Edison International · NYSE:EIX
Edison International — Bernstein's Strategic Decisions Conference 2015
14 slides from Edison International's conference presentation, May 26, 2015
Slide 1: Bernstein's Strategic Decisions Conference
May 27, 2015 Bernstein’s Strategic Decisions Conference Ted Craver, Chairman and Chief Executive Officer
Slide 2: Forward-Looking Statements
May 27, 2015 Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-looking
Slide 3: Our Business Platforms
May 27, 2015 Edison Energy Nationally-focused new businesses Commercial & industrial solar Competitive transmission Energy services Edison International Southern California Edison Regional wires-focused electric utility Serves nearly 14 million residents 50,000 square-mile service area Our Business
Slide 4: EIX is Ready for Industry Change
May 27, 2015 EIX is Ready for Industry Change • Public policy prioritizing environmental sustainability • Accelerating technology advancement facilitating conservation and self-generation • Increasing use of distributed resources and transportation electrification • Regulation supporting new forms o
Slide 5: EIX Strategy Should Produce Superior Value
May 27, 2015 EIX Strategy Should Produce Superior Value Sustainable Earnings and Dividend Growth Positioned for Transformative Change Rate Base and Core Earnings Growth: • 7 – 9% rate base growth through 2017 Constructive Regulatory Structure: • Decoupling • Balancing accounts • Forward-looking rate
Slide 6: SCE Historical Rate Base and Core Earnings
May 27, 2015 $15.0 $16.8 $18.8 $21.0 $21.1 [VALUE] 2009 2010 2011 2012 2013 2014 SCE Historical Rate Base and Core Earnings Rate Base Core Earnings 9% 12% 2009 – 2014 CAGR Core EPS $4.68 $2.68 $3.01 $3.33 $4.10 ($ billions) $3.88
Slide 7: SCE Rate Base Forecast
May 27, 2015 SCE Rate Base Forecast • Incorporates January 2015 GRC update • Excludes Coolwater-Lugo transmission project • Excludes SONGS regulatory asset • FERC rate base is approximately 23% of SCE’s rate base forecast by 2017 ($ billions) Request Range 23.1 25.0 26.9 $[VALUE] $[VALUE] $[VALUE] 2
Slide 8: EIX Annual Dividends Per Share
May 27, 2015 EIX Annual Dividends Per Share $0.80 $1.00 $1.08 $1.16 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $1.42 $1.67 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Eleven Years of Dividend Growth EIX targets a payout ratio of 45 – 55% of SCE core earnings and plans to return to target pa
Slide 9: SCE Capital Expenditures Forecast
May 27, 2015 SCE Capital Expenditures Forecast • Growth driven by infrastructure replacement, reliability investments, and public policy requirements ($ billions) 2015-17 Total Requested $4.1 $4.6 $4.4 $13.1 Range $3.6 $4.0 $3.9 $11.5 [VALUE] $4.6 $4.4 2015 2016 2017 Distribution Transmission Genera
Slide 10: Distribution Grid of the Future
May 27, 2015 Distribution Grid of the Future One-Way Electricity Flow • System designed to generate electricity from large central plant • Very few distributed energy resources • Voltage relatively simple to maintain • Limited situational awareness and visualization tools for grid operators Renewabl
Slide 11: New Technology Grid Impacts
May 27, 2015 New Technology Grid Impacts 2 1 3 1 1 1 2 2 Future state—from elctro-mechanical to digital More automated and digital, with more sophisticated voltage control and protection schemes Facilitates increasing distributed resources & two-way power flow Cyber mitigation must be included 1 2 3
Slide 12: The Future of California Energy Policy
May 27, 2015 The Future of California Energy Policy January 2015, Governor Brown’s inauguration speech outlined environmental objectives for 2030: • Increase renewables (RPS) to 50% • Reduce petroleum use in cars by 50% • Double efficiency of existing buildings Renewables Electric Vehicles Energy Ef
Slide 13: SCE Distribution Resources Plan
May 27, 2015 SCE Distribution Resources Plan AB 327 Requires Utility Submissions of Distribution Resources Plans in July, 2015 to Integrate Increasing Penetration of Distributed Energy Resources • Optimal locations for Distributed Energy Resources • Move utilities towards seamless integration of dis
Slide 14: Bernstein's Strategic Decisions Conference
May 27, 2015 Bernstein’s Strategic Decisions Conference
Edison International — Bernstein's Strategic Decisions Conference 2015 on 6ix