Edison International · NYSE:EIX
Edison International — Citigroup Investor Meeting (September 2006)
34 slides from Edison International's conference presentation, Sep 14, 2006
Slide 1: Business Update Handout, September 14, 2006
Exhibit 99.1 Business Update September Handout 14, 2006
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “will,” necessarily to differ, presentation not“could,” • directly or involve that and theotherwise “would,” relate projections ability contains Statement riskstoof and a“should,” could “forward-looking Edison historical about uncertainties impact International
Slide 3: Edison International Value Drivers: SCE and EMG
Edison EIX •SCE Strong Integrated Value International Tight $12 customer Drivers 58%Platform reserve •billion, -and -margins 5-year Expand-Value load andDrivers keep capital growth focus on reliability investment strengthen program distribution system • 21% - New transmission for system reliability
Slide 4: Southern California Edison: System Growth, Capital Investment, Regulatory Framework
System Investment Capital Regulatory Southern 3 Growth California FrameworkEdison (SCE)
Slide 5: System Growth Drives Need to Expand Infrastructure
System Capital Regulatory Strong SCE New 88,321 83,979 77,437 73,204 63,463 63,021 50,000 60,000 70,000 80,000 90,000 MW Peak 2006 2005 2004 2003 2002 2001 Value Growth Meter 22,889 21,934 20,762 20,136 18,821 17,890 10,000 14,000 18,000 22,000 26,000 SCE’s customer Investment Growth – Driver Demand
Slide 6: Peakers to Enhance Grid Reliability
System Capital Regulatory SCE Value to install Investment Growth Driver Framework 5 •“black – System start” Initiated Growth peakers in August by summer 20062007 at CPUC’s request in response to heat storm and increased demand • Each of 5 units capable of generating up to 45 MW • “Black Start” Capab
Slide 7: Renewable and New Generation Contracts
Renewable SCE System Capital Regulatory In • July Value 2006, Investment Growth 10-, Driver Contracts Framework SCE 15-, –or launched System 20-yearGrowth solicitations contract proposals for renewable to be received power contracts Septemberand 22,long-term 2006 power contracts for new generation •
Slide 8: SCE Cited as Industry Leader in Advanced Metering
System Capital Regulatory SCE 7 Value cited Investment Growth as Driver Framework industry – Capital leaderInvestment in advanced “SCEmetering has taken anArshad industry Mansoor, leadership V.P.position of SCE Poweras AMI Delivery the Phase first U.S. & I selected Marketing Utility utility as to Pl
Slide 9: Advanced Metering Infrastructure (AMI) Initiative Highlights
SCE System • Value Capital AMI Growth Driver Investment Regulatory HighlightsDesign of SCE’s– Capital Framework Initiative Ahead phase Advanced ofaheadInvestment Schedule ofMetering scheduleInfrastructure - expect to be(AMI) complete Initiative by year-end 2006 • Field testing planned to occur Janua
Slide 10: Benefits of SCE's AMI Initiative
System Value Capital Growth Driver Investment Regulatory Benefits SCE – Capital ofInvestment Supports–of Customers Empowers SCE’s Framework SCE’s ServiceAMI customers Initiative strategy to Automationmodernizing manage - Customersits infrastructure their energy usebeand will cost, able and provides
Slide 11: Five-Year Capital Investment Increased to $12 Billion
SCE System • Value Capital Regulatory Growth Driver Investment Five-year –capital Framework Capital Investment spending increased approximately $1 billion up to $12 billion since August 2006 due to AMI and Peakers • 2006 CPUC GRC authorized approximately $5 billion of investment for 2006-2008 $ 2.8
Slide 12: SCE Rate Base Growth Plan
SCEPlan System CapitalValue •Regulatory Growth Driver Investment Capital – Capital Framework investment Investment $ Rate 16.3 16.0 2009-2010 Baseto file Expected Billions 14.4 12.9 11.8 10.9 2009 increase toprogram increase GRC 2007- translates primarily Notice from of Intent 2010 rate into 2009 ra
Slide 13: Recent Regulatory Decisions Strengthen Framework
SCERecent System Capital •Rate Value Regulatory California’s Growth •General Base Driver Investment and Framework 2006 Approved – Regulatory regulatory Rate Operations Case GRC 97% (GRC), framework Decision Framework provides of 2006-2008hascapital been three-year strengthened requestforwardto looki
Slide 14: Edison Mission Group: Low-Cost Coal, Capabilities, Cash, Growth
Cost Mission Low- Growth 13 Edison Coal Operational/Marketing/ Cash Position Opportunities Trading Capabilities Group (EMG)
Slide 15: EMG Generation Portfolio
EMG Cost Low- Cash Growth Midwest 5,613 – Position Coal Generation Operational/Marketing/ Portfolio Opportunities Generation coal Trading Capabilities 305 Misc. 67 Storm 109 March 70 Homer 1,884 40 Ambit Big 964 San 90 161 Wildorado 7,537 MW MW 4, Juan MW MW Wind MW Lake Sunrise Point City gas/oil C
Slide 16: EMG Value Drivers
EMG – Position Cost Low- Cash Growth Coal Value Drivers Operational/Marketing/ Opportunities • Trading Low-cost Capabilities coal generation is the key driver to significant EBITDA 1 – $1.18 billion in 2005, $1.09 billion in 2006 and $1.27 billion in 2007 • Strong operational and marketing/trading c
Slide 17: EMG Wind Portfolio
EMG – Requirements RPS Turbine National Wind Development WindPortfolio Expertise Pipeline Commitments Portfolio Wind •Projects –Future Project Size 181wind (MW) Portfolio MW project In-service pipeline in late-stage 9 266 supported Underby development 1construction exclusive agreements: 1 161 Total
Slide 18: EMG Growth Opportunities: Recontracting, New Gas, IGCC
EMG – Big •Recontracting California 4 projects Projects – Thermal contract Generation Kern extension Opportunities (602 market-rate River - 5-year MW) contract approved by CPUC in May 2006 – Other Big 4 contracts expire: December 2007 (Sycamore); April 2008 (Watson); May 2009 (Midway-Sunset) •Natura
Slide 19: Performance, Balance Sheet, Dividends, Shareholder Returns
Balance Performance Shareholder Dividends Growth Year 18 to Date SheetReturns Performance Strength through June 30, 2006
Slide 20: Year-to-Date Core Earnings Performance
Year-to-Date Core Southern Change 2005 2006 (Unaudited) $0.84 Mission 0.26 0.06 Edison 0.32 (0.06) EIX 1.10 core Non- — SCE 0.25 (parent) Consolidated 0.15 0.22 0.37 1.19 (0.27) MEHC 0.24 0.22 Total –Earnings 0.01 $1.32 19 — $0.88 (0.06) 0.08 0.04International Capital Mission items Energy California
Slide 21: Midwest Generation and Homer City Update
Edison Three Generation Equivalent Forced Flat HC Hedge Remainder 2006 Midwest Homer Megawatt Average Percent (1) 20 Note: the Busbar Energy 2005 2007 months Program Outage City International Represents of Midwest Cost Homer Energy Generation Midwest hours Coal Change 2008 Availability of (in ($/MWH
Slide 22: Guidance
Balance Sheet Performance Shareholder Dividends Growth Guidance 21 as Returns ofStrength June 29th, 2006
Slide 23: Edison International Earnings Guidance
Edison (effective Earnings •Recorded –SCEInternational EMG guidance asGuidance $1.82 MEHC of $1.88 June 1.13will 29th, -$2.02 Core - not 1.00 Earnings 2006) EPS: be updated 1.31 2005 Guidance 2006 until 2007 third quarter earnings are released •– •Key EIX Non-Core SCE EMG DSM 2006EC 2 3 1(0.06) Hold
Slide 24: EMG 2006-2007 Guidance: Coal, Emissions and Hedge Position
EMG (effective Coal – Transp. Emissions2006-2007 Generation Forward Basis as of JuneHedge Sales 29th, 2006) Plan Guidance Earnings Coal 20061 Homer Fuel Commodity Expected Emission NOx 10% 2006 ($ 2007 Cost, guidance Costs, City Midwest excluding (Aggregate PriceCoal Hedge 2007 million) and excludin
Slide 25: EMG 2006-2007 Guidance: Forward Sales and Sensitivities
EMG (effective Coal – Transp. Emissions2006-2007 Generation Forward Basis as of JuneHedge Sales 29th, 2006) Plan Guidance Earnings Remainder Hedge Midwest Expected $44.47 West ($/MWh) Historic Program guidance Sensitivities 2006 Hub of(pre-tax $44.92 2007 average Gen 20061 generation Basis Flat$1/MW
Slide 26: EMG 2008 Guidance and Hedge Position
EMG – Transp. (effective Coal Emissions2008 Generation Forward as of Hedge Sales June 29th, Plan Guidance 2006) Basis Earnings Initiated Midwest contemplated. Homer Forecast Hedged 1 2 3 2008 Gen guidance City Expectedhedge generation addressed generation As of June Reflects will program. not genera
Slide 27: Strategic Plan Foundation
GrowthInternational Edison Balance Performance Shareholder Dividends •Sheet Returns Strong Strength –utility Strategic operating Plan Foundation in a large and rapidly growing service territory Competitive Organic Produces •Growth power Significant generationlong-term business earnings with large an
Slide 28: Appendix
Appendix BYJEQIson.
Slide 29: Non-GAAP Reconciliation
Appendix Earnings Year Core 2005 company SCE Non-core 1. 28 –Ending Earnings 2006 Regulatory Primarily guidance and items Items –2007 Non-GAAP December other (Loss) 0.34 Southern relates and will (0.11) 0.22 Per tax not 31, Reconciliation toCommon —Total (0.11) California items be Lakeland updated 0
Slide 30: EMG Adjusted EBITDA Reconciliation
Appendix (Guidance Earnings Edison ($ 2005 Netmillions) EBITDAonMission Add-back Interest 2006 Production -Loss Adjusted guidance –EBITDA effective income Cumulative Income EBITDA 2007 (Loss) expense early tax Group Actual will from 1,085.2 as $442.4 (Deduct): effect of 435.2 of notJune Outlook be40
Slide 31: SCE Transmission Projects Execution
NEVADA System Capital Regulatory Execution Dependable SCE Existing Value hasInvestment Growth Las Vegas SCE Midway Palmdale Antelope (PG&E) 500kV made CALIFORNIA Driver Framework EldoradoEarnings significant Future Territory Lugo – Execution Tehachapi500kV strides toward receiving necessary permits
Slide 32: Assumption Details
Assumption • Details NAPP, “Northern Appalachian”; PRB, “Powder River Basin” • Actual futurechanges adjustments, agreements. Fuel Costs, in spot excluding prices/new emissions, contracts, mayinventory differ from build estimated or reduction, future changes fuel costs, in excluding costs basedemissi
Slide 33: EMG Planned Capital Expenditures
EMG Planned 2Q Plant $ 500 32 2006 2006 $826 – BoY Capex Capital PotentialExpenditures Millions 450 to 400 Evaluating Million4Q Environmental 2008 350Expenditures 2007300 at2008 Additional FGDs 2502009 Homer200 Growth 150 Expenditures City 100 150and Units 0 2 Environmental expenditures at Midwest G
Slide 34: EMG Available Sources of Liquidity
EMG Available ($ Sources EME MWG millions) –& Capital 12/31/05 Liquidity ShortExpenditures Revolver 6/30/06 $98 $500 Cash $2,292 •Revolver $2,748 325 term Cash 295 1,953 1,869 expected investments¹ to decline in 2008 from payoff of MEHC notes and growth investments • Strong market conditions allowed
Edison International — Citigroup Investor Meeting (September 2006) on 6ix