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HomeMy WebLinkAbout11-City Administrator 'CITY OF SAN BERNr:tDINO - REQUEST r R COUNCIL ACTION From: Fred Wilson Assistant City Administrator Subject: Opposition to PUC application by Southern California Edison Co. Dept: Date: June 16, 1992 Synopsis of Previous Council action: 6/10/92 -- Ways and Means recommended letter be sent by Mayor opposing rate increase by Edison. Recommended motion: That the attached letter be sent by Mayor Holcomb stating City's opposition to a proposed rate increase by Southern California Edison Company in their application to the Public Utilities COI!ll:lission. :/ilL S.",,"" Contact person: Fred Wil"nn Phone: al22 Supporting data attached: yes Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.1 (Acct. Descriotion) Finance: Council Notes: 75-0262 Agenda Item No. / / . CITY OF SAN BER~"RDINO - REQUEST r -)R COUNCIL ACTION STAFF REPORT At their June 10, 1992 meeting, the Ways and Means Committee recommended a letter be sent by Mayor Holcomb stating the City's opposition to a proposed rate increase by Southern California Edison Company in their application to the Public Utilities Commission. Edison is attempting to recover costs connected with their cleanup of hazardous waste contamination at their facilities in Visalia, California. The Committee felt that Edison is not acting prudently in passing on these costs to the ratepayers. They should be borne by the utility company shareholders or at least by those ratepayers in the geographic area where the clean up occurred. Therefore, the Committee is recommending these concerns be relayed to the Public Utility Commission via a letter signed by the Mayor. 75-0264 ,..,,,. CITy OF San Bernardino OFFICE OF THE MAYOR W R B 0 8 MAYOR HOLCOI'.18 June 1l, 1992 Office of the Public Advisor California Public Utilities Commmission 107 South Broadway, Room 5109 Los Angeles, California 90012 Re: Application No. 92-04-018 Dear Sir: This letter represents the City of San Bernardino's opposition to Southern California Edison's application for approval of a residential rate increase to recover costs connected with their cleanup of hazardous waste contamination at their facilities in Visalia, California. The City feels that Edison is not acting prudently in proposing a rate increase to offset this cost. It is our opinion that these costs should be borne by the utility company shareholders and not the ratepayers. At a minimum, increasing rates in connection with costs incurred in specific geographic areas, in our opinion, should be absorbed by those area ratepayers and not by ratepayers as a whole. For these reasons, as Mayor of the City of San Bernardino, I urge the Commission to vote against approval of Southern California Edison Company's Application No. 92-04-018 Sincerely, W. R. "Bob" Holcomb, Mayor 300 NORTH D STREET SAN BERNARDINO CALIFORNIA 924180001 714/314.5133 PRIDE ~ vss "'~. "- BEFORE THE~OBLIC UTILITIES COMMISSION OF THB STATE OF CALIFORNIA In The Matter Of The Application Of SOUTHERN CALIFORNIA EDISON COMPANY (U 338-El For A Determination Of The Reasonableness Of Edison's Hazardous Waste Management Program Expenses, Authority To Transfer The Hazardous Waste Management Program Expenses Recorded From January 1, 1991. Through December 31. 1991, And Accrued Interest. To The Electric Revenue Adjustment Account. And Authority To Increase The Electric Revenue Adjustment Billing Factor ;-, Application No. 92-04-018 (Filed April 14, 1992) NOTICE OF FILING APPLICATION On April 14, 1992, Southern California Edison Company filed Application No. 92-04-018 with the California Public Utilities Commission ("CPUC") requesting that the CPUC: (1) determine that certain Hazardous Waste Management Program expenses recorded between January 1, 1991 and December 31, 1991 were reasonable; and (2) authorize Edison to recover these expenses through rates. If approved by the CPUC, this would result in a 1993 revenue increase of $3.5 million, or less than 0.1 percent. Edison also filed a Motion to Consolidate this Application with Application No. 91-07-005. That Application requested that similar expenses recorded through December 31, 1990 be declared reasonable. ). ..~ Based on the allocation described above, a residential customer consuming 500 kilowatt-hours per month in the winter months would have a monthly increase of approximately $0.03 from $61.80 to $61.83. This amount may vary depending on how the CPUC allocates the costs among customer classes and how much electricity each Customer uses. The CPOC Weloomes Your partieination and CommAnt. If the Application is consolidated with Application No. 91-07-005, the CPUC will hold formal evidentiary hearings on this application in July 1992. If you wish to express your opinion to the CPUC or want information on how. to participate in the evidentiary hearings, or want to receive notices regarding the date, time, or place of hearings, write to: Office of the Public Advisor California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 Please mention that you are writing about Southern California Edison Company's Application No. 92-04-018. Should you wish further information from Edison regarding the Application, please write to: Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Attention: Manager of Revenue Requirements A copy of Edison's applications may be inspected at the Edison or CPUC offices listed below. -3- operated in Visalia. California. r .... """= ,: ...~..."", .J ~,tAf( Pursuant to a CPUC established procedure, Edison has .~I$;~ recorded in a special account the costs associated with \~~ f-7 cleaning up hazardous waste contamination at facilities we ~ \ ,~<< ~l)\~ ~l"'I,lJ This cleanup work is required by federal and state environmental laws. The application requests that the CPUC review the reasonableness of those cleanup costs and allow us to put them into rates. How The Reouest Miaht Affect Rates Edison is proposing that issues related to rate design and the allocation of this requested revenue increase among customer classes be determined in Test-Year 1993 Edison's Energy Cost Adjustment Clause proceeding. If the CPUC were to allocate the revenue increase associated with this application on approximately the same percentage basis to each customer group, its request would result in the fOllowing changes effective January 1993: Customer Classes Proposed Increase ($ Millions) % Increase Domestic (Residential) Lighting - Small and Medium power TOTAL 1.3 0.0** 1.3 0.0** 0.8 0.0** 0.1 0.0** .Q.....Q* 0.0** 3.5 0.0* Large Power Agricultural and Pumping Street and Area Lighting * Less than $100,000 ..Less than 0.1% -2- ~ , Edison Offices · 2244 Walnut Grove Avenue, Rosemead, CA 91770 · 127 Elm Avenue, Long Beach, CA 90802 · 100 N. Harbor Boulevard, Santa Ana, CA 92703 · 10060 Telegraph Road, Ventura, CA 93004 · 964 E. Badillo Street, Covina, CA 91724 · 1700 E. Tahquitz Canyon Way, Palm Springs, CA 92262 · 7951 Redwood Avenue, Fontana, CA 92336 · 2425 So. Blackstone, Tulare, CA 93274 · Pebbly Beach Generating Station, Avalon, CA 90704 Offices of the California Public Dtilities Commission · State Building, 505 Van Ness Avenue, San Francisco, CA 94102 · State Building, 107 South Broadway, Los Angeles, CA 90b12 . -4-