EDISON INTERNATIONAL LOGO
News Release
FOR IMMEDIATE RELEASE
Contact: Corporate Communications, (626) 302-2255
www.edisonnews.com
Edison International Reports Financial Results
For the First Quarter of 2006
ROSEMEAD, Calif., May 8, 2006--
o Edison International (NYSE:EIX) recorded consolidated earnings per common share of 78 cents in the
first quarter of 2006, compared to 61 cents in the same period last year. The increase was primarily
driven by a distribution received from a discontinued operation.
o Excluding earnings from discontinued operations and other non-core items, core earnings per share were
56 cents in the first quarter of 2006 compared to 64 cents in the same period last year.
First-Quarter 2006 Highlights:
o Earnings per common share - $0.78
o Net Income - $258 million
o Revenues - $2.8 billion
o Assets - $34.7 billion
FIRST-QUARTER EARNINGS SUMMARY
For the quarter ended March 31, 2006, EIX recorded consolidated earnings per common share of 78 cents,
compared to 61 cents in the first quarter of 2005. Excluding non-core items, EIX's first-quarter core
earnings per share were 56 cents, 8 cents lower than core earnings per share in the same period last year.
"Our quarterly earnings were impacted by an extended outage of a unit at our Homer City generating
station and a delay in receiving a decision on our pending general rate case," said Chairman and CEO John
Bryson. "The Homer City unit is now back online and a California Public Utilities Commission (CPUC) decision
on the rate filing is expected soon."
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EDISON REPORTS FIRST-QUARTER RESULTS
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Key factors contributing to the decrease in core earnings include the impact from the delay in the
2006 general rate case (GRC) decision at Southern California Edison Company (SCE), and at Edison Mission
Group Inc. (EMG), gains recorded in the first quarter of 2005 from Edison Capital's Emerging Europe
Infrastructure Fund, along with an outage at the Homer City facility, partially offset by higher wholesale
margins driven by higher energy prices at Mission Energy Holding Company (MEHC).
Beginning in the first quarter of 2006, the results of MEHC, Edison Capital and other smaller
subsidiaries are presented on a consolidated basis as EMG. This change has been made to reflect the
integrated management of MEHC and Edison Capital. EMG, a subsidiary of EIX, has no other business activities
other than through its ownership interest in its subsidiaries, including MEHC and Edison Capital.
FIRST-QUARTER EARNINGS DETAIL
Earnings (Loss) from Continuing Operations
SCE's first-quarter 2006 earnings from continuing operations were $121 million, compared to earnings
of $131 million in the same period last year. The decrease is primarily due to the impact of higher
operating costs associated with the utility's customer and system growth and the delay in receiving the 2006
GRC decision. When the 2006 GRC decision is issued, SCE will be authorized by the CPUC to recover its
revenue requirement effective back to January 12, 2006. The decrease in SCE's earnings was partially offset
by the return on investment earned by SCE's newly constructed Mountainview plant located in Southern
California's Inland Empire.
EMG's 2006 first-quarter earnings from continuing operations were $73 million, down $3 million from
the same period last year. MEHC's 2006 first-quarter earnings from continuing operations were $56 million,
an increase of $31 million from the same period last year. MEHC's 2005 first-quarter earnings include a
$15-million after-tax charge related to the early extinguishment of debt at MEHC. Excluding this item,
MEHC's core earnings were $56 million in the first quarter of 2006, compared to $40 million in the same period
last year. The increase in core earnings was primarily due to higher wholesale energy margins driven by
higher prices at the Illinois Plants and higher interest and other income, partially offset by lower
generation and higher maintenance expenses at Homer City in 2006 due to a transformer failure at Unit 3 on
January 29, 2006. Homer City Unit 3 was returned to service on May 5, 2006. The earnings for "Edison
Capital and other" were $17 million in the first quarter of 2006, down $34 million from the same period last
year. The decrease was largely due to 2005 gains from Edison Capital's investment in the Emerging Europe
Infrastructure Fund.
The first-quarter 2006 loss from "EIX (parent) and other" of $10 million was $3 million lower than the
same period last year primarily reflecting lower tax expense.
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EDISON REPORTS FIRST-QUARTER RESULTS
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Earnings from Discontinued Operations
EIX's earnings from discontinued operations were $73 million in the first quarter of 2006 reflecting
the receipt of a distribution from the U.K. Lakeland project previously owned by MEHC. The earnings from
discontinued operations in the first quarter of 2005 of $7 million represent the operating results and sales
impacts from MEHC's Tri-Energy and CBK international projects.
Change in Accounting Principle
Effective January 1, 2006, Edison International adopted a new accounting standard that requires the
fair value accounting method for stock-based compensation. Implementation of this new accounting standard
did not result in a material effect on first-quarter 2006 earnings.
Quarter Ended March 31,
Earnings (Loss) Per Common Share (Unaudited) 2006 2005 Change
----------------------------------------------
Southern California Edison Company $0.37 $0.40 $(0.03)
Edison Mission Group
Mission Energy Holding Company 0.18 0.08 0.10
Edison Capital and other 0.05 0.16 (0.11)
----------------------------------------------
Edison Mission Group Total 0.23 0.24 (0.01)
EIX (parent) and other (0.04) (0.05) 0.01
- -----------------------------------------------------------------------------------------------
EIX Consol. Earnings from Continuing Operations 0.56 0.59 (0.03)
- -----------------------------------------------------------------------------------------------
Earnings from Discontinued Operations 0.22 0.02 0.20
- -----------------------------------------------------------------------------------------------
Total EIX Consolidated Earnings
$0.78 $0.61 $0.17
===============================================================================================
Quarter Ended March 31,
Earnings (Loss) (in millions) (Unaudited) 2006 2005 Change
----------------------------------------------
Southern California Edison Company $121 $131 $(10)
Edison Mission Group
Mission Energy Holding Company 56 25 31
Edison Capital and other 17 51 (34)
----------------------------------------------
Edison Mission Group Total 73 76 (3)
EIX (parent) and other (10) (13) 3
- -----------------------------------------------------------------------------------------------
EIX Consol. Earnings from Continuing Operations 184 194 (10)
- -----------------------------------------------------------------------------------------------
Earnings from Discontinued Operations 73 7 66
Cumulative Effect of Change in Accounting Principle 1 -- 1
- -----------------------------------------------------------------------------------------------
Total EIX Consolidated Earnings $258 $201 $57
===============================================================================================
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EDISON REPORTS FIRST-QUARTER RESULTS
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Reminder: EIX Will Hold a Conference Call Today
Today, EIX will hold a conference call to discuss its first-quarter 2006 financial results at 8 a.m.
(Pacific time). Although two-way participation in the telephone call is limited to financial analysts and
investors, all other interested parties are invited to participate in a "listen-only mode" through a
simultaneous webcast on the company's Web site at www.edisoninvestor.com. Additional financial and other
statistical information, if any, presented during the call will be available on the Web site. The domestic
call-in number is (800) 356-8584 and the ID# is 10700.
Chart 1
Quarter Ended March 31,
Core Earnings (Loss) Per Common Share
(Unaudited) 2006 2005 Change
----------------------------------------------
Southern California Edison Company $0.37 $0.40 $(0.03)
Edison Mission Group
Mission Energy Holding Company 0.18 0.13 0.05
Edison Capital and other 0.05 0.16 (0.11)
----------------------------------------------
Edison Mission Group Total 0.23 0.29 (0.06)
EIX (parent) and other (0.04) (0.05) 0.01
- -----------------------------------------------------------------------------------------------
EIX Consolidated Core Earnings 0.56 0.64 (0.08)
- -----------------------------------------------------------------------------------------------
Non-core items
Mission Energy Holding Company
Extinguishment of debt -- (0.05) 0.05
Earnings from discontinued operations 0.22 0.02 0.20
- -----------------------------------------------------------------------------------------------
0.22 (0.03) 0.25
- -----------------------------------------------------------------------------------------------
Total EIX Consolidated Earnings $0.78 $0.61 $0.17
===============================================================================================
Quarter Ended March 31,
Core Earnings (in millions) (Unaudited) 2006 2005 Change
----------------------------------------------
Southern California Edison Company $121 $131 $(10)
Edison Mission Group
Mission Energy Holding Company 56 40 16
Edison Capital and other 17 51 (34)
----------------------------------------------
Edison Mission Group Total 73 91 (18)
EIX (parent) and other (10) (13) 3
- -----------------------------------------------------------------------------------------------
EIX Consolidated Core Earnings 184 209 (25)
- -----------------------------------------------------------------------------------------------
Non-core items
Mission Energy Holding Company
Extinguishment of debt -- (15) 15
Earnings from discontinued operations 73 7 66
- -----------------------------------------------------------------------------------------------
73 (8) 81
- -----------------------------------------------------------------------------------------------
Cumulative Effect of Change in Accounting Principle 1 -- 1
- -----------------------------------------------------------------------------------------------
Total EIX Consolidated Earnings
$258 $201 $57
===============================================================================================
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EDISON REPORTS FIRST-QUARTER RESULTS
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Chart 2
Edison International
Supplemental Table - Coal-Fired Generation
Midwest Generation and Homer City
--------------- ------------- ------------ --------
1QTR 2006 1QTR 2005 Change %
--------------- ------------- ------------ --------
Midwest Generation
Generation (in TWhr) 7.2 8.4 (1.2) -14.3%
Equivalent Availability 86.8% 80.2% 6.6%
Forced Outage Rate (EFOR) 2.8% 8.0% -5.2%
Average Cost of Fuel ($/MWh) 12.92 11.85 1.07 9.0%
Flat Energy Price - Nihub ($/MWh) 42.48 39.68 2.80 7.1%
Average Midwest Gen Energy Price ($/MWh) 46.69 38.94 7.75 19.9%
Homer City
Generation (in TWhr) 2.5 3.5 (1.0) -28.6%
Equivalent Availability 71.8% 88.1% -16.3%
Forced Outage Rate 23.4% 7.3% 16.1%
Average Cost of Fuel ($/MWh) 23.93 18.03 5.90 32.7%
Flat Energy Price - PJM West Hub ($/MWh) 56.42 47.18 9.24 19.6%
Flat Energy Price - HC Busbar ($/MWh) 50.49 44.21 6.28 14.2%
Flat Energy Price - PJM West Hub minus
HC Busbar ($/MWh) - Basis 5.93 2.97 2.96
Average Homer City Energy Price ($/MWh) 53.03 43.78 9.25 21.1%
- ---------------------- ------------------- ----------- ------------- ------------ ----------
Hedge Program status at March 31, 2006
Remainder of
2006 2007
---- ----
Midwest Generation
Megawatt hours (in TWh) 13.2 15.0
Percent of Expected Generation Hedged 61% 52%
Average Energy Price ($/MWh) $47.60 $49.22
Percent of Coal Requirements Under
Contract 104% 95%
Homer City
Megawatt hours (in TWh) 6.6 7.6
Percent of Expected Generation Hedged 63% 55%
Average Energy Price ($/MWh) $53.54 $64.33
Percent of Coal Requirements Under
Contract 102% 90%
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EDISON REPORTS FIRST-QUARTER RESULTS
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Risk Disclosure Statement
This release contains "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's current
expectations and projections about future events based on Edison International's knowledge of present facts
and circumstances and assumptions about future events and include any statement that does not directly relate
to a historical or current fact. In this report and elsewhere, the words "expects," "believes,"
"anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would,"
"should," and variations of such words and similar expressions, or discussions of strategy or of plans, are
intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties
that could cause actual results to differ materially from those anticipated. Some of the risks,
uncertainties and other important factors that could cause results to differ, or that otherwise could impact
Edison International or its subsidiaries, include but are not limited to:
o the ability of Edison International to meet its financial obligations and to pay dividends on its
common stock if its subsidiaries are unable to pay dividends;
o the ability of SCE to recover its costs in a timely manner from its customers through regulated rates;
o decisions and other actions by the CPUC and other regulatory authorities and delays in regulatory
actions;
o market risks affecting SCE's energy procurement activities;
o access to capital markets and the cost of capital;
o changes in interest rates, rates of inflation and foreign exchange rates;
o governmental, statutory, regulatory or administrative changes or initiatives affecting the electricity
industry, including the market structure rules applicable to each market and environmental regulations
that could require additional expenditures or otherwise affect the cost and manner of doing business;
o risks associated with operating nuclear and other power generating facilities, including operating
risks, nuclear fuel storage, equipment failure, availability, heat rate and output;
o the availability of labor, equipment and materials;
o the ability to obtain sufficient insurance, including insurance relating to SCE's nuclear facilities;
o effects of legal proceedings, changes in or interpretations of tax laws, rates or policies, and
changes in accounting standards;
o supply and demand for electric capacity and energy, and the resulting prices and dispatch volumes, in
the wholesale markets to which MEHC generating units have access;
o the cost and availability of coal, natural gas, and fuel oil, nuclear fuel, and associated
transportation;
o the cost and availability of emission credits or allowances for emission credits;
o transmission congestion in and to each market area and the resulting differences in prices between
delivery points;
o the ability to provide sufficient collateral in support of hedging activities and purchased power and
fuel;
o the extent of additional supplies of capacity, energy and ancillary services from current competitors
or new market entrants, including the development of new generation facilities and technologies;
o general political, economic and business conditions;
o weather conditions, natural disasters and other unforeseen events; and
o changes in the fair value of investments and other assets.
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EDISON REPORTS FIRST-QUARTER RESULTS
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Additional information about risks and uncertainties, including more detail about the factors
described above, is contained in Edison International's reports filed with the Securities and Exchange
Commission. Readers are urged to read such reports and carefully consider the risks, uncertainties and other
factors that affect Edison International's business. Readers also should review future reports filed by
Edison International with the Securities and Exchange Commission. The information contained in this release
is subject to change without notice. Forward-looking statements speak only as of the date they are made and
Edison International is not obligated to publicly update or revise forward-looking statements.
# # #
Rosemead, Calif.-based Edison International (NYSE:EIX,) is an electric power generator and
distributor, and an investor in infrastructure and renewable energy projects with assets totaling almost $35
billion. The company is comprised of a regulated utility, Southern California Edison (SCE) and an
unregulated group of business units, Edison Mission Group (EMG). The California Public Utilities Commission
does not regulate the terms of EMG's products and services.
Page
EDISON INTERNATIONAL
SUMMARY OF CONSOLIDATED EARNINGS
(UNAUDITED)
IN MILLIONS, EXCEPT PER-SHARE AMOUNTS QUARTER ENDED MARCH 31,
- ---------------------------------------------------------------------------------------------------
2006 2005
- ---------------------------------------------------------------------------------------------------
ELECTRIC UTILITY $ 2,217 $ 1,908
NONUTILITY POWER GENERATION 510 511
FINANCIAL SERVICES AND OTHER 24 27
- ---------------------------------------------------------------------------------------------------
TOTAL OPERATING REVENUE 2,751 2,446
- ---------------------------------------------------------------------------------------------------
FUEL 461 419
PURCHASED POWER 1,013 388
PROVISIONS FOR REGULATORY ADJUSTMENT CLAUSES - NET (363) 65
OTHER OPERATION AND MAINTENANCE 830 815
DEPRECIATION, DECOMMISSIONING AND AMORTIZATION 292 259
PROPERTY AND OTHER TAXES 56 52
- ---------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 2,289 1,998
- ---------------------------------------------------------------------------------------------------
OPERATING INCOME 462 448
INTEREST AND DIVIDEND INCOME 36 21
EQUITY IN INCOME FROM PARTNERSHIPS AND
UNCONSOLIDATED SUBSIDIARIES - NET 4 84
OTHER NONOPERATING INCOME 42 18
INTEREST EXPENSE - NET OF AMOUNTS CAPITALIZED (200) (214)
LOSS ON EARLY EXTINGUISHMENT OF DEBT - (24)
OTHER NONOPERATING DEDUCTIONS (12) (10)
- ---------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE TAX 332 323
AND MINORITY INTEREST
INCOME TAX 111 104
DIVIDENDS ON UTILITY PREFERRED AND PREFERENCE STOCK
NOT SUBJECT TO MANDATORY REDEMPTION 12 1
MINORITY INTEREST 25 24
- ---------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS 184 194
INCOME FROM DISCONTINUED OPERATIONS - NET OF TAX 73 7
- ---------------------------------------------------------------------------------------------------
INCOME BEFORE ACCOUNTING CHANGE 257 201
CUMULATIVE EFFECT OF ACCOUNTING CHANGE - NET OF TAX 1 -
- ---------------------------------------------------------------------------------------------------
NET INCOME $ 258 $ 201
===================================================================================================
WEIGHTED-AVERAGE SHARES
OF COMMON STOCK OUTSTANDING 326 326
BASIC EARNINGS PER COMMON SHARE:
CONTINUING OPERATIONS $ 0.56 $ 0.59
DISCONTINUED OPERATIONS 0.22 0.02
--------------- ----------------
TOTAL $ 0.78 $ 0.61
=============== ================
WEIGHTED-AVERAGE SHARES, INCLUDING
EFFECT OF DILUTIVE SECURITIES 331 331
DILUTED EARNINGS PER COMMON SHARE:
CONTINUING OPERATIONS $ 0.56 $ 0.59
DISCONTINUED OPERATIONS 0.22 0.02
--------------- ----------------
TOTAL $ 0.78 $ 0.61
=============== ================
DIVIDENDS DECLARED PER COMMON SHARE $ 0.27 $ 0.25
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EDISON INTERNATIONAL
Financial Overview
March 31, 2006
UNAUDITED
Dollars in Millions, Except Per-Share Amounts
EDISON INTERNATIONAL (Consolidated)
First Quarter
2006 2005
------- -------
Assets $34,651 $33,463
Common Equity $6,899 $6,100
Revenue $2,751 $2,446
Earnings* $258 $201
Earnings Per Common Share* $0.78 $0.61
Book Value Per Common Share $21.17 $18.72
*includes parent company
SOUTHERN CALIFORNIA EDISON (Electric Utility)
First Quarter
2006 2005
------- -------
Assets $24,843 $23,901
Common Equity $4,966 $4,640
Revenue $2,217 $1,908
Earnings $121 $131
Earnings Per EIX Common Share $0.37 $0.40
EDISON MISSION GROUP (Consolidated)
(Nonutility Power Generation and Investments)
First Quarter
2006 2005
------- -------
Assets $11,187 $10,872
Common Equity $2,834 $2,348
Revenue $534 $539
Earnings $146 $83
Earnings Per EIX Common Share $0.45 $0.26
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SOUTHERN CALIFORNIA EDISON
kWh Sales (In thousands)
March 31, 2006
Quarter Ended March 31,
--------------------------------------------------------------------
Increase/
2006 2005 (Decrease) %
- -------------------------------------------------------------------------------------------------------------
Residential 6,871,071 7,090,845 (219,774) (3.10)
Agricultural 187,067 147,653 39,414 26.69
Commercial 9,366,772 9,032,765 334,007 3.70
Industrial 2,623,563 2,568,147 55,416 2.16
Public Authorities 1,364,707 1,357,951 6,756 0.50
Railroads & Railways 15,358 15,464 (106) (0.69)
Interdepartmental 342 9 333 *
- ------------------------------------------------------------------------------------------------
Sales to Ultimate Consumers 20,428,880 20,212,834 216,046 1.07
Resale Sales 1,860,844 3,727,546 (1,866,702) (50.08)
- ------------------------------------------------------------------------------------------------
Total kWh Sales 22,289,724 23,940,380 (1,650,656) (6.89)
- ------------------------------------------------------------------------------------------------
*over 200%
