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SCE Hikes Rates 6%

05/19/20

  01:57:00 am, by Jim Jenal - Founder & CEO   , 424 words  
Categories: Solar Economics, SCE

SCE Hikes Rates 6%

Talk about tone deaf - just as folks are stuck at home, sheltering in place, SCE jacked its rates roughly 6% across the board, because, you know, folks can so much more easily afford a rate hike while people are losing their jobs!  Here’s our (can you say outraged) take…

As of April 13, with little to no fanfare, SCE’s latest rate increase went into effect.  While different rates vary by somewhat different amounts, the overall average of 6.7% is expected to provide SCE with an additional $478 million dollars in revenue.  How nice.

The rate increase is not new; it is part of the CPUC-approved General Rate Case that was adopted in 2018 and covers rates for three years.  Nevertheless, at a time when other utilities, like PWP, are working hard to support their customers during a disastrous financial time, SCE’s willingness to press ahead with the rate increase is baffling, at best.

Using our regular proposal tool - Energy Toolbase - we decided to look at the results for three actual clients: a small usage client, a medium or really typical client, and then a very large usage client to see how the percentages played out.  Here are our results:

SCE rate increase

SCE’s Rate Increase - Click for Larger

The small user, with a total annual usage of 6,093 kWh (16.7 kWh/day) still has an annual bill on the tiered, Domestic rate plan of $1,267 and will experience a 6.24% increase or an extra $79 out of pocket.  Our medium user consumes nearly twice as much annual energy, 11,814 kWh (32.4 kWh/day), but because of the higher costs in the upper tiers of the Domestic rate plan, their bill is more than double.  After the 6.24% increase, the medium user is spending an extra $166.  Our large user - and this is not our largest residential client! - consumes 32,488 kWh (89.0 kWh/day), and has a bill to match, roughly four-times that of the medium user due to essentially living in the top tier of the rate structure.  After a 6.26% increase, they will be spending an extra $633!

We also looked at the same users switched over to a Time-of-Use rate (here, the 4-9 p.m. peak rate structure) and ran the numbers again.  One thing that leaps right out at you is that very large users will do much better on a TOU rate generally since otherwise almost all of their usage is billed in the top tier.  The percentage rate increases under the TOU rate are slightly smaller, with the small user paying an extra  $76, the medium user $160, and the large user $507.

Not exactly the sort of relief that ratepayers need at this time of unprecedented uncertainty.

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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