8-KRegulation FDOther EventsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Regulation FD Disclosure (May 12, 2023)

Filed May 12, 2023For Securities:EIX

Summary

Edison International (EIX) filed an 8-K on May 12, 2023, primarily to provide details regarding its upcoming second quarter earnings call and its subsidiary Southern California Edison's (SCE) 2025 General Rate Case (GRC) filing. Management will provide an update on long-term core EPS growth rate projections through 2028, with a target compound annual growth rate based on the midpoint of its 2025 core EPS guidance and extending to 2028. This new projection period aligns with the capital expenditure and rate base forecasts outlined in the GRC filing. The GRC filing by SCE is significant as it requests substantial revenue requirement increases for the 2025-2028 period to fund critical investments in grid reliability, modernization, wildfire mitigation, and clean energy transition initiatives. These investments are expected to drive significant growth in SCE's rate base, which is a key metric for utility revenue generation and investor returns.

Key Highlights

  • 1Edison International management will update long-term core EPS growth rate projections through 2028 on the second quarter earnings call.
  • 2The updated EPS growth target will be based on a 2025 core EPS guidance midpoint ($5.50-$5.90) and end in 2028.
  • 3Edison International expects to reaffirm its 2021-2025 core EPS growth rate target of 5%-7%.
  • 4Southern California Edison (SCE) filed its 2025 General Rate Case (GRC) application, requesting a 2025 revenue requirement of $10.3 billion, a 23% increase over the 2024 request.
  • 5The GRC application supports a total capital program of $43 billion for 2023-2028, focusing on infrastructure replacement, reliability, clean energy transition, and wildfire mitigation.
  • 6If approved as requested, SCE forecasts its weighted-average rate base to grow to $60.9 billion by 2028, representing an 8% compound annual growth rate from 2023.
  • 7A range case estimate suggests a $38 billion capital program for 2023-2028 and a rate base of $55.2 billion by 2028 (6% CAGR).

Frequently Asked Questions

This 8-K filing serves two main purposes: to inform investors about upcoming details on Edison International's long-term EPS growth targets to be discussed on the second quarter earnings call, and to provide key information about Southern California Edison's (SCE) 2025 General Rate Case (GRC) filing, including its revenue requirement request and capital expenditure plans.

SCE is requesting a 2025 revenue requirement of $10.3 billion, which is a 23% increase ($1.9 billion) over its 2024 request. The key drivers for this increase are investments necessary for system reliability through infrastructure replacement, grid upgrades for electrification and de-carbonization goals, and wildfire mitigation and public safety programs.

Based on the full capital expenditures requested in the GRC application, SCE forecasts its total weighted-average rate base to increase to $60.9 billion by 2028, reflecting an approximate 8% compound annual growth rate from 2023. A more conservative 'range case' estimate projects the rate base to reach $55.2 billion by 2028, a 6% CAGR.

Edison International management indicated that an update on the company's core earnings per share (EPS) growth rate projections through 2028 will be provided during the company's second quarter 2023 earnings call.