Edison International · NYSE:EIX
Edison International — Edison Electric Institute Fall Financial Conference 2005
19 slides from Edison International's conference presentation, Nov 7, 2005
Slide 1: Edison Electric Institute Fall Financial Conference
Exhibit 99.1 Edison Electric Institute Fall Financial Conference Handout November 2005
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International’s current expectations and projections about future events based on Edison Internatio
Slide 3: Edison International – Organizational Structure
Edison International – Organizational Structure (1) Edison International Credit Rating (2) BBB / Baa3 Total Assets $35.5 B Generation 13,956 MW Edison Mission Group Southern California Edison Mission Energy Edison Capital Holding Company Credit Rating (2) BBB+ / A3 Credit Rating (2) CCC+ / B2 Credit
Slide 4: Edison International – Strategy
Edison International – Strategy Our strategy seeks to create a balance among • Balance sheet strength • Growth • Dividends We expect to produce total returns above peer averages 3
Slide 5: Edison International – Balance Sheet Strength
Edison International – Balance Sheet Strength Consolidated Recourse Leverage Ratio (1), (2) 70% 69% Strengthening Balance Sheet • $4.8 billion reduction in EIX and MEHC total debt over the past 21 months(3) 61% • Investment Grade ratings at EIX 60% and SCE 56% • Cash balances as of 9/30/05: EIX Long
Slide 6: Southern California Edison
Southern California Edison (1) • One of the largest U.S. electric utilities – 50,000 square-mile service territory – More than 13 million people served – 4.7 million customers – 70 thousand customers added in 2004 PG&E • 85 TWh Retail Sales – 2.8% growth – New summer peak established; up 6%(2) – 11
Slide 7: SCE Capital Expenditures
SCE Capital Expenditures • Average annual expenditures of $2 billion, double previous 5-year average • Investments across all business lines • Expect regulatory decisions on approximately 2/3 of capital investments by early 2006 • Potential Additions: – Mohave Generating Station – Advanced Metering
Slide 8: SCE Rate Base
SCE Rate Base • (1) Rate base increasing 40% from end of 2005 to end of 2009 to meet system growth and reliability requirements • Primary drivers of SCE’s pre-tax earnings (2): – ± $100 million in authorized rate base = ± $9 million – ± 10 bp change in authorized ROCE (3) = ± $8 million – ± 1% chang
Slide 9: Southern California Edison
Southern California Edison • Areas of Focus – Capital investment implementation – Market structure development / reliability – Fair and timely recovery of procurement costs – Customer rates • Key regulatory decisions pending / timing (1) – 2006 General Rate Case - Early 2006 – SONGS Steam Generator
Slide 10: Mission Energy Holding Company and Edison Capital
Mission Energy Holding Company and Edison Capital • 9,030 MWs of Generation (1) – 7,545 MW (84%) coal – 1,289 MW (14%) gas/oil March Point Misc. Wind – 196 MW (2%) wind 84 MWs Midwest Generation 70 MWs Storm Lake 5,876 MWs – 86% merchant 112 MWs • $3.3 billion total debt reduction over the past 21 m
Slide 11: Midwest Generation Operating Performance
Midwest Generation Operating Performance Coal Generation (in TWh) 40 Contract Merchant Balance of Year 30.6 30.7 30 26.6 27.6 27.5 0.4 0.7 8.3 Hedge Volume and Prices (as of 9/30/05) 17.1 20 13.6 Volume Avg. Price Forward Price 26.9 (TWH) ($/MWh) ($/MWh) 26.2 10 22.4 13.9 13.5 (9/30 YTD) 2005 YTD 22
Slide 12: Homer City Operating Performance
Homer City Operating Performance Coal Generation (in TWh) 20 Merchant Balance of Year Hedge Volume and Prices (as of 9/30/05) 15 14.4 14.1 12.9 13.3 12.1 3.4 Volume Avg. Price Forward Price (1) 10 (TWH) ($/MWh) ($/MWh) 5 10.7 2005 YTD 10.7 $44.17 – (9/30 YTD) Hedged 2.2 $43.14 – 0 Unhedged 1.2 – $75
Slide 13: Coal Requirements Under Contract
Coal Requirements Under Contract 120% Coal Supply 111% • Annual coal usage: 101% 100% – Illinois plants use approximately 18 100% million to 20 million tons obtained 91% from the Southern Powder River Basin 80% 78% 78% – Homer City uses approximately 5 million tons obtained from mines located near H
Slide 14: MEHC and Edison Capital
MEHC and Edison Capital • Areas of Focus – Operational Performance • Project Decathlon • Manage fuel supply, emissions, and environmental controls to protect operating margins – Liquidity Requirements Collateral for forward sales Target Capital structure – Growth • Renewables • Thermal (California i
Slide 15: Wind Business Objectives
Wind Business Objectives • Now actively pursuing new renewable (primarily wind) investments – Production tax credits extended for 2 years – New investment in 2005 is targeted at $180 million building to $250 million annually Announced 120 MW wind project in eastern New Mexico Closed 10 MW and 15 MW
Slide 16: Edison International – Dividend Policy
Edison International – Dividend Policy $1.00 $1.00 $0.80 $0.50 $0.00 $0.00 (1) (2) 2001 - 2003 2004 2005 Dividend per share Longer-term, targeting a payout ratio of 45–55% excluding MEHC earnings 1) Dividends paid. 2) Dividend rate. 15
Slide 17: Edison International EPS – 2005 Outlook
Edison International EPS (1) – 2005 Outlook $3.50 $3.01-3.11 $2.87-2.97 $3.00 0.21 0.34 $2.50 $2.20 0.06 $2.00 $1.50 2.14 2.53-2.63 2.80-2.90 $1.00 $0.50 $0.00 Original 2005 Outlook Revised 2005 Outlook Current 2005 Outlook Oct. 2004 Aug. 2005 Nov. 2005 Core Non-core 1) See Appendix for non-GAAP rec
Slide 18: Appendix
Appendix Slide 4: The calculation for the third quarter 2005 recourse leverage ratio of 51% includes common equity and preferred securities as reflected on the EIX balance sheets. Debt includes short- and long-term debt and excludes non-recourse debt from continuing operations totaling $2.4 billion.
Slide 19: Appendix – Reconciliation of Earnings to GAAP
Appendix Reconciliation of Earnings to GAAP Original Revised Current 2005 Outlook 2005 Outlook 2005 Outlook Oct. 2005 . Aug. 2005 . Nov. 2005 . • SCE $ 1.75 $ 1.80 $ 1.80 • MEHC Consolidated 0.34 0.55 – 0.65 0.85 – 0.95 • EC 0.08 0.28 0.27 • EIX parent company and other (0.03) (0.10) (0.12) Core $ 2
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