November 03, 2006 November 3, 2006 ROSEMEAD, Calif., November 3, 2006— Edison International (EIX) announced earnings per common share of $1.38 in the third quarter of 2006 compared to $1.41 in the third quarter of 2005, a decline of 3 cents per share, or approximately 2 percent, primarily due to the net effect of: An 8-cents-per-share increase in core, or operating, earnings due to improved results at both Southern California Edison Company (SCE) and Edison Mission Group (EMG); offset by An 11-cents-per-share decrease in non-core earnings. Excluding discontinued operations and other non-core items, core earnings per share increased more than 6 percent to $1.32 in the third quarter of 2006 from $1.24 in the same period a year ago. EIX is confirming its 2006 core earnings guidance of $2.91 per share and increasing total earnings guidance to $3.19 per share. For 2007, EIX is updating total earnings guidance to a range of $3.05 - $3.45 per share. Third Quarter 2006 Financial Highlights: Earnings per common share – $1.38 Net Income – $458 million Revenue – $3.8 billion Assets – $36.3 billion Equity – $7.5 billion THIRD-QUARTER EARNINGS SUMMARY “During the quarter, we continued to take large steps to meet the future energy needs of our utility customers and to contract the forward generation of our EMG competitive generation power plants,” commented John E. Bryson, chairman and CEO, Edison International. “Southern California Edison began work on up to 225 megawatts of peaker projects to be operational by next summer and Edison Mission Group substantially increased forward power sales through 2009.” THIRD-QUARTER EARNINGS DETAIL Earnings (Loss) from Continuing Operations SCE’s earnings from continuing operations were $263 million in the third quarter of 2006, compared to $280 million in the third quarter of 2005. SCE’s 2006 third-quarter results include a $24 million, or 7-cents-per-share, benefit from a generator settlement. Third quarter 2005 earnings include a positive item of $61 million, or 19 cents per share, related to an IRS tax settlement. Excluding these non-core items, SCE’s third-quarter 2006 core earnings were $239 million, up $20 million over the same period last year. This increase reflects the impact of higher net revenue at SCE associated with the 2006 General Rate Case (GRC) and earnings from the Mountainview plant, offset by higher income tax expense. EMG’s third-quarter earnings from continuing operations in 2006 were $204 million compared to $159 million in 2005. Mission Energy Holding Company (MEHC), a subsidiary of EMG, had earnings of $155 million in the third quarter of 2005 that included an after-tax impairment charge of $34 million, or 10 cents per share, related to the March Point project. Excluding non-core items, MEHC’s third quarter core earnings in 2006 were $180 million, compared to $189 million in the third quarter of 2005. The decrease is primarily the result of lower income from energy trading, and lower project income primarily due to the Big Four and Doga. The decrease in MEHC’s core earnings is partially offset by favorable quarter-over-quarter results at Homer City from a SFAS No. 133 net impact and lower net corporate interest expense. Earnings in the third quarter of 2006 for Edison Capital, also part of EMG, were $24 million, an increase of $20 million over the third quarter of 2005. This increase is primarily due to Edison Capital's share of gains from its investment in the Emerging Europe Infrastructure Fund. Earnings (Loss) from Discontinued Operations Edison International’s loss from discontinued operations was $2 million in the third quarter of 2006 compared to earnings of $27 million in the same period last year. The 2005 earnings primarily reflect positive tax adjustments resulting from the sale of international projects. Quarter Ended September 30, Earnings (Loss) Per Common Share (Unaudited) 2006 2005 Change Southern California Edison Company $0.81 $0.86 $(0.05) Edison Mission Group Mission Energy Holding Company 0.55 0.48 0.07 Edison Capital 0.07 0.02 0.05 Edison Mission Group Total 0.62 0.50 0.12 EIX (Parent) and Other (0.04) (0.03) (0.01) EIX Consol. Earnings from Continuing Operations 1.39 1.33 0.06 Earnings (Loss) from Discontinued Operations (0.01) 0.08 (0.09) Total EIX Consolidated Earnings $1.38 $1.41 $(0.03) Quarter Ended September 30, Earnings (Loss) (in millions) (Unaudited) 2006 2005 Change Southern California Edison Company $263 $280 $(17) Edison Mission Group Mission Energy Holding Company 180 155 25 Edison Capital 24 4 20 Edison Mission Group Total 204 159 45 EIX (Parent) and Other (7) (4) (3) EIX Consol. Earnings from Continuing Operations 460 435 25 Earnings (Loss) from Discontinued Operations (2) 27 (29) Total EIX Consolidated Earnings $458 $462 $(4) YEAR-TO-DATE EARNINGS SUMMARY Edison International recorded consolidated earnings per share of $2.71 for the nine-month period ending September 30, 2006, compared to $2.64 for the same period last year. Excluding earnings from discontinued operations and other non-core items, Edison International’s core earnings for the nine-month period were $2.43 per share in 2006, compared to $2.42 per share in the same period in 2005. YEAR-TO-DATE EARNINGS DETAIL Earnings (Loss) from Continuing Operations SCE’s earnings from continuing operations for the nine-month period ending September 30, 2006, were $618 million, an increase of $46 million compared to the same period last year. SCE’s results include several non-core items: an $81 million benefit from the resolution of an outstanding state income tax issue in 2006, a $24 million generator settlement in 2006 and a $61 million benefit from an IRS tax settlement and a $4 million generator refund incentive in 2005. Excluding these non-core items, SCE’s year-to-date core earnings in 2006 were $513 million, up $6 million from the same period last year. Higher net revenue authorized in the 2006 GRC decision, along with earnings from SCE’s Mountainview project were partially offset by higher income tax expense. EMG’s earnings from continuing operations for the first nine months of 2006 were $221 million, down $40 million from the same period last year. MEHC’s year-to-date earnings include several non-core items: an after-tax charge of $88 million, or 27 cents per share, reflecting the early extinguishment of debt related to Edison Mission Energy’s debt refinancing in 2006, and the March Point plant impairment of $34 million and a charge of $15 million also related to extinguishment of debt in 2005. Excluding these non-core items, MEHC’s year-to-date 2006 core earnings were $265 million compared to $233 million in the same period last year. This increase primarily reflects lower net interest expense, higher wholesale energy margins mainly driven by higher prices at the Illinois Plants, partially offset by tax benefits recognized in 2005 and lower trading and project income primarily due to the Big Four and Doga. Edison Capital’s earnings for the nine months ended September 30, 2006, were $44 million, down $33 million from the same period last year reflecting the impact of higher gains in 2005 from its Emerging Europe Infrastructure Fund investment partially offset by lower net corporate interest expense in 2006. Earnings from Discontinued Operations Earnings from discontinued operations for the nine-month period ending September 30, 2006, were $75 million resulting primarily from distributions from MEHC’s Lakeland project. Earnings from discontinued operations for the nine-month period ending September 30, 2005, were $55 million, including positive tax adjustments of $28 million related to the international sales and distributions from the Lakeland project of $24 million. Year-to-Date September 30, Earnings (Loss) Per Common Share (Unaudited) 2006 2005 Change Southern California Edison Company $1.90 $1.75 $0.15 Edison Mission Group Mission Energy Holding Company 0.54 0.57 (0.03) Edison Capital 0.14 0.23 (0.09) Edison Mission Group Total 0.68 0.80 (0.12) EIX (Parent) and Other (0.10) (0.08) (0.02) EIX Consol. Earnings from Continuing Operations 2.48 2.47 0.01 Earnings from Discontinued Operations 0.23 0.17 0.06 Total EIX Consolidated Earnings $2.71 $2.64 $0.07 Year-to-Date September 30, Earnings (Loss) (in millions) (Unaudited) 2006 2005 Change Southern California Edison Company $618 $572 $46 Edison Mission Group Mission Energy Holding Company 177 184 (7) Edison Capital 44 77 (33) Edison Mission Group Total 221 261 (40) EIX (Parent) and Other (22) (24) 2 EIX Consol. Earnings from Continuing Operations 817 809 8 Earnings from Discontinued Operations 75 55 20 Cumulative Effect of Change in Accounting Principle 1 -- 1 Total EIX Consolidated Earnings $893 $864 $29 Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States of America and represent the company's earnings as reported to the Securities and Exchange Commission. Edison International's management uses core earnings, which exclude earnings from discontinued operations and other non-core items, internally for financial planning and for analysis of performance. Edison International also uses core earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings results and outlook as it allows them to more accurately compare the company’s ongoing performance across periods. Reminder: Edison International Will Hold a Conference Call Today Today, Edison International will hold a conference call to discuss its third-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 11000. Chart 1, 2, 3, 4 and 5 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, output, and availability and cost of spare parts and repairs; 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; the outcome of disputes with the Internal Revenue Service (IRS) and other tax authorities regarding tax positions taken by Edison International; supply and demand for electric capacity and energy, and the resulting prices and dispatch volumes, in the wholesale markets to which EMG’s 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 risk of counter-party default in hedging transactions or fuel contracts; 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 EMG 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 more than $36 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.