Yes, you read that correctly. Beginning October 1, 2021, SCE is raising residential rates by 9%. For reference, that’s an increase of about $12.41 per month on average, which will skew much higher for electric ratepayers in the Coachella Valley during our notoriously hot summers.
Why Are My Electricity Rates Going Up Again?
Simply put, SCE’s costs are skyrocketing every year — the price of fossil fuels keeps rising, power lines and other infrastructure need to be replaced more often, and many utility companies in California have been found liable for causing wildfire damage.
This decision was approved in August 2021 by the California Public Utilities Commission, where Southern California Edison originally asked for a budget increase of $1.1 billion dollars in an effort to help pay to keep the utility’s electrical system from sparking wildfires in its service areas. Legal fees are still being paid for previous years’ wildfire damages as well. However, the CPUC only permitted just under half the requested budget to SCE, totaling $454 million instead. Ratepayers in SCE will see this revenue increase reflected on their monthly bills.
SCE’s approved rate increase also covers a variety of improvements to their existing grid, including:
- Distribution and transmission upgrades
- Energy storage
- Replacement of electric poles
- Another category designated by SCE is “grid modernization.”
Will Solar Still Help Bring My Costs Down?
In the Coachella Valley, switching to solar energy for your home or business can help you save big! Because solar panels can produce clean power at a much lower cost per kilowatt hour (or kWh), your home solar system can actually supply any excess energy it produces to the utility grid. Your utility company then compensates you for however much power your rooftop solar system pushes onto the grid, which is the basis for the NEM (net energy metering) program in California.
Coachella Valley, It’s Time to Go Solar.
There’s truly never been a better time to install solar on your Coachella Valley home or business, and Renova Energy is Coachella Valley’s leading solar specialist. Reach out to one of our certified energy consultants to learn more about how much solar can save you.
Contact our Coachella Valley solar experts and learn how we can help you save on costly electric bills!