Media Contact:	Kyle DeVine		August 23, 2001	CPUC: 528
	213-576-7050	e-mail: kyl@cpuc.ca.gov		Res. E-3735

CPUC APPROVES BEAR VALLEY RATE INCREASE

The California Public Utilities Commission (CPUC) today approved a 15 percent rate increase for Bear Valley Electric to recover increased costs to purchase electricity for its customers in the San Bernardino Mountains. The increase is subject to refund depending on the outcome of an audit of the utility's costs.

The increase will be amortized over the next five years and collected by increasing the surcharge from the current $0.00429 per kilo-watt-hour (kWh) to $0.02246 per kWh, an increase of $0.01817.

Residential customers who use the systemwide average of 449 kWh a month will see a $14.16 or 13 percent increase in the monthly bill, from the current $41.02 to $55.18.

Ever since the summer of last year, wholesale costs for electricity have increased dramatically and Bear Valley Electric's current rates have not covered its costs. Bear Valley indicates it needs to recover $11 million from its 21,000 customers to cover past purchases. Last May, the Commission ordered an audit of the utility's electricity costs to verify Bear Valley's figures. If the audit, which will be paid for by the utility's shareholders, reveals the figures are too high, any excess money collected will be returned to customers.

On August 17, 2001, Bear Valley Electric, a part of Southern California Water Company, also filed a formal application for additional rate increases and to make many changes to its rate structure.

###