Edison International · NYSE:EIX
Edison International — Lehman Brothers Energy/Power Conference 2005
21 slides from Edison International's conference presentation, Sep 8, 2005
Slide 1: Business Overview and Strategy
Exhibit 99.1 Business Tom Executive Lehman McDaniel Brothers Overview Vice President CEO andEnergy/Power Strategy and Chief Financial Conference Officer September 8, 2005
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “could,” necessarily to on from activities; electricity and tax EME’s technologies conditions, including carefully Exchange not 1 differ, its laws, obligated other presentation not its common generating and customers “would,” directly or consider rates power mo
Slide 3: Edison International Organizational Structure and Statistics
Generation Southern Customers Rate Mission Holding B+ Coal Edison Credit Operating Total 1) 2) shelf 3) 2 respectively. As Represents Includes / B1 Base Generation rating Assets Domestic Investments Debt ofRating International Capital (EME) June Energy Company California Statistics: $9.5 (3) 4.7 13,
Slide 4: Balanced Business Mix and Strong Platforms for Growth
Edisonand Balanced Strong Unregulated Stable Business 3 utility International flexibility Business predictable business operating Mix for —platform earnings future in Platforms a large growth with and and forcash large Growth rapidly flow basegrowing Significant of low-cost service long-term coalter
Slide 5: Edison International Strategy
Edison Our Balance We 4 expect strategy International sheet toseeks produce strength to— create total Growth Strategy returns a balance Dividends above among peer averages
Slide 6: Strengthening Balance Sheet
Consolidated 70% 69% EIX 2002 Strengthening Cash MEHC Edison 1) 2) 3) 5 Total Excludes See Long-term 60% 61% 2003 balances Appendix International Capital consolidated debt 50% 56% 2004 Powerton/Joliet includes Recourse Balance as =53% 40% goal 6/30/2005 for $240M of 6/30/05: non-GAAP –Balance =recou
Slide 7: Southern California Edison Service Territory and Growth
Southern PG&E One 50,000 More 4.7 70 2.8% New 11 Customer Infrastructure Transmission Generation 1) 2) 6 As Peak TWh thousand million of summer growth of than LADWP the square-mile on 2004. Direct California growth 13 largest July customers upgrades customers additions peak million replacement Acces
Slide 8: SCE Capital Expenditures
SCE Average Potential Mohave 1.8 Five-Year 2005 Classification Generation Transmission Distribution Recovery CPUC $% FERC Project 1) 7 Total 1.9 Capital 2006 Rate Rate 2.1 Specific spending Generating annual Additions: by Total 2.1 2007 1.4 Cases Cases 6.6 Expenditures Proceeding 2.1 (1) 2.2 14% = e
Slide 9: SCE Rate Base Growth
SCE Rate ± Growth 10.2 2005 Generation 1) 2) 3) 8 $100 10 1% Assuming Current 11.4 bp base Rate 2006 change million change Rate 12.4 increasing Base authorized 2007 Transmission $10 =in13.3 in 9.2% in authorized 2008 billion authorized authorized 14.5 42% $16.0 Return common 2009 rate Distribution f
Slide 10: Southern California Edison Key Areas of Capital Focus
Southern Areas Capital Market Fair Customer Key SONGS 2006 Major 1) 9 Investment and regulatory General Cost of transmission structure investment Steam timely Focus California rates of Capital—Late Rate recovery decisions Generator recovery development Case—Late implementation projects Edison relate
Slide 11: Mission Energy Holding Company Overview
Mission 964 Midwest Homer 8,834 7,545 1,289 88% Low Market Capacity 1) 2) 3) 10 As Total Long-term MWs cost merchant of MWs MWCity liquidity debt June Energy Generation Market prices: coal (85%) (15%) of 1,884 includes 30, earnings based $3.4 Generation Holding $10/kWyr –Recovery 2005. coal gas/oil
Slide 12: Midwest Generation Contract Coal Hedge Position
Midwest 40 26.6 (6/30 Contract Coal 2001 Avg. Hedge Volume 2005 Hedged Unhedged 2006 30.8 1) 2) 11 Excludes Balance Cal 3026.2 Generation Revenues realized YTD 2002 Hedged YTD) 20 06 Volume (TWH) 9.4 Merchant 10 Generation flat 0.4 7.2 2003 14.2 of $38.15 Peakers/Collins 027.6 price energy 9.7 year
Slide 13: Homer City Merchant Coal Generation
Homer 20 Merchant 12.9 (6/30 Coal 2001 Avg. Hedge Volume 2005 Hedged Unhedged 2006 13.6 1) busbar 2) 3) 12 Forward Balance Cal 1512.1 Generation Revenues realized YTD 2002 Hedged YTD) 10 06 Volume being City (TWH) 4.6 5flat 14.4 Balance 2.4 06.6 2003 of prices $44.94 Operating lower price energy 5.3
Slide 14: MEHC Coal Supply and Annual Requirements
MEHC 120% 2005(1) 110 Coal Annual Homer Illinois 1) 2) 13 Adjusted The 105 Supply 100% percentage City plants –Coal coal 2006 98 53 for uses usage: 80% 2007 use Homer Requirements 96 expected approximately 49 60% approximately in2008 29 2005 City 40% 14 deliveries 2009 facilities(2) is29 20% Under c
Slide 15: Mission Energy Holding Company Key Focus Areas
Mission Areas Reduce Debt Manage Key Illinois 14 regulatory reduction ofprocurement overhead fuel Energy Focus supply, Collateral developments Holding expenses emissions, process Company for inPJM hedging theand aftermath capacity environmental New market generation of assetstructure controls sales
Slide 16: Edison Mission Energy Wind Investment Target
Edison Now Target Production MW 1,400 8 196 2 2009 25+ 1,200 Multiple 2005 Expected 15projects midwestern MW projects Installed actively Target Current 2006 1,200 MW $250 Capital—Wind US investment 2007 tax 1,000 Portfolio million regions Portfolio pursuing states credits 2008 800 per of2009 extende
Slide 17: Edison International Dividend Policy
Edison 2001—2003 Dividend Longer-term, 1) 2) 16 Dividends Dividend International perrate. 2004 paid. share targeting (1)—2005 aDividend payout (2) $0.00 ratio Policy of $0.80 45–55% $1.00 $1.00 $0.50 excluding $0.00 MEHC earnings
Slide 18: Edison International Earnings Outlook 2005
Edison 0.06 2.14 (2) 2.53-2.63 0.34 Recorded Core 1) 2) 3) 17 See Given (3) $2.20 $2.87-2.97 Non-core Appendix International August October 2004 Prior 9, for 13, 2005. non-GAAP EPS 2005 2004. (1) Outlook – 2004 reconciliation. Current Recorded2005andOutlook 2005 Outlook $3.00 $2.50 $2.00 $1.50 $1.00
Slide 19: Appendix: Leverage Ratio Calculation
Slidecalculation Appendix long-term recourse preferred sheet The component based 18 classifications, 5: onThe items, 2002 securities debt ofcalculation debt. balance and is for59%. the excludes subject Non-recourse including 2004 2003 2002 sheet for to the recourse non-recourse classifications manda
Slide 20: Appendix: Fuel Cost Reconciliation
SlideFuel Appendix 2001 Reported Less Net Coal Fuel 19 Cost Collins Generation 2002 11: Cost Reconciliation Fuel / 2003 MWh Fuel 248,213 Cost 2004 (GWh) 9.32 Cost (inYTD 11.27 310,785 (in thousands) for 26,627 thousands) 6/30/2005 MWG 10.93 300,684 27,574 354,425 Fuel 10.84 (106,212) 27,510 Costs 33
Slide 21: Appendix: Recorded and Core Earnings Reconciliation
Appendix Recorded EC Core Non-Core SCE Tax MEHC Debt Discontinued Lease Gain EIX Reported 1) 2) 3) 4) 5) 6) 20 Includes Given Excludes 0.18 Settlement –Holding $1.80 $1.01 EPS Extinguishment on terminations/impairments Debt (0.27) –Sale 0.08 August October –EPS 2004 $1.50 Reconciliation Items $1.75
Edison International — Lehman Brothers Energy/Power Conference 2005 on 6ix