California state officials have approved a significant rate increase for Southern California Edison (SCE) to help cover costs related to the 2017 Thomas Fire.

The California Public Utilities Commission (CPUC) has decided that over $1.6 billion of the $2.7 billion paid out to victims of the fire—which investigators determined was sparked by SCE equipment—will now be funded by SCE customers.

Why It Matters
The Thomas Fire caused 23 deaths, destroyed more than 1,000 structures, and triggered devastating debris flows in Montecito. The high financial cost to Edison underscores the burden wildfire-related damages place on utility companies—and, in turn, their customers—an issue made more urgent by the increasing frequency of wildfires in California.

What to Know
The CPUC voted unanimously, 4-0, to approve the rate increase despite widespread public opposition. Documents from the CPUC show that it received numerous complaints criticizing Edison’s settlement request and opposing any rate hikes to cover costs tied to the Thomas Fire and Montecito debris flows.

Seven Democratic state lawmakers sent a letter, obtained by Politico, to CPUC President Alice Reynolds after the vote. The lawmakers urged her to reconsider the decision and assign more of the financial responsibility to SCE shareholders.

An investigation by the Ventura County Fire Department and other agencies concluded that the Thomas Fire began when SCE power lines came into contact and released molten aluminum particles onto dry vegetation. 

SCE has argued that only one of the two fires that combined to create the blaze involved its equipment. The company also attributed the Montecito debris flows to issues like "inadequate governmental flood control infrastructure and poor evacuation communications."

To reduce the immediate impact of the rate increase, SCE plans to request approval to spread the costs over 30 years. This would mean most residential customers would see about a $1 increase on their monthly electricity bills however statistical rate increase data indicates a 11% annual rate increase from 2006.

Low-income customers enrolled in California Alternate Rates for Energy and Family Electric Rate Assistance Programs will not be affected.

The settlement also commits $50 million from SCE shareholders to fund wildfire mitigation efforts intended to reduce risks from the company’s operations in the future.

The Wild Tree Foundation, an environmental and ratepayer advocacy organization, criticized the settlement in a statement to Newsweek.

“The CPUC is forcing the victims of the Thomas Fire and Montecito Debris Flow to pay for their damages by raising electricity rates on these same victims—Southern California utility customers,” the group said.

“The ultimate responsibility for California’s utility-caused fires lies with the Legislature and Governor, who have reduced utility accountability, and the CPUC, which has failed for decades to ensure utilities prioritize public safety and hold them accountable for negligence,” the foundation added.

“The victims are now being forced to bear the costs of these disasters through bailouts like the one the CPUC just approved.”

State legislators echoed similar concerns in their letter to the CPUC.

“By allowing SCE to raise rates to recover these damages, we are failing to hold the utility accountable and shifting its liability onto residents who bear no responsibility for the disaster,” they wrote.

The letter continued, “Those living in wildfire-prone regions have already suffered from utility failures, including power outages, property destruction, and displacement. Requiring these same consumers to shoulder the financial burden of corporate mismanagement and deficient infrastructure is unacceptable.”

What Happens Next?
SCE is also seeking approval for another rate increase to recover $5.4 billion in costs related to the 2018 Woolsey Fire. That fire was also linked to SCE equipment, according to an investigation by Cal Fire and the Ventura County Fire Department. The CPUC will review this request at a later date.

The Solution To SCE Customers Battling Rising Energy Costs

As energy costs continue to soar, Southern California Edison (SCE) customers are finding relief through innovative solutions like third-party solar power agreements, also known as Third-Party Ownership (TPO) or Power Purchase Agreements (PPA).

These programs allow homeowners to purchase electricity directly from the same third-party solar energy providers that sell power to SCE—without the premium charges passed on by the utility company. Thanks to government grants and tax credits, homeowners can access clean, affordable solar energy without leasing, financing, or paying upfront for solar panels, battery storage, or installation. 

By opting into a Solar-Net-Billing plan, homeowners purchase solar energy (produced on their own roofs) at rates as low as $0.25 per kWh—far cheaper than SCE’s $0.40 per kWh rate—while avoiding SCE’s steep annual rate increases of up to 11%.

On top of that, whole-home backup capabilities included with these systems bring added reliability for energy needs. Visit www.mysolarsolutions.co to see if your home qualifies for this no-cost solar energy program and secure cleaner energy at a lower, stable rate.