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Edison International (EIX) to Create New Energy Subsidiary
Edison International (EIX – Analyst Report) is set to create a new subsidiary, Edison Energy, which will concentrate on meeting energy requirements of its major energy consumers across the country.
Based in Irvine, CA, Edison Energy will help to cut the company’s energy costs, improve efficiency, eliminate complexities and offer more environmentally friendly options such as energy consultancy and management services.
Through this initiative, the company intends to focus on serving commercial buildings, data centers, retail centers, healthcare operations and educational institutions on the back of advancing technologies, markets and incentives in energy efficiency, and renewables and storage solutions among other services.
The company’s chairman and chief executive officer, Ted Craver stated: “Large energy users increasingly need a strategic partner to help them navigate through the diverse energy marketplace. Edison Energy will provide the expertise that will enable large commercial and industrial energy users to explore the many options available to them and to select the best portfolio of alternatives to power their operations.”
Edison Energy will comprise three firms that were recently acquired by Edison International – EnerActive Solutions, a New Jersey-based consulting company; Delta Energy Services, a consulting company based in Ohio; and Altenex, a renewable energy procurement company.
Edison Energy will employ over 200 people after the integration of these three acquired companies. The subsidiary, however, will neither be part of Southern California Edison, the company’s chief unit, nor will it be regulated by the California Public Utilities Commission.
Interestingly, the creation of Edison Energy marks Edison International’s the first major venture as a utility into energy management services.
Zacks Rank & Key Picks
Edison International presently has a Zacks Rank #2 (Buy). Other favorably placed stocks in the power sector include DTE Energy (DTE – Analyst Report), CenterPoint Energy, Inc. (CNP – Analyst Report) and CMS Energy Corp. (CMS – Analyst Report), each carrying the same Zacks Rank as Edison International.