Edison International · NYSE:EIX
Edison International — Investor Presentation (August 2005)
22 slides from Edison International's investor presentation, Aug 24, 2005
Slide 1: Business Overview and Strategy, August 2005
Exhibit 99 Business2005 August Handout Overview and Strategy
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “could,” necessarily to on from activities; electricity and laws, EME’s technologies conditions, including carefully Exchange not 1 differ, its obligated other presentation not its rates common generating and customers “would,” directly or consider power more a
Slide 3: Edison International Organizational Structure and Company Statistics
BBB 13,956 Generation Southern BBB+ Customers Rate Mission CCC+ (EME) Coal Edison Credit BB+ Operating Total 1) shelf 2) 2 respectively. Represents Includes Base Generation /rating Assets /Debt Domestic Investments Ba1 Rating Baa3 /MW International Capital A3 B2 Energy California Statistics: $9.5 (2
Slide 4: Edison International EPS Year-to-Date June 2005
Edison 2004 EC EIX Core SCE MEHC Total 1) 2) sale 3 Regulatory 2005: 0.07 of Holding –$0.69 $0.29 EPS $(0.85) Non-Core Four International Consolidated –0.24 Primarily Disco Early Collins 2005 $0.89 $1.20 Star Co. $1.23 0.17 items Debt Ops EPS and Lease Items $0.20 (0.12) $0.91 243% from $2.08 relate
Slide 5: Edison International EPS and 2005 Outlook
Edison Recorded EC Core Non-Core SCE MEHC – EIX Reported 1) 2) 3) 4) 5) 6) 4 Tax Debt Discontinued Lease Gain Includes Given Excludes 0.18 –Holding $1.80 $1.01 EPS Settlement Debt Extinguishment on International (0.27) –terminations/impairments 0.08 August October –EPS 2004 $1.50 Sale Items $1.75 (2
Slide 6: Balanced Business Mix and Strong Growth Platforms
Edisonand Balanced Strong Unregulated Stable Produces recovery 5 utility International Business Business predictable business operating flexibility Mix — platform earnings in Platforms a large forwith and future and forcash large Growth rapidly growth flow basegrowing Significant of low-cost service
Slide 7: Edison International Strategy: Our Balance
Edison Our Balance We Dividends Growth 6 expect strategy International sheet toseeks produce strength to— create total Strategy returns a balance above among peer averages
Slide 8: Edison International Balance Sheet Strength
Edison $4.9 $Billion 2003 EIX MEHC Total Investment – At billion 1) 2) 7 EIX SCE MWG Total $1.3 SCE, Holding billion 2004 $8.9 facility facility and International billion $7.4 debt –facility $1.5 Debt $4.8 2005 Edison grade reduction $4.8 includes Co. billion(2) of increased refinanced $4.0 balance
Slide 9: Edison International Recourse Leverage
Edison 70% EIX 53% 56% 61% 69% 2002 1) 2) 8 Excludes See Long-term 60% 2003 Appendix International 50% 2004 P/J40% goal termination 6/30/2005 for non-GAAP – Consolidated valuereconciliation. guarantee. Recourse Leverage (1), (2)
Slide 10: Southern California Edison Overview
Southern One SDG&E SCE LADWP PG&E – 1) 9 50,000 More 4.7 70 2.8% 11 6% Asof TWh thousand million increase ofthe growth than 2004. square California Direct largest 13 customers over customers million miles Access U.S. previous Edison including electric load added —peak New Overview utilities in 43020
Slide 11: SCE Average Investments and Capital Expenditures
SCE Average Investments Infrastructure Devers Antelope Rancho – Mountainview SONGS Expect 2005 Five-Year Classification 2.2 2.1 1.9 1.8 Generation Transmission Distribution Recovery $ CPUC FERC Project 1) 10Transmission Distribution Generation %Total Capital 2006 Rate Rate decisions Palo Specific Vi
Slide 12: SCE Primary Growth Drivers: Rate Base
SCE Primary – Growth 2005 Rate 14.5 13.3 12.4 11.4 10.2 1) 2) 3) 11±Assuming Current $100 10 1% base Base Rate 2006 bp change Rate drivers million change increasing Base Type authorized 2007 $10 = 9.2% inGeneration of 2008 in billion in authorized SCE’s authorized authorized 42% $16.0 Return common
Slide 13: Southern California Areas of Key Infrastructure Focus
Southern Areas Infrastructure Key – Devers 12Growth Market Fair Customer SONGS 2006 Major regulatory of and General Cost Palo transmission Focus California structure Steam timely rates of Verde replacement Capital—Late decisions Rate Generator recovery development II,Edison Case—Late projects Antelo
Slide 14: Mission Energy Holding Company Asset Overview
Mission Asset Fuel MWs – Percent Recourse Assets Net Before 9,035 72% After 7,545 88% Midwest Homer 964 1) 13Coal Gas/Oil Hydro Other AsDebt MW’s Mix $12.1 $6.1 Restructuring of Profile MW Restructuring City Merchant 6/30/05. Energy Generation to and billion /billion Recourse 1,884 48% 85% Non-Recou
Slide 15: MEHC Strengthen performance: Six Initiatives
MEHC Strengthen #1 performance #6 Growth 14 – Develop Streamline – “Six the measurements aInitiatives” platform growth organizational strategy Designed andstructure, decision to Achieve processes supportObjectives models and overheads #2 – Enhance operating and asset productivity #3 – Stabilize marg
Slide 16: MEHC Midwest Generation YTD Performance
MEHC Midwest YTD % 6/30/04 Generation Average Energy $/Millions Capacity/Other Total Fuel/Emissions Revenue 1) 2) 3) 15 Change Performance Includes YTD Revenue Revenue –6/30/05 Realized Less Generation Generation % YTD (GWh)(1) fuel Homer Change Fuel $457 Revenue Costs measures costs 6/30/04 YTD $35
Slide 17: MEHC Midwest Generation Hedged Volume
MEHC 2005 Volume Midwest Homer 1) 2) 16 Balance Calendar (July-December) City –Hedged Generation Volume ofyear 4.6 year $44.94 (TWh) flat and forward 9.4 price Hedge 2006 2.4 Average $38.15 for $50.25 flat Hedge Data NiHub energy 7.2 Price 5.3 (as $40.46 (Midwest ($/MWh) $51.50 price of 6/30/05) 9.7
Slide 18: MEHC Coal Supply and Rail Deliveries
MEHC Due – Based The approximately one Percent 2005(1) Illinois Homer 1) 2) 17The Adjusted The year Illinois torailroads on percentage rail City plants –of 2006 to Coal communication Coal disruptions, six plants for facilities(2) 2007 110% 5Supply years are expected Requirements million in use in 20
Slide 19: MEHC Illinois and PJM Capacity Market Reform
MEHC Illinois – PJM Reliability 18 Decision Proposed Capacity Procurement Commerce — Market Pricing anticipated auction Market Structure Model Commission date Process inofearly (RPM) 9/062006 (ICC) proposal considering would replace energydaily and capacity capacity auction market with for competiti
Slide 20: Edison Mission Energy Wind Portfolio Target
Edison Now – MW 1,400 2009 25+ 1,200 Multiple 8 196 2 2005 Expected 19Target Production projects midwestern MW projects Installed actively Target Current 2006 1,200 MW Capital—Wind $250 US investment 2007 1,000 Portfolio regions tax Portfolio pursuing states million 2008 credits 800of per 2009 600 B
Slide 21: Edison International Dividend Policy
Edison Strong – Dividend Longer-term, 20Balancing Maintaining cash International philosophy re-initiated flow dividends targeting a competitive strong generation — at iswith abalance $.80/share centered Dividend payout the underpins dividend sheet cash ratio around: Policy inneeded December range ab
Slide 22: Appendix: Long-term Recourse Leverage Calculation
Slidecalculation Appendix long-term recourse preferred sheet The component based 21 classifications, 8: 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
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