Edison International surpassed profit forecasts for the first quarter on Tuesday, benefiting from a rise in electricity rates.
American electric companies are looking to increase electricity rates charged to customers, driven by high demand from AI data centers, increased national manufacturing production, and extreme weather events such as forest fires.
Southern California Edison, a subsidiary of Edison International, reported a basic earnings per share of $1.65 in the first quarter, thanks to the final decision on its 2025 general rate case.
Regulated utilities, like Southern California Edison, determine rates charged to customers for services like electricity, natural gas, private water, and steam through rate proceedings.
Electricity consumption in the United States reached a record level in 2025 and is expected to continue rising through 2027, primarily due to AI and cryptocurrency data centers, as well as increasing electrification of homes, businesses, and transportation.
The Rosemead-based public utility posted an adjusted earnings of $1.42 per share for the quarter ending March 31, exceeding analysts’ estimates of $1.31 per share.
Last month, Edison successfully defended against a shareholder lawsuit alleging the company misled investors by overstating its ability to reduce the risk of forest fires before the wildfires in the Los Angeles region in January 2025.
The utility company affirmed its adjusted profit forecast for 2026 in the range of $5.90 to $6.20 per share.
