To further stabilize Homer City's liquidity, effective April 1, 2011, EMMT
assigned to Homer City the benefit of an arrangement that allows EMMT
to deliver power into the NYISO from Homer City.
HCG and EMMT are indirectly owned by Edison Mission Energy (EME; IDR rated 'BB-' by Fitch).
To assist HCG with a cash shortfall due to the forced outage, an EME subsidiary provided cash under a subordinated revolving loan agreement and EMMT made advance payments against future deliveries of power.
Excluding these items, core earnings increased 91 cents per share primarily from higher wholesale energy prices in Illinois, higher earnings at SCE associated with the 2003 GRC decision received in July 2004, lower net interest expense, earnings from Edison Capital's interest in the Emerging Europe Infrastructure Fund and higher income from EMMT