[Congressional Record Volume 144, Number 1 (Tuesday, January 27, 1998)]
[Extensions of Remarks]
[Pages E13-E14]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     COMMEMORATION OF SACRAMENTO MUNICIPAL UTILITY DISTRICT'S 50TH 
                              ANNIVERSARY

                                 ______
                                 

                             HON. VIC FAZIO

                             of california

                    in the house of representatives

                       Tuesday, January 27, 1998

  Mr. FAZIO of California. Mr. Speaker, I rise today to commemorate and 
celebrate the recent 50th anniversary of Sacramento's non-profit, 
community-owned electric company--the Sacramento Municipal Utility 
District--commonly known as SMUD.
  Dissatisfied with high electric rates, on July 2, 1923, Sacramento 
voters overcame tremendous opposition to approve the creation of SMUD. 
Although SMUD became a legal entity in 1923, it was another 23 years 
before the courts upheld the District's right to supply power to the 
capital region. On New Year's Eve 1946, SMUD began operations.
  Throughout its history, SMUD has survived numerous challenges: 
fighting to restore power during floods and windstorms, teaching 
customers how to conserve power during the energy crisis of the 1970's, 
and successfully responding to the closure of Rancho Seco nuclear power 
plant in 1989. And through it all, SMUD has remained true to its 
customers. It has consistently sought and developed new and 
environmentally friendly sources of power. It has educated the public 
on energy conservation and efficiency when it became a critical 
national problem. SMUD is currently recognized as an industry leader in 
energy efficiency and in renewable energy.
  For several years, SMUD has been investing in renewable energy 
sources such as solar and geothermal power plants. Other strategic 
planning on the part of SMUD, such as aggressive power-purchasing 
throughout the western U.S., has kept customer rates constant since 
1990. SMUD has committed itself to hold customer rates constant until 
2001, then reduce them by as much as 20 percent.
  In California beginning this year, customers will begin to have a 
choice of electric supplier--similar to how they currently choose their 
long-distance telephone company. Last summer, SMUD became the first 
utility in California to begin offering customers a choice. A limited 
number of customers, whose combined

[[Page E14]]

electricity usage will add up to 100 megawatts of SMUD'S total 2000 
megawatts of peak usage, is opened to competition allowing customers to 
buy power from a supplier of their choice. By moving months ahead of 
the other utilities, SMUD gained valuable experience, learning the 
impact of competition on customers and on SMUD operations.
  SMUD's commitment to the Sacramento area goes beyond merely providing 
electrical power. From its inception. SMUD has recognized its 
responsibility to return something to the community it serves. Last 
year, as part of the District's Employee Volunteer Program, employees 
volunteered over 2,300 hours and raised $20,000 to assist non-profit 
organizations in the Sacramento area. In partnership with the 
Sacramento Tree Foundation, SMUD customers have planted more than 
200,000 trees in Sacramento since the program began in 1990. SMUD is 
also aiding in the economic development of the Capital Region. By 
offering competitive economic development rates, SMUD has helped 
attract and retain successful companies such as Campbell Soup, Blue 
Diamond, Packard Bell, Kikkoman and JVC. In the past five years, SMUD 
has helped to attract or retain 13,000 jobs during a period of economic 
recession. SMUD is also trying to create a cluster of electric vehicle-
related businesses at the McClellan Air Force Base which is slated to 
close in 2001. McClellan is the largest industrial center in Northern 
California and offers a sophisticated array of high-tech services that 
can be contracted by private companies.
  I ask my colleagues to join me in recognizing the Sacramento 
Municipal Utility District on its 50th year and we wish them continued 
success as they approach the 21st century and the new competitive 
environment in the electric power industry.

                          ____________________