Warning: higher bills ahead
Southern California Edison (SCE) is warning residential and commercial customers that higher rates are coming (again) across the board. That makes no less than three significant rate increases in less than two years, with no sign of slowing down.
Most of us are probably aware that Edison bills most customers in tiers, based on their total usage over the month. Electricity starts out cheap in tier 1, and then gets progressively more expensive as your usage climbs into tiers 2, 3, and 4. What most of us don’t pay as much attention to is the rate at which prices increase over time; 6.7% per year is a rough estimate since about 1970. Recent years have destroyed that model.
In January of 2013, we saw tier graphs on SCE bills indicating a 26% jump in the price per kWh in tier 3 alone, year over year. Then in May, they eliminated the hugely expensive tier 5 (hooray!) while simultaneously increasing the prices in tiers 3 and 4 again (boo!). They also decreased the amount of electricity in tier 1, so that power gets more expensive earlier in the month.
It’s worth noting that the 2013 price increases represented only about 33% of the price increase for which SCE has campaigned.
SCE’s official statement cites grid upgrades and climate legislation among the primary causes of rate inflation. They also acknowledge that, under their current pricing system, those paying for power in tiers 3 and 4 are subsidizing everyone else with disproportionately high prices. We can help.
Find out how you can become energy independent for no money down, with positive cash-flow from year 1. Start here.