PG&E (PCG) 7 Nov 242024 Q3 Earnings call transcript

Hello, and welcome to the PG&E Corporation Third Quarter 2024 Earnings Release Conference Call. Please note that this call is being recorded. [Operator Instructions] Thank you. I'd now like to turn the call over to Jonathan Arnold.

You may now begin.

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

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

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

second results important reconciliation the affect which can of my are The our CEO, described our XX, presentation. the factors the ended found you September GAAP between to financial at on pleasure encourage a call financial of Some And measures. along over the our also to quarterly presentation on information, The could relevant that, page and includes with to quarter be XXXX. earnings today's review hand slides, actual it's investor.pgecorp.com. Form online also other Patti with We'd report XX-Q Poppe. for non-GAAP

Thank I'm pleased everyone. you, and and our quarter third guidance financial solid share some plan. We've quarter results of and Jonathan. seen to to progress, our another Good updates morning,

earnings per bringing to months. the the firming and for growth XXXX third share quarter XX% over up lifting X XXXX were at We're midpoint. end the $X.XX, first guidance our $X.XX by for $X.XX narrowing range, core low Our the up our

adding XXXX of additional EPS we're XXXX. grow guidance now our is this we'd range $X.XX XXXX. And formal range billion $X.XX. is Previously, raising also demand, XXXX XXXX now at our from Our now $X to said customer we're earnings X-year growth least $X.XX XX%. we per $X.XX. Reflecting share in through we're initiating With X% X% guidance to plan, current capital, to to billion $XX which capital in

XXXX, guidance we're and from X% new our growth and XXXX our at per midpoint. longer-term that's XXXX, share earnings In in of XXXX addition, reaffirming now least

equity in XXXX. to no firm our in new remain We commitment

Our is growing also Much vehicle ratably help from expect XXXX through goals and ATM the a billion to load is this be equity issued will the customer or guidance numbers over once likely at XXXX is you're these still through We developments stations, market affordability from electric projects charging to California, What utility program. unchanged. period, commercial of growth, seeing in electrification local meaning $X this housing data centers, our for of us demand in infrastructure. completed. beneficial achieve routine it

from to expect told able able investors, meaning EPS. it it's going beneficial new four, customers. can add been efficiently holdco we've what plan same approved it's with to we're with because by One, meets our to regulators. criteria. you, of disciplined Three, this junior the Consistent finance approach to our And Two, for you subordinated it's we notes. the were capital recent for is This accretive it forward. offering us affordable

Moving pyramid. to Slide X and power our

that Let with me all reiterate it safety. starts

are Our layers protections financial and working of intended. as physical

we intend affordable building our layers, deliver growing energy these Our make to is affordable future how in infrastructure can simple, for first we decarbonized customers. California. critical a and And on investments X model

As here catastrophic you PG&E is stand know, that wildfires shall our at stop.

the stake. And on focused at tomorrow, what's camp day. is laser just reinforce that XXXX further days anniversary the every ] like doing which are fire of We [

California for the speed create for leverage of day. solutions system, mindset our resilience, to layers a fundamentally We with protection. miles climate the And of with such a innovate all We up from and which decision. source. heart response undergrounding technology infrastructure improve We of as partner investors. our ] starts with to admission of any ] [ and safer safety advocate risk highest-risk operational operate implement [ on responders citizens long-term each and to understanding at continuous first every keeping improvement, strategy Our the every and we

as is Wildfire the count and a result. ignition year, elevated risk this was up

than is on rolling RX demonstrating California XXXX, lower under more months year This here conditions. X.XX also Slide is conditions [ higher shown for that XXXX ignitions, at fire-threat than ignition California, X, As acres for safer. XX increased X. versus risk standing XX XXXX, the areas through rate November predominantly challenging Incidents even weather in more the the is given ] conditions, affecting or plus high have notably cost nonutility this more and threefold under

here's a PG&E equipment. Despite the trend to major due metric that matters: this backdrop, fires multiyear of no

physical one more summer was While our are satisfied, we're working. that mitigations proof point never risk this

While with in the the our service is undergrounding believe come That's highest operational to strategic trade-off. reliability we right mitigations have do locations our a territory. for that solution proven why risk effective, continue they

Slide Wildfire the state for X. has Fire. to Dixie the share to that Turning Fund pleased our were to million. last Related We first set claims month of $XX paid

was million Assembly XXXX to on October intend on This of $XX for XX, submitting Bill claims and we request going our monthly continue as cadence designed. another a monthly out point second proof paid working forward. Our is

execute As the and growth model model This invest how leadership here affordable plan by customer bolstered keep model we're a Slide lean shown or operating infrastructure. our below working supported to California's energy. assumed you to to is inflation also on system know, as in X. winning at proven in we The affordable transition by clean we critical build continue is our every on day to simple simple,

serve while here to a health. as shown sheet our have the on existing additional we're balance And as announced We the left. we today, plan, maintaining plan some pulling customers into strong better capital

month. reductions with let's further the of electric to the dive model playbook working in we no discuss. element as through and turn this day big and growth. for PG&E But into will approach, action We're my each every Slide O&M see of performance ] deeper first, opportunities incremental Carolyn amplification load to continue We best [ story as X

our the to inspection right drive rate reinventing which was look the X Innovation identifying faster customers we than along completing was shared case. in next XX% to standard and passing it created savings, delivering process, Dublin previous customers. for cost forward how Center quarter, work, Our our team better our I outcomes to Last

the playbook top our how thought using With mind, rapidly energization and design and to performance share of team our I'd service is I our implement customers. incremental capital spend for planning regulatory deliver decisions

an CPUC of XXX team mobilized. our approval the Following the initial and energization filing SB of immediately $X funding, billion incremental

lead lines of number team year. to customer and is savings permitting customer labor cost and a requests The agency quickly availability, that completed across that Looking our implementing process over materials X,XXX this time identified including also team the customers. can be factors, readiness, incremental to improvements

benefit the turn estimating which reimagined the will tools design XX%. customers. eliminating And me and let I predictable playbook of we our customers we're to rework be to see cause electric example, cutting of better time this by Carolyn. performance for growth job we other that, our over of coworkers for the the prouder These For using preparation that and by outcomes cancellation waste reduce could rate investors. application package XX%. are and the our examples all processing it I standards, of to With not of examples updated for process, work and estimate our classic customer we

morning, forward you. Today, and X I'm Patti, topics everyone. you, good covering looking to Thank main with

X of the XXXX. first First, our months for results

And affordable against and Second, third, how our plan strong simple, our to plan. we financing growing continue execute model. capital

As against know, depends and is RPEs performance delivering [ you power. outcomes investment-grade constructive targets. on ] And regulatory consistently our

]. Starting [ we earnings are Slide raw here on X, showing our you

continues the capital of ], X our $X.XX revenue earnings including in the X up to The XX.X% For quarter, the were of last [ juniors of our XXXX year, all September, when from for are driver through to of months not in up first year-over-year year. core fourth the $X.XX Adjusting months be ] over was higher the customer XXXX. XX% is XXXX our change for first approved the XXXX. rate and last general main that our investment, catch-up ROE the case results both same period year-over-year. for Remember timing that [ until $X.XX increase

currencies throughout O&M ] X This ] new spend as strategic well contract such the as performance sourcing. drive contributing nonfuel in inspection programs profit to is our as per achieved various continue to We [ lower ] improvement business. sets results [ and savings [ for

committed customer investment. to incremental savings to and drove mitigation, of also such This and response. reinvesting remain new orderly We the including support business the into upside maintenance as redeployment, emergency into support and $X.XX risk back preparedness conversion which programs

deliver way derisk to reminder, years out. and performance year as future As year-end we and consistent a a redeploy

Turning Slide XX. to

X-year compound these approved from third for billion incremental As in an X-year of X.X% rate new the our you the our pulled XX%. as projects result saw increases plan into quarter. This the CapEx of to during earlier, SB funding XXX a energization base growth $X

billion base rate energization spend XX% authorized General already in Office. up additional XXXX, Our Open $XXX picks including $X to for of our million for share accrued and the

Also, additional we incremental billion customer rate. $X after our least remind formula shortage even at work work beneficial on still at that distribution There least investment systems. $X signaling you FERC transmission of would pulling potential. in are our for fall customer billion billion And see I'll $X an still is we no transmission opportunities. in of incremental and under capital,

incremental XXX. In from case, issued XXXX revenue filed phase decision demand. Including Back rate in general represents net see needs. energization timing $X.X the we're in add Senate stand on to customers, to billion. response growing for serve ready would we October demand of of the proposing proof a demand of $X.X point the and customer request The another a work CPUC encouraged [ necessary if for request to to to funding XXXX. X, XXXX This adjustments, XXXX and to we Bill second addition a us California, the we in billion commission our supplemental July, this ] this of of provisions implementing and address further amount seeing

and expect financing. a for final commissions implications both ] call will for proposed [ the decision, and medicine will for have we quarter we in of our The first decision Once the XXXX. and our workplace

we'll posts, As sheet. share in the balance namely financial our affordable also incremental be helpful and and I accretive discussed earnings per to guide this beneficial devaluation make context our for capital of to must last investments quarter, customers,

over change reflects corporate ] component, equity and Slide we $X no the CapEx our see on to this reduce updated $XX X-year [ billion [ period. the now commitment note, built can of billion of XXXX ] that Of to into to our dining you plan. debt financial by change change no of flexibility to Here end XX, plan that no

continues capital ratings updated Our achieving investment-grade to and our financing investment. prioritizing customer plan commitment

billion. term other and down part to are you'll equity most bucket, the We've issuance second quarter to addition long-term portion the of our a S&P slide, example of Fitch On our each remaining used to is that from changes on $X.X million you and mid of loan metrics. and you call. were with will hybrid we in and our million debt plan. of in issued transaction in comparisons [ commitment resulting JSM subordinated the financing debt neutral instruments rate ] Proceeds possible. earnings capital JSM junior to this an The the $X pursue the corporate shared the $XXX impact utility see base, efficient I'll by the plan pay hybrid proceeds to in that on credit $XXX increased billion equity notes the These September. received reflect remind the credit that XX% fund

from for XXXX we amount of our a calls many a still ATM program. industry XXXX, with basis This under a and achievable billion ratable ATM line $X in plan our size is for utilize normal to equity on expect program. of utility peers our to of also is issue who utility Lastly, which easily

at already our through As each XXXX of we've equity extended year is per X% need this XXXX. to share factored in and at least indicated least multiyear earnings XX%, before, now XXXX guidance and into XXXX,

XX. Turning to Slide

a make it affordable to As our affordable Patti our capital are customers. mentioned, executing our every day laser simple for industry-leading all assumes on ] no-fee we [ growth model focused approach and

[ a amplification. and this big Here's why we ] see model why consider for further opportunities bets no I

O&M terms of savings. cost in First,

work. We XXX are our to reduce automate nearly and efficiently currently execute costs other to material working initiatives more contracts plan, and

statements X any as Our are not reducing dependent the across initiative, we are enterprise. on waste

whether also excitement X XXXX. fuel trait to reducing row, capital the Dublin out such these our activities and you're improve We rates. repairs runway or which command momentum And the feel at reducing ongoing and with here expense our O&M benefit a Innovation goal our centers by annual in of our projects [ operating we to in in exceeded ratio, and placing durable, [ Oakland. Center, X% ], XXXX capital reduction expense ample or X.X% field, as in ] customer maintenance and in long-lasting X in These years the improvement, have we

thinking well in is placed [indiscernible] experiences delivering proving the is XXXX, grounded I'm a our philosophy in is With at way a lower and that cost. out customer X% we this or of improving philosophy exceed at that results. We're meaningful target. is meet confident PG&E year-end and will that sight,

Second, load growth.

leverage largest District This the will bidirectional from a is with the load the about the are centers equipped buses when project. decarbonization to place us in come to dependent Open the but with load groundbreaking new innovations and electrification. partnership goals vehicle-to-grid grid. in X use. mega beneficial customer the Our also policy driving vehicles, nation's fleet the growth EV to to taking I'm annually school hours electrification. or deploy ways It's our X example, and more increased for electric that technology, data of excited gigawatt fleet. not And grid the help or enabling return building back electric state energy will School bus on Take, [indiscernible] not

Lastly, efficient financing.

other our convertible and upgrades. and working hybrids, improvement include opportunities rating JSN programs, to credit Future and addition [ recent ] financing, In capital DOE could grant loan

to Slide XX. Turning

rating, a layers and through mitigation. with risk X I'll at positive and performance Coupled just credit both fire of of With demonstrate credit you to investment-grade see path strong and terms both. metrics at company. the In at investment physical that our continue maintained improving especially we financial effectiveness grade on notch to of challenging parent near-term remind we strong we're outlook our the this below achieving governance, Fitch season, Moody's

Growing make in credit supports health, to cash affordable. flows turn, will and rating help critical drive improvement customer investment balance our our sheet

to flow XX, months grew full operating prior more billion consistent X And XXXX Slide we're you months XXXX. of to our on As can flow the $X.X cash X see deliver of we $X year, the in compared operating first forecasts. here billion cash by for the course with in first over

release in Of is applications. rate this [ as the a as interim course, key we've of well and CPUC XXXX from XXXX WGSD improvement, GRC Wendy the our seen the driver ] the

Turning XX. to Slide

constructive and at core XX% do. With Patti. XXXX, everything to through core allowing hand now XXXX. back we to of and us rate-based constructive proposition. EPS all through rate SB our request XXXX in the We quarter. our a it environment final continue to reminder each growth in customer work the XXXX our We XX% that, ramping, purchase deliver first it's XXXX placing well EPS It's of and open decisions heart at stakeholders. with ] growth onto the our headquarter least to from least XXXX operating I'll policymakers X% saw for and at here differentiated All XXX, third performance, interim our on in relief and [ growth is value for in Slide XX And a year

I'm differentiated here Thank Carolyn. story about our PG&E. you, at excited

growth is power permission gives path physical for with the in California's realized. Ultimately, foundation step talked the we you we to how amplified. being model. simple, affordable Today cost. New economy pyramid on at we That and of our share it can societal financial starts It decarbonized that Our in aspiration foundation When focus our and another safety. lower saw June, us toward in a model York is be about the forward.

please the our customers to With delivering couple forward just our you We open to you, questions. that, for way be operator, are a days and the We're and in lines at seeing investors. results EEI. of proud leading for for looking

from question from [Operator first Instructions] Shar Your Pourreza Partners. Guggenheim comes

on quarter. congrats Obviously, the

$X Was approved upside caps? EPS to there connection Just context in on more plan. about billion XX% we core that Is the starting construct? the the driver obviously incremental customer the how by as implied guidance? come 'XX the of cost CapEx CapEx, as utilize fully level that is accretive think And the of you to should the growth of

to was the that our and CapEx to get can This finance it about it's sure then Yes, for Shar. is the we're accretive question. talking to increase we definitely driver key disciplined approved, the make approach affordable for customers. EPS, billion $X The efficiently. Great It's XX%. we this

all our we able of meet criteria to So were this in case.

funding so And filing, at we demand. that to with XXX, customer our the going we look as the need phase up next additional supplemental of to SB see we're keep

think, I news, great that's California. so for And

I it's great for think customers. news our

our into of but think for And so that filed know however, customers our and well We I approach, investors. we that's we plan both why until won't we bodes criteria disciplined that supplemental. build the meet do the

And Perfect. equity Are needs there helps from or any you CapEx noted And CapEx? to IG does part embedded sort new equity? funded. assumptions the you of $X the how anything CapEx it. there's you it billion other around equity but then does Got of due subordinated sense $X timing? your timing And offset that of new does, -- just the absorb a it curious. get no no in do billion with of incremental it don't the future do dividend I to

doesn't. it No,

funded. $X $X the That the additional billion junior was issue. funded CapEx was a subordinated was of So notes. That by billion

were say -- it's very had further plan. We're the X-year again, year routine in looking it's new of billion. our still $X issuing at over a in equity -- plan, we total change yes, It you, remind no And to I our changes so XXXX. next in and plan financing. And financing the program We equity ATM just that. a pleased no had response to no I'll efficient equity XX% -- to content. will

I in and a it. appreciate guys. couple you see of days. Fantastic, Congrats,

Shar. Awesome. Thanks,

Wolfe. from Your next comes Steve Fleishman question from

Yes.

I on affordability Newsom's, order initiatives. guess, Just -- executive Governor

guess, maybe things your thoughts that? talk I related your you've you're to so it, the perspective got addressing you could plan? to, And on I -- just Just obviously affordable know simple some the but model,

delivering Steve, for model truly our we California. especially me the by next to talk impact XXXX, want our and that when be us show case of think rate policymakers be really, filing want, we'll of state energy question those the is and mentioning definitely the for you to what the And year starts And affordable Yes. simple we'll what that's and the filing. Governor affordable I for our That we about implementing pathway. as the the people see affordable wants able through simple that model. answered savings,

to And we forward to process, the the them of well, regulators but policymakers also California. good in do here look so can the really helping give earn earn about what ideas this affordability in -- drive and trust our

I continue can grow that our load. and cost think we the idea reduce to

think our invest is a customer for are here I load exciting they change California. And here. in that's load something think is to be policymakers welcome going that as implications growing affordability grow in big to the infrastructure what understand truly the and news when the to I we

Okay. X And question. then other

X funding potentially. You being mentioned DOE loans of source

that, the impact on outcome at all? thoughts how any if election Just might

Yes. Unfortunately, it's a very confidential process.

the So and just before loan. the say thing The obviously, on year-end we Steve. about DOE customers. net-net I for still that DOE funding time for it, a can't savings it's the is about loan But much like DOE there's resolution

plan. However, upside be anything built associated with the our that. would to we've plan accretive not and That financial assuming

Okay. Great.

Steve. great welcome. day, you're a Yes, Have

Your from Jeremy JPMorgan LLC. next question comes Securities from Tonet

you Jeremy. me? on hear for Can Sunderland It's actually Rich

Yes.

that plan guidelines curious, where harmonizing is process to the your there next the after for on are stand finalization. things undergrounding approach once steps guidelines, What those completed? to I'm you're

Yes, great question.

be. than to and been will they've to We work we expected. OEIS more what with understand extensive requirements filing To establish date, continue those

final filing current that filing the mid-next delay are are guidelines filing, will the And year. as our by so -- undergrounding could if much very make but we to hopeful our guidelines, published that

it We risk definitely undergrounding not stand our risk solution. our highest is continue to It's miles. areas, miles, that right our in all the but highest is

undergrounding way know safe do have for benefit being that the to we and believe this be longer-term as will is so have filing We not that And customers demonstrate them the directed between choose it to make safe. customers. the by and savings that, able to our affordable most having legislature to cost reliability

will that the look we continue earliest. but to making I forward filing our And with to filing. We'll OEIS, so at mid-XXXX be expect the likely work

energization your there? simply Great. and thoughts the how work conversation, picking ramping I helpful. request? comes what in that if supplemental other are about Very Any And thinking it you backlog? then CPUC the up Curious clearing guess, down the to, authorizes

Yes, cost It that big It's free. do work. does the not a obviously something is driver. to

the California. both seeing rate to connection filing made we to reflects backlog growth it I seeing. maintain customer actual just also I any so think well exciting And news. in that new customer a requests, clear really growth we're XX% We're the the -- kind proposal that of which bodes demand is but mean, year-over-year rate for about

And fulfill how continually to we fulfilled much way for cost, is work, can improving by way we and work. bundle the be a our schedule that do good demand want we'll we that at news so that that be contract the for of driving improving work, which we demand. And the unit

and being role to process able investment commission fulfill fully our going our beneficial play All of be to that forward expectations. in to to approving to as and but their in we that's made, the customers, improvements that the continue look has customers' important reflected in been we ahead those making will filing expectations we've customers'

comes from Your from Jefferies. Julien next Dumoulin-Smith question

towards Rich get mean, where you filing mean, that? minimis you as but that, of different to how a on plan we -- a of fairly fairly, you number. side. de a if to note in I out here, next was at bit? speak I starts obviously, to service a you little back anything least mid decision, moving year's a here, the Can to here little get read what mean, second your go SDG&E I will? OEIS proposed out that Just do again, saw

filing, which new is a the our GRC. about filing. their that was that mind, was in legislation based We're undergrounding talking Keep XX-year passed on about Yes.

minimum, So and which in of to total we say, a I track through build that's GRC, the at will on a X undergrounding those have are XXXX. miles different been to our we was things. continue approved X,XXX miles,

So that making supplemental, filing we through plan and obviously, our that will we'll have undergrounding OEIS XXXX. term. be in be to The longer

in think we in to and about California, cost very I understand think of being cost-effective a -- we believe effectiveness the after it mitigation. year spread misinformation is And on People here most do after that spend it mitigation. right the the undergrounding. do much conditions, year need we certain do lot tree there's is overhead are much the of I inspections forgetting how and So And that's year. trimming

a for on bills $X customers' spend today, a in don't we $XX bills, customers' understand our inspections. month and that. And we Customers for about spend management So example, undergrounding. vegetation in month

policy honestly, clearly And decision math. the -- makers of I some understand and the the think interveners certainly, do not actual

reliability, it of is we're for interest just affordability not clear undergrounding that continue our risk math make safety best try to highest and the miles. so in and And that customers, to but for going in

we continue case. and that to make and advocate try continue do the So will and we to

will? counterparty we being on forward to like moving Yes. diversifying No, here. chunk spoke about last of you the related X PD. Where and that X.X if pipeline, here, the it actually sizable a X% pipeline miles right? I you about you and out, And talked are that thought potentially maybe gigawatt just in of data center adjacent SDG&E this But got quarter,

Yes.

X.X our -- first those completing was to new and it efficient cluster megawatts in study. all we in clarify multiple hundred We this a here adding communicating study Keeping We with of initial begin much should the up an to it with. only by definitely Julien. me request of that, projects of to way multiple interconnection and mind, December, And customers more plan we're had was couple a be demand. of customers Let gigawatts. our

I like our to call a gigawatts what wants to that's nice somebody study. X.X other this feel school and in increase, last clear. the just cluster but the week into in study. was That most get about not And squeeze that popular plan a was us projects, was these be request, some our days, been So I every girl our

thought the and the so generation here demand the specifically, have And think real. demand capacity here Silicon were Bay They Valley, on PG&E of and in of And to access we been Area transmission in in Bay X in we to our out fiber network being here Area, that system. the actually that for this the being about things, for California. available hub that's for -- Julien, having California that's that is both the have added capacity able confirm and power. significant We've we I

have storage. generation XX our great of the battery really new now gigawatts that midday. side, supply year, That we added of just X.X is California, we is last On supply. In gigawatts a complement to excess solar

think is right you sweet think here you can business like of growth. can of and don't spot. of mix, at as load growth there benefit us get open to So the of expensive for the Kind California. in much demand too of you that's of have too little us have so I supply, kind PG&E. -- the I load in we perfect put like are Goldilocks too the

are the right the we customers. be just interested to have amount for affordable who We fund excited and more that these customers deliver excited that can more able we're to And and day. that's for to I'm build by

Good the Excellent. we'll see Goldilocks. I you like shortly. luck,

Julien. Thanks,

you. Thank

Your Gregg next comes UBS. from Orrill question from

positions how the with with FFO just you debt stand on update you agencies? that and where to Could you us

Sure.

normally billion $X is absolutely mid-teens. to you on point is change but which give What we year So to there updates, XXXX track to our I'll over no to guidance operating at don't close is significant And is cash the XXXX. intra XXXX. our confident put which that outlook, XXXX. increase flow, very X, or I'm it showing Sitting on to still that in we feeling we've mid-teens growing there, here year-end, be by that over billion we'll November out see after improvements $X

you. Okay. Thank

comes Sachs. Your question from from Davenport Goldman next Carly

to the quick prior a just question. Maybe follow-up

any focusing there with risk on think through you kind as conversations you here, of of recent -- what agencies the moving are updates they're in another terms with that about Just on season can your share wildfire aspect?

the what just focus do I need we Well, system make think faster. the to safer, real to do is

have about mitigations really we're continuing so Settings, these having, mitigations the across are we as have is are we possible. their and I'm that think doubt is conditions the risk quickly, year. in a And mitigations, that get about our them are is we're customers talking want but of when this are scope our that the I'm is people XX-acre of and of here Safety which fires California restore There I no predominantly shown these we XX-acre any it's effective current looking to very all good, real fires. outage. see in make caused that really number at Public seeing Safety -- Powerline case our of Power this this and clear. about conversation Enhanced heightened an that. The shrink how safely I'm that working. and targeted level fires And at year. mitigations caused California But is still things, the been sure and talking to understanding to disadvantage Shutoffs, as non-utility that that a number up are talking by And starting And way

And is so what given outage is conversation I the think risk. amount of acceptable the an

Power wildfire, bullish is and mitigation that risk So on that. eliminates that's that undergrounding, and we the Public a a there's both of so why know Shutoff only X we're Safety which

and done areas certainly that think miles we also tree-dense and safety I think do conductor. And the are we've of inspections that in so right seeing already the that's and we're the equipment. certain miles making our covered sure important right there We evaluations aren't of of X,XXX However, that miles.

our we're structural financial safety very I our doubt we've are with feel that say measures. specifically regulators And and test and our So would progress constructive. safety discussions and are no our years And very state, the And there's our of here with system change. no limited regulators real major across trend they X of very people the made. of complementary fires the damage. our That's no multiyear proud to of the

real that. progress. I And people think just So feel

fit run, I the need right think debate the and to mitigation customers. healthy and conversation the for right run, work long advocating for the continues, the keep for that our what's infrastructure, educating purpose long we what's about for for right the

-- clear, intently I'll credit on with we quality, agencies. we conversations have and just to absolutely Yes. our be ongoing And remain rating improving Carly, focused the

been through metrics, we've clear As noted, grade season. that Moody's. our looking just at meeting financial investment we're pretty and They've notch X their are below another performance we're we already wildfire at

-- particularly to want I was we've And noted the was today, call challenging. her as season don't performance our [indiscernible]. on say This

good. was It

to Very conversations strong. on we're is forward and Moody's. looking And see with them having think outlook We're Moody's annual to going We're that. them, and with positive an I we're with cycle on optimistic.

shifting little super then maybe a bit. gears And That's helpful.

think to incremental we the in billion investments as billion of related today $X the about Just of of $X announced you've context the changes the highlighted capital. you've

plus 'XX earnings over frame? how growth time Just that around would kind base XX the of potential to 'XX frame rate and out you

that question When we're looking around the timing, we bring and around -- but would billion in. the $X expect to when the at your

with latter maybe just start point. the So I'll

As we plan. billion say, did do we bring incremental additional $X could of an we into our have that capital

sheet. authorized. needs be to be you'll It it. be for I to have for Patti XAs It to call earnings to we affordable has it accretive be everybody. balance finance As has it efficiently way, our our be to able it for customers, This remember and to authorized. the to indicated, our has

think we've about we supplemental half seeing first of when the already the talked SB in XXX that, of outcome XXXX. So sometime about an

as requests a positive to at that would And as in. data capacity additional and the There's we the we're ensure talked guidelines we centers, we build it the look at pipeline, look about there's and then, that seeing there. as -- would long transmission We in billion, see roll outcome we so -- out. additional $X more

EV-related We capital. then we're both generation just have IT in that some at. and hydros improvements and And additional work there's looking our the

criteria. that the we very We robust brought $X in. at billion. just X-year billion. it down put billion potential $X a yet change $X that this brought billion in We and $X didn't to kept quarter, of billion. we would the meets But be we pipeline. didn't plan $X we I'll And note, have all So as as of said, it course over our of

very have robust We a pipeline.

from [Operator Instructions] David Morgan Your from next Stanley. question comes Arcaro

follow-up much. had to a executive affordability. I Thanks related question, the morning. on so on prior a just order Good

in or of that approach they've so about One kind safety add effective that certain how -- lot that program? to wildfire perspectives or far the been how wondering fat was you to any out mentioned was maybe I'm that programs just an called topics programs. of you cut there And especially for might a you you've sure. -- is affordability mentioned consider But there

have that's of regulator on I think is, does being cost do what's And and the signed then question really feed regulator I into do bigger safety and scope off we discussed, regulation the we streamline think and getting and most what's how how process on the is that between the alignment financial effective. the a financial approvals. safety

specific more it's mitigations think processed I that than so discussed. And are being

it. Got

would I Then going Understood. actual finish the financial of [ ]? you on off as forward rebasing expect years to numbers plan the up wondering, EPS you side, Okay. be was

Absolutely.

Okay. Perfect. enough. Clear

next from comes from Evercore Your question ISI. Lonegan Michael

spoke sources about efficient highlighted various financing, of categories. You

rating you think improvements capital I other loan working and and DOE hybrid, upgrades. credit grant programs, said

sales. left So you potential out asset

Just in wondering And ruled could monetize? something if given And forward? what what Gen now? you that's [ for not, would confidence going approvals give if Pac you've rejected, was you that ] out

past. sale forward the with. list. on been seen not we've [ -- we're Gen towers the something of has sales -- asset Pac the not done is Michael, ] definitely Yes, moving the It's we've not in

that the efficient in see primary don't we future. financing source as really a of So

and come Great. months opportunity ] O&M the years continue growth, reiterated it. And to then in highlight bills. load Got increased secondly, higher [ reductions, to today you that you set nonfuel for customer the lower

wondering Just when of expect plan? could roll formal share we that on your your time the could you to line if some into thoughts latest

in Well, $X rolled we billion of it. just

when she then disciplined -- such be called the good looking to right next is call is year I for today. meet over takeaway the -- this we'll to the That time just as forward next X And important an So As Carolyn's think X that's them. this business. As,

and for have a it. we where disciplined demand, is we thanks have position path forward. PG&E in reiterating So a

work. We finance have our the to ability

the We grow have ability to business. our

to better variety conditions to a We to have truly the I'm serve has move financial the do and in of all benefit going with proud for the to of We're customers. you. disciplined industry-leading. be around And progress going of our do that, and we to consistent that us, so to ability growth, how forward made results for given that customers continue continue team the we're

then I "opportunity" formal going the to reduction, see the That X X the your -- customer is growth was like up expect and load going to the I could O&M like X. to was to formal plan. referring the wondering to down. the electric And the potentially plan? X versus that enter when bill we

Yes.

So seeing as -- how speak O&M reductions we customers those to pass some filing directly. because you're be in through reflected now, the GRC of will that that's we our

that today signal are So see trying that you'll then. We to amplified affordable here model definitely materializing. we see that simple

grown with capital started seeing the here. we we've the O&M growth base savings So internally. We're rate that

bottle earlier XXX There them related and Elimination to directly really in that actual how to improvements, I some at or yesterday work transform week, a O&M, related some is to all how was of tell the team And is this improving across if was Carolyn being up Waste enthusiasm -- joy I that projects other are mentioned our business demonstrating Center. projects were types that team things. But looked to could of our XXX also different operated. implemented. over of total business. In this learning our fact, you, at have I just that is

in -- reflect the able So to growth as along near our load next we GRC those in well. definitely this we're as see pass forecast and the term our amplified then simple, next savings affordable model being realized for

that's the pass have So along to those mechanism really that customers. we to

end reached our to remarks. of back Patti like I'd Poppe time. the hand further for over We've now to

everyone, Well, we too. you, today. of feel to at us the kind And And that, ongoing momentum. progress we We PG&E you really we right a Thank right great Eli. time, joining feel appreciate look we the at you Have is and forward support. day. your hope delivering EEI. you seeing the appreciate

Thank you for attending today's call.

now may a Have disconnect. day. You wonderful