Edison International · NYSE:EIX
Edison International — Corporate Update (November 2023)
58 slides from Edison International's corporate update, Nov 2, 2023
Slide 1: November 2, 2023 Business Update
NOVEMBER 2, 2023 BUSINESS UPDATE
Slide 2: Forward-looking statements
Edison International | November 2023 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 | November 2023 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
Slide 4: Thesis: Wires-focused utility with rate base growth aligned with clean energy goals
Edison International | November 2023 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 regulat
Slide 5: EIX well positioned for a decarbonized future
Edison International | November 2023 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
Slide 6: Sustainability at the core of Edison's vision
Edison International | November 2023 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
Slide 7: Sustainable financing activities underscore link between strategy and financings
Edison International | November 2023 Business Update 6 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Sustainable financing activities underscore strong link between strategy and financings 1. Excludes projects with GHG intensity above 100 gCO2e /
Slide 8: California's regulatory mechanisms provide revenue certainty
Edison International | November 2023 Business Update 7 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 Lon
Slide 9: Clean Energy Transition Leadership
CLEAN ENERGY TRANSITION LEADERSHIP
Slide 10: Reaching California's 2045 GHG goals requires near-complete transformation of energy use
Edison International | November 2023 Business Update 9 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 electr
Slide 11: Load growth of 80% by 2045 requires acceleration in grid expansion
Edison International | November 2023 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
Slide 12: Electricity demand projected to rise over 80% by 2045
Edison International | November 2023 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
Slide 13: Energy share of wallet in SCE's area near median
Edison International | November 2023 Business Update 12 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 26.5 31.3 38.5 SCE PG&E SDG&E 0% 2% 4% 6% 8% 10% Mississippi West Virginia Alabama Kentucky Oklahoma Arkansas Wyoming Indiana South Dakota Louisi
Slide 14: Edison has one of the strongest electrification profiles in the industry
Edison International | November 2023 Business Update 13 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Edison International has one of the strongest electrification profiles in the industry 1. As of August 2023. Source: DMV on data provided by EPRI
Slide 15: SCE leads largest utility transportation electrification programs
Edison International | November 2023 Business Update 14 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $872 $414 $402 $368 $309 $293 $235 $207 EIX PCG NGG ED ES PEG SRE NEE SCE leads the largest utility transportation electrification initiatives an
Slide 16: SCE's future load growth is levered to EV adoption
Edison International | November 2023 Business Update 15 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 compon
Slide 17: SCE is actively strengthening grid reliability
Edison International | November 2023 Business Update 16 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is actively strengthening grid reliability Energy Storage ~2.3 GW currently online Installed or procured ~6.1 GW of storage capacity and must
Slide 18: SCE Wildfire Mitigation: Approach, Progress, and Results
SCE WILDFIRE MITIGATION: APPROACH, PROGRESS, AND RESULTS
Slide 19: Proof points and results from wildfire mitigation efforts
Edison International | November 2023 Business Update 18 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE is seeing numerous proof points and results from its substantial wildfire mitigation efforts since 2018 1. Measured by faults covered conduct
Slide 20: SCE's 2023–25 Wildfire Mitigation Plan
Edison International | November 2023 Business Update 19 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s 2023–25 Wildfire Mitigation Plan (WMP) builds upon the accomplishments and lessons from the 2020–22 WMP In 2023, SCE is building on and ext
Slide 21: AB 1054 provides regulatory construct for wildfire liability and cost recovery
Edison International | November 2023 Business Update 20 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 22: California continued to increase wildfire suppression and prevention investments
Edison International | November 2023 Business Update 21 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix $2.0 $2.5 $2.9 $2.5 $2.6 $3.7 $4.1 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 California has continued to increase investments in wi
Slide 23: Tools and technology monitor real-time conditions
Edison International | November 2023 Business Update 22 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 190+ cameras that provide visibili
Slide 24: Covered conductor is one of the most effective measures
Edison International | November 2023 Business Update 23 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix https://www.edison.com/_gallery/ get_file/?file_id=634a0ff38ed7df0 e03e0e3a4&file_ext=.pdf&page_i d= Covered conductor is one of the most effecti
Slide 25: Significant progress hardening the grid
Edison International | November 2023 Business Update 24 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE has made significant progress hardening the grid to keep its communities safe ~7,200 ~4,400 1,200 ~2,930 ~1,070 ~16,800 Distribution Miles in
Slide 26: Substantial progress in grid hardening of overhead bare wire
Edison International | November 2023 Business Update 25 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Substantial progress in grid hardening — ~58% of overhead bare wire in SCE’s HFRA to be covered by end of 2023 Prioritizing riskier segments firs
Slide 27: Wildfire mitigation reduced probability of catastrophic wildfire losses by ~85%
Edison International | November 2023 Business Update 26 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE estimates its wildfire mitigation and PSPS have reduced probability of losses from catastrophic wildfires by ~85%1,2 1. Baseline risk estimat
Slide 28: Covered conductor deployment has reduced use of PSPS
Edison International | November 2023 Business Update 27 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Covered conductor deployment has reduced SCE’s use of PSPS for lowering wildfire risk 1. Baseline risk estimated by Risk Management Solutions, In
Slide 29: Financial
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Slide 30: Capital deployment expected to increase in 2025–2028
Edison International | November 2023 Business Update 29 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Capital deployment expected to increase in 2025–20281 Range Case2 $5.3 $5.6 $6.6 $6.9 $6.9 $6.5 $5.5 $6.0 $7.5 $8.2 $8.3 $7.8 2023 2024 2025 2026
Slide 31: Over 85% of capital investments are in distribution grid
Edison International | November 2023 Business Update 30 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 Distributio
Slide 32: Approvals of standalone applications for ~$3 billion of capex
Edison International | November 2023 Business Update 31 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
Slide 33: GRC request supports ~6–8% rate base growth
Edison International | November 2023 Business Update 32 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix GRC request supports ~6–8% rate base growth 2023–2028; substantial additional investment opportunities offer upside 1. Weighted-average year basi
Slide 34: Long-term growth drivers aligned with California public policy goals
Edison International | November 2023 Business Update 33 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE’s long-term growth drivers highly aligned with California’s public policy goals Infrastructure Replacement Wildfire Mitigation Grid Moderniza
Slide 35: Memo account recovery and securitization strengthen balance sheet
Edison International | November 2023 Business Update 34 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Cash flow from memo account recovery and securitization strengthens our balance sheet and credit metrics Approved Applications Application / Acco
Slide 36: First 2017/2018 cost recovery application filed
Edison International | November 2023 Business Update 35 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix In August, SCE filed first 2017/2018 cost recovery application ($2.4Bn), proposing CPUC decision in early 2025 2.4 0.5 5.7 0.7 9.3 Best Estimate
Slide 37: Cost recovery benefits financial strength and reduces customer costs
Edison International | November 2023 Business Update 36 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 38: CPUC cost of capital mechanism adjusts ROE upward to 10.75%
Edison International | November 2023 Business Update 37 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Oct. 1, 2022 Oct. 1, 2023 CPUC cost of capital mechanism adjusts ROE for 2024 and 2025 upward to 10.75%; also
Slide 39: EIX and SCE committed to investment grade credit ratings
Edison International | November 2023 Business Update 38 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX and SCE committed to investment grade credit ratings 1. Excludes amortization of securitized bonds related to SCE’s AB 1054 Excluded Capital
Slide 40: Limited variable-rate exposure and debt maturities
Edison International | November 2023 Business Update 39 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX & SCE have limited variable-rate exposure Approximately $11 billion of the total ~$31 billion long-term debt portfolio matures through 20281
Slide 41: EIX reaffirms 2023 core EPS guidance of $4.55–4.85
Edison International | November 2023 Business Update 40 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 2023 core EPS guidance of $4.55–4.85 1. SCE is unable to conclude, at this time, that these amounts are probable of recovery; howev
Slide 42: Gap between rate base and core EPS growth driven by wildfire debt interest
Edison International | November 2023 Business Update 41 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 4.63 0.25 0.18 (0.11) 4.95 (0.25) 4.70 2022 Core EPS Rate Base Earnings SCE Operational Variances EIX Parent & Other Results Before Incr. WF Clai
Slide 43: Significant portion of 2023 financing plan accomplished
Edison International | November 2023 Business Update 42 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix ✓ Significant portion of EIX 2023 financing plan accomplished, with strong investor support for offerings 1. Financing plans are subject to chang
Slide 44: Track record of meeting EPS guidance and growing dividend
Edison International | November 2023 Business Update 43 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX has a strong track record of meeting or exceeding EPS guidance and growing dividend 1. EPS guidance was not provided in 2012 or 2018 because
Slide 45: Operational excellence efforts producing O&M savings
Edison International | November 2023 Business Update 44 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 cus
Slide 46: EIX reaffirms 5–7% 2021–2025 EPS growth target
Edison International | November 2023 Business Update 45 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX reaffirms 5–7% 2021–2025 EPS growth rate target, which would result in 2025 EPS of $5.50–5.901 1. Based on the midpoint of initial 2021 Core
Slide 47: EIX expects 5–7% core EPS growth for 2025–2028
Edison International | November 2023 Business Update 46 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix EIX expects 5–7% core EPS growth for 2025–20281 , with minimal equity needs 1. For 2025, represents the midpoint of the 2025 core EPS guidance ra
Slide 48: Key 2028 Earnings Sensitivities
Edison International | November 2023 Business Update 47 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/y
Slide 49: EIX offers double-digit total return potential
Edison International | November 2023 Business Update 48 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 50: Appendix
APPENDIX EDISON ~~ INTERNATIONAL®
Slide 51: Edison Energy partners with market leaders
Edison International | November 2023 Business Update 50 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Partners with market leaders to deliver on their strategic, financial, and sustainability goals by addressing carbon, cost, complex choices, and
Slide 52: SCE Key Regulatory Proceedings
Edison International | November 2023 Business Update 51 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix SCE Key Regulatory Proceedings Proceeding Description Next Steps Base Rates 2021 GRC Track 4 (A.19-08-013) Set CPUC base revenue requirement for
Slide 53: 2025 GRC Schedule
Edison International | November 2023 Business Update 52 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2025 GRC Schedule Event Scoping Ruling Date ✓ Application Filed Complete ✓ Mandated Workshop Complete ✓ Protests and Responses to Application Com
Slide 54: TKM Cost Recovery Proposed Schedule
Edison International | November 2023 Business Update 53 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix TKM Cost Recovery Proposed Schedule Event SCE Proposal ✓ Application Filed Complete ✓ Protests and responses Complete ✓ SCE’s reply to protests C
Slide 55: SCE continues to fund wildfire claims payments with debt
Edison International | November 2023 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 2021C 400 4/1/24 SOFR + 83bps 2021E 700 4/1/24 1.100% Term Loa
Slide 56: EIX Core EPS Non-GAAP Reconciliations
Edison International | November 2023 Business Update 55 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix 2023 2022 Basic EPS $ 3.36 $ 1.61 Non-Core Items SCE 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries (1.46) (3.25) Wild
Slide 57: Earnings Per Share Non-GAAP Reconciliations: guidance
Edison International | November 2023 Business Update 56 Introduction Clean Energy Transition Leadership Wildfire Mitigation Financial Information Appendix Low High Basic EIX EPS $3.21 $3.51 Total Non-Core Items1 (1.34) (1.34) Core EIX EPS $4.55 $4.85 1. Non-core items are presented as they are recor
Slide 58: Use of Non-GAAP Financial Measures
Edison International | November 2023 Business Update 57 Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings (losses) internally for financial planning and
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