10-QPeriod: Q2 FY2023

EDISON INTERNATIONAL Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 27, 2023For Securities:EIX

Summary

Edison International reported a net income of $354 million for the three months ended June 30, 2023, a significant increase from $241 million in the same period last year. This growth was primarily driven by Southern California Edison's (SCE) improved earnings, which benefited from higher revenues due to rate escalations and increased interest income on undercollections, while also seeing a reduction in non-core expenses related to wildfire claims. For the six months ended June 30, 2023, net income was $664 million, up from $325 million in the prior year, with SCE's performance again being the key driver. The company is actively managing its capital expenditures, forecasting a substantial $43.5 billion program for 2023-2028, with a significant portion dedicated to wildfire mitigation and grid modernization. Efforts to manage wildfire liabilities continue, including an expanded customer-funded self-insurance program approved by the CPUC.

Financial Highlights

46 data points
Beta

Revenue

$3.96B

Net Income

$409.00M

10.3% Net Margin

EPS (Diluted)

$0.92

Total Assets

$79.55B

Cash & Equivalents

$195.00M

Free Cash Flow

-$585.00M

Financial Statements
Beta
Revenue$3.96B
Operating Expenses$3.24B
Operating Income$724.00M
Interest Expense$392.00M
Net Income$409.00M
EPS (Basic)$0.92
EPS (Diluted)$0.92
Shares Outstanding (Basic)383.00M
Shares Outstanding (Diluted)385.00M

Key Highlights

  • 1Net income increased by $113 million to $354 million for the three months ended June 30, 2023, compared to the prior year period.
  • 2Six-month net income rose by $339 million to $664 million, driven by SCE's improved performance.
  • 3SCE has filed its 2025 General Rate Case application, requesting a revenue requirement of $10.3 billion, reflecting a 23% increase over the 2024 request, to support infrastructure investments for reliability and the clean energy transition.
  • 4The company forecasts a total capital program of $43.5 billion from 2023 through 2028, with a weighted-average rate base expected to reach $60.9 billion by 2028.
  • 5CPUC approved an expanded customer-funded self-insurance program to manage wildfire-related claims, effective H2 2023.
  • 6SCE is seeking CPUC-jurisdictional rate recovery of approximately $6 billion in uninsured claims related to the 2017/2018 wildfire events.
  • 7Credit ratings from Moody's and Fitch were upgraded, reflecting improved financial stability.

Frequently Asked Questions

The primary driver for the increase in net income was the improved performance of Southern California Edison (SCE), which benefited from higher revenues due to rate escalations from the 2021 GRC, increased interest income on balancing account undercollections, and lower non-core expenses, particularly related to wildfire claims.

Edison International forecasts a significant capital program of $43.5 billion for 2023 through 2028, aimed at infrastructure replacement, wildfire mitigation, and grid upgrades for electrification. Consequently, the weighted-average rate base is projected to increase to $60.9 billion by 2028.

The company is managing wildfire liabilities through several strategies, including seeking rate recovery for uninsured claims from the 2017/2018 events, utilizing insurance recoveries, and an expanded customer-funded self-insurance program approved by the CPUC. They continue to assess and accrue estimated losses for ongoing and potential claims.

SCE's 2025 GRC application requests $10.3 billion in revenue for 2025, a 23% increase over the 2024 request. Key drivers include returning infrastructure replacement to historical levels, investing in reliability and capacity for electrification, and enhancing safety programs for the public and workforce.