Altadena Ratepayers Face Electricity Bill Hike as Utilities Commission Approves SCE Request

Southern California Edison customers in Altadena will see higher electricity bills starting Oct. 1 after state regulators approved a 9.1% rate increase tied to wildfire liabilities, including costs from the deadly Eaton Fire.

The California Public Utilities Commission voted 4-0 on Sept. 18 to authorize SCE’s 2025 revenue requirement at $9.664 billion — $819 million less than the utility’s original request of $10.483 billion, but still a 12.61% increase over 2024’s authorized revenue of $8.582 billion. The decision followed public opposition and comes amid growing scrutiny of utility-driven cost burdens in fire-prone communities.

For a typical household using 500 kilowatt-hours monthly, the increase translates to an additional $15.52 per month, or about $186 annually for non-CARE customers. CARE customers — income-qualified participants in California’s discounted rate program — will see monthly increases of $9.79. The rate hike takes effect Oct. 1.

The CPUC’s vote came despite initial reports suggesting a 10% hike and continues a pattern of rising costs for SCE customers. Since 2020, the utility has raised rates 13 times and lowered them only three times, resulting in average monthly bill increases of roughly $80. Residential rates have climbed 79% since 2014, compared to 36% inflation over the same period.

The rate hike coincides with SCE’s legal exposure from the Jan. 7 Eaton Fire, which killed at least 19 people and destroyed more than 9,400 structures in Altadena. Multiple lawsuits allege SCE equipment caused the fire. Under California’s inverse condemnation doctrine, utilities can be held strictly liable for fire damages regardless of negligence — a cost structure that often shifts financial responsibility to ratepayers.

SCE has announced a compensation program for Eaton Fire victims, offering $900,000 to rebuild destroyed homes and an additional $200,000 “direct claim premium” for those who settle directly with the utility. The company’s statement emphasized its commitment to recovery, but critics say the structure incentivizes quiet settlements while leaving customers to absorb long-term costs.

Historical precedent reinforces that concern. In January 2025, the CPUC voted 4-0 to allow SCE to recover $1.6 billion in settlement costs from ratepayers for the 2017 Thomas Fire — 60% of the total $2.4 billion payout.

California’s $21 billion Wildfire Fund, created in 2019 to shield utilities and ratepayers from catastrophic fire costs, now faces potential depletion from Eaton Fire claims and other recent Los Angeles-area blazes. If exhausted, utilities could seek additional rate increases to cover future liabilities, creating a cycle where customers pay both for fire prevention and fire damages.

SCE says the rate increase is necessary to fund grid modernization, wildfire mitigation and infrastructure upgrades. The approved budget includes $2.213 billion over four years for wildfire safety measures, including undergrounding 177 miles of power lines and installing 1,653 miles of covered conductor.

Opposition to the hike was vocal. Riverside County Sheriff Chad Bianco, a declared candidate for governor, called the increase “an unacceptable burden on families” and criticized regulators for treating “ratepayers as a bottomless piggy bank.” Public comments submitted to the CPUC included pleas to deny the increase and hold executives accountable instead of passing costs to customers.

The rate hike adds pressure to California’s broader energy affordability crisis. The state now has the second-highest electricity prices in the nation after Hawaii, with major utilities raising rates by 82% to 121% over the past decade while reporting record profits.

Altadena residents, already navigating post-fire displacement and rebuilding, face compounded financial strain. Consumer advocates say the burden falls disproportionately on customers despite state rhetoric about affordability.

Additional rate increases are expected through 2028 under the approved General Rate Case, with annual adjustments for inflation. The CPUC has authorized total revenues of $41.78 billion for SCE over the four-year period — $4.39 billion less than the utility requested.