Exhibit 99.1
Leading the Way in Electricity SM
Business Update
November 2007
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Forward-Looking Statements
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 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.
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Strategic Overview
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Edison International Value Drivers
EIX Integrated Platform
SCE Value Drivers
Strong customer and load growth
Tight system reserve margins keep focus on power procurement Energy Efficiency programs represent a new earnings opportunity Proposed $17 billion, 5-year capital investment plan1
51%—Expand and strengthen distribution system
25%—New transmission for system reliability and renewables
16%—San Onofre steam generators and small generation units (“Peakers”)
8%—Edison SmartConnectTM metering program
Strengthened regulatory framework
Three-year forward rate-setting
Cost of capital
Procurement cost recovery mechanisms Financial performance
Earning assets expected to grow 12%+ annually from 2006—2011
EMG Value Drivers
Low-cost coal generation portfolio
Adjusted EBITDA exceeds $1 billion annually2 Favorable capacity market trends Operational and marketing/trading capabilities
Focus on optimizing merchant margins
Experienced/value-added trading capability Debt refinanced at attractive terms Effective allocation of cash
New generation investments
Hedging collateral
Phased environmental compliance Diversify and grow the generation portfolio
Focus on development of non-coal projects with long-term contracts, regional diversity
Emphasize renewables, natural gas, IGCC
1 Subject to timely receipt of permitting, licensing and regulatory approvals. See SCE Growth Driver-Investment slides for further information.
2 See Edison Mission Group – adjusted EBITDA in appendix for reconciliation to net income. 2007 adjusted EBITDA calculation based on mid-point of EMG guidance range.
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Our Business Portfolio
Edison International
| | |
Revenue1 | | $12.6 |
Operating Cash Flow1 | | $3.6 |
Generation Capacity (MW) | | 14,799 |
Market Capitalization | | $18.5 |
Southern California Edison
| | | | |
Revenue | | $ | | 10.3 |
Operating Cash Flow | | | | $2.6 |
Generation Capacity (MW) | | 5,299 |
Population Served (MM) | | | | 13+ |
Edison Mission Group
Revenue $2.3 Operating Cash Flow $1.2 Generation Capacity (MW) 9,500 Wind Pipeline (MW) ~ 3,000
1 | | Reflects inter-company eliminations. |
Note: Financial data is for the year ended December 31, 2006; capacity and wind pipeline data is as of September 30, 2007, and market capitalization is as of October 26, 2007. Dollar amounts in billions, population served in millions. Edison Mission Group includes Edison Mission Energy and Edison Capital.
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Our Value Proposition
Strong utility platform with earning assets targeted for 12%+ annual growth
Competitive generation business with low-cost coal portfolio and solid development pipeline
Visible earnings and cash flow growth Valuable business position
Increasing capacity values for coal-fired assets
Attractive and sustainable growth investment opportunities Earnings growth and financial flexibility support dividend growth
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Growth Strategies
Southern California Edison
Driven principally by rate base investment growth Investments emphasize:
Transmission – system reliability, renewables mandates Distribution – system reliability, demand growth Generation – meeting peak system demand, demand growth and system reliability Energy efficiency – e.g. Edison SmartConnectTM advanced metering system
Edison Mission Group
Optimize business financial performance Investments diversify portfolio and emphasize: Renewables led by significant wind development pipeline of ~3,000 MW Gas-fired generation
Advanced fossil fuel technologies
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Financial Strategies
Funding Growth Investments
Southern California Edison
Operating cash flow and financing Edison Mission Energy
Cash on hand, operating cash flow, project debt
Focus on organic growth
Credit Objectives1
Southern California Edison
A rating metrics (current: S&P BBB, Fitch A, Moody’s A3) Edison Mission Energy
BB rating metrics (current: S&P & Fitch BB-, Moody’s B1)
Dividend Policy
Targeting annual dividend increases
Dividend increases balanced with growth investments Parent financing capacity supports financial strategies SCE and Edison Capital cash flows fund dividend given EMG growth opportunities
1 | | Senior unsecured credit ratings shown. |
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Earnings Guidance
Reconciliation of Core Earnings Guidance to Total Earnings Guidance
| | | | |
| | | 2007
Guidance | |
| | |
| reaffirmed
as |
|
Core EPS1 | | | of 11/02/07 | |
Southern California Edison | | $
| 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 | | | 0.10 | |
Edison Mission Group | | | (0.44 | ) |
Total Non-Core Items | | | (0.34 | ) |
EIX basic earnings per common share | | $
| 2.90 - $
3.25 |
|
1 See use of Non-GAAP Financial Measures in appendix. The impact of participating securities is included in EIX parent company earnings (loss) and is ($0.04).
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.
November 2, 2007
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Southern California Edison (SCE)
An Investor-Owned Electric Utility
November 2, 2007
EDISON INTERNATIONAL®
9
Leading the Way in Electricity SM
SCE Value Driver – System Growth
SCE’s service territory has
4 | | of the 10 fastest growing counties in the nation2 |
5 | | of the 25 fastest growing cities in the nation3 New meter connections |
Expect to be 75,626 in 2007
385,791 meters added in the past 5 years Home remodeling and population gains in high-temperature regions contribute to growth Peak Demand
August 2007 demand peak 23,303 MW 6.2% growth from 2005 peak 12.2% higher than 2004 peak
Strong customer and load growth keeps statewide focus on the need to expand and strengthen the utility infrastructure
1 | | 2007 figures projected for full-year. |
2 LA, Riverside, San Bernardino and Orange counties. US Census Bureau data, in terms of population increase between 2000 and 2005.
3 Moreno Valley, Rancho Cucamonga, Irvine, Lancaster and Fontana. US Census Bureau data, in terms of population percentage increase between 2004 and 2005.
November 2, 2007
EDISON INTERNATIONAL®
10
Leading the Way in Electricity SM
SCE Value Driver – Renewable Power Procurement
State law requires SCE to increase its procurement of renewables by at least 1% of its annual retail sales per year, so that 20% of such sales are procured from renewables by the end of 20101 SCE’s current renewable portfolio (2006 data)
Renewable resources ~13 billion kWh
Represents ~17% of customer power deliveries SCE’s 2010 renewable resources target ~16 billion kWh Completed four renewable power solicitations to date; 2007 solicitation to be finalized by 2Q 08
SCE – the nation’s leading renewable energy purchaser in 2006
Agreement with Alta Windpower Development LLC
Secures at least 1,500 MW of power, more than doubling SCE’s wind portfolio
The wind project, when completed, will be twice the size of the largest wind project in the U.S.
Projects to be built in Tehachapi, California
Expanded Geothermal Agreement with Calpine
SCE expanded agreement to purchase 225 MW of geothermal energy for 10 years
SCE entered into a new agreement for 714 MW of non-renewable capacity for 2008 – 2011
1 CPUC allows for “cumulative deficit banking” which would enable SCE to carry forward and accumulate annual deficits until the deficit has been satisfied at a later time through actual deliveries of eligible renewable energy.
November 2, 2007
EDISON INTERNATIONAL®
11
Leading the Way in Electricity SM
SCE Value Driver – Conventional Power Procurement
All-Source RFO
Contracts totaling up to 3,450 MW were executed in January 2007
Contracts cover 2007 – 2011 and include energy and capacity
New all-source RFO was launched in July 2007 and closed in October 2007
Contracts totaling up to 3,250 MW executed covering 2009 – 2013
New Generation RFO
Solicited up to 1,500 MW of new IPP generation – 1,205 MW has been awarded
Summer 2007 Track
NRG received a 10-year PPA to provide 260 MW Project in-service in August 2007
Fast Track
On-line by August 2010
Blythe Energy and Competitive Power Ventures each received 10-year PPAs for 490 and 455 MW, respectively CPUC decision pending
Standard Track
On-line by August 2013 Shortlist notification June 2007
Notification of successful offers in January 2008
In December 2007 the CPUC is expected to determine if additional procurement may be necessary in its upcoming Long-Term Procurement Plan decision
CPUC has provided cost recovery assurance
November 2, 2007
EDISON INTERNATIONAL®
12
Leading the Way in Electricity SM
SCE Growth Driver – Investment
Proposed Five-Year Capital Spending Plan $ Billions $5 $4 $3 $2 $1 $0
2007 2008 2009 2010 2011 $2.4 $2.8 $3.9 $4.2 $4.0
Forecast by Classification
| | | | | |
| | | $ | | % |
Edison SmartConnectTM | | | 1.3 | | 8 |
Generation | | | 2.8 | | 16 |
Transmission | | | 4.3 | | 25 |
Distribution | | | 8.9 | | 51 |
Total1 | | | 17.3 | | 100 |
Current Forecast by Proceeding | | | | | |
| | | $ | | | % |
CPUC Rate Cases | | | 11.0 | | 64 |
CPUC Project Specific | | | 2.0 | | 11 |
FERC Rate Cases | | | 4.3 | | 25 |
Total1 | | | 17.3 | | 100 |
Five-year spending plan emphasizes infrastructure replacement, renewables transmission, demand growth and energy efficiency (e.g. Edison SmartConnectTM)
1 Subject to timely receipt of permitting, licensing and regulatory approvals. Forecast is as of March 2007 and includes about $600 million of capital spending for DPV2, the majority of which was expected to occur in 2008 & 2009. The Arizona Corporation Commission (ACC) denied approval of the DPV2 project. SCE filed an appeal and is evaluating its options for the project. The denial will result in a delay of the project.
November 2, 2007
EDISON INTERNATIONAL®
13
Leading the Way in Electricity SM
SCE Growth Driver – Investment
Forecast SCE Rate Base 2006-20111 $ Billions $21 $18 $15 $12 $9 $6 $3 $0
2006 2007 2008 2009 2010 2011
Approved
Future Regulatory Proceedings
+
%
Compound
Annual
Growth
R a te $10.9 $11.7 $12.7 $14.5 $17.6 $20.4
Rate base growth provides foundation for strong SCE earnings and cash flow growth while meeting customer service and infrastructure objectives
1 Includes impact of 2006 CPUC and 2006 FERC GRC decisions and forecasted rate base for FERC (2007-2011) and CPUC (2009-2011) which are subject to timely receipt of permitting, licensing and regulatory approvals. Forecast is as of March 2007 and includes about $600 million of capital spending for DPV2, the majority of which was expected to occur in 2008 & 2009. The Arizona Corporation Commission (ACC) denied approval of the DPV2 project. SCE filed an appeal and is evaluating its options for the project. The denial will result in a delay of the project.
November 2, 2007
EDISON INTERNATIONAL®
14
Leading the Way in Electricity SM
SCE Value Driver – Capital Investment
Tehachapi transmission line to interconnect up to 4,500 MW of generation
New transmission needed to strengthen system reliability and access economical power
NEVADA CALIFORNIA
Las Vegas
Midway
Tehachapi SCE Eldorado
(PG&E) Service
Windhub
Territory
Antelope
Palmdale Lugo
Vincent Mohave ARIZONA
Santa Clarita Rancho Pardee Vista
Mira Devers Loma
Serrano Palm Phoenix
Los Angeles Springs
Valley
Santa
Ana Palo Verde
San Diego
| | | | | | | | |
| | | | | | | 2007-2011 | |
Project Name | | Phase | | In-Service | | ($
|
Millions
|
)
1 |
Renewables | | | | | | | | |
Tehachapi Segments 1—3 | | Licensing2 | | 2008 -
2009 | | | 255 | |
Tehachapi Segments 4—11 | | Licensing | | 2011 -
2013 | | | 1,504 | |
Other Renewable Projects | | Licensing | | Various | | | 343 | |
Total Renewables | | | | | | | 2,102 | |
Reliability | | | | | | | | |
Rancho Vista Substation | | Construction | | 2009 | | | 213 | |
Other Reliability Projects | | Various | | Various | | | 1,351 | |
Total Reliability | | | | | | | 1,564 | |
Economics | | | | | | | | |
DPV2 | | Licensing3 | | 2009 | | | 587 | |
GRAND TOTAL | | | | | | | 4,253 | |
Existing 500kV Tehachapi Segments 1-3 500kV DPV2 & Rancho Vista 500kV Tehachapi Segments 4-11 500kV
SCE leadership in new transmission to support system reliability and renewable energy
Subject to timely receipt of permitting, licensing and regulatory approvals. Forecast is as of March 2007. CAISO, CPUC approvals received; USFS approval for Segment 1 pending.
CAISO, CPUC, USFWS and Arizona Siting Commission approvals received. The Arizona Corporation Commission (ACC) denied approval of the DPV2 project. SCE filed an appeal and is evaluating its options for the project. The denial will result in a delay of the project.
November 2, 2007
EDISON INTERNATIONAL®
15
Leading the Way in Electricity SM
SCE Value Driver – Capital Investment
Five “Black Start” Peakers
Initiated in August 2006 at the CPUC’s request Capital investment forecast at approx. $300 million – $279 million spent or firmly committed through September 30, 2007 Four of five units placed on-line in August Oxnard peaker permit denied by the City; SCE is appealing to Coastal Commission and expects a decision in 1Q 08
San Onofre Nuclear Generation Station
• 2,150 MW total (SCE share 78.21%)
• Unit 2 SGR in service 2010
• Unit 3 SGR in service 2011
November 2, 2007
EDISON INTERNATIONAL®
16
Leading the Way in Electricity SM
SCE Value Driver – Edison SmartConnectTM
2005 2006 2007 2008 2009 2010 2011 2012
Current Schedule1
Design Phase
Pre-Deployment Phase
Deployment Phase
Schedule
Pre-deployment, which began in January 2007, includes field testing with about 3,000 homes under the $45 million Phase II CPUC authorization granted in July 2007 Phase III application filed July 2007 to deploy to 5.3 million residential and small commercial customers between 2008 – 2012; total cost estimate $1.7 billion, of which $1.3 billion is capital cost to be included in rate base1 Edison SmartConnectTM has the potential to reduce peak power consumption by as much as 1,000 MW and reduce GHG emissions by 365,000 metric tons per year
Vendor Candidates
eMeter to provide the meter data management system to support customer billing, energy information and utility operations Corix Utilities selected to provide meter installation services IBM will serve as the system integrator for Edison SmartConnectTM, managing the development and integration for the network management and meter data management system Communications Candidates: Cellnet, Itron Meter 1 Candidates: Itron, Landis + Gyr Meter 2 procurement in progress
SCE leadership in advanced metering infrastructure
1 | | Subject to CPUC approval. |
November 2, 2007
EDISON INTERNATIONAL®
17
Leading the Way in Electricity SM
SCE Value Driver – Energy Efficiency
Our Goal
Continue to strengthen our commitment to creating and improving energy efficiency (EE) in an environmentally responsible manner by supporting the strong regulatory framework in California where energy efficiency programs can thrive, and creating joint alliances with utilities and other select organizations
Our Past Accomplishments
During the past 5 years, SCE has led the nation in energy-efficiency savings
More than 4B in kWh savings – enough energy to power 500K homes for an entire year
Reduction in greenhouse gas emissions by > 2M tons – the equivalent of taking 250K cars off the road
SCE has been nationally recognized by the U.S. EPA six times
SCE has consistently offered a wide array of energy efficiency and demand response programs, providing financial incentives and/or other benefits for saving energy and shifting usage from on-peak periods
Our Current Achievements
SCE, along with 7 other utilities, recently announced their commitment to invest in energy efficiency and to seek regulatory actions to –
Increase total investment by $500M to $1.5B annually1
Reduce carbon dioxide emissions by an estimated 30M tons by 2016, the equivalent of removing 6M cars from the road, and avoiding the need for fifty 500-MW peaking power plants
Create a national institute within EEI to develop regulatory models and to foster support in the power sector
Recent Developments
? On September 20, the CPUC adopted an Energy Efficiency Risk/Reward Incentive Mechanism for two three-year periods: 2006 – 2008 & 2009 – 2011 (CPUC Decision No. D.0709043)
1 | | Represents cumulative investment of all eight utilities. |
November 2, 2007
EDISON INTERNATIONAL®
18
Leading the Way in Electricity SM
SCE Energy Efficiency Program Incentives
Under the final decision, SCE would be eligible to receive incentives based on meeting certain targets for savings, measured in terms of kilowatt hours and kilowatts The CPUC set a cumulative three-year energy efficiency savings goal for each utility for the 2006–2008 program cycle. SCE expects to achieve the following stated CPUC targets for its customers in the three-year period:
3.1 billion kilowatt-hours of energy savings; 687 megawatts of demand reduction
More than $2 billion in gross benefits and nearly $1.2 billion in net benefits, after costs Incentives are provided in a range of 9% of net customer benefits for achieving between 85% and 100% of energy efficiency targets and 12% for achieving 100% or more of the targets. Should SCE fall below 65 percent of the CPUC goals, shareholders would incur penalties Both incentives and penalties are capped at $200 million for the three-year period If SCE achieves its energy efficiency and net benefit goals of approximately $1.2 billion, the three-year pre-tax earnings opportunity would be approximately $146 million
November 2, 2007
EDISON INTERNATIONAL®
19
Leading the Way in Electricity SM
Constructive Regulatory Environment
Rate Base
General Rate Case (GRC) provides three-year forward looking rate-setting mechanism based on forecast spending; affirmed
twice
2006 GRC Decision approved majority of capital requests and operating expenses 2006 GRC Decision results in increased depreciation providing annual cash flow of about $1 billion for 2006–2008 Tendered 2009 GRC Notice of Intent in July 2007 with final application to be filed in November 2007
Investors’ Return
11.6% return on common equity (ROCE) approved through 2007 11.8% ROCE requested May 2007 in 2008 Cost of Capital application to be effective January 2008 (subject to CPUC review and approval)
Energy Efficiency
CPUC adopted mechanism allows for incentives and penalties capped at $200 million for two three-year periods: 2006–2008 & 2009–2011
Procurement Cost
Energy Resources Recovery Account (ERRA) and related Trigger Mechanism provides timely recovery of procurement costs and mitigates energy price exposure
Customer Rates
Increases in base rates (i.e. GRC) expected as the result of rate base growth. Total customer rates, however, not expected to increase appreciably due to reduction in natural gas prices
California’s regulatory framework has been strengthened to support growth and reliability needs, and mitigate risks of volatile commodity prices
November 2, 2007
EDISON INTERNATIONAL®
20
Leading the Way in Electricity SM
Edison Mission Group (EMG)
A Competitive Power Generation Company
November 2, 2007
EDISON INTERNATIONAL®
21
Leading the Way in Electricity SM
EMG – Business and Wind Growth Platforms
Washington Natural Gas 70 MW
California
Natural Gas 964 MW
Nebraska
Wind (Pipeline) 80 MW
Wyoming
Wind (UC) 141 MW
Utah
Wind (Pipeline) 89 MW
Oklahoma
Wind (UC) 95 MW Wind (Pipeline) 300 MW
Nevada
Wind (Pipeline) 315 MW
New Mexico
Wind 90 MW
Wind (Pipeline) 160 MW
Texas
Wind 161 MW Wind (UC) 150 MW Wind (Pipeline) 480 MW
Iowa
Wind 145 MW
Wind (Pipeline) 200 MW
Minnesota
Wind 75 MW Wind (UC) 70 MW Wind (Pipeline) 169 MW
Illinois
Coal 5,613 MW Natural Gas 305 MW Wind (Pipeline) 420 MW
Pennsylvania
Coal 1,884 MW Wind (UC) 67 MW Wind (Pipeline) 60 MW
Wisconsin
Wind (Pipeline) 100 MW
Maine
Wind (Pipeline) 54 MW
New York
Wind (Pipeline) 130 MW
Maryland
Wind (Pipeline) 80 MW
West Virginia
Coal 40 MW
Wind (Pipeline) 345 MW
| | | | | |
Operating Platform1 | | | |
| | | MW | | % | |
Coal | | 7,537 | | 79 | % |
Natural Gas | | 1,339 | | 14 | % |
Wind | | 471 | | 5 | % |
Other | | 153 | | 2 | % |
| | | 9,500 | | 100 | % |
| | |
Wind Development Pipeline1 |
| | | MW |
Under Construction | | 523 |
Pipeline2 | | 2,982 |
Turbines (Not Shown) 1,185 | | |
1 Natural gas includes oil-fired; other includes Doga in Turkey (144 MW) and Huntington biomass (9 MW) which are not shown. Turbines purchased or committed to support development pipeline. Data as of September 30, 2007.
2 | | Data as of September 30, 2007; owned or under exclusive agreement. |
November 2, 2007 EDISON INTERNATIONAL®
22
Leading the Way in Electricity SM
EMG – Key Value Drivers
Low-cost coal generation driver for strong EBITDA
EMG adjusted EBITDA in excess of $1 billion for last two years, also forecasted for 20071 Strong operational and marketing/trading capabilities
Effective management of fuel, transportation, and emissions to protect gross margin
More efficient and expanding market/hedging opportunities
Experienced/value-adding trading business
Long-term environmental plan for Midwest Generation Financial flexibility
EMG liquidity2 – approximately $2.5 billion as of September 30, 2007
Recent financing eliminates near-term maturities and high interest rate notes Expansion and diversification goals
Larger scale and operational efficiencies
Greater diversification of generation technology and fuel type
Bias towards development, contract vs. merchant, low emission-technologies
Focus areas – renewables, natural gas, IGCC
1 See Edison Mission Group adjusted EBITDA in appendix for reconciliation to net income; 2007 adjusted EBITDA calculation based on mid-point of EMG guidance range.
2 | | See EMG liquidity profile. |
November 2, 2007
EDISON INTERNATIONAL®
23
Leading the Way in Electricity SM
Midwest Generation – Operating Performance
YTD 07 vs. YTD 06
Generation up about 9.5%
Capacity and Load Factors increased on higher off-peak sales
Forced Outage Rate was higher due to unplanned boiler tube leaks and coal-related equipment failures
| | | | | | |
| | | YTD | | | YTD | |
Operating Statistics | | 07 | | | 06 | |
Total Generation (GWh) | | 23,169 | | | 21,167 | |
Equivalent Availability | | 78.7 | % | | 80.9 | % |
Capacity Factor | | 63.0 | % | | 57.6 | % |
Load Factor | | 80.1 | % | | 71.2 | % |
Forced Outage Rate | | 7.0 | % | | 5.7 | % |
All-in average realized price increased by about 9.9% per MWh YTD compared to the same period last year
All-in Average Realized Prices1 $60
$40
$/MWh $20
$0 $54.17 $53.30 $51.03 $48.52 $40.29 $39.90 $36.91 $34.99 $13.88 $14.12 $13.40 $13.53
3Q 07 3Q 06 YTD 07 YTD 06
Average realized gross margin ($/MWh)2 Average fuel and emission costs ($/MWh)
1 | | Includes the price of energy, capacity, ancillary services, etc. |
2 | | Average realized gross margin is equal to all-in average realized prices less average fuel and emission costs. |
November 2, 2007
EDISON INTERNATIONAL®
24
Leading the Way in Electricity SM
Homer City – Operating Performance
YTD 07 vs. YTD 06
Generation up about 12.8%
2006 Availability and Forced Outage Rates impacted by the Unit 3 transformer failure
| | | | | | |
| | | YTD | | | YTD | |
Operating Statistics | | 07 | | | 06 | |
Total Generation (GWh) | | 10,211 | | | 9,052 | |
Equivalent Availability | | 89.0 | % | | 79.4 | % |
Capacity Factor | | 82.6 | % | | 73.2 | % |
Load Factor | | 92.8 | % | | 92.1 | % |
Forced Outage Rate | | 3.7 | % | | 16.9 | % |
All-in average realized price increased by over 14.3% per MWh YTD compared to the same period last year
All-in average Realized Prices1 $60
$40
$/MWh $20
$0 $53.60 $56.48 $49.19 $49.40 $31.12 $34.48 $26.27 $25.82 $22.48 $22.92 $22.00 $23.58
3Q 07 3Q 06 YTD 07 YTD 06
Average realized gross margin ($/MWh)2 Average fuel and emission costs ($/MWh)
1 | | Includes the price of energy, capacity, ancillary services, etc. |
2 | | Average realized gross margin is equal to all-in average realized prices less average fuel and emission costs. |
November 2, 2007
EDISON INTERNATIONAL®
25
Leading the Way in Electricity SM
EMG Hedge Program Status
| | | | | | | | | | | | |
Status at September 30, 2007 | | | Remainder | | | | | | | | | |
| | | | of | | | | | | | | | |
| | | | 2007 | | | 2008 | | | 2009 | | | 2010 |
Midwest Generation | | | | | | | | | | | | |
Energy Only Contracts | | | | | | | | | | | | |
Megawatt hours (in GWh) | | | 4,132 | | | 10,838 | | | 7,487 | | | 3,472 |
Average Price ($/MWh) | | $ | 48.18 | | $ | 61.36 | | $ | 62.28 | | $ | 62.62 |
Load Requirement Services Contracts | | | | | | | | | | | | |
Estimated GWh1 | | | 1,862 | | | 5,613 | | | 1,632 | | | – |
Average price ($/MWh) 2 | | $ | 63.63 | | $ | 64.01 | | $ | 63.65 | | | – |
Total estimated GWh hedged | | | 5,994 | | | 16,451 | | | 9,119 | | | 3,472 |
Coal under contract (in millions of tons) | | | 5.0 | | | 14.6 | | | 11.7 | | | 11.7 |
Homer City | | | | | | | | | | | | |
Total estimated GWh hedged | | | 1,912 | | | 7,232 | | | 3,890 | | | 1,022 |
Average price ($ /MWh) | | $ | 64.29 | | $ | 60.87 | | $ | 74.88 | | $ | 77.80 |
Coal under contract (in millions of tons) | | | 1.4 | | | 4.4 | | | 3.5 | | | 0.2 |
1 The amount of power sold is a portion of the retail load of the purchasing utility and can vary significantly with variations in that retail load. Retail load depends upon a number of factors, including the time of day and year, and the utility’s number of new and continuing customers. Estimated MWh have been forecast based on historical patterns and on assumptions regarding the factors that may affect retail loads in the future. The actual load will vary from that used for the above estimate, and the amount of variation may be material.
2 The average price per MWh, which is subject to a seasonal price adjustment, represents the sale of a bundled product that includes, but is not limited to, energy, capacity and ancillary services. Also, Midwest Generation will incur charges from PJM as a load-serving entity. Thus, the average price per MWh is not comparable to the sale of power under an energy only contract. The average price per MWh represents the sale of the bundled product based on an estimated customer load profile.
November 2, 2007
EDISON INTERNATIONAL®
26
Leading the Way in Electricity SM
EMG Capacity Sales
| | | | | | | | | | | | | | | | | | | | | | | | |
Status at September 30, 2007 | |
| October 1, 2007 -
May 31, 2008 |
| |
| June 1, 2008 -
May 31, 2009 |
| |
| June 1, 2009 -
May 31, 2010 |
|
| | | | Midwest | | | | Homer | | | | Midwest | | | | Homer | | | | Midwest | | | | Homer | |
Megawatts except price per MW-day | | | Generation | | | | City | | | | Generation | | | | City | | | | Generation | | | | City 3 | |
INSTALLED CAPACITY | | | 5,918 | | | | 1,884 | | | | 5,918 | | | | 1,884 | | | | 5,918 | | | | 1,884 | |
Less: Net capacity held due to loadrequirements servicescontracts,1 and retained for | | | (2,822 | ) | | | (213 | ) | | | (1,755 | ) | | | (173 | ) | | | (589 | ) | | | (214 | ) |
outages | | | | | | | | | | | | | | | | | | | | | | | | |
NET CAPACITY AVAILABLE FOR SALE | | | 3,096 | | | | 1,671 | | | | 4,163 | | | | 1,711 | | | | 5,329 | | | | 1,670 | |
Fixed Price Capacity Sales | | | | | | | | | | | | | | | | | | | | | | | | |
· RPM Auction Process | | | | | | | | | | | | | | | | | | | | | | | | |
- Net Capacity Sold | | | 2,596 | | | | 786 | | | | 3,283 | | | | 820 | | | | 4,614 | | | | 1,670 | |
- Price per MW-day | | $ | 40.80 | | | $ | 40.80 | | | $ | 111.92 | | | $ | 111.92 | | | $ | 102.04 | | | $ | 191.32 | |
· Non-unit Specific Capacity Sales | | | | | | | | | | | | | | | | | | | | | | | | |
- Net Capacity Sold | | | 500 | | | | — | | | | 880 | | | | — | | | | 715 | | | | — | |
- Price per MW-day (Net) | | $ | 21.31 | | | $ | — | | | $ | 64.35 | | | | — | | | $ | 71.46 | | | | — | |
Variable Capacity Sales | | | | | | | | | | | | | | | | | | | | | | | | |
· Third Party Transaction | | | | | | | | | | | | | | | | | | | | | | | | |
- Capacity | | | — | | | | 885 | | | | — | | | | 891 | | | | — | | | | — | |
- Expected price per MW-day 2 | | $ | — | | | $ | 66.72 | | | $ | — | | | $ | 72.11 | | | | — | | | | — | |
TOTAL CAPACITY SOLD | | | 3,096 | | | | 1,671 | | | | 4,163 | | | | 1,711 | | | | 5,329 | | | | 1,670 | |
AVERAGE PRICE PER MW-DAY | | $ | 37.65 | | | $ | 54.53 | | | $ | 101.86 | | | $ | 91.19 | | | $ | 97.94 | | | $ | 191.32 | |
1 | | Load requirements services contracts include energy, capacity and ancillary services. |
2 Actual contract price for Homer City sale is a function of NYISO capacity auction clearing prices. Capacity price per MW-day is based on forward over-the-counter NYISO prices on September 28, 2007.
3 | | Homer City was segregated out of the “rest of market” location in PJM into MAAC + APS. |
November 2, 2007
EDISON INTERNATIONAL®
27
Leading the Way in Electricity SM
EMG – Operational, Marketing and Trading Capabilities
Optimize forward sales opportunities
Extending hedge program Reducing collateral requirements
RPM Auctions provide new option to sell capacity
June 1, 2009 – May 31, 2010 auction
• Clearing price for MWG = $102.04/MW-day
• Homer City clearing price = $191.32/MW-day
• Sold net 4,614 MW of capacity from MWG and net 1,670 MW of capacity from Homer
City
EMMT provides opportunistic trading revenues
Leverage knowledge gained from managing merchant coal fleet
Trading primarily transmission congestion products and electricity basis spreads
Controls on types and sizes of exposures
Allowed products and region (large majority of positions are low-risk congestion contracts)
VaR, volumetric, duration and credit limits
EMMT Trading Revenue
($ MM pre-tax)
200 150 100 50 0 $23 $195 $130 $103
2004 2005 2006 2007 YTD
Edison Mission Marketing and Trading provides significant incremental income from trading activity
November 2, 2007
EDISON INTERNATIONAL®
28
Leading the Way in Electricity SM
EMG Growth Driver – Recapitalization $2.7 billion EMG refinancing Favorable market conditions Enhanced financial flexibility
Moves refinancing risk past environmental spending period Simplifies capital structure Facilitates longer-term hedging Expands liquidity
Tender premium and other non-core1 costs: $0.45 per share
2007 Edison Mission Energy Debt Financing $1.200 billion 7.00% Senior Notes due 2017 . $800 million 7.20% Senior Notes due 2019 . $700 million 7.625% Senior Notes due 2027 .
1 | | See Year-to-Date Financial Results in appendix for reconciliation of core earnings to reported earnings. |
November 2, 2007
EDISON INTERNATIONAL®
29
Leading the Way in Electricity SM
EMG – Midwest Gen Environmental Agreement
Comprehensive agreement addresses mercury, NOx, and SO2 emissions
Achieves specified emission reductions through retrofits or unit shutdowns
Mercury – 90% removal by 2015
NOx – emissions of 0.11 lbs. per million Btus by 2011 (66% reduction)
SO2 – emissions of 0.11 lbs. per million Btus by 2019, with interim step downs
(78% reduction)
Helps continue good relationships with key constituents and regulators and supports growth
Agreement supported by Gov. Blagojevich, City of Chicago, and several influential environmental and community groups
Illinois EPA assistance with IGCC and wind development, permit approvals Emission credit selling allowed Agreement filed under Illinois State Implementation Plan of CAIR
Provides reasonable certainty of amount & timing of emission reductions through 2018
November 2, 2007
EDISON INTERNATIONAL®
30
Leading the Way in Electricity SM
EMG – Environmental Compliance
MWG Compliance Plan
Phase 1 – Reduction of Mercury Emissions
Installation of Activated Carbon Injection (ACI) technology by July 2009
Estimated cost approx. $60 million
Phase 2 – Reduction of NOx Emissions
Installation of primarily Selective Catalytic Reduction (SCR) systems by the end of 2011
Estimated cost approx. $450 million
Phase 3 – Reduction of SO2 Emissions
Flue Gas Desulfurization (FGD) technology
Estimated cost $2.2 – $2.9 billion Shutdown of Small Units
Waukegan 6 (100 MW) – by end of 2007
Will County 1 & 2 (310 MW) – by end of 2010
Homer City Compliance Plan
PA State Implementation Plan for CAMR and CAIR adopted Homer City will comply with 2010 phase of mercury requirements by installing ACI on Units 1 & 2 Evaluating compliance approaches for 2015 phase
EMG environmental compliance plan allows assessment of market conditions before incurring capital expenditures
Note: Cost estimates are in 2006 dollars.
November 2, 2007
EDISON INTERNATIONAL®
31
Leading the Way in Electricity SM
EMG – Wind Energy Development Strategy & Portfolio
Wind Energy Development Strategy
Strategic importance to growth plan
Contributes to portfolio diversification Objective is to attain national scope and leadership scale Leverages successful wind energy experience to date
Wind energy provides attractive opportunities
Growing RPS requirements and national desire for renewables Production tax credits Accelerated depreciation (MACRS) over 5 yrs. Mainly long-term contracts for output
Wind Project Portfolio & Development Pipeline
| | | | |
Projects1 | | No. of
Projects | | MW |
In-Service | | 12 | | 471 |
Under Construction | | 8 | | 523 |
Total Projects | | 20 | | 994 |
Development Pipeline2 | | 28 | | 2,982 |
Turbines | | | | |
Purchased and under option | | | | 1,185 |
Pipeline of about 3,000 MWs under exclusive development agreements Extensive prospect list supports further growth of development pipeline Purchased and option for 1,185 MW of turbines for 2007—2010 delivery
1 | | Data as of September 30, 2007; turbines purchased or committed to support development pipeline |
2 | | Owned or under exclusive agreements. |
November 2, 2007
EDISON INTERNATIONAL®
32
Leading the Way in Electricity SM
EMG – Thermal Growth Project Opportunities
Natural Gas-Fired Generation
Thermal development (1,000 MW)
Walnut Creek and Sun Valley, CA opportunities (500 MW each) in permitting and engineering stage – SCE and other potential customers Potential acquisitions of assets or portfolios
Will be selective and disciplined
Some regions showing developing capacity markets and higher spark spreads
Assets complement marketing and trading skills
Advanced Fossil-Fuel Technologies
Carson Hydrogen Project (400-450 MW)
Joint Venture with BP at their Carson City refinery –
petroleum coke fuel with 90% CO2 used for enhanced
oil recovery (EOR)
Confirming project economics and CO2 requirements
Other opportunities in early stage development
November 2, 2007
EDISON INTERNATIONAL®
33
Leading the Way in Electricity SM
Appendix
November 2, 2007
EDISON INTERNATIONAL®
34
Leading the Way in Electricity SM
What’s New Since Our Last Update
New Information
SCE Energy Efficiency incentive mechanism (see pages 18 – 19)
Updated Information
SCE New All-Source RFO generation timeline (see page 12) Peaker update (see page 16) Edison SmartConnectTM (see page 17) EMG operating, hedging and trading updates (see pages 24 – 28) EMG wind development (see page 32)
Third Quarter and YTD 2007 earnings and financial update (see pages 36 – 37)
November 2, 2007
EDISON INTERNATIONAL®
35
Leading the Way in Electricity SM
Third Quarter Financial Results
Reconciliation of Core Earnings to Reported Earnings
| | | | | | | | | | | | |
Core Earnings | | | 3Q 07 | | | | 3Q 06 | | | | Var. | |
SCE | | $ | 0.80 | | | $ | 0.74 | | | $ | 0.06 | |
EMG | | | 0.64 | | | | 0.62 | | | | 0.02 | |
EIX Holding Co. | | | (0.03 | ) | | | (0.04 | ) | | | 0.01 | |
Core EPS1 | | $ | 1.41 | | | $ | 1.32 | | | $ | 0.09 | |
Non-Core Items | | | | | | | | | | | | |
SCE | | $ | – | | | $ | 0.07 | | | $ | (0.07 | ) |
EMG | | | (0.01 | ) | | | (0.01 | ) | | | – | |
Total Non-Core | | | (0.01 | ) | | | 0.06 | | | | (0.07 | ) |
Basic EPS | | $ | 1.40 | | | $ | 1.38 | | | $ | 0.02 | |
Diluted EPS | | $ | 1.39 | | | $ | 1.38 | | | $ | 0.01 | |
| | |
Core Earnings Variances | | |
SCE | | |
Primarily due to higher net revenue associated with the 2006 | | 0.06 |
GRC decision | | |
EMG | | |
Midwest Generation | | |
Primarily due to lower interest expense from debt repayment | | 0.09 |
in 2Q 07 and higher realized energy margin, partially offsetby SFAS #133 impact | | |
Homer City | | |
No change in income 3Q 07 vs. 3Q 06 mainly due to higher | | – |
realized energy margin offset by SFAS #133 impact | | |
Income from Other Projects | | |
Primarily from higher income from wind projects | | 0.03 |
Corporate Expense and Other Items | | |
Primarily higher development costs and other corporate | | -0.07 |
expenses | | |
Edison Capital | | |
Lower results from leases and infrastructure fund investments | | -0.03 |
Non-Core Variances | | |
SCE Benefit related to generator settlement | | -0.07 |
EMG Discontinued operations | | – |
1 See use of Non-GAAP Financial Measures in appendix. 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.
November 2, 2007
EDISON INTERNATIONAL®
36
Leading the Way in Electricity SM
Year-to-Date Financial Results
| | | | | | | | | | | | |
Reconciliation of Core Earnings to Reported Earnings | | | | | | | | | | | | |
Core Earnings | |
| YTD
07 |
| |
| YTD
06 |
| | | Var. | |
SCE | | $ | 1.70 | | | $ | 1.58 | | | $ | 0.12 | |
EMG | | | 1.41 | | | | 0.95 | | | | 0.46 | |
EIX Holding Co. | | | (0.07 | ) | | | (0.10 | ) | | | 0.03 | |
Core EPS1 | | $ | 3.04 | | | $ | 2.43 | | | $ | 0.61 | |
Non-Core Items | | | | | | | | | | | | |
SCE | | $ | 0.10 | | | $ | 0.32 | | | $ | (0.22 | ) |
EMG | | | (0.45 | ) | | | (0.04 | ) | | | (0.41 | ) |
Total Non-Core | | | (0.35 | ) | | | 0.28 | | | | (0.63 | ) |
Basic EPS | | $ | 2.69 | | | $ | 2.71 | | | $ | (0.02 | ) |
Diluted EPS | | $ | 2.67 | | | $ | 2.71 | | | $ | (0.04 | ) |
| | | | |
Core Earnings Variances | | | | |
SCE | | | | |
Primarily due to higher net revenue associated with the 2006 GRC decision | | | 0.12 | |
and lower income taxes | | | | |
EMG | | | | |
Midwest Generation | | | | |
Mainly higher realized energy margin (driven by higher generation and | | | 0.34 | |
higher average realized prices) partially offset by SFAS #133 impact,and lower interest expense | | | | |
Homer City | | | | |
Primarily higher realized energy margin (driven by higher generation and | | | 0.12 | |
higher average realized energy prices), which includes higher capacityrevenue resulting from the PJM RPM auction, partially offset by SFAS | | | | |
#133 impact | | | | |
Income from Other Projects | | | | |
Higher income from wind and gas-fired projects | | | 0.08 | |
Edison Capital | | | | |
Gains on global infrastructure fund investments and higher interest income | | | | |
| | | | 0.04 | |
Corporate Expense and Other Items | | | | |
Higher development costs and other corporate expenses and higher net | | | -0.12 | |
interest/other expense (Mirant income and gain on sale of 25% interest in | | | | |
San Juan Mesa recorded in 06) | | | | |
Non-Core Variances | | | | |
SCE YTD 07: $ 0.10 reflects progress made with the IRS related to the | | | -0.22 | |
income tax treatment of certain environmental remediation costs; YTD 06: | | | | |
$ 0.25 relates to the resolution of an outstanding issue involving a portion ofrevenue collected during 2001—2003 related to state income taxes and | | $ | 0.07 | |
reflects generator settlement. | | | | |
EMG YTD 07 and YTD 06 include ($ 0.45) and ($0.27) per share for early | | | -0.41 | |
debt extinguishment charges; $0.01 and $0.26 per share from proceeds fromdiscontinued operations related to Lakeland; and ( $0.01) and ($0.03) per sharefrom other discontinued operations, respectively. | | | | |
1 See use of Non-GAAP Financial Measures in appendix. The impact of participating securities is included in EIX parent company earnings (loss) and was $(0.03) per share for year-to-date September 30, 2007 and 2006.
November 2, 2007
EDISON INTERNATIONAL®
37
Leading the Way in Electricity SM
EMG—2005-2007E Adjusted EBIDTA
| | | | | | | | | | | | |
| | | 2005 | | | 2006 | | | 2007 | |
Reconciliation to Net Income ($ Millions) | | | Actual | | | | Actual | | | | Forecast | |
Net Income | | $ | 443 | | | $ | 432 | | | $ | 3541 | |
Add back (Deduct): | | | | | | | | | | | | |
Cumulative effect of change in accounting, | | | 1 | | | | (1 | ) | | | ? | |
net of tax | | | | | | | | | | | | |
Discontinued operations | | | (30 | ) | | | (97 | ) | | | (5 | ) |
Income (loss) from continuing operations | | | 414 | | | | 334 | | | | 349 | |
Interest expense | | | 435 | | | | 409 | | | | 329 | |
Interest income | | | (74 | ) | | | (118 | ) | | | (82 | ) |
Income taxes | | | 163 | | | | 154 | | | | 127 | |
Depreciation and amortization | | | 147 | | | | 157 | | | | 175 | |
EBITDA | | | 1,085 | | | | 936 | | | | 898 | |
Production tax credits2 | | | 8 | | | | 17 | | | | 30 | |
Discrete items: | | | | | | | | | | | | |
Loss on lease, asset impairment and other | | | 7 | | | | ? | | | | ? | |
Impairment of equity method investment | | | 55 | | | | ? | | | | ? | |
Gain on sale of assets | | | ? | | | | (22 | ) | | | ? | |
Loss on early extinguishment of debt | | | 25 | | | | 146 | | | | 241 | |
Adjusted EBITDA | | $ | 1,180 | | | $ | 1,077 | | | $ | 1,169 | |
Note: EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA includes production tax credits from EMG’s wind projects and excludes amounts from gain on the sale of assets, loss on early extinguishment of debt and leases, and impairment of assets and investments.
1 | | Represents the mid-point of the EMG guidance range. |
2 | | Production tax credits (PTC) are after tax numbers. |
November 2, 2007
EDISON INTERNATIONAL®
38
Leading the Way in Electricity SM
EMG – Liquidity Profile
Available Liquidity
| | | | | | |
Sources ($ Millions) | | | 12/31/06 | | | 9/30/07 |
EME Revolver | | $ | 473 | | $ | 508 |
MWG Revolver | | | 495 | | | 497 |
Cash & Short term investments1 | | | 2,181 | | | 1,517 |
Total | | $ | 3,149 | | $ | 2,522 |
$1.1 billion of credit facilities between MWG and EME
1 Excludes $73 million and $109 million of cash collateral held by counterparties at 12/31/06 and 9/30/07, respectively.
November 2, 2007
EDISON INTERNATIONAL®
39
Leading the Way in Electricity SM
EMG – Capital Expenditures
Planned Expenditures1
October 2007 – 2009
Plant/Corporate Capex Plan Environmental Plan Growth Commitments $ Millions
900 450 0
2007 2008 2009
Total $1,904 Million
1 EME expects to make substantial investments in new projects during the next three years. As of September 30, 2007, EME had a development pipeline of potential wind projects with an estimated installed capacity of approximately 3,000 MW (the development pipeline represents potential projects for which EME either owns the project rights or has exclusive negotiation rights). Completion of these projects is dependent upon a number of items which may include, depending on the project’s status, completion of a power sales agreement, permits, an interconnection agreement or other agreements necessary to start construction. Additional projects may from time to time be added to the development pipeline, and there is no assurance that the projects included in the development pipeline currently or added in the future will lead to the successful completion of a wind project.
Potential Expenditures (2007 – 2009)
Additional growth opportunities Additional wind turbines
Balance of plant costs for purchased wind turbines
Potential Expenditures After 2009
Midwest Generation environmental spending plan Evaluating FGD installation at Homer City Additional growth opportunities
November 2, 2007
EDISON INTERNATIONAL®
40
Leading the Way in Electricity SM
SCE – Regulatory Update
Edison SmartConnectTM
GRC
Cost of Capital
Tehachapi Transmission
DPV 2 –Transmission
FERC Transmission Incentives Filing
| | | | | | |
Case | | Date of | | | | Next |
| | | |
Number | | Filing | | Status | | Milestone |
| | | |
Phase III A. 07-07-026 | | July 31, 2007 | | Phases I and II approved Phase
III request is for $1.3 B
capital ($1.7 B total) over
2008- 2012 time period | |
Evidentiary hearings February,
2008. Final Phase III decision
expected July 2008 |
| | | |
None until application is filed | | July 23, 2007 | | CPUC Staff accepted NOI | | GRC Application expected to
be filed on November 19,
2007 |
| | | |
A. 07-05-003 | | May 8, 2007 | | SCE proposed 11.8% ROCE
with a 48% common equity
capital structure | |
Proposed decision expected
November 6, 2007 |
| | | |
I. 05-09-005 D. 04-06-010 | | November, 2000 | | Segments 1-3 are approved
(except for USFS exp. 4Q
07), Segments 4-11
application filed June 2007 | |
Proposed pre-hearing
conference March 2008 |
| | | |
ACC: L-00000A- 029500130 | | April, 2005 (with CPUC) | | ACC has denied approval of
application (May). SCE filed
an appeal in August. | |
Evaluating options for the
project |
| | | |
EL07-62-000 | | May 18, 2007 | | In FERC approval process | | Decision expected by year-end
2007 |
November 2, 2007
EDISON INTERNATIONAL®
41
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 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.
A reconciliation of Non-GAAP information to GAAP information, including the impact of participating securities, is included either on the slide where the information appears or on another slide referenced in the presentation.
November 2, 2007
EDISON INTERNATIONAL®
42
