THE BACK STORY
Jose Bodipo-Memba oversees SMUD ' s sustainable communities program that aims to better comprehend and respond to the needs of the communities it has served for decades . PHOTO BY FRED GREAVES
A True Utility Player
SMUD has become more than just a public utility
BY Ed Goldman
To borrow an overused sports reference , the Sacramento Municipal Utility District , which has served the community for nearly 75 years , has become a true utility player . It proved it again a little more than two years ago by also becoming a social services organization .
SMUD , approved by voters in 1923 and launched in 1946 , was created because “ Sacramento voters decided they didn ’ t want their energy future decided by a private company ,” says Arlen Orchard , SMUD ’ s recently retired CEO . But even though the initiative passed definitively , Pacific Gas and Electric ’ s lawyers managed to tie it up in litigation for decades . “ The issue made it all the way to California ’ s Supreme Court ,” Orchard says . “ The utility remains independent , though it started under the auspices of the state .”
The utility hasn ’ t always been as beloved as it is today , with its reputation for reliable , inexpensive rates and a strong safety record . Forty years ago , SMUD ’ s image was dramatically different due to the inconsistent performance of Rancho Seco , the nuclear power plant it opened in 1971 that was shuttered by voters in 1989 . As Orchard says , SMUD was “ despised worldwide , because of the very existence of Rancho Seco .” Fast forward 30 years , the company has few detractors , especially when compared to its privately owned rival , PG & E , which has been held liable for numerous wildfires that caused deaths and sometimes shuts power to entire communities during high-wind events . Since SMUD ' s service territory is minimally rural , its operations are rarely affected . And since it ’ s not part of the power grid that oversees about 80 percent of the state ’ s electricity flow , SMUD ’ s customers weren ’ t affected by the shut-offs .
SMUD enhanced its reputation even more when it launched Sustainable Communities Nov . 16 , 2018 , in response to a 10-year study of Sacramento by the Brookings Institution , a highly regarded nonprofit policy group , that found our region was , despite its evolving metropo-
SMUD by the Numbers
1923 : Sacramento County residents vote to create a public utility
1946 : SMUD begins operations after political and legal battles
1.5 million : Population of service area 900 square miles : Size of service area 10,912 : Miles of power lines
640,000 : Approximate number of customers
2,260 : Number of employees
Discourse
SOURCE : SMUD
SMUD CEO and General Manager Paul Lau talks about zero carbon emissions and more . Page 28
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