(July 20, 2008) -- LB residents (the "average residential customer") could see their monthly electric bill increase by roughly 30% -- $24 more each month, roughly $288 more per year -- and LB businesses could see their electric bills increase by roughly 25% -- if the CA Public Utility Commission approves a rate increase requested by Southern CA Edison.
SCE spokesman Gil Alexander told LBReport.com that when the utility first requested the rate increase in March 2008, it forecast the increase would amount to roughly 17.5% for the average residential customer. However thereafter, ("as you can see when you pull into your local gasoline station") SCE's higher cost for natural gas to run its electrical generating plants means it now forecasts the increase will be about 30% for average residential users.
Spokesman Alexander said the average residential customer uses 570 kilowatt hours per month (a "statistically average bill" is roughly $85 per month; each home's usage and bill may be higher or lower.)
Low usage SCE customers (usage within Tier I and Tier II levels) won't be affected since the requested rate increase only affects customers whose use enters Tier III level, Mr. Alexander said. [The average residential homeowner enters Tier III level to some extent.]
Those enrolled in SCE's low income program will also be exempt...and the net result means that if the rate increase were granted, roughly 40% of SCE consumers won't see a rate increase, Mr. Alexander said.
The San Francisco-based utility watchdog group TURN was already up in arms when the increase was forecast to be roughly 17.5% (not the roughly 30% anticipated for residential users now). On its website (www.turn.org), the group charged at that time:
"Despite an economic downturn that means more and more Californians are struggling to meet basic needs, Southern California Edison has proposed massive, unjustified rate hikes..." and added a barbed Q & A:
How Will Customers Be Impacted?
Edison's request could not come at a worse time for customers. Unemployment is high, housing values are dropping, gas prices are skyrocketing and food costs more. We don’t need to add higher electric bills to the troubles.
...
Where could Edison cut spending?
Excessive executive salaries and stock options:
- Chairman and Chief Executive John E. Bryson will retire this summer with a pension plan and stock options worth almost $65 million.
- CEO Alan Fohrer's cash compensation in 2007 was $3,754,446, with stock options worth $9,957,803...
Luxurious new offices:
- $80-85 million for renovation and remodeling, including new furniture
- 171 million for deluxe new headquarters
SCE spokesman Alexander said the increase stems from two factors: increased natural gas cost and the utility's request to spend more on infrastructure and component replacement. He added that the rate increases require CPUC approval after the regulatory process (with hearings) runs its course; the figures stated in this article are the utility's estimates of the increases if CPUC approves the increases as requested without changes.
The development was first reported today (July 20) by the Pasadena Star News...which (Mr. Alexander indicates) apparently spotted a notice on the Duarte City Hall website (notifying its residents of Edison's requested 17.5% increase), telephoned SCE and inquired about it...and learned about the utility's new higher forecast [and broke the story; nice job.]
LBReport.com followed-up independently and the information in our story is independently reported by us.
Spokesman Alexander said the utility plans to notify LB City Hall of the newly forecast increase will after the utility updates its filing (containing its newly revised forecast) by August 1.
