Edison International · NYSE:EIX
Edison International — Investor Presentation (October 2024)
58 slides from Edison International's investor presentation, Oct 30, 2024
Slide 1: October 29, 2024 Business Update
OCTOBER 29, 2024 BUSINESS UPDATE
Slide 2: Forward-looking statements
Edison International | October 2024 Business Update 1 Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical,
Slide 3: Edison International leads the transformation of the electric power industry
Edison International | October 2024 Business Update 2 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison International leads the transformation of the electric power industry One of the nation’s largest electric-only utilities, with over 5 milli
Slide 4: Thesis: Wires-focused utility with rate base growth aligned with clean energy goals
Edison International | October 2024 Business Update 3 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Thesis: Wires-focused utility with rate base growth aligned with state’s aggressive clean energy goals Constructive California and Federal regulato
Slide 5: EIX well positioned for a decarbonized future
Edison International | October 2024 Business Update 4 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX well positioned for a decarbonized future; no coal or gas LDC exposure and high electric sales growth potential UTY1 EEI Index2 Electric-Only U
Slide 6: Sustainability at the core of Edison's vision
Edison International | October 2024 Business Update 5 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Sustainability at the core of Edison’s vision to lead the transformation of the electric power industry 2045 goals: net-zero GHG emissions across S
Slide 7: California's regulatory mechanisms provide revenue certainty
Edison International | October 2024 Business Update 6 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix California’s regulatory mechanisms provide revenue certainty Revenue Decoupling means earnings aren’t affected by changes in electricity sales Long
Slide 8: Clean Energy Transition Leadership
CLEAN ENERGY TRANSITION LEADERSHIP
Slide 9: Reaching California's 2045 GHG goals requires near-complete transformation of energy use
Edison International | October 2024 Business Update 8 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Reaching California’s 2045 GHG goals requires a near-complete transformation of energy use economy wide 100% of grid sales with carbon-free electri
Slide 10: Neutralize remaining emissions: EIX steps to reach net zero
Edison International | October 2024 Business Update 9 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Neutralize remaining emissions: Mostly from natural gas generation supporting reliability and affordability EIX is directly contributing to Califor
Slide 11: Load growth of 80% by 2045 requires acceleration in grid expansion
Edison International | October 2024 Business Update 10 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Load growth of 80% by 2045 requires a significant acceleration in grid expansion Source: SCE’s Countdown to 2045 analysis. See Countdown to 2045 A
Slide 12: Electricity demand projected to rise over 80% by 2045
Edison International | October 2024 Business Update 11 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2023 2045 By 2045, electricity demand is projected to rise by over 80% from today, primarily due to electrification Households will benefit from t
Slide 13: Energy share of wallet in SCE's service area compares favorably
Edison International | October 2024 Business Update 12 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 0% 2% 4% 6% 8% 10% 12% 14% Mississippi Alabama West Virginia Montana South Dakota Arkansas Kentucky South Carolina Oklahoma Wyoming Maine Louisian
Slide 14: 2019–2023 rate increases largely driven by external events
Edison International | October 2024 Business Update 13 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2019–2023 rate increases largely driven by external events % of Total Increase 2019–2024: SCE’s rate trend outpaced inflation (~12% vs. ~4%) 5 10
Slide 15: SCE rate increases through 2028 expected to be near inflation
Edison International | October 2024 Business Update 14 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 33.7 33.1 26.7 27.5 27.5 28.3 29.6 PG&E SDG&E SCE 2025 2026 2027 2028 SCE rate increases through 2028 now expected to be near inflation, providing
Slide 16: Composition of an Average SCE Residential Bill
Edison International | October 2024 Business Update 15 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Composition of an Average SCE Residential Bill 6% Transmission Investment in operations and maintenance for high-voltage transmission lines 26% Di
Slide 17: Customer demand is accelerating
Edison International | October 2024 Business Update 16 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Customer demand is accelerating — 10-year load growth forecast has increased significantly over last two years 2022 Distribution System Plan 2024
Slide 18: Edison has one of the strongest electrification profiles in the industry
Edison International | October 2024 Business Update 17 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison International has one of the strongest electrification profiles in the industry 1. Inflation Reduction Act of 2022 State plans for ~$525 mi
Slide 19: SCE leads largest utility transportation electrification programs
Edison International | October 2024 Business Update 18 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $872 $798 $527 $414 $309 $293 EIX Utility A Utility B Utility C Utility D Utility E SCE leads the largest utility transportation electrification i
Slide 20: SCE's future load growth is highly levered to EV adoption
Edison International | October 2024 Business Update 19 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix - 10,000 20,000 30,000 40,000 50,000 60,000 2023 2028 2033 2038 2043 SCE’s future load growth is highly levered to EV adoption, a critical compone
Slide 21: SCE Wildfire Mitigation: Approach, Progress, and Results
SCE WILDFIRE MITIGATION: APPROACH, PROGRESS, AND RESULTS
Slide 22: Proof points and results from wildfire mitigation efforts
Edison International | October 2024 Business Update 21 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is seeing numerous proof points and results from its differentiated and substantial wildfire mitigation efforts 1. Since 2018 and as of Septem
Slide 23: California has the strongest wildfire risk reduction profile in the nation
Edison International | October 2024 Business Update 22 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix California has the strongest wildfire risk reduction profile in the nation Suppression CAL FIRE Budget: Doubled since 2017-18 CAL FIRE Staffing: 8
Slide 24: AB 1054 provides regulatory construct for wildfire liability and cost recovery
Edison International | October 2024 Business Update 23 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix AB 10541 provides a strong regulatory construct for determining wildfire liability and cost recovery Established safety certification process and
Slide 25: California continues to increase investments in wildfire suppression and prevention
Edison International | October 2024 Business Update 24 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $2.0 $2.5 $2.9 $2.5 $2.6 $3.7 $4.1 $4.2 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 California has continued to increase inves
Slide 26: Covered conductor reduces wildfire risk cost-effectively
Edison International | October 2024 Business Update 25 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Covered conductor is a very valuable tool to expeditiously and cost-effectively reduce wildfire risk specific to SCE ~2.9 ~4.5+ ~0.7 Under-ground
Slide 27: SCE reaches another milestone in hardening lines in high fire risk area
Edison International | October 2024 Business Update 26 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE reaches another milestone in hardening distribution lines in high fire risk area (HFRA): 85% of planned hardening complete Completed Hardening
Slide 28: SCE's hardened miles exceed all other California IOUs combined
Edison International | October 2024 Business Update 27 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s total hardened miles in high fire risk area exceed all other California IOUs combined1 - 5 10 15 20 25 30 IOU A IOU B IOU C IOU D IOU E 1. A
Slide 29: Wildfire mitigation has reduced damage when ignitions occur
Edison International | October 2024 Business Update 28 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s wildfire mitigation and improved state fire suppression have significantly reduced damage when ignitions occur1 SCE Ignitions in HFRA1 56 49
Slide 30: Mitigation and PSPS have reduced probability of catastrophic wildfire losses
Edison International | October 2024 Business Update 29 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE estimates its wildfire mitigation and PSPS have significantly reduced probability of losses from catastrophic wildfires1,2 1. Baseline risk es
Slide 31: SCE has reduced use of PSPS through physical mitigation
Edison International | October 2024 Business Update 30 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE has reduced use of PSPS for lowering wildfire risk through use of covered conductor and other physical mitigation 1. Baseline risk estimated b
Slide 32: Financial Information
FINANCIAL INFORMATION EDISON INTERNATIONAL®
Slide 33: Capital deployment expected to increase in 2025–2028
Edison International | October 2024 Business Update 32 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 5.2 5.6 6.7 7.2 7.2 7.0 0.2 0.4 0.8 0.9 1.0 0.7 $5.4 $6.0 $7.5 $8.1 $8.2 $7.7 2023 2024 2025 2026 2027 2028 Capital deployment expected to increas
Slide 34: Over 85% of capital investments are in the distribution grid
Edison International | October 2024 Business Update 33 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Over 85% of SCE’s capital investments are in its distribution grid and essential to reliability, resiliency, and readiness objectives Distribution
Slide 35: Projected ~6–8% rate base growth 2023–2028
Edison International | October 2024 Business Update 34 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 33.6 35.9 41.8 45.3 48.7 51.8 7.6 7.5 7.6 7.7 8.1 8.8 $41.2 $43.4 $49.4 $53.0 $56.8 $60.6 2023 2024 2025 2026 2027 2028 Projected ~6–8% rate base
Slide 36: 2025 GRC record complete, awaiting proposed decision
Edison International | October 2024 Business Update 35 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2025 GRC record complete — now awaiting proposed decision 1. Does not reflect updates to 2025 cost of capital 2. Refers to stipulated agreements e
Slide 37: Resolution of legacy wildfires: TKM settled and Woolsey application filed
Edison International | October 2024 Business Update 36 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Resolution of legacy wildfires entering final stages: TKM settled and Woolsey application filed TKM (A.23-08-013) Woolsey (A.24-10-002) Value ~$1.
Slide 38: Key Takeaways of TKM Settlement Agreement
Edison International | October 2024 Business Update 37 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Key Takeaways of TKM Settlement Agreement Authorized Amounts 60% of claims, financing, and legal costs (~$1.6 billion WEMA recovery) 85% of restor
Slide 39: Cost recovery for 2017/2018 events benefits financial strength
Edison International | October 2024 Business Update 38 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Cost recovery for 2017/2018 events benefits financial strength of the utility and reduces costs for customers Modeling sensitivities: For each $1
Slide 40: EIX narrows 2024 Core EPS guidance to $4.80–5.00
Edison International | October 2024 Business Update 39 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX narrows 2024 Core EPS guidance to $4.80–5.00 1. SCE is unable to conclude, at this time, that these amounts are probable of recovery; however,
Slide 41: EIX's 2024 financing plan completed
Edison International | October 2024 Business Update 40 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix ✓ EIX’s 2024 financing plan completed 1. Financing plans are subject to change EIX 2024 Financing Plan1 Equity needs fully addressed: $100 million
Slide 42: Memo account recovery and securitization strengthen balance sheet
Edison International | October 2024 Business Update 41 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix ~$4.5 billion memo account recovery 2021–Q3 20241 ~$1.6 billion securitizations of AB 1054 capex completed ~$3.2 billion remaining recoveries thro
Slide 43: EIX and SCE committed to investment grade credit ratings
Edison International | October 2024 Business Update 42 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX and SCE are committed to investment grade credit ratings 1. Excludes amortization of securitized bonds related to SCE’s AB 1054 Excluded Capit
Slide 44: EIX & SCE do not have variable-rate long-term debt exposure
Edison International | October 2024 Business Update 43 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX & SCE do not have variable-rate long-term debt exposure Approximately $13 billion of the total ~$34 billion long-term debt portfolio matures t
Slide 45: Track record of delivering on Core EPS guidance
Edison International | October 2024 Business Update 44 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX has a solid track record of delivering on Core EPS guidance over the last two decades 2023 2022 2021 2020 2019 In-line In-line Exceeded In-lin
Slide 46: EIX has consecutive years of dividend growth
Edison International | October 2024 Business Update 45 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX has 20 consecutive years of dividend growth1 $0.80 $3.12 2004 2024 7% CAGR Dividends per Share 1. 2024 dividend annualized based on dividend d
Slide 47: EIX expects 5–7% Core EPS growth for 2025–2028
Edison International | October 2024 Business Update 46 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX expects 5–7% Core EPS growth for 2025–2028, with financing plan showing minimal equity needs 1. For 2025, represents the midpoint of the 2025
Slide 48: EIX offers double-digit total return potential
Edison International | October 2024 Business Update 47 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX offers double-digit total return potential 1. Compound annual growth rate (CAGR) based on the midpoint of the 2021 Core EPS guidance range of
Slide 49: Appendix
APPENDIX DISO INTERNATIONAL®
Slide 50: Trio (Edison Energy) partners with large organizations on energy transition
Edison International | October 2024 Business Update 49 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Partners with large commercial, industrial, and institutional organizations to navigate the energy transition by providing integrated energy manag
Slide 51: SCE continues to fund wildfire claims payments with debt
Edison International | October 2024 Business Update 50 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE continues to fund wildfire claims payments with debt Series Principal Due Rate 2022C 300 6/1/25 4.200% 2020C 350 2/1/26 1.200% 2024C 600 3/1/2
Slide 52: TKM Settlement Agreement: Authorized Cost Recovery and Disallowances
Edison International | October 2024 Business Update 51 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix TKM Settlement Agreement: Authorized Cost Recovery and Permanent Disallowances Final Settlement (in millions)1 SCE Application Authorized Permanen
Slide 53: EIX reaffirms 5–7% 2021–2025 Core EPS growth target
Edison International | October 2024 Business Update 52 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 5–7% 2021–2025 Core EPS growth rate target, which would result in 2025 Core EPS of $5.50–5.901 1. Based on the midpoint of initial 2
Slide 54: Key 2028 Earnings Sensitivities
Edison International | October 2024 Business Update 53 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Key 2028 Earnings Sensitivities Variable Sensitivity 2028 EPS1 (“Per year” amounts refer to 2025–2028) Capex & Rate Base Rate Base $100 million/ye
Slide 55: SCE Key Regulatory Proceedings
Edison International | October 2024 Business Update 54 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE Key Regulatory Proceedings Proceeding Description Next Steps Base Rates 2025 GRC (A.23-05-010) Sets CPUC base revenue requirement for 2025–202
Slide 56: Woolsey Cost Recovery Proposed Schedule
Edison International | October 2024 Business Update 55 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Woolsey Cost Recovery Proposed Schedule Event SCE Proposed Date ✓ Application Filed October 8, 2024 Protests and responses November 12, 2024 SCE’s
Slide 57: Earnings Per Share Non-GAAP Reconciliations
Edison International | October 2024 Business Update 56 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Low High Basic EIX EPS $3.37 $3.57 Total Non-Core Items1 (1.43) (1.43) Core EIX EPS $4.80 $5.00 1. Non-core items are presented as they are record
Slide 58: Use of Non-GAAP Financial Measures and IR Contact
Edison International | October 2024 Business Update 57 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Use of Non-GAAP Financial Measures EIX Investor Relations Contact Sam Ramraj, Vice President Derek Matsushima, Principal Manager (626) 302-2540 (6
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