California Public Utilities Commission proposes reduced rate hike for Southern California Edison

Alice Busching Reynolds
Alice Busching Reynolds
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The California Public Utilities Commission (CPUC) has issued a Proposed Decision regarding Southern California Edison’s (SCE) General Rate Case, which will determine the revenue SCE can collect from customers between 2025 and 2028.

According to the CPUC, the Proposed Decision reduces SCE’s initial request by $727 million. The decision aims to balance affordability for ratepayers with continued investments in safety and reliability. “The Proposed Decision reduces SCE’s request by $727 million, prioritizing affordability while ensuring safety and reliability,” according to the CPUC.

The proposed revenue requirement for 2025 is set at $9.756 billion, which is $727 million less than what SCE requested but still represents a 13.68% increase over the previous year’s authorized amount of $8.582 billion. Over four years, total revenues approved would be $41.58 billion—10% less than SCE’s original request of $46.17 billion.

For residential customers using an average of 500 kWh per month, those enrolled in the California Alternate Rates for Energy (CARE) program could see their monthly bills rise by about $10.51 (a 9.7% increase), while non-CARE customers may see an increase of approximately $16.66 per month (also a 9.7% increase). These figures are lower than what SCE had initially proposed.

Because the vote on this proposal will occur after January 1, 2025, there will be a need to recover any difference between what has been collected since that date and what is ultimately approved; this adjustment will be spread over two years starting as early as October 1, 2025.

The Proposed Decision supports significant investments in wildfire risk reduction measures such as undergrounding power lines in high-risk areas and upgrading aging infrastructure to improve long-term reliability and safety across SCE’s service territory. Specifically, it authorizes a four-year budget of $2.213 billion for targeted undergrounding and installation of covered conductor—less than half of what SCE requested for these projects—but allows more miles of covered conductor installation compared to undergrounding.

Additional funding includes over $607 million for vegetation management activities aimed at reducing ignition risks near electrical facilities through phased adoption of remote sensing technology for inspections.

Investments are also planned for grid modernization projects supporting increased electricity demand due to economic growth and state decarbonization goals—including upgrades identified by transportation electrification forecasts—as well as cybersecurity improvements and pilot programs in new grid technologies.

The process leading up to this decision included public forums held both remotely and in person during March and April 2024, followed by evidentiary hearings involving multiple intervenors who submitted exhibits and cross-examined witnesses.

Stakeholders have until August 18, 2025 to submit comments on the Proposed Decision; reply comments are due August 25 ahead of oral arguments scheduled for August 11. The CPUC expects to vote on final approval at its meeting on August 28, 2025.



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