Edison International posts steady profit growth on rising electricity rates

April 28 (reuters) - Edison International (EIX) beat expectations for first-quarter profit on Tuesday, as the utility benefited from higher electricity rates.

U.S. power companies are seeking higher customer electricity rates, driven by surging demand from AI-focused data centers, increased domestic manufacturing and extreme weather events including wildfires.

Southern California Edison, a subsidiary of Edison International (EIX), posted first-quarter core earnings of $1.65 per share, as it benefited from the adoption of its 2025 general rate case final decision.

Regulated utilities, such as Southern California Edison, determine customer charges for services such as electricity, natural gas, private water and steam through rate case proceedings.

U.S. power consumption hit a record high in 2025 and is projected to keep climbing through 2027, according to the EIA, driven largely by AI and crypto data centers, along with growing electrification of homes, businesses, and transportation.

The Rosemead, California-based utility posted adjusted earnings of $1.42 per share for the quarter ended March 31, compared with analysts' estimates of $1.31 per share, according to LSEG data.

Last month, Edison won the dismissal of a shareholder lawsuit that accused the company of defrauding investors by overstating its ability to reduce wildfire risk ahead of the January 2025 Los Angeles-area fires.

The utility company affirmed its 2026 adjusted profit guidance of $5.90-$6.20 per share. (Reporting by Anushka Chourasia; Editing by Tasim Zahid)