Edison International · NYSE:EIX
Edison International — Corporate Update (July 2024)
62 slides from Edison International's corporate update, Jul 26, 2024
Slide 1: July 25, 2024 Business Update
JULY 25, 2024 BUSINESS UPDATE
Slide 2: Forward-looking statements
Edison International | July 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, ar
Slide 3: Edison International leads the transformation of the electric power industry
Edison International | July 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, serving over 15 mill
Slide 4: Thesis: Wires-focused utility with rate base growth aligned with clean energy goals
Edison International | July 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 regulatory
Slide 5: EIX well positioned for a decarbonized future
Edison International | July 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 Util
Slide 6: Sustainability at the core of Edison's vision
Edison International | July 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 Scop
Slide 7: California's regulatory mechanisms provide revenue certainty
Edison International | July 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-st
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 | July 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 electricit
Slide 10: Load growth of 80% by 2045 requires acceleration in grid expansion
Edison International | July 2024 Business Update 9 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 Appen
Slide 11: Electricity demand projected to rise over 80% by 2045
Edison International | July 2024 Business Update 10 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 thes
Slide 12: Energy share of wallet in SCE's service area
Edison International | July 2024 Business Update 11 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 Louisiana M
Slide 13: SCE rate increases through 2028 expected near inflation
Edison International | July 2024 Business Update 12 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 33.7 33.1 26.7 29.6 PG&E SDG&E SCE 2025 2026 2027 2028 SCE rate increases through 2028 now expected to be near inflation, providing headroom for addi
Slide 14: SCE system average rate forecast
Edison International | July 2024 Business Update 13 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 26.7 27.5 27.5 28.3 29.6 Current 2025 2026 2027 2028 SCE’s system average rate growth aligns closely with local inflation of 2.3% as historical costs
Slide 15: Customer demand is accelerating
Edison International | July 2024 Business Update 14 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 Dis
Slide 16: One of the strongest electrification profiles in the industry
Edison International | July 2024 Business Update 15 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 milli
Slide 17: SCE leads largest utility transportation electrification programs
Edison International | July 2024 Business Update 16 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 init
Slide 18: Future load growth levered to EV adoption
Edison International | July 2024 Business Update 17 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 component
Slide 19: SCE is actively strengthening grid reliability
Edison International | July 2024 Business Update 18 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is actively strengthening grid reliability Energy Storage ~3 GW currently online Installed or procured ~8.1 GW of storage capacity 535 MW utility
Slide 20: SCE Wildfire Mitigation: Approach, Progress, and Results
SCE WILDFIRE MITIGATION: APPROACH, PROGRESS, AND RESULTS
Slide 21: Reducing wildfire risk in our communities
Edison International | July 2024 Business Update 20 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Reducing wildfire risk in our communities 20
Slide 22: Proof points and results from wildfire mitigation efforts
Edison International | July 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 June 30,
Slide 23: 2023–25 Wildfire Mitigation Plan builds upon accomplishments
Edison International | July 2024 Business Update 22 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s 2023–25 Wildfire Mitigation Plan (WMP) builds upon accomplishments Covered conductor & undergrounding Fire-resistant poles Protective devices &
Slide 24: California has the strongest wildfire risk reduction profile in the nation
Edison International | July 2024 Business Update 23 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: 80%
Slide 25: AB 1054 regulatory construct for wildfire liability and cost recovery
Edison International | July 2024 Business Update 24 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 add
Slide 26: California continues to increase wildfire suppression and prevention investment
Edison International | July 2024 Business Update 25 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 investme
Slide 27: Tools and technology monitor real-time conditions
Edison International | July 2024 Business Update 26 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s tools and technology allow it to monitor real-time conditions to help inform operational decision-making Plan to increase coverage to nearly al
Slide 28: Covered conductor reduces wildfire risk cost-effectively
Edison International | July 2024 Business Update 27 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 Cov
Slide 29: Milestone in hardening distribution lines in high fire risk area
Edison International | July 2024 Business Update 28 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE reaches another milestone in hardening distribution lines in high fire risk area (HFRA): 84% of planned hardening complete Completed Hardening (~
Slide 30: SCE's hardened miles exceed all other California IOUs combined
Edison International | July 2024 Business Update 29 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. As o
Slide 31: Wildfire mitigation and PSPS reduce probability of catastrophic losses
Edison International | July 2024 Business Update 30 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 estim
Slide 32: Reduced use of PSPS through covered conductor
Edison International | July 2024 Business Update 31 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 by R
Slide 33: Financial Information
FINANCIAL INFORMATION INTERNATIONAL®
Slide 34: Capital deployment expected to increase in 2025–2028
Edison International | July 2024 Business Update 33 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 increase i
Slide 35: Over 85% of capital investments are in the distribution grid
Edison International | July 2024 Business Update 34 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 No
Slide 36: Projected ~6–8% rate base growth 2023–2028
Edison International | July 2024 Business Update 35 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 gro
Slide 37: Approvals of standalone applications for ~$3 billion of capex
Edison International | July 2024 Business Update 36 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE has obtained approvals of standalone applications for ~$3 billion of capex over past two rate case cycles 2018 2019 2020 2021 2022 2023 $252 mill
Slide 38: 2025 GRC proceeding on track
Edison International | July 2024 Business Update 37 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2025 GRC proceeding on track. SCE has reached partial settlements1 with intervenors 1. Refers to stipulated agreements entered into the GRC’s procedu
Slide 39: 2024 focus for 2017/18 Wildfire/Mudslide Events
Edison International | July 2024 Business Update 38 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix ❑ Individual plaintiff claims resolved2 ~13,000 ❑ In Q2 2024, reached 90%+ completion (substantial resolution for filing) ❑ Schedule update issued in
Slide 40: Resolution of 2017/2018 Wildfire/Mudslide Events advances
Edison International | July 2024 Business Update 39 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Resolution of 2017/2018 Wildfire/Mudslide Events advances 2.4 0.5 6.3 0.6 9.9 Best Estimate of Total Losses 1. TKM: Collectively, the Thomas Fire, th
Slide 41: Cost recovery benefits financial strength and reduces customer costs
Edison International | July 2024 Business Update 40 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 bil
Slide 42: EIX reaffirms 2024 Core EPS guidance
Edison International | July 2024 Business Update 41 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 2024 Core EPS guidance of $4.75–5.05 1. SCE is unable to conclude, at this time, that these amounts are probable of recovery; however,
Slide 43: EIX's 2024 financing plan completed
Edison International | July 2024 Business Update 42 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 of
Slide 44: Business growth masked by interest expense on wildfire claims debt
Edison International | July 2024 Business Update 43 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Strong underlying business growth masked by growing interest expense on wildfire claims debt 1. Compound annual growth rate (CAGR) based on the midpo
Slide 45: Memo account recovery and securitization strengthen balance sheet
Edison International | July 2024 Business Update 44 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix ~$4.3 billion memo account recovery 2021–Q2 20241 ~$1.6 billion securitizations of AB 1054 capex completed ~$1.9 billion remaining recoveries through
Slide 46: Committed to investment grade credit ratings
Edison International | July 2024 Business Update 45 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 Capital
Slide 47: No variable-rate long-term debt exposure
Edison International | July 2024 Business Update 46 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 ~$33 billion long-term debt portfolio matures thro
Slide 48: Track record of delivering on Core EPS guidance
Edison International | July 2024 Business Update 47 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-line I
Slide 49: Consecutive years of dividend growth
Edison International | July 2024 Business Update 48 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX has 20 consecutive years of dividend growth1 1. 2024 dividend annualized based on dividend declaration on December 14, 2023 $0.80 $3.12 2004 2024
Slide 50: Operational excellence producing O&M savings
Edison International | July 2024 Business Update 49 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s operational excellence efforts are producing O&M savings for its customers Insurance: Wildfire Self-Insurance Program – Expanded use of custome
Slide 51: 5–7% Core EPS growth for 2025–2028
Edison International | July 2024 Business Update 50 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 Cor
Slide 52: EIX offers double-digit total return potential
Edison International | July 2024 Business Update 51 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 $4.
Slide 53: Appendix
APPENDIX EDISON INTERNATIONAL®
Slide 54: Trio partners with large organizations on energy transition
Edison International | July 2024 Business Update 53 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 manageme
Slide 55: SCE continues to fund wildfire claims payments with debt
Edison International | July 2024 Business Update 54 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE continues to fund wildfire claims payments with debt Series Principal Due Rate 2021K 450 8/1/24 0.975% 2022C 300 6/1/25 4.200% 2020C 350 2/1/26 1
Slide 56: EIX reaffirms 5–7% 2021–2025 Core EPS growth target
Edison International | July 2024 Business Update 55 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 2021
Slide 57: Key 2028 Earnings Sensitivities
Edison International | July 2024 Business Update 56 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/year
Slide 58: SCE Key Regulatory Proceedings
Edison International | July 2024 Business Update 57 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 2025–2028.
Slide 59: TKM Cost Recovery Schedule
Edison International | July 2024 Business Update 58 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix TKM Cost Recovery Schedule Event Scoping Ruling Date ✓ Application Filed Complete ✓ Protests and responses Complete ✓ SCE’s reply to protests Complet
Slide 60: Earnings Per Share Non-GAAP Reconciliations
Edison International | July 2024 Business Update 59 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Low High Basic EIX EPS $3.49 $3.79 Total Non-Core Items1 (1.26) (1.26) Core EIX EPS $4.75 $5.05 1. Non-core items are presented as they are recorded
Slide 61: EIX Core EPS Non-GAAP Reconciliations
Edison International | July 2024 Business Update 60 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX Core EPS Non-GAAP Reconciliations 1. SCE non-core items are tax-effected at an estimated statutory rate of approximately 28%; customer revenues (
Slide 62: Use of Non-GAAP Financial Measures
Edison International | July 2024 Business Update 61 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in t