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Leading the Way in ElectricitySM 2009 ANNUAL REPORT EDISON INTERNATIONAL ANNUAL REPORT SHAREHOLDER INFORMATION Leading the Way in Electricity SM Annual Meeting Transfer Agent and Registrar Inquiries may also be directed to: The annual meeting of shareholders Wells Fargo Bank, N.A., which maintains Wells Fargo Bank, N.A. will be held on Thursday, April 22, 2010, shareholder records, is the transfer agent Shareowner Services Department at 9:00 a.m., Pacific Time, at the Hilton and registrar for Edison International’s 161 North Concord Exchange Street Los Angeles San Gabriel Hotel, common stock and Southern California South St. Paul, MN 55075-1139 225 West Valley Boulevard, San Gabriel, Edison Company’s preferred and OUR VALUES Fax: California 91776. preference stock. Shareholders may (651) 450-4033 call Wells Fargo Shareowner Services, Integrity Corporate Governance Practices (800) 347-8625, between 7 a.m. and Wells Fargo Shareowner ServicesSM A description of Edison International’s 7 p.m. (Central Time), Monday through www.wellsfargo.com/ Excellence corporate governance practices is Friday, to speak with a representative shareownerservices available on our Web site at (or to use the interactive voice response Respect www.edisoninvestor.com. Web Address unit 24 hours a day, seven days a week) The Edison International Board www.edisoninvestor.com Continuous Improvement regarding: Nominating/ Corporate Governance Online account information: stock transfer and name-change Teamwork Committee periodically reviews the www.shareowneronline.com Company’s corporate governance requirements; practices and makes recommenda- address changes, including dividend Dividend Reinvestment and OUR SHARED ENTERPRISE tions to the Company’s Board that payment addresses; Direct Stock Purchase Plan the practices be updated from time electronic deposit of dividends; A prospectus and enrollment forms for Together we provide an indispensable to time. taxpayer identification number Edison International’s common stock service that powers society. Stock Listing and submissions or changes; Dividend Reinvestment and Direct Trading Information duplicate 1099 and W-9 forms; Stock Purchase Plan are available from We are a single enterprise that is stronger Common Stock Wells Fargo Shareowner Services upon notices of, and replacement The New York Stock Exchange uses the request. or destroyed stock certificates and than the sum of its parts. ticker symbol EIX; daily newspapers list dividend checks; the stock as EdisonInt. Edison International’s Dividend OUR OPERATING PRIORITIES Reinvestment and Direct Stock We operate safely Purchase Plan, including enroll- ments, purchases, withdrawals, We meet customer needs terminations, transfers, sales, duplicate statements and direct We value diversity debit of optional cash for dividend reinvestment; and We build productive partnerships requests for access to online account information. We protect the environment We learn from experience and improve We grow the value of our business EDISON INTERNATIONAL 2009 ANNUAL REPORT Leading the Way in Electricity SM LETTER TO SHAREHOLDERS OUR VALUES The electric power business has the Integrity potential to change more in the next 10 years Excellence than it did in the last 100. Respect Continuous Improvement Our industry is in a period of significant shifts in Edison International enjoys the additional advantage public policy toward heightened environmental of being at the forefront of many of the changes Teamwork protection and energy security. Making many of taking place in our industry. We are advancing the new policy directions possible, and accelerating several smart grid initiatives including investments OUR SHARED ENTERPRISE their adoption, are important advances in environ- in new digital monitoring and control devices, Together we provide an indispensable mental and “smart grid”technologies. As a result, energy storage, and smart meters. We have all major elements of the business – generation, installed first-of-its-kind mercury control technology service that powers society. energy delivery and customer usage – are in at our coal-fired generating plants and are testing We are a single enterprise that is stronger transition at the same time. innovative solutions to reduce other emissions. We lead our industry in the use and development The potential for transformative change creates than the sum of its parts. of renewable energy, energy efficiency programs, threats and opportunities for incumbents in our and electric transportation. OUR OPERATING PRIORITIES industry. Edison International is well positioned to navigate the uncertainties ahead and contribute A good starting position is not enough. Our success We operate safely significantly to the development of smarter, cleaner will be determined more by our ability to grow, We meet customer needs electric systems to the benefit of our customers, adapt, and consistently deliver results. In last year’s our shareholders and the communities we serve. annual report, I wrote that we are committed to We value diversity three fundamentals to build long-term value for The unpredictability inherent in large-scale change We build productive partnerships our shareholders: superior execution, financial underscores the value of Edison International’s discipline and innovative solutions. As the pace of We protect the environment dual platform of regulated and competitive change accelerates, adhering to these fundamentals businesses. The strategic flexibility of our diverse We learn from experience and improve becomes even more important as we work to meet platform, enhanced by our broad multi-state reach, our objectives for 2010 and the years ahead. We grow the value of our business positions us to participate in business opportunities across the entire electric power value chain, while SOLID 2009 RESULTS diversifying business risk. Financial markets declined sharply in the first two months of 2009, with the S&P 500, the Philadelphia Utilities Index, and Edison International stock all 1 EDISON INTERNATIONAL 2009 ANNUAL REPORT EDISON INTERNATIONAL 2009 ANNUAL REPORT dropping approximately 25 percent by early subsidiary. The settlement and proceeds from Edison SmartConnect™ electricity meters. More nitrogen oxide emissions. As a result, we have March before the economy started to stabilize associated lease terminations will result in about than 5 million customer accounts are scheduled identified, and received our first permit for, a and stock markets began to turn around. Reflecting $400 million of positive cash flow over time. More to have new meters by the end of 2012. We put cost-effective technology – Selective Non-Catalytic investor preference for growth stocks over than 100 issues were addressed, most of which into service the first 83 miles of our Tehachapi Reduction (SNCR) systems – for meeting new defensive ones in a recovering economy, the S&P affected our regulated utility Southern California Renewable Transmission Project, and received emission limits that take effect in 2012. 500 gained 23 percent by year-end, while the Edison (SCE). This puts a significant risk behind us CPUC approval for the final 173 miles. We invested Maintained liquidity and financial discipline. Philadelphia Utilities Index rose only 5 percent. and provides additional capital resources for approximately $1.7 billion in the distribution Lower power prices and the slow economy made Shares of Edison International ended the year up infrastructure investment at SCE. system, advanced our innovative solar rooftop liquidity management a year-long priority at EMG. 8 percent. Including dividends, which we increased initiative, and by February 2010 completed the Strengthened regulatory foundation for capital We engaged in several cost-cutting initiatives, in 2009 for the sixth year in a row, our shareholders replacement of steam generators in Unit 2 at San investments. Several regulatory decisions in 2009 including reductions in overhead and staffing, earned a total return of 12.5 percent in 2009. Onofre Nuclear Generating Station. support SCE’s substantial continuing investments and careful management of operations and Earnings per share were $2.59, including a charge in the electricity grid to serve customers, maintain Expanded our portfolio of wind generation. maintenance at our coal-fired plants. In a sign that of $0.78 per share associated with an important reliability and enhance access to renewable Edison Mission Group (EMG) ended 2009 with financial markets have now largely recovered, tax settlement and related transactions. Core resources. Most significantly, the California Public 26 wind energy projects in operation or under we completed a $207 million project financing for earnings, a non-GAAP measure that excludes Utilities Commission (CPUC) approved SCE’s construction in 10 states, with a combined gener- three of our operating wind projects. We have discontinued operations and certain nonrecurring general rate case for the years 2009–2011, which ating capacity of 1,575 megawatts. Highlights identified approved or advanced-stage develop- items, were $3.25 per share, and came in above covers approximately 60 percent of SCE’s capital included the dedication of our newest operating ment projects as possible placements for most of the high end of the guidance range we established budget for the period. The CPUC also provided project, the 100-megawatt High Lonesome Mesa our existing wind turbine purchase commitments.