Report to Mayor and City Council
Tuesday, April 16, 2019
Discussion
SUBJECT:
Title
APRIL 2019 UPDATE ON THE CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA EDISON'S ELECTRICITY RATE INCREASE (CITY COUNCIL)
Body
I. SUMMARY
Staff was directed to provide a presentation (Exhibit No.1) similar to the one made during the April 8, 2019 Special City Council Meeting regarding the recovery of Southern California Edison's (SCE) $825 million dollar undercollection in 2018, and the associated impact on electricity rates in the City of Carson, as well as resident electricity bill complaints and Clean Power Alliance (CPA) customer participation rates.
II. RECOMMENDATION
Recommendation
1. DISCUSS and PROVIDE Direction.
Body
III. ALTERNATIVES
1. TAKE another action the City Council deems appropriate and consistent with the requirements of the law.
IV. BACKGROUND
On January 31, 2019, the CPUC approved SCE's request to recover its costs related to an undercollection of $825 million from its customers. SCE is set to begin including the recovery of its $825 million undercollection starting in April 2019. The City of Carson had approximately 25,000 residential accounts that were automatically opted-in to CPA during the month of February 2019.
The rate change will manifest as an increase to the generation rate for SCE bundled customers and an increase to the Power Cost Indifference Adjustment (PCIA) for Carson's CPA customers because they were SCE customers in 2018 and SCE is entitled to recover the pro rata undercollection from them for a year, even though they are now CPA customers. Implementation of the trigger by SCE will result in a one-year increase to the PCIA. It was necessary, then, for the CPA Board to adjust its rates to maintain its Board-approved bill comparison targets.
Ultimately, the CPA will charge customers less for generation and more for the PCIA, in the amount of the increase owed to SCE, in order to keep the rates level wit...
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