Utility Parent Records Goodwill Impairment For Competitive Energy Services (Broker) Unit

During the fourth quarter of 2018, Edison International recorded an impairment of its Edison Energy reporting unit goodwill totaling $19 million ($13 million after-tax).

"The impairment reflects a shift in the business model since we purchased the companies which make up Edison Energy in 2015 to our more measured 'proof of concept' approach," Edison International executives said

Edison Energy is engaged in the competitive business of providing energy services to commercial and industrial customers, including the brokering of energy supply, to help them improve managing their energy costs

Edison Energy's business activities are currently not material to report as a separate business segment

"To date, investments in Edison Energy Group are below 1% of the total consolidated assets and operating revenue, and therefore are not material to be reported as a business segment," Edison International said

"Edison Energy will continue to pursue a proof of concept of its existing energy services and managed portfolio solutions practice for large energy users in the United States. Under the proof of concept, Edison Energy will seek to achieve a breakeven earnings run rate and 5% target customer penetration by the end of 2019," the company said