Edison to raise prices

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MORERose Parade grand marshal Rita Moreno talks New Year’s Day outfit and ‘West Side Story’ remake 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! ROSEMEAD – Southern California Edison will raise its electricity rates 15 percent next year, largely because of a hike in natural gas prices, company officials said Monday.“It’s basically a pass- through on our customers,” said Akbar Jazayeri, director of revenue and tariffs of the Rosemead-based utility company. “We don’t make any profit off it.”The first rate hike of 6 percent kicks in Jan. 1, followed by another 6-percent increase in February.In November, rates will rise an additional 3 percent. That hike is not related to the price of natural gas.Natural gas is responsible for about 45 percent of the electricity generated by SCE. Electricity generated from natural gas makes up about 55 percent of SCE’s output.Other fuel sources for creating SCE electricity are nuclear (20 percent); renewable sources like wind and solar (19 percent); coal (13percent); and large hydroelectric (3 percent).Tier one and tier two residential electricity users – those who use the least electricity in their homes – will not see an increase in their bills, said Paul Kline, an Edison spokesman.However, it’s easy to become a tier three or tier four user.“We would feel it,” said Covina resident Jake Vic. “Because of the fact that we run the air conditioning and heating all the time.”Residential users should check their electricity bills to see which tier they fall into, Kline said.The price hikes also will have an effect on businesses, Kline said.But compared with the steep rise in gasoline and natural gas costs, the rise in electricity prices might not hurt too badly, said Don Sachs, executive director of the Industry Manufacturers Council.“I don’t think it’s going to be a major issue,” Sachs said. “It’s not going to be as bad compared to the blackouts.”The 15 percent rise in prices is smaller than price hikes consumers and businesses have seen this year for gasoline, natural gas and heating oil, according to SCE.SCE has a diverse portfolio of electricity generation, which has cut down on costs for consumers. The utility company also has a “hedging” program that secures long-term natural gas contracts. According to SCE, these programs will save consumers hundreds of millions of dollars next year. [email protected](626) 962-8811, Ext. 2717last_img read more

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