The brokerage firms believe that EIX is a top growing utility in a positive regulatory environment.  However, the firms are of the opinion that this growth is currently affected by a volatile and deteriorating earnings situation at Edison Mission Energy (EME), EIX’s power generation company.  Hence, the firms see little earnings growth a modest dividend growth at EIX. As a regulated electric utility with solid growth prospects and a favorable regulatory structure, the firms expect SCE to perform well.  However, this performance is expected to be offset in the power generation segment by low commodity prices and increasing environmental costs.  While the firms see the utility as well positioned for strong growth in a positive regulatory climate, they see this positive as offset by the current difficulties and uncertainty at the merchant fleet. The firms believe that EMG will likely benefit from improving power markets but this is offset by concerns over the re-pricing of a rail transport contract, and the concerns of a likely impairment of long-term value of certain generating assets from environmental capital expenditure at EMG. According to these firms, EIX is fairly valued at current levels.