Edison International EIX
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/01/2012

Operator: Good afternoon. My name is Gabriela and I will be your conference operator today. At this time, I would like to welcome everyone to the Edison International Third Quarter 2012 Financial Teleconference. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session. Today's call is being recorded.

I would now like to turn the call over to Mr. Scott Cunningham, Vice President of Investor Relations. Thank you. Mr. Cunningham, you may begin your conference.

Scott S. Cunningham - VP, IR: Thanks very much and good afternoon, everyone. Our principal speakers today will be Chairman and CEO, Ted Craver; and Chief Financial Officer, Jim Scilacci. Also with us are other members of the management team.

The presentation that accompanies Jim's comments, the earnings press release and our SEC filings are available on our website at We will be using these and other slides in our regular quarterly business update presentation that will be issued next week for our ongoing investor discussions.

During this call, we will make forward-looking statements about the financial outlook for Edison International and its subsidiaries, and about other future events. Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings. We urge you to read these carefully.

The presentation includes certain outlook assumptions, as well as reconciliation of non-GAAP measures to the nearest GAAP measure.

When we get to Q&A, please limit yourself to one question and one-follow-up. If you have further questions, please return to the queue.

With that, I'll turn the call over to Ted Craver.

Theodore F. Craver Jr. - Chairman, President and CEO: Thank you Scott and good afternoon everyone. Today, Edison International reported third quarter GAAP earnings of $0.58 per share compared with to $1.31 per share a year ago. Core earnings were $0.72 per share compared with $1.26 per share a year ago.

The decrease in earnings was primarily due to three factors, losses at Edison Mission Group, a delay in the California Public Utilities Commission final decision on SCE’s 2012 general rate case, and an increase in holding company costs due to state tax adjustments.

Jim Scilacci will provide additional details on the quarter in his remarks.

There are three main areas on which I will focus my comments this afternoon, our restructuring efforts at Edison Mission Energy; the recently received proposed decision on SCE’s 2012 general rate case, and an update on the San Onofre Nuclear Generating Station, or SONGS as we call it.

Let me start with Edison Mission Energy. In past earnings calls I have explained Edison International’s overall strategy. We believe the most effective way to participate in the growth opportunities arising from the substantial changes occurring in the electric power industry is through a dual platform of regulated and competitive businesses.

However we are acutely aware that the competitive generation sector has been deeply challenged for some time by cyclically low margins and capacity values. For the last years EME has focused on developing innovative approaches to environmental compliance and careful capital stewardship principally as a means to buy time for a recovery in power markets and energy margins and stabilize the company.

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