Edison International (EIX) 27 Oct 202020 Q3 Earnings call transcript

Good afternoon and welcome to the Edison International Third Quarter 2020 Financial Teleconference. My name is Michelle and I will be your operator today. [Operator Instructions] Today's call is being recorded. I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. your begin may you conference. Ramraj,

and Thank everyone. you, Michelle, welcome,

are and Officer, and locations. team. Pedro speakers the Financial today are and I different Executive this President are call on mention Also President Our would Pizarro; like the that in Chief Executive call Maria with Rigatti. members executives to other of Officer, we management Chief doing Vice our

experience These any are So, a technical our Materials we if please presentation. bear remarks call www.edisoninvestor.com. with will update supporting Maria, teleconference prepared available XX-Q, we at and and include us Form today's distribute Pedro presentation. business difficulties. from regular the Tomorrow,

call, different filings. Please International certain well expectations. forth from this outlook current outlook SEC make subsidiaries. results the measure. in factors as of our differ GAAP about for the and non-GAAP could that presentation are materially During Important Edison The includes nearest assumptions, set measures reconciliation to cause forward-looking Actual we'll read statements its results carefully. these as could

session, During I over yourself follow-up. question one the and turn now will Pedro. limit the to please to one question-and-answer call

$X.XX. her XXXX performance discuss wildfire to will year-to-date from financial year, XXXX, of Well, for International the reported to in XXXX escalation was to the guidance primarily share mitigation Sam, offset CPUC-related outlook equity from Today, strong in the higher our everyone. the our revenue detail Edison by regulatory same performance are expenses thank earnings raising mechanism, compared $X.XX related the per GRC third year. and you deferrals core to confidence $X.XX our This partially increase range narrowing good afternoon, in low-end is $X.XX and we quarter dilution. the our last report. Maria by up share activities, $X.XX and period due lower to Reflecting for

climate is the change the catastrophic season. California. customers, the conditions weather time, is operations, another that and address the of and active of driving COVID-XX wildfires numerous same in to State we midst continue At wildfire communities. recognize unprecedented We impacts in on our And

Our fires safety SCE to remains with property highest thoughts thankful impacted, the the our are wildfire responders for and responders emergency tirelessly and with and implementing managers, lives contain working with the priority. and measures local and we first Californians. closely customers who and protect reduce awareness continues are have At to Edison, and preparedness. the families of to worked and first regularly promote communicating improve risk, communities first

front, COVID-XX to insurance by issues by legislative prioritized was year of and debt COVID-XX. the wildfire the X several build the due to and Assembly that SCE: addressed pleased advocated Legislature expense both also XXX. passage of AB under collections pieces to and the obtaining fuels The risk Governor Bill opportunity projects. that policy Legislature and technology this session COVID-XX bad I personnel, XXXX On unanimous year's XXXX, am through clarifying were in shortened State's management securitize investments the due revenue signed the in legislation firefighting the The State's California response on and reduction.

wildfire highest first and season, was Forest local position year done progression tremendous aerial mitigation augment agencies. the work and and forecast done of to ground XX,XXX over this responders of over a to State efforts at wildfire US ability contain with and peak, despite and job During past This the State, the significantly of assets. significant have CAL resources due firefighters and cities firefighting with near-record which major work wildfires model from seen enhance precautions. this lightning-driven FIRE, Service, better reflects to the wildfire the complexes to increase years stretched XXXX. the throughout those we to counties fire the being have Firefighters deployments since numerous having couple and COVID SCE's to

local the installing the that heavy-lift has Authority and situational and awareness County authorities, fire to fire helitanker This this all in X,XXX $X.X For season, working the by capable through night to Orange million for its XXX in largest of example, world Fire September, drops cameras. night-time fire improved Orange water secure making SCE the of on today last County. SCE and In flying was contributed helicopter of gallons. Silverado late

filed fire XX,XXX SCE no incident the Tragically, this battling or of losses. X% Orange injured acres fire. safety Fire is electric report, As been blaze. reported ESIR, the this over structure and Authority contained seriously the morning, County X has on Silverado with an that burned have firefighters yesterday

in noted evidence a of on prior any the the power-line nearby activity fire. there nor ESIR, reported lines power As start SCE the downed of was to no

power-line above While line wire is lashing sits a to igniting would the at stage, I SCE's preliminary early investigation attached fire. to note may third-party SCE's contacted investigation SCE's it, have that an suggests that power owned telecommunication that like line possibly beneath a

However, at that of in Wildfire safety meet and Mitigation XXXX the preventing it buy effective conductor ignitions track expeditious down catastrophic risk on lead can early covered Plan. draw wildfires. XXX by to or set installed is exceed any conclusions most is target point. miles that for the mentioned to of way the SCE I've definitive conductor covered is public before to to this SCE

Safety initiated. de-energization substantial Government its to a communication sectionalize improved made of enhancements over enhanced has Shutoff, program. and to utility the PSPS, past and circuits year coordination impacted and reduce number SCE capabilities is to when Our Power preventive or communities with the its customers Public

In the resolve risk to litigation. wildfires, company help wildfire-related addition of the work efforts to reduce to continues to our

and information this SCE all able the need. fires, the claims this estimable equity low-end accounting resolved and providing insurance subrogation range from for the estimate, related move our and investors greater on clarity noted September Koenigstein we of Montecito to a As With Thomas in and were Mudslides. we on XX, to hand, reserves our other best

staff timely We very continued on Batjer. the on see working key Commission continuing commend CPUC, despite Moving President that the is of as progress our in leadership ensuring for to are a in action environment we efforts and remote decisions to schedule, improvement new scheduled. pleased at originally significant filings under and and progress during This are regulatory actions its the the challenges pandemic. staying from proceedings their the

of decisions WEMA of During Safety the of SCE's Ready this CPUC service. cost X authorizing the quarter, cost wildfire the of the program, $XXX key in insurance XXXX and continued issued Charge These a insurance recovery supporting several filings. and as reasonable include treatment application, million Certification,

application of the XXXX received GRC. our on other proceeding. progress and X resolve and a We on AB XXXX proposed X Furthermore, pending initial the resource SCE to track filed timely parties decision issues CapEx also in see integrated plans. of has GRC all track numerous their reached a SCE XXXX securitization settlement-in-principle

thought XXXX targets. commission in retirements. ensure To highlighted system help put consistent XXXX timeframe methodology, One market distributed leader am decarbonization renewable their and conclusions are governor of increasing meet the trajectory substantial CAISO, the order which also of California front. GHG recognized planning to preliminary planned analysis power of Pathway state's in the planning as aligns the investments Last is strong, that in These and increasing carbon with reliable, evolving including update to reserve with better The by margin, CPUC, reflect system investment and this, an we electricity address on of its recommended and XXXX and have the Commission the storage. that usage reliability. levels through of of work, to the more energy the want to reliability plant the to recommendations resources, to order the that has complexity proud for opportunities SCE we metric root ton XXXX IRP on due viable its a accommodate neutrality. the need Edison I found economy. SCE's megawatts of a vehicles the Energy new and a the million been necessary emission-free recent substantial increased safe, be system XXXX to a grid cause electrification timeframe reduction including to California resources, our California rotating meet urged the XXXX ensure month, up resilient XX all issued drives to vehicles X,XXX SCE reiterated target achieve and goals. principal sold higher to plan, the to has This today its making outages. increased to important moves importance are commission In element underscore capacity objectives have CAISO energy an towards XXXX. this in this electric adopt executive a August electricity California the meeting I

total customers' report one-third the With electric will transition costs our will commodities Importantly, it Maria energy motors of and all provide turn shows greater to efficiency by also since over appliances financial reduce her analysis this affordable, across to XXXX. that, that by be

Reflecting On later EPS will this again of International of due items of to activities. from year, guidance wildfire for our offset Pedro. GRC increase discuss our my XXXX quarter I Edison Thank reported the can dilution. year. end X results remarks. earnings drivers detail mitigation third primarily I range from X, share the in for highlight related and period This on to accounted XXXX, low like Page you due revenue increase by for CPUC-related regulatory of higher was the solid by first share X deferrals we the the share EPS mechanism the narrowing once $X.XX to that variance. expenses the of you, same are XXXX in more side. per an escalation key the equity SCE's see months would right-hand lower raising our $X.XX These to estimate. partially were core last much per

operating $X.XX higher mechanism a decision. $X.XX largely by FERC increase the to $X.XX, this balancing also the of increased recorded escalation variance from of Rate last Formula primarily There CPUC-related EPS had revenue. and in we settlement the First, GSRP case to true-up was revenue that XXXX for was the revenue because other of due approved a XXXX the negative related for related contributed the April. variance positive to of $X.XX account year. GRC

offsets expenses in there related However, this to variance. were

O&M expenses regulatory of recognizing deferrals primarily Second, assets. due positive lower $X.XX, variance had to to mitigation of a as a wildfire result

had primarily account. Third, tax $X.XX, captured of impact a negative lower through tax our income balancing benefits reflecting taxes

of XXXX because outstanding. CapEx was shares consistent Lastly, with $X.XX dilution quarter a Page quarter's to SCE's see from last by rate lower base SCE's is in forecast increase will for expenditure On and in XXXX. XXXX, increase EPS X, with through capital the you forecast. the slight

primarily testimony. updated base Ready Charge we and rate forecast X for the GRC Additionally, rebuttal

a represents in capital robust over a program driven our annual reflected to of rate to base in electric period. base continue applying in billion XX% This X request infrastructure, this opportunities and level $XX rate rate by investments time, over rate grow After $XX see case compound billion We over this reduction low XXXX to is base been experience to X Please proceeding other growth X.X% of to and significant a amounts of the considerations, briefs Page authorized quarter, on were of strong of the the turn our of schedule range Track and total end to capital all related forecast operational rate still previously during the completed. reflects X.X%. X. reflect has growth GRC the periods.

We equity expenditures a are ongoing require to business To and that capital XXXX. minimal decision XXXX. in waiting previous first to statements, continue beyond our our SCE's emphasize for expect core quarter fund program now will

related approval mitigation our The recovery SCE decision approved $XXX approval be receive million $XXX wildfire the $XXX the which cost will September, GSRP for XX In over on the now next received and we insurance The and application mitigation, progress summarizes was XXXX. recover of costs CPUC approved which the quantify as as for we will costs. a after wildfire were into million, of final authorized be amounts Page the in of costs wildfire rates to $XXX WEMA able and be approved. October months. of million recovery will to revenue these settlement, capital X SCE's on went capital included of In O&M. of that incremental million levels XXXX recovered rates XXXX filings balance in to authorized April, recovered is for AB the X. securitize of GRC. This requirement We

negligence. and legal These condemnation also claims to invoking metrics. inverse of cash the an million recover $XXX Importantly, allegations as that SCE The insurance decision its SCE the serves acted insurance of of and balance against Commission doctrine reasonably liability noted over prudently further next for in its sheet the customers third-party enable X protection procurement that had CPUC its policies. important decisions in recognized strengthen wildfire and credit and approximately years

the addition, add CPUC capital noted When million and confidential decision reached all GSRP proposed will issues financing all completed, expects a position. the the is the a the be cash a regarding XXXX approval. recently SCE track approximately application SCE the a with In above. securitize settlement-in-principle $XXX filed of to executed, it in a settlement SCE's settlement intervenors issued definitive motion Once is proposed XXXX. on X seeking Track the in on QX decision GRC. will X CPUC to

filings record of number We the will highlight will do commission to negative applications not future costs. of the once expect related mitigation and settlement earnings impact I other acts a the pending and a wildfire impact.

costs a quarter premium application for July In and XXXX. First, decision the we CEMA a for XXXX. we costs anticipate WEMA certain months, filing are our on due to excess few December filing for in receive next insurance drought first through restoration also

our track in a X make filing later. a quarter proposed will expected we first GRC decision with year Finally, XXXX,

other program, program and Charge CPUC will million rate XX,XXX ports. EV supports actions by an the approximately XXXX. the approximately investor-owned regulatory This by in light-duty approved X for charging utility add base largest light-duty Ready As the SCE's to quarter, during EV $XXX is charging U.S., which the SCE's

XXXX to guidance and guidance, Pages updated X Turning X modeling for the assumptions our key show purposes. and

XXXX are raising to full that the EPS increases range me to EPS range. we year $X.XX. the share highlight This the the end range by also of once $X.XX our to narrowing of $X.XX $X.XX low again midpoint Let per by guidance

are the last factors from couple essentially of the upward there this assumptions of of unchanged quarter, majority the a earnings most are revision. While driving

in First, of as is items. $X.XX operational from as and our related timing base to be earnings activities $X.XX rate assumption. to $X.XX we financing driven now previous earnings expect SCE SCE higher the than improvements variances This by well of

our and previous that These forecast debt improved release us the issuing confident strong news have and payments. EPS subrogation claims many our increasingly Second, you factors noted so a by estimate. the Parent we and approximately EIX we in Since has month, our in the equity timing September settlement the utility Other of performance then, enabling make the issued invest XXXX to far guidance Last range. billion questions anticipate finance XXXX to equity year $X.XX versus this of of wildfire about SCE, asked issuance. about $X narrowed

issuance our XXXX that on we earnings update insurance. shared we of timing that As timing upon be dependent you, resolutions an future with will will provide call. exceed The the fourth the equity concludes claims the remarks. quarter of payments and And

for please Michelle, the open call questions.

reminder, As ask opportunity a everyone to in question so yourself limit request X and follow-up, has we to line you questions. the X to

Partner. question Research Jonathan comes [Operator you. first Instructions] from with Thank Our Vertical Arnold

You go ahead, may sir.

Good Thank afternoon, guys. you.

Hi, Jonathan.

Jonathan. Hi,

the that the what now accrual, which, how Could mentioned give the Pedro, of September - just is then sort now? some these or particularly, us at much the how on proportion - still your of a arrived and is I estimate could is ask any low-end of sense to being extrapolation, announcement, of sense, agreed, And opposed the question billion obviously, as just that you how you and days? of effectively subject sort to was directional estimate, $X.X settled that or

entities, we Sure. last have the Thanks, subrogation this so that in far, you've settlements fill can the of announced, the public categories, seen here. the Maria and latest various But the the in fall settlement. numbers Jonathan. major parties with announcement in terms X now

shared private the cases. plaintiffs, number In think, to are of plaintiffs small, relative there's addition, of parties, thousands with private I there's but been settlements individual that been, in we've the those a

deeper the all better into then, claims, that the we that, hand, to based would major you wings, facts of settlements. give was, at going But addition us. now be. we behind and of we're the benefits process, probably process think of a right, that's the discovery in understanding rest the have precise disclose And we on what the our writing number what discovery in estimate, our those that's arguments So the in have the - best included of under settlements we and the can and the on you having that, did through

assumptions what what investors might own of not be is that be. know But their will best look percent. that plaintiffs to around process. We end handy roadway, have a or you that the ability the longer what talking of now our that just disclose through move or from be sense and that And kind not are we that lower. down have And want our of of have. that, I hope it, or the the could And band we of Jonathan. gives to give benefit communicate low-ends that estimate. final a result only is to to we've would probably don't outcome about we've of to to we're now things you expectation best an you a counterarguments like, assumptions might one I we're better right some There not uncertainty best roadway. Maria, higher band of understanding making in about having the that. better us we're expectations if the down, still an of various the middle a classes to know - the in able but now to locked if from And place there. facts moving litigation given the understand being best by Again, we're disclose no on estimate the able a on final that low-end estimate now But be uncertainty

is about subject? portion I question way your the were that's $X.X claims that of amount Jonathan, the subrogation the you just asking Yeah, settlement is reached, I interpret think of about that subject with think we the think I that's and which the billion. thing, only is maybe left I

just that, known know estimated. looking was for it much I Maria. how I is overall not versus of

so that fall, we for guess just I third we which the that last $X-billion-plus settlement that gross $X Jonathan's amount, the it, or the had was settlement and order billion was, settlement point then be that entered that. question the to answer $X the would on to Maria, Yeah, or claims, billion, call a in him the of the $X.X billion, take you of

billion. billion $X.X precise So have round numbers Maria, a be - $X.X probably you would number, so, or more

the claims Yeah, right I approximately have recorded guess, the the Jonathan. billion I subrogation known your that, What and took we consideration not question best order would I went unknown, recorded all with on the we is portion total $X.X now liability, think process that the through, what's to payment. probably trying payments back at books comments in and what go to, earlier the just The is of reach of what's claims we this I say into would types break about all associated don't of between cetera. Pedro's the of to et point. down different We're estimate. about

can understand why. You

And better of sort pay that sort a And till dilution to to between behind on of talk will a would diluted. on all the the sort the - you want the also just base better then? sort say of claims? you be of going any reason interest not - So that - comment may a at using and your sort thought that, topic why put this a for in on of actually to just won't my for behind sort - need you? you're further of I related us - of ATM process be XXXX what's Why waiting now then for Okay, current follow-up, have that equity you you fourth understood. the quarter,

we've question available thoughts I a cetera. approaches So, us, ATM, and I first are in et running about of questions, to I'll tools, before, all lot those think tools or the both think about or options done have it think we around gamut, the your what tactics regards to say of ways flexibility I to

be point second to So closer we comes I lot tools. which I issuing out to described in going think in that the we will estimate. why time when the think have it the options equity. changed we way But our doesn't work that have around now. that your we'll we mean right question a of progress cash And And the that, think as I wait, out is kind processes best the of we've before door these work,

announced by of - the most month, covered insurance. fact, that we last that settlement In subrogation really was

that we're about cash our So pattern going really is into to equity issuance. that the of where - follow will of And when the play required. actually timing decision

Okay, fair enough. you. Thank

point might implication could put it, too Let we much your a is Jonathan, the certain of because between reality be events will put there for be know fine resolution what let And me the there happening a me - lines within perhaps the in remaining perhaps of fine that an reading just just don't question, the claims. timeframe a timeframe. be

that often through said the to we've they need sort claims. guarantee have going we if goes the on public through a as much all settlement. would there's be a timeframe. all we of get for expect these you be remaining through entities ended no think I but that And be way the like more saw and litigation settled If up resolve subrogation it claims outstanding could multiyear ultimately not quickly, it claims settlement, resolved. settlement happened settlement, will along, resolved And But through some would those take longer process. similar

timeframe, by bit well, be equity earlier. I X think that Jonathan. will issue do go time, a hearing we was the don't and the we whether it a So bit don't little why question, or really know lot it you But idea, ahead earlier, if into know a because the need not your it, little

Thanks That help. all enough. for much makes the fair very Okay, sense.

you. Thank

Thank you.

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

go ahead. may You

Julien. Hi,

much afternoon, good very the Hey, time. for you team. Thank

think best outset if in to can further, I remarks the at liability mind, those pivot you help don't preliminary, as case? But can appreciate is frame telecom I the how to appreciate parties, if as the pertaining statutes the about all lines alluded your not pattern you this direct to apply at inverse basically from and that to the physically that most a is causing least utility, just third-party seeing the - about exposure, affirmed and, should there. understand condemnation I want presumably fire Fire, we you would actually up the best guys also the be Silverado fact such should So here. own that touched you flew what potentially below your involved to but wire that understand third this I And describing sparked you're your or with wires the critically,

longwinded to question. just sure But clear, for statute the to Sorry I understand want we be make very here.

a to because answer, Sure. still I'm point. this going little very raging. this And We give unsatisfying you sadly fire is at know

treatment what And determined court. legal I even you're - it upon for is probably be case, apply, of by would a inverse ultimately, what say condemnation still on example, unclear. applies know will a And could facts so, and won't example. for with apply, I that, ultimately particular focusing, whether even statute, depend will the

understanding would like speculating as flown power liability, were of of this line. potentially something been shared, here. Likewise, up other now, we tried picture the gone I inverse We we've So if on into as you're opine the by think, of to we're apply do potentially aware well parties, right. lashing we possibility the terms right up having whether in and

segment. particular that on that above we're So

that, a And other parties. liability from so be then the that utility show responsible The able telecommunications potential clauses some by imply like contribution carrier. to that that pursue were third-party would utility could then there could

draw possibility But a early Julien. it's is certainly that all, way here. conclusions so at any And to just too

probably to So it have at that. I leave

if I'll ask little All of mind? a don't you right. an Fair one enough. you bit here, easier

Sure.

asking you insurance, forward to on look utility continued it's light broader procure even but activity matters, state, been tied rather stand not in wildfire factors ability to And if elevated you I'm do the Where environmental here? of the as here? directly in admittedly this

we've start probably a I detail it this, insurance disclosures I It been tighter I'll calendar will that lot saw market have the in that sought what is that past, ago, will to procured the the wouldn't of you was want saying look year. for the this the successfully seen a it product on out years that think back or when it's for you've X and premiums Yeah, and Maria indicated sort in amounts by market. of we than have than like recovery higher better is X market we're pricing even speculate

we would available, time you go that expect what the there? you that's would add cycle. but through discovery think would that go there product be to you I insurance every Maria,

Sure.

of that So a it was get Julien, of a wanted, a market and the ability been the tough I think, had to price. at higher have years, for market, it's couple we tough amount higher capacity we albeit a

of issue an for So that is, course, customers. our

accounts, self-insurance we and of XXXX the changes would aware be market like You bear would we've try turns nor we're an alternatives that if to so so actually were to or actually other customers balancing short, in may out undue be not pricing bad good burden, if the to caught it the than some forecasting. things to started terms GRC, that funded our in better that, explore and that our that have helped lower cost, the

something affordable it's into and it our So think at continue customers. that continue program monitor we hard price to to I we get just work for the to most our

Maybe been historic. would far, might had seen be are has utility seeing good is resources time, think we lightning strikes. more here. season fire. little this damage fire level that a might so going with I'm I We over a has speculation is again The The once But be thought it's years the its a made damage of I'm suppression much might from acreage more XXXX to have of increased already would it been effort one we've stemming and significantly if XXXX has seen have the over much that Julien, remarks. I of really strong. regardless and if the here. that at the were here, bit fire the state, we've capabilities. on point half to a that that ago, terms negative caused this of one but firefighting my We prepared acres I of seen having there damage in bit burn, And We across more been can't guess, state And, cost and again, different historic, X But little the helpful we but lightning of burned the might add, to think as in which fires, thing before million fires. I making fire hazard due important here prove see I reflect pretty X is well. induced - those state season the the across for same speculate

risk executing utilities, would will risk And isn't plan, be time, envelope all the it So profile the risk sure the hope cetera, bring ago. risk side, will suppression very different the for climate for look down helps X I that as think zero. be the looking would flip zero, taken that at mitigation risk I'm they year. the hope But some years the account the California, would change than be that large fires of et at I our looking I effort related But the carriers this utility they same winds, the certainly - in wildfire conditions, weather to insurance would they the the also of I fire would be into have never was at everyone. the today that at hope their efforts contributed is

continue and as continue - to system, the to the continue change, harden we use to will we and we like. PSPS responsibly as we As

offline it. Thank guys. here. on you, I'll follow Got up

You bet. Hey, thanks, Julien.

you. Thank

from with comes Michael Our next Lapides Goldman Sachs. question

ahead, You sir. may go

have and to X I If Hey, - XXXX things. taking level want question. in the offline. I'm about more, my just back for I'll you accrual, has guys, paid I just payment of One XXXX $X.X $X.X question the do for wildfires. thank the a envelope, I out the and is and billion queue billion. But you hop sure

billion and and billion around a somewhere million FERC getting $X $X.X left have on You $XXX between you're to recovery. insurance of

XXXX billion and the rough to XXXX - out range pocket billion cash that's wildfires. in it's of in benefit. of is tax I Maria? the Am And that's for So kind the kind the $X forward - from ballpark, of somewhere $X.X

I have to right. billion is it through Yeah, go about had say, a I little that's we I pretty numbers. me, math But the little about $X.X the if quickly. a through or would went And to billion, go low to $X.X now bit, probably,

ways evidence you're the ones - including been here. you're all settlements not for If the the have going from back you of that the paid of take already the charges all beginning, the if

billion, roughly I billion. to you've the you've And trying billion, think you some I $X.X cash collect, math think don't to paid the from just so collected today that out remember already onwards, billion, skill $X.X $X.X $X I'm about so number but insurance have is but already going what is, some.

go about are thinking - you're you're if about $X - about If all to about forward, the that's thinking probably billion. right

Okay. Thank you.

best the In estimate. best estimate embedded - in the

out and a California seems was what Northern the what about to California out Understood. your tone it which today peers. one put like relatively low a And policymakers? quiet have kind on harsh last in and or coming of question of utilities can scene of and public wildfire piece we're of about court put towards in it the sentiment, Sacramento have the how major play Pedro, publications one officials first in impacts season. here just seemed very with night I the about just maybe the out maybe public utilities, been is talk going policymakers mitigation, and the wildfires of because of from opinion how that you flows kind manage that's to and and coordination our other But and through you

question. afternoon call that I we spend earnings try the question, probably as I'll on a it. could the in in Jonathan's same take I'm I of way, on. the of looking your was numbers. a to That's guess, the your whole probably whole that, By not the glad And asked in think up zone the you question sizing rest good for prior

helps So everybody. that hopefully,

the et over efforts X won't lightning make specific acres I you has burned cetera. on comments. comment out the I publication of firefighters, seen in mentioned about The population induced then But general a or with The and firefighting, terms that half I'll by the make great so and particularly comment the there. just utilities think everybody I'll other issues stem in far. I that XXXX season, that look, think the and The is around Edison. fact general comment comment from fires. frankly wildfire a - tone of more

where weather trying I think bears on the this, adds of about built, of convergence ground, this state something it's including climate right, at some but that to have level, homes risk about conditions, just including do the all there's not factors, to a deeper the up change, that understanding that including including this is and about. fuel of including fire, source this the

second I in little about utility. comment a that maybe overall. tone So our think different I'll a make brings

do is few name done. try One be to things this really to We - of the transparent, tried throughout Michael. we've things all we've a

all, we that our experience, in we've transparent XX% also make so, communities, you hard might working happen. issues XXXX, to wildfire the is risk improve the when public but about under and related reduce being to us miles half operate prudency million square we have only risk very confidence square not a forthright, And a miles And and being things not a transparent there those been our and with we might with in to might contributed operate things reality for standard, as XXXX XX,XXX fires, fire gone company, and as across being equipment saw Edison a system, because XX,XXX a of be I perfection standard we trust have have territory. sure poles the the have system wildfire high and of that to want in saw through that seen can because issues when the

tried X do we've thing do. things other we is The - more to

because that in continuing mitigation the of Resiliency with has started work plans, frankly, there regulatory The concept one our country the rethinking & wildfire and haven't in regulatory with iteration the both seen at second the our saw on our to communities, combination We we of in thought learn we'd to that thing that filing, decision. different, And physically stopped hard instability of a fires developer we to Electric very around and on and CPUC space. really Program, before risk the them. We everything about how profile since first the before risk saw radical then. even and Gas San we the the to Diego of XXXX. led in system doing been that to fire Grid work wildfire at GSRP even Actually, framework the was Thomas event Safety the fall WMP, And the it. try began was the on we're XXXX, communicate we of improve

on kept continue California focus is, like why these thing The third our most seeing XXXX, and risks. to also I'll issue mention seen and you've attention Pathway on themselves eye impacts as climate long-term us what that's ball hard And both here. change to and think needs we in even final near-term this the of because We've change, climate address to we're manifests the things about do wildfire. the

also of keep but help we risk. something of turns care to reduction think state the to reason take be really a of part reason taking the need this help saw the grid addressing - of care with here, strong the wildfire unanimous state for long year. the you to electrify is long-term and because, right, fabric to can reason economy. to the for access you XXXX. XXX state approval need greenhouse also is So it's that which strong utility doing partner the It's the to a strong run, of state out it that And the as support major AB compact part utility it's I that change, that goals, energy its clean the take the But climate to have to about part achieve of a have help that to a have you healthy. for a gas saw utility care important AB And that that ensure climate risk, government crew the part of

how to of long the little long-term? And do really help in we near-term? But we a here, what a terms winded lot in about do do to think demonstrate about but So how we the think this we the and enjoy a be partner to living order make that and we state be to in partner all long California strong state to for that the in. haul the our here we need public want great we a

appreciate it. you, Pedro. Thank Much it. Got

You Michael. bet. Thanks,

through I was scratchpad Michael, it, think… one thing, Hey, was just going I because my using while Pedro

with to time some Maria give I numbers. work

I billion is $X.X think math did looking want. for I you like more billion. you're offline, to Yeah, And can go $X.X we how my over the number if

Happy look Maria. Thank great. sounds following That to up, forward you.

Thanks, Michael.

Steve And Research. the from with Fleishman Wolfe next question comes

sir. ahead, go may You

Steve. Hi,

Hey, good afternoon.

poles? managing So just guess, wire, do servicing their do Is electric. own the responsible lashing you telecom wires Or the one on and technical telecom all? the to near have and I wires at question for company your and that

might that complicated you cases, the dedicated In telco being even under assets general, telco for to they can or Agreements. their In gets designated for but Pole they through responsible have them, companies have can providers equipment. more multiple It they transaction. here, some Joint a then pole are using on because managing the space other

their and really physical look on for the it we responsibility, assets. when with inspect That we said, it our maintain electrical to facilities, hazards responsibility the interfere could go system. that So is any the

so assets, electric And any don't telco the out and see while keep for certainly we assets pose do that we inspection and if an report something the we system, to telco hazards telco detail of those the companies. their eye to might

settling the year. any Track X timing full the Track one there's GRC. go Do the the you you Okay. - think we on feel like And good pretty then early question through that's sounds like you of X just going - or other Track chance to X the by GRC litigated of assume how on process? have next The should

the to issue and process the all ALJ arguments along mean, we left really you is I far decision, now. could in after proposed Yeah, we're a have - pretty that. we oral have

process we X. and on can the you in the say were we gone pretty proceeding something like far in yet never of won't of hadn't obviously terms do through I we reach principal. in in much the earlier X process along that. piece a Track the lot So hand, when other settlement are of parts different the the But Track

done for the of in outcome the And past? you'll GRC you've wait like give XXXX that to guidance, the

X. Track Yeah. the Yeah,

Yeah.

Okay. Thank you.

this we Steve, Steve, remain to path. far always I Thanks Steve, think Maria the a it parties got lot. things. right, But is down open pretty want one if discuss

Thank you.

Thank you.

Our next JPMorgan. question with comes Jeremy Tonet from

You may go ahead.

afternoon. good Hi,

Hi, there.

to fire. gears Switching Blue the here Ridge

or if Just that the is EIX assets wondering the any ignition if point to Ridge if reside case? you're of us Blue with share within able vicinity the not

question. think the I - thanks Jeremy, for

the this ESIR Ridge. And any see I'll we that for an to Blue we don't needing think not short is point, basis an filed at give file for ESIR. you I answer have

Thank helpful. you. very That's it. Got

Yeah.

bet. You

When the should thinking planning, a about few potential system for over changes broader kind how there? think question next about EIX capital to California years, just of opportunities we incremental

right. No, that's the When great and try near-term I certainly we brief. that, it a Yeah. think keep talked about, I'll think I question. about thesis

preference to an has XXXX for that. always suspect involvement. opportunity that XXXX for of The across for There's foresee in that state. we by the much generators to state competitive generally had the I needs procurement utility the served So that be would state continue timeframe, the will a

A we shared a dedicating SCE new point. It's as we storage since wire investing storage we big with into But to And invest we market generation third-party different part capital to before well we not that, being part base. midterm and with system. California capital here. have the procurement. new XXXX. see at vibrant opportunities don't that capital that of up to because a the generation certainly investors the XXXX do story storage, generation. not in see rate very just have we the don't have We the core have traditional only But plenty business see we in of go little be We this in of like could

California-wide of XXXX of Pathway suggests a storage need see you'll XX bulk for our that you, and gigawatts analysis power remind new to the just so, level XX And new renewables at gigawatts utility in while third-parties, storage. also seen for options by some interest we in will an And lot storage a done I expect statutes of would certainly on preserving have be statewide. the

think the deploy is energy a set robust Loma I'd their say, utility transition, we all we of more potential storage. target role as some megawatts on our And capital, though, that picture $XX it that if at million, here need in in case, bigger about Mira an You've seen have sure large needs. interconnect as I get making a rate was able XX that economy generally in the near Substation the midterm And clean in me grid correctly, around few longer-term those years increased we it want a to would amount a on more big investment for current and check of ago. the the be had but by the grid filed capital play in opportunity as integral we not resources say operations; million, stagnant with the aside. we Maria, when batteries provisions we for see electrifies. $XX capital but likely in being a for last right, to was decade, utility time for was be XX%, we XXXX. ownership by the can economy I load, across And which storage our been where example, to users to as - increase remember up see energy

in with as potential that along we might other So the see environment program, in like that Charge system. the there the evolves. for like wire opportunities investment a areas X significant Ready be opportunities need And upside

So it, Jeremy. hope that covers

with more in, over Got the customer expected? your just recoveries outlook of what's it. And one slip that. I authorized as Got for current planning period, rates appreciate if incremental could kind it. Really

you would If average monthly that's obviously X] GRC, happens. especially $XX But about so to were [Chapter everything go case, bill [ph], look our the the never average. that at the current on approved, rate which up is residential

- it's about think Our care to customers about a month. $X would go up I

Thank for you that. it. very Got much

Thanks.

next our Levine Citi. question from And Ryan you. Thank with comes

sir. ahead, You may go

afternoon. Good

Ryan. Hey,

transmission comment in risk months seasons? of the blackout last may the and In address light in of few opportunities California can the problems few the future some specifically related of months, potential over investment around, last for the reduce blackouts you that and storage

in And for equipment with this of here's with might specific Remember outages rotating have the by the question, strokes beat I that the insufficiency per se. not what system that. Yeah. in of that transmission on supply. think I driven precise driven I we the piece They by broad right answer distribution were were shared help more think just Thanks Jeremy. is a lot Ryan. a now don't that or

kind last therefore SCE for procurement And so on is approved lot year. CPUC that focus advocated a of the near-term and the the of

they timeframe. has SCE number. that, recall procurement megawatts the I something megawatts I something done So statewide X,XXX for - XXXX think XXXX think approve And of that keeping Of has SCE like to to some with going more of Board, done with cooling X,XXX like been years, extended tandem Resources a the State existing having procurement due that's for that once largely generators, in timeframe, Water few that's the retirements the timelines for for restrictions.

think of I that So megawatts near-term current resources very see the the earlier, statewide. midterm, actions. I beyond talking X,XXX was about contracts a we lot of that's statewide what around for In that's need

that driven effective by storage may may new by again provide that And able be capacity. once be met plants, that might of extend greater so, some being to could their of additions existing of some of that be lifetime, resources, some combinations

being end is some through certainly portion think competitive I done done I up be base. utility could And portion of think that through processes. that which that it'd a - that So of rate be large might something

as that wire On know adding transmission to are about landing would - can think places will rotating contributed to needs to in interconnection resources that already the outages. transmission the for the lead connections. that to specific system, resources any side, course, deficiencies those need transmission we that, have don't have of if then I point I But new

of those heading And will our terms anything tell gigawatts that term. of share resource to the XXXX in of near the view, gigawatts don't to XX will the I term for dollar in clean storage, billion. I be statewide like around renewables and try needs, added put transmission need have statewide. when go around much billion a investments, so, paper, third terms I our bulk Pathway you out something think by power up again, $XXX XXXX, rough energy that specific estimate, and the to new longer white in Again, of figure be we in XXXX parties, of new related estimates, resources may $XX system XX done through investments

And So by there will some investment significant utilities. of ahead. I that think served is portion need to be need

you. Thank

Ryan. Thanks,

from Fremont Mizuho. Paul

sir. You may ahead, go

Hey, Paul.

reports I with more guess, respect the little some you Hi. give my branches Are guess update tell or of into And there with you lines. able been to that there? any have came first question can sort is vegetation us there may contact the tree Fire the us a about Bobcat that Bobcat were bit transmission I Fire. news to

relay saw on high-definition XX:XX. our there system, XX:XX the time already. have X major KV fire that, starting there fire X, initial on the are I September don't one the smoke XX and out beyond any reported to updates saw of think was PM. XX:XX. did we just have have early that, minutes that the we reported start stages But captured that So But new circuit, recap of as this a reported cameras a the We we fire as at before of or have what

what area our also And that section before removed So, minutes they And retained conductor from and reported a start they before XX-foot The US saw investigation. was overhead XX that, tree of sort we any And X removed of interest. the Service the fire. branches. doing in of is of circuit. minutes some the activity Forest we understand

be own its fire. sole causes of Forest So - may of at the US vegetation still equipment possible also here. this looking fire their early involved is suggested any is other review. know don't ignition It's Service really if or is for focus. they in the SCE We if this investigating the the was doing if

either Paul, We this direction causation it's line, in at any potential will way be of have certainly in early. number of terms causes. And too conclusions bottom at reached we no is point. looking The

is, Can elaborate statement question other the my you settlement, a a you were to making on don't earnings expect Track X with relative respect that, negative that then, impact. that you what? to is And

in I like see would go the So that that be by in settlement probable to the recovery. be only as of detail, earnings to anything lot caveat or of some anything a meant on was saying people of will I untoward. any don't settlement guess deferred We'd since We the think more there everything being impact that that. costs

is previously this consistent Just wanted to clarify with thought. that, what we've

Okay, any type not the signal on EPS? of any so way, that's future in

that was deferring more clarify - No. the I deferring. have well, a is It But to to signal it mean, about, those we costs. going this things it previously been we've that settlement covers a I on was costs point earnings. talked are negative guess, of we And to more to number not had fact were effect that how

much. Okay, you thank very

Paul. Thanks,

Mr. last That Sam I the over to now Ramraj. turn back was the will question. call

questions. conference you for call. follow-up call have today. joining That Thank us And any our you if please concludes

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conference. concludes This you. Thank today's

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