In April, an administrative law judge issued a preliminary decision approving Southern California Edison’s wildfire mitigation plan. The California Public Utilities Commission must also affirm the ALJ’s recommendation.
In addition, SCE filed a rate increase request with CPUC. The purpose of this request is to “… include a wildfire risk component in setting the company’s authorized cost of capital for utility operations for the three-year period starting in 2020,” according to the press release.
SCE wants to increase its return on equity from 10.3 percent to 10.6 percent. The higher rate “… reflects capital needs for safe, reliable day-to-day operation …”
Also, Edison is asking for a 6 percent increase “… to compensate investors for the higher risks associated with uncertain state policies for utility cost recovery and liability resulting from California’s devastating wildfires.”
If Edison can reduce its risk of wildfire damage and associated costs, it will ask for a rate reduction, the press release added.
If the request is approved, SCE estimates that customers’ bills will increase $12.20 monthly based on a monthly bill of $100.

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