Electric utility Edison International (EIX) announced that its unit Southern California Edison (SCE) has signed 21 contracts to purchase nearly 259 megawatts (MW) of renewable power, which can light up 168,000 average homes.
Out of these contracts, 20 are for electricity produced by solar photovoltaic projects, and 1 is for 19.5 MW of wind power. Edison’s unit has signed the majority of these agreements with San Francisco based solar PV firm Silverado Power.
The renewable power contracts are a result of Southern California Edison’s 2010 Renewables Standard Contracts Request for Offers, a voluntary renewable procurement program for small projects that SCE has held for several years.
Southern California Edison is committed to procure renewable power and lower the emission of green house gas. In 2009, SCE supplied 17% of its customers’ energy needs through renewable energy and is scheduled to supply 19% to 20% of its power from renewable resources in 2010.
The Southern California unit accounts for roughly 80% of total revenue of Edison International. The company has been active in purchasing alternate and renewable energy over the last few years. Since 2002, the company has entered into more than a hundred contracts, which are capable of procuring about 31.2 billion kilowatt-hours per year of renewable energy.
The adjusted earnings per share of Edison International at the end of third-quarter 2010 were $1.46 versus $1.09 in the comparable year-ago period. On the third quarter earnings call, the company raised its earnings estimates for 2010 to $3.45–$3.60 per share from the previous guidance of $3.15–$3.45 per share, based on strong year-to-date performance.
The Zacks Consensus Estimates for fourth quarter 2010, fiscal year 2010 and fiscal year 2011 are 64 cents per share, $3.50 per share and $3.00 per share, respectively.
The major peers of the company are The AES Corporation (AES), Sempra Energy (SRE) and PG & E Corp. (PCG). On a competitive landscape the net margins of Edison International fared better than its peers in the trailing twelve months.
Edison International currently retains a Zacks #3 Rank (short-term Hold rating). We maintain our long-tern Neutral rating on the stock.
Based in Rosemead, California, Edison International engages in the supply of electric energy in central, coastal, and southern California.
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