Calif. Power Regulator Calls for Rate Boost
S A N F R A N C I S C O, March 26 -- California's top power regulator proposed anearly 50 percent increase in electricity rates today for some 10million homes and businesses, hoping to stave off blackouts thissummer by encouraging conservation.
Loretta Lynch, president of the Public Utilities Commission,said the increase would affect customers of Southern CaliforniaEdison and Pacific Gas & Electric, the state's biggest utilities.
Under the proposal — which follows two earlier increases — rates would go up an average of 3 cents per kilowatt hour and then atiered system would apply, charging heavy power users more thanthose who conserve.
'Hogs' Will Pay More
"Electricity hogs will have to pay more for the electricitythey use, especially over the summer," Lynch said.
The proposal could go into effect as early as Tuesday, when thecommission meets. Lynch and two other members of the five-memberPUC were appointed by Gov. Gray Davis, and the proposal is expectedto win approval.
Davis said he is not in favor of rate hikes, but has no powerover the PUC.
"I can't order or direct an independent body," he said. "I'venot given any advice to them on the subject of a rate increase."
The PUC approved a 9 percent to 15 percent rate hike in Januaryand an additional 10 percent increase is scheduled for next year.
The residential rate for electricity averages 7.2 cents perkilowatt hour for SoCal Edison and 6.5 cents for PG&E customers,though other fees raise the rates to 12.5 cents for all Edisoncustomers and 10.5 cents for PG&E. Lynch's proposal would amount toa 42 percent increase for SoCal Edison customers and a 46 percentboost for those of PG&E.
The average SoCal Edison residential bill now is $70 a month andthe average PG&E residential bill is about $60. Spokesmen for bothutilities said it was impossible to predict how much bills might goup because the impact of the proposed tiered system is not yetclear under the proposed rate increases.
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