Edison International's EIX subsidiary, Southern California Edison (SCE), has recently received regulatory approval from the California Public Utilities Commission for the expansion of an electric car charging infrastructure program. The program, known as Charge Ready 2, will be the nation’s largest light-duty electric vehicle (EV) charging program.
Charge Ready 2 Specifics
The Charge Ready 2 program is a car charging infrastructure program that looks ahead to add about 38,000 new chargers throughout the utility’s 50,000-square-mile service area. The $436-million-worth Charge Ready 2 program will provide charging infrastructure at workplaces, public parking lots, schools, hospitals and destination centers. Investments made in the EV charging program will also be instrumental in supporting vital air quality and climate benefits to the communities. The EV charging program is an expansion of SCE’s Charge Ready pilot, launched three years ago.
How Will the Program be Beneficial?
Through the Charge Ready 2 program, SCE will install and maintain the supporting EV charging infrastructure and provide rebates to reduce charging station costs. The program further sets a target to locate 50% of the chargers in state-designated disadvantaged communities, or economically impacted communities that suffer most from the effects of air pollution.
Furthermore, the company focuses on the unique challenges faced by apartment and condo complexes, where one-third of SCE customers live and have limited access to at-home charging options. To address this issue, the aforementioned program has added rebates to support the installation of EV charging ports in new, under-construction multifamily dwellings. This will lead to enhanced adoption of the company’s EV charging ports.
Transition in Utility Space & EV Charging
The transportation sector is the largest contributor of greenhouse gas emissions in the United States. As the entire economy is transitioning toward a clean energy environment, increasing electrification in the transportation sector has been adopted to reduce emissions of CO2 and air pollutants. This has offered a profitable opportunity to utilities, which have lately adopted clean energy as their new choice of resources.
Notably, we have seen a handful of utilities like Edison International, which have been investing in EV charging programs to reap the benefits of the growing market of transportation electrification.
Evidently, Duke Energy DUK has more than 600 electric vehicles in its fleet, including more than 220 on-road vehicles, and makes significant investments in support of its initiative to reduce overall greenhouse gases and lower emissions from the transportation sector. Similarly, Pacific Gas and Electric Company’s PCG EV charge Network program is accelerating California's transition to a clean transportation future.
We believe such expanding investments to increase the adoption of EVs and further bring down the cost of clean energy generation in the days ahead, enabling utilities like Edison International and others to eventually offer more affordable, reliable, carbon-free electricity.
In the year-to-date period, Edison International’s shares have lost 30.8% compared with the industry’s 14.5% decline.
Zacks Rank and A Key Stock
Edison International carries a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock from the same space is Alliant Energy Corporation LNT, carrying a Zacks Rank #2 (Buy). Alliant Energy delivered an average positive earnings surprise of 30.91% in the past four quarters. The company’s long-term earnings growth rate currently stands at 5.5%.
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