Just north of downtown Sacramento, nestled next to the ever-flowing American River, is a place that provides a constant current for the Sacramento Municipal Utility District.”These are the largest substations,” said SMUD Chief Operating Officer Frankie McDermott.McDermott walked KCRA 3 through the substation just off C Street.“The importance of this one is that it serves about 10,000 residential and commercial customers and the area from midtown over to Richards Boulevard,” McDermott said.SMUD has 260 substations over its 900 square miles of coverage area, which includes most of Sacramento County, along with small portions of Placer and Yolo Counties. McDermott says the power company is always looking toward the future.“We plan in 20-year cycles, so I don’t want to imply that it’s easy, but we get way, way ahead of it,” McDermott said.Lately, SMUD crews have been working to get ahead of the increased usage due to electric vehicles, and soon, more construction will start at the Railyards. McDermott said the company is investing $800 million in equipment upgrades over the next several years.”I’d like our customers to know that they are in good hands and we are planning ahead so that the lights stay on in the future,” he added.McDermott also gave KCRA 3 an exclusive underground tour of one of the city’s 250 vaults.”You’re looking at our equipment, which includes transformers, circuit breakers, and protectors that service about 2,500 customers in the downtown area,” McDermott said.The vaults are important because they provide added protection from weather and accidents. McDermott is proud of the service SMUD provides, but admits inflation is making it hard to keep costs down.”There has been pressure on costs from the hardware point of view,” McDermott said. “We’ve seen increases of 200 to 300% of some of our equipment over a five-to-six-year period.”Recently, SMUD announced a 6% rate increase over the next two years, which means the average bill will be about $8 higher every month in 2027. SMUD says even with the increase, its rates will remain among the lowest in California.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

Just north of downtown Sacramento, nestled next to the ever-flowing American River, is a place that provides a constant current for the Sacramento Municipal Utility District.

“These are the largest substations,” said SMUD Chief Operating Officer Frankie McDermott.

McDermott walked KCRA 3 through the substation just off C Street.

“The importance of this one is that it serves about 10,000 residential and commercial customers and the area from midtown over to Richards Boulevard,” McDermott said.

SMUD has 260 substations over its 900 square miles of coverage area, which includes most of Sacramento County, along with small portions of Placer and Yolo Counties. McDermott says the power company is always looking toward the future.

“We plan in 20-year cycles, so I don’t want to imply that it’s easy, but we get way, way ahead of it,” McDermott said.

Lately, SMUD crews have been working to get ahead of the increased usage due to electric vehicles, and soon, more construction will start at the Railyards. McDermott said the company is investing $800 million in equipment upgrades over the next several years.

“I’d like our customers to know that they are in good hands and we are planning ahead so that the lights stay on in the future,” he added.

McDermott also gave KCRA 3 an exclusive underground tour of one of the city’s 250 vaults.

“You’re looking at our equipment, which includes transformers, circuit breakers, and protectors that service about 2,500 customers in the downtown area,” McDermott said.

The vaults are important because they provide added protection from weather and accidents. McDermott is proud of the service SMUD provides, but admits inflation is making it hard to keep costs down.

“There has been pressure on costs from the hardware point of view,” McDermott said. “We’ve seen increases of 200 to 300% of some of our equipment over a five-to-six-year period.”

Recently, SMUD announced a 6% rate increase over the next two years, which means the average bill will be about $8 higher every month in 2027. SMUD says even with the increase, its rates will remain among the lowest in California.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel