Edison International · NYSE:EIX
Edison International — Q2 2007 Earnings Presentation
37 slides from Edison International's earnings presentation, Aug 14, 2007
Slide 1: Business Update August 14, 2007
Exhibit 99.1 Business14, Handout August EDISON 2007 Update INTERNATIONAL® 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements not differ International’s represent 1 purely EDISON materially our historical, contained expectations 2006 from Statements Form are in INTERNATIONAL®current this forward-looking 10-K only presentation expectations. as and ofsubsequent the date about statements. Important
Slide 3: Use of Non-GAAP Financial Measures
2 Useslide Edison and the EDISON Exchange for outlook, of Non-GAAP analysis where itofINTERNATIONAL® International’s asCommission. the allows performance. information Financial earnings themEdison Measures toare appears Edison more prepared International’s accurately or International oninanother acc
Slide 4: Second Quarter Results and Highlights
3 Second Results Core SCE Submitted Tendered DPV2 EMG Strong Placed 2 EDISON Additional 1 Update earnings1 earnings2 Update transmission into operating Quarter for 2009 See INTERNATIONAL® regulatory wind Southern service second General $0.73 guidance Highlights projects performance the earningsquart
Slide 5: Edison International Value Drivers
Edison EIX SCE Strong Tight 51% 25% 15% 8% 1% Three-year Cost Procurement Earning EMG Low-cost Adjusted Experienced/value-added New Hedging Phased Focus 1 2 4 Subject See EDISON -Integrated Value -of generation Edison Five system Edison Value on Expand New San customer International environmental ca
Slide 6: Southern California Edison (SCE)
5 EDISON Southern An Investor-OwnedINTERNATIONAL® California Edison Electric(SCE) Utility
Slide 7: SCE Value Driver: New Load Growth
6 SCE New 90,000 87,708 77,437 80,000 70,000 50,000 60,000 26,000 22,889 22,000 21,934 MW 18,821 2002 10,000 14,000 SCE’s Forecast 4 2 3 LA,18,000 Value Growth1 Meter 2003 5 Moreno Expect 385,791 In Strong 1 July service 83,979 75,626 73,204 63,463 Peak 23,517 20,136 of EDISON the 2004 Driver Connec
Slide 8: Renewable Energy Expansion
7 Statewind Renewable Secures The Projects U.S. Expanded SCE EDISON Represents SCE’s Completed Agreement Value –law expanded entered signs current 2010 the at torequires project, aINTERNATIONAL® Geothermal nation’s least largest be Driver ~17% four with resources renewable into built renewable agree
Slide 9: All-Source Contracts and New Generation
All-Source Contracts New Solicited Summer NRG Fast Blythe Standard On-line Notification In CPUC SCE 8 EDISON December Track Value leadership all-source Generation received has Energy by 2007 Track up totaling cover provided August Driver RFO INTERNATIONAL® to of2007 Track aand 1,500 successful RFO i
Slide 10: Energy Efficiency and Demand Management
Saved Reduced During Help SCE Time-of-Use Regulatory Recognized 9 EDISON Value is offers customers more committed the greenhouse past next Driver aINTERNATIONAL® mechanisms as than wide (TOU) a5save 2leader 4years, years, –to array billion Reliability rates, an gas creating, inadditional SCE of SCE
Slide 11: SCE Proposed Capital Spending Forecast
SCE Proposed 2007 Forecast Edison 1.3 8 Current CPUC 11.0 6 % 17.3 Five-year 100 1 expected denial GRC 104Subject 16EDISON 11 2.8 2.0 25 Growth 2008 NOI 25 may Rate 4.3 SmartConnectTM 51 Forecast 4.3 by to Five-Year to spending not 2009 8.9 result occur Classification Cases timely INTERNATIONAL® Dri
Slide 12: SCE Rate Base Growth Forecast
Forecast C % + Growth Annual 2006 2009 Approved Rate 1 and Corporation Inclusion SCE 11ompound 2EDISON Includes regulatory $10.9 base Growth 2009 2007 GRCSCE of growth GRC impact 2008 $11.7 Mountainview Commission INTERNATIONAL® Driver Rate approvals. NOI 2009 $12.7 provides ofBase -2006 not Investm
Slide 13: New Transmission Projects
New Midway CALIFORNIA NEVADA Los Pardee Vincent Palmdale Antelope Las Lugo Eldorado Santa Valley Serrano Palm Devers Mohave Palo Phoenix ARIZONA San Existing Project Tehachapi Renewables Rancho Reliability Total GRAND DPV2 Economics Phase Construction Licensing 2008 In-Service 2007-2011 2009 255 213
Slide 14: Five Peakers and San Onofre Steam Generator Replacement
Five Initiated Capital Four Oxnard San 2,150 Unit $0.5 SCE CPUC 13 EDISON Onofre billion 2“Black Value responds ofMW SGR approved Investment five peaker in August total Driver Nuclear –in units Start” INTERNATIONAL® SGR to service permit (SCE SONGS peak were –Peakers 2006 project forecast Capital Ge
Slide 15: SmartConnect Advanced Metering Deployment Schedule
Current 2013 2012 2011 2010 2009 2008 2007 2006 2005 Design Pre-Deployment Pre-deployment, Schedule authorization which Vendor services Candidates: SCE 1 14Subject EDISON Value leadership $1.3 Phase Candidates Schedule1 IBM toDriver billion Itron, CPUC INTERNATIONAL® granted will Deployment inwhich
Slide 16: Constructive Regulatory Environment and GRC
Constructive General 2006 twice Tendered Investors’ 11.6% approval) CPUC Procurement Energy Customer Rate California’s 15 EDISON Base increases GRC return preliminary Efficiency Resources Rate 2009 Rates Return Decision regulatory INTERNATIONAL® Cost Regulatory on Case expected GRC common Recovery (
Slide 17: Edison Mission Group: A Competitive Power Generation Company
Edison A 16Competitive EDISON Mission INTERNATIONAL® Power GroupGeneration (EMG) Company
Slide 18: EMG Operating Generation Platform and Fuel Mix
Washington Wyoming California EMG MW Coal Natural New Wind 9,500 1 June 17Excludes EDISON % 30, Mexico 5,613 1,884 40 7,537 145 75 61 67 471 90 95 161 Growth Generation 100% Gas MW 2007. MW/70 MW5% MW MW 79% 293 Iowa 70 305 964 1,339 INTERNATIONAL® Oklahoma (UC) Driver MW MW MW MW Fuel Minnesota 14%
Slide 19: EMG Value Drivers
Low-cost Strong Effective More Experienced/value Long-term Financial EMG Recent Expanding Expansion Larger Greater Bias Focus 1 2 18Seetowards efficient Edison –areas adjusted liquidy2 scale operational financing EDISONSee Key diversification management flexibility coal and environmental capital EMG
Slide 20: Midwest Generation Performance Statistics
Midwest Generation Availability YTD Operating Total Equivalent Capacity Load Forced All-in $/MWh $ 2Q Average 1 2 1960EDISON 53.53 52.81 47.93 46.85 40 39.71 39.68 34.51 33.71 20 13.42 13.82 13.14 013.13 06YTD Generation Factor 2007 Average average 2Q Outage Includes realized Generation and Factor 0
Slide 21: Homer City Generation Performance Statistics
Homer Generation 2006 2007 YTD Operating Total Equivalent Capacity Load Forced All-in $/MWh $ 2Q Average 1 2 2060EDISON 48.61 40 24.48 20 024.13 06$operating availability YTD Generation Factor 07 Average average 2Q 56.44 34.82 City Outage Includes $vs. realized fuel Factor 49.55 25.52 21.62 07 Stati
Slide 22: EMG Energy and Hedge Status
EMG Hedge Energy Load Homer Megawatt C Remainder 8,250 4,072 3,820 10,838 2008 5,613 7,232 2009 1,632 2,048 1 the affect 2 Midwest per 21oal The EDISON time MWh under Requirements Hedge $48.07 $64.35 $64.29 $64.01 $60.85 $60.00 $63.65 $71.05 retail amount average Program $61.38 City Only of Generati
Slide 23: EMG Midwest Generation Capacity Status
EMG Status Midwest Megawatts INSTALLED Less: services NET Fixed RPM Non-unit Variable Third – TOTAL AVERAGE 1 22 2 Net Capacity Price CAPACITY Auction Net Capacity Party Price atper Actual EDISONLoad CAPACITY contracts1, Capacity July Generation Specific capacity — MW-day except Transaction Capacity
Slide 24: EMG Maximize Marketing and Trading Capabilities
EMG Maximize Originally Market Illinois Expanding RPM Leverage Trading Allowed VaR, 200 2004 EMMT Edison 23 EDISON 150 volumetric, 2005 settlement - Mission Auction Operational, transitioning Trading primarily 100 products knowledge forward focused 2006 trading INTERNATIONAL® 50 (winning 0Marketing
Slide 25: EMG Financing and Recapitalization
EMG $ Favorable Enhanced Moves Simplifies Facilitates Expands Tender Interest 2007 $1,200,000,000 $800,000,000 $700,000,000 1 242.7 billion Edison Growth refinancing EDISONpremium See savings: liquidity financial market longer-term capital second EMG Mission 7.20% 7.625% Driver 7.00% $0.07 and condi
Slide 26: Comprehensive Illinois Emission Agreement
EMG Comprehensive Achieves Mercury NOx SO2 Helps Illinois Emission Agreement Provides 25 EDISON –––continue emissions emissions EPA Midwest –reasonable specified credit 90% supported filed assistance INTERNATIONAL® good selling removal agreement under Gen of ofemission 0.11 0.11 certainty relationsh
Slide 27: MWG Environmental Compliance Plan
MWG Installation Phase Flue Estimated Shutdown Waukegan Will PA Homer Evaluating EMG Note: 26 EDISON State County Gas Cost –321Compliance environmental City Environmental –Implementation Desulfurization Reduction cost of 6estimates compliance of Compliance will INTERNATIONAL® 1(100 Small Activated p
Slide 28: EMG Wind Projects and Growth Strategy
EMG Projects Strategic Contributes Objective Leverages Wind Growing Production Accelerated Mainly Projects1 In-Service Under Total Development Purchased Turbines 1 2 27 Project Energy –Construction Pipelinelong-term Data Wind Importance RPS No. is successful and 10 Owned Extensive Purchased EDISON o
Slide 29: EMG Wind Pipeline by State
Nebraska Wyoming Utah Oklahoma Nevada Texas Wisconsin Illinois New Maryland West Pipeline EMG In-Service MW Construction Development Turbines ~3,100 1 28 York Mexico Virginia Wind MW Pennsylvania Data EDISON200 90 300 315 630 100 390 60 130 80 345 (not Iowa Pipeline 90 161 471 Maine MW Projects Port
Slide 30: EMG Growth Opportunities
EMG Natural Thermal Walnut Will Some Assets IGCC Carson Joint Confirming Target Other 29 EDISON be Venture Growth opportunities regions with operating complement Hydrogen Creek selective Gas-Fired development Carbon project INTERNATIONAL® with showing and Driver date and Project Sun Generation BP Se
Slide 31: Appendix
30 EDISON INTERNATIONAL® Appendix
Slide 32: Second Quarter Reconciliation EIX
Second Reconciliation EIX Total Basic Diluted Core Midwest Primarily Homer Higher outage Edison Gains Other Non-Core SCE EMG 31 EDISON Holding $Earnings 2006 EPS Non-Core EPS 0.30 (0.44) Results +0.01 on 0.44 — –energy City Capital Quarter EPS Generation global due higher $Variances Items includes $
Slide 33: Year-to-Date Reconciliation EIX
Year-to-Date Reconciliation EIX Total Basic Dilulted Core Mainly Midwest Homer Primarily related Edison Predominantly Non-Core SCE issue EMG Lakeland, 32 EDISON Holding YTD $Earnings EPS involving Non-Core YTD EPS 0.78 (0.44) 0.90 0.10 to City Capital due EPS Generation Unit higher $respectively. Va
Slide 34: 2007 Earnings Reconciliation EIX
Earnings Reconciliation 2007 EIX Core Non-Core Southern Edison Total 1 332007 EDISON Holding $EPS Guidance Non-Core 3.05—$ non-core Mission 2.70—$ Guidance California Item1 INTERNATIONAL® Company of Effective 3.45 Group Items 3.10 items Core Edison $ (0.35) 3.24—$ reflect 2.90—$ 1.21—1.51 (0.45) Ear
Slide 35: Edison Mission Group Adjusted EBITDA Reconciliation
Edison Reconciliation Net Cumulative Production EBITDA Loss Adjusted 2005 7 2006 (97) (1) (22) \(2007 241 Note: from 1 2 EDISON 34 30) 5) 5\Production 55 Represents \$349 Income $146 414 334 1,180 on gain Actual Forecast EBITDA 1,169 Mission 329 lease, 435 409 $ EBITDA INTERNATIONAL® on 1,077 tax Ad
Slide 36: EMG Available Liquidity Sources
EMG Available Sources EME MWG Cash $ $1.1 1 353,149 Excludes EDISON billion & Revolver Liquidity Revolver $Short ($2,310 Liquidity Millions) $73 of INTERNATIONAL® term credit $million Profile 495 473 investments1 facilities 467 12/31/06 $ 522 and $192between 6/30/07 2,181 million MWG 1,321 of cash a
Slide 37: EMG Planned Capital Expenditures
EMG Planned July Plant/Corporate Balance Potential Midwest Evaluating Additional $ 2 0 325 650 Total 1 of dependent to added 36007 Millions EME start approximately EDISON 2007 2008 $1,883 –inconstruction. expects Capital of Expenditures1 the Generation Expenditures –upon 2009 wind growth plant FGD 2