Edison International · NYSE:EIX
Edison International — Q1 2015 Earnings Presentation
15 slides from Edison International's earnings presentation, Apr 28, 2015
Slide 1: First Quarter 2015 Financial Results
First Quarter 2015 Financial Results April 28, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-looking statements. T
Slide 3: First Quarter Earnings Summary
First Quarter Earnings Summary Q1 Q1 Variance SCE Key Core Earnings Drivers 2015 2014 Core EPS1 Revenue3,4 $0.00 SCE $0.93 $0.93 $ – - CPUC GRC revenue deferral (0.07) - FERC revenue and other 0.07 EIX Parent & Other (0.03) (0.03) – Higher O&M (0.01) Core EPS1 $0.90 $0.90 $ - Higher depreciation (0.
Slide 4: SCE Capital Expenditures Forecast
SCE Capital Expenditures Forecast ($ billions) Distribution Transmission Generation $11.5 – $13.1 billion forecasted capital program 2015-2017 $4.6 $4.4 • Request case incorporates 2015 GRC $4.1 January update • Net $325 million 2016-2017 decrease from prior forecast primarily for Coolwater-Lugo pro
Slide 5: SCE Rate Base Forecast
SCE Rate Base Forecast ($ billions) 2015 – 2017 rate base growth consistent with prior 7-9% forecast • Incorporates 2015 GRC January update Request • Rate base reduced due to Coolwater- Range $28.4 Lugo transmission project request for $26.0 suspension • FERC rate base includes Construction $23.6 Wo
Slide 6: 2015 Financial Assumptions
2015 Financial Assumptions ($ billions) SCE Capital Expenditures SCE Weighted Average Rate Base Distribution $3.1 Distribution $16.0 Transmission 0.8 Transmission 5.4 Generation 0.2 Generation 2.2 Request $4.1 Request $23.6 Range $3.6 Range $23.1 SCE Authorized Cost of Capital Other SCE Items CPUC R
Slide 7: EIX Shareholder Value
EIX Shareholder Value Sustainable Positioning for Financial Earnings Growth Transformative Change Discipline Rate Base and Core Earnings SCE Growth Drivers Beyond 2017: Dividend and CapEx Balancing: Growth: • Reliability • 11 consecutive years of EIX • 9% 5-year SCE rate base CAGR • Grid readiness d
Slide 8: Appendix
Appendix April 28, 2015 7
Slide 9: SCE Customer Demand Trends
SCE Customer Demand Trends Kilowatt-Hour Sales (millions of kWh) 2014 2013 2012 2011 2010 Residential 30,115 29,889 30,563 29,631 29,034 Commercial 42,127 40,649 40,541 39,622 39,318 Industrial 8,417 8,472 8,504 8,490 8,507 Public authorities 4,990 5,012 5,196 5,206 5,336 Agricultural and other 2,02
Slide 10: SCE 2015 CPUC General Rate Case
SCE 2015 CPUC General Rate Case • November 2013, 2015 GRC Application A.13-11-003 sets 2015 – 2017 base revenue requirement – Includes operating costs and CPUC jurisdictional capital – Excludes fuel and purchased power (and other utility cost-recovery activities), cost of capital, and FERC jurisdict
Slide 11: CPUC and FERC Cost of Capital
CPUC and FERC Cost of Capital CPUC Adjustment Mechanism 7 Moody’s Baa Utility Index Spot Rate Moving Average (10/1/14 – 4/1/15) = 4.69% 100 basis point +/- Deadband 6 Rate (%) 5 Starting Value – 5.00% 4 3 10/1/12 10/1/13 10/1/14 10/1/15 • CPUC – 48% common equity and Return on Equity (ROE) adjustmen
Slide 12: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Q1 Q1 Earnings Attributable to Edison International 2015 2014 Core Earnings SCE $305 $304 EIX Parent & Other (11) (10) Core Earnings $294 $294 Non-Core Items SCE $– $(96) EIX Parent & Other 5 – Di
Slide 13: SCE Core EPS Non-GAAP Reconciliations
SCE Core EPS Non-GAAP Reconciliations Reconciliation of SCE Core Earnings Per Share to SCE Basic Earnings Per Share Earnings Per Share Attributable to SCE 2009 2010 2011 2012 2013 2014 CAGR Core EPS $2.68 $3.01 $3.33 $4.10 $3.88 $4.68 12% Non-Core Items Tax settlement 0.94 0.30 — — — — Health care l
Slide 14: SCE Results of Operations – Full-Year 2014
SCE Results of Operations – Full-Year 2014 ($ millions) • Utility earning activities – revenue authorized by CPUC and FERC to provide reasonable cost recovery and return on investment • Utility cost-recovery activities – CPUC- and FERC-authorized balancing accounts to recover specific project or pro
Slide 15: Use of Non-GAAP Financial Measures
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 internally for financial planning and for analysis of performance. Core earnings are also used when com