Edison International · NYSE:EIX
Edison International — Investor Presentation (June 2006)
30 slides from Edison International's investor presentation, Jun 29, 2006
Slide 1: Financial Outlook
Exhibit 99.1 Financial June 29, 2006 Outlook
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “will,” necessarily to on decisions activities; initiatives rate the emission collateral including changes Additional Commission. reports speak 1 differ, its cost wholesale and presentation not common only “could,” filed and output; in directly or credits in an
Slide 3: Edison International value drivers: EIX, SCE and EMG
Edison EIX SCE Tight 63%—Expand potential Strengthened 3-year Procurement Financial Rate EMG Low-cost EBITDA Strong Effective Debt New Diversify Focus Thermal, Renewables 1 2 Integrated Value base generation reduction reserve Value on forward customer operational International—Value See for exceeds
Slide 4: Southern California Edison (SCE)
System Growth Southern 3 California Capital Edison Investment (SCE) Execution Regulatory Framework Dependable Earnings
Slide 5: Strong SCE System Growth
System Strong SCE 90,000 88,321 63,463 26,000 MW 22,998 2001 SCE’s LA,Value New Growth Demand 2002 Expect 360,000 Peak service customer 80,000 83,979 63,021 22,000 21,934 Increased 1 4 2 3 Growth of meter demand Morenoto 2006the 2003 Driver meters1figures exceed 5.6% 10 territory 70,000 77,437 18,00
Slide 6: SCE Five-year Capital Investment Forecast
SCE System Five-year 3.0 2.3 2006 Generation Transmission Distribution Current $ CPUC FERC Project Total In 5 %addition 2.5 2.3 Value CPUC 2007 11.0 Rate Rate 2.0 2.3 Specific Growth Forecast capital 100 1.5 2.1 2008 Driver to 1.5 Cases Cases 7.0 GRC 2.5 above: 1.0 2.0 14 Capital 63 0.5 2009 by spen
Slide 7: SCE System Capital Investment and rate base growth
SCE System Capital 2009-2010 18.0 Growth 15.8 2003 2006 2009 2005 6.9% 1 6 Includes 16.0 14.0 Value GRC 2006 7.3% investment Growth Rate 14.0 12.6 impact 2007 1increase Driver 7.7% CPUC 12.0 11.7 Capital 2008 11.1% of –program 10.9 10.0 primarily Approved Capital 2006 2009 Investment 12.9% 10.2 8.0
Slide 8: Existing and planned transmission projects
System Existing NEVADA Las SCE Midway Palmdale (PG&E) Pardee Sylmar Palm Los Ana Santa Valley San In Project Date DPV1 Antelope Rancho 2009 Vincent Substation Renewables Reliability 7 Service Vegas Angeles Diego Palo Value has Eldorado (Millions) $Phoenix Clarita & Mohave 139 Name Vista Growth Vista
Slide 9: Mountainview and San Onofre steam generator replacement
SCEOnofre System 969 Mountainview San 2150 1 8 MW Value MWGrowth Pending intotal Driver Nuclear theplaced heart (SCE Capital regulatory – Execution Generation of share inInvestment SCE’s service approval 75.05%) load Station in time Execution center 1toUnit transfer to Began help 2 SGR Regulatory me
Slide 10: California's Rate Recovery Framework
System California’s Rate General Recent Approved Investors’ 2008 2006 48% SCE Procurement Energy January 9 Value Base common has Cost 2006 Resources Growth 2006 Rate filed Return 97% and of Driver regulatory GRC Cost Capital Case ERRA aequity Operations of request Capital 2006-2008 –Recovery Decisio
Slide 11: SCE Dependable Earnings
System SCE 700 658 2004 Oct …which 1 2 10 2004 600 595 Value provides 2005 Growth See 500 613 are Strategic 2006 Driver appendix projected 400 570 EIX AssumingCapital 2007 300 586 –same high Plan Dependable 200 570 for toInvestment quality Guidance grow non-GAAP 100of0inand cost Core line Actual Exe
Slide 12: Edison Mission Group (EMG)
Low-Cost Edison 11 Mission Coal Operational/Marketing/Trading Group (EMG) Capabilities Cash Position Growth Opportunities
Slide 13: EMG Low-Cost Midwest Coal Generation
EMG Low-Cost Midwest Big San Mesa Homer Ambit 7,537 MW 1,439 431 9,407 Strong 1 2 3 12 4, 3Juan Wildorado –Total Wind 2Coal Sunrise 40 Includesoperating City Transferred Generation Gas/Oil Generation MW Coal (80%) (5%) 1,884 & Includes 180 Operational/Marketing/Trading (15%) MW90 platform Other MW 1
Slide 14: EMG Value Drivers: operational capabilities and cash position
EMG –operational Low-Cost Low-cost Strong Effective Balance maturities support Expansion Contracted 1 2 13 Adjusted Value hedging use management coal CashRepay Coal of projects ofand generation Drivers generation cash Operational/Marketing/Trading $800 EBITDA, and providing among of million marketin
Slide 15: EMG Wind Development
EMG Development Wind Projects In-service Under Purchased Option Total Future 180 EME 1 depreciation 2 3 14Includes MW10 285 secured Project –construction wind Turbines Late-stage Wind Count 431 in 537 7Turbines Edison late-stage 252 project Portfolio Portfolio Expertise wind Size 100 Development Cap
Slide 16: EMG Recontracting and Natural Gas-Fired Projects
EMG Recontracting Natural Big IGCC Kern New 2 EMG/BP Early Petroleum Approximately enhanced 15project 4natural River development projects – California Gas-Fired permit hydrogen oil coke - gas-fired 5-year recovery Projects contract 90% fuel applications Generation Thermal phase power market-rate ofg
Slide 17: Performance, Balance Sheet Strength, Growth, Dividends, Shareholder Returns, Guidance
Performance Balance Sheet Strength Growth Dividends Shareholder Returns 16 Guidance
Slide 18: Edison International Earnings Guidance
Edison Recorded •– Core Non-Core SCE Total Key DSM Fuel EMG in Impact Other 1 2 3 EIX MEHC EC 2005; Factors/Assumptions and 2$1.82 EPS: $3.13 1$3.47 incentive Total 3Holding 0.40 on 0.29 International—Earnings Reflects (0.06) Discontinued 4 17SCE: EMG: See assumption: emission 1.13 Guidance Items: e
Slide 19: EMG Midwest Coal Earnings Sensitivities
EMG Coal 20061 Midwest PRB Homer Expected Contracted NAPP Fuel Emission NOx SO2 10% (pre-tax 2006 -($/MWh ($ (0.3) (1.0) 1 2 3 18 4 0.04 (1.2) 0.09 See /MWh million) Cost, Costs, (Aggregate Price Coal Commodity Forward (0.4) (3.8) (Aggregate Fuel2007 –2007 Forward City Full-year 2006-2007 impact) in
Slide 20: EMG Remainder Hedge Sensitivities
EMG Coal Remainder 20061 Hedge NiHub Expected Volume Percent Average PJM Midwest Basis ($/MWh) Homer 8.4 (pre-tax Sensitivities $1/MWh 2007 2006 Increases $ 1 6.4 3.7 12.5 6.7 2 3 19 4 million June CityTWh West Coal Hedge–2007 1, Program Flat City 2006-2007 of hedged impact) Ashedge Gen basis retain
Slide 21: EMG 2008 Coal Hedge Plan Update
EMG Coal Initiated Midwest contemplated. NiHub Homer Forecast Hedged Average Contracted PJM 1 2 3 20 See West Coal –Flat City 2008 generation hedge 2008 generation Gen Transp. Hub Coal Price Hedge June hedge Reflects As of footnotes price Flat May on 33% 39% 3Emissions 26, 1($/MWh) Price (TWh) Plan
Slide 22: Edison International Strong Performance and Growth
Edison utility Performance Strong Competitive Organic Produces Significant 21 International Growth long-term power Balance operating generation –Sheet earnings Strategic in a Strength large business and Plan and cash Growth Foundation rapidly with flow large Dividends growth growing base from servic
Slide 23: Appendix
Appendix BJEpison.
Slide 24: Edison International Organizational Structure and credit ratings
BBB $34.7 Generation 14,441 Southern Mission B+ Edison Credit Customers Coal Operating Total 1. 2. shelf 3. 4. 23 respectively. As Represents Includes / B1 Generation rating Assets /Debt MWs Investments of BRating Baa3 MW International Mission Capital March (EME) Energy California Statistics: 44.8 1
Slide 25: Year-End Core Earnings Reconciliation
Appendix Year Core 2005 Southern Mission Edison EMG EIX Non-core SCE MEHC Total 1 24 parent Consolidated –Ending Earnings 2006 Non-core EIX 1.42 Regulatory Capital –Primarily Energy California March Early Discontinued items –Consolidated 1.14 2007 company Non-GAAP December (Loss) and debt Items 1.44
Slide 26: SCE Core Earnings Reconciliation
Appendix Year 2004 millions, $EPS SCE Non-Core SCE—Regulatory Total 1 25 Core Ending 2005 SCE $EPS October except –Items: Earnings 2006 Non-GAAP $EPS December EPS 2004 2007 $EPS and $570 $727 guidance Strategic tax 31, $EPS Reconciliation $1.75 $2.23 items$EPS 1Plan $586 $915 157 recorded Guidance.
Slide 27: Edison Mission Group Adjusted EBITDA
Appendix Edison ($ 2005 Actual Net Add-back Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted 26 millions) income on 2006 Outlook Mission (Loss) expense income taxes lease early sale items: 1,085.2 EBITDA (Deduct): –2007 tax $442.4 of effec
Slide 28: Assumptions for Coal and Fuel Costs
Assumptions NAPP, Actual spot Fuel Reflects NAPP directly Coal Energy not as Average The emissions 27 aincorporated. proxy earnings prices/new Costs, Contracts Coal future “Northern price in average hedge and Units for excluding issensitivities impact Detail Fuel the athe price (% contracts, proxy 1
Slide 29: EMG Planned Capital Expenditures
EMG Planned 2Q Plant 300 2006 $577 Potential Evaluating 2009 Environmental 28 2006 250 BoY Million In-Service Capex – Capital Expenditures 200 to Expenditures 2007 FGDs 4Q Environmental 150expenditures 2008 Expenditures 2008 Date 100 at Homer 50 0 City Growth at Midwest Units $ Millions 1 Gen and 2W
Slide 30: EMG Available Sources of Liquidity
EMG Available ($ Sources EME MWG $2,292 investments¹ Cash $1 Collateral 1,200 Credit 6/6/06 $500 1 2 3 29Excludes millions) billion & expected Revolver –1,000 Facilities Revolver Collateral² $2,318 Includes Liquidity Short 12/31/05 Liquidity of $$698 millions Pro 800 credit During term $2,809 to $98
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