Edison International · NYSE:EIX
Edison International — Investor Presentation (May 2008)
42 slides from Edison International's investor presentation, May 23, 2008
Slide 1: May-June 2008 Business Update
Exhibit Leading Business May-June May EDISON 23,99.1 the 2008 Update INTERNATIONAL® 2008 Way in Electricity SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements not differ International’s represent May E 1 DISON purely 23, materially the 2008 our INTERNATIONAL® historical, contained Way expectations 2007 from inStatements Electricity Form are in current this forward-looking 10-K only presentation expectations. SM as and of
Slide 3: What's Updated
Leading What’s Updated •Additional May E 2 1Q Regulatory Renewable Electronic Shareholder DISON 2008 23,New the 2008 Information INTERNATIONAL® results Topics technology Way Since transmission matters value in and Our Electricity proposition (p. forward April solutions 19,planning 33) Update looking
Slide 4: Strategic Overview
Leading Strategic May E 3 DISON 23, the 2008 Overview INTERNATIONAL® Way in Electricity SM
Slide 5: Edison International (EIX) Value Drivers
Leading Edison EIX SCE Strong Proposed 49%—Expand 28%—New 13%—San 6%—Edison 4%—Solar Three-year Cost Procurement FERC Earning EMG Low-cost Adjusted Improving Experienced Hedging Diversify Emphasize Focus 1 2 May E 4 DISON Subject SeeIntegrated Value 23, ofuse Value on transmission focus Internationa
Slide 6: Our Business and Financial Profile
Leading Our Financial Southern Edison Revenue Note: includes May E 5 DISON Business 23, Capacity International Mission the Edison 2008 $13.1 $10.5 $2.6 California INTERNATIONAL® data Way Portfolio Generation isGeneration Operating and Group Mission for in wind Electricity Edison the year Energy pipe
Slide 7: Financial Objectives and Funding Strategies
Leading Financial Funding Operating Cash Credit Southern A Edison BB Targeting Dividend 1 May E 6 DISON Senior rating rating 23, on Objectives1 Mission metrics hand, the 2008 Growth unsecured California INTERNATIONAL® Strategies Policy increases annual metrics cash Way operating flow Energy (current
Slide 8: 2008 EIX Earnings Guidance Reconciliation
Leading Reconciliation 2008 Non-Core Southern Edison Total EIX The 11.5% SCE Energy Forward EMG EMMT •Lower Other 1 share 2 May E 7 Excludes DISON Seecurrent Earnings core GAAP 23, Earnings Guidance Non-Core for Use Return pre-tax Mission Efficiency pre-tax the 2008 hedge 2008 California earnings IN
Slide 9: Southern California Edison: An Investor-Owned Electric Utility
Leading Southern An May E 8 DISON Investor-Owned 23, the 2008 California INTERNATIONAL® Way in Electricity Edison Electric(SCE) Utility SM
Slide 10: Largest Electric Utility in California: Earnings Drivers
Leading Largest 13 4.8 50,000 Earnings Cost Infrastructure Almost 2008 California SCE May E 9 DISON million million 23, System earnings Service inflation new peak square-mile 400,000 85% electric the 2008 model driven INTERNATIONAL® connections and demand residents customer Way of Territory replacem
Slide 11: SCE Power Supply and Demand Balance
Leading SCE Power Supply Other Generation New Anticipated Retirements Requirement1 Demand Increased 319 1,339 4,176 830 1,874 Side Potential by Balance Considerations Environmental Stability Price Reliability System •Load 1 2 May EDISON 10Energy Demand Renewable Distributed Clean ~6,700 ~1,350 This
Slide 12: SCE Renewable Procurement
Leading Biomass Wind Geothermal Solar Renewable 2007 12.5 28% 16 •SCE May EDISON 11 Transmission 16% ~1/8 Over Contracts SCE 2010 Increase 23, Renewable 2007 2010 Actual Renewable 5% 21% of will 90% Goal the 2008 8% all SCE INTERNATIONAL® Small Renewable demonstrate are Resources of 62% Way US Procu
Slide 13: SCE Proposed Capital Investment Forecast
Leading SCE Proposed $0 $1 $2 $3 $4 $5 2012 2011 2010 2009 2008 $3.8 $4.6 $4.5 $4.1 Edison Generation Transmission Distribution Forecast $ CPUC FERC Total1 In 1 to pre-filing May EDISON 12Billions % Subject occur 2008 $2.9 Solar CPUC 23, Capital Rate 19.9 Project SmartConnectTM SCE in the 2008 by IN
Slide 14: SCE's Rate Base Forecast
Leading SCE’s Forecast $ 12+% $0 $5 $10 $15 $20 $25 Effective 2012 2011 2010 2009 2008 2007 $23.6 $21.3 $18.3 $15.5 $12.7 $11.7 1 and Stimulus Commission to May EDISON 13Billions Includes work regulatory 23, Compound Earning with the 2008 SCE Act execution INTERNATIONAL® impact Way ACC (ACC) of Rate
Slide 15: SCE Transmission Projects
Leading •SCE NEVADA Las Midway (PG&E) Palmdale Antelope Territory Windhub Vincent Mira Serrano Los Ana Santa Valley Existing 2008-2012 Project Renewables Tehachapi Rancho Reliability Other DPV2 Economics Total Grand FERC 1 2 in 3 May EDISON 14Tehachapi New All Subject Includes a Vegas Angeles minimu
Slide 16: SmartConnect Phase Timeline and Highlights
Leading Phase Cumulative 2008 $100 – Highlights to customers which cost Itron integration, •management, reduce as 365,000 Integrate SCE 1 May EDISON 15Phase Estimated SmartConnectTM Edison 1.4 Subject 5.3 1,000 to 23, Edison leadership and 2009 Mmillion III approximately be peak III $450 3.0 metric
Slide 17: Nation's Leader in Energy Efficiency
Leading Nation’s 1992 9,000 10,000 EE FPL NSP PG&E SCE 2,226 3,863 4,041 7,090 •9,031 SCE’s 1 May EDISON 16Alliance American During 27SCE US United Environment Milestones 23, to Department 8,000 customers has strong 2006 the 2008 Leader the INTERNATIONAL® to 69 reduced consistently States Council Wa
Slide 18: SCE Energy Efficiency Earnings Opportunity
Leading SCE CPUC Year 65% 2013 2012 2011 2010 2009 opportunity2 SCE, 1 2 to September the 3 earnings 4 form, decrease May EDISON 17Assumes There The Based $49 fourth of 23, Energy Potential the the January million Approved 2006- is upon the 2008 are to national effective INTERNATIONAL® quarter no of
Slide 19: SCE's Rooftop Solar Program
Leading SCE •$ •– SCE’s 1 May EDISON 18Install SCE Operating 1-2 May 100 Subject 87523, Solar MW b.p. has proposed seek million 250 the 2008 INTERNATIONAL® to premium requested average Rooftop costs future Way CPUC MWcapital rooftop in would ofauthority installations approval. Program Electricity fo
Slide 20: Constructive Regulatory Environment
Leading Constructive What’s Advance Trigger Forward-looking State Benefits Upfront Better Three-year Regulatory California’s investment) May slowdown EDISON 19 23, support matching Changed mechanism review the to 2008 approval INTERNATIONAL® Customers process decisions regulatory Way Regulatory foro
Slide 21: Renewable Build Challenges
Leading Renewable Build Objective Delivery System Technical: Challenges Cost Schedule May EDISON 20 23, a robust reliability the 2008 Capacity INTERNATIONAL® Integrating Transmission Way renewable inand Electricity power Intermittent transmission Planning quality SM resources systemRegulatory: that
Slide 22: Advanced Technology to Meet the Climate Change Challenge
Leading Electric Advanced Smart Grid-connected Technology Low Demand-Side •While May EDISON 21 Mitigate Meet Carbon 23, Grid/Smart protecting customer Technology the 2008 INTERNATIONAL® rate Generation Advancement Way Fuel Management shocks, Transportation expectations customers: in Mix Connect Elec
Slide 23: Edison Mission Group: A Competitive Power Generation Company
Leading Edison A May EDISON 22Competitive 23,Mission the 2008 INTERNATIONAL® Way Power Group in Electricity Generation (EMG) SMCompany
Slide 24: EMG Status and Generation Platform
Leading Status Natural Coal Operating Wind MW 1 2 3 May EDISON 23Natural Owned Contract Natural 23, 5,471 (UC) 95 90 161 145 75 (Pipeline) Development atGas the 2008 March MW or INTERNATIONAL® gas MW Platform1 award MW 141 under Way 70 964 (Pipeline) Gas includes Wind Wind MW MW 31, 1,140 70 300 515
Slide 25: EMG Midwest Generation Statistics
Leading EMG Midwest 5,776 Operational •Homer All-in $/MWh 2005 Average 1 2 May EDISON 241,884 Northern Largely Operational Average Includes 23, 2006 Coal-Fired MW Average City MW $60 the realized 2008 Generation INTERNATIONAL® sourced realized the Appalachian 2007 –Statistics: Way $40 –Six Statistic
Slide 26: EMG Midwest Generation Hedging Status
Leading EMG Status Remainder 2008 Energy Megawatt Load Estimated Homer Total Average Coal 1 the affect 2 Midwest per 3 been May EDISON 25The time MWh 23, lower under 2009 estimated Requirement Hedge retail amount average atCity Only of the Price 2008 March Generation INTERNATIONAL® represents Hours
Slide 27: EMG Capacity Status
Leading EMG Status Apr Midwest Megawatts Installed Less: and Net Fixed Non-unit •Variable Total Average 1 2 3 megawatt purchasing May 2008. EDISON 26Net Price Capacity Expected Actual Load During retained Capacity 1,23, Capacity Net Capacity Price at 2008 per requirements the Price Capacity 2008 con
Slide 28: Edison Mission Marketing and Trading
Leading Edison Extending Reducing Leverages Trading •Entering Allowed VaR, $ $250 2003 EMMT 1 EDISON 27Optimize EMMT Controls Millions Income volumetric, $200 2004 Mission Trading provides primarily the California products provides INTERNATIONAL® from collateral on knowledge hedge $150 2005 forward
Slide 29: MWG Environmental Compliance Plan
Leading MWG 90% Installation Phase Emissions Flue Estimated Homer PA EMG Based Note: May EDISON 28 State Gas removed 23, Cost Environmental is Ion II III Compliance City –conducting –the 2008 Implementation –Desulfurization Mercury INTERNATIONAL® this cost NOx of estimates SO2 of Way Compliance .11
Slide 30: EMG Wind Development Portfolio
Leading Contributes Objective Leverages Growing Production Accelerated Mainly Wind Projects1 In-Service Under Total Development Purchased •Turbines 1 May EDISON 29Turbines Working Strategic Development Data23, Projects Energy energy Project Construction as long-term the 2008 RPS INTERNATIONAL® of No
Slide 31: Other Growth Opportunities
Leading Other •Natural Sun Potential Will Complement Evaluating Solar Clean-Coal Continuing Carbon Post-combustion May EDISON 30 Walnut Valley, be 23, EMG selective capture Gas-Fired the 2008 Creek, acquisitions INTERNATIONAL® investment to CA Technologies Way Growth marketing investigate opportunit
Slide 32: Our Demonstrated Shareholder Value Proposition
Leading Our Demonstrated Among Leadership Favorable •Strong May EDISON 31 Attractive Southern Commitment Incentive Edison Shareholder 23,growth the the 2008 Mission people INTERNATIONAL® market California compensation in best business Way environmental need pipeline tocommitted domestic Value in Gro
Slide 33: Appendix
Leading May Appendix EDISON 32 23, the 2008 INTERNATIONAL® Way in Electricity SM
Slide 34: GRC and Transmission Regulatory Proceedings
Leading GRC 2009 and recommendations (COC) Multi-Year Program Tehachapi Transmission (segments DPV Transmission1 Edison SmartConnectTM Capacity R. SCE A. March Rooftop up 1 May EDISON 33CPUC 05-12-013 04-12-007/8 08-03-015 activites other 23, Solar 2GRC Application A. –Phase the Program 2008 has ACC
Slide 35: First Quarter Earnings Reconciliation
Leading First Reconciliation EIX Non-core Total Basic Diluted Core Midwest interest Lower Income Higher SCE environmental EMG exchange 1 2008 2 May EDISON 34Seeparent EMMT23, $Quarter 1Q EPS1 Earnings and Non-Core Use EPS 0.48 0.01 1Q 0.45 0.10 net generation gains gross income EME expense from EPS
Slide 36: EMG First Quarter EBITDA Reconciliation
Leading EMG Reconciliation Net Addback Discontinued Interest Income Depreciation EBITDA1 Production Adjusted 1 2 May EDISON 35Seeincome Production 23, Use – First from expense income taxes the 2008 (Deduct): EBITDA1 INTERNATIONAL® of 331 tax $159 Way Quarter Non-GAAP tax and continuing 77 operations
Slide 37: EMG Annual EBITDA Reconciliation
Leading EMG Reconciliation Net Addback Discontinued Interest Income Depreciation EBITDA1 Production Discrete Gain Loss Adjusted 1 2 May EDISON 36Seeincome Production 23, on Adjusted Use from expense income taxes early sale the items: 2008 (Deduct): EBITDA INTERNATIONAL® of 937 tax $432 Way of Non-GA
Slide 38: EMG Projected Capital Expenditures
Leading EMG Projects $ 2008 Total •Estimated 1 installed these agreements pipeline May EDISON 37Additional Balance Homer Midwest Evaluating Millions EMG 23, 2009 $2,109 projects Capital expects currently Under the 2008 City capacity INTERNATIONAL® of Expenditures1 Expenditures Generation $1,000 2010
Slide 39: EIX Liquidity Profile
Leading Liquidity EIX Sources Credit Cash Available 1 2 May EDISON 38Total SCEParent 23, &Facility amount amounts short ($ the 2008 INTERNATIONAL® Profile Liquidity inWay Millions) term $2,500 (availability) includes do ininvestments2 not at $2,166 Electricity March $1,100 imply SCE $113 $2,159 $EMG
Slide 40: Midwest Generation Operating Statistics
Leading Midwest Generation Higher Operating Total All-in /MWh 1Q Average 1 2 May EDISON 39Average Includes 0723, 08Generation Average average vs. 1Q $load the realized 2008 $20 Generation INTERNATIONAL® 1Q 07 Statistics realized the lower Way factor $60 08 price realized Realized gross (GWh) in $40
Slide 41: Homer City 1Q Operating Statistics
Leading Homer •1Q Operating Total All-in $60 $/MWh $58.42 Average 1 2 May EDISON 40Generation Average Includes 07 $40 23, Generation Average average vs. $35.85 City $20 the realized 2008 INTERNATIONAL® 1Q Statistics realized the Way –$0 lower 08 Operating price realized $22.57 Realized $59.72 gross
Slide 42: Use of Non-GAAP Financial Measures
Leading Use Edison and accurately EPS share. securities principal operating EBITDA gain evaluating A referenced May EDISON 41reconciliation Exchange EPS of on by 23,Non-GAAP International’s the principal the 2008 by operating is INTERNATIONAL® subsidiary (vested compare EMG. in sale defined principa
Edison International — Investor Presentation (May 2008) on 6ix