edison international sustainability …...in this report 3 covid-19 response see how we’re...
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SUSTAINABILITYREPORT 2019
EDISON INTERNATIONAL
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IN THIS REPORT3 COVID-19 ResponseSee how we’re responding to the COVID-19 pandemic.
Introduction
7 CEO Letter
8 Company Overview
10 Sustainability Overview
12 Our Sustainability Goals
16 2019 Year in Review
Accelerating a Clean Energy Future
18 Our Vision
21 Clean Energy
23 EfficientElectrification
27 Grid of the Future
29 CustomerChoice
Protecting the Environment
33 Environmental Stewardship
35 Our Operations
39 Our Transportation Fleet
40OurFacilities
41 Our Supply Chain
Serving Our Customers
43 Public Safety
46 Reliability
48 Affordability
49 Customer Experience
Supporting Our Communities
51 CommunityResilience
52 Stakeholder Engagement
53 EconomicDevelopment
54 SupplierDiversity
55 Environmentaland Social Justice
56 Community Investments
Dedicated to Each Other
59 EmployeeandContractor Safety
61 Diversityand Inclusion
64 Employee Engagement
Governance With Integrity
68 CorporateGovernance
69 CyberandPhysical Security
71 Ethicsand Compliance
72 Risk Management
73 Political Contributions
Appendix
75 Forward-Looking Statements
76 Non-GAAP Reconciliation
78 Sustainability Scorecard
82 SASB Index
87 TCFD Index
90 GRI Index
109SDGIndex
SCE’sMiraLomaBatteryStorageProjectinOntario,Calif.Cover image:AntelopeValley,Calif.,poppyfieldsinApril2019
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 2
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
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Ourprincipalsubsidiary,SouthernCaliforniaEdison(SCE),activelypreparesforeventsofallkinds,includingpandemics,andhashadaPandemicResponsePlaninplacesince2007.InearlyMarch2020,SCElaunchedtheplanbyactivatingadedicatedincidentmanagementteamtaskedwithadaptingandrefiningtheplantothespecificcircumstancesoftheescalatingCOVID-19 crisis.
When the World Health Organization (WHO)officiallydeclaredCOVID-19apandemiconMarch11,SCEwasreadyandtookswiftactiontosupportourcustomersandcommunitieswhileensuringthesafetyofourworkforce.
Both the federal government’s DepartmentofHomelandSecurityandthestateofCaliforniarecognizeelectricserviceaspartofthecriticalinfrastructureneededtoeffectivelyrespondtotheCOVID-19pandemic.
Ourcompetitivebusiness,EdisonEnergy,1whichoperatesglobally,activatedacross-functionalcontingencyplanningcommitteeandbusinessresiliencyplantokeepthecompanyrunningsmoothly.
COVID-19 RESPONSEOur 2019 Sustainability Report is being produced in the shadow of the COVID-19 pandemic. Our company and all our stakeholders have been impacted during this unprecedented time, and our top priority is continuing to provide safe and reliable service when customers need us most.
EdisonInternational’sBoardofDirectorsisactivelyengagedinoverseeingtheCompany’sCOVID-19response,focusingonhealthandsafety,humancapitalmanagement,customeraffordability,supplychainneeds,andotherbusinessandfinancialimpactsofthepandemic.
CARING FOR OUR CUSTOMERSSCE’s top priority is the health and safety ofitsemployeesandthepublicwhilecontinuingtoprovidesafeandreliableservicetoallcustomers.Thecompanyisfocusedonensuringfrontlinecriticalinfrastructuresectors,likehospitals,medicalclinics,researchfacilities,publicsafetyagencies,waterdistrictsandtelecommunicationsnetworks,havetheelectricitytheyneedtofightCOVID-19.
EdisonEnergyisfocusedoncontinuingtoprovideexceptionalservicetoitscustomers,whilehelpingallitsstakeholders navigate the evolving energylandscape.
Bill ReliefSCEoffersprogramstosupportcustomersexperiencingeconomichardship.SCEwasoneofthefirstutilitiesinthecountrytotemporarily suspend servicedisconnectionsfornon-payment.
Additionally,SCEiswaivinglatefeesanddepositrequirementsandofferingpaymentassistanceoptions,includingpaymentextensionsandarrangements.Forresidentialcustomers,SCEispromoting rate options and an analyzer tooltohelpcustomersswitchtoratesthatmightbebetterwithnewusagepatterns.
Forthemostvulnerablecustomers,SCEisfocusedonprovidingrelieftheyneedasquicklyastheyneed.SCEiswaivingincomeverificationsfora12-monthperiodforcustomersenrolledin,orwho
arenewlyqualifiedfor,income-qualifiedcustomerprograms–CaliforniaAlternateRates for Energy (CARE) and Family ElectricRateAssistance(FERA)–aswellasensuringawarenessofassistanceoptions through targeted marketing withcommunitypartners.Wehavealsoincreasedtheamountofone-time bill relief provided by the Energy AssistanceFund(EAF)by50%.EAFisadministered by United Way and funded throughshareholder,employeeandcustomer donations.
Edison International made in-kind donationsofmorethan30,000N95andP100respiratorstolocalhospitalsineachofthelargestcountiesinSCE’sservicearea,whilealsoensuringwehave enough of these respirators reservedforSCEcrewsasweenterfire season.
EdisonInternational’s$58,000donationtoDirectReliefwillhelpdelivermedicalandemergencysuppliestocommunityclinicsandhealthcentersinSouthernCalifornia. Credit:CourtesyofDirectRelief
1 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutlity,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT 3
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTIONCOVID-19
PROTECTING THE ENVIRONMENT APPENDIX
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
https://newsroom.edison.com/releases/sce-continues-delivery-of-safe-and-reliable-service-during-emergency-restrictionshttps://newsroom.edison.com/releases/sce-continues-delivery-of-safe-and-reliable-service-during-emergency-restrictionshttps://newsroom.edison.com/releases/sce-responds-to-covid-19-emergency-suspends-service-disconnectionshttps://newsroom.edison.com/releases/sce-responds-to-covid-19-emergency-suspends-service-disconnections
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ForthosecustomerswhoregularlyuseaqualifyingmedicaldeviceandareeligibleforSCE’sMedicalBaselinediscount,weare suspending the requirement for a doctor’snotefor12monthsandmovingapplicationsonline.
Focus on Critical WorkInadditiontohelpingcustomerswiththeirbills,SCEhastemporarily postponed non-criticalprojects.Forcriticalprojectsthatrequireatemporarypoweroutage,SCEhas taken additional steps to minimize the durationandimpact,suchasschedulingoutages on weekends or overnight and
increasingthenumberofcrewsonaprojectbyreassigningthemfromnon-criticalwork.
SCEmaintainsCOVID-related,customer-facinginformationonitswebsite and has otherwiseincreasedcommunicationsvialiveoutboundcalls,socialchannelsandemergencyresponseagenciestoensurecustomersareawareofcritical,plannedoutages.Forlongeroutagesthatmaycausefoodspoilage,weareprovidingcustomerscouponsforice.A$50rebatefor portable power stations is also available in SCE’smarketplace.
Advising Our Edison Energy2 CustomersEdisonEnergyisfocusedoncontinuingtoprovideitscustomersexceptionalserviceandcreatedadditionalredundancyinitsoperationtosupportcustomerneeds.EdisonEnergyishelpingcustomersand broader stakeholders navigate COVID-19impactsontheenergylandscape.Throughwebinars,individualconsultationsandotherplatforms,EdisonEnergyisadvisingcustomersandstakeholdersonCOVID-19implicationsrelatedtorenewableprojectdevelopment,energycontractsandspend,occupancyandfacilitiesrequirementchanges,andsustainabilityobjectives.
HELPING OUR COMMUNITIES RESPOND AND RECOVERAsacompanywithmorethan130 yearsofhistory,weknowweareonlyasstrongasthecommunitieswhereweliveandwork.We’recommittedtohelpingallourcommunitiesrespondtoandrecoverfromCOVID-19.InMarch2020,EdisonInternationalannouncedadonationof$1 milliontosupportlocalnonprofitsprovidingcriticalservices,foodandotherCOVID-19relieftovulnerablecommunities.Thisdonationincluded$100,000eachtofivefoodbankssupportingcustomersfacingfood
insecurity,achallengethathasintensifiedwiththepandemic.
Inadditiontothecompany’s$1millioncontribution,ouremployeescollectivelyraisedanddonatedalmost$260,000forCOVID-19relatedcauses.
Beyondprovidingfinancialandin-kinddonationsupporttoourcommunitypartners,wearecommittedtosupportingCalifornia’sroadtorecoveryandbelievecleanenergyisanimportantpartofthat.EdisonInternationalPresidentandCEO,PedroPizarro,servesontheGovernor’sTaskForceonBusinessandJobsRecoveryandSeniorVicePresidentofCorporateAffairs,CarolineChoi,servesontheCityofLongBeachEconomicRecoveryAdvisoryGroup.
Edison International’s charitable causes are funded entirely by Edison International shareholders. SCE customers’ utility bill payments do not fund philanthropic donations.
COVID-19 RESPONSE
EdisonInternationalannounceda$500,000donationtofiveSouthernCaliforniafoodbanks,partofalarger$1 millioncommitmenttovarious nonprofits.
THANKS TO [EDISON INTERNATIONAL’S] GENEROSITY, WE WILL BE ABLE TO CONTINUE THE LIFE-CHANGING WORK THAT WILL BE NEEDED IN THE MONTHS AHEAD…TO PROVIDE FOOD ASSISTANCE AND MORE TO THOSE WHO ARE THE MOST VULNERABLE”Gregory C. Scott, president and CEO of Community Action Partnership of Orange County
2 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutlity,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
Credit: Courtesy of Los Angeles Regional Food Bank
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT 4
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTIONCOVID-19
PROTECTING THE ENVIRONMENT APPENDIX
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
https://newsroom.edison.com/releases/sce-continues-delivery-of-safe-and-reliable-service-during-emergency-restrictionshttps://newsroom.edison.com/releases/sce-continues-delivery-of-safe-and-reliable-service-during-emergency-restrictionshttp://www.sce.com/safety/coronavirushttps://marketplace.sce.com/https://newsroom.edison.com/releases/edison-international-donates-1-million-to-support-those-impacted-by-covid-19
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PARTNERING WITH OUR SUPPLY CHAINOursuppliers,manyofwhomaresmall,diverseandlocalSouthernCalifornia-basedbusinesses,areourpartnersinensuringthatSCEcansafelydelivercleanandreliableservice.Weutilizedlocalbusinessestohelpmeetsomeof our immediate needs with personal protectiveequipmentandothersupplies.Wecontinuetomaintainclosecontactwith our suppliers to identify and address issues.
Toensurethecompanycanmaintainbusinesscontinuityforanextendedandunknownperiod,SCEisevaluating,monitoringandmitigatingsupplychainrisksforbothmaterialsandservices.SCEhas long maintained a robust in-house inventoryofcorebusinesssupplies,suchaspolesandwires.InresponsetoCOVID-19,SCEdevelopedaninventoryofconsumablegoodslikecleaningproducts,papertowels,disposableproductsandsupplies.Expandedriskassessmentsare also underway to understand supply chainresiliencyoverthelongterm.
SCE has not had any material supply chaindisruptionssincethebeginningofthepandemicandanticipateshavingsufficientlocalinventorytomeetbusinessneedsthrough2020.
KEEPING OUR EMPLOYEES SAFE WHILE PROVIDING AN ESSENTIAL SERVICEAstheseriousnessofCOVID-19becameclearer,welookedforwaystominimizeexposureriskandprotectthehealthandsafetyofemployees.SCEtransitioned
more than two-thirds of its employees to remote work before California Governor Newsom’s stay-at-home order andretainedmedicalexpertisetohelpguideCOVID-19-relatedpoliciesandprovideindividualcaseassessmentsforemployees.EdisonEnergy3 transitioned almostitsentireworkforcetoremotework and ensured engineers required onclientsiteshadappropriatepersonalprotectiveequipment.
SCE took additional steps to ensure the safetyofthoseemployeeswhosecriticalworkrequiredthemtostayinthefieldoratEdisonfacilities,includingmorefrequentandenhancedcleaningsatstaffedfacilities.SCEhascollaboratedwithunionpartners,includingIBEWLocal47andUWUALocal246,toadjustworkingconditionsfortheirmembersandthepublic.Linemenareassignedto“pods,”andmovementofpersonnelbetweencrewsisrestricted.Wealsohaveemployeesperformingcriticalworkwho have volunteered to sequester at Edisonfacilities,awayfromtheirfamilies,sotheycanremainhealthyandkeepthosefacilitiesoperational.
SCE adopted guidelines to ensure there isonlyonepersonpervehiclewheneverfeasible.Thisincludesreimbursementforuseofpersonalvehiclesandcarrentals.
Toprotectouremployees,alongwithourcustomersandcommunities,andtoabidebyrequirementsacrossourservicearea,werequireallemployeesperformingworkinthefieldoratanSCEfacilitytouseafacialcoveringconsistent
withthesafetyrequirementsfortheirjob.Someexceptionsexist,includingwhencrewsworkingnearenergizedequipmentneedtotemporarilyremovetheirfacialcoveringsforsafetypurposes.
SCEextendednumerousbenefitstohelpallemployeesduringthischallengingperiod.Someofthesebenefitsincludeadditional paid leave due to illness or tocareforfamilymembers,includingthose who were exposed to the virus orchildrenandtheelderlyaffectedbyschoolandcarecenterclosures,aswellas reimbursement of expenses for
at-homeofficeergonomicequipment.We also expanded the availability of ourtelemedicineserviceprovidertoourrepresentedworkforce.Inaddition,we expanded the use of our employee preventivehealthaccounttoincludereimbursement for in-home gym equipmentpurchasedin2020.
We’re proud of the work the SCE team is doing to keep the lights onandourcustomersconnectedduringtheCOVID-19pandemic.Our#poweringthrutogethercampaignonsocialmediafeaturesemployeestories.
COVID-19 RESPONSE
REPAIR CREWS AND PHYSICAL DISTANCINGDue to the nature of their work, SCE crew members are sometimes unable to maintain physical distancing while making repairs. Crews are working in pods to minimize exposure while maintaining physical distance from others. Just as a family unit, or household, interacts but remains physically distant from the rest of the world, our crews interact similarly.
BEFOREDifferent crews interacted with each other. They would ride together in large vehicles and sometimes work together.
NOWCrews stick to isolated groups. They travel in individual vehicles and work only within their groups.
3 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutlity,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT 5
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTIONCOVID-19
PROTECTING THE ENVIRONMENT APPENDIX
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
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ABOUT THIS REPORTEdisonInternationalcontinuestoseekwaystoimprovedisclosuresthatare meaningful to our business and stakeholders.ThisreportwaspreparedinaccordancewiththeGlobal Reporting Initiative (GRI) StandardsCoreoption,includingreferencingtheGRIElectricUtilitySectorSupplementforindustry-specificinformation,andincludesenhancedGRIdisclosurescomparedtopreviousyears.
Forthefirsttime,thisreportalsoincludesdisclosuresreferencingtheSustainability AccountingStandardsBoard(SASB)ElectricUtilities & Power Generators Standards and the TaskForceonClimate-relatedFinancialDisclosures(TCFD).WealsoreportforthefirsttimeonourcontributionstotheUnitedNationsSustainableDevelopmentGoals(SDGs).
Theinclusionofinformationinthisreport,includingaspartoftheaforementioneddisclosures,shouldnotbeconstruedasacharacterizationregardingthematerialityorfinancialimpactofthatinformation.For additional information regarding EdisonInternational,pleaseseeourfilings(includingourForm10-KandForms10-Q)withtheSecuritiesandExchangeCommission(SEC).OurSECfilingsaswellasdirectlinkstocertainpresentations,documentsandotherinformationthat
may be of interest to investors are available at www.edisoninvestor.com.
Edison International has not sought externalassuranceofthedatainthisreport.Someofthedataprovidedisestimated,asnoted.
This report is reviewed by the Edison InternationalManaging Committee1 and theNominating/CorporateGovernanceCommittee of the Edison International BoardofDirectors.
We strive to respond to all stakeholder inquiries and to be transparent about our sustainabilityperformance.Toshareyourthoughtsandsuggestions,pleasecontactus at [email protected].
OTHER DISCLOSURES Wediscloseadditionalenvironmental,socialandgovernance(ESG)informationon a voluntary basis through a template developedbytheEdisonElectricInstitute(EEI),theinvestor-ownedelectricutilityindustry’stradeassociation,inpartnership with investors and member companies.Throughthisdisclosure,we,andindustrypeers,provideinvestorsandotherstakeholdergroupswithrelevant,consistentandeasy-to-accessESGdata.OurEEIdisclosureispubliclyavailableonour website.2
Welcome to our 2019 sustainability report. This report includes updates on our sustainability strategy, performance and related metrics, covering the period January 1, 2019, to December 31, 2019, with additional information on activities, where appropriate, up to May 2020. It covers the areas most important to our long-term success: leading the transformation of the electric power industry and operating with excellence by focusing on customers, communities and employees, with safety as our top value.
1 TheEdisonInternationalManagingCommitteeconsistsofthemostseniorEdisonInternationalandSCEexecutiveofficers.EdisonInternationalmembersincludethePresidentandCEO,ExecutiveVicePresident(EVP)andChiefFinancialOfficer,EVPandGeneralCounsel,andtheSeniorVicePresident(SVP)ofStrategyandCorporateDevelopment.SCEmembersincludethePresidentandCEOandtheEVPofOperations.JointEdisonInternationalandSCEmembersincludetheSVPofCorporateAffairsandSVPofHumanResources.
2 DataincludedintheEEIdisclosuremaydifferfromdataincludedhereininordertoconformtothereportingrequirementsoftheEEIdisclosure,whichisindustry-standardized.
INTRODUCTION
Learn more about our approach to sustainability atwww.edison.com/sustainability.
7 CEO Letter
8 Company Overview
10 Sustainability Overview
12 Our Sustainability Goals
16 2019 Year in Review
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 6
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19 INTRODUCTION
https://www.globalreporting.org/Pages/default.aspxhttps://www.globalreporting.org/Pages/default.aspxhttps://www.sasb.org/https://www.sasb.org/https://www.fsb-tcfd.orghttps://www.fsb-tcfd.orghttps://sustainabledevelopment.un.org/sdgshttps://sustainabledevelopment.un.org/sdgshttp://www.edisoninvestor.commailto:sustainability%40edisonintl.com?subject=https://www.edison.com/content/Edison/en/home/investors/sustainability.htmlhttp://www.edison.com/sustainability
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Wecurrentlyfaceanotherglobal challenge–theCOVID-19pandemic.Ourheartsgooutespeciallytofirstresponders,customersandEdisoncolleagueswhohavebecomeillorarecaringforsomeonewhohas.Weopenourreport with a section on what we’ve done toensurecustomerscontinuetohaveaccesstosafe,reliableservice.
WhiletheinitialresponsetoCOVID-19hasbeenall-consuming,we’repreparingforachangedreality.Transitioningtoacleanenergyeconomy,withitsgoodjobsandmoreaffordableservices,willplayacriticalroleinajustandequitableeconomicrecovery.InCalifornia,I’mhonoredtoberepresentingtheelectricutilityperspectiveonGovernorNewsom’sTaskForceonBusinessandJobsRecovery.
Ourlong-termgoalofacleanenergyeconomyismoreimportantthanever.InNovember2019,ourprincipalsubsidiary,SouthernCaliforniaEdison(SCE),releasedPathway2045,ablueprintforhowCaliforniacanaffordablycombatclimatechange.InDecember,Iparticipatedinthe2019UnitedNations(U.N.)ClimateChangeConference(COP25)toshareSCE’s blueprint and also signed the Joint Labor Union and CEO Statement on the Paris Agreement.
CHIEF EXECUTIVE OFFICER’S LETTEROn behalf of the 13,000 women and men of Edison International, I’m pleased to share our company’s 2019 sustainability performance. Sustainability is central to our vision to lead the transformation of the electric power industry, and we remain committed to doing our part to respond to the global climate crisis.
We’redeepeningourcommitmentaswebegintrackingprogressonlong-term,measurable goalsrelatedtoclean energy,transportationelectrification,diversityandinclusion,andsafety.Among these are delivering100%carbon-freepowertoSCEcustomersby2045inaccordancewithCalifornialaw,expandingelectricvehicleinfrastructure throughoutSCE’sservicearea,andelectrifyingSCE’sfleet,including100% ofSCE’slight-dutyvehiclesby2030. We’ve also begun mapping our contributions to the U.N.SustainableDevelopmentGoalsandaffirmedourcommitmenttoourstakeholdersasasignatory to the Business Roundtable Statement on the Purpose of a Corporation.
We’re proud of our 2019 progress: SCE delivered an estimated 48%carbon-freeelectricitytocustomers,upfrom46%in2018;successfullylaunchedthelargest truckandtransitcharginginitiativeinthe nationtohelpcustomerstransitiontoelectricfleets;andwontheU.S.DepartmentofEnergy’sfirstElectricityIndustryTechnologyandPracticesInnovation Challenge Tier One gold prizeforgridinnovation.InMay2020,
SCEalsoannouncedoneofthelargestenergystorageprocurementsinthenation(770MW).
Ourcompetitivebusiness,EdisonEnergy,1 helpedcustomers–including12oftheFortune50–source,evaluateandexecuterenewable energy agreements totaling 1.85GWin2019aloneandfacilitatedthelargestcleanenergyprocurementinautomotive history.
Asweworktomitigateclimatechange,we’realsofocusedonclimateadaptation.SCE’snear-termfocusisreducingwildfirerisk.In2019,SCEsuccessfullyexecuteditsWildfireMitigationPlanandcontinuestotakeaggressiveactiontoreducewildfirerisk,goingwellbeyondstandardindustrypracticesandwithpublicsafetyatoppriority.
Powering our work is a talented Edison team.Fosteringadiverseandinclusiveworkplaceisapriority.Since2016, we’veincreasedthepercentageofwomen in senior operating roles from 27%to35%,withagoal of gender parity by 2030.Thediversity of our board increasedaswell:sevenofour 11directorsarediverseintermsofgender,race,ethnicityandLGBTQidentification,includingfourwomen.
1 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
Safetyisourfoundation.We’recommittedto a multi-year journeytoaculturewhereouremployeeschoosesafetyforthemselves,lovedones,colleagues,andourcollectivemissioneveryday.
This report is part of an ongoing dialogue withourstakeholders,andweinviteyou to share your thoughts with us at [email protected].
PEDRO J. PIZARROPresident and Chief Executive Officer
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 7
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
https://www.edison.com/home/our-perspective/pathway-2045.htmlhttps://www.unitedforparisagreement.com/https://www.unitedforparisagreement.com/https://www.unitedforparisagreement.com/https://www.un.org/sustainabledevelopment/sustainable-development-goals/https://www.un.org/sustainabledevelopment/sustainable-development-goals/https://opportunity.businessroundtable.org/ourcommitment/https://opportunity.businessroundtable.org/ourcommitment/https://opportunity.businessroundtable.org/ourcommitment/
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EdisonInternationalisoneofthenation’slargestelectricutilityholdingcompanies,providingcleanandreliableenergyandenergyservicesthroughitsindependentcompanies.HeadquarteredinRosemead,California,EdisonInternationalistheparentcompanyofSouthernCaliforniaEdison(SCE),autilitythatdeliverselectricity
COMPANY OVERVIEWAt Edison International (NYSE:EIX), our vision is to lead the transformation of the electric power industry toward a clean energy future.
12,937 employees across Edison International and consolidated subsidiaries
118,000miles of SCE distribution and transmission lines
12 Fortune 50 companies served by Edison Energy1
$23M in philanthropic contributions
15Mresidents and 5 million customer accounts covered by SCE’s service area
50,000square miles of SCE service area across southern, central and coastal California
1 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
48%of SCE-delivered power estimated from carbon-free resources; no coal in owned generation or contracts for specified resources
of SCE-delivered power from third-party sources>80%
$12.3B revenue for Edison International and consolidated subsidiaries
in capital investments for grid hardening, electrification and transmission
$4.8B
to15millionpeopleacrosssouthern,centralandcoastalCalifornia.EdisonInternationalisalsotheparentcompanyofEdisonEnergy,aglobalenergyadvisorycompanydeliveringcomprehensive,data-drivenenergysolutionstocommercialandindustrialuserstomeettheircost,sustainabilityandriskgoals.
Note:Statisticsareasofyear-end2019
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 8
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
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Throughoutour130+yearhistory,thecharacterofourpeoplehasdefinedourvalues,whichguideourbusinessanddriveoursuccess.
COMPANY OVERVIEW
OUR VALUES
WE LIVE SAFETY
WE CONDUCT OUR BUSINESS WITH INTEGRITY
WE PURSUE EXCELLENCE
WE TREAT EVERYONE WITH RESPECT
WE RECOGNIZE THE STRENGTH OF TEAMWORK
WE STRIVE FOR CONTINUOUS
IMPROVEMENT
Learn more about: Employee and contractor safety pp. 59–60
Public safety and wildfire mitigation pp. 43–45
Community resiliency p. 51
Learn more about how we uphold our values throughout our operations in our Employee Code of Conduct and our Supplier Code of Conduct.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 9
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
https://www.edison.com/content/dam/eix/documents/investors/corporate-governance/EIX-employee-code-of-conduct.pdfhttps://www.edison.com/content/dam/eix/documents/investors/corporate-governance/EIX-employee-code-of-conduct.pdfhttps://www.edison.com/content/dam/eix/documents/investors/corporate-governance/supplier-code-of-conduct.pdf
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SUSTAINABILITY OVERVIEW Sustainability is at the core of our vision to lead the transformation of the electric power industry toward a clean energy future. From how we manage our operations, engage with our stakeholders and deliver on our promise to provide safe, reliable, affordable and clean power – we are committed to doing our work with the long-term view in mind.
OUR MATERIAL ESG ISSUES In2018,weconductedanenvironmental,socialandgovernance(ESG)materialityassessment to identify the most important ESG issues for our long-term businesssuccessfromastakeholderperspective.Theassessment,whichwasconductedbyathird-partyfirmandincludedviewsfrombothinternalandexternalstakeholders,wasreviewed
by the Edison International Managing Committee.Nineteenissueswereidentifiedaspriorities,withthepotentialtoimpactourlong-termsustainability.1 Thesetopicsguideourapproachtosustainability,aswellasourreportinganddisclosure.Readmoreabouthowwe defineourmaterialESGissues.
1 AmaterialESGissueisonethathasthepotentialtoimpactlong-termsustainability,basedontheperspectivesofinternalandexternalstakeholders.Thisisdifferentfrom,butrelatedto,financialmateriality,whichisathresholdforinfluencingtheeconomicdecisionsofinvestors.
TRANSITION TO A CLEAN ENERGY FUTURE• Climate Change &
Greenhouse Gas (GHG) Emissions
• Grid Modernization & Innovation
• LocalAirQuality• Renewable Energy &
DistributedEnergyResources
• Service&ProductInnovation
• Transportation Electrification
• Business Model
OPERATIONS & GOVERNANCE• Cyber&Physical
Security• Environmental
Footprint• Governance,
Transparency&Compliance
• InfrastructureReliability&Resilience
• PublicPolicyEngagement
• Water Use & Management
CUSTOMERS, COMMUNITIES & EMPLOYEES• Safety & Health• Affordability&Access• Community
Development• Customer Relations• Diversity&Inclusion• Employee
Engagement &WorkforceDevelopment
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOAL CONTRIBUTIONSIn2015,theUnitedNationslaunchedtheSustainableDevelopmentGoals(SDGs)tofocusglobaleffortsin17keyareastohelpbringpeaceandprosperitytopeopleandtheplanet.OurmajorfocusareasgivenourcorebusinessandcleanenergystrategyareSDG7andSDG13,andwe
includedisclosureshereinrelatedtothesepriorities.WemakecontributionsacrossabroadersetofSDGs,however,including,butnotlimitedto,specifictargetsassociatedwithSDGs5,8,9and 11.
SUPPORTING BUSINESS ROUNDTABLE’S STATEMENT ON THE PURPOSE OF A CORPORATIONIn August 2019, Edison International was one of over 180 companies to sign a Statement on the Purpose of a Corporation through Business Roundtable, a Washington, D.C.-based business association.
This statement, which promotes an economy serving all, is consistent with our commitment to deliver value to all our stakeholders.
Major Focus Areas Are SDGs 7 and 13
Learn more about our contributions to the SDGs.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 10
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
https://www.edison.com/content/dam/eix/documents/sustainability/definitions-of-material-esg-issues.pdfhttps://opportunity.businessroundtable.org/wp-content/uploads/2019/09/BRT-Statement-on-the-Purpose-of-a-Corporation-with-Signatures-1.pdfhttps://opportunity.businessroundtable.org/wp-content/uploads/2019/09/BRT-Statement-on-the-Purpose-of-a-Corporation-with-Signatures-1.pdf
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OVERSIGHT OF ESG RISKS AND OPPORTUNITIES EdisonInternational’sBoardofDirectorsoverseessafety,climatechangeimpacts,cybersecurity,andotherESGrisksandopportunities as part of its oversight ofthecompany’sstrategy.ESGissuesareregularlydiscussedateachBoardmeeting as well as at the Board’s annual in-depthstrategymeeting.
The Board’s Nominating/Corporate GovernanceCommitteereviewssignificantESGtrendsthatmayimpactthecompanyandensuresthattheBoardanditscommitteeshavetheappropriateoversightofrelevantESGissues.
EdisonInternational’sapproachtosustainability and integration of ESG issuesintothecompany’soverallstrategy is led by the SVP of Strategy andCorporateDevelopmentandoverseen by the Edison International ManagingCommittee.Across-functional,executive-levelsustainabilitysteeringgroup was also formalized in 2019 toprovideinputintothecompany’ssustainability program.
SUSTAINABILITY OVERVIEW
2 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
2019 PERFORMANCE INCENTIVESTheBoard’sCompensationandExecutivePersonnelCommitteeapprovesannualperformanceincentiveawardsbasedonourfinancial,strategic,operationalandsafetygoals.Thesegoalsrelatetokeyareasofourcleanenergystrategyandcoreoperations,includingmanyofourmaterialESGissues.Inparticular,thecommitteehasbeenincreasingtheweightingofsafetyandresiliencyannualincentivegoalsinrecentyears.For2020,thecommitteeapprovedcorporateperformancescoringmatricesforEdisonInternationalandSCEwith45%weightingacrosspublicsafety,wildfireresiliencyandcybersecuritygoals.
Our2019goalsaresummarizedbelow.Wetiepaytoperformancebymakingmostofficercompensationatrisk.Learnmoreaboutourannualincentiveprogram,includingcorporategoalsandperformanceandawardstonamedexecutiveofficersinEdisonInternational’s and SCE’s 2020JointProxyStatement(pp.42–46).
EDISON INTERNATIONAL
Deduct only
Foundational GoalsIncludesgoalsrelatedtosafety,complianceandsystems operations
20% Wildfire ResiliencyIncludesgoalsrelatedtomitigatingwildfirerisks
10% SafetyIncludesgoalsrelatedtosafetytrainingandinjury rate
45% Financial Performance Core earnings goal
15% Strategy, Transformation & GrowthIncludesgoalsrelatedtobusinessandcleanenergystrategy,includingtransportationelectrificationandgridmodernization,affordable customerrates,EdisonEnergy,2SanOnofreNuclearGeneratingStation(SONGS)decommissioningandotherinitiatives
10% Diversity, People & CultureIncludesgoalsrelatedtodiversityandempoweringemployees to improve operations
SOUTHERN CALIFORNIA EDISON
Deduct only
Foundational GoalsIncludesgoalsrelatedtosafety,complianceandsystems operations
20% Wildfire ResiliencyIncludesgoalsrelatedtomitigatingwildfirerisks
25% Operational & Service Excellence – Safety (10%)Includesgoalsrelatedtosafetytrainingandinjuryrate
Operational & Service Excellence – Other Goals (15%)Includesgoalsrelatedtoaffordablecustomerrates,systemreliability,customersatisfaction,SONGSdecommissioningandotherinitiatives
30% Financial Performance Core earnings goal
15% Policy, Growth & InnovationIncludesgoalsrelatedtobusinessandcleanenergystrategy,includingtransportationelectrificationandgridmodernization,customerserviceandotherinitiatives
10% Diversity, People & CultureIncludesgoalsrelatedtodiversity,empoweringemployeestoimproveoperations,andDiverseBusinessEnterprise spend
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 11
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
http://edison.com/content/dam/eix/documents/investors/corporate-governance/2020-eix-sce-proxy-statement.pdf
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* ThisisbasedonanestimateofSCE’sdeliveredpowermixusingthemethodologyprescribedbytheCaliforniaEnergyCommission’s(CEC)PowerSourceDisclosureProgram(PSPD)asofApril23,2020.SCE’sfinalPSDPreportwillbefiledwiththeCEConJuly20,2020,andmayincludeupdatestoreflectsubsequentchangesorclarificationstoPSDP’smethodologyandreportingtemplate.
** ThiscalculationincludesasaninputanestimateofSCE’sdeliveredpowermixusingthemethodologyprescribedbytheCECPSDPasofApril23,2020.SCE’sfinalPSDPreportwillbefiledwiththeCEConJuly20,2020,andmayincludeupdatestotheinputsusedinthiscalculation.1 OurClimateChange&GHGEmissiongoalisalignedwithstateofCalifornialaw,inparticularCaliforniaPublicUtilitiesCodeSection454.53(a),whichbecamelawthroughSenateBill(SB)100onSeptember10,2018.Itrelatestodeliveredpower,whichisacombinationofSCE’s
utility-ownedgenerationandpurchasedpower.IntermsofGHGemissions,thiscoversaportionofSCE’sScope1andScope3emissions.2 CaliforniahassetRenewablesPortfolioStandard(RPS)targetsthatrequireCaliforniaretailsellersofelectricitytoprovide60%ofelectricitysalesfromrenewableresourcesby2030,withinterimrequirements.(SeeCaliforniaPublicUtilitiesCodeSection399.11(a)andSection
399.15(b)(2)(B).)However,SCE’sownanalysisindicatesthatCalifornianeedstohave80%carbon-freeelectricityby2030toaffordablymeetthestate’sGHGemissionsreductiontargets.Thus,regulatoryapprovalisrequiredforSCEtoachievethismoreaggressivetargetof80%carbon-freeelectricity.
3 NotethatretailsalesdonotincludelinelossesinaccordancewithCaliforniastatute.SCEestimateslinelossesofuptoapproximately10%in2045.4 WeanticipatethattheGHGemissionsandGHGemissionsintensityofourdeliveredpowerwillbeatornearzeroin2045,dependingontheresidualcarbon-emittingresourcesinthesystemattributabletolinelossesinthecontextofSCE’s2045retailsalesgoal.Seenote3.5 Thisforecastisdependentonvariablefactorsincluding,butnotlimitedto,SCE’sloadsize,GHGemissionsaccountingrulesinthestateofCaliforniaandregulatoryapprovalsforprocurement.SCEupdatesthisforecastperiodicallythroughitsIntegratedResourcePlanfilingat
theCaliforniaPublicUtilitiesCommission.6 WhileSCE’sestimated2019deliveredpowermixhadahigherproportionofcarbon-freepowerthanin2018,pursuanttothemethodologyprescribedbytheCECPSDPasofApril23,2020,theemissionsintensityincreasedslightly.Thisisduetoahigherproportionofspecified
naturalgasresources,withahigheraverageemissionsintensity,versusunspecifiedmarketresources,withacomparativelyloweraverageemissionsintensity,inSCE’sestimateddeliveredpowermixin2019comparedto2018.SeeClean Energy for more details on SCE’s estimated2019deliveredpowermix.
We have made long-term, public commitments related to four of our material ESG issues: Climate Change & GHG Emissions, Transportation Electrification, Safety & Health and Diversity & Inclusion. Our Climate Change & GHG Emissions reduction goal is aligned with California law.
OUR SUSTAINABILITY GOALS Learn more about our year-over-year sustainability performance in these and other areas in our Sustainability Scorecard.
Carbon-Free Power as a Percentage of Retail Sales GHG Emissions4, 5 (MMT)
GHG Emissions Intensity5 (MT/MWh)
DELIVER 100% CARBON-FREE POWER TO SCE CUSTOMERS BY 20451 CLIMATE CHANGE & GHG EMISSIONS
BASELINE 16.72018
FORECAST 042045
FORECAST 02045
BASELINE 0.232018
14.8**2019
INTERIM FORECAST 0.112030
INTERIM FORECAST 5.12030
48%*2019
BASELINE 46%2018
INTERIM GOAL 80%22030
2045 GOAL 100%3
0.2462019
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 12
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB100https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=1.&chapter=2.3.&article=16.https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=1.&chapter=2.3.&article=16.https://on.sce.com/2LMHEmb
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OUR SUSTAINABILITY GOALS
7 ThisgoalistiedtoSouthernCaliforniaEdison’sChargeReadyTransportapplication,whichwasapprovedonMay31,2018.TheprogramwasformallylaunchedonMay20,2019.8 ThisgoalistiedtoSCE’sChargeReadyPilot,approvedonJanuary25,2016,thePilot’sextensionapprovedonDecember13,2018,andSCE’sapplicationforitsproposedChargeReady2program,whichwasfiledonJune26,2018,buthasnotyetbeenapproved
orlaunched.Thus,thegoalshownhereisbasedonbothapprovedfundingforapproximately2,700chargeportsat150sitesandproposedfundingtoexpandtheprogramtoapproximately50,000additionalchargeportsat4,000additionalsites.Meetingthisgoalinfullisdependentonregulatoryapproval,andthegoalmaybeadjusted,asnecessary,infuturereportingyearstoreflectapprovalstatusandprogramscope.
INCREASE MEDIUM- AND HEAVY-DUTY ELECTRIC VEHICLE CHARGING INFRASTRUCTURE ACROSS SCE’S SERVICE AREA7TRANSPORTATION ELECTRIFICATION
Commitments Received (ports)
Commitments Received (vehicles)
Commitments Received (sites)
Commitments Received (sites)
2019
2019
BASELINE 02016
BASELINE 02018
148
8
2025 GOAL 4,150
2024 GOAL 870
2019
2019
BASELINE 02016
BASELINE 02018
2,755
104
2025 GOAL 52,700
2024 GOAL 8,490
INCREASE LIGHT-DUTY ELECTRIC VEHICLE CHARGING INFRASTRUCTURE ACROSS SCE’S SERVICE AREA8By 2025, receive SCE customer commitments to deploy (or commit to deploy for utility-owned installations) at least 52,700 electric vehicle charge ports to serve at least 4,150 sites through SCE’s Charge Ready Program (Note: Regulatory approval is pending for a significant portion of this program and goal may be adjusted in future reporting years to reflect approval status and program scope)
By 2024, receive SCE customer commitments to deploy 8,490 medium- and heavy-duty electric vehicles at 870 sites through SCE’s Charge Ready Transport program
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 13
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
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OUR SUSTAINABILITY GOALS
9 Goalsarebasedonproportionofplug-inelectricvehicles,includingplug-inhybrids,withinSCE’stransportationfleet.Vehicleswithplug-in,battery-powered,anti-idlejobsiteworksystems,suchaselectricpowertake-offunits(ePTO),arealsocountedaspart oftheheavy-dutygoal.
10 VehicleweightcategoriesalignwithPathway2045andareasfollows:Light-DutyVehicleClass(≤6kGVW),Medium-DutyVehicleClass(>6kto≤14kGVW)andHeavy-DutyVehicleClass(>14kGVW).11 Goalscontingentonoriginalequipmentmanufacturer(OEM)vehicleavailabilityandfundingapprovalthroughtheCaliforniaPublicUtilitiesCommission(CPUC)
INCREASE ELECTRIFICATION OF SCE’S TRANSPORTATION FLEET IN ALIGNMENT WITH PATHWAY 2045 AND COMPANY’S CLEAN ENERGY STRATEGY9, 10, 11TRANSPORTATION ELECTRIFICATION
Heavy-Duty Goal (percent of electric vehicles and/or vehicles with plug-in, battery-powered, anti-idle job site work systems in SCE’s heavy-duty transportation fleet)
2025
BASELINE: 4%2019
INTERIM GOAL: 5%
2030 GOAL: 8%
Forklift Goal (percent of forklifts that are plug-in electric in SCE’s transportation fleet)
BASELINE: 39%2019
2030 GOAL: 60%
By 2030, electrify 100% of light-duty vehicles; 30% of medium-duty vehicles, and 8% of heavy-duty vehicles within SCE’s transportation fleet
Light-Duty Goal (percent of electric vehicles in SCE’s light-duty transportation fleet)
2025
BASELINE: 13%2019
INTERIM GOAL: 90%
2030 GOAL: 100%
2025
BASELINE: 1%2019
INTERIM GOAL: 10%
2030 GOAL: 30%
Medium-Duty Goal (percent of electric vehicles in SCE’s medium-duty transportation fleet)
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 14
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
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DIVERSITY & INCLUSION
ACHIEVE GENDER PARITY IN SENIOR OPERATING ROLES BY 2030Measured by progress toward Paradigm for Parity commitment of full gender parity (50/50) in senior operating roles by 203012
GOAL 50%
2030
12 OurDiversity&InclusiongoalisframedaroundthepubliccommitmentEdisonInternationalmadetoParadigmforParityin2016.”Senioroperatingroles”isdefinedasattheDirector-levelorabove.LearnmoreaboutourfocusonDiversity&Inclusion.13 ThisgoalisframedaroundaportionofEdisonInternationalandSCE’songoingannualcorporateperformancefoundationalgoals,whicharetiedtoexecutivecompensation.LearnmorebyvisitingEdison International’s and SCE’s 2020 Joint Proxy
Statement,pp. 43–44.LearnmoreaboutourfocusonPublicSafety and EmployeeandContractorSafety.14 Atransformerfailureresultedinaseriousinjurytoonememberofthepublic.15 Threecontractworkerssufferedfatalinjuriesin2019,twobecauseofavehiclecollisionandonebecauseofelectricalcontactwhileperformingvegetationmanagementwork.16 In2017,SCEinvestedinanin-depthassessmentofitssafetyculturebecauseasanorganization,wecareaboutthehealthandwell-beingofSCEemployees,contractorsandthepublic.Welearnedthatmanyofourpeoplethinkofoursafetymeasuresas
somethingwedojustforcompliance.Usingamaturitymodel,wearenowtrackingourevolutionandconductingin-depthsurveyseverythreeyearstodetermineourprogress.Ourgoalistoevolveourculturetoonewhereemployeeschoosetoactsafelyfornotonlythemselves,butfortheirpeersby2026.Ouraspirationalaimoverthelongtermistoevolveourculturetoonewhereemployeestakeownershipoftheirownsafetyandthesafetyofthosearoundthemasacorepartoftheirjobandinsupportofourcollectivemission.LearnmoreaboutourSafety Culture.
OUR SUSTAINABILITY GOALS
BASELINE 27%
2016
35%
2019
ACHIEVE PUBLIC AND WORKER SAFETY GOALS AT SCESAFETY & HEALTH
2026: IMPROVE EMPLOYEE PHYSICAL AND PSYCHOLOGICAL SAFETY THROUGH CULTURE TRANSFORMATION
“I CHOOSE TO FOR OUR MISSION”“I CHOOSE
TO FOR ME”“I CHOOSE TO FOR US”
ONGOING: NO WORKER (EMPLOYEE OR CONTRACTOR) FATALITY13
Employee Fatalities
Contractor Fatalities
GOAL ACHIEVED
02017
GOAL ACHIEVED
02017
GOAL ACHIEVED
02018
GOAL NOT MET
22018
GOAL ACHIEVED
0
GOAL NOT MET15
3
2019
2019
ONGOING: NO SERIOUS INJURIES TO THE PUBLIC FROM SYSTEM FAILURE13
Injury to Members of the Public
GOAL ACHIEVED
02017
GOAL ACHIEVED
02018
GOAL NOT MET14
12019
Measured by an in-depth safety culture survey conducted once every three years16 2026: GOAL
ASPIRATIONAL
2019
“I’M NOT GOING TO” “I HAVE TO”
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT APPENDIX 15
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
PROTECTING THE ENVIRONMENT COVID-19
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
https://www.paradigm4parity.com/solution#planhttps://newsroom.edison.com/releases/edison-international-reaffirms-commitment-to-gender-equityhttps://www.edison.com/content/dam/eix/documents/investors/corporate-governance/2020-eix-sce-proxy-statement.pdfhttps://www.edison.com/content/dam/eix/documents/investors/corporate-governance/2020-eix-sce-proxy-statement.pdf
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2019 YEAR IN REVIEW
1 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
WILDFIRE MITIGATION PROGRESS
Exceeded our goal for replacing 96 circuit miles of overhead power lines with insulated wires, replacing more than 300 miles in 2019
Installed fast-acting fuses at over 10,000 locations (over 7,500 locations in 2019 alone) to reduce electrical currents during the instance of a downed wire
Installed 161 high-definition cameras to monitor SCE’s high fire risk area (HFRA) (91 in 2019 alone), reaching saturation point for cameras
Installed 482 weather stations in SCE’s HFRA (over 350 installed in 2019)
Conducted enhanced inspections on 100% of our overhead distribution and transmission infrastructure in our HFRA over a five-month period – work which would have previously been performed over a three- or five-year cycle under standard requirements
TIER 1 GOLD PRIZE in the U.S. Department of Energy’s Electricity Industry Technology and Practices Innovation Challenge
48%of the electricity that SCE delivered estimated from carbon-free resources
1.85 GW in renewable power purchase agreements (PPAs) advised on by Edison Energy1 in 2019 (4.5 GW total since inception)
$23M in philanthropic contributions
In 2019, SCE accelerated plans to mitigate wildfire risks associated with its infrastructure. We made substantial progress by year-end and met or exceeded nearly all of our goals in our 2019 Wildfire Mitigation Plan.
215electric car charge ports installed through SCE’s Charge Ready Program (1,278 total)
Read more about our Wildfire Mitigation Plan and how we are improving public safety.
FORTUNE 500 RECRUITMENT MARKETING PIONEERS4th place ranking recognizing Edison International as a strategic recruiter and early adopter of emerging technology
40% procurement spend with diverse suppliers at SCE, totaling $2.21 billion
10,000+ JOBSretained, expanded and/or attracted in SCE’s service area
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 16
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19 INTRODUCTION
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AsolarfarminLancaster,Calif.,supportedbytheConnollyBatteryStorageSystem,whichwasdevelopedaspartofanSCEenergystoragepilot.Batteriesstoresolarenergyforlateruse.
ACCELERATINGA CLEAN ENERGY FUTURE 18 Our Vision
21 Clean Energy
23EfficientElectrification
27 Grid of the Future
29CustomerChoice
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT
ACCELERATING A CLEAN ENERGY FUTUREINTRODUCTIONCOVID-19
PROTECTING THE ENVIRONMENT APPENDIX 17
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHER
ACCELERATING A CLEAN ENERGY FUTURE
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Nations Intergovernmental Panel on Climate Change (IPCC) SpecialReportonGlobalWarmingof1.5°C.
Achievingthiswillrequireatransformation,notonlyinhowenergyisproducedbutalsoinhowit’sused.Thechangesrequiredacrosstheeconomywillbe profound.
Cleanelectricitypoweringincreasinglyefficientelectricendusesisanimportantpartofacost-effectivesolution.We’redoingourpart,developinginfrastructureandadvancingthetechnologiesneeded
CLIMATE CHANGE MITIGATIONSCE operates entirely within the state ofCalifornia,whichhassomeofthemostambitiousclimatechangeandenvironmentalgoalsintheU.S.SCEhasstate-mandatedobjectivestodeliver100%carbon-freepowerby2045–oneofthemostaggressivetargetsintheU.S.utilityindustry–andoperatesunderthefollowing state-mandated renewable andcarbon-freeretailsalestargetsfordelivered power3:
• By2020–33%fromRenewablesPortfolio Standard4 (RPS)-eligible resources(achievedin 2018)
• By2030–60%fromRPS-eligibleresources
• By2045–100%carbon-free
Californiahasalsocommittedtoachievinga40%reductioninabsoluteGHGemissions from 1990 levels by 2030 and 80%by2050,withanadditionalgoalofeconomy-widecarbonneutralityby2045.Takentogether,thesescience-basedpoliciesarebroadlyconsideredtobeconsistentwiththeambitiousaimofkeepingglobaltemperatureincreasesbelow1.5°C,assetoutintheUnited
GOALDeliver 100% carbon-free power to customers by 2045
2030 80%carbon-free1
2045 100%carbon-free
OUR STRATEGYAtEdisonInternational,we’regrowingourbusinesstowardacleanenergyfuturewhileadaptingourinfrastructureandoperationstoanewclimatereality,strivingforbest-in-classoperations,andprovidingsuperiorvaluetoourcustomersandshareholders.Ourprincipalsubsidiary,SCE,isfocusedonproactivelyaddressingwildfirerisk,cleaningthepowersystem,helpingcustomersmakecleanerenergychoices,strengtheningandmodernizingthegrid,andachievingoperationalandserviceexcellence.Edison Energy2 partners withleadingcommercial,industrialandinstitutionalclientstohelpthemnavigate and manage three of the biggest challengesoftoday–cost,carbonandtheincreasinglycomplexchoicesin energy.
tosupportelectrificationacrosstheeconomy.AsCalifornia’sonlyinvestor-ownedelectricutilitywithoutanaturalgasdistributionbusiness,weareuniquelypositionedtoadvanceelectrificationinitiatives.
To meet the state’s GHG emissions reductiongoals,SCEisalsoadvocatingfor a more aggressive retail sales target of80%carbon-freepowerdeliveredtocustomersby2030,goingbeyondthestate-mandatedgoalof60%RPS-eligiblepowerdeliveredtocustomers.
1 CaliforniahassetRenewablesPortfolioStandard(RPS)targetsthatrequireCaliforniaretailsellersofelectricitytoprovide60%ofelectricitysalesfromrenewableresourcesby2030,withinterimrequirements.(SeeCaliforniaPublicUtilitiesCodeSection399.11(a)andSection399.15(b)(2)(B).)However,SCE’sownanalysisindicatesthatCalifornianeedstohave80%carbon-freeelectricityby2030toaffordablymeetthestate’sGHGemissionsreductiontargets.Thus,regulatoryapprovalisrequiredforSCE toachievethismoreaggressivetargetof80%carbon-freeelectricity.
2 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.3 See CaliforniaPublicUtilitiesCodeSection399.11(a),Section399.15(b)(2)(B) and Section454.53.SCE demonstrates its plan for meeting these and other targets through its IntegratedResourcePlan and RPSProcurementPlan.Learnmoreaboutthe
CPUC IRP proceeding and the CPUC RPS Program.4 EligiblerenewableresourcesaredefinedbystatuteandtheCaliforniaEnergyCommission.
OUR VISIONOur vision is to lead the transformation of the electric power industry, focusing on opportunities in clean energy, efficient electrification, grid of the future and customer choice.
Edison International President & CEO PedroPizarro(centerleft)withothermembers of the Edison team (from lefttoright)JenniferManfre,SVPofCorporateAffairsCarolineChoi,andIgnacioFernandez,atCOP25
WE ARE STILL INIn2017,EdisonInternationalunderscoreditscommitmenttofightingclimatechangebyjoiningtheWe Are Still Incampaigninsupportof theParisClimateAgreement.
Wefurtheredourcommitmentin2019byparticipatingintheUnitedNationsClimateChangeConference(COP25)asoneof17U.S.businessdelegatesandbysigning the Joint Labor Union and CEO StatementontheParis Agreement to supportajusttransitionofthe workforce.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 18
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.ipcc.ch/sr15/https://www.ipcc.ch/sr15/https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=1.&chapter=2.3.&article=16.https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=1.&chapter=2.3.&article=16.https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=1.&chapter=2.3.&article=16.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=454.53.&lawCode=PUChttp://www3.sce.com/law/cpucproceedings.nsf/vwSearchProceedings?SearchView&Query=FIELD%20Acronym%20contains%20SCE%202017-18%20IRP%20or%20%20FIELD%20docNumber%20contains%20SCE%202017-18%20IRP%20or%20FIELD%20docTitle%20contains%20SCE%202017-18%20IRP%20or%20FIELD%20docCategory%20contains%20SCE%202017-18%20IRP%20or%20FIELD%20Doc_Index_ID%20contains%20SCE%202017-18%20IRP%20or%20FIELD%20Clips%20contains%20SCE%202017-18%20IRP%20or%20FIELD%20DocType%20contains%20SCE%202017-18%20IRP&SearchMax=1000&Key1=1&Key2=25]https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M328/K717/328717816.PDFhttps://www.cpuc.ca.gov/https://www.cpuc.ca.gov/rps/https://www.wearestillin.com/https://www.unitedforparisagreement.comhttps://www.unitedforparisagreement.com
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PATHWAY 2045SCE’S BLUEPRINT FOR HOW CALIFORNIA CAN AFFORDABLY ACHIEVE ECONOMY-WIDE CARBON NEUTRALITY BY 2045
DECARBONIZE ELECTRICITY
100% of retail sales powered with carbon-free electricity
ELECTRIFY TRANSPORTATION
Including three-quarters of light-duty vehicles, two-thirds of medium-duty vehicles and one-third of heavy-duty vehicles
ELECTRIFY BUILDINGS
70% of space and water heating electrified in the built environment
LOW-CARBON FUELS
Technologies that are not viable for electrification to use low-carbon fuels
CARBON SINKS The remaining
108 million metric tons (MMT) of carbon to be sequestered to reach carbon neutrality
The Pathway to 2045Achievingeconomy-widecarbonneutralityinCaliforniaby2045willrequireanintegratedapproachinvolvingallsectors.Buildingstrongcross-industryandcross-sectorpartnershipsisatthecoreofSCE’sstrategy.Overthepastthreeyears,wehavepublishedtwothoughtleadershippiecesoutliningthecross-sectorcollaborationwebelieveisneededtoreachthestate’sclimategoals.
Our Pathway2045whitepaper,publishedinNovember2019,outlinesourmostrecentblueprint.Pathway2045buildsonSCE’sClean Power and ElectrificationPathway,publishedin2017,andidentifies fivekeyactionstobetakenacrosstheCaliforniaeconomytoaffordablyachieve carbonneutralityby2045.See call-out below.
We are now aggressively pursuing these actionsbyundertakingchangestoour
ownoperations,proposingtoinvestmore than $5billionperyearinourgrid;engaging in policyadvocacy;building cross-sectorpartnerships,particularlyaround electrification;andenhancingourcustomerprograms.
CLIMATE CHANGE ADAPTATION Wearealreadyexperiencingthedevastatingconsequencesofclimatechange.InCalifornia,increasinglyhightemperaturesareaffectingresidents,asaremoreregularandextremeclimateevents,likewildfires,droughtsandstorms.Tenofthe20mostdestructiveCaliforniawildfireshaveoccurredsince 2015.
We’re implementing measures to minimizetheimpactsofsevereweather,bothintheshortandlongterm.Wearestrengthening the grid,buildingresilienceagainsttheincreasingrisksofwildfiresandotherextremeweatherevents,
OUR VISION
WILDFIRE PREVENTION IN THE SIERRA NEVADA MOUNTAINS Identifying wildfire risks around a remote dam in the Sierra Nevada mountain region, SCE developed a project to replace existing infrastructure with a solar microgrid.
Through the pilot solar project, SCE replaced a difficult-to-access power line exposed to winds up to 100 miles per hour with two 3.3 kilowatt (kW) solar arrays, a 600-amp, 48-volt battery storage system, and a propane-fueled backup generator. The panels now power on-site infrastructure like valves and cameras that ensure the dam is running properly, allowing SCE to turn off the high-risk power line.
and changingthewayweoperateasa company.
Morebroadly,SCEisevaluatingthepotentiallong-termimpactsofclimate-relatedhazardsonitsowninfrastructureand operations using state of California-endorsedclimatechangeemissionsscenariosandmodels.Theinformationis being integrated on an ongoing basis intolong-rangeplanningaswework,inparallel,toachieveobjectivesoutlinedinPathway 2045.
SCEisalsoanactiveparticipantintheOrder Instituting Rulemaking (OIR) at the CaliforniaPublicUtilitiesCommission(CPUC),focusedonintegratingclimateadaptation into utility planning and operations.Thisincludesguidanceonthetypesofclimatedatatouseandpathwaysforproposingclimate-relatedinvestmentsandactions.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 19
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://newsroom.edison.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/166/files/201910/201911-pathway-to-2045-white-paper.pdfhttps://newsroom.edison.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/166/files/20187/g17-pathway-to-2030-white-paper.pdfhttps://newsroom.edison.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/166/files/20187/g17-pathway-to-2030-white-paper.pdf
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OUR VISION
PUBLIC POLICY ENGAGEMENT Wepartnerwithleadersatlocal,stateandfederallevels,aswellasindustrygroups,toadvancepoliciesrelatedtoourstrategyandmaterialESGissues.Examplesincluderegulationsonclimatechangemitigationandadaptation,transportationandbuildingelectrification,innovationtoadvancecleanenergytechnologies,andcybersecurity.
Atthefederallevel,EdisonInternationalengageswithfederalagencies,congressionalrepresentativesandotherstakeholders.WeworkcloselywiththeU.S.DepartmentofEnergy(DOE)toadvanceinnovationsneeded
nationwide.In2020,PizarrobecamechairoftheElectricPowerResearchInstitute(EPRI),whichprovidesthoughtleadership,industryexpertiseandcollaborativevaluetoshapethefutureofelectricity.HealsoservesontheboardofindustrygrouptheEdisonElectricInstitute(EEI).EdisonInternationalSVPofCorporateAffairsCarolineChoiservesontheboardofSmartElectricPowerAlliance,anationwideorganizationthatsupports utilities in the implementation anddeploymentofcleanenergyanddistributedresources.
Atthestateandlocallevel,SCEhasbeen working with a broad range of stakeholdersinsupportofthepoliciescalledforbyPathway2045.Aligningthe goals of Southern California region business,industryandtradegroupswithcleanenergyandelectrificationhasbeenakeyfocus.Amongotherthings,wealsorecentlysupportedalowerelectricity-system-wideGHGemissionsreductiontarget,consistentwithPathway2045,aspartofthe2020IntegratedResourcePlanproceedingattheCPUC.Climateresiliencehasalsobeenatoppriority,andwecontinuetodedicateresourcesto support bills in the state legislature to protectcommunities,suchasaroundfiresafebuildingstandards.
PREPARE FOR TOMORROW In2019,EdisonfundedtheproductionofareportbyClimateResolve,anonprofitthatfocusesonlocalsolutionstoglobalclimatechange.The Ready for Tomorrow? report provides a snapshot of currentclimatepreparednessplanningatthemunicipallevel,inornearSCE’sservicearea.Italsoputsforwardrecommendationsforpolicymakerstoimprovestatewide preparedness.
SUPPORT FOR CLIMATE CHANGE ACTION In November 2019, the U.S. House of Representatives Committee on Ways and Means announced the introduction of the Growing Renewable Energy and Efficiency Now (GREEN) Act of 2019. The GREEN Act promotes renewable energy and carbon reduction efforts to tackle climate change. Additionally, the GREEN Act includes several provisions proposed and/or supported by Edison International, including measures promoting the adoption of electric vehicles.
tomeetindustryobjectives.In2019,Edison International President and CEO PedroPizarrojoinedtheDOESecretaryof Energy Advisory Board as the sole electricutilityrepresentative.Healsoserves on the board for Argonne National Laboratory,oneofDOE’s17nationallabs.Additionally,Pizarroisamemberof the ElectricitySubsectorCoordinatingCouncil,theprincipalliaisonbetweenleaders in the federal government and theelectricpowersector,topreparefornational-levelincidentsandthreatstocriticalinfrastructure.
Edison International also plays a role inindustryandcross-sectorgroups
RESPONDING TO COVID-19We’re committed to supporting California’s road to recovery and believe that clean energy can play a critical role in a just and equitable economic future. Edison International President and CEO Pedro Pizarro serves on the Governor’s Task Force on Business and Jobs Recovery and Senior Vice President of Corporate Affairs Caroline Choi serves on the City of Long Beach Economic Recovery Advisory Group. Learn more about our COVID-19 response.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 20
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.climateresolve.org/ready-for-tomorrow/https://mikethompson.house.gov/sites/mikethompson.house.gov/files/2019-11-19%20GREEN%20Act%20Discussion%20Draft.pdfhttps://mikethompson.house.gov/sites/mikethompson.house.gov/files/2019-11-19%20GREEN%20Act%20Discussion%20Draft.pdfhttps://mikethompson.house.gov/sites/mikethompson.house.gov/files/2019-11-19%20GREEN%20Act%20Discussion%20Draft.pdfhttps://www.electricitysubsector.org/https://www.electricitysubsector.org/
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byanestimated48%duetoincreasedrenewableenergyinourportfolio.
In2019,SCEwasnamedaleaderinsolarby the SmartElectricPowerAlliance (SEPA),forthe12thconsecutiveyear.Wewere also named as the top electricutility forthesecondyearina rowforannualenergystoragecapacity.
Ourcustomersareplayinganimportantrole in the transition to renewable energy.Learnmoreabouthowwe’resupportingcustomeradoptionof carbon-freeenergytechnologies.
Our Energy SupplySCEisanationalleaderincleanenergy.Anestimated48%ofthepowerwedeliveredtocustomersin2019camefromcarbon-freesources.2Ofthat,approximately73%(35%oftotaldeliveredpower)camefromrenewableresourceseligibleunderCalifornia’sRPSrequirements.3In2019,ourdelivered power emitted approximately 45%fewerGHGemissionsperunitofelectricitycomparedtotheU.S.nationalaverage.Between2005and2019,SCE’sGHG emissions from delivered power fell
SCE’S ESTIMATED DELIVERED POWER MIX IN 2019•
1 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
2 See SustainabilityScorecard formoredetails.Thispercentagedoesnotincluderenewableenergyfromcustomer-sitedrooftopsolar.
3 EligiblerenewableresourcesaredefinedbystatuteandtheCaliforniaEnergyCommission(CEC).RetailsellersofelectricityinCalifornia,includinginvestor-ownedutilities,electricityserviceproviders,communitychoiceaggregators andpubliclyownedutilitiesarerequiredtoserve33%oftheirloadwitheligiblerenewablesby2020and60%by2030.
Includesbothownedgenerationandpowerprocuredfromthirdparties.
* Numbers do not sum duetorounding.
CLEAN ENERGY At SCE, we’re committed to one of the most aggressive carbon-free power targets in the U.S. utility industry. At Edison Energy,1 we partner with large energy users, identifying solutions to help them reduce their carbon footprints and reach their own sustainability goals.
Eligible Hydroelectric
Solar
Geothermal
Biomass & Biowaste
Natural Gas
Nuclear
Unspecified*
Other**
Large Hydroelectric
Wind
Carbon-free
48%Non-carbon-free, unspecified
or other resources
52%
YEAR-TO-YEAR TREND***
Carb
on-fr
ee (C
alifor
nia RPS
-eligible renewables)
Carbon-free
(other)
• ThisisanestimateofSCE’sdeliveredpowermixusingthemethodologyprescribedbytheCaliforniaEnergyCommission’s(CEC)PowerSourceDisclosureProgram(PSPD)asofApril23,2020.SCE’sfinalPSDPreportwillbefiledwiththeCEConJuly20,2020,andmayincludedatathatdiffersfromtheestimateshownheretoreflectsubsequentchangesorclarificationstoPSDP’smethodologyandreportingtemplate.
* Unspecifiedpowerreferstoelectricitythatisnottraceabletoaspecificgeneratingfacility,suchaselectricitytradedthroughopenmarkettransactionsadministeredbytheCaliforniaIndependentSystemOperator(CAISO).Thepoweristypicallyamixofresources,largelydominatedbynaturalgasandrenewables.ThegeneratingresourcesintheCAISOmarketaregettingcleanerasmoreandmorerenewablesareaddedtothegridinlinewithCaliforniastatelaw.
** “Other”predominantlyconsistsofenergyfromout-of-statewindprojectsthatisnotdeliveredintoCalifornia.In2019,theCEC’spowersourcedisclosureprogramrequirementschanged,addinganemissionsfactortoout-of-staterenewablesthatarenotdirectlydeliveredintothestate.Othersourcesofenergyincludedhere(estimatedaslessthan10%ofthe“other”total)aredieselfromSCE-ownedPebblyBeachGeneratingStationonCatalinaIslandandrenewablecontractswithoutanassociatedrenewableenergycredit.
***Numbersdonotsumduetorounding.
SCE’S ESTIMATED OWNED GENERATION MIX AS A PERCENT OF DELIVERED POWER IN 2019
In2019,approximately19%ofpowerdeliveredtoSCE’scustomerscamefrom utility-ownedgeneration.*
EligibleHydroelectric1% Oil (Catalina)
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CLEAN ENERGY
RECENT SCE ENERGY STORAGE PROCUREMENT ONE OF LARGEST IN NATIONOn May 1, 2020, SCE announced it had signed seven contracts totaling 770 MW of battery-based energy storage resources to help enhance electric system reliability needs in its service area. To date, this is one of the largest energy storage procurements in the nation. Four of the announced storage projects are in the “100 MW club” – those facilities that are the largest in the world. The contracts need CPUC approval.
Renewable PPAs and Storage AdviceThe Edison Energy4 team partners with largeorganizationsglobally,including12oftheFortune50,tosupportambitioussustainabilitygoals.EdisonEnergyhasadvisedonover4,500MWofpowerpurchaseagreements(PPAs),including1,850MWofexecuteddealsin2019
alone.EdisonEnergyalsoevaluatesthefinancialandresiliencybenefitsofenergystorageonbehalfofourclients.InCalifornia,wesuccessfullyadvisedorandexecuted665+MWofwind,solarandstoragetransactions,includingbothutility-scaleandbehind-the-meter projects.
4 EdisonEnergyisnotthesamecompanyasSouthernCaliforniaEdison,theutility,andEdisonEnergyisnotregulatedbytheCaliforniaPublicUtilitiesCommission.
Energy Storage InvestmentsIncreasedenergystorageisessentialaswecontinuetoexpandtheshareofintermittentrenewableelectricitysourcesinourmix.SCEestimatesthatCaliforniawillneed10 GWofutility-scaleenergy storage by 2030 and 30 GW by 2045tosupportthetransitionto100%carbon-freepower.
SCEisprocuringenergystoragethroughthird-partycontractsandhasdevelopeda limited amount of owned installations to meet state statutory and regulatory targets.SCEhasalreadyexceededits2024state-mandatedtargetof580 MW.AsofMarch1,2020,wehaveprocuredor installed over 690 MW of energy
storage,approximately600MWofwhichcountstowardstatetargets.Oneofthecontractsweawardedin2019–100MWtohelpmeetalocalcapacityneedintheSantaBarbaraandVenturaareas–willbecomeoneofNorthAmerica’slargestoperational lithium-ion battery systems whenitcomesonline.
A CLEAN ENERGY AUTOMOTIVE INDUSTRY WITH AMERICAN HONDA MOTOR COMPANY, INC. In 2019, Edison Energy facilitated the largest clean energy procurement in automotive history on behalf of American Honda Motor Company, Inc. (Honda). The deal, which included two long-term virtual power purchase agreements (VPPAs) totaling 320 MW of renewable power capacity from Oklahoma and Texas, will cover over 60% of the electricity that Honda uses in North America. This procurement deal will help Honda meet its CO2 emissions reduction goals. Together, the purchases are among the largest VPPA commitments in the U.S. market.
EdisonEnergyfacilitatedrenewablePPAsonbehalfofseveralclientswithEDPRenewables’ Arkwright Summit and Los MirasolesIWind(Hidalgo)project.Picturedhere:“LosMirasolesWindFarm,”byEDPRenewablesNorthAmerica
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 22
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
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EFFICIENT ELECTRIFICATION
ELECTRIC TECHNOLOGY INVESTMENTSOneofthewaysweworktoadvanceefficientelectrificationisbyinvestingincompaniesthataredevelopingelectrictechnologiesandservices.ExamplesofcompaniesweinvestinincludeProterra,aleaderinthedesignandmanufactureofzero-emissionelectricbuses,ViriCiti,whichprovidesmonitoringandsmartchargingsolutionsforelectricvehiclefleets,andAMPLY Power,whichofferschargingasaservicetohelpfleetstransitiontoelectricvehicles.WealsorecentlyinvestedinOptimus Ride,anautonomous software and mobility serviceproviderforshared e-fleets.
Electrification of end uses across the economy, including in homes, businesses and industrial applications, is the most cost-effective way to reduce carbon emissions and achieve a clean energy future. We’re leading the way in California and nationally, executing on SCE’s suite of Charge Ready programs, advocating for policy changes, and investing in technologies and services to make broad-scale electrification a reality.
NATIONAL LEADERSHIPEdison International President and CEO Pedro Pizarro is the co-chair of the EEI CEO Electric Transportation Task Force, and past chair of the EPRI Board of Directors Efficient Electrification Working Group. Edison International is also involved in EPRI’s new Board Electric Vehicle Infrastructure Working Group. These groups bring together stakeholders from across the country to advance electrification. By working with our peers, we hope to lay the foundation for the nationwide effort required to achieve the benefits of broad-scale electrification.
GOALSIncrease medium- and heavy-duty electric vehicle charging infrastructure across SCE’s service area
2024 ReceiveSCEcustomercommitmentstodeploy8,490medium-andheavy-dutyelectricvehiclesat870 sites
Increase light-duty electric vehicle charging infrastructure across SCE’s service area
2025 ReceiveSCEcustomercommitmentstodeploy(orcommittodeployforutility-owned installations) at least52,700electricvehiclechargeportstoserveatleast4,150sites1
1 Regulatoryapprovalispendingforasignificantportionofthisprogramandgoalmaybeadjustedinfuturereportingyearstoreflectapprovalstatusandprogramscope.
2 BasedonCaliforniaAirResourcesBoardCalifornia Greenhouse Gas Emissions Inventory,withdatafromthe2017EmissionsbyEconomicSectorchart.
THE CASE FOR ELECTRIFICATIONAchievingeconomy-widecarbonneutrality in California requires bold changestohowwepowerourlives.Today,thetransportationsectoraccountsforthelargestshareofGHGemissionsinCaliforniaat41%,whiletheelectricpowersectorisonly15%.2 SCE’s Pathway2045analysisshowsthat,overthenext25years,75%ofvehiclesand70%ofbuildingswillneedtobeelectric,withsignificantchangestothegridandincreasesincharginginfrastructure.
SCE sponsored a recentreport by the LosAngelesCountyEconomicDevelopmentCorporation,whichfoundthatachievingwidespreadelectrificationoftransportationwillnotonlybenefitthe environment but also the California economy.Theelectricvehicleindustryhasalreadycreated120,000newjobsinSouthernCalifornia(276,000inCalifornia),withannualwageswellabovethecross-industryaverage.Opportunitiesinthesectorwillcontinuetoexpandwithgreateradoptionofelectricvehicles.
A 2019 reportcommissionedbytheNationalResourcesDefenseCouncilandtheCaliforniaElectricTransportationCoalitionfoundthatelectrictrucksandbusesaremorecost-effectivethantraditionallyfueledvehicles,savingmoneyforfleetoperators.Thisisinadditiontobeing better for the environment in terms oflowercarbonemissionsandlesslocalairpollution.
An Energy+EnvironmentalEconomics(E3) study inApril2019confirmedthatbuildingelectrificationrepresentsanimportantopportunitytoreduceGHGemissionsandcallsoutnear-termcostsavingsforlow-riseresidentialbuilding owners.
Transit buses on the assembly lineatProterra’smanufacturingplantintheCityofIndustry,Calif.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 23
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.proterra.com/https://viriciti.com/https://www.amplypower.com/https://www.optimusride.com/https://ww2.arb.ca.gov/ghg-inventory-datahttps://www.edison.com/content/dam/eix/documents/our-perspective/201911-pathway-to-2045-white-paper.pdfhttps://laedc.org/2020/03/01/laedc-ev-industry-report/https://caletc.com/comparison-of-medium-and-heavy-duty-technologies-in-california/https://www.ethree.com/wp-content/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdfhttps://www.ethree.com/wp-content/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdf
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GROWTH 0F ELECTRIC VEHICLES IN SCE’S SERVICE AREA*
EFFICIENT ELECTRIFICATION
TRANSPORTATION ELECTRIFICATIONLight-Duty Projects Through SCE’s Charge Ready Program,launchedin2016,wehelpbusinesses,localgovernmentsandmembersofthepublicmaketheswitchtoelectrictransportationbyincreasingtheavailabilityofchargingstations.SCEcoversthecostsforinstallingandmaintainingtheinfrastructuretosupportthechargingstations,whicharelocatedinareaslikeworkplacesanduniversitieswherepeopleparkforfourhoursormore.
Followingthelaunchofourinitial$22 millionpilotin2016,supportingtheinstallationof1,300light-dutyelectricvehiclechargeports,wehavesincedoubledthisinvestmenttoexpandthereachoftheprogramto2,700 chargeports.Asofyear-end2019,1,278chargeportshavebeeninstalledat83sitesunderthisprogram.
We have also proposed investing an additional$760millionoverfouryearstoinstallover50,000chargeportsacrossSCE’sservicearea.
Incentives for Adoption Toencouragemorepeopletochooseelectricwhentheybuyacar,SCEoffersthe Clean Fuel Reward Program.Throughtheinitiative,customerscanapplyforarebateofupto$1,000whentheybuyorleaseanelectricorplug-inhybridvehicle.Theofferappliestousedcarsaswellasnew,meaningsecondandthirdownersofcarsarealsoeligibleforrewards,encouragingmorepeopletooptforelectricvehicles..In2020,theCleanFuel Reward will expand to a statewide point-of-saleprogram,withSCE actingas the administrator.
FAST-CHARGING FACILITIES FOR 7-ELEVEN In2019,theconveniencestorecompany7-ElevenbecameoneofthefirstparticipantsinSCE’sChargeReady Program to install fast-charginginfrastructure.Thetwonewfast-chargingstationsata7-EleveninPomonaallowshopperstochargetheirvehicleinjusthalfanhourwhiletheydotheir shopping.
Following the installation of these fast-chargeports,7-Elevenisexploringhowitcaninstallsimilarinfrastructureatitsothersites.
SCEDirectorofeMobilityandBuildingElectrificationKatieSloan(left)withPomona,Calif.,ChamberofCommerce’sMoniqueManzanares and Pomona Mayor Tim Sandoval2019
210,140
2015
58,782
2017
114,382
2016
83,005
2018
163,390
* Numberofregisteredplug-inhybridandbatteryelectricvehiclesinSCE’sservicearea.DataisasofJanuary2020andrepresentsannuallight-dutyvehiclesalesbasedonthird-partyregistrationdatasourcedfromEPRI.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 24
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.sce.com/business/electric-cars/Charge-Readyhttps://evrebates.sce.com/
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EFFICIENT ELECTRIFICATION
Medium- and Heavy-Duty Projects FortypercentofgoodsenteringtheU.S.are moved through Southern California regional ports and over its highways andrailways.Whileimportantfortheeconomy,thegoodsmovementindustryisamajorsourceofGHGemissionsandairpollutionfromcommercialandindustrialvehicles.Electrifyingmedium-and heavy-duty transportation will not onlyreduceemissionsbutimproveairqualityalonglocaltransitcorridors,improving the lives of the many SCE customerswholiveandworkintheseareas.ThroughCharge Ready Transport,SCEisinvesting$356millionininstallinginfrastructureat870SCEcustomersitesby2024,makingitthelargesttruckandtransitcharginginitiativeinthenation.
WEST COAST CLEAN TRANSIT CORRIDOR INITIATIVE InApril2019,SCE,alongwith14otherelectricityproviders,announcedthelaunchofastudytounderstandhowGHGemissionscanbecurbedalongInterstate5,whichstretchesmorethan1,300milesfromSouthernCaliforniatoCanada.Asamajortruckingcorridor,airpollutionisakeyissue.
Thestudy,whichissettopublishin2020,exploreshowelectricvehiclechargeportscanbeinstalledalongtheinterstate,aswellasonconnectingroutes,toservemedium-andheavy-dutyelectrictrucks.
Charge Ready Transit Bus PilotIn2018,welaunchedtheChargeReadyTransitBusPilot,bringingbuschargingstations to Porterville in the San JoaquinValley.Theinitiative,whichwascompletedin2019,providedcharginginfrastructurefor10newzero-emissionbusesthatwerebroughtintoreplaceoldervehiclesthatranonfossilfuels.The Charge Ready Transit program alsoincludesFoothillandVictorValley,supportingtheinstallationof30chargeportsatallthree sitesintotal.Oneofthefactorsinchoosingparticipantsfortheprogramdependedonthepresenceof bus routes traveling through state-designateddisadvantagedcommunities.
3 “Disadvantagedcommunities”isadefinitionthatthestateofCaliforniausestoindicatethosecommunitiesthataremostheavilyimpactedbypollutionfrommultiplesourcesandmostvulnerabletoitseffects.
CHARGE READY DC FAST CHARGE
Installing fast-charging stations, which reduce charging times to 30 minutes or less, at five pilot sites in or
near state-designated disadvantaged
communities,3 serving customers without
access to home charging options (e.g., apartment
dwellers).
CHARGE READY HOME INSTALL
Concluding in May 2019, this pilot distributed 2,670 rebates to SCE
residential customers who wired their homes for electric vehicle charging.
The rebates alleviated one of the major barriers
to the adoption of personal electric vehicles –
the cost of installing home charging stations.
CHARGE READY SCHOOLS AND
CHARGE READY PARKSInstalling hundreds of
new electric vehicle charging stations at schools and state
recreation area parking lots that will be open to
the public.
SCALING LIGHT-DUTY ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 25
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.edison.com/home/innovation/electric-transportation/charge-ready-a-plan-for-california.html
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EFFICIENT ELECTRIFICATION
BUILDING ELECTRIFICATIONWhileimprovingelectrificationinfrastructureforvehiclesisvital,transitioning new and existing buildings toelectrictechnologiesisjustasimportant.SCEprovidesservicesandsupportforcustomerstominimizetheenvironmental footprint of their homes andbusinesses.Currently,buildingelectrificationreducesGHGemissionsbyupto60%inhomesthatwouldotherwisebefueledbynaturalgas.Aselectricitygetscleaner,GHGemissionswillbereducedevenfurther.
Policy Changes Aswellasprovidingproductsandservicesanddeployingprogramsandinfrastructuretohelpcustomerselectrifytheirvehiclesandbuildings,wealsoworkwithfederalagencies,statepolicymakersandlocalgovernmentstodevelopnewpoliciestoadvancetransportationandbuildingelectrification.Thisincludesadvocatingforincentivestosupportcustomeradoption and supporting the state of California’s nation-leading zero-emissionvehicleregulations,whicharecriticaltoacceleratingtheelectricvehiclemarket.Wearealsoworkingtoaccelerateinfrastructuredeploymentbypursuingregulatoryprocessimprovements through the CPUC OIRtoContinuetheDevelopmentofRatesandInfrastructureforVehicleElectrification (DRIVE).
SCEhassimilarlyhadanactiveroleinshapinganewBuildingDecarbonization(BD)OIRattheCPUC.TheBDOIR,includesinitsscopepilotsthatsupportresidentialnewconstructionandmarketdevelopmentinitiativesforspaceandwaterheating.Theproceedingwillalsolookatanewpolicyframeworkfordecarbonizingbuildingsandpilotsfornew
constructioninfire-damagedareas,aswellascoordinatingbuildingcodesandstandardsforreducingGHGemissions.
SCEalsoworkstoadvance“reachcodes,”orlocalbuildingenergycodes,inCalifornia.WhiletheCEC’senergyefficiencystandards(“Title24”)settheminimumefficiencyrequirementsfornewbuildings,localjurisdictionshavethe
INDUCTION EQUIPMENT LENDING THROUGH SCE’S FOODSERVICE TECHNOLOGY CENTER SCE’sFoodserviceTechnologyCentershowcasesthelatestenergy-efficientcommercialfoodserviceequipmentandtechnologies.Thecenterletscustomers“test-drive”leadingmanufacturers’equipmentbeforebuying.Italsofeaturesaone-of-a-kinddemonstrationkitchenwithfreeworkshopsonthingslikekitchenlighting,all-electricinductioncooking,andothertechnologiesthatcansaveenergyandreduceutilitybills.
In2019,SCErolledoutitsfirstTableTopInductionRangeLendingProgram.Bothresidentialandbusinesscustomerscanborrowandtesttheequipment.
opportunity for establishing even more stringentrequirementsthroughreachcodes.In2019,SCEworkedwiththeCityofSantaMonicatopassan“All-Electric-Preferred”reachcode,whichincentivizesall-electricbuildingsbyrequiringmixed-fuelbuildings,includingthosefueledbynaturalgas,toexceedTitle24energy-efficiencystandardsby5–10%.
Inadditiontotheenergysavings,inductioncookwareoffersprecisetemperaturesandisquicktoheat,yetcooltothetouch.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 26
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
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THE GRID OF THE FUTURE Theenergylandscapeischanging,andwe’rechallengingourselvestoreimaginethegridtoaddressthesechanges.As wemovetowardmorecarbon-freeenergyoptions,we’reupdatingourgridinfrastructuretokeepitsafe,resilientandcompatible.Systemupdatesareneededtoprocessincreasinginputsfromrenewable energy and distributed energy resources(DERs)suchasrooftopsolar,on-siteenergystorage,electricvehiclesandenergymanagementsystems.Atthesametime,climatechangeplacesnewandchangingdemandsonourentireelectricsystem,includingaccountingforincreasingaverageandextremetemperatures,changesinprecipitation,andsealevel rise.
SCEismeetingthesechallengesbymodernizingourdistributionsystem,leveragingincreasinglysophisticatedhardware and software to manage a complexandintelligentgrid.WearealsoempoweringandincentivizingcustomerstoadoptDERsbyconnectingthemto markets.
GRID OF THE FUTUREThe grid of the future supports high levels of carbon-free resources, integrates new technologies and services, and remains safe, reliable, affordable and resilient even as the climate continues to evolve. SCE is building it, proposing to invest more than $5 billion annually to create the grid that will enable a clean energy future.
Our Grid Modernization Program SCE’s Grid Modernization Program has three aims to ensure the grid is resilienttocopewithrapidlyevolvingenergy demands:
THE MODERN SUBSTATIONSubstationsarekeycomponentsoftheenergysystem,receivingelectricityfromtransmissionlinesandreducingthevoltagesoitiscompatiblewithwiringinhomesandbusinesses.Substationshave operated in virtually the same way forover100 years.
SCE is leading the way in modern substationdevelopment,researchingpossibilitiesforreplacingexistingtechnologieswithup-to-datecomputersoftware,virtualrelaysandfiber-opticcables.Thisresearch,whichwasrecognizedbytheU.S.DOEin2019,isbeingcarriedoutatSCE’sGridTechnologyCenter.SCEwasawardedagrantof$100,000throughthefirstElectricityIndustryTechnologyandPracticesInnovationChallenge Tier One goldprizetocontinueresearchandfurthergridmodernizationefforts.
• Enhancesystem reliability on poorly performingcircuitsandcircuitswithhighpenetrationofDERs
• Supportcustomerchoiceanduseofcarbon-freeenergytechnologies
• HelpCaliforniameetitscleanenergy goals
SCE’sGridTechnologyCenterinWestminister,Calif.
EDISON INTERNATIONAL 2019 SUSTAINABILITY REPORT INTRODUCTION
PROTECTING THE ENVIRONMENT APPENDIX 27
SERVING OUR CUSTOMERS
SUPPORTING OUR COMMUNITIES
GOVERNANCE WITH INTEGRITY
DEDICATED TO EACH OTHERCOVID-19
ACCELERATING A CLEAN ENERGY FUTURE
https://www.energy.gov/articles/us-department-energy-announces-inaugural-electricity-industry-technology-and-practiceshttps://www.energy.gov/articles/us-department-energy-announces-inaugural-electricity-industry-technology-and-practices
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PROJECTED GROWTH OF SELECT BEHIND-THE-METER DERs IN SCE’S SERVICE AREA
Advanced Grid Management Historically,thepowersystemhasbeenone-directional,movingelectricityfromutilitytocustomer.SCEiscontinuingtotransforminfrastructureandoperationstocreateatwo-directionalsystem,enablingDERownerstosupplycarbon-freeenergybacktothegrid.
DERs Connected to Markets IntegratingDERsintothedistributionsystemdoesn’tjustbenefitDERownersbuteveryoneconnectedtothegrid.WhencustomersadoptDERs,theybecomesuppliers,sellingsurpluspowerandenergystoragecapacitybackto SCE.
Deliveringthisenergyattherighttime,andintherightareas,canreducetheneedforcapitalupgrades,cuttinginfrastructurecostsandincreasingsystemefficiencyoverall.
UseofDERsisincreasing.In2019,SCEinterconnectedanaverageof4,013solarinstallationstothegrideachmonth,anincreaseofapproximately8%year-over-year.Theuseofbehind-the-meterenergystoragegrewevenmorerapidly –increasingby59%year-over-yearcomparedto2018.Topromoteadoption,SCEoffersincentivestomaximize customerb