Edison International (EIX) 8-K Edison International Reports 2007 Third Quarter Results

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Media Relations: Charles Coleman,(626) 302-7982

www.edisonnews.com

Investor Relations: Scott Cunningham,(626) 302-2540

www.edisoninvestor.com

Edison International Reports 2007 Third Quarter Results

• Third quarter 2007 basic earnings per common share were $1.40, up 1% from the third quarter of 2006. Core earnings¹ grew 7% to $1.41 per share primarily due to solid operating results across our major businesses.

• Year-to-date basic earnings per common share were $2.69, down less than 1% from the prior period, while core earnings were $3.04 per share, up 25% from the prior year, driven by strong margins at Midwest Generation and Homer City, solid operating results at Southern California Edison Company (SCE), and lower net interest expense at Edison Mission Group (EMG). The change in non-core items more than offset the core increases.

• The company now expects earnings to be at the high end of its guidance range of $3.24 to $3.59 for core earnings per share and $2.90 to $3.25 for reported earnings per share.

Edison International Third Quarter Financial Highlights

	Quarter Ended September 30,				Change
(In millions, except per share data)	2007		2006		$		%
Basic earnings per common share	$	1.40	$	1.38	$	0.02	1	%
Core earnings per common share	$	1.41	$	1.32	$	0.09	7	%
Net income	$	461	$	458	$	3	1	%
Core earnings	$	465	$	436	$	29	7	%

THIRD QUARTER EARNINGS SUMMARY

ROSEMEAD, Calif., November 2, 2007 – Edison International (NYSE: EIX) today reported basic earnings per common share of $1.40 in the third quarter of 2007, compared to $1.38 basic earnings per common share in the same period last year. Excluding discontinued operations and other non-core items, third quarter core earnings per share were $1.41, up 7% over last year.

“Edison International continues to deliver strong financial results and advance its growth plans,” said John E. Bryson, chairman and CEO. “Our proposed five-year investment program at Southern California Edison is consistent with California energy policy goals. At EMG, capacity markets are demonstrating higher value for our generating fleet, and we continue to place new wind projects into construction. ”

¹ Core earnings is a non-GAAP financial measure; see reconciliation of core earnings to reported earnings and reconciliation of core earnings guidance to total earnings guidance below.

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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THIRD QUARTER EARNINGS DETAIL

Earnings from Continuing Operations

SCE 2007 third quarter earnings from continuing operations were $0.80 per share compared to earnings of $0.81 per share in the same period last year. SCE’s 2006 third quarter results include a $0.07 per share non-core benefit from a generator settlement. Excluding this item, SCE’s core earnings increased by $0.06 per share. This increase was primarily related to higher net revenue associated with the 2006 general rate case. Due to higher kWh sales from warmer weather during the summer months and the company’s rate design, electric utility revenue during the third quarter of each year is generally higher than other quarters.

EMG 2007 third quarter earnings from continuing operations and core earnings were $0.64 per share compared to $0.62 per share in the same period last year. The improvement was primarily due to lower net interest expense from debt repayment and higher energy margins, partially offset by higher development and corporate costs.

Loss from Discontinued Operations

Edison International’s losses from discontinued operations were $0.01 per share in each period, and were related to EMG’s former international projects.

	Quarter Ended September 30,
Earnings (Loss) Per Common Share (Unaudited)	2007			2006			Change
Southern California Edison Company	$	0.80		$	0.81		$	(0.01	)
Edison Mission Group		0.64			0.62			0.02
EIX parent company and other		(0.03	)		(0.04	)		0.01
EIX basic earnings per common share from continuing operations		1.41			1.39			0.02
Loss from discontinued operations		(0.01	)		(0.01	)		—
EIX basic earnings per common share	$	1.40		$	1.38		$	0.02
EIX diluted earnings per common share	$	1.39		$	1.38		$	0.01
	Quarter Ended September 30,
Earnings (Loss) (in millions) (Unaudited)	2007			2006			Change
Southern California Edison Company	$	262		$	263		$	(1	)
Edison Mission Group		207			204			3
EIX parent company and other		(4	)		(7	)		3
EIX income from continuing operations		465			460			5
Loss from discontinued operations		(4	)		(2	)		(2	)
EIX net income	$	461		$	458		$	3

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Third Quarter Reconciliation of Core Earnings to Reported Earnings

		Quarter Ended September 30,
Core Earnings1 (Loss) Per Common Share (Unaudited)		2007			2006			Change
Southern California Edison Company		$	0.80		$	0.74		$	0.06
Edison Mission Group			0.64			0.62			0.02
EIX parent company and other			(0.03	)		(0.04	)		0.01
EIX core earnings per share			1.41			1.32			0.09
Non-core items
SCE – generator settlement			—			0.07			(0.07	)
EMG – loss from discontinued operations			(0.01	)		(0.01	)		—
Total non-core items			(0.01	)		0.06			(0.07	)
EIX basic earnings per common share		$	1.40		$	1.38		$	0.02
		Quarter Ended September 30,
Core Earnings1 (Loss) (in millions) (Unaudited)		2007			2006			Change
Southern California Edison Company		$	262		$	239		$	23
Edison Mission Group			207			204			3
EIX parent company and other			(4	)		(7	)		3
EIX core earnings			465			436			29
Non-core items	��
SCE – generator settlement			—			24			(24	)
EMG – loss from discontinued operations			(4	)		(2	)		(2	)
Total non-core items			(4	)		22			(26	)
Total EIX net income		$	461		$	458		$	3

¹ See Use of Non-GAAP Financial Measures on page 7. The impact of participating securities is included in EIX parent company earnings (loss) and was $(0.02) and $(0.03) per share for the quarter ended September 30, 2007 and 2006, respectively.

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YEAR-TO-DATE EARNINGS SUMMARY

Edison International Year-to-Date Financial Highlights

	Year-to-Date September 30,				Change
(In millions, except per share data)	2007		2006		$			%
Basic earnings per common share	$	2.69	$	2.71	$	(0.02	)	(1	%)
Core earnings per common share	$	3.04	$	2.43	$	0.61		25	%
Net income	$	887	$	893	$	(6	)	(1	%)
Core earnings	$	1,003	$	800	$	203		25	%

Edison International recorded earnings of $2.69 per basic share for the nine-month period ending September 30, 2007, down less than 1% from the same period last year. Earnings from continuing operations of $2.69 per basic share compared to $2.48 per share for the prior period. Excluding earnings from discontinued operations and other non-core items, Edison International’s core earnings for the nine-month period were $3.04 per share, up 25% compared to $2.43 per share in the same period in 2006.

YEAR-TO-DATE EARNINGS DETAIL

Earnings from Continuing Operations

SCE’s earnings from continuing operations in the first nine months of 2007 were $1.80 per share compared to $1.90 per share a year ago. SCE’s 2007 results include a non-core tax benefit of $0.10 per share primarily reflecting progress on an appeal with the Internal Revenue Service related to the income tax treatment of certain costs associated with environmental remediation. SCE’s 2006 results include a non-core benefit of $0.25 per share related to resolution of an issue related to state income taxes and a generator settlement of $0.07 per share. Excluding non-core items, SCE’s core earnings were $1.70 per share, compared to $1.58 per share, in the same period last year. The increase is mainly due to higher net revenue associated with the 2006 general rate case decision and lower income taxes.

EMG’s earnings from continuing operations for the first nine months of 2007 were $0.96 per share versus $0.68 per share in the same period last year. Both 2007 and 2006 results were impacted by non-core charges of $0.45 and $0.27 per share respectively, primarily associated with early debt extinguishment. Excluding non-core items, EMG’s core earnings were $1.41 per share compared to $0.95 per share last year. This increase primarily reflects higher energy margins at Midwest Generation and Homer City, higher project income, and higher contribution from Edison Capital, partially offset by higher development and corporate costs.

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Earnings from Discontinued Operations

Edison International’s earnings per share from discontinued operations were immaterial for the nine-month period ending September 30, 2007 and $0.23 for the same period last year, with earnings resulting primarily from distributions from EMG’s Lakeland project in administrative receivership in the United Kingdom.

	Year-to-Date September 30,
Earnings (Loss) Per Common Share (Unaudited)	2007			2006			Change
Southern California Edison Company	$	1.80		$	1.90		$	(0.10	)
Edison Mission Group		0.96			0.68			0.28
EIX parent company and other		(0.07	)		(0.10	)		0.03
EIX basic earnings per common share from continuing operations		2.69			2.48			0.21
Earnings from discontinued operations		—			0.23			(0.23	)
EIX basic earnings per common share	$	2.69		$	2.71		$	(0.02	)
EIX diluted earnings per common share	$	2.67		$	2.71		$	(0.04	)
	Year-to-Date September 30,
Earnings (Loss) (in millions) (Unaudited)	2007			2006			Change
Southern California Edison Company	$	587		$	618		$	(31	)
Edison Mission Group		313			221			92
EIX parent company and other		(14	)		(22	)		8
EIX income from continuing operations		886			817			69
Income from discontinued operations		1			75			(74	)
Cumulative effect of accounting change – net of tax		—			1			(1	)
EIX net income	$	887		$	893		$	(6	)

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Year-to-Date Reconciliation of Core Earnings to Reported Earnings

	Year-to-date September 30,
Core Earnings1 (Loss) Per Common Share (Unaudited)	2007			2006			Change
Southern California Edison Company	$	1.70		$	1.58		$	0.12
Edison Mission Group		1.41			0.95			0.46
EIX parent company and other		(0.07	)		(0.10	)		0.03
EIX core earnings per share		3.04			2.43			0.61
Non-core items
SCE – regulatory/tax items		0.10			0.25			(0.15	)
SCE – generator settlement		—			0.07			(0.07	)
EMG – early debt retirement		(0.45	)		(0.27	)		(0.18	)
EMG – earnings from discontinued operations		—			0.23			(0.23	)
Total non-core items		(0.35	)		0.28			(0.63	)
EIX basic earnings per common share	$	2.69		$	2.71		$	(0.02	)
	Year-to-date September 30,
Core Earnings1 (Loss) (in millions) (Unaudited)	2007			2006			Change
Southern California Edison Company	$	556		$	513		$	43
Edison Mission Group		461			309			152
EIX parent company and other		(14	)		(22	)		8
EIX core earnings		1,003			800			203
Non-core items
SCE – regulatory/tax items		31			81			(50	)
SCE – generator settlement		—			24			(24	)
EMG – early debt retirement		(148	)		(88	)		(60	)
EMG – income from discontinued operations		1			75			(74	)
Total non-core items		(116	)		92			(208	)
Cumulative effect of accounting change – net of tax		—			1			(1	)
Total EIX net income	$	887		$	893		$	(6	)

¹ See Use of Non-GAAP Financial Measures on page 7. The impact of participating securities is included in EIX parent company earnings (loss) and was $(0.03) per share for year-to-date September 30, 2007 and 2006.

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Reconciliation of Core Earnings Guidance to Total Earnings Guidance

Core EPS1	2007 Guidance
Southern California Edison Company	$1.97 – 2.07
Edison Mission Group	1.40 – 1.65
EIX parent company and other	(0.13)
EIX core earnings per share	$3.24 – 3.59
Non-Core Items2
Southern California Edison Company	0.10
Edison Mission Group	(0.44)
Total Non-Core Items	(0.34)
EIX basic earnings per common share	$2.90 – 3.25

¹ The impact of participating securities is included in EIX parent company earnings (loss) and is ($0.04) per share.

² 2007 non-core items reflect refinancing costs of $(0.45) and $0.01 per share from discontinued operations for EMG, and a tax benefit of $0.10 per share for SCE.

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and EPS by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and EPS by principal operating subsidiary as primary performance measurements when communicating with analysts and investors regarding our earnings results and outlook, as it allows us to more accurately compare the company’s ongoing performance across periods. Core earnings exclude discontinued operations and other non-core items and are reconciled to basic earnings per common share.

EPS by principal operating subsidiary is based on the principal operating subsidiary net income and Edison International’s weighted average outstanding common shares. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for each principal operating subsidiary is not material to each principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which we refer to as EIX parent company. EPS and core EPS by principal operating subsidiary are reconciled to basic earnings per common share.

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Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its third quarter 2007 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” by phone or through a simultaneous webcast at www.edisoninvestor.com. A presentation accompanying management’s comments on the conference call will be available on the web site as well at www.edisoninvestor.com. The domestic call-in number is (800) 356-8584 and the ID# is 11400. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through Friday, November 9, 2007, at the following numbers: (877) 693-4277 – for callers in the U.S.; and (402) 220-0042 – for international callers. The ID# is 11401.

Risk Disclosure Statement

Statements contained in this presentation about future performance, including, without limitation, earnings, asset and rate base growth, load growth, capital investments, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s 2006 Form 10-K and subsequent reports filed with the Securities and Exchange Commission and are available on our website: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this presentation, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

# # #

Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, the largest electric utility in California, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.

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Edison International

Consolidated Statements of Income

	Three Months Ended September 30,						Nine Months Ended September 30,
In millions, except per-share amounts	2007			2006			2007			2006
	(Unaudited)
Electric utility	$	3,213		$	3,079		$	7,895		$	7,818
Nonutility power generation		711			704			1,952			1,674
Financial services and other		18			19			55			63
Total operating revenue		3,942			3,802			9,902			9,555
Fuel		502			486			1,425			1,326
Purchased power		1,284			1,036			2,431			2,819
Provisions for regulatory adjustment clauses – net		(66	)		115			189			(256	)
Other operation and maintenance		1,013			909			2,893			2,727
Depreciation, decommissioning and amortization		310			293			937			924
Net loss (gain) on sale of utility property and plant		1			—			—			(1	)
Total operating expenses		3,044			2,839			7,875			7,539
Operating income		898			963			2,027			2,016
Interest and dividend income		40			41			125			120
Equity in income from partnerships and unconsolidated subsidiaries – net		35			39			72			53
Other nonoperating income		35			16			75			91
Interest expense – net of amounts capitalized		(191	)		(199	)		(577	)		(608	)
Loss on early extinguishment of debt		—			—			(241	)		(143	)
Other nonoperating deductions		(7	)		(13	)		(31	)		(35	)
Income from continuing operations before tax and minority interest		810			847			1,450			1,494
Income tax expense		263			310			392			516
Dividends on preferred and preference stock of utility not subject to mandatory redemption		13			13			38			38
Minority interest		69			64			134			123
Income from continuing operations		465			460			886			817
Income (loss) from discontinued operations – net of tax		(4	)		(2	)		1			75
Income before accounting change		461			458			887			892
Cumulative effect of accounting change – net of tax		—			—			—			1
Net income	$	461		$	458		$	887		$	893
Weighted-average shares of common stock outstanding		326			326			326			326
Basic earnings (loss) per common share:
Continuing operations	$	1.41		$	1.39		$	2.69		$	2.48
Discontinued operations		(0.01	)		(0.01	)		—			0.23
Total	$	1.40		$	1.38		$	2.69		$	2.71
Weighted-average shares, including effect of dilutive securities		330			330			331			331
Diluted earnings (loss) per common share:
Continuing operations	$	1.40		$	1.39		$	2.67		$	2.48
Discontinued operations		(0.01	)		(0.01	)		—			0.23
Total	$	1.39		$	1.38		$	2.67		$	2.71
Dividends declared per common share	$	0.29		$	0.27		$	0.87		$	0.81

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Edison International

Consolidated Balance Sheets

In millions	September 30, 2007			December 31, 2006
	(Unaudited)
ASSETS
Cash and equivalents	$	1,458		$	1,795
Restricted cash		60			59
Margin and collateral deposits		137			124
Receivables, less allowances of $30 and $29 for uncollectible accounts at respective dates		1,282			1,014
Accrued unbilled revenue		506			303
Fuel inventory		119			122
Materials and supplies		307			270
Accumulated deferred income taxes – net		240			203
Derivative assets		201			328
Regulatory assets		295			554
Short-term investments		352			558
Other current assets		206			152
Total current assets		5,163			5,482
Nonutility property – less accumulated provision for depreciation of $1,706 and $1,627 at respective dates		4,703			4,356
Nuclear decommissioning trusts		3,398			3,184
Investments in partnerships and unconsolidated subsidiaries		293			308
Investments in leveraged leases		2,514			2,495
Other investments		112			91
Total investments and other assets		11,020			10,434
Utility plant, at original cost:
Transmission and distribution		18,492			17,606
Generation		1,681			1,465
Accumulated provision for depreciation		(5,050	)		(4,821	)
Construction work in progress		1,584			1,486
Nuclear fuel, at amortized cost		224			177
Total utility plant		16,931			15,913
Regulatory assets		2,825			2,818
Restricted cash		58			91
Margin and collateral deposits		19			4
Derivative assets		129			131
Rent payments in excess of levelized rent expense under plant operating leases		717			556
Other long-term assets		958			832
Total long-term assets		4,706			4,432
Total assets	$	37,820		$	36,261

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Edison International

Consolidated Balance Sheets

In millions, except share amounts	September 30, 2007			December 31, 2006
	(Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Long-term debt due within one year	$	236		$	488
Accounts payable		850			926
Accrued taxes		313			155
Accrued interest		204			196
Counterparty collateral		42			36
Customer deposits		217			198
Book overdrafts		254			140
Derivative liabilities		200			181
Regulatory liabilities		1,316			1,000
Other current liabilities		986			983
Total current liabilities		4,618			4,303
Long-term debt		9,056			9,101
Accumulated deferred income taxes – net		5,291			5,297
Accumulated deferred investment tax credits		117			122
Customer advances		158			160
Derivative liabilities		86			86
Power-purchase contracts		25			32
Accumulated provision for pensions and benefits		1,164			1,099
Asset retirement obligations		2,831			2,759
Regulatory liabilities		3,315			3,140
Other deferred credits and other long-term liabilities		1,546			1,267
Total deferred credits and other liabilities		14,533			13,962
Total liabilities		28,207			27,366
Minority interest		309			271
Preferred and preference stock of utility not subject to mandatory redemption		915			915
Common stock, no par value (325,811,206 shares outstanding at each date)		2,116			2,080
Accumulated other comprehensive income (loss)		(33	)		78
Retained earnings		6,306			5,551
Total common shareholders’ equity		8,389			7,709
Total liabilities and shareholders’ equity	$	37,820		$	36,261

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Edison International

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
In millions	2007			2006
	(Unaudited)
Cash flows from operating activities:
Net income	$	887		$	893
Less: income from discontinued operations – net of tax		1			75
Income from continuing operations		886			818
Adjustments to reconcile to net cash provided by operating activities:
Cumulative effect of accounting change – net of tax		—			(1	)
Depreciation, decommissioning and amortization		937			924
Realized loss on nuclear decommissioning trusts		42			—
Other amortization		94			71
Minority interest		134			123
Deferred income taxes and investment tax credits		(83	)		(154	)
Equity in income from partnerships and unconsolidated subsidiaries		(72	)		(53	)
Income from leveraged leases		(46	)		(52	)
Levelized rent expense		(161	)		(160	)
Loss on early extinguishment of debt		241			143
Regulatory assets – long-term		53			117
Regulatory liabilities – long-term		(4	)		(151	)
Derivative assets – long-term		8			(73	)
Derivative liabilities – long-term		(40	)		139
Other assets		(25	)		(90	)
Other liabilities		276			5
Margin and collateral deposits – net of collateral received		(20	)		462
Receivables and accrued unbilled revenue		(467	)		(286	)
Derivative assets – short-term		72			204
Derivative liabilities – short-term		(80	)		5
Inventory and other current assets		(56	)		(63	)
Regulatory assets – short-term		259			(20	)
Regulatory liabilities – short-term		316			606
Accrued interest and taxes		366			562
Accounts payable and other current liabilities		(77	)		(235	)
Distributions and dividends from unconsolidated entities		43			19
Operating cash flows from discontinued operations		1			82
Net cash provided by operating activities		2,597			2,942
Cash flows from financing activities:
Long-term debt issued		2,930			1,877
Premium paid on extinguishment of debt and issuance costs		(240	)		(145	)
Long-term debt repaid		(3,061	)		(1,954	)
Issuance of preference stock		—			196
Rate reduction notes repaid		(178	)		(177	)
Change in book overdrafts		131			(31	)
Shares purchased for stock-based compensation		(192	)		(124	)
Proceeds from stock option exercises		77			45
Excess tax benefits related to stock option exercises		39			18
Dividends to minority shareholders		(76	)		(114	)
Dividends paid		(283	)		(264	)
Net cash used by financing activities	$	(853	)	$	(673	)

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Edison International

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
In millions	2007			2006
	(Unaudited)
Cash flows from investing activities:
Capital expenditures	$	(1,979	)	$	(1,757	)
Purchase of interest of acquired companies		(28	)		(18	)
Proceeds from sale of property and interests in projects		—			43
Proceeds from nuclear decommissioning trust sales		2,866			2,145
Purchases of nuclear decommissioning trust investments		(2,967	)		(2,253	)
Proceeds from partnerships and unconsolidated subsidiaries, net of investment		17			53
Maturities and sales of short-term investments		7,380			4,608
Purchase of short-term investments		(7,174	)		(4,764	)
Restricted cash		36			(10	)
Customer advances for construction and other investments		(232	)		(5	)
Net cash used by investing activities		(2,081	)		(1,958	)
Net Increase (decrease) in cash and equivalents		(337	)		311
Cash and equivalents, beginning of period		1,795			1,893
Cash and equivalents, end of period	$	1,458		$	2,204