Leading the Way in Electricity SM Business Update November 2014 November 6, 2014 1 EDISON INTERNATIONAL
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 Forecast Capital Expenditures, Rate Base 8-9 U…
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…
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…
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…
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…
Leading the Way in Electricity SM SCE Capital Expenditures Forecast ( billions) 15.4 17.4 billion Distribution Transmission Generation forecasted capital program 2014 2017 4.6 4.5 Capital expenditures cumulative 4.1 4.2…
Leading the Way in Electricity SM SCE Rate Base Forecast ( billions) 7 9% CAGR projected rate base 2014 2017 29.3 Reflects 2015 GRC rebuttal 26.7 testimony update for 2013 lower recorded Capex, offset by higher 24.0 FERC…
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…
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…
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:…
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…
Leading the Way in Electricity SM Distribution Grid of the Future Current State Future State One-Way Electricity Flow Variable and Two-Way Electricity Flow System planned and designed to serve System planned and designed to serve…
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…
Leading the Way in Electricity SM Electric Vehicles (EV) October 2014, electric vehicle Charge Ready Program application submitted to CPUC (A.14- 10-014) Pro-active, two-phased program over five years to support installation of…
Leading the Way in Electricity SM SCE 2015 CPUC General Rate Case November 2013, 2015 GRC Application A.13-11-003 sets 2015 2017 base revenue requirement Includes operating costs and CPUC jurisdictional capital Excludes fuel and…
Leading the Way in Electricity SM SCE 2015 GRC Intervenor Testimony ( in millions) In August, Office of Ratepayer Advocate (ORA) and The Utility Reform Network (TURN) submitted 2015 GRC testimony Proposed 680 million 2015 test…
Leading the Way in Electricity SM CPUC and FERC Cost of Capital CPUC Adjustment Mechanism 7 Moodys Baa Utility Index Spot Rate Moving Average (10/1/14 10/10/14) = 4.69% 100 basis point +/- Deadband 6 Rate (%) 5…
Leading the Way in Electricity SM SCE Key CPUC Regulatory Events Calendar 2H 2014 1H 2015 2H 2015 2016 SONGS Oct 9 Proposed Decision Settlement (I.12-10-013) Nov/Dec Final Decision July Revised Scoping Jan Update Hearing 2015…
Leading the Way in Electricity SM 2014 Core and Basic Earnings Guidance (per share) 2014 Earnings 2014 Earnings Guidance as of Guidance as of 4/29/14 10/28/14 Low Mid High Low Mid High SCE 3.85 4.43 Key Assumptions: EIX Parent…
Leading the Way in Electricity SM EIX Dividend Growth 4.43 Guidance Midpoint 2008 2013 CAGR 2014 1.42 (32%) SCE Core EPS 12% 3.88 EIX Dividend 2% 2013 1.35 (35%) 4.10 2012 1.30 (32%) EIX targets paying out 45 55% of SCE…
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…
Leading the Way in Electricity SM Creating Shareholder Value Create Sustainable Position for Resolve Earnings and Transformative Uncertainties Dividend Growth Sector Change EME restructuring 10% 5-year SCE rate base Acquired…
Leading the Way in Electricity SM Appendix November 6, 2014 25 EDISON INTERNATIONAL
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…
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,…
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…
Leading the Way in Electricity SM Residential Rate Design OIR June 2012, CPUC opened Order Instituting OIR Phase 2 Settlement Summary Ratemaking (OIR) R.12-06-013: Comprehensive review of residential rate structure 35 32.10…
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…
Leading the Way in Electricity SM SCE Energy Efficiency Programs Energy efficiency programs updated for 2013 2014 SCE is a national leader 2012 energy savings = 1.8% of retail sales 2014 budget of 352 million Target 0.9 billion…
Leading the Way in Electricity SM Third Quarter Earnings Summary Q3 Q3 SCE Key Core Earnings Drivers Variance 2014 2013 Core EPS1 Higher revenue 0.20 SCE 1.54 1.46 0.08 SONGS impact (0.03) Higher depreciation (0.04) EIX Parent…
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 0.51 SCE 3.58 3.09 0.49 SONGS impact (0.02) Lower O&M2 0.05 EIX Parent & Other…
Leading the Way in Electricity SM Earnings Non-GAAP Reconciliations ( millions) Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Q3 Q3 YTD YTD Edison International 2014 2013 2014 2013 Core…
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…
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…
Leading the Way in Electricity SM SONGS Settlement Summary Term Description Steam Generator Replacement Project (SGRP) removed from rates as of February 1, 2012, with Steam book value balance disallowed. Revenues related to the…
Leading the Way in Electricity SM SONGS Settlement Third-Party Recoveries CPUC SONGS OII Settlement SCEs share of recoveries from NEIL and MHI will be reported in non-core earnings Customer share of recoveries from NEIL and MHI…
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…
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…
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