By John Stang
Earnings reports from two California utilities this week focused far more on the impact of massive wildfires in the state than on their nuclear power plants.
Pacific Gas & Electric Corp. reported an $11.8 billion increase from 2017 to 2018 in wildfire expense such as repairing damages to the utility’s property or to non-utility victims from fires started by sparks from power equipment, according to its 10-K filing with the U.S. Securities and Exchange Commission.
PG&E filed for Chapter 11 bankruptcy protection in January, anticipating facing potential liability for state wildfires in 2017 and 2018 at least $30 billion in damage claims from at least 5,600 potential plaintiffs.
The SEC filing and a corporate news release show PG&E losing $6.83 billion in 2018 on $$16.76 billion in revenue — translating to a loss of $13.25 per share. By comparisons, the utility posted 2017 net income of $1.68 billion in 2017, $3.21 per share, on $13.13 billion in revenue.
For the fourth quarter of 2018, PG&E lost $6.87 billion on $4.01 billion in revenue — meaning a loss of $13.24 per share. The same quarter in 2017 ended with $4.1 billion revenue leading to $114 million in income, translating to $0.22 per share.
The company made little reference to its plans to retire the two reactors at its Diablo Canyon nuclear power plant in 2024 and 2025, as their U.S. Nuclear Regulatory Commission licenses expire. PG&E has said it does not expect its bankruptcy to impact the future closure and decommissioning of the San Luis Obispo County facility, the state’s last operational nuclear power plant.
Wildfires also dominated earnings for Edison International’s and subsidiary Southern California for 2018, including its fourth quarter.
“Mitigating wildlife risks and its impacts continue to be our top priority,” Pedro Pizarro, president of Edison International, said in a Thursday earnings conference call with financial analysts.
Edison International lost $423 million, or $1.30 loss per share, on $12.61 billion in revenue for 2018, according to a company news release. In 2017, Edison reported net income of $565 million, or $1.73 per share, on $12.25 billion in revenue.
At the same time, Southern California Edison lost $1.3 billion, or $4.05 per share, on $12.61 In revenue in 201.
For the fourth quarter of 2018, Edison lost $432 million in income on $3 billion in revenue — compared to losing $545 million in income on $3.2 billion in revenue in 2017, according to the SEC filing. Southern California Edison lost $1.4 billion in income on $2.99 billion in revenue in the fourth quarter of 1918 compared to post $28 million in income in the same quarter in 2017 on $3.1 billion in revenue.
Southern California Edison in 2013 permanently shut down the last two operational reactors in its San Onofre Nuclear Generating Station (SONGS) in San Diego County. It has since then focused on moving the plant’s remaining spent fuel to dry storage and preparing for decommissioning.
The utility in 2018 spent $140 million on cleanup operations at SONGS, compared to $236 million in 2017.
Southern California Edison hopes contractor SONGS Decommissioning Solutions will begin major decommissioning operations this year, pending state regulatory approval. The project, estimated to cost $4.4 billion, is expected to be completed in 2028.
Fuel movement to a dry storage site halted in August 2018 due to a crane mishap that resulted in a canister of spent fuel being hung up for about an hour while being lowered into its slot on the storage pad. The Nuclear Regulatory Commission is considering enforcement action against SCE, including possible fines.
Fuel movement still has not begun again, pending SCE and the NRC being satisfied with practice runs that show the crews have mastered improved procedures, training, and technology.
For the fourth quarter of 2018, Edison reported a net loss of $1.4 billion, or $4.39 loss per share, compared to net loss of $545 million, or $1.67 loss per share, in fourth-quarter 2017.
“The reduction in core earnings was due to the impact of the July 2017 cost of capital decision on (General Rate Case) revenue, higher operation and maintenance expenses related to vegetation management and higher net financing costs. The higher non-core losses for the fourth quarter 2018 were mainly related to the $1.8 billion, or $5.60 per share, after-tax charge recorded at SCE related to wildfire-related claims, net of recoveries, partially offset by the absence of the $448 million, or $1.38 per share, after-tax impairment and other charges related to the Revised San Onofre Settlement Agreement recorded in the fourth quarter 2017,” Edison’s news release said.
