Edison International · NYSE:EIX
Edison International — Investor Presentation (October 2004)
21 slides from Edison International's investor presentation, Oct 13, 2004
Slide 1: Edison International Financial Outlook
EXHIBIT 99.2 Edison International Theodore Executive October 13, F. Vice 2004 Craver, President Jr. Financial and Chief Outlook Financial Officer Edison International
Slide 2: Forward-Looking Statements
Forward-Looking This information actions expenditures, plants International arrangements the competition Additional Certain 8-K. 2 effects presentation that of non-GAAP the of do details that inand environmental and as California not energy-related contemplated; involves its contains have other Stat
Slide 3: Key Milestones Achieved Last Year
Key Milestones SCE Refinanced Entered Contact Edison Moody’s 3 achieved International Capital into Energy upgraded Midwest sale investment resumed sale Achieved agreements EIX closed —Generation to investing grade in investment the for ratings Last the debtinternational Year grade by Moody’s EIX res
Slide 4: Edison International 2004 EPS Guidance
Edison Original 2004 EC Core Non SCE MEHC EIX Reported Significant Total Potential EXPLANATION lease, 4 0.14 –Holding Recurring $1.66 $0.50 EPS Guidance EIX impairment QUIPS International 0.03 —0.14 Revised for EPS $1.60 core reported 0$0.48 $1.75 GAAP –SCE’s (b) Co. Retirement $2.10 0.13 EPS Items
Slide 5: Edison International 2005 EPS Outlook
Edison 2004 Outlook EC Core Non EIX Reported a) Decision. international 1. Using SCE MEHC Net 5 See Includes 0.14 debt –Holding Recurring $1.75 $0.48 flat EPS 2005 Appendix midpoints, QUIPS International 0.03 0 increases EPS 0.08 reduction (c) EPS c) $1.69 Variance $1.75 (b) earnings Includes –(0.05
Slide 6: Edison International Long-Term Growth Rates
Edison Several listed Individual (Compound Southern EIX 1. 6 See Consolidated below.) Appendix International scenarios California Company Annual for were Core Edison Growth GAAP —Long-term modeled Long EPSreconciliation. 7—10%¹ Rates) Growth Term Core for Growth each 8Mission EPS – 12%¹ company Grow
Slide 7: Southern California Edison 2005 Forecast Assumptions
Southern ($ 2004 Projected Equity Authorized Rate RRB Other One-Time Total Core True-up Fewer Note: 7 Millions) Base Operating EPS earnings 2005 Credit $2005 50 one-time Ratio 727 of16 California Rate $Earnings Items embedded authorized ROE $1.75 (20) 2.23 48% 606 are from Base $items 157 (14) $11.6
Slide 8: Southern California Edison Long-Term Rate Base Growth
Southern Long-Term Rate Distribution If Much Capital The 2005 ± 1% 8 100 approved change current base 2009 million bp ofstructure the change California growth Potential in Assumptions 48% by business capex in authorized the rate in and equity isappropriate isauthorized the Edison Sources base ROE su
Slide 9: Southern California Edison Other Long-Term Assumptions
Southern Rate Other e.g.- One-time None Influences 9 disallowances, Reduction assumed long-term coreCalifornia regulatory other earnings Bond than assumptions items rewards Edison items rate amortization base assumed (part —and Other onof incentives, core reported charges toLong-Term offset earnings
Slide 10: Mission Energy Holding Co Restructuring Plan Update
Mission Sale Received $600 Same Approximately Over tax $ 102.1 benefit of $5 million billion restructuring Contact Energy billion $739 from after used million $30 $60 of Energy Holding Collins repayment on- torationale million pay and in closed lease Co down proceeds off-balance pre-tax tax — as oft
Slide 11: Mission Energy Holding Co Midwest Generation Forecast Assumptions
Mission ($ 2004 Midwest Homer All Generation Core One-Time EPS Reported Employing forward PJM Interest a) 11 Weighted Millions) In($0.05) market. Operating EPS 2005 Realized City expense prices Energy Gen EPS $0.03 Impacts (TWh) aRevenue average TWh different Revenue $0.03 for Price($/MWh) (After-Ta
Slide 12: Mission Energy Holding Co Hedged Position and Earnings Variability
Mission TWh Hedged Unhedged Total 11 Price Midwest Homer 2005 Based Additional 1 95% Earnings 25% 50% 75% 1. 2. 12 Std. Flat September TWh, Hedged 204 Hedged: Adjustment 34.0 Energy Movement Dev. on price City (as Energy At or Gen. at 163 hedge 14.0 29.3 hedges 142 of Risk 23%, Risk $1/MWh equivalen
Slide 13: Mission Energy Holding Co Midwest Generation Assumptions
Mission 2004 Henry Midwest Flat Merchant All-in Generation Fuel MWGen Homer % NOX Emissions SO2 CAPEX 13 Contracted Energy Supply ($/ton) 2005 ($/ton) Realized Hub City Energy ($ Tons Coal Generation Capacity 2006 millions) (TWh) Gas Price—NIHub Price—PJMWest Tons Coal $376 $2,185 (commodity 99% Pri
Slide 14: Mission Energy Holding Co Commodity Price Assumptions
Mission Summary Commodity Energy Capacity Fuel contracts 2007 All 14 references &– beyond Emissions 2004 Energy 2004 and ofYear Price –internal to –2006 Management PA Holding 2006 the MWG 2004 Assumption Consulting June NI forward view Forward 2004 –Hub Homer Company 2006 ofForward forecast curve Fo
Slide 15: Mission Energy Holding Co Other Long-Term Assumptions
Mission Other “Big PPA Sunrise Callable Bridge MIPS MEHC 15 extensions 4” Long-Term $150 Loan Term per Projects Energy debt contract million $800 Loan redeemed: at Holding Forecast market million $285 million CoAssumptions —
Slide 16: Edison Capital Long-Term Forecast Assumptions
Edison $Millions Total New After-tax EPS An The 16 increase growth $0.14 Investment Assets Capital Earnings 2004 $0.08 plan in $3,622 interest –2005 $72 at 2004/2005 $45 Edison $3,643 $180 expense $26Capital Assumptions lowers calls2005 for new earnings investment due to of an$265 assumption million
Slide 17: Edison Capital Credit and Tax Risk Assumptions
Edison Credit Tax Primary The Reinvestment 17 Risk majority forecast Risk Capital risk reflects assumes within of Risk —theLong-Term Lease the the two Lease Company “watchlist” Portfolio Portfolio Forecast will is credits supported Assumptions be is the successful -outcome American by high inofdefen
Slide 18: EIX Holding Company Forecast Assumptions
EIXshare 2004 $Millions O&M (Pre-Tax) Net Core One-Time Reported QUIPS Long-Term No Share 18 equity Interest Holding Operating EPS 2005 count Expense redeemed repurchases Earnings EPS ($0.23) issuances Impacts Forecast Expense remains Company ($0.27) $31 (After-Tax) year-end ($0.03) ($87) ($14) $29
Slide 19: Edison International Investing and Parent Cash Flow
Edison Investing 2004 EIX Distributable Debt Other Net 1. 19 See Available businesses Debt PARENT Retirement 2005 (Interest, Appendix International $13.2 Ratio¹ 2006 Cash Cash CASH O&M expected billion 2007 60% for 0.2$1.5 $1.1 GAAP — 1.4 FLOW 57% Expenses) 2008 inHolding $3.6 $2.0 to projects 56% r
Slide 20: Edison International Long-Term Growth Rates vs Philadelphia Utility Index
Edison 20% AES (b) Philadelphia a) 20 The15% EIX Philadelphia International TXU 10%Utility 5% D DTE 0% Utility Index – IBES ETRAverage Index Long-Term EXCaverage FPL = 5.1% PCG Growth includes (a)SO FE Rates the NUIBES Philadelphia AEPestimate PGN PEGUtility for CNP EIXIndex of XEL5%DUK b) Company A
Slide 21: Appendix Notes on Slides
Appendix items Slide about capital 2004, Note: 2009. 21 5: 6: 19: which $1.5 GAAP 63% components, 2005 Based The billion for include Measurements reported calculations 2005, on reported as including positive debt 61% EPSand for earnings, isthat one-time 2006, forecast the classify non-recourse equal
Edison International — Investor Presentation (October 2004) on 6ix