Southern California Edison seeking 40% rate increse from 2012-2014

If you thought Electricity was expensive here in California now, wait until next year. Edison has gone to the CPUC to get a 40% rate increase over the next 3 years. The rate increase is based on capital expenditures from the Smart Meter program and the new legislation requiring Edison to increase their renewable portfolio to 33% by 2020, to name a few…

The below info was pulled from the Ratepayer advocates website, this is the institution that is keeping Edison in check and not allowing them to walk all over the ratepayers of the territory.

http://www.dra.ca.gov

The Division of Ratepayer Advocates (DRA), an independent consumer advocacy division of the California Public Utilities Commission (CPUC), on Wednesday released a report calling for a $3.7 billion reduction to Southern California Edison’s requested revenue  increases taking effect in 2012.

As a part of its general rate case, Edison has requested a revenue increase of $4.6 billion from 2012 to 2014. DRA analysis has determined Edison’s cost claims to be overstated by some 80 percent and urges the CPUC to approve a revenue increase of only $833 million. Edison’s request constitutes a 40 percent increase over current levels while DRA’s report recommends an 8 percent increase. DRA will present its analysis during evidentiary hearings before the CPUC in July.

“Our report finds bloated cost estimates in Edison’s request,” said DRA acting director Joe Como. “DRA’s recommendations represent a fair increase based on reasonable cost estimates.  Edison should be looking to trim its expenditures and be more sensitive to its customers’ financial needs.”

Edison asserts that additional revenue is needed to cover higher costs associated with, among other things: operating and maintaining its systems; serving its customers; capital investments; health benefits; employee salaries; and pension contributions.  DRA’s own independent forecasts of these costs over the next three years are, cumulatively, $3.7 billion lower than what Edison estimates.

California Electricity Rates

What does this mean for a rate payer in Edison territory. Well, your 300$ bill could go up to 420$ over 3 years or on the low end up to $321. Most likely it will fall in between. Either way your bill is going to go up for electricty here in southern California.

Below is the timeline to how this will play out. There is a public hearing scheduled for July and as more info becomes available I will keep you posted

 

If you want to do something about it and generate 50-70% of your energy on your roof from a renewable clean source of electricity please contact me and I will show you how you can do this with little to no out of pocket money!

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