Edison International · NYSE:EIX
Edison International — Debt Investor Presentation (August 2002)
15 slides from Edison International's debt investor presentation, August 2002
Slide 1: August 2002
August 2002 August 2002 Page 0
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information about future sources and uses of cash and other statements about future events. The words “expect,” “forecasted,” and “anticipate” identify some of the forward-looking statements. Forward-looking information involves r
Slide 3: EIX Organizational Structure
EIX Organizational Structure Southern The Mission California Edison Group Company Mission Energy Edison Capital Holding Company Edison Mission Energy August 2002 Page 2
Slide 4: Southern California Edison Update
Southern California Edison Update • Regulatory environment improving with growing record of supportive decisions – PROACT – Utility Retained Generation – PBR Extension/ERAM – Historical Procurement Charge (Interim) • Pending state law (AB 57) supports timely procurement cost recovery (trigger for ma
Slide 5: Procurement OIR Proceeding
Procurement OIR Proceeding • Testimony and hearings in May, June and July; briefings completed August 5 • SCE’s major recommendations: – Return to investment grade (a prerequisite) – Predetermined rules and protocols to replace after-the-fact reasonableness review (upfront standards, compliance fili
Slide 6: AB 57 - Pending Legislation Governing Utility Procurement
AB 57 - Pending Legislation Governing Utility Procurement • Urgency legislation passed by California Senate and Assembly, effective immediately if and when Governor signs • Commission adopted procurement plans shall: – Eliminate the need for after-the-fact reasonableness reviews of utility procureme
Slide 7: Other Pending CPUC Decisions
Other Pending CPUC Decisions • 2003 CPUC GRC – $240 million revenue request (7% of overall $3.3 billion SCE Distribution revenue requirement) – Primarily a capital-focused case seeking cost recovery for accelerated infrastructure replacement and higher depreciation expense – ORA granted a four-month
Slide 8: Cash and Liquidity Southern California Edison
Cash and Liquidity Southern California Edison • Cash balance at June 30, 2002 was $840 million and $1.1 billion as of July 31, 2002 • Significant debt maturities through 2003 are: – $200 million of 5 5/8 FMB (10/02) – $600 million of Term A Notes (3/03) – $125 million of 6 1/4% FMBs (6/03) – $1 bill
Slide 9: Edison Capital Update
Edison Capital Update • Cash flow outlook has stabilized as settlement agreement is implemented • Credit ratings improving, but not fully restored • Paid down remaining $150 million of bank debt 3 months early • Redeployed staff based on current business needs • Contributed earnings of $31 million t
Slide 10: Sources and Uses of Cash
Sources and Uses of Cash ($ Millions) 6 Months Ended 12 Months Ended Edison Capital June 2002 Dec. 2002 Dec. 2003 Beginning Cash Balance 224 1 315 Sources: Monetization of Tax Benefits 280 199 Other 30 71 Total 310 270 Uses: Funding Commitments 54 38 Debt Maturities 140 — Interest Expense 14 11 Oper
Slide 11: Edison Mission Energy Liquidity Update
Edison Mission Energy Liquidity Update ($Millions) Liquidity at Unused bank lines $616 July 31 Available cash 34 Total Liquidity $650 Bank Line • $538 million of EME’s $750 million in credit lines mature on Renewal September 17 – process of seeking renewal Additional Sources • Monetization of tax be
Slide 12: Rating Triggers
Rating Triggers EME - Immediate ($Millions) Impact of Downgrade $12.7 Counterparty trade agreements and emissions Below Investment Grade as of 7/31/02 $10.1 First Hydro hedge agreements $48.0 Equity requirement for CBK project in Philippines $70.8 Ratings MWG – Cash Traps S&P Moody’s BBB- Baa3 No ca
Slide 13: Sources and Uses of Cash
Sources and Uses of Cash ($ Millions) At December 31, 12 Months Ended Edison Mission Energy 2001 Dec. 2002 Dec. 2003 Beginning Cash and Cash Equivalents 25 224 Distributions from Consolidated Operating Projects 1 Edison Mission Midwest Holding (Illinois Plants) 138 48 2 EME Homer City (Homer City Fa
Slide 14: Sources and Uses of Cash
Sources and Uses of Cash ($ Millions) 6 Months Ended 12 Months Ended Mission Energy Holding Company June 2002 Dec. 2002 Dec. 2003 Beginning Cash Balance1 0.9 89.5 Sources: Monetization of Tax Benefits 90.6 65.0 Interest Income 1.1 5.0 Total 91.7 70.0 Uses: O&M 0.8 0.1 Interest Expense1 2.4 (6.8 ) To
Slide 15: Sources and Uses of Cash
Sources and Uses of Cash ($ Millions) 6 Months Ended 12 Months Ended Edison International June 2002 Dec. 2002 Dec. 2003 Beginning Cash Balance 34.2 166.7 Sources: Monetization of Tax Benefits 450.1 64.3 Dividends Primarily From O&M Services 37.4 — Interest Income 2.0 5.9 Total 489.5 70.2 Uses: Retir
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