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The Catalina Islander
Avalon, California
September 7, 2012     The Catalina Islander
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September 7, 2012

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I BY DENNIS KAISER Since the days when Thomas Edison l first entranced the world by lighting it up at night, people have depended on electric powers to keep up with the changing time and then, just to live a normal life. Catalina Island has been grow- ing and changing "electrically" for many years. Catalina is hardly an exception. Since the Banning Brother's purchased the island in 1891, elec- tricity has gone through numerous changes. The need for competent electricians to help the island go through these changes is always necessary. One of the Island's old- est buildings, .the Glenmore Plaza Hotel, recently went through some of these changes~ Just before acquiring R.E.B Electric, John Antonio asked his long time employee John Jackson - who goes only by "Jackson" - if he would be willing to live on Catalina and run the day-to-day operations of Eagle Electric Cata- lina. Jackson, who is currently single and does not have-any children, thought about for a nanosecond before saying he would do it. "I'm loving it here on the Is- .land," Jackson said. "When they asked me if I wanted to come here fullt[me, I answered yes before my boss even finished asking the question." Jackson had been spending his weekdays here on the Island go- ing home on the weekend and was feeling a bit punished every time he had to leave. "I have been back to the main- land a few times," he said. "But I'd really rather be here. I've become involved with volunteering at the church I attend and just love the Is- l,nd lifestyle," he said. "I'm pretty outgoing and I've been meeting new people every day. I feel lucky just to be here, working full-time and enjoying what I do." With a, willing employee John Antonio bought R.E.B Electric from Barney Andrews and the rest is Catalina history. In January of this year, John Antonio, the owner of Eagle Elec- tric received a call from a Catalina contractor. While on the job at the Glenmore Plaza Hotel the electri- cian Barney Andrews was unfor- tunately experiencing some physi- cal problems. J0hn-Jackson stands next to the compamy vehicle. Photo by Dennis Kaiser The 68-year-old had been work- ing in Catalina since he was 31 years of age and for those of you doing the math it was back in 1974 when he arrived. Barney Andrew's Company was called R.E.B. Elec- tric and his company went just by "Barney." " R.E.B. Electric has done proj- ects such as Sol Vista, Fairview Terrace, Bahia Vista and parts Of Hamilton Cove. When Barney met John Anto- nio they hit it off and Barney of- fered to sell his business to Eagle Electric. Eagle Electric is based in Tarzana, and has worked for such clients as Cedar Sinai hospital, Westfield Shopping Malls, AMC Theater and many property man- agers and retail stores. Antonio and his wife Michelle are both from England and have two" boys, Callum and Tyler, 13 and 10 years old. "All Eagle Electric employees are loyal, honest and have been with the company from its origin," he said. "Eagle Electric sees a need and opportunity to the people of Catalina with prompt and reli- able service. No job is too small and no project too big as they have employees waiting and willing to come stay with Jackson and take care of Catalina Island's electrical needs." SOUTHERN CALIFORNIA EDISON COMPANY NOTICE OF EVIDENTIARY HEARING REGARDING PROPOSED RATE CHANGES IN SCE'S 2012 GENERAL RATE CASE (GRC) PHASE 2 Application (A.) 11-06-007, FILED JUNE 6, 2Oll. DATE: Thursday, September 20, 2012 -TIME: 9:00 A.M. THRU Friday, September 21, 2012 - TIME: 9:00 A.M. LOCATION: Commission Courtroom, 505 Van Ness Avenue, San Francisco, CA 94102 The California Public Utilities Commission (CPUC) will hold Evidentiary Hearings (EH's) regarding the i~mposed rate changes in the Application of Southern California Edison Company (SCE) To Establish arginal Costs, Allocate Revenues, Design Rates and Implement Additional Dynamic Pdcing Rates (A.11-06-007). Any changes to the dates, times and locations of the EH's will be posted to the CPUC's Daily Calendar: The location for this headng is wheelchair accessible. Anyone needing interpreters for language or for the hard of hearing, please contact the Public Advisor's Office at the following numbers at least five (5) working days in advance of the hearing date: Telephone: (415) 703-2074 or toll free: 1-866-849-8390 . TFY: (415) 703-5282 or toll free TTY: 1-866-836-7825 SCE's Application requests authority to revise retail rates for all of its customers, and to determine how SCE's revenues will be collected from residential, commercial, large business, and agricultural customer classes. While this application will not increase or decrease SCE's overall revenues, a number of other proceedings will conclude and result in changes to SCE's authorized revenues before the CPUC finishes its review of this application. The rate design the CPUC adopts in this proceeding will incorporate those revenue requirement changes. SCE anticipates that all of the issues in this proceeding will be addressed in settlement agreements that will be subject to CPUC approval. The evidentiary headngs will provide an opportunity for the Ad minkCaalive Law Judge (ALJ) and other parties to ask questions about the settlement agreements. WHAT THIS MEANS TO YOU The settlement agreements will modify the allocation of approved revenue requirements between the vadous customer classes. The changes are intended to better align rates with SCE's underlying cost to serve different classes of customers• Customer classes would see rate changes either greater than, or less than, SCE's system average increase. EVIDENTIARY HEARINGS The CPUC holds EH's whereby the formal parties of record provide testimony and are subject to cress-examinatlen before the assigned CPUC Administrative Law Judge (ALJ). These headngs are open to the public to attend end liste0; but only those who ere formal parties of record are allowed to participate. One party is the Division of Ratepayer Advocates (DRA), which consists of engineers, accountants, economists and attorneys who independently evaluate the proposals of utilities and lyses and recommendations for the CPUC at the EH's. The CPUC has its own court reporters who will record the participation of parties in the EH's. Parties may participate, present testimony, cress-examine other parties' witnesses, end present oral arguments addressing the issues as set forth in the Joint Assigned Commissioner and ALJ's Ruling and Scoping Memo dated December 2, 2011. Parties may offer proposals that differ from those presented in SCE's application. Evidentiary hearings will begin'on September 20, 2012 at I 0:00 a.m., and may continue on September 21, 2012, and on October 25, and 26, 2012 (if needed). The ALJ may modify the schedule at a later date, and will preside over the evidentiary hearings: The assigned Commissioner may be in attendance as well. The evidentiary hearings will be held at a designated CPUC headng room in.San Francisco, CA at the address noted above• Once headngs are completed, the ALJ will consider all of the evidence presented and release a proposed decision. When the CPUC issues a final decision, it may adopt, amend or modify all or part of the ALJ's proposed decision. The final decision may differ from the requests filed by SCE in its application. FOR FURTHER INFORMATION Customers with Intemet access may view and download a copy of the application at the CPUC's website, Electronic copies of the application and related documents are also available on SCE's website, htte:llwww3.sce.comllaw/coucaroceedinas. nsf, by clicking the link for "2012 GRC Phase 2." Those wlthout Intemet access or anyone wishing to obtain more information about this proceeding should send a written request, referring to Application No. 11-06-007 to: Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Atten6on: Russell Garwacki General Rate Case Phase 2 Project Manager Los usuados con acceso al Intemet podr~n leer y descargar esta notificacidn en espatlol en el sitio Web de SCE o escriba a: Southem Califomia Edison Company P.O. Box 800 2244 Walnut Grove Avenue Rosemead, CA 91770 Atencibn: Comunicaciones Corporativas Copies of the Application and related exhibits are also available at SCE's corporate headquarters (2244 Walnut Grove Avenue, Rosemead, CA 91770) or at the following SCE business offices: 1 Pebbly Beach Rd..30553 Rimrock Rd. 374 Lagoon St. Avalon, CA 90704 Barstow, CA 92311 Bishop, CA 93514 505 W. 14= Ave. 3001 Chateau Rd. 510 S. China Lake Blvd. Blythe, CA 92225 Mammoth Lakes, CA 93546 Ridgecre~t, CA 93555 26364 Pine Ave. 41694 Dinkey Creek Rd. 421 W. J St. Rimforest, CA 92378Shaver Lake, CA 93664 - Tehachapi, CA 93561 120 Woodland Dr. " 6999 Old Woman Springs Rd. Wofford Heights, CA 93285 Yucca Valley, CA 92284 You may also' reView a copy of the Application at the CPUC's Formal Files ~ffise at 505 Van Ness Avenue, San Francisco, CA, Monday through Friday between the hours of 8:0 AM to noon daily. If you would like further information on the EH process or ifyou wish to sumit written comments or informally protest this application as a customer of SCE, you may d(so by contacting tl3e CPUC's Public Advisor's Office at the address or e-mail shown below. Plase state that you are writing conceming SCE's Application No. 11-06-007. Your comments will beome part of the formal correspondence file for public comment in this proceeding. The Public Advis~r's Office will circulate your comments to the five Commissioners, the ALJ, the Division of RatepayerAdvocates (DRA), and to CPUC staff assigned to this proceeding. The Publio Advisor Califomia Public Utilities Commission 505 Van Ness Avenue, Room 2103 San Francisco, CA 94102 Email! P ' " Recognizing 'young musicians' The Aug. 24 publication of the Catalina Islander included a story about the Aug. 17, summer concert at Machado field. The article mentioned "local youth performers" and a "young local island band." Pictured with Donovan Frankenreiter (wearing hat), the local musicians are from left: Scott Moyse, Corey Cowper, Michaela Edwards, Alex Morand, Joseph Vickers. Los usuarios con acceso al Internet podr~n leer y descargar esta notiflcaci6n en espafrol en el sitio Web de SCE o escriba a: Southern California Edison Company P.O. Box 800 2244 Walnut Grove Avenue • Rosemead, CA91770 Atencibn: Comunicaciones Corporativas NOTICE OF PUBLIC PARTICIPATION HEARINGS REGARDING PROPOSED DECREASE IN ELECTRIC RATES BY SOUTHERN CALIFORNIA EDISON COMPANY (SCE) Application (A.) 12..04-015 The California Public Utilities Commission (Commission) would like to hear from you! The Commission has scheduled a Public Participation Headng (PPH) within SCE's~ serv ce terr tory that wi I be facil tated by a Commission Administrative Law Judge. The date, time and location of the PPH is as follows: Thursday, October 4, 2012 7:00 PM San Bernardino City Hall Chambers 300 North "D" Street San Bernardino, CA The purpose of the PPH is to accept public comment from customers of SCE regarding the proposed rate decrease in the Application of Southern California Edison Company for Authority to Establish its Authorized Cost of Capital for Utility Operations for 2013 and to Reset the Annual Cost of Capital Adjustment Mechanism (A. 12-04-015). SCE'S APPLICATION FILING On Apdl 20, 2012, SCE filed Application No, 12-04-015 with the Commission requesting that the Commission review and authodze a cast of capital for test year 2013. The authorized cost of capital determines the amount of money SCE is allowed in rates as a ratum on its invested capital. In this proceeding, the Commission will determine the reasonable costs of long-term debt, preferred stock, and common stock that are part of the authorized cost of capital. SCE recommends no change in its currently authodzed ratemaking capital structure at this time. Therefore, SCE requests Commission authorization of the following capital structure, costs of long-term debt and preferred equity, and return on common equity, to become effective January 1, 2013: 2013 Recommended Cost of Capital for SCE Component Percentage Cost Weighted Cost Long-Term Debt 43•00% 5•53% 2.38~ Preferred Equity 9.00% 5 86%; 0.•53% Common Equity 48;00% 11.10%I5.33% Total 100.00% -I 8.24% The authodzed cost of capital adopted in this application will be applied to capital investment authodzed in SCE's pending General Rate Case (GRC) application. Assuming that SCE's requested capital investment is adopted in the GRC, SCE's annual revenue requirement will decrease by approximately $92.8 million beginning on January 1,2013. SCE is requesting a return on common equity of 11.10% and a return on rate base of 8.24%. SCE's requested cost of capital will faidy compensate those who invest in SCE, and permit SCE to attract capital to meet its obligations to serve its customers safely and efficiently. SCE also requests that its cost of capital adjustment mechanism be continued without modification for a three-year term (including 2013), so that SCE's next cost of cepital application will be filed in eady 2015 for test year 2016. SCE's current mechanism is based on the 12-month average of the ~oody's Baa long-term utility bond rate index. In October of each year, the most recent 12,-month average for this rate is compared to a benchmark value. If the difference between the two is more than 100 basis points or less than minus 100 basis points, anew ROE is established. The Commission has decided to address SCE's request for a mechanism in a separate phase of this proceeding next year. The following table shows an estimate of prooosed revenues and rate changes by customer group• The percentage decrease in tota~ revenue is ~;92.8 million or -.83%, beginning in 2013. Any revenue change resulting from this application will be consolidated with revenue changes from other SCE applications. If the Commission should approve total rates as requested, an average residential electric customer using 600 kilowatt-hours par month would expect to see a decrease of $1.01 per month, from $104.92 to $103.91. The following table ~shows current rates compared to an estimate of proposed revenue and rate changes by customer group. Customer Group •Revenue Impact Cost of Capital Application for 2013 Bundled ~Revenue % Present Rates Proposed Customer •Group Change ($000) Change (C/kWh) Rates (C/kWh) Residential -44,494 -0.99% 16.06 , 15.91 Lighting - Small and Medium Power -32,588 -0.79% 15.27 15.1! Large Power -12,670 -0.60% 10.20 10.13 Aqriculturel and Pumpinq -2,813-0.79% 11.66 11.56 Street andArea Lighting -301 -0.23% 18.13 18•09 Total -92,866 -0.83% 14.30 14.18 FOR FURTHER INFORMATION FROM SCE You may also view a copy of the application at the Commission's website, EFILE/N1"36644.htm. or by wnting to SCE at the Rbsemead mailing ,address below. You may also review a copy of this Application and related exhibits at SCE's corporate headquarters (2244 Walnut Grove Avenue, Rosemead, CA 91770), at the Los Angeles Office of the Commission at the address shown above, or at the following SCE business offices: 1 Pebbly Beach Rd. 30553 Rimrock Rd. 374 Lagoon St., Avalon, CA 90704 Barstow, CA 92311 Bishop, CA 93514 505 W. 14= Ave. 3001 Chateau Rd. 510 S. China Lake Blvd., Blythe, CA 92225 Mammoth Lakes, CA 93546 . Ridgecrest, CA 93555 26364 Pine Ave. 41694 Dinkey Creek Rd. 421 W. J St., Rimforest, CA 92378 - Shaver Lake, CA 93664 Tehachapi, CA 93561 120 Woodland Dr., 6999 Old Woman Spdngs Rd. Wofford Heights, CA.93285 Yucca Valley, CA 92284 For further information from SCE regarding this Application, please write to: Southem California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Attention: Case Administration COMMISSION PROCESS . - • If you are unable to attend these heanngs, you can send public comments to the Commission's Public Advisor's Office at the address noted below. Please refer to the application filing number: A.12-04- 015 when you are writing. All public comments are cimulated to the Commissioners, the assigned ALJ, and other line Divisions working on this GRC. All public comments are also provided to the Commission's Formal Files Office as part of the formal public comment file for this proceeding. The Public Advisor's Office California Public Utilities Commission 320 West Fourth Street, Suite 500 Los Angeles, CA 90013 E-Mail: " " Locations for these headngs are wheelchair accessible. If you need interpreters for language or for the hard of headng, please contact the Public Advisor's Office at the following numbers at least five (5) working days in advance of the meeting date: Telephone: (415) 703-2074 or toll free: 1-866-849-8390 "l-P(: (415) 703-5282 or toll free TTY: 1-866-836-7825 310.510.0250 310.510.8957fx ~iS ' ~lr~gNAiiii~NDisii ...................... • .................................................................................................................................................................................................................................................................................................................. Septe mioer '71:9 C):12i~ • •