By John Stang
Southern California Edison on Thursday reported a significant turnaround in revenue and income for 2019, spurred by higher ratepayer fees.
The utility went from a net loss of $310 million, or a $0.95 loss per share, on $12.6 billion in revenue in 2018 to a 2019 net income of $1.4 billion, or $4.15 per share, on $12.3 billion in revenue.
The massive increase in net income was due to new rates approved by the California Public Utility Commission’s May 2019 ruing in SCE’s general rate case, which sets the amount it can charge customer for the next three years.
Other factors in the income increase were greater revenue from a settlement of a case before the Federal Energy Regulatory Commission, wildfire insurance payments, and resolutions of some other regulatory issues, according to Edison executives and its filing with the U.S. Securities and Exchange Commission.
Parent corporation Edison International’s net income for 2019 was $1.4 billion on $12.35 billion in revenue. By comparison in 2018, the parent corporation lost $316 million on $12.7 billion in revenue.
For the fourth quarter of 2019, Southern California Edison posted net income of $194 million, or $0.54 per share, compared to a net loss of $1.4 billion, or $4.38 loss per share, in the same period of 2018. Edison International had a fourth quarter 2019 net loss of $51 million, or $0.14 loss per share, compared to a net loss of $35 million, or $0.11 loss per share, reported in fourth-quarter 2018.
The company’s latest earnings report came just days after the start Monday of major decommissioning operations at its retired San Onofre Nuclear Generating Station (SONGS) in San Diego County.
This year’s work consists of setting staging areas in parking lots, preparing a rail line, and tackling preliminary asbestos removal in some buildings. Also, two years’ worth of contamination studies has begun.
The year 2020 might include previously unanticipated work. Southern California Edison has asked the Californian Public Utilities Commission for permission to withdraw $461.8 million from SONGS’ decommissioning trusts, as opposed to the previous $166.3 million estimate drawn up in 2017. The commission expects to rule on this matter in the spring.
The latest estimate includes work not completed in 2018 and 2019, plus work originally scheduled for after 2020.
Southern California Edison permanently shut down SONGS reactor Units 2 and 3 in 2013 after faulty steam generators were installed in both systems. The utility, the plant’s majority owner, hired an AECOM-EnergySolutions joint venture to manage the $4.4 billion decommissioning for the two reactors. Unit 1 was retired in 1992 and has been largely decommissioned.
SONGS Decommissioning Solutions conducted some preparatory work while waiting on the state last year to provide full regulatory approval for decommissioning. Teardown and remediation of the property is supposed to be completed in 2028.
The decommissioning trusts for Units 2 and 3 held $2.8 billion at the end of 2019. Edison’s SEC filing noted that potential future contractual disputes or permitting delays could increase the $4.4 billion cost estimate for decommissioning.
Movement of SONGS spent fuel to dry storage halted for 11 months following an August 2018 mishap in loading a fuel cask into a dry storage pad. The incident left one fuel canister at risk of an 18-foot drop into its storage slot. The operating glitch resulted in a $116,000 fine of SCE by the Nuclear Regulatory Commission and extensive overhauls in procedures, training and equipment.
Southern California Edison and contractor Holtec International are continuing to transfer used fuel from SONGS reactor Units 2 and 3 into dry storage. The 52nd canister is scheduled to be moved today. The 73rd and final canister is expected to be moved this summer.
