SCE Sued for $77 Million Over Wildfires—What It Means for SoCal Customers

Southern California Edison (SCE) customers are bracing for a jump in electricity costs after state regulators signaled approval of the utility’s 2025-2028 General Rate Case, the blueprint that determines how much revenue the company can collect through monthly bills. A proposed decision released by the California Public Utilities Commission (CPUC) authorizes SCE to recover $9.756 billion in 2025—13.7 percent more than last year—triggering an average residential bill increase of about 9.7 percent, or roughly $17 a month for non-discount customers starting as early as October 1, 2025. Why the rate hike? • Wildfire hardening: Nearly $2.2 billion will fund undergrounding high-risk power lines and installing covered conductors to reduce ignition threats. • Aging infrastructure: Money is set aside to replace poles, transformers, and substation equipment that have exceeded their life span. • Grid modernization: Investments include cybersecurity upgrades, advanced meters, and capacity expansions to handle surging demand from electric vehicles and heat-pump adoption. • Vegetation management: Over $600 million is earmarked to trim trees and clear brush that can spark fires when they contact energized lines. What it means for your bill Using the CPUC’s benchmark of 500 kWh per month, the typical non-CARE residential customer would see bills climb from $171 to about $188. Low-income CARE customers would see bills move from roughly $108 to $119. Because the commission’s vote comes nine months into the calendar year, SCE must also recover revenue it has not yet collected for 2025; that “catch-up” charge will be spread over 24 months, adding further upward pressure. How to blunt the impact • Enroll in CARE or FERA: Income-qualified households can save 18-35 percent on electric charges. • Shift usage to off-peak: Time-of-Use plans lower rates after 8 p.m. and on weekends. • Tap rebates: SCE offers incentives for smart thermostats, heat-pump water heaters, and rooftop solar that can cut consumption. • Check the California Climate Credit: A semi-annual bill credit, funded by carbon-pollution fees, will offset part of the increase in spring and fall. The road ahead Stakeholders have until late August to file comments before the CPUC’s final vote, but major changes are unlikely. Once approved, the decision will also allow annual adjustments tied to inflation—capped at 5 percent—through 2028. That means additional, albeit smaller, bumps could arrive each January. Bottom line If you’re an SCE customer, budget now for a larger electric bill beginning this fall. While the higher rates aim to make the grid safer and cleaner, households that adopt efficiency upgrades and income-based discounts can soften the blow and keep monthly costs in check.