Edison Rate Hikes: Wrong Time, Wrong Reasons
Wrong Time
Despite the tough economic times facing southern California, SoCal Edison wants more of your money. Edison’s response to high unemployment, an epidemic of foreclosures, and cutbacks of social service programs is to demand $3.6 billion in new rate hikes, a monthly hit of $5 on the average Edison customer’s bill
Edison many not understand the financial predicament many of its customers are in because the California Public Utilities Commission (CPUC) has allowed the company to live high on the hog by authorizing returns on investment unheard of in private industry and bloated executive salaries and bonuses.
Wrong Reasons
Edison’s proposed rate hikes are not just for safety and reliability. Higher administrative expenses, bloated executive pay packages and ridiculously expensive internet toys are some of the reasons Edison claims it needs more of your money.
Struggling customers will face substantially higher electric bills so that Edison can:
• Spend $1.2 million on creating an “online virtual world” for its employees, including online avatars for 3000 employees.
• Spend $1 billion on software in the next five years.
• Spend $11 million to create visual (CAD) images of all their buildings and facilities for their facilities managers.
• Spend $30,000 per each of the 3600 people living on Catalina Island on dirty diesel power plants
• Spend $575 million for administrative costs in 2012, about double the $288 million spent on administrative costs in 2002.
• Spend over $26 million just for executive bonuses and stock shares.
• Spend $70 million on plug-in electric vehicle infrastructure that will not be used by the majority of customers.
The CPUC will hold public hearings throughout southern California in June, and is expected to rule on the matter in March 2012.
