Pacific Gas & Electric (PCG+A) 29 Jul 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the PG&E Corporation Second Quarter 2021 Earnings Release. At this time all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mathew Fallon, Senior Director, Investor Relations. Thank you. sir. go-ahead Please

Good in Ashley. And you thank Thank second morning quarter participating PG&E’s earnings for you, everyone. call.

Officer. management. President Joining assumptions, information us and Chief you Vice Officer; outlook discussion about on will future Chief our to include available Financial that currently and forward-looking today’s today are based Chris financial and Patti Foster, results, forecasts, Poppe, are I expectations remind want to our statements Executive for Executive which

affect could today's the actual of call investor.pgecorp.com. the GAAP that Some can found the a of factors are measures results page presentation. includes be at on and online, second company's described between also important financial earnings non-GAAP along reconciliation that information The with second presentation quarter other

review report for quarterly encourage We turn on XX, And to also year the over now you XX-K it XXXX. I’ll July ended Patti. Form to our

today. PG&E of $X.XX XXXX million. Thanks in XXXX of joining a everyone. needs to We're reaffirming guidance earnings us for non-GAAP of we're And $X.XX. $XXX earnings to pleased equity zero core our core that Matt. per Thanks per second to non-GAAP quarter. share I'm report $X.XX the Hello maintaining share delivered

earnings our XX%. Our grows X.X% rate base and growth

to Our customer efforts will our bills our investments keep affordable. lasting will new provide value our while customers, cost reduction

in All of bit. a just financials will this the is good into for Chris customers and dive investors.

forward to on of get I many our express started, how Before seeing Day. I looking want in I'm August Investor person much you on X, to

our you'll a our with wildfire focus company. across for dive into our of prevention special assembled PG&E lead the opportunities implementing transformation deeper We'll glimpse the on works, PG&E. take we've team get future we're system a a get and the lean operating meet also into to to You'll company how the

the year. early For Wildfire top-of-mind I is is and you now XX underway me. I get on started to I'd on communities, The the by my to for to Dixie safe this who've right season contained. to coworkers been fires. are what's thank fire and other impacted know The both for who CAL have July and and customers, our area I today, the this FIRE like it. is make feeling My out U.S. know a because heart affected our crews working it goes XX% and let's

are Forest fires. fighting they Service the that doing, for the work challenging in

of or reported structures. this XX Dixie no As has the been There goodness. has burned morning, fatalities, acres impacted injuries XXX,XXX fire have thank and about

customers. serve mind of reflects families, be happened at the one and he details. the attached every our work called help our pole tenacity if was The team to of noticed into the the of required timeline personnel scene went to conductor and and community still Operating fire and our fuses Cresta that went As stop to line. he'd to efforts support open, the at the our and Dam steps fire. our to who professionalism judge who to our Adam we've in our diagnose was was outage. PG&E team. I power dispatched our followed he providing to and and Officer, tree day effort goal our the a there neighbors a access of the found Chief arrived When on Alsup line XX, power a a with We've Wright, leaning to surprised disclosed tree. to out the our the friends, were full co-workers’ tree to were on our also we fire that our what by July worker for at the attempted filed the troubleshoot and Powerhouse. substantial My We He line. with of base here like plant our morning were ensure more two could the After coworker come not problem, location the

we what areas. Given conditions. of actions to the XXX risk faults and conditions and to no could longer reduce trees I little season and I We've the I fire $X.X we during expense Dixie field from to falling we've When the to know wind our fire, we no We're billion trimming spending and in wondered we've large this annual area wildfire look proximity we an something distance saw watching a us solution safety shifting was situation, implemented our areas. I needed to low early settings, lines. for learned in visits. other saw risk periods activity. were that fast remove including a circuit high standard do on certain must taken at all additional annually, my on fires, and we additional our very many, patrols if in power different. service of of we're of something do road I density our tree one lines, very threat within dirt different. trip On sections highest this When trees conducting a knew we removing the permanent maintenance as high-risk treat When

including when my system efficient miles love trees on team California permanent variety undergrounding. This my The the to time. a methods, on solution. in the plan a start last more want with wildfire serve. our February State can at take week is for job risk and for said, connected. extreme concept. California hometowns what idea Many safety to why hear our cracked safer the our a of we multitude undergrounding XX,XXX is had for lines the ways A system power take highest all like critical wildfire in of lower be in mitigation done to risk of XXXX. with that resilience A plan me warrant threat undergrounding. they which this issues knew new is protection new efforts the a to with Public code with we serving backstop cost, hurricanes, here example, to areas. catastrophic affordable very program. the who've the people we initial better Shutoff people have annual our and effort The of safe. important This And team Butte first multi-year the prevention shape day will know County afford. Safety more wildfire or Fortunately, we will keep which a conditions to as California, need a rebuild that safer, too. update doing to safer our fix prevent to companies dealt it we we our not at can of possible. facing capital harden also had we've and initiative climate on will better showed their customers Power provide safer, an the time Undergrounding minimizes announced from underground found PSPS price some We'll in and affordable this really just just use file our be PSPS, be that saves scale But expense plan shift, stakeholders safer, of best actions undergrounding it to here on makes wildfire that in is dots the makes We on a to when a

XXXX. in improved substantially additional improvements and for we've made PSPS XXXX, Our

lines. also technology. year, humidity that as to included our as such we and And We levels by moisture data-driven get year, continue parameters. power in to inform modeling. and smarter Last we include to strike factors overhead This we'll and utilizing LiDAR harden could trees system, outage adding conditions being to inspect imagery fuels wind, the continue maintenance we're incorporate

these Another given our weather fire This simulation use the spread Investor conditions is Day. helps real We'll technologies come at you how together identify firsthand able to Technosylva’s public XXXX fire to where for we enhancement spreads software risk time. safety program show be software. of have all

of providing through data We allow ultimately impacted the management improvements, us for additional who number the efforts constantly customers hardening lessen vegetation resources. and by alternative the sectionalizing backup Beyond we're to impacted, PSPS. risk impact minimize to experience customers and and do shrink pinpoint power our technology continuing how by by to start customers evaluating and which

Downtown gaps. the important poles. performed management the enhanced XXX,XXX fire and to fire energized to lines threat wildfire designated station, our implement Pollock XXXX, Pines shelter visited X,XXX foot-hill center we've Through allow a Plan. pharmacy, micro month, our To critical PSPS us XX% Red tier-three we of XXXX it since Pines, San that look including have inspected of with see which our which successfully we've May escalate underground highest June, vegetation monitor access served power resource items of to vegetation to be in this our completed We'll year, use PSPS. downtown customers Earlier which safely fully lean Since that opportunities areas, times church. critical means in installed and commitments. we and And there a experienced management. we've local high over the helps you’ll will repaired this already lines, generation key grids is temporary and the enabled. seven XXX% of command the We’ve example, during to by small risk For outages Wildfire store, with inspected nearly approximately districts. grocery It's in PSPS resolve vegetation very I work, commitments and identify, through a the energized can at Two in continue Pines, our our for where customers also in consistent Ramon, assets, of XXXX. this XXX,XXX have a services, found. Pollock community Mitigation on a X,XXX we've Cross ninth Pollock miles since microgrid including an

our can we work So track on stay and plan. with our commitments

of process, funding. enabled XXXX the AB plan critical a wildfire the execution is access certificate component which in to Our has

to point this, backstop Approval This the our and to and are has reasonable such actions for into presumption a we difficult claims our certificate a I and by renew caused of which created are a the I California on liability. next also expect better claims. are the protections submit we’re wildfire a few These effect of fire includes that. condition order as safety it. outlining resources, necessary on why the our legislative have that utility month invest which resources. so. is to XXXX AB our by a mechanism with the in to we’ll structures risk. work support fulfillment PG&E succeed. provide I’m A and needs pay fall through construct Having you, us We’ll XXXX certificate. XXXX, to was increased and XXXX annual across in of We to wildfire. execute identify in in wildfire we under the safety The receive funding wildfire our event for approval in put the equipped for doing makes a utilities improvements. plan, right key or plan. safety in first the state a asked plan mitigate mitigation someone wildfire assure XXXX, just the eligible resolved saying framework with protections, certificate. in our state be provides equipment and should obtain applying We zeroed provide AB to condition AB place are to plan the of regulatory California is in our you update an conditions? us. place critical include answered cap that The FIRE many the aligned need mitigation AB the a CAL Under do system of work we

us. and us return all for right now safe provide than Chris? partnering unlike customers update I’m possible. We customers the to else. on address we financial again. over scale, Chris give our quarter. can owners a investors to mutually change and our make to make Together, will and protect it I’ll attractive and make to asking to more climate of to necessary join it for partners investments the it ever to who take anywhere all an serve are the you, our our It hand

Patti. you, Thank

continued earlier, and financial As meet we’ve to the more Patti highlights, then objectives. go mentioned regulatory I’ll our into cover detail.

of our to landing guidance $X.XX on the case important and EPS and our to needs our quarter million. second guidance maintained this the zero We’ve forecast equity $X.XX submitted year. and filing. we generated And We’re track $XXX year for for CapEx rate-based updated XXXX our end for at reflect

in per As the at non-core quarter also $X.XX. $X.XX. we track share I quarter. EPS range shows XXXX shown mentioned, the earnings, came results for $X.XX for that core GAAP here. for earnings we’re out Slide set Non-GAAP including on to We the X second our are items of recorded

on legacy made further have legal claims. progress We

public both resolved and the Zogg a claims Fires. the fairly asserted and individual settlement. we Zogg Kincade entities the claims resolve by related try and to continued As have by reminder, reached claimants have to Fire We’ve in brought

continued discussions the This making Based updates, communities. to total about of claims insurance is our these million settlements for to coverage. related Zogg accrual also a on $XXX Fire we We impacted our with carriers. it Progress for $XX million. increased on by right insurance is within these

so no impacts earnings And there’s this update. from

unrecoverable earnings increasing per quarter-over-quarter X. $X.XX or XXXX QX after to to outstanding. shares QX of Moving Slide for comparison core $X.XX net This per $X.XX from for for offset the XXXX by our decreased EPS timing $X.XX and share shows $X.XX of per fewer zero miscellaneous. $X.XX rate the versus adjusting over due growth for wildfire earnings, interest $X.XX the base non-GAAP share of will year. of timing mitigation from These and and authorized, that $X.XX the expense, of taxes decreases outages, refueling above were costs to $X.XX nuclear from the share

Moving guidance. non-core Slide XX. of updated our to some We’ve

after increased credits has of Order by $XX be $XXX that we’ve proposes the to customers. June to Officer’s Decision will million Presiding reflects remedies been the already and penalty a investigation This related million PSPS by Cause to bill tax. First XXXX $XX Show offset provided million in $XXX to million

We have appealed proposal. this

July the recovery relative capital $XX settlement. XXXX. prior five-year starting period differs of and changed our settlement regulatory result a reflects our That in application items a also been range. a reduction Second, GT&S to will million outcome forecast The in net January has to $XX of million horizon over

additional non-core of $XXX XXXX, period through expect in instead an million result XXXX in a XXXX. recoveries $XXX XXXX period and in $XX million of of As record now million recoveries we prior

to billion a we include charge Our to guidance that in continues third $X.X the expect take quarter.

trust agreement as with a month. the time the grantor this As non-core shares. the equity in selection victim we trust value of sale. our result would year. the larger fire also $XXX a deduction made are to tax expected with in earlier to Continuing guidance, at time of of is over charge result guidance million a of pickups victims the our reached fire Increases shares we for ensuing with This fell trust the zero maintaining reverse

resolve Fire. Kincade work Zogg to claims While the we continue related to and

need. focus on remains Our our equity minimizing

base the capital period. plan a are each Alongside of midterm the customer increased on of to on needs. bill per amount X% the forecast unchanged roughly billion the above between of authorized authorized high and can The After with of long-term growth, key share CAGR. line. billion potential the impacts. over here XXXX subsequent capital GRC that capital provides and range from for reflects our our X.X% end, of CapEx investments the triple year years. and roughly horizon, our headquarters hometowns such matters forecast Currently, June, incremental to Francisco The to a customer this XXXX than including on the solutions and focused of continue $X less cost makes capital up forecast generated updated this has $XX diversity end recoverable like The and maintained XXXX high our our GRC had filing the rate we over few application to rest Looking in XX, Slide nation. which of our to customer’s the updated benefit certainly investments that you other costs. low average, balancing drives with GRC to filed in work sale see opportunity capital in roughly CapEx amounts account. of years. $X wildfire roadmap On spend plan focus reflect the at a of and case. to San wallet. for expectations we and we I’d we our in supporting our the them increased and system our We’ve this as improvements, incorporating recent our was align and largely as of cover safety the compares system billion XXXX, enhancements billion will and through serve, to updates X.X% regulatory general the average, XXXX on bills an that rate customers And well. range bottom savings the We’ve extended average invest our full execute year case the coming Recognizing reduced average GRC significant increased across reflect $X mitigation through spend emphasizing The XXXX for end key rate-based the enhancements XXXX an over through we their

the In provides tool costs. in of financing mentioned, XXXX-related also This Patti lower through benefits financing realized AB that cost addition be the our by to securitization. this law customers will benefit form a lower

has to Our year. and received market to costs would through or a by we the XXXX up this from approved billion pleased securitization June, costs reach Account later of a final Once In anticipate were Expense insurance the to decision settlement application recover this Wildfire XXXX allow insurance recover $XXX us to for bringing coverage AB we the to wildfire roughly CPUC, million recorded XXXX. $X.X Memorandum WEMA. to premium

related recognized on roughly we metrics we should defined accounts half to the of example balance each recover us remaining this for GAAP wildfire have steps GAAP see sheet quarter expect As balancing on income health. itself To-date, Slide met recovery of this the the of one of to which you taking consecutive you is recovery file eight S&P means billion $X.X see can now to timely spent. continuing required quarter, focus Separately, And of for we XX, of XXX balance. inclusion. with positive, we’re for filed quarters we four as this have

a Grantor predict marks Trust for Election including the milestone the take us, charge the how could this While for next plan to timing unable we know, to as timing impact inclusion. of we’re you inclusion, the of quarter

our a well come on the additional have [indiscernible] the year We goal goals. and along opportunities the plan announced executed undergrounding years helping California with against decarbonization in focus to for financial consistent see we’ve with

our solid I’ll continue and enhancements costs our related construct, We by regulatory We’ll X.X% XXXX, over average are drive rest needs. growth. to on seek delever XX% our the non-GAAP investing growth per These in that manage incremental improvements rate. share recovery our sheet, that, our and framework wildfire turn of it back financial rate-based provided system key they AB safety equity balance With and results underpinnings Patti. the compound of core drive to earnings

Chris. Thank you,

our We’re wildfire for doing health. financial we place have solid risks strengthen in and and the to good work season right framework mitigate a

each to We’re taking prepared of safe. out a day. as our customers use risks backstop and the we’re PSPS keep system And every to

of look have you in when reflected to is you Investor progress is to so We regain come X. people, on the Investor a Day. your and August I X triple we Day seeing investment focused our on know great believe what see believe is forward can’t us wait place you us for and our for in your prosperity. PG&E. and We California path planet We is line long-term in to at a We must and help projections The that bottom August trust dollars show front long-term work. daily you

lines Ashley, for the please open Q&A.

your Paul Bank Zimbardo Instructions] comes question with [Operator from of And America. first

for actually opportunity the It’s connect. morning. time good Thanks Julien. and to Hey, the

Julien. Hi,

some well here. if de-energization suspenders does does you carbon efforts to to part from and of earlier and can, on approach in reception to the the you complement proposal? sort there’s here. as you belt conceptually stakeholders a talk I perhaps of speaking earlier where to early How sort on as conductors the replace continued it the call of I back started of some the mean, Hey, efforts to the complements or some Can of efforts? efforts, of that underground. how wanted this congrats progress certainly, come on sort

because XX,XXX Yes, it talk about complement, we is a Julien, miles.

included Our be risk miles XX,XXX lines. But miles that. highest would threat we district in high have of fire

especially – conditions the and we scale better – ore And but in solution we in I is granite, County, so this and we places that do the of think not a the potential for undergrounding. before, And it’s at in know it’s when the of even for make dig possible for trenching. plans it Butte a some many past, in the hardening equipment can the in instead it’s we kind had that progress we’re areas advancements an an that into boring is to perceived us in enable can of we’re areas, seeing

be I management, we There’ve funding And is really that be hardening. received set and still we to de-risked for with They’re the that the done by been turn so can that critical that way. would underground lot OpEx I part. management can fact out as that the still that where important well veg to for all be done, been makes I people vegetation Julien, transition we areas, investors as in stakeholders. to. to do capital miles XX,XXX would permanently our underground, been do we it going And by from where goes communities there’s But of say the a important And to consider that areas it’s into and asking affordable miles think it undergrounding. ourselves by that an an the and the prove certain who’ve it be already we’ve our could extraordinarily and going are areas need work we to us to of sense when to well

as If some critically near year-over-year this the the when a Thank season you summer, admittedly, about as prospective now actions big here adequacy address help dynamics somewhat in and the summer. more the about as of talk peak you a perhaps well the unrelated, as big last second but alerts well think that. can, issue California, you’re a term you, a absolutely. Can term, question the and more Yes, to into flex I you Patti. things going very resource actions in of and acute committed longer evaluating like to some the

Yes.

You bet.

As flex and we couple a we’ve of already summer, alerts. this look had to

XX,XXX megawatts. for to obviously is about peak planned PG&E. construct. have just that the of as X,XXX We part in And That’s But system we you have the August. megawatts CAISO part forecasted available that we our of and are California know,

And were storage, additional able megawatts It’s largest storage and the world, our XXX XXX storage in generation, Moss that so here us done we project think Tesla’s definitely one to megawatts facilities. owned storage It Landing, storage. of I specifically that, additional that of it project is anywhere of PG&E. the they’ve one including they’ve at bodes secure utility the with I’m particularly future owns largest about excited for done utility well is

And I matching long better job and term, do got think so in however, demand. California supply of to here we’ve do a

virtual plant. response demand we residential additional like leveraging more pursuing solutions got on as Tesla power to as count this capacity going a power at for truly could storage, residential summer well. see storage a much how the looking we’re We’ve and walls so And from those pilot

curve. then the the coming together, things storage And solar I the to match combined so residential as demand with future, and more side, and duck commercial peak all distributed demand of resources because our great I see softened on management think those the when a about perfect

really storage resource and deployment I peak of opportunity the particular in think in a as lead have PG&A – solution we set. the And at so to

Best Excellent. to and this Well, of for summer. thank your time. you you customers the luck

Julien. Thanks, seeing forward Look you. to

comes from Steve Your with next Fleishman Research. question Wolfe

morning, Good Steve.

can Hi, you me, hear okay.

You’re a quiet. little

Hi.

there dealt with this to of any relations you’ve take obviously scale. to just of event political the kind kind regulatory at reaction just, Patti first fire there been and you’ve and since on occurred the is reaction you? how that’s So curious I’m community the your

couple thing, But One, everyone CAL Yes, work support Dixie fire it’s to getting I’ll you, not wildfire Fire. FIRE the tell on contain they’re the doing that is Steve. only the a things, for one in of stop, and state. the particularly focused

I that’s well think There’s so why do. key undergrounding the therefore, much more stakeholders. was that. to everybody just announcement work from sees received our so And

about was, of a thank was it All of received, it some the and you. times, it’s feedback lot I of

so perhaps perspectives our doing And whatever been and has received. to takes do old commitment it I think challenging, well

one Okay. risks Dixie that is Is of And that, damage on where respect it or special value release, to kind just or disclosure? at? trees. the mentioned, anything on area question kind one there your to any Is Fire logging just you any thoughts the it’s the like of the or of in particular In of just a region damages. trees

unique Yes. or No, there. there’s nothing special

in a there who fact Dixie In the some it’s the in path people ways few structures live blessing and that were Fire. so of

exposure I special say additional as just a no would So result. that

fact, exposure In it’s less date. fire probably given where the has traversed up to

approval so. lesson in for wildfire your month, or the the due you And next just you’re then mitigation plan Okay. mentioned,

parties recommendations there like things think, that? I related or has been any to from other

wildfire safety originally did some asked – the Yes, we some Steve. feedback ahead sorry, active for we XXXX by to is answer. week announce IOUs Well, certificates year. go I’ll we all were did and issue by everyone. them their that OEIS issue the objective they is that remind will this carries formerly next division. wildfire we us for of to And do safety everyone, just request did filed and plans receive we as for an our Go XXXX. the ahead. will when the approval plan through here see new Safety, certificate the by to OEIS, have And we XXXX. certificate made will XX, submit January expected for mitigation They September soon. improvements, acronym to And we the relatively of in but happy which that December, were Infrastructure Energy our be those a is we’ve Office

really can in that process. see were to that timeline we so toward have certainty we happy working more a they’re the So

And so news. that’s good

you soon. to seeing Great. Thanks. forward Look

do too. Steve, Yes, we thank you.

Arnold question Research. Vertical next from with Jonathan comes Your

Hi, morning. good

Hey, Jonathan.

then bit X lower, quick A with remarks, think having that the Slide in just your think the risk I high-risk percentages just further areas. in right? Patti, I are you how those that mentioned they areas And you I well, think updating, along you chance of numbers, but of much got not question, there in got June a obviously perhaps. the are where are XX%, Could square vegetation because quite any highest is sort management of July,

of XX% one, the we've the the what Couple management in percent all high areas. done, of is Yes. Number reflects risk things. vegetation

enforcement our our remember of reflective the you'll that If match risk reduction was desire enhanced highest areas. the actions

that meets is of is done enhanced just the intent it we've point of enforcement. say the in to management, the veg so of And of the areas, XX% which risk XX% the highest

On single you – moving I slide, know the the progress day. We're front, says think the today. XXX miles as every miles in it

so in achieved. single to enhanced command is every We're miles last that one of measures are those day. hour that's day, our center update, wildfire about And miles at our this for in working of per XXX XX management we're we XX up and vegetation tracking

has was to of And so and we pace of the remember highest increased mile slope areas. progress, the the make if the is that the because end, a the will, management curve, had had you –front of of part in you'll if early risk to date, because its vegetation the at rate of at sure do highest we risk that really lot in did to we fact replanning year to

the in of our we're miles to year five by So XX% it's great miles work miles areas. news. And us XX that XXX signs highest progress. end. which One is which That's of plan, up doing number ahead gets the two, two of is to risk we're the

Okay.

be good targets, them hitting regardless feel you So might today these of you for about those? on where

for just hitting my Yes, job. great those are great I'm force full doing still a and I feel on targets and thankful They about team.

you could, maybe Adam there yet? of to a week one other, Is can not secondly can is how your that all do your – plan rate-based on briefing sort or sort of really maybe new to sort think little of to bit any, And that? at some partly Or level? that sort get about last there, miles that relate forecast? then you in a hope you that you the and do the Great. just if I mentioned soon think undergrounding think of And year. would XX,XXX you How to

of is announcement about much in not put by on we we community could a undergrounding to when. our one the get to Yes, ceiling do thought our the very we not things how local to were done effort careful

objective Our Jonathan. is more do to faster,

that a time, a day when miles a X,XXX, could miles beyond in about want we today we're take curve year. some think closer imagine thousand to it. Adam ourselves but going to And we year, talked so as a about know we to XX that it's We a

factory and about this, We're in to it turn the building Jonathan, of think Ford’s right now. like I think I line. model we're old is it assembly on T's Henry of

so really on what's And mind. that's our

we We our knotted capping know that's as plan the not do and wanted we're engineers an the that undergrounding because was all to undergrounding. leaders, forecast not to get we're stakeholders. we reason so of groups, because the We plan with the down high our want our and best And with date with our speak with is why for input local we're first. announcing working there's critical to before that given end engage tribal it for place determine demand environmental communities our

opportunity this together. the of us is to so with and engage for profile to the change of a California great PG&E California And people risk

file that XXXX. So filing in we next our when for February-ish wildfire first I year, say mitigation be we'll that plan quarter would

of every we'll and better get You'll get but to more. year do first we're the see it, every to going couple year years

dissatisfied reconciliation de-risked put about very And as until end we set because we're the to let so cap filed. are have we or really But rate Chris on hesitant to going be fully a I'll case the the it, talk date an system. to

say recent of and early. year envision. think seeing Hey you're Jonathan. down, unit early financial our disclosures at the wildfire work stage, plan filing in costs is we from already our reflecting that which impressive come we I emphasis mitigation some most that now I here do as is we're Patti. guess – just undergrounding limited today is filing Thanks would generate of I directly It's case have we're as what well in What did seeing are this on terms that the as I this field earlier XXXX even Sure. scoping the

out of first filing QX first impact the of give financial you half year, currently the first roll over look we're mentioned, years. February would or next anticipate the financial. And a with year looking would how really is, updated what view Patti next at we'll that and more contemplating few that So complete the providing operationally fulsome we as

Okay. re-hearing timing That's great. and sort If move requests and could the are of Thank there? docket though. thing you for latest securitization where you with the I to what's expected forward the clarity squeeze one main and on other

Sure thing, week. an we update just had this

this does an step. the is for that to securitizations. that this calendar is year have had is vote context, an this us track securitization rate week on next which do CPC that for Jonathan on their billion stage, $X.X the that year this is to to At for has neutral just those again, What filed late executing [ph] early for the CPC. X, next affirmative August we So next puts important update

Great. Thank you.

you. Thank

Thanks Jonathan.

Goldman Michael from Sachs. comes Lapides question with next Your

something to use Hey Thank guys. look an proposing when states when you and the at think an also Or this cost I XX that's something for in do making. program. think Do legislature how and or other rate get think I'll mitigation you is this, a gets annual included that of base? this base a for to Patti, question. planning went for undergrounding doing actually done year spins need kind long is to what for program? you it's of done, a what Florida the this that ensure rate period ensure how wildfire a example, They outside major of rate all my as forecast, recovery Would Meaning analytical over has – legislation XX kind process best but taking approval – time? to at rigorous you occurs? XX,XXX about process you the of in mile

big it. convinced but that convinced what legislation, was in of it need There's out. we did I we Florida. to a no need nor way they doubt am I rule a I'm I'm wouldn't utility, not well, that that do fan smart Yes, funding outside the

to best hurricanes. critical against about work much with we harden talk Florida, their The reality our to stakeholders, wanted system do work. they As like the way where this we'll

You motivated system very and harden to are can our rebuild bet in against wildfire. people California

the And considered so be can kind State do we're is resource that great to this the PG&E the at equipped like risk of California. attract entities capital, on thing the of to could the that most infrastructure few and work for that important that take we're scale. a the the resource There's very

forward that best in done we those hazards bring. we most de-risk is look with way partnering stakeholders State the California do to to the that And the wildfire make a sure determining of safely. all And critical so the work against quickly

Got it. on And to a related that. then follow-up

your are Just term. mechanism down rate, XX% about longer how – you're cost curious, thinking treasury bond thinking corporate of XXXX the kind yields means growth EPS all even move hit of especially and the could to and kind what about rate, that you the when capital treasury ability recent given and and for impact how U.S. growth that to yields maybe

to take it's Chris it. happy Michael thing, Sure

of couple there's there. going I a things think on

of capital adjustment First mechanism is just cost itself. the

to stay this And [ph] is So this it the complex have I get to at it to that looks X% average out be the to to able point is We'd point band. of increasingly so dead that. over seeing at stage at this likely triggers. think where certainly index

looking And time investments, is the and QX plan, as at We'll an have XXXX, at But in that for can So provide options earlier, to the stage, for would I just let's ultimately on keeping let's saying, so that the referenced And you making here Patti more second, continue the just fundamentally is five-year referenced at to reductions be a this customers. forward and trigger situation undergrounding is five-year we're what how the affordability impact imagine, say plan pursue front. plan update real stage. really in for in we're an as And at to folds aggressive we're evaluating Not there currently our it both and looking those I plan that our mind at and beyond. and about internally think goal XXXX view itself. look we're in where Michael. also on will conservatively. room we pace, from could but cost but impacts

Got of especially high impact the it. with next for does multi-year in And raised financing been five thing and how end CapEx your the that beyond, last years XXXX plans? the

thanks. Sure,

Michael, And I have to at want growth reasonable a we to needs stage, at again, needs. that too find there you the been haven't the on think the think stage you year. of I what too don't would we have we specific So, is would work. fold working because limited equity such this would imagine undergrounding outside But explicit in as rate specific financing I actually be plan we're can this five-year that

Got Chris. you, it. Thank Patty. Thanks

Thanks Michael.

Thank you

Partners. question comes Shahriar [Operator Instructions] And next your Pourreza with from Guggenheim

to point. Hi, actually It's the Shahriar. Thanks update good team. morning Constantine very comprehensive for here this [ph] for

Hi, [ph]. Constantine

showing you of categories on Wildfire June, guess, I and the kind to the get how you Plan to Mitigation maybe follow-up on any prioritized? curve kind categories the they risk just as of get action below regulatory I the can just foresee? categories of And of some and the plan you kind of, and progress, of question XXXX ahead and wanted and of kind XX% that may to of various these speak do how on where,

Yeah, have plan you line of the it and work doesn't getting highest the one because thing complete year. thing the to risk and question that's – across glad miles this asked is [ph], because one the mainly has linear engineered that planned. a plan Constantine – pre-engineering I'm The so to curve clarify percent the a doesn't

that very confirming feeling daily I And about pipeline where plan. we're center every that'll feed in-year ability plan And our so, when in our I'm good tracking at week, can looking that that work targets. of command completes and tell we're our the finish date, we're we've on achieve got work wildfire you the the to

miles the vegetation but enhanced year example, us date our for ahead time we're complete, home on is XX% So, example, good by a status end. management shows of five gets plan, which to

those linear a curve. complete want not And so by that's don't year-to-date, to – confuse it's I percent

to have before September. want we that definitely completed are there though August, things some So,

like of we've got example, inspections, And completed. for asset those so, fully some almost things

another not off, management area veg like So And done. system to hardening, our be to we're of No, done. is like miss hardening. trading them accept we'll veg get of all not these all no, we again, areas, willing we'll get that management, plan

end, them by before have interim end. some of year dates Some year

you, performance so, has track because that's that's and more the can makes broken a a lean on assure where lot ground, what boots I'm getting on than by and work I the are, the of team, exactly I big is of that, complete plan it I'm know that difference. weekly, can us can but update visibility eyes ever before. gives And plan year of operating we tell this And I with daily, on like year this And the we're on our system. a record which the power end. this know into we a confidence you we

Excellent.

a think quite it I bit. clarifies that

think just how, kind the kind a of of potential one on and the recorded your AB to and of Dixie. and process this And insurance wildfires, gets disclosed Just kind loss filings coverage what's of the understand around loss for follow-up when period for, I accessed? for self-insured to timeline and we'll the of, protections remind insurance funding $XXX you and us levels? of for kind AB and it's can the XXXX some with XXXX, get And

train, we're obviously I'll damage next. and the we're detailed which I'll Dixie acres there's way that the I'll increases cover for through it very grateful talk but to Chris populated people And in their some on It's keep value very to direct less of And it Again, take the is is grateful. to to it's structure blessing timeline the difficult But I the being very able we limited mind difficult skill estimate terrain. at that of access let reiterate very, in forested done areas. will in and to Yes, know a no timeline in burned, some this do for But fire insurance mostly Fire couple when for to, happens time Chris the the fire. make elements. into a comments the damage it CAL what and the ways, which early. the

true. Sure. It's Hi, Constantine.

the that. though at understand the total ultimately certainly it's the to It's need is it's at this take probable we time. impact. I’ll have So, to it's contained stage, even timeline going be this fire the to the stage. not once estimable commentary queue, We in able update traditionally, understand to

to CAL make any need understanding that investigation place there. the the and also we're fire We sure that of review takes result of

to a a when year – you up it could So, you the fire typically look situation have at a would timeline be and anywhere for investigation. CAL

and then outstanding could themselves. claims review are multiple resolve have complete required You years any eventually to that

AB So, actually there's the any with you're interaction of contemplation XXXX at looking fund. a few wildfire years before

So hopefully that a more color. provides bit

municipalization have the request to PPC, And Francisco of San kind is going I valuation the and do the the or does. any the separating tables, It of a are actually CPC if And potential you power a a a even outside common may within that proceeding? kind in of than City turning a feasible? think last into I question, city. lead assets have consider burying of sale there Is have of the does it just something assets? wildfire for would reasonable they're to that mandating from the bit it nation level little Is a

true. being made San Well, proud Franciscans The that served more our the PG&E XXX for first offers assets. to let we're say just city, that and than has me years undervalued well by have previous

people of assets. forward just to San so, And serve Francisco. value the continuing the look confirmed our they filing of CPC line, And bottom are the very to we assets much

for Thanks That much taking questions. so the sense. makes

Yes. you. Thank

with Stanley. question comes Stephen next Byrd Your from Morgan

Stephen, good morning. Hi,

from Thanks taking your Patti. sort of questions we in latest just wondered the my your if Hi, insurance state thoughts market Lots ability for the could morning. covered. get to good virus, the California of for insurance been on I everything own California. residents I the know and insurance, that, responsible but of market. just sort are sort That's in for State to Fund not Wildfire of the insurance, to curious, businesses the also availability insurance at the to play state of you and get

Stephen. Thanks question. Sure. the for Hi,

things really there's think few I different as imagine. can there, you a

residential, personal you stepped at there imagine, a the homeowners otherwise business as to make can state this in coverage options. stage, no to multiple limited small in would from that First really that's areas although is been limited has sure where companies in, situations provided have is coverage

I great So, for state individual that's evaluating need a think that example of been the customers.

purpose relates really and at year this The stage market of test typically At impacted As really acreage we'd year it as this relates the this think, coverage done. it is still to was to remains what to I the as well And after of spring what last is there some that us the on revisit the depth. California. went dramatic well. Fund themselves, this out seeing we we're Wildfire to it there our stage, in market. in re-insurance as Administrator kind is And is,

So over saw context, four just still that's were to that million in a in acres put the we Yet that depth impacted. market.

critical self-insurance XXXX Now relates really have. be looking have impacts are that customers. the But also in but take and we dollars good actually have pricing forward of they're customers. us mechanisms this really you to able it is imagine, the is substantial, terms as in of really for hundreds that go this here, to going directly And to do because as But construct we're that dollars, GRC, our expense we Steven years cost can forward, of accounts put a that contemplated the at both millions over a on. of number we we these right, through recovery email have

examining So, yet, to approach, million where time, over we're customers have annual to self-insurance could this to on up $XXX that impact basis. in we not $XXX build actually interested as have plus million an

we it's year think of makes one given need to are continue is serious unique hopeful to there. a us to it's company. that So, amount to consideration there for in construct, against put substantial procure coverage a we us, that are any any forward for Because and ultimately sufficient and going there a the the CPC risks we to comfortable protect

just linear, can proposed doing the see I a vegetation program large your And of I the lot makes as a your helps. relating over Vegetation thinking of to kind you that kind bit what it to fairly underground, how more you sort just Is management and going of could proportionately be these of or miles declined to can potentially, wonder little early of it kind time all you meaning portion say, XX,XXX then just is could if sense. of it large periods too benefit. that? are really And efficiency That Management the about talk Program back a about of undergrounding, the reduced?

plan near the obviously to early we're miles Well, to you Steven vegetation determine because But we the going of continue and or and conceivably, of building imagine going have manage we could for it a are to lines. continue of of mile trees days any we're to swap our absence exactly mile would in – underground. which the in out will near underground any our

swap. a mile for mile manage to we vege you underground, as one so, imagine that's And last can mile

so very the benefits $X.X a is And are in really management mean, for that's billion where our for today. realized vegetation I expense expensive of annual customers customers.

really safer safety, to a and fix, ongoing does risk it a annual permanent And benefit expense so, two repair, have maintenance customers to not have elimination that permanent make fronts, a and permanent risk, on affordability.

looks further you this of slows going how there years next the bit over when bit, are it into in down. and of like term of of quite outlook, over the Maybe going bill overall up bill pressure sculpt this or on the for a bill might is so the years, that, a great. then you up isn't how Is that just feathered customer residence kind few it quite up there do kind bill? a in couple be do terms That's – following possibly the next – the of kind how near bills customer

big all days, to. build us early and the to And system, implications doing know that we work, for probably for in our long-term but does financial that we implications QX, have tell how you looking higher early here, a that do we'll early near swapping we're and to just our we'll you order, soften there's where expense probably value the the it's are the realized properly system. where opportunity you help we And into with to you for see at The XXXX, little the Yes, that we'll cost our so that. earlier do been in And forward highest set are help operating I early fresh curve capability. of can work, our can the at And will scrub it's much can whole of together? building plan I customers, show and we the deliver can starting it's what And though look are we're and tell to know just years capital. our then plan forward benefits our the from years. our lean we and the are do how costs to out in expectations what capital lower say, come opportunity really the plans to customers swap, eyes for look provide

Thank Great. you much. so

Steven. Thanks,

Levine comes from Your next with Citi. Ryan question

that the arrive led he the Thanks analysis did as line? proposal for XX,XXX Good underground XX,XXX taking question. to the was morning. to number? miles my how and process right What as And

might Yes, a better working was doing solution series I set, well, really had ground. the there my as with that but on a viewed seeing The it we're knew of undergrounding I truly our and connected that the in be and prepared what remarks, team dots. observations was mentioned

know before time program. cost in to evidence even we absolute million happening got real the have mile been we achieve has that's a a we We've as And of $X reduced Our dramatically. full-scale speak.

was knew The highest we miles. to affordability XX,XXX risk that the miles up So, real. our matches

that fire As our are we look at in lines those high threat areas, total areas. the

more really any And both as that were extreme. and to might conditions wanted planning so, that occur today's additional risk we risk sure climate for make we become

says, to if a the And plan. the the That's you not will. But and that we're want to an they visibility. is do people of This And mentioned, with aspiration. we make relationships that's ceiling it. Everywhere just rollout to you opportunity to plan go, as and involvement can't an have somebody others. we California, what's building benefit what build we want that of and asking I plan that that have better going a embark really do significant just underground so a in block to stakeholders, people from we'll us ambitious set that then drove it I've of really that's this really people and full-scale to our feel a aspiration critical we engineer way the goal how do. But been the process, that part on can sure have we trust

team before that, And and in fact, done so being so, we say that for I'm at that in can see proud do able to something PG&E. the hasn't this of potential been here

final X the on non-appealable, vote that decision a will August that the securitization, assuming becomes And Thanks. be that for favorable company?

take the That's time be Sure, limited judicial could the the a X. to early track saw Ryan. we Hi. to again, year, intervenor the execute vote this with next issue of year of puts it's on There August if CPC. for that good But in It would at after actually importance to review period close continue that another it aim out securitization. the because end step. again, a of

Okay. the the to July company you shares shares to have the the any confirm on the decision? sold subsequent any And then clarify, last grant far Trust Victim just final Trust has Victim issued it if to question, agreement and can that X so would year-to-date,

Ryan, from and the company the thing. Fire from sure none A Trust. no shares Victim

million, distributed roughly in sure early claims which to that and billion on at make them you for $XXX a provided stage victims. had public hand roughly an July good the have imagine, they Fire Victim fact, $X.X they're puts In resolving indicated can they have update, update, position cash as cash where this Trust

Appreciate it. next Look you forward to seeing week.

Thank you.

Thanks Ryan.

this remarks. At questions. no back I'll the time call there closing further for hand are

And seeing Ashley. X. do you circumstances. us. so team you August I'm you Thanks I see what We see Thank here to day. every forward Thanks everyone look to an that's seeing under We'll wait much. extraordinary you. for extraordinary really And for can't joining

conference. for participation. today's you concludes your Thank That

disconnect. now may You