Edison International · NYSE:EIX
Edison International — Investor Presentation (June 2007)
45 slides from Edison International's investor presentation, Jun 7, 2007
Slide 1: Business Update June 2007 Handout
Exhibit 99.1 Business June Handout EDISON 2007Update INTERNATIONAL®
Slide 2: Forward-Looking Statements
Leading Forward Statements not differ International’s represent 1 purely EDISON materially the Looking our historical, contained Way expectations 2006 from in Statements ElectricitySM Form are INTERNATIONAL®in current this forward-looking 10-K only presentation expectations. as and ofsubsequent the
Slide 3: What's New
Leading Edison Suzlon MW New SCE forecasted. Although company Bid 2 EDISON evaluation of expanded meter Wind International turbine the is DPV2 connections INTERNATIONAL® evaluating Way Energy in its capacity has in process agreement ElectricitySM received –Corporation What’s its for infor options 20
Slide 4: Strong Foundation, Key Messages
Leading Edison Strong Consolidated Expect More Pipeline 1,563 Targeting EMG MWG Positive CPUC SCE SCE’s 1 E 3 DISON Seewas than appendix Leadership Successful MW “smart” and recognizes is 1st core1 International Regulatory the of considering recognized INTERNATIONAL® portfolio Quarter 600 Homer of n
Slide 5: First Quarter 2007 Financial Highlights
Net income Leading Edison International the increased Way in ElectricitySM –29% 1Q 2007 to $333 Financial millionHighlights or $1.01 per share Core1 earnings grew 61% to $0.90 per share over first quarter 2006 SCE’s core1 earnings were up 22% primarily from the impact associated with last year’s del
Slide 6: Tight Integrated Platform and Value Drivers
TightIntegrated Leading Edison EIX SCE EMG Strong Value system Value customer International theDrivers Way Drivers reserve Platform and in ElectricitySM –load margins Value growth Drivers keep focus on reliability Proposed $17 billion, 5-year capital investment plan1 52%- -of 25% 15% 7% 1% Strengthe
Slide 7: Southern California Edison (SCE)
Leading Southern An 6 Investor-Owned EDISON the California Way in ElectricitySM Edison Electric(SCE) INTERNATIONAL® Utility
Slide 8: SCE Value Driver: System Growth
SCE Value Leading theDriver Way in– ElectricitySM System Growth SCE Growth1 New Meter 75,626 87,708 83,979 77,437 73,204 63,463 50,000 60,000 70,000 80,000 90,000 Peak 2002 23,517 22,889 21,934 20,762 20,136 18,821 10,000 14,000 18,000 22,000 26,000 SCE’s Forecast Demand 2003 service 2004 Connection
Slide 9: SCE Value Driver: Renewable Energy Leadership
Leading State SCE’s Can Serves 2005 Bidder Bid Agreement Secures The Projects Expanded SCE E 8 DISON evaluation wind deliver Value –law expanded entered signs renewable current the 16 negotiations at to the INTERNATIONAL® requires project, –Geothermal nation’s least largest be Driver with more 17% W
Slide 10: SCE Value Driver: All-Source Contracts
Leading All-Source Contracts New Solicited Summer NRG Fast Blythe Standard On-line Shortlist Notification In CPUC SCE E 9 DISON 10/06, Track Value leadership Generation received decision has Energy by the 2007 notification Track up SCE INTERNATIONAL® totaling cover provided August Driver RFO Way to
Slide 11: SCE Value Driver: Energy Efficiency
Leading Saved Reduced During Help SCE Time-of-Use Regulatory Recognized EDISON 10 Value is offers customers more committed the the greenhouse INTERNATIONAL® past next Driver amechanisms as Way than wide (TOU) a5save 2leader 4in years, years, –to array billion ElectricitySM Reliability rates, an gas
Slide 12: SCE Proposed Five-Year Capital Investment Plan
Leading SCE Proposed $ $2.4 $0 $1 $2 $3 $4 2007 Current % Billions $2.8 Growth 2008 Forecast the Five-Year $$5 2009 3.9 Way Driver $4.2 2010 by in ElectricitySM Capital Classification –$4.0 Investment 2011 Spending Plan Edison SmartConnectTM Generation 7 1.2 52 9.0 Distribution 25 4.3 Transmission 1
Slide 13: SCE Rate Base Growth
SCE Growth Leading the Way Driver in ElectricitySM – Investment Forecast SCE Rate Base 2006-20111 $ Includes $17.6 2006 Approved Rate 1 maintaining approval EDISON 12Billion +%base 2007 $18 Compound of INTERNATIONAL® growth 2009 $14.5 impact 2008 DPV2 project GRC $15 2009 provides of on Annual permi
Slide 14: Transmission Project Capital Investment
Project Leading New Midway CALIFORNIA NEVADA Los Pardee Rancho Vincent Palmdale Antelope Santa Serrano SCE Las Lugo Mira Eldorado Palm Devers Mohave Valley Palo Phoenix ARIZONA San Existing DPV2 Tehachapi Vegas Angeles Diego Verde Value Service transmission Loma Springs Ana Clarita &Name Vista the (
Slide 15: Generation Capital Investment
Leading Five Initiated Capital Four San 2,150 Unit $ SCE CPUC 140.5 EDISON Onofre 2“Black Value responds of billion MW SGR approved Investment five the in August total Driver Nuclear in Way units Start” –INTERNATIONAL® SGR to service (SCE SONGS peak in expected –Peakers 2006 forecast project Electri
Slide 16: SCE Advanced Metering Infrastructure Schedule
2005 Value Leading SCE 2006the2007 Driver Way2008 in– ElectricitySM Capital 2009 2010 Investment 2011 2012 2013 Revised Schedule1 Design Pre-Deployment Deployment AMI Pre-Deployment, Full Capital deployment, Initiative Phase investment Phase Ahead Phase planned which preliminarily of began Schedule
Slide 17: Constructive Regulatory Environment
Leading Constructive Rate General twice 2006 Plan Investors’ 11.6% 11.8% CPUC Procurement Energy Customer Only California’s 16 EDISON to Base GRC limited return ROCE isfile Efficiency Resources Rate the considering Rates Return Decision 2009 regulatory Way INTERNATIONAL® rate Cost Regulatory on Case
Slide 18: Edison Mission Group (EMG)
Leading Edison A 17Competitive EDISON Mission the Way INTERNATIONAL® Power Group in ElectricitySM Generation (EMG) Company
Slide 19: EMG Operating Platform
Leading EMG Washington Iowa Wind Minnesota Illinois Natural California Coal Pennsylvania West 1,884 40 Virginia 109 75 Growth Gas MW the MW/50 MW/36 MW Way 70Driver 305 964MW MW in MW MWElectricitySM –Coal (UC) Operating (UC) 5,613 MW Platform EMG Generation Fuel Mix1 Coal MW % Natural Gas 7,537 79%
Slide 20: Low-cost Coal Generation Key to Strong EBITDA
Low-cost Leading EMG – Key the Coal Way Value Generation inDrivers ElectricitySM Driver to Strong EBITDA EMG Adjusted EBITDA in excess of $1 billion for last two years, also forecasted for 20071 Strongefficient Effective More Experienced/value Long-term Financial Operational management Flexibility e
Slide 21: EMG Midwest Generation Fleet
$46.19 Leading EMG Midwest •Homer Average 2004 $/MWh $0 $20 $40 $60 $31.20 $45.55 Six merchant Plants Merchant Baseload 2005 Growth $19.60 $33.15 $33.00 City dispatch the Realized Generation 2006 plant coal WayDriver $11.60 $12.40 $13.19 coal plant with into in Energy ElectricitySM plants –PJM, dire
Slide 22: EMG Hedging Status
Hedge–Program Leading EMG Hedging the WayStatus Status in ElectricitySM at March 31, 2007 Midwest Generation Energy Only Contracts of 2007 Remainder 2008 2009 GWh Average price/MWh 11,968 10,838 2,048 Load Requirements Services Contracts $48.32 $61.37 $60.00 Estimated GWh Estimated average price/MWh
Slide 23: Favorable Capacity Market Trends
FavorabletheEMG Leading WayCapacity in ElectricitySM Market Trends EMG 2007-2008 PJM West Capacity Auction Results Net MW Accepted at $40.80 per MW-day1 Midwest Homer 0 PJM 886 3,013 EMG Future 2,000 Market sells PJM City 4,000 Generation power Auction FactsintoDates the PJM market by participating
Slide 24: EMG Maximize Trading Opportunities
Leading EMG Maximize Originally Market Illinois Expanding RPM Leverage Trading Controls Allowed Large VaR, Edison Significantly Provides 200 2004 $130 $195 $23 EMMT ($ 23 Millions EDISON 150 volumetric, 2005 settlement –majority Mission BGS transitioning Trading Operational, Provides primarily 100 t
Slide 25: EMG Recapitalization Expands Financial Flexibility
Expands Leading EMG $ Favorable Enhanced Moves Simplifies Facilitates 2.7 billion Growth refinancing the liquidity financial market longer-term capital Way EMG Driver in conditions structure refinancing risk flexibility ElectricitySM – hedging Recapitalization past environmental spending period Tend
Slide 26: EMG Comprehensive Illinois Emission Agreement
Leading EMG Comprehensive Achieves Mercury NOx SO2 Helps Illinois Emission Agreement Provides EDISON 25 –––continue emissions emissions EPA Midwest the –reasonable INTERNATIONAL® specified credit 90% supported filed Way assistance good selling removal agreement under Gen of in ofemission 0.11 Electr
Slide 27: MWG Environmental Compliance Plan
Leading MWG Installation Phase Flue Estimated Shutdown Waukegan Will PA Homer Evaluating EMG Note: EDISON 26 State County Gas Cost –321Compliance environmental City Environmental –the Implementation Desulfurization INTERNATIONAL® Reduction cost of 6estimates compliance of Way Compliance will 1(100 S
Slide 28: EMG Strategic Wind Development
Leading EMG Strategic Contributes Objective Leverages Wind Growing Production Accelerated MainlyEnergy Project – long-term Wind the Importance RPS issuccessful tax to Way depreciation toPortfolio Development Provides Energy requirements portfolio attain credits incontracts ElectricitySM national to
Slide 29: EMG Wind Portfolio
Leading EMG Nebraska Wyoming Utah Construction Oklahoma Texas Iowa In-Service Minnesota Wisconsin Illinois Maine New Pennsylvania Pipeline Maryland West York Mexico Virginia Growth the 141 90 300 60 630 100 350 54 130 127 80 345 90 161 109 75MW Way MW 95 MW Driver MW MW inConstruction ElectricitySM
Slide 30: EMG Natural Gas and Other Growth Opportunities
Leading EMG Natural Thermal Walnut Will Some Assets IGCC Carson Joint Confirming Target Other 29 EDISON be Venture Growth opportunities regions with operating complement Hydrogen Creek selective Gas-Fired the development Carbon project Way INTERNATIONAL® with showing and Driver date and inProject Su
Slide 31: Year to Date and Annual Performance
Leading Year 30 EDISON to Date the Way INTERNATIONAL® Performance in ElectricitySM Through March 31, 2007 And Annual Performance Through December 31, 2005 & 2006
Slide 32: Earnings Performance: Core Earnings Per Share, Q1
ElectricitySM Edison International – Earnings Performance Leading the Way in Core Earnings (Loss) Per Common Share (Unaudited) Quarter Ended March 31, Southern California Edison Company 2007 2006 Change Edison Mission Group $0.45 $0.37 $0.08 EIX parent company and other 0.48 0.23 0.25 EIX consolidat
Slide 33: Earnings Performance: Core Earnings in Millions, Q1
Edison International Leading the Way in ElectricitySM – Earnings Performance Core Earnings (in millions) (Unaudited) Quarter Ended March 31, Southern California Edison Company 2007 2006 Change Edison Mission Group $149 $121 $28 EIX parent company and other 155 73 82 EIX core earnings (5) (10) 5 Non-
Slide 34: Midwest Generation EMG Operating Performance Update
MidwestInternational Leading Edison the Generation Way in ElectricitySM – EMG Operating Performance Update Generation (in GWhr) 1QTR 2007 1QTR 2006 Change % Energy Only contracts Load requirement services contracts 6,698 7,244 Total 1,932 — Equivalent Availability 8,630 7,244 1,386 +19% Forced Outag
Slide 35: Core EPS Earnings Guidance
Core EPS: Leading Edison International the Way in ElectricitySM — Earnings Guidance SCE 2006 Recorded 2007 Guidance Effective 2/28/07 Updated 2007 Guidance 5/9/07 EMG $1.89 $1.97 – $ 2.07 $1.97 – $ 2.07 EIX Holding Co. 1.30 1.21 – 1.51 1.21 – 1.51 Core (0.12) (0.13) (0.13) Non-Core Items1, 2: $3.07
Slide 36: Earnings Performance: Per Share, Year Ended 2006
Edison International Leading the Way in ElectricitySM – Earnings Performance Earnings (Loss) Per Common Share (Unaudited) Year Ended December 31, Southern California Edison Company 2006 2005 Change Edison Mission Group $1.89 $1.82 $0.07 EIX (Parent) and Other 1.30 1.42 (0.12) EIX Consolidated Core E
Slide 37: Earnings Performance: Millions, Year Ended 2006
Edison International Leading the Way in ElectricitySM – 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 EIX (Parent) and Other 424 463 (39) EIX Consolidated Core Earning
Slide 38: Appendix
Leading 37 Appendix EDISON the Way INTERNATIONAL® in ElectricitySM
Slide 39: Non-GAAP Reconciliation
LeadingInternational Edison the Way in ElectricitySM — Non-GAAP Reconciliation Year Ending December 31, Core Earnings: 2005 2006 2007E 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
Slide 40: Non-GAAP Reconciliation, Quarter Ended March 31
Edison International Leading the Way in ElectricitySM — Non-GAAP Reconciliation Core Earnings (Loss) Per Common Share (Unaudited) Quarter Ended March 31, Southern California Edison Company 2007 2006 Change Edison Mission Group $0.45 $0.37 $0.08 EIX parent company and other 0.48 0.23 0.25 EIX consoli
Slide 41: Edison International Adjusted EBITDA Reconciliation
Leading Edison Quarter Reconciliation $ Net Cumulative Interest Income Dividends not Depreciation, EBITDA Nuclear Adjustments: Variable contributions Rate Production Gain Adjusted 1 Note: amortization. gain 40%EDISON Includes subject income on reduction on EBITDA International the from expense incom
Slide 42: Edison Mission Group Net Income to Adjusted EBITDA
Reconciliation Leading Edison Mission the WaytoGroup in NetElectricitySM Income – Adjusted (in millions) EBITDA Net Income 2005 Actual 2006 Actual 2007 Forecast Add back (Deduct): $443 $432 $2961 Cumulative effect of change in accounting, net of tax 1 (1) — Discontinued operations Income (loss) from
Slide 43: EMG Liquidity Profile
Sources Leading EMG Available – Liquidity (in the Liquidity millions) Way inProfile ElectricitySM EME Revolver 12/31/06 3/31/07 MWG Revolver $473 $457 Cash & Short term 495 495 investments¹ 2,181 2,055 $3,149 $3,007 $1.1 billion of credit facilities between MWG and EME2 During 1 2 42Excludes On EDIS
Slide 44: EMG Capital Expenditures
EMG – Capital Leading the WayExpenditures in ElectricitySM Planned Expenditures1 April Plant/Corporate Balance $ 2007 $1,259 Potential Midwest Evaluating Additional 1 reservation agreements, 43Millions EMG EDISON 2008 2007 Million has of Gen Expenditures 800 2009 wind growth plant FGD -fee entered n
Slide 45: 2006 Financial Highlights
Record International Leading Edison high the Way net income in ElectricitySM – 2006 of approx. Financial $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 EIXEDISON Growth SCE Major Advanced EMG MOU Maint
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