State regulators today cleared Southern California Edison to raise electricity rates by 5 percent in order to cover the cost of providing "safe and reliable" electricity and integrating renewable energy sources.
The rate increase was shy of the 16.6 percent requested by the private utility.
The California Public Utilities Commission ordered Edison to try harder to cut costs, and the commission disallowed some of what it called "non- essential" projects. The ruling will force the utility to cut operations and maintenance expenses by about $258 million and spending on capital projects by $756 million.
CPUC Commissioner Timothy Alan Simon, who led the review, said the decision strikes a balance between the goals of the utility and protecting ratepayers.
"This decision ensures that SCE is able to invest in smart energy systems, renewables and safety and reliability while its ratepayers are protected under the CPUC's prudent review," Simon said.
The decision authorizes Edison to beef up equipment inspections and to use new technology to better track the condition and service record of the utility's assets. Regulators also ordered an independent review of SCE's system utility poles to determine whether current loads meet legal standards and an independent audit of SCE's spending on infrastructure repair and replacement.
The report by the CPUC addressed widespread criticism over Southern California Edison's response to a 2011 windstorm. The commission required SCE to the commission with a progress report next year on the utility's stated commitments to improve communications with customers during emergencies.
"While today's decision results in a rate increase for SCE's ratepayers, this is a necessary investment in our future. We need to do a more thorough job in monitoring, maintaining, and replacing our aging electricity infrastructure. We also need to modernize and enhance our electricity system to better achieve the state's environmental policy goals," Commissioner Mike Florio said. "We will be vigilant to ensure that SCE will spend every penny wisely."
One last question for SCE; will we ratepayers be getting free Vasoline?
PUC approves 5% SCE rate increase. "to cover the cost of providing "safe and reliable" electricity and integrating renewable energy sources" "to better achieve the state's environmental policy goals" They are charging more for "alternative energy." It's "alternative" because it's more expensive. This rate increase is also a small down payment on AB 32, CA's global warming law. The PUC is forcing SCE to forgo maintenance and new investment to pay for “alternative energy.” This will jeopardize the reliability of electricity for CA businesses and consumers in the future. Utility rate increase are a way to get more money from the taxpayers without calling it tax increase and avoid putting it to a vote of the people, e.g. Redlands’ trash rate increase. Even before the rate increase, "California residential electricity costs an average of 29.2% more than the national average (significantly higher in San Diego and Orange counties). For industrial use, CA electricity is 59.8% higher than the national average (average for 2011)." "CA has now instituted the highest “cap and trade” tax in the nation – indeed, the ONLY such U.S. tax. One study estimates the annual cost at $3,857 per household by 2020. Even proponents concede that it will have zero impact on global warming." http://www.foxandhoundsdaily.com/2012/09/breaking-bad-california-vs-the-other-states/
http://www.youtube.com/watch?v=zuvnsAg3eA8