10-KPeriod: FY2023

EDISON INTERNATIONAL Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:EIX

Summary

Edison International (EIX) reported a net income of $1.197 billion for the year ended December 31, 2023, a significant increase from $612 million in 2022. This improvement was primarily driven by Southern California Edison's (SCE) core earnings, which rose due to higher revenues from escalation mechanisms and increased interest income, partially offset by higher interest expenses. Key financial highlights include a substantial decrease in non-core items, largely due to lower wildfire-related claims and expenses compared to the prior year. SCE's capital program remains robust, with a forecast of $37.5 billion for 2024-2028 to invest in grid modernization, wildfire mitigation, and electrification efforts. The company also implemented a customer-funded wildfire self-insurance program starting July 1, 2023, aiming to mitigate the financial impact of future wildfire claims. Despite ongoing regulatory proceedings and wildfire liabilities, Edison International's financial position appears stable, supported by SCE's operational performance and capital investment plans.

Financial Highlights

49 data points
Beta

Revenue

$16.34B

Net Income

$1.41B

8.6% Net Margin

EPS (Diluted)

$3.11

Total Assets

$81.76B

Cash & Equivalents

$345.00M

Free Cash Flow

-$2.05B

Financial Statements
Beta
Revenue$16.34B
Operating Expenses$13.71B
Operating Income$2.63B
Interest Expense$1.61B
Net Income$1.41B
EPS (Basic)$3.12
EPS (Diluted)$3.11
Shares Outstanding (Basic)383.00M
Shares Outstanding (Diluted)385.00M

Key Highlights

  • 1Net income attributable to Edison International common shareholders increased to $1.197 billion in 2023 from $612 million in 2022, driven by SCE's higher core earnings.
  • 2Non-core items decreased significantly in 2023, primarily due to lower charges related to wildfire claims and expenses compared to 2022.
  • 3SCE's core earnings increased by $106 million in 2023, attributed to higher revenues from escalation mechanisms and increased interest income on undercollections, partially offset by higher interest expense.
  • 4Edison International forecasts a total capital program of $37.5 billion for 2024-2028, focusing on grid modernization, wildfire mitigation, and supporting California's clean energy transition.
  • 5SCE implemented a customer-funded wildfire self-insurance program effective July 1, 2023, to manage the financial impact of wildfire-related claims.
  • 6SCE's year-end rate base increased to $42.7 billion in 2023 from $40.6 billion in 2022, reflecting ongoing capital investments.
  • 7The company experienced a significant decrease in wildfire-related charges of $34 million in 2023 for Post-2018 Wildfires, compared to $184 million in 2022, although total estimated losses for these wildfires remain substantial.

Frequently Asked Questions

Edison International reported a net income of $1.197 billion for the year ended December 31, 2023, a significant increase from $612 million in the prior year. This improvement was primarily driven by higher core earnings from its subsidiary, Southern California Edison (SCE), due to increased revenues from escalation mechanisms and higher interest income, partially offset by increased interest expenses.

Wildfire-related costs had a less significant negative impact in 2023 compared to 2022. Consolidated non-core items for Edison International decreased substantially in 2023. Charges related to the 2017/2018 Wildfire/Mudslide Events claims and expenses were $634 million in 2023, down from $1.2 billion in 2022. Charges for Post-2018 Wildfires also decreased to $34 million in 2023 from $184 million in 2022. The company also recorded a $213 million charge for the Wildfire Insurance Fund in both 2023 and 2022.

Edison International, through its subsidiary SCE, forecasts a total capital program of $37.5 billion for the period 2024 through 2028. These investments are primarily focused on modernizing the grid, enhancing wildfire mitigation efforts, and supporting California's clean energy transition and electrification goals. Key areas include distribution and transmission infrastructure upgrades, wildfire mitigation capital expenditures, and investments in utility-owned storage projects.

The customer-funded wildfire self-insurance program, implemented by SCE starting July 1, 2023, allows the company to expand its use of self-insurance for wildfire-related claims. This program is funded through customer rates and aims to provide a dedicated fund of up to $1.0 billion per policy year to cover wildfire claims. It is expected to reduce the need for commercial wildfire insurance coverage over time and offers a more stable cost structure for customers.