Application of Southern California Edison Company for Authority to Increase its Authorized Revenues for Electric Service in 2025 (and through 2028), among other things, and to Reflect that Increase in Rates (A.23-05-010)
BACKGROUND
In 2023, Southern California Edison Company (SCE) filed its Test Year 2025 General Rate Case application requesting that the California Public Utilities Commission (CPUC) increase the amount it can collect from its ratepayers beginning January 1, 2025. SCE requests an average annual increase of $2.81 billion over from 2025 to 2028 over 2024 levels, based on the utility’s expectation of higher costs to provide its services.
All investor-owned utilities must obtain approval from the California Public Utilities Commission (CPUC) of their budgeted expenses and investments before they are able to include those costs in rates charged to utility customers. The investor-owned utility is required to submit a General Rate Case (GRC) application to the CPUC to justify the proposed budget. In addition to seeking customers’ funding of its operating expenses, the utility can include in its GRC application such things as a request to upgrade its computer systems or to build new infrastructure.
PUBLIC ADVOCATES OFFICE POSITION
After a review of their application, the Public Advocates Office recommended $4.66 billion in reductions compared to the utility’s request over the 4-year period.
The Public Advocates Office proposes various adjustments resulting in lower forecast costs across several areas, including wildfire management, executive benefits, incentive programs, and capital investments. These recommendations were informed by exhaustive reviews, including by compelling the utility for additional information, conducting independent forecasts and comparing them to utility forecasts, and ultimately, developing more affordable recommendations. In many instances, SCE did not provide sufficient details to fully evaluate and determine the reasonableness of its requested increases.
OUR MAIN COMMENTS
- Report on the Result of Operations (Executive Summary). February 28, 2024.
- Protest. June 14, 2023.
Contact Us
Mary Flannelly, Policy & Communications
Mary.Flannelly@cpuc.ca.gov
General Support & Questions
PublicAdvocatesOffice@cpuc.ca.gov