Southern California Edison’s fourth-quarter 2015 core earnings decreased by $66 million, or 20 cents per share, from the same period in 2014, parent company Edison International said Tuesday.
In the earnings report, Edison said the SCE decrease stemmed mainly from lower authorized California Public Utilities Commission (CPUC) revenue tied to implementation of the 2015 CPUC General Rate Case (GRC) decision, and higher income taxes, which were partially offset by lower operation and maintenance costs.
The 2015 general rate case, in which CPUC altered SCE’s rates, resulted in $451 million less revenue for the year, compared to 2014. Also impacting revenue was a $17 million fine CPUC levied in December for violations tied to alleged ex-parte communication between a former SCE company executive and former state regulator in 2013, where the two allegedly discussed the San Onofre Nuclear Generating Station settlement agreement, which resulted in utility customers shouldering 70 percent of shutdown costs. That amount was recorded in the fourth quarter as part of operation and maintenance costs. The earnings report excluded SCE income of $24 million related to the impact anticipated from the revised settlement agreement, as well as $41 million in revenue related to discontinued operations at the plant.
Edison International’s quarterly core earnings of $287 million, $0.88 per share, were down from $355 million, $1.08 per share, year over year.
“Our results are well ahead of earnings guidance and reflect SCE’s strong rate base growth and continued focus on operational excellence,” Edison International Chairman and CEO Ted Craver said in a press release. “With the potential for continued long-term growth and productivity improvements at SCE along with continued development of Edison Energy Group’s businesses, Edison International is well-positioned in a rapidly changing industry.”
For the year, SCE core earnings decreased by $157 million, or 48 cents per share, from 2014. The report said the decrease related to lower CPUC-related revenue from the 2015 GRC decision.
