Edison International Reports Financial Results for the First Quarter of 2002

May 03, 2002

May 3, 2002

Rosemead, Calif., May 3, 2002--Edison International (EIX) recorded core earnings per share of 26 cents in the first quarter of 2002, compared to 10 cents in the first quarter of 2001.  Core earnings exclude procurement-related adjustments at Southern California Edison (SCE) and earnings from discontinued operations recorded in 2001.

First Quarter Earnings Detail

Earnings (Loss) from Continuing Operations

SCE earned $146 million in the first quarter of 2002, compared with $63 million in the same period last year, excluding a procurement-related adjustment of $661 million in the first quarter of 2001.  The $83 million increase primarily reflects increased income from San Onofre Nuclear Generating Station Units 2&3 due to the absence of an outage in the first quarter of 2002, as compared with 2001, and lower net interest expense.

In the first quarter of 2001, SCE reported an after-tax earnings charge of $661 million, or $2.03 per share, reflecting the amount of procurement-related costs that, at that time, were no longer considered probable of recovery through customer rates.  In the January 2002 California Public Utilities Commission’s (CPUC) decision approving the creation of the Procurement-Related Obligations Account (PROACT), pursuant to the settlement agreement between SCE and the CPUC, recovery of SCE’s procurement-related obligations became probable and SCE recorded the PROACT balancing account as a regulatory asset.
 
Edison Mission Energy's (EME) first quarter 2002 loss from continuing operations was $36 million compared to a loss of $11 million in the same period last year.  The increased loss of $25 million is primarily due to lower U.S. energy prices in the first quarter of 2002 compared to the first quarter of 2001, an unplanned outage at the Homer City plant and gains during the first quarter of 2001 related to gas swaps for EME's oil and gas activities.  These impacts were partially offset by income from the Paiton project in Indonesia and improved operating results from EME's Illinois plants.  EME's earnings are seasonal with higher earnings expected during the summer months and operating losses expected during the fall and winter months.       

Edison Capital’s earnings for the first quarter of 2002 were $19 million, up $7 million from the same period last year.  This increase is due primarily to lower expenses and a gain related to foreign exchange.  This was partially offset by lower income due to a year-over-year decline in earnings assets.       

The $22 million loss at Mission Energy Holding Company reflects the interest expense from the mid-2001 financing.  EIX parent company’s loss decreased $9 million primarily from lower interest expense.

2001 Earnings (Loss) from Discontinued Operations

The 2001 first quarter financial results include earnings from discontinued operations of $12 million, reflecting net income from the Fiddler’s Ferry and Ferrybridge (FFF) Projects of $19 million, or six cents per share, and a loss from Edison Enterprises of $7 million, or two cents per share.

2002 First Quarter Reported Earnings

For the first quarter of 2002, Edison International recorded earnings of $84 million, or 26 cents per share, versus a loss of $617 million, or $1.89 per share, for the first quarter of 2001.

Quarter Ended March 31,

Earnings (Loss) Per Share

2002

2001

Change

  Southern California Edison

$0.45

$0.19

$0.26

  Edison Mission Energy

(0.11)

(0.03)

(0.08)

  Edison Capital

0.06

0.04

0.02

  Mission Energy Holding Co.

(0.07)

--

(0.07)

  EIX parent company

(0.07)

(0.10)

0.03

Edison International Core Earnings

0.26

0.10

0.16

  
  SCE procurement-
  related adjustment

--

(2.03)

2.03

EIX Consol. Earnings (Loss) from Continuing Operations

0.26

(1.93)

2.19

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Earnings (Loss) from Discontinued Ops.
  EME’s FFF Projects

--

0.06

(0.06)

  Edison Enterprises Companies

--

(0.02)

0.02

EIX Consol. Earnings from Discontinued Ops.

--

0.04

(0.04)

===========================

Total EIX Consolidated Earnings (Loss)

$0.26 

$(1.89)

$2.15

===========================

Quarter Ended March 31,

Earnings (Loss) (in millions)

2002

2001

Change

  Southern California Edison

$146

$63

$83

  Edison Mission Energy

(36)

(11)

(25)

  Edison Capital

19

12

7

  Mission Energy Holding Co.

(22)

--

(22)

  EIX parent company

(23)

(32)

9

Edison International Core Earnings

84

32

52

  
  SCE procurement-
  related adjustment

--

(661)

661

EIX Consol. Earnings (Loss) from Continuing Ops.

84

(629)

713

===========================

Earnings (Loss) from Discontinued Ops.
  EME’s FFF Projects

--

19

(19)

  Edison Enterprises Companies

--

(7)

7

EIX Consol. Earnings from Discontinued Ops.

--

12

(12)

===========================

Total EIX Consolidated Earnings (Loss)

$84

$(617)

$701

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