Edison International · NYSE:EIX
Edison International — Bernstein Innovative Energy Technologies Conference 2014
21 slides from Edison International's conference presentation, Mar 24, 2014
Slide 1: Bernstein Innovative Energy Technologies Conference
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 0 Bernstein Innovative Energy Technologies Conference March 25, 2014
Slide 2: Forward-Looking Statements
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 1 Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, San Onofre Nuclear Generating Station (SONGS),
Slide 3: Trends Driving Industry Change
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 2 • Public policy prioritizing sustainability • Technology and financing innovation facilitating conservation and self-generation • Electric demand growth leveling off creating upward pressure on customer rates • Reg
Slide 4: Electric Power Industry Value Chain
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 3 Generation Transmission RetailDistribution 50 Years Ago Utility Utility Utility Utility 15 Years Ago Utility, Competitive Utility Utility Utility, Competitive Today Utility, Competitive Utility, Competitive Utility
Slide 5: Role of the Utility in a Changing Industry
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 4 Role of the Utility in a Changing Industry Key California Energy Mandates and Legislation: • Renewables – 33% by 2020 • Global Warming – AB32 greenhouse gas emissions reductions to 1990 levels by 2020 • California
Slide 6: Solar PV Cost Trends
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 5 Solar PV Cost Trends $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 1998 2000 2002 2004 2006 2008 2010 2012 Me dia n V alu e p er W at t ( 20 12 $ ) ≤ 10 kW 10-100 kW > 100 kW Over the past decade, real i
Slide 7: U.S. Natural Gas Prices, 2008 – 2013
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 6 ($ /T ho us an d C ub ic Fe et ) $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 U.S. Natural Gas Prices, 2008 – 2013 Source: U.S. Energy Information Agency (Electric Power Market)
Slide 8: All Generation Cost Trends, Unsubsidized
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 7 All Generation Cost Trends, Unsubsidized $0.149 $0.109 $0.065 $0.061 $0.086 $0.089 $0.045 $0.123 $0.067 $0.108 $0.144 $0.086 $0.000 $0.050 $0.100 $0.150 $0.200 $0.250 Solar PV (Distributed) Fuel Cell Coal Gas (CCGT
Slide 9: Central Station vs. Rooftop Solar Economics
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 8 $82 $91 $92 $103 $177 $223 $11 > 20 MW Tracking > 20 MW Fixed Tilt < 20 MW Tracking < 20 MW Fixed Tilt Range of Transmission Cost Commercial Rooftop Residential Rooftop Rooftop to Ground Mount Ratio = 2.2 Central S
Slide 10: SCE Residential Net Metering Rate Structure
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 9 SCE Residential Net Metering Rate Structure 8.2¢ 28.3¢20.1¢ 0 5 10 15 20 25 30 ¢/ kW h Solar Subsidies1,2 Generation Rate Subsidy Paid by Other Ratepayers Equivalent Solar Rate 1 Based on average home usage of 1,15
Slide 11: Legislative Rate Reform – AB 327
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 10 Legislative Rate Reform – AB 327 September 2013, Assembly Bill 327 (Perea) provides the following changes to rate structure (subject to further CPUC rulemaking) • Rate Reform Removes tier restrictions on residen
Slide 12: CAISO Net Load
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 11 CAISO Net Load Renewables • Current 33% RPS by 2020 set as floor for CPUC per AB327 • More variable and less predictable output • Output does not fully match demand • Need for flexible, dispatchable capacity Resou
Slide 13: Energy Storage
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 12 Energy Storage • September 2010, AB2514 (Skinner) directs CPUC to establish procurement targets and policies for energy storage • October 2013, CPUC final decision in Energy Storage OIR (R.10-12-007) 1,325 MW ta
Slide 14: Plug-In Electric Vehicles
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 13 Plug-In Electric Vehicles California represents 10% of electric vehicle demand, driven by State air quality and GHG reduction policies Source: Southern California Edison December 2013 PEV Market Report
Slide 15: EIX – Positioned for Industry Change
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 14 EIX – Positioned for Industry Change EIX will respond and adapt to industry trends by advancing flexible use of the grid and investing in new business opportunities while continuing to provide safe, reliable, affo
Slide 16: SCE Highlights
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 15 • One of the nation’s largest electric utilities Nearly 14 million residents in service territory Approximately 5 million customer accounts 50,000 square-mile service area • Significant infrastructure invest
Slide 17: SCE Capital Expenditures Forecast
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 16 Note: forecasted capital spending subject to timely receipt of permitting, licensing, and regulatory approvals. Forecast range reflects an average variability of 12%. SCE Capital Expenditures Forecast ($ billions)
Slide 18: SCE Rate Base Forecast
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 17 ($ billions) SCE Rate Base Forecast • Driven by infrastructure replacement, reliability investments, and public policy requirements • FERC rate base includes CWIP and is approximately 22% of 2014 rate base forecas
Slide 19: Distributed Generation Investments
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 18 Distributed Generation Investments • Small, targeted investments SoCore Energy (acquisition) – commercial / industrial DG developer Optimum Energy (investment) – energy optimization SCIenergy (investment) –
Slide 20: Core earnings non-GAAP note
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 19 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
Slide 21: Electricity SM March 25, 2014
Exhibit 99.1 EDISON INTERNATIONAL® Leading the Way in Electricity SM March 25, 2014 20
Edison International — Bernstein Innovative Energy Technologies Conference 2014 on 6ix