Why Is My SMUD Bill So High? Summer Hours, the Fixed Charge and 2026 Rates

A SMUD bill usually jumps for one of three reasons. From June through September, weekday electricity from noon to midnight costs more, and 5 to 8 p.m. costs 37.65 cents per kWh. A flat $27 monthly charge applies however little you use. And SMUD raised rates 3% on January 1, 2026. Check summer hours first.

SMUD is still one of the cheapest large utilities in California, which is part of why a high bill surprises people. Its own comparison prices a 750 kWh month at $149, about half of PG&E's $290. But SMUD's standard Time-of-Day rate makes summer weekday use far more expensive than the rest of the year. For the statewide picture, see our guide to high California electric bills.

1. Summer: SMUD's Time-of-Day rate changes on June 1

The standard residential rate is Time-of-Day (5-8 p.m.). For eight months of the year it has just two prices. From June 1 to September 30 it has three, and the middle one covers most waking weekday hours.

The spread is the story. A kWh on a summer weekday at 6 p.m. costs about 2.9 times a kWh on a March night. Here is our own arithmetic for one home: 600 kWh in April with 15% of it between 5 and 8 p.m. on weekdays comes to about $108.52 with the fixed charge. The same home using 1,200 kWh in August, 15% at peak, 45% at mid-peak and 40% off-peak, pays about $284.68. Usage doubled; the bill rose about 2.6 times.

The practical levers follow from the table: pre-cool the house before noon, let the thermostat drift up between 5 and 8 p.m., and move laundry, dishwashing and EV charging to weekends or after midnight. SMUD's holiday list counts too: New Year's Day, Martin Luther King Jr. Day, Presidents Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Indigenous Peoples' Day, Veterans Day, Thanksgiving and Christmas are off-peak all day, though a fixed-date holiday that falls on a weekend does not move its off-peak price to the observed weekday. A chart of every period, and the hours on SMUD's other plans, is in SMUD peak hours and summer rate dates.

2. The $27 System Infrastructure Fixed Charge

Every standard SMUD bill carries a $27.00 monthly System Infrastructure Fixed Charge for poles, wires, transformers, meters, billing and customer service. In a small apartment using 250 kWh, that charge can be a third of the bill or more. SMUD offers a Time-of-Day (Low Use) rate with a $17 fixed charge but higher energy prices, for homes that use under 270 kWh a month and have an electrical panel of 125 amps or smaller.

3. The 2026 rate increase, and the next one

SMUD's board approved two increases: 3% on January 1, 2026 and 3% on January 1, 2027. SMUD estimated the average residential customer would pay $4.35 a month more from the first and $4.48 more from the second, and it says it is committed to keeping increases within inflation through 2030. Before that, rates rose 2.75% on January 1 and May 1 of both 2024 and 2025. So a 2026 bill compared with a 2023 bill for the same usage reflects five increases.

4. Your plan may not fit your habits

SMUD offers alternatives. The Fixed Rate charges the same price at every hour, $0.2189 per kWh in summer and $0.1371 the rest of the year, and SMUD says it averages about 4% more than Time-of-Day. It can still suit a household that cannot avoid 5 to 8 p.m., such as someone home all day in summer. Critical Peak Pricing lowers summer off-peak and mid-peak prices in exchange for $0.50 per kWh on top of the regular price during Peak Events of one to four hours. You can compare your peak-hour use and switch plans in My Account.

5. A discount you are missing

SMUD runs its own assistance program, not the state's CARE and FERA. The Energy Assistance Program Rate takes up to $105 a month off for households at or below 50% of the federal poverty level, down to $10 for those at 150% to 200%. The income limits effective February 1, 2026 are $3,607 a month for one or two people and $5,500 for four. SMUD also offers a $15 monthly Medical Equipment Discount and takes 1.5 cents per kWh off all use between midnight and 6 a.m. for customers with a registered plug-in EV.

Solar on SMUD, and who to call

Solar customers on SMUD's Solar and Storage Rate earn 9.6 cents per kWh for power sent to the grid at any hour or season. That is well under the 15.50 to 37.65 cents you pay in summer, so a system pays back mainly through power you use yourself, and a battery that covers 5 to 8 p.m. tends to add the most value. The Sacramento solar and bill guide covers the local numbers.

SMUD is a community-owned, not-for-profit utility. The CPUC says it cannot help resolve issues with publicly owned utilities such as SMUD, so questions and disputes go to SMUD directly. To see how SMUD compares with the investor-owned utilities, read how California electricity rates rank nationally and the California utility rate tracker. If your usage itself looks high, compare it with the average kWh per day in California, and for other utilities see why a PG&E bill runs high or why an LADWP bill runs high.