Edison International · NYSE:EIX
Edison International — Investor Presentation (September 2007)
46 slides from Edison International's investor presentation, Sep 11, 2007
Slide 1: Business Update September-October 2007
Exhibit 99.1 Business Update September-October September 11, 2007 2007 EDISON INTERNATIONAL®
Slide 2: Forward-Looking Statements
Forward-Looking Statements not differ International’s represent September purely materially our historical, 11, contained expectations 2007 2006 from Statements 1Form are in current EDISON this forward-looking 10-K only presentation expectations. as INTERNATIONAL® and ofsubsequent the date about sta
Slide 3: Strategic Overview
Strategic Overview September 11, 2007 2 EDISON INTERNATIONAL®
Slide 4: Edison International Mission and Value Drivers
Edison EIX SCE Strong Tight Proposed 51%—Expand 25%—New 16%—San 8%—Edison Strengthened Three-year Cost Procurement Financial Earning EMG Low-cost Adjusted Favorable Operational Experienced/value-added Debt Effective New Hedging Phased Diversify Focus Emphasize 1 2 September Subject SeeIntegrated Val
Slide 5: Our Business Portfolio
Our Southern Edison Revenue Note: in 1 millions. Business Financial International Mission SeptemberEdison $12.6 $10.3 $2.3 California Edison 11,Portfolio Operating International Operating data Group 2007 Mission Edison 4isEDISON forCash Cash the Group operating year Flow Flow1 Flowincludes ended $1.
Slide 6: Our Value Proposition
Our Value Strong Low-cost Visible Valuable Increasing Attractive Earnings September utility earnings business growth coal-based and Proposition capacity 11,platform sustainable 2007 and and positions values 5cash competitive financial EDISON with flow growth for earning coal-fired flexibility growth
Slide 7: Growth Principally Driven by Southern California Edison
Growthprincipally Southern Driven Transmission—system Distribution Generation—meeting Energy Edison Optimize Investments Renewables Gas-fired Advanced September Mission efficiency Strategies California business generation fossil 11, led emphasize: diversify – system 2007 Group by fuel –by financial
Slide 8: Financial Strategies
Financial Funding Operating Cash Focus Credit Southern A Edison BB Targeting Dividend Parent SCE 1 rating rating and on on Objectives1 financing SeptemberMission Senior metrics hand, Growth Edison California organic Strategies Policy increases annual metrics cash 11, operating unsecured flow Energy
Slide 9: Earnings Guidance Reconciliation
Earnings Reconciliation 2007 Effective 05/09/07 Core EIX Non-Core Southern Edison Total 1 2 September SeeHolding 2007EPS1 Guidance Core $Non-Core use non-core Mission 2.70—$ Guidance 08/09/07 California Updated of Items EPS 11, non-GAAP Company 2007 of 2007 $Group Items 3.10 2items Core 3.05—$ Ediso
Slide 10: Southern California Edison (SCE)
Southern An September Investor-Owned California 11, 2007 Edison Electric 9 EDISON(SCE) Utility INTERNATIONAL®
Slide 11: Value Driver: System Demand Growth
SCE New 90,000 87,708 77,437 80,000 70,000 50,000 60,000 26,000 22,889 22,000 21,934 MW 18,821 2002 10,000 14,000 SCE’s Forecast 4 5 LA,18,000 Value Growth1 Meter 2003 Expect 385,791 August Strong 1 service 83,979 75,626 73,204 63,463 Peak 23,517 20,136 September 2 3 Moreno of 2004 Driver—System Con
Slide 12: Value Driver: Reliability - Renewables
Statewind Renewable Represents SCE’s Completed Agreement Secures The Projects Expanded SCE September Value –law expanded entered signs current 2010 the at tomandates project, Geothermal nation’s least largest be 11, Driver—Reliability ~17% four with resources renewable into built renewable 2007 agre
Slide 13: Value Driver: Reliability - All-Source Contracts
All-Source Contracts New Solicited Summer NRG Fast Blythe Standard On-line Notification In CPUC SCE September December Track Value leadership all-source Generation received has Energy by 2007 Track up totaling cover provided August 11, Driver—Reliability RFO to of2007 Track 2007 aand 1,500 successfu
Slide 14: Value Driver: Reliability - Energy Efficiency
SavedValue Reduced During Help SCE well-positioned Time-of-Use Regulatory Recognized September is offers customers more committed the greenhouse 11, past next Driver—Reliability amechanisms as than wide (TOU) 2007 a5to save 2leader 4years, years, participate to array billion 13 rates, an gas creatin
Slide 15: SCE Proposed Capital Spending Forecast
SCE Proposed 2007 Forecast Edison Generation Transmission Distribution Current $ CPUC FERC Total1 Five-year 1 expected denial September 5Billions 344.2 0122.4 % Subject $ Growth $may 3.9 2.8 2008 Rate 17.3 Rate Project 4.0 SmartConnectTM Forecast by to Five-Year to spending 2009 11, result 2.8 100 o
Slide 16: SCE Rate Base Forecast
SCE Forecast $ Billions 20.4 21 17.6 18 14.5 15 12.7 10.9 2036912 September 2006 Approved Rate 1 and +regulatory CorporationGrowth %$ C Includes base11.7 SCE 2007 Driver—Investment Rate growth Future impact 2008 11, OMPOUND ofBase A2010 Commission 2007 approvals. 2009 2006-20111 Regulatory provides
Slide 17: New Transmission Investment
New NEVADA Las Midway (PG&E) Palmdale Antelope Territory Windhub Vincent Mira Serrano Los Ana Santa Valley San Project 2007-2011 Renewables Tehachapi Rancho Reliability Other Total DPV2 Economics GRAND Existing SCE 1 2 Vegas Angeles Diego Palo Value leadership transmission Devers Renewables Reliabil
Slide 18: New Generation Investment
FiveOnofre Initiated Four Oxnard San 2,150 Unit SCE September 32“Black Value responds ofMW SGR five peaker in 11, August total Driver—Capital Nuclear in units Start” to 2007 service permit (SCE peak were Peakers 2006 17 Generation share denied demand 2010 2011 placed EDISON at the Investment 78.21%)
Slide 19: SmartConnect Deployment Schedule
2005 Current Design Pre-deployment, Schedule Field Phase be Edison Vendor eMeter Corix IBM Meter Communications SCE 1 included Value leadership will 2006 testing Utilities III Candidates: SeptemberSmartConnectTM to Phase Candidates Subject Schedule1 application serve provide 2007 Driver—Edison inisD
Slide 20: Constructive Regulatory Framework
Constructive General 2006 Tendered Investors’ 11.6% 11.8% CPUC Procurement Energy Customer Rate California’s September Base increases GRC return ROCE preliminary Efficiency Resources Rate 2009 Rates Return 11, Decision regulatory Cost Regulatory on Case requested 2007 expected GRC common Recovery (G
Slide 21: SCE Regulatory Update
Case Number Preliminary Energy R.06-04-010 Efficiency Phases decision Edison Phase conference SmartConnectTM with 2012 None July GRC Evidentiary filed Cost A. Capital Tehachapi structure I. USFS application DPV ACC L-00000A- 029500130 May FERC Transmission Incentives 2007 SCE—Regulatory September 05
Slide 22: Edison Mission Group (EMG)
Edison A September Competitive Mission 11, 2007 Power Group 21Generation (EMG) EDISON INTERNATIONAL® Company
Slide 23: EMG Generation Operating Platform
Washington Wyoming California Coal New EMG C % MW Natural 79% 7,537 1 100% 9,500 2% 153 Other 5% 471 Wind 14% 1,339 June September oal Excludes 30, Mexico 5,613 1,884 40 61 67 90 Growth Generation Gas MW 2007. MW11, MW 293 Iowa 70 964 Oklahoma Wind (UC) Driver 2007 MW MW MW Fuel Minnesota Pennsylvan
Slide 24: EMG Key Value Drivers
EMG—Key Low-cost Strong Effective More Experienced/value Long-term Financial EMG Recent Expanding Expansion Larger Greater Bias Focus 1 2 Seetowards efficient Edison adjusted liquidy2 areas scale operational financing SeptemberSee diversification management flexibility coal and environmental capital
Slide 25: Midwest Generation Operating Performance
Midwest Generation Availability YTD Operating Total Equivalent Capacity Load Forced All-in $60 $13.42 Average 1 2 $53.53 YTD Generation Factor 07 Average average $13.82 Outage Includes vs. realized Generation—Operating and Factor Statistics Availability up $52.81 YTD and 81.1 Average September 11,lo
Slide 26: Homer City Operating Performance
Homer Generation 2006 2007 YTD Operating Total Equivalent Capacity Load Forced All-in /MWh $ 2Q Average 1 2 6006$operating 48.61 40 24.48 20 024.13 availability YTD Generation Factor 07 Average average 2Q 56.44 34.82 SeptemberCity—Operating Outage Includes $vs. realized fuel Factor 49.55 25.52 21.62
Slide 27: EMG Hedge Status
EMG—Hedge Remainder Hedge Energy GWh Load Estimated Total Homer Megawatt Average Coal 1 the affect 2 Midwest per September The time MWh under Estimated Requirements 8,250 retail amount average Program City Only of price/MWh price Generation represents hours GWh average 11, day of contract loads 10,8
Slide 28: EMG Capacity Status
EMG—Capacity Status Midwest Megawatts INSTALLED Less: services NET Fixed RPM Non-unit Variable Third – TOTAL AVERAGE 1 NetCAPACITY Capacity Price Auction Net Capacity Party Price atper September 2 Actual Load CAPACITY contracts1, Capacity July Homer Specific capacity — MW-day except Transaction Capa
Slide 29: EMG Marketing and Trading Capabilities
EMG—Operational, Maximize Originally Market Illinois Expanding RPM Leverage Trading Controls Allowed VaR, EMMT ($ 150 200 $ 100 50 2 0 Edison YTD September 004 195 62 MM $$23 volumetric, 2005 settlement 130 Mission Auction pre-tax) transitioning Trading provides primarily products on knowledge forwa
Slide 30: EMG Financing and Recapitalization
EMG $ Favorable Enhanced Moves Simplifies Facilitates Expands Tender Interest 2007 1 September 2.7 Edison See billion second Growth refinancing premium savings: liquidity financial market longer-term capital 11, EMG Mission quarter Driver 2007 $0.07 and conditions structure refinancing risk flexibil
Slide 31: Midwest Comprehensive Environmental Agreement
EMG—Midwest Comprehensive Achieves Mercury NOx SO2 (78% Helps Illinois Emission Agreement Provides September ––reduction) continue emissions emissions EPA –reasonable specified credit 90% 11, supported filed assistance 2007 good selling removal agreement under Gen of ofemission 0.11 0.11 30 certaint
Slide 32: EMG Environmental Compliance Plans
EMG—Environmental MWG Installation Phase Flue Estimated Shutdown Waukegan Will PA Homer Evaluating EMG Note: September State County Gas Cost environmental 321Compliance City –Implementation Desulfurization Reduction cost of 611, estimates compliance of Compliance will 1(100 Small Activated primarily
Slide 33: EMG Wind Strategic Objective
EMG—Wind Strategic Contributes Objective Leverages Growing Production Accelerated Mainly Wind Projects1 In-Service Under Total Development Purchased Turbines 1 2 Projects Energy energy Project Construction long-term Data importance RPS No. issuccessful and Owned September Pipeline 2007—2009of 10 tax
Slide 34: EMG Wind Portfolio Map
EMG—Wind Nebraska Wyoming Utah Oklahoma Construction West Nevada New Texas Pipeline EMG In-Service MW Under Development Turbines ~3,100 1 Mexico New Virginia Wind Construction MW Data SeptemberPipeline 100 200 80 90 300 315 60 630 (not Iowa Pipeline York 90 161 471 Maryland MW Portfolio development
Slide 35: EMG Thermal Growth Opportunities
EMG—Thermal Natural Thermal Walnut Potential Will Some Assets IGCC Carson Joint petroleum enhanced Confirming Target Other September be Venture opportunities regions with operating complement Hydrogen Creek selective Gas-Fired development acquisitions oil coke 11, Carbon project recovery with showin
Slide 36: Appendix
September 11, 2007 35 EDISON INTERNATIONAL® Appendix
Slide 37: What's New Since Last Update
What’s Strategic Expanded New SCE EMG Appendix September Regulatory peak Second New Overview strategic demand 11, Since Quarter 2007 Update set Our overview 36and August August EDISON (see Year-to-Date page of 2007 Update our INTERNATIONAL® 20) (see business Adjusted pageportfolio, 10) EBITDA value
Slide 38: Second Quarter Update Highlights
Second Results Core SCE Submitted Tendered DPV2 EMG Strong Placed Additional 1 2 Update earnings1 earnings2 Update transmission into operating SeptemberQuarter for 2009 See regulatory wind Southern service second General $0.73 guidance Highlights projects performance the earnings 11, 2007 quarter pr
Slide 39: Second Quarter Results Reconciliation
Second Reconciliation EIX Total Basic Diluted Core 2006 favorable Midwest Primarily expense, Homer Higher average costs to Edison Gains Other Non-Core SCE involving related EMG for and 1 September See Unit early higher other $0.01 Holding $Earnings 2006 Earnings1 EPS GRC in Non-Core use EPS 0.30 (0.
Slide 40: Year-to-Date Results Reconciliation
Year-to-Date Reconciliation EIX Total Basic Dilulted Core Mainly state Midwest expense, Homer Primarily and planned recovery Edison Predominantly Non-Core SCE related remediation an during EMG share $ operations 1 September 0.24 See outstanding lower higher Holding YTD income $Earnings Earnings1 EPS
Slide 41: EMG 2005-2007E Adjusted EBITDA Reconciliation
EMG—2005-2007E 2005 Reconciliation Net Add Cumulative net Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted Note: from 1 2 of Income back on gain 2006 EBITDA tax SeptemberRepresents (loss) expense income taxes lease, early sale items: 1,085 EBITDA (De
Slide 42: EMG Second Quarter Adjusted EBITDA Reconciliation
EMG—Second Reconciliation Net Addback Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted Note: from 1 Income on gain EBITDA SeptemberProduction (loss) expense income taxes lease, early sale items: (Deduct): (3) EBITDA on tax of change $(47)
Slide 43: EMG Year-to-Date Adjusted EBITDA Reconciliation
EMG—Year-to-Date Reconciliation Net Addback Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Income Loss (loss) expense income taxes Impairment Gain Loss Adjusted Note: from 1 on gainitems: (Deduct): 328 EBITDA September tax change $of on and 23 operations 235 111 from
Slide 44: EMG Liquidity Profile
EMG—Liquidity Available Sources EME MWG Cash $ $1.1 1 September 3,149 Excludes billion & Revolver Revolver $Short ($2,310 Liquidity Millions) 11, $73 ofterm credit 2007 $million 495 473 Profile investments1 43 facilities 467 12/31/06 $ EDISON 522 and $192between 6/30/07 2,181 INTERNATIONAL® million
Slide 45: EMG Planned Capital Expenditures
EMG—Capital Planned July Plant/Corporate $ 2 0 325 650 Total 1 of dependent to added Balance Potential Midwest Evaluating Additional September 007 Millions EME start approximately 2007 2008 $1,883 inconstruction. expects of Expenditures1 the Generation Expenditures –upon 2009 11, wind growth plant F
Slide 46: Use of Non-GAAP Financial Measures
Use Edison and accurately is options EPS to referenced September based GAAP Exchange EPS of andNon-GAAP International’s that on by isinformation, compare in 11, therefore the principal earn the Commission. 2007 principal dividend presentation. Financial the 45 reflected operating earnings including
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