Skip to main content BUSINESS UPDATE – Edison International Investor Presentation | Shale Experts
Loading...
Pm

BUSINESS UPDATE – Edison International

Edison International · Aug 28, 2014 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. BUSINESS UPDATE – Edison International – slide 1
    Leading the Way in Electricity SM Business Update September 2014 August 28, 2014 1 EDISON INTERNATIONAL
  2. BUSINESS UPDATE – Edison International – slide 2
    Leading the Way in Electricity SM Table of Contents New (N) or Page Updated (U) Highlights & Regulatory Model 4-5 Historical Capital Expenditures, Rate Base, Core Earnings 6-7 Capital Expenditures, Rate Base Forecast 8-9 System…
  3. BUSINESS UPDATE – Edison International – slide 3
    Leading the Way in Electricity SM SCE Highlights One of the nations largest electric utilities Nearly 14 million residents in service territory Approximately 5 million customer accounts 50,000 square-mile service area…
  4. BUSINESS UPDATE – Edison International – slide 4
    Leading the Way in Electricity SM SCE Decoupled Regulatory Model Regulatory Model Key Benefits Decoupling of Regulated SCE earnings are not affected by changes in retail Revenues from Sales electricity sales Differences between…
  5. BUSINESS UPDATE – Edison International – slide 5
    Leading the Way in Electricity SM SCE Historical Capital Expenditures ( billions) 3.8 3.9 3.9 3.5 2.9 2.4 2008 2009 2010 2011 2012 2013 Note: 2013 distribution reliability spend up 300 million, offset by completion…
  6. BUSINESS UPDATE – Edison International – slide 6
    Leading the Way in Electricity SM SCE Historical Rate Base and Core Earnings ( billions) 2008 2013 CAGR Rate Base2 10% 21.0 21.12 Core Earnings 12% 18.8 16.8 15.0 13.1 2008 2009 2010 2011 2012 2013 Core Earnings…
  7. BUSINESS UPDATE – Edison International – slide 7
    Leading the Way in Electricity SM SCE Capital Expenditures Forecast ( billions) 15.1 17.2 billion forecasted capital program 2014 2017 Distribution Transmission Generation 4.5 4.4 Capital expenditures forecast 4.1 4.2…
  8. BUSINESS UPDATE – Edison International – slide 8
    Leading the Way in Electricity SM SCE Rate Base Forecast ( billions) 7 9% CAGR projected rate base 2014 2017 29.2 27.0 Growth rate reaffirmed Driven by infrastructure 24.4 replacement, reliability investments, and public…
  9. BUSINESS UPDATE – Edison International – slide 9
    Leading the Way in Electricity SM SCE System Investments ( millions) Distribution Transmission Aging system reaching equilibrium Large transmission projects: replacement rate Tehachapi 3.2 billion total project 2015 GRC request…
  10. BUSINESS UPDATE – Edison International – slide 10
    Leading the Way in Electricity SM SCE Growth Drivers Beyond 2017 Infrastructure Reliability Investment Sustained level of infrastructure investment required until equilibrium replacement rates are achieved - includes underground…
  11. BUSINESS UPDATE – Edison International – slide 11
    Leading the Way in Electricity SM New Technology Grid Impacts 1 3 1 2 1 2 Future state based on evolving energy landscape 1 1 More automated and digital, with more sophisticated voltage control and protection 2…
  12. BUSINESS UPDATE – Edison International – slide 12
    Leading the Way in Electricity SM SCE 2015 CPUC General Rate Case November 2013, 2015 GRC Application A.13-11-003 filed March 2014, Scoping Memo issued, schedule revised July 21st Supplemental testimony, ordered by May 15th…
  13. BUSINESS UPDATE – Edison International – slide 13
    Leading the Way in Electricity SM SCE 2015 GRC ORA Testimony ( in millions) August 4, Office of Ratepayer Advocate (ORA) submitted 2015 GRC testimony Proposed 465 million 2015 test year decrease Prior rate case testimony - 19…
  14. BUSINESS UPDATE – Edison International – slide 14
    Leading the Way in Electricity SM CPUC and FERC Cost of Capital 7 CPUC Adjustment Mechanism Moodys Baa Utility Index Spot Rate Moving Average (10/1/13 7/16/14) = 4.99% 100 basis point +/- Deadband 6 Rate (%) 5 Starting…
  15. BUSINESS UPDATE – Edison International – slide 15
    Leading the Way in Electricity SM SCE Key Regulatory Events Calendar 2H 2014 1H 2015 2H 2015 2016 SONGS TBD Proposed Decision Settlement (I.12-10-013) July Revised Scoping Jan Update Hearing 2015 GRC Memo (A.13-11-003) Aug…
  16. BUSINESS UPDATE – Edison International – slide 16
    Leading the Way in Electricity SM 2014 Core and Basic Earnings Guidance 2014 Earnings Key Assumptions: Guidance as of 4/29/14 Midpoint rate base of 22.1 billion Low Mid High Approved capital structure SCE 3.85 48% equity,…
  17. BUSINESS UPDATE – Edison International – slide 17
    Leading the Way in Electricity SM EIX Dividend Growth 3.85 Guidance Midpoint 2008 2013 CAGR 2014 1.42 (37%) SCE Core EPS 12% 3.88 2013 EIX Dividend 2% 1.35 (35%) 4.10 2012 1.30 (32%) EIX targets paying out 45 55% of SCE…
  18. BUSINESS UPDATE – Edison International – slide 18
    Leading the Way in Electricity SM Creating Shareholder Value Create Sustainable Position for Resolve Earnings and Transformative Uncertainties Dividend Growth Sector Change SCE 2013 cost of capital 10% 5-year SCE rate base…
  19. BUSINESS UPDATE – Edison International – slide 19
    Leading the Way in Electricity SM EIX is Responding to Industry Change Long-Term Industry Trends Strategy Public policy prioritizing environmental SCE Strategy sustainability Invest in, build, and operate the next Innovation…
  20. BUSINESS UPDATE – Edison International – slide 20
    Leading the Way in Electricity SM Appendix August 28, 2014 21 EDISON INTERNATIONAL
  21. BUSINESS UPDATE – Edison International – slide 21
    Leading the Way in Electricity SM SCE 2014 Bundled Revenue Requirement 2014 Bundled Revenue Requirement millions /kWh Fuel & Purchased Power includes CDWR Bond Charge 5,071 6.9 Fuel & Purchased Power (41%) Distribution poles,…
  22. BUSINESS UPDATE – Edison International – slide 22
    Leading the Way in Electricity SM SCE Customer Demand Trends Kilowatt-Hour Sales (millions of kWh) 2013 2012 2011 2010 2009 Residential 29,889 30,563 29,631 29,034 30,078 Commercial 40,649 40,541 39,622 39,318 40,076 Industrial…
  23. BUSINESS UPDATE – Edison International – slide 23
    Leading the Way in Electricity SM SCE Rates and Bills Comparison 2014 Average Residential Rates Key Factors (/kWh) SCEs residential rates are above national 16.6 average due, in part, to a cleaner fuel mix 12.6 cost for…
  24. BUSINESS UPDATE – Edison International – slide 24
    Leading the Way in Electricity SM Residential Rate Design OIR June 2012, CPUC opened Order Instituting OIR Phase 2 Settlement Summary Rulemaking (OIR) R.12-06-013: Comprehensive review of residential rate structure 35 32.10…
  25. BUSINESS UPDATE – Edison International – slide 25
    Leading the Way in Electricity SM SCE Residential Net Metering Rate Structure Residential solar customer generation Solar Subsidies offsets total retail rate (Illustrative) Average retail rate of 30.6/kWh vs. actual 35…
  26. BUSINESS UPDATE – Edison International – slide 26
    Leading the Way in Electricity SM Solar Installations in SCE Service Territory 4,000 30,000 3,500 25,000 3,000 20,000 2,500 Number of Installations kW Installed 2,000 15,000 1,500 10,000 1,000 5,000…
  27. BUSINESS UPDATE – Edison International – slide 27
    Leading the Way in Electricity SM Rooftop Solar Grid Interaction Typical Residential Rooftop Solar Customer Profile1,2 3.5 3.0 Summer Customer uses grid to export excess power 2.5 2.0 Kilowatt 1.5 SCE Provides…
  28. BUSINESS UPDATE – Edison International – slide 28
    Leading the Way in Electricity SM All Generation Cost Trends, Unsubsidized Distributed Central Station / Utility Scale Generation Generation 0.250 0.204 0.206 0.200 0.150 0.145 0.149 0.144 /kWh 0.122 0.123 0.104…
  29. BUSINESS UPDATE – Edison International – slide 29
    Leading the Way in Electricity SM California Climate Change Policy Assembly Bill 32 (2006) reduces State greenhouse gas (GHG) emissions to 1990 levels by 2020 (16% reduction) AB32 Emissions Cap and trade program basics:…
  30. BUSINESS UPDATE – Edison International – slide 30
    Leading the Way in Electricity SM California Renewables Policy On April 12, 2011, Governor Brown signed SB X 1 2, which codifies a 33% Renewables Portfolio Standard (RPS) for Actual 2013 Renewable Resources: California by 2020…
  31. BUSINESS UPDATE – Edison International – slide 31
    Leading the Way in Electricity SM Energy Storage AB2514 directed CPUC to establish SCE 2014 Existing Storage procurement targets and policies for storage 50 CPUC final decision in Energy Storage OIR (R.10-12-007) 30 MW…
  32. BUSINESS UPDATE – Edison International – slide 32
    Leading the Way in Electricity SM SCE Energy Efficiency Programs Annual kWh Savings (billions) Energy efficiency programs updated for 2013 2014 SCE is a national leader 1.7 1.6 2012 energy savings = 1.8% of retail sales1 1.1…
  33. BUSINESS UPDATE – Edison International – slide 33
    Leading the Way in Electricity SM Second Quarter Earnings Summary Q2 Q2 SCE Key Core Earnings Drivers Variance 2014 2013 Core EPS1 Higher revenue 0.17 SCE 1.11 0.84 0.27 SONGS impact 0.03 Higher O&M2 (0.02) EIX Parent & Other…
  34. BUSINESS UPDATE – Edison International – slide 34
    Leading the Way in Electricity SM Year-to-Date Earnings Summary YTD YTD SCE Key Core Earnings Drivers Variance 2014 2013 Core EPS1 Higher revenue 0.31 SCE 2.04 1.63 0.41 SONGS impact 0.02 Lower O&M2 0.05 EIX Parent & Other…
  35. BUSINESS UPDATE – Edison International – slide 35
    Leading the Way in Electricity SM Earnings Non-GAAP Reconciliations ( millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Q2 Q2 YTD YTD Edison International 2014 2013 2014 2013 Core…
  36. BUSINESS UPDATE – Edison International – slide 36
    Leading the Way in Electricity SM SCE Core EPS Non-GAAP Reconciliations Reconciliation of SCE Core Earnings Per Share to SCE Basic Earnings Per Share Earnings Per Share Attributable to SCE 2008 2009 2010 2011 2012 2013 CAGR Core…
  37. BUSINESS UPDATE – Edison International – slide 37
    Leading the Way in Electricity SM SCE Results of Operations ( millions) Utility earning activities revenue authorized by CPUC and FERC to provide reasonable cost recovery and return on investment Utility cost-recovery activities…
  38. BUSINESS UPDATE – Edison International – slide 38
    Leading the Way in Electricity SM SONGS Settlement Summary Term Description Steam Generator Replacement Project (SGRP) removed from rates as of February 1, 2012, Steam with book value balance disallowed. Revenues related to the…
  39. BUSINESS UPDATE – Edison International – slide 39
    Leading the Way in Electricity SM SONGS Settlement Third-Party Recoveries SCEs share of recoveries from NEIL and MHI will be allocated between SCE and customers Litigation fees recovered prior to SCE / customer sharing SCE Share…
  40. BUSINESS UPDATE – Edison International – slide 40
    Leading the Way in Electricity SM SONGS Settlement Accounting Q2 2013, SCE recorded 575 million pre-tax and 365 million after-tax impairment based on managements judgment of the recoverability of SONGS investment Developed based on…
  41. BUSINESS UPDATE – Edison International – slide 41
    Leading the Way in Electricity SM SONGS Settlement Regulatory Asset ( millions) December 31, June 30, Authorized Category 20131 2014 Return Base Plant 488 2.62% SGRP - n/a CWIP2 2,166 403 2.62% Materials and Supplies 78 2.62%…
  42. BUSINESS UPDATE – Edison International – slide 42
    Leading the Way in Electricity SM SONGS Third-Party Recovery MHI Warranty Summary Request for Arbitration 20-year warranty: October 2013, Request for Arbitration filed Repair or replace defective items with the International…
  43. BUSINESS UPDATE – Edison International – slide 43
    Leading the Way in Electricity SM SONGS Third-Party Recovery NEIL Insurance Accidental property damage and accidental outage insurance through Nuclear Electric Insurance Limited (NEIL) Accidental Property Damage Policies 2.5…
  44. BUSINESS UPDATE – Edison International – slide 44
    Leading the Way in Electricity SM SONGS Units 2 and 3 Decommissioning Decommissioning Trusts Decommissioning Trust contributions recovered in rates approved by CPUC in triennial proceeding Updated site-specific decommissioning cost…
  45. BUSINESS UPDATE – Edison International – slide 45
    Leading the Way in Electricity SM SCE System Reliability Short-term SONGS closure solutions Transmission 220 kV Barre-Ellis reconfiguration Voltage support Huntington Beach 3 and 4 synchronous condensers Substations Santiago,…
  46. BUSINESS UPDATE – Edison International – slide 46
    Leading the Way in Electricity SM EME Bankruptcy Settlement Implementation April 2014, amended Plan of Reorganization completed EME emerged from bankruptcy and remains subsidiary of EIX Consolidated for tax purposes Reorganization…
  47. BUSINESS UPDATE – Edison International – slide 47
    Leading the Way in Electricity SM Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings…

From the store

Browse maps, data & reports in the Shale Experts store