Unions object to proposed utility hikes

A series of increases during the next three years by Southern California Edison would put an unfair burden on working families, according to two trade unions. SCE says it needs the extra money for infrastructure improvements.

Members of two trade unions are battling one of the state’s most powerful public utilities over proposed rate hikes that union officials believe are too high.

Southern California Edison wants to increase electricity rates by 12 percent during the next three years, a move that would raise rates by over 50 percent since 2009.

That would be unacceptable, according to members of the Laborers’ International Union of North America and the International Union of Operating Engineers, “Southern California Edison is not only proposing outrageous rate hikes at a time when working families are struggling to make ends meet, it’s also not allowing us to compete for infrastructure contracts that our members pay for with their electricity rates,” said Armando Esparza, business manager for the Southern California District Council of Laborers, last month.

Esparza’s organization is a chartered district council of the Laborers’ International Union with 14 affiliated local chapters. He spoke during a public meeting in Fontana, one of a series of held throughout Southern California by the state Public Utilities Commission regarding the would-be rate hikes.

More than 200 union members spoke out against the proposed rate hikes at the Fontana meeting before an administrative law judge running the public hearings for the PUC.

Under the plan, electricity rates for residential users would go up $3.75 a month in 2018, an increase of $45 for the year.

In 2019, rates would rise $5.65, or $67.80 for the year, followed by $7.29 a month in 2020, which would work out to $87.48 for the year.

Those numbers are based on an average of 600 kilowatt hours per month.

Rate hikes by a public utility are nothing new, but the increases proposed by Southern California Edison are so excessive the two unions decided to close ranks and protest, said Esparza.

“Our members are working people, and working people these days get everything except a raise,” Esparza said. “I think that’s why they’ve reacted to it the way they have. If the rates hikes go through it will affect them just like it affects everyone else.”

Union members are also upset because Southern California Edison won’t allow its members, and members of other trade unions, to work on the utility’s infrastructure projects.

“Other than the decommissioning of the San Onofre nuclear power plant, which some of our people got to work on, they don’t do that anymore,” Esparza said. “We aren’t allowed to bid anything, and we don’t know why.”

One reason is that Southern California Edison has collective bargaining agreements with several trade unions that it must honor first, said Ron Gales, spokesman for the public utility.

About one-third of Southern California Edison’s employees are represented by a labor union, primarily the International Brotherhood of Electrical Workers Local 47, according to a statement.

In a separate statement, Southern California Edison admitted its requested rate hikes are “substantial,” but said they’re needed to pay for some much-needed projects.

“The proposal … represents a thoughtful and balanced approach to infrastructure investment so that SCE can ensure safety and improve reliability for our customers,” the statement read. “Southern California Edison’s customers are quickly adopting distributed energy resources, such as rooftop solar, battery storage and smart inverters. Clearly, customers — along with California’s leadership— want SCE to deliver more clean energy from renewable resources.”

To do that, Southern California Edison must make “significant improvements” to parts of its power grid during the next 10 years, including installing updated systems and equipment to better manage power delivery and make the overall system more stable, according to the statement.

Union members got their message across at the PUC meetings, all of which were well-attended by union backers.

“We got an overflow crowd at a couple of them,” Esparza said.

Also, the online petition set up by the unions, www.stopedison.com, has attracted more than 800 signatures. That’s a good showing considering that both labor organizations have done only radio advertisements, no print or television, Renteria said.

The public utilities commission is expected to rule on the proposed rate hikes late this year.