Winters Councilwoman Jesse Loren, a Valley Clean Energy board member, explained to West Sacramento officials who want to use Sacramento Municipal Utility District (SMUD) as a new utility company that SMUD might not be interested in partnering. 

WEST SACRAMENTO, CA (MPG) - City officials want to cut power to their partnership with Pacific Gas and Electric (PG&E) due to high rates.

At the Aug. 7 regular council meeting, Councilwoman Norma Alcala said residents’ emails and phone calls detail PG&E’s high rates while the major utility company is making “record profits right now.”

“And yet they are still increasing our rates,” Alcala said. “I am anxious to hear what the public has to say because it is affecting a lot of people.”

Mayor Martha Guerrero called out a “utility crisis” here for some residents whose utility rates are too high, suggesting officials consider a future agenda addressing other utility options.

“We have had some experience working with Valley Clean Energy,” Guerrero said regarding her predecessors before recently seeing a Pioneer Community Energy presentation as the second vice president for the League of Cities.

Noting she was limited to what she could say legally, the mayor mentioned every present energy-use concern and why the Sacramento Municipal Utility District (SMUD) is another viable option.

“The reason we don’t have SMUD is because it requires a vote, which we tried in the past and it failed,” said Guerrero, adding that is why Pioneer Community Energy is now on the radar.

According to the city manager, one option is to join the California Community Choice Association, where cities can buy electricity for residents and businesses rather than use it.

 Lucas Frerichs, a Valley Clean Energy board member, details how the company’s lower rates than PG&E should be considered by the West Sacramento City Council, which wants new utility company options.

“There are a number of CCA’s out there, including in our backyard,” City Manager Aaron Laurel said.

As for SMUD, “a lot of history” comes with that relationship, according to the city manager.  

“There was a time back in the mid-two when there was an effort to annex into SMUD throughout the county, which, as you mentioned, failed the vote,” Laurel said, adding it is much more than just yea or nay to pass due to the regulatory environment and more.

Laurel recommended returning in the fall after the energy use study is complete, “along with an analysis by staff on the CCA industry” and “more background on the SMUD annexation and what that actually looks like as a process.”

Winters Councilwoman Jesse Loren, a Valley Clean Energy board member, was on the other side of the dais, telling the mayor and council about her city’s experience with the SMUD process.

“I serve with other members of your dais on various regional boards,” Loren said, adding she was coming forth in the “Yolo County way” spirit.

Loren reminded the mayor and council that Valley Clean Energy “opened the door” to West Sacramento and Winters in 2017.

While SMUD might be “far more attractive,” according to Loren, no deal can be made if they do not want to partner with West Sacramento.

 Pioneer Energy Company Chair and Auburn Councilwoman Alice Dowdin Calvillo plugged her company, asking West Sacramento officials to consider them when changing providers in the future.

 “Not only is it a ballot process but they have to have an appetite to grow,” Loren said. “That is not something they have expressed at this time.”

While West Sacramento has not benefited from decreased utility bills, Winters has benefited with “lower costs,” Loren said, followed by another Valley Clean Energy board member.

Like Loren, Lucas Frerichs said that while “we would love to have a utility like SMUD rates 40% lower literally across the river than we do here in Yolo County,” it might not be feasible.

“We currently have rates that are lower than PG&E,” Frerichs said of Valley Clean Energy.

Vying for the mayor and council’s attention, Pioneer Energy Company Chair and Auburn Councilwoman Alice Dowdin Calvillo also plugged her program, noting $85 million in rate savings for the company’s customers.

Calvillo said the company is “certainly not trying to step” on Clean Valley Energy’s “toes by any means;” however, due to recent discussions, it was essential to come to the table.

Guerrero said that she looks forward to future studies and comprehensive citywide presentations from both companies soon.

“I am looking forward to conversing with the community next month,” Guerrero said.