Edison International · NYSE:EIX
Edison International — Non-Deal Roadshow (August 2006)
34 slides from Edison International's roadshow presentation, Aug 9, 2006
Slide 1: Business Update August 2006
Exhibit 99.1 Business2006 August Update
Slide 2: Forward-Looking Statements
Forward-Looking This International’s events “estimates,” plans, anticipated. include and output; access; facilities •subsidiaries Additional Commission. Readers notice. 1 decisions market access governmental, risks effects supply transmission the general weather changes environmental presentation av
Slide 3: Edison International Integrated Growth Platform
Edison Integrated EIX SCE Strong renewables generation transmission Value EMG margins emissions, •long-term 1. 2. 2 Additional Tight Thermal, $11 63%—Expand 23%—New 14%—San Strengthened 3-year Cost Procurement Financial Rate Low-cost EBITDA Strong Match Effective Debt New Hedging Diversify Focus Ren
Slide 4: Southern California Edison (SCE)
ExecutionCalifornia Growth System Southern Earnings Dependable Framework 3 Investment Capital RegulatoryEdison (SCE)
Slide 5: SCE Growth in Customers and Peak Demand
Execution Investment Capital Growth System Strong Earnings Dependable Framework expand SCE 88,321 63,463 73,204 77,437 90,000 80,000 70,000 60,000 50,000 New Peak 17,890 26,000 22,000 18,000 14,000 10,000 20,136 21,934 2001 SCE’s the nation years – •22,889 1. 2. 3. 4 New Peak 4.4% 10.2% 54Moreno Exp
Slide 6: SCE Renewable Power Contracts
SCE Growth System Investment Capital In Earnings Dependable Framework and Renewable ??In customers electricity than ??SCE power renewable New Soliciting •as 5 10-, 10-year Initial CPUC July 2009 long-term 2005, any Value Generation 15-, itestimates 2006, responses Execution has delivers U.S. contrac
Slide 7: SCE Five-Year Capital Investment Forecast
SCE 2.3 2.1 2006 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Current $ Generation Transmission Distribution CPUC FERC Project Total In Growth System Investment Capital Five-year Earnings Dependable •Framework 6 Five-year 2006 50% Billions %addition 2.3 2.0 Value 2007 11.0 of Rate CPUC Rate 2.3 Specific Forecast Exe
Slide 8: SCE GRC Capital Plan and Rate Base Growth
•SCE 1. (2009-2010) 11.7 12.6 15.8 2005 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2006 GRC 2003 CPUC $ Growth System Investment Capital 7 Earnings Dependable Framework Capital 2009-2010 Plan Billions Includes 10.9 Value 2006 GRC to Approved Rate Execution file investment 10.2 Rate 2007 1Driver im
Slide 9: SCE Transmission Projects
SCE 8 and $829 $2,496 $ 2008/2009 (Millions) 2006-2010 2009 In Substation Date Las Existing Future Los CALIFORNIA (PG&E) Midway San ARIZONA Vincent Verde Palo Mohave Lugo Sylmar Phoenix Territory Service SCE Ana Santa Palmdale Antelope Tehachapi Pardee Eldorado NEVADA Serrano Growth System Investmen
Slide 10: SCE Generation Investments: Mountainview and SONGS SGR
SCE 9 San •2005 2011 1. Growth System Investment Capital Earnings Dependable Framework Mountainview CPUC 969 Began 2,150 Unit $0.6 Pending Onofre Value and MW billion billion—SGR 2MW Execution SGR commercial approved January in regulatory Driver Nuclear total the investment in service placed heart (
Slide 11: SCE Cost Recovery and Return on Equity
SCE 10 California’s to Decision equity forego proceeding current on Investors’ provides looking based been 2008 operating providing of growing Rate Account Trigger timely costs •exposure increased requirement mitigating natural forecast Procurement Growth System Investment Capital Earnings Dependabl
Slide 12: SCE Earnings Guidance
1100 570 586 658 613 1 0 2004 700 600 500 400 300 200 $ Oct SCE 1. 2. Growth System Investment Capital Earnings Dependable Framework Millions See Earnings 2004 570 595 Value provides 2005 appendix Execution Strategic –2006 Driver guidance Core EIX for 2007 Earnings1 –Regulatory high Plan non-GAAP De
Slide 13: Edison Mission Group (EMG)
Edison Mission 12 Trading Operational/Marketing/ Opportunities Growth Position Cash Coal Low-Cost Capabilities Group (EMG)
Slide 14: EMG Generation Portfolio
EMG 13 161 Wildorado Homer 1,884 Midwest 5,613 305 March 70 Big Sunrise 964 San 90 Mesa Storm 109 Misc. 67 40 Ambit Strong Trading Operational/Marketing/ 7,537 MW Opportunities Growth Position Cash Coal Low-Cost 1,483 427 9 9,456 1. 2. Biomass Includes MW 4, Juan 2MW–Total Wind MW 1Coal Lake Point o
Slide 15: EMG Cash Position and Growth Opportunities
14Expansion to •requirements – EMG 1. Trading Operational/Marketing/ 2. Opportunities Growth Position Cash Coal Low-Cost Low-cost Strong Balance Thermal/IGCC $1.18 Effective Match Illinois $1 Repay Investment Expanded Contracted Nationwide See Cash protect billion –appendix Value billion and Capabil
Slide 16: EMG Wind Portfolio and Development Pipeline
EMG 15 by – to •creditworthy credits National Commitments Turbine Pipeline Expertise Development Requirements RPS 1. Portfolio 2. 130 668 538 427 161 266 Size Wind Accelerated Future EME Projects 181 700+ Late-stage Development support exclusive Total Optioned Purchased 9110 (MW) Project –In-service
Slide 17: EMG Natural Gas and IGCC Projects
EMG 16 Natural IGCC Projects Recontracting Generation Fired CPUC (Sycamore); Sunset) Commission MW) – •and Big New EMG/BP Petroleum Submitted Kern 2Other Intend Conducting project used 4–natural in River—5-year projects California Gas- Big to for May permit hydrogen bid coke DOE 4April enhanced (Sun
Slide 18: Year to Date Performance through June 30, 2006
Year to Date 17 through Balance Strength Returns June Sheet Performance Performance 30, 2006 Growth Dividends Shareholder
Slide 19: Consolidated Year-to-Date Core Earnings
18 Consolidated Year-to-Date Core 2006 (Unaudited) Southern Mission Edison EIX Non-core SCE MEHC Total(parent) –Earnings 2005 non-core EIX Generator Resolution International—Earnings Capital Mission –Energy California Extinguishment Earnings items Consolidated Change and June (Loss) items 0.06 Group
Slide 20: EMG Midwest Generation Update
Three 19 Generation Equivalent Forced Flat HC Remainder 2006 Midwest Homer Megawatt Average Percent (1) Hedge Note: the Busbar Energy Edison2005 2007 months Outage City Represents of Midwest Cost Homer Energy Generation Midwest hours Coal Change 2008 Availability of (in ($/MWHr)—Basis Price—Nihub Pr
Slide 21: Guidance as of June 29th, 2006
as of June Guidance 20 Balance Strength Returns Sheet Performance 29th, 2006 Growth Dividends Shareholder
Slide 22: Edison International 2006 Guidance
Edison 21 (Effective 2006 Guidance $1.44 Non-Core – $3.35 (0.11) 0.13 1.31 $2.02 2005 Recorded SCE 2006-2007 continuation EMG unhedged assumption: •2007 Other options and 1. 2. 3. retirement—($0.27); 4. See Earnings SCE EMG DSM 2006 Fuel Power 5/31/2006 EMMT EC Impact 0.25 (0.03) Reflects SCE: EMG:
Slide 23: EMG 2006-2007 Guidance Assumptions
22As Sales 10% (pre-tax 1. 2. 3. 4. See ($ EMG (Effective Coal 20061 Midwest PRB Homer Expected Contracted NAPP ($/MWh Fuel Emission NOx SO2 Earnings Full-year Coal Fuel million) Assumptions Cost, Costs, (Aggregate Price Transp. Commodity Forward (Aggregate of Basis –2007 Forward City costs, contrac
Slide 24: EMG Hedge Position and Sensitivities
Remainder 2007 $44.92 $48.25 56% 16.2 28.8 $63.22 $64.35 54% 7.6 14.0 23 20061 $58.64 $54.46 58% 5.2 8.8 PJM $44.47 $47.68 63% 11.6 18.2 Basis Expected Volume Percent Average NiHub Midwest Homer 1. 2. weather, 3. 4. 5. price Historic Averaged 8.4 2006 $1/MWh Increases $ 6.7 3.7 Sensitivities Coal Sa
Slide 25: EMG 2008 Hedge Position
Midwest 24 NiHub Homer Forecast Hedged Average Contracted PJM Initiated contracts credits commodity 2. 3. See 4. Coal Sales EMG (Effective 1. weather, As Reflects Expected footnotes West Transp. of Basis –position Flat City 2008 generation June May hedge 2008 demand generation Gen are as Hub on-peak
Slide 26: Edison International Investment Summary
Edison 25 operating and service with low-cost Organic earnings growth investments •future from generation Produces Balance Strength Returns Strong Competitive Significant Business Upside rapidly large competitive growth International territory from Growth Sheet utility and Performance earnings coal
Slide 27: Appendix
Appendix BXJERISON. 2
Slide 28: Organizational Structure and Credit Statistics
27As Customers Generation Southern Operating Coal Total Mission Holding B+ 1. 2. corporate 3. 4. of Credit Edison Represents Includes $54 / B1 Generation Assets Investments MWs Debt ofRating million Capital International Mission June (EME) Energy Company California credit Statistics: 44.8 161 short-
Slide 29: Non-GAAP Reconciliation of Guidance
Appendix 28 (Guidance 1.44 $3.35 2005 $1.82 1.13 0.29 3.13 0.40 (0.10) (0.05) 0.09 0.34 $3.47 — Non-core 3.35 (0.11) 0.13 1.31 $2.02 2007 Core Year 1. Earnings Primarily 0.22 0.24 (0.27) — 0.25 1.14 2.91 0.14 1.00 Ending Earnings 2006 $3.13 MEHC $1.88 (0.11) Total MEHC SCE guidance MEHC 1.42 EIX Edi
Slide 30: SCE Non-GAAP Reconciliation
2004 29 millions, $ SCE Non-Core SCE—Regulatory Total Year 1. Earnings Appendix (Guidance EPS October Core Ending 2005 SCE $ EPS except guidance –Items: Earnings effective 2004 2006 Non-GAAP December $ EPS EPS Strategic 2007 and will $570 as $$727 guidance EPS tax of not 31, Reconciliation June $1.7
Slide 31: Edison Mission Group EBITDA Reconciliation
Appendix 30 (Guidance Edison ($ 2005 Actual Net Add-back Cumulative Discontinued Interest Income Depreciation EBITDA Production Discrete Impairment Gain Loss Adjusted Earnings millions) income on 2006 Outlook Mission (Loss) expense income taxes lease early sale items: guidance 1,085.2 EBITDA (Deduct
Slide 32: Fuel Cost and Price Sensitivities
31Average to build agreements. at purchased raw sourced Percentages sensitivity emissions. related 10% change •energy sulfur Assumption impact. (Guidance Actual The NAPP, Fuel NAPP Energy Coal Homer a number coal change or earnings content Costs, Contracts price price. to may within Coal reduction,
Slide 33: EMG Capital Expenditures
EMG 32 2Q 5 0 2006 500 450 400 350 300 250 200 150 100 Plant •$826 Potential $ 0Thermal Wind Evaluating Environmental Millions 2006 BoY Million Capex – investments Capital to Expenditures investments 2007 4Q Environmental FGDs 2008 Expenditures 2008 expenditures at Homer 2009 Planned Growth City atE
Slide 34: EMG Cash and Liquidity
EMG 33 2 0 1,200 1,000 800 600 400 $ Cash 12/31/05 $98 325 1,869 $2,292 6/30/06 $500 295 1,953 $2,748 MWG investments¹ EME ($ Available Sources Credit 1. Collateral 2. 3. $343 $310 MEHC replace •6-year between 00 Cash Strong Enhanced millions Excludes Includes During millions) & Revolver –Facilities
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