NEW YORK (TheStreet) -- Shares of EDISON INTERNATIONAL (EIX) were up in trading Friday on the news that the public utility company has set a March 27 date for negotiations to settle costs related to its now defunct San Onofre Nuclear Generating site in California.
Edison announced that it was closing the plant and retiring its two reactors in June after leaking radioactive water forced regulators to shut the plant down. That incident left Edison with a liability of $2.1 billion in plant operation costs and $1.3 billion in potential customer refunds.
This potential liability has been a huge risk factor for the stock. Settling the exact cost of moving on from the incident has been a big step forward for the company. If a settlement is reached Edison "would currently anticipate recording a non-core charge in the first quarter of approximately $155 million pre-tax (approximately $100 million after-tax) by further reducing the regulatory asset represented by San Onofre property, plant and equipment and related tangible operating assets."
Shares of Edison International were up 3.88% to $54.04 in trading Friday.
TheStreet Ratings team rates EDISON INTERNATIONAL as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EDISON INTERNATIONAL (EIX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."