Slide 1: Third Quarter 2013 Financial Teleconference
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 0 Third Quarter 2013 Financial Teleconference
Slide 2: Forward-Looking Statements
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 1 Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, San Onofre Nuclear Generating Station (SONGS
Slide 3: Third Quarter Earnings Summary
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 2 Third Quarter Earnings Summary Q3 2013 Q3 2012 Variance Core EPS1 SCE $1.46 $1.11 $0.35 EIX Parent & Other (0.04) (0.11) 0.07 Core EPS1 $1.42 $1.00 $0.42 Non-Core Items SCE $— $— $— EIX Parent & Other Continuing
Slide 4: Year-to-Date Earnings Summary
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 3 Year-to-Date Earnings Summary YTD 2013 YTD 2012 Variance Core EPS1 SCE $3.09 $2.26 $0.83 EIX Parent & Other (0.11) (0.15) 0.04 Core EPS1 $2.98 $2.11 $0.87 Non-Core Items SCE $(1.12) $— $(1.12) EIX Parent & Other
Slide 5: SCE Capital Expenditures Forecast
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 4 Note: 2013-17 forecasted capital spending subject to timely receipt of permitting, licensing, and regulatory approvals. Forecast range reflects 7% average variability in years with approved general rate case and
Slide 6: Major Transmission Projects
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 5 Project Name Total Project Costs1 In Service Date ROE Incentives2 2013–2017 Forecast Status3 Tehachapi $2,860 Chino Hills undergrounding in review, balance by 2016 125 bps ROE adder $917 Costs and schedule remain
Slide 7: SCE Rate Base Forecast
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 6 ($ billions) SCE Rate Base Forecast Note: Weighted-average year basis, including: (1) forecasted 2013-2014 FERC and 2015-2017 CPUC rate base requests; (2) consolidation of CWIP projects; and (3) estimated impact
Slide 8: SONGS Regulatory – CPUC OII Phases
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 7 SONGS Regulatory – CPUC OII Phases Next Steps Phase 1 – Determine whether expenses and capital expenditures recorded for 2012 were reasonable; establish methodology to determine market-related costs attributable
Slide 9: SONGS Regulatory – CPUC OII Testimony
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 8 SONGS Regulatory – CPUC OII Testimony • August 2013, SCE Phase 2 testimony requested return on 2013 investment1: $425 million used and useful, materials and supplies – 7.90% through December 2017 (currently aut
Slide 10: Fuel and Purchased Power Account
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 9 Fuel and Purchased Power Account • The Energy Resource Recovery Account (ERRA) balancing account was established in 2004 • Rates set based on annual forecast submitted in August – compliance review application fo
Slide 11: 2013 Core and Basic EPS Guidance
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 10 2013 Core and Basic EPS Guidance Note: See Use of Non-GAAP Financial Measures in Appendix Key Assumptions: • SCE rate base model earnings of $3.39 per share • Impact of SONGS shutdown ($0.20) per share • Operati
Slide 12: Drivers of Increased 2013 EPS Guidance
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 11 Drivers of Increased 2013 EPS Guidance Note: See Use of Non-GAAP Financial Measures in Appendix Co re EP S Ba sic EP S EPS Guidance Midpoint 2/26/13 SCE $3.70 • Rate base model earnings of $3.39 • Income tax rep
Slide 13: Creating Shareholder Value
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 12 Creating Shareholder Value Resolve Uncertainties Create Sustainable Earnings and Dividend Growth Position for Transformative Sector Change • SCE 2012 GRC • SCE 2013 cost of capital • SCE 2012 FERC formula rate s
Slide 14: Appendix
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 13 Appendix
Slide 15: Updates Since Our Last Presentation
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 14 Updates Since Our Last Presentation • Third quarter and year-to-date results • Increased earnings guidance (p. 10-11) • New Slides SONGS – NRC Inspection Reports (p. 22) CAISO Load Projections (p. 27) Sola
Slide 16: SCE Core EPS and EIX Dividend Growth
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 15 $1.16 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $2.07 $2.25 $2.68 $3.01 $3.33 $4.10 $3.65 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2007 2008 2009 2010 2011 2012 2013 SCE Core EPS EIX Dividend Paid (37%) EIX Dividend Growth
Slide 17: SONGS – Supplemental Data
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 16 SONGS – Supplemental Data 1 Includes direct operations and maintenance costs, depreciation, and return on investment 2 In 2005 the CPUC authorized expenditures of approximately $525 million ($665 million based o
Slide 18: SONGS – Asset Impairment
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 17 SONGS – Asset Impairment Exposure to refunds for amounts collected from customers Exposure to recovery of net investment from future rates Regulatory Asset (as of 9/30/13)1 Net Investment at 6/6/2013 Less Impair
Slide 19: SONGS – Recovery Examples
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 18 SONGS – Recovery Examples Docket# Owner & Project Return of Investment Partial Return on Investment D.92-08-036 SCE – SONGS 1 generating plant D.12-10-051 SCE – GRC Legacy Meters D.11-05-018 PG&E – GRC L
Slide 20: SONGS Third-Party Recovery – MHI Warranty
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 19 SONGS Third-Party Recovery – MHI Warranty Warranty Summary Request for Arbitration • 20-year warranty: Repair or replace defective items Specified damages for certain repairs $138 million liability limit,
Slide 21: SONGS Third-Party Recovery – NEIL Insurance
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 20 SONGS Third-Party Recovery – NEIL Insurance • Accidental property damage and accidental outage insurance through Nuclear Electric Insurance Limited (“NEIL”) Accidental Property Damage Policies – $2.5 million d
Slide 22: SONGS – Decommissioning
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 21 SONGS – Decommissioning Decommissioning Trusts • Decommissioning Trust contributions recovered in rates approved by CPUC in triennial proceeding • December 2012, A.12-12-013 Joint Filing with SDG&E submitted • J
Slide 23: SONGS – NRC Inspection Reports
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 22 SONGS – NRC Inspection Reports September 2013 Inspection Report to SCE • Preliminary “white” finding (low to moderate safety significance) and an apparent violation regarding Unit 3 steam generators related to M
Slide 24: SCE System Reliability
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 23 Coastal Power Plants Local Reliability Areas (generalized) California Transmission System (partial, generalized) CA Once Through Cooling Policy – Legend • Short-term SONGS closure solutions Transmission – 220
Slide 25: SCE 2015 CPUC General Rate Case
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 24 SCE 2015 CPUC General Rate Case • July 2013, Notice of Intent (NOI) submitted to the CPUC’s Office of Ratepayer Advocates (ORA) • Request sets base revenue requirement for 2015 – 2017 Includes operating costs
Slide 26: CPUC Cost of Capital
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 25 3 4 5 6 7 10/1/12 10/1/13 10/1/14 10/1/15 Ra te (% ) CPUC Cost of Capital • Interest rates did not trigger change to SCE’s Return on Equity (ROE) for 2014 and will continue at 10.45% As of September 2013, inde
Slide 27: 2012 FERC Formula Rate Settlement
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 26 2012 FERC Formula Rate Settlement • August 2011, FERC accepted SCE’s formula rates subject to refund and settlement • August 2013, SCE filed settlement for rates retroactive to January 1, 2012 • 10.45% settlemen
Slide 28: CAISO Load Projections
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 27 CAISO Load Projections Renewables • Current 33% RPS by 2020 set as floor for CPUC per AB327 • More variable and less predictable output • Output does not fully match demand • Need for flexible, dispatchable capa
Slide 29: Distributed Generation
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 28 Distributed Generation • Distributed generation (DG) will be a key part of the future generation mix due to: Rapidly declining cost of solar photovoltaic panels Challenges to building new generation and tran
Slide 30: Solar PV Cost Trends
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 29 Solar PV Cost Trends $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 1998 2000 2002 2004 2006 2008 2010 2012 Me dia n V alu e p er W at t ( 20 12 $ ) ≤ 10 kW 10-100 kW > 100 kW Over the past decade, rea
Slide 31: All Generation Cost Trends, Unsubsidized
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 30 All Generation Cost Trends, Unsubsidized $0.149 $0.109 $0.065 0.061 $0.086 $0.089 $0.045 $0.123 $0.067 $0.108 $0.144 $0.086 $0.000 $0.050 $0.100 $0.150 $0.200 $0.250 Solar PV (Distributed) Fuel Cell Coal Gas (CC
Slide 32: Legislative Rate Reform – AB 327
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 31 Legislative Rate Reform – AB 327 September 2013, Assembly Bill 327 (Perea) provides the following changes to rate structure (subject to further CPUC rulemaking) • Rate Reform Removes tier restrictions on resid
Slide 33: SCE Distribution Program
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 32 SCE Distribution Program • Average equipment age beginning to approach mean time to failure making it critical to achieve equilibrium replacement rates • 2015 GRC request represents ~120% increase in infrastruct
Slide 34: SCE Energy Efficiency Programs
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 33 SCE Energy Efficiency Programs 1.7 1.6 0.9 0.9 2011 2012 2013 2014 Energy efficiency programs updated for 2013 – 2014 • SCE is a national leader 2012 energy savings = 1.8% of retail sales1 • 2013 budget of $34
Slide 35: EME Bankruptcy
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 34 EME Bankruptcy • December 2012, EME and certain of its wholly-owned subsidiaries filed voluntary petitions for Chapter 11 bankruptcy • EIX recorded full impairment of EME in 2012 and no longer consolidates EME e
Slide 36: Non-GAAP Reconciliations: SCE Core EPS to Basic EPS
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 35 Earnings Per Share Attributable to SCE Core EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Total Non-Core Items Basic EPS SCE Core EPS Non-GAAP Reconciliations Note: See Use o
Slide 37: Non-GAAP Reconciliations
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 36 Non-GAAP Reconciliations ($ millions) Note: See Use of Non-GAAP Financial Measures. EME’s financial results are reported as non-core for all periods Q32012 $363 (37) $326 $– 31 (167) (136) $190 Q32013 $477 (14)
Slide 38: Use of Non-GAAP Financial Measures
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM October 29, 2013 37 Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysi