News Releases

April 17, 2001

ROSEMEAD, Calif., April 17, 2001— After the effect of a financial accounting charge, Edison International (NYSE: EIX) reported a year 2000 loss of $1.9 billion or $5.84 per share. Excluding the effect of the charge, Edison International’s year 2000 earnings per share were $1.74, compared with $1.79 per share in 1999.

In compliance with Financial Accounting Standards Board (FASB) rules for financial accounting by utilities for "regulatory assets," the company’s regulated utility, Southern California Edison (SCE), reported an after-tax earnings charge of $2.5 billion. Assuming the Memorandum of Understanding announced by Governor Davis and SCE last week is implemented or, alternatively, courts uphold Edison’s legal claims to recover its undercollected costs, this charge against earnings could later be reversed.

According to John Bryson, chairman and CEO of Edison International, “Today’s financial charge, painful as it is for the company, only recognizes the well-known reality of SCE’s large, unreimbursed costs of serving its customers. What is important now, however, is not so much compliance with accounting rules but whether Edison ultimately has a path to recover its costs. A practical means to recovery is charted in the Memorandum of Understanding reached with Governor Davis last week. Prompt implementation of the MOU can avoid the large costs of an SCE bankruptcy and make it possible for the company to restore its financial health and ability to maintain a reliable power grid.”

2000 EARNINGS SUMMARY
Excluding the write-off at SCE, Edison International’s 2000 reported earnings were $578 million, compared with $623 million in 1999, and SCE earned $471 million in 2000, compared with $484 million in 1999.

Edison Mission Energy (EME) earned $125 million in 2000, compared with $130 million in 1999. Edison Capital earned $135 million in 2000, compared with $129 million in 1999. Edison Enterprises and the parent company incurred losses of $154 million in 2000, compared with losses of $120 million in 1999. Edison International’s 1999 earnings included special charges netting to $8 million.

The decrease of $12 million at SCE was primarily attributable to adjustments to reflect potential regulatory refunds, lower gains from sales of equity investments, and a 1999 one-time gain related to a tax benefit partially offset by superior operating performance at the San Onofre Nuclear Generating Station (SONGS) and higher kWh sales.

EME’s 2000 earnings of $125 million decreased $5 million from 1999. The decrease reflects higher interest costs and taxes partially offset by a full year of operating results from the Illinois plants and a reduction of long-term incentive compensation under EME's Phantom Stock Option plan.

Edison Capital contributed $135 million in 2000 compared with $129 million in 1999. Growth in earnings from new investments in infrastructure and leveraged leases, partially offset by declining revenue from existing leveraged leases, were primarily responsible for the $6 million increase.

Edison Enterprises and the parent company’s $154 million loss in 2000 was mostly the result of higher interest expense at the parent company.

2000 FOURTH QUARTER EARNINGS SUMMARY
For the fourth quarter of 2000, Edison International recorded a loss of $2.5 billion. The net loss in the fourth quarter included the December write-off at SCE of generation-related regulatory assets of $2.5 billion (after tax), or $7.74 per share, based on the
quarter’s weighted average shares outstanding of 325,811,206. Excluding the write-off at SCE, Edison International’s fourth quarter 2000 loss was $28 million, compared with earnings of $96 million in 1999.

2000 FOURTH QUARTER EARNINGS DETAIL

Excluding the write-off, SCE earned $30 million in the fourth quarter of 2000, compared with $141 million in 1999. The decrease of $111 million primarily reflects the scheduled refueling outage of SONGS Unit 2, adjustments to reflect potential regulatory refunds and higher interest expense.

EME reported a loss of $35 million for the quarter compared to a loss of $6 million for the same period last year. The decrease was primarily due to an after-tax gain during the fourth quarter of last year from the sale of a portion of EME's interest in Four Star Oil & Gas.

Edison Capital contributed $22 million for the fourth quarter up $2 million from the same period last year. The increase in earnings per share was mainly a result of growth in earnings from new investments in infrastructure, leveraged leases and affordable housing syndications, and lower operating expenses. This increase was partially offset by declining revenue from existing leveraged leases.

Edison Enterprises and the parent company recorded a $46 million loss in fourth quarter of 2000 compared to a $59 million loss in fourth quarter of 1999. Increased interest expense at the parent company offset by a 1999 charge to refocus Edison Enterprises businesses accounted for most of the 2000 increase.

This release contains forward-looking statements about the impact of the recently signed Memorandum of Understanding (MOU) on the assets, earnings, and financial condition of SCE. These statements involve risks and uncertainties. Actual results could differ materially as a result of factors such as failure by the California Public Utilities Commission, California legislature, or other governmental entities to implement the MOU; other regulatory, legislative and governmental actions; actions by creditors, including possible filing of involuntary bankruptcy petitions; possible initiatives or referendum challenging the actions contemplated by the MOU; and other factors described in Edison International’s Annual Report on form 10-K for the year ended December 31, 2000.

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Based in Rosemead, Calif., Edison International is the parent company of Southern California Edison, Edison Mission Energy, Edison Capital, Edison O&M Services, and Edison Enterprises.