The Redondo Beach City Council unconvinced by explanation for electric bill spikes

Southern California Edison power lines carry its own electricity to Redondo Beach, as well as power purchased by the Clean Power Alliance. Photo by Easy Reader staff

by Garth Meyer

Redondo Beach city council members, who saw the cityโ€™s electric bill jump by $185,000 in January, accused Southern California Edison (SCE) and the Clean Power Alliance (CPA) last week of misleading residents on what some council members deemed hidden rate increases. 

The allegations were made at a Feb. 15 city council meeting, to address hikes of more than 100 percent on some residentsโ€™ January bills. 

Power company representatives at the meeting stood by their analysis that the bump was due to approved rate increases last October and January โ€“ and what specific plan a given resident is on. 

SCE representatives reviewed the Redondo Beach bills, they explained, and there was no evidence of errors.

Whether an individual customerโ€™s rate-plan changed, and by how much, was another question.

A representative of the California Public Utilities Commission (CPUC)  also spoke at the meeting.

โ€œThis is very confusing to residents, no question about it,โ€ Mayor Bill Brand said. โ€œTheir rates have skyrocketed, and theyโ€™re gonna skyrocket some more.โ€

Councilman Todd Loewenstein drew attention to a particular CPA rate.

โ€œI think youโ€™re really splitting hairs here,โ€ he said to Ted Bardake, Clean Power Alliance executive director, who contended that the rate in question did not change.

โ€œThe previous rate was discontinued,โ€ Bardake said. โ€œIt was not essentially covering its costs.โ€

Loewenstein countered that the new rate went from 11 cents to 22 cents per kilowatt hour.

โ€œIโ€™m now having second thoughts about going to 100 percent renewable,โ€ the councilman said, referring to a council vote in December to put Redondo Beach at that commitment with the CPA.

Bardake apologized that the increase happened to some people in Redondo, but explained it affected fewer than 10 percent of customers. It came about from a change in โ€œtime-of-useโ€ rates.

โ€œThe reason – power in those times is quite expensive now,โ€ he said. 

The CPA does not generate power, it buys it and distributes it through SCE power lines.

โ€œThe failure is on yโ€™allโ€™s part,โ€ said Councilman Zein Obagi, Jr., speculating that his bill was unaffected because he has an electric car and had switched to a time-of-use plan. โ€œYou need to educate (the customers on this),โ€ he said. โ€œFrankly, thatโ€™s not my job, itโ€™s your job.โ€

Robert Thomas, SCE director of pricing design & research, responded to a presentation by Loewenstein โ€“ which showed several residentsโ€™ bills with dramatic price and usage hikes.

โ€œThat was a comparison of two very different rate plans,โ€ Thomas said, noting that a family with radiant (baseboard) heat would have extremely high usage in December.

Loewenstein was not convinced.

โ€œI find it hard to believe someone would use 400 percent more energy because they are using radiant heat,โ€ he said. โ€œThereโ€™s something wrong here, guys, thereโ€™s something really wrong. Senior citizens are turning down their heat to pay for wildfires, for shareholder dividends.โ€

Councilman Nils Nehrenheim was less hospitable to what he heard.

โ€œCan you imagine if you were (on) 100 percent electrical at this time?โ€ he said. 

Nehrenheim would have been the lone vote opposed to going 100 percent renewable with the CPA, at the Dec. 7 meeting, but he said his internet connection went out right before the roll call.

โ€œI saw something different. And I wasnโ€™t told the whole story,โ€ he said, referring to an overall CPA rate rise since that meeting. โ€œ(The CPA) is pulling the wool over peopleโ€™s eyes. Thereโ€™s no doubt about that. โ€ฆ They have been a giant thorn in the side of all residents. We should not be involved with them in Redondo Beach.โ€ 

Councilman Christian Horvath, who is a CPA board member, pointed out that residents have a choice to go 35, 50 or 100 percent renewable. He added that the CPA is a non-profit, unlike Southern California Edison.

โ€œDistribution and transmission charges, this is where the heartache is,โ€ Horvath said. โ€œAn (SCE) smart meter could be misread or technology could go off at some point in timeโ€ฆ The CPUC seems not to be advocating for the common people, but for utility companies.โ€

Diane Forte, SCE government relations manager, made a point that usage rates in January 2021 and January 2022 were the same for most Redondo residents. 

โ€œThe usage is not the driver, itโ€™s the rates,โ€ she said.

Loewensteinโ€™s presentation included graphs on SCEโ€™s financial and stock position.

โ€œThe company is doing quite well,โ€ he said, before showing his bills and othersโ€™ on screen. He pointed out unexpected rate-plan increases for his own household from both the CPA and SCE.

โ€œIโ€™m very disappointed this wasnโ€™t brought up at our Dec. 7 meeting,โ€ Lowenstein said to Bardake. โ€œI felt misled by that. And I still feel misled.โ€

CPA policy director Gina Goodhill showed that four percent of bills in Redondo Beach were missing their generation charge in December. As a result, the charge appeared on January bills. 

Generation charges are about one-third of a customerโ€™s bill. 

Mayor Brand called for a simpler overall explanation, saying residents want to know what is โ€œthe cheapest plan thatโ€™s still green.โ€

Loewenstein displayed customer bills with highest usage overnight, when most people are asleep.

โ€œThis is phantom usage,โ€ he said. โ€œYou can see, people are just in shock. Arenโ€™t these usage rates absolutely wrong? These arenโ€™t outliers, these arenโ€™t averages.โ€

He questioned why SCE was giving executive bonuses at this time when โ€œweโ€™re paying for wildfires… I think some really serious questions need to be answered.โ€

Councilmember Emdee, who stayed quiet at the meeting, gave her assessment later in the week.

โ€œThe rates went up, and people used more,โ€ she said. โ€œMine went from -11 to $55 (on solar).โ€

In the end, Loewenstein and many residents have not yet found what they hoped for from the power companies.

โ€œThey didnโ€™t give a reason to say, okay, I get it, I understand why,โ€ he said. โ€œIโ€™m just disappointed that there was very little resolution.โ€ ER

 

Council to review CPA 100 percent renewable agreement

The Redondo Beach City Council voted 3-2, at its Tuesday, Feb. 15 meeting, to reexamine its commitment to convert the city to 100 percent renewable energy in October.

The vote followed a lengthy and inconclusive discussion between the Redondo Beach city council, Clean Power Alliance and SCE representatives.

Council members Todd Loewenstein, Nils Nehrenheim and Zein Obagi, Jr., voted to review the cityโ€™s agreement with CPA during its April meeting. Representatives Christian Horvath and Laura Emdee voted no.

Nehrenheim made the motion, after he, Loewenstein, and Obagi questioned electric bill increases in January that the CPA did not make the council aware of during a Dec. 7 council meeting, when the council voted to go to 100 percent renewable. ER

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