) took over solar rooftop developer SoCore Energy LLC for an
undisclosed price. This move gives the owner of California's
second-largest electric utility a footing in the area of
installing and operating rooftop solar electric systems for
business and industrial customers.
EDISON INTL (EIX): Free Stock Analysis Report
NRG ENERGY INC (NRG): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
SUNEDISON INC (SUNE): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
To read this article on Zacks.com click here.
With this acquisition SoCore Energy now becomes a wholly owned
indirect subsidiary of Edison International. Established in 2008,
SoCore is a privately held company focused on the solar energy
needs of multisite retailers, real estate investment trusts
(REITs) and large commercial and industrial clients.
This Chicago-based developer has installed and operates 80 solar
projects in 11 states for commercial customers that include the
), Ikea, Kimco Realty Corp. and
Simon Property Group Inc.
In recent times low-priced solar panels and more financing
options have helped the commercial and residential rooftop solar
businesses to eliminate the need to pay for the pricey upfront
cost of buying and installing solar equipment. Rooftop solar is
often termed as "distributed solar" in order to differentiate it
from the conventional, centralized power plant model of supplying
The acquisition enables Edison to be a part of the ongoing solar
energy development for unmarked energy customers. This
participation also paves the way for Edison to compete with other
associated energy producers like
NRG Energy, Inc.
). In 2011, NRG Energy had acquired Solar Power Partners.
Recently, Edison reported second quarter results with adjusted
earnings of 79 cents per share well ahead of the Zacks Consensus
Estimate of 66 cents by 19.7% and the year-ago quarterly earnings
of 56 cents by 41.1%. The beneficial results were driven by a
robust operating performance from Southern California Edison
("SCE"). This was attributable to higher authorized investment in
its electric grid infrastructure and favorable tax benefits.
Edison International is the parent company of one of California's
largest investor-owned utilities, SCE, whose second quarter
adjusted earnings boosted 42.4% on year-over-year basis. The
results were driven by timing and tax benefits from incremental
repair deductions and lower operating expenses.
The company currently holds a Zacks Rank #4 (Sell). We remain
concerned about its coal-based plants that generate three-fourths
of its output. This will compel the company to make environmental
investments to meet the stringent requirements for nitrogen
oxides and sulphur dioxide emissions. Again, Edison generates
more than 80% of its revenues from its regulated utility assets.
This also makes the performance of the company dependent upon
approvals of regulatory bodies like California Public Utilities
Commission and Federal Energy Regulatory Commission. Any adverse
decision regarding general rate cases will greatly affect the
utility's earnings growth.