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In the second quarter, utility holding company Edison International posted earnings that were much higher than last year, PG&E Corp.'s profits dropped, and Sempra's earnings were smack-dab in the middle. Unlike their parent companies, utilities' profits were slightly down or held somewhat steady between this year and last year. PG&E Corp.-The net income for the holding company posted for the second quarter this year was $267 million. During the same quarter in 2004, it reported a $372 million gain. PG&E, the utility, produced $266 million in profits in the past 2005 quarter, compared with $307 million this time last year. The holding company counted a negative $6 million, which was related to the cost of bankruptcy, for its National Energy & Gas Transmission subsidiary. "PG&E's financial restoration is essentially complete," touted corporate executives. The utility was in Chapter 11 reorganization after the energy crisis left it in difficult financial straits. A settlement with state regulators and The Utility Reform Network allowed for financial restructuring at the beginning of 2004. As a result, executives added that the company is "being given more credit as our credit quality increases." PG&E now plans on spending some of that money. During the earnings announcement August 3, utility executives said that there were opportunities to make capital investments. They plan to spend millions to shore up the company?s aging infrastructure (Circuit, August 5, 2005). With the repeal of the Public Utility Holding Company Act in the federal energy bill signed this week by the president, financial analysts queried PG&E executives as to whether the company could be ripe for a takeover-or whether it has plans to do its own acquisitions. While dodging the question, officials said they?re looking at the new paradigm. "By the time it comes around, we will have done our homework." Sempra-The holding company for utilities San Diego Gas & Electric and SoCal Gas posted a $121 million profit for the second quarter of 2005-an amount identical to that reported for the same time last year. SoCal Gas reported $58 million for the quarter, compared to $50 million for the second quarter of 2004. SDG&E posted $29 million for the quarter, barely down from $30 million this time last year. Sempra LNG posted a loss of $5 million, compared with a loss of $2 million this time last year. Sempra Generation, which is, among other developments, attempting to build a coal-fired power plant in Nevada, reported income of $27 million, up from $19 million in the second quarter last year. The company, however, is not wedded to the coal plant, according to officials. They are still evaluating it, and it's in the preliminary permitting phase. A decision on whether to move ahead is expected later this year. A big economic unknown for Sempra is its potential liability for a class-action lawsuit-the Continental Forge case in San Diego Superior Court. The lawsuit alleges a conspiracy to fix prices during the energy crisis, which could amount to $21 billion (Circuit, July 29, 2005). Management said the company is discussing the case with plaintiffs' attorneys but would not divulge whether a settlement is imminent. Edison-Edison International, Southern California Edison's parent company, reported a net income for the second quarter of $201 million, way up from its loss of $374 million in the same quarter last year. The utility claimed $161 million in earnings for the quarter, down from $242 million for the same quarter last year-although year-to-date earnings are higher. They are $292 million this year, compared to $224 million in 2004. Edison executives told the financial community this week that the company is looking at acquiring or building new facilities but "can't be specific" about new investments in power plants. "But that's our business"-referring to electricity?said one official. Edison also noted that its wind energy portfolio is expected to expand in the wake of the federal energy bill because it extends wind?s price credits. -J.A. Savage

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