Edison International Advances on San Onofre Negotiations
Edison, based in Rosemead, California, was 4.3 percent higher at $54.26 as of 12:25 p.m. in New York after earlier climbing the most intraday since February last year.
Negotiations are scheduled for March 27, Edison said today in a filing. Participants will include California regulatory staff, as well as The Utility Reform Network, a customer group, and Sempra Energy (SRE)’s San Diego Electric & Gas, part owner of the plant. In the event of a settlement, Edison said its Southern California Edison unit expects to record a charge of $100 million this quarter.
“If this got resolved it would certainly be real positive for shareholders,” Kit Konolige, an analyst for BGC Partners LP in New York, said today in a telephone interview. He rates the shares at buy and owns none. “It’s been the biggest risk factor for the stock.”
Edison in June announced the retirement of both reactors at the plant because it may take too long for regulators to decide whether they could restart. The plant had stopped producing power in 2012 after it leaked radioactive water.
That left Edison an investment of $2.1 billion in the plant and potential customer refunds of $1.3 billion, Chief Executive Officer Ted Craver said June 7.
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