8-KRegulation FD

EDISON INTERNATIONAL 8-K Report, Regulation FD Disclosure (Sep 19, 2008)

Filed September 19, 2008For Securities:EIX

Summary

This Form 8-K filing from Edison International (EIX) reports on a decision by the California Public Utilities Commission (CPUC) regarding performance-based ratemaking (PBR) rewards for its subsidiary, Southern California Edison Company. The CPUC's decision disallowed certain PBR rewards related to customer satisfaction and employee safety, resulting in a non-recurring charge of approximately $52 million (or $0.16 per share) after-tax to be recorded in the third quarter of 2008. While this charge impacts the current quarter's earnings, investors should note that the company had previously established a reserve of approximately $52 million, pre-tax, plus interest, in connection with this PBR proceeding. This implies that a significant portion of the financial impact may have already been anticipated or accounted for in prior financial statements. Investors are advised to consult Edison International's prior filings, particularly the second quarter 2008 Form 10-Q, for further details on the PBR proceedings and financial reserves.

Key Highlights

  • 1Edison International's subsidiary, Southern California Edison Company, received a CPUC decision on a PBR rewards appeal.
  • 2The decision disallowed past and potential PBR rewards in customer satisfaction and employee safety.
  • 3A non-recurring charge of approximately $52 million (after-tax) will be recorded in Q3 2008.
  • 4This charge translates to an estimated $0.16 per share impact.
  • 5The company had previously set aside a reserve of approximately $52 million (pre-tax) plus interest for this PBR proceeding.
  • 6The information is provided under Regulation FD disclosure and is not considered 'filed' for the purpose of the Exchange Act.
  • 7Investors are directed to refer to EIX's 2007 10-K and subsequent 10-Q filings for more context.

Frequently Asked Questions

The main financial impact is a non-recurring charge of approximately $52 million (after-tax), or $0.16 per share, that Edison International's subsidiary, Southern California Edison Company, will record in the third quarter of 2008 due to a California Public Utilities Commission decision disallowing certain performance-based ratemaking rewards.

While the charge is a current quarter impact, the company had previously recorded a reserve of approximately $52 million (pre-tax), plus interest, in connection with this specific PBR proceeding. This suggests that a significant portion of the financial impact may have been anticipated or already provisioned for in prior periods.

The decision by the California Public Utilities Commission pertains to performance-based ratemaking (PBR) rewards for Southern California Edison Company, specifically in the areas of customer satisfaction and employee safety.

This is a non-recurring charge related to a regulatory decision on past PBR rewards. While it impacts the third quarter earnings, the company had already established a reserve for this issue, indicating it's a known event rather than a sudden operational problem. Investors should review EIX's previous filings for a complete understanding of the PBR proceedings.