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Home My WebLink About40- City Administrator CITY OF SAN BERN RDINO REQUEST VNR COUNCIL ACTION From! Fred Wilson Subject: opposition to PUC application Assistant City Administrator by Southern California Edison Co. Dept: Date: March 23 , 1993 Synopsis of Previous Council action: 3/14/93 - Ways and Means Committee recommend Mayor send letter to the Public Utilities Commission opposing rate increase by Edison Co. 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 Commission. or That no action be taken at this time. Signature Contact person: Fred Wilson Phone: 5122 Supporting data attached: yes Ward: FUNDING REQUIREMENTS: Amount: Source: Acct. No. (Acct Description) Finance: Council Notes: Agenda Item No 75-0262 CITY OF SAN BERK RDINO - REQUEST t )R COUNCIL ACTION STAFF REPORT At their March 17, 1993 meeting, the Ways and Means Committee reviewed the application by Southern California Edison for a rate increase. The Committee did not make a recommendation relative to either opposing nor supporting this application but instead referred the issue to the Mayor and Common Council for a recommendation. Edison is attempting to recover costs connected with their existing nuclear investment in the San Onofre Nuclear Generating Station Units 2 and 3 and Palo Verde Units 1, 2 and 3 as noted in the attached information provided by the Edison Company. The attached letter has been prepared in the event that the Mayor and Common Council makes a determination to oppose the rate increase application. 75-0264 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA In the Matter of the Application ) of SOUTHERN CALIFORNIA EDISON ) COMPANY (U 338-E) for Authority ) to Adjust Recovery of Nuclear ) Application No . 93-02-010 Plant Investment by an Additional ) (Filed February 2 , 1993 ) Capital Recovery Amount and ) Related Substantive and ) Procedural Relief ) IMPORTANT INFORMATION ABOUT PROPOSED RATE INCREASE Southern California Edison Company recently filed an application with the California Public Utilities Commission (Commission) requesting an increase of $94 .542 million beginning in July 1993 . We are requesting this near-term increase to adjust recovery of our existing nuclear investment in San Onofre Nuclear Generating Station Units 2 and 3 and Palo Verde Units 1, 2 and 3 . This initiative will eventually help to improve California ' s future competitiveness by reducing future costs and electric rate.s . HOW OUR REQUEST MAY AFFECT CUSTOMER RATES We requested that the revenue allocation among our customer classifications be determined in our Energy Cost Adjustment Clause proceeding, which we will file on May 28, 1993 . If the Commission were to allocate the requested increase on an equal percentage basis, the following approximate revenue changes would occur: s 16 5aU Proposed Revenue Change CUStomer Group (S Millions) 1%) Increase Domestic (Residential) 34 . 3 1 . 3 Lighting - Small and Medium Power 35 . 9 1 . 3 Large Power 21 . 1 1 . 3 Agricultural and Pumping 2 . 8 1 . 3 Street and Area Lighting 0 . 6 Total 94 .5 .1 .3 A residential customer who uses 500 kilowatt-hours per month would see a monthly summer bill of approximately $63 . 54, or 1 .2 percent higher than a current bill of $62 .76. This amount may vary depending on how the Commission allocates the increase among customer groups and how much energy the customer uses . EVIDENTIARY HEARINGS ON OUR REQUEST The Commission will be conducting evidentiary hearings on our request . At these hearings, Edison representatives, interested parties, and the Commission's independent Division of Ratepayer Advocates may present testimony. THE COMMISSION WELCOMES YOUR PARTICIPATION AND COMMENTS If you want advice on how to participate in these . hearings, or wish to make comments to the Commission, please write to: The Public Advisor's Office California Public utilities Commission 107 South Broadway, Room 5109 Los Angeles, CA 90012 Your letter will be sent to the Commissioners and become part of the formal correspondence file for Application No. 93-02-010 . If you have a question or need further information,. please indicate you would like a response; otherwise, no reply will be sent . When writing, please mention Edison ' s Application No. 93-02-010 . If you wish further information from Edison regarding Application No. 93-02-010, please write to: Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Attention: Russell G. Worden Regulatory Affairs Representative A copy of our application may be inspected at the Edison or CPUC offices listed below. EDISON OFFICES 2244 Walnut Grove Avenue 1700 E. Tahquitz Canyon Way Rosemead, CA 91770 Palm Springs, CA 92262 127 Elm Avenue 7951 Redwood Avenue Long Beach, CA 90802 Fontana, CA 92336 100' N. Harbor Boulevard #C-1 2425 S. Blackstone Santa Ana, CA 92703 Tulare, CA 93274 10060 Telegraph Road Pebbly Beach Generating Station Ventura, CA 93004 Avalon, CA 90704 964 E. Badillo Street Covina, CA 91724 A copy of our application may be viewed at the Commission's offices below. State Building State Building 505 Van Ness Avenue 107 South Broadway, Room 5109 San Francisco, CA 94102 Los Angeles, CA 90012 Southern California Edison Company r J V - j 654 WEST 4TH STREET SAN BERNARDINO,CALIFORNIA 92410 ( _ 1 _ TELEPHONE J14 BURN 4 (714)920-5585 AREA MANAGER March 23 , 1993 Councilwoman Esther Estrada, Chairman Councilman Ralph Hernandez Councilman Tom Minor Ways and Means Committee City of San Bernardino 300 North "D" Street San Bernardino, CA 92418-0001 Subject: Agenda Item #3 of the Ways and Means Committee Meeting, March 17, 1993 Dear Committee Members: Southern California Edison Company has requested authority from the California Public Utilities Commission (CPUC) to adjust the recovery of its investment in the San Onofre Nuclear Generating Stations Units #2 and #3 and the Palo Verde Units #1, #2 and #3 . Rate recovery for these facilities was approved several years ago. This application requests authority to recover these costs over a shorter period of time. We believe this accelerated cost recovery is needed because we may lose some of our largest customers as the utility industry becomes less regulated. If large customers leave our system before the cost of the nuclear units is fully recovered, the remaining customers will have to pay a larger share of these costs. The relatively low increase in rates to recover these costs more quickly is less than the potential increase if larger customers leave the system and do not pay their share of the cost of the nuclear units. Currently, Edison's rates include the "mortgage" payments on these facilities with the scheduled straight line depreciation ending 2027 . A 1. 3% increase in rates now (approximately $0.90 a month for an average Edison residential customer) applied towards investment recovery, would save Edison ratepayers over $3 billion in interest. It is projected that rates would begin to decrease beginning in 2003 as the nuclear facilities are paid off. Ways and Means Committee -2- March 23 , 1993 Since our meeting on the 17th, I have conveyed the City's concerns to Edison's Revenue Requirements personnel. They informed me that a dialogue has begun between Edison and the CPUC staff to search for ways to mitigate the rate impact of this proposal on Edison customers. The City of San Bernardino's support of the dialogue between Edison and CPUC staff in seeking ratepayer benefits while recovering the cost of the nuclear units, would be helpful and welcomed. Please feel free to contact me, should you have any questions. Sincerely, ,, r,-i, Jim Burns Burns JEB:ts cc: Fred Wilson NARp�ti n O C I T Y O F O �o > 5an bernardino nEn ►N �e O F F I C E O F T H E M A Y O R W R B 0 B H 0 L C 0 M B M A Y O R March 23, 1993 Office of the Public Advisor California Public Utilities Commission 107 South Broadway, Room 5109 Los Angeles, California 90012 Re: Application #93-02-010 Dear Sir or Madam: This letter represents the City of San Bernardino's opposition to Southern California Edison's application for approval of a rate increase to recover costs of their existing nuclear investment in the San Onofre Nuclear Generating Station Units 2 and 3 and Palo Verde Units 1, 2 and 3. The City feels that Edison is not acting prudently in proposing a rate increase to offset these costs. It is our opinion that these costs should be borne by the utility company shareholders and not the ratepayers. It is not clear why the City ratepayers must pay, through increased rates, for the Edison Company's desire to recover their investment in the San Onofre Nuclear Generating Station. 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. 93-02-010. Sincerely, W. R. 11 Bob" Holcomb, Mayor PRIDE IN PROW,' 3 0 0 N O R T H ' 0 ' S T R E E T , S A N 8 E R N A R D I N 0 C A L I F O R N I A 9 2 4 / 8 - 0 0 0 1 7 1'4 / 3 1 4 . 1 1 3 3 A�S._ iw