Edison International · NYSE:EIX
Edison International — Q1 2011 Earnings Presentation
49 slides from Edison International's earnings presentation, May 2, 2011
Slide 1: First Quarter 2011 Financial Teleconference
Exhibit 99.2 Exhibit Leading First May 2, Quarter 2011 99.2 the Way EDISON 2011inFinancial Electricity INTERNATIONAL® Teleconference SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements not differ them Analysis” www.edisoninvestor.com. May purely 2, to materially 2011 reflect the in historical, contained Way Edison 1 EDISON new from inStatements information, Electricity International’s are in current this INTERNATIONAL® forward-looking These prese
Slide 3: First Quarter 2011 Earnings Summary
Leading First and Non-Core SCE EMG EIX Total Basic Diluted Core $269 GAAP ($ $236 Q1 1 per May See millions) 10 share other parent 2, Quarter $0.62 $(0.12) EPS1 EPS Earnings $0.82 $0.72 Non-Core Earnings EPS 0.22 0.02 Q1 Earnings 2011 EPS the for $0.82 11 Items $0.72 (0.05) (0.01) $0.68 company $202
Slide 4: SCE Q1 EPS Highlights and Variance Drivers
Leading SCE EPS Core1 Non-Core Basic Key Rate Operating Higher Income Total •Recent 1 May In SeeApril February Core Q1 base 2, First $0.06 Use EPS1 $0.62 Developments operating depreciation net 2011 taxes 10 the 2011, growth Earnings Quarter revenue Items of interest Q1 $0.50 Way $0.68 3Non-GAAP 201
Slide 5: EMG Q1 EPS Highlights and Variance Drivers
Leading EMG EPS Core1 Non-Core Basic Key Merchant Midwest Homer Wind EMMT Doga Taxes Total •Recent 1 2 May EPA Homer SeeCore Includes Q1 2, $(0.27) and Projects Use EPS1 First and HAPS $0.22 Developments City 2011 -10 the City Generation trading coal2 Earnings March Items of other impact Quarter Q1
Slide 6: EMG Hedge Program Status
Leading EMG March Midwest Homer Total Remainder 2011 7,664 $37.78 12.4 1,195 $58.86 3.5 1 periods 24-hour 2 City 3 May The Includes 1.9 plant 9.8 2, 2012 estimated Hedge 5,350 1,370 above average 31, $35.25 $51.68 0.8 City 2011 and Northern — the Generation that 2011 hedging 2013 of during Way 1,020
Slide 7: EMG Wind Projects Activities
Leading EMG March Portfolio 1,655 55 •Wind Recent February amendment Estimated Prior Investment MW Projects Turbine Total 1 May 75 949 921 Amounts MWMW Spend 2, to 290 MW Turbine Project Wind MW31, Activities 2011 in commitments/inventory1 under in the & 2011, available $388 Capital construction 201
Slide 8: Funding for Wind Projects
Leading Funding ($ 12/31/10 $279 Q1 $63 2011 $216 Sources $10 •$115 1 Pending funds May Viento Estimate millions) 2011 million 2, Remaining million are 2011 Received -the for Spend Estimated received. $77 based Bank/Vendor Way 2011 7Bank/Vendor million EDISON Spend on in Wind Spend Electricity estim
Slide 9: EMG Capital Expenditures
Leading EMG March 2010 Midwest Homer Plant Environmental Renewable Capital Turbine Other Total HAPs 1 May 20111 $736 capital Capital capital MACT 2, 31, City & Includes commitments the Generation 2011construction 2011 $451 Energy 2012 Way expenditures 8expenditures Expenditures proposed expenditures
Slide 10: EMG Credit Status
Leading EMG Status 3/31/10 EME Funds Corporate-Debt-to-Capital Midwest Debt Homer Senior Covenant May 2, to Credit Debt at Flow Rent City 2011 Capitalization 6/30/10 the Generation Threshold threshold Covenant Available Way Lease Service Facility 9 EDISON 9/30/10 inAgreement (not (less Electricity C
Slide 11: 2011 Earnings Guidance
Leading 2011 Low Non-core EMG Actual/Midpoint by SCE EIX EMG(0.19)(0.19) Total Southern Assumptions Average Approved 48% Edison Forward EMMT Normal Other No Excludes 1 May See key energy changes core basic parent Mid equity, 2, $3.08 Earnings non-core $2.75 Use –business Mission 2011 discontinued pr
Slide 12: Appendix
Leading May Appendix 2, 2011 the Way 11 EDISON in Electricity INTERNATIONAL® SM
Slide 13: Updates Since Our Last Presentation
Leading Updates Q1 Funding EMG SCE California May112, 2012 Capital results 2011 the Since forRenewable CPUC Way 2011 12 and Expenditures Our EDISON in Wind General standard Last Electricity Policy Expenditures Presentation INTERNATIONAL® Rate information (p.(p.8) SM Case 29) (p. (p.28) 7)
Slide 14: Delivering Superior Value
Leading Delivering California Southern •Edison Our May A Achieve Leverage Positioned Balance Focus Establish Decoupled Effectively Develop Emphasize diversified key 2, Mission International 2011 on operating the electric durable wind Edison grid foundation Superior regulated Way for regulatory liqui
Slide 15: Financing Strategies
Leading Financing California Southern 48% 43% 9% Edison •Dividend May Authorized Target Periodic Retain Current Balance No Modest Depending preferred financial equity long-term 2, Mission 2011 payout cash the annual wind Policy of debt Strategies Edison at Way capital upon capital 14 from stock 11.5
Slide 16: Liquidity Profile
Leading Liquidity March EME EMG & Sources Credit Cash Available 1 Capital May 2 &Edison Facility 31, Edison short-term subsidiary 3 dividend Excludes EME2, SCE the 2011 hadProfile Liquidity parent 2011 Way EIX Subs $2,894 (availability)2 Capital ($co. inmillions) restrictions. of the corporate 15 Le
Slide 17: Debt Maturity and Credit Facilities Profile
Leading March Debt Short- SCE EMG EIX Expiration SCE1 EME MWG EIX1 1 May $98— 2, $— Maturity Profile — 100 million $— and —31, 2011 — the 600 — $— 500 55 $— 2011 — Long-Term of1,426 Way 2011 16 — 560 Credit $— of — —Profiles $2,894 EDISON ($ — SCE in —260 $1,050 2012 — millions) Electricity Faciliti
Slide 18: Reconciliation of Earnings
Leading ($ Reconciliation Earnings Edison Core Non-core SCE health regulatory EMG Total EIX 1 2 17 Maymillions) parent –Core EDISONGAAP –$203 Earnings1 non-core 2,–71(18) tax care tax International See write-off tax discontinued the Attributable Non-GAAP items Earnings settlement settlement $222 ite
Slide 19: Reconciliation of Earnings Per Share
Leading Reconciliation Earnings Non-core Generator SCE 2005 $1.82 — 0.36 0.04 0.40 $2.22 1 May—0.49 0.40 0.09 Core GAAP 2006 2,$1.89 — $2.38 See the — Per — 0.10 items 2011settlement/refund EPS Earnings 2007 Use Way $2.07 0.94 — $2.17 Earnings — Share 18(0.15) of (0.12) Non-GAAP Tax —of 2008 0.30 in
Slide 20: EMG Q1 Reconciliation
Leading EMG ($ Q1 Generation Less: All-in Add Realized Average Reconciliation Operating Renewable Fuel Midwest Homer Other Segment May EDISON 19 millions) 10back: costs Costs 2,Unrealized Other revenues average Q1 City 2011 the realized revenues fuel Generation INTERNATIONAL® 11 revenues $141 Unreal
Slide 21: Our Commitment to Shareholder Value
Leading Our Among Supportive Leadership See Working •Current May Dual Southern Commitment Incentive Edison real Shareholder 2,platform 2011 the wind equity the Mission people coal California compensation regulatory in best Way 20 construction fleet renewable to value operating committed EDISON domes
Slide 22: SCE Appendix
Leading SCE May Appendix 2, 2011 the Way 21 EDISON in Electricity INTERNATIONAL® SM
Slide 23: SCE Highlights
Leading SCE 4.9 50,000 •Over System Smart California May One 9-11% million 2, Highlights 13 110,000 of grid square-mile 2011 reliability four-year million theRenewable technology customer Way nation’s 22 miles EDISON residents inexpenditures average service Electricity oflargest accounts Portfolio d
Slide 24: SCE Regulatory Framework
Leading SCE •Element Regulatory May Advance Forward-looking Multi-year Decoupling Reliable Procurement FERC 2, Constructive 2011 transmission the Benefits electric approval framework Way cost-of-capital 23 oftrigger EDISON regulated in to system Environment Three-year Electricity of Customers Return
Slide 25: SCE Capital Expenditures Forecast
Leading SCE ($ $4.4 $4.8 2010 $3.8 $4.0 Range1 Forecast $ Solar Edison Generation Transmission Distribution By 2009 2012 Other FERC Total 1 expenditure May 2010. %billions) Currently Classification Proceeding $4.3 2, Capital 2011 CPUC 17.5 100 Photovoltaic CPUC Cases SmartConnect™ 2011 $3.9 the $4.4
Slide 26: SCE Historical Rate Base Growth
Leading SCE ($ Rate Core 2010 2009 2008 2007 2006 2005 $15.5 $14.1 $12.6 $11.7 $10.8 $9.8 1 Earnings1 May EDISON 25See billions) Base 2, Historical $1.82 –SCE 2010 2011 the INTERNATIONAL® 10% Core $1.89 Way CAGR Rate Core EPS in $2.07 Electricity Base Earnings1 Non-GAAP $2.25 and $2.68 Earnings SM 1
Slide 27: SCE Rate Base Forecast
Leading SCE ($ Rate 1 2014 2013 2012 2011 $22.8 $21.2 $19.9 $18.0 $24.7 $22.6 $20.8 $18.2 regulatory part 2 Forecast. May EDISON 26Forecast Forecasted billions) of Base 2, Rate – The 2014 2011 the INTERNATIONAL® Base 8-11% approvals; range Tax Way CAGR2 Rate Forecast1 Relief, includes: inBase Electr
Slide 28: SCE Cost of Capital Mechanism
Leading SCE (Moody’s 8 9 10 S 4 5 Starting Moving Sep-07 Triggers •If At SCE’s 1 period. May EDISON 27 %) As pot In Cost Spot index September 2008, 7of 2, rate1 Cost Rate of authorized rate March Current Dec-07 2011 Average exceeds Index=6.26% the based Capital Baa INTERNATIONAL® of In6isWay Capital
Slide 29: SCE 2012 General Rate Case Application
Leading SCE Application On Revenue SCE’s and GRC Includes Excludes 2010 Q3 July 1 2 May Attrition Scoping April Q4 $514 19 2, 2012 2011 sets revised Q1 2011 November the Solar requirement 28, fuel million base Memo CPUC adjustment Q2filed Way 2011, 28 and request, Q3 Photovoltaic revenue EDISON in N
Slide 30: California Renewable Policy
Leading •California Includes Implementation Interaction SCE May EDISON 29In April 2, is taking 2011 the multi flexible authority INTERNATIONAL® 2011, Renewable with Way ayear proactive Governor issues previous compliance intotargets Electricity use Policy remain RECs RES approach Brown (20% for to i
Slide 31: SCE Renewable Portfolio Standard Compliance
Leading Actual Small Geothermal Wind Renewable (billion 89% 2010 28.3 15.0 Goal Compliance SCE May EDISON 30 Increase 2, Renewable demonstrated Goal 2020 29% Hydro 2010 2011 kWh) the INTERNATIONAL® 20% Resources 53% Way with Renewable 5%RPS Portfolio Solar in 2010 compliance Electricity 33% 6% Renew
Slide 32: SCE Transmission Projects 2011-2014
Leading SCE Rector Antelope Santa Ivanpah Vincent DCR Project 2011-2014 Tehachapi Devers-Colorado Eldorado-Ivanpah Red Alberhill San Other Grand Transmission 1 2 3 May EDISON 31FERC Segments Includes Diego Joaquin Bluff Transmission 2, 500kV Clarita Projects3 Total Highwind Name 2011 Pardee jurisdic
Slide 33: SCE Distribution Expenditures
Leading •SCE 2011 Expenditures Load Other2 Infrastructure 1 2 May Distribution Demonstrated Slower Smart Includes 2, Distribution -Growth 2014 2011 Grid the economy, information underground Way 32 technology in General expenditures Replacement operational EDISON Distribution in Program resulting Ele
Slide 34: SCE Utility Solar Photovoltaic Programs
Leading – 125 250 Utility •Existing Online Primarily 20% Additional SCE 2009 CPUC 1 May SCE Executed 29MW CPUC MW proposed 2, Solar Pilot 2010 isbuilt approval dates 2011 the IPP requesting decision of in 1-2 online Sites Photovoltaic 2011 RFO 29 revised utility the cost Way RFO mainly 33 MW, solar
Slide 35: SCE SmartConnect Deployment
Leading •SCE Promote Avoid Provide 2008 August September 2.02 Enhanced 100% May Total Fivemillion 3.7 Recovery Implementation 2, SmartConnectTM million 2009 meter million GHG approved 2011 2008 all capability the energy information 2010 2009 residential included Way emissions deployment, meters mete
Slide 36: SCE Residential Rates and Bills Comparison
Leading SCE 29% 15.3 11.9 2009 101 12% U.S. Key •Costs Residential 1 May SCE’s However, EIA’s 90 Factors Average Higher Lower 2, Rates Average for 2011 2009 residential the renewables and average usage Way 35 Electric SCE Residential Bills EDISON in isrates Electricity monthly 31% Comparison are Sal
Slide 37: SCE Key Transmission Permitting Milestones
Leading SCE Case Number Tehachapi Transmission(ROD) DCR March Eldorado-Ivanpah Transmission Permit Alberhill A. Environmental request May EDISON 36 07-06-031 05-04-015 09-09-022 2, Key Date August 2011, to 2011 will the Filing 2009 INTERNATIONAL® Construct Regulatory of October be Way SCE 2010, Next
Slide 38: SCE Three Months Results
Leading SCE ($ Three Utility Fuel Operation Depreciation, Property Operating Income Dividends subject Net Core Non-Core Tax Total 1 May See millions) interest income impact and 2, Results Earnings operating SCE Use Months Earning to 2011 before tax the and purchased mandatory Revenue and income Earn
Slide 39: EMG Appendix
Leading EMG May 2,Appendix 2011 the Way 38 EDISON in Electricity INTERNATIONAL® SM
Slide 40: EMG Operating Platform
Leading EMG 145 Operating Coal Other Total Wind Pipeline2 Under Thermal Natural 1 2 3 another May Natural Owned Deliveries 141 2, 7,096 10,173 1,655 Development Business 153 Construction 2011 Gas Gas3 source 1,884 the Development or gas ~3,700 Platform1 270 16 under Way 1,269 under 100 39 479 includ
Slide 41: Midwest Generation Operational Statistics
Leading Midwest Operational Total Forced Capacity Equivalent Load All-in $45.25 $30.17 $16.63 Q1 Average 5,172 1 2 3 4 May Average Will Includes See 102, Generation Factor Other MW Average County Q1 $46.90 $29.43 $16.73 Outage 2011 the realized Generation Factor 11 realized the Availability –Statist
Slide 42: Homer City Operational Statistics
Leading Homer Operational Total Forced Capacity Equivalent Load All-in $36.38 $23.57 Q1 Average 1,884 Utilizes Coal 1 2 3 May Average Includes See 102, largely Generation Factor Other MW Average Q1 $30.57 $26.96 City Outage 2011 Northern the realized Factor 11 realized the Availability –Statistics N
Slide 43: EMG Capacity Sales and Prices
Leading EMG March Installed Capacity Price MW April June Midwest Homer 1 RPM 2 3 auctions, 4 May EDISON 42Capacity Excludes Other Includes MW 1, 2, per 1, auction. Capacity 31, City 2012 2013 2011 capacity 2011 the Unsold Generation Average Capacity1 and INTERNATIONAL® MW 2011 the not 182 Way 1,884(
Slide 44: EMG Completed and Planned Compliance Construction Timelines
Leading EMG Completed Mercury (Cost $112 Compliance SO2 0.44 and 0.28 Construction 0.11 0.13 0.15 Up NOx Unit-specific Fleet-wide 1 Unit 2 May Simplified Requirement to rates Waukegan 0.195 19 2, SO2 million included –$1.2 2011 Illinois atthe ACI (lb/GWh) (lb/mmbtu) Mercury Fisk, Crawford billion av
Slide 45: MWG Environmental Compliance Profile
Leading MWG Pollutant Mercury NO SO2 Hazardous 1 May Includes XIllinois 2,Illinois Environmental 2011 the Illinois Regulations costs Air Way CPS, 44 CPS, Pollutant EDISON related CPS, inEPA EPA Electricity Technology Compliance Future CATR, to(HAP) Clean INTERNATIONAL® final EPA Illinois SM Air regu
Slide 46: Homer City Environmental Compliance Profile
Leading HC Pollutant Mercury NO SO2 Hazardous SCRs May Environmental XEPA 2,have EPA 2011 the Future Regulations CATR, Air CATR, been Way 45Pollutant EDISON EPA installed in Pennsylvania Future Compliance Electricity MACT Technology (HAP) on INTERNATIONAL® Pennsylvania Wet allSM SIP Acid Scenario Ho
Slide 47: EMG Q1 Comparative Operating Information
Leading EMG Q1 Midwest Total Energy Load Homer Generation Equivalent Performance Forced Pricing Average Flat Basis May EDISON 46 10 energy 2, 8,212 requirement (PJM Comparative Q1 City outage 2011 only Information the realized cost Generation INTERNATIONAL® 11 availability (in price 7,470(742)(9)% W
Slide 48: EMG Adjusted EBITDA Reconciliation
Leading EMG March Reconciliation Earnings Addback Discontinued Interest Income Depreciation EBITDA2 Production Gain Addback: Lease Adjusted 1 2 3 47 May EDISONon 2,–termination 31, Adjusted Earnings from expense income(3)(1)(23)(9)(1) taxes sale/disposal the $77 (Deduct): EBITDA See2011 $220 tax Way
Slide 49: Use of Non-GAAP Financial Measures
Leading Use Edison and Core per Exchange EPS of earnings the material EBITDA gain Non-GAAP International’s evaluating The and impact A referencedthe by principal Way reconciliation principal share unrealized average on earnings of the to refer is Commission. excluding in participating hedge EMG. in