Southern California Edison shareholders will pay a $7.7 million settlement after the utility improperly requested deposits from customers covered by pandemic-era billing protections, the California Public Utilities Commission found.

The commission approved the agreement, which directs money toward customer payments, energy assistance, and a state penalty, according to KNVN.

Here's what to know

Edison will also direct $3.9 million into its Energy Assistance Fund and pay $700,000 to California's General Fund, according to the CPUC. 

The settlement includes $3.1 million for residential customers charged a service deposit beginning April 1, 2020.

Residential and small businesses were entitled to deposit waivers retroactive to March 4, 2020, under an April 17, 2020, commission directive to investor-owned utilities.

A later decision, adopted on June 11, 2020, also made deposits for establishing service off-limits for those customers.

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More background

Customers nevertheless received deposit requests from June 11, 2020, through February 2021, when the commission's prohibition on deposits for establishing service was in place. 

Edison disclosed those requests on March 10, 2021, according to the CPUC.

For residential and small-business customers who enrolled from April 17, 2020, through April 6, 2021, Edison's system could not block deposit requests. 

The utility attributed that failure to problems with system updates when it reported the issue to the commission.

"Today's outcome resolves serious compliance issues by SCE with regards to customer protections put in place during the COVID-19 emergency," CPUC President John Reynolds said. 

"When utilities engage in violations of CPUC policy, especially when it involves unlawful billing, we work hard to ensure that restitution reaches victims. That restitution amounts to more than $7.7 million of penalties in this case, and it will be paid for by SCE shareholders," he added. "This would not have been possible without the work of our Consumer Protection and Enforcement Division, and I applaud their work in reaching a fair and reasonable settlement."

What's being done?

A permanent fix took effect on Aug. 30, 2021, replacing the manual stopgaps Edison had been using, according to the CPUC.

The agreement, formally called an Administrative Consent Order, is one of the tools included in the CPUC's Enforcement Policy. 

Established in 2020, the policy aims to streamline enforcement actions and align the commission's approach with that of other state and local enforcement agencies.

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Commissioner Christine Harada emphasized the settlement's importance for households contending with high energy bills.

"Every dollar matters to families struggling to keep the lights on," Harada said. "This agreement holds SCE accountable and delivers financial relief, with shareholders bearing the cost. Public trust depends on turning our promises into protections people can count on."

Where can I learn more?

Edison's settlement is part of a wider debate over utility costs and customer protections in California.

• Edison customers could pay hundreds of millions more after California wildfire legislation stalled.

• California launched its first utility-rate overhaul in 19 years amid affordability concerns.

• Los Angeles deli Canter's warned staff cuts may follow a $10,000 spike in its Los Angeles Department of Water and Power bill.

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