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The parent companies of the investor-owned utilities in Southern California reported rosy 2019 earnings, in contrast to Pacific Gas & Electric. The latter continued to suffer major losses while striving to reorganize and emerge from a Chapter 11 bankruptcy.

Edison International is the parent company of Southern California Edison. Sempra Energy is the parent company of both Southern California Gas and San Diego Gas & Electric. Both held earning calls Feb. 27.

Higher earnings for Southern California Edison, San Diego Gas & Electric and SoCalGas are thanks to increases in the general rate cases approved by the California Public Utilities Commission. During calls with financial analysts, company executives also highlighted favorable financial prospects following a CPUC extension of those proceedings to five years from three in the next cycle for the trio of utilities.

On the calls, both companies pointed to the California legislature’s creation of a $20 billion wildfire liability fund, paid into by ratepayers and shareholders. This AB 1054 fund, to be refilled as needed, is expected to significantly reduce utility wildfire liability and bolster their credit ratings.

Edison International : Southern California Edison's parent reported 2019 net income of $1.3 billion, or $3.78 per share. That compares with a net loss of $423 million, or $1.30 loss per share, for 2018.

The reported net income for utility SCE was $1.4 billion, or $4.15 per share, contrasted with a net loss of $310 million, or $0.95 loss per share, the year before.

In addition to gains from the 2018 general rate case, the company also highlighted higher FERC revenue and growth in its rate base. This positive news was partially offset by higher wildfire expenses.

The rate base for SCE is forecast to grow from $28.5 billion in 2018 up to $41 billion in 2023. The utility’s liability for wildfires in 2017 and 2018 was estimated at $4.9 billion.

The parent company reported 2019 fourth quarter net income of $143 million, or $0.40 per share. During the same cycle in 2018, it had a net loss of $1.4 billion, or $4.39 loss per share.

SCE’s fourth quarter 2019 net income was $194 million, or $0.54 per share. That compares to a net loss of $1.4 billion, or $4.38 loss per square for 2018. Fourth quarter earnings per share increased by $4.92 over 2018.

Edison's annual capital expenditures are forecast to rise from last year's $4.8 billion to $5.4 billion in 2023. It projects spending $3.8 billion from this year through 2022 for wildfire mitigation work.

Pedro Pizarro, Edison international chief executive officer, announced the company was implementing the largest electric truck and transit utility program in the nation. It plans to install charging infrastructure to support about 8,500 medium- and heavy-duty vehicles at 870 sites by 2024. The expected cost is $356 million. It awaits CPUC approval to spend $750 million to support 50,000 passenger vehicle chargers.

“We continue to see significant long-term investment opportunities in our business related to addressing California’s 2045 climate goals,’ Pizarro said.

Sempra Energy reported 2019 earnings of $2.1 billion, or $7.29 per share. That was up from $924 million, or $3.42 per share, in 2018.

Its fourth quarter 2019 earnings were reported at $447 million, or $1.55 per share. That is only half the profit reported for the same period last year, when earnings were $864 million, or $3.03 per share.

SDG&E's reported net income for last year was $767 million. The previous year's earnings were $669 million. Fourth quarter earnings were $185 million compared to $148 million in 2018.

SoCalGas's reported 2019 net income of $641 million, in contrast to $400 million for 2018. Its final quarter 2019 net earnings were $204 million, compared to $156 million the previous year.

Sempra projects spending $32 billion on capital investments over the next five years. Of that amount, $8.9 billion will be invested in SDG&E and $9 billion in SoCal Gas.

It also expects significant growth in its rate base, from last year’s $33.6 billion to $51.4 billion in 2024. SDG&E's contribution is expected to grow from $10.5 billion to $15.9 billion. SoCalGas’ rate base is expected to rise from $7.4 billion in 2019 up to 13.1 billion in 2024.