What is SCE’s General Rate Case?
The GRC makes up about half of customer rates. Another one-third comes from the cost of energy sources for power, which are passed through to customers without markup or profit for SCE. The remaining costs incurred are from a variety of other factors, such as large transmission projects regulated by the Federal Energy Regulatory Commission and programs for energy efficiency and low-income customer assistance.
Although it used to be every three years, the CPUC now sets rates every four years in a public process, which includes public participation hearings held throughout SCE’s 50,000-square-mile service area. SCE files thousands of pages of documents to detail why the funding is needed and respond to requests from the commission’s public interest arm, the Public Advocates Office, and other public interest groups. Note, SCE will file its first four-year GRC application in 2023. This application will concern rates for 2025-2028.
On August 30, 2019, SCE filed a request to cover the costs from 2021 through 2023. Subsequently, as part of the move to a four-year cycle for setting rates, the Commission added costs for 2024 to the scope of SCE’s application.
The primary reasons for the requested revenue increases are:
- Reducing the risk from wildfires to keep the electric grid safe for the public and for SCE workers;
- Reinforcing grid reliability and grid resiliency in case of an emergency; and
- Improving customer service and communication, integrating distributed energy resources, and offering customers more choices to meet their needs.
You can find a full list of funding purposes in our General Rate Case Fact Sheet.