Southern California Edison (SCE) is one of the state’s three largest investor-owned utility companies that provide electricity to Southern California. A recent study has found that SCE charges 45% more than the national average for that electricity. From residential customers to agricultural and street lighting sectors, SCE customers have already experienced higher electric bills in 2021 with more coming soon. In a public notice, SCE states that the purpose of the rate increase is to cover anticipated costs through the year 2024. The anticipated costs include inspections, repairs, replacements, and general upkeep of their equipment and electricity grid.
How Does This Affect Your Monthly Bill?
Every four years, these investor-owned utilities must file for a General Rate Case (GRC). The California Public Utilities Commission (CPUC) reviews these applications and sets the rates that customers must pay for electricity. In 2020, the proposed rate increase from SCE was approved and the higher rates started this year.
So with all this in mind, how will this rate increase affect your monthly bill? For residential customers, monthly bills have increased by an average of $14 in 2021. In 2022, they will keep increasing by $4, and $6 in 2023. If you’re enrolled in the California Alternative Rates for Energy (CARE) program your rate increases are $9.50 in 2021 and going up by $3 in 2022, and $4 in 2023.
In other words, they will continue to rise.
Why Do Rates Keep Going Up?
Amid the COVID-19 pandemic, are these increased rates justifiable? Looking through the public comments at CPUC, you will find thousands of comments from people like you that oppose the rate increase. Still, the rate increases are approved and we have to pay them.
According to SCE, these increases exist to help pay for anticipated costs to inspect, repair, and upgrade equipment. While electrical grid maintenance is important, there is little oversight from the state government for these investor-owned utilities.
Stop High Electric Bills With Solar Power
So what can YOU do to stop these rate increases? The easiest way is by going solar! Solar can be up to 10x cheaper than paying electric bills, and your savings just increase as these utility rates go up. You’re able to drastically reduce or even eliminate your electric bills by investing in a solar PV system for your home in California.
When you are ready to stop utilities from stealing your money, take control with solar power. If you prefer to work with a local business and support your community, talk to Option One Solar. We will provide a free quote and expert advice so you can understand solar energy and start saving.