SCE Request For Higher Profits Because Of Fires Panned By CPUC Staff
Written by 991KBU on December 3, 2019
Does Southern California Edison deserve to make higher profits??
The electric company has a monopoly franchise to serve Malibu about a third of California with safe and reliable electric power.
But those frequent … inconvenient fires caused by Edison’s aging overhead power lines are making it more risky for the investor owned utility.
So with the greater risk … Edison is asking for greater reward.
Edison has asked the California Public Utilities Commission to increase its guaranteed profit margin … up from the current 10 point 3 percent.
Southern California Edison currently makes 10 point 3 percent profit on selling electricity to you … when the weather is good.
SCE has been given permission by the state to turn off your power … when it gets so windy that its antiquated overhead power lines might call down and catch fire.
That … despite a state law that requires Edison to provide safe and reliable power.
The California Public Utilities Commission has abandoned its old safety standards … and told Edison it can turn off the power at its sole discretion when the winds make it dangerous.
Earlier this year … Edison went to the CPUC and asked for higher profit margins … SCE argues that larger shareholder returns were needed to attract investors who might be scared off by the wildfire liabilities.
After all … nearby Pacific Gas & Electric has filed for bankruptcy … and SCE’s parent company has seen its stock price plummet.
The Los Angeles Times reports that the CPUC staff is recommending a no vote on the higher profit margin request.
Staff at the California Public Utilities Commission is calling for keeping profit margins the same for Southern California Edison.
the CPUC report says that Edison is already being protected by the state Legislature.