Edison International Q3 FY2024 earnings call

• Regulatory Front: SCE is in final stages of TKM cost recovery settlement and 2025 GRC; filed Woolsey cost recovery application, with TKM settlement authorizing 60% cost recovery ($1.6 billion) once approved. Awaiting GRC decision in first half of next year to solidify financial outlook through 2028.
• Operational Resilience: Managed wildfire risks, reducing acres burned from SCE's ignitions in high fire risk areas since 2017, with 85% of distribution grid in high fire risk areas physically hardened via covered conductor deployment.
• Net Zero Commitment: Unveiled white paper on reaching net zero by 2045, focusing on 100% carbon-free power for customers, reducing operational emissions, and planning for carbon removal solutions to neutralize remaining emissions by 2045.

Edison International's core earnings per share for third quarter 2024 was $1.51, with year-to-date core EPS at $3.88. SCE has recovered about $4.5 billion since 2021. SCE has over $2 billion of CPUC-jurisdictional capital investment, including standalone applications for enterprise resource planning and advanced metering infrastructure, and more than $2 billion of FERC transmission projects in development. The securitization related to the TKM settlement is expected to strengthen the balance sheet, with the $1.6 billion recovery targeting financing completion by year-end 2025.

• Narrowed 2024 core EPS guidance to $4.80 to $5 based on strong year-to-date performance.
• Confident in 2025 EPS and 5%-7% EPS CAGR through 2028.
• TKM settlement is additive to core operational growth; awaiting GRC decision in first half of next year to update capital, financing, and EPS guidance, factoring in TKM settlement benefits.

• Regulatory Uncertainties: Changes in cost of capital mechanism; uncertain outcomes of wildfire proceedings (e.g., Woolsey application with unknown ultimate recovery).
• Interest Rate Environment: Impact on financing plans; dependence on regulatory decisions for cost recovery and balance sheet strength.

Q: On general rate case and affordability concerns, how does SCE address this?

A: Pedro and Maria discussed affordability lens in rate case, SCE introduced savings into GRC, and long-term bill reductions with total energy bill down 40% by 2045.

Q: On TKM settlement and balance sheet flexibility, what's the outlook?

A: Maria discussed balance sheet flexibility from memo account recovery and TKM settlement, potential reduction of equity-like instruments, and 15%-17% FFO to debt framework.

Q: On GRC timing and Woolsey, what's the status?

A: Maria and Pedro discussed GRC likely in first half of next year, Woolsey application is early with case-specific nature differing from TKM