Edison International · NYSE:EIX
Edison International — Corporate Update (February 2021)
33 slides from Edison International's corporate update, Feb 26, 2021
Slide 1: Business Update February 26, 2021
Business Update February 26, 2021 Exhibit 99.1
Slide 2: Forward-looking statements
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, are forward-looking statements. These forward-looki
Slide 3: Edison International is leading the transformation of the electric power industry
2 Edison International is leading the transformation of the electric power industry One of the nation’s largest electric-only utilities, serving over 15 million residents EIX’s principal subsidiary, with ~$5 billion annual electric infrastructure investment opportunity Growth driven by investment in
Slide 4: Sustainability is central to Edison's vision to lead the transformation of the electric power industry
3 Sustainability is central to Edison’s vision to lead the transformation of the electric power industry SocialEnvironmental Governance Targeting 100% carbon-free power delivered by 2045; ~43% carbon-free power in 20202 Over $800 million in approved funding to expand transportation electrification3
Slide 5: Investment thesis: Strong alignment between California's clean energy goals and EIX's business drivers
4 Investment thesis: Strong alignment between California’s clean energy goals and EIX’s business drivers Constructive California and Federal regulatory structures Aggressive climate goals met with clean, efficient, economy- wide electrification Significant investment required to strengthen and moder
Slide 6: California's regulatory mechanisms provide revenue certainty
5 California’s regulatory mechanisms provide revenue certainty, even as load and payment patterns change Revenue Decoupling means earnings aren’t affected by changes in electricity sales Long-standing regulatory mechanism that breaks the link between retail electricity sales and revenue; promotes en
Slide 7: Reaching California's 2045 GHG goals requires a near-complete transformation of energy use
6 Reaching California’s 2045 GHG goals requires a near- complete transformation of energy use economy wide 100% of grid sales with carbon-free electricity 80 GW of utility-scale clean generation 30 GW of utility-scale energy storage 30% of space and water heating to be electrified by 2030 70% of spa
Slide 8: SCE delivered ~43% carbon-free electricity to customers in 2020
7 SCE delivered ~43% carbon-free electricity to customers in 2020 Decarbonizing transportation sector, ~40% of GHG emissions, requires widespread vehicle electrification State’s commitment highlighted by requiring all new passenger vehicles sold to be zero-emission by 2035 and operations of MD/HD ve
Slide 9: Annual residential household energy costs
8 Annual residential household energy costs (2019$)1 2019 2045 By 2045, a greater reliance on electricity, combined with population and economic growth, will result in a 60% increase in electricity sales from the grid Household savings driven by reduced gasoline consumption due to high market penetr
Slide 10: Significant incremental grid investments required by 2045
9 Significant incremental grid investments required by 2045 to serve load growth and integrate renewables and storage February 26, 2021 1. In 2019 dollars under Balanced Scenario 2. See SCE’s Reimagining the Grid white paper for additional information Source: SCE’s Pathway 2045 analysis. See Pathway
Slide 11: Foundational strategy for mitigating wildfire risk continues
10 Foundational strategy for mitigating wildfire risk continues; increased focus on risk-prioritization and customer impacts 2020–2022 Wildfire Mitigation Plan1 Hardening the Grid Covered Conductor ~4,000 circuit miles by end of 2022 2020: 965 | 2021: 1,000-1,400 | 2022: 1,600 Undergrounding Conside
Slide 12: Exceeding benchmarks in 2020–2022 Wildfire Mitigation Plan
11 1,400+ Miles of covered conductor installed since 2018, accounting for ~15% of lines in SCE’s high fire risk areas; plan to install ~6,000 miles by end of 2023 166 Cameras installed provide visual coverage of >90% of SCE’s high fire risk areas, reaching practical saturation point2 1,000+ Weather
Slide 13: SCE's publicly available real-time data enhances situational awareness
12 SCE’s publicly available real-time data enhances situational awareness and informs critical operational decisions Live HD camera feeds provide critical information to fire agencies for effectively deploying air and ground resources Provide real-time weather data, including wind speed and gust, te
Slide 14: SCE has strong rate base growth driven by electric infrastructure investment
13 5.5 5.5 5.3 5.4 2020 (Actual) 2021 2022 2023 SCE has strong rate base growth driven by significant electric infrastructure investment opportunities 1. In accordance with Assembly Bill (AB) 1054, ~$1.6 billion of wildfire mitigation-related spend shall not earn an equity return 2. Morongo Transmis
Slide 15: SCE's long-term growth drivers are aligned with California's public policy goals
14 SCE’s long-term growth drivers are highly aligned with California’s public policy goals Overarching Goals SCE Growth Drivers Safe, Reliable, and Affordable Electricity Service Infrastructure Replacement Sustained investment required to reach and maintain equilibrium replacement rate Wildfire Miti
Slide 16: EIX track record of meeting or exceeding EPS guidance and growing its dividend
15 EIX has a strong track record of meeting or exceeding EPS guidance and growing its dividend 0.80 2.65 2004 2021 7.3% CAGR …and has 17 consecutive years of dividend growth2 Dividends per Share (in Dollars) 1. EPS guidance was not provided in 2012 or 2018 because of the timing of final decisions in
Slide 17: EIX and SCE are committed to maintaining investment grade credit ratings
16 EIX and SCE are committed to maintaining their investment grade credit ratings SCE EIX Moody’s Baa2 Stable Baa3 Stable S&P BBB Negative BBB Negative Fitch BBB- Stable BBB- Stable Long-term Issuer Rating and Outlook1 As of February 25, 2021 Investment grade ratings at SCE and EIX, targeting EIX lo
Slide 18: 2017/2018 Wildfire/Mudslide Events Update
17 2017/2018 Wildfire/Mudslide Events Update 1. Thomas Fire, Koenigstein Fire, and Montecito Mudslides 2. Under the terms of the TKM Subrogation Settlement, SCE paid the TKM Subrogation Plaintiffs an aggregate of $1.2 billion in October 2020, and also agreed to pay $0.555 for each dollar in claims t
Slide 19: Edison Energy empowers organizations to conquer biggest challenges in energy
18 Edison Energy empowers organizations to conquer biggest challenges in energy today: Cost. Carbon. Complex Choices. Partners with market leaders to align energy spend with strategic, financial, and sustainability goals Provide independent, expert advice and services Using an integrated approach, p
Slide 20: Appendix
Appendix
Slide 21: SCE has delivered 7.2% annualized rate base growth since 2015
20 SCE has delivered 7.2% annualized rate base growth since 2015, driven by growing capital investment 1. Since 2015, rate base excludes SONGS Historical Recorded Rate Base1 $ in Billions, Weighted-average basis Historical Capital Expenditures $ in Billions 3.9 3.5 3.8 4.4 4.8 5.5 2015 2016 2017 201
Slide 22: The bulk of SCE's investments are in its distribution system
21 The bulk of SCE’s investments are in its distribution system, consistent with wires-focused strategy Investments will upgrade and modernize World War II-era infrastructure SCE forecasts investing $13.7 billion from 2021 to 2023 in its distribution system, ~85% of total ~$16 billion capital plan1
Slide 23: Increased energy storage is essential as renewable share expands
22 Increased energy storage is essential as we expand the share of intermittent renewable electricity sources SCE estimates that California will need 10 GW of utility- scale energy storage by 2030 and 30 GW by 2045 to support the transition to 100% carbon-free power 690 MW Already procured or instal
Slide 24: CPUC cost of capital adjustment mechanism
23 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Oct. 1, 2019 Apr. 1, 2020 Oct. 1, 2020 Apr. 1, 2021 Oct. 1, 2021 CPUC cost of capital mechanism current measurement period is October 1, 2020 through September 30, 2021 ROE adjustment based on 12-month average of Moody’s Baa utility bond rates, measured October 1 t
Slide 25: SCE Key Regulatory Proceedings
24 SCE Key Regulatory Proceedings Proceeding Description and Next Steps Base Rates 2021 GRC Tracks 1 and 4 (A.19-08-013) Set CPUC base revenue requirement for 2021–2024 Track 1 decision pending. Track 4 to be filed Q2 2022 Wildfire1 2021 GRC Track 3 (A.19-08-013) Incremental 2020 wildfire mitigation
Slide 26: Recent CPUC approvals improve cash flow; pending decisions will generate additional cash
25 Recent CPUC approvals improve cash flow; pending decisions will generate additional cash Application Approval/ Request1 Additional Information GRC track 2 settlement approved in Jan. 2021 391 Settlement approved unmodified; $401 million of O&M and reasonableness of $302 million of capital2 WE
Slide 27: SCE's 2021 General Rate Case request
26 SCE’s 2021 General Rate Case request balances foundational work with advancing ambitious State public policy goals 1. Includes all updates to the GRC revenue requirement filed with the CPUC as of September 29, 2020 2. Includes Wildfire Mitigation Plan Memo Account, Fire Hazard Prevention Memo Acc
Slide 28: 2021 General Rate Case will be approved in four tracks over 2021–2023
27 SCE’s 2021 General Rate Case will be approved in four tracks over 2021–2023 SCE Testimony Intervenor Testimony SCE Rebuttal Opening & Reply Briefs CPUC Proposed Decision Track 1: 2021–2023 GRC Revenue Requirement Pending Track 2: 2018–2019 FMA Update2 N/A due to settlement (Approv
Slide 29: GRC track 1: Rate base CAGR of 7.6% over two rate case periods
28 GRC track 1: Represents rate base CAGR of 7.6% over two rate case periods1 1. SCE Rebuttal rate base forecast reflects 2021–2023 rebuttal and latest Non-GRC and FERC estimates 2. CalPA rate base forecast assumes CPUC GRC rate base attrition year increases for 2022 and 2023 of 3.5%, consistent wit
Slide 30: GRC track update: Settlement for wildfire mitigation approved by CPUC
29 GRC track 2 update: Settlement allowing recovery of $391 million for wildfire mitigation approved by CPUC GRC track 2 settlement reached with intervenors Agreement reached with Cal Advocates, TURN, and SBUA to resolve all issues pending in track 2 of the 2021 GRC Covers Wildfire Mitigation Plan M
Slide 31: SCE's average residential bills lower than national average
30 SCE’s average residential bills lower than national average because higher rates more than offset by lower usage February 26, 2021 …which offset above- average residential rates that reflect a cleaner fuel mix, higher cost of living, and lower system utilization Average Residential Rate, Cents pe
Slide 32: SCE's system average rate has grown less than inflation over 31 years
31 SCE’s system average rate has grown less than inflation over the last 31 years, with some ups and downs along the way February 26, 2021 SCE’s system average rate has grown at an annualized ~2.2% as compared to local inflation of ~2.4% since 1990 Cents per kWh 0 5 10 15 20 25 1990 '95 '00 '05 '10
Slide 33: Core earnings non-GAAP definition
32 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 for analysis of performance. Core earnings (losses) are also used when communicating wit
Edison International — Corporate Update (February 2021) on 6ix