Southern California Edison , the largest subsidiary of Edison International, is the primary electricity supply company for much of Southern California, USA. It provides 14 million people with electricity. However, the Los Angeles Department of Water and Power, San Diego Gas & Electric, Imperial Irrigation District, and some smaller municipal utilities serve substantial portions of the southern California territory. Wikipedia.
News Article | April 18, 2017
A California utility has launched unique systems combining a hybrid battery and gas turbine to produce and store electricity for use during hot summer months and other times when power demand soars. The new Hybrid Electric Gas Turbines are the first of their kind in the world, officials with Southern California Edison and manufacturer General Electric said during an event Monday near Los Angeles. The new systems will reduce greenhouse gas emissions and air pollution by 60 percent and save millions of gallons of cooling water annually, Edison said. There were no numbers on how much consumers might save. But officials said increased reliability and the reduced environmental impact will lead to significant cost reductions for the utility, which will be passed on to customers in the form of lower bills. Edison President Ron Nichols said the twin systems that went online March 30 operate somewhat like a hybrid car - drawing first on the battery, then switching over to the gas turbine if power demands spike. Energy output is combined between turbines and new 10-megawatt lithium-ion battery storage units. As a result, the systems do not burn fuel when they're on stand-by, significantly reducing greenhouse gas emissions. And they can be turned on immediately to push power into the grid to compensate for outages or increased demand. "The battery is there at the flick of a switch," Nichols said. The systems are running in Norwalk and Rancho Cucamonga at plants built to provide extra juice following an especially hot summer that strained the grid. The utility is exploring adding the hybrid systems to three other similar plants. "You don't always get an opportunity to take an existing facility, add some new technology to it, and enhance the value and reduce the cost to customers," Nichols said. The systems will help balance energy supply and demand, especially during evening hours when solar power production drops as customers return home and turn on lights and appliances. California has committed to derive 50 percent of its electricity from renewable sources by 2030. The installation of the hybrid systems is a major step toward that goal, according to Tom Doughty of the California Independent Systems Operator, which manages the state's grid. "For 100 years the grid was largely the same," he said. "Big power stations, significant big wires and reliance on fossil fuels. And now, in the next 10 years, a metamorphosis." Doughty said the hybrid technology introduces crucial flexibility into the state system. "The variability of one technology, or one plant, can be mitigated or managed by others," he said, calling the new system "a thing of beauty."
News Article | April 25, 2017
Researchers have created quantitative models to measure the impact of government incentives and installation costs on commercial solar photovoltaic adoption, providing new insight and predictive capabilities relevant to energy policy WASHINGTON, D.C., April 25, 2017 -- One key goal for renewable energy in the United States is to promote the continued adoption of solar photovoltaic (PV) systems to reduce greenhouse gas emissions and create a clean energy workforce. Federal and state governments are working to strengthen U.S. solar manufacturing to help reduce installation costs, for example. But successfully promoting green energy in the long run will require a better understanding of the decision-making process behind adopting renewable technologies such as solar PV systems. This inspired a group of researchers at the University of California, Riverside, to explore the factors driving commercial customers in Southern California, both large and small, to purchase and install solar PV systems. As the group reports this week in the Journal of Renewable and Sustainable Energy, from AIP Publishing, they built a model for commercial solar PV adoption to quantify the impact of government incentives and solar PV costs. "Gaining a good understanding of the driving factors will help us to evaluate current energy policies and to develop future policies," said Wenyu Wang, a doctoral student in the Department of Electrical and Computer Engineering. "Our work focuses on commercial customers because of the huge role they play in energy consumption." The group believes that their research demonstrates the first quantitative exploration of commercial solar PV adoption mechanics. "Our model is built on top of a framework called a 'Bass diffusion model,' which is typically used to describe the adoption behavior of technology products within a market," Wang said. "To do this, we collected historical solar PV adoption data within Southern California and calibrated our model with historical data." "Our work provides a way to quantify the impact of government incentives and the solar PV cost on solar PV adoption," Wang said. "This can help the state and federal government to evaluate the effects of their policies and to provide a better solar PV adoption forecast to electric utility companies." When the group applied their model to Southern California, they discovered that it's more difficult for commercial users to install solar PV systems in their buildings than residential customers. "A greater percentage of commercial customers occupy leased buildings or share buildings with other businesses," Wang said. "In these situations, it becomes more difficult to 'go solar' because of a need to split the costs and benefits of solar PV systems." And while it may be easy to assume that government incentives and decreasing costs are the main forces driving solar PV adoptions, "we found that they have more impact on larger commercial customers than smaller ones," Wang said. "Another important finding is that smaller businesses encounter more hurdles involved in adopting solar PV systems than larger businesses, a phenomenon known as 'small commercial solar gap.'" This finding is just one example of how this model can be used as a tool to positively impact renewable energy adoption. "Our model can help the government evaluate the impacts of energy policies on the solar PV market and to forecast the future solar adoptions," Wang said. "It can be a useful tool for policymakers to further boost the adoption of solar PV systems." The difficulties encountered by smaller businesses when adopting solar PV systems necessitate "appropriate government incentives and innovative business models to fully exploit the potentials in the commercial solar PV market," Wang said. According to Wang, this modeling also helps grid planners to forecast the amount of solar energy demand so that they can update plans with more accurate solar PV adoption forecasts. The next iteration of their research will look at what appears to be a growing trend in the market of solar technology leasing, and what implications that might have. "Among the newly installed solar PV systems, we're seeing an increasing share of third-party-owned systems, meaning that consumers are increasingly leasing their PV systems," Wang said. "This new trend may further boost the solar PV market, so we're now very interested in quantifying the impact of third-party ownership on promoting solar PV adoptions." This research was supported by a grant from Southern California Edison. The article, "A model for commercial adoption of photovoltaic systems in California," is authored by Wenyu Wang, Nanpeng Yu and Raymond Johnson. The article will appear in Applied Physics Letters April 25, 2017 (DOI: 10.1063/1.4979899). After that date, it can be accessed at http://aip. . Journal of Renewable and Sustainable Energy is an interdisciplinary, peer-reviewed journal covering all areas of renewable and sustainable energy that apply to the physical science and engineering communities.
News Article | April 18, 2017
The community solar program in California is off to a slow start. The program has significant potential to expand the state's solar market, but virtually no developers have shown up to participate. The reasons for this slow start were discussed at a solar developer’s forum held by the state’s major utilities and policymakers on April 5, 2017. In this article, we take a look at the issues raised and the need for program reform. California’s community solar program is formally known as the Enhanced Community Renewables program. The ECR program is part of the larger Green Tariff Shared Renewables program, which was signed into law in 2013; final program rules were adopted in May 2016. Together, these programs require the California investor-owned utilities (IOUs) to procure 600 megawatts of new renewable energy. Under the ECR component of the program, customers can enter into agreements directly with third-party project developers to purchase new clean energy generated by a project located in their community. ECR projects are limited to sizes between 500 kilowatts and 20 megawatts. As we recently reported, the IOUs held their first request for offer (RFO) last fall, which sought to award power-purchase agreements for 170 megawatts of new renewable energy from ECR projects. However, very few bids were submitted in the solicitation, and ultimately no PPAs were awarded. The developer forum was intended to discuss some of the reasons for this lackluster performance. Utility representatives gave a report on the RFO results. In summary, there were few bids overall, and those bids that were submitted failed to meet the eligibility criteria. Here is a summary of the results of the bidding provided by the utilities: The bids that were submitted but not shortlisted failed to meet one or more of the screening requirements intended to ensure that the projects are viable. These screening criteria include the submission of a Phase 2 interconnection study and documentation demonstrating site control over project real estate. Of the 15 bids, 11 failed to meet these eligibility requirements. The four bids that were shortlisted failed to meet the next two criteria. This is where the ECR-specific issues arise. These two criteria are: 1) a demonstration of “community interest” in the project; and 2) submission of a legal opinion from an “AmLaw 100” law firm stating that the community solar offering does constitute a “securities” offering under applicable securities laws. The demonstration of community interest requires that the bidder submit documentation within 60 days of being notified of a contract award that: 1) either customers have “committed to enroll” in 30 percent of the project’s capacity, or customers have submitted “expressions of interest” sufficient to cover 51 percent of the project’s capacity; and 2) at least three separate customers have subscribed to the project. This “community interest” requirement was a hotly discussed topic at the forum. In particular, developers are unhappy with the 60-day timeline that is required here. Developers are required to conduct their own outreach and marketing to potential customers in order to obtain the commitments or expressions of interest. However, under program rules, developers cannot begin marketing to customers until they have submitted their proposed marketing materials to the IOU for approval. This step can take a few weeks to a month or more. Once approved, it can take months for a developer to obtain enough customer commitments and expressions of interest to meet the thresholds required. As such, a developer needs to do this before the 60-day clock begins to run. In this first RFO, some developers came up a little short in meeting the thresholds before the 60 days expired. It appears the IOUs and the California Public Utilities Commission will consider extending this deadline. However, representatives from Southern California Edison mentioned that doing so might require pushing out future RFOs. Under program rules, the IOUs are required to hold two RFOs per year until the full 600 megawatts of capacity is contracted. If you extend the time for meeting community interest thresholds, the IOUs could be in a situation where they do not know how much energy they have finally procured during one solicitation by the time the next solicitation needs to go live. Additionally, all shortlisted bids failed to submit a legal opinion from an AmLaw 100 law firm. "AmLaw 100" refers to the law firm rankings published by American Lawyer magazine. The AmLaw 100 law firms are the top 100 firms in the U.S. in terms of total revenue. Developers at the forum expressed concern over the costs associated with this process. Obtaining a legal opinion like this would require a law firm to analyze the community solar subscription agreements and other materials surrounding the community solar program in light of legal principles governing securities. This can be costly, depending on the time involved and the law firm’s rates. We wrote a legal memorandum for the National Renewable Energy Laboratory a number of years ago addressing the issues involved here. At the forum, CPUC representatives mentioned that they are aware of the costs involved with this securities opinion and are working on a solution. The CPUC recently conducted a workshop to try to identify a more cost-effective way to address securities concerns. As a starting point, we expect that new program rules will allow smaller law firms, with lower billing rates, to provide these opinions. More fundamentally, developers at the forum expressed concern over the economics of the community solar program in California. A combination of low credits to customers and high costs for developers has led to a situation where community solar customers would need to pay a price premium over their existing energy in order to subscribe to a community solar project. Estimates of the amount of the premium vary, but can reach upward of 3 cents per kilowatt-hour, which is considered outside the range many consumers will tolerate. We do not expect a solution to this problem in the immediate future. The IOU representatives at the forum seemed to suggest that low RFO participation was more due to the “newness” of the program than to its poor economic fundamentals. Staff members from the state legislature indicated they were not concerned with this problem because the state’s program was intended for community groups, not professional solar developers. This view reflects one of the political realities that will need to be addressed in any program reform. This is significant because increasing the credits provided under the program will require amendments to the statute underlying this program by the state legislature, not merely action by the CPUC. The IOUs have opened up the second RFO for community solar in California. SDG&E launched its solicitation on March 22, 2017, with a deadline of May 5, 2017 for developers to submit bids. SCE launched its new solicitation on April 7, 2017. PG&E has submitted its request to the CPUC for approval of its next solicitation, which is expected soon. Significantly, there will be approximately 340 megawatts available in this second round of RFOs, since the IOUs are required to include the 170 megawatts that went uncontracted during the last solicitation with the additional 170 megawatts now available. Many people will be watching this solicitation to see how it performs. We expect that some PPAs will be awarded in this new solicitation, particularly from developers that only just missed the community interest requirement in the last RFO. However, absent changes in the program, we expect continued lackluster developer participation in the current RFO. If that occurs, we expect that some changes to the community solar program will be implemented. These changes are likely to simplify and streamline some of the program requirements. Any such changes would require CPUC approval. That is not possible in time for the second RFO that is open now. At best, changes would be implemented in time for the third solicitation, which will be held in the fall of 2017. Furthermore, we do not expect fundamental changes to be put in place in 2017. Major changes to the underlying program economics will likely not take place until 2018, if they occur at all. It remains to be seen whether and how the results of the second RFO will impact the political appetite for these reforms. Brian Orion, of counsel at Stoel Rives, provides project development and transactional and regulatory counseling to clients in the solar, electric vehicle, energy efficiency, energy storage and climate change arenas. He also serves as strategic adviser to the Smart Energy Enterprise Development Zone (SEEDZ) Initiative, a project of Joint Venture Silicon Valley.
News Article | April 27, 2017
Receive press releases from BIA of Southern California: By Email BIASC CEO to Speak at Trending Topics in Contracting for 2017 4th Annual Educational Symposium BIASC CEO Mike Balsamo, has been invited to speak on a panel at the Trending Topics in Contracting for 2017 4th Annual Educational Symposium on Thursday, April 27, 2017 at Brandman University, Irvine. Irvine, CA, April 27, 2017 --( The National Contract Management Association, Orange County will host the day-long educational, networking, and professional development event at the Brandman University in Irvine. The focus of the symposium is education and the best practices and guiding principles for contract management. Balsamo the joins the list of industry professionals at the Symposium along with Virginia Abadessa, Director of Contracts Administration and Materials Management at OCTA; Ryan Segarra Blaney, Esq., who manages contracts for the Advanced Technology Division of Southern California Edison; Lauren Casapulla Contracts Manager, Tecolote Research, Inc., Goleta, CA; Nick Sanders Manager, Government Compliance, General Atomics Aeronautical Systems, Inc., and Apogee Consulting, Inc.; Pamela L. Solis, CCCM, CFCM, CPCM, Fellow, Lead Manager, RRS Contracts, Harris Corp. – Electronic Systems; Dean G. Stathakis, Ph.D., Esq., Registered patent attorney and President/Chief Operations Officer of One3 IP Management; Glenn Sweatt, Esq., Counsel, Pillsbury Law, Palo Alto, CA, Government Contracts & Disputes Practice; and Edward Velasquez, CPCM, NCMA Fellow, President and CEO of Capitol GCS, Inc. About the Building Industry Association of Southern California, Inc.: BIASC is a full-service organization providing legislative advocacy, educational programming, labor relations, networking, and community relations. The association objective is to promote a positive business environment for the building industry. http://www.biasc.org/ Irvine, CA, April 27, 2017 --( PR.com )-- The Building Industry Association of Southern California, Inc. (BIASC) CEO Mike Balsamo has been invited to speak on a panel at the Trending Topics in Contracting for 2017 4th Annual Educational Symposium on Thursday, April 27, 2017 at Brandman University, Irvine. Balsamo will give a talk titled, Current Trends in Residential Construction Contracting, at 1:30 p.m.The National Contract Management Association, Orange County will host the day-long educational, networking, and professional development event at the Brandman University in Irvine. The focus of the symposium is education and the best practices and guiding principles for contract management.Balsamo the joins the list of industry professionals at the Symposium along with Virginia Abadessa, Director of Contracts Administration and Materials Management at OCTA; Ryan Segarra Blaney, Esq., who manages contracts for the Advanced Technology Division of Southern California Edison; Lauren Casapulla Contracts Manager, Tecolote Research, Inc., Goleta, CA; Nick Sanders Manager, Government Compliance, General Atomics Aeronautical Systems, Inc., and Apogee Consulting, Inc.; Pamela L. Solis, CCCM, CFCM, CPCM, Fellow, Lead Manager, RRS Contracts, Harris Corp. – Electronic Systems; Dean G. Stathakis, Ph.D., Esq., Registered patent attorney and President/Chief Operations Officer of One3 IP Management; Glenn Sweatt, Esq., Counsel, Pillsbury Law, Palo Alto, CA, Government Contracts & Disputes Practice; and Edward Velasquez, CPCM, NCMA Fellow, President and CEO of Capitol GCS, Inc.About the Building Industry Association of Southern California, Inc.:BIASC is a full-service organization providing legislative advocacy, educational programming, labor relations, networking, and community relations. The association objective is to promote a positive business environment for the building industry. http://www.biasc.org/ Click here to view the list of recent Press Releases from BIA of Southern California
News Article | April 19, 2017
-- Edison International President and CEO Pedro J. Pizarro presented Don Bosco Technical Institute (Bosco Tech) senior Willam Ramos with a 2017 Edison International Scholar award and scholarship on April 10.Ramos, who will begin his studies in chemistry at California Polytechnic State University, San Luis Obispo (SLO) this fall, was one of 1,200 applicants for the scholarship that is annually awarded to 30 high-achieving high school seniors within Edison's broad service area who plan to pursue STEM degrees at four-year colleges and universities."Edison International congratulates this year's outstanding scholars," said Pizarro. "Through their pursuit of science, technology, engineering and math, we believe these students will make important contributions to our communities and society. We are proud to support them."Ramos, who was surprised and excited to receive the Edison award, is studying Materials Science, Engineering & Technology (MSET). He is a member of the school's award-winning band, a Youth Ministry program leader, and a Bosco Tech Ambassador."William truly epitomizes what a Bosco Tech student is," said Bosco Tech President Xavier Jimenez. "He is an intelligent, inquisitive student who wholeheartedly applies himself to his studies and who appreciates the opportunity to learn. He plans to become a teacher in order to instill in other young people a love of science. We're thrilled that Edison International has recognized William's abilities and potential."Celebrating its sixty second year, Bosco Tech is an all-male Catholic high school that combines a rigorous college-preparatory program with a technology-focused education. The innovative STEM curriculum allows students to exceed university admission requirements while completing extensive integrated coursework in one of five applied science and engineering fields. Each year for the past several years, one hundred percent of the graduating class has earned college acceptances. Visit www.boscotech.edu for more information.Edison International, through its subsidiaries, is a generator and distributor of electric power, as well as a provider of energy services and technologies, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation's largest electric utilities.Edison International's support of charitable causes, such as the Edison Scholars Program, is funded entirely by Edison International shareholders;SCE customers' utility bill payments do not fund company donations.
News Article | April 17, 2017
Ron Nichols president of Southern California Edison (SCE), talks during a news conference launching a unique systems combining a hybrid battery and gas turbine to produce and store electricity at the SCE Center Power Plant in Norwalk, Calif., on Monday, April 17, 2017. Nichols said the twin systems that went online March 30 operate somewhat like a hybrid car, drawing first on the battery, then switching over to the gas turbine if power demands spike. (AP Photo/Christopher Weber) NORWALK, Calif. (AP) — A California utility has launched unique systems combining a hybrid battery and gas turbine to produce and store electricity for use during hot summer months and other times when power demand soars. The new Hybrid Electric Gas Turbines are the first of their kind in the world, officials with Southern California Edison and manufacturer General Electric said during an event Monday near Los Angeles. The new systems will reduce greenhouse gas emissions and air pollution by 60 percent and save millions of gallons of cooling water annually, Edison said. There were no numbers on how much consumers might save. But officials said increased reliability and the reduced environmental impact will lead to significant cost reductions for the utility, which will be passed on to customers in the form of lower bills. Edison President Ron Nichols said the twin systems that went online March 30 operate somewhat like a hybrid car — drawing first on the battery, then switching over to the gas turbine if power demands spike. Energy output is combined between turbines and new 10-megawatt lithium-ion battery storage units. As a result, the systems do not burn fuel when they're on stand-by, significantly reducing greenhouse gas emissions. And they can be turned on immediately to push power into the grid to compensate for outages or increased demand. "The battery is there at the flick of a switch," Nichols said. The systems are running in Norwalk and Rancho Cucamonga at plants built to provide extra juice following an especially hot summer that strained the grid. The utility is exploring adding the hybrid systems to three other similar plants. "You don't always get an opportunity to take an existing facility, add some new technology to it, and enhance the value and reduce the cost to customers," Nichols said. The systems will help balance energy supply and demand, especially during evening hours when solar power production drops as customers return home and turn on lights and appliances. California has committed to derive 50 percent of its electricity from renewable sources by 2030. The installation of the hybrid systems is a major step toward that goal, according to Tom Doughty of the California Independent Systems Operator, which manages the state's grid. "For 100 years the grid was largely the same," he said. "Big power stations, significant big wires and reliance on fossil fuels. And now, in the next 10 years, a metamorphosis." Doughty said the hybrid technology introduces crucial flexibility into the state system. "The variability of one technology, or one plant, can be mitigated or managed by others," he said, calling the new system "a thing of beauty."
News Article | April 21, 2017
California may be at the vortex of Earth Day. Reducing greenhouse gas emissions is the state's number one goal, which it's working to achieve in a variety of ways, most notably by using more renewable energy. But to hit its green energy target, California will rely on new technologies like energy storage and demand response. In an ideal world, energy storage devices would soak up electricity at night when the cost of power is cheaper and then release it during the day if the wind is not blowing or the sun is not shining. In the real world, the technology is used to keep the electrical grid balanced and to prevent changes in frequency that can cause the lights to flicker out and potentially prompt rolling blackouts. In other words, the batteries detect an imbalance and immediately respond. California is trying to inspire investment in those tools that can inject electrons onto the grid: The California Public Utility Commission is requiring the utilities PG&E, San Diego Gas & Electric and Southern California Edison to collectively buy 1,325 megawatts of energy storage by 2020. To that end, Sempra Energy’s San Diego Gas & Electric has just signed contracts for 83.5 megawatts from five storage projects that use lithium-ion batteries. If approved by the California Public Utilities Commission, the utility will own and operate two of the five facilities that will come online between 2019 and 2021. The utility is on target to procure 165 megawatts of energy storage by 2020. “By building these projects, San Diego Gas & Electric will remain at the forefront of helping the state achieve its bold clean-energy and carbon-emission targets,” says Emily Shults, the company’s vice president for energy procurement. Similarly, Edison International’s Southern California Edison has the Tehachapi Energy Storage Project. It is located on a wind farm about 100 miles north of Los Angeles -- an undertaking that is part of the 2009 federal stimulus plan. The Tehachapi Energy Storage Project is projected to generate 8 megawatts for four full hours, which equates to 32 megawatt/hours. It also uses lithium-ion batteries, which are able to store and to discharge electricity at any time, although they have a limited duration. California is looking to revamp its greenhouse gas emission goals and has proposed a 40% reduction from 1990 levels by 2030. It has several tools in its arsenal to try and achieve that objective, with the increased use of renewables being a key method; it now has a 50% green energy mandate by 2030. “Our research shows considerable near-term potential for stationary energy storage,” McKinsey & Co. said in a report. “One reason for this is that costs are falling and could be $200 per kilowatt-hour in 2020, half today’s price, and $160 per kilowatt-hour or less in 2025.” Longer term and as the technology matures, it sees even greater business opportunities. No doubt, energy storage could add tremendous value in electricity markets. Still, the cost of such technology has limited its deployment. If a project is going to add up to $1 billion, utility executives want to see proof that the investment can be recouped and how that cost will be shared. Utilities are, by nature, conservative organizations that have long-term outlooks. When they build power generation, they are looking out at least 20 years. Energy storage is no different. To make it economically practical, the devices need to serve multiple functions such as injecting electrons to prevent outages or ultimately firming up intermittent renewable power. Energy storage is vital to the success of renewable generation. But so too is demand response. That’s why San Diego Gas & Electric has also just signed a contract to add a 4.5 megawatt demand response program that prompts consumers to shift their energy consumption when electricity prices skyrocket. That is preventing congestion and possibly brownouts during peak usage while also making room for more green electrons. It’s especially valuable if states increase their renewable energy requirements. California’s 50% goal by 2030 is one such challenge. That’s why experts emphasize that it is important to make investments in a modern grid. Such improvements would give utilities the opportunity to communicate with their customers so that they adjust their energy usage. “Through smart communications and quick communications and control, the other generators on the system are adjusting accordingly” to compensate for the variability of renewable power, says Ron Litzinger, president of the Irvine, Calif.-based Edison Energy Group. California has set the national pace when it comes to emissions reductions and renewable energy additions by advancing energy storage and demand response technologies. And while the state’s utilities are asking the hard questions and getting some federal assistance, they are helping to facilitate the movement — something that deserves notice on Earth Day 2017.
News Article | May 1, 2017
ROSEMEAD, Calif.--(BUSINESS WIRE)--Edison International (NYSE:EIX) today reported first quarter 2017 net income of $362 million, or $1.11 per share, compared to $281 million, or $0.86 per share, in the first quarter of 2016. There were no non-core items in the first quarter 2017 results. First quarter 2016 core earnings were $278 million, or $0.85 per share. Southern California Edison's (SCE) first quarter 2017 net income increased by $54 million, or $0.17 per share, from the first quarter 2016 due to an increase in revenue from the escalation mechanism set forth in the 2015 General Rate Case (GRC) decision, lower operation and maintenance expenses, and higher income tax benefits partially offset by higher net financing costs to finance SCE's capital spending program. Edison International Parent and Other’s first quarter 2017 net income increased by $28 million, or $0.08 per share, compared to first quarter 2016. The increase in net income was due to higher core earnings of $30 million, or $0.09 per share, and $2 million, or $0.01 per share, of lower non-core earnings. The higher core earnings were due to higher income tax benefits related to stock option exercises. "Edison International is off to a solid start in 2017, reporting first quarter earnings of $1.11 per share," said Pedro Pizarro, Edison International president and chief executive officer. "It is early in the year, so for now we have left our full year guidance unchanged. Our normal practice is to wait until more of the year has gone by before formally updating guidance. At the same time, we recognize there is a bias toward the upper half of the range." The company reaffirmed its earnings guidance for 2017 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information, including key guidance assumptions. In March 2016, the Financial Accounting Standards Board issued a new accounting standard for employee share-based payments. Edison International adopted this accounting standard during the fourth quarter of 2016, effective January 1, 2016. Under this new standard, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. First quarter 2016 earnings were updated to reflect the implementation of the accounting standard for share-based payments effective January 1, 2016. See the First Quarter Reconciliation tables below and the presentation accompanying the company’s conference call for further information. Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power, as well as a provider of energy services and technologies, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities. Edison International is also the parent company of Edison Energy Group, a portfolio of competitive businesses that provide commercial and industrial customers with energy management and procurement services and distributed solar generation. Edison Energy Group companies are independent from Southern California Edison. Use of Non-GAAP Financial Measures Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance of Edison International and Southern California Edison. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share. Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other. Statements contained in this release about future performance, including, without limitation, operating results, rate base growth, financial outlook, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results include, but are not limited to the: Other important factors are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s Form 10-K, most recent Form 10-Q, and other reports filed with the Securities and Exchange Commission, which are available on our website: www.edisoninvestor.com. These filings also provide additional information on historical and other factual data contained in this news release. Edison International and SCE also routinely post or provide direct links to presentations, documents, and other information that may be of interest to investors at www.edisoninvestor.com (Events and Presentations) in order to publicly disseminate such information. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Note: Diluted earnings were $1.10 and $0.85 per share for the three months ended March 31, 2017 and 2016, respectively.
News Article | April 17, 2017
One of the key technologies needed to transform world energy supplies away from fossil fuels and toward clean, renewable sources is a cheap and reliable way of storing and releasing energy. That will enable intermittent supplies such as solar and wind power, with their variable and often unpredictable outputs, to store energy that’s produced when it’s not needed and to release it when it’s needed most (or can be sold for the best price). That was a message that came up repeatedly over the two days of talks and panel discussions at the 12th annual MIT Energy Conference, held on March 3 and 4. But while better, cheaper storage is essential, implementing it faces technical, economic, and policy challenges, several speakers noted. Massachusetts, home to a number of leading startup ventures in the energy storage area, has “a huge opportunity to be a leader” in this burgeoning industry, said Judith Judson, the commissioner of the Massachusetts Department of Energy Resources, in one of the conference’s panel discussions. The state is already home to a number of companies working on innovative battery technologies, several of which are based on research from MIT labs. But getting such technologies out into the world is more than just a matter of building a better mousetrap. For one thing, “the role of the utilities to push on this technology is so important,” said Belen Linares, the global research and development director for Spain-based energy company Acciona. “It’s collaborations between schools and industry that are going to give these technologies the real boost they need.” Ravi Manghani, energy storage director for GTM Research, a solar-market analysis firm, who moderated that panel, concluded that what researchers really need to do now is “work on making energy storage less complicated and more boring.” It needs to be the kind of simple technology that can be purchased and then forgotten, he suggested, somewhat like a home water heater. One promising new entry in that sector is Ambri, a company developing grid-scale batteries based on all-liquid active components, a technology developed at MIT in the lab of Donald Sadoway, the John F. Elliott Professor in Materials Science and Engineering. Dana Guernsey, Ambri’s director of corporate development, said that “one of the exciting reasons to be in this industry” is the potential to open up electrification “in places where there is no grid at all. Storage systems will electrify parts of the world that have been dark,” by enabling the construction of small, localized “microgrids” that can serve villages, schools, or small businesses. Consumers can help to bring about that transformation, a number of speakers said. A panel discussion on “the engaged ratepayer” made it clear that utilities are becoming ever more responsive to the needs and wants of their customers, as the business has become more competitive. “The rate of change now in the industry is extraordinary,” said Terry Sobolewski, the chief customer officer of the utility company National Grid. “And it’s almost entirely driven by customers.” In fact, the customer-centric orientation of the companies is now so strong that the formerly universal term “ratepayer” has now been officially discontinued by most of these companies because it implies a one-way relationship, and the companies now really want to stress their responsiveness and engagement, Sobolewski said. Part of that responsiveness includes working with business and industrial customers. “More and more industries are asking for help,” he said, “on ‘how do I integrate renewables into my business?’” The change in attitude, he said, suggests that “we are on the precipice of this transformation.” Accelerating the transformation to non-fossil-fuel energy sources will also require improved analytical tools for gathering data about the performance of buildings and industrial plants using different combinations of energy and efficiency systems, several speakers said. Southern California Edison is making inroads in this area, said Andre Ramirez, a principal advisor to the company. Its 5 million customers, he said, are all now on a “time-of-use” rate system, by default. That kind of rate system allows customers to shift energy-intensive activities, such as running a clothes dryer or charging an electric car, to off-peak periods when the rates may be much lower. Such shifting, if done on a large scale, can greatly reduce the utility’s need to build expensive peak-power generators to handle those loads. “We’re at the leading edge of that change,” Ramirez said. The kind of detailed information that can be gathered over time about residential use can lead to specific, targeted suggestions for energy improvements for a given home or business. But information can also influence other kinds of decisions. For example, “millennials want to work for companies that have a conscience,” including what their energy strategies are and what their values are, said Tim Healy, CEO and chairman of the energy data analysis and management company EnerNOC. Transparency about a company’s business practices, including the details of its actual energy production sources, can be an important part of that, he said. As for the energy systems themselves, innovations in the regulatory system that establishes rates and governs the interactions among power producers, distribution networks, and end-users are a major need at this point. “Regulatory affairs is where the innovation needs to occur,” Healy said. MIT’s Energy Conference is organized annually under the auspices of the MIT Energy Club, which with its 5,000 members, including students, faculty, staff, and alumni, is “the largest energy club anywhere,” said Robert Armstrong, director of the MIT Energy Initiative, in his opening remarks at this year’s event.
Southern California Edison | Date: 2014-03-28
A system for securing electric power grid operations from cyber-attack, the system comprising a collection of security services distributed throughout a smart grid in two main categories of services; central security services and edge security services.