Sign in Subscribe
Public utilities

Southern California Edison Company Seeks Approval for 2026 Energy Resource Recovery Account Forecast Proceeding

Strategic Insights

— 2 min read

Southern California Edison Company (SCE) has submitted an application to the California Public Utilities Commission (CPUC) for approval of its 2026 Energy Resource Recovery Account (ERRA) Forecast proceeding revenue requirement. The proposed ERRA Forecast revenue for 2026 is $4.385 billion, a decrease of $75.555 million compared to SCE's 2025 ERRA Forecast revenue.

The application, filed on May 15, 2025, seeks to adjust SCE's electric rates downward by approximately $0.87 or 0.5% per month for the average residential customer using 500 kWh per month in 2026. The proposed rate decrease is attributed to projected lower fuel and power costs in 2026. The application also requests approval of other expenses recoverable in ERRA Forecast proceedings, such as expenses related to spent nuclear fuel and SCE's return of $528.071 million in Greenhouse Gas (GHG) allowance revenues to eligible customers in 2026.

The CPUC will review the application and consider proposals and evidence presented during the formal hearing process. The Public Advocates Office, an independent consumer advocate within the CPUC, will represent customers to ensure they obtain the lowest possible rate for service consistent with reliable and safe service levels.

Key Takeaways:

  • SCE has submitted an application to the CPUC for approval of its 2026 ERRA Forecast proceeding revenue requirement.
  • The proposed ERRA Forecast revenue for 2026 is $4.385 billion, a decrease of $75.555 million compared to SCE's 2025 ERRA Forecast revenue.
  • The application seeks to adjust SCE's electric rates downward by approximately $0.87 or 0.5% per month for the average residential customer using 500 kWh per month in 2026.
  • The proposed rate decrease is attributed to projected lower fuel and power costs in 2026.
  • SCE also requests approval of other expenses recoverable in ERRA Forecast proceedings, such as expenses related to spent nuclear fuel and SCE's return of $528.071 million in Greenhouse Gas (GHG) allowance revenues to eligible customers in 2026.

Statistics:

  • Proposed ERRA Forecast revenue for 2026: $4.385 billion
  • Decrease in ERRA Forecast revenue for 2026 compared to 2025: $75.555 million
  • Approximate decrease in electric rates for the average residential customer using 500 kWh per month in 2026: $0.87 or 0.5% per month
  • Estimated decrease in fuel and power costs in 2026: Projected to be lower than 2025
  • Proposed return of Greenhouse Gas (GHG) allowance revenues to eligible customers in 2026: $528.071 million

Sources:

  • Southern California Edison Company (U 338-E) for Approval of its 2026 ERRA Forecast Proceeding Revenue Requirement A.25-05-008
  • Certificate of Service dated May 20, 2025, for the Notice of Application of Southern California Edison Company (U 338-E) for Approval of its 2026 ERRA Forecast Proceeding Revenue Requirement (A.25-05-008)

Read more