Citing dampened utility results mostly from a planned nuclear plant refueling, Rosemead, CA-based Edison International Wednesday reported first-quarter results that were down 34% compared with the same period last year (17 cents/share, compared with 26 cents/share for the first quarter, 2002). The utility holding company for Southern California Edison Co. said the results might have been worse without improved performance in its merchant energy sector.

The utility reported earnings of 31 cents/share, compared with 45 cents/share for the first quarter last year. In the merchant unit, Edision Mission Energy (EME), had a one-time 3-cents/share, or $9 million, charge for a change in accounting principle and another 2 cents/share charge for discontinued EME operations. Nevertheless, overall the merchant unit reported a much smaller loss for the first quarter (2 cents/share), compared with a loss of 13 cents/share in the same period in 2002.

“We have made solid progress in the first quarter of 2003,” said John Bryson, Edison International’s CEO, who noted that the utility “continued its trend of good performance” and EME had a first quarter outcome that was “better than expected.” “We remain on course toward our long-term goal of overall financial health and flexibility.”

SoCal Edison utility operations earned $102 million in the first quarter, down from $146 million in the same period last year. The company said the $44 million decrease was primarily a reflection of the planned refueling at its San Onofre Nuclear Generating Plant during the first quarter, along with what it called “higher operating and maintenance expenses” tied to health care and storm damage.

For EME, the first quarter loss equated to $8 million, compared with a loss of $41 million for the first quarter of 2002. The $33 million improvement was “primarily due to higher U.S. energy prices” in the first quarter compared to a year earlier, Edison said. The charge for the accounting change related to a new accounting standard for recording asset retirement obligations that the parent company adopted this year, Edison said, however, it did not apply to the utility, which follows accounting guidelines for rate-regulated enterprises.

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