By Staff Reports
(Victor Valley)– Starting on January 1, 2017, customers on our Standard Residential Rate Plan will see the number of tiers reduced from 3 to 2 and the introduction of a High Usage Charge. Reducing the number of tiers will help to stabilize bills for many customers throughout the year. These changes were adopted by the California Public Utilities Commission (CPUC) as part of a strategy to simplify electric rates, encourage conservation, and bring rates more in line with the actual cost to serve. Unrelated, but impacting customers at the same time, SCE’s costs for purchasing power on behalf of customers have increased.
The High Usage Charge will apply to a small number of customers who use significantly more electricity than other residential customers in their geographic area. The High Usage Charge will be added to usage above 400% of baseline usage. Baseline allocation is determined by the CPUC and is assigned based on climate zones. Customers can avoid the High Usage Charge by conserving electricity. We have many tools to help them: on.sce.com/ratechange. Our Customer Service Department is reaching out to customers who we anticipate will or could be subject to the High Usage Charge based on their historical usage. More information on the High Usage Charge is available on our website: on.sce.com/highuse.
There will be an increase of just under 4% for residential customers and varying increases for commercial customers depending on rate class. However, when combined with rate reductions earlier in 2016, SCE’s average rates are still below 2015 levels. This rate increase is primarily due to an increase in the price of natural gas and is not related to the changes being made to the Standard Residential Rate Plan.