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Edison International 8-K Report, Regulation FD Disclosure (Feb 28, 2025)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed February 28, 2025
Period End
February 27, 2025
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 February 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Edison International (EIX) filed this Form 8-K on February 28, 2025 to furnish its February 27, 2025 Business Update presentation (Exhibit 99.1) for use in investor meetings and conferences.

The deck reaffirms the company's wires-focused strategy, with a $38a–43 billion 2023–2028 capital plan for its principal subsidiary Southern California Edison (SCE), a 6–8% rate base CAGR (roughly 8% CAGR per the presentation's chart), and a target dividend payout of 45–55% of SCE core earnings. Management also issued revised 2025 Core EPS guidance of $5.94–6.34, which incorporates a one-time benefit from the approved TKM wildfire settlement and reduced interest expense. The most important near-term development is the TKM (Thomas, Koenigstein, and Montecito/Debris Flow) settlement, which the CPUC has approved, authorizing recovery of 60% of WEMA costs and 85% of CEMA costs, or about $1.6 billion in settlement value versus an approximately $5.4 billion request for the Woolsey application.

The settlement drives a roughly 44 cent 2025 EPS contribution (30 cents from a one-time interest true-up and 14 cents of run-rate interest savings), and SCE plans a securitization filing in March 2025 with proceeds of about $1.6 billionb expected by year-end 2025. The Woolsey cost recovery application, which seeks $5.4 billion, remains pending, with intervenor testimony scheduled for June 2025. The presentation also highlights the company's 2025–2028 financing plan, which projects 5–7% Core EPS CAGR and minimal equity needs (about $0.4 billion, excluding the one-time TKM true-up).

Pending items that could move results include the 2025 General Rate Case (GRC) proposed decision, which covers roughly $1.9 billionc of 2025 revenue requirement increases, and the outcome of the Woolsey proceeding. Investors should note ongoing wildfire liability exposure under AB 1054, credit ratings that carry a negative outlook at S&P (BBB) and Moody's Baa1 (stable), and the forward-looking risk factors in the disclosure.

02—Key points

Key Highlights

  1. Revised 2025 Core EPS guidance of $5.94–6.34, including 44 cents from the approved TKM settlement (30 cents one-time true-up plus 14 cents run-rate interest reduction).
  2. CPUC approved the TKM settlement at about $1.6 billion, with recovery of 60% of WEMA costs and 85% of CEMA costs; securitization filing planned for March 2025 with proceeds expected by year-end 2025.
  3. Woolsey cost recovery application seeks $5.4 billion (about $3.44/month average residential impact) and remains pending, with intervenor testimony due June 2025.
  4. Capital plan of $38–43 billion for 2023–2028, with rate base growing at a 6–8% CAGR (about 8% per the chart) to roughly $55–61 billion by 2028 on a range-case basis.
  5. 2025–2028 Core EPS growth target of 5–7% CAGR, with financing plan requiring about $8–11 billion of incremental debt and approximately $0.4 billion of equity.
  6. 2025 GRC record is complete and awaiting a proposed decision; the request implies roughly $1.9 billion of 2025 annual revenue requirement increase, with partial settlements covering about 19% of O&M and 8% of capital.
  7. Dividend growth has continued for 21 consecutive years, with 2025 dividends of $3.31 per share (about 6% current yield), and a target payout of 45–55% of SCE core earnings.

03—Questions

Frequently Asked Questions

  1. What changed in Edison International's 2025 earnings outlook?

    Management revised 2025 Core EPS guidance to $5.94–6.34, up from the original $5.50–5.90 range. The increase reflects the approved TKM wildfire settlement, which contributes about 44 cents: a one-time 30 cent true-up for past interest expense and a 14 cent run-rate reduction in interest expense going forward.

  2. What is the status of the wildfire cost recovery proceedings?

    The TKM settlement has been approved by the CPUC, and SCE plans to file for securitization of about $1.6 billion in March 2025. The Woolsey application, which seeks $5.4 billion, is still awaiting a scoping memo, with intervenor testimony proposed for June 2025 and evidentiary hearings in September 2025. Cost recovery outcomes are uncertain and could change the financing plan.

  3. How much capital does SCE plan to invest, and how fast is rate base expected to grow?

    SCE forecasts $38–43 billion of capital investment from 2023 to 2028, with more than 85% directed to the distribution grid. Rate base is projected to grow at a 6–8% CAGR, with the presentation's chart showing roughly 8% CAGR from about $41 billion in 2023 to about $61 billion in 2028 on a combined basis. Management notes that substantial additional investment opportunities are not included in this forecast.

  4. What are the main risks investors should monitor?

    Key risks include wildfire liability under AB 1054, including the CPUC's prudency determinations and the limits of the Wildfire Insurance Fund; the outcome of the 2025 GRC and the Woolsey proceeding; affordability pressure on customer rates; and credit rating actions, since S&P rates SCE and EIX BBB with a negative outlook. The company also faces risks related to extreme weather, regulatory changes, and wildfire mitigation execution.

04—Continue

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