Edison International · NYSE:EIX
Edison International — Q3 2014 Earnings Presentation
25 slides from Edison International's earnings presentation, Oct 28, 2014
Slide 1: Third Quarter 2014 Financial Results
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 1 Third Quarter 2014 Financial Results
Slide 2: Forward-Looking Statements
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 2 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), and other
Slide 3: Third Quarter Earnings Summary
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 3 Third Quarter Earnings Summary Q3 2014 Q3 2013 Variance Core EPS1 SCE $1.54 $1.46 $0.08 EIX Parent & Other (0.02) (0.04) 0.02 Core EPS1 $1.52 $1.42 $0.10 Non-Core Items SCE $– $– $– EIX Parent & Other – – – Discontinued Opera
Slide 4: Year-to-Date Earnings Summary
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 4 Year-to-Date Earnings Summary YTD 2014 YTD 2013 Variance Core EPS1 SCE $3.58 $3.09 $0.49 EIX Parent & Other (0.08) (0.11) 0.03 Core EPS1 $3.50 $2.98 $0.52 Non-Core Items SCE $(0.29) $(1.12) $0.83 EIX Parent & Other – 0.02 (0.
Slide 5: SCE Capital Expenditures Forecast
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 5 SCE Capital Expenditures Forecast ($ billions) 2014-17 Total Requested $4.1 $4.2 $4.6 $4.5 $17.4 Range $3.6 $3.7 $4.1 $4.0 $15.4 • Capital expenditures cumulative forecast increased $200 million primarily from a new mobile ho
Slide 6: SCE Rate Base Forecast
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 6 ($ billions) SCE Rate Base Forecast • Rate base growth rate reaffirmed • Driven by infrastructure replacement, reliability investments, and public policy requirements • FERC rate base includes CWIP and is approximately 22% of
Slide 7: 2014 Core and Basic Earnings Guidance
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 7 2014 Core and Basic Earnings Guidance 2014 Earnings Guidance as of 10/28/14 2014 Earnings Guidance as of 4/29/14 Key Assumptions: • Midpoint rate base of $22.1 billion • Approved capital structure – 48% equity, 10.45% CPUC &
Slide 8: Creating Shareholder Value
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 8 Creating Shareholder Value Resolve Uncertainties Create Sustainable Earnings and Dividend Growth Position for Transformative Sector Change • EME restructuring • SONGS OII settlement amended • 10% 5-year SCE rate base CAGR (20
Slide 9: Appendix
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 9 Appendix
Slide 10: EIX Dividend Growth
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 10 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $1.42 $2.25 $2.68 $3.01 $3.33 $4.10 $3.88 $4.43 2008 2009 2010 2011 2012 2013 2014 SCE Core EPS EIX Dividend Paid EIX Dividend Growth • EIX targets paying out 45 – 55% of SCE earnings • Di
Slide 11: SCE System Investments
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 11 Distribution ($ millions) SCE System Investments Transmission • Large transmission projects: Tehachapi – $3.2 billion total project cost; 2016-17 in service date Coolwater-Lugo – $0.7 billion total project cost; 2018 in
Slide 12: SCE Growth Drivers Beyond 2017
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 12 SCE Growth Drivers Beyond 2017 Infrastructure Reliability Investment • Sustained level of infrastructure investment required until equilibrium replacement rates are achieved - includes underground cable, poles, switches, and
Slide 13: New Technology Grid Impacts
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 13 2 1 3 1 1 1 2 2 New Technology Grid Impacts Future state based on evolving energy landscape More automated and digital, with more sophisticated voltage control and protection schemes Facilitates increasing renewables & two-w
Slide 14: Creating the Distribution Grid of the Future
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 14 Creating the Distribution Grid of the Future One-Way Electricity Flow • System planned and designed to serve customer demand • Very few distributed energy resources • Voltage simple to maintain • Limited situational awarenes
Slide 15: EIX is Responding to Industry Change
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 15 EIX is Responding to Industry Change • Public policy prioritizing environmental sustainability • Innovation facilitating conservation and self- generation • Regulation supporting new forms of competition • Flattening domesti
Slide 16: SCE 2015 CPUC General Rate Case
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 16 SCE 2015 CPUC General Rate Case • November 2013, 2015 GRC Application A.13-11-003 filed. Request sets base revenue requirement for 2015 – 2017 Includes operating costs and CPUC jurisdictional capital Excludes fuel and pu
Slide 17: SCE 2015 GRC – Intervenor Testimony
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 17 SCE 2015 GRC – Intervenor Testimony • In August, Office of Ratepayer Advocate (ORA) and The Utility Reform Network (TURN) submitted 2015 GRC testimony Proposed $680 million 2015 test year decrease Proposed $356 million O
Slide 18: CPUC and FERC Cost of Capital
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 18 CPUC and FERC Cost of Capital • CPUC – 48% equity with 10.45% Return on Equity (ROE) and adjustment mechanism approved through 2015 Interest rates did not trigger change to ROE for 2015 – continues at 10.45% Weighted ave
Slide 19: SCE Key CPUC Regulatory Events Calendar
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 19 SCE Key CPUC Regulatory Events Calendar Rate Design OIR (R.12-06-013) 2015 GRC (A.13-11-003) 2H 2014 1H 2015 2H 2015 2016 SONGS Settlement (I.12-10-013) Other proceedings next steps: • CAISO 2013-2014 Transmission Plan – Boa
Slide 20: SONGS Settlement – Summary
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 20 SONGS Settlement – Summary Term Description Steam Generators • Steam Generator Replacement Project (“SGRP”) removed from rates as of February 1, 2012, with book value balance disallowed. Revenues related to the SGRP collecte
Slide 21: SONGS Settlement – Third-Party Recoveries
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 21 SONGS Settlement – Third-Party Recoveries CPUC SONGS OII Settlement • SCE’s share of recoveries from NEIL and MHI will be reported in non-core earnings • Customer share of recoveries from NEIL and MHI will be credited to bal
Slide 22: SONGS – Units and Decommissioning
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 22 SONGS – Units 2 and 3 Decommissioning Decommissioning Trusts • Decommissioning Trust contributions recovered in rates approved by CPUC in triennial proceeding • Updated site-specific decommissioning cost study estimate (2014
Slide 23: Earnings Non-GAAP Reconciliations
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 23 Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Core Earnings SCE EIX Parent & Other Core Earnings Non-Core Items SCE EIX
Slide 24: Non-GAAP Reconciliations: Earnings Per Share Attributable to SCE
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 24 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 Reconciliat
Slide 25: Use of Non-GAAP Financial Measures
EDISON INTERNATIONAL® Leading the Way in Electricity SM October 28, 2014 25 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 of performa