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Edison International 8-K Report, Regulation FD Disclosure (Oct 30, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed October 30, 2024
Period End
October 29, 2024
Security
EIX
In the record · 2016–202610-K1110-Q348-K186

EIX filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 186 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’18Feb ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Material agreement8-K · May ’22May ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed October 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Edison International (EIX) furnished an October 29, 2024 Business Update presentation (Exhibit 99.1) under Regulation FD, for use in investor meetings and conferences.

The filing itself contains no new financial statements; its substance is the slide deck, which reaffirms the company's strategy as a wires-focused utility with a $38a–43 billion SCE capital plan for 2023–2028 and roughly 6–8% rate base CAGR, with rate base projected to grow from about $43 billion to roughly $55–61 billion over that period. The most investor-relevant news is earnings-related. EIX narrowed its 2024 Core EPS guidance to $4.80–5.00, and management provided preliminary 2025 Core EPS guidance of $5.50–5.90 and a 5–7% Core EPS growth target for 2021–2025 and 2025–2028.

The company also outlined a 2025–2028 financing plan that needs only about $0.4 billionb of equity. Dividend policy targets a 45–55% payout of SCE core earnings, and the presentation highlights 20 consecutive years of dividend growth. The largest near-term catalyst is legacy wildfire cost recovery.

A proposed settlement for the 2017/2018 Thomas, Koenig (TKM) and Montecito Mudslide events would authorize about $1.6 billionc of recovery (60% of WEMA costs) and about $55 million of CEMA recovery, with a CPUC decision expected in the first half of 2025. A separate $5.4 billion Woolsey cost recovery application was filed on October 8, 2024.

Pending the 2025 GRC proposed decision, the presentation also notes that SCE's rate increases through 2028 are expected to track near inflation. Key risks remain wildfire liability under AB 1054, regulatory outcomes, and rising debt interest costs tied to wildfire claims payments.

02—Key points

Key Highlights

  1. Narrowed 2024 Core EPS guidance to $4.80–5.00 (vs. $4.76 in 2023) and introduced 2025 Core EPS guidance of $5.50–5.90, with a 5–7% 2021–2025 growth target reaffirmed.
  2. Capital plan of $38–43 billion for 2023–2028 underpins rate base growth of about 6–8% CAGR, with rate base rising from roughly $43 billion in 2023 to about $61 billion by 2028 in the Forecast Case.
  3. TKM wildfire settlement, if approved, would authorize about $1.6 billion of WEMA recovery (60%) and $55 million of CEMA recovery, with a CPUC decision expected in 1H 2025 and roughly $1.6 billion of securitized proceeds expected by year-end 2025.
  4. Woolsey cost recovery application (A.24-10-002) seeks $5.4 billion of costs, filed October 8, 2024; protests were due November 12, 2024.
  5. 2025 GRC record is complete and awaiting a proposed decision. Partial settlements cover about 19% of O&M and 8% of capital requests, and the GRC is expected to add about $1.9 billion in 2025 annual revenue requirement.
  6. Management estimates 85–90%+ wildfire risk reduction from mitigation efforts, with 85% of planned grid hardening complete as of September 30, 2024, and a total return opportunity of 9–11% based on the current dividend yield and growth.
  7. Investment-grade ratings are maintained at EIX and SCE (Baa1/BBB/BBB at SCE; Baa2/BBB/BBB at EIX parent). S&P lowered its FFO-to-Debt downgrade threshold to 14% from 15% in 2024.

03—Questions

Frequently Asked Questions

  1. Did this 8-K include new financial results or a guidance change?

    No new financial statements were filed. The 8-K furnishes an investor presentation under Item 7.01 (Regulation FD). Within that presentation, EIX narrowed its 2024 Core EPS guidance to $4.80–5.00 and provided preliminary 2025 Core EPS guidance of $5.50–5.90.

  2. What is the status of the TKM wildfire cost recovery settlement?

    The settlement with Cal Advocates would authorize recovery of about $1.6 billion in WEMA costs (60% of claims, financing and legal costs) and about $55 million in CEMA restoration costs. It still requires CPUC approval, which management expects in the first half of 2025. Securitization of the $1.6 billion would follow, with proceeds expected by year-end 2025, subject to a separate application and roughly six months of review.

  3. What does the company expect for long-term earnings growth and dividends?

    EIX reaffirmed a 5–7% Core EPS growth target for 2021–2025 and expects 5–7% Core EPS growth for 2025–2028, with 2028 achievable EPS of $6.60–7.00. The dividend has grown for 20 consecutive years, and the target payout is 45–55% of SCE core earnings.

  4. What are the main risks flagged in the presentation?

    Key risks include the ability to recover wildfire-related costs through rates, the longevity and interpretation of the AB 1054 Wildfire Insurance Fund and prudency standard, regulatory decisions (including the 2025 GRC and Woolsey application), affordability pressure on rates, rising interest costs on wildfire claims debt, and extreme weather or wildfire events.

04—Continue

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