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HomeMy WebLinkAboutPresentation SCE - Tier Collapse Overview for Local Governments_June 2016_LPA.6.13.2016Southern California Edison Residential Rate Reform 2016 Tier Collapse Overview JUNE 13, 2016 Local Public Affairs Public Information Southern California Edison Agenda •Historical Overview •Overview of Current Changes •Information Available •Future Changes •Questions Internal Only Not for External Distribution Southern California Edison Historical Overview •During the 2000-2001 Energy Crisis, the CA Legislature froze tiers 1 and 2 in order to protect to residential customers •As a result, higher tiers were created to absorb the costs of the energy crisis, additional costs to modernize the grid and fund clean energy •In 2013, AB 327 returned authority to the California Public Utilities Commission (CPUC) to make changes to the residential rate structure •In July 2015, the CPUC approved a transition to a new rate structure that is more cost-based and fair •Some changes have already been implemented •Tiers collapsed from 4 to 3 on June 1, 2016 •Minimum charge increased to $5 for CARE and $10 for non-CARE •Multi-year plan to make rates more equitable Internal Only Not for External Distribution Southern California Edison Overview of Current Changes •On June 1, residential tiers collapsed from 4 to 3 •Most low usage customers will see increases of less than $2/mo. •Most medium usage customers will see increases of less than $4/mo. •Most high usage customers or customers with higher usage during the summer who were previously paying far above cost will see decreases of about $8/mo. on average Internal Only Not for External Distribution Southern California Edison Overview of Current Changes Internal Only Not for External Distribution •Most low and medium usage CARE customers will see close to zero total impact •Low and medium usage CARE customers, like others, may notice higher bills in the summer due to air conditioner usage •High usage CARE customers will see increases of less than $5 on average Southern California Edison Overview of Tier Collapse •This is part of an effort to make rates more cost-based, i.e. more closely tied to how much it costs to provide electric service to customers •With the tiered structure, all customers still have an incentive to conserve electricity •Not a rate increase –total revenue collected by SCE is not changing, just how we calculate residential rates to improve fairness •Individual rate impacts will depend on customer’s unique usage •California Climate Credit will increase from $29 to $38 •Flat bill credit applied to all residential customers in April and October •This increase in credit will likely offset any increases customers may see. Internal Only Not for External Distribution Southern California Edison Information Available •Customer Communication Pieces •Rate Reform Website: on.sce.com/ratechange •Inside Edison Article •http://insideedison.com/stories/helping-customers-understand- their-utility-bills •Online FAQ •http://insideedison.com/stories/q-a:-rate-structures-to -change-for- sce-residential-customers •Spanish, Chinese, Vietnamese and Korean versions available Internal Only Not for External Distribution Southern California Edison Ways Customers Can Manage Costs •Budget Assistant: on.sce.com/ba •Energy Efficiency: on.sce.com/tips •Summer Discount Program: www.sce.com/sdp •Low Income Programs: www.sce.com/careandfera •Additional Tips: on.sce.com/ratechange •Level Pay Plan: www.sce.com/levelpayplan Internal Only Not for External Distribution Southern California Edison Internal Only Not for External Distribution Southern California Edison Internal Only Not for External Distribution Southern California Edison Internal Only Not for External Distribution Southern California Edison Future Changes •Optional residential Time-of-Use (TOU) rates are available and provide a new way for customers to manage bills by pricing electricity by time of day. •Introduction of “High User” charge in Q1-2017 •Further collapse from 3 tiers to 2 in Q1-2017 •Default transition to residential TOU rates in 2019 Internal Only Not for External Distribution Southern California Edison Questions Internal Only Not for External Distribution Southern California Edison Appendix Internal Only Not for External Distribution