(The following is a reformatted version of a press release
issued by The California Public Utilities Commission and
received via e-mail. The release was confirmed by the sender.)
CPUC DECISION ON SOUTHERN CALIFORNIA EDISON RATE CASE AIMED AT
PROVIDING SAFE AND RELIABLE SERVICE
SAN FRANCISCO, November 29, 2012 -- The California Public
Utilities Commission (CPUC) today issued a decision in Southern
California Edison’s (SCE) General Rate Case, allowing SCE to
recover from ratepayers an increase of 5.04 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 current rates.
The 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 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 Decision reduces SCE’s 2012
company-wide request for Operations and Maintenance expenses by
approximately $258 million and reduces SCE’s 2010-2012 capital
spending request by approximately $756 million.
The Decision authorizes $5.671 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 5.04 percent increase over the projected
revenue requirement at present rate levels of $5.399 billion,
and a 9.9 percent reduction from the 2012 revenue requirement
requested by SCE of $6.294 billion.
“This decision ensures that SCE is able to invest in smart
energy systems, renewables, and safety and reliability while its
ratepayers are protected under the CPUC’s prudent review. The
decision strikes a fine balance in attaining this common goal
between the utility and its ratepayers,” said Commissioner
Timothy Alan Simon, the lead Commissioner in the proceeding.
Said Commissioner Mike Florio, “While today’s decision results
in a rate increase for SCE’s ratepayers, this is a necessary
investment in our future. We need to do a more thorough job in
monitoring, maintaining, and replacing our aging electricity
infrastructure. We also need to modernize and enhance our
electricity system to better achieve the state’s environmental
policy goals. We will be vigilant to ensure that SCE will spend
every penny wisely.”
Added Commissioner Mark J. Ferron, “Today’s decision strikes an
appropriate balance between providing the necessary funds for
forward-looking utility operations while maintaining affordable
prices for SCE’s customers and keeping a watchful eye on the
associated safety concerns.”
Recognizing the need for SCE to make safety a priority, the
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.
For more information on the CPUC, please visit www.cpuc.ca.gov.
Media Contact: Terrie Prosper, 415.703.1366, firstname.lastname@example.org
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