News Release
FOR IMMEDIATE RELEASE
Contact: Corporate Communications: (626) 302-2255
www.edisonnews.com
Edison Announces Cost-Cutting,
Cash-Conservation Efforts
ROSEMEAD, Calif., Dec. 22, 2000--Edison International (NYSE:EIX) and its
electric utility subsidiary Southern California Edison today announced several
cash-conserving actions, including the elimination of Edison International's
fourth-quarter common stock dividend, and the elimination of $100 million in
electric system operations and maintenance investments affecting 400 jobs.
"To preserve our ability to provide electric service and remain viable, we are
taking these immediate cash-preserving actions," said Edison International
Chairman, President, and CEO John E. Bryson.
Earlier today, the board of directors voted to eliminate the fourth-quarter
common stock dividend that customarily would have been paid on Jan. 31, 2001.
Edison has about 85,000 individual shareholders, who typically invest
conservatively for retirement income.
Decisions regarding the declaration of future dividends will be made by the
board in light of any further actions by the California Public Utilities
Commission (CPUC) and the Federal Energy Regulatory Commission to reform
California's dysfunctional wholesale electricity markets, bring prices back to
more reasonable levels, and allow adequate cost recovery for utility companies.
Cost-reduction measures affecting electric system operations, maintenance, and
new investments will result in a reduction of an initial $100 million in SCE
spending for 2001 and impact approximately 400 contract labor jobs. The
reduction will affect needed investments in infrastructure, load growth, and
system automation, as well as reducing substantially work done during overtime
hours.
The company has developed a contingency plan to implement more substantial
reductions if further action to remain solvent becomes necessary. The plan will
result in additional substantial work force reductions and significantly reduce
service to customers.
These actions follow initial steps taken by Edison last month, including a
freeze on hiring and new construction, and a suspension of equipment purchases
and service contracts. Also,
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Edison suspended charitable and community contributions, eliminated all
discretionary travel, and reduced administrative expenses throughout the
company.
At that time, Edison noted that in the event it did not receive appropriate and
swift action from the CPUC, it would be necessary to implement much more
substantial reductions, which would affect its work force and major capital,
infrastructure, and operations and maintenance expenditures.
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Based in Rosemead, Calif., Edison International is a premier international
electric power generator, distributor and structured finance provider. With
assets of $36 billion and a portfolio of approximately 28,000 MW, Edison
International is an industry leader in privatized, deregulated and
incentive-regulated markets and power generation. It is the parent company of
Southern California Edison, Edison Mission Energy, Edison Capital, Edison O&M
Services, and Edison Enterprises.
