Edison International (EIX, Financial)(2.4%) (EIX – $63.07 – NYSE) is one of the nation’s largest regulated electric utilities through Southern California Edison (SCE), serving fourteen million residents (five million customers) in central, coastal, and southern California. In early 2014, EIX completed the sale of its bankrupt non-regulated generation business, Edison Mission Energy (EME), to NRG Energy (0.2%). In addition, on March 27, 2014, EIX reached a settlement agreement regarding recovery of the San Onofre Nuclear Generating Station (SONGS) units. Though the docket may be reopened, the settlement helped to minimize a major uncertainty for the company. As a result, EIX is a high quality regulated utility operating in a constructive California regulatory environment. The company continues to await a decision on its 2015-2017 General Rate Case, but rates will be retroactive to January 1, 2015. We continue to expect the utility to benefit from rate cases, ongoing constructive California regulatory mechanisms, and 7%-9% projected average annual rate base growth, driven by an $11.5 billion - $13.1 billion capital program through 2017.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Industrials Fund shareholder commentary for third quarter 2015.
