Edison International · NYSE:EIX
Edison International — Corporate Update (April 2017)
26 slides from Edison International's corporate update, Apr 11, 2017
Slide 1: Edison Insights Series: California's Climate Policies and Transportation Electrification
April 12, 2017 Edison Insights Series: California’s Climate Policies and Transportation Electrification Exhibit 99.2
Slide 2: Forward-looking statements
April 12, 2017 2 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 forward-looking
Slide 3: Edison Insights Series Objectives
April 12, 2017 3 Edison Insights Series Objectives • Series of conference calls and videos on key topics that underscore the EIX investor value proposition with an SCE focus • This call will address key policy drivers (legislation, regulation and key agencies) influencing California greenhouse gas (
Slide 4: Today's Call Speakers and Topics
April 12, 2017 4 Today’s Call Speakers Topics Pedro Pizarro, President and CEO Edison International Kevin Payne, CEO Southern California Edison Ron Nichols, President Southern California Edison Caroline Choi, Senior Vice President Southern California Edison • Objectives – Key California public polic
Slide 5: California Climate Policies Timeline 2000-2017
April 12, 2017 5 2016-2017 • SB X1-2 (2011) – increases renewables targets to 33% by 2020 for all electric utilities • CPUC authorizes 1,325 MW of storage investments by IOUs (2013) • CPUC authorizes IOUs to own transportation electrification (TE) infrastructure (2014) • CPUC authorizes Smart Meter
Slide 6: California Climate Policies – Future Timeline
April 12, 2017 6 • Once through cooling retires significant conventional generation • New residential construction with zero net energy 2050 • Reduce GHG emissions to 40% below 1990 levels • 50% of electricity sales from renewables • 4.2 million electric vehicles CPUC target • Post 2020 cap-and-trad
Slide 7: CARB Updated Scoping Plan – January 2017
April 12, 2017 7 925 30 88 54 67 217 338 191 342 0 100 200 300 400 500 600 700 Proposed Scoping Plan Scenario Uncertainty Scenario G re en ho us e G as E m is si on s Re du ct io ns (M M TC O 2e ) CARB GHG Reduction Targets CARB Updated Scoping Plan – January 2017 First Scoping Plan Under AB 32 (200
Slide 8: CARB Updated Scoping Plan GHG Reductions by Sector
April 12, 2017 8 6% 10% 25% 22% 35% 2% CARB Updated Scoping Plan GHG Reductions Cap-and-trade effectiveness will be a key success factor in meeting CARB’s target emission reductions by sector 1990 Total: 431 MMTCO2e 2030 Proposed Total: 260 MMTCO2e Source: CARB 2017 Climate Change Scoping Plan Updat
Slide 9: Cap-and-Trade Program Overview
April 12, 2017 9 • 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 the cap. There are two types: Allowances - lowers the cost imp
Slide 10: Important Business and Policy Issues Lie Ahead
April 12, 2017 10 Important Business and Policy Issues Lie Ahead CARB Scoping Plan Policy Issues Concerns/Interested Parties Reduce dependence on gasoline, diesel and natural gas Existing energy infrastructure may face declining sales and reduced infrastructure utilization Increased use of distribut
Slide 11: Unique SCE Insights
April 12, 2017 11 Unique SCE Insights • Only major California all-electric investor-owned utility • Most comprehensive transportation electrification proposals • Assessing SCE role in best achieving CARB Updated Scoping Plan 2030 GHG targets • Seeks to be actively engaged in legislative and regulato
Slide 12: SCE Long-Term Growth Drivers
April 12, 2017 12 SCE Long-Term Growth Drivers Description Timeframe/Regulatory Process Sustained level of infrastructure investment required until equilibrium replacement rates achieved and then maintained • Ongoing - current and future GRCs Accelerate circuit upgrades, automation, communication, a
Slide 13: Transportation Electrification – Early Days
April 12, 2017 13 Transportation Electrification – Early Days After more than 5 years of commercial availability, passenger electric vehicles (EVs) represent only 3% of total annual vehicle sales and approximately 2% of total registered automobiles in California. Despite the slow progress, some tren
Slide 14: Vehicles Contribute Significantly to NOx Emissions in SCE Territory
April 12, 2017 14 Medium-Duty, Heavy-Duty and Non-Road Vehicles Contribute Significantly to NOx Emissions in SCE Territory Links to Conventional Pollutant Reductions Source: EPA National Emissions Inventory 2014 for counties in SCE territory. US DOT 2016 Non-Road & Ports category includes forklifts,
Slide 15: Impacts on Disadvantaged Communities
April 12, 2017 15 Impacts on Disadvantaged Communities Note: Communities are considered Disadvantaged Communities (DACs) if they are in the worst quartile of environmental & economic burden, as evaluated by the California EPA using CES 3.0. Freight corridors are consistent with those identified by t
Slide 16: 2030 Transportation Electrification Priorities
April 12, 2017 16 2030 Transportation Electrification Priorities Current state Barriers to development Proposed SCE strategy • Largest GHG abatement opportunity • EV total cost of ownership is competitive with subsidies (not including infrastructure) • Existing pilot program for make-readies, but th
Slide 17: 2030 Transportation Electrification Priorities: Light-duty vehicles
April 12, 2017 17 2030 Transportation Electrification Priorities Current state Barriers to development Proposed SCE strategy • Third-largest GHG abatement opportunity (SCE service area); largest air quality opportunity • Total cost of ownership of EVs alone has positive economic value (ex- infrastru
Slide 18: 2030 Transportation Electrification Priorities: Port/other off-road
April 12, 2017 18 2030 Transportation Electrification Priorities Current state Barriers to development Proposed SCE strategy • Air quality opportunity and small GHG opportunity • Electric rubber tire gantry cranes and yard tractors in Port of Long Beach terminals, and electric forklifts (warehouses)
Slide 19: 2030 Transportation Electrification Priorities: Heavy-duty trucks
April 12, 2017 19 2030 Transportation Electrification Priorities Current state Barriers to development Proposed SCE strategy • Significant contribution to reducing other criteria pollutants • Small GHG opportunity • Technology is at a very early stage • Not clear which of five different electric tec
Slide 20: SCE Transportation Electrification Proposals
April 12, 2017 20 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
Slide 21: SCE Charge Ready Program – Early Lessons
April 12, 2017 21 • 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 concept - two-phased progra
Slide 22: Key Takeaways
April 12, 2017 22 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 commit
Slide 23: Appendix
April 12, 2017 23 Appendix
Slide 24: California Agencies Involved in Climate Policy
April 12, 2017 24 California Air Resources Board Part of the California Environmental Protection Agency; umbrella agency for SB 32 implementation; among its major goals are to provide safe, clean air to all Californians, and reduce California's emission of greenhouse gases California Public Utilitie
Slide 25: SCE Transportation Electrification Approach
April 12, 2017 25 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 SC
Slide 26: For Further Information
April 12, 2017 26 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 Order