Exhibit 99.1
Exhibit 99.1
Leading the Way in Electricity SM
EDISON INTERNATIONAL®
Business Update
March 2009
March 16, 2009
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 2008 Form 10-K and other reports filed with the Securities and Exchange Commission 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.
March 16, 2009
EDISON INTERNATIONAL®
Value Drivers
Southern California Edison (SCE)
Rate base growth of 10-13% (CAGR)
3-year Cost of Capital mechanism (11.5% ROCE)
Decoupled CPUC revenue model
Pass through mechanisms for fuel and purchased power, pensions
Growth options: transmission, utility owned generation, Edison SmartConnectTM
Strong financial position
Strong public policy support
Leading the Way in Electricity SM
Edison Mission Group (EMG)
Option for commodity cycle upside or improving reserve margins
Renewables growth opportunities
5,000 MW wind pipeline
Solar development program
Current stable financial condition
No significant bond maturities until 2013
Structurally separate from EIX/SCE
Disciplined approach to coal fleet environmental investments
Flexible business platform
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Southern California Edison (SCE)
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Highlights
California and
SCE Service Territory
One of the nation’s largest electric utilities
13 million residents
4.9 million customer accounts
50,000 square-mile service area
Key regulators
California Public Utilities Commission (CPUC)
Federal Energy Regulatory Commission (FERC)
Earnings model
CPUC jurisdictional earnings decoupled from demand
Energy cost changes passed through to customers
Earnings driven by CPUC and FERC authorized rate of return and rate base
SCE Service Territory
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Capital Investment Forecast1
5-Yr Base Case By Classification
$ Billions $5 $4 $3 $2 $1 $0 20092 20102 20112 2012 2013
Base Case $3.4 $3.9 $4.0 $4.6 $4.5
Low Case3 $2.8 $3.2 $3.3 $3.7 $3.7
$ %
Solar Rooftop Program 0.9 4
Edison SmartConnect™ 1.2 6
Generation 2.7 13
Transmission
6.5 32
Distribution 9.1 45
Total 20.4 100
5-Yr Base Case By Proceeding Type
%
2009 CPUC Rate Case 30
2012 CPUC Rate Case 26
Other CPUC 12
FERC Rate Cases 32
Total 100
1 Subject to timely receipt of permitting, licensing and regulatory approvals. Forecast as of March 2009.
2 Based on a preliminary examination of the 2009 GRC decision and is subject to change.
3 Low Case reflects the estimate of potential variability to project investment levels related to execution risk, scope change, delays, regulatory constraints, and other contingencies. The level of variability experienced in 2008 was 18%.
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Rate Base Forecast (2008-2013)1
$ Billions
$25
$20 $15 $10 $5 $0
5-Yr CAGR
2008 2009 2010 2011 2012 2013
Base Case $12.6 $14.5 $16.6 $18.7 $21.1 $23.1 13%
Low Case2 $14.2 $15.8 $17.1 $18.6 $20.0 10%
1 Forecast as of March 2009 and includes: (1) current CPUC and FERC GRC Decisions; (2) forecasted 2009-2013 FERC rate base, subject to timely receipt of permitting, licensing and regulatory approvals; (3) FERC construction work in progress forecast and (4) estimated impact of accelerated depreciation of the Economic Stimulus Act of 2009. The forecast includes $0.8 billion of capital spending for DPV2. See the “FERC Transmission Incentives” section of the 2008 EIX 10-K for additional information related to the DPV2 project.
2 Reflects Low Case from SCE Capital Investment Forecast.
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Transmission Investment Program
Tehachapi transmission line to interconnect up to 4,500 MW of renewable generation
Additional transmission capability needed to strengthen system reliability and access economic power
Transmission siting remains challenging due to multiple federal and local government agencies involved
NEVADA CALIFORNIA
Tehachapi Service SCE
Windhub
Territory
Antelope Palmdale
Vincent Rancho ARIZONA Santa Clarita Vista Pardee Mira Devers Loma Santa Palm Phoenix
Los Angeles Ana Valley Springs
Verde Palo
San Diego
DPV2 500kV Tehachapi Segments 1-3 500kV Rancho Vista Substation Tehachapi Segments 4-11 500kV
Project Name
Phase
In-Service
2009-2013 ($ Millions)1
Renewables
Tehachapi Segments 1-3
Construction
Various
119
Tehachapi Segments 4-11
Licensing
Various
1,830
Other Projects
Licensing
Various
1,537
Total Renewables
3,486
Reliability
Rancho Vista Substation
Construction
2009
36
Other Projects
Various
Various
2,226
Total Reliability
2,262
Economic
DPV2
Licensing2
2011
774
Grand Total3
6,522
1 Subject to timely receipt of permitting, licensing, and regulatory approvals. Forecast as of March 2009 and is based on the Base Case. (See SCE Capital Investment Forecast).
2 Petition to Modify CPUC decision submitted in May 2008 for DPV2 to permit construction of California portion. A decision is expected in the 2nd quarter of 2009.
3 FERC rate base is expected to more than double from 10% of rate base in 2008 to over 20% by 2013.
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE SmartConnectTM Program
Integrate Homes with the Utility Circuit
Integrate Smart Appliances with the Home
CPUC approved deployment to 5.3 million residential and small commercial customers between 2008 – 2012
Total project cost: $1.7 billion (approximately $1.25 billion capital cost to be included in rate base)
Full Edison SmartConnectTM implementation expected to:
Provide energy efficiency benefits, including reducing as much as 1,000 MW of peak power consumption
Reduce GHG emissions by 365,000 metric tons per year
March 16, 2009
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Solar Rooftop Program
Install 250 MW of thin-film solar photovoltaic (PV) generation on commercial rooftops
1-2 MW average project size
$0.9 billion capital program
Subject to CPUC approval – final decision expected by April 2009
5 MW Program launch (supplier: First Solar)
2 MW in Fontana completed September 2008
1 MW in Chino started March 2009, expected completion in April 2009
Third site planned for 2nd quarter 2009
CPUC granted authority to track up to $25 million of project costs incurred during regulatory review process to facilitate program launch – recovery subject to final CPUC approval
SCE’s proposed rooftop solar program helps advance California public policy and builds scale for rooftop photovoltaic solar market
1 ALJ proposed decision received March 13, 2009, would authorize SCE to construct 160 MW for a cost of $0.6 billion, and order SCE to procure 90 MW from independent solar producers.
March 16, 2009
9
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Edison Mission Group (EMG)
March 16, 2009
10
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Business Platform
Washington
Natural Gas 70 MW
California
Natural Gas 964 MW
Natural Gas (Pipeline) 479 MW
Arizona
Wind (Pipeline) 680 MW
Utah
Wind 19 MW
Oklahoma
Wind 114 MW
Wind (Pipeline) 430 MW
Nevada
Wind (Pipeline) 825 MW
New Mexico
Wind 90 MW
Wind (UC) 100 MW
Wind (Pipeline) 1,000 MW
Texas
Wind 241 MW
Wind (UC) 70 MW
Wind (Pipeline) 400 MW
Iowa
Wind 145 MW
Wind (Pipeline) 220 MW
Minnesota
Wind 145 MW
Wind (Pipeline) 165 MW
Nebraska
Wind (UC) 53 MW
Wind (Pipeline) 282 MW
Illinois
Coal 5,471 MW
Natural Gas 305 MW
Wind (Pipeline) 520 MW
Wisconsin
Wind (Pipeline) 100 MW
Wyoming
Wind 141 MW
New York
Wind (Pipeline) 195 MW
West Virginia
Coal 40 MW
Wind (Pipeline) 117 MW
Pennsylvania
Coal 1,884 MW
Wind 67 MW
Maryland
Wind (Pipeline) 60 MW
Operating Platform1
MW
%
Coal
7,395
75
Natural Gas
1,339
14
Wind
962
10
Other (not shown)
153
1
9,849
100
Wind Development Pipeline2
MW
Under Construction
223
Pipeline
4,994
Turbines (Not Shown)
942
Thermal Pipeline3
MW
Natural Gas
479
| | 1 | | Natural gas includes oil-fired; other includes Doga in Turkey (144 MW) and Huntington biomass (9 MW) which are not shown. All data as of December 31, 2008. |
| | 2 | | Owned or under exclusive agreement. Wind turbines purchased or committed to support development pipeline. |
| | 3 | | Deliveries under the power sales agreement are scheduled to commence in 2013. EME plans to purchase natural gas turbines subject to resolution of uncertainty regarding the availability of emission credits. |
March 16, 2009
11
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Coal-Fired Fleet
Midwest Generation (Illinois) All-in Average Realized Prices1
• 5,471 MW – Six mid-merit facilities (plus 305 MW peakers)
• Powder River Basin (PRB) coal
• Rail under contract through 2011
$60 $57 $53
$47
$40 $42
$40
$/MWh $34
$20
$13 $13 $15
$0
2006 2007 2008
All-in Average Realized Prices1
$60
$60 $57
$49
Homer City (Pennsylvania)
• Operational Statistics:
2006
2007
2008
Total Generation (GWh)
28,898
29,961
31,100
Load Factor
74.1%
80.4%
80.0%
Equivalent Availability
79.3%
75.8%
81.0%
• 1,884 MW – Three base-load units
• Northern Appalachian (NAPP) coal
• Coal largely sourced locally and delivered by truck
$40 $34 $37
$26
$/MWh
$20
$23 $22 $23
$0 2006 2007 2008
Average realized gross margin ($/MWh)2
Average fuel and emission costs ($/MWh)
• Operational Statistics:
2006
2007
2008
Total Generation (GWh)
12,286
13,649
11,334
Load Factor
90.7%
92.4%
84.6%
Equivalent Availability
81.9%
89.4%
80.7%
1 The all-in average realized price reflects the average price for sale of energy, capacity and ancillary services sold into the market, including the effects of hedges, real-time and day ahead sales and PJM fees and ancillary services. It is determined by dividing: (i) operating revenues less (plus) unrealized SFAS No. 133 gains (losses) by (ii) generation. Operating revenues includes capacity sales and sales under load services requirements contracts.
2 Average realized gross margin is equal to all-in average realized prices less average fuel and emission costs. Columns may not add due to rounding.
March 16, 2009
12
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Hedge Program Status
Status at December 31, 2008
2009
2010
2011
Midwest Generation1
Energy Only Contracts
Northern Illinois & AEP/Dayton Hubs (GWh)
9,945
6,555
612
Average price ($/MWh)
$65.44
$68.61
$76.40
Load Requirement Services Contracts
Northern Illinois Hub (Estimated GWh)
1,571
—
—
Average price NiHub ($/MWh)
$63.65
—
—
Total estimated GWh hedged
11,516
6,555
612
Coal under contract (in millions of tons)
17.7
11.7
—
Rail cost under contract
100%
100%
100%
Homer City1
Total estimated GWh hedged
4,096
2,662
—
Average price ($/MWh)
$82.94
$90.53
—
Coal under contract (in millions of tons) 2
5.1
0.6
0.3
1 See the “EMG: Market Risk Exposures” section of the 2008 EIX 10-K for more detailed information concerning risks and other important factors related to these items.
2 At December 31, 2008, there are options to purchase additional coal of 0.7 million tons in 2010, 0.6 million tons in 2011, 0.5 million tons in 2012, and 0.1 million tons in 2013. Options to purchase 1.2 million tons in 2010 and 2011 are the subject of a dispute with the supplier. Pending dispute resolution, EME is exposed to price risk related to these volumes at December 31, 2008.
March 16, 2009
13
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Capacity Sales
Status at December 31, 2008
Jan 1, 2009 — May 31, 2009
Jun 1, 2009 — May 31, 2010
Jun 1, 2010 — May 31, 2011
Jun 1, 2011 — May 31, 2012
Megawatts except price per MW-day
Midwest Generation
Homer City
Midwest Generation
Homer City
Midwest Generation
Homer City
Midwest Generation
Homer City
Installed Capacity
5,776
1,884
5,776
1,884
5,477
1,884
5,477
1,884
Less: Net capacity held due to load requirement services contracts1 and retained for outages
(1,939)
(159)
(471)
(214)
(548)
(71)
(895)
(113)
Net Capacity Available for Sale
3,837
1,725
5,305
1,670
4,929
1,813
4,582
1,771
Fixed Price Capacity Sales
RPM Auction Process
Net Capacity Sold
2,957
820
4,582
1,670
4,929
1,813
4,582
1,771
Price per MW-day
$122.412
$111.92
$102.04
$191.32
$174.29
$174.29
$110.00
$110.00
Non-unit Specific Capacity Sales
Net Capacity Sold
880
—
723
—
—
—
—
—
Price per MW-day (Net)
$64.35
$—
$72.84
$—
$—
$—
$—
$—
Variable Capacity Sales
Third Party Transaction
Capacity
—
905
—
—
—
—
—
—
Expected price per MW-day 3
$—
$56.56
$—
$—
$—
$—
$—
$—
Total Capacity Sold
3,837
1,725
5,305
1,670
4,929
1,813
4,582
1,771
Average Price per MW-Day
$109.09
$82.88
$98.06
$191.32
$174.29
$174.29
$110.00
$110.00
1 Load requirements services contracts include energy, capacity and ancillary services.
2 The original price of $111.92 was affected by Midwest Generation’s participation in a supplemental RPM auction during the first quarter of 2008 which resulted in purchasing certain capacity amounts at a price of $10 per MW-day, thereby reducing the aggregate forward capacity sales for this period and increasing the effective capacity price to $122.41.
3 Actual contract price is a function of NYISO capacity auction clearing prices in January 2009 through April 2009 and forward over-the-counter NYISO capacity prices on December 31, 2008 for May 2009.
March 16, 2009
14
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Environmental Compliance1
MWG Compliance Plan2 Mercury Reductions
Emissions of 0.008 lbs. per GWh or minimum 90% mercury removal by 20153
Installation of Activated Carbon Injection (ACI) technology by July 2009
Estimated cost $43 million
NOX Reductions
Emissions of 0.11 lbs. per million Btus by December 31, 2011
Current compliance cost estimate $513 million4
SO2 Reductions
Emissions of 0.11 lbs. per million Btus by year-end 2018, with interim step-downs
Firm deadlines for Flue Gas Desulfurization (FGD) technology installation - varies by plant (2013-2018)
Average estimated cost $650/kW
Homer City Compliance Plan
Use of existing technology and allowances for current compliance
Additional environmental control equipment would likely need to be installed to meet the 2015 Clean Air Act deadline
Next Steps
EMG continues to look at various innovative and less costly technologies that may be employed
EMG is also evaluating several interim and alternative compliance solutions including combinations of retrofits and specific unit shutdowns
EMG has not yet decided on any specific course to meet the NOX and SO2 emissions requirements nor committed to any specific capital investments.
1 The MWG and Homer City facilities continue to be governed by state rules as well as the existing “SIP Call” ozone season NOx cap-and-trade program. Changes in the cost of labor, equipment, materials and other factors may materially affect the above estimates for SCR, SNCR & FGD equipment. See the “Environmental Developments” section in Management Overview of the 2008 EIX 10-K for additional information concerning environmental compliance.
2 Cost estimates are in 2008 dollars. Prior estimates (in 2006 dollars) were $60 million, $450 million and $600/kW for mercury, NOX and SO2 reduction, respectively.
3 Except Will County #3 which is in 2016.
4 Includes SCR and SNCR equipment at Powerton and Joliet Unit 6, respectively, but excludes potential future SNCR equipment at Crawford by 2015.
March 16, 2009
15
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Edison Mission Marketing & Trading (EMMT)
Markets energy and capacity of merchant generation fleet
Hedges key power-related risks such as forward electricity prices
Typically a rolling 12 to 24 month hedging program
Target hedge-neutral position for prompt year with lesser percentages hedged in out years
Proprietary trading in markets where it is active in merchant generation
Primarily transmission-related transactions
Largely in eastern markets
Enters into load service requirements contracts with local utilities and hedges related to energy price risk
Controls on types and sizes of exposures
VaR; EaR; stress and scenario testing; volumetric, duration, and credit limits
EMMT Trading Margin (pre-tax)1 $ Millions $250
$195 $200 $164 $150 $130 $142 $100
$50 $34 $23 $0
2003 2004 2005 2006 2007 2008
1 | | Income from energy trading represents gains recognized from trade price changes. The overhead cost of energy trading is excluded. |
March 16, 2009
16
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Wind Energy Development Strategy
Wind Energy Development Strategy
Strategic importance to growth plan
Contributes to portfolio diversification
Objective is to attain national scope and leadership scale
Wind energy provides attractive opportunities
Growing RPS requirements
Production tax credits and accelerated depreciation
Mainly long-term contracts for output
Wind Project Portfolio & Development Pipeline
MW by Manufacturer
Projects In-Service & Under Construction
Turbines Purchased & Firm Purchase Commitments3
Projects1
No. of Projects
MW
In-Service
22
962
Under Construction
3
223
Total Projects
25
1,185
Development Pipeline2
39
4,994
Turbines
Purchased & Firm Purchase Commitments3 942
Zond
109
Suzlon
GE
439
300
Suzlon
286
Siemens
161
Clipper
27
Clipper
150
Mitsubishi
240
Vestas
86
Mitsubishi
329
1 Data as of December 31, 2008. Projects reflect EMG ownership share.
2 Development pipeline includes projects owned or under exclusive agreements.
3 Commitments include cancellation charges.
March 16, 2009
17
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Solar Program
• Large-scale (20-100 MW per site)
• Ground mounted
• Connected to transmission grid
• Identified over 30 sites for potential solar projects
• Processing interconnection requests and taking initial steps to secure land rights
• Formed strategic relationship with First Solar to develop large solar utility projects in certain markets
Focus on high
solar insolation areas in
southwestern United States
EMG is seeking to deploy commercial solar power projects
March 16, 2009
18
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Capital Expenditures
Estimated Expenditures1
(in Millions)
2009
2010
2011
MWG
Plant capital expenditures
$65
$106
$76
Environmental expenditures
48
(a)
(a)
Homer City
Plant capital expenditures
29
55
29
Environmental expenditures
8
14
32
Growth projects
Projects under construction
73
—
—
Turbine commitments
706
232
—
Other capital expenditures
35
9
7
Total
$964
$416
$144
(a) See the MD&A in the 2008 EIX 10-K regarding capital expenditures for environmental improvements at MWG.
Capital Expenditure Update
Pending recovery of the capital markets, EME intends to preserve capital by focusing on a more selective growth strategy
Completion of projects under construction, including the Big Sky wind project in Illinois
No decision made on environmental upgrades at Midwest Generation - engineering work in process
Development of sites that would deploy committed wind turbines
Use cash and future cash flow to meet existing contractual commitments
1 EMG expects to make substantial investments in new projects during the next several years. As of December 31, 2008, EMG had a wind development pipeline of 4,994 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, 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.
March 16, 2009
19
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
2009 Earnings Guidance
Reconciliation of Core Earnings to GAAP Earnings Guidance1
2009 Guidance as of March 16, 2009
Low
Midpoint
High
EIX core earnings per share
$2.90
$3.05
$3.20
Non-Core items
—
—
—
EIX GAAP earnings per share
$2.90
$3.05
$3.20
Midpoint of 2009 core and GAAP guidance by key business element:
SCE
$2.49
EMG
0.70
EIX parent company and other
(0.14)
SCE
• 2009 average rate base will
Include 2009 GRC decision
Assume timely approval of FERC rate case and rooftop solar program
• 2009 Approved Capital Structure
48% Equity
11.5% Return on Equity
• Potential energy efficiency earnings of $0.03 per share included
EMG
• Forward hedge position and prices as of 1/31/09
• EMMT pre-tax trading margin of
$50-150 million
• Increased MWG pre-tax operating cost by $90 to $105 million (CAIR compliance and mercury controls)
• Pre-tax earnings from Big 4 lower by $45 to $55 million
• Prior EMG core and GAAP guidance of $0.50 to $0.90 per share provided March 2, 2009
EMG (continued)
• No Edison Capital LILO/SILO lease income
Other Assumptions
• Normal operating and weather conditions
• No changes in GAAP accounting
• Excludes non-core impact associated with the potential IRS Global Settlement
• Excludes discontinued operations and other non-core items
1 See Use of Non-GAAP Financial Measures in Appendix. GAAP earnings refers to basic earnings. The expected impact of participating securities is $(0.03) per share and is included in EIX parent company and other.
March 16, 2009
20
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Appendix
March 16, 2009
21
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Full-Year Financial Results
Reconciliation of Core EPS to GAAP EPS
Core Earnings
2007
2008
Variance
SCE
$2.07
$2.25
$0.18
EMG
1.72
1.72
—
EIX parent company and other
(0.10)
(0.13)
(0.03)
Core EPS 1
$3.69
$3.84
$0.15
Non-core Items
SCE
$0.10
$(0.15)
$(0.25)
EMG
(0.46)
—
0.46
Total Non-Core
$(0.36)
$(0.15)
$0.21
Basic EPS
$3.33
$3.69
$0.36
Diluted EPS
$3.31
$3.68
$0.37
Core EPS Variances
SCE
$0.18
Higher operating income related to rate base growth and energy efficiency rewards ($0.05), combined with lower net interest and tax expense
EMG
Midwest Generation
0.19
Higher energy and capacity revenue, SFAS 133 gains, and a gain on the buy-out of a coal contract; partially offset by Lehman hedge contract charge
($0.05) and higher coal, coal transportation and plant operating costs
Homer City
(0.04)
Lower energy revenue from lower generation and higher plant operating costs; partially offset by SFAS 133 gains, higher capacity revenue and excess coal sales
New wind projects in operation
0.07
Natural gas and other projects
(0.14)
Lower income due to expiration of Sycamore and Watson Big 4 contracts
EMMT2 – Higher trading income
0.04
Corporate expense, interest and other items
(0.09)
Lower interest income and a ($0.04) charge to cancel gas turbine order
Edison Capital and other
(0.03)
Lower results from global infrastructure funds and higher income taxes, partially offset by gain on sale of Beaver Valley lease interest
EIX - Higher net interest expense and taxes
(0.03)
Non-Core Variances
SCE - Q3 08: ($0.15) for decision on performance-based ratemaking mechanism
(0.25)
Q1 07: $0.10 for resolution of tax treatment of certain environmental remediation costs
EMG - Q2 07: ($0.45) for early debt extinguishment charges
0.46
2007: ($0.01) from discontinued operations
1 See Use of Non-GAAP Financial Measures in appendix. The impact of participating securities is included in EIX parent company and other, and was $(0.05) per share for 2008 and $(0.04) per share for 2007.
2 EMMT overhead is included in Corporate expense, interest and other items.
March 16, 2009
22
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EIX and EMG Legal/Structural Separation
EIX is a focused and disciplined investor
Third-Party Obligations
• No EIX guarantees of EMG subsidiary debt
• No EIX cross-default exposure to EMG subsidiary debt
• No EIX obligation to financially support EMG companies
Intercompany Relationships
• Ordinary course of business for services
• Long-standing tax allocation agreements
• Unregulated investment is purely an option for EIX where it sees benefits
Edison
International
Southern California Edison Co.
Edison Mission Group
Edison Mission Energy1
Edison Capital
1 Mission Energy Holding Company (MEHC) exists as a legal entity and parent company of Edison Mission Energy. MEHC has no outstanding debt. See Exhibit 21 of the 2008 Edison International 10-K for a complete list of Edison International subsidiaries.
March 16, 2009
23
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
Liquidity Profile
Available Liquidity at December 31, 2008
Sources (in Millions)
SCE
EMG
EIX Parent Co. & Other
Total1
Credit Facility
$2,500
$1,100
$1,500
$5,100
Credit Facility (availability)2
385
793
1,188
1,652
Cash & short term investments4
1,614
1,976
333
3,923
Available Liquidity
$1,999
$2,055
$1,521
$5,575
Edison International companies will repay $2.1 billion drawn from credit facilities once ongoing funding is assured
1 Total amounts do not imply any credit support among entities except as specified in each credit facility.
2 Excludes the unused and/or unfunded commitments for subsidiaries of Lehman Brothers Holdings of $81 million for SCE, $38 million for EMG, and $62 million for EIX. Current funded amounts from subsidiaries of Lehman Brothers Holdings are $25 million for SCE, $42 million for EMG and $12 million for EIX.
3 EMG available borrowing capacity reduced by $2 million for Lehman Brothers Commercial Bank’s share of the Midwest Generation working capital facility.
4 SCE amounts include $89 million held by SCE’s consolidated variable interest entities (VIE) as of December 31, 2008.
March 16, 2009
24
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
SCE Regulatory Key Events
Case Number
Date of Filing
Status
Next Milestone
2009 GRC
A. 07-11-011
11/19/07
Final decision issued 3/12/09 Memo account effective 01/01/09 allows GRC final decision to be retroactive to beginning of year
GRC rate change (including first quarter true-up in memo account) expected to be effective 04/04/09
2009 FERC Rate Case
ER08-1343
08/01/08
FERC Staff settlement proposal provided on 01/08/09
Rate change effective 03/01/09, subject to refund and settlement procedures.
A. 04-12-007/8 (Segments 1-3)
12/09/04
Decision Granted D. 07-03-012 / 045 Petitions to Modify Certificate of Public Convenience and Necessity filed on 07/18/08
Petition to Modify decisions expected 1st qtr 2009
Tehachapi Transmission
A. 07-06-031 (Segments 4-11)
06/28/07
Draft Environmental Impact Report/Environmental Impact Statement received on 02/13/09
Final Environmental Impact Report/Environmental Impact Statement expected in June 2009. Certificate of Public Convenience and Necessity and Record of Decision from United States Forest Service expected by 3rd qtr 2009
DPV 2 – Transmission1
ACC: L-00000A-06-0295-00130
05/01/06
Continuing to work with Arizona stakeholders on acceptable alternatives. On 02/09/09, SCE filed a “meet and confer” report with Arizona Corporation Commission reporting on these efforts
Depending on Arizona Corporation Commission reaction to the “meet and confer” report, SCE may file an amended application with Arizona Corporation Commission
A. 05-04-015
04/11/05
Petition to Modify D. 07-01-040 to advance construction of CA portion filed on 05/14/08
Petition to Modify decision
expected 2nd qtr 2009
SCE Solar Rooftop Program
A. 08-03-015
03/21/08
Hearings completed 11/06/08 Briefs filed 11/25/08 Reply Briefs filed 12/10/08 Proposed decision received 03/13/09
Oral Argument 03/25/09 Final Decision 2nd qtr 2009
1 CPUC has approved A. 05-04-015 via D. 07-01-040 and FERC has declared the region a National Interest Electric Transmission Corridor (N.I.E.T.C.).
March 16, 2009
25
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG Comparative Operating Statistics
Q4 07
Q4 08
Variance %
2007
2008
Variance
%
Midwest Generation
Generation (in GWh)
Energy Only contracts
5,062
6,606
22,503
26,010
Load Requirement Services Contracts
1,730
878
7,458
5,090
Total
6,792
7,484
692
10%
29,961
31,100
1,139
4%
Performance
Equivalent Availability Rate (EAF)
67.2%
81.5%
14.3%
75.8%
81.0%
5.2%
Forced Outage Rate (EFOR)
18.1%
6.3%
(11.8)%
9.7%
8.3%
(1.4)%
Pricing Information
Average Realized Energy Price ($/MWh)
Energy Only Contracts
$49.00
$47.07
($1.93)
(4)%
$48.79
$51.82
$3.03
6%
Load Requirement Services Contracts
$64.10
$62.60
($1.50)
(2)%
$63.43
$62.64
($0.79)
(1)%
Average Cost of Fuel ($/MWh)
$13.25
$15.41
$2.16
16%
$13.36
$15.49
$2.13
16%
Flat Energy Price - Nihub ($/MWh)
$45.92
$38.03
($7.89)
(17)%
$45.53
$49.01
$3.48
8%
Homer City
Generation (in Gwh)
3,431
2,526
(905)
(26)%
13,649
11,334
(2,315)
(17)%
Performance
Equivalent Availability Rate (EAF)
90.4%
80.1%
(10.3)%
89.4%
80.7%
(8.7)%
Forced Outage Rate (EFOR)
5.2%
14.6%
9.4%
4.1%
9.8%
5.7%
Pricing Information
Average Realized Energy Price ($/MWh)
$54.35
$51.20
($3.15)
(6)%
$54.40
$56.24
$1.84
3%
Average Cost of Fuel ($/MWh)
$23.81
$24.53
$0.72
3%
$22.45
$23.35
$0.90
4%
Flat Energy Price - PJM West Hub ($/MWh)
$58.68
$52.67
($6.01)
(10)%
$59.87
$68.56
$8.69
15%
Flat Energy Price - HC Busbar ($/MWh)
$51.25
$45.40
($5.85)
(11)%
$51.03
$57.72
$6.69
13%
Flat Energy Price - Basis (PJM West Hub - HC Busbar)
$7.43
$7.27
$0.16
$8.84
$10.84
$2.00
March 16, 2009
26
EDISON INTERNATIONAL®
Leading the Way in Electricity SM
EMG – Full-Year Adjusted EBITDA
Reconciliation to Net Income ($ Millions)
2007
2008
Net income
$410
$561
Addback (Deduct):
Discontinued operations
2
—
Income from continuing operations
412
561
Interest expense
323
288
Interest income
(101)
(37)
Income taxes
170
272
Depreciation and amortization
172
197
EBITDA1
976
1,281
Production tax credits 2
28
44
Discrete items:
Gain on sale of assets
(1)
(49)
Loss on early extinguishment of debt
241
—
Charge to cancel gas turbine order
—
23
Adjusted EBITDA1
$1,244
$1,299
1 See Use of Non-GAAP Financial Measures for additional information on EBITDA and Adjusted EBITDA.
2 Production tax credits (PTC) are after-tax.
March 16, 2009
27
EDISON INTERNATIONAL®
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 and other. EPS and core EPS by principal operating subsidiary are reconciled to basic earnings per common share.
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. EBITDA is the principal financial metric used by the financial community in assessing the relative cash-generation power of companies. Our management uses Adjusted EBITDA as an important financial measure for evaluating EMG.
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.
March 16, 2009
28
EDISON INTERNATIONAL®
