Slide 1: Second Quarter 2015 Financial Results
July 30, 2015 Second Quarter 2015 Financial Results
Slide 2: Forward-Looking Statements
July 30, 2015 1 Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-looki
Slide 3: Second Quarter Earnings Summary
July 30, 2015 2 Q2 2015 Q2 2014 Variance Core Earnings Per Share (EPS)1 SCE $1.18 $1.11 $0.07 EIX Parent & Other (0.02) (0.03) 0.01 Core EPS1 $1.16 $1.08 $0.08 Non-Core Items2 SCE $ – $ – $ – EIX Parent & Other – – – Discontinued Operations – 0.56 (0.56) Total Non-Core $ – $0.56 $(0.56) Basic EPS $1
Slide 4: YTD 2015 Earnings Summary
July 30, 2015 3 YTD 2015 YTD 2014 Variance Core Earnings Per Share (EPS)1 SCE $2.12 $2.04 $0.08 EIX Parent & Other (0.06) (0.06) – Core EPS1 $2.06 $1.98 $0.08 Non-Core Items2 SCE $ – $(0.29) $0.29 EIX Parent & Other 0.02 – 0.02 Discontinued Operations – 0.49 (0.49) Total Non-Core $0.02 $0.20 $(0.18)
Slide 5: CPUC and FERC Cost of Capital
July 30, 2015 4 CPUC and FERC Cost of Capital 3 4 5 6 7 10/1/12 10/1/13 10/1/14 10/1/15 10/1/16 Rat e (% ) CPUC Adjustment Mechanism Moody’s Baa Utility Index Spot Rate Moving Average (10/1/14 – 4/1/15) = 4.69% 100 basis point +/- Deadband Starting Value – 5.00% CPUC – 48% common equity and Return o
Slide 6: SCE Capital Expenditures Forecast
July 30, 2015 5 SCE Capital Expenditures Forecast • No change from prior forecast • Growth driven by infrastructure replacement, reliability investments, distribution resources plan investments and public policy requirements Note: Forecasted capital spending subject to timely receipt of permitting,
Slide 7: SCE DRP Capital Expenditure Estimates
July 30, 2015 6 SCE DRP Capital Expenditure Estimates Time Period Capital Expenditures CPUC Approval Mechanism 2015-2017 Distribution Automation $40-70 million • Proposed memorandum account to record associated revenue requirement until expenditures are authorized by CPUC Substation Automation $30-6
Slide 8: SCE Rate Base Forecast
July 30, 2015 7 SCE Rate Base Forecast • No change from prior forecast • FERC rate base includes Construction Work in Progress (CWIP) and is approximately 23% of SCE’s rate base forecast by 2017 • Excludes SONGS regulatory asset ($ billions) Request Range $23.1 $25.0 $26.9 $23.6 $26.0 $28.4 2015 201
Slide 9: 2015 Financial Assumptions
July 30, 2015 8 2015 Financial Assumptions ($ billions) SCE Capital Expenditures SCE Authorized Cost of Capital Other SCE Items CPUC Return on Equity 10.45% CPUC Capital Structure 48% equity 43% debt 9% preferred FERC Return on Equity Comparable to CPUC ROE EIX will provide 2015 earnings guidance af
Slide 10: EIX Strategy Should Produce Superior Value
July 30, 2015 9 EIX Strategy Should Produce Superior Value Sustainable Earnings and Dividend Growth Positioned for Transformative Change Rate Base and Core Earnings Growth • 7 – 9% average annual rate base growth through 2017 Constructive Regulatory Structure • Decoupling • Balancing accounts • Forw
Slide 11: Appendix
July 30, 2015 10 Appendix
Slide 12: SCE Customer Demand Trends
July 30, 2015 11 SCE Customer Demand Trends Kilowatt-Hour Sales (millions of kWh) Residential Commercial Industrial Public authorities Agricultural and other Subtotal Resale Total Kilowatt-Hour Sales Customers Residential Commercial Industrial Public authorities Agricultural Railroads and railways I
Slide 13: SCE 2015 CPUC General Rate Case
July 30, 2015 12 SCE 2015 CPUC General Rate Case November 2013, 2015 GRC Application A.13-11-003 sets 2015 – 2017 base revenue requirement • Includes operating costs and CPUC jurisdictional capital • Excludes fuel and purchased power (and other utility cost-recovery activities), cost of capital, and
Slide 14: Earnings Non-GAAP Reconciliations
July 30, 2015 13 Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Core Earnings SCE EIX Parent & Other Core Earnings Non-Core Items SCE EIX Parent & Other Discontinued operations Total Non-Core Basic
Slide 15: Use of Non-GAAP Financial Measures
July 30, 2015 14 Use of Non-GAAP Financial Measures 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 analysis of performance. Core earnings are a