Edison’s Net Income Falls 28%

California utility owner Edison International said its fourth-quarter net income fell 28% from a year earlier, when proceeds from power plant sales boosted earnings, but operating profit rose on the strength of Edison’s unregulated power and trading business.

The Rosemead-based holding company reported net income of $272 million, or 82 cents a share, for the last quarter of 2005, compared with $379 million, or $1.14, in the fourth quarter of 2004. Excluding special items, the company’s earnings would have been 71 cents a share, more than double year-earlier levels and sharply higher than analysts’ expectations averaging 46 cents a share, according to a survey by Thomson Financial.

Revenue for the quarter rose 28% to nearly $3 billion. Edison shares, however, fell 6 cents to close at $43.33.

“It was a great quarter and a great year,” said Paul Fremont, utility analyst at Jefferies & Co.

The biggest increase came from Mission Energy Holding Co., an unregulated subsidiary with 20 power plants that also trades electricity and other commodities. That unit delivered earnings of $143 million in the fourth quarter, contrasted with a loss of $52 million a year earlier, because of higher profit at Midwest coal-fired plants and the energy trading business.

Southern California Edison reported fourth-quarter earnings of $153 million, or 47 cents a share, down from $315 million, or 97 cents, a year earlier, as higher operating and tax expenses cut into profit.

The utility, which serves more than 13 million people, has a rate increase proposal pending before the California Public Utilities Commission.

For the full year, Edison posted net income of $1.1 billion, or $3.43 a share, up 24% from 2004 net income of $916 million, or $2.77.

Edison said it paid Chairman and Chief Executive John Bryson a $1.16-million salary in 2005, up 4%. He received a 7.7% higher bonus of $2.1 million. Bryson also received long-term incentive payouts that included options for 359,000 shares of Edison stock and $9.8 million in stock and other benefits, according to the company.