On Thursday, Aug. 19, the California Public Utilities Commission authorized a 7.63% increase to Southern California Edison’s revenue requirement for 2021. SCE had requested a 19.03% increase.
This results in $12.41 (or 8.9 percent) more monthly for a typical residential customer’s bill.
The CPUC excluded more than $131 million of costs for executive compensation and employee bonus programs that do not benefit consumer interests.
It did include “SCE’s investment in its distribution and transmission grids, substations, and energy storage and to modernize its grid and replace electrical poles to enhance safety and resiliency,” according to the CPUC press release.
It also approved “$3.29 billion in spending on SCE’s Wildfire Mitigation Programs. This approval includes authorizing SCE to replace 4,500 miles of overhead wire with covered conductor in an effort to reduce ignitions from power lines in high fire threat areas.
“SCE will also have the opportunity to increase this covered conductor deployment if needed, subject to further review in conformance with its Wildfire Mitigation Plan.”
The CPUC authorized SCE to buy up to $1 billion in liability insurance for third-party, wildfire-related claims. This will cost SCE about $460 million. “SCE may use alternative risk transfer instruments such as catastrophe bonds or self-insurance if needed and must demonstrate the reasonableness of costs exceeding the approved amounts for cost recovery,” according to the press release.
“This proceeding created the opportunity for the CPUC to make strategic decisions on the future of Southern California Edison’s capital investments, including grid modernization, responses to cybersecurity risks, and safety investments in response to climate change risks such as wildfires. Our decision keeps our communities safe and employed and also keeps Southern California Edison’s wildfire mitigation strategy agile,” said Commissioner Genevieve Shiroma, who is assigned to the proceeding.
K807/400807458.PDF for the approved proposal and https://apps.cpuc.ca.gov/apex/fp=401:56:0::NO:RP,57,RIR:P5_PROCEEDING_SELECT:A1908013 for related documents.