The Sacramento Municipal Utility District's board of directors approved a $1.74 billion budget for 2018, a $161 million increase over the 2017 budget due to higher planned capital expenditures.
The budget covers funding for all major capital projects, including rebuilding station E and station G substations downtown, construction of the new Franklin substation in Elk Grove and the repurchase of Solano Wind 3, and for O&M programs.
The O&M budget includes funding for the work associated with SMUD joining the Energy Imbalance Market in 2019, and expenditures tied to power plant maintenance and overhauls, repair costs due to storm and wildfire events, and technological enhancements to existing electrical equipment.
The utility said it will finance majority of the capital investments with cash on hand and will only loan approximately $200 million in 2018.
SMUD also plans to explore new business opportunities next year such as selling excess transmission capacity and collecting net revenue from nontraditional sources like the new e-commerce solution and the SMUD Energy Store.