Edison International · NYSE:EIX
Edison International — Investor Presentation (April 2017)
26 slides from Edison International's investor presentation, Apr 12, 2017
Slide 1: Edison Insights Series: California's Climate Policies and Transportation Electrification
Edison Insights Series: California’s Climate Policies and Transportation Electrification April 12, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, policy developments at the state and federal level, and other statements that are not purely historical, are forwar
Slide 3: Edison Insights Series Objectives
Edison Insights Series Objectives Series and Call Objectives Supporting Our Value Proposition • Series of conference calls and videos on Wires-Focused SCE Strategy key topics that underscore the EIX • Infrastructure replacement – safety and investor value proposition with an SCE reliability focus •
Slide 4: Today's Call
Today’s Call Speakers Topics • Objectives – Key California public policies to Pedro Pizarro, President and CEO monitor related to current 2030 GHG reduction Edison International targets and a deeper dive on transportation electrification • Key takeaways • Legal and policy foundation Kevin Payne, CEO
Slide 5: California Climate Policies – Timeline
California Climate Policies –Timeline 2006-2010 2016-2017 • CPUC authorizes Smart Meter • SB 1 (2006) – establishes • SB 32 (2016) – 40% GHG investments by IOUs (2006) California Solar Initiative targeting reduction from 1990 levels • SB 107 (2006) – accelerates 20% 1 million solar installations by
Slide 6: California Climate Policies – Future Timeline
California Climate Policies – Future Timeline 2017 2020 2050 • IOU Transportation • Reduce GHG • Once through cooling retires • Target reduction of Electrification proposals emissions to 1990 significant conventional GHG emissions to • CARB Updated Scoping levels generation 80% below 1990 Plan • 33%
Slide 7: CARB Updated Scoping Plan – January 2017
CARB Updated Scoping Plan – January 2017 First Scoping Plan Under AB 32 (2008, CARB GHG Reduction Targets 700 2014) – Policy Framework for Economy Greenhouse Gas Emissions Reductions (MMTCO2e) Updated Scoping Plan (2017) – Key 600 191 Elements • Post 2020 cap-and-trade program 500 342 • 50% renewabl
Slide 8: CARB Updated Scoping Plan GHG Reductions
CARB Updated Scoping Plan GHG Reductions 2% 35% Cap‐and‐Trade 16% Other 5% Transportation 22% 28% Industrial Electric Power 21% 25% Residential and Commercial 14% Agriculture 10% 10% 6% 6% 1990 Total: 431 MMTCO2e 2030 Proposed Total: 260 MMTCO2e Cap-and-trade effectiveness will be a key success fact
Slide 9: Cap-and-Trade Program Overview
Cap-and-Trade Program Overview • A jurisdiction-wide cap is placed on GHG emissions; over time, this cap decreases • A compliance instrument is issued by the regulatory agency administering the policy for each ton of emissions (MTCO2e) allowed under Cap the cap. There are two types: Allowances - l
Slide 10: Important Business and Policy Issues Lie Ahead
Important Business and Policy Issues Lie Ahead CARB Scoping Plan Policy Issues Concerns/Interested Parties Reduce dependence on gasoline, diesel Existing energy infrastructure may face Low Carbon Energy and natural gas declining sales and reduced infrastructure utilization Increased use of distribut
Slide 11: Unique SCE Insights
Unique SCE Insights 2016 Preliminary Renewable Resources: • Only major California all-electric investor-owned 28.3% of SCE’s portfolio utility Small Hydro • Most comprehensive transportation 2% electrification proposals Solar 26% • Assessing SCE role in best achieving CARB Geothermal Updated Scoping
Slide 12: SCE Long-Term Growth Drivers
SCE Long-Term Growth Drivers Description Timeframe/Regulatory Process Sustained level of infrastructure • Ongoing - current and future GRCs Infrastructure investment required until equilibrium Reliability replacement rates achieved and then maintained Accelerate circuit upgrades, • 2017-2020 - $2.3
Slide 13: Transportation Electrification – Early Days
Transportation Electrification – Early Days After more than 5 years of commercial Light-Duty Vehicle Electrification Forecast to Achieve CARB availability, passenger electric vehicles (EVs) GHG Targets in SCE Service Territory – 1.9 Million EVs represent only 3% of total annual vehicle 2,500 sales a
Slide 14: Links to Conventional Pollutant Reductions
Links to Conventional Pollutant Reductions • Transportation has an even Medium-Duty, Heavy-Duty and Non-Road Vehicles greater impact on air quality Contribute Significantly to NOx Emissions in SCE than on GHG emissions in Territory California – accounts for 80 percent of NOx and 95 percent of partic
Slide 15: Impacts on Disadvantaged Communities
Impacts on Disadvantaged Communities Underserved communities are disproportionately impacted by the pollution caused by transportation both to and from warehouses and factories and along major freight corridors Note: Communities are considered Disadvantaged Communities (DACs) if they are in the wors
Slide 16: 2030 Transportation Electrification Priorities
2030 Transportation Electrification Priorities Passenger vehicles (86% of target reductions) Current state Barriers to development Proposed SCE strategy • Largest GHG abatement • Limited range of BEVs and • Expand SCE’s make ready opportunity availability of away-from- approach to single family • EV
Slide 17: 2030 Transportation Electrification Priorities
2030 Transportation Electrification Priorities Medium-duty vehicles (5% of target reductions) Current state Barriers to development Proposed SCE strategy • Third-largest GHG abatement • Vehicle technology is nascent • Expand SCE’s make-ready opportunity (SCE service • Make-ready and charger approach
Slide 18: 2030 Transportation Electrification Priorities
2030 Transportation Electrification Priorities Port/other off-road (8% of target reductions) Current state Barriers to development Proposed SCE strategy • Air quality opportunity and • Make-ready infrastructure is • Expand SCE’s make-ready small GHG opportunity costly, 21% of total cost approach to
Slide 19: 2030 Transportation Electrification Priorities
2030 Transportation Electrification Priorities Heavy-duty trucks (2% of target reductions) Current state Barriers to development Proposed SCE strategy • Significant contribution to • Technology is at a very early • Expand SCE’s make-ready reducing other criteria stage approach to other vehicle pollu
Slide 20: SCE Transportation Electrification Proposals
SCE Transportation Electrification Proposals • On January 20, 2017, SCE filed with the CPUC a wide-ranging plan to increase electrification of cars, buses, medium- and heavy-duty trucks and industrial vehicles and equipment SCE proposed 6 near-term, priority-review projects and 2 longer-term, stan
Slide 21: SCE Charge Ready Program – Early Lessons
SCE Charge Ready Program – Early Lessons • Electric vehicle Charge Ready Program Phase 1 pilot approved by CPUC January 2016 and launched May 2016 Authorizes spend of $22 million on pilot implementation for charger installations and Market Education Programs ($12 million rate base) • Original conc
Slide 22: Key Takeaways
Key Takeaways California is committed to climate change policies around GHG emissions reduction and increased air quality • Broad support from elected officials and population to continue climate change leadership • Legislative bills reflect interest in further GHG reduction commitments and expanded
Slide 23: Appendix
Appendix April 12, 2017 23
Slide 24: Key Organizations involved in CA's Carbon Policy
Key Organizations involved in CA’s Carbon Policy Part of the California Environmental Protection Agency; California Air umbrella agency for SB 32 implementation; among its Resources Board major goals are to provide safe, clean air to all Californians, and reduce California's emission of greenhouse g
Slide 25: SCE Transportation Electrification Approach
SCE Transportation Electrification Approach • SCE currently supports EVs by providing a clean electric supply to fuel vehicles and a robust, modernized grid to improve reliability and quickly and easily integrate technologies that customers are adopting • Electric utilities like SCE are well suited
Slide 26: For Further Information
For Further Information For those interested in further research into California’s carbon policies and transportation electrification initiatives most of interest to investors, the following resources are recommended: CARB Updated Scoping Plan California GHG-related Executive Orders SCE Grid Moderni
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