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SoCalEd seeks 20.1% increase in electric base rates

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SoCalEd seeks 20.1% increase in electric base rates

Southern California Edison Co. is seeking approval from California regulators to increase its currently authorized and requested base rates by $1.30 billion, or 20.1%, in 2021.

The general rate case request also includes proposed revenue requirement increases of $400 million in 2022 and $531 million in 2023, according to an Aug. 30 filing to the state Public Utilities Commission. The request includes the impact of anticipated lower kWh sales in 2021 and $87.1 million of one-time memorandum account recoveries.

The bulk of the Edison International subsidiary's proposed $7.60 billion base revenue requirement for 2021 is for maintaining and improving the grid and necessary support function to provide its services, as well as its investments to reduce greenhouse gas emissions.

In particular, the increase is driven by the utility's need to undertake extraordinary measures to reduce wildfire risk as indicated in its grid safety and resiliency program and wildfire mitigation plan filings. The request, however, excludes revenue requirement associated with the approximately $1.6 billion in wildfire risk mitigation capital expenditures.

SoCalEd forecasts a $25.6 billion total capital program requirement for 2019 through 2023.

The utility is requesting that the CPUC issue a final decision on the rate case by the end of 2020. If the decision is delayed, SoCalEd will request the commission to issue an order directing that the authorized revenue requirement changes be effective Jan. 1, 2021.

SoCalEd recently updated its requested return on equity to 11.45% for 2020, as a result of the impact of the state's wildfire bill on its wildfire cost recovery risk. Based on the capital structure and the updated ROE request, the utility's proposed weighted average rate of return on rate base is 8.28% for 2020. (California PUC Docket No. U 338-E)