Southern California Edison Files with FERC to Increase Return on Equity

By Michael Dabaie

Edison International's (EIX) Southern California Edison Thursday filed a request with the Federal Energy Regulatory Commission to include an adjustment for the company's wildfire risk in the authorized return on equity for the portion of its business regulated by FERC.

SCE cited "dramatic, material changes" to its regulatory and financial conditions. The extraordinary risk stems from uncertainty about state policies for cost recovery and liability resulting from California wildfires in recent years, the company said.

The company's overall request is for a ROE of 17.12%.

The company estimated the average residential customer would see an increase of about $2.20 per month on the FERC-regulated portion of their SCE bill if the request is approved.

FERC has jurisdiction over SCE transmission equipment that is under the operational control of the California Independent System Operator and must authorize all rates related to the use of these assets, which comprise about 20% of the company's rate base.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

April 11, 2019 09:46 ET (13:46 GMT)

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