SCE and Gas Co Seek Approval to Increase All Retail Rates in 2012
DUARTE, CA, December 29, 2010 – The cost of keeping the lights on and heat burning is likely to increase for residential customers of both Southern California Edison and Gas Cos. SCE and the Gas Co. have notified its customers, including the City of Duarte,
that they have filed separate applications with the California Public Utilities Commission to increase retail rates for all of its customers.
Every three years utilities are required to forecast the cost of serving customers and, after reviewing such forecasts, regulators set each utility’s authorized revenue levels for the following three-year cycle. This is known as a General Rate Case.
SCE anticipates higher utility costs and has requested the equivalent of a 7.55% increase or $866 million to cover them. The Gas Co. on the other hand, is requesting a total revenue increase of $308 million or about a 7.4% increase system-wide.
According to SCE, the purposes of the cost increases are to connect new customers to the system and respond to customer requests including undergrounding projects; to reinforce and upgrade the electric system to accommodate load growth; to continue SCE’s multi-year capital investment program to replace aging distribution infrastructure and business systems; to meet increased cost for Information Technology (IT) systems such as protection from cyber security threats to electric system assets; and to make a substantial contribution to the employee and retiree pension fund to address the losses in financial markets over the past few years.
The Gas Co. is asking for the increase to be able to continue its investments in and maintenance of the system of pipes and equipment needed to deliver gas to customers; and to maintain the support structure necessary to keep it operating and providing customers with safe, reliable and responsive customer service.
In addition to filing, the approximate 18-month process also requires the utilities to submit evidence to support its position followed by a discovery process which allows the opportunity for parties to review submittals. Another part of the Commission’s GRC process is to establish costs, allocate revenues, and design equitable rates for all customer classes. The CPUC will then determine actual changes in rates, if any.
Before acting on the applications, the CPUC will hold public participation hearings open to public comment and evidentiary hearings open to comment by authorized interveners. Comments or concerns about the application should be directed to the CPUC Public Advisor who will circulate comments to the Commissioners and other CPUC staff working on the matter. The public is invited to address comments to: The Public Advisor, California Public Utilities Commission, 505 Van Ness Ave. Room 2103 San Francisco, CA 94102, or e-mail comments to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it . When writing, refer to Application 10-11-015 for SCE and Application A.10-12-006 for the Gas Co., and specify if you would like a response. Otherwise no response will be sent. Based on this process, the final decision will be rendered in either November or December of 2011 with implementation set for January 1, 2012. You may also call 415-703-2014 or toll free at 1-866-849-8390.
Customers may view and download SCE’s application and supporting papers on SCE’s website, www.sce.com, or request a copy of the materials by sending a written request referring to Application 10-11-015 to Southern California Edison Co., P.O. Box 800, Rosemead, CA 91770, Attention: Case Administration. For Gas Co. application information, call Martha Cendejas @ SoCalGas 1-858-654-1766 or view and/or print the application at socalgas.com/regulatory/cpuc.shtml.
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