Edison International · NYSE:EIX
Edison International — Bernstein's Strategic Decisions Conference 2015
14 slides from Edison International's conference presentation, May 27, 2015
Slide 1: Bernstein's Strategic Decisions Conference
Bernstein’s Strategic Decisions Conference Ted Craver, Chairman and Chief Executive Officer May 27, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-looking statements. T
Slide 3: Our Business Platforms
Our Business Platforms Edison International Southern California Edison Edison Energy Regional wires-focused electric utility Nationally-focused new businesses Serves nearly 14 million residents Commercial & industrial solar 50,000 square-mile service area Competitive transmission Energy services May
Slide 4: EIX is Ready for Industry Change
EIX is Ready for Industry Change Long-Term Industry Trends Strategy • Public policy prioritizing • SCE environmental sustainability – Invest in modernizing the grid • Accelerating technology – Productivity improvements to help advancement facilitating contain customer rates conservation and self-gen
Slide 5: EIX Strategy Should Produce Superior Value
EIX Strategy Should Produce Superior Value Sustainable Positioned for Earnings and Dividend Growth Transformative Change Rate Base and Core Earnings Growth: SCE Focus on Lower-Risk Energy • 7 – 9% rate base growth through Delivery 2017 • Only own 20% of generation Constructive Regulatory Structure:
Slide 6: SCE Historical Rate Base and Core Earnings
SCE Historical Rate Base and Core Earnings ($ billions) 2009 – 2014 CAGR Rate Base 9% $23.3 Core Earnings 12% $21.0 $21.1 $18.8 $16.8 $15.0 2009 2010 2011 2012 2013 2014 Core $2.68 $3.01 $3.33 $4.10 $3.88 $4.68 EPS May 27, 2015
Slide 7: SCE Rate Base Forecast
SCE Rate Base Forecast ($ billions) Request Forecast 7-9% growth in 2015 – 2017 rate base Range $28.4 • Incorporates January 2015 GRC update $26.0 • Excludes Coolwater-Lugo transmission $23.6 project • Excludes SONGS regulatory asset • FERC rate base is approximately 23% of SCE’s rate base forecast
Slide 8: EIX Annual Dividends Per Share
EIX Annual Dividends Per Share $1.67 Eleven Years of Dividend Growth $1.42 $1.35 $1.28 $1.30 $1.24 $1.26 $1.22 $1.16 $1.08 $1.00 $0.80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EIX targets a payout ratio of 45 – 55% of SCE core earnings and plans to return to target payout ratio in
Slide 9: SCE Capital Expenditures Forecast
SCE Capital Expenditures Forecast ($ billions) Distribution Transmission Generation $4.6 $11.5 – $13.1 billion $4.4 forecasted $4.1 capital program 2015-2017 • Growth driven by infrastructure replacement, reliability investments, and public policy requirements 2015 2016 2017 2015-17 Total Requested
Slide 10: Distribution Grid of the Future
Distribution Grid of the Future Current State Future State One-Way Electricity Flow Variable, Two-Way Electricity Flow • System designed to generate • Distribution system at the center of electricity from large central plant the grid • Very few distributed energy • System designed to serve variable
Slide 11: New Technology Grid Impacts
New Technology Grid Impacts 1 3 1 2 1 2 Future state—from elctro-mechanical to 1 digital 1 More automated and digital, with more sophisticated voltage 2 control and protection schemes 1 2 Facilitates increasing distributed resources & two-way power flow 3 Cyber mitigation must be included May 27, 20
Slide 12: The Future of California Energy Policy
The Future of California Energy Policy January 2015, Governor Brown’s inauguration speech outlined environmental objectives for 2030: • Increase renewables (RPS) to 50% • Reduce petroleum use in cars by 50% • Double efficiency of existing buildings Utility Role Renewables Electric Energy Vehicles Ef
Slide 13: SCE Distribution Resources Plan
SCE Distribution Resources Plan AB 327 Requires Utility Submissions of Distribution Resources Plans in July, 2015 to Integrate Increasing Penetration of Distributed Energy Resources • Optimal locations for Distributed Energy Resources • Move utilities towards seamless integration of distributed gene
Slide 14: Bernstein's Strategic Decisions Conference
Bernstein’s Strategic Decisions Conference May 27, 2015
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