Media relations contact: Charles Coleman (626) 302-7982
Investor relations contact: Scott Cunningham (626) 302-2540
ROSEMEAD, Calif., July 31, 2012 – Edison International (NYSE: EIX) today reported second quarter 2012 basic earnings of $0.23 per share, compared to basic earnings of $0.54 per share in the same quarter last year. Second quarter 2012 core earnings were $0.32 per share, compared to core earnings of $0.56 per share in the second quarter of 2011.
The decrease in earnings was primarily related to losses at Edison Mission Group (EMG) and to a delay in the 2012 rate case decision at Southern California Edison (SCE). SCE incurred higher costs in the quarter to support its ongoing infrastructure investment programs, but the increased revenues to support these investment programs are pending a decision from California regulators.
“Second quarter results reflect higher, unrecovered costs at SCE, which will be addressed with a final rate case decision, and continued inspection and repair costs related to the San Onofre Nuclear Station outage, which we will look to recover in the future,” said Ted Craver, chairman and chief executive officer of Edison International. “We also saw increased losses at EMG, reflecting poor power prices. This further underscores the need to restructure and stabilize our competitive generation business.”
Second Quarter Earnings Detail
SCE’s second quarter 2012 basic and core earnings were $0.59 per share compared to $0.65 per share in the second quarter of 2011. The core earnings decrease was primarily due to a delay in the 2012 California Public Utilities Commission (CPUC) General Rate Case decision as higher depreciation and interest expenses are not being recovered in currently authorized revenue. The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2012. SCE also incurred $0.05 per share of incremental steam generator inspection and repair costs related to outages at San Onofre Nuclear Generating Station. These are currently being offset by other operation and maintenance cost reductions.
EMG’s second quarter 2012 basic losses were $(0.34) per share compared to losses of $(0.09) per share in the second quarter of 2011. Core losses were $(0.25) per share compared to losses of $(0.07) per share in the same quarter last year. Core losses increased primarily due to lower average realized energy and capacity prices and higher fuel prices, partially offset by lower planned maintenance costs at Midwest Generation; lower distributions from the Doga project; decreased energy trading revenues; lower renewable energy income; and higher interest expense from new project financings. Non-core items for both quarters included the results for Homer City in anticipation of its transfer to the owner-lessors.
Edison International parent company and other reported a second quarter basic and core loss of $(0.02) per share in both periods.
Year-to-Date Earnings Summary
Edison International reported basic earnings of $0.51 per share for the six-month period ending June 30, 2012, compared to $1.15 per share for the same period last year. Core earnings for the first six months of 2012 were $0.67 per share compared to $1.21 per share for the first half of 2011.
Year-to-Date Earnings Detail
SCE’s year-to-date 2012 basic and core earnings were $1.14 per share compared to $1.33 per share for the same period last year. The core earnings decrease was primarily due to a delay in the 2012 CPUC General Rate Case decision as higher depreciation and interest expenses are not being recovered in currently authorized revenue. The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2012. SCE also incurred $0.09 per share of incremental steam generator inspection and repair costs related to outages at San Onofre Nuclear Generating Station. These are currently being offset by other operation and maintenance cost reductions. The decrease also reflects a lower capitalization rate on funds used during construction.
EMG’s basic losses were $(0.59) per share compared to basic losses of $(0.16) per share in the prior-year period. Core losses were $(0.43) per share compared to core losses of $(0.10) per share in the first half of 2011. Core losses in the first half of 2012 increased primarily due to lower average realized energy and capacity prices, higher fuel prices, and reduced generation, partially offset by lower planned maintenance costs at Midwest Generation; lower distributions from the Doga project; an increase in interest expense from new project financings; and a decrease in energy trading. Non-core items for both periods included the results for Homer City in anticipation of its transfer to the owner-lessors.
Edison International parent company and other basic and core losses in the first half of 2012 were $(0.04) per share compared to basic and core losses of $(0.02) per share in the first half of 2011.
2012 Earnings Guidance
The company will not provide 2012 earnings guidance until SCE receives a final decision on its 2012 CPUC General Rate Case. See the risk disclosure statement on page 4 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.
About Edison International
Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business.
-# # #-
