Survey Scandal Could Cost Edison $200 Million

A Public Utilities Commission judge has agreed with TURN that Southern California Edison should refund $160 million to customers and has also ordered Edison to pay $40 million in fines.   The refunds and fines are the result of fraud and manipulation by southern California's largest electric company.  Edison collected $160 million profits and employee bonuses from customers for its alleged superior customer service and safety performance in 1997-2003 after falsifying data from customer surveys.  The phony data enabled Edison to profit from the PUC's performance incentive mechanism, designed to reward the utility for good customer service and safety.

"Edison will be refunding money that never belonged to the company to begin with," said TURN Staff Attorney Marcel Hawiger.  "Rather than solving real customer service problems caused by inadequate staffing and training, Edison falsified data to enrich shareholders and management.  The judge correctly concluded that Edison should return the $160 million to its rightful owners, Edison customers."

Administrative Law Judge Robert Barnett found that rather than being the fault of a few bad apples, Edison's survey apparatus was rotten to the core, and that senior management actively encouraged data falsification to enrich themselves and the company.  Absent appeals or objections from the PUC Commissioners themselves, Judge Barnett's decision will become final in 30 days.      TURN, California's utility watchdog, worked with other consumer advocates to prove that refunds and penalties were appropriate in the case.