CCC PPPPP U U CCC N N EEEEE W W W SSS C C P p U U C C NN N E W W W S S C P P U U C N N N E W W W S C PPPPP U U C N N N EEE W W W W SSS C P U U C N N N E WW WW S C C P U U C C N NN E W W S S CCC P UUUU CCC N N EEEEE W W SSS CONTACT: Kyle DeVine April 10, 1996 CPUC - 513 213-897-4225 (A.93-12-025) CPUC SETS EDISON RATES The California Public Utilities Commission (CPUC) today set rates Southern California Edison Company (Edison) will begin to charge customers effective May 1. New residential rates and baseline seasons will be phased in. Rates are set to recover Edison's $7.3 billion revenue requirement, a $338 million or 4.4 percent decrease, set earlier this year. They do not include $237 million, which will be refunded in June, for revenues overcollected for fuel-related costs. Residential Rates About 86 percent of Edison's customers are residential and account for 31 percent of its sales and 38 percent of its revenues. Overall, the revenue decrease for this customer group is 1 percent. Beginning in May, residential customers in climatic region 15 - Palm Springs, Blythe, and Death Valley - who use the area's average of 1,500 kWh in the summer and 600 kWh in the winter, will see an 8 cent per month increase in the winter and a $7.35 decrease per month in the summer relative to current bills. A new basic charge will be incorporated to cover costs such as meter reading and billing which are now collected through the energy usage rate. Although Edison had requested a $5.00 monthly charge, the Commission approved $2.00 a month for single family homes and $1.50 a month for multifamily dwellings such as apartments and mobile home parks. Rates are lower for multifamily dwellings because it costs Edison less to serve them. For example, meter reading costs are less at apartments because meters are at one location. The basic charge will be phased in. Beginning June 1996, it will be $1.00 a month for single family homes and $0.75 a month for multifamily dwellings. It will increase on January 1, 1997, to $2.00 a month for single family homes and $1.50 a month for multifamily dwellings. -more- Residential rates continued Baseline seasons and rates will change. Baseline gives residential customers a baseline allowance at lower rates for basic energy use which supplies 50 to 60 percent of the average residential customer's needs. Usage beyond the baseline allowance is billed at the higher nonbaseline rate. Baseline allowances vary with climatic regions and summer or winter seasons. Baseline seasons will change, beginning October 1996, to an eight month winter season from October through May and a four month summer season from June through September. Currently, summer and winter seasons are both six months long and run from May to October for the summer and October to May for winter, except for region 15 which now has the four month summer and eight month winter seasons. Baseline allowances will no longer be provided for customers' "second homes" in region 15 and the mountainous resort areas - region 16 - beginning October 1, 1997. As a result of these changes, baseline and nonbaseline rates will decrease in May and will change in June and January as the basic charge is phased in. Rates will be as follows: Current June 1996 January 1997 Basic charge single family 0.00 $1.00 $2.00 multifamily 0.00 .75 1.50 Energy charge (cents per kWh) Baseline 12.356 12.009 11.711 Nonbaseline 14.214 14.157 14.154 Customers on the low income CARE program will receive the 15 percent discount on the basic charge and energy rates. Employee discounts will no longer be collected from ratepayers. Today's Commission decision phases them out over three years for current employees' costs, and ten years for retired or about-to-retire employees. Edison may continue providing the 25 percent discount for its employees, but must use other funds to recover the costs. -more- Business Rates Lighting, small and medium power business customers make up 35 percent of Edison's sales and 36 percent of Edison's revenue is collected from them. Rates are changed to align them with what it costs Edison to serve these customers. The GS-1 customer charge will decrease from the current 55 cents a day to 48 cents a day. Energy use rate will decrease from the current 12 cents per kWh to 11.76 cents per kWh. Businesses on the GS-2 rate - small or medium power customers whose demands exceed 20 kW - will see an increase in the customer charge, from the current $54.15 to $60.30. Energy charges will decrease from the current 9 cents for the first 300 kWh to 7.692 cents, and from 5 cents for each kWh after the first 300 to 4.391 cents. The demand charge will increase 35 cents, from the current $7.40 per kW for time related charges to $7.75; it will increase 65 cents per kW for facilities related charges, from the current $4.75 per kW to $5.40. Large power customers, those with demands more than 500 kW, account for 30 percent of Edison's sales and 22 percent of revenue is collected from them. Rates for these customers are also set at the cost to serve them, and overall, are reduced by 5.9 percent. -###-