PG&E (PCG) 22 Feb 242023 Q4 Earnings call transcript

Thank you for standing by, and welcome to the PG&E Corporation Fourth Quarter 2023 Earnings Release Call. I would now like to welcome Jonathan Arnold, Vice President of Investor Relations to begin the call. Jonathan, over to you.

Good morning, everyone, and thank you for joining us for PG&E's Fourth Quarter 2023 Earnings Call. With us today are Patti Poppe, Chief Executive Officer; and Carolyn Burke, Executive Vice President and Chief Officer.

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

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

can are earnings between Some the presentation. also slides, be review a December reconciliation online annual for along results The We'd with and which the encourage GAAP The second our actual report XX-K could presentation of information on also relevant affect measures. investor.pgecorp.com. found page other Form non-GAAP XX, XXXX. ended financial factors, at financial important described you of our today's the includes to year on

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

Good growth everyone. year $X.XX. results over high end of we reported Jonathan. of delivering range. you guidance of represents annual morning, morning, This at full $X.XX, This result XX% of the earnings core XXXX Thank our our

the rate case recognized In for EPS consecutive in benefit investors the for the at general announce coming predominantly benefit today I'm and pushing waste they savings pleased also X% customers nonfuel our our expected. that O&M X.X% Because year the benefit to and of and second annual fourth target full years end reducing savings exceeded come. as of these by XXXX high our year to the we we range. with generated were savings improving quarter, service, to

results versus guidance XXXX higher reaffirming with earnings our based is midpoint result we're guidance to new range $X.XX. least of which This of XXXX now an increase to growth our our XX% previous $X.XX at in core XXXX, our $X.XX. actual target, a of on Looking

EPS also results our least XXXX our rebased XXXX, to our off reaffirm core and for actual X% XXXX commitment XXXX growth both new and at We range.

least X% EPS our years X for I'm through at guidance that an we're XXXX. growth to of share In extending additional pleased core addition,

be Our driver rate our investment earnings strong future to primary the leads continues which needed of customer to base growth growth.

X-year growth base today's you We annual and extend consistent updated the XXXX. a new of compound now year using slides. are show X.X%, to of with for CapEx providing rate and XXXX both These in base forecast numbers rate

Finally, remarks. of committed new we financing to pursuing reaffirm our no will in and equity Carolyn and commitment XXXX beyond, for efficient most in XXXX which her forms available discuss remain the to

XXXX. our of well rates Slide reduction, results On growth X, illustrating The added our X.X% our forward simple, lift affordable in and model year actuals, now XX This through guidance high plan. X% O&M end XXXX rebasing nonfuel is of we've the our reflects in above action.

simple, key of investment growing to Slide containing X% affordable more, the to X% capital of X% the range. while allows efficient assumed the proof numbers. in electric range. our model in X%, or X are is customer of in works. nonfuel The is elements reductions a the inflation which at The continue O&M model growth us X% model, bill load customer ongoing increases enablers affordable and X% simple below annual Key financing in to reminder at the or

additional trigger. update our Slide capital has of such This updated business during cost You known XXXX call. a for first the X saw been version as few November items

with an this for long our the essential of this month year PG&E gas to month over of with building rates trajectory X% element is bill the ROE next electric. customers collections projected effect important in and beginning and on one for XX.X% X% will run. Delivering plan, growth this on which new Our be took X January trust

this includes I deferred and Average range XXXX. from implement wanted the to clear cost in limited step-up other as to X% bill gas average monthly XXXX the residential that customer. recoveries. XXXX are and through our For the X% electric to we increases GRC be

and half the XXXX larger of XXXX. Two as this in recoveries plan which to are down interim later beginning of the start at in billion year further and X% builds in items XX-month XXXX around stepping of both mid-XXXX WMCE lower which of the off. build come and off our catch-up shows X% off average first roll comes XXXX, the average range Our year annual $X relief, rate the revenues, collection of GRC keeping increase the

duration Let case at the what lower me our know today, through on we say this average, per Based half year, the bills will XXXX the rate from around X.X% on that rise of of for again. range, XXXX.

the Let's on and for updates the came has CPUC data from at XX% Total [ ] our shift XX the down year. baseline XXXX full XXXX mitigation. progress significant X emission XXXX, XX% admissions team for risk down made to from reportable gears Slide the XXXX. in

The catastrophic we wildfire even for fewer adjusting XXXX, continue under demonstrates this is a year's annual conditions, metric This or ] plan. the after slide, higher mile XX% [ RX circuit metric. we wildfire the ignition our risk weather-normalized wildfire XXXX, of On lowest our right in began reduction metric that risk number since our calculating side from are when which and we're the number days X.XX was rate, a of down to mitigation highest. of showing of from drive

here. overall pleased in with achieved continue see results, hardening technology. stopping extremely as XXXX certainly reduction new of We and the team risk isn't our wildfire with XX% additional system we're to we While opportunities beyond deployment further these drive

key XXXX, our of protections addition to issuance reaffirmed certificate were financial the risks the with safety last In risk month. AB annual lower, reduction, physical which also are under including

saw investors with in as an want at O&M highlight rate to lane annual deploy make and nonfuel commitment Slide truly how story. system this sets investment prior on key see X, to apart offering for is take X.X%. This costs we our here PG&E a to we years. X high-quality enabler industry-leading previously our a growth forward, premium over The compound savings affordable moment growth we XX% our utility base operating differentiated, to ability drive which rate utility, the customers. our Looking consistent us What is starts a

several years of to ratio drive have This expense back-to-back reminder, our our below we wealth with both to respond investors. opportunity pushed and efficiencies industry to is necessary far capital where of our a long sustainable to a average. doing was the whatever customers and benefiting As savings runway a crisis

differentiator California's our which related We expect growth leadership one X% to a forecast. and to help future be keep will further customer load within build electrification X% in to growth

year, center increase at adoption these York. We our prior meeting, continued course throughout in electric trends In territory, seen in planning we versus the including years. applications June New to XXXX speak growth we load vehicles which data addition investor more of service XX for have plan X to the an are a of threefold in over this about

level and X the years of revenue have for PG&E any would certainty since refer the visibility fundamental GRC, brings and as fuel your playbook, environment base O&M I rate mechanism, the improvement GRC we to and a mark of please growth, utility the to becoming With important which growth, includes and lean California the through for in elements pass-through our constructive we've savings regulatory separately load me pension. of California. differentiators and on results, are of including formulaic lose. regulated joined XXXX our model calendars under adjustment now certainty and cost we operating something sustainable categories, building which extended our from a we which of as recovery GRC, including revenue So including would PG&E performance for breakthrough our add continue had Key what policy regulatory best This critical system, regulatory giving that. continuous and timely returns, us a is we state based set differentiator thinking. culture

my on the so the of case, Slide year. this the of And in X to month or story story

At we the still storm Let This per then had pull. of which exact, point, to XXX easements work only to to XXX beginning a me back [ dig to of We complete. fully XXX rivers that civil miles and hundreds XXXX at individual mile. of came started miles winter XXXX. civil be ] miles lines take We $X.X a first of atmospheric cost to underground of construction And million had about brought negotiate miles of near April. standstill trenches of to goal unit electric to with a X cable to design, the hit. thousands miles of you through

night performance. with as map stream was better-than-targeted a the for waste our undergrounding silver their areas turning they watch the Well, This efforts, for and not this us this and is the did XX,XXX to In which the PG&E. out. of achieved that in to changer performance tools playbook events. worry is power reliability What's by playbook during line It's even might a future would XXXX, standards, enabling our can undergrounding do team dangerous and sleep in the December, or effort So new consistent alone, proudly The backyard. a This deploying trade on to how a year old results that to have is have visit of and showing success. benefit PG&E months lean created enabled can weather customers. will XXX-mile million tree XXXX building or cause Directors eliminated in on our performance With our PG&E construction it climate target shared all about premium impact safety million culture, our the great our and highest did that at playbook knowing X.X our rather average Imagine they time breakthrough meeting cost months households in back for idea team avoid enterprise-wide. elimination we've in us we the better They $XX capabilities bullet, and now a unit the who the phone Thanks XXXX updating in our undergrounding use every we resilient spoils. day one the we What construction in customers described that how at a mile per team's That spreadsheets live and we calls. undergrounding goals. for reminded deliver of Undergrounding they below optimal to have time under plan, every cycle high These wind methods land game $X.X using improved scoped unit managed the and February XXXX performance to our undergrounding to off just X.X value generations today. just I was Board power can from XXXX risk and costs total million or managing during before year-end exceeding $X on our infrastructure come. as team the way. level. wasn't the waste commitment conditions average team additional that came better living was improvements, goal. through not and proactively at

As service is I means like power. performance hometowns, our say, results. to along predictable affordable and This financial reliable with safe, consistent, to

me let it turn that, to With Carolyn. over

with I'm topics Thank morning, you, to Patti, you. good everyone. X excited and cover Today,

XXXX First, on for a financial, executing opportunities; making that exceeded track on recap report both of this longer-term are on our affordable and by customers our commits. how pleased met all we third, model. Starting here and operational I'm we're our of our our goals, our we or and XXXX of differentiated results; Slide second, each XX, for to growth growth affordable simple

This here nonfuel and fully it's safer customers. another further setting maintenance XXXX of delivery can made on consistent, bills that and results. report with cycle, capabilities I'm absorbing trust reduced inflation building culture the in our targets X.X% Our PG&E lean to day-to-day to our delivering customers by top and is affordable and It's proof achieved while that and X% how for operating are system proud strengthen at using on performance point investors. our our enabling is card on manage and building we and our our That's XXXX. virtuous we costs we EPS addition especially keeping how then industry-leading of The our bonuses, operating is playbook we've balance we guidance, our predictable a in are the XXXX It's working. sheet system XXXX. in delivered how our faster. XXXX we work our

majority for solution cost, across no self-insurance line. that opportunities all a not better at customers, business. forward, we the and including hit management note directly the outcomes Looking XXXX reduction delivering the the substantial to see of shortage lower of in I'd benefiting all bottom with vegetation our efficiencies continue work. customers our

XX ratings. see pleased by our We and stable from Our mid-teens we December, of revised investment-grade were to company change by is at the is to an positive, potential to rating upgrade reduce end XXXX. target to debt remain I'm to the committed parent no FFO outlook delighted goal. closer on for received say $X We our S&P rating notch, positive months. while indicating least in investment also Moody's And from their XXXX plan by next earlier firmly puts investors. solid debt our In the track, to value achieving there our support billion This serve regulators, one affordably to outlook. us us this helping by leaving sheet to away and our to one we our step one balance week, notch that us we and the execute upgraded plan customers grade some strengthen from

the and of early for pending. soon in a the on February wildfire The over interim a and X issued as March gas as to may start X, is as be application while relief voted example, safety on leaf provide proposed For XX-month authorizing rate million, $XXX as would our decision cost period. practical commission collection amount interim

Moving to Slide XX.

the can of you driver $X.XX. discrete case, our fourth rate expected, XXXX and results full which was see approval As here, quarter added of the largest and year general as

That's of delivering a more $X.XX execution. to resource redeployment. nonfuel are here partly see and model, which that of benefit to our We and planning us benefit our complete while better with part of O&M improved of savings customers allows you affordable recall the including what for O&M also our attributed $X.XX, saw simple, work our affordability. Please exactly savings, management

Our us with our for rework additional we eliminating yards productivity to improve XX up allowed designed more frontline as and efficient model processes, savings stand minimizing to waste deliver customers.

serve and our work inspections going investors. also resource accelerated We and consistent, we're protect highest downs work priority extra every deliver the commitments to We and achieve ups customers. the XXXX provided We coworkers, forward predictable use customers our resources to to weathered for our for better training doing additional results. we our and our ensuring you, to

guidance and As the core of investors. the EPS range. redeploy although we growth at system, while benefiting XXXX behalf Patti ended customers extending highlighted, our on earnings of premium back our remains to into top excess philosophy derisking

On Slide XX.

growth We our base rate to projections are extending CapEx annual X.X%. XXXX, growth year another base and X-year a rate of showing include

the over period XXXX. XX% is over the to Our $XX billion approved new The slide amounts approximately of already for X-year on This our previous as increase XX% XX% capital how XXXX X-year reflect an our XXXX The by base from to capital this or is plan, or shown plan plans. of this represents XXXX also including XX% of forecast. our XXXX regulators. is majority much higher rate base rate base our year is already vast authorized than

to addition our are In do needs there more. substantial plan, to

growth. commitments. our to incremental opportunities, an seek of CapEx our least system-wide meeting at capacity have we still will $X continued Specifically, transmission affordability fold which to into billion we upgrades and support These while plan investments include

to work. for model add ongoing affordable look opportunities affordability to work under we and this lead of we deployment drive important will As simple, our

this earnings have you fuels our Slide growth As know, XX, at year's showed updated we first Day. both extended flow, which investment since improves and as cash illustrated it operating and capital last we Investor on

billion dividends. As resources in a billion substantially flow our Operating $X cash XXXX of to to from in in flow shown, cash $XX our XXXX $XX operating as customers by $X.X final XXXX we're result the in cash capital billion flow investment XXXX, improvement grows projecting improving and XXXX, billion in substantial GRC to providing decision. before from for our partly grow

new XXXX. As guidance no our in Patti equity mentioned, includes

market billion low payout, favorable look utility choices, program at reintroducing including capital tax debt, rising equity many or of our the interest from of levels sale financing from improvements, we a for and retained provided and substantial funding normal an of to generation recovery, annual minority dividend close our $X.X of ATM today of good potentially cost prior working efficient in at there we level earnings nonnuclear conditions, present the XXXX. have forward, assets As our half

our that final In rest X% are at of and XXXX XXXX. our our today, through are not choices, plan we to of which assured includes are light we guidance. financing and extending giving the mix core EPS growth least accretive of only our rate While XXXX this,

you playbook. Slide connections performance a customer more leveraging our similar today. to affordable our Moving and just XXXX, model stories breakdown undergrounding one to is Investor simple many were share savings heard new by improvements XX. This shared the the X.X% are you details with throughout our more the O&M process and about I'll of about year. there in Patti we our At last achievements making Day, business.

The Now XX-day here's million was the reduction. average year. how by lead a while save $XX team we time That's decreasing XX%. ended able end-to-end to

also We a XX-day design engineering XX%, time reduced by reduction.

customer are a this percentage to This playbook, example including on-time the the result, day. an and our point. make lean This sustainable operating good for at system which decisions, PG&E. points. As about work is a do business cost-cutting using XX important delivery term, long program not the every by we performance about is to improved how I improve it's share

and the actions investments and affordable. customer safety improving Our making are capital experience

I'll XXXX. in on the regulatory end horizon Slide with on XX catalysts here

of a plentiful our into bring can filing of while you our still to potential customer and unlocking of meeting our in include $X and plan proposed new meet XXX Gen our Senate X in in XX-year still the are Bill GRC our billion goals. opportunities see, implementing As incremental post Phase undergrounding affordability the demand California, plan here capital and sale, of resolution they decision Pac our

was our of commission XX% December, debt. ROE cost raising our from allowed XX.X% letter, capital and by truing of approved staff which cost on in our up to comment I'll Finally, advice adjustment

customer in approved in adjustment is While for intervenor request of group review joint and starting this already rates January, this approval. a a a filed month, SaaS late

There's we some commission and resolved In creates upheld meantime, growth pleased Intervenors this recognize we in have investors look offered to adjustment consistently, growth not to no EPS least predictable as that core XX% we for for the uplift mechanism issue our request extended the staff new beyond, said a the the now our growth dependent in for the XXXX while expeditiously. our we opportunity look of lot review, While and the delivering customers for arguments to benefit guidance their revenue the and value fundamental consistent, and is in on guidance December investors. this rate as outcome being redeploy were including of forward X% we through uncertainty XXXX. operation intended. to results forward EPS at

I'll Patti. back that, With hand to it

Thank you, Carolyn.

along Before we and our to these Slide new record XXXX which able card let our place on against differentiated with you'll deliver be in the introduce our We're of for results team believe have we and report take right differentiated XXXX to our We me objectives. XX, questions, goals XXXX your track a here on performance. and beyond. for showing plan

power, to as of with set upcoming trust York. momentum earlier, do. operational scheduled conferences feel forward in catalysts a as for turnaround said track. our We PG&E seeing is you you XX healthy New momentum performance in look meeting investor as at I us. and As investor well on June significant the We we have is we front The of

open please operator, questions. that, lines for With the

from the Partners. line with Pourreza question Guggenheim first comes Shar Our Instructions] of [Operator

are any return structure does received move and your you And Just especially the equity, authorized feedback Patti, scenarios, you levels? sort after round the Any sort to last potentially deliberation. thoughts the delay of communications process, mean, as planning of as with on hurdles cap sort of the around I you OpCo the on of guys Pac commission? Gen have

customers. have very Thanks communications ambitions. an coming that investment say Gen. commission to and energy constructive with that Yes. question, be transaction been for investment ambitions and the clean good customers. clean is is beautiful long-term years this very I'd partner And Shar. with our regarding Pac a over the need resources Gen for able share for good fleet has clean is We a California's California good know to for of that the Pac energy energy

frankly, the And with our lot good. its been commission's the these extended had plate. on so time truly a topics case. make commission helps have the That And us on

our discuss it more can that. and very time. important transaction. have and and Carolyn to financing important have I a want thing. we but without and regarding isn't that page over of constructive so Pac . an with to conversations them know little Pac been look an they full They go take about Gen financing, They understand both our set Gen is our Carolyn And choices is I'll only choices Carolyn of the know let with hand why a her this one ahead it. we referenced because plans, it want give let I'll for

the but Yes. if of recognize morning it's question. covered mind, of this I for many for Thanks, you do I you. lot call, don't Shar, in busy Yes, a the a been

just couple points. let me of cover a So

XXXX First, today. least XX% now and 'XX in XX% at and as core in you least EPS XXXX. That's through raised X% our know, at we extended and guidance

Our Pac financing close then is riding on investment in flows, our cash no providing our further point XXXX as with we level capital can to plan our or operating from Gen. the many retained XXXX, rising $XX Three, 'XX they XXXX. we of earnings guidance improvement to our we include $X.X said that's includes today, load look you choices and the forward present improve without which and in And grow call, of refreshed new billion here, resources as good $X includes annual And billion X-year beyond about in flow. billion in to equity dividend. at our cash have

on from levers can And our mix we our thing talked ATM of potentially plan about tax recovery, equity XXXX debt. plan are is improvements. utility We of that accretive have include capital program will in or aftermarket are which guidance. of but an today, you to constantly that XXXX. working count all reintroducing our final We're course, substantial favorable you choices that cost of prior We we have one working funding our not normal financing half provided the conditions, giving

Perfect.

We think it's just simply -- perfect.

on if know ATM. the just -- and I lots Okay. thing I of Well, one because on I'm get going know I -- do just questions -- to

that. I so want just And to close

it's want size soon think I too simply the to ATM. that's I -- say potential everyone just to just to clearly very

at As on we our we've and number choices other said this we capability we own call, growing dividend need O&M consider, include the of a CapEx and outcomes of us, introduce have we and our to savings, pace which our the to things and, additional $X then lean the available timely have billion of and growth. course, regulatory which financing other pace of that good advocacy

thought -- there's just a you a all. busy of want for morning, all maybe it's So I to there, just lot been that because I just restate and

you Shar, this so And fulsome we to just very answer. Yes. potent asked a gave subject, close question, out a you

are assumptions. that EPS stand do. we've Just ups There confident outs, we deliver even growth the can committed guidance We downs. to this of and and this is that profile XXXX, very earnings equity plan -- to. we that and roller what that range we've so and ins we culture. are we close with ride intend the can We and through is This growth by described our we write out, consistent

but is little of some raising more with being focused helpful. through approach the equity we stock super around prior a equity And you're dictating that a messaging industry the bit now this And your statement? to more like transitioning this kind like to towards. say trajectory, make shifting, of sure rest of I to timing it Is your a fair systematic confirm sounds it. this, price is don't want just Carolyn, the to Got

stand I And Well, we our find important is look at most we financing. to to point time, will the not available most you commitment the by as is our efficient we stock, that think at this that in it what's financing efficient us.

line Our Fleishman next with from Steve question Wolfe comes the of Research.

wrong so... out. the picked report blowing But NVIDIA -- data You with

it's We a to right. It's Steve. all know going game, long a be long game. It's

Yes, yes. No, you bet. bet, you

part the now you've you've So the the know the talked -- on return talked also that I when the growth -- you as just dividend. -- about in total of kind And the that. rate, to reinstated actually past, of

of how you Just back any kind about -- stand that dividend thinking today. you just to as are we and that aspect didn't reason and the

Steve, our for dividend low today we of Thanks, Yes. this dividend that obviously, is know area question. growth a and is interest rate people. an of And -- lot for the of that our

So I'm glad you asked.

Our intent to have show we is intend payout to X-year truly during competitive And this ratio. progress a period. meaningful

And to able about share so to I'm happy planning X-year this horizon. be more

rate it, think about given So as significant, from be this we different growth point. catch-up will starting dramatically peers, our

So how described. obviously is X driven just choices financing we and years differentiating within Carolyn quickly these differentiated move that our by

our premium peers growth, we a And affordable sheet, investment people growth customers, think end this dramatically EPS have a different term, obviously, from I so, healthy in and then in said, over time. as it near point. But do it's starting we are prioritizing for I that will will important would for to feather our remember balance it that given rate

mean I else the on there in of of with don't that? is they Or Gen normal Pac starting guess makes to had just sense. There's just and to then time. nothing process And been better [indiscernible] the Is No, -- the from it on be over a on opposite. just disposition the it's the yes, delays I Okay. to on things and on going approvals? that respect lot commission the packaging And kind -- we something again. just

visibility things believe discussion of importance. provides I think good a and about couple just do of of case No, cash lot rate in a the context. terms Yes. I flow, it's our adjudication of

better subject why we have alignment think would pursuing Pac transaction. do Gen definitely I we for So us, is the on which be a with commission

of for they sure, need time have that customers cost see generation. to customers. growth they clean over invest for us And customers, want energy transaction new it resources. journey. know be value that on resources. that allows then believe that to the We transaction I a we it up good a will the sets a think partner these is to behalf the California partnership And of we us to customers in lowest make great growing it's financing a have that, for see load We in California. in This of for

stand better And the on us with the communicate time only know we that allows We them by to so and that. align with transaction. additional commission

the year. Okay. there, very -- then helpful Great. one met each that's more of I a debt? thinking included that about be I yet. -- I assume guess, was in with on slide. not just that just Because it's mean, And can the lot and mean, that slide, relatively which the modest. the, that flow deficits question, The cash a utility utility I is

No.

the think that's way I you're thinking.

I as I'll way thinking consider incremental remind the it. are think right you that looking that we're it's that ensure that financing to that's we there billion CapEx $X again, just that accretive so of an that well. financing additional at we about earnings. would, is you're And

question line next Our Campanella comes with from Barclays. of Nicholas the

on then question, back the it's not repeating report all the So debt to just good another hopefully to green see been [indiscernible] the positive here I outlook, place, obviously, but and little moved a apologize, over card. BAAX the

the milestones time milestone? Just What's your line investment grade now? what's of the kind of get and to your understanding to just

S&P. We've we're on Nick. on Yes. good investment with been credit question, intently achieving the Thanks grade. and improving Moody's focused laser-focused the quality, conversations and remain for having both We

credit to every debt metrics we're good We to year, and improving target progress XXXX. continue to on FFO continuing mid-teens to our make

are mitigation levels the the the 'XX significant cash our cash beyond and just credit plan Our rating our it as and looking sustained high well Moody's in laser perhaps progress flow. one generation, just relates X-year focused improvements management 'XX in as on mentioned, in mitigation, as our is the of you at agency obviously more and to is metric season looking risk shows also for and wildfires, S&P. and They're beyond with credit wildfire improvement metrics. governance

and for positive the themselves. we're continue S&P. rating that's upgrade to milestones we that when and the look agencies recent think and -- happy with you to is see most to be gauge consider I outlook We Moody's the were reports you on important their at both very

So to savings in execute execute our credit to to our O&M continue rating our improvements execute ensuring on our we're execute continue mitigation, see continue plan, agencies. for we on and on risk on continue that metrics our to going those to

Day that right. extended to just just New by you've would it? now? moving plan which how that to the financing And Day see, in the kind -- pieces June Investor the bring? kind guess given way, you is what Or XX right but characterize All about York, of out more in update, great given strategic the Is a XX, think Is would then do this I just financing Investor the we of how just fair? of

transition. the player in I'd very things we to backdrop say We transition transition. be the clean say, in people one see of we swing, the the the differentiated our a relative are that sure to for of make would I a here and that California to is going California context story know is want key This, peers. and part energy full

forecast, our hometowns. does our to forward what look customers what our about as growth for our PG&E, we sharing our hold So load shareholders, both as well really and investors electrification that means, more

So forward and plan. refinement financial of look of business to further long-term we giving better our really a outlook course,

the Julien next line question with America. of comes Bank of from Dumoulin-Smith Our

you can guys okay? hear Tim, me

hear you, Julien. We can

Wonderful.

said just couple things So far. to look, on up I thus wanted a of follow that were

of updates expecting you're know said it of you to lot just this I around questions, but ATM, a terms frame out really. In

Gen an and with of resort probably I given sort a something the line part evaluate to successful to to In cost I last levers Gen outcome would mean, here, of back to price mean, suspect effectively Pac kind asset year. could the of necessarily success of as that continue to nothing ATM. in a, would at terms fair cuts, et would Is b, going we'll lot that kind know by sales, else mean, you're you've with would of of the you in there time way got a at you kind happens frame I that Look, that interim middle there's a that of the what be interpret least of year, the equity if this And said end by the I cetera, not would go that. to other this materialize, then incremental it? then Pac was materialize ATM. stage what pursuing saying, you But be pull

frame a too it The size it's in would said, a ATM it's I XXXX. that really, I just potential more lot is to consider. to one, -- way as have soon we But good of options

and in O&M -- savings. mentioned, just as lean those you and so our And looking, particular, capability we're growing

XXXX in we you that -- X% last X.X%. see achieved saw and year, You

We we So about it -- and billion a that be of to that the new could one success there CapEx. in we're and to with to affordable make these that, all bring finance additional can excited very think our talked of these going options. that's about factor. $X We're sure in plan the

what's that introduced of do that we've as know, have regulatory advocating $X for. So we a new number And that been CapEx? timing we of in-flight the outcomes billion you

thinking on the just the Patti so of of clarity about growth, course, we and that diving well. more how in XXXX on as have our covered, as timing the And go potential XXXX. will depend ATM those we're we'll a as really timing And into ATM, of

of really of what all drive ATM. an will are size those potential a So

maybe an of what cadence more as actually And which entertaining way. of question on appreciate the just to you Can of successes, that regulatory do about story, this. that back, as of track increasingly and appreciate to years, and to structural this you undergrounding year And I possible? how your I to the would about on doing avenue investment an little in be speaking be accelerate further and those think mean, successes, remain around extent a unlocked think I that coming has ability another really you light in considerations talk the right, you now bit what a that -- Patti. was you see sort earlier were you

that scale well-being year we and was be I lines. who health do can undergrounding done an do the and changing for customers. of at way point can for ourselves proof it near important everybody, included, last Yes. live fundamentally think those and customers in the affordable an

remember, our mileage first the So case filed. rate did reduce we had what that's our from point. But general

to miles rate of XXX undergrounding So going case. line with about probably this year, in do the we're actually

by filing a as is XX and be window part in you, the that resilient undergrounding that risk but a for big we by I'll and California. our early plan will of again, remind infrastructure it's in plan XXXX We give an bet. undergrounding X% as will our into of then an the not see approval us about and XX-year total hopefully, important XX-year -- And 'XX It's a the our climate highest required undergrounding can miles beyond plan end 'XX, then X% line of of areas.

for choice that can this it they both eliminates and have reliability So and can safety have between They customers. affordably.

it past, the reliant a is make of by we'll and that not to present in show we doesn't well is the that infrastructure So and capital our that capital very investments, of infrastructure as the climate important But be filing need climate variety the that the becoming able though in people with that's to kind in of very future, hinge challenge. on real, and we for places. our case and more long-term more the ungrounding up climate infrastructure to again customers but plan, doing plan our total stand the to those value the infrastructure California have benefit fulsome net of XX-year of filing

from next with of line Orrill comes Gregg UBS. Our question the

Yes.

if the flow down. billion coming wondering in drivers fill 'XX. of flow wildfire versus to got $X cash slide. in could between 'XX billion and around cash be help Just dot the the in back 'XX, looks I some coming you've in was the $XX but the you 'XX to recoveries

little is the just connect depreciation a obviously, driver struggling growth to bit. dots a So

$X So billion Just What's million billion the sure your the to 'XX from I'm... making is that? 'XX question. to $X driving

Well because cash coming to wildfire going the flow recoveries but down, really you got 'XX got up. the you've

Yes. additional from there. to Well, primarily, revenues 'XX that is from the 'XX, GRC our

just that, addition savings X% being compounded. In to our remember, have we

And so we that. see

parts, as on lot the really rate 'XX to increase of is main lot driver there's -- wildfire 'XX story, but our the commodity outlook That see primary we key we of a our from part our decrease been it has other postings well. base but part The litigation our we a And recovery lower in as other our moving of there's GRC. of the a have relates moving the of is of parts. as puzzle. collateral prices, as versus then part

line comes Levine from of Our question next Citi. Ryan the with

. year impact potential a rate payer Pac of as be you Gen it? the sale see delay would What to

the savings I'm benefits the -- sure. sorry of that Just from terms Gen is making that Pac sale, from just in I'm

or mine Yes. rate is publicly that I articulated mean benefits you've transaction. this there

I'm of to So trying just a a why year? a you or sense get see delay

affordability a this well. to it's transaction G&A primarily think as costs our our lower customers, expect these in the resources We to we balance we right? And that because Pac to the energy of expect a But we as customers. portfolio, financing these interest as Yes. bringing this because it's important needs able where we that's both for up goal. having mentioned, and benefits capital Gen great be key to are supporting It the growth through for and is at customers clean assets customer costs future benefit for as sheet, financing provides particularly well also going so expertise very customers partner improving see significant is Patti to and think

would the two there point are So things to. I

the Okay. for percentages in seems enterprise measuring, And what your around lean year? is scorecard XX% very recent the majority it specific

it's self-assessment. Yes. of leaders what is We their and of our maturity implementation place, adoption of the our and and do an a all assessment basic X of

performing have room standard to of the how plays. And point reviews the the maturity. that the to score that, So these means what's lots of X team we XX% our that of standard are they and grow is the

when nonfuel a X.X% delivering O&M in benefit potential of imagine, just over grow and maturity our O&M can enterprise-wide. maturity that our you at the think savings level if so we savings, XXs, customers and processes for And time the

Okay. for then and capital of March the going practical of cost for in in hold? trigger doesn't what out implications bills electric, February the if And are gas

very was does in trigger with monthly of not the It capital the cost capital of for couple hold a of implications. the bucks. terms cost the rate if of So bill minor It's adjustment.

get or mechanically, in work? that years? how Would future reimbursed does that Or

implemented. how the determination think that I is determination depend and it would on

Our next line comes of with Securities. the Mizuho question from Anthony Crowdell

Just an one of credit guess, they on I waiting to think quick want more one S&P, season. in to for there know on Curious, upgrade? what questions, rating. I I prior Nick's have one wanted follow-up season a Carolyn, to had see stated you to the the Do you

I another team. season think our it's of performance by

winters I weather with even not think significantly of even And terms that in this numbers wildfire proven heard you a... reduce risk. analyst X are last for to folks, from there calls adjust season. I that our wildfire Patti we've a But in been we've and when the know have are has some the we continuing

our conversations S&P, and And focus X main post I with in I say governance on things. first, just would would they it's management say, bankruptcy.

additional at wildfire looking then feel which to and I finally, financial do they metrics. very believe So first, And they're the see confident we what about. that's obviously, want performance, then

positive outlook at end the we've They on them. outlook of the And so, we're us positive year. put with -- do on been -- we

we on So that XXXX. forward in them look sometime moving to

is And company's rates. I the the challenge. or to term right follow-up is date just the But -- impact it's 'XX one of the gets a guidance. already know commission challenge capital cost on a in don't Is I challenge? know not there know the it's then denies going just the dismissed date Great. where where I there if

nothing that. firm is about There or definitive

You're right.

outcome. a we that bearing say other are and it conservatively it to that either planned is though, 'XX Your have earnings in for than our doesn't thoughts correct, on have rates

line comes Our Morgan Arcaro with David from of Stanley. question final the

wondering extending given another capital in ] cost confidence the just planning kind growth through period? now the of [ was to EPS you XX of growth that that gave see there's midst proceeding I here. EPS Great you're of those provide the what to rate another assumptions

We have affordable simple, a great our plan, and anchored in it's model.

that an acknowledge I capital bills way. for the us is we the in our We know who requesting thing our feeling right been to can ample affordable and are asking just this deliver which for infrastructure, have want And capital deliver and have that now. they We demanding catch-up demand. in to customers this

frankly, better where we So plan. and will we're look that. ride we the customers we in look And model forward a as not-too-distant do year every can simple we forward, for deliver to be customers. roller lowering going affordable The horizon California. here time have for as for to conservative single consistent so that service bills investors We coaster outcome a a work in we

capital EPS are for a our But cost savings, we which affordable We days. as give as that can guidance bills matched plan. long of customers. confidence growth formula lot in in gives the next load the see early forward. we demand by for a forward, look financing, allows That's X-year for growth work we a and efficient forecasted us the time It

plan we conservatively. just always you, David, remind And I'll

And gives what so lots us that's confidence. also of

in service terms in is Okay. seems you the load changed then seen quite data like demand, your that in you've Excellent. it sounds X% wondering just a you've growth that's maybe have that that prior reflective bit territory ramping I of your if upcoming Analyst figure. data maybe center Day. expectations load what it's of what to been? since And X% might backdrop to had given center that was accelerating growth, from And up address on

we the that share can had X applications Xx I Well, prior XXXX, data Yes. a center in versus just years. increase in

forward only data demand. growth more we of them. forecast, that with look X-year think centers all happening data agree reflect that's I can then And additional end that center is the forecast we load at of the thing back look, the will the they need as So

load here here we forward make in part sharing doing. accessible we're fact about of what which so ourselves more to in serve look the can to And that available that in we show and deal June. and is And is we'll need that California,

closing remarks. like to to Poppe turn call would over I for now Patti the

and outstanding joining time remark to the in today. we for forward final give with was and women to know Thank delivering a one, for at your you, planet, us to deliver We're alongside for busy team with want XXXX hometowns. love entire for touch serving to thank staying thank appreciate just men PG&E and you. be I you, and I They Mandeep. the stand our an we're leading and couldn't it PG&E just proud our and I of that. a do Well, everyone, more customers. with look attention. We PG&E,

and safe the to Have track. We is the Thanks on on of and our XX that, Thanks great all York. know look at coming in people June feel definitely New So all seeing June, turnaround great in forward to in company, really those months turnaround. you day. a about so that here we much.

today's concludes This call.

now may You disconnect.