Edison International · NYSE:EIX
Edison International — Q3 2011 Earnings Presentation
42 slides from Edison International's earnings presentation, Nov 2, 2011
Slide 1: Third Quarter 2011 Financial Teleconference
Exhibit 99.2 Leading Third November INTERNATIONAL EDISONQuarter the INTERNATIONAL® 2,Way 2011 2011 in Financial ElectricityTeleconference SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements statements. expectations “Risk www.edisoninvestor.com. 1November EDISON Factors,” the2, contained INTERNATIONAL® These Way only 2011 and in as forward-looking Statements Electricity “Management’s ofinthe this These date presentation SM offilings this statements Dis
Slide 3: Third Quarter Earnings Summary
Leading Third $477 $426 EMG Core Q3 Non-Core SCE ($ EMG(0.03) $510 EIX Total Basic 1Diluted and 2November See EDISON millions) 10 other zero parent $1.08 $0.13 EPS1 EPS $1.46 $1.31 $1.56 Non-Core Earnings Quarter EPS 0.37 Q3 EPS the per $426 $1.46 11 Items $1.56 2, 0.10(0.27) $1.25 $ company INTERNA
Slide 4: SCE Third Quarter EPS
Leading SCE EPS Core1 Non-Core Basic Key Higher •Recent 21In November 3EDISON In SCE’s FERC See Global September October October Core Q3 Third Use EPS1 $1.08 Developments operating 2012 cost 10 the tax INTERNATIONAL® Earnings Items2 of 2, Quarter 2011, Q3 $1.21 Way 2011, settlement. $1.25 of Non-GAA
Slide 5: SCE Return on Equity and Moody's Index Cost of Capital Mechanism
Leading SCE Moody’s (%) Starting Oct-07 ROE •If November 4EDISON Since Moving In index April Rate Cost adjustment Oct-08 2008, exceeds Index the Baa INTERNATIONAL® 2012, average of 2,Way Capital 2011 SCE’s Utility =Oct-09 SCE 6.26% abased inwas 1% Electricity CPUC Mechanism Index will deadband Oct-1
Slide 6: EMG Third Quarter EPS
Leading EMG EPS Core1 Midwest Non-Core Wind Basic Big Higher Lower Total 4321•Recent 5November Acquired Improved Homer SeeFour(0.01) Global Includes US EDISON Q3 Treasury Variance Projects(0.03) Use Third EPS1 $0.37 income Developments net 10 the City tax Generation Items2(0.03) of impact 2, interes
Slide 7: Year-to-Date Earnings Summary
Leading Year-to-Date YTD Core SCE GAAP EMG EIX Basic 1Diluted 2011, 6November Seeparent EDISON $0.18 EPS 10 Earnings and EPS 0.49 0.17 Earnings EPS YTD the $(0.01) $2.90 $3.33 2, (0.04) (0.01) $company INTERNATIONAL® Way $3.31 — Earnings 2011 11 Non-GAAP $(0.18) $2.47 Basic $2.46 Variance in (0.53)
Slide 8: SCE Year-to-Date EPS
Leading SCE EPS Core1 Basic 21Higher November Higher See Global YTD Year-to-Date Use EPS $2.45 net the tax depreciation 10 of $2.63 2, interest Way settlement $2.57 Non-GAAP YTD 2011$2.57 inHighlights 7expense $0.12 11 Electricity EDISON Variance (0.11) $(0.06) and Higher Financial (0.07) Medicare I
Slide 9: EMG Year-to-Date EPS
Leading EMG EPS Core1 Non-Core Basic Key Merchant Midwest Homer Wind 2010 EMMT—trading(0.07) Higher Lower 321Total November SeeCore Includes YTD March Variance Projects Year-to-Date Use EPS1 $0.49 income City(0.14) net the Generation coal3 Earnings 10 Items2 of discontinued impact 2, interest(0.09)
Slide 10: EMG Hedge Program Status September 30, 2011
Leading EMG September Net1 Remainder of 2011 Midwest Homer Total Average 21Coal 43significant 5intercompany November The Change Includes From under Net1 Q2 GWh Hedge above average City From the price 2012 Generation from Net1 hedging 2, variability 30, Change contract (NI (West Way hedge Program 201
Slide 11: EMG Recent Development Activities
Leading EMG Recent Laredo Cedro Big Project 940 Portfolio 1,807 Wind: 479 Gas-Fired: 1•Wind November All Broken Crofton Received $57Sky—$144 MW turbines Turbine Development MW million Hill—$108 Activities Ridge—$58 Debt the Bow & financed under Bluffs, 2, in $310 Development Way 2011 utilized servic
Slide 12: Wind Funding September 30, 2011
Leading Funding September = $1,185 Adjusted $390 $615 $1,005 $435 $213 $648 $361 YTD $190 $135 $402 $537 Remaining $200 $444 1$644 includes 2million construction, November EDISON 11Wind Includes Gas-Fired $171 Sources Uses $615 bank sources the $135 for Sources Uses2 INTERNATIONAL® the 2, (2011) 30,
Slide 13: EMG Capital Expenditures
Leading EMG September 2010 Midwest Homer Plant Environmental Walnut Renewable Capital Turbine Other 1Total 5432subtraction November Total 20101$722 Includes Environmental Excludes capital Capital capital 2011 actual project City Creek &commitments the Generation construction actual 2, 30, $690 estim
Slide 14: 2011 Earnings Guidance
Leading 2011 Earnings as Low Non-core EMG Actual/Midpoint by SCE EIX EMG(0.19)(0.10) Total Southern Assumptions 48% Edison 21•Other November Average Approved Forward EMMT Normal No Excludes See Represents of key core basic parent energy changes Mid equity, $3.08 8/4/11 Earnings 2011 non-core $2.75 U
Slide 15: Appendix
Leading the2,Way November Appendix 2011in14 Electricity EDISONSM INTERNATIONAL®
Slide 16: Key Updates Since Last Presentation
Leading Updates Q3 Funding 2011 Key Liquidity SCE Other EMG November 11 Events Transmission Cost 2012 Earnings Hedge Development –Capital SCE results Adjusted the Since for Profile of CPUC 2, Key Driving Way 2011 Capital Program 2011 and Expenditures Our Guidance Regulatory (p. EBITDA in General –st
Slide 17: Delivering Superior Value
Leading Delivering •(Smart Implement Edison Mission Manage Continue Our November Diversified Positioned Balancing Decoupled 10,000 Unlocking keyGrid liquidity Group operating the MWgeneration 2, Superior durable electric Way and option for regulatory platform 2011 portfolio long-term PEVs) inprincip
Slide 18: Financing Strategies and Dividend Policy
Leading Financing Mission •Edison Dividend Policy November Authorized Periodic Current No financial • Modest Group the development •debt Strategies 2, Target Way capital 2011 support and •annual Balance inpayout 17 preferred Electricity structure: for EDISON from, program increases 2011-2014 ratio o
Slide 19: Key Q4 2011 Events Driving EMG Value
Leading •Key Q4 MWG Additional HAPS proceeds 2015 November Address Finalize Continue 2011 Events – CSAPR MACT 16the 2012 PJM durable upcoming capacity 2, generation US Driving Way 2011 RPM rule 2013 Treasury Phase insolution 18 final auction Electricity >2014 EMG maturities IEDISON portfolio Walnut
Slide 20: Liquidity Profile September 30, 2011
Leading Liquidity September EMG & Sources Credit Available Third $253 $182 Tax-allocation 4321EME November EDISON 19Edison Excludes EME US Capital million Treasury Edison has quarter Facility had SCE the Capital INTERNATIONAL® recognized Profile Liquidity parent 2, 30, the corporate Way EIX net rece
Slide 21: Debt Profile September 30, 2011
Leading Debt September 2011 Short- SCE EMG1 EIX Expiration SCE2 EME MWG 21EIX2 November Includes $9810 $550 Maturity 2012 —million $and —24 —— the 600 —500 54 $project — Long-Term 2013 2, of 30, $1,426 Way —— 2011 652 Credit of —— Profiles 2011 $$2,894 — 2014 SCE in —273 finance —20 Electricity ($ F
Slide 22: Reconciliation of Earnings
Leading ($ Reconciliation Earnings Edison Core Non-core SCE EMG Total 21EIX November See Includes millions) parent –Core GAAP –$352 Earnings1 Non-core Use –120 tax tax International tax discontinued the Attributable Non-GAAP items Earnings settlement 33 of settlement $406 termination 2, company sett
Slide 23: Our Dual Value Proposition
Leading Our Dual Southern Among Supportive Leadership See Working Commitment Incentive Edison November EDISON 22 real Shareholder platform Mission people the equity the coal California INTERNATIONAL® compensation 2, regulatory in best Way 2011 to fleet renewable operating committed value Group long-
Slide 24: SCE Appendix
Leading SCE November Appendix the2,Way 2011in23 Electricity EDISONSM INTERNATIONAL®
Slide 25: SCE Capital Expenditures Forecast
Leading SCE ($ $4.4 $4.8 2010 $3.8 $$4.0 Forecast Total Range1 By 1% change, November %2009 Currently billions) Proceeding Solar $4.3 Capital 2011 $3.9 delays, CPUC the By $4.4 Photovoltaic 2012 2,forecasted Way Classification Expenditures $4.3 2011 $4.8 Rate regulatory 2013 in $3.8 $4.3 24 Electric
Slide 26: SCE Rate Base Forecast
Leading SCE ($ Rate $20.8 $21.2 $18.2 2011 $18.0 1$19.9 $24.7 (3) 2Job November Forecast Forecasted billions) FERC Creation Base Rate –$22.8 2012 $22.6 2014 the Base construction 8-11% range 2013 2,Way CAGR2 Acts Rate 2011 Forecast1 2014 isinof Base 25 weighted-average Electricity 2010. EDISON work
Slide 27: SCE 2012 General Rate Case
Leading SCE Rate Excludes Cost $630 •$220 2010 Estimated Q3 July Notice 1Intent November Application ALJ The SCE’s Scoping Q4 19 increase 2012 of million 2011 Division has Filed of Q1 Capital GRC current the fuel Application indicated Memo CPUC Q2 2,–Way operation capital-related 2011 Comparison fil
Slide 28: SCE Major Transmission Projects
Leading SCE Project Devers-Colorado Red Eldorado-Ivanpah4 Other Grand 2011-2015 Licensing Engineering/Construction 2013 2014 Various $4,958 Cross Antelope Windhub Highwind Rector Santa Colorado Ivanpah Pardee Whirlwind Los Valley Devers MiraLoma DCR Existing Redbluff Alberhill Tehachapi Eldorado San
Slide 29: Other SCE Regulatory Cases and Milestones
Leading Other Case Date Next Status FERC Devers-Colorado Transmission Tehachapi Eldorado-Ivanpah ER11-3697 Alberhill A. Settlement Special July May Permit Court CPUC 1st Construction Draft November EDISON 28 07-06-031 05-04-015 09-05-027 09-09-022 half 2011, 2011, of Milestone Number Environmental S
Slide 30: SCE Results of Operations, Three Months Ended
Leading SCE ($ Three Fuel Operation Depreciation, Property Operating Income Dividends subject Net Core Non-Core Tax 1Total November See millions) interest income settlement and Results Earnings operating SCE Use Months to before tax the and purchased mandatory Revenue and income Earnings1: of on GAA
Slide 31: Reconciliation of SCE Earnings
Leading Reconciliation Earnings Attributable Non-core Tax Health Regulatory Generator Total 1SCE November Seesettlement Core GAAP non-core Use care the Per items settlement/refund of EPS Earnings 2, and legislation Way Earnings to Non-GAAP Share 2011 of items — SCE Non-GAAP tax in SCE —30 items Elec
Slide 32: EMG Appendix
Leading EMG November Appendix the2,Way 2011in31 Electricity EDISONSM INTERNATIONAL®
Slide 33: EMG Operating Platform
EMG September 1,884 141 167 19 190 Operating 461 Coal Other Total Under Natural Wind 321Pipeline3 November Leading Natural Deliveries Owned 305 244 7,096 10,325 1,807 175 Development Business 67 153 Construction 55 Gas Gas2 the 133 or gas ~3,800 Platform1 964 12, 30, 69 18 under Way 1,269 under 100
Slide 34: EMG Installed Capacity and Hedge Position
EMG September Installed Capacity Price MW October June Midwest 321Homer 54manage November Capacity Other Excludes Includes MW 1, per Coal City4 2012 2013 2014 capacity 1, Unsold Generation Average Capacity1 MW the 2011 2, 30, not Fleet renewable 165 to 2011 1,884(163) 1,884(232) 1,884(104) 1,884(190
Slide 35: Midwest Generation Operational Statistics
Leading Midwest •Operational All-in $51.44 $33.36 $18.08 Q3 Average 3215,172 November Total Forced Capacity Equivalent Load Average Includes See 10Other MW Average Q3 Generation Factor $49.30 $31.89 $19.43 the realized Outage Generation 11 realized the Factor 2, –Statistics Non-GAAP Way Availability
Slide 36: Homer City Operational Statistics
Leading Homer •Operational All-in $29.11 $28.83 Q3 Average 3211,884 November Total Forced Capacity Equivalent Load Average Includes See 10Other MW Average Q3 Generation Factor $35.00 $28.11 City the realized Outage 11 realized the Factor 2, –Statistics Non-GAAP Way (Pennsylvania) Availability Three
Slide 37: EMG Completed Environmental Construction
Leading EMG Completed 2010 Mercury (lb/GWh) $45mm NOx SNCR SO2 $13mm emission (lb/mmbtu) 0.28 0.15 Construction 0.11 0.13 Up 21Fleet-wide across equipment November Actual Based toCounty 0.195 2006 $1.2 allCost on the mercury rate units, 2, is Crawford billion average requirement Emissions1 stack Ill
Slide 38: EME Covenant Ratios
Leading EMG 9/30/10 EME Funds Corporate-Debt-to-Capital Midwest Debt Homer Senior 1Covenant quarter November A Senior to Credit Debt Flow Rent City ended Capitalization 12/31/10 the Generation Threshold threshold 2, Rent Covenant Available Way Lease Service Facility 2011 September Coverage in 3/31/1
Slide 39: EMG Q3 Comparative Information
Leading EMG Q3 Midwest Energy Homer Generation Equivalent Performance Forced Pricing Average Flat Basis November 10 energy (PJM Comparative Q3 City outage only Information the realized cost Generation 11 2, availability (in price West Way contracts Variance% of 2011 rate GWh) fuel energy –in Hub 38
Slide 40: EMG Adjusted EBITDA Reconciliation
Leading EMG September Reconciliation Addback Earnings Income Production EBITDA2 Gain Adjusted Q3 4$110 64 63 62 2112 November EDISON 39(1) 0 Earnings See 82 (1) 78 10 10 7 (4) on $33 7Use –45 198 182 (22) Q3 7Adjusted from sale/disposal the 3$315 47 (Deduct): EBITDA2 INTERNATIONAL® $214 11 of 242 22
Slide 41: EMG Generation Reconciliation
EMG ($ Q3 Generation Less: All-in Add Realized Average Reconciliation Operating Renewable Fuel Midwest Homer Other Segment November Leading millions) 10back: costs Costs Unrealized Other revenues(25)(1)(27)(2) revenues average Q3 City the realized revenues fuel Generation 11 revenues $151 Unrealized
Slide 42: Use of Non-GAAP Financial Measures
Use United performance. regarding Core representative the Edison of from leases, operating energy A November either operating orofEMG’s and principal for Non-GAAP the Edison stock reconciliation core aour and time 2, non-GAAP the before options 2011 uses earnings discontinued earnings evaluating Sta