Edison International · NYSE:EIX
Edison International — Lehman Brothers 2006 High Yield Bond and Syndicated Loan Conference
19 slides from Edison International's conference presentation, Mar 15, 2006
Slide 1: Edison International Business Overview
Exhibit 99.1 Business Jim Senior Lehman High March Scilacci Yield VP 15, Brothers Overview and 2006 Bond CFO, andEdison Syndicated Mission LoanGroup Conference
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “will,” necessarily to on the electricity doing availability interpretations markets or support development fair Additional Commission. reports speak 1 differ, allowances its California value presentation not common only business; “could,” filed of and to direc
Slide 3: Edison International Strategic Plan
Edison utility Balance Performance Shareholder Dividends Growth Strong Competitive Organic Produces Significant 2 International Growth Sheet long-term Returns power operating Strength generation —earnings in Strategic a large business andPlan and cash rapidly Foundation with flow large growth growin
Slide 4: 2005 Highlights
2005 Highlights Financial Balance Shareholder Dividends Growth Record (40%) annual (1) (2) 3 Recourse common high See Sheet Performance Appendix Returns earnings Strength Includes stock leverage –short-term, Yearof dividend for one $1.1 ratio1 non-GAAP ofbillion strategic from reduced current or $1.
Slide 5: Strategic Plan Value Drivers
Southernthe VALUE LADWP SDG&E SCE PG&E Among Support Strategic 4 for DRIVERS plan California fastest major capital capital growing Edison expenditures investment U.S. electric of Three $10.2 utilities year billion, rate Major nearly setting capital doubles Annual investment the cost spending oftocap
Slide 6: SCE Major Infrastructure Projects
SCE Balance Growth Targeted Plan Major -Mountainview Devers-Palo ($0.6 Maintain Performance Completed—December CPUC CA Authorized 1 5 SCE ISO –billion) share) project 2005 authorized—December See approval Sheet 2005 / improve ROCE Appendix Strategic Verde $1.71 status Strength Infrastructure – 1,054
Slide 7: SCE 2005-2009 Capital Expenditures
SCE 2005-2009 Major New Higher Strategic 2005 2.3 2.1 2.2 1.71 Current $ –transmission 2006 transmission Capital system Generation% Forecast Plan Transmission Distribution Current $ % 2007 outlook Period Expenditures growth 1.8 8.3 Forecast 2008 by 14 2.7 65 byprojects exceeds projects 21Classificat
Slide 8: SCE Pending Rate Base Growth
SCE 16.0 18.0 2003 15.8 14.4 12.9 11.9 11.0 10.2 Pending 2009 2005 7.8% Growth Notes: from (3) 7 –Oct. GRC 2006 8.2% Annual (1) Forecast Rate 2006 14.0 2004 Includes 2007 8.4% GRC Rate 12.0 plan: 2008 rate 11.6% the 10.0 Base base 2006: 2009 impact 9.7% 8.0 Growth (2006–2010) $0.4 2010 6.0of4.0 bill
Slide 9: 2006 General Rate Case Update
2006Proposed ALJ Substantially (2006-2008) Remaining Oral Final 8 arguments General decision Schedule and affirms Rate will Decision scheduled $100 be Case our retroactive million received Update infrastructure for April lower in to 4, January O&M 2006 investment revenue Final 12, 2006 decision plan
Slide 10: Edison Mission Group Value Drivers
Edison Strong March Iowa Misc. Midwest Homer Ambit Wildorado San Big Value Low-cost, 7,545 447 9 4, Juan wind Storm Wind coal Drivers Sunrise, 40 Point operating City Mission Generation Mesa (5%)—(including MW coal (100% 161 83 Lake 1,884 70MW generation Other 90 MW Group platform, 113 merchant) MW
Slide 11: EMG Strategic Plan Performance
EMG Balance Plan Manage Growth Reduce Debt Generation Net Performance Organization Retired $194 10 income reduction million 2005 over G&A Sheet merchant development Strategic at$1.2 of restructuring EMG Strength wind billion margin of Plan equity $441 ofPerformance complete callable investment milli
Slide 12: Edison Mission Group Focus
Edison Mission Optimizing Effective controlled Continued Developing Year-end 11 2005—$1.9 management trading debt the a pipeline value reduction Group—Focus in the of billion of ofthe markets renewable fuel and existing ofoperating and cash intransportation which generation generation available cost
Slide 13: Merchant Coal Forward Sales
Merchant Coal Forward Generation Emissions Costs Basis 2006 MWGen HomerTransp. Sales Coal 2007 Contracted Portfolio Coal 100% City 101% 94% GrossCredits Requirement 91% Margin Value Chain Contracted MWGen Homer NOx SO2 CoalSO2 10% prices (1) 12 and City affects costsCoal 100% 100% Aggregate change T
Slide 14: Merchant Coal Hedge Program
Merchant Coal Forward Generation Emissions Outputs Hedge Volume MWGen prices Midwest Homer Basis Amount Assumes (1) retains 13 Hedge Transp. historic $/MWh Program the City (TWh) 2006 of Sales (TWh) Gen Homer Coal price risk, hedging averages 2007 (1) Portfolio 15.0 referred is30.0 City $53.42 atFor
Slide 15: Utilizing Commercial Power Expertise: Renewables Wind
Power Utilizing Commercial Renewables—Wind 161 Developing 14 MWGeneration Wildorado its projects development operation: Growth project in Vermont, 261 expertise, MW (Texas) Maine, Investment EMG $270Iowa million is building Pipeline andproject; other a portfolio states expected supportive of renewab
Slide 16: California Thermal Generation Opportunities
Big 4natural Kern Other EMG New 2 15 EMG/BP Early River—5-year projects California pursuing Big project Petroleum 4coke Approximatelycontracts gas-fired contract 1,500 proposals development hydrogenThermal 90% fuel contract ofMW expire: generation extension phase power filed –Generation CO2 of submi
Slide 17: Edison International Dividend
Edison Longer-term, 2006 2005 2004 1) 2) 16 Dividend International paid rate targeting – Dividend dividend payout Per Share ratio $1.20 of 45-55%, $0.90 $0.60 excluding $0.30 MEHC $0.00 $0.801 earnings $1.001 2005$1.082 core payout ratio excluding MEHC earnings – 50%
Slide 18: Appendix: Leverage and Classification Notes
Appendix termination balance The value comparable Slide Transmission, 2005 Nuclear Capital 17 calculation 53: of&expenditures sheet The fuel, $1.5 6:value 2004 calculation one-time billion, classifications, Distribution forleverage ofthe $1.5 per short-and decommissioning 2004 for Statement billion,
Slide 19: Appendix: Core Earnings Reconciliation
Year Appendix Core 2005 Edison Ended Earnings Mission2004 Southern December (Loss) California Energy Capital 0.28 Edison Holding 0.18 31, Per Common Company Company 0.10 Share $1.82 1.13 Change $1.80 (0.27) 1.40$0.02 EIX core Non- SCE parent –items company Consolidated Coreand other (0.10) Earnings
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