Slide 1: First Quarter 2012 Financial Teleconference
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 0 First Quarter 2012 Financial Teleconference
Slide 2: Forward-Looking Statements
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 1 Statements contained in this presentation about future performance, including, without limitation, earnings, asset and rate base growth, load growth, capital expenditures, and other statements that are not purely historical, are f
Slide 3: First Quarter Earnings Summary
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 2 First Quarter Earnings Summary 1 See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix. The impact of participating securities is included in EIX parent company and other and was zero per share f
Slide 4: SCE First Quarter Highlights
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 3 SCE First Quarter Highlights Items mainly driven by 2012 GRC delay: Depreciation Net interest expense Lower AFUDC SONGS inspection and repair O&M reductions and other Total $(0.05) (0.03) (0.03) (0.04) 0.03 $(0.12) Recent Developm
Slide 5: EMG First Quarter Highlights
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 4 EMG First Quarter Highlights Recent Developments • Homer City reflected as non-core beginning first quarter 2012, with 2011 results reclassified to non-core as well • In March 2012, completed Broken Bow I and Crofton Bluffs debt f
Slide 6: EMG 2011 Updated Core Earnings
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 5 EMG 2011 Updated Core Earnings Updated 2011 EMG EPS with Homer City financial results reclassified as non-core Q1 11 Q2 11 Q3 11 Q4 11 2011 Core EPS1 $(0.02) $(0.07) $0.05 $(0.01) $(0.05) Non-Core Items Homer City2 $(0.03) $(0.02)
Slide 7: EMG Wind Strategy & Financing
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 6 • Capistrano Wind Partners (CWP) formed February 13, 2012 by EMG, TIAA-CREF, and CIRI (an Alaskan native corporation). $460 million commitment for wind development: Operating projects transferred – Cedro Hill, Texas (150 MW) and
Slide 8: EMG Capital Expenditures
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 7 EMG Capital Expenditures Midwest Generation Environmental expenditures3 Plant capital expenditures Walnut Creek Project4 Renewable Energy Projects Capital & construction Turbine commitments Other capital expenditures Total 2013 1
Slide 9: Liquidity Profile
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 8 Credit Facility Credit Facility (availability) Cash & short-term investments1 Available Liquidity Liquidity Profile 1 EME had corporate cash of $927 million at March 31, 2012. Corporate cash is defined as cash and cash equivalents
Slide 10: 2012 Considerations
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 9 Southern California Edison • Average rate base range of $19.9 - $20.8 billion • Capital structure: 48% equity, 11.5% ROE (CPUC), 11.1% ROE (FERC) • No energy efficiency earnings • AFUDC offsets other costs outside CPUC rate case •
Slide 11: Appendix
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 10 Appendix
Slide 12: Updates Since Our Last Presentation
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 11 Updates Since Our Last Presentation • Q1 2012 results and standard information • EMG 2011 Updated Core Earnings (p. 5) – New Slide • EMG Wind Strategy & Financing (p. 6) • EMG Capital Expenditures (p. 7) • Liquidity Profile (p. 8
Slide 13: Delivering Superior and Sustained Value
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 12 Delivering Superior and Sustained Value Edison International • Diversified platform (regulated and competitive) best positions EIX in an industry undergoing unprecedented change • Positioned for long-term earnings and dividend gr
Slide 14: Financing Strategies and Dividend Policy
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 13 Financing Strategies • No financial support from, or distributions to, Edison International • Preserve and enhance liquidity: Reduce O&M spending on smaller Midwest Generation facilities Lower and delay Midwest Generation env
Slide 15: Short- and Long-Term Debt Maturities
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 14 Short- and Long-Term Debt Maturities SCE EMG1 EIX Expiration of Credit Facilities SCE MWG2 EIX Debt Maturity Profiles 20133 2012 2014 2015 $330 51 13 $— 500 — March 31, 2012 ($ millions) $— 568 — $2,796 — 1,379 $1,200 287 — $300
Slide 16: Earnings Non-GAAP Reconciliations
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 15 Earnings Attributable to Edison International Core Earnings1 SCE EMG EIX parent company and other Core Earnings Non-core items EMG – Homer City operations2 EMG – discontinued operations Total Non-core items GAAP Earnings Earnings
Slide 17: Our Shareholder Value Proposition
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 16 Our Shareholder Value Proposition • Dual platform operating across the full spectrum of the electric industry • Southern California Edison Among the best domestic electric utility growth platforms Supportive regulatory framew
Slide 18: SCE Appendix
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 17 SCE Appendix
Slide 19: SCE 2012 CPUC General Rate Case
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 18 SCE 2012 CPUC General Rate Case • Application filed November 23, 2010 to set base revenue requirement for 2012-2014 (A.10-11-015) Rate increase driven by system reliability, load growth, capital-related expense, and technology
Slide 20: SONGS Outage Update
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 19 SONGS Outage Update • Unit 2 and Unit 3 are on unplanned outage due to steam generator tube leakage • Additional operations and maintenance costs of $20 million incurred through March 31 • 20-year Mitsubishi Heavy Industries warr
Slide 21: SCE 2012 Cost of Capital Application
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 20 SCE 2012 Cost of Capital Application Cost of Capital Capital Structure Adjustments Current Proposed 2013 Revenue Impact • Long Term Debt – 43% • Preferred Debt – 9% • Equity – 48% • Long Term Debt – 43% • Preferred Debt – 9% • Eq
Slide 22: SCE ROE Mechanism – Current and Proposed
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 21 4 5 6 7 8 9 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Ra te (% ) Moody’s Baa Utility Index SCE ROE Mechanism – Current and Proposed Current Starting Index = 6.26% Moody’s Baa Utility Inde
Slide 23: SCE Capital Expenditures Forecast
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 22 1 Currently forecasted 2012-2014 FERC and CPUC capital spending, subject to timely receipt of permitting, licensing, and regulatory approvals. Forecast range reflects an 11% variability to annual expenditure levels related to exe
Slide 24: SCE Rate Base Forecast
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 23 Rate Base 7-9% 2012 – 2014 CAGR2 • Rate base forecast1 based on 2012 CPUC GRC and 2012 FERC Formula Rate requests including consolidated FERC CWIP in rate base • Forecast subject to change based on timely receipt of permitting, l
Slide 25: SCE Historical Rate Base and Core Earnings
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 24 $11.4 $12.5 $13.1 $15.0 $16.8 $18.8 2006 2007 2008 2009 2010 2011 Rate Base1 Core Earnings2 11% 12% 2006 – 2011 CAGR 1 Recorded rate base, year-end basis. 2 See SCE Core EPS Non-GAAP Reconciliations and Use of Non-GAAP Financial
Slide 26: SCE Transmission Program
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 25 SCE Transmission Program Transmission expenditures are needed to improve system reliability and increase access to renewable energy Eldorado Ivanpah San Joaquin Cross Valley Loop Los Angeles Vincent San Diego Pardee Antelope Palm
Slide 27: Other SCE Key Regulatory Events
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 26 Other SCE Key Regulatory Events Devers-Colorado River Transmission Tehachapi Transmission Eldorado-Ivanpah Transmission Alberhill Case Number Date of Filing Status Next Milestone FERC Formula Rate Filing ER11-3697 06/03/11 Settle
Slide 28: SCE Results of Operations
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 27 $1,456 — 588 389 82 1,059 397 (97) 300 99 201 19 $182 $2,412 692 851 389 83 2,015 397 (97) 300 99 201 19 $182 $182 — $182 SCE Results of Operations ($ millions) Utility Earning Activities Utility Cost- Recovery Activities Total C
Slide 29: Earnings Per Share Attributable to SCE
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 28 Earnings Per Share Attributable to SCE Core EPS1 Non-core items Tax settlement Health care legislation Regulatory and tax items Generator settlement/refund incentive Total non-core items Basic EPS SCE Core EPS Non-GAAP Reconcilia
Slide 30: EMG Appendix
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 29 EMG Appendix
Slide 31: EMG Business Platform
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 30 Owned and Operated1 Coal2 Natural Gas Wind3 Other Total MW 7,096 1,269 1,660 153 10,178 % 70 12 16 2 100 Under Construction Wind Natural Gas4 Wind Development Pipeline5 MW 120 479 MW ~1,300 67 44 19 244 190 357 5,172 167 133 305
Slide 32: MWG Hedge Program Status
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 31 March 31, 2012 MWG Hedge Program Status Midwest Generation Total GWh (NI, AEP/Dayton, and Indiana Hubs)3 Average price ($/MWh)2 Coal under contract (millions of tons) 1 Change from Q4 2011 in GWh for 2012 includes 93 GWh of new h
Slide 33: MWG Capacity Sales
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 32 March 31, 2012 MWG Capacity Sales 5,477 5,477 5,477 5,477 (555) (773) (827) (852) 4,922 4,704 4,650 4,625 4,582 4,704 4,650 4,625 $110.00 $16.46 $27.73 $125.99 MW Average Price per MW-day Aggregate Average Price per MW-day Instal
Slide 34: Midwest Generation Realized Prices and Operations
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 33 1 Includes the price of energy, capacity, ancillary services, etc. 2 Average realized gross margin is equal to all-in average realized price less average fuel and emission costs. 3 See Other Non-GAAP Reconciliations and Use of No
Slide 35: EMG 2006 Illinois CPS Agreement
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 34 EMG 2006 Illinois CPS Agreement NOx SO2 Construction timeline Fleet-wide average emission rate (lb/mmbtu) Construction timeline Fleet-wide average emission rate (lb/mmbtu) Mercury Construction timeline Fleet-wide average emission
Slide 36: Midwest Generation Compliance Cost
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 35 Midwest Generation Compliance Cost Unit Crawford 532 2,400 8.5% To be shutdown September 2012 Fisk 326 1,589 5.6% To be shutdown September 2012 Waukegan 7, 8 689 3,898 13.9% 2013/2014 $160 Joliet 6 290 1,675 5.9% 2018 $75 Joliet
Slide 37: EMG Adjusted EBITDA Reconciliation
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 36 Reconciliation to Earnings1 EMG – Adjusted EBITDA Q4 09 Q1 11 Earnings Addback (Deduct): Discontinued operations Income from continuing operations Interest expense Interest income Income taxes (benefits) Depreciation and amortiza
Slide 38: EMG Other Non-GAAP Reconciliations
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 37 EMG Other Non-GAAP Reconciliations Reconciliation of Midwest Generation Operating Revenues and Fuel Costs to All-in Average Realized Price/MWh and Average Realized Fuel Cost/MWh Generation (GWh) Operating revenues Less: Unrealize
Slide 39: Use of Non-GAAP Financial Measures
EDISON INTERNATIONAL® Leading the Way in Electricity SM May 2, 2012 38 Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our ma