Low regulatory risk Steady electric rates Effective management and credit-supportive behavior regarding troubled merchant energy subsidiary Edison Mission Energy Refinancing risk is material for EME Large, burdensome utility capital program Idled nuclear plant San Onofre Nuclear Generating Station (SONGS) supplied about 20% of total utility energy requirements and presents operational and financial challenges Energy holding company Edison International's (EIX) business risk profile is "strong" based on its ownership of electric utility Southern California Edison Co. (SCE; BBB+/Stable/A-2) and Edison Mission Energy (EME; CCC/Negative/--). EIX's financial risk profile is "aggressive," reflecting both high leverage and the risks that EME's merchant operations impose on EIX. SCE's credit profile is the mainstay of the EIX rating, despite the regulatory insulation that limits the
