SCE Customer Rates to Decrease
November 06 2015 - 5:44PM
Business Wire
An average Southern California Edison residential customer’s
bill would decrease about 6 percent by the end of March as a result
of several actions by the California Public Utilities
Commission, including a vote on
Thursday for funding SCE’s day-to-day operations.
The commission’s decision authorized recovery of costs reviewed
in SCE’s General Rate Case, which
includes inspecting, repairing and replacing infrastructure that
will make it easier to restore power after an emergency outage in
the future. It also funds the people SCE employs, such as the
workers who climb the poles to restore electric service in storms
and answer customer service calls.
“Southern California Edison is working hard to keep rates
reasonable for our customers while also making the necessary
infrastructure improvements for the 21st century power network, and
we were able to do that while requesting a rate decrease for our
customers,” SCE President Pedro Pizarro said.
Every three years, the commission reviews a request from SCE for
the next three-year spending cycle.
As of late November, an average residential customer’s bill will
decrease about 2 percent as a result of the commission approval on
Oct. 22 of the 2015 costs for energy sources SCE needs to supply
electricity. These expenses are passed through to customers at
cost; there is no markup or profit. SCE generates about 20 percent
of its own power and buys the rest through contracts and short-term
markets. These costs are approved annually.
The November bill decrease also includes settlement refunds from
the 2000-2001 California energy crisis.
SCE expects the commission to approve its anticipated 2016 costs
for energy sources in the first quarter of the year. If the
commission approves SCE’s request, an average residential
customer’s bill would decrease 4 percent. Part of that decrease
will be implementation of a settlement with Nuclear Electric
Insurance Limited for the San Onofre outages caused by the failures
of replacement steam generators. Ninety-five percent of the net
insurance proceeds will benefit customers — SCE’s share of the
settlement is $312.8 million.
The General Rate Case makes up more than 40 percent of rates for
the nearly 14 million people SCE serves. About half of customer
rates comes from the cost of energy sources for power. The
remaining portion comes from a variety of other factors, such as
large transmission projects regulated by the Federal Energy
Regulatory Commission and programs for energy efficiency and to
protect low-income customers.
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About Southern California Edison
An Edison International (NYSE:EIX) company, Southern California
Edison is one of the nation’s largest electric utilities, serving a
population of nearly 14 million via 5 million customer accounts in
a 50,000-square-mile service area within Central, Coastal and
Southern California.
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Media Contact:Lauren Bartlett, 626-302-2255
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