Edison International · NYSE:EIX
Edison International — Investor Presentation (March 2007)
38 slides from Edison International's investor presentation, Mar 5, 2007
Slide 1: Business Update Handout March 2007
Exhibit 99.1 Business March Handout 2007 Update
Slide 2: Forward-Looking Statements
to Forward-Looking This expectations does “will,” necessarily differ, presentation not“could,” • changes the directly or involve ability that ofand otherwise “would,” relate projections contains Statement Edisonrisks Southern toCalifornia and a“should,” could “forward-looking historical about uncert
Slide 3: Edison International Value Drivers
Edison EIX •SCETight Strong Integrated Value system International customer Drivers reserve Platform and- -load margins Value growth Drivers keep focus on reliability • Proposed $17 billion, 5-year capital investment plan1 •EMG 52%-Value 25% 15% 7% 1% Strengthened 3-year Cost Procurement Financial Ea
Slide 4: Edison International 2006 Financial Highlights
• RecordInternational Edison [Graphic high Appears net income Here] – 2006of Financial approx. $1.2 Highlights billion or $3.58 per share vs. guidance of $3.19 per share – Core1 earnings of $3.07 per share exceeded guidance of $2.91 per share •– Advanced EIX Growth Major EMG MOU Maintained SCEdivide
Slide 5: Southern California Edison (SCE)
System Investment Capital Reliability Regulatory Dependable Southern 4 Growth California Framework EarningsEdison (SCE)
Slide 6: Strong SCE System and Load Growth
Strong SCE System Capital Reliability Regulatory Dependable Value Customer Investment Growth Driver Framework Earnings and – System Load Growth GrowthKeeps Statewide Focus on the Need to Expand and Strengthen the Utility Infrastructure SCE Growth 1 New 90,000 22,000 26,000 Peak MW Forecast 18,821 20
Slide 7: SCE Leadership in Renewable Energy
System Capital Reliability Regulatory Dependable State SCE’s 2005 Bidder •SCE – 6 Agreement Can In Serves Secures Projects 1Intend MW 2006, Value Leadership Signs law renewable deliver current negotiations Investment Growth to test 16–17% requires at to SCE Largest develop Driver Framework Earnings
Slide 8: SCE Reliability: New Generation Contracts
System Capital Reliability Regulatory Dependable •SCE – 7 All-Source New NRG Blythe CPUC On-line Shortlist Notification Contracts Solicited Summer Fast Standard In CPUC 10/06, Value Leadership Track Generation received Investment Growth approved decision Energy has by notification 2007 Track up Driv
Slide 9: SCE Energy Efficiency and Demand Response
System Capital Reliability Regulatory Dependable SCE During •– 8 During SCE Regulatory Time-of-Use Saved Reduced Help Value Leadership iscustomers offers the Investment Growth more committed thegreenhouse past Driver Framework Earnings next amechanisms than wide (TOU) 5in2years, save –4Energy years,
Slide 10: Capital Investment Plan
Dependable SCE System Capital Reliability Regulatory Value Investment Growth Driver Framework Earnings – Capital Investment • Proposed five-year capital spending plan at approximately $17 billion1 driven by system growth, infrastructure replacement, transmission programs for renewables and advanced
Slide 11: Rate Base Growth
12%+ SCE System Capital Reliability Regulatory •Dependable 21.0 Rate Rate18.0 Increasing PlanValue Base Annual to base Investment Growth file 15.0 Driver Framework growth rate Earnings 2009 Growth 12.0 base –GRC of 9.0 Capital primarily 12%+ $20.4 6.0 Notice 3.0 Investment annually $17.6 0.0 of from
Slide 12: Transmission Projects
System Capital Regulatory Dependable •SCE NEVADA Las Midway Palmdale Antelope Territory Windhub Vincent Mira Serrano Los Ana Valley San Santa Existing 1 2007-2011 Tehachapi Renewables Rancho Reliability Total DPV2 Economics GRAND 11Tehachapi New Part Vegas Angeles Diego Palo Value Leadership Devers
Slide 13: San Onofre Steam Generator Replacement and Peakers
SCE Capital Reliability Growth System Regulatory Dependable Five •San 12 SCE CPUC Initiated Capital First 2,150 $Unit 0.5 Onofre “Black Value 2Responds expected billion MW Investment SGR Approved Investment inDriver Framework Nuclear Earnings Start” August total in - SGR in-service service to(SCE –P
Slide 14: Advanced Metering Infrastructure Schedule
Design System Capital Reliability Regulatory Dependable SCE 2005 Revised Value Leadership 2006 Phase Investment Growth Pre-Deployment 2007 Driver Framework Earnings Deployment 2008 in–Advanced Capital 2009Phase 2010 Investment Metering 2011 2012Infrastructure 2013 (AMI) Initiative Schedule1 Phase •A
Slide 15: Regulatory Framework
SCE Value System Reliability Growth Driver – Regulatory Framework Capital •Customer 14 A General Plan 2006 48% 11.6% 6% Investment Dependable Framework Regulatory California’s Rate Investors’ ROCE Procurement Received 2008 Energy Base to common GRC Cost COC for residential return file Resources Rate
Slide 16: Edison Mission Group (EMG)
Edison Coal Operational/Marketing/ Cash Growth A 15Competitive Generation Position Mission Opportunities Power GroupGeneration (EMG) Trading Capabilities Company
Slide 17: EMG Generation Portfolio
IowaJuan EMG Coal Operational/Marketing/ Cash Growth Strong March Washington KRCC California Sycamore Midway Watson Sunrise Westside New San Storm Mexico Generation Position –Lake Point Operating 150 Generation 189 286 Opportunities Sunset Mesa 76 150 MW 109 MW MW 70MW 90 MW 113 MWPlatform MW Portfo
Slide 18: Low-cost Coal Generation Drives Strong EBITDA
Low-cost EMG Coal Operational/Marketing/ KeyCoal ValueGeneration Drivers DriverCashtoGrowth StrongGeneration EBITDA Trading Capabilities Position Opportunities • EMG Adjusted EBITDA in excess of $1 billion for last two years, also forecasted for 2007 1 •Strong Effective More Experienced/value Long-t
Slide 19: Hedging Status
Hedging EMG Coal Operational/Marketing/ Hedging ManagesStatus Earnings Variability Cash Growth Gross Generation Margin for Trading 2007 and Capabilities 2008 Significantly Position Opportunities Hedged As of December 31, 2006 1 2007 2008 2009 Midwest Electricity Energy Only 1 1 Contracts Only Genera
Slide 20: Operational, Marketing and Trading Capabilities
EMG Coal Edison •(EMMT) – ($Millions 150 200 50 100 2 0 EMMT 19004 Significantly Provides Maximize EMMT Trading Originally Market Illinois Expanding RPM Leverage $23 $130 Operational/Marketing/ 2005 – Mission settlement Trading Operational, Provides BGS transitioning primarily Significant pre-tax) 2
Slide 21: Midwest Generation Environmental Agreement
Midwest Coal Provides •– 20Achieves Agreement Comprehensive Helps Emission Agreement Mercury NOx SO2 Illinois Operational/Marketing/ ––continue emissions emissions Reasonable Gen EPA –specified credit 90% filed supported Environmental assistance good selling agreement removal under of ofemission Cer
Slide 22: Environmental Compliance Plans
Environmental Coal EMG Phase •Shutdown 21 Waukegan Will Installation Flue Estimated Homer Evaluating Operational/Marketing/ Environmental County 321Gas –City Reduction of Desulfurization cost 6compliance of Small will 1(100 Compliance Activated primarily &approx. comply 2MW) Units (310 of Compliance
Slide 23: Wind Projects and Development Pipeline
In-Service Coal •Strategic Wind No.Accelerated Contributes Objective Leverages Growing Production Mainly ofOperational/Marketing/ Energy Project Projects long-term Importance RPS 9issuccessful 274 tax Portfolio to Development depreciation toSize requirements portfolio attain credits Under contracts
Slide 24: EMG Wind Portfolio by Region
EMG’s Coal Operational/Marketing/ Cash Growth Minnesota Wyoming Utah Iowa Wisconsin Illinois Maine New Pennsylvania Maryland West Oklahoma Green •Texas 23 EMG’s Diversified In-Service Construction Pipeline York Mexico Generation Virginia Position –Wind Opportunities In Wind –Service 169 142 60 100 3
Slide 25: Natural Gas and Thermal Opportunities
EMG Coal Natural Recontracting Thermal Potential – 24Assets Watson Walnut Will Kern Sycamore Midway-Sunset Sun Opportunity Some BidOperational/Marketing/ on –Valley be River Thermal Gas-Fired Gas regions complement Generation Development two Gas Creek selective – PPA –Acquisition –recent –Developmen
Slide 26: IGCC and Other Projects
EMG Coal IGCC, Other Illinois California EMG/BP – Agreement Projection Actively 25Awarded Target Petroleum Conducting Goal Operational/Marketing/ –States with toIGCC operating seeking hydrogen file Agency $90 with Carbon coke application engineering Projects million Illinois complementary fuel, date
Slide 27: Balance Sheet Strength, Performance and Shareholder Returns
Balance Performance Shareholder Dividends Growth Year 26 to Date SheetReturns Performance Strength Through December 31, 2006
Slide 28: Earnings Performance: Earnings Per Common Share
Edison International – Earnings Performance Earnings (Loss) Per Common Share (Unaudited) December Year Ended 31, Southern California Edison Company 2006 2005 Change Edison Mission Group: $ 1.89 $ 1.82 $ 0.07 Mission Energy Holding Company Edison Capital 1.03 1.17 (0.14) Edison Mission Group Total 0.
Slide 29: Earnings Performance: Core Earnings
Edison International – Earnings Performance Core Earnings (Loss) (in millions) (Unaudited) Year Ended December 31, Southern California Edison Company 2006 2005 Change Edison Mission Group: $ 618 $ 595 $ 23 Mission Energy Holding Company Edison Capital 336 381 (45) Edison Mission Group Total 88 82 6
Slide 30: EMG Operating Performance Update
Edison International – EMG Operating Performance Update Midwest Generation 2006 2005 Change % Generation (in TWhs) Equivalent Availability 28.9 31.0 (2.1) (6.8%) Forced Outage Rate (EFOR) 79.3% 79.6% (0.3%) Average Cost of Fuel ($/MWh) 7.9% 7.8% 0.1% Flat Energy Price – Nihub($/MWh) 13.19 12.40 0.79
Slide 31: Earnings Guidance
Edison International – Earnings Guidance Guidance 2007 Core Earnings: Affirmed 02/28/07 • SCE • EMG $ 1.97 $2.07 • EIX Holding Co. 1.21 1.51 Core (0.13) Non-Core Earnings: $ 3.05 $3.45 • SCE • EMG - Total - 30 $ 3.05 $3.45
Slide 32: Appendix
Appendix iu Py epson.
Slide 33: Non-GAAP Reconciliation
Edison International – Non-GAAP Reconciliation Year Ending December 31 Core Earnings: 2005 2006 2007 •SCE •EMG $ 1.82 $ 1.89 $1.97 – $2.07 •EIX Holding Co. 1.42 1.30 1.21 – 1.51 Core (0.11) (0.12) (0.13) Non-Core Items: $ 3.13 $ 3.07 $3.05 – $3.45 •SCE – Regulatory and tax items •SCE – Generator set
Slide 34: Edison Mission Group Adjusted EBITDA
Edison ($ Millions) Mission Group – Adjusted EBITDA 2005 2006 2007 Net Income Actual Actual Forecast Addback (Deduct): $ 443 $ 432 $444 1 Cumulative effect of change in accounting, net of tax Discontinued operations 1 (1) — Income (loss) from continuing operations (30) (97) — Interest expense 414 33
Slide 35: EMG Available Sources of Liquidity
EMG Available ($ Sources EME MWG Cash •$2,292 1 34$1 During Excludes millions) billion & Revolver –Revolver $3,149 Liquidity Short 12/31/05 2007, Liquidity $698 of term credit cash $98 325 million Profile 12/31/06 1,869 $473 is facilities 495 expected and 2,181 $73 between investments¹ tomillion dec
Slide 36: EMG Capital Expenditures
EMG – Capital Expenditures Planned Expenditures1 Plant/Corporate 700 •Potential 2007 1 for purchased. 35Additional Balance Midwest Evaluating Subsequent delivery 600 - 2009 2008 500 Expenditures of Gen 2009 Turbine in wind growth plant FGD 400 to2008 environmental Capex December $1,046 300 turbines
Slide 37: EMG/BP Low Carbon Electricity Project Overview
-•EMG/BP Electricity Low Carbon Fuel Gasification Hydrogen H2 To Refueling Enhanced Oil CO2 36 Petroleum Hydrogen Captured Provides Captures Refinery Purification (Petroleum Carbon Capture –oil Station Power up 4Grid CO2 Carson gas coke million Electricity recovery to used 500 transported Coke) Stat
Slide 38: Renewable Portfolio Standards (RPS)
15% Renewable Portfolio Standards (RPS) (2020) 40% 15% 25% 10% (2017) (2015) (2025) (2013) 10% MA 4% (2009) (2015) RI 16% (2020) 25%(2013) CT 10% (2010) 20% 10% 18%(2020) NJ 22.5% (2020) (2015) (2010) 8% 10% DE: 10% (2019) 20% (2013) (2010) (2015) MD: 7.5% (2019) DC: 11% (2020) 15% 20% (2025) 10% (2
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