By John Stang
As has been the case in previous quarterly earnings reports, California’s wildfires dominated the first-quarter financial picture for Edison International’s and subsidiary Southern California Edison.
Executives made no mention of the retired San Onofre Nuclear Generating Station (SONGS) in Tuesday’s quarterly earnings announcement and accompanying teleconference call with analysts. Edison’s latest filing with the U.S. Securities and Exchange Commission briefly mentioned SONGS, but reported no fresh news about that site.
Southern California Edison, majority owner of SONGS, reported roughly $2.8 billion in revenue for the first quarter of 2019 for a net income of $206 million, which translated to $0.63 per share. That dropped from the first-quarter 2018 numbers of $2.55 billion in revenue for $262 million in net income, or $0.80 per share.
“There was a negative impact of $0.18 due to higher O&M primarily due to wildfire mitigation costs, including enhanced overhead inspections and other preventative maintenance costs,” Edison Chief Financial Officer Maria Rigatti said during the conference call with analysts. “Through our grid safety and resiliency program and 2019 wildfire mitigation plan filings, we’ve regulatory mechanisms in place to track and request recovery of these increased costs.
Southern California Edison power lines have been connected to wildfires in the state in 2017 and 2018.
The largest fire in 2017 covered 280,000 acres in Ventura and Santa Barbara counties, killing two and destroying 1,063 buildings. The largest 2018 fire covered 100,000 acres in Ventura and Los Angeles counties, killing three and destroying 1,643 buildings.
Southern California Edison’s liabilities for those fires are still undetermined and the subject of several lawsuits. The latest was filed a week ago, with Los Angeles County seeking $100 million in damages from SCE to cover firefighting costs, recovery efforts, damage to infrastructure and natural resources, and loss of tax revenue.
“Investigations into the causes of the 2017/2018 Wildfire/Mudslide Events are ongoing and final determinations of liability would only be made during lengthy and complex litigation processes,” said Edison’s SEC filing.
Meanwhile, Edison International’s overall net income for the quarter landed at $278 million on 2.82 billion in revenue, or $0.85 per share. That spiked from $218 million income on 2.65 billion in revenue, leading to $0.67 per share, on a year-over-year basis.
SONGS’ last two operating reactors were permanently retired in 2013 after faulty steam generators were installed in both. Southern California Edison hopes this year to begin major decommissioning operations, pending approval of a necessary coastal development permit from the California Coastal Commission. The commission could consider the permit at its June meeting, an SCE spokesman said Tuesday.
Meanwhile, transfer of the reactors’ used fuel into dry storage remains on hold following an August 2018 mishap that left one canister at risk of dropping nearly 20 feet into its storage slot.
