(The following press release from the California Public Utilities
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FOR IMMEDIATE RELEASE
Docket #: A.10-11-015
CPUC ISSUES PROPOSAL ON SOUTHERN CALIFORNIA EDISON
RATE CASE REQUEST
SAN FRANCISCO, October 19, 2012 -- The California Public Utilities Commission
(CPUC) today issued for public comment a Proposed Decision by an Administrative
Law Judge regarding Southern California Edison’s (SCE) General Rate Case. If
approved by the five-member CPUC, the Proposed Decision would allow SCE to
recover from ratepayers an increase of 5.45 percent over present rates,
representing the reasonable costs of providing safe and reliable electrical
service to customers in 2012. SCE had requested a 16.6 percent increase over
The Proposed Decision is the result of the CPUC’s detailed review of the future
operations and service requirements of SCE. The CPUC holds safety,
reliability, and just and reasonable rates for customers as the basis of its
review. In order to keep rates just and reasonable, the Proposed Decision
imposes belt tightening on SCE, including more efforts at cost-effectiveness,
slower implementation of some activities, and disallowance of non‑essential
costs and projects. The Proposed Decision reduces SCE’s 2012 company-wide
request for Operations and Maintenance expenses by $243.2 million and reduces
SCE’s 2010-2012 capital spending request by $813.7 million.
The Proposed Decision authorizes $5.693 billion base revenue requirement for
2012 in order to provide SCE with sufficient funding to both assure safe and
reliable service and to adapt SCE’s system to integrate renewable energy
resources and advanced technologies. The revenue is a 5.45 percent increase
over the projected revenue requirement at present rate levels of $5.399
billion, and a 9.55 percent reduction from the 2012 revenue requirement
requested by SCE of $6.294 billion.
Recognizing the need for SCE to make safety a priority, the Proposed Decision
authorizes enhanced equipment inspections and new technology to better track
the condition and service record of SCE’s assets. It also orders an
independent assessment of SCE’s system utility poles to determine whether
current loads meet legal standards, and an independent audit of SCE’s spending
across key categories of infrastructure repair and replacement included in the
Reliability Investment Incentive Mechanism.
Regarding SCE’s much-criticized response to a 2011 windstorm, in 2013 SCE is
required to provide the CPUC with a progress report on various initiatives SCE
stated it would undertake to improve its emergency communications and responses
to service communities and customers. Further, the Proposed Decision
determines that it is in the best interest of ratepayers for 2012 Operations
and Maintenance expenses and post-2011 capital expenditures related to the San
Onofre Nuclear Generating Station to be tracked in a memorandum account for
separate review and be subject to refund.
Comments by parties are due by Nov. 8, 2012, and reply comments are due by Nov.
13, 2012. The first opportunity that the Commissioners will have to vote on the
Proposed Decision is Nov. 29, 2012.
Members of the public can comment on the Proposed Decision by contacting the
CPUC’s Public Advisor’s Office at 415-703-2074 or 866-849-8390 (TTY
ublic.advisor%40cpuc.ca.gov> or CPUC Public Advisor, 505 Van Ness Avenue, Room
2103, San Francisco, CA 94102. Please reference proceeding number A.10-11-015.
The Proposed Decision, assigned to Commissioner Timothy Alan Simon, is
For more information on the CPUC, please visit
Media Contact: Terrie Prosper, 415.703.1366, firstname.lastname@example.org
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