CALIFORNIA – The California Public Utilities Commission (CPUC) approved Southern California Edison’s (SCE) plan to raise customer rates, recouping over $1.6 billion from the 2017 Thomas Fire caused by its equipment.
The commission unanimously approved the rate hike with a 4-0 vote. The recovery amounts to about 60% of the costs recorded by Edison.
According to SCE, the cost is spread over 30 years to minimize the impact on customers, which they say amounts to a $1 increase on monthly bills.
Thomas Fire damaged 1,343 structures
SCE said the 2017 Thomas Fire began on December 4, 2017, resulting from two separate ignitions in Santa Paula. The two separate fires merged within hours and became known as the Thomas Fire.
The fire burned more than 280,000 acres, destroyed or damaged an estimated 1,343 structures, and resulted in two fatalities. Subsequently, debris flow after heavy rainfall caused significant damage and resulted in 23 fatalities.
The settlement document said following the Thomas Fire and Montecito debris flows, more than 5,800 individual claimants, over 300 insurance companies and other groups, and 15 public entities brought claims against SCE.
SCE settled almost all the claims, leaving only a few unresolved. While handling these claims, they also had to pay for legal help and financing expenses.
Edison International’s shareholders will pay about $1 billion and put $50 million toward improving systems to reduce wildfire risks.
SCE had a net income of over a half billion dollars in the third quarter
Several members of the state legislature expressed concern about the rate hike proposal.
“By allowing SCE to raise rates in order for customers to cover these damages, we are failing to hold them accountable, and instead passing their liability onto the residents of the region that bear no responsibility for the disaster,” said Senator Ben Allen.
Allen goes on to say the rate hikes will be done at a time when SCE’s approved shareholder rate of return is already the highest in California.
“…the company boasted a net income for the 2024 third quarter of over a half billion dollars, a 232.9% increase year-over-year,” said Allen.
They finish the letter by asking the commission to create a fairer system to lower costs for customers in the future. They also say they’re ready to help make these changes happen.
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 approved Southern California Edison’s plan to raise customer rates, recouping over $1.6 billion from the 2017 Thomas Fire caused by its equipment.){kind=link}