Edison International · NYSE:EIX
Edison International — Q2 2013 Earnings Presentation
28 slides from Edison International's earnings presentation, Aug 1, 2013
Slide 1: Second Quarter 2013 Financial Teleconference
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 0 Second Quarter 2013 Financial Teleconference
Slide 2: Forward-Looking Statements
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 1 Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, San Onofre Nuclear Generating Station (SONGS),
Slide 3: Second Quarter Earnings Summary
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 2 Second Quarter Earnings Summary Q2 2013 Q2 2012 Variance Core EPS1 SCE $0.84 $0.59 $0.25 EIX Parent & Other (0.05) (0.03) (0.02) Core EPS1 $0.79 $0.56 $0.23 Non-Core Items SCE $(1.12) $— $(1.12) EIX Parent & Other
Slide 4: Year-to-Date Earnings Summary
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 3 Year-to-Date Earnings Summary YTD 2013 YTD 2012 Variance Core EPS1 SCE $1.63 $1.14 $0.49 EIX Parent & Other (0.06) (0.04) (0.02) Core EPS1 $1.57 $1.10 $0.47 Non-Core Items SCE $(1.12) $— $(1.12) EIX Parent & Other
Slide 5: SCE 2015 CPUC General Rate Case
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 4 SCE 2015 CPUC General Rate Case • Notice of Intent (NOI) submitted to the CPUC’s Division of Ratepayer Advocates (DRA) on July 15, 2013 • Request sets base revenue requirement for 2015 – 2017 Includes operating c
Slide 6: Capital Expenditures Forecast
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 5 Note: 2013-17 forecasted capital spending subject to timely receipt of permitting, licensing, and regulatory approvals. Forecast range reflects 12% variability based on the average level of historical experienced o
Slide 7: Rate Base Forecast
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 6 ($ billions) Rate Base Forecast Note: Weighted-average year basis, including: (1) forecasted 2013-2014 FERC and 2015-2017 CPUC rate base requests; (2) consolidation of CWIP projects; and (3) estimated impact of bon
Slide 8: FERC Formula Rates
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 7 FERC Formula Rates • August 2011 – FERC accepted SCE’s formula rates subject to refund and settlement • July 29, 2013 – Settlement Judge informed the Commission that: SCE and other parties have reached an agreeme
Slide 9: SONGS – Supplemental Data
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 8 SONGS – Supplemental Data 1 Includes direct operations and maintenance costs, depreciation, and return on investment 2 In 2005 the CPUC authorized expenditures of approximately $525 million ($665 million based on S
Slide 10: SONGS – Asset Impairment
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 9 SONGS – Asset Impairment (As of May 31, 2013 – $ millions) Exposure to refunds for amounts collected from customers Exposure to recovery of net investment from future rates Regulatory Asset1 Net Investment $2,096 L
Slide 11: SONGS Regulatory – CPUC OII Next Steps
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 10 SONGS Regulatory – CPUC OII Next Steps Phase 1A1 – Establish methodology to determine market-related costs attributable to the SONGS outages Phase 1A August 5: hearings August 28: briefs September 9: reply briefs
Slide 12: SONGS – Recovery Examples
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 11 SONGS – Recovery Examples Docket# Owner & Project Return of Investment Partial Return on Investment D.92-08-036 SCE – SONGS 1 generating plant D.12-10-051 SCE – GRC Legacy Meters D.11-05-018 PG&E – GRC Leg
Slide 13: SONGS Third-Party Recovery – MHI Warranty
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 12 SONGS Third-Party Recovery – MHI Warranty Warranty Summary Notice of Dispute • 20-year warranty: Repair or replace defective items Specified damages for certain repairs $138 million liability limit, excludin
Slide 14: SONGS Third-Party Recovery – NEIL Insurance
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 13 SONGS Third-Party Recovery – NEIL Insurance • Property damage and outage insurance through Nuclear Electric Insurance Limited (“NEIL”) Property Damage Policies – $2.5 million deductible; $2.75 billion liability
Slide 15: SONGS – Decommissioning
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 14 SONGS – Decommissioning Decommissioning Trusts • Decommissioning costs recovered in rates approved by CPUC in triennial proceeding • December 2012, A.12-12-013 Joint Filing with SDG&E submitted • July 2013, update
Slide 16: 2013 Core and Basic Earnings Guidance
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 15 2013 Core and Basic Earnings Guidance Note: See Use of Non-GAAP Financial Measures in Appendix SONGS Guidance: • $(0.15) per share from removal of $1.2 billion rate base effective in June pending regulatory treatm
Slide 17: EIX Dividend Growth
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 16 $1.16 $1.22 $1.24 $1.26 $1.28 $1.30 $1.35 $2.07 $2.25 $2.68 $3.01 $3.33 $4.10 $3.50 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2007 2008 2009 2010 2011 2012 2013 SCE Core EPS EIX Dividend Paid (39%) EIX Dividend Growth E
Slide 18: Creating Shareholder Value
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 17 Creating Shareholder Value Resolve Uncertainties Create Sustainable Earnings and Dividend Growth Position for Transformative Sector Change • Maintained EME structural separateness • SCE 2012 GRC • SCE 2013 cost of
Slide 19: Appendix
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 18 Appendix
Slide 20: What's New Since Our Last Presentation
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 19 What’s New Since Our Last Presentation • SCE 2015 CPUC General Rate Case (p. 4) • Capital Expenditures Forecast (p. 5) • Rate Base Forecast (p. 6) • FERC Formula Rates (p. 7) • SONGS – Supplemental Data (p. 8) • S
Slide 21: SCE System Reliability
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 20 Coastal Power Plants Local Reliability Areas (generalized) California Transmission System (partial, generalized) CA Once Through Cooling Policy – Legend SCE System Reliability • Short-term SONGS closure solutions
Slide 22: Residential Rate Design in California
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 21 Residential Rate Design in California • 2001 – AB 1X established current rate structure and process during energy crisis Tiered rates – encourage conservation Frozen Tier 1 and 2 rates – preserve affordability
Slide 23: SCE Large Transmission Projects
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 22 SCE Large Transmission Projects Project Name Total Project Costs1 In Service Date FERC Incentives 2013 – 2017 Forecast Status2 Tehachapi 1-11 $2,860 2016 125 bpsROE adder $917 • Total project costs and in service
Slide 24: SCE Distribution Program
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 23 SCE Distribution Program • Distribution expenditures required to meet customer and load growth, infrastructure maintenance and compliance needs, information technology and related general plant • Request represent
Slide 25: SCE Results of Operations
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 24 $6,682 — 2,518 1,562 296 32 4,408 2,274 (400) 1,874 214 1,660 91 $1,569 $5,169 4,139 1,026 — (1) — 5,164 5 (5) — — — — $— $6,257 — 2,423 1,426 285 — 4,134 2,123 (378) 1,745 601 1,144 59 $1,085 $4,320 3,356 964 — —
Slide 26: Non-GAAP Reconciliations: Earnings Per Share Attributable to SCE
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 25 Earnings Per Share Attributable to SCE Core EPS Non-Core Items Tax settlement Health care legislation Regulatory and tax items Total Non-Core Items Basic EPS SCE Core EPS Non-GAAP Reconciliations Note: See Use of
Slide 27: Non-GAAP Reconciliations
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 26 Non-GAAP Reconciliations ($ millions) Note: See Use of Non-GAAP Financial Measures. EME’s financial results are reported as non-core for all periods Q22012 $191 (8) $183 $– – (109) (109) $74 Q22013 $274 (15) $259
Slide 28: Use of Non-GAAP Financial Measures
Exhibit 99.2 EDISON INTERNATIONAL® Leading the Way in Electricity SM August 1, 2013 27 Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis