As Southern California’s Edison faces scrutiny about the role that the equipment played in causing the fatal Eaton fire, the utility giant is facing several pushbacks from rate payers over plans to seek another increase in power bills.
The California Public Utilities Commission is expected to make a decision this summer on Edison’s request to pay for wildfire mitigation and raise the fees by 10% to cover “reasonable costs of operations, facilities (and infrastructure).
If approved, rate hikes mean that monthly electricity bills for Edison’s 15 million customers will increase by $18.
Edison filed a fee request prior to the fire, but timing with some Edison customers didn’t go well, especially in the case of survivors of the Eton fire that destroyed the Altadena belt in a string of historic Southern California wildfires in January.
Eton Fire was killed at least and burned over 14,000 acres. The cause of the flames has not been determined, but the company acknowledges that it may have been caused by a misoperation run by Edison.
“There’s definitely a lot of res and rage,” said Rossana Barbade, an Eton Fire Survivor, who lived 300 yards from the Edison Transmission Tower, where the fire could have begun. “I think Edison has so many nerves to seek more money when he doesn’t even have to blame.”
Consumer advocates claim that Edison’s clients have already paid enough bills.
“All fee increases have a big impact on consumers as you pay more for things you didn’t pay much before,” said Lee Trotman, spokesman for the Utility Reform Network. “Edison is going to ask the moon and we say, ‘No, I’ll dial it back.’ ”
Already this year, the CPUC voted to allow Edison to cover the $1.6 billion payments he made to the victims of the devastating 2017 Thomas Wildfire. Investigators discovered that the utility’s equipment caused one of the biggest flames in California history, the flame.
Edison’s residential customers pay on average over $300 a year to support wildfire-related costs. The average electricity bill for Edison customers rose to $176 per month.
Edison’s request, originally known as a general rate case filed in 2023, will affect electricity costs until 2028. After the initial 10% increase, the fees rise by 3% each year, equivalent to about $6 per month bill each year.
Eisenhauer said the utility plans to spend around $1.4 billion a year on wildfire mitigation.
Edison forecasts an increase in demand of 5.6 gigawatts over the next decade, and is equivalent to adding Idaho or Maine sizes to existing electric grids.
According to Eisenhauer, the utility will need the funds to prepare for its expansion, add ongoing safety improvements, prevent cyberattacks and move towards a cleaner energy supply.
“We recognize that any rate increase can be difficult for our customers,” Eisenhauer said. “Keeping our customer invoices manageable is our number one priority, and that’s why we’re constantly evaluating ways to reduce costs.”
Some have executives in light of the company’s role in multiple fires, according to The Times. Despite safety efforts, utility equipment caused 178 wildfires in 2024, rising from the previous year’s 90th, the Times reported.
Even before the wildfires, Edison customers were expressing their dissatisfaction with the prospect of paying a higher fee.
“Deny SCE’s request to raise prices again,” wrote Carol S of San Bernardino County on the CPUC Public Comments Forum. “SCEs need to prove that they can be financially responsible, rather than mowing their belts and throwing away their money,” she wrote, denying to share their last name publicly.
“No one should make huge profits from the utility that everyone needs,” wrote Sharon K of Fullerton. “Do you need more money to do the job? Stop paying CEOs millions with pay and perks,” she wrote.
In a revenue call last month, the CEO of Edison’s parent company said he was optimistic about receiving a proposed decision on a rate hike from the CPUC within 2025. The final decision could come soon in 30 days, he said.
“The general rate case supports SCE’s commitment to providing electrical services that are reliable, resilient and meet the needs of our customers,” Edison International CEO Pedro Pizzaro said over the phone.
Pizzaro also admitted that Edison was called likely to suffer financial losses as a result of his potential role in the Eton fire. Investigations into the cause of the fire are ongoing and have not concluded that Edison’s equipment caused the flames, Pizzaro said, but investigators have not identified other possible sources of ignition.
“There is no additional evidence” and “In light of pending lawsuits, Edison International and Edison in Southern California could suffer significant losses in connection with the Eaton Fire,” he said.
Early estimates showed the cost of damage from the Eton fire to $10 billion, but experts said the number would increase. The total estimated economic loss caused by people has risen
If Edison is determined to be liable to launch the Eton fire, the utility will be financially protected by a California lawmaker created in 2019 to protect the utility from bankruptcy.
The Wildfire Fund was established after Pacific Gas & Electric caused a fatal camp fire in 2018 and subsequently filed for bankruptcy.
According to Maria Rigatti, Chief Financial Officer of Edison International, the maximum value a company could pay is $4 billion.
Edison International was valued at about $30 billion before the wildfires in January, but later lost about a third of its value.
The company’s shares closed at $56.94 on Wednesday, down 29% so far this year.
Times staff writer Melody Petersen contributed to this report.
