Utilities propose higher fees

GLENDALE — Faced with higher premiums and reduced coverage as a result of insurance claims for fires started by equipment failures, two utilities are awaiting a state decision on an application to potentially raise customer fees.

Under the proposal submitted in August by Southern California Edison and the Southern California Gas Co., customers from La Crescenta, La Cañada Flintridge and Glendale could face higher utility bills to help the companies cover the uninsured costs of wildfires — a move strongly opposed by Los Angeles County Supervisor Mike Antonovich.

In a letter sent to the California Public Utilities Commission, which will vote on the proposal, Antonovich criticized Southern California Edison for not adequately working with communities on new transmission projects and urged the commission to deny the application.

“It is unconscionable for Edison to place an additional burden on its customers . . . when the company refuses to reroute its own lines from high-fire areas,” Antonovich said.

He reiterated his opposition in a statement released Friday.

But a utility representative defended the application as reasonable given the risk of liability they’ve had to absorb during the recent fire seasons.

“It’s the normal cost of doing business,” said Steve Conroy, a spokesman for Southern California Edison. “There is nothing unusual in what we are asking for.”

The utilities joined with Pacific Gas and Electric C. and San Diego Gas & Electric Co. for the application.

If approved, the utilities would establish rate-payer-funded accounts to track and then recover the uninsured costs of wildfires through customer rates.

Utility officials said the cost recovery is necessary for the companies to remain financially viable in the face of increased liability.

The account would ensure the utilities are able to pay future claims that exceed insurance limits, said Denise King, a spokeswoman for Southern California Gas Co.

Citing a recent history of large claims filed against California utilities for wildfire damage, insurance companies have raised premiums, reduced or even eliminated coverage. Utility officials argued in their application that the diminished coverage leaves them exposed to wildfire claims previously covered by their insurance policies.