10-QPeriod: Q3 FY2022

EDISON INTERNATIONAL Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 1, 2022For Securities:EIX

Summary

Edison International (EIX) reported a net loss attributable to common shareholders of $128 million ($0.33 per diluted share) for the third quarter of 2022, a decrease from a loss of $341 million ($0.90 per diluted share) in the same period of the prior year. This improvement was primarily driven by lower non-core losses, specifically a significant reduction in wildfire-related claims and expenses. For the first nine months of 2022, Edison International reported net income attributable to common shareholders of $197 million ($0.52 per diluted share), down from $236 million ($0.62 per diluted share) in the same period of 2021. The decline was primarily due to higher non-core losses within Edison International Parent and Other, partially offset by improved core earnings at Southern California Edison (SCE). Key financial and operational highlights include SCE's capital expenditure forecast, ongoing wildfire litigation settlements, and regulatory updates. The company continues to manage significant wildfire liabilities, with an estimated $1.2 billion in losses for remaining claims related to the 2017/2018 wildfire events. Additionally, SCE is advancing its capital investment program focused on grid modernization and wildfire mitigation.

Financial Highlights

46 data points
Beta

Revenue

$5.23B

Net Income

-$74.00M

-1.4% Net Margin

EPS (Diluted)

$-0.33

Total Assets

$76.71B

Cash & Equivalents

$233.00M

Free Cash Flow

-$624.00M

Financial Statements
Beta
Revenue$5.23B
Operating Expenses$5.27B
Operating Income-$44.00M
Interest Expense$302.00M
Net Income-$74.00M
EPS (Basic)$-0.33
EPS (Diluted)$-0.33
Shares Outstanding (Basic)382.00M
Shares Outstanding (Diluted)383.00M

Key Highlights

  • 1Edison International reported a narrower net loss of $128 million for Q3 2022 compared to $341 million in Q3 2021, primarily due to reduced wildfire-related non-core losses.
  • 2For the nine months ended September 30, 2022, net income attributable to common shareholders decreased to $197 million from $236 million in the prior year period.
  • 3Southern California Edison (SCE) recorded an increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events by $880 million in Q3 2022, primarily related to the Woolsey Fire.
  • 4SCE's total capital expenditures for the first nine months of 2022 were $4.1 billion, with a forecast for 2022-2024 of $17.5 billion, including significant wildfire mitigation-related capital expenditures.
  • 5The company is seeking regulatory approval for its 2023 cost of capital, proposing a return on equity of 10.53%, and is also updating its General Rate Case (GRC) filings for future years.
  • 6SCE settled an administrative enforcement order for $7 million related to Public Safety Power Shutoff (PSPS) noncompliance in 2020.
  • 7The company anticipates receiving approximately $270 million in tax credits under the Inflation Reduction Act of 2022 for its utility-owned storage projects.

Frequently Asked Questions

The primary driver for the improved net loss in the third quarter of 2022 compared to the prior year was a significant decrease in non-core losses, particularly wildfire-related claims and expenses. However, for the nine-month period, net income decreased due to higher non-core losses at Edison International Parent and Other, despite improvements in SCE's core earnings.

Edison International and SCE continue to manage substantial wildfire liabilities. As of September 30, 2022, the estimated losses for remaining claims related to the 2017/2018 Wildfire/Mudslide Events were $1.2 billion. The company also recorded an $880 million increase in estimated losses for these events in Q3 2022, primarily related to the Woolsey Fire. For post-2018 wildfires, estimated losses were $689 million, with significant expected insurance and rate recovery.

SCE forecasts total capital expenditures of $17.5 billion between 2022 and 2024, which includes traditional capital expenditures for distribution and transmission, as well as significant investments in wildfire mitigation. The company also expects to incur additional capital expenditures between 2024 and 2025, ranging from $5.3 billion to $6.8 billion for various programs, including utility-owned storage projects and grid modernization efforts.

Yes, Edison International and SCE are involved in several significant matters. This includes ongoing litigation and settlements related to past wildfires, such as the 2017/2018 Wildfire/Mudslide Events, with estimated remaining losses of $1.2 billion. Additionally, SCE is navigating regulatory proceedings concerning its cost of capital for 2022 and 2023, as well as various rate case filings and investigations, such as the Upstream Lighting Program, which resulted in a proposed refund and fines.