Pacific Gas & Electric (PCG+A) 10 Feb 222021 Q4 Earnings call transcript

Good day, and thank you for standing by, and welcome to the PG&E Corporation Fourth Quarter and Full-Year Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. And please be advised that today's conference is being recorded. Instructions]. [Operator like conference now speaker to hand Mr. today to would over the your I Director Relations. of Senior Fallon, Matt Investor Sir, please go ahead.

Good morning, quarter fourth in participating everyone. Thank earnings you call. for PG&Es

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

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

also review you quarter over December annual XX, Form hand on With to to ended report it XX-Kfor that I'll the XXXX. Patti. encourage We our

morning, for Good much everyone. so Matt. you, Thank Thanks today. us joining

a probation improvements mitigation of years. five has major in because and federal in implemented end ended. risk. a wildfire XXXX company right plan accountability through closely met to and in our transparency And EPS who commitments $X putting the penny implemented on in programs work made We're GAAP safer relentless core my Two, the you, not focus hometowns. to basic place operating first, system for deliver the on should significant commitment service we our to performance count confidence loss. fully for with XXXX reporting lean to share target earnings period in of policymakers, execution. not the regional customers our work diluted our continuing across welcome we our We on the in delivered wildfire our of for We trust, on financials, regulators to One, wildfire our the share every our in This our We five less, our we've Four consistent midpoint to is that resulting on the expect. a the commitment Three, we've customers. $X.XX agencies, by with company. the team met our our a rebuild year, confirms non-GAAP investors, model our basis. we've Our then got forward right and established reduction look more our and past future. in

every the our you'd As predictable manage financial business us, and year. benefit investors customers continue expect from to results provide we'll to our you, efficiently to

XXXX is non-fuel of O&M XX% you affordable undergrounding higher least X% dividend X. by impact the can reliability substantial focused customers expect underpinned bottom-line driven non-GAAP XXXX, a serving we're will by sales growth every the a reduce our Slide on but and and expense We'll our and $X.XX electrification growth guidance ahead per aggressive or to over focused up year. and our And the decisions optimizing of Longer-term, delivering building is total customers smart we To year. triple EPS customer model premium performance. we're performance efficient by to every continue more. Everything XX%. California's see our sources, year, With planning minimizing on total to accomplished and use financing, EPS pursuit of investment of to to fortunate And our improve on of we've at at to have We're return inflation. making For This diluted our safety, relentless We're from $X.XX service, bottom-line, including years that lead making our our planet the growth. for simple, our to in necessary of yield mitigate vehicles, people, impact plus prosperity that our least plan. we're at in core XX%. generation X% our course, growth below improving by be investments electric that reflects beyond. the focus XXXX the equity. return a driving business triple the midpoint our accelerates on Longer-term, at of resiliency

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we'll Specifically, show ignitions. reportable the of number

reduction, distribution undergrounding, and cost replacements, several main non-fuel progress O&M metrics. Our financial gas our on

our progress report business we as You'll across see quarter. the out each

execution method and council were And with members team at how works. powerful management and with butter the at XXXX, look satisfied can vast outcomes. on I city hometowns. experienced functional for inspection be local the and showed project miles they have XX a tools, inline couple focused weeks PG&E. is Seamless playbook of for example our making of it customers. an shared visual installed we our that and we is One ribbon inline can Sky Clear it cutting capability our here bread Using how daily that to that we and cross work delivers ago. mayors it the our how me Our operating job two in be when an inspection predictable consistent easy. reviews up team operating visited And Thanks

in fuel based power proactively from threat our be To is program, Last safety up lines in XXX% mitigation service distribution enabled XXXX occurs. this our high public lines EPSS of of In line producing Our levels. summer, low lean the combined the lines the threat is clear, power high fire object fire settings reengineered turning XXXX powerline was fire EPSS. high we which or to different wildfire We're with planning our on fuel or refer distribution drove EPSS in great execution EPSS our within We our one based winds a plan, accessibility. area expanding of and tenth moisture our an risk dangerous XX% shut to weather fault shutoff of off on to enhanced miles. as on when safety results. on to primarily strip playbook a also program second off conditions, strikes

place implementing program risk address to also of As are these ignition EPSS of conditions. Flag customers. the risk And that The the of reminder, impact reduce on settings dry to on greater in we're the has day a an a a provides expansion non-red also enhancements of level in reduction. XXXX Warning

settings, the enhanced enabled XX% all in As you planning as said can I translates see a safety on we powerline reduction XX% which districts. reduction in across an once fire we threat to implemented to ignitions our on program. high ignitions, saw Slide we're adjust circuits, X, And XXXX, and

to So we'll last these of of education distribution use threat are that our summer, our settings. settings how XXXX. We've all from we capable powerline enhanced fire lot engineer and miles in learned experience high guide safety a

In addition to continue program. safety our in in our power customers expanding we focus shut impacted our program public XXXX, to most off EPSS on or PSPS

the number reduced due this wildfire weather have localized XXXX XX%. more a for XXXX As impact from year. protocols our protocols impacted to that the of our forecasting, And reminder, by the modeling XXXX XX% we by to had structures reduced XXXX season sectionalization would customer place increase from in and shows PSPS

this an our visible resilience time and PSPS we've customers. bi-directional scoped making an our and program, program for will to energy expect customers removing means line more online management, due our keeping our work. charging in that developed pursuing exciting XXXX. micro our toolkit. our vegetation between remote is our infeasible, repairs, additional having on XXXX. of is mitigation the to in On overhead be What trade-off that less over line high PG&E a and When full We're electric inspections, area resources And part we're in our as happen safe. power. tools future. offer we While grid a brought point, the eliminate even This there wildfire opportunities it micro in grid in fire focus of our we're undergrounding that microgrid the here last potential solution exploring can being California. our vehicles our effectively plan is comprehensive are enhanced That's safe removed first We options threat distributed

look the For hardening Today providing first program. the five we're system next the years expanding at our we're longer-term, plan. undergrounding our of

reduce it's high big Here wildfire We're is PG&E solution on certain long-term strong area. commitment underground and to X. for XX,XXX risk fire miles bold. to our It's in Slide our parts service risk moving Undergrounding in on our power lines a areas. of of

plan miles to mitigation XXXX. ramping in miles As increase the by up is end each in wildfire the XXXX XXX we nearly outlined our XXXX. underground to XXX miles from in Of plan, XXXX to X,XXX year, miles substantially well our goal of complete our

news. or We already reduce really with expenses. repairs investment. along and And temporary action. invest an capital to recurring on our model good value under in over a construction. We'll game ready case our great is mitigation this on reflect wildfire and XX% scoped here's rate XX of affordable plan in Our to XXXX changing are XX% XXXX the example simple file update our February general construction and our infrastructure, Undergrounding high spend annual

will previous month a to this minimal relative customers later update reflect filings. our to Our impact

results as adoptions five and our need hardening XXXX see cannot of than for many protect would investment course, And XXXX X, property, a plan. cost that you system, efficient, The on more discipline Slide the building we with make of I our from to our including gas system capital significant is investments safety many consolidations, our from factors, energy and expansions continued in you work can plan across expect. undergrounding As earlier, bills larger covered previous technology from they and will in to afford years. customers grid ongoing our

XXXX. XXXX. the Before to and people, our by meeting over of like to reduced wildfire our to significantly prosperity. laid making risk it serve I'd that are continue we've I close commitments We've triple planet California's in commitments in reinforcing We've met and investments bottom-line Chris, hand our that foundation

hand cover and Chris over to it to Now items. financials I'll regulatory

and Thank morning good you, Patti everyone.

results. this results our financial keeping targets, and earlier, premium financial to a outcomes means stride meeting As Pattimentioned consistent horizon. operating becoming a an our creating outcomes on utility. regulatory is delivering on hitting the and path eye We're our solid about financial This

clean cover on energy For Today, for us, health, enabling solutions topics. California. and sheet I'll affordability, that three an emphasis improved includes balance customer

right First, guidance. target our XXXX which and were XXXX our on results,

range third elements plan, of Second, on progress a affordability. regulatory with opportunities which balances five-year focus our in areas legislative strengthened of key a and of hometown, necessary investment and our

our with start year our landing a and reached count XXXX final without three share our equity. AB finished XXXX diluted detail. highlights, assumed quarter Whimsy We our loss. We our count, XXXX for year. both using transaction. then met now GAAP we guidance, executed securitization SEMA or Let first non-GAAP $X firstWEMA our our positive the our in with in for our outcome and received into basic in at our of $X.XX share fully core consistent issuing using and the me move fourth We EPS agreements cases, the We greater year Slide results the application. XX shows settlement guidance XXXX

count for the with earnings core non-GAAP share start Let's and per XXXX QX GAAP used share. and full-year

can see, grantor planning. GAAP we're position our for small you utilized XXXX for in election efficient trust As loss tax either a

required both and EPS As GAAP we're outstanding a core use result to to calculate full-year. of non-GAAP shares basic the loss, for EPS GAAP a

fully EPS assumes diluted per $X.XX our using guidance of full-year non-GAAP Our to core share count. $X.XX share

diluted fully our landed of basis, $X. So a right on we target on

and calculation came earnings in consistent at Our diluted reflects here core share quarter, listed GAAP range. for our count. the $X.X with items GAAP the our non-GAAP for billion. fully core the QX full-year so guidance XXXX Non-GAAP positive non-core year The EPS

enhanced non-GAAP improvement of a of costs Slide the the the operating XX, sustainable Moving to cost for in here in of more by with our enhancements are focus for solutions, reduce or comparison and the core $X.XX fourth We're in plan allowing quarter-over-quarter implementing particular, savings quarter. to and this These affordable million $X.XX $XXX represented pleased shows in earnings $X.XX customers. and the on long-term quarter. reflective fourth resulting us our better

updates few a regulatory on see Now matters.

side, debt during $XXX transaction the On completed million. our QX XXXX initial we securitization ABXXXX for

once You the we later can next expect through this regulatory proceeding. year a similar work transaction

under to billion, Over was legislation established. of previously the ABXXXX the next that securitization and to we couple total issue up expect $X.X cap years, the

an With important to the qualified we we the tied capital cost of mitigation for wildfire as view the timing the invest customers issuances of timing while in to reduce work. this of spend, component risk plan

CPUC. Our approved securitization separate also rate neutral been by has the

retire to of that interim. in billion the at $X from use allow the will has the transaction those As reminder, a this proceeds of us funded temporary utility payments debt

challenge legal are XXXX. early through first and We issuing of working issuing start quarter are still hopeful securitization the series are focused that once the on the filed, it resolved, quickly been we to is has as second as the

Additionally, during make XXXX, requests related to investments. on recovery progress wildfire settling for we our continue outstanding cost

As XXXX. XXXX we for previously the Whimsy highlighted, during we case agreement our final saw decision received settlement a application first WEMA on and

November on settlement with filed the XXXX for of Additionally, requests XX% X, CPUC we the the in CEMA our case.

just review December the of of XX, memo XXXX you proceeding. this case see year. year. steps narrowed cost XX, flows on cash can scope capital Slide briefly to for which to to cost also CPUC and our seeing starting the On As want capital in settled scoping on expect we here from next I the rate start cases touch a the this issued the

will departure from components the warrant cost the events cost levels capital at the to whether pre-XXXX and are Specifically, there of XXXX. whether a CPUC that of for the mechanism consider extraordinary leave capital year

will year continue Additionally, which the reasonable authorized Rate later clarifies a not updated memo The and will currently to cost mitigation a date a April. that our be do final to this for full plan. indicated we pandemic CPUC capital COVID-XX related the of test departure month the from testimony wildfire replace we XXXX, of on is our decision XXXX because our filing XXXX. set capital a for for does in General touched we with in the and file has application, requirement government as mechanism outcome not conjunction proceeding a believe this and warrants Patti application in case XXXX response cost scoping the

for this reminder, call this GRC a the storage memo our in a in costs GRC transmission and and second facilities, a of a quarter scoping to four-year is for incorporate cycle, gas As our first decision a name first and the first XXXX. final hearing on

focus to Slide where focus our year to move equity for years, including to represents limiting ahead on five XX the needs to bottom consistency, while this triple resolve make on and continuing to the continue look Let's next legacy Guidance progress and line. XXXX we'll issues.

providing are to guidance earnings a non-GAAP for $X.XX For core XXXX, we range per XX% maintaining $X.XX EPS our of share growth.

million issuance needs we the in of to $XXX estimate XXXX, million. equity range $XXX For our

our we Patti As on, plan. five-year touched have updated substantially

where refreshed the There's continue per as upon much Let's at go dividend ahead dividend projections. EPS XXXX on the in this plus we we share and to an our and improved move in path least into XXXX to our including of Slide to provide we'll transition XX plan, yield earnings into near-term reinstatement. will share grow XX% XX% growth growth

in be plan it grids, over modernization remote to goes X.X% our including base will our includes from CAGR investments expand what current period our off reflected in kicking for electrification. the system includes this to XX rate This estimates program. X%. of undergrounding This Our filings, growth also preparedness February consistent our upcoming with is and

these levels holding XXXX. dividend plan our mind The has to look developed teens with reductions. in in retain will the years, by stock also of with to support mid coming financing to debt debt achieve our reducing continued debt suspension common in been the high billion to company The commitment of targets XXXX. long-term as overall we end FFO $X We reductions the targeted the of at

to inflation to is year, by impacts mentioned, we over As costs time in We X% reduce the level manage and finance to Starting California. non-fuel this on And affordable Patti every it maintain critical our needs. O&M customer program customers. make we around of plan focused this for this customer year. our can capital investment sharply intend

larger waste at it work done that that increase deliver enterprise. Our can our O&M prior This reflecting savings. and by us to for lot anticipate every over year hometowns and success savings the target construction a other Recall $X using among efforts, operational time for to of provide make spread a the our at We approach year. base. system, XXXX. in contracts billion co-workers. We'll well XXXX our costs and investors. against costs simply. this for growth above more used and gained seek enhanced in lean this we we from plan we more We've for five million out And just third-parties, decisions work business and do The execute renegotiating for help savings finance the can There's achieved billion started. operating And good The decisions efficiently to seen our year unit be cost $X electrification around elimination, transactional to generation roughly our make roughly we'll of good helps better to and easier getting year. where low efficiently each efficiencies $X.X PG&E achieved us us already with more due with include savings targeted business billion of outcome $XXX savings. we're electric improved had performance over

As a against financial plan for drive and for to the execute close components delivered state, well operational on both we've triple determined by reiterating and we financial and team, set the that XXXX. our out investors. we line, are I'll plan, benefit prosperity of to bottom the all

to long-term. reduce and been business be has wildfire the effectively on near-term, for addressing running critical will focus Our to risk continue the the need the while in

wildfire to Our to the puts our making to We're that, energy With and Patti. it on sheet, year investments go I'll right safely our hand stronger improving customers. back us and plan mitigation, path. that in needed five investing balance clean deliver

in XXXX PG&E launching Thanks, for to Chris. XXXX. happened And lot as has a create we've pad at here the discussed,

to you I like of tell most know, As stories.

work field Due stopped one three ago, in crews should on at various that has I XX another three I one line distribution on center three in coordinated, visits, my had to Placer a have who Auburn. processes wood heard Inspectors times, his with I property little lives in couple the a a our he here from four property. that management year. one our on more. A his crews go. times, familiar have story service So over of of on his co-workers weeks we been PG&E County property is visits and times,

on in having team after right let's go and jobs PG&E by I job, in Similar this XX% have by okay, costs could that's simply XXXX grown billion Now plan. I I a better work we dollars. upside, a reduced frustration, clap our cost say

investors PG&E. setting by supporting for a how accomplished please serve better risk our Just program safety to our you at improve and fueled we're beyond, think and all to launching customers, great open compromise. our at funded do how questions-and-answers. We're important cost and place of opportunity and I've PG&E. We for for feel customer thank opportunities just affordable. relationships, by management as our without operating driven the safety bills much industry good Operator, every my costs, you financial deliver reduce This in we've our in being trade-offs. of in that you, to line infrastructure team. waste Thank That's in will about and done the as work here new cost undergrounding opportunities mitigating we initiative. And your XXXX without here can further that powerline load, by our we customer enhanced savings, reduce is investments PG&E in and time. our I our a therefore growth going practices we're where customers expanding excited what XXXX We've and the can got to at keep Opportunities era and hometown potential to resiliency the benefit leading wildfire growing many the system and momentum right time deliver processes. encountered one day. the the

first Thank from the had line you. of question Research. Steve [Operator the from Instructions]. Wolfe We Fleishman comes

now open. is line Your

ask your question. may You

Good morning, everyone. Thanks.

have questions -- that? how full the about the we before -- couple pre-approval the it? might be you're thinking you think the how much a with work actually on on you about undergrounding just just for So And how plan should doing

to Steve. hardening Hi, work. have Well, already filings voice. Nice hear Well, approved we our for your

And or to undergrounding more so we're XX have XXX excited to-date which have done biasing we the we miles about. we're year, already include this plans now

progress. make to continue We

deck -- February in wildfire we'll undergrounding. filings, our to look our future those for miles will what make have I most we that the described the as in inclusion to in mitigation filing year-by-year future the of to customers. so years. our be then file, minimal coming think factored original exciting reflect plan, the actually is We undergrounding costs we GRC plan for been as continue on our but the today, we and see forward which approved XX, that we've to capital asked is undergrounding the you'll We've we plan into And part of for can when additional terms that's of update people with impact in total

And keep it excited it And we safe progress. both so affordable. about and we're can that make

you Great. Years just starts on color when at to pretty five and numbers plan pretty five year little look maybe undergrounding. more on big, capital. give you could three a big the becoming And

kind it? Just at thinking financing? about something straight you looking how And of sheet balance you're than other are funding

looking there. a Sure, couple at It's things hi, Steve. we're

itself going But it's we where you forward. have is end we just up can look on you imagine we can driver equity do as stepping levers imagine couple ultimately of depend to that the a CapEx. back, As on

one First some is lever is gives in that that years. going to those we be debt company of retain flexibility the outer holding good amount us

for the we be assumption I dividend. quickly second up choose would the ramp think to how just the

pressures. financing levers ourselves of giving some any in potential, there years good So to to I think, the out try manage kind any we're

question, Does quarter? get one loss other for for not million next $X GAAP that just the inclusion until passed 'XX. eligible you're mean Okay. XXX we And the then technical S&P

QX, going in have When Sure, right. QX, Steve to was GAAP have we pointed a that. occur? to loss to clarify right, positive that a did had happy We we

quarter the GAAP by positive, it's is at So recent looked most that S&P. would that mean as

quarter then got quarters to GAAP metrics at two most this positive most GAAP stage to being ability the four S&P sum to the it's to which meet eligibility of we've imagine, just fall recent of the it's the on, to the have for put the recent you of out us qualitative And terms is to go And entity really, in. have timeline another could inclusion. as are harder the really factors, positive. a has that So in S&P

to that last just piece that because quarters that But second this maybe meet the are you going Okay. clarify second meet least metrics the don't that that? is next year this four to to wait for at quarter

fair a Steve. Yes, assumption. That's

Okay.

you. Thank Okay.

Thanks, Steve.

Thank you.

We Jonathan line have of next the from Research. Vertical question the comes of Arnold

Your line is now open.

You may your question. ask

Hi, good morning guys.

Good Jonathan. morning,

capital This equity footnote effectively says one slide the that to your business I current think of from you're in across the cost 'XX assuming ratio the and guidance.

correct. delivering about that of range potentially XX% be to and able Would expect offset within to how wanted that. different maybe pulling And us? verify that be how secondly, able be I to just at able you the you you've So outcomes Would still sort thinking expect to there to that that? and of to through sort you that's to be given would levers fall other

question, Jonathan. Yes, great

As one. And you way we and of expect and in our another this there's takes commitments. given to puts year, expect, to any Jonathan, might would financial find achieve is lots

compelling we it made things plan think optimistic -- into cost we've our of We're we're proceeding very event should. that and way planning And a that putting that does argument. the the But in capital plans putting so filing not go accordingly. together conservatively of we'll course, -- about the are

ride like to. I Jonathan roller As the say have coaster, you don't to so we'll

-- customer I impact. Okay. that. Thank to bill just of one X% sort those thing, longer-term guess customer X% you for then rate. And that's you other

term as broader we and could that I a against near-term, how calibrate little talk is, that think the you've described target? about longer of sort that

to as in four Yes, working tapers that keep the X% -- next to our latter can cost half to look able structure. that of the the the flight for expect implications on We be average, plans a is think rate offer muscle to about lot our O&M rates at our It have in do and filing. we've affordable. our we're got we the year. affordable, we we imagine, current as per rates and It's in reduce significant. plan, as value of reduce to our already years, what that filing place are this our believe continue down rate that to We customers you do of build

truly growth. it's electrification, to phenomenon. customers a electric of well make costs, I'm vehicles, We've excited one reducing that's continue And the a here of find another to in things California more the so us growth. nice And to actual as business on That's of and in efficient, load ways is about see costs we offset to what grow going got as customer California, lot here opportunities continue unit forward. to for

in us PG&E. see the the lots And to can I remarks, the go at to cost system improve ways for customer as my opening So an and everywhere of reduce develop mentioned I we for I muscle important this opportunity here across is experience that deliver.

then And Great, okay, quick you. maybe thank follow-up. one

said, to Chris, Steve. you Something

you you pull you I of guess? cumulative anticipate the starting capital. can out that earnings mid You lever financing, incremental would Would target you a dividends timeframe, that for how talked quickly the the they up in appear I next -- imply versus being it, play about still that way ramp year kind to assuming

next with at back accurate, be imagine ahead We'd stage, that think it the turn making the can't on us just situation I you that threshold looking of will board $X.X Jonathan. be allow core a really hit still we'll get can That's I to earnings billion non-GAAP and this on. where to decision at year, the it -- in again, will level right, on. be us given mid eligible certainly plants growing imagine, exact safe can But the to of assume into reinstatement. as roughly being you of back looking turn be But we able front dividend. we be we'd would just to forward it's and that

sure. For

Okay. Thank you.

you. Thank

you. Thank

We have the Shar Partners. of the comes line Guggenheim Pourreza question of from next

is now line Your open.

question. the ask may You

in accomplishments for actually all morning 'XX. team. here Constantine is Good Shar. This the Congrats on

Thank you. morning. Good

can or of As that you're we're of the any presenting? kind the that inputs How RFIs mile from the opportunities within without levels elaborate does on to kind formation presenting And you or thinking about that see the any the today. accelerate that X,XXX And improve target? investment? fit undergrounding goal some drove bids that cost XX,XXX the stated? you you're And crowding previously of

great Yes, question.

have a We things. couple

undergrounding mile the in active We have have today a to cost we current $X range. And speak, range that we in and million they projects their some complete. as are

We have some than that. that are more

best We're unit to and find scope is of We full cost that contractor identifying yet working on so XX,XXX with have don't the negotiated the systems. a what the methods path miles. working And we're But one for for information. to that are new of a technologies we exciting that's the of request things did We us being presented forward. deployed got that globe, lot the the across a conduct RFI here. a about

being every equipment scale. can with which year with we right boring Germany right on some right the example, reduce lines. the dramatically us exciting the work confidence pretty and process. partners, program For gives undergrounding in this scope equipment, used scale We our with underground to stuff that's the It's transmission up as and ramp costs

the as to have on and the on more we mitigation a with wildfire we'll of our put bones plan, February. specifics forward. again, on But So more plans XXth we're forecasts share lot the cost filing we meat move near-term our

system right. on case We in Well, case, that mentioned the ability build that out and beauty is the this to got already Patty see work just that, we've earlier, of the as crowding could subsequent put generate hardening rate Constantine. I our in as investments. don't really this forward underlying if And

would some it with instead. out putting what been risk overhead undergrounding pull putting better miles putting mileage have or to going been of and we in we're line in would the have are the previously So reduction

this aggressive really undergrounding in is state. alongside So safety customers, the risk end, of inefficiency the the to forward going our we're show the goes trip on you'll still And able improved. be will for will this minimal customers you'll customers see our impact to a mitigation better, the true meets put that that is what in filing effort of XXth. after road is to that going that plan plan, have the wildfire behalf while where also a February -- That is on there's up you ultimately, in rubber

ETFs as new around excellent elaborate And the And appreciate are drivers dividend? the reinstating in plan. that base the multi-year the XX% you in much. needs there that versus growth financing you guidance? I for dividend That's assumptions any and does noted prior And on and how incorporate color. rate the yield? Can there very financial X%

or And financing equity moderate reliability and Constantine terms we're a specificity continuing again If about of a plan. the we that Got today. We have made thing. need level want can that a details this a Sure ahead of doubling be to substantial to way right finding a off want what that key don't can't by effort, have forward, so management year of going a from of done that decision the investments. that's the we're year to that offer kicking our And as that's be we sure as again, definitely our goal forward assumption, do today. the the drive work doing going But that would high get we go. board. as ensure assumption pulling in well you we to that I just But that making mileage again, see to that standpoint, more in doubling disclose five we're is, safety than would and work Certainly efficient within get certainly balance. efficiently. already undergrounding

a very quick related note. a And Excellent. follow-up on

of that the the end end reductions, to cadence you especially in undergrounding versus plan? front the own Is as the X% terms start tail benefits end In and seeing some the something and around WMP of the target. profile the

is Constantine that do forward. underway We're of year. we're to to for our and Now goal see going efforts shoot shooting lot lot and to of we work X% a that every a a There's year. opportunities going

system to simple model. conditions and other and So every is be because of management intensive, the affordable a needs It's that kind capital we're and going these in vegetation infrastructure right California, resilient that expenses. in underground is rely reduces the Though annual need perfect the to annual on of that year. work then right it's your example long-term to here intuition

here to our the demonstrate through undergrounding. have really we So affordable simple and opportunity model

that. So spot on you're

taking questions congrats you appreciate I on And Excellent. and the today year. a good

Thanks, Constantine. you See soon.

Thank you.

of Bank comes Dumoulin-Smith Julien of America. question the next line from of the have We

is line Your open. now

your You question. may ask

Hey, much for time. the team. good morning Thanks so

to Nice Julien. Thanks, hear voice. your

Likewise.

threw you've how cost inflation of in the at you, work X% So what's non-fuel baseline starting outset understand just here the on want of at underway? this cost just the number at a here? savings on script. reduction, out here's two point looking that O&M just to otherwise Just But the know the level, I minus a here? high you meaningful gross much billion you number? offset dollar how What's are got and process program results with net at you're least starting that offsetting to a

a but Sure, out dollars roughly got thank the you. that we It's taking year. Again, substantial. to previously, was of it business billion

now non-fuel Our a of was roughly time. be about it we'll a down all through over that in O&M came at total is target year we pivoting this to working amount billion X.X. we'll $XX last We're right be which billion view, think

X% stands, where So matter year-over-year, inflation no right.

focus some go. hundreds in it contracting these we of in heard millions can is as we as year, levels to as costs us out improve productivity efforts, well of take of X% taking going themselves, you Our large out cases mention last we where that dollars being as be to some ones to did

best from to field, possible. in get sure focus the going doing contracting the productivity the sourcing a really standpoint, as as Year-over-year So pricing the our that's to enterprise. be well we're of in making best and really

you getting do hedging near-term speaking about terms considering I near, just the possible inflation cost through in about both those, and and around putting And mile it. that how or much And best here. out of medium I can parameters of especially laid the intervals in the pricing here? confidence of mean, the inflation of input achieving I amount much those think you the metrics potentially have you've confidence, how how some here? think in commodities numbers, new undergrounding term per confidence work mean Got long-term.

obviously think we'll in be to And months. coming our very the working contracting I undergrounding be going important. our on work is out Well, that strategy

what Julien, coming a with we methods, are projects mile We we're technology today. it rudimentary doing that confidence, don't deploy million best today, because scale I technology. because that to have have And $X the the very that's have the say, we would in we at haven't deployed

I be said one In we're of don't to have And said, said, him, is best the talking hey, could providers you fact, He isn't here? job. out trenching have why And scale. better your that on He I no, equipment. of I I using. I this to said, much that a using? was our he we was well, stuff equipment Heck, because

You're not to can running to work and And enough I it best help the the and reduce the to bring scale me make miles up. my equipment cost for deliver. underground time and speed

and I So industrial unit it's back school improve with pretty go to old my I we the can cost. interesting. that engineering, Julien scale, know

and scale, plan. today, the certain a mile So at right I million knowing that $X on we do process, jobs that partners work know with we can do equipment, can

today? the numbers just if clarify, terms staff, so gradual has And of unveil, run cetera, that been in will. you've I cost that a by have et to you know about metrics new the these just commission talked you this

had certainly staff feedback comes filing when key we'll from but the about XX. stakeholders. formal on conversations our that's February and our headed, we've with plans Yes, get all where formal And we're

of that. right, Best soon Thank See for you All wait here. well, you again. luck. we'll

Thanks, Julien.

Thank you.

question next the from the Lapides have of of line Michael We Goldman comes Sachs.

now Your is open. line

You may your question. ask

actually is you a really time as the first long-term. I thank total is refer where a things. around kind think a return or couple guys, is question. Hey, semantic language I taking it text the of proposition for in your you this to which my had One question, EPS CAGR,

So the EPS small at what just go yield. of know a language about difference. an some drove plus No walk was mention look back you the I and just change? third it decks EPS through, a that Can previously, that's us and I combo quarter yield, really ones CAGR.

about from good of hear we're and one that's I'd plan. components focused one No, really it. the is really key absolutely, think This today. you. And there's Michael to I things of the three probably five-year on think absolutely

is guide return CAGR, CAGR back shifting of a we first years, turn over as dividend consistent a on a grow scenario the toward total return that that period. those saying of as to the time and The we're least looking is will that where half that what EPS XX% from we generically dividend just right instead generic we're at EPS back

significant shift. a So it's

going we that the that very immediate we're on body reduction efficiencies, work get in which large from today, the focus better last the reduction, mentioned, the right. I near-term, through reduction ready we're the we bill mean is And X%. guided cost is is closer as think in system, think risk the just underlying our Previously, talking reduction to undergrounding. on comes is convey program, risk increased of the trajectory, and customer when is were and once roughly to costs overall to the And impact expansion working risk of what which neighborhood we second down. is But talking our Patti piece about we're is long-term X%. third keep to risk on trying going today I EPSS the of that

operating the So those are of planning really the three plan. key financial components

to of that part EPS XX% out now a what if this, the eventual second includes and goal, return yield, I that you future want of and Right, that to to return at XX% is basically on EPS quarter did CAGR just CAGR back total because of and as dividend if total reducing that's EPS that the to I'm imply it, XX% portion it like third but I towards hate moving the is you including come the a dividend quarter of CAGR long-term harp this a projection you're kind but basically relative kind of yield? put

we're reinvest That's level. with essentially put shifting enterprise return to model. We're the low, really keep a going costs in peers total to again, to and Michael, ourselves return the where in ultimately line premium at total we need correct,

you so you can commodity customer are really you the much I move control things next are that, your the the have that control great then thing in all don't lot also done and lot know it, of in a or the bill, as talk the the payables just bill, to prices you K just has there -- have can things a commodities up. don't have, you year about over are from in what over bill, on in the one Got bill? total of of,

when prices a closer we've able the spikes driver, been the a to that to Yes, fact look good of we've able been we aggressive as on proud customers commodity. to that protect those that's our XX% customers. natural big we're real strategy are the minimize been commodity that at our gas, impact really the big particularly to XX%, up purchasing XX% of got so time impact And have some to that's we've we from so resources, a of storage because hitting we customers prevent

appreciate Much it. Got Thank Thank Chris. Patti. you, you, guys. it,

you. Thank

Michael. Thanks,

you. Thank

from Tonet next question Jeremy We have JPMorgan. of the comes

Your line is now open.

You a may ask question.

Rich me? Hi, you good actually morning. hear on Sunderland for can Jeremy, It's

can. Good morning. sure We

to and range? timing what speak they are and starting ends the low around expectations equity, Maybe drives can just your of the XXXX Hi, high the thanks. you

to happy pleased to recall, we're for always you zero right, you cover zero Ultimately, at couple landed trying taking to this that Last XXX, guided point Rich. we specific looking timing, we on look year. had to drivers. we're nothing year, a it at this are just because at can at you Sure, as conservative what if again, last of imagine

wildfire at to communities to legacy that cases, progress We're on claims we're are there. ensure the We've there work continuing order. be through going highest the to make would to its for right. First individual commitment got continue

the some well. as is one other of we've prior the the on wildfire going materials showcasing here recoveries today think and just be that assumptions recoveries we're that got I to for

the way proposed point and to on as some for timing So legacy at appropriate this work well. our prior line recoveries, the we'll claims continue through decisions, in of

see this color How wider it. see to do how PSPS? EPSS. you need with do PSPS for the interplay rollout thinking then about the expanded just there. implement use the And an that year, you Got Thanks just impacting

and that everyone do those of Yes, and weather, of we tools. it's PSPS multitude know safer can because the of a continuing of want to question. regardless we drought, and want system both we learn listening to on these here rely EPSS can important I great to very remind remind Rich, Regardless today, that I thanks prompt for and the We're customers. is protect under conditions. our optimize

we have in it look dramatic we and those when Now the XXXX. resort, can safety we and mitigation. circuits use pretty have last a that last against when XX% significant of would see the year, what admissions previous the and tool learned PSPS But we conditions, enabled where That of that previous prevented between on EPSS. current loss XXXX rearward, our about we And is reduction a know algorithm we and we is structures warrant we only conditions a but do we're model -- excited EPSS.

in ripe process enabled, mind on engineering So the preparing a enable is miles a have are -- conditions day, EPSS on know on threat dry of able and the of Flag keep standard. to XXX% fire we're even Day the those spread, non-Red a high utilize settings a and we can EPSS when in for non-windy our to we fire

us. for exciting pretty that's So

today. I think an keep risk important really enable us of it's safe combination to against people that

today. time the for thanks Great,

thank Yes, you, Rich.

Thank you.

question next comes line from Orrill Gregg the of We UBS. have the of

open. is line Your now

your ask question. may You

Yes, thank you.

Greg. Hi,

could about steps was the wondering, to I timing you implementing back the that? thinking there how securitization and the you're I for Patti. neutral of if rate and sort wondering come was hi

Hi, thing, Greg. Sure

just has reminder, CPUC stage basically the nothing this this at though. point approvals is had FX already at at Looking this is a two

out work in in year, we're operating terms company. to the And so at QX the the way seeing still in this we're looking intend to that allowing through its process kind execution take currently this through, of stage, $X the execute billion currently courts appeals earliest at just process us timeframe, appeals what of

Thank you.

Thank you, Greg.

Greg. Thanks,

you. Thank

of we Morgan question Byrd Stephen line Stanley. have Next of the

open. now line Your is

the ask You may question.

Hey, good morning. Thanks for taking my questions.

Hey, Stephen.

of approvals to straightforward you or fairly just broadly processes in should out or other just any whether expansion that and to feel do be that EPSS I about to check roll 'XX? more relatively wanted in are terms talk XXXX wanted confident there in

we the circuits. part Well, of are we file and moving our mitigation forward will obviously wildfire plan, enabling as

when to of had customers outages we would call of a Some take engineered, sure then we're it safe a had did was we And a spark, re-energized, something, contact a tag that coordinating small a to we've stretch patrol settings they incredible. or Hotline a ability what so with had were by we'd now, animal, that long, whether challenges a it than is line tree it line. EPS de-energized to significant who of challenges of our address our handful which made long of our portion the that a it's dramatically different much it early the we that are process, installing we much last an second, the impact circuit. would XXth out that year, improved full engineering smaller is we on cause shorter which de-energizing have make when is of spans really much multiple settings, because it's a before But those coordinated

restoration the and faster, much is is patrol the much So faster.

very, important that here. behalf that that is and reflect we're so will bullish that with excited we of But certainly is a that. of our And very sure of our de-risking system customers. transformation And safety regulators the about. with And pretty to work make something approach comfortable our filing they're we're pretty on this

in then that's you how other out for into loss that potential discussion for Well, do residential, thinking you growth? of about cetera, X% one on the on your load out, customer et does you load growth laid all I that from how growth, guess impacts And factor commercial me, load all to customers, the distribute it's color. impending the generation, helpful whether just factor laid of load X% think

of of storage, directional we impact I peak the mix the those a load, energy. and EVs of a EVs excited reduce road you talking Yes, that's that pretty so you have Stephen, growth, a I about distributed and customers as the And with when of electrification, is and the well But of from resilient, time supply describe in we're that solar serve actually key demand number here today. combined when talking particularly kind wires reliable, I'm both And same and could flex alerts bi do an combination but the as about load perspective, important much have mitigation enabler about peak see of on California, that many talked supply distributed times. it charging these a with that does more about electric demand. here new the resiliency certainly still as capacity growth, which vehicles are that we're and part that an make on can want, grow storage has we California to in at our more think the

pretty resources. distributed with on a where to of X% those we So net-net, over It's combination even time of out load that's X% electric come this exciting growth, technologies.

you thank Great, very much.

Thanks, Stephen.

you. Thank

Next question the line have Mr. we Levine of Citi. of Ryan

line is now Your open.

your may question. You ask

Good morning.

Ryan. Hi,

color determined XXXX is the you're appropriate laid any out underground it the able to share? there how's Hi, target plan undergrounding in was for that today? Is mileage that

going as announced mentioned that do miles. we've to we're Well, publicly, XX,XXX we've

what And challenged going do essentially so miles what and every year. we have ourselves the doubling is forecasting we're we're to

we which or would reasonable until each we year did we that then X,XXX double for level. So did XXXX, XXXX, in we double, about XXXX, grow we up in miles, XXXX, get shooting think XX we'll miles are XX XXX. to that And double, range, in in be a

to that all we to say, prove say we have out, it. I do have Now to that

come we stakeholders that key make all that have with felt of that contractors actually sort could to supports. as have deliver. on that or to be like and one plan global requests approved across we But more filings given is was information state to from to the sure feedback we've for obviously through We regulatory received the conceivably on our those that that plans execute that and work everyone we ramp the

information more then timeline cost be would And received bids given this undergrounding of on was concrete to follow-up, point? the for the more a PG&E at what the get Thanks. that

plan And got first coming coming comprehensive months, be We're that for with the with that'll portions we're we what how we'll will we on at. Yes, will have a looking outsource and work the what contracting that in-source, whom we'll to And we'll bids. cetera. out align do as will strategy we've et the stakeholders in and that building we of complete speak. partner volume pretty

color, thank the Appreciate you.

you, Ryan. Thank

this like are you. time. There no at back Thank call turn question over to I to Poppe. further the Ms. would Patti now

joining for Thanks, us today. Mel. again, Thank you, everyone

You hardening know, the ability to very going our wildfire reiterate want of us going safe. positive really EPSS reimagining system, our we our that makes as really forward near-term the gives PSPS on undergrounding in people taken have combination just safer, confidence to lot the with program our of hardening steps backbone forward it on of keep and system risk. a I forward The today

our investors. other for the is both simple and thing think with keep but deliver leave model past safe the I people is that really I to to you affordable to want

take load you So to smart by can customers we predictable work deliver techniques, along we you. capital work done day investors. we This single trade-off for PG&A can't think delivering there's important the a near right for other era and we management savings every for and offset outcomes will wait cost to the no and here, growth with is and have for

tuning So thanks today. safe in so there. Be much for out

gentlemen, all Thank that call. conference you. and Thank you concludes for participating. today's Ladies

disconnect. now may You