Edison International : Business Update Supplement

EIX

BUSINESS UPDATE SUPPLEMENT: TKM SETTLEMENT AGREEMENT

AUGUST 29, 2024

Key Takeaways of TKM Settlement Agreement

Authorized

60% of claims, financing, and legal costs (~$1.6 billion WEMA recovery)

Amounts

85% of restoration costs (~$55 million CEMA recovery)

Permanent Capital

Permanently exclude after-tax charges to equity and associated debt from SCE's

Structure Exclusion

CPUC regulatory capital structure

Cost Recovery

amounts through issuance of securitized bonds

SCE will file separate application seeking approval to recover authorized WEMA

CEMA amounts will be recovered through normal course recovery (i.e., rate base)

Next Steps

Parties to proceeding have 30 days to comment on settlement agreement. SCE

anticipates proposed decision within 3-6 months after that

Following final approval, separate application to issue securitized bonds expected to

take 6 months for CPUC approval

SCE anticipates securitized bond proceeds would be received by end of 2025

Edison International | August 2024 Business Update Supplement

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Authorized Cost Recovery and Permanent Disallowances

Final Settlement

SCE

Authorized

Permanent

Recovery

(in millions)1

Application

Disallowance

WEMA Initial Application

$2,406

$1,444

$963

60%

WEMA Costs Incurred 7/31/23 to 5/31/242

305

183

122

60%

Total WEMA through 5/31/24

$2,711

$1,627

$1,085

60%

CEMA

65

55

10

85%

Total WEMA and CEMA

$2,776

$1,682

$1,094

Edison International | August 2024 Business Update Supplement

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Cost recovery for 2017/2018 events benefits financial strength of the utility and reduces costs for customers

Modeling sensitivities:

For each $1 billion of cost recovery…

Debt paydown

$1 billion

with proceeds of securitization

Higher FFO-to-Debt

~40-50 bps

Reduced interest expense

~$35 million

(~9¢/share)

Reduces overall

Total potential avoided

As high as

costs to customers1

excess financing costs2

$4.9 billion

for SCE debt issued over next 10 years

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Disclaimer

Edison International published this content on 29 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 29, 2024 at 11:42:19 UTC.