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Home My WebLink AboutSCE - Kathy De Rosa - California Public Utilities CommissionSOUTHERN CALIFORNIA EDISON® Robert B. Keeler Senior Attorney Robert.Keeler@SCE.com An EDISON 1NTERNAT!ONALe Company May 19, 2004 Re: Southern California Edison Company Rate Application; A.04-04-005 To Whom It May Concern: On April 1, 2004, Southern California Edison Company filed an application for a rate increase with the California Public Utilities Commission. The substance of the application is described in the enclosed notice that was included as a bill insert to Edison's customers. If you wish to comment on, or obtain additional information concerning this matter, or wish a copy of the application and attachments, please write either to the Commission Public Advisor or to the Edison Consumer Affairs Department no later than June 15, 2004 at the address in the enclosed notice. RBK smb: LW 041030007.doc Enclosure(s) P.O. Box 800 Robert B. Keeler Senior Attorney COPY TQ DATE --� IV 0r:; .- rt A rt7 _ c/) C.,) > VD f? 2244 Walnut Grove Ave. Rosemead, California 91770 (626) 302-4563 Fax (626) 302-1935 THE CPUC WELCOMES YOUR PARTICIPATION AND COMMENTS The CPUC will issue its decision after evidentiary hearings on SCE's request. At the hearings, SCE representatives, interested parties, and the CPUC's staff will present testimony. The CPUC staff, engineers, accountants, economists, attorneys and other professionals independently evaluate utility rate increase proposals and present their analyses and recommendations to the CPUC at evidentiary hearings. The rates approved may differ from those SCE requests. If you need advice on how to participate or wish to make comments to the CPUC, please write to: The Public Advisor California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 Public.advisoda@cDuc.ca.gov Please state in your letter that you would like a response; otherwise, no reply will be sent. The Public Advisor will give your letter to the Commissioners and it will become part of the formal file. Please mention Application No. 04-04-005. If you have questions or need further information about this matter, or a copy of the application and attachments, please write to: Southern California Edison Consumer Affairs P.O. Box 800, Quad 1-D 2244 Walnut Grove Avenue Rosemead. CA 91770 Para solicitar una copia de esta notificacidn en espanoi por favor escriba a Southern Califomia Edison Corporate Communications 2244 Walnut Grove Avenue, Quad 4A Rosemead, CA 91770 o por medio de correo electrOnico a Jo.Piantedosi@sce.com BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Southern California Edison ) Company (U 338-E) for Authorized Capital ) Structure, Rate of Return on Common Equity, Embedded Cost of Debt and Preferred Stock, and Overall Rate of ) Return for Utility Operations for 2005. ) NOTICE A.04-05-021 On May 10, 2004, Southern California Edison Company (SCE) filed Application 04-05-021 with the California Public Utilities Commission requesting an authorized cost of capital for 2005. SCE's request, if approved by the Commission would result in a $28.2 million, or 0.3 percent decrease to SCE's authorized revenues. The authorized cost of capital determines how much money SCE is allowed in rates as a return on its invested capital. In this proceeding the Commission will determine what is a reasonable capital structure and costs of long- term debt, common equity, and preferred stock for SCE. SCE's request is shown in the following table. Percentage of Component Capital Long -Term Debt 43.00% Preferred Stock 9.0% Common Equity 4g.00% Total 100.00% Cost 6.97% 7.01% 11.60% Weighted Cost 3.00% 0.63% 5.57% 9.20% SCE's requested cost of capital will fairly compensate those who invest in SCE and permit SCE to attract capital to meet its obligations to serve its customers. It will also allow SCE to mitigate the financial effects in 2005 of power purchase contracts. SCE is proposing that revenue change resulting from this application be consolidated with revenue changes from other SCE applications. If the Commission -1- were to allocate the revenue change SCE is proposing in this application on a system average percent basis, the impact by customer group would be as shown below. Revenue Change Customer Group ($ Million) % Change Domestic (Residential) (8.7) -0.27% Lighting - Small and Medium Power (11.9) -0.36% Large Power (6.6) -0.41% Agriculture and Pumping (0.9) -0.35% Street and Area Lighting (0.1) -0.17% TOTAL (28.2) -0.30% If the Commission were to change SCE's rates as shown above, an average residential electric customer using 550 kilowatt-hours per mont in the summer would see a decrease of $0.20 per month, from $67.90 to $67.70. The Commission may schedule evidentiary hearings on SCE's request, during which SCE representatives, interested parties, and the Commission's staff may present testimony. The Commission staff, engineers, accountants, economists, attorneys and other professionals independently evaluate utility rate increase proposals and present their analyses and recommendations to the Commission at evidentiary hearings. The rates approved by the Commission may differ from those SCE requests If you need advice on how to participate or wish to make comments to the Commission, please write to: The Public Advisor California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 public.advisor.la@cpuc.ca.gov Please state in your letter if you would like a response; otherwise, no reply will be sent. The Public Advisor will give your letter to the Commissioners and it -2- will become part of the formal file. Please mention Application No. 04-05-021 in your correspondence. If you have questions or need further information about this matter, or a copy of the application and attachments, please write to: Southern California Edison Company P.O. Box 800 2244 Walnut Grove Avenue Rosemead, CA 91770 Attention: Mark R. Bliss A copy of the application will be mailed upon request. -3-