Edison International · NYSE:EIX
Edison International — Investor Presentation (November 2007)
44 slides from Edison International's investor presentation, Nov 26, 2007
Slide 1: Leading the Way in Electricity: November Update
Exhibit 99.1 Leading the Business November-December November Update 23, Way 2007 in Electricity EDISON 2007 INTERNATIONAL® SM
Slide 2: Forward-Looking Statements
Leading Forward-Looking Statements not differ International’s represent November purely materially the our historical, 23, contained Way expectations 2007 2006 from inStatements Electricity 1Form are in current EDISON this forward-looking 10-K only presentation expectations. SM as INTERNATIONAL® and
Slide 3: Strategic Overview
Leading the Strategic November Overview 23, Way2007 in Electricity 2 EDISONSM INTERNATIONAL®
Slide 4: Edison International (EIX) Value Drivers
Leading Edison EIX SCE Strong Tight Energy Proposed 53%—Expand 25%—New 15%—San 7%—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 November Subject See
Slide 5: Our Business at a Glance
Leading Our Revenue1 Southern Edison Revenue 1 Business November Note: International Mission billions,Reflects the $10.3 $2.3 California $12.6 Way FinancialPortfolio Operating Operating Group inter-company Operating population 23, in served 2007 data Electricity Edison forCash Cash Cash 4isEDISON th
Slide 6: Our Competitive Value Proposition
Leading Our Strong Competitive Visible Increasing Attractive November Value utility earnings theand Proposition capacity 23, Way generation platform sustainable 2007 and in values Electricity 5cash EDISON with business flow growth for earning coal-fired SM growth INTERNATIONAL® with investment asset
Slide 7: Growth Strategies
Leadingprincipally Growth Southern Driven Transmission Distribution Generation Energy Edison Optimize Investments Renewables Gas-fired Advanced NovemberMission efficiency Strategies the California business generation fossil 23, –Way led emphasize: diversify –meeting –system 2007 system Group by fuel
Slide 8: Financial Objectives and Funding
Leading Financial Funding Operating Cash Focus Credit Southern A Edison BB Targeting Dividend 1 rating rating on on Objectives1 NovemberMission Senior metrics hand, the Growth California organic Strategies Policy increases annual metrics cash Way 23, operating unsecured flow Energy (current: Investm
Slide 9: 2007 Earnings Guidance Reaffirmed
Leading Earnings Reconciliation 2007 reaffirmed Core Non-Core Southern Edison Total EIX 1 2 November Seebasic 2007 parent core EPS1 Guidance Non-Core use non-core Mission the Guidance California earnings of earnings Items2 as 23, company of Way Non-GAAP 11/02/07 2007 ofGroup Items items in Core per
Slide 10: Southern California Edison (SCE)
Leading Southern An November Investor-Owned the California 23, Way 2007 in Electricity Edison Electric 9 EDISON(SCE) Utility SM INTERNATIONAL®
Slide 11: SCE Growth Driver: New Customer Connections
Leading SCE New 87,708 77,437 50,000 Peak Forecast 26,000 MW 22,889 2002 SCE’s 4 5 Expect 385,791 August Strong 1 of the Value Growth1 Meter Demand 2003 service November 2 3 LA, Morenocustomer 90,000 75,626 22,000 23,303 to 2007 10 25 meters the be2004 fastest Driver Connections Way 75,626 demand fi
Slide 12: SCE Renewable Energy Procurement
Leading State current Renewable Represents 08 Agreement Secures The Projects Expanded SCE 1 eligible November CPUC wind Value –law expanded entered the renewable renewable at to the allows requires project, Geothermal nation’s least 23, be Driver ~17% with resources Way into built 2007 agreement 1,5
Slide 13: SCE All-Source Generation Solicitation
Leading SCE All-Source Contracts New Solicited Summer NRG Fast Blythe Standard On-line Notification In CPUC November December Track Value all-source Generation received has Energy by the 2007 Track up totaling provided 23, August Driver RFO Way to of2007 Track 2007 aand 1,500 successful RFO 10-year
Slide 14: SCE Proposed Capital Investment Plan
Leading SCE Proposed $2.7 2007 Forecast Edison Generation Transmission Distribution Current $ CPUC FERC Total1 Five-year 1 expected evaluating November % $2.3 Subject Growth 2008 Rate 17.6 Rate Project SmartConnectTM Forecast the by to Five-Year to spending its 23, 2009 2.7 100 occur Cases Classific
Slide 15: SCE Forecast Rate Base Growth
Leading SCE Forecast 12+% 2006 Approved Rate 1 and of November Includes the regulatory base Growth 2007 DPV2 Compound the SCE growth Future impact 2007 23, 2008 Way project. Driver Rate 2007 approvals; and 2009 in Regulatory provides Annual ofBase Electricity 14 –includes 2006 The Investment 2010 ED
Slide 16: New Transmission Projects
Leading New NEVADA Las Midway (PG&E) Palmdale Antelope Territory Windhub Vincent Mira Serrano Los Ana Santa Valley San Project Renewables Tehachapi Rancho Reliability Other Total DPV2 Economics GRAND Existing SCE 1 Vegas Angeles Diego Palo Value leadership transmission Devers Renewables Reliability
Slide 17: SCE Five Peaker Units
Leading SCE Five Initiated Capital Four Oxnard San 2,150 November Onofre “Black Value ofMW investment five peaker the in 23, August total Driver Nuclear Way units Start” 2007 permit (SCE in placed –Peakers 2006 forecast Electricity Capital 16 Generation share denied EDISON at on-line the at Investme
Slide 18: SmartConnect Current Design Schedule
Leading 2005 Current Design Schedule1 Pre-deployment, Schedule Phase be Edison Vendor eMeter serve Cellnet, SCE 1 included Value leadership 2006 as III NovemberSmartConnectTM to Phase Candidates Subject Pre-Deployment Itron the application provide Phase 2007 Driver in system Way 23,Meter Deployment
Slide 19: Continued Energy Efficiency Leadership
Leading Continue where During More Reduction SCE Our periods SCE, Increase Reduce Create Recent On 1 September Goal Past Current Value has along than Novemberenergy aDevelopments the Represents carbon the national total been consistently Accomplishments toin 4B past Driver with strengthen Way Achiev
Slide 20: SCE Energy Efficiency Program Incentives
Leading SCE Under The the 3.1 More Incentives fall Both If November SCE three-year billion below CPUC Energy incentives than the achieves the final 65 are kilowatt-hours $2 23, set Way Efficiency percent billion period: provided 2007 adecision, and its cumulative in energy Electricity penalties 19 i
Slide 21: Constructive Rate Case Environment
Leading Constructive Rate General 2006 SCE Requests Target Investors’ 11.6% 11.4% CPUC Procurement Energy Customer Increases (i.e. California’s November GRC) Base filed GRC final return ROCE adopted Efficiency Resources Rate the ain Rates its Return expected 23, utility Decision decision regulatory
Slide 22: Edison Mission Group: Competitive Power Generation
Leading Edison A November Competitive Mission the23, Way2007 Power Group in Electricity 21Generation (EMG) EDISON SM INTERNATIONAL® Company
Slide 23: EMG Operating Platform and Growth Pipeline
Leading EMG Washington California Nebraska Wyoming Utah Oklahoma Nevada Texas Iowa Minnesota Illinois Pennsylvania Wisconsin Maine New Maryland West Operating Coal Natural Other 9,500 Wind MW 1 Data 2 Natural % Under York as Mexico 5,613 1,884 40 7,537 Virginia 90 161 (UC) 145 75 (Pipeline) 471 Deve
Slide 24: EMG Key Value Drivers
Leading Low-cost Strong Effective More Experienced/value-adding Long-term Financial EMG Recent Expansion Larger Greater Bias Focus 1 2 Seetowards efficient Edison –areas adjusted liquidity2 Novemberscale operational financing See Key diversification the management flexibility coal and environmental
Slide 25: Midwest Generation Operating Performance
Leading Midwest Generation YTD Operating Total Equivalent Capacity Load Forced All-in /MWh $40 $0 $40.29 $13.88 3Q Average Note: 1 2 $54.17 07YTD Generation Factor 07 YTD Average average 3Q November$$14.12 $39.90 Outage Includes the vs. realized $20 Generation and Factor 06 Statistics $53.30 Availab
Slide 26: Homer City Operating Performance
Leading Homer YTD Generation 2006 Operating Total Equivalent Capacity Load Forced All-in $53.60 $31.12 $22.48 $/MWh 3Q Average Note: 1 2 07Availability Generation Factor 07 YTD average 3Q November$56.48 $34.48 $22.92 City Outage Includes $60 the vs. realized Factor 06 Statistics Availability up thro
Slide 27: EMG Hedge Status
Leading EMG Status Energy Megawatt Load Estimated Homer Total Average Coal 1 the affect 2 Midwest per November The time MWh under estimated Requirement Hedge retail amount average atCity Only of the Price price September Generation represents hours GWh 23, day contract loads Way Program Contracts of
Slide 28: EMG Capacity Sales Status
Leading EMG Status Megawatts INSTALLED Less: NET Fixed RPM Non-unit Net Price Variable Third Capacity Expected TOTAL AVERAGE 1 2 3 Capacity 2007. CAPACITY per Auction Net Party Capacity Price atHomer Actual November Load CAPACITY the Capacity September — MW-day Specific price capacity except Transac
Slide 29: EMG Optimize Trading and Marketing
Leading EMG Optimize Extending Reducing RPM June Clearing Homer Sold Leverage Trading Controls Allowed VaR, EMMT ($ 200 2004 $130 Edison $23 Note: November MM 150 1, net volumetric, 2005 $103 Auctions YTD – City Mission 2009 pre-tax) Trading Operational, provides primarily 100 the 4,614 price produc
Slide 30: EMG Favorable Debt Refinancing
Leading EMG $ Favorable Enhanced Moves Simplifies Facilitates Expands Tender 2007 1 2.7 Edison billion Growth Novemberrefinancing premium See the liquidity financial market longer-term capital Year-to-Date Way EMG Mission 23, Driver and 2007in conditions structure refinancing risk flexibility Electr
Slide 31: Comprehensive Illinois Emission Agreement
Leading EMG Comprehensive Achieves Mercury NOx SO2 (78% Helps Illinois Emission Agreement Provides November ––reduction) –continue emissions emissions EPA Midwest the –reasonable specified credit 90% 23, supported filed Way assistance 2007 good selling removal agreement under Gen of in ofemission 0.
Slide 32: MWG Environmental Compliance Plan
Leading MWG Installation Flue •Estimated Waukegan Will Homer PA for EMG Note: November Phase Shutdown State 2015 County Gas Cost –Compliance environmental City 321Environmental the Implementation phase Desulfurization –cost 623, estimates Reduction of of Way Compliance 1(100 Activated primarily & 20
Slide 33: EMG Strategic Wind Development
Leading EMG Strategic Contributes Objective Leverages Growing Production Accelerated Mainly Wind Projects1 In-Service Under Total Development Purchased Turbines Pipeline 2007—2010 1 2 Projects Energy energy Project –Construction Novemberlong-term Data Wind the of importance RPS No. issuccessful and
Slide 34: EMG Natural Gas and Other Growth Opportunities
Leading EMG Natural Thermal Walnut Will Some Assets Advanced Carson Joint petroleum oil Confirming Other November recovery be Venture –opportunities regions complement Hydrogen Creek selective Thermal Gas-Fired the development Fossil-Fuel coke 23, project Way (EOR) with showing and 2007 fuel Growth
Slide 35: Appendix
Leading the23, November Appendix Way2007 in Electricity 34 EDISON SM INTERNATIONAL®
Slide 36: What's Updated Since Last Update
Leading What’s Updated EMG SCE November Regulatory Operating New the Information SCE regulatory 23, Way Since Growth 2007 Statistics Update inOur discussion Electricity 35Driver, EDISON Last reflecting (see Update Rate (see page SM INTERNATIONAL® SCE Base page 41- 2009 also and 20) included Capital
Slide 37: Third Quarter Reconciliation
Leading Third Reconciliation Total Core Midwest Homer No Income Corporate Primarily Edison Lower Non-Core SCE EMG 1 ended November See change $Earnings Benefit EPS1 Non-Core use Quarter (0.01) Discontinued September –0.80 results City Capital from the $Generation of due from higher Variances Expense
Slide 38: Year-to-Date Reconciliation
Leading Year-to-Date Reconciliation EIX Total Core Midwest Mainly Homer Primarily partially Income Edison Gains Corporate 0.04 Higher Non-Core SCE issue EMG and Note: 1 September November See(Holding YTD $Earnings EPS1 involving $0.01) Non-Core YTD use 1.41 (0.45) on 1.70 0.10 City income developmen
Slide 39: EMG 2005-2007E EBITDA Reconciliation
Leading EMG—2005-2007E Reconciliation Net Add Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted 1 2 Income back on November Note: from Represents (loss) expense income taxes lease, early sale the items: 1,085 EBITDA (Deduct): tax of effect
Slide 40: EMG Available Liquidity Profile
Leading EMG Available Sources EME Total $1.1 1 November Excludes billion $3,149 Revolver – Liquidity ($ the Liquidity 23, Millions) $73 of Way $2,522 credit 2007 $million 473 in Profile Electricity 39 facilities 12/31/06 $ EDISON 508 and $109 MWGbetween 9/30/07 SMINTERNATIONAL® million Revolver MWG
Slide 41: EMG Planned Capital Expenditures
Leading EMG Planned October Plant/Corporate 900 2007 Balance Potential Midwest Evaluating Additional Total 1 installed these agreements pipeline November EME450 2008 $1,904 projects – expects Capital of 2007 currently Expenditures1 0the capacity Generation Expenditures 23, 2009 wind growth plant FGD
Slide 42: EMG 3Q Comparative Operating Information
Leading EMG 3Q Midwest Total Energy Load Homer Generation Equivalent Performance Forced Pricing Average Flat (PJM Note: November 07 Energy 8,413 Requirement West YTD Comparative 3Q City Outage Only Information the Realized Cost Generation 06 23, Availability Hub—HC (in through 8,429 Price—Nihub Pric
Slide 43: SCE Regulatory Case Update
Leading SCE Case Edison Final GRC Cost Tehachapi DPV FERC substation, November –of Number 2A. Phase Transmission Regulatory –SmartConnectTM Capital 07-11-011 the Transmission Transmission 23, and III WayDate 2007 decision aA.FERC in07-05-003 Update November of Electricity 42 Incentives Filing ACC: E
Slide 44: Use of Non-GAAP Financial Measures
Leading Use Edison and accurately EPS share. securities principal operating A referenced November reconciliation Exchange EPS of byNon-GAAP International’s principal the by operating subsidiary (vested compare in 23, principal Way the Commission. 2007 of presentation. operating in stock Non-GAAP sub
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