While it has been an incredibly busy start to 2023 with the historic storm events in the Sacramento region, I want to share some highlights from 2022 that stand out.

In our journey to reach zero carbon in our power supply, 2022 was the first full year of work toward achieving our 2030 Clean Energy Vision, and we made critical foundational progress toward our ambitious zero carbon goal. I’m especially proud of all we achieved for our customers and community while we reimagined many aspects of our business in a year that brought some operational and economic challenges and the third year of the global COVID-19 pandemic.

I’m so proud of all that the teams at SMUD have accomplished and want to share some highlights from the year.

Our workforce

In 2022, safety is a real highlight with our “days away, restricted time” rate (our safety rate for the most severe injuries) 87% lower than a decade ago. Safety is paramount, and I’m proud of the progress we’ve made over the years to make a “safety for life” mindset part of all we do.

We were excited to welcome many remote employees back to SMUD campuses after they had been working remote due to the COVID-19 pandemic. This required extensive collaboration across multiple departments, and I’m proud of how this transition took place.

Our new diversity, equity, inclusion and belonging strategy has clear goals and measures to ensure we continue to make strides in this critical area, within SMUD and in our work with our customers and community.

Partnerships

2022 was an important year for collaboration and partnerships that support our Clean Energy Vision and other strategic priorities that deliver benefits for the entire Sacramento Region in the process. We were thrilled to host Congresswoman Matsui at SMUD to cut the ribbon on our first utility-scale battery storage project. Battery storage is key to a clean energy future, and we’re making progress in this space.

Some of our major collaborations include:

  • The four-agency partnership with the Sacramento Metropolitan Air Quality Management District, Sacramento Area Council of Governments and Sacramento Regional Transit District (SacRT) to forge a regional approach to electric transportation and secure funding to improve air quality, reduce greenhouse gas emissions, abate exposure to toxins, and transform the region’s neighborhoods into sustainable communities.
  • Support of the California Mobility Center (CMC) to advance e-mobility solutions and economic and workforce development in our region.
  • Our investment as an Anchor Institution Partner at California State University-Sacramento (CSUS) to invest in projects that promote research, innovation, economic and community development, including workforce development in the Sacramento region. This partnership will support the advancement of engineering through technical collaboration, a student ambassador program, internship and career services.
  • We entered into our first ever non-stock equity partnership between SMUD and ESS Tech Inc., to provide up to 200 MW/2 GWh of ESS’ environmentally safe and sustainable long-duration energy storage solutions.
  • We were thrilled to open the doors to Bright Path to Learning, the new child development center, in partnership with CSUS and UC Davis Health, that brings 100 new and much-needed quality childcare spaces to our region.

Programs

From the first utility-scale battery storage system in the Sacramento region, to new generous incentives to help customers invest in battery technology, SMUD’s showing how utilities and customers can work together to create a cleaner, healthier and more equitable energy future for all. In 2022:

  • We launched the new My Energy Optimizer suite of residential load-flexibility programs made up of customers’ behind-the-meter resources such as smart thermostats and battery storage systems that can be dispatched when the grid is in need. Nearly 10,000 customers have already joined the program.
  • Our Charge@Home program will support customers in installing nearly 900 chargers, exceeding our original goal.
  • Launched the managed EV charging pilot with BMW, Ford and GM with nearly 300 participants by the end of 2022.
  • The Advanced Homes Solutions program continues to grow, generating more than 2,000 heat pump HVAC rebates and almost 1,000 heat pump water heater rebates.
  • We implemented an innovative solar + storage rate that incentivizes battery storage, co-developed with industry representatives through an extensive community input process. This rate brings broader environmental and other benefits for all customers, helping achieve our goal to eliminate all carbon emissions from our power supply by 2030.
  • Our SEED small business program infused $59.5 million of contracting dollars directly to small businesses, supporting our local economy.

Customer and Community Outreach

In collaboration with community-based organizations, SMUD co-developed our Community Impact Plan, which focuses on engaging hard-to-reach customers, specifically low-income customers and small/medium businesses and bringing them along in our clean energy journey to ensure they benefit.

Through our neighborhood electrification program, SMUD is partnering with communities across our region to help income-eligible customers switch from gas to electric equipment and appliances, all at no cost to the customers. There are options for businesses, homeowners and renters.

With the COVID-19 pandemic waning, we were excited to return to in-person events. We met with customers through dozens of forums and presentations to community organizations, service groups, local nonprofits and advocacy groups.

We were thrilled to be able to again hold some of our flagship events, including our solar regatta and solar car races, educating students on clean energy STEM topics.  Whether we’re at large events like the California State Fair, meeting with small homeowners’ groups or working with teachers and students, our goal is to educate people on why fighting climate change matters and engage them on how they can get involved with low or no cost ways to reduce their carbon footprint.

Through our SMUD Cares program, employees donated nearly $400,000 to local nonprofits, and 162 SMUD employees served our community as Board members for local nonprofits. This clearly demonstrates our employees put our customers and community at the heart of everything we do as an organization.

Investing in continued reliable service

Continuing to deliver SMUD’s world-class reliability is at the heart of our Clean Energy Vision. And in 2022, we continued our work to invest in our network, replacing over 1,200 utility poles and 240,000 feet of underground cable. We made progress on new substations, including Station G substation downtown, which became operational recently so we can serve Sacramento’s growing energy needs with the safe, reliable service SMUD is renowned for.

Our Advanced Distribution Management System (ADMS)/ Distributed Energy Resource Management System (DERMS) technology platform went live in September 2022, after a significant, multi-year effort. This is key to achieving a clean energy future.

We kept our rates low, on average more than 45% lower than our neighboring utility.

Wrapping up

I couldn’t be more proud of the work happening at SMUD to create a clean energy future. I want to thank our Board for their leadership and the work they do each day to support SMUD’s purpose. The work we’re doing today builds the foundation for a clean energy future for the region, bringing more equitable outcomes for generations today and those of the future, without compromising on SMUD’s promise of reliable, affordable service.

In my 40+ years at SMUD, I’ve never been more excited about my work and our shared successes across the organization and within our community. 2023 will bring even more opportunities to lead the way to a brighter future for all in our region.