As has been the case in previous quarterly earnings reports, California’s wildfires dominated the first-quarter financial picture for public utility company Edison International 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 earnings teleconference 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. “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.
Edison’s overall net income for the quarter landed at $278 million, or $0.85 per share. That spiked from $218 million, $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.
