Thursday, 20 March 2008

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Southern California Edison cites bad winter as reason for summer rate rise

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really high here in the area because it so hot in the summer, Burks said.

Another issue that might affect customers next year is SCE General Rate Case. According to Edison proposal, customer bills would increase an average of about 1.5 percent in 2015, 2.2 percent in 2016 and 2.4 percent in 2017.

Utilities are required to forecast what they will spend buying energy and then set rates accordingly, Edison officials said. When SCE has to spend more than what was forecast, such as this year, it needs to recover the difference, officials said.

To the extent there is a departure on a recorded costs, the customers feel the effect.

was a sharp increase in the price of natural gas last winter and early into this year, Worden said. imports 85 percent of natural gas, and much of the generation in California is gas fired. This ripples through the price of electricity.

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The commission has yet to determine a date for a decision.

we gonna reach a tipping point where no one can afford to live any longer, she said, I think we fast approaching that because more and more people are struggling just to make their light bills, gas bills, utility bills. Food costs are going up. Everything is going up. a point when they gonna have to stop raising rates and find another way to make it happen. The CARE (the California Alternate Rates for Energy) and FERA (Family Electric Rate Assistance) programs are available for low income customers. Eligibility is based on annual household income combined with the number of people in a household, according to Edison.

An unusually cold winter this year on the East Coast and the Midwest is being blamed by Southern California Edison for higher summer rates.

would be at a certain price, Worden said. we buy power on the market, we put it on the wires and give it to customers with no profit for Edison just a straight pass through. The recorded amounts we experienced were much more than what was experienced when the rates were put in place. The rates are put in place on a forecast basis. Vans Old Skool Pro White

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Connie Downs of Ontario said she thinks the reason for the summer rate increase to recover costs from higher natural gas prices is reasonable, but added that at some point there has to be another way.

The utility is raising rates on average by 8 percent to make up for higher energy costs resulting from the cold winter, said Russ Worden, director of regulatory operations for Edison.

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Edison proposes a two tiered rate structure that keeps protections for low income customers and a fixed charge that would cover about one third of fixed costs. The PUC is expected to make a decision next year.

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