Edison’s San Onofre Nuclear Plant Costs Top $400 Million

Edison International (EIX) has spent $402 million on costs associated with its San Onofre nuclear power plant in Southern California that’s been shut for more than a year with damaged steam generators.

Costs for repairs and inspections climbed to $102 million and replacement power expenses rose to $300 million through Dec. 31, Rosemead, California-based Edison said today in a regulatory filing.

State regulators have opened a probe to decide whether Edison can recover costs for its reactors, which have been offline since January 2012 after the company found unusual wear on tubes supplied by Tokyo-based Mitsubishi Heavy Industries Ltd. (7011) The U.S. Nuclear Regulatory Commission is evaluating whether it’s safe for Edison to restart one of the units.

Edison rose 4 percent after the close of trading in New York after reporting fourth quarter adjusted earnings of $1.79 a share, above the $1.05 average of 12 analysts’ estimates compiled by Bloomberg.

Adjusted quarterly results were helped by increased rates at Edison’s utility and excluded a writedown on its generation unit, which filed for bankruptcy protection in December, according to a statement.

Edison sees 2013 adjusted earnings between $3.45 a share to $3.65 a share, above the $3.24 average of 17 analysts’ estimates compiled by Bloomberg.

Edison’s San Onofre losses have been reduced by $37 million, its share of a $45 million payment from Mitsubishi as part of a warranty claim, Chief Financial Officer Jim Scilacci said today during a conference call with investors. Edison has asked for $106 million in repair costs to be covered by Mitsubishi, the company said.

Southern California Edison operates the nuclear plant and owns a 78.2 percent stake. Sempra Energy (SRE)’s San Diego Electric & Gas unit owns 20 percent and the City of Riverside, California, owns 1.8 percent.

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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