Edison (EIX) Unit's Projects Get Nod, Seek To Cut Pollution

 | Jan 11, 2018 09:31PM ET

Edison International’s (NYSE:EIX) unit Southern California Edison (“SCE”) has received approval from the California Public Utilities Commission to begin four electric transportation pilot projects that will help increase usage of electric in transportation. The primary objective of these transportation pilots is to lower emission levels and meet California’s 2030 greenhouse gas and air pollution reduction goals.

California aims to lower its 2030 greenhouse gas emissions by 40% below 1990 levels. SCE, through its transportation pilot projects, will expand the usage of electricity in cars, buses, medium- and heavy-duty trucks, and industrial vehicles and equipment.

Emission Reduction Benefits

Southern California is the gateway for nearly 40% of the goods entering the United States, which move through the region’s ports and highways. It is evident that the goods movement through the heavy vehicles is major source of emission in this region.

The pilot projects primarily aim to promote development of more electric charging points that will assist in charging the electric vehicles and work on electrification of the equipment used in ports. The projects are part of the $550 million investment program, which the commission is yet to approve.

Reduction of pollution from the transportation space, which is the major contributor to emission levels in California will help to achieve the pollution reduction goals. Also, several utility scale renewable energy projects are coming up in the state, which will help in achieving the target.

Road Ahead

SCE serves nearly 15 million people in its 50,000 square miles of service area. To efficiently serve the growing population of California, the company aims to invest $14.7 billion in next few years to strengthen and expand its existing electricity infrastructure.

Also, energy efficiency programs of SCE have helped customers save enough energy to power 1.2 million homes for a year.

SCE’s massive asset base and expertise will allow it to develop the transportation electrification market in California and these pilot projects are means to achieve the same.

Price Movement

Edison International’s shares have lost 13.6% in a year against the industry’s gain of 2.8%.