Edison International's (EIX) first-quarter profit fell 14% on lower-than-expected revenue as decreased earnings at the company's competitive power generation business offset higher results from its Southern California Edison utility.

California rules that separate profit from power and gas sales have helped Edison 's San Diego-area utility company maintain relatively stable revenue while it gets to collect an authorized return on equity on capital investments.

At the same time, two members of the California Public Utilities Commission appointed by newly elected Gov. Jerry Brown could hurt the regulated business by tilting the authority more toward consumers, according to an analysis from J.P. Morgan Chase & Co. (JPM).

The smaller Edison Mission Group, the company's competitive power generating business, swung to a loss on declines in generation, realized energy prices and trading revenue. The unit also recorded income in the previous year that was not posted in the latest quarter.

Edison International posted a first-quarter profit of $214 million, down from $249 million a year earlier. On a per-share basis, which includes the payment of preferred dividends, earnings slipped to 61 cents from 72 cents. Excluding discontinued operations, a prior-year regulatory charge and other items, the company's adjusted earnings were 62 cents, down from 82 cents.

Revenue grew 1% to $2.78 billion, while operating costs decreased 0.9%.

Analysts polled by Thomson Reuters were expecting a per-share profit of 63 cents on revenue of $3.14 billion.

Sales rose 3.4% in the larger Southern California Edison but fell 15% at Edison Mission Group.

Shares of Edison International, which affirmed its full-year guidance, closed at $39.27 Friday and were inactive premarket. The stock dipped after the Japan earthquake disaster raised concerns over Edison 's own nuclear plant but is now up 7.2% over the past three months.

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