions inventories within the past five years (with a verified public base year), 
• Setting a public emissions-reduction target, and 
• Demonstrating measurable progress by achieving an interim target. 

SMUD has set the most ambitious greenhouse gas (GHG)-reduction goal of any large utility in the United States: to have zero carbon emissions in its power supply by 2030, 15 years ahead of California’s state-wide zero-carbon target of 2045. According to its most recent Progress Report, SMUD has already reduced its GHG emissions by 33% compared to 1990 levels. SMUD’s bold climate commitments are outlined in its 2030 Zero Carbon Plan, which focuses on four key areas: 

• Repurposing natural gas generation: Natural gas power plants provide low-cost, reliable energy and account for a significant portion of SMUD’s GHG emissions in its energy supply. SMUD’s goal is to find replacement carbon-free resources to transition away from fossil fuel generation. SMUD plans to replace two of its thermal plants with the Country Acres Solar (344MW) and Battery Storage (172MW) project, which is due to come online in 2027. Once Country Acres is online, SMUD will evaluate the need for the replaced resources to ensure a reliable and affordable transition to a clean energy future. Critical to the plan is continuing to evaluate retooling options for the remaining thermal fleet to become more flexible as SMUD transitions deeper into its decarbonization effort.

SMUD is also retooling its most efficient combined cycle plant, Cosumnes Power Plant, to operate at a lower minimum level, allowing more flexibility to turn down while reducing greenhouse gas emissions by over 25% annually. This project is expected to be completed by the end of 2025.

• Investing in proven clean technologies: SMUD is investing in proven clean technologies, including utility-scale wind, solar, batteries, hydroelectric power, biomass, geothermal, and solar and storage systems. These technologies form the foundation of the 2030 Zero Carbon Plan and, by 2030, are expected to replace about 80-90% of the energy from fossil fuel generated today. Through its 2030 Zero Carbon Plan, SMUD has added more than 300 MW of new renewables and storage and is evaluating about 1,500+ MW more forecasted to be commissioned or signed to be online by 2028. 

Notably, SMUD’s Solano 4 wind project was completed in 2024 and replaced 23 turbines with 19 larger ones, generating enough clean energy to power 40,000 homes.

Thanks in part to a strong hydro year, SMUD’s 2023 Power Content Label (issued in 2024) reported that the power SMUD delivered to its customers was about 78% carbon free and about 45% renewable.

• Piloting and scaling technologies and programs: To address the remaining 10% of emissions, SMUD will pilot and scale innovative technologies and programs in four strategic areas: electrification, education and demand flexibility, virtual power plants and vehicle-to-grid integration, and advanced grid-scale technologies. SMUD is also actively advancing pilot projects in long-duration energy storage and exploring emerging carbon-capture and sequestration technologies. 

• Expanding financing options: While making the transition to a carbon-free power supply, SMUD remains committed to keeping electricity affordable for its customers, maintaining some of the lowest rates in California. SMUD is expanding its funding toolkit through partnerships, grants, and strategic collaborations to finance and implement innovative solutions. 

To offset costs and accelerate planned projects, SMUD implemented a grant strategy and, with partners, attracted $90 million in grants to the greater Sacramento region in 2024. SMUD customers continue to receive affordable power, with rates more than 50% below its nearest competitor and among the lowest in California. This kept about $1.8 billion in SMUD’s community in 2024.

An essential part of SMUD’s sustainability efforts is its Community Impact Plan, which ensures that under-resourced communities benefit from the transition to a clean energy future. The plan focuses on three key areas: affordability, equitable access, and inclusive community engagement. 

SMUD engaged extensively with the community through numerous events and expos that connected hundreds of customers to local organizations. They expanded support for small business vendors, and completed multiple neighborhood and business electrifications, site visits, workshops, and customer projects. SMUD also reached thousands of students through STEM events and educational activities to promote zero-carbon energy leadership. Additionally, they supported several school districts in securing funding for electric school buses and launched a unique Lineworker Scholarship Program to help under-resourced community members pursue lineworker careers.

Stay up to date on SMUD’s next steps by accessing their Progress Reports and visiting the emission and zero-carbon program information dashboards.

“SMUD’s commitment to achieving zero carbon emissions by 2030 represents not just a milestone for our utility but a transformative blueprint for the future of clean energy in California and beyond. By innovatively repurposing existing resources, investing in proven technologies and engaging with our customers and community, we’re demonstrating that a sustainable, reliable and affordable energy future is within reach.”

— SMUD Chief Executive Officer and Geneal Manager Paul Lau

 

Members can submit an application today to be recognized as a Climate Registered™ Accelerator! Applications for the Climate Registered Accelerator are accepted year-round. If you missed our webinar detailing the criteria for the new program and how to apply, the recording and slide deck are available.