Edison International · NYSE:EIX
Edison International — Corporate Update (October 2020)
32 slides from Edison International's corporate update, Oct 28, 2020
Slide 1: Business Update
Exhibit 99.1 Business Update October 28, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statem
Slide 3: Edison International is leading the transformation of the electric power industry
Edison International is leading the transformation of the electric power industry Holding company focused on opportunities in clean energy, efficient electrification, grid of the future, and customer choice One of the nation’s largest electric-only utilities, serving over 15 million residents EIX’s
Slide 4: Sustainability is central to Edison's vision to lead the transformation of the electric power industry
Sustainability is central to Edison’s vision to lead the transformation of the electric power industry We have made long-term, public commitments related to clean energy, transportation electrification, diversity and inclusion, and safety1 Environmental Social Governance Targeting 100% carbon-free S
Slide 5: Investment thesis: Strong alignment between California's clean energy goals and EIX's business drivers
Investment thesis: Strong alignment between California’s clean energy goals and EIX’s business drivers Decoupling of sales Constructive California and Forward-looking ratemaking Federal regulatory structures Premium California ROE Wildfire prudency standard Aggressive climate goals met California GH
Slide 6: California's regulatory mechanisms provide revenue certainty, even as load and payment patterns change
California’s regulatory mechanisms provide revenue certainty, even as load and payment patterns change Revenue Decoupling Long-standing regulatory mechanism that breaks the link between retail means earnings aren’t electricity sales and revenue; promotes energy efficiency, helps stabilize affected b
Slide 7: Reaching California's 2045 GHG goals requires a near-complete transformation of energy use economy wide
Reaching California’s 2045 GHG goals requires a near- complete transformation of energy use economy wide “Adaptation to climate change must begin in earnest — which SCE is doing in part with our grid hardening, situational awareness, and operational changes — but we must act on longer term solutions
Slide 8: SCE is a catalyst for achieving California's aggressive GHG and clean energy goals via economy-wide electrification
SCE is a catalyst for achieving California’s aggressive GHG and clean energy goals via economy-wide electrification Achieving 80% GHG reduction by 2050 will require fuel use SCE delivered 51% carbon-free changes in all sectors electricity to customers in 2019, State Carbon Emissions Reduction Pathwa
Slide 9: SCE has strong rate base growth driven by significant electric infrastructure investment opportunities
SCE has strong rate base growth driven by significant electric infrastructure investment opportunities SCE forecasts deploying significant capital in …resulting in above industry average rate 2020–2023… base growth Capital Expenditures, $ in Billions Rate Base2,3, $ in Billions ~$21 billion 7.6% 202
Slide 10: SCE's long-term growth drivers are highly aligned with California's public policy goals
SCE’s long-term growth drivers are highly aligned with California’s public policy goals Overarching Goals SCE Growth Drivers Sustained investment required to Infrastructure reach and maintain equilibrium Replacement Safe, Reliable, and replacement rate Affordable Significant investment in infrastruc
Slide 11: EIX continues to have a strong balance sheet and dividend growth
EIX continues to have a strong balance sheet and dividend growth EIX has 16 consecutive years of EIX and SCE have stable, investment grade ratings and dividend growth3 have accessed the capital markets Dividends per Share (in Dollars) • Investment grade ratings at SCE and EIX, targeting EIX long- te
Slide 12: Edison Energy empowers organizations to conquer biggest challenges in energy today
Edison Energy empowers organizations to conquer biggest challenges in energy today: Cost. Carbon. Complex Choices. Partners with market leaders to align energy investments with strategic goals Provide independent, Trusted advisor to corporate and institutional clients helping expert advice and navig
Slide 13: EIX raises low end of 2020 core EPS guidance: $4.47–4.62
EIX raises low end of 2020 core EPS guidance: $4.47–4.62 Midpoint of 2020 Core Earnings Per Share Guidance Range of $4.47–4.62 Building from SCE Rate Base on 2019 Weighted Average Shares $0.30 ($0.10) ($0.41) $5.21 ($0.45) Interest related to Financial, debt issued for $4.55 operating, and fund cont
Slide 14: 2020 EIX Core Earnings Guidance Assumptions
2020 EIX Core Earnings Guidance Assumptions 2020 Assumption Additional Notes CPUC Rate Base ($ in Billions) $27.0 Return on Equity (ROE) 10.30% 2020 Cost of Capital Final Decision Equity in Capital Structure 52% 2020 Cost of Capital Final Decision FERC Rate Base ($ in Billions) $6.6 ~20% of total 20
Slide 15: Appendix
Appendix ODE
Slide 16: SCE has delivered ~7% annualized rate base growth since 2015, driven by growing capital investment
SCE has delivered ~7% annualized rate base growth since 2015, driven by growing capital investment Historical Capital Expenditures Historical Rate Base1 $ in Billions $ in Billions, Year-End Basis ~$20.4 billion 7.3% 2015–2019 CAGR 32.6 29.6 4.8 27.8 25.9 4.4 24.6 3.9 3.8 3.5 2015 2016 2017 2018 201
Slide 17: The bulk of SCE's investments are in its distribution system, consistent with wires-focused strategy
The bulk of SCE’s investments are in its distribution system, consistent with wires-focused strategy SCE forecasts investing $17.5 billion from 2020 to 2023 in its Investments will upgrade and distribution system, ~84% of total ~$21 billion capital plan1 modernize World War II-era $ in Billions infr
Slide 18: Increased energy storage is essential as we expand the share of intermittent renewable electricity sources
Increased energy storage is essential as we expand the share of intermittent renewable electricity sources 690 MW SCE has already Already exceeded 2024 state- procured or mandated storage 1 installed target SCE estimates that California SCE must procure will need 10 GW of utility- 1,241 MW increment
Slide 19: CPUC cost of capital mechanism current measurement period is October 1, 2020 through September 30, 2021
CPUC cost of capital mechanism current measurement period is October 1, 2020 through September 30, 2021 CPUC Cost of Capital Adjustment Mechanism Moody’s Baa Utility Index Rate (%) 6.0 5.5 5.0 Mechanism did not trigger a change to 2021 Starting Value – 4.50% Dead- ROE because moving 4.5 band average
Slide 20: Wildfire mitigation plan (WMP) is a comprehensive strategy to prevent, combat, and respond to catastrophic wildfire risk
Wildfire mitigation plan (WMP) is a comprehensive strategy to prevent, combat, and respond to catastrophic wildfire risk SCE determined highest consequence and SCE’s WMP incorporates mitigation measures frequency of ignitions were related to deployed in high fire risk areas around the distribution i
Slide 21: Foundational strategy for mitigating wildfire risk continues; increased focus on risk-prioritization and customer impacts
Foundational strategy for mitigating wildfire risk continues; increased focus on risk-prioritization and customer impacts 2020–2022 Wildfire Mitigation Plan1 Hardening Covered 4,000 additional circuit miles by January 1, 2023 the Grid Conductor 2020: 700–1,000 | 2021: 1,400 | 2022: 1,600 Underground
Slide 22: SCE is exceeding many benchmarks established in its 2020–2022 Wildfire Mitigation Plan
SCE is exceeding many benchmarks established in its 2020–2022 Wildfire Mitigation Plan to reduce wildfire risk1 1,000+ Miles of covered conductor installed since 2018 Cameras installed provide visual coverage of >90% of SCE’s 161 high fire risk areas, reaching practical saturation point 1,000+ Weath
Slide 23: SCE has CPUC approval or a settlement-in-principle for almost all incremental 2018–2019 wildfire mitigation costs
SCE has CPUC approval or a settlement-in-principle for almost all incremental 2018–2019 wildfire mitigation costs $ in Millions Application Approval/ Request1 Additional Information GS&RP settlement 159 Approved $476 million capital and $123 million O&M approved in April2 WEMA approved in 505 CPUC
Slide 24: Future Wildfire-Related CPUC Cost Recovery Filings
Future Wildfire-Related CPUC Cost Recovery Filings $ in Millions; Year-to-date as of September 30, 2020 Total Incremental Incremental Application Mechanism for Memorandum Account Capital Spent O&M Spent Request1 Recovery Anticipated Timeline 2020 FMA Update Breakdown: WMPMA $131 $153 FHPMA – 165 GRC
Slide 25: SCE Key Regulatory Proceedings
SCE Key Regulatory Proceedings Proceeding Description and Next Steps Base 2021 GRC Tracks 1 and 4 Set CPUC base revenue requirement for 2021–2024 Rates (A.19-08-013) See pages 25–27 for more information Wildfire 2021 GRC Tracks 2 and 3 Settlement-in-principle reached for Track 2 in October 2020; Onc
Slide 26: SCE's 2021 General Rate Case request balances foundational work with advancing ambitious State public policy goals
SCE’s 2021 General Rate Case request balances foundational work with advancing ambitious State public policy goals In 2021 GRC, SCE GRC addresses major portion of CPUC-jurisdictional revenue requirement requests revenue for 2021–2024, including operating costs and capital investment requirement of –
Slide 27: SCE's 2021 General Rate Case will be approved in four tracks over 2020–2023
SCE’s 2021 General Rate Case will be approved in four tracks over 2020–2023 Estimated timeline for 2021 General Rate Case tracks and milestones1 Opening CPUC SCE Intervenor SCE & Reply Proposed Testimony Testimony Rebuttal Briefs Decision Track 1: 2021–2023 GRC Q1 ‘212 Revenue Requirement Tr
Slide 28: GRC Track update: Briefs submitted; CPUC action affirms commitment to maintaining original schedule
GRC Track 1 update: Briefs submitted; CPUC action affirms commitment to maintaining original schedule Primary intervenor reductions are focused on CalPA and TURN proposals would result in the following areas, which ignore key cost-of- rate base growth near range case forecast service principles Rate
Slide 29: SCE's average residential bills lower than national average because higher rates more than offset by lower usage
SCE’s average residential bills lower than national average because higher rates more than offset by lower usage SCE’s residential usage and …which offset above- Within California, PG&E and bills are lower than national average residential rates that SDG&E’s system average average due to milder refl
Slide 30: SCE's system average rate has grown less than inflation over the last 30 years
SCE’s system average rate has grown less than inflation over the last 30 years, with some ups and downs along the way SCE’s system average rate has grown at an annualized ~2.2% as compared to local inflation of ~2.4% over the last 30 years Cents per kWh 25 Los Angeles Area 20 Inflation 15 SCE System
Slide 31: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance1 2020 EPS Attributable to Edison International Low High Basic EIX EPS $1.73 $1.88 Total Non-Core Items (2.74) (2.74) Core EIX EPS $4.47 $4.62 1. EPS is calculat
Slide 32: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are
Edison International — Corporate Update (October 2020) on 6ix