Edison International · NYSE:EIX
Edison International — 41st EEI Financial Conference 2006
35 slides from Edison International's conference presentation, Nov 6, 2006
Slide 1: Business Update, 41st EEI Financial Conference
Exhibit 99.1 Business 41st Handout November EEI Financial Update 2006 Conference, Las Vegas
Slide 2: Forward-Looking Statements
Forward-Looking This expectations does “will,” necessarily to regulations of •access; Additional Commission. reports speak 1 decisions market access governmental, risks effects supply transmission the general weather changes differ, spare presentation availability outcome cost ability risk extent di
Slide 3: Edison International - Value Drivers
Edison International - Value Drivers Integrated Platform EIX SCE EMG Value Drivers Value Drivers • Strong customer and load growth • Low-cost coal generation portfolio • Tight reserve margins keep focus on reliability • EBITDA exceeds $1 billion annually1 • $12 billion, 5-year capital investment pro
Slide 4: Southern California Edison (SCE) System Growth
System Growth Southern California Edison (SCE) 3 Capital Investment Execution Regulatory Framework Dependable Earnings
Slide 5: SCE Value Driver – System Growth
System Strong expand SCE New 90,000 88,321 77,437 80,000 70,000 60,000 63,021 – 50,000 Peak 22,000 21,934 26,000 MW 18,821 20,136 22,889 •18,000 14,000 10,000 2001 1. 2. 3. 4 New 4.4% Expect 360,000 2006 LA, Moreno 17,890 Value Growth Meter Demand 2002 Meter Riverside, customer growth –83,979 73,204
Slide 6: SCE Value Driver – Peakers
System SCE •Peakers 5 To Initiated Each “Black Capital Expected be Value toof installed install Growth to Start” investment 5in Enhance to Driver units August increase be 5Capable Capital “black at in-service capable –existing Grid System 2006 approximately available start” Investment - Reliability
Slide 7: SCE Renewable Contracts
SCE System Renewable 10-, In – SCE September 2005, 15-, Value estimates Growth SCE or Driver Contracts 20-year 2006, purchased Capital that – contract SCE System more New Investment and received than Generation Growth proposals delivered 16% proposals Execution ofContracts were tothe customers power
Slide 8: SCE Advanced Metering Initiative
System “SCE Arshad SCE Utility 7 AMI Value cited has Planning Mansoor, Growth taken Phase as Driver industry Capital an Network IV.P. selected –industry Capital leader ofInvestment Power and asleadership Investment in“2005-2006 Automatic advanced Delivery Execution position Meter & metering Best Mar
Slide 9: SCE AMI Highlights
System SCE Value Growth Driver – Capital Investment Highlights Design Field – Full Conceptual AMI Advanced 8 Meter deployment Initiative Supports testing phase testing meters of capital planned SCE’s ahead Ahead Next and planned and investment vendor of Generation Advanced to of related schedule occ
Slide 10: Benefits of SCE's AMI Initiative
SCE Value System Growth Driver – Capital Investment Capital Investment Execution Regulatory Framework Dependable Earnings SCE Benefits of SCE’s AMI Initiative Supports SCE’s strategy of modernizing its Customers infrastructure Empowers customers to manage their energy use and cost, and provides new
Slide 11: SCE Five-Year Capital Investment Forecast
System SCE Value Growth Driver – Capital Investment • .4 2.8 Peakers 2 AMI Current 1.2 100 12.0 Total 1.6 58 7.0 Distribution 2.0 Transmission 12 1.5 Generation 2.1 2.3 2.4 $ CPUC 0.8 FERC 0.4 67 8.0 Project 21 2.5 2006 In 10Five-year 2006 Billions %addition 72.62007 Rate CPUC Rate 2.6 Specific Fore
Slide 12: SCE Rate Base Growth
System SCE Value Growth Driver – Capital Investment • Expected $ Rate 16.0 12.0 10.9 11.7 12.9 4.0 8.0 CPUC 2005 0.0 GRC Growth AMI 1. (2009-2010) 11Capital 2009-2010 Plan Billions Includes 2003 14.4 10.2 Base and 2006 to Approved Rate file investment 2006 Peakers 16.3 2007 increase impact increase
Slide 13: Transmission Projects Execution
System SCE Value Growth Driver – Execution Existing Future In Project Date DPV1 NEVADA Las CALIFORNIA SCE Tehachapi Midway Antelope (PG&E) Palmdale Pardee Sylmar Rancho Loma Palm Los Santa Valley Ana San Verde 12 Service Vegas Angeles Diego Palo has Eldorado (Millions) Phoenix Total Clarita Reliabil
Slide 14: Mountainview and San Onofre Steam Generator Replacement
System SCE Value Growth Driver – Execution Mountainview •San $0.6 1 13Mountainview CPUC 969 $Began 2,150 Pending 0.6 Onofre billion MW billion MW commercial approved regulatory inNuclear -total the SGR investment placed heart (SCE SONGS project Generation operation approval ofin share SCE’s (on-time
Slide 15: Regulatory Framework
System SCE Value Growth Driver – Regulatory Framework California’s Rate Investors’ •Procurement 14 Approved General 2006 48% 11.6% Received Energy January Base common GRC Cost return Resources 2006 Rate Return and final 97% 95% of regulatory Decision Cost Operations Capital on Case ERRA equity CPUC
Slide 16: Edison Mission Group (EMG) Competitive Power Business
Low-Cost Coal Edison A 15Competitive MissionPower GroupGeneration (EMG) Business Operational/Marketing/ Trading Capabilities Cash Position Growth Opportunities
Slide 17: EMG – Low-Cost Coal Generation Portfolio
Low-Cost EMG – Generation Coal Portfolio Small Midwest March Projects Storm 70 109 50 Hardin/ Jeffers 36 Crosswinds à7,537 Homer à1,884 Ambit 40 9,637 Big Sunrise 964 San Mesa 90 95 Strong 1. 2. 16608 Includes MW 4, MW Juan Sleeping 2Total MW Wind Lake 9Point operating Coal City Wind & 305 MW Bear B
Slide 18: EMG – Value Drivers
Low-Cost EMG – Value CoalDrivers • Expansion – 1. EMG 2. 17Low-cost Strong Illinois Several Balance Thermal/IGCC $1.18 Effective Match Forward RPM $1 Intend Investment Expanded Contracted Nationwide Seebillion Cashguidance appendix Settlement: billion and operational to duration BGS bilateral use Po
Slide 19: EMG – Wind Portfolio Development
Development EMG – Wind Portfolio Expertise Wind No. Projects In-service supported Under •– Purchased Optioned credits Total 1. 2. 18Projects 29 Late-stage Development of MW Turbines 14 Project construction turbines and Size 608 Turbines in have by 9Turbines depreciation 266 late-stage –development:
Slide 20: EMG – California Thermal Generation Opportunities
EMG – California Thermal Generation Opportunities Projects Recontracting • Big 4 projects contract extension (602 MW) -Kern River - 5-year market-rate contract approved by CPUC in May 2006 -Other Big 4 contracts expire: December 2007 Natural Gas-Fired (Sycamore); April 2008 (Watson); May 2009 (Midwa
Slide 21: EMG/BP Carson Hydrogen Power Project Overview
-•EMG/BP 20 Petroleum Hydrogen Captured Provides–up Captures 4CO2 Carson gas coke million to used 500 transported converted Hydrogen tons MW to fuel of ofto CO gas by new, Power hydrogen pipeline turbines 2 clean perProject year generating to and tooilfields generate Overview CO2 –capacity and about
Slide 22: EMG Planned Growth Capital Expenditures
EMG Planned $ 200.0 300.0 295 400.0 500.0 600.0 31 100.0 2006 0.0 Growth Plant Environmental •Potential 21 Wind Thermal Environmental Millions 252007 Capex –Environmental Growth investments Capital $Expenditures Additional 281 investments 614 2008 11$343 Expenditures 559 2009 expenditures 1222 (2008
Slide 23: EMG Environmental Compliance
EMG Environmental Clean •standard• units The 22Useoptimal to of -Air Coal reduce lower Regional Mercury Environmental Fleet sulfur NOx• Rules Environmental Rule HazeCarbon coal• Baghouses Possible (CAMR)Clean Activated Compliance Options Control? toCompliance reduce Carbon Air plan Particulate Inter
Slide 24: Performance: Year to Date through September 30, 2006
Performance Balance 30, Year to Date Performance through September 23 Sheet Strength 2006 Growth Dividends Shareholder Returns
Slide 25: Edison International - Earnings Performance
Edison International - Earnings Performance Core Earnings (Loss) (in millions) (Unaudited) Year-to-Date September 30, Southern California Edison Company 2006 2005 Change Edison Mission Group $513 $507 $6 Mission Energy Holding Company Edison Capital 265 233 32 Edison Mission Group Total 44 77 (33) E
Slide 26: EMG Operating Performance Update
Edison International – EMG Operating Performance Update Sep 30,months ended Three Sep 30, Nine months ended Midwest Generation 2006 2005 Change % 2006 2005 Change % Generation (in TWh) Equivalent Availability 8.4 8.1 0.3 3.7% 21.2 22.4 (1.2) (5.4%) Forced Outage Rate (EFOR) 89.6% 87.9% 1.7% 80.9% 76
Slide 27: EMG – Hedge Program
Performance EMG – Hedge Program Guidance as of November 3, 2006 26 Balance Sheet Strength Growth Dividends Shareholder Returns
Slide 28: EMG – Hedge Program Status
Performance EMG – Hedge Program Balance Hedge Program status at September 30, 2006 Sheet Strength Growth Dividends Shareholder Returns Remainder of Midwest Generation 2006 2007 2008 2009 Electricity Hedge Contracts (in TWhs) Energy Only Contracts Load requirements service contracts (estimated) 5.1 1
Slide 29: Edison International - Earnings Guidance
Edison International - Earnings Guidance Performance Balance Sheet Strength Growth Dividends Shareholder Returns Core EPS: Guidance Effective as of November 3, 2006 • SCE 2006 2007 • EMG $1.88 $1.97 – $2.07 • EIX Holding Co. 1.14 1.21 – 1.51 Core (0.11) (0.13) $2.91 $3.05 - $3.45 Non-Core Items 1: •
Slide 30: Edison International – Strategic Plan
Performance Edison International – Strategic Plan Foundation Organic •Produces 29 Strong Growth Competitive Significant Business Upside utility earnings flexibility long-term power operating potential generation forearnings future in from a large growthBalance business and competitive and cash rapid
Slide 31: Appendix
Appendix ote ALIVONAL*
Slide 32: Appendix – Non-GAAP Reconciliation Core Earnings Per Share
Appendix – Non-GAAP Reconciliation Core Earnings (Loss) Per Common Share 31, December Ending Year Southern California Edison Company 2005 2006 2007 EMG $1.82 $1.88 -$2.07 $1.97 EIX parent company and other 1.42 1.14 -1.51 1.21 EIX Consolidated Core Earnings (0.11) (0.11) (0.13) Non-core items $3.13
Slide 33: Appendix – EBITDA Edison Mission Group
Appendix – EBITDA Edison Mission Group ($ millions) 2005 2006 2007 Net income Actual Outlook Forecast Add-back (Deduct): $442.4 $364.2 $444.51 Cumulative effect of change in accounting Discontinued operations 1.2 (0.4) - Income (Loss) from continued operations (29.5) (75.5) - Interest expense 414.1
Slide 34: Assumptions
Assumptions regulations, under inventory directly •the 33Actual Average The NAPP, Fuel NAPP Homer amount certain Costs in Coal future “Northern costs. hedge Units City contractual include Detail agreements. is ofFuel afacilities. coal price 1proxy and Appalachian”; Costs coal under reflects 2,Btu fo
Slide 35: EMG – Liquidity
EMG – Liquidity Available Liquidity ($Profile millions) Collateral Sources EME Revolver 12/31/05 9/30/06 MWG Revolver $98 $494 Cash & Short term investments¹ 325 465 1,869 2,309 • /30/06 Credit 1,200 $ 800 1,000 9 0 $217 200 400 $550 600 Potential 1. 2. 3. 34Cash Strong Enhanced millions Excludes In
Edison International — 41st EEI Financial Conference 2006 on 6ix