The 20 kW Cliff

Santa Monica · Southern California Edison · Public evidence file

A Santa Monica recording studio touched 21 kW three times. Its electricity has cost 63.5% more for the same kilowatt-hours.

$10,223 extra paid on one meter in 19 months, Feb 2025 to Aug 2026, against the same 46,984 kWh priced on SCE’s small-business rate. How this is computed
A bank of commercial electric meters on a stucco wall in late afternoon light
20 kW Average draw 3.4 kW
  1. 11Jun 2024: 11 kW
  2. 16Jul 2024: 16 kW
  3. 13Aug 2024: 13 kW
  4. 14Sep 2024: 14 kW
  5. 21Oct 2024: 21 kW (counted toward the move)
  6. 21Nov 2024: 21 kW (counted toward the move)
  7. 16Dec 2024: 16 kW
  8. 21Jan 2025: 21 kW (counted toward the move)
  9. 19Feb 2025: 19 kW
  10. 21Mar 2025: 21 kW
  11. 21Apr 2025: 21 kW
  12. 22May 2025: 22 kW
  13. 21Jun 2025: 21 kW
  14. 24Jul 2025: 24 kW
  15. 27Aug 2025: 27 kW
  16. 19Sep 2025: 19 kW
  17. 19Oct 2025: 19 kW
  18. 21Nov 2025: 21 kW
  19. 13Dec 2025: 13 kW
  20. 19Jan 2026: 19 kW
  21. 18Feb 2026: 18 kW
  22. 18Mar 2026: 18 kW
  23. 14Apr 2026: 14 kW
  24. 14May 2026: 14 kW
  25. 16Jun 2026: 16 kW
  26. 21Jul 2026: 21 kW
  27. 19Aug 2026: 19 kW
Moved to GS-2, Jan 29 2025
Jun 2024Aug 2026
Meter A’s highest 15-minute demand each month, Jun 2024 to Aug 2026. The three amber readings, 21 kW in Oct 2024, Nov 2024 and Jan 2025, moved the meter to TOU-GS-2. Average draw over the latest 12 months: 29,866 kWh over 8,760 hours. Source: SCE statements 10/31/2024, 12/03/2024, 03/26/2025.

How the cliff works

SCE’s small-business rate, TOU-GS-1, has no demand charge. A business whose monthly peak “has exceeded 20 kW in any three months in the preceding 12 months” is moved to TOU-GS-2, which does.

  • Customer charge. $14.51 a month on GS-1, $268.43 on GS-2. Both figures are on the same Aug 2026 statement, one per meter.
  • Demand charges. GS-2 adds $15.83 per kW of the month’s single highest 15-minute reading, plus a summer on-peak generation charge. GS-1 has neither.
  • Energy rates. GS-2 prices each kWh a little lower in most months, which offsets part of the new charges.
  • No way back on usage. The trigger is three 15-minute peaks. Total use does not matter. This meter averages 3.4 kW.

“Absent the 50 kVA transformer treatment, the transition to the higher demand rate group can result in a significant bill impact as the customer’s load essentially remains the same.”

SCE, rate design testimony, CPUC application A.24-03-019, exhibit SCE-04A, p. 14

Rule text: TOU-GS-1-RTP schedule (same applicability text), SCE sheet 74760-E, TOU-GS-1 applicability, OpenEI rate database, SCE rate plans by business size, SCE tariff books.

Fixed monthly charges by monthly peak demand On TOU-GS-1 the fixed charge is $14.51 a month at any peak up to 20 kW. Past 20 kW on TOU-GS-2 it is $268.43 plus $15.83 per kW, so $585 at 20 kW and $743 at 30 kW. $0$200$400$600$800051015202530 20 kW TOU-GS-1: $14.51 a month 21 kW on GS-2:$601 a month Highest 15-minute demand in the month (kW) Fixed charges per month
Customer charge plus facilities demand charge at the rates printed on the Aug 2026 statement. Energy charges and the summer generation demand charge are left out. Crossing 20 kW once does nothing; the third month in a year does.

What it cost this studio

Every month on GS-2, Meter A’s own kWh in each time-of-use period was re-priced at the GS-1 rates printed on Meter B’s bill for the same days. Meter B is in the same building, with the same supplier, and stayed on GS-1.

$10,223extra over 19 months
$538extra per month on average
$6,172extra in the latest 12 months, Sep 2025 to Aug 2026
63.5%more than GS-1 for the same kWh

Where the $10,223 comes from

Component19 months
Customer chargeTOU-GS-2 customer charge minus the TOU-GS-1 customer charge Meter B paid for the same days.+$4,452
Facilities demand chargeCharged on the month’s highest 15-minute kW. TOU-GS-1 has none.+$5,336
Generation demand chargeSummer on-peak kW charge on the generation side. TOU-GS-1 has none.+$1,022
Taxes on the differenceSanta Monica utility users tax and Clean Power Alliance tax on the higher subtotal.+$916
Climate credit lostThe California Climate Credit goes to small-business accounts. Meter A stopped getting it.+$148
Energy ratesGS-2 energy prices are lower per kWh in most months, which offsets part of the charges above.-$1,650
Net cost of the move19 months, 46,984 kWh, Feb 2025 to Aug 2026.+$10,223

Month by month, Feb 2025 to Aug 2026

Meter A monthly charges, actual on TOU-GS-2 vs. the same usage on TOU-GS-1 Every month from February 2025 to August 2026 the actual TOU-GS-2 charge sits above the TOU-GS-1 price for the same kilowatt-hours. The gap ranges from $255 to $990 a month. $0$500$1,000$1,500$2,000$2,500Feb 25May 25Aug 25Nov 25Feb 26May 26Aug 26 Feb 2025: actual $919.38, GS-1 $580.49, gap $338.89Mar 2025: actual $874.69, GS-1 $465.83, gap $408.86Apr 2025: actual $889.36, GS-1 $432.47, gap $456.89May 2025: actual $1,114.43, GS-1 $846.67, gap $267.76Jun 2025: actual $1,871.20, GS-1 $1,125.25, gap $745.95Jul 2025: actual $2,220.04, GS-1 $1,331.39, gap $888.65Aug 2025: actual $2,427.07, GS-1 $1,483.55, gap $943.52Sep 2025: actual $2,414.59, GS-1 $1,650.16, gap $764.43Oct 2025: actual $1,094.15, GS-1 $742.12, gap $352.03Nov 2025: actual $997.18, GS-1 $591.95, gap $405.23Dec 2025: actual $814.98, GS-1 $535.48, gap $279.50Jan 2026: actual $1,035.32, GS-1 $660.09, gap $375.23Feb 2026: actual $876.05, GS-1 $483.76, gap $392.29Mar 2026: actual $922.69, GS-1 $579.98, gap $342.71Apr 2026: actual $839.37, GS-1 $525.15, gap $314.22May 2026: actual $887.58, GS-1 $632.38, gap $255.20Jun 2026: actual $1,578.56, GS-1 $791.87, gap $786.69Jul 2026: actual $2,158.16, GS-1 $1,168.44, gap $989.72Aug 2026: actual $2,385.69, GS-1 $1,470.79, gap $914.90 Actual,GS-2 Same kWh,GS-1 Usage month Meter A charges per month

The gap runs from $255 to $990 a month and never closes. From Feb to Jul 2026 both meters bought power through SCE’s transitional service, so the comparison uses those same prices on both sides.

The price of one kilowatt-hour on this meter

  1. Jan 2025, TOU-GS-1$0.33per kWh, all in. Statement 03/26/2025.
  2. Mar 2025, first full month on TOU-GS-2$0.60per kWh. Statement 04/02/2025.
  3. Aug 2026, TOU-GS-2$0.66per kWh. Statement 08/31/2026.

The all-in price moves with the seasons because fixed charges spread over fewer kWh in winter. The month-by-month comparison above holds kWh constant, so the season cancels out there. Only the lines printed as demand charge, $335 a month on average and $6,357 of the $10,223, carry that name.

Method and the full monthly table
  • Actual = Meter A’s printed charges on each statement. The Sep 2025 figure is before a later -$29.13 billing correction.
  • GS-1 price = each GS-2 energy line re-priced at Meter B’s GS-1 rate for the same period and time-of-use bucket, plus Meter B’s GS-1 customer charge for the same days, plus the climate credit Meter A stopped getting, plus taxes recomputed at the printed tax rates.
  • Check: the same re-pricing run on Meter A’s own TOU-GS-1 months, Sep 2024 to Jan 2025, reproduces its printed bills within $0.22 a month, and every recomputed GS-2 month equals the printed meter total to the cent.
  • Every line cites the statement and page it came from. Statement PDFs are not posted because they carry account details; they are available to regulators on request.
Usage monthSupplierkWhActual, GS-2Same kWh, GS-1DifferenceStatement, page
Feb 2025CPA1,728$919.38$580.49+$338.8903/26/2025, p. 10; 03/26/2025, p. 15; 03/26/2025, p. 12; 03/26/2025, p. 16
Mar 2025CPA1,451$874.69$465.83+$408.8604/02/2025, p. 5; 04/02/2025, p. 9; 04/02/2025, p. 11; 04/02/2025, p. 8
Apr 2025CPA1,450$889.36$432.47+$456.8905/02/2025, p. 5; 05/02/2025, p. 8; 05/02/2025, p. 7; 07/03/2025, p. 11
May 2025CPA2,645$1,114.43$846.67+$267.7606/04/2025, p. 5; 06/04/2025, p. 6; 07/03/2025, p. 12; 07/03/2025, p. 5
Jun 2025CPA2,829$1,871.20$1,125.25+$745.9507/03/2025, p. 13; 07/03/2025, p. 7; 07/03/2025, p. 10; 07/03/2025, p. 15
Jul 2025CPA3,223$2,220.04$1,331.39+$888.6508/04/2025, p. 5; 08/04/2025, p. 8; 08/04/2025, p. 10; 08/04/2025, p. 7
Aug 2025CPA3,792$2,427.07$1,483.55+$943.5209/03/2025, p. 5; 09/03/2025, p. 8; 09/03/2025, p. 7; 09/03/2025, p. 9
Sep 2025CPA4,347$2,414.59$1,650.16+$764.4310/02/2025, p. 5; 10/02/2025, p. 8; 10/02/2025, p. 7; 10/02/2025, p. 9
Oct 2025CPA2,280$1,094.15$742.12+$352.0310/31/2025, p. 5; 10/31/2025, p. 9; 10/31/2025, p. 11; 10/31/2025, p. 8
Nov 2025CPA1,722$997.18$591.95+$405.2312/03/2025, p. 5; 12/03/2025, p. 8; 12/03/2025, p. 7; 12/03/2025, p. 9
Dec 2025CPA1,563$814.98$535.48+$279.5001/05/2026, p. 5; 01/05/2026, p. 8; 01/05/2026, p. 7; 01/05/2026, p. 9
Jan 2026CPA1,835$1,035.32$660.09+$375.2302/04/2026, p. 5; 02/04/2026, p. 9; 02/04/2026, p. 11; 02/04/2026, p. 7
Feb 2026SCE TBS1,632$876.05$483.76+$392.2903/09/2026, p. 7; 03/09/2026, p. 5
Mar 2026SCE TBS2,023$922.69$579.98+$342.7104/06/2026, p. 7; 04/06/2026, p. 5
Apr 2026SCE TBS2,030$839.37$525.15+$314.2205/04/2026, p. 7; 05/04/2026, p. 5
May 2026SCE TBS2,282$887.58$632.38+$255.2006/08/2026, p. 8; 06/08/2026, p. 5
Jun 2026SCE TBS2,724$1,578.56$791.87+$786.6907/07/2026, p. 7; 07/07/2026, p. 5
Jul 2026SCE TBS3,798$2,158.16$1,168.44+$989.7208/03/2026, p. 7; 08/03/2026, p. 5
Aug 2026SCE bundled3,630$2,385.69$1,470.79+$914.9008/31/2026, p. 7; 08/31/2026, p. 5
Total46,984$26,320.49$16,097.82+$10,222.67

The default premium on top

Santa Monica enrolls businesses in Clean Power Alliance’s 100% Green tier unless they opt down. About 96% of Santa Monica customers are in it (City of Santa Monica).

  • The premium. On SCE’s own sample comparison for a TOU-GS-2 business account, 100% Green costs 7.0% more than SCE’s base rate. Clean Power costs the same as base.
  • This studio. Both meters were billed “100% Green Power” from Jun 2024 to Jan 2026, 20 months.
  • A caveat. Santa Monica sits in an older CPA cost group, so its exit fee may differ from the sample sheet. The sample is SCE’s; the direction is not in doubt.
SCE sample bill, TOU-GS-2 Option E, 10,689 kWh, 24 kW peak
OptionMonthly billvs SCE base
SCE base$3,010.020.0%
CPA Lean$2,949.84-2.0%
CPA Clean$3,010.020.0%
CPA 100% Green, the Santa Monica default$3,220.70+7.0%
Source: SCE and CPA joint rate comparison. SCE rates of Jun 1 2026, CPA rates of Jul 1 2026.

What is pending at the CPUC

The small-business class rate fell 5.3% on Jan 1 2026, from 32.2 to 30.5 cents per kWh (California Regulatory Intelligence, SCE advisory). This campaign is about how the bill is built, not one rate hike. Two open cases would add to it.

A.26-03-030

$1.865 billion smart-meter replacement

+2.5% for small and medium business at the 2033 peak.

Source: SCE customer notice. The CPUC’s Public Advocates Office protested and says the cost belongs in SCE’s next general rate case.

Comment on A.26-03-030

On each Docket Card, open Public Comments, then Add Public Comment. Your name, city and ZIP are published (CPUC guide).

Three asks, three decision makers

  1. California Public Utilities Commission · President John Reynolds

    No demand charges for small businesses under 30 kW

    Or base the move on a 12-month rolling average instead of three 15-minute readings. And reject SCE’s off-cycle $1.865 billion smart-meter charge, A.26-03-030.

  2. Clean Power Alliance board · Chair Robert Parkhurst and Santa Monica’s director, Mayor Caroline Torosis (CPA board)

    Make Clean Power the business default

    Priced at SCE’s base rate, instead of 100% Green at about 7% more. Or cut the green premium for businesses under 50 kW. Next board meetings: Nov 5 and Dec 3, 2 PM (schedule). Written comment: clerk@cleanpoweralliance.org.

  3. Santa Monica City Council · Mayor Caroline Torosis and the Council (meeting calendar)

    Measure it and say so to the CPUC

    Publish a small-business energy-cost report twice a year. Send a city letter to the CPUC on A.26-05-006 and A.26-03-030. Written comment: councilmtgitems@santamonica.gov by noon on meeting day.

The petition

The petition goes live at change.org. Its link will replace this note. Until then, the full text is below and the CPUC comment buttons above are open now.

Stop the 20 kW Cliff: Fair Electric Bills for Santa Monica Small Businesses

I run The Recording Club, a recording studio and music club at 1660 9th Street in Santa Monica. In August our main meter cost $0.66 per kilowatt-hour. Across both meters we paid $27,848 for electricity over the last 12 months.

Here is why. Between October 2024 and January 2025, that meter touched 21 kilowatts three times. SCE’s rule says three months over 20 kW and you move to a bigger-business rate. So in February 2025 we did. Across the year that meter averages about 3.4 kilowatts.

Our other meter stayed on the small-business rate, and every bill prints its prices for the same days. So we re-priced the first meter’s exact usage at those prices, line by line, for every month since the move. The new rate has cost us $538 a month on average, $10,223 over 19 months, 64% more for the same electricity. Only $335 a month of that shows up on the bill as a line called demand charge. The rest is spread across the bill. The monthly customer charge went from about $14 to $268.43, the meter stopped getting the state’s climate credit, and the city’s 10% utility tax applies to all of it. In August that meter cost 66 cents a kilowatt-hour. On the small-business rate, the same power would have cost 41 cents.

Then there is the default. Santa Monica enrolls every business in Clean Power Alliance’s 100% Green tier, which on SCE’s own sample comparison for a business account costs about 7% more than SCE’s base rate. About 96% of Santa Monica customers are in it. We paid that premium for 20 months.

This is not one rate hike. SCE’s small-business rate actually dropped 5.3% on January 1. The problem is how the bill is built, and two new asks are already in front of the CPUC.

Every bill line and the method are public at https://cliff.gregspero.com.

I am asking for three things.

  1. California Public Utilities Commission: no small business pays demand charges below 30 kW, or at least base the switch on a 12-month rolling average instead of three readings. And reject SCE’s off-cycle $1.865 billion smart-meter charge (A.26-03-030), which the CPUC’s own Public Advocates Office has protested.
  2. Clean Power Alliance board and Santa Monica’s director, Mayor Caroline Torosis: make Clean Power, priced at SCE’s base rate, the default for businesses instead of 100% Green, or cut the green premium for businesses under 50 kW.
  3. Santa Monica City Council: publish a small-business energy-cost report twice a year, and send a city letter to the CPUC on SCE’s 2027 fuel and power forecast (A.26-05-006, a 1.8% increase for small business) and the smart-meter case (A.26-03-030).

Small businesses are what make Santa Monica worth walking around in. Sign if your electric bill has ever made you wonder what you are actually paying for, and share it with every business owner on your block.

Greg Spero
The Recording Club, Santa Monica

Addressed to

  • John Reynolds, President, California Public Utilities Commission
  • Robert Parkhurst, Chair, Clean Power Alliance Board of Directors
  • Caroline Torosis, Mayor of Santa Monica; Santa Monica’s director on the Clean Power Alliance board
  • Rick Chavez Zbur, Assemblymember, 51st District
  • Santa Monica City Council

Every bill line

Both meters, every usage month from Jun 2024 to Aug 2026, read from 26 SCE statements. Each row gives the statement date and the page of the charge detail. Meter A is the one that moved.

Meter A

Usage monthRatekWhMax kWCurrent charges$/kWhStatement, page
Jun 2024TOU-GS-1-E60611$238.28$0.39307/02/2024, p. 5, 8
Jul 2024TOU-GS-1-E3,73116$1,387.13$0.37208/02/2024, p. 5, 8
Aug 2024TOU-GS-1-E6,34113$2,348.47$0.37009/03/2024, p. 5, 8
Sep 2024TOU-GS-1-E4,54914$1,697.83$0.37310/02/2024, p. 5, 8
Oct 2024TOU-GS-1-E2,76821$799.53$0.28910/31/2024, p. 5, 9
Nov 2024TOU-GS-1-E2,01221$623.87$0.31012/03/2024, p. 5, 8
Dec 2024TOU-GS-1-E1,84116$585.10$0.31801/03/2025, p. 5, 8
Jan 2025TOU-GS-1-E1,77721$590.31$0.33203/26/2025, p. 5, 13
Feb 2025TOU-GS-2-E1,72819$919.38$0.53203/26/2025, p. 10, 15
Mar 2025TOU-GS-2-E1,45121$874.69$0.60304/02/2025, p. 5, 9
Apr 2025TOU-GS-2-E1,45021$889.36$0.61305/02/2025, p. 5, 8
May 2025TOU-GS-2-E2,64522$1,114.43$0.42106/04/2025, p. 5, 6
Jun 2025TOU-GS-2-E2,82921$1,871.20$0.66107/03/2025, p. 7, 13
Jul 2025TOU-GS-2-E3,22324$2,220.04$0.68908/04/2025, p. 5, 8
Aug 2025TOU-GS-2-E3,79227$2,427.07$0.64009/03/2025, p. 5, 8
Sep 2025TOU-GS-2-E4,34719$2,385.46 incl. -29.13 correction$0.54910/02/2025, p. 5, 8
Oct 2025TOU-GS-2-E2,28019$1,094.15$0.48010/31/2025, p. 5, 9
Nov 2025TOU-GS-2-E1,72221$997.18$0.57912/03/2025, p. 5, 8
Dec 2025TOU-GS-2-E1,56313$814.98$0.52101/05/2026, p. 5, 8
Jan 2026TOU-GS-2-E1,83519$1,035.32$0.56402/04/2026, p. 5, 9
Feb 2026TOU-GS-2-E1,63218$876.05$0.53703/09/2026, p. 7
Mar 2026TOU-GS-2-E2,02318$922.69$0.45604/06/2026, p. 7
Apr 2026TOU-GS-2-E2,03014$839.37$0.41305/04/2026, p. 7
May 2026TOU-GS-2-E2,28214$887.58$0.38906/08/2026, p. 8
Jun 2026TOU-GS-2-E2,72416$1,578.56$0.58007/07/2026, p. 7
Jul 2026TOU-GS-2-E3,79821$2,158.16$0.56808/03/2026, p. 7
Aug 2026TOU-GS-2-E3,63019$2,385.69$0.65708/31/2026, p. 7

Amber rows: the three 21 kW readings that triggered the move.

Meter B, still on TOU-GS-1

Usage monthRatekWhMax kWCurrent charges$/kWhStatement, page
Jun 2024TOU-GS-1-E1843$66.78$0.36307/02/2024, p. 7, 9
Jul 2024TOU-GS-1-E1,0275$370.12$0.36008/02/2024, p. 7, 9
Aug 2024TOU-GS-1-E7413$279.23$0.37709/03/2024, p. 7, 9
Sep 2024TOU-GS-1-E8856$346.60$0.39210/02/2024, p. 7, 9
Oct 2024TOU-GS-1-E1,37310$369.86$0.26910/31/2024, p. 8, 10
Nov 2024TOU-GS-1-E2,16810$715.71$0.33012/03/2024, p. 7, 9
Dec 2024TOU-GS-1-E2,30110$757.29$0.32901/03/2025, p. 7, 9
Jan 2025TOU-GS-1-E2,35611$811.10$0.34403/26/2025, p. 8, 14
Feb 2025TOU-GS-1-E2,68713$930.45$0.34603/26/2025, p. 12, 16
Mar 2025TOU-GS-1-E2,98111$948.40$0.31804/02/2025, p. 8, 11
Apr 2025TOU-GS-1-E2,77613$828.68$0.29905/02/2025, p. 7; 07/03/2025, p. 11
May 2025TOU-GS-1-E3,02713$966.93$0.31907/03/2025, p. 5, 12
Jun 2025TOU-GS-1-E2,93813$1,117.93$0.38107/03/2025, p. 10, 15
Jul 2025TOU-GS-1-E3,04813$1,180.92$0.38708/04/2025, p. 7, 10
Aug 2025TOU-GS-1-E3,21314$1,237.39$0.38509/03/2025, p. 7, 9
Sep 2025TOU-GS-1-E3,57613$1,359.97 incl. -1.52 correction$0.38010/02/2025, p. 7, 9
Oct 2025TOU-GS-1-E3,05911$963.46$0.31510/31/2025, p. 8, 11
Nov 2025TOU-GS-1-E3,29014$1,087.15$0.33012/03/2025, p. 7, 9
Dec 2025TOU-GS-1-E3,01313$991.62$0.32901/05/2026, p. 7, 9
Jan 2026TOU-GS-1-E3,22613$1,135.58$0.35202/04/2026, p. 7, 11
Feb 2026TOU-GS-1-E3,16513$911.24$0.28803/09/2026, p. 5
Mar 2026TOU-GS-1-E2,81513$784.24$0.27904/06/2026, p. 5
Apr 2026TOU-GS-1-E2,93311$756.91$0.25805/04/2026, p. 5
May 2026TOU-GS-1-E3,29011$887.50$0.27006/08/2026, p. 5
Jun 2026TOU-GS-1-E3,19013$911.11$0.28607/07/2026, p. 5
Jul 2026TOU-GS-1-E3,05713$925.61$0.30308/03/2026, p. 5
Aug 2026TOU-GS-1-E3,06013$1,158.64$0.37908/31/2026, p. 5

Current charges are the meter’s new charges for the period, before any account balance. Two Meter B periods, May and Jun 2025, were billed late on the 07/03/2025 statement.

Sources

SCE rate rule

Clean Power Alliance default

CPUC cases

Santa Monica

Who is behind this

Greg Spero runs The Recording Club, a recording studio and music club at 1660 9th Street, Santa Monica. He is a musician and the studio’s owner (gregspero.com). Every figure on this page comes from the studio’s own SCE statements or the public sources listed above.

Questions, corrections or a bill of your own to compare: greg@therecording.club Email Greg