News Releases

Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540

ROSEMEAD, Calif., Oct. 29, 2010 – Edison International (NYSE: EIX) today reported third quarter 2010 basic earnings of $1.56 per share compared to $1.23 per share in the same quarter last year. Excluding non-core items and discontinued operations, third quarter 2010 core earnings were $1.46 per share compared to $1.09 per share in the third quarter of 2009. The core earnings increase is attributable to higher results at both Southern California Edison (SCE) and Edison Mission Group (EMG).

“Both of our companies delivered solid earnings growth this quarter,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “Given our strong year-to-date performance, we’ve increased our full-year earnings guidance accordingly,” Craver added. The company raised its 2010 core earnings guidance range from $3.15 to $3.45 per share to $3.45 to $3.60 per share.

Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings and Reconciliation of Core Earnings Per Share Guidance to Basic Earnings Per Share Guidance.

Third Quarter Earnings Detail

SCE’s third quarter 2010 basic earnings were $1.21 per share compared to $1.06 per share in the third quarter of 2009. Core earnings were $1.08 per share compared to $0.92 per share in the same quarter last year. The increase in core earnings was primarily due to higher authorized revenue to support rate base growth and higher capitalized financing costs. Non-core items included a $0.13 per share benefit in the third quarter of 2010 from final resolution of interest charges related to a California Franchise Tax Board settlement and a $0.14 per share benefit in the third quarter of 2009 related to transferring a power plant to rate base.

EMG’s third quarter 2010 basic earnings were $0.34 per share compared to $0.19 per share in the third quarter of 2009. Core earnings were $0.37 per share compared to $0.19 per share in the same quarter last year. Core earnings increased due to higher operating revenues from Midwest Generation and Homer City primarily from higher average realized energy prices, higher capacity revenues, and a gain from the sale of bankruptcy claims. Non-core items in the third quarter of 2010 included a $0.03 per share charge related to the California tax settlement and discontinued operations.

Edison International parent company and other reported third quarter 2010 earnings of $0.01 per share compared to a $0.02 per share loss in the third quarter of 2009. Earnings in the third quarter of 2010 were mainly due to consolidated income tax benefits. 

Year-to-Date Earnings Summary

Edison International reported basic earnings of $3.33 per share for the nine-month period ending September 30, 2010, compared to $1.94 per share for the same period last year. Core earnings for the first nine months of 2010 were $2.90 per share compared to $2.66 per share for the same period in 2009. Non-core items were a $0.43 per share benefit in the 2010 period compared to a $0.72 per share loss in the 2009 period, both primarily related to tax settlements.

Year-to-Date Earnings Detail

SCE’s year-to-date basic earnings through September 30, 2010 were $2.63 per share compared to $3.23 per share in the same period last year. Core earnings for the first nine months of 2010 were $2.45 per share compared to $2.17 per share for the same period in 2009. The increase reflects higher authorized revenue to support rate base growth, lower income tax expense, and higher capitalized financing costs. The year-to-date increase was partially offset by higher operating expenses that continue to reflect the impact of curtailed spending in the prior year period due to the timing of the 2009 general rate case decision. The year-to-date lower tax expense includes a change in method of tax accounting for asset removal costs primarily related to SCE’s infrastructure replacement program. Non-core items in the 2010 period included a $0.30 per share benefit from tax settlements and a $0.12 per share charge related to the tax impact of health care legislation. Non-core items in 2009 included a $0.92 per share benefit from the tax settlement and a $0.14 per share benefit related to transferring a power plant to rate base.

EMG’s year-to-date basic earnings were $0.66 per share compared to a loss of $1.38 per share in the same period last year. Year-to-date core earnings were $0.49 per share compared to $0.55 per share in the 2009 period. EMG’s core earnings were lower primarily from higher plant maintenance costs in 2010 due to scheduled outages at EMG’s merchant power plants, partially offset by higher energy trading revenues. Non-core items included a $0.16 per share benefit from tax settlements and a $0.01 per share benefit from discontinued operations in the 2010 period and a $1.93 per share charge primarily related to lease terminations and the tax settlement in the 2009 period.

Edison International parent company and other reported basic earnings through September 30, 2010 of $0.04 per share compared to basic earnings of $0.09 per share in the same period last year. Core losses were $0.04 per share in the 2010 period and $0.06 per share in the 2009 period, with the improvement due primarily to consolidated income tax benefits.

2010 Earnings Guidance

Edison International increased its 2010 core earnings guidance range from $3.15 to $3.45 per share to $3.45 to $3.60 per share. The company also updated its basic earnings per share guidance to reflect the increase in core guidance and year-to-date non-core items. See the risk disclosure statement in the appendix and the presentation accompanying the company’s conference call for further information.

¹ See Use of Non-GAAP Financial Measures in the appendix. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. The expected impact of participating securities is $(0.01) per share and is included in EIX parent company and other.

About Edison International

Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.

# # #

APPENDIX AND SUMMARY FINANCIAL SCHEDULES

Edison International Reports Third Quarter 2010 Results; Increases 2010 Earnings Guidance