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
Edison International | August 2024 Business Update Supplement
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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.