Edison International · NYSE:EIX
Edison International — Investor Presentation (May 2023)
20 slides from Edison International's investor presentation, May 12, 2023
Slide 1: Investor Guide to the SCE 2025 General Rate Case
MAY 12, 2023 INVESTOR GUIDE TO THE SCE 2025 GENERAL RATE CASE
Slide 2: Forward-looking statements
1 Edison International | Investor Guide to SCE 2025 GRC Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historica
Slide 3: Key Takeaways
2 Edison International | Investor Guide to SCE 2025 GRC Key Takeaways 1. The 2024 proposed revenue requirement reflects SCE’s 2021 GRC Track 4 request as of February 24, 2023, adjusted for the Commission’s Decision on SCE’s 2023-2025 Cost of Capital and the April 14, 2023 Proposed Decision Adopting
Slide 4: SCE will focus on reliable, resilient and ready electric service during the 2025 GRC cycle
3 Edison International | Investor Guide to SCE 2025 GRC During 2025 GRC cycle, SCE will focus on advancing its core commitment to safely provide electric service for customers’ needs today and the clean energy transition Reliable Resilient Ready Improve the reliability of the grid so SCE can meet cu
Slide 5: GRC request includes initiatives for reliability, resiliency, and readiness
4 Edison International | Investor Guide to SCE 2025 GRC SCE’s GRC request includes initiatives and investments necessary to meet the critical objectives of reliability, resiliency, and readiness Safety Reliability Resiliency Clean Electricity Operational & Service Excellence Affordability Addressing
Slide 6: GRC includes next steps as SCE responds to critical developments
5 Edison International | Investor Guide to SCE 2025 GRC SCE’s GRC includes next steps in its evolution as it responds to critical developments for its customers and communities Significant grid improvements required to serve growing customer needs, amid an accelerating pace of change The magnitude a
Slide 7: Infrastructure replacement work ramps up as wildfire mitigation stabilizes
6 Edison International | Investor Guide to SCE 2025 GRC Infrastructure replacement work temporarily reduced to address emergent wildfire mitigation need 2025 GRC ramps up infrastructure replacement work as wildfire mitigation activities stabilize and SCE increases field resources 1. SCE’s 2025 GRC,
Slide 8: Wildfire and PSPS mitigation request builds on SCE's objectives to reduce risk
7 Edison International | Investor Guide to SCE 2025 GRC SCE’s request for wildfire and PSPS mitigation activities builds upon and advances SCE’s objectives to reduce risk 1. Nominal dollars, including overhead allocations 2. Undergrounding miles shown reflects the number of overhead miles converted
Slide 9: SCE is facing the fastest electricity demand growth in decades
8 Edison International | Investor Guide to SCE 2025 GRC SCE is facing the fastest electricity demand growth in decades, which drives significant investments in the grid Between 2023 and 2035, load growth is anticipated to increase each year at a rate that is tenfold the annual rate that load growth
Slide 10: Climate adaptation request is a transitional step
9 Edison International | Investor Guide to SCE 2025 GRC 2025 GRC climate adaptation request of ~$115 million of capital investment is a transitional step towards adapting to physical climate risks in the future1 Climate adaptation investments in 2025 GRC address physical climate risks that could occ
Slide 11: GRC request underpins $38–43 billion 2023–2028 capital expenditure forecast
10 Edison International | Investor Guide to SCE 2025 GRC Range Case2 5.7 5.7 6.6 6.7 6.7 6.4 $6.0 $6.2 $7.5 $8.0 $8.1 $7.7 2023 2024 2025 2026 2027 2028 GRC request underpins ~$38–43 billion 2023–2028 capital expenditure forecast; substantial additional investment opportunities offer upside 1. Forec
Slide 12: Over 85% of capital investments are in the distribution grid
11 Edison International | Investor Guide to SCE 2025 GRC Over 85% of SCE’s capital investments are in its distribution grid, consistent with wires-focused strategy 1. Includes utility-owned storage SCE forecasts investing $38–43 billion from 2023 to 2028 to support SCE’s wildfire mitigation strategy
Slide 13: GRC request supports 6–8% rate base growth 2023–2028
12 Edison International | Investor Guide to SCE 2025 GRC Range Case2 $41.6 $43.5 $48.0 $50.3 $52.6 $55.2 GRC request supports ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside 1. Weighted-average year basis 2. Range Case rate base reflects capital expendi
Slide 14: Electrification will improve total energy affordability over time
13 Edison International | Investor Guide to SCE 2025 GRC Although electric bills increase in near term, electrification will improve total energy affordability over time SCE’s GRC request balances affordability with need to provide safe electric service that is reliable, resilient, and ready for cus
Slide 15: Proposed procedural schedule results in a final decision in December 2024
14 Edison International | Investor Guide to SCE 2025 GRC SCE’s proposed procedural schedule would result in a final decision in December 2024 Event SCE Proposal ✓ Application Filed 5/12/2023 Mandated Workshop 5/30/2023 Protests and Responses to Application 6/12/2023 Pre-hearing Conference 6/30/2023
Slide 16: Appendix
APPENDIX
Slide 17: SCE forecasts a 2025 Test Year revenue requirement of $10.3 billion
16 Edison International | Investor Guide to SCE 2025 GRC SCE forecasts a 2025 Test Year revenue requirement of $10.3 billion; increase of $1.9 billion over proposed 2024 amount 1. Adjusted for decision on SCE 2023–2025 Cost of Capital and pending wildfire self-insurance settlement 2. Previously auth
Slide 18: 2025 GRC request would increase 2025 test year revenue by $1.9 billion
17 Edison International | Investor Guide to SCE 2025 GRC 2025 GRC request would increase 2025 test year revenue by $1.9 billion, followed by post-test year increases in 2026–2028 1. Test Year increase is shown relative to SCE’s current and requested GRC-related revenue requirement only (i.e., Author
Slide 19: Post-Test Year Ratemaking Mechanism adjusts for inflation
18 Edison International | Investor Guide to SCE 2025 GRC O&M Post-Test Year Ratemaking Mechanism adjusts revenue requirements for inflation during attrition years O&M escalation rates developed using several price indices by functional category Combined O&M and A&G Escalation Rates 2.9% 2.8% 2.8% 1.
Slide 20: Use of Non-GAAP Financial Measures
19 Edison International | Investor Guide to SCE 2025 GRC 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 (losses) internally for financial planning and
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