August 08, 2006 August 8, 2006 ROSEMEAD, Calif., August 8, 2006— Edison International (EIX) recorded earnings per common share of 54 cents in the second quarter of 2006 compared to 61 cents in 2005, down 7 cents primarily due to non-core items. Excluding earnings from discontinued operations and other non-core items, core earnings per share were 55 cents in the second quarter of 2006, up one cent over the same period last year. This increase was primarily driven by improved results from the independent power business, partially offset by gains recorded in 2005 from an Edison Capital infrastructure fund investment. Second Quarter 2006 Highlights: Earnings per common share – $0.54 Net Income – $177 million Revenue – $3.0 billion Assets – $35.2 billion Equity – $7.1 billion SECOND-QUARTER EARNINGS SUMMARY For the quarter ended June 30, 2006, Edison International recorded consolidated earnings of 54 cents per share, compared to 61 cents per share for the same period last year. Excluding earnings from discontinued operations and other non-core items, Edison International’s second-quarter core earnings were 55 cents per share in 2006, compared to 54 cents per share in the same period in 2005. “Second quarter core earnings which include results from the 2006 General Rate Case decision were solid,” commented John E. Bryson, chairman and CEO, Edison International. “The experience of the heat storm just two weeks ago demonstrated the importance of that decision in supporting our planned continued record levels of capital investment in the utility’s distribution and transmission system.” SECOND-QUARTER EARNINGS DETAIL Earnings (Loss) from Continuing Operations Southern California Edison Company’s (SCE) earnings from continuing operations were $234 million in the second quarter of 2006, an increase of $73 million compared to the second quarter of 2005. SCE’s results include an $81 million, or 25-cents-per-share, one-time benefit from resolution of an outstanding state income tax issue. Excluding non-core items, SCE’s second-quarter 2006 core earnings were $153 million compared to $157 million in the second quarter of 2005. This change reflects the net impact of higher revenue at SCE associated with the implementation of the 2006 General Rate Case (GRC) decision and the return on investment earned by SCE’s Mountainview plant, more than offset by higher operating and income tax expenses. SCE received the 2006 GRC decision in May, allowing the company to recover its net revenue back to early January, which was recorded in the second quarter. Also, as a result of the seasonality of the company’s sales, along with the rate design approved in the GRC decision, SCE’s base rate revenue will be higher in the third quarter compared to the other three quarters of 2006. Edison Mission Group’s (EMG) 2006 second-quarter loss from continuing operations was $56 million, down $81 million from results in the same period last year. As a part of EMG, Mission Energy Holding Company’s (MEHC) second-quarter 2006 loss of $60 million includes an after-tax charge of $88 million, or 27 cents per share, reflecting the early extinguishment of debt related to Edison Mission Energy’s bond refinancing. Excluding this charge, MEHC’s core earnings were $28 million, an improvement of $26 million over the second quarter of 2005. The increase is primarily due to higher wholesale energy margins mainly driven by higher prices at the Illinois Plants and Homer City, an estimated insurance recovery at Homer City related to the Unit 3 outage, and higher net interest income, partially offset by higher taxes. Earnings in the second quarter of 2006 for Edison Capital, also part of EMG, were $4 million compared to $23 million in the second quarter of 2005. This decrease is primarily due to Edison Capital's share of income from its investment in the Emerging Europe Infrastructure Fund which recorded a gain in the second quarter of 2005. Earnings from Discontinued Operations Edison International’s earnings from discontinued operations were $4 million in the second quarter of 2006 compared to $21 million in the same period last year. The 2006 and 2005 earnings resulted primarily from distributions received related to the Lakeland project. Quarter Ended June 30, Earnings (Loss) Per Common Share (Unaudited) 2006 2005 Change Southern California Edison Company $0.72 $0.49 $0.23 Edison Mission Group Mission Energy Holding Company (0.18) 0.01 (0.19) Edison Capital 0.01 0.07 (0.06) Edison Mission Group Total (0.17) 0.08 (0.25) EIX (parent) and other (0.02) (0.02) -- EIX Consol. Earnings from Continuing Operations 0.53 0.55 (0.02) Earnings from Discontinued Operations 0.01 0.06 (0.05) Total EIX Consolidated Earnings $0.54 $0.61 $(0.07) Quarter Ended June 30, Earnings (Loss) (in millions) (Unaudited) 2006 2005 Change Southern California Edison Company $234 $161 $73 Edison Mission Group Mission Energy Holding Company (60) 2 (62) Edison Capital 4 23 (19) Edison Mission Group Total (56) 25 (81) EIX (parent) and other (5) (6) 1 EIX Consol. Earnings from Continuing Operations 173 180 (7) Earnings from Discontinued Operations 4 21 (17) Total EIX Consolidated Earnings $177 $201 $(24) YEAR-TO-DATE EARNINGS SUMMARY Edison International recorded consolidated earnings per share of $1.32 for the six-month period ending June 30, 2006, compared to $1.23 for the same period last year. Edison International had earnings from continuing operations of $1.08 per share for the six-month period ended June 30, 2006, compared with $1.15 per share for the same period last year. Excluding earnings from discontinued operations and other non-core items, Edison International’s core earnings for the six-month period were $1.10 per share in 2006, compared to $1.19 per share in the same period in 2005. YEAR-TO-DATE EARNINGS DETAIL Earnings (Loss) from Continuing Operations SCE’s earnings from continuing operations in the first half of 2006 were $355 million, an increase of $63 million compared to the same period last year. SCE’s results include an $81 million one-time benefit from the resolution of an outstanding state income tax issue. Excluding non-core items, SCE’s core earnings were $274 million compared to $288 million in the same period last year as the higher base rate revenue authorized by the 2006 GRC, and the earnings from SCE’s Mountainview project, were more than offset by higher operating and income tax expenses. Also, as a result of the seasonality of the company’s sales, along with the rate design approved in the GRC decision, SCE’s base rate revenue will be higher in the third quarter compared to the other three quarters of 2006. EMG’s earnings from continuing operations for the first six months of 2006 were $17 million, down $85 million from the same period last year. Excluding non-core items, MEHC’s core earnings were $86 million, an increase of $42 million. This increase primarily reflects higher wholesale energy margins mainly driven by higher prices at the Illinois Plants, higher net interest income, and higher energy trading income, partially offset by higher taxes. Edison Capital’s earnings for the six months ended June 30, 2006, were $19 million, down $54 million from the same period last year when results included gains from its Emerging Europe Infrastructure Fund investment. MEHC’s equity in income from its energy projects is seasonal and therefore materially higher in the third quarter compared to other quarters of the year, due to warmer weather during the summer months and because a number of MEHC’s energy projects located on the West Coast have power sales contracts that provide for higher payments during the summer months. Earnings from Discontinued Operations Edison International’s earnings from discontinued operations were $77 million for the six-month period ending June 30, 2006, compared to $28 million for the same period last year, with both years’ earnings resulting primarily from distributions from MEHC’s Lakeland project. Year-to-Date June 30, Earnings (Loss) Per Common Share (Unaudited) 2006 2005 Change Southern California Edison Company $1.09 $0.89 $0.20 Edison Mission Group Mission Energy Holding Company (0.01) 0.10 (0.11) Edison Capital 0.06 0.22 (0.16) Edison Mission Group Total 0.05 0.32 (0.27) EIX (parent) and other (0.06) (0.06) -- EIX Consol. Earnings from Continuing Operations 1.08 1.15 (0.07) Earnings from Discontinued Operations 0.24 0.08 0.16 Total EIX Consolidated Earnings $1.32 $1.23 $0.09 Year-to-Date June 30, Earnings (Loss) (in millions) (Unaudited) 2006 2005 Change Southern California Edison Company $355 $292 $63 Edison Mission Group Mission Energy Holding Company (2) 29 (31) Edison Capital 19 73 (54) Edison Mission Group Total 17 102 (85) EIX (parent) and other (15) (19) 4 EIX Consol. Earnings from Continuing Operations 357 375 (18) Earnings from Discontinued Operations 77 28 49 Cumulative Effect of Change in Accounting Principle 1 -- 1 Total EIX Consolidated Earnings $435 $403 $32 Since the first quarter of 2006, the results of MEHC, Edison Capital and other smaller subsidiaries have been presented on a consolidated basis as EMG. This change was made to reflect the integrated management of MEHC and Edison Capital. In addition, effective April 2006, the wind assets and biomass power project previously owned by Edison Capital were transferred to MEHC. The transfer was applied retrospectively, in accordance with accounting rules. Reminder: Edison International Will Hold a Conference Call Today Today, Edison International will hold a conference call to discuss its second-quarter 2006 financial results at 8 a.m. (Pacific time). Although two-way participation in the telephone call is limited to financial analysts and investors, all other interested parties are invited to participate in a “listen-only” mode through a simultaneous webcast on the company’s web site at www.edisoninvestor.com. Additional financial and other statistical information, if any, presented during the call will be available on the web site. The domestic call-in number is (800) 356-8584 and the ID# is 10900. Chart 1, 2 and 3 Risk Disclosure Statement This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International’s current expectations and projections about future events based on Edison International’s knowledge of present facts and circumstances and assumptions about future events and include any statement that does not directly relate to a historical or current fact. In this report and elsewhere, the words “expects,” “believes,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “probable,” “may,” “will,” “could,” “would,” “should,” and variations of such words and similar expressions, or discussions of strategy or of plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could impact Edison International or its subsidiaries, include but are not limited to: the ability of Edison International to meet its financial obligations and to pay dividends on its common stock if its subsidiaries are unable to pay dividends; the ability of SCE to recover its costs in a timely manner from its customers through regulated rates; decisions and other actions by the CPUC and other regulatory authorities and delays in regulatory actions; market risks affecting SCE’s energy procurement activities; access to capital markets and the cost of capital; changes in interest rates, rates of inflation and foreign exchange rates; governmental, statutory, regulatory or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market and environmental regulations that could require additional expenditures or otherwise affect the cost and manner of doing business; risks associated with operating nuclear and other power generating facilities, including operating risks, nuclear fuel storage, equipment failure, availability, heat rate and output; the availability of labor, equipment and materials; the ability to obtain sufficient insurance, including insurance relating to SCE’s nuclear facilities; effects of legal proceedings, changes in or interpretations of tax laws, rates or policies, and changes in accounting standards; supply and demand for electric capacity and energy, and the resulting prices and dispatch volumes, in the wholesale markets to which MEHC generating units have access; the cost and availability of coal, natural gas, fuel oil, nuclear fuel, and associated transportation; the cost and availability of emission credits or allowances for emission credits; transmission congestion in and to each market area and the resulting differences in prices between delivery points; the ability to provide sufficient collateral in support of hedging activities and purchased power and fuel; the extent of additional supplies of capacity, energy and ancillary services from current competitors or new market entrants, including the development of new generation facilities and technologies; the difficulty of predicting wholesale prices, transmission congestion, energy demand and other activities in the complex and volatile markets in which MEHC and its subsidiaries participate; general political, economic and business conditions; weather conditions, natural disasters and other unforeseen events; and changes in the fair value of investments and other assets. Additional information about risks and uncertainties, including more detail about the factors described above, is contained in Edison International’s reports filed with the Securities and Exchange Commission. Readers are urged to read such reports and carefully consider the risks, uncertainties and other factors that affect Edison International’s business. Readers also should review future reports filed by Edison International with the Securities and Exchange Commission. The information contained in this release is subject to change without notice. Forward-looking statements speak only as of the date they are made and Edison International is not obligated to publicly update or revise forward-looking statements. Additional Attachments: Click here to view the Edison International Summary Of Consolidated Earnings Click here to view the Kwh Sales (In Thousands) # # # Rosemead, Calif.-based Edison International (NYSE:EIX) is an electric power generator and distributor, and an investor in infrastructure and renewable energy projects with assets totaling almost $35 billion. The company is comprised of a regulated utility, Southern California Edison (SCE) and an unregulated group of business units, Edison Mission Group (EMG). The California Public Utilities Commission does not regulate the terms of EMG’s products and services.