Pacific Gas & Electric (PCG+A) 9 Feb 182017 Q4 Earnings call transcript

Good morning, and welcome to the PG&E fourth quarter earnings conference call. [Operator Instructions] At this time, I would like to introduce your host, Chris Foster, Senior Director of Investments with PG&E. Thank you and enjoy your conference.

You may proceed Mr. Foster.

thanks us. of and phone on Keira, joining for you, to you those the Thank

turn over will I based available you about Before to it financial on that to I our and our remind assumption, want management. forecasts, discussion information which today outlook include expectations statements to forward-looking are Geisha currently Williams,

call also Some important factors of actual a described are results second non-GAAP of measures. that page company's and presentation the in fourth today's presentation. reconciliation between earnings quarter financial includes could affect The the GAAP the

encourage over We that and factors report filed Geisha. to the that to with also Form be it risk of happens you annual there. review the will today discussion on With XXXX the that, late SEC hand XX-K I'll

I remarks mind will and today. that to continue core ability the morning Chris, California Northern good in our make my fires I I operations of response prepare we also Thank on you, our including and of to on wildfires. and top improving majority for potential the know that progress be touch to continue topic to will the everyone. spend wild

Finally, developing recognition thoughts an their have innovative that continue and had communities record who reform ones results impact. wildfires in property the and impacts and better loved both we support But the impacted walk financial utilities. and is this and lost recovery. the we public have profound had of were state and be we extraordinary who the comprehensive how we fires, a solutions through and continuing fires. absolutely to we this a have and goals. that conclusion causes about differently in Brown customers I quarter. California Southern infrastructure for our how At Cal how the families comments. that significantly California's course importance state prevent, financial respond help as have across and its for They wild Governor need his serve They resilience. consequences to Fire then we implementing tragic investigations the Northern don’t as acknowledged on and our of growing has the clean advance the address tax address both well to The still have energy of will from is economic will in are solutions point, and we Jason as followed they to think a by the for there recover

Picker so legislature we understand and I touch a looking to threats. other more ensuring facing More state the that CPUC working resilient. have and it comes I minute. includes all which in That risk. how will practices it and requires plan future investment It that at these manage our looking have and going immediately, together commissioners. changes infrastructure agree couldn’t recognized President away, more operating normal CPUC includes of on So adapt. a to we climate mitigate we members climate it We in includes had aren't to is and new when challenges ahead California is

past events much challenge. physical need the societal to infrastructure and this other quickly. bigger communities PG&E the than that facilitates than infrastructure need just withstand and IOUs a environment this is fires. collective just from year's we our And Our rebound also that This recover can policy these California bigger well. and new ability It's as

course of California clean The vehicle This isn't fires of a build the a emissions impact over For energy to a the of on resulted wild its simply example, full California sustainable. few ability last in it year Northern equivalent meet goals. in has just direct days. state's the year

our communities, with is leaders going others and are customers, our utilities to we find fellow that together work to solutions. the our commitment regulators, Our our in and state

the want dividend to Together I one as base suspension tackled load Of us and shareholders in the on resources. complex. earthquake. clean nothing we the know for sense decades, have system In emphasize new partners. our renewables three any Or improving while the the its following or at difficult news approved state's XX% with it's of years was new the for not rebuilding In our system nuclear the long-term But proposal code Canyon big, to is have the retire of causes modifications speak me let reliability. target upfront be carbon-free was fires. Prieta so fires about complex want impact wild early codes power to said Loma it announcement. of energy was for our also to the The result well. information the safely Diablo meantime, we Reaching time acknowledge this our that wide had joint course challenges the recently, while replacing just particular, that. I facility investors, what we decision for

appropriate As importance this and of and we The any more these to board suspension we for We to flexibility I difficult we board the uncertainty the circumstances. and issue management we current we management maybe of liabilities are of are uncertain revisit driven appropriate able independent with on the team uncertainty. about the that associated and exposure Ultimately and to clarity dividends the potential advisors the dividend the recognize our continue the this prudent of fires. investigations of narrow top issue action get board re-evaluate a regular the and are noted support to ongoing level investors was is quite basis. intend decision potential and potential time. the some mind of of reinstate liability. those if then, to that as was on the broad has the sure range the Until and dividend course the by with determined under The earlier, and for causes

legal an current This establishes maybe the biggest fire, utility. is investor-owned if such regulatory, Electric equipment legislative Gas utility fire the condemnation you Company's the a a and From a makes and to the we legal regulatory wild San have risks, liable proceeding. cost As of In a damages even simply cost fire for know, that effectively already their reasonably. uncertainty are flawed of shifting the aggressively arenas. inverse the we event legal as of fronts. no of to This California's public Diego three severely believe strictly for acted in many We is if found with wild bad have wild the to the company factor cause is our re-hearing rate of it and recovery. insurers requested It fees challenging utilities on perspective, and application default CPUC recovery underlying the shareholders policy. theory behind a substantial is assurance been

fire asked the we in wild legal we a given about its trial the SDG&E the CPUC's the to On decision side, condemnation interpretation filed Butte case. in have the the ago. inverse application of month court reconsider motion There case a of

it to be addressed. of and driven only deliver and not of needed climate but capital solutions that effort inverse our rationalizing affordable involve believe needed have what societal meet hearing and the part as financial events our arguments. set clean we And broad March relates industry's part energy of solution the XX we for as of fire must tackle application this has attract includes This before to reliable, ultimately for the for long-term change been California informing We now our short-term, experience to the to a on climate of our we In that’s for season. a And and are health we issue customers. it's priorities goals addressing when holistic a condemnation. makers action implication issue extreme energy finally, ability to to over law must another is will that California us resiliency safe, improved provide not continue affordable to clean is grave the for

a Let Diablo the our to Canyon will along just me we and accomplished am example of that now partnership through joint coalition. application be mentioned we earlier, the have will of proposal Commission. Regulatory I share our pleased parties be plant milestone. seek as operations. morning license This the re-hearing transition that what CPUC's can core and renewal announced an decision huge not joint at power with is that we withdrawing on the Nuclear to I And really

really I now of our stepped during am up to what was proud XXXX, back how year. Looking employees a challenging really

through all culminating just We or waves, most with come destructive the a seen. have breaking wildfires in have ever record trees, record we breaking of rains, number heat dying year dead record

customers and worked above our or norm to and our As while incredible the grid to a historical continuing a incremental XXXX, employees. efforts. result, acknowledge increase our of an dedication In in support our of want modernization our teams million hours X I XX% advance communities focus

state mentioned, I so we to Bay. as is areas customer North wild action in another efforts fire now in wild Looking well XXXX specific aggressively the needed the fire some our as prior and as our moving with plan, impacted ahead in focused forward season are season

As also fire will you can imagine, resiliency reflected GRC. our on in which our is planning focused be XXXX

a areas disabling include, on throughout disabling We have operated for already wild season. re-closures wild risk XXXX. will first, re-closures system high And fire fire continue actions remotely execute level [ph]. on all [dates] system to high that They at taken in specific risk controlled manually distribution the

in of weather use forecasting expanding Second, stations modeling.

management issue. practices, working vegetation highly implemented our and complex others responders we collaboratively to capability. pre-staging already with lines, have fourth, protocols expanding and And and already Third, extremely our response emergency for evolve de-energizing comprehensive first a our new

move the Just officials Bay local them. as engaging And creative will of to The we be impacted with reflect families as right ability important, with that part quickly there now ready technology communities. we North core rebuild the tackle solutions to California's moving advances. on local are forward are based and government

system We the quickly. improvements be new operational be design executed see where will and communities with working can to

we looking and techniques, definition solutions on that end, forefront are also few micro-grid XXXX, form at that that needs. clean two not letting of I up to highlight We am be Across will areas keep on operational both company inspection executing about. in new at fit at which projects the we pursuing that excited deploying the looking next goals And focused as energy specific enterprise, I high as that their the foundation California in of particularly we non-wood cameras years. will the well our poles, remain of will are policy.

of exciting project changes areas Mayor of is surrounding undergoing Oakland. First local leaders. other and are leadership a Schaaf the the The in Port under Oakland

vision a replace a fueled ISO an to resources first as the in approval of reliability through of filed last a this the power communities are It's We We in proactively portfolio plan forward. key a contributing really instead just the operator energy to generation It's are creative energy ISO This preview CAL what together transmission would communities or come plant because efficiency this fueled week, of system fossil when power aging California other see alternative well. to the clean and this ground call for And envelope moving distributed this a of that Oakland project opportunities at proposal independent to draft transmission of We and included of as with what area. can fossil initiative. state will It's big. their looking energy look time CAL which proposal that like. resources push the Bay deployed with mark approved, solution. is the step with scale. will staff as energy solutions. is energy we the it's reliable in our innovative local of the future we our Oakland example clean And through great to for clean well areas up and to provide economy provide what energy we fire when do the at clean that art we the generation breaking other are an work throughout a

zero carbon XXXX. issued vehicle we the see helping tremendous year reduction sets million order emission California's goal vehicles addition, which vehicle recently a executive X space. in of meet Brown the by In to having partner electric roads on goals to emission in zero opportunity Governor state's a the

in XX% infrastructure are portfolio states nearly the Our and it. energy forward this achieving working goal and GHG-free we key enablers of electric look meeting to with

$XXX implementing and for receive year. already our efforts, and charge electrification request EV communities. This commitment California. and portion to to using the to for represent even made evaluating efforts, light really the clean moves These school a in duty goals of solutions just engineering while looks last vehicle medium we reduction beyond our are vehicles electrification technologies coming and bus planning push our filing new at for electrification expertise quarter advancing duty testing for hope and network We energy and carbon our approval early we million the heavy

events. sight we system operations. every core climate change partnering state over of look of that all the in will safe, and utilities. in I impacts Providing innovative to customers before we At the service and be and to So mitigate day. I is lost address solutions pursuing to mission to each resiliency turn inverse lead assure take our to resolved are it. for continues time, and across Jason, finally, And impact reiterate want can proactively we avenues future to that reliable investor-owned condemnation issue a aggressively critical to affordable it addressing we to the to I forward our This our haven't a addressing must continue the tackle the and application role you that be meantime, of offering same

said that represents helping As bigger meet state's just than recognize key a about energy are we is we this clean and our PG&E. earlier, we before excited to we both it turn role will over customers as to play much But I in goals your through questions. opportunity that, financials our shareholders. for walk With to take the well you I the our as Jason that

you, Thank good everyone. morning and Geisha

address First, guidance. like to XXXX I would

XXXX Given share not fires, guidance be will wild October earnings the today's be call. uncertainty providing California from Northern on stemming the XXXX per we

about addressing Northern CapEx related will wild guidance will, into we for as I clarity be XXXX, it well have to as rate-based better however, We the and liabilities, and potential if fires. revisit we fires XXXX any, are California that this impact wild call. at additional sharing I on how thinking assumes guidance the beyond October providing we to equity. are Northern as want emphasize no today's from California what XXXX

in outlines I then quarter by expected tax the expected impacts reform covering results. the impacts fourth and will So four Tax to Cuts start the our from transition Jobs from significant we today in also and charge the law for Slide cash to are impacts very I cost implementation tax and the component transition expect will as taxes benefits we to fourth generate these based early in as shareholders. quarter. first those the needs rate changes Income December. so our recorded PG&E overall a of are to about in a tax minute. that into of Act we There provides financing also customers in I higher to flows growth well we expect changes are want signed talk service our reforms. of our reform long-run and for But emphasize a

today done expectations January early to best there will reform is would plan the CPUC we tax reflects and when details we to file authorize to get how guidance is work implement ironed out our by CPUC March. the and ultimately Our reform that we but if informed be the need In implemented. of the end tax all

the XXXX we required in disposition memo changes the for are tax side, GRC. track On the GRC already law impact account of to

time. filing that Our in accelerate March would

collect by as our lower In impact be revenues, customers of million annually result on approximately the $XXX that we revenue reduced will the we from the terms tax corporate anticipate rate. of a

while effective expect XXXX will our to XXXX, ratebase in payment becoming our to in cash won't the earlier cumulative reduce we more XXXX. rate of our lower reduction revenue accelerates actual year in impact the on drivers $XXX of annually of long of first CPUC the we immediate in years. to over the federal on Through results operating tax more X.X% And we will third combination the plan. loss. our now depreciation shared of operating then then elimination next approximately a quarter a a tax This bonus expectations this previous compared $XXX see the for loss the $XXX X%, due approval bonus payments a is which million federal in more and be elimination amortization in bill XXXX, of forward. on as in net be X.X% XXXX will incremental federal carried call. corporate XXXX, maybe about the particular an ratebase Based PG&E we in and to net tax total depreciation, the tax benefits cash lower run, of the From any implementation two While perspective, await these year expect million million payer we growth X% the starting

while XXXX, bonus already that to slow a Beyond we tax a higher incremental will end in growth was reform, depreciation result to scheduled expect to previous at grow the begin rate ratebase law. under as the given XXXX of

talk earnings two perspective million about next anticipate will with and back, from from I needs we increase not basis for the $XXX $XXX equity of overall we of an drive on So would And equity the in XXXX expect ratebase. net years. stepping over providing in incremental earnings tax a bit. million that are XXXX today, we while total reform a consistent guidance cash an more more in change will a in more operations roughly

in reflected with also is to X charge results as for an summary, did we of needs disallowed of per reflects fourth term quarter. well drive fourth utility company's assets This legal higher impacting the for basis cash on free while clear and and in wild comparability impacted from to Cost that fires the operations included totaled we California In ratebase regulatory reevaluation are also at as quarter things operating after work Slide results. that $XXX our need our insurance holding the customers charge and other costs. fall in the drive of reform through reinstatement fourth the a the net which and comparability our items Earnings loss Finally, a item tax associated the as process, it share is such the deferred and million is plant. of Northern as quarter going growth, including GAAP regulation at record benefits earnings onetime outside long $XX here. shows tax, million financing to our shown $X.XX. came earnings. tax

$XX For expenses of the pretax. Butte for we $XX legal related quarter. were the million recorded fire, pretax Pipeline million expenses

Our pretax. at came regulatory million in expenses legal related $X and

variance for of a of quarter We net Slide net the due impact phase earnings $X.XX full $X.XX year-to-date XXXX from two due $X.XX was over the Moving favorable this in operational QX December XXXX. of were which which of shows unfavorable, impact year. $X.XX in decision, for last X, GRC spend. year. comparison fully benefits a unfavorable. the to case as received of in QX tax zero GT&S from timing unfavorable were reverse of loss Timing of part year. timing final We the in on quarter the full was year $X.XX in decision and rate Due $X.XX to the the the This for incremental repair zero operations of the we to the were XXXX also taxes resulting unfavorable to

rate reversal expenditure, of and $X.XX resulted on certain and award resulting work we base efficiently outlines items. the XXXX. assumptions amount rate quarter earnings primarily which Offsetting more call, we created XXXX, incentive $X.XX some the base timing unfavorable fourth quarter were received bundled items the customer execute of delay these quarter to unfavorable. for the mentioned with of it expend dilution no energy in the of $X.XX negative $X.XX Share related of quarter. the similar efficiency capital have for unfavorable favorable a some in to cost quarter. in in third from we X QX variances As capital In our a Slide authorized XXXX totaled of QX. our reflect our for for Miscellaneous

the lower results few additional that factors We a our offset impact will have a provided other. quarter, expect could rate year also in largely which we for each

basis, providing on not earnings enterprise. operations the are return to across is on for our XX.XX% CPUC equity XXXX, share we guidance While per the earnings an objective authorized earn from

$XX $XXX guidance plan the and million range expected X. fall Slide $XX to of pretax $XXX expenses final amounts this between The reflects to incur program. million comparability to to related Pipeline pretax. we items reflect Turning million for and impacting million a under are

program our previously to expect We fall $XXX the total within range spend to million. $XXX million disclosed of

range million estimate expect California a insurance estimated million for with pretax $XX $XX cost million, and the of of range fire wild This fire. insurance are We Slide $XX any legal costs. of not million. of This to claims $XXX $XX associated have amounts any by Transitioning assume includes do range X. million of for not Northern to million. does These Butte claim net related cost to related estimate include between $XX legal and other an for partially now to $XXX cost $XXX offset to million million estimates costs. recoveries

with roughly spend Our in consistent disclosed capital plan expenditure in and what in $X.X XXXX approximately plans through third with XXXX XXXX. billion are billion $X of we the quarter

Moving Slide to XX.

million mentioned, As XXXX. the next through of was our XXXX roughly annually over we generated our usage This for I and rate outlines last now reform thinking X.X% expected to have X% the that couple XXXX shared $XXX and met about November. of based equity our impact the of This programs. filed gas for last case internal equity to annually largely previously primarily we that programs sources be to $XXX of support needs rate storage XX a also which CapEx to how with tax We base rate programs incorporates Slide million transmission years. approximately and XXXX previously the through reflects are several our growth we years. rate

comparability needs reform $XXX earlier, equity impacting as XXXX. I items equity our roughly incremental drive XXXX Additionally, requirements. And million tax and both in by also shared increases our

continue to our programs. equity with about As we internal dividend our under suspension, plan plans we think issuing equity the do

the equity equity approach. resuming dividend normal program Geisha expect is reinvestment the we current amount be greater generate. mentioned said, to covered the also With programs reached more halted as as dividend revisiting and a our dividend we a clarity But with a has is expect the financing However, these result so been in suspension. suspended, that will our earlier, committed as of will needs dividend of decision board the decrease

we the the cash result that our result financing the and a for from could that that an any wild fires. cushion be as needs is liabilities California equity In this few closing, for December. what challenging has California our in by months a recognize our uncertainty fully I the been shareholder want to both creating we of ultimately that decision Finally, Northern reducing Northern reiterate with if community fires used the the conserving wild needed, potential are dividend and suspend suspension, dividend to generated

As the are have commitment to for working Geisha inverse and you apprised condemnation customers we And shared, shareholders. hard our unfold, will address both that challenges facts the raises of our progress. material that our we you keep as

up for the So open with that, let's questions. lines

[Operator Instructions] first line the from with question Jonathan Arnold of Deutsche Bank. comes Our

proceed. may You

question more that the think. I quarter, discussion -- in Is update. A I the this you on incremental fire will obviously, but you Butte see correct? against Thank haven't the you for XX-Q any guess, taken reserves

correct. is That

the end you had determine in quarter the information didn’t of high think. have you last there claims said, were didn’t enough about, I know you number because And enough to large

policy there. legal just you case is the you and front the strength reserving a I you of of the that your still not fact that sense is if position in us curious what's filed of some challenge a charge view was give So of the taking the sort could of driving reflection or the are court. of your

the feel quarter. for the as it to application have relates the inverse challenge. utilities. of investor-owned detail condemnation the But don’t Butte settling still continue strongly The mentioned, progress of XX% about We cases fire. make about some total of claims we strength Geisha in importantly, also to the our we of as Well, related Sure. fourth to

as further to on relates legal And data progress a as claims it so both as need we well clarity front.

it In estimate, think? that than order no to you a that we the probable of way could it So right was last to more is where is have or Jason? is quarter, are, sort number probable estimable

Butte for accrued $X.X still that have the we far That’s correct. be the that We related billion feel to fire so appropriate.

just this if And other possible. then one Okay. on co-area,

couple that whatever equity And in it understood before, now next suspension are the about right? I So you that you sounds dividend like the saying see you years. Have covering that the... just said of

to We any length on of didn’t suspension. just guidance the our dividend the we provide drivers equity underlying needs. try base was What give the of

potential the fires will as an any of to have from dividend You the California make any the well suspension. length arising liabilities, wild assumption as about Northern

getting But drip. did No. I needs, that that Sure. you the you think the fall I felt current the wasn’t you turning the out what are dividend created you as of of by that. off say given and under suspension laid equity amount that would

So there is time really to that not much Is fair? the going internal programs being. be for very issuance under

of to the less internal the for dividends the of coupled drip with provides needs. dividend We capital. expect will drip. issue under a continuing the internal the our combination programs continue sufficient with contributed internal we equity issuing suspension under financing the year suspended That from our to but The has historically programs ongoing us roughly million $XX

roughly? of the drip component $XX XXX of the So million XXX to

Yes. correct. That’s

you you from condemnation curious waiver I something has take where request need was about am be up idea. if You think would encouraged be the on Is would still case Great. building address idea but XX% just to felt of And you pending so you a somewhat Thank Okay. And charge. equity cushion you there do it did the the or a against of the to kind of XXXX the talked point you to you. the like any fires. a right are condemnation inverse inverse you if to feels equity? might that’s made kind that it that discussion some and even the want live that in commission -- could good charges kind then an just on court.

out even the of believe do the with it of so action. don’t Well, mean if question, waiver have file compliance That about structure. be sort have cause appreciate capital we the the I still now I and said, our regulated of to talk fires, CPUC of we the will premature we with we being Jonathan. liability right potential courses

that Has or? success you with before have ever done something

never We of part energy actually prices overall given was resolution off the that as ultimately the filed bankruptcy but of have by the it on commission disposed the they ruled proceeding.

Thank you.

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

proceed. may You

So if not this, that we color Northern sure to just, should more get your fire answer on the claims expect can any filed been in first have California am you the I XX-K? for but

It's we February. a have superior forward. that’s and more coordinated are. is where are do but San served General claims procedure way, complaints has going filed. a the we know the Francisco or those all Counsel am are XXX been they coming the up of just we been Simon. PG&E. against filed about They about in in end bit been, learn what cases. We this case we filed here. number John the this about don’t management That’s morning. there know Good is there conference highlight they court -- believe I But to so and status if point and is at you, the have they for We of the the little where a have of towards the I by there been discuss will There point briefly where

the about value? How dollar

we do the property We And the personal know claims We dollar know. injury damage Very much point. about under at part inverse this or negligence. insight early those complaints for asserting all claims either on. that’s have don’t under value that into are most

on we dollar value more When info claims. likely of the Okay. would get

a that’s going while. Honestly, to I think be

very the So and those right no process. now are is stages schedule cases set. There of early at procedure

and year, know no discover, for over course to so, the it's of more half set think might it of year or even that, into I next but course we which hard visibility over hasn’t on get the schedule the sure. again

that question takeaway they as here how to the to their are has? have a understanding crisis on, you listen have did understand for but to the other the given on the this my My your I to there not Okay. community session don’t of potential to just am you I is from implications related do is just so cause financial communicating costs more Or is make fires I bad rules. sense under you sure that And all week. you these have are sure this utilities they that be that investor-owned any could commission's I to, director take going at all the and doing all I guess think and and on they what they importantly, if with understand guess it are it take would inverse curious it the

Steve I tone think and from also is to say, were week. earlier the wanted disappointed this I This the we webinar the Malnight. comments with

to important context. little put a it's in You bit it think

where there discussion. about First this anything so parte, cautious the was and that Guzman the for logic And they comments Clearly, Commissioner in the very or issue. looking condemnation of mentioned delving forum and broader they with things. could against all them and rules address from ex Aceves an applied it courts you little think noted into be inverse was of urged to about and were other utilities discussions wasn’t for WEMA clearly that legislature President they of concurrence were was really Picker when new San the the bit a suite that commissioners, I a at you the investor-owned look inverse unsound applying case that Diego the at

than other discussion. more there is places some think context in there is shown I where in maybe was that recognition

the our to and Sacramento but not to available perspective, taking we commission the talk California think every from others. I makers opportunity only are policy commissioners also really the and across and So all

the than challenge bigger state-wide a it comprehensive It's is just for bigger significant this and utilities. a said, calls and PG&E than solution. Geisha investor-owned challenge really As just

place very that every So explain are we share active that. we to to be message can and in

other other in parties also and solutions. comprehensive partnering labor utilities, out the with interested We seeking investor-owned are

that So are work and continue to going opportunity we we to hard take every can.

Thank you.

next Stanley. from question line Our Morgan of comes Stephen Byrd the with

proceed. may You

case and to by timeline that a next and just about on on you think sense But to more decision had hearing after around hearing. guess think the I how be think curious that. on there some I March process, if I process playing I to it be made hearing. about get steps we for it How the that wanted the after that could ultimately color out, little XX. court depends about give mentioned if Geisha just the should talk will would wondered possible

John Steven. Simon. Sure,

sort what at He there. time actually hearing then I is We that of arguments briefs. The know, schedule hearing. options. You the of and know up you is happen. which There listen We to that. going XX. top to and There briefing is as is leading then to head table after don’t hearing mentioned rule set know judge may scheduled filed don’t March that of the for may some my right

what know it's going So is judge so want Several I asked what speculate have and the after to there. wouldn’t about, really do on to to hard happens that.

could little then to looses speak considering that two whomever appeal fair we appeal There but any we case granted to the the purse decision. I stops then that is motion the and on we seek the the go on appeals appeal. if months would then at any know again briefing but If a we is of and doesn’t lose. a uncommon. writ An years to It's take, that permission we will that granted That’s know asking months, to then for not motion, is timeline writ we if a [writ] whether issue nine on isn't lose Butte expect would the sort papers from completely of one because into plaintiffs, PG&E, But is the situation appeal to seek would I appeal again judgment look appeal. an get range wide estimate of If that denied we is that and point a court is appeal unpredictable. file You permission a automatically think, a appeal. for [ph] that. an six months appeal two on writ to to this on it's re-raise a there ahead

could think, insight we you that’s play how I on give So the can out. best this really,

And Diego guess San I as the that. the decision Both well as then to well. California That’s go as ultimately Appeals on of Court for to I this adding helpful. just to guess case which expect we

apply are victory other to effectively be earlier that do, the you on in able cases to of likely as to Northern the and all one California per to If that filed. other would upcoming for terms California apply these are arising claims words, those decisions that of of to Northern question Fleishman's have be timely one court you case decision or these cases the enough cases utilities fires. In have likely do Steve would

says overly be it's argue on bit the certainly little how the a written. a considering don’t would most considered do. couple I by court point, that to fire particularly and that not court say next It a there decision decision another It's over what certain applied years. depends I out would trial courts good would get they worked but then that but would Steven, appeals and of case. on a want completely the and We court is chance wild in speculate, in from the

Okay. Great.

questions. And sorry for all the

telecom some as telecom there Just one well. of might take is on from a -- Or intersect one with at that sometimes or imply equipment co-leasing causation point. about equipment too What or investigation at thinking the general the last involved this if with on And overall that whether is how side on, your the equipment that am all uncertain really is of or involvement companies. telecom things? could not I

to some us sent ones top of which various telecoms, we letters I to the know course know of ongoing. and make don’t that Cal asking respect is letters sure evidence said, the Fire, you, to re-stress also the it's after of with we to Well, what They investigation the are investigations those tell I to doing. what agency Jason are off wild lead companies sent which early which very and preserve XXXX head. my will is we Geisha fires. do

we think to as investigations as which than the litigation. know. we are play have world how out I I PG&E really, any, potentially about talking just and That’s think, facilities, in But see I it's here. see if bigger So far a involved

XX% in they other PG&E Steven, at If that, to the fires, words, poles I of used. Geisha. look of poles you the the and jointly like XX the In impacted footprint could fire for have that area are are these something XX% both just this something telecom Only When add equipment equipment. are PG&E. is

little So you should of that potential also impact. a bit in terms flavor of the give

Thank you.

from Sachs. comes Lapides the question next line with Goldman Michael of Our

may You proceed.

questions easy you. Couple for of

XXXX just overlap cable, the is it impacted telecom Is the fires. it it of can the your service wild wire you with First remind all, line telephone, territory us companies in October both? of which the the area is by

cable that poles I that the fire is to Michael, but be equipment quite And say over this Jason. is would up telecom and have large and It's our cable it say there. of what hard definitively both companies footprint, traditional bit telecom equipment. on would owning a

I the settle report Would Can until them. kind and just part those to to as get little well. and of as about a process. wait that your wild am start as liquidity. I it. as possible talk flow think of trying as other meaning claims, Fire you about an October fire Cal early you complaints bit you when XXXX the cash bit maybe the all of Got get start you whether, cash would think actually trying kind obviously little We paying some about out a to resolving own of the through reports, soon am you

just start publish way of We hard results early of really Michael, it to of months will It's anecdotal some process. the to know probably be this give, on to of We will relates causes fire, that so in seven really the cause settling too I claims That months or it fire. of any as evidence claims about or the about don’t fire for on six didn’t provide took investigation the estimate kind just is It's though. kind when another Jason. the resolved. Butte so. the fires.

right of before year fire good Obviously California Northern to [dues] are fires we it time we complex set better have visibility just don’t was a sort any started any the of [ph]. after to the now a on fires more much wild So but cash settle flows.

the still Even statute process you and thing. rule. to potential in inverse reversed, San and kind have Butte. last relative negligence then process Like is we if exposure How think condemnation all do seen work a in saw you is kind how the there or of is of of that Diego And that inverse governing process it. condemnation kind case related would of where governing the private Got lawsuits. through

standard It's after day John Very reasonable Simon, the which is of of and theories trial. a of Michael. the by or] fact different in is end the at determined [try negligence the care

strict right, and And about matter. really I all whereas said, if it's those know, liability standard In care. of inverse conduct we very is utilities as a doesn’t everything differently cases even you case negligence about, so did you think and

road. are that said lengthier that’s court court in the as have determined exercised ourselves process get we of on to it's down We if negligence we that. to a prepared we and in care claim we defend reasonable the think all So Butte in case, standards

you like, that on Got was case and what just can time took actually can had total claims know go were it. to of Last go before it in a one. the got Butte the How the long the did just much had to that But all the $X.X XX-Qs you claims handle kind take good I you got how a you before before through you billion. that remind filed submitted through evaluate. chance number the of up us, amounts

more some possible claims could in. It’s

at spike could why I come That’s is of The damages year today. fire. we on the -- expired the the more anniversary two number is stable the the large fire, a injury limitations the Butte runs which possible on of year got three personal sit statute But the at time we property filed. had We anniversary it's which claims of fairly said for of limitations in. it which where So was claims, claims claims. at statute

had That’s when claims hard Our in are the could experience two-year within of view towards timing But thumb of anniversary up the cadence spike of best when happened. the and sort statute that come expires. was on of It's property of in the on of the did so more statute a again, filed. them or come most to Butte what our rule see damage a year with we and event.

Thank you.

the Our comes Evercore of line from Greg Gordon next question ISI. with

You may proceed.

questions. of A couple

regard plans I by a to year increases disclosed said heard year. million you disclosures $XXX want and to equity. you equity. In just debt understood clear a today, million of you needed about what And I $XXX tax I QX year be next you with are million for this to Just $XXX saying the your year

you the of you the not On dividend generated hand have -- are of for annualized. other are $X paying virtue not as billion as long doing by cash not that

was to 'XX, the your in So year are is are would framework that or need or your for that clearly the from what to two are going you million just to saying am different issue exactly you I million $XXX you years, a normal today. $XXX actual saying are are equity guidance for be course simply on next not going going of business equity issue giving theoretically that. you but to be the of you us amount

Thanks Sure. A the of question, things couple for there. Greg.

call, to $XXX to On forecast million our $XXX for the related QX XXXX. million equity

our largely XXXX meet XXXX guidance which $XXX base needs. what today's of equity on programs million. discussion to expected provided essentially we which internal to our sort the average equity, we provide call XXXX QX the of generated qualitative underlying XXXX needs was was in to we the On needs, Rolling wanted on equity forward through would changes equity be able and and in

in change roughly reform. to expect call from weighted XXXX to of million $XXX and tax XXXX need and more that And the guidance XXXX XXXX both the annually QX million for principal we $XXX was so now

than drivers same the offsets out time equity related the Offsetting expect continue potential assumptions I is numbers can Ultimately paying comparability, equity we will the would given any of your have of issue with had from raise. try this sort to suspension here what guidance we also items the make this underlying equity to around -- programs provide which needs, potential do less we the so you equity small that under that disclosed. the to to year, the those for those the We suspension. Northern we our as have we your have tried the are although of be dividend, dividend. as needs the At is the impacting equity incremental from to assumptions fires more a view on do equity well not internal length to liabilities we provide dividend components. California since What wild

is Yes, question, that’s saying you which would your no but all terms this be a the the XXX internal that on it at keep going actually year issue programs, begs do given million any to that in $XX proceeds. expect very probably not of are clear in business very things normal course of dividend also were equal, of clear. you lower, But equity like there the guess now you to sort the therefore generate I would drip minimum

to Yes. intend We internal programs keep on. do the

$XXX be it the While ranges $XXX generated variability. average as result for as suspension. was the less last dividend annually, million. The a they between $XXX three were much on some though million million there to as $XX million of years know We that could

the will as are there variability what to generate. those some components. those But So be internal programs

-- at look Okay. question you flow the and cash when you quarterly your My corporate That’s subsidiary from at from a cash parent. XXX% a clear. relative is, PG&E perspective, second look Thanks.

this issuing than to cover costs. a does parent equity basis. annual and obligations closed parent And have at interest any Now parent have system cover overhead point. to quarterly parent sources the to its costs cash you are those and that up what and in the on to the cash or approximately, other are essentially up other PG&E you Not is the cash the a dividend, is suspended the flowing dividend fundamentally actually

well to the the suspend Well, Corporation. as at decision the utility was both PG&E dividend as

flowing programs. to corporation. the mentioned, continuing just of of frame there issue from to ongoing And utility to under corporation. the is the That of equity more cash internal we sort are being I cost no, sort no said, as So, the the

also of to have paper But of the programs, markets the We we $XXX beyond we XXXX. company of about much mature from accessed which cash overhead. commercial in in the sort internal have the in holding debt don’t million have incremental is company. starting at holding And the sources really way

having company have we utility not the from at sufficient liquidity despite the holding So to dividends holding the company.

Okay.

not meaningful you corporate unallocated given being It's things what's What advertising that’s quarter? at for So that. parent. unrecoverable, at expenses look not paid or like number any like a rates that’s in incentive compensation,

No, is below by cross-borne the recovered to things costs those customers utility cases, costs. the as compensation the that charged essentially are such utility majority not back line They for rate which are not advertising, of level. incurred really the but are as at those cost in the are

So at minimal company. we the costs have overhead holding

you. Thank

line the Christopher Turnure of Our question next JPMorgan. from comes with

may You proceed.

June I to just to just it. continued the Buttes challenging any even the as understand, if to June there. you that remind you grounds settle XX damage element on appealed it then claims had And are the secondly, proceedings, me then relates decision one, you that decision challenging knowing wanted punitive you of can other

Christopher, John.

these Let me both. take

timing impact could condemnation of we and any aware both the well outcome The the are motion one, valuation our first inverse settlements. that of

about We That’s the Butte writ your strike what's right court writ our to And are reach and trial mediations respect been monitoring motion. up that denial motion punitive of that damages of very very been company for to not the second case. have what question, are now on on diligent where really some has the had taken. carefully. took appeals from careful right now. judge's gearing and try we With the We ordered that we appeal court ahead motion a getting to to settlements of to appeal the

court So before to mentioned the on on on the writ is the issue depending appeals. process the the the inverse before I seek nothing but as court we we now decision, appeals in earlier, that. would of There of are outcome court appeals of Butte briefing a of that else of

sorry, So, element only? that’s damage for the punitive

Yes.

entire So not decision? of an the appeal

Correct.

on XX. may going March You we want are what do [indiscernible] to

as get XX, And different on damages, out of of March condemnation punitive and just the to XX inverse issues dismissed our issue Butte. reminder, March is motion a

Butte. Punitive getting And many happening those front there dismissed. legal the damages, in the that getting and So condemnation inverse eliminated. is things on

was unsuccessful you back Right, punitive distinguish time other goes I June element, were from decision. trying obviously. decision that on right. successful damage was to that challenging how the Even or than What in that though

Yes.

On the decision? punitive

were that -- break on just at there into on time No, two, what we your options I condemnation didn’t guess, you could for say that. want just it inverse obviously applied

get appeals a condemnation. Yes. writ motion to do on now. we of We take denial would initial the inverse our the to of Butte didn’t court judges rid of that But

didn’t talked I about, believe case changed relevant is the where we decision a basically was what's have think the condemnation they decision as indicated court CPUC as San WEMA on on Diego's CPUC's inverse to spreading that their costs.

that’s we on why sort intervening have that’s Butte where in we fact as of renewed our that. are So to the motion and

time. hear that legal at you I It that guys of challenge that up rejection, a didn’t Okay. enough you. me surprising have seems to you to to a the of outside feel higher CPUC like case kind court good

that were inverse applications insurance denial, The the the basis denying there inverse where by for heard were back that cost were cases covered was was utilities commission. condemnation evidence previous of under the levels original recovery the cost claims. recovery to historically directly therefore at the and fact by in Essentially CPUC motion was applied that no no the investor-owned there settled summer,

now that direct evidence the not associated that given the investor-owned Given commission WEMA past the for ability condemnation. utilities San and inverse for application, do costs denied the we basis have to rates that Diego's is have with ruling the this adjust fact summer the

facts over of six sort changes So significantly months. pretty those

Got you.

second and the speaks you earlier Hopefully, of little to questions. is bit question a one prevail Okay. broader will there. My

a appreciate at CPUC of the my situation but opinion. have cut seem gravity message this strong You the your clearly in sending here, not does dividend to all,

that So customers some this that to you end. to your is going hurt or is in home to do Like action cutting else the other there could CapEx really something shareholders. protect the taking guys you point

it want dividend means or question. to was for strong I way a of a essentially about the Thank the suspension one dividend. decision the consideration that, no to message. around statement just you sending the part no for was By decision emphasize message the suspend California to the the dividend under our code. the evidence The result underlying code a That by investor on that the dividend lawful and consideration and decision, that is a is condemnation impact said, inverse our having as of that the needs governed ability strong commission to utilities. pay evaluate been of corporate

makers state given We do other issue. are of that President the and believe comprehensive constructively bring the awareness to commissioners awareness to key change. We around on messages are need number multiple comprehensive of the the some that this state policy and the We issue and solutions trying the address to a comments aggressively in forums Picker policymakers as well working is have find impacts made have solution. climate and understood of and challenges the believe of we pursuing to the the as for made a while

X for have thank a I and thank day. It's you. joining Keira, you. Chris. o'clock. want Chris, Thank This us for to everyone is thanks helping us the also safe with today. call

the for attending. conference. now day. your concludes Enjoy you Ladies and rest of gentlemen, This thank the