Page One | Page Two | Page Three | Page Four | Page Five | | HOME
| VOLUME 12, NUMBER 1 | SEPTEMBER 2008 |
Edison General Rate Case Heats Up
Southern California Edison’s General Rate Case is heating up as consumer groups begin to weigh in on SCE’s proposal to adjust rates for all customers.
General Rate Cases are set up in two phases. In Phase I, SCE requests to adjust their rates to reflect changes in providing their cost of service (less the commodity price of the electricity), largely pertaining to labor, distribution and transmission infrastructure. SCE earns their profit, or rate-of-return, on this infrastructure.
The rate changes adopted in Phase I are spread to all customers on a generally equal basis. In their current GRC filing, SCE has requested an increase of 10% for all customers. (Historically, the CPUC has refused to grant the bulk of the requested increases from SCE). The California Public Utilities Commission will rule on SCE’s Phase I request later this year, with new rates stemming from their decision expected to take effect in early 2009.
In Phase II, SCE makes its proposal to reallocate revenues amongst the various classes, and to readjust all the rates that garner those revenues. Phase II is a “zero-sum” game, in that SCE collects the same total of revenues, but receives different amounts from different customer classes (agricultural, residential, commercial, etc).
In Phase II, SCE has proposed to increase agricultural and water pumping rates by an average of 2.5%. Since this change occurs after they receive their Phase I rate increase, if Edison’s complete request is approved, this could mean a 12.5% increase for agricultural and water pumping customers.
The first customer class to weigh in on this proposal was the Division of Ratepayer Advocates, an arm of the CPUC that acts as a watchdog on behalf of ratepayers. As illustrated below, they have proposed a 0.5% decrease for agricultural and water pumping customers (please note that this table assumes that Edison receives their entire 10% Phase I proposal):
Three of the five agricultural and water pumping rates are illustrated above. PA-1 comprised most of the smaller non-time-of-use accounts, whereas AG-TOU and TOU-PA-5 contain the vast majority of time-of-use pumping rates.
Phase II is the arena where AECA will be heavily involved. AECA will submit testimony to the CPUC on October 31st in response to the proposals of both SCE and DRA. Litigation of this case, including settlement talks, are expected to last through early 2009, with a decision from CPUC by mid-2009. Any new rates adopted would take affect in late 2009.
Contact the AECA by E-Mail
Agricultural Energy Consumers Assocation
925 L Street, Suite 800 / Sacramento, CA 95814
(916) 447-6206
Content and graphics copyright ©2000, Agricultural Energy Consumers Association .
HTML and design copyright ©2000, ABC Internet.
All rights reserved.
