Summary
Edison International, through its subsidiary Southern California Edison Company (SCE), announced on November 8, 2010, an agreement to sell its ownership interest in Units 4 and 5 of the Four Corners coal-fired electric generating facility. This sale represents a strategic move away from coal-fired generation. The buyer is the operator of the facility, Arizona Public Service Company, and the sale price is $294 million, subject to adjustments. Importantly for investors, the after-tax gain from this sale will benefit SCE's ratepayers and will not impact SCE's earnings. Furthermore, the transaction is not expected to have a material impact on SCE's rate base. The closing of the sale is subject to various regulatory approvals and other conditions, with an estimated completion in the second half of 2012. This divestiture aligns with a potential shift in Edison International's energy portfolio.
Key Highlights
- 1Southern California Edison (SCE) to sell ownership interest in Four Corners coal-fired plant (Units 4 & 5).
- 2Sale price of $294 million, subject to certain adjustments.
- 3After-tax gain from the sale will benefit SCE's ratepayers, not impact SCE's earnings.
- 4Transaction will not have a material impact on SCE's rate base.
- 5Sale contingent on regulatory approvals, lease amendments, coal supply contract, and other closing conditions.
- 6Estimated sale closing in the second half of 2012.
- 7Arizona Public Service Company is the buyer, also the facility operator.