Edison International Reports Fourth Quarter and Full-Year 2017 Results

ROSEMEAD, Calif.–(BUSINESS WIRE)–Edison International (NYSE: EIX) today reported fourth quarter 2017 net
loss of $545 million, or $1.67 loss per share, compared to net income of
$329 million, or $1.01 per share, in the fourth quarter of 2016. As
adjusted, fourth quarter 2017 core earnings were $357 million, or $1.10
per share, compared to core earnings of $316 million, or $0.97 per
share, in the fourth quarter 2016.

Southern California Edison's (SCE) fourth quarter 2017 earnings
decreased by $437 million, or $1.34 per share, from the fourth quarter
2016, consisting of $44 million, or $0.14 per share, of higher core
earnings, offset by $481 million, or $1.48 per share, of higher non-core
losses. The $44 million increase in core earnings was due to higher
revenue from the escalation mechanism set forth in the 2015 General Rate
Case (GRC) decision. Fourth quarter 2017 SCE core earnings excluded
non-core losses of $481 million, or $1.48 per share, which is primarily
related to the $448 million, or $1.38 per share, after-tax impairment
and other charges related to the Revised San Onofre Settlement
Agreement. There were no SCE non-core items in the fourth quarter 2016
results.

Edison International Parent and Other’s fourth quarter 2017 losses from
continuing operations increased by $424 million, or $1.30 per share,
compared to fourth quarter 2016, consisting of $3 million, or $0.01 per
share, of higher core losses and $421 million, or $1.29 per share, of
higher non-core losses. The increase in core losses was primarily
related to lower tax benefits related to stock based compensation,
partially offset by higher operating revenue. Edison International
Parent and Other's fourth quarter 2017 core losses excluded non-core
losses of $421 million, or $1.29 per share, primarily related to a $433
million, or $1.33 per share, write-down from the re-measurement of
deferred taxes as a result of the Tax Cuts and Jobs Act. There were no
Edison International Parent and Other non-core items in the fourth
quarter 2016 results.

Additionally, Edison International recorded $13 million of income, or
$0.04 per share, from discontinued operations for the fourth quarter
2016.

“Edison International delivered excellent fourth quarter and full-year
results which were largely driven by strong operating performance and
tax benefits at SCE and better-than-expected cost performance at the
parent company,” said Pedro Pizarro, Edison International president and
chief executive officer. “However, this year also had its challenges
with the effects of wildfires and concerns over the associated legal and
regulatory framework. In 2018, we will focus on addressing the risks and
issues surrounding wildfires and other climate change impacts. Our
strategy is rooted in enabling California’s ambitious environmental
policies, which in turn will require strong, healthy utilities.”

Full-Year Earnings

For 2017, Edison International reported net income of $565 million, or
$1.73 per share, compared to $1.3 billion, or $4.02 per share, during
2016. As adjusted, Edison International’s core earnings were $1.5
billion, or $4.50 per share, compared to $1.3 billion, or $3.97 per
share, in 2016.

SCE’s 2017 net income decreased $364 million, or $1.12 per share, from
2016, consisting of $481 million, or $1.48 per share, of higher non-core
losses, partially offset by $117 million, or $0.36 per share, of higher
core earnings. The increase in core earnings was due to higher revenue
from the escalation mechanism set forth in the 2015 GRC decision and
lower operations and maintenance expenses, partially offset by higher
net financing costs. SCE 2017 core earnings excluded non-core losses of
$481 million, or $1.48 per share, which is primarily related to the $448
million, or $1.38 per share, after-tax impairment and other charges
related to the Revised San Onofre Settlement Agreement. There were no
SCE non-core items in 2016.

Edison International Parent and Other’s losses from continuing
operations for 2017 increased by $370 million, or $1.14 per share,
compared to 2016, consisting of $55 million, or $0.17 per share, of
lower core losses, offset by $425 million, or $1.31 per share, of higher
non-core losses. The decrease in core losses in 2017 was primarily
related to higher Edison Energy Group operating revenue and higher
income tax benefits resulting from: stock option exercises, net
operating loss carrybacks from the filing of the 2016 tax returns in
2017, and the 2017 settlement of federal income tax audits for 2007 –
2012. Edison International Parent and Other's 2017 core losses exclude
non-core losses of $420 million, or $1.29 per share, primarily related
to a $433 million, or $1.33 per share, write-down from the
re-measurement of deferred taxes as a result of the Tax Cuts and Jobs
Act. Non-core items in 2017 also included income of $13 million, or
$0.04 per share, compared to $5 million, or $0.02 per share, in 2016
related to losses (net of distributions) allocated to tax equity
investors under the hypothetical liquidation at book value (HLBV)
accounting method.

Additionally, Edison International recorded $12 million of income, or
$0.03 per share, from discontinued operations for 2016.

Edison International uses core earnings, which is a non-GAAP financial
measure that adjusts for significant discrete items that management does
not consider representative of ongoing earnings. Edison International
management believes that core earnings provide more meaningful
comparisons of performance from period to period. Please see the
attached tables for a reconciliation of core earnings to basic GAAP
earnings.

2018 Earnings Guidance

Edison International will provide 2018 earnings guidance after a final
decision has been issued by the CPUC on the Southern California Edison
2018 GRC. This is consistent with the company's practice of not
providing earnings guidance prior to a decision on its GRC. See the
presentation accompanying the company’s conference call for further
information.

Edison International and Southern California
Edison Declare Dividends

Today, the Board of Directors of Edison International declared a
quarterly common stock dividend of $0.605 per share, payable on April
30, 2018, to shareholders of record on March 29, 2018. Additionally, the
Board of Directors of Southern California Edison Company today declared
dividends on preference and preferred stock. For more information,
please see the related press
release at www.edisoninvestor.com.

A Note on 2016 Results

In March 2016, the Financial Accounting Standards Board issued a new
accounting standard for employee share-based payments. Edison
International adopted this accounting standard during the fourth quarter
of 2016, effective January 1, 2016. Under this new standard, share-based
payments may create a permanent difference between the amount of
compensation expense recognized for book and tax purposes. The tax
impact of this permanent difference is recognized in earnings in the
period it is created. 2016 earnings were updated to reflect the
implementation of the accounting standard for share-based payments
effective January 1, 2016. See the Fourth Quarter and Full-Year
Reconciliation tables below and the presentation accompanying the
company’s conference call for further information.

About Edison International

Edison International (NYSE:EIX), through its subsidiaries, is a
generator and distributor of electric power, as well as a provider of
energy services and technologies, 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. Edison International is also the parent
company of Edison Energy Group, a portfolio of competitive businesses
that provide commercial and industrial customers with energy management
and procurement services and distributed solar generation. Edison Energy
Group companies are independent from Southern California Edison.

Appendix

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with
generally accepted accounting principles used in the United States and
represent the company’s earnings as reported to the Securities and
Exchange Commission. Our management uses core earnings and core earnings
per share (EPS) internally for financial planning and for analysis of
performance of Edison International and Southern California Edison. We
also use core earnings and core EPS when communicating with analysts and
investors regarding our earnings results to facilitate comparisons of
the Company’s performance from period to period. Financial measures
referred to as net income, basic EPS, core earnings, or core EPS also
apply to the description of earnings or earnings per share.

Core earnings and core EPS are non-GAAP financial measures and may not
be comparable to those of other companies. Core earnings and core EPS
are defined as basic earnings and basic EPS excluding income or loss
from discontinued operations and income or loss from significant
discrete items that management does not consider representative of
ongoing earnings. Basic earnings and losses refer to net income or
losses attributable to Edison International shareholders. Core earnings
are reconciled to basic earnings in the attached tables. The impact of
participating securities (vested awards that earn dividend equivalents
that may participate in undistributed earnings with common stock) for
the principal operating subsidiary is not material to the principal
operating subsidiary’s EPS and is therefore reflected in the results of
the Edison International holding company, which is included in Edison
International Parent and Other.

Safe Harbor Statement

Statements contained in this release about future performance,
including, without limitation, operating results, rate base growth,
financial outlook, and other statements that are not purely historical,
are forward-looking statements. These forward-looking statements reflect
our current expectations; however, such statements involve risks and
uncertainties. Actual results could differ materially from current
expectations. Important factors that could cause different results
include, but are not limited to the:

• ability of SCE to recover its costs in a timely manner from its
  customers through regulated rates, including costs related to San
  Onofre, uninsured wildfire-related liabilities, and spending on grid
  modernization;
• ability to obtain sufficient insurance at a reasonable cost, including
  insurance relating to SCE's nuclear facilities and wildfire-related
  exposure, and to recover the costs of such insurance or, in the
  absence of insurance, the ability to recover uninsured losses;
• decisions and other actions by the CPUC, the FERC, the NRC and other
  regulatory authorities, including determinations of authorized rates
  of return or return on equity, the 2018 GRC and the recoverability of
  wildfire-related costs, and delays in regulatory actions;
• risks associated with the decommissioning of San Onofre, including
  those related to public opposition, permitting, governmental
  approvals, on-site storage of spent nuclear fuel, and cost overruns;
• extreme weather-related incidents and other natural disasters,
  including earthquakes and events caused, or exacerbated, by climate
  change, such as wildfires;
• risks associated with higher rates for utility bundled service
  customers because of possible customer bypass or departure due to
  Community Choice Aggregators (CCAs); and
• risks inherent in SCE’s transmission and distribution infrastructure
  investment program, including those related to project site
  identification, public opposition, environmental mitigation,
  construction, permitting, power curtailment costs (payments due under
  power contracts in the event there is insufficient transmission to
  enable acceptance of power delivery), changes in the CAISO’s
  transmission plans, and governmental approvals.

Other important factors are discussed under the headings “Risk Factors”
and “Management’s Discussion and Analysis” in Edison International’s
Form 10-K, and other reports filed with the Securities and Exchange
Commission, which are available on our website: www.edisoninvestor.com.
These filings also provide additional information on historical and
other factual data contained in this news release. Edison International
and SCE also routinely post or provide direct links to presentations,
documents and other information that may be of interest to investors at www.edisoninvestor.com
(Events and Presentations) in order to publicly disseminate such
information.

These forward-looking statements represent our expectations only as of
the date of this news release, and Edison International assumes no duty
to update them to reflect new information, events or circumstances.

Reminder: Edison International Will Hold a
Conference Call Today
When: Thursday, February 22, 2018,
1:30 p.m. (Pacific Time)
Telephone Numbers: 1-888-673-9780 (US) and
1-312-470-0178 (Int'l) – Passcode: Edison
Telephone Replay:
1-888-662-6633 (US) and 1-402-220-6409 (Int’l) – Passcode: 4219
Telephone
replay available through March 8, 2018
Webcast: www.edisoninvestor.com

Contacts

Edison International
Investor relations contact:
Sam Ramraj,
626-302-2540
or
Media relations contact:
Charles Coleman,
626-302-7982

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