SACRAMENTO MUNICIPAL UTILITY DISTRICT
SMUD cancels Coyote Creek PPA

In 2021, SMUD signed a power purchase agreement (PPA) with D.E. Shaw Renewable Investments (DESRI) to be an off taker of solar power from the Coyote Creek Agrivoltaic Ranch project. Due to project uncertainties, SMUD announced today (Jan 5) that they will not be purchasing power from the Coyote Creek project. Some of the uncertainties include: supply chain constraints, rising prices, tariffs, schedule delays, environmental impacts and pending litigation.

SMUD CEO & General Manager Paul Lau issued the following statement about SMUD's decision to terminate the PPA for the project:

"Over the years, SMUD and DESRI have delivered multiple important clean energy projects that benefit our community, and we look forward to continuing our partnership for years to come. We'd like to thank Sacramento County for all their work throughout the process and our SMUD Board of Directors for their leadership. We remain committed to following a flexible pathway to eliminate all carbon from our power supply by 2030."

About SMUD

As the nation's sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2024, SMUD's power supply was about 62% carbon free, which is largely influenced by the weather and amount of hydroelectricity produced. SMUD's goal is to completely eliminate carbon in its electricity production by 2030 while maintaining reliability and keeping rates among the lowest in California on average, 50% lower than its neighboring, investor-owned utility. For more information on SMUD's Zero Carbon Plan and its customer programs, visit smud.org.