Edison Mission Group – “deteriorating financial conditions”

From Edison International’s CEO Discusses Q4 2011 Results – Earnings Call Transcript:  “Efforts to stabilize EMG (Edison Mission Group)continue, focusing on cost effectively meeting its environmental requirements, reducing its unsecured debt and diversifying its generation portfolio with additional natural gas and renewable generation.

Ultimately, the test will be the ability to generate sufficient cash flows such that it can refinance a sustainable portion of its unsecured debt. If current power market conditions persist, EMG expects to incur further reductions in cash flow and earnings losses in 2012 and beyond.

Current conditions, coupled with pending debt maturities and retrofit investments, will strain EMG’s liquidity such that it may need to divest assets and restructure or reorganize its capital structure to get through this period, to see if option value is indeed there.

We have repeatedly said that EIX will be financially disciplined and not invest new funds into EMG unless we can see a clear and compelling path to obtaining both a return of and on any investment. In the face of deteriorating financial conditions at EMG, we reaffirm that pledge.”

Later in the release, this nugget:  “Lastly, as a result of capital resource constraints and limited market opportunities, the development pipeline of potential wind projects has been reduced to 1,300 megawatts from 3,800 megawatts.”  And all this time I thought wind was the future of energy!

Edison Mission Group is the current owner of the Pinnacle wind facility in Mineral County WV.  Of course, as the wind business collapses, who knows how long that will be the case?

I certainly hope the Edison Mission Group has enough money remaining to correct the horrible noise problems they’ve created for the neighbors of Pinnacle.

Read the full article at this link: Edison International’s CEO Discusses Q4 2011 Results – Earnings Call Transcript

This entry was posted in industrial wind failure, Pinnacle Wind Farm and tagged , , , , . Bookmark the permalink.

2 Responses to Edison Mission Group – “deteriorating financial conditions”

  1. Pingback: Edison Mission Energy, owner of WV wind farm, may file for Chapter 11 bankruptcy protection. | Allegheny Treasures

  2. Pingback: Pinnacle – industrial wind’s fruit cake? | Allegheny Treasures

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s