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Sacramento Municipal Utility District tests the waters

Three weeks before most of California's electricity market started to deregulate, The Sacramento Municipal Utility District (SMUD) announced its first contract to supply customers outside its existing service area. SMUD will provide power to the San Juan Water District, a public agency and former customer of Pacific Gas & Electric. SMUD is guaranteeing San Juan a saving over the $500,000 that PG&E charged to pump its water. Under the two year contract, San Juan will also offer electricity from SMUD -- which offers green power -- -- to its water customers.

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