Edison International · NYSE:EIX

Edison International — Q1 2014 Earnings Presentation

28 slides from Edison International's earnings presentation, Apr 29, 2014

  1. Slide 1: First Quarter 2014 Financial Results

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 0 First Quarter 2014 Financial Results

  2. Slide 2: Forward-Looking Statements

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 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),

  3. Slide 3: First Quarter Earnings Summary

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 2 First Quarter Earnings Summary Q1 2014 Q1 2013 Variance Core EPS1 SCE $0.93 $0.78 $0.15 EIX Parent & Other (0.03) (0.01) (0.02) Core EPS1 $0.90 $0.77 $0.13 Non-Core Items SCE $(0.29) $– $(0.29) EIX Parent & Other –

  4. Slide 4: SONGS Settlement – Accounting

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 3 SONGS Settlement – Accounting • Q2 2013, SCE recorded $575 million pre-tax and $365 million after-tax impairment based on management’s judgment of the recoverability of SONGS investment  Developed based on a range

  5. Slide 5: ERRA Recovery Forecast – March 27 SONGS Call

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 4 ERRA Recovery Forecast–March 27 SONGS Call 1,005 264 195 1,464 (186) (267) (517) (61) (213) 220 ERRA 2013 End of Year Jan - April 2014 May 2014 due to ERRA delay May 31, 2014 ERRA Decom. Trust (June '13 - May '14)

  6. Slide 6: Updated ERRA Recovery Forecast

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 5 Updated ERRA Recovery Forecast 1,005 644 1,649 (247) (575) (100) – (600) 727 - 227 ERRA 2013 End of Year Jan - May 2014 May 31, 2014 ERRA Decom. Trust (June '13 - Dec '14) SONGS Settlement - May 31, 2014 Refund Jun

  7. Slide 7: SCE Capital Expenditures Forecast

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 6 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)

  8. Slide 8: SCE Rate Base Forecast

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 7 ($ billions) SCE Rate Base Forecast • Growth rate reaffirmed • Driven by infrastructure replacement, reliability investments, and public policy requirements • FERC rate base includes CWIP and is approximately 22% o

  9. Slide 9: SCE System Investments

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 8 Distribution ($ millions) Note: Total Project Costs are nominal direct expenditures, subject to CPUC and FERC cost recovery approval SCE System Investments Transmission • Large transmission projects:  Techachapi –

  10. Slide 10: 2014 Core and Basic Earnings Guidance

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 9 2014 Core and Basic Earnings Guidance Key Assumptions: • Midpoint rate base of $22.1 billion • Approved capital structure – 48% equity, 10.45% CPUC & FERC ROE • 325.8 million common shares outstanding (no change) •

  11. Slide 11: Creating Shareholder Value

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 10 Creating Shareholder Value Resolve Uncertainties Create Sustainable Earnings and Dividend Growth Position for Transformative Sector Change • SCE 2013 cost of capital • SCE 2012 FERC formula rate settlement • EME r

  12. Slide 12: Appendix

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 11 Appendix

  13. Slide 13: Changes Since Our Last Presentation

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 12 Changes Since Our Last Presentation • Quarterly updates • SONGS Settlement – Accounting (p. 3) • ERRA Recovery Forecast – March 27 SONGS Call (p. 4) • Updated Forecasted ERRA Recovery (p. 5) – new slide • SONGS Se

  14. Slide 14: SONGS Settlement – Summary

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 13 SONGS Settlement – Summary Term Description Steam Generators • Steam Generator Replacement Project (“SGRP”) removed from rates as of February 1, 2012, with book value balance disallowed. Revenues related to the SG

  15. Slide 15: SONGS Settlement – Third-Party Recoveries

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 14 NEIL • Credit to ERRA MHI • First $282 million – credit to General Rate Case Base Revenue Requirement Balancing Account (BRRBA) • Above $282 million – reduce SONGS regulatory asset • Credit to BRRBA after full SON

  16. Slide 16: SONGS Settlement – Regulatory Asset

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 15 SONGS Settlement – Regulatory Asset Category December 31, 20131 March 31, 2014 Authorized Return Base Plant $488 2.62% SGRP - n/a CWIP2 $2,166 406 2.62% Materials and Supplies 78 2.62% Nuclear Fuel 404 Commercial

  17. Slide 17: SONGS Settlement Impact

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 16 SONGS Settlement Impact In Millions Regulatory Asset Regulatory Liability Profit (Loss) As of June 7, 2013 $2,096 $— $— Impairment (575) — (575) Additions 70 — — Authorized Revenues in excess of revenue recorded —

  18. Slide 18: SONGS Third-Party Recovery – MHI Warranty Summary

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 17 SONGS Third-Party Recovery – MHI Warranty Summary Request for Arbitration • 20-year warranty:  Repair or replace defective items  Specified damages for certain repairs  $138 million liability limit, excluding c

  19. Slide 19: SONGS Third-Party Recovery – NEIL Insurance

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 18 SONGS Third-Party Recovery – NEIL Insurance • Accidental property damage and accidental outage insurance through Nuclear Electric Insurance Limited (“NEIL”)  Accidental Property Damage Policies – $2.5 million ded

  20. Slide 20: SONGS – Decommissioning

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 19 SONGS – Decommissioning Decommissioning Trusts • Decommissioning Trust contributions recovered in rates approved by CPUC in triennial proceeding • December 2012, A.12-12-013 Joint Filing with SDG&E submitted • Jul

  21. Slide 21: 2014 Bulk Electricity Outlook

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 20 2014 Bulk Electricity Outlook (MW) 50,177 891 9,800 2,322 63,190 47,413 Existing Generation Additions Imports Demand Response Total Supply Demand 2,682 2,163 15,022 15,638 17,704 17,801 2013 2014 Forecast (Average

  22. Slide 22: Residential Rate Design OIR

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 21 14.85 19.28 27.94 31.94 0 5 10 15 20 25 30 35 0 200 400 600 800 1,000 1,200 1,400 ¢/ kW h kWh/month SCE Proposed 2018 Tiers: • Two tiers:  Tier 1 – 16.4¢/kWh  Tier 2 – 19.7¢/kWh Residential Rate Design OIR • Jun

  23. Slide 23: Energy Storage

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 22 Energy Storage • AB2514 directs CPUC to establish procurement targets and policies for energy storage • CPUC final decision in Energy Storage OIR (R.10-12-007)  1,325 MW target for IOUs by 2024 (580 MW SCE share)

  24. Slide 24: EME Bankruptcy Settlement Implementation

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 23 EME Bankruptcy Settlement Implementation • April 2014, amended Plan of Reorganization completed • EME emerged from bankruptcy and remains subsidiary of EIX Consolidated for tax purposes • Reorganization Trust esta

  25. Slide 25: Non-GAAP Reconciliations

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 24 Non-GAAP Reconciliations ($ millions) Note: See Use of Non-GAAP Financial Measures. EME’s financial results are reported as non-core for all periods Q12013 $256 (4) $252 $– 7 12 19 $271 Q12014 $304 (10) $294 $(96)

  26. Slide 26: SCE Results of Operations

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 25 $6,682 — 2,518 1,562 296 32 4,408 2,274 94 (494) 1,874 214 1,660 91 $1,569 $5,169 4,139 1,026 — (1) — 5,164 5 — (5) — — — — $— $6,602 — 2,348 1,622 307 575 4,852 1,750 48 (519) 1,279 279 1,000 100 $900 $5,960 4,89

  27. Slide 27: Non-GAAP Reconciliations: SCE Core EPS

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 26 Earnings Per Share Attributable to SCE Core EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Asset impairment Total Non-Core Items Basic EPS SCE Core EPS Non-GAAP Reconciliations

  28. Slide 28: Use of Non-GAAP Financial Measures

    Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM April 29, 2014 27 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

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