SCE's Application 07-11-011 requested a revenue increase of $858 million. DRA is recommending a modest $156 million revenue increase.
SCE General Rate Case, Phase II - Rate Design:
Overview:
This proceeding (A. 08-03-002) is the rate design phase of the General Rate Case for SCE. Underlying costs of service are calculated and then the different revenue responsibilities are assigned to the various customer classes served by SCE. The final revenue allocation often considers overall equity and bill impact considerations. Following the revenue allocation rates are designed and calculated that collect the customer class revenue allocation.
SCE's Proposals:
SCE’s proposals assume an average increase of 12.1%, and SCE is proposing that the residential class pay a 17.5% increase.
DRA will conduct its own analysis of the underlying costs and make its own recommendations regarding how any approved cost increases should be allocated to customer classes.
SCE has proposed several changes to residential rates: 1) increasing fixed monthly customer charges from $1 a month to $6 a month; 2) lowering baseline allowances; and 3) changing the rate differentials between residential tier 3, 4 and 5 rates.
SCE is further proposing a Peak Time Rebate (PTR) program for which residential and small commercial customers would receive a rate rebate if they lower their electricity consumption below a customer specific level (based on a customer’s historical consumption during similar conditions). This rebate would apply for times when electric capacity was constrained.
DRA will examine these proposals and what the bill impacts would be for customers if these proposals were adopted. DRA will submit its own recommendations on this proceeding on September 12, 2008.