10-KPeriod: FY2021

EDISON INTERNATIONAL Annual Report, Year Ended Dec 31, 2021

Filed February 24, 2022For Securities:EIX

Summary

Edison International (EIX) reported 2021 net income of $759 million, an increase of $20 million compared to 2020, primarily driven by improved core earnings at its subsidiary Southern California Edison (SCE). SCE's core earnings rose due to higher authorized revenues from the 2021 General Rate Case decision and increased FERC revenue, partially offset by lower insurance benefits. The company faced significant non-core charges, most notably $919 million (after-tax) related to 2017/2018 wildfire and mudslide events claims and expenses, net of recoveries. SCE also recorded an impairment charge of $47 million for disallowed capital expenditures and a $155 million expense for its contribution to the Wildfire Insurance Fund. SCE's capital expenditures totaled $5.4 billion in 2021, with a projected $6.2 billion for 2022, focused on transmission, distribution, and wildfire mitigation. The company's capital structure and dividend payments are subject to CPUC regulation. Looking ahead, Edison International faces ongoing risks related to wildfire liabilities, regulatory decisions, and the energy transition, while also pursuing opportunities in clean energy and grid modernization.

Financial Highlights

47 data points
Beta

Revenue

$14.90B

Net Income

$925.00M

6.2% Net Margin

EPS (Diluted)

$2.00

Total Assets

$74.75B

Cash & Equivalents

$394.00M

Free Cash Flow

-$5.49B

Financial Statements
Beta
Revenue$14.90B
Operating Expenses$13.43B
Operating Income$1.48B
Interest Expense$925.00M
Net Income$925.00M
EPS (Basic)$2.00
EPS (Diluted)$2.00
Shares Outstanding (Basic)380.00M
Shares Outstanding (Diluted)380.00M

Key Highlights

  • 1Edison International reported 2021 net income of $759 million, up from $739 million in 2020, driven by improved core earnings at SCE.
  • 2SCE's core earnings increased by $118 million due to higher authorized revenues from the 2021 General Rate Case and increased FERC revenue.
  • 3Non-core items significantly impacted net income, including $919 million (after-tax) for 2017/2018 wildfire and mudslide events claims and expenses.
  • 4SCE's capital expenditures were $5.4 billion in 2021, with plans for $6.2 billion in 2022, focusing on grid modernization and wildfire mitigation.
  • 5The company is committed to California's decarbonization goals, with 42% of SCE's customer deliveries in 2021 coming from carbon-free resources.
  • 6Wildfire-related liabilities remain a significant concern, with $1.6 billion in estimated losses for remaining claims related to the 2017/2018 events, subject to regulatory recovery approval.
  • 7The company's credit ratings from Moody's, Fitch, and S&P are stable, but could be affected by regulatory outcomes and wildfire fund depletion.

Frequently Asked Questions

Edison International's 2021 net income of $759 million, an increase from $739 million in 2020, was primarily driven by improved core earnings at its subsidiary, Southern California Edison (SCE). SCE benefited from higher authorized revenues resulting from the 2021 General Rate Case decision and increased FERC revenue, which were partially offset by lower insurance benefits and higher property taxes.

The company recorded substantial non-core charges in 2021, most notably $919 million (after-tax) related to claims and expenses from the 2017/2018 wildfire and mudslide events, net of expected recoveries. Additionally, an impairment charge of $47 million was recorded for disallowed historical capital expenditures in SCE's 2021 GRC decision, and SCE incurred $155 million in Wildfire Insurance Fund expense.

SCE is actively implementing its Wildfire Mitigation Plan (WMP) which includes grid hardening, vegetation management, and Public Safety Power Shutoffs (PSPS). Costs associated with these efforts and wildfire insurance are tracked in various memorandum and balancing accounts and SCE seeks recovery through CPUC-jurisdictional rates, subject to reasonableness review. However, significant uncertainty remains regarding the recovery of uninsured wildfire-related costs for fires that occurred prior to July 12, 2019.

Edison International and SCE are committed to California's decarbonization goals. In 2021, 42% of SCE's customer deliveries came from carbon-free resources, and the company is investing in utility-owned storage capacity, transportation electrification programs, and building electrification initiatives to support a clean energy future. Edison International aims to achieve net-zero GHG emissions by 2045.