Businesses face double whammy from Edison, AQMD.

IF it's not enough that gasoline and basic materials costs are going through the roof, government regulators are either about to impose or approve a series of fee and rate hikes that will hit local businesses hard.

The state Public Utilities Commission is set to vote Thursday on Southern California Edison's request for rate hikes totaling 1.5 percent for the second half of 2006, on top of 13 percent in rate hikes already approved for this year.

This move caps a complex two-year rate case in which Edison and the PUC went back and forth over the utility's revenue requirements. It also comes on top of emergency rate increases granted earlier this year to offset higher natural gas costs.

Edison serves customers throughout most of L.A. County, except for cities like Los Angeles, Burbank and Pasadena that have their own utilities. But business owners who live in Los Angeles may not escape higher energy costs. An outside audit of the L.A. Department of Water & Power recommended a surcharge to fund the use of more "green power" energy sources. The same audit recommended a 7 percent hike in water rates over two years for DWP customers.

Meanwhile, the South Coast Air Quality Management District is proposing to increase fees for all businesses required to obtain permits from the agency to offset a budget deficit of up to $7 million for the next fiscal year beginning July 1.

Two proposals are on the table for the AQMD's June meeting. One would increase most fees by 3.7 percent for 2006-07, the same amount as the Consumer Price Index. The other would hike most fees 10 percent for each of the next three years.

Staff reporter Howard Fine can be reached by phone at [phone], ext. 227, or by email at [e-mail].