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Edison International expects $170M Q2'19 charge after rate decision

Edison International disclosed May 28 that the recent decision by regulators on Southern California Edison Co.'s 2018 general rate case would result in a second-quarter impairment of approximately $170 million, or $122 million after taxes. The charge is related to "certain historical capital expenditure disallowances," according to the company.

Following the decision, Edison International announced 2019 core EPS guidance of $4.72 to $4.92.

The California Public Utilities Commission on May 16 authorized base rate increases of $335 million in 2019 and $410 million in 2020. The commission also approved $2.9 billion of CPUC-jurisdictional capital expenditures in 2018. The final decision is retroactive to Jan. 1, 2018.

The regulator also authorized a ratemaking methodology that escalates capital additions by 2.49% for both 2019 and 2020 and allows operations and maintenance expense to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses, according to a filing.

The approved revenue requirement for 2018, at $5.117 billion, is is $417 million lower than what the utility had originally requested and $523 million lower than its 2017 authorized base revenue requirement.