SoCal Edison’s 3.94% Rate Increase Approved

The California Public Utilities Commission (CPUC) today authorized a 3.94 percent increase in Southern California Edison’s (SCE) revenue requirement for 2018-2020 after a thorough assessment and determination of operating expenses and capital expenditures that are necessary for SCE to provide safe and reliable service. For 2018, SCE is authorized to spend $1.77 billion for Operations and Maintenance (O&M) expenses and $3.98 billion for capital projects. These are reductions to SCE’s 2018 O&M request by 5 percent and its capital spending request by 15.4 percent. The decision authorizes subsequent revenue requirement (the total amount of revenue needed to pay all operating costs and capitalrelated costs) increases for 2019 ($335 million or a 6.6 percent increase over 2018) and for 2020 ($410 million or a 7.5 percent increase over 2019). Much of these increases are due to past approvals of significant capital investments requested by SCE; the company continues to earn a return on these investments, which is collected from ratepayers. In authorizing a revenue requirement, the CPUC closely scrutinizes the activities of the utility company to ensure it receives the necessary funds to provide safe and reliable service to customers, and to allow the company to maintain and replace its aging infrastructure, but at a reasonable cost to its ratepayers.