HomeMy WebLinkAboutSupplemental Information - SoCal Edison, Notice of Application to Institute a Rate Stabilization Plan and Increase RatesSOUTHERN MWORN1A V O
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M EOISON IWERNnTIONAL^Comyny
NOTICE OF APPLICATION TO INSTITUTE A RATE STABILIZATION PLAN
AND TO INCREASE RATES
On November l6, 2000, Southern California Edison Company (SCE) filed Application No. 00-11-038
with the California Public Utilities Commission (CPUC) requesting authority to institute a Rate
Stabilization Plan designed to shield customers from the tremendous price spikes customers in San Diego
experienced earlier this year, while allowing SCE to recover its costs of providing service to its
customers. SCE filed an amendment to this application on December 21, 2000.
WHAT WE ARE REQUESTING
By state law, electric rates have been frozen at June 1996 levels, with residential and small commercial
customers receiving an additional 10% bill credit. In its application, SCE informed the CPUC that it had
fully collected its transition costs by the end of August 2000, which triggers the end of that rate freeze.
According to previously issued CPUC decisions, when the rate freeze ends, SCE would begin passing
through directly to customers its costs of procuring electricity on their behalf. In the last six months,
however, wholesale electricity prices in the California Power Exchange ("PX") and Independent System
Operator ("ISO") markets, the markets in which SCE procures most of its electricity, have surged upward
to almost five times what they were at the same time last year, and there may he no significant relief in
sight. Had SCE been passing through its procurement costs over the past few months, its system average
rates would have been approximately 81% higher for July, 98% higher for August, 75% higher for
September, 53% higher for October, and I 11% higher for November.
SCE proposes to recover its costs for purchasing electricity while avoiding exposing its customers to the
dramatic fluctuations and very high prices in the wholesale market by instituting a Rate Stabilization
Plan. Under this plan, customers will be billed at rates that are 30% higher than today. This rate increase
will be instead of SCE directly passing through to customers the cost of buying electricity to serve them,
as was the case in San Diego last summer. To reduce the impact of the rate increase on low-income
residential (CARE) customers, who currently receive a 15% discount compared to other residential
customers, SCE further proposes to limit their increase to 10%. Customers who are served by an Energy
Service Provider will pay for SCE's non procurement related costs and past procurement costs for which
they bear responsibility, but will no longer be charged a generation charge and will no longer receive the
corresponding Power Exchange Energy Credit. Based on the cost of energy from their Energy Service
Provider, the total percentage increase for these customers may be different.
The Rate Stabilization Plan is deigned to permit SCE to recover most, if not all, of SCE's past, present,
and future procurement costs over a five-year period. However, if the costs SCE incurs to procure energy
after the rate increase goes into effect exceed associated revenues by $1 billion, SCE proposes to increase
total rate levels by 5% every six months until the amount drops below $1 billion. Conversely, if
available revenues exceed procurement costs by $400 million, SCE proposes to reduce total rate levels by
5% every six months, until the amount in excess is less than $400 million. In the event that the costs
SCE has incurred to procure energy exceed associated revenues by $2 billion, SCE has reserved the right
to seek authorization to modify the percentage increase to achieve recovery of the costs by 2005.
SCE has requested authority to implement these rates on January 4, 2001, subject to refund. If the CPUC
approves SCE's request and subsequently determines that the amount of the increase should be lower, the
rate increase will be adjusted and customer bills between January and the time of a Commission decision
will be recalculated. The difference between the original and the recalculated bills would be credited to
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the customers on a future bill. Nevertheless, customers will be shielded from the price fluctuations in the
PX and ISO markets that the residents of San Diego experienced this last summer.
The table below depicts the proposed and potential revenue changes if SCE's application is approved as
filed. The second column depicts SCE's current revenues. The third and fourth columns depict the
revenues and revenue changes associated with a 30% rate increase. And, the fifth and sixth columns
depict the potential revenues and revenue changes associated with four consecutive 5% rate increases in
the event the costs SCE incurs to procure energy exceed associated revenues by $ I billion for two years
following January 4, 2001.
Current, Proposed, And Potential Revenues'
(0001s)
(1) (2)
(3)
(4)
(5)
(6)
Rate Group Current
Proposed
Proposed
Potential
Potential
Revenue
Revenue
Revenue
Revenue
Revenue
(Jan. 4, 2001)
Change
(Jan. 1, 2003)
Change
Residential" 2,853,494
3,751,424[['
897,930rrt
4,960,947
1,209,522
GS -I" 589,807
792,913
203,106
1,043,448
250,505
TC -1 13,747
17,882
4,135
21,736
3,854
GS -2 2,445,100
3,177,570
732,470
3,864,945
687,375
TOU-GS 76,827
100,244
23,417
122,209
21,965
TOU-8-Sec 759,302
1,003,545
244,243
1,261,105
257,560
TOU-8-Pri 580,407
774,267
193,860
980,808
206,541
TOU-8-Sub 384,493
538,933
154,440
739,272
200,339
Large Power 1,724,202
2,316,745
592,543
2,981,185
664,440
PA -1 85,224
109,408
24,184
133,080
23,672
PA -2 60,846
79,201
18,355
96,588
17,387
AG-TOU 91,258
118,764
27,506
144,358
25,594
TOU-PA-5 43,889
56,885
12,996
69,144
12,259
Ag. & Pump 281,217
364,258
83,041
443,170
78,912
St. Lights 78,861
94,668
15,807
115,070
20,402
System 8,063,255
10,615,704
2,552,449
13,552,709
2,937,005
t The revenues shown above are the estimated amounts to be collected from
customers in each rate
group for delivery service and energy
and assume SCE
purchases the energy requirements
of all its
delivery service customers.
tt The Residential and GS -I rate groups
reflect the 10% bill credit these customers receive from
January
1. 1998 through December 31, 2001.
Other rate groups
did not receive
this rate reduction.
xt The Proposed Revenue and Revenue Change associated with the 10% increase CARE customers
would receive are $287.2 million and
$28.1 million, respectively.
If approved as filed, SCE's customers would
see the following average rate changes associated with a
30% rate increase (column 3), and four potential 5% rate increases
(one
every six months
for two years)
t
assuming the costs SCE has incurred to procure energy exceed associated revenues by more than
$1 billion for two years (column 4):
Current, Proposed, And Potentia[ Average Rates
(1)
(2)
(3)
(4)
Rate Group
Current Rates
Proposed Rates
Potential Rates
0/kWh
January 4, 2001
Jan. 1, 2003
¢/kWh
¢/kWh
Residential
11.45
15.05
19.91
GS -1
11.91
16.01
21.07
TC -1
7.38
9.61
11.68
GS -2
9.99
.12.99
15.80
TOU-GS
10.04
13.10
15.97
TOU-8-Sec
8.54
11.29
14.18
TOU-8-Pri
7.61
10.16
12.87
TOU-8-Sub
4.62
6.47
8.87
Large Power
6.94
9.32
12.00
PA -1
12.54
16.10
19.59
PA -2
8.58
11.16
13.61
Ag-TOU
8.20
10.67
12.97
TOU-PA-5
7.15
9.26
11.26
Ag. & Pump
9.03
11.69
14.22
St. Lights
14.90
17.88
21.74
System
9.62
12.67
16.18
* The Proposed Rate
for CARE customers would be 10.8 01kWh
on January
1, 2001, and the Potential Rate would be 14.3 e/kWh on January
1, 2003.
EFFECT ON TYPICAL RESIDENTIAL CUSTOMERS
If the CPUC approves our request to institute a Rate Stabilization Plan, including the 30% rate increase, a
typical single-family residential customer consuming 500 kilowatt-hours of electricity per month in the
winter months would see a monthly increase of approximately $19.48 from $58.44 to $77.92. A typical
multi -family residential customer consuming 350 kilowatt-hours of electricity would see a monthly
increase of approximately $13.05 from $39.11 to $52.16. These amounts will vary depending on how
much electricity each customer uses.
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Before acting on this application, the CPUC may hold evidentiary hearings where SCE, the CPUC's
independent Office of Ratepayer Advocates, and other interested parties will present their testimony.
Parties may offer proposals to the CPUC which differ from those SCE presents. After considering the
evidence, the CPUC will issue a decision. The CPUC may approve rates that differ from those we
request.
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If you wish to participate in this proceeding and need more information or if you want to let the CPUC
know your views, please contact the Public Advisor's Office at:
The Public Advisor
California Public Utilities Commission
320 W. 0 Street, Suite 500
Los Angeles, CA 90013
or via electronic mail to:
public.advisor.LA@cpuc.ca.gov
Please refer to Application No. 00-11-038 in your correspondence. Yom letter will be sent to the
Commissioners and the assigned Administrative Law Judge and will become part of the formal
correspondence file for this application. Please indicate if you would like a written response to your
inquiry; otherwise no reply will be sent.
FOR FURTHER INFORMATION
In addition to contacting the CPUC at the address listed above, if you want more information about
Application No. 00-I1-038, please write to SCE at:
SCE Corporate Communications
P.O. Box 800
Rosemead, CA 91770
You may review a copy of our application and related exhibits at our corporate headquarters (2244
Walnut Grove Avenue, Rosemead, CA), at the San Francisco office of the CPUC, or at any of SCE's
business offices listed below.
30553 Rimrock Rd., Barstow, CA 92311
374 Lagoon St., Bishop, CA 93514
505 W. 10 Ave., Blythe, CA 92225
I Pebbly Beach Rd., Avalon, CA 90704
3001 Chateau Rd., Mammoth Lakes, CA 93546
510 S. China Lake Blvd., Ridgecrest, CA 93555
26364 Pine Ave., Rimforest, CA 92378
41694 Dinkey Creek Rd., Shaver Lake, CA 93664
421 W. J St., Tehachapi, CA. 93561
6385 Adobe Rd., Twentynine Palms, CA 92277
120 Woodland Dr., W offord Heights, CA 93285
6999 Old Woman Springs Rd., Yucca Valley, CA 92294