Edison International · NYSE:EIX
Edison International — Q4 2010 Earnings Presentation
40 slides from Edison International's earnings presentation, Feb 28, 2011
Slide 1: Fourth Quarter 2010 Financial Teleconference
Exhibit 99.2 LeadingQuarter Fourth Februarythe 28,Way 2011 2010 inEDISON Electricity Financial INTERNATIONAL® Teleconference SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements not differ them Analysis” www.edisoninvestor.com. February purely to materially reflect the 28, in historical, contained Way Edison 2011 new from inStatements 1information, Electricity International’s EDISON are in current this forward-looking These presentation ex
Slide 3: Fourth Quarter Earnings Summary
Leading Fourth Non-Core SCE EMG EIX and Total Basic Diluted Core $194 GAAP ($ $166 Q4 1 per February See millions) 09 share other parent $0.51 $0.02 EPS1 EPS Earnings $190 $0.51 Non-Core Earnings EPS 0.13 0.04 Q4 Quarter Earnings EPS the 28, for $0.59 10 Items $0.65 0.10 (0.07) $0.59 $0.56 $— compan
Slide 4: SCE Fourth Quarter EPS
Leading SCE EPS Core1 Non-Core Basic attributable Key Higher Income Total Recent •December 1 February Rate Operating 50% In SeeFebruary December November Core Q4 Fourth $0.05 Use EPS base bonus $0.51 Developments operating depreciation net taxes 09 the 28, Earnings Items of 31, financing Q4 growth t
Slide 5: EMG Fourth Quarter EPS
Leading EMG EPS Core1 Non-Core Basic attributable Key Merchant Midwest Homer EMMT Natural Taxes Total Recent •7 1 2 Received SeeCore Q4 Wind Big $(0.03) EPS Fourth and $0.13 Laredo Cedro Developments City (November -gas 09 the Completed Sky Use February Generation trading coal2 Earnings Items other
Slide 6: Full-Year Earnings Summary
Leading Full-Year EMG2 Non-Core SCE EMG(1.89) EIX and Total Basic $2.68 $1.08 EPS1 EPS Diluted Core GAAP ($ $849 2009 1 $(0.01) 2 See February0.68 the Earnings $3.25 Items millions) other parent Variance $3.01 $0.18 0.59 Way Earnings $2.59 2010 Non-Core0.10 Earnings EPS Earnings per Includes EPS$2.5
Slide 7: SCE Historical Rate Base and Core Earnings
Leading SCE ($ Rate $15.5 2005 $9.8 $10.8 $11.7 Core 1 Earnings1 billions) Base Historical $1.82 – 2010 2006 February See the 10% 2007 $1.89 28,SCE Way CAGR Rate $14.1 2008 2011Core in $2.07 6Electricity Base Core 2009 EPS $2.25 and EDISON Earnings1 Non-GAAP 2010 $2.68 Earnings SM $3.01 11% Growth R
Slide 8: SCE Capital Expenditure Forecast
Leading SCE ($ $4.4 $4.8 2010 $3.8 $4.0 Forecast Solar $% Edison Generation Transmission Distribution By 2009 2012 Other FERC Total 1 expenditure February 2010. Currently billions) Classification Proceeding% $4.3 Capital 2011 CPUC 17.5 100 Photovoltaic CPUC Cases SmartConnect™ the $4.4 28, 100 2012
Slide 9: Bonus Depreciation Overview
Leading Bonus Sept 50% Property Self-constructed Legislation February 8, 100% Depreciation 2010 the acquired 28,100% passed Way 2011property in 50% after during 8inElectricity Overview EDISON 2010 2010 2007 9/8/2010 2012 started completed extended 2011 and INTERNATIONAL® SM and after before 2012 bon
Slide 10: Bonus Depreciation Summary of Results
Leading •Summary Results Increases Provides Delays Eliminates million February Bonustax from in depreciation the additional 28, deferred of an allocation income Way Bonus the 2011 EIXrecapture inconsolidated taxes 9tax cash Depreciation Electricity EDISON expected payments benefits and flow ofreduce
Slide 11: SCE Rate Base Forecast
Leading SCE ($ Rate $21.2 $18.2 $20.8 $22.6 $18.0 2011 1 regulatory (6) expenditure 2 February Forecast Rate billions) estimated Base Rate –$19.9 2012 $22.8 Base 2014 the 28, Base 8-11% approvals; range 2013 forecast Way related CAGR1,2 2011 impact Forecast 2014 includes: in $24.7 10 earnings Electr
Slide 12: Midwest Generation Operational Statistics
Leading Midwest Operational •Q4 All-in $44.54 Average 5,172 1 2 3 Total Forced Capacity Equivalent Load 09MW Average FebruaryQ4 Generation Factor $47.88 Includes the realized Outage Generation 10 Factor –Other Statistics Way Availability Six 2009 Average See 28, 79.3% $47.97 Realized 2011Rate the mi
Slide 13: Homer City Operational Statistics
Leading Homer Operational Q4 Total Forced Capacity Equivalent Load All-in $58.86 Average $56.66 1,884 1 2 3 09Generation Factor MW Average Q4 February$59.25 City Outage Includes the realized Factor 10 Availability –Other Statistics Way (Pennsylvania) 84.7% Three 2009 Average See 28, $59.42 Realized
Slide 14: EMG Hedge Program Status
Leading EMG December 2011 Midwest Homer Total Average Coal 1 periods 24-hour 2 City 3 February The Includes plant under 2012 estimated Hedge above average City and Northern the price Generation 28, that 31, hedging 2013 contract during Way hedge Program 2011 ($/MWh)1 ($/MWh)1,3 2010 price/MWh are GW
Slide 15: EMG Capital Expenditures
Leading EMG December ($ 2011 Midwest Homer Plant Environmental Renewable Capital Turbine Other Total 1 retrofit controls applicable of compliance February Midwest millions) forthcoming 2012 $503 capital Capital capital initial City &commitments to the Generation 28, construction 31, at 2013 be Gener
Slide 16: EMG Wind Portfolio and Pipeline
Leading EMG December Portfolio 1,335 55 3,600 Recent •Wind Estimated Prior Investment MW Projects Turbine Total 1 2 February 949 866 November December February 75 Amounts Data MWMW Spend to 610 MW Turbine Project Wind MW as Activities in commitments/inventory2 under in the & 28, available of $1,027
Slide 17: Wind Funding Sources and Expenditures
Leading Funding ($ $20 $394 $1,125 $551 12/31/09 $279 1 2 funds 3 4 February EME’s Estimate Community Including millions) $242 $48 $459 are $624 the for turbine New 28, received. million based million accruals. Way 2010-11 2011 Wind Mitsubishi supply on in Bank/Vendor 16 Bank/Vendor Electricity Nort
Slide 18: 2011 Earnings Guidance
Leading 2010 2011 Results Low Non-core legislation Tax Actual/Midpoint by SCE EMG EIX Total Southern Assumptions 48% Edison •Other 1 February Average Approved Forward EMMT Normal No Excludes See key settlement core basic parent energy changes Mid equity, –Earnings $3.01 non-core $3.48 Use –tax 0.59
Slide 19: Reconciliation of 2010 Core Earnings to 2011 Guidance
Leading 2011 Reconciliation EIX 0.33 $3.48 (0.01) (0.22) 2010 $2.75 1 February SeeParent (0.71) Core 2010 Use (0.04) (0.06) the 28, of Guidance 2010 Co. Way (0.02) Non-GAAP 2011 of SCE Rate in Core 18 Electricity +0.07 -EDISON Base Midpoint Earnings Financial Generation EMG SM INTERNATIONAL® Per (0.
Slide 20: Appendix
Leading the February Appendix 28,Way 2011in19 Electricity EDISONSM INTERNATIONAL®
Slide 21: Updates Since Last Presentation
Leading •Updates February Q4 10Capital SCE Bonus 2011 Earnings results Depreciation the Since 28,Way 2011 Expenditures, Our and Guidance in20 Last standard Electricity (pp. EDISON Presentation 8and & information Rate Forward 9) SM INTERNATIONAL® Base and Curves Core(pp. Earnings 17, 18 (pp. & 30)6,
Slide 22: Liquidity Profile
Leading Liquidity December ($ EME EMG & Sources Credit Cash Available 1 2 subsidiary 3 party February Edison Excludes EME Capital millions) & dividend Edison Facility had short-term SCE the Capital 28, Profile Liquidity parent 31, of the corporate Way 2011 EIX Lehman Subs 2010 restrictions. $2,894 (
Slide 23: Debt Maturity Profile and Credit Facilities
Leading December ($ Debt Short- SCE EMG1 EIX Expiration SCE2 EME MWG EIX2 1 2 Laredo millions) —$— Maturity Profile —$— and — February144 — $98 the 600 — Ridge $— 500 $— 31, — Long-Term of 28,58 1,426 million Way 2011 — Credit $— — — 2010 Profiles 566 $2,894 construction — in — 2011 $1,050 2012 —260
Slide 24: SCE Appendix
Leading SCE February Appendix the 28,Way 2011in23 Electricity EDISONSM INTERNATIONAL®
Slide 25: SCE Cost of Capital Mechanism
Leading SCE Moody’s Spot 10 8 9 Moving 7 5 4 rate1 Cost Starting period. Sep-07 mechanism Triggers •If At SCE’s 1 February As In Cost Spot index the Baa September 2008 ofof ofisthrough Average authorized rate January Dec-07 exceeds based Capital 28, In Way ,Capital Utility Index=6.22% 2011 daily CPU
Slide 26: SCE Estimated GRC Schedule
Leading •SCE Estimated Q1 July Notice Intent Evidentiary February 2012 Final Q2 19 2012 Filed GRC Decision of Q3 November the 28, GRC 2010 CPUC Q4 ALJ Way application 2011 Q1 Application 2011 expected Proposed in GRC Q2 25 23 Electricity EDISON Q3 Opening Projected forecast Q4 inHearings Reply Decem
Slide 27: SCE Major Transmission Projects Status
Leading SCE Case 2010 subject Special Tehachapi A. Federal in Eldorado-Ivanpah Transmission Alberhill September February Q2 07-06-031 Regulatory Date FERC 2011 to Use ROD the 28, Permit refund of October 2009, 2009 Way Permit ER09-1534 2011 Status Final from 06/28/07 and to Key FERC inFederal 26 the
Slide 28: SCE Twelve Months Results
Leading SCE ($ Twelve Utility Earning Activities Fuel Operation Depreciation, Property Gain Operating Income Dividends subject Net Core Non-Core Global Tax Regulatory Total 1 millions) interest income impact and Results on Earnings operating SCE FebruaryUtility Cost- settlement to Months See before
Slide 29: EMG Appendix
Leading EMG February Appendix the 28,Way 2011in28 Electricity EDISONSM INTERNATIONAL®
Slide 30: EMG Portfolio Overview
Leading EMG December 1,884 141 145 53 305 5,172 190 Operating 461 Coal Other Total Wind Pipeline2 Under Thermal Natural 1 2 3 another February Natural Owned Deliveries 145 40 114 7,096 9,853 1,335 Development Business 67 153 Construction 19 Gas Gas3 source the Pipeline 28, or gas ~3,600 Platform1 96
Slide 31: Forward Power Price Curves
Leading 2011 Balance -On $55 $30.23 Flat $23.10 Off-peak $38.37 On-peak 1/31/2011 /MWh $45 Jan $20 $25 $30 Source: February Feb PJM NiHub peak $43.99 Forward $40 Broker Mar of the West $38.13 28, $50.68 $50 Year $Flat Way Apr 2011 $35 Curves $45 Flat quotes (Feb May in30 /MWh Electricity –EDISON Jun
Slide 32: EMG Capacity Sales
Leading EMG December Installed Capacity Price MW January June Midwest Homer 1 RPM 2 3 auctions, 4 February Capacity Excludes Other Includes MW 1, per auction. Capacity City 2011 2012 2013 capacity 1, the Unsold Generation Average Capacity1 and 28, MW 31, 2011 the not 72 Way 1,884 to 2011 other 2010
Slide 33: EMG Covenant Status
Leading EMG Status 12/31/09 EME Funds Corporate-Debt-to-Capital Midwest Debt Homer Senior Covenant February to Credit Debt at Flow Rent City Capitalization the Generation 3/31/10 28, Threshold threshold Covenant Available Way Lease Service Facility 2011in 6/30/10 Agreement 32 (not (less Electricity
Slide 34: EMG Environmental Compliance Timelines
Leading EMG Completed (Cost Compliance 0.44 0.195 0.28 0.15 Construction 0.11 0.13 NOx Unit-specific Fleet-wide 1 Unit 2 February Simplified Requirement Joliet, County 19 SO2 included –Crawford Illinois atthe 28, Mercury Fisk, average 2010 and Way Deadlines deadlines summary 2011 timelines technolog
Slide 35: EMG Comparative Operating Information
Leading EMG Fav./(Unfav.) Q4 Midwest Total Energy Load Homer Generation Equivalent Performance Forced Pricing Average Flat Basis February 09 energy 8,588 requirement (PJM Comparative Q4 City outage only Information the realized cost Generation 28, 10 availability (in price 7,708 West Way contracts 2
Slide 36: EMG Adjusted EBITDA Reconciliation
Leading EMG December ($ Reconciliation Earnings Addback Discontinued Interest Income Depreciation EBITDA2 Production Lease Addback: Adjusted 1 2 millions) –termination February Adjusted Earnings from expense income taxes the $55 (Deduct): EBITDA See31, 164 tax 28,Way and continuing (benefits) $10 op
Slide 37: Reconciliation of Core to GAAP Earnings
Leading ($ Reconciliation Attributable Earnings Core Non-core SCE health regulatory EMG Total EIX 1 2 millions) parent –Core GAAP –$167 Earnings1 non-core February–42 tax care tax See write-off tax discontinued the 34 Non-GAAP items Earnings settlement settlement $181 items legislation company settl
Slide 38: Reconciliation of Earnings Per Share
Leading Reconciliation Earnings Attributable Non-core Tax Health Regulatory Generator Total SCE 1 settlement Core GAAP non-core care FebruarySee the Per items settlement/refund EPS Earnings and 28,legislation Use Way Earnings to2011 Share of items — SCE Non-GAAP tax ofin SCE —Non-GAAP items 37Electr
Slide 39: EMG Realized Price Reconciliation
Leading EMG ($ Q4 Generation Less: All-in Add Realized Average Reconciliation Operating Renewable Fuel Midwest Homer Other Segment February millions) 09back: costs Costs Unrealized Other revenues average Q4 City the realized revenues fuel Generation 28, 10 revenues $150 Unrealized (GWh) projects Way
Slide 40: Use of Non-GAAP Financial Measures
Leading Use United principles subsidiary period Core companies attributable earn principal therefore sale management revenues avera A presentation February either .of ‘sand Adjusted gto Non-GAAP weighted Edison contracts reconciliation the performance results period. other 28, core Commission intern