PG&E (PCG) 23 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to the PG&E Corporation Fourth Quarter 2022 Earnings Release. Today's call is being recorded. [Operator Instructions]. I would now like to turn the call over to Jonathan Arnold. Please go ahead.

thank Year-end joining XXXX and Fourth for everyone, and Quarter Earnings morning, you us for PG&E's Good Call. Officer. President With Chief us Chief Vice Executive Poppe, Financial and Officer; and today Chris Foster, are Patti Executive

with We also have our members of headquarters. us team the Oakland in leadership other here

forward-looking available results. First, are These remind include based today's to outlook our on discussion that should about for currently management. statements I will information you statements future financial

financial could and Some described results call of actual factors the of are quarter that the fourth affect presentation. the full page second on company's important earnings today's year

The you along presentation which a with to morning. report on review non-GAAP We for found between slides, information, financial this relevant investor.pgecorp.com. and be our year XXXX, can annual GAAP also XX, includes XX-K ended December other online was Form the encourage measures. the earlier also And released at reconciliation would

to Poppe. to it's over hand my call with And pleasure that, the Patti CEO, our

morning, you Thank a Jonathan. I for busy earnings and is what on Good know you, us morning. joining everyone, thank

full see reported this year guidance. was PG&E No plan. second on X, delivered core more, per results XXXX right on morning, with Slide This my of we less. no on with you'll share, earnings As $X.XX year

to to. we As I like so have details say, sweat you don't the

our affordable simple, you, to commitment our on our model year. investors, deliver Our is and and designed for to work customers each every maximize

XX% in targets our XX% for at X% longer-term and at to from XX% XXXX We're for up $X.XX, and as of stated $X.XX with at growth XXXX EPS previously midpoint, reaffirming EPS of XXXX core was along the Our 'XX. least range $X.XX our XXXX EPS 'XX also guidance least planned. up

new unchanged Also our plan no equity through for XXXX. is

million capital As efficiency and we ongoing for our of EPS robust by investment sector-leading growth gains you the the Californians supported benefit serve. XX is know,

our the system in XXXX, of capital our into of billion fact, benefit In $X.X customers. for we invested

part we and in financial simple, safer model continue want businesses possible. you, safer, day. I been faced real outlook and most thank today's never has making our to very underpins every uncertain inflationary in despite your the by economic today it The to system reiterating Our in make that for environment. challenges confidence investors, our affordable our

Turning progress financial to made Slide We've physical strong and X. risk. mitigating

wildfire here points. So to XXXX are Setting. relative burned X saw of XX% Safety Powerline average the some implementation acres of high reduction we On in a mitigation, directly the before Enhanced years in

system conditions. the with storms, last levels series were historic to January, in As our put the from quarter, truly And summer PG&E we team. we was test able to with were met heat of reported navigate performance again which winter successfully extreme of unprecedented an

physical delivered guidance addressing financial well have backdrop cost ahead us This year challenging non-fuel in earnings most face careers. of was our risks, the O&M of reductions was for as XXXX mitigation. our to plan addition seen many our a achieved in inflationary In We of and net was of risk the big X% our as inflation. X% of

We we and vegetation for our and summer and the policymakers with $X.X out removing safety they delivering in greater plans both while view undergrounding management XX-year neutral plant. In while beneficial trust life nuclear as our the Diablo are constructive We evidence as undergrounding to power day of building the our GRC, of expense, legislation passed customers our extend keeping Canyon California over closed stakeholders. to day securitization we rate-neutral cost customers. with worked added supporting long-term and billion our

shift proceedings about the last relative terms year. for estimate through We was On and removes X.X of a to of the of appreciate Metering front, regulatory XXXX savings, Energy in win CPUC cost customer the NEM it XXXX cost resolving decision we customers. both XXXX Net the And X.X. $X capital billion

X, is hometowns, the response. storm for numbers this best when more I Slide test. put to want are coworkers on some than highlights to emphasize and story we our their that delivering January was On about our us at historic our a on show page. This

hit we PG&E online the million During during X January historic through to restored by of team around our dedicated waves we mobilized, multiple river including first had each events. and X and in contingent XX storms, of top back-to-back of atmospheric over those storm weeks XX% of the states. history XX from XXXX, X,XXX ranked personnel resources the as electric X.X have back-to-back customers largest outages, back involved hours ever within

our and system scores speed Services, management skill and the other compared partners. And outages. aligning safety system. them. public California's us to center training partners with We've of command we've with emergency our the couldn't Office prouder support storm-related Emergency our team prior and satisfaction be and each resulted first seeing protecting of adopted in hometown, also and standardized the and tenacity, emergency Internet response of of strength The with improved of staff When we from customer responder been serving acted and came, an army our our time also

Public warned, our X, risk, our protection Enhanced vegetation Shutoffs. we Safety against supplement wildfire recap Settings Slide hardening, system layers Power which inspections repairs. management, our core Safety and and of When Powerline these On start our I'll with conditions with

voltage technology XX%. responders, to including risk our technology as miles expect program. undergrounding X,XXX protection, we to keep awareness coordination risk reduction down to remaining continue improved increase meantime, partial XXXX, innovative since the such delivering conductor as new XX,XXX-mile already reducing these more pursue we overall for We've and and we that further In detection We as reduction. solutions look first than our overall with of and XX% layers over hardened calculate wildfire situational

at RX XXXX ignitions times from to Historical XXXX the the were higher. Slide were of On take XX% X, a implemented look EPSS, conditions that performance. mitigation before when of at acres at XXXX, and our burned we closer data show to that's wildfire we structures XXX% related risk or

the saw a bring for reduction still more acres events didn't this were in in or in by XX% that we increase, XXXX fortunate Despite year, of wind the XXXX. same days utility significant of RX higher impacted XX% to significant the time period. over were number XXXX ignitions than there we While XXXX

Slide make X investment. affordable room for simple, illustrates includes efficiency which driving customer our to model,

You've heard us the system a lot about basic talk lean X operating plays. our and

elimination. deliver In and a rolling to to customers fifth waste plans out favorite, key both my XXXX, we're play, investors. personal this continuing we for as see our And

bill is laser-focused supply including top which constraint the energy savings, at our are primary we entire team costs, which know customer ownership Carla The for we customer mind. established Peterman. looking bill on through Our of by newly center is led affordability, are whole

lot the make We have can improve of reducing and a cleaner resilient for waste, all our opportunity more do customers' less. system We cost. more while to experience, eliminate our

The examples keep up. piling

So I felt I needed to the my story bring month. of back

we month's doing improve are work about new go. to This efficiency our is So business we story area. here in

Presently, connections take start our new customer too to long from finish.

told recently can, group do I will builders, California we better. a and we of As

In elimination. our system, lean perfect application for fact, waste it's another operating and specifically,

the The points. we to share to do we improving thinking rapid time can the our to our And the team rework, hook design and redesign and conducted waste, dramatically, ability up path the can in delays taking pain We frustration, prototyping, to down the both us work and with eliminate. the time. come through workshop. invited a time in their processes and builders see on cycle the our developers Imagine less

we time of the engineering that the We before of much variety and is do connection sees day. it challenge will up light for be we much when talented reasons. end money, requests work XX% One and canceled too today both it also used. even being are demoralizing our wastes of their new is receive for This of engineers never a sure

into dramatically just can customers. new the where of the free with spent. resources that, show our to are more every customers and more we doing reinvest improve how We system. up is This delivering areas for by time dollar And one we we for can up back

Now enabling prosperity. call California's that's I what

X. Slide to Turning

in this the year. You XXXX, early we how may we chart, headwinds in which and XXXX. recognize shows faced In executed XXXX

put then part the of recovery Our is ahead This we're playbook plan. at work PG&E. us running now of all

And protecting game. cases, redeploy pulling of the protecting will many and means future conservatively, remain the downside. we upside, we in there's plan years. for which, and customers, forward benefit We of nimble, work the when it name investors Consistency from the is

out play it see faced headwinds, possible cost in can XXXX. a including reset. capital again You We of

and of our We we're pressures, again though, to and have and planned growth. conservatively, XX% still allowing behalf this on offset EPS to deliver than us other customers able redeploy more

look to growth affordable in view we on and the manage consistently future more earnings to with will less. business years And we our Employing our simple, favorability no the consistent customers targets, plan deliver trajectory. of behalf and to delivering the no when we can, model, and redeploy a derisk work

happens?" of we a Lots can learned. me, that capability the if "Patti, what PG&E. taught say This conditions. It's nimble if have to challenging changing people be and is may, capability what that happens adapt we what what manage Come those to to and this be and at or

many roller coaster we times, you said so I've As ride don't the have to.

expect this see XXXX can and beyond. to in more You of

XX. Slide to Moving

as invest can in customers. stability policymakers with necessary made on we trust our attract of capital continue creating see behalf XXXX to progress while to we build the to on the You journey

approach part for million settlement of resolution as support intervenous savings $XXX Rate the our Already, and to with importantly, result enjoys the as period GRC XXXX. This of reached over in with General can expedited XXXX, in customers Case. in of we're billion innovative $X.X pleased up expected X-year self-insurance much as most our

I on benefits number work toward for to continue but more slide. in PG&E. catalysts we want We'll a constructive have our conservatively plan And the marks check on forward you'll this we California. you I green and customers here bets blue also the of We see remind important and contain outcomes, even horizon. do at look of day to items continue every important as timely that here big to to don't Each for X seeing

Turning Slide XX. to

report at card. look a XXXX take Let's our

available the the cause of not miss more. acres our within us serious injuries or any goal fire liability to result it in While of CPUC did did XXX estimated well reportable X is and material admissions our insurance,

chose last the replacements. target. to And We maximize put gas to redirect XXX exceeding main miles plans investment our capital reduction of our lines for changed underground year, we year, which risk XXX-mile during

offsetting by to net X%. pressure. and X% of and and reduction, years maximizing inflationary cost ahead our plenty O&M of O&M that inflation annual X% delivering We our for investors. many reduction Yes, of see smarter customers savings for net is working exceeded net continue We potential value

on our rate GRC right base cycle. plan in growth at we year XX%, what final in was came while EPS the delivered Core of X%

month. this Lastly, our revised in earlier when our risk and improving we mitigating outlook significant were progress on pleased recognized state that they to credit relationships Moody's the positive

we we One and lines it's for future one events a Slide of up investor card. mitigation our a to metric, This that think wildfire where X headline resulting and our with measure On wildfires. catastrophic introduced XXXX sticking plans, change for real our XX, OEIS a wildfire of capturing report we're significance both a from is with and key are perspective. better metric target customer new

committed plan our XX-year unit remain year We undergrounding to and details. We'll more achieving cost goal our to filing with XX,XXX-mile later targets. this our be

long-term Our X% to and visibility another XXXX. there as previous shouldn't give XXXX, be CapEx through rate our changes our to our either, any we more are be a look plan you O&M adding and We're into to base financial reduction excited to no year, plan. targets surprise of

you headline XXXX XXXX. we X-year forward actuals and really based X.X% we it's and We're look CAGR to the now Our remains feeling in through but again off good what XXXX. runs accomplished XXXX, for base same, rate in delivering about of

I'll that, over will our financial more regulatory hand and in Chris, With detail. to discuss who items

good and morning, Patti, you, Thank everyone.

full mentioned, or completed As growth XXXX and at XXXX our $X.XX year equity. We're issuing no earnings the XXXX. in and our this the EPS year for also reaffirming without our year, commitments Patti guidance financial delivered landing to to equity in XXXX XXXX we commitment

XXXX some results few how to updates affordable provide with start, updates you. I'll our and To have drivers. our drivers on financial This delivering now model. I'll guidance against the review morning, a recap of we're share our XXXX simple, I

I'll few legislative provide Lastly, highlights regulatory, items. a on legal and

XX. Slide on start Let's

deploy other and in our the pulling savings in capital to and $X.XX We customers see system target year. full the navigate walk, earnings $X.XX work our forward ups the downs for for some year core to during were in achieved from allowed sound year. $X.XX and non-GAAP diluted reductions. share This years decisions can deliver us future cost the resources you As year and in financial for on right by customer from earned our investments making per

quarter, investment XXXX. X/X substantial shown as on the higher X/X planned have our almost last for Slide planning rolled years the years. than plan, to this we're customer orange, we X On in And spend about capital X We in risk prior forward enterprise. X-year as include XX, of the our you we to across showed next reduction in

includes to first. highest pipeline replacement prioritize work addressing risk. This approach risk We and to and risk-based system customer-centric spend, critical a the use hardening, other work our capital reducing

flow drives are We capital on operations. customer bill. This that fixes, work also to repairs able per earnings over When improve cash share also from ratio and focused permanent in our ratio time. headroom improves important we growth create were expense and in improving the temporary to our system instead do of our we

of of intend in plan. the investment on we've We work some headroom of identified bring billion to you And $X into side slide, the spending plan on not opportunity can to right-hand yet over the would this create customer-focused as as bill. incremental customer the see we the

focus our lean, using reduction risk including every can waste model, of spent our simple, on And affordable customer for deliver more dollar because elimination. we

XX.X%. investment-grade over progress our slide. metric substantial to Case XXXX, Rate pending to as We ended progress on to XX.X% General at plan, XXXX the XXXX ratings, we our seen in opportunities good our landed on on a you've and some continue capital FFO debt about Given card to our focus show we in at report where there showed intend our return

with extreme Slide came rates, of yet, spikes, XX. incredible. of year natural own early year work storms shortages, as an And to range. XXXX inflation, gas targeted last to overcame. to we found mentioned, to Patti saw supply And was teams the challenges respond rising the heat, and plan. We we set interest the ways on late chain unprecedented that Moving stay historic price this

for why investors, for we're affordable of so model. That's customers our proud and are simple, what delivering our you, we using

We on and are you know affordability laser-focused too. are,

So into model. the let's dig little a further

the and Through delivering reduction capabilities and reduction And X% lean exceed despite we XXXX. targeted we're a our series those in we of O&M savings good building, XXXX, decisions a use inflation. able to customers to derisk business X% non-fuel were serve

We costs saw customers strategic significant savings unit management to vegetation driven by improvements few for changes. due in in a

pricing supports warranties of structure new improving the model and a contractor accountability while implemented a we First, consistent and rework. integration that for work oversight

XX Then reduced plan. repeat meeting controls should hometowns to a were XX, and This commitments. our for our new all we customer to also to lower better implemented regionalized while subcontracting in deliver from counts visits There contractor build work predictable experience. stable and cost a our still and result

realize million saved the in XXXX Through we costs plan work delivering still and in relative around these we've quality. $XXX improved units efforts, base while budget. to million this expect in with vegetation cost in And to $XXX year savings over safety the management

mile, a million $X target at below customers unit achieved well from we opportunity ago. over few more undergrounding the XXXX, there's cost baseline And Day million and shared the for Investor per of ahead. just average in Also years an $X.XX

to savings find card, or As customers ratio, non-fuel self-insurance getting We're you settlement. better from started X% our capital just for as through our finding working such stakeholders customers, our report saw cost whether remains savings waste with it processes expense annual our to our in improving be our for eliminating our solutions O&M target.

to aggressively in which continued inflationary And deliver XXXX column, as cost efficiencies reduction, are plan pressures. you the non-fuel continuing O&M can annual our X% assumes see we XXXX pursue to to similar

a been reduction this West on experiencing moment our higher prices of a to O&M last excludes winter natural result to the as reflect to largely winter, want the have Coast. bills take While fuel, customers compared X% higher gas experienced our target I across

capacity interstate our during support and that To diversified to procurement the going partnership pipeline hedging. series includes state we've basins, through price well storage further save and strategies $X the was natural including reaching our supply gas policymakers. Collectively, been customers, portfolio after back run-ups thoughtful relief federal regulators with winter, billion over a financial bill gas the in and able a to in of team customers measures,

put timing our combination would credit, in electric accelerated supporting of which example pockets be customer. back gas of average should One the over climate annual the $XX the and

Let's move top to XX. the of Slide

own getting regulatory saw Performance you better through we're on better and XXXX, power, serving we're delivering and our As commitments our operational outcomes we financial customers and day. is because our performance. every

the decided CPUC leaving capital cost our Our of XXXX QX, was by ROE in unchanged. XXXX

of further the We applies providing our XXXX. approved ROE also scheduled, received as decision as a through in certainty cost XXXX XX% final capital

requested, as over X as customers markets us wildlife least month, it XXXX. saving the billion insurance CPUC We to costly up avoid insurance decision settlement. allows commercial procuring self-insurance the this to the Last our next years, $X.X appreciate approved through from at

We also help the the third streamline filed case procedurally the schedule in GRC, the a in quarter. final a with Track decision for X calling settlement which should

a the Generation process for proposed the Our November. than of schedule was that end moving later released a application Pacific through no with is CPUC calling decision

get financial could mean resulting the don't a meaningful final the to until in don't change this in a plan. While schedule decision XXXX, set scoping we we forth our see memo,

accelerate continue benefit and equity contributions realized the efficiently a raise that sale credit opportunity to to needed customers an the customer solution tax We trust. as to through benefits, view which

$X.X XXXX, on pleased Moving and recovery progress to were wildfire-related report balance billion. we net cost The additional billion, now $X.X authorized is I'm to cost unresolved several recovery. collect In approximately to proceedings.

costs with rates. into is First, now those WMCE moving our XXXX final,

our settled in from management all vegetation our the cost Second, account. WMCE elements we XXXX apart balancing resolving

motion a requesting interim and our Additionally, XXXX application rate we filed WMCE relief.

Energy X for federal funding legislation passed XXXX. in and eligible are through Diablo progressing total Canyon billion. next November, is $X.X this of the Civil Finally, steps Program key awarded slide, of the of the Department Nuclear Credit In through confirmed on of conditionally a pieces we

month which new NRC procedural. March the with for continued end respond as We year. expect to NRC to staff view decision beyond date. the new the working waiver And the to require expiration last license allow will file outset. a parallel on We're I application has planning NRC of been operating note from staff approach request, a this in the our operation to applications our team our of current units before the that

legacy resolving our Lastly, on claims. X notes on progress legal

a joint settlement we this fire. of the resolving filed First, for SED investigation into Zogg their with week, the motion reached a approval

We operator, were $XX million agreed recovery system to assert, going penalty we fund. will the invested to X continue on state enhancements a to with forgo a general be cost we've which years prudent in and $XXX future to primarily over million, X

Second, the for to we've Dixie million remind fire, fire the quarter, associated wildfire continue the that million accrual fire. for Kincade our well you made third-party offsetting million book $XX Zogg for for is available some I'll Zogg insurance. the and to fire. with our for receivables the for modest we accruals loss And including accrual within our Dixie the $XX increases claims this fire $XX

claims, Dixie and settle we've individual with through agreements we the reached to For fire, process including claims the continue counties. to claims to fairly fast cities resolve and mediation. our And work

consideration agenda we have as goals and relentlessly we We well right committed make our customers climate for a where these to CPUC, safety serve. the we allow work as with has recognize achieve perform continuing constructive the California's for all we In well. regulatory outcomes leadership. to communities and commission's of to the processes regulatory it reliability that California and appreciate busy as we and legislative cases, established advancing thoughtful remain to we

you take regulation, remind we to some have California gas this outside of I both on electric. decoupling Part Here that due constructive of XX, to control. Slide limited to our key for moment including is variables relatively to want and sensitivity a

a with Four recovery timely and capital a of elements provide X-year for collection, General X-year formulaic commodity cash Case Rate cycle. cost cycle

policymakers. model initiative risk as our expect regulators we bill, and our regulatory to we're and build on focus Additionally, financial the and which customers, trust simple, we the our affordable to taking mitigate further continue through with

Slide to XX. Moving

this progressing stock are towards dividend meeting later year. the common eligibility We threshold

As before since XXXX. billion need our the quarter so non-GAAP first XX, a starting will to dividend, from we $X.X declaring third reminder, Chapter a a cumulative of core earnings in emergence report from

still in For we adjusted this plan eligibility XXXX, our expect around purpose, means non-GAAP reach items GAAP core to as of certain non-core specified for midyear. step earnings And reorganization. earnings into we

currently the remains shows eligibility this during quarter, timing Our reaching third plan including subject the although decisions. regulatory to of us assumptions,

regardless Regarding to of Board a our eventual we over plan with in small recommend initially, to timing, policy, I'll dividend growth remind that the feathering time. start that we you

XX, that by to here going forward, our target wrap XXXX, in XX, EPS And we met emphasizing no continue more we least growth and X. I'll at reiterate XX% no less. X,

And with I'll that, Patti. to back hand it

Thank you, Chris.

lot made progress we've Let in we close me yet, away a XXXX. long being are by emphasizing of done. from And

we have more the plenty you to write XXXX and in for in forward the as We continue to look PG&E to story. beyond next chapter

Investor investment For of and a investors XXXX our XX share Day for still you our we site financial in in around those longer-term XX. more and May details County excited on consider opportunities. look, Area and We're Napa joining by Bay our us our on of hope taking followed undergrounding in May to visits plan the current you'll California for

some show you the can't technology about to of our you. with chance And roll wait and of progress from our sleeves to some We to stakeholders. our key you. reduction California tools risk also We'll our give hear up we'll see

please the lines And with operator, that, for questions. open

our with take Shar from We'll first question Instructions]. [Operator Guggenheim. Pourreza

Just real Patti. quick,

process feel there comments, equity an of resolution this form In partial some via framework settlement I maybe around a stakeholder establishing list the expedited the the early obviously, narrowed and move down of could you this settlement, along CPUC Gen sale, terms guess faster? been mean, issues be and process I and do to year. some there's some Pac

for Pac customers. a -- efficient clear this, feel like again, been solution. Gen pretty as we've the sale financing really is Shar, It's good we very Yes, option about a

time feel commission has made case, to we we the a input that really do and overly to give we in good that little to about Though a be like from them the and might take a feel lot We review. the ambitious. appropriate potential. we've want of stakeholders, know Expedited great

And that you -- or sale that inclusive the out mid- credit us, put then of target. a not? just Is remind Pac teens equity to metric obviously, guys high is Gen

true. Pac plan at by does broadly the The teens include Shar, can proceeds to And XXXX more going Gen. from base on GRC. the we debt, of consistent the to imagine, had the are FFO you that's on probably view look as to as mid- high kind we've real drivers there be

ago, the we recoveries that just got bit You've obviously, touched CapEx underlying on as wildfire well. little a and then profile

So high really think to we're for behind at I the looking as would there mid- what about drivers teens. those

instance, $XXX And it. really to that able on you a and is like which the But let's in into good is now. some going there's and that to play Patti, for the just modest, are does approval deferrals right? over key one like, this of been bill obviously, kind the of be pending of call have for offsets I mean, right guess Got sort how I plan, message. of lastly, guys levers million you still then say, is messages utilize impact the equation? that just But

I of say would things. a Thanks, Yes. Shar. couple

are people cost doing as we're feeling the First, there's bill country think with what impact pressure and commodity I there. the across near-term

for cost term, to impact. range. the near and we've more to, obviously like the the And feel and kudos pulling for into California good well customers ahead commodity normal back credit down seen, is customers, in job, As bodes commodity And that. that about state Chris others, offset a we call, good commission mentioned for the on climate really the the the did

think necessary about at the customers, for is But so longer simple, why as work of here model is affordable term, the this I we think all PG&E important.

corrective were Band-Aid our doing long replacements customers For asking been the investments time, permanent a and have climate-resilient infrastructure not we doing for.

to our so important. those capital why That's enable undergrounding our reduce expense to visibility we've to much because infrastructure our expense, in investments given improve That's us that plan why ratio. capital is plan, so the capital

Our inflation, on team's offset X% O&M X% investments climate-resilient this for headroom and that That's we that. in the year, to of that's the capability just deliver our to inflation delivery make savings necessary still after of of top expenses truly then infrastructure. the in this reduce and beginnings factored

This is a to we then offset here out customers both by these at savings legacy model costs PG&E in benefit be as they starting And those play too that layer from their will that is delivering. will really cost that affordability. we're

elimination really so customer theme a do at affordable less year, people And this at employing and the And the is waste model what teaching cost PG&E. excited here be to experience lower for simple, making how is better actually it our more delivers. we're to

Fleishman We'll take our with Steve next question from Wolfe.

you're you is you those absolute my basically think Patti, are -- answered just inflation, which I the first costs. that question, So of the when talk about O&M saying net costs,

your last X% were was X%, X%, year, up your was X%. -- inflation O&M costs down though even So

this of business. what's proud the about new work we're did, That's of for started, the Steve. our I'm that about Yes, they so we're and proud and team story getting of month just waste elimination Steve. and hard the And that, the exciting

doing long much waste super our that hungry them. opportunity just -- elimination learn. of proud new efforts. to and was highlighting our the And other our is in team so so I'm actually team so is the day time, smiling learning business waste people they're learn work, There fast. that center was where in they're actually a reduce I'm have here, they the the we're really more cost are to need in of while tools. and to techniques first these the because People team. proud fact, time realizing for can, I

that's part elimination like X%? Or that's X%? just is waste the to of the costs think incremental we the of of Should part -- achieving O&M of or

enables Well, deliver and definitely inflationary it X% to the all pressures. us that

call plus inflation it's we X%, it So but X%.

the again, we reduce what capacity that's the as to still turn inflation that the at us, ups I talk can waste so have waste to plus. we deliver and team this come about, downs that X% build that absorb delivers. into roller coaster And on And that, elimination and is capability that and

to And you or Okay. like GRC, is And either schedule for maybe overall? the talk of to partial any insurance on likely the case opportunities the that? just could to there further that settle then be the provisions

Yes.

the it to is insurance 'XX. settlement and those the deploy hit not parts and option stage in juncture. savings we've here So settled We've for get that settled was valuable where early customers pieces at really because an like so this

know we And lot so the the to know for we that third we've follow been final customers. proposed but we're out, ability on in And of investment customers the and as the deploy has the plate, and that for laid that this important timetable quarter. is decision has a of all commission about talking rate our really a benefit we decision infrastructure commission their looking the also that case to

So to commission schedule laid we has the that maintain out. expect the timing

Great. again, then color lastly, the from ask trustee have remaining and on any payments pace -- of of I just Okay. sales? And just timing fire to just their victim color kind of new stock

interest anything know is Yes. our No, really haven't delivering fire the aligned safety for new. with customers. We of that victim's trust we heard

in them to victims As that provide trust. the that the company succeeds, for it enables are included

front. that but -- And timing on no information so new on

next take Bank from Dumoulin-Smith We'll with of our question America. Julien

base about or commenting first up 'XX. know it kick CAGR to I on I XX% had XXXX, rate rolled forward the wanted related to the question you you in on held this X% know I Listen, X.X% guys EPS. at past. back on conversation a

'XX appreciate do EPS timeline the just EPS current But how question, you that and means you forward of the about the if what for growth and rolling clearly. 'XX. as I bifurcated also the CAGR asking GRC very that You will? well, think

the have think abundant investment customers. we is benefit I -- of that I Julien, how opportunity think about XXXX for Yes. the

So pretty at X, least least at XX, XX, at transparent at X. with we've least least been our

that on on do but the enable continue too is to cost for going they've trajectory, infrastructure investment need to -- customers investment that our waiting enables We're that much to cost customers that mix by have that affordability. EPS capital we to our growth savings burdening the been without plan long-term the that on we and focus best developing continue

customers. our plan cost are eyes long-term lowest on at a the investment our So for definitely possible infrastructure

would and between perhaps over GRC bias closer Right. EPS, than of imagine, base to the rate a given XX? kind X growth I time, trajectories seems also, the normalization and the of

see, just to have we're Julien. Well, going to

Fair enough. enough. Fair

derisking obviously physically thinking investments about customers. our those mostly and lot making system We're for a necessary

on mentioned tailwinds? growth the since it X% of your perspectives and you story, you trending the the Where your very of was I to we're of load pent-up within you that delays may prepared these relevant to of those not Patti, get are this are Listen, transportation what on you're that kind I if X%? will. some that given electrification yet, seeing. to appreciate where can you Understood. thought interconnection remarks realized overall, in trending that load interconnections And you Absolutely. I'm But actually, because been into also comment X% maybe maybe given X%. some curious on hearing. have growth feedback prospectively, But some figures the that against

Yes.

plan our we the we've As than growth. end said, looking back front low are load the time, more over toward but at growth of we're seeing X% end, to X%

cut XX%. presses, EVs, XXXX we service sales of off in Julien, fact, in area new In were had vehicle our the all XX%

I a that's in surprising XX% think That's from number. up XXXX.

evolution EV service our is in in the happening definitely California and So area. definitely happening

penetration. XX% was EV We state XXXX. were the fact, XX% in In

growth. that in all bullish the to on are very say, So EV we role load

Every EV a house. is half like

new potential. is definitely There EVs So household in area. growth other our equals a in load service words, X

more forecasts get out Our as big you're -- we a capacity have our bus. customers that. to fleets building and industrial reflect And really good for right, this electrify, at residential school

the was buses their And bus that I in is planning is school in week. to just we electric fact, in -- buses include and electric Schools last a megawatt, of school Oakland school fleet. Public one were So just

to in are sure for opportunity hometown, making be they're our that ready, going we here So that's all us.

so ahead have is a dynamic work as that our in capacity fact, where investment, it be And prepare we customers. regulators, pretty we making regulatory environment for for we sure can, with that of exciting

we but the growth exciting to we're forecasted investment, the coming with that's that real for see and in us. years, so interconnection, And continuing track

Credit We'll Suisse. Campanella from Nicholas next take our with question

wanted undergrounding. to I the hit

done XXX you've miles now. about So

plan soon, have You of also that's the but you be this changed GRC. XX-year to going filed kind

the in an might was of underground have there intra-quarter think removed capital. I some which update,

learned? more about goal pressures kind you seeing GRC? on think the -- seeing can to first, this higher program, the miles with progressed do just ability since you we kind of how then comment cost? of are And lessons guess, you've from Or efficiencies I hit So just second, through X,XXX in are roughly you shift your for in the

Great question.

important for Of about everyone. a clarifications undergrounding And of course, just we're plan. our excited very good couple

conversations of as reduced mileage we result our stakeholders. one, a our with key Number

We the that to do have earn to underground. right

can, to prove we've in we unit at it do cost that the have described. fact, that We

XXX in had lower at was a report miles the to we unit cost than we XXXX, delivered Happy forecasted.

program just team is started will getting really efficiency. having we're the deliver unit the and on improving of and scope that we're So the that forecasting. feel costs consistently like And scale definitely I

to big important bet. less plan. mileage that, The later undergrounding they year, targets. And undergrounding Our a comes it's unit this capital clarify will with flexible going It make from is a XX% is XX-year regulators also we remind a and I to risk undergrounding satisfaction, dynamic is and plan be sure to customer a this do not out at that everyone look, nature. very pace We're cost want and stakeholders those program that and program but support. our total working and our in that than reduction of

right year over miles time, going that's after over those grow I remind It's beloved, to our have to earn year. to what time, and to beloved. and built and It going be. myself, program it's was the in Gate after wasn't be we to going it's year year. the And a is undergrounding Golden built built Bridge be

program structure doing very real mitigation management a And inspections. got well. delivered savings focused our that's set through so in up we're on wildfire vegetation that We've

leading undergrounding the The team is same leadership program.

So we're they to of expecting undergrounding big the program the helps. things team out I customers. that hope benefit as Peter from our and build

comes the I'm it plan Absolutely. to see excited together as here.

the metrics to right time, the it quick is get because outlook, another What from are fire credit are now? does going more getting metrics-based Is here guess, season the side. in Moody's. just or Congrats looking it agencies the direction. of for I like on what question positive to on it the back So a your IG understanding, guess, seem I is more

really reaffirmed metrics this look already Nick, I thing. we really that at are our as Sure in financial them it's think too that in -- Moody's investment-grade territory.

shared So I physical we're progress really think making. agencies, is really emphasis the their risk reduction on the across

in Patti think desire I of results our data policymakers. and the And hit then Enhanced Settings it's see the to the and points progress just also continued clear that year-over-year Safety Powerline improvements delivers. our with

that of extension want Last programs, program progress the year, made Diablo I to both Pacific terms continue recoveries And there across be General Canyon Case operating CPUC, on we life certainly Generation that clearly progress wildfire-related well. undergrounding And at just we Rate new customer-friendly the some our as as year. key CPUC this policy. in could as filing and the at well the think the

Instructions]. David our take We'll Stanley. [Operator Arcaro next from Morgan question with

of of that milestones evaluate might the billion could timing out terms potentially I it elongating those Is the more there was of little to getting numbers speak runway we $X wondering some concrete the the upside transmission upside in you like you be here? as the are the a laid distribution. bit What around it of plan? X-year -- hit kind opportunities? opportunities, investment any And kind that you from CapEx of could could if CapEx that? track When

potential the The on to Thanks, David. capital sharing infrastructure Yes. share have is point that system. abundant demand upside that we just in

so ways offset on find costs. us it truly And to to is

can Everything order the potential then in customer to are investment the areas in bill that to is of enable that's for investment. that unrelated benefiting infrastructure bill that headroom we necessary reduce capital

over a we for about example, savings talked big for customers That's So time. this insurance settlement.

headroom additional pressuring customers' that enable the capital can bills. of That we would sort without creates be that thing

we a visibility invest. an we our later outcome It's Case. Now General capital more to provide That will this filed will commission what be from year. exactly important Rate That important. have to support

And this continue then we're demonstrate capacity. to to going elimination waste

start -- So our bills. regulators that capital way O&M to room that model that to that than approve enable we or dynamic deliver And in This affordable savings, to pressure if customer headroom, of is it's if additional investment find capital savings we other X% the simple, benefit in customers. we'll creates for additional work doesn't to customer the additional that savings action. greater the with deploy then

layered you're of that. mitigation current to that Okay. working in fire regard fire helpful. Understood. on that be you are they're right on programs? your now new And a that reduction of I with wondering components innovation risk could the terms technologies you're or risk of to That's broad. was wondering applications then lot risk I strategies, could to exploring was if There mitigation speak different

that glad out, XX. I'm at asked Well, and the join so Day we're May, you and us. to be have Investor in May because is on welcome to you call to our going We'd highlighting love XX everyone

conductor that program. are our which things utilizes partial development our technology. risk. voltage that service detection, smart the meter We've got technology are exciting of of down Some our line for We're pretty expanding the

last doing. and been great technology to some work our they've the breakthroughs had have advanced teams team all year. the in Our Kudos hard

a And out. firsthand you'll see when get to you come

our it's and innovation and of underpins it's incredible confidence PSPS technology, that what course, us And detail. to is whether really safe. capability EPSS science of throughout the year, us, it's dry, data hot, and heading lots building in whatever the environmental changing all and gives wet, understand conditions to cold, more So it's the we're our adapt it's those the to people infrastructure around keep conditions

the couldn't And proud and progress I we've made. team more be of the

and that Day here us. our see have on make progress, in at Investor to and on it we'll display continue May. out Come We

Tonet Jeremy our next with from JPMorgan take question Securities. We'll

on Sunderland Jeremy. It's actually Rich for

Just bit more one billion Curious are. CapEx those of bucket a what upside. possibilities quick total on around $X the follow-up little and the opportunities

be sized you're is over in to it $X larger a there billion, term? And you the to able may near really is working Just what you still fold that set through? for the opportunity think medium

affordability go. is second part constraint that affordable simple, Rich, we've happy opportunity our as overall mentioned, model, say would Patti first in customers, set. So on to I includes in take got for and mind which is it. always again, keep But take mind, a focus larger we as absolutely right? that that the there to keep

look us. were unique growth electrification what themselves, that As think we about really the earlier at we I for the opportunities is very mentioning

look investments. the we explicitly $X capacity-based at billion penetration EV opportunity out as opportunity call you that, us in so that And see

of we where that's we suburban those we're investments where can benefit targeted a EV need risk And pretty areas make the will wildfire that reduction, really that in see dramatic but seeing uptake. just not some communities for where also seeing you're

say, I there, increase start opportunity only as further would and the do we out. go the So medium to in come term

guess, last I EPS risk of, update. very forum the That's to be Understood. the that the through this Day the one growth at know And I was Analyst earlier. Would just running front address one then clear. XXXX? asked

Sure.

to intending I share you. out, have do give on think out insight on on and into more be capital longer-term plan offer that more to and see Come to to certainly at this you that We I'll come able time. plan. we'll But us.

Orrill Gregg from question next our take UBS. We'll with

extension Diablo we the process NRC be should in Canyon levels? for watching What in and state the

Canyon front. first to The an and do, safety will to standards. does all, for progress we progress really have continue and expectations continuing to that job is because safety them to we Diablo NRC take important want any Their making make should shortcuts. Well, on don't focus of meet be and look the that on we sure

them. work so And with we'll

a on an forward with to and That's the relicensing great working we with relationship the have process. them We NRC, important process. of the look part

that There's occurring. life state state extend governor our send other want everyone, suggest I Diablo we proceedings the plant. Canyon legislature having will we're wisdom to power several for the to of our be just to will and to recognition state-based gratitude some and our we and And remind regulatory --

the energy a is to of benefit all of GHG-free That nuclear baseload California. high-performing facility,

on make will working we we regulators closely all progress the definitely And that. that of be different sure to positive so make with

throughout continues that rest the of the so And year.

question next our take We'll with Ryan Levine from Citi.

Patti. interconnects playbook, changes to of couple then, past to play process? a the comments determine limited this resources? the hookup How you which the for has given in in like are the you any How to rate do around changed year? prioritize, questions A And cancellation at new looking

we've Look, we easier new California's our California different to here builders And Yes, to I've therefore, to in we're sessions They with. with with changes looking be business to a at the had power prosperity. power of and key couple a day got every do are them And housing. process. they California.

that tools And to and changes we we're about streamline much map them don't that find aligned it's to to and going do how very question that not. so new make them. with is made who simple really The we're away and we accelerated right have process. about and amazing to choices with energize we're energize And methods. who We're be process can our people faster working business see

us. And the so as of do all, going to customer project we've their not decides engineering. nothing do And I variety shared, with maybe they're the having after reasons, that done example of jobs, to for full canceled a these they get

a are just people the that doing we're upfront the estimate that they So the give that get engineering of engineering touch need we're jobs and ways only going to doing making sure on finished. lighter at to looking

get work time on going to builders are the huge us in and dollars. to done savings their the for it hours a that enables That's cost And finish projects.

that forward look this that And growth progress continuing and a to are business we've us, so both load capacity pretty and is made really the We new progress opportunities and order exciting short forward. in for very year demonstrating impressive.

I guess the in material when the you progress that get any I interconnected any have you quantifying how currency may be materiality you changes sense or customers been assumed in -- these color a I'm trying of noticed terms mean, the some have could to basis? of a Appreciate delays made go-forward your of around comments. share on between

you, California. capacity. There's mean, not in great. tell I seeing California. seeing People demand, feeling about a which I here I'm increased of in customers lot we're We're and is the exodus I growth of Yes. think it. building talking happening are can

also that we in to in And pointed substation vehicles of homes build requires additional is So capacity at but the I investments continuing opportunity California. we're spaces load. the level, to to additional a -- -- the broader see more obviously, electric forecast have transmission

up system eliminate the to here progress for what our our PG&E. and going we're with at provides our And It's that can PG&E. to And this have foundation and ability demand that here keep pretty lean operating the to so into that's waste meet we times visibility at demand. building our us, exciting

take We'll from question next Dolman. our Ladenburg with

that there should an the I update little sort I get a June. of you sort on that estimates found the you've long And bit view Great. be expect the much a could hoping to in final the guess were with, think how your in still begin decision if Is maybe liability reached of Zogg past, trial's in How terms proceeding? To could would in indicated we start of I liable? go was up before due to triple. trial. of liability the that

Thank you, Paul.

to the to don't First disasters we extraordinarily take them that safer system make want environmental heart of all of goes faster. and all, wildfires. everything These our reiterate on And that and can and fire we lightly. subject, I just are victims our the out we're the to painful, of Zogg doing

June that know matters. to say, not that are and time, -- criminals, All same date has X. my don't set the these the At believe criminal for we are I do trial been that we coworkers

we about expect weeks. to win. don't it And plan additional expect We X because we liabilities take to actually

faster. works the they have know in other And our coworkers, to and to ambition to no safer system team important that. management that it's think day vegetation do I than our out just day make and

So we position vigorously. our defend to plan

take but or... would year after that judge trial up weeks, take issuing the to a X the a So decision could

that Yes, people Paul, it's as hard keep to say. posted obviously We'll goes.

out you the In terms that into at or of go calculation? disallowed the the that rate interest, can utility disallowed -- base liabilities sort items that break of

it's work offline. the you on that with give can happy Paul, I to bill. actually Chris. I'm you

million. we in know, million from that of with and as you the materials, breaking today, I'm that's noted you appendices happy our expense, to do interest time roll-up undercoverable $XXX As we a out. spend to $XXX ranges The

back to any for over to that additional And the like question-and-answer Patti or Poppe now remarks. call session. closing I'd the turn concludes

just and California's everyone, Thank support. and you safety questions thank and all want to we thank PG&E you, that. your for I that your in Lisa, for investment your investment remind prosperity, an you, you and in is

here We're along proud you the next we the are XXXX, look in in We redemption the seeing definitely we're hope your of for really please and And feeling in and there. we you'll at ride. our support. PG&E. to May, writing of our We story, California forward safe performance appreciate momentum be be chapter out

today's And you disconnect. now that concludes you presentation. Thank your and may for participation,