SCE’s Negligence Is Costing Californians Billions

Feb 2, 2025 | SCE Rate Hikes

Southern California Edison (SCE), one of California’s major utility providers, has come under intense scrutiny following the devastating Eaton Fire. This tragedy resulted in at least 17 fatalities and the destruction of over 9,000 structures. Investigations have revealed that SCE reported a momentary increase in current on its transmission lines in the Eaton Canyon corridor on January 7, 2025. Although the company stated that this surge was within design limits and did not trigger system protections, new video evidence shows electrical arcing on a transmission tower before the fire intensified. This has led to multiple lawsuits alleging that SCE’s equipment was the ignition source of the fire.

This incident is not isolated. Over the past decade, California has experienced increasingly severe wildfires, with the total estimated costs nearly tripling to $150 billion as blazes continue to rage on. Factors such as climate change have extended the state’s fire season, making wildfires a nearly year-round threat. However, human activities, particularly those involving utility equipment, remain significant contributors. A 2022 audit revealed that utilities, including SCE, were not doing enough to prevent fires, highlighting a pattern of neglect and inadequate maintenance.

The financial implications for SCE customers are alarming. In 2022, SCE increased its rates by 17%, resulting in most customers paying an additional $85 on their electricity bills. Further increases were effective January 1, 2024, with the average residential electric bill rising from $143.33 to $175.39—a 7.21% increase. Residential California Alternate Rates for Energy (CARE) customers also faced an increase of 7.84% in their electricity bills.

Looking ahead, SCE has proposed additional rate hikes: approximately $17.49 (10.3%) in 2025, $5.14 (2.7%) in 2026, $5.11 (2.6%) in 2027, and $5.26 (2.7%) in 2028. SCE has also proposed further increases in the coming years:

• 2025: +10.3% ($17.49/month), CARE customers: +10.3% ($11.83/month)

• 2026: +2.7% ($5.14/month), CARE customers: +2.7% ($3.48/month)

• 2027: +2.6% ($5.11/month), CARE customers: +2.6% ($3.45/month)

• 2028: +2.7% ($5.26/month), CARE customers: +2.7% ($3.56/month)

These escalating costs are deeply concerning, especially when considering the potential liabilities from ongoing and future lawsuits. The financial burden of settlements and legal fees is likely to be passed onto consumers, further inflating their utility bills. Over the past decade, SCE customers have already shouldered significant costs due to wildfire-related damages and the company’s legal challenges.

The pattern is clear: SCE’s alleged negligence in maintaining its equipment and infrastructure has not only contributed to devastating wildfires but has also led to substantial financial burdens for its customers. As the company faces mounting legal challenges and the need for extensive infrastructure improvements, customers are left questioning how much more they will have to pay to compensate for SCE’s past and ongoing failures.

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