SMUD says it will not purchase power from proposed Sacramento County solar farm project

January 5, 2026

SMUD says it will not purchase power from proposed Sacramento County solar farm project

Previous coverage in the video player below.

BOTH SIDES. A GROUP OF SPEAKERS TO MORE THAN 100 PEOPLE MADE THEIR WAY TO DOWNTOWN SACRAMENTO THIS TUESDAY TO SPEAK IN SUPPORT OR AGAINST THE COYOTE CREEK PROJECT. TODAY, DEVELOPERS MADE THEIR CASE BEFORE THE SACRAMENTO COUNTY BOARD OF SUPERVISORS LAYING OUT THEIR PROPOSAL AND PUSHING FOR APPROVAL. THE PROJECT COVERS 2700 ACRES IN THE COMMUNITY AND TIES INTO SMUD’S ZERO CARBON PLAN TO PROVIDE GRID STABILITY AND RELIABILITY, PROVIDE A LOCAL SUPPLY OF SOLAR ENERGY FOR SACRAMENTO COUNTY, WHICH IS IMPORTANT BECAUSE WHEN YOU DO FAR FLUNG PROJECTS, YOU HAVE LINE LOSS AND INEFFICIENCY, ADDITIONAL COST OF WHEELING, ETC. I THINK THIS IS A GOOD PROJECT. SUPPORTERS SAY IT FITS WITH AGRICULTURAL USE, PRESERVES LAND AND EXPANDS RENEWABLE ENERGY. WE NEED ENERGY TO SUSTAIN US INTO THE FUTURE. WE TALK ABOUT ALL OF THESE REGULATIONS THAT WE’RE TALKING ABOUT WITH WITH ELECTRIC CARS, WITH AI, ALL OF THAT. WE NEED THE ENERGY. AND SO WE NEED A BALANCE OF FIND THE RIGHT PLACE. BUT WE NEED IT. RIGHT. AND SO I’M RESPECTFUL OF EVERYBODY THAT’S HERE. THAT’S ON THE OTHER SIDE. BUT IF NOT HERE, WHERE ARE WE GOING TO DO IT? WHILE OPPONENTS ARGUE IT WILL COST THE AREA RURAL LAND, THREATEN HABITAT STRAIN WATER RESOURCES AND WORSEN AIR QUALITY. THIS IS SUPPOSED TO BE A TEMPORARY PROJECT THAT WILL BE DECOMMISSIONED AFTER 35 YEARS OF OPERATION, BUT WE ARE SAYING NO MATTER WHAT YOU ARE DOING AFTERWARDS TO TY TO REPLANT LITTLE SAPLING TREES, IT’S NOT GOING TO MAKE UP FOR THE HUNDREDS OF YEAR OLD OAK TREES THAT ARE REALLY CREATING A VIBRANT ECOSYSTEM. IN A STATEMENT, SMUD SAID ITS ROLE IS LIMITED TO POWER PURCHASING, BUT NOTED THAT THE PROJECT HAS BEEN THROUGH EXTENSIVE ENVIRONMENTAL REVIEW. MARICELA DE LA CRUZ. KCRA THREE NEWS. THE SUPERVISOR’S MEETING STARTED AT TWO THIS AFTERNOON, AND THEY’RE EXPECTED TO VOTE IN THE NEXT HOUR, EITHER REJECTING OR APPROVIN

Updated: 2:57 PM PST Jan 5, 2026

Editorial Standards ⓘ

SMUD says it will not purchase power from proposed Sacramento County solar farm project

Previous coverage in the video player below.

Updated: 2:57 PM PST Jan 5, 2026

Editorial Standards ⓘ

The Sacramento Municipal Utility District (SMUD) announced Monday that it will not purchase electricity from a proposed solar farm project.SMUD in 2021 signed a power purchase agreement (PPA) with D.E. Shaw Renewable Investments to take solar power from the Coyote Creek Agrivoltaic Ranch project. But the utility now listed multiple reasons against moving forward with the purchase. Those include “supply chain constraints, rising prices, tariffs, schedule delays, environmental impacts and pending litigation.”“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,” said Paul Lau, SMUD’s CEO and general manager, in a release. “We’d like to thank Sacramento County for all their work throughout the process and our SMUD Board of Directors for their leadership.The proposed solar farm project would be located south of Highway 50, northwest of Rancho Murrieta, southeast of the Prairie City State Vehicle Recreation Area and south of White Rock Road in the Cosumnes community, county leaders previously stated.Those in support of Coyote Creek believe the project fits with agricultural use, preserves land and expands renewable energy. Opponents argue that the project will cost the area rural land, threaten habitat, strain water resources and worsen air quality.In November, the Sacramento County Board of Supervisors moved the project forward.SMUD said it still aims to completely remove all carbon from its power supply by 2030. The utility claims its power supply was about 62% carbon-free in 2024.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

The Sacramento Municipal Utility District (SMUD) announced Monday that it will not purchase electricity from a proposed solar farm project.

SMUD in 2021 signed a power purchase agreement (PPA) with D.E. Shaw Renewable Investments to take solar power from the Coyote Creek Agrivoltaic Ranch project. But the utility now listed multiple reasons against moving forward with the purchase. Those include “supply chain constraints, rising prices, tariffs, schedule delays, environmental impacts and pending litigation.”

“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,” said Paul Lau, SMUD’s CEO and general manager, in a release. “We’d like to thank Sacramento County for all their work throughout the process and our SMUD Board of Directors for their leadership.

The proposed solar farm project would be located south of Highway 50, northwest of Rancho Murrieta, southeast of the Prairie City State Vehicle Recreation Area and south of White Rock Road in the Cosumnes community, county leaders previously stated.

Those in support of Coyote Creek believe the project fits with agricultural use, preserves land and expands renewable energy. Opponents argue that the project will cost the area rural land, threaten habitat, strain water resources and worsen air quality.

In November, the Sacramento County Board of Supervisors moved the project forward.

SMUD said it still aims to completely remove all carbon from its power supply by 2030. The utility claims its power supply was about 62% carbon-free in 2024.

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

 

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