Edison International · NYSE:EIX
Edison International — Q1 2013 Earnings Presentation
25 slides from Edison International's earnings presentation, Apr 30, 2013
Slide 1: First Quarter 2013 Financial Teleconference
Leading the Way in Electricity SM First Quarter 2013 Financial Teleconference April 30, 2013 0 EDISON INTERNATIONAL®
Slide 2: Forward-Looking Statements
Leading the Way in Electricity SM Forward-Looking Statements 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), AND EME bankruptcy, and
Slide 3: First Quarter Earnings Summary
Leading the Way in Electricity SM First Quarter Earnings Summary Q1 2013 Q1 2012 Variance SCE Key Core Earnings Drivers Core EPS Revenue $0.13 SCE $0.78 $0.56 $0.22 Impact of delay in 2012 GRC 0.15 EIX Parent & Other (0.01) (0.02) 0.01 SONGS refueling revenue (0.07) Higher revenue 0.05 Core EPS $0.7
Slide 4: Capital Expenditures Forecast
Leading the Way in Electricity SM Capital Expenditures Forecast ($ billions) $4.2 2013 – 14 Forecast $3.9 $4.0 by Classification $ % Generation 1.0 12 Transmission 2.2 27 Distribution 5.0 61 Forecast pending GRC Notice of Intent filing Q3 2013 Total 8.2 100 By Jurisdiction 2012 2013 2014 2015 2016 2
Slide 5: Rate Base Forecast
Leading the Way in Electricity SM Rate Base Forecast ($ billions) 7 – 8% Projected Rate Base Growth from 2013 – 14 $23.6 • Driven by infrastructure $21.8 replacement, reliability Smart investments, and public Grid policy requirements • FERC rate base includes Forecast pending GRC CWIP and is approxi
Slide 6: SONGS Tracker
Leading the Way in Electricity SM SONGS Tracker Items Covered Key Issues Status • Revenue • CPUC legal authority to reduce rates • Phase 1 reasonableness requirement • Date that rates are subject to refund evidentiary hearings May 13-17 SONGS OII • Repair & • Date when rate adjustments can be • Prop
Slide 7: SONGS – Supplemental Data
Leading the Way in Electricity SM SONGS – Supplemental Data ($ millions) Outage Impacts (SCE share) Total Inspection & Repair Costs – Incurred $109 Net Market Costs – CPUC Basis1 $444 Regulatory (SCE share) Steam Generator Replacement (SGRP) – Approved2 $665 SGRP – Incurred $602 2012 Annual Revenue
Slide 8: FERC Return on Equity
Leading the Way in Electricity SM FERC Return on Equity • August 2011 – FERC accepted SCE’s formula rates effective January 1, 2012 FERC • Rates remain subject to refund and settlement Formula • Next settlement conference May 2013 Rates • September 2012 – Formula Rate update filed for 2013; $178 mil
Slide 9: Cost of Capital Mechanism
Leading the Way in Electricity SM Cost of Capital Mechanism Proposed 9 Moody’s Baa Utility Index Spot Rate Moving Average (10/1/2012 – 3/31/2013 = 4.60%) 8 7.63% 100 basis point +/- Deadband 7 Rate (%) Prior Starting Index = 6.26% 6.05% 6 5.75% 5.00% Current Starting Index = 5.00% 5 4 3 Sep-08 Sep-1
Slide 10: 2013 Core and Basic Earnings Guidance
Leading the Way in Electricity SM 2013 Core and Basic Earnings Guidance 2013 EPS from Rate Base Forecast: • Average rate base $21.8 billion – 80/20% CPUC/FERC 2013 Earnings 2013 Earnings • Approved capital structure – Guidance as of Guidance as of 48% equity, 10.45% CPUC ROE, 2/26/13 4/30/13 11.1% F
Slide 11: Creating Shareholder Value
Leading the Way in Electricity SM Creating Shareholder Value Create Sustainable Position for Resolve Earnings and Transformative Uncertainties Dividend Growth Sector Change What We’ve Done • EME bankruptcy filing • 5-year rate base CAGR of 11% • Leadership and development • SCE 2012 GRC (2007 – 2012
Slide 12: Appendix
Leading the Way in Electricity SM Appendix April 30, 2013 11 EDISON INTERNATIONAL®
Slide 13: What’s New Since Our Last Presentation
Leading the Way in Electricity SM What’s New Since Our Last Presentation • SONGS Tracker (p. 5) • SONGS – Supplemental Data (p. 6) • FERC Return on Equity (p. 7) • Cost of Capital Mechanism (p. 8) • 2013 Core and Basic Earnings Guidance (p. 9) • SONGS – Warranty and Insurance (p. 13) • SCE Electric
Slide 14: SONGS – Warranty and Insurance
Leading the Way in Electricity SM SONGS – Warranty and Insurance MHI Warranty • 20-year warranty with Mitsubishi Heavy Industries Repair or replace defective items Specified damages for certain repairs $138 million liability limit and excludes consequential damages (e.g., replacement power)
Slide 15: SCE Electric Power System Assets
Leading the Way in Electricity SM SCE Electric Power System Assets Sub - Transmission Transmission Distribution Distribution Generation transmission Customers 500kV 230kV Substation Substation 16kV 12kV 4kV 115kV 66kV Transmission Distribution 60 Substations 810 Substations 4,587 Circuits1 1,193 Cir
Slide 16: SCE Large Transmission Projects
Leading the Way in Electricity SM SCE Large Transmission Projects ($ millions) Project Total Project In Service FERC 2013 – 2014 Name Costs Date Incentives Forecast Status • Cost estimates for potential Chino 125 bps Hills undergrounding filed Q1 2013 Tehachapi 1-11 $2,500 2015 $455 ROE adder • Prop
Slide 17: SCE Key Regulatory Events Calendar
Leading the Way in Electricity SM SCE Key Regulatory Events Calendar Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 SONGS OII Phase 1 (I.12-10-013) Opening Evidentiary Proposed Briefs Hearings Decision (2/25/13) (5/13-17/13) (July) 2012 FERC Formula Rate Filing (ER11-3697) Settlement Settlement Conference Con
Slide 18: SCE Customer Demand Trends
Leading the Way in Electricity SM SCE Customer Demand Trends Kilowatt-Hour Sales (millions of kWh) 2012 2011 2010 2009 2008 Residential 30,563 29,631 29,034 30,063 30,745 Commercial 40,541 39,622 39,318 40,076 41,978 Industrial 8,504 8,490 8,507 8,524 9,658 Public authorities 5,196 5,206 5,336 5,687
Slide 19: SCE Results of Operations
Leading the Way in Electricity SM SCE Results of Operations ($ millions) Three Months Ended Mar 31, 2013 Three Months Ended Mar 31, 2012 Utility Utility Utility Cost- Utility Cost- Earning Recovery Total Earning Recovery Total Activities Activities Consolidated Activities Activities Consolidated Ope
Slide 20: SCE Core EPS Non-GAAP Reconciliations
Leading the Way in Electricity SM 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 2007 2008 2009 2010 2011 2012 CAGR Core EPS $2.07 $2.25 $2.68 $3.01 $3.33 $4.10 15% Non-Core Items Tax settleme
Slide 21: EIX Dividend Growth
Leading the Way in Electricity SM EIX Dividend Growth 2013 2007 – 2012 CAGR $1.35 SCE Core EPS 15% $4.10 2012 EIX Dividend 2% $1.30 (32%) $3.33 2011 $1.28 (38%) • EIX targets paying out 45 – 55% of SCE earnings 2010 $3.01 • Dividend not growing at same rate as $1.26 (42%) SCE core earnings and is be
Slide 22: Non-GAAP Reconciliations
Leading the Way in Electricity SM Non-GAAP Reconciliations ($ millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Q1 2013 Q1 2012 Core Earnings SCE $256 $182 EIX Parent & Other (4) (5) Core Earnings $252 $177 Non-Core Items EIX Parent & Ot
Slide 23: Full-Year Earnings Summary
Leading the Way in Electricity SM Full-Year Earnings Summary 2012 2011 Variance SCE Key Core Earnings Drivers Core EPS Higher operating revenue $0.63 SCE $4.10 $3.33 $0.77 Rate base growth EIX Parent & Other (0.18) (0.02) (0.16) Operating revenue O&M reductions 0.21 Core EPS $3.92 $3.31 $0.61 Severa
Slide 24: Quarterly Earnings Per Share Highlights
Leading the Way in Electricity SM Quarterly Earnings Per Share Highlights 2011 Q1 Q2 Q3 Q4 2011 SCE $0.68 $0.65 $1.25 $0.76 $3.33 EIX – Parent and Other (0.03) (0.02) (0.01) 0.03 (0.02) Core EPS $0.65 $0.63 $1.24 $0.79 $3.31 Non-core items 0.02 0.01 (0.03) (0.11) (0.11) EIX Parent and Other – Discon
Slide 25: Use of Non-GAAP Financial Measures
Leading the Way in Electricity SM 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. Co