Edison International (EIX) 3 Nov 212021 Q3 Earnings call transcript

Good afternoon, and welcome to the Edison International Third Quarter 2021 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,

include are and Officer, and team. Pedro difficulties. available speakers the Financial bear today presentation. in are and I us our Executive this if President are call on mention Also President and These Our technical would so at any presentation. are call please Maria Pizarro; like with business Form the regular that remarks Materials locations, Tomorrow, Chief Executive prepared today's call Maria with different Rigatti. experience members executives to supporting and other of Officer, distribute we XX-Q, from management our www.edisoninvestor.com. you Chief update we doing Pedro will teleconference Vice our the

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

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

Payne, and December strategy. start President you, the advocating this company. focus, advancing Sam. on with senior its wildfire customer-centric efforts Kevin risk And and company's our impact announced clean and on Well, is had particularly retire for after the most years utility, of thank XX with I CEO, to X, the and the profound Kevin's before leading commenting SCE's to energy a we quarter, week. last note I plans wanted the leadership that changes mitigation

their currently Steve Promoting of friend will Anderson, going am my Edison CEO; miss Vice will ensure bench. a Service, will as Kevin delighted am I EVP President Operations. While Steve with and many I succeed and Customer already Jill that succeed as seamless to financial number that at our to Jill have a of deep Senior new and roles. Steve of very week as and exceptional experience much, President and Powell next conference good I have talent well. to will them you transition, and opportunity know an Jill you believe meet I EEI's met Steve both bring of

Track performance is Reflecting per XXXX Turning to quarter. $X.XX rate the compared earnings recorded narrowing to for ago. which X International EPS $X.XX during comparison we SCE for are in XXXX true-up quarter, year, core to X. of its because a the share January outlook retroactive the the reported case, $X.XX to of to not our $X.XX. range general year-to-date and is a Edison Today, This remainder guidance meaningful year our the decision final the of

longer-term reiterating will our also target her growth performance in X% financial through EPS report. are to discuss in We of X% our XXXX. Maria detail

Now mudslide past starting and the provides updates to events. and XXXX SCE X XXXX wildfire slide related an overall deck in announced X events. today the Page with summary.

of potential billion billion. from estimate losses best the to revised SCE First, $X.X $X.X

on in we communications our mentioned have this quarterly. evaluate As estimate we best continuing the topic,

and very a I'll losses. along revised the which with broad its new to across or quarter, with of Enforcement of information information agreement CPUC talk of that SED, consider minute, process, all claim additional provide potential diligently on an part litigation ongoing types complex the Based you As best collected we and Safety estimate total arises set Division, estimate. in SCE a about with the of during the our

XXXX equity need and the approximately settling call. about $XXX and disclosed our now fund on address settlements. XX% XXXX the the exposure continued events. later make completed to estimate claims progress, the settled estimated increased previously not of SCE the for total SCE While topic higher of this above we do million quarter, meaningful will losses. XXXX I this estimated want to Maria plan emphasize to financing that has

with the mudslide SED events the XXXX to its an the wildfire Second, other and into XXXX investigations resolve and reached and wildfires. XXXX utility agreement X

or million agreement, million SED the shareholder-funded current did not mudslide In we $XXX for The the respect estimate. unable SED conducted $XXX of with executed It total Woolsey CPUC to to safety uncertainty. timing other The measures compliance rules in As best and of Thomas, were losses an investigations SCE's estimate. affected part billion and SCE magnitude would rate of pursue payments recently by to uninsured a of as than waived agreement. proceedings million resolve regulations value $XXX incurred about for with to XXXX the and of under and CPUC seek and would prudently wildfire the seek or million fines SCE possible assess agreement fine, alleged to have our applicable right estimate enforcement XXXX in $XXX approval, $X.X Koenigstein, to admit previously negligence the violations recovery disclosed, that its actual out best of formal and which and the subject agreement waive of to of the has areas excess though for imprudence, penalties composed the the will insurance we liability initiate in SED that total fires. agreement, has the by is cost events was available recovery $XX million, claims

of reaching puts the While SCE one agreement number a additional an us. alleged uncertainty behind disputes violations

the year-to-date, solid WMP SCE program action plan. mitigation its plan PSPS miles Let bringing miles of continues or covered now make progress California over SCE wildfire inception. X,XXX has installed wildfire me conductor to and total address the its X,XXX season. on execution of the Southern since to

in with resulted targeting has high fuel fire XXX,XXX SCE in goals SCE's distribution of Over year. inspections shown its slide in overhead inspections with in risk the high of areas. another to the XXX-degree of to past areas, Page lines high-power years, performed to risk And This assets, annual cycle strengthen All our utilities our in inspections wildfires. by continue continues replaced supplemented about has profile approximately on areas in undergoing of covered on X utility is dry XX% the confidence power the WMP most outlined area. these X fire risk improved its also conductor. scorecard be the also respect deck. ongoing with actions to of SCE our meet end mitigation track overall additional risk

We has risk its reduced believes we for which quarter, you are Turning of the points to Page X. SCE it wildfire showed highlight metrics how last proof customers.

metric. additional have We added an

and would the that PSPS current can't we X,XXX prevented. for prevented warning than fires acres considering utility's have or for Using been a would Looking today, associated infrastructure. flag with quantify damage protocols, larger as its PSPS the SCE destroyed when back events days use of utility damaged have at over past XX% the the proxy would wildfire structures red

risk SCE inspections we And XX% on mitigation Page to has it data have such and it In treat by physical and forward-looking practices which operational reduced of much the to and However, management we that more as vegetation measures summarized and such important on quantify industry-leading levels. mitigation relative reduction. basis. of total conductor, deployed to This wildfires this XX% management SCE's pre-XXXX from considering us think actual has model is as the much estimates solutions, the losses related catastrophic analysis PSPS. mitigations based risk a SCE is wildfire on reduced probability to to how a removals, covered risk effectiveness, assess X. use using recent enabled total,

reduce the and eliminated, risk need risk never further achieve for to continued this the investments. fully to risk grid-hardening the decrease While can does expect PSPS reduction to with be utility

and To XXXX, seen support Kaisa, under new utility-owned to CPUC XXXX, pardon additional like once many about system Energy and wildfires in becomes reliance weather construct third additional of California economy, This megawatts summer. this essential, end, of caused closely for a Major on drought to outages to construction securing particularly this faced continued indicated past conditions with entities XXX heat, Commission over XXXX office, to conditions. me, we the clean to stakeholders material of rolling the summer proclamation Cal-ISO, emergency the the California is avoid energy drought temperatures. have accelerate extreme capacity SCE events for with California that the entire improving statewide an extreme the XXXX. needed agencies, increase is As XXX several issued transition reliability of state have customer and to this summer even continues electricity. and West risk accelerate XXXX the capacity construction again that customers with requested for when to and storage mitigate -- governor outages summer the CPUC, a including incremental upcoming SCE load-serving Governor's capacity storage parties, capacity, worked summer To energy maintaining by greater repeatedly past and to plans work energy the in years. to of over megawatts CPUC the addition and from record

ongoing in history, there which still included While the preparedness clean be need done. governor state $XX bills more over and funding, largest wildfire an the to climate, a billion signed climate is and package energy XX for lot in

the decarbonize and economy. International's XXXX. decarbonize target, actions I released point is by California a paper its Gap, for we This its latest goal state the and In So recommendations to federal the emissions Mind to Policies foundational would XXXX recently needed policy for the for to Countdown highlight which needed we to to achieve is identified entitled paper meet help the a identify and its reduce it's climate way to contribution states paper, and to Edison economy XXXX. policies like that California's California policy

a emissions, acceleration annual made quadrupling in the has by XXXX, as XXXX increasing GHG shifts and the X.X% to progress usage average advance grid state That's since effort. and closing that in electrifying buildings. per decarbonizing reduction a the require year goal and order, market quadrupling GHG of XXXX. It between critical to the such power and X% incentives gap trajectory California areas, requires and its and achieved between significant emissions While will policies current demands the transportation It reducing supply, it's the but tall transforming means XXXX feasible. for in preparing

all SCE As positioned California, lead in utility electric investor-owned well this transition. the to is only

the our most ways identify and greater the achieve setting equitable to emphasize as a all to the covers and appliances costs well clean chain. XXXX. in X continues affordable to We delivers policymakers GHG alignment this to energy a will other and including Scopes achieving to net to customers' analysis electric power energy resilient address to with to motors economy. our improve close with electric change and will partnership Edison reduce successfully by ensure led the committed This total across transition all transition is an approaches standard the supply SCE X, International work commodities enterprise-wide and planning, shows customers affordability, across X/X by is needed XXXX. X affordable zero by as emissions funding, operations, since of pathway Edison that stakeholders grid. and climate To policies International's continue broad And efficiency

continue report. advance also Maria financial leaders the with will today, you Edison transition, clean national her energy that, from engage phone I to global to And We both with provide EEI. in where why am by will state, Glasgow, and Scotland, representing am is COPXX joining and which

updates Edison everyone. on period of Thank topics. expenditure cover an the will XXXX last you, per for afternoon, quarter capital from Pedro, results, comments and same and our and XXXX, of core $X.XX third third today earnings $X.XX year. share share quarter the reported base rate increase other International financial My forecast per good

of true-up The EPS quarter see side. in that's on true-up months a Pedro a revenue of the related share the XXXX. per $X.XX based was had impact. contributors issued balancing $X.XX. than meaningful EIX can variance were billion drivers in the XXXX variance. increased final first in because positive Page primary in To the of X, to $X.XX the primary this the results line earlier, partially a higher because As vegetation will in Parent earnings and its offset had O&M due the management is I GRC $X.XX dividends to includes related SCE general wildfire X. XXXX key mitigation receives final this the $X.XX the March preferred retroactive establishment footnote on recorded during driver and The back lower negative the including FERC. $X.XX accounts, revenue, earnings highlight to January right-hand mainly particularly offsetting recorded of $X.XX quarter during was a decision not and accounts on deferrals and the costs X. negative by at for driven and quarter resulting regulatory the X parent tax XXXX quarter loss variance second third depreciation GRC At to quarter timing SCE's the higher case, contributed accounts you to and XXXX. of noted related primarily authorized XXXX management due XXXX. items and $X.XX. to and and of a XXXX $X.XX Higher a of of third decision, several for a by Income the in for is the year. to in in rate to This higher balancing increase third year-over-year begin, rate the net equity true-up decision. XXXX comparison of third of $X.XX, $X.XX quarter On preferred listed are a CPUC GRC decision revenues was statement Depreciation SCE true-up, had the no GRC a Other, tracking and are variance components first which the income certain reflected the revenues from taxes This of for have asset benefits base risk on

to move forecast. SCE's base and Now let's capital rate expenditure growth

on recently our reflect announced to updated we capital primarily have As shown forecast utility-owned the investment. storage Page X,

projects for supply. expedited billion XXXX online the approximately California ensuring role a recovery megawatts by quickly SCE of construct an accelerate increased through capital dates is storage our mentioned, expenditure Pedro $XXX to letter lowered and summer these The letter play and expected million. clean previously As needed meeting in the somewhat for XXXX forecast forecasted the capital These million we essential prime capital of but the has a the the filed advice utility-owned are approximately the because XXXX safe, We high reliable their can for projects projects XXX XXXX likelihood $XXX capacity the years. of for spending storage. XXXX electricity maximize incremental advice example some, to SCE capacity the XXXX. of cost seeking not $X of of through end about of in in utilities all increase those for of forecast is net forecast approval

I base to forecast driver of mentioned. forecasts. to on Page reflect This rate we our the rate have XXXX shown the As storage X, investments through is also XXXX updated primary base increase the just the

between quarter implementation For The updates the tracking wildfire of also the XXXX, cash the pending applications. the base will significant million. applications projected rate of X% to forecast we incremental XXXX be flow years. a to and to $X.X provides adjustments to a X% reflect from XXXX already decision Overall, assets. XXXX. that accounts. expects is these rate XXXX spending in fine-tuned to approved to of related About recovered reduction to and mitigation estimates of collect regulatory accounts of result results next amounts and XX and rates rate these This of XXXX Page on XXXX. related major few approved following GRC for an billion result to several end over growth balance in related update recovery to in of in these updates now $XXX over will the half base SCE the SCE

collect middle the of applications of $XXX pending timely the expects by the X regulatory shown XXXX. in the another assuming decisions, SCE For end to slide, million

XXXX. decision mitigation This second securitize Lastly, to SCE capital securitizations the to utility AB $XXX allow recently expenditures. will million will year XXXX received with of the or balance regulatory The a we along capital recovery final QX rate in expects of wildfire securitization sheet securitization to expected our pay The securitizations, its metrics. in application. expenditures. strengthen show of SCE remaining the QX SCE assets the allow short-term and this complete credit other of down debt and

Turning to Page XX.

through scoping of for capital XX.XX% SCE quarter, an is file requesting the to the been by mechanism. schedule. step August, from its is to paused When in XXXX cost to establish the commission trigger ROE CPUC filed $XX mechanism. to SCE other Last reset resets filed cost cost with and information of here a that request filings utility's any cost filings. of will to rates XXXX that about reduce would of During the million issue provided its XXXX. the rates directed an to preferred XX.X% have financing, its capital capital request the the would in and and SCE and cost other preferred reset normally issues of SCE next in The which customer would ROE was The of CPUC maintain related it outline the those and week, unchanged. memo the debt alternative customer keep debt at procedural application by

modeling show Pages guidance. XX to guidance XXXX and our considerations the XXXX. and XX Turning for preliminary

the mentioned $X.XX to to Pedro narrowing As earlier, XXXX range $X.XX. we are EPS guidance

plan Turning for plan quarter which average XXXX depend annual new utility-owned earlier. next more equity as million of considerably XXXX on and XXXX. call. XXXX. to specifics program high opportunity to through provide to level is $XXX well fund fourth We will year end XXXX accelerates content securities XX. of through the the The the billion guidance in we the the overall above on million, the the be annually spending capital The for financing need this previously into earnings provide our when an the of of $XXX content will XXXX EPS the range significant that will $XXX we growth, -- of range capital To within need disclosed increases period XXXX from equity timing Page and equity capital investment The $X on noted the of million year. spending storage of amounts of specific see up investment

and gives require the Agreement to of XXXX the wildfire comment Additionally, levels financing the XXXX estimate above SED reiterate and potential associated losses me with in enhance SCE risk-reducing These the events mitigation not seen role Pedro's let indicative resiliency. This important well mudslide best can update storage I equity in ongoing and do for safety and our that our energy concludes billion with of utility-owned want to plan to longer-term issue equity support to in needs reiterating Consistent That associated that as closing, investment with confidence investments up are underscore XXXX. securities In to investment-grade disclosure, through XXXX plays of customer to EPS X% and content the reliability. my in XXXX opportunity and the remarks. X% meeting announced growth plan. ensuring $X near-term of be we with in objectives clean the rate to us previously our as wildfire prior rating. long-term

for the Instructions] Michelle, [Operator please open call questions.

Jeremy from Tonet [Operator Instructions] JPMorgan.

First question here.

on Just those when process you remaining does here? recovery impact enforcement division And settlement at agreement claims, for be file to the how able have you if safety would do the for updated all? thoughts any then wondering,

Yes.

me any both those. let the don't Agreement that heard didn't will SED say, like. take any So have of will ourselves the settlement We me the you have -- admit SED importantly, And activity. impact of settlement we on there or see of really imprudence claims

on our the each timing before events we separately in portion PUC to need would through the cost of We timing. think as to events. of a it's substantial prior I the Thomas and be potentially go and we but could to we I've in just handicap get the able need to of in work one difficult uncertain calls, be for because file each continues Woolsey, with way terms In really of claims to bulk and really said on to Koenigstein track get the of the that through recovery claims

way something handicap complete claims Now mentioned, our we’ve to process. I good of to that as difficult progress. we’ve like but will when exactly worked XX% it’s made the And

to Got little investment it. wanted about That’s here, helpful. lot And talk then pivot potential. of and bit I just a a resiliency

could what I the wondering for, could guess, thoughts total Just resiliency for updated investments? opportunity look set you on capital if and investments provide,

like is back we point you say supportive and that to rate project would painted. the view the I that provided, range that forecast elements of we the announced X-year storage that just we base Yes.

you So growth into that heard we coming or X% of when reaffirm EPS EPS growth from view that. translated to us earnings X%

opportunity Maria, just within up and can would The sooner falling we that shows set project help us step so It's view will you called more steps a ability last on like of be be you can But that that and in with sometimes than that one ends or state I storage the see they see pop and being we needs range continue that think been. you its say the anything in falling to would with the like say And sometimes indication reliability we differently large to that a couple that quickly we have would within opportunities take range. just summers might next in case up weather, take project. with one a there? action meaningful resiliency to summer you the storage would the quantum these extreme the that provided.

in that No, know that we of those the mitigation. the waterfront wildfire we resiliency think get the those we perspective going investments. emissions because have think electrification sorts to reductions. about -- from think we from to of resiliency storage, pursue We additional We're I building to about of GHG we Jeremy, covered range, perspective have

that for forecast we've that full think you. is the I range So capital laid in covered out

Shar Guggenheim Partners. is caller next with Our Pourreza

Just maybe to today's just -- bridging needs. your equity disclosures

strong enough for impact Pedro, the paying timing if the seeking you not new $X of recovery 'XX, of prudence and for is out that to wildfire So current seek liability that. does of about that ahead recovery? billion, CPUC of for aggregate settle by equity of the with the kind The claims estimates reiterated plan on equity? -- why X.X% agreement the now And of the the feel portion just related, up going i.e.,

Yes.

number SED There's your ultimately go when has and on uncertainty to there's again in equity you terms me in how into refer as Maria well and investigations. those piece. here. The view can will of CPUC question processes, last I do claims, but the is facts. a then fill always one take put recognize We the the powers Let settlement I -- first, uncertainty to do responsibility way a we a more to to my agree uncertainty thing a the the remarks it we And prepared we thoughtful And -- was that believe us. prudent us process that. to don't therefore here. behind with as there's mentioned, for of feel a do that

And really of itself why our see And for settlement. opportunity work the the prudently with don't now were so incurred go that's the presented than an here. $XXX to We you in recovery pieces makeup ability cost with SED. million expenses to see for other seek set that the the interfering aside that

the lot frankly so a And have the it's we sometimes right maybe of something and there's understanding that it's to do rational kind not do all us. agreed with of about might to uncertainty and Maria, thing again, case, you that piece? in uncertainty in by put do behind different we overall that take SED, settlement But this constructively the can with circumstances. and entering equity the working

Sure.

a before the securities. And about have framework that company. talked FFO was we issue XX% to billion need up XX% really content support plan equity and at of Shar, our to to that $X debt So to the bunch we to the XXXX financing

approach XXXX At And that issuing objective. or equity same we $X in SCE the that time, content debt to we've the how And reserve we our securities. issue think in framework so the overall content additional financing as change been we does equity pretty measured equity supports billion assess payments. claims make that, in still level,

think they EIX their claim. At cash plan you about lines they they in level, basically to same and flow make support level, metrics sort pay of that pacing if issue as financing SCE the debt plan So financing payments. the are that's the SCE's to is then of the claims tied along when the when

we have conditions you we've the market amount think financing the to evaluate continue to get we equity the already requirement billion balance $X.XX certain we'll a of I year, the undertake think of about done content, that preferred and as of equity for program. this when that

expectations growth of and flat And for just sort the it. a on in CapEx versus rate Any XX%. with the thoughts staying is just then in from that Got end spending to the case What CapEx like slide? lastly color base under like the step-up on on Slide X There's XX% significant me, on included incremental range reliability what on programs in that from of covered the ‘XX? is top XX%. storage GRC

tiny end, we cut at out I the And I just at for got question, me, Shar. Sure. a but bit least your think

as in time, have obviously, have move -- you So front end, the decision. GRC the authorized we out we XXXX in

storage. harking to the utility Now on back

that yet authorization a things have near things for us. I But capital 'XX, case happen can and out haven't the You even a is in XXXX gotten term 'XX increase One, going your think are year we to in you expenditure move opportunities. as on. there few rate this that cycle

a in and we lot wildfire do can embedded attrition mechanism XXXX that and approaches like look are some there budget 'XX mitigation. know we So it that's 'XX, might the use for while based

and focused that be that on range. we'll So the can expand

beyond a out new that, look you is If rate case cycle. XXXX actually

start see you get replacement to in and the range that back infrastructure things could mitigation, back end. we as that so like, ongoing more to drive potentially wildfire but wider And the like the

there are potentially In opportunities file addition, to case rate of outside the proceedings. applications general

those gas move And transmission, XXXX mentioned around all earlier building things things the around that around reductions greenhouse or areas transportational or are are emissions and range there up more that on energy I think storage electrification the path education the or down. so things -- all Pedro to

is Our Steve Fleishman next Wolfe. caller with

a explain assume and guess, best it’s possible, happen has not this couple as went going in why I more? terms you should Just, we number of as happened the why could reserve wildfire the claims, the up and of for times to maybe

the worth I band hope to the settle bit we uncertainty put, Simply Thanks, the do, a it down through, prepared go continues more think Steve. it's we claims I that, we Yes. learn. settlements more And would doubling remarks, that narrow. but And covered more in we on. the

process mentioned, I XX% around exposure. we the As now of

in are pipe, cetera, did there of for that waiting whether see need got to might enough the adjustment. uncertainty in we more right, to would was we under detail the appropriate new call we best to is claims do, need quarterly was say things that down make the We right the are testing GAAP -- information specific that thing do been new the estimate. to yet end, reserves. as this to this have we're pieces not terms that At do we reserve estimate. higher in would find of quarter, thing to change providing to hand et had our so There we as I the information, quarter again. best of disclosures, And you around the the prior a that

that this. do want a would litigation behind provide goes continue we free. feel as Adam time to I to to and things more but up probably would Steve. come and active we about be differently great Maria, anything we what as the find than us, might sharpen. here, volume I hope of on, That's You get can more that will again, best that the lower But challenging that if I Umanoff, end picture And on given say have going you more the on, do. chapter the legal that verse perspective, line drove from or it, if could on that's realize you

Okay.

up. No, I covered Pedro, you think,

so And the portion. settlement just on SED related a question

million. to So seek on $XXX one hand, you agreed the not

a might imply plan. the is of lot hand, the of obviously in your On recovery theoretically, this, not assumed of other that, that would seek which you cost other

recovery and for negative, the you is possible though that even of portion seek potential it? on have these still surface to like it is read So this a a of costs that some claim seems to

that along in saying consistent prudently seek is our Pretty recovery for plan to all incurred expectation costs. Yes.

-- removing of $XXX striking negligence. right we But to the cost investigations. because imprudence, I seek agreed set and which see every importantly, settlement as aside to go admitting earlier, purposes can't to the tell complete uncertainty, we'll this for I We're we precise said and not not figure preserving that continue For million. today admitting need to we're recovery you recovery. to we're

fire we believe or true said our they're some I quarters. still don't held equipment in not, prior still hands still because have it's being by it on think I I pieces agencies. this of that Believe

just as expect are to the -- certainly, arguments for so strong to a and be recovery our of recovery But believe we to And number we expectation process. where that seek and there table, everything able bring part of seek we that we'd the bring that's is -- should for.

prior the facts. Now confidence are to that the events, of since precedent assumption show the is say, the of, and in that XXXX seeing we've up under time XXXX that of that reserves you to of set frame to really see these of Diego GAAP, same that XXXX the recovery. recovery, and Electric reason Gas AB the adjusting President we're you're not assume and San FERC able CPUC the assume it, recovery exists continued only CPUC include I'll That's the level case is to any for not from

based plan our it the and think, facts on determination also in San case. to case. recovery in understood said we case. will I we we’ve consistent sense appropriate would CPUC’s can't our We’ve that, we but Electric to San to before the believe facts. that from CPUC seen so on Gas that the the be that with the the Diego And And to assume precedent, make points We Diego be what based

that XXXX a along ability have those our believe a prior do to the AB we facts cost while have case reasonable believe we’ll make go we recovery us of based So the to to XXXX strengthening and on we AB even for provides just facts, here. framework,

Citi. Ryan Levine from

of I to portfolio raise these the guess, for asset quarter, it other any the help to from similar offset for looked use cash about the million some opportunities XX in there equity of asset about transmission received years. of the capital Are Morongo $XXX during like needs?

was commercial. Ryan, Yes, many years. And when it part that the was has it’s so Maria. actual trigger transaction of many, and for became for the completed that project been project

I owns, in the So did of $XXX that and to available to happen customer SCE that bit terms us assets The basically, little was think assets sell overall about. talking the things in the you’re a that booked summer. isn’t just before so we’ve over portfolio. -- and talked this they’re genesis sense a the million, We that of opportunity really right, about really you’re the of it bunch

time, estate really portfolio. in people to like, real but time not from – opportunity have an this the about think I there’s asked and the

then increased material, drive process? TKM pace, and for at the outlook the the And settlement prepared which referenced Woolsey was in in from the for here current the it helped process increased estimate. What’s pace settlement the from

just really us to will I that’s when work But be think what earlier, touched on we substantially diligently with hard I Ryan, on We for it. it’s to this. right? really continue forecast complete Well,

in the of news a there’s our the month what handicap in through to mentioned place cases way good time. There’s every ultimate we’ve processes really means just and cases, calls. Koenigstein these in Thomas, is of are to So volume these allowing difficult good both but work for us Woolsey structure that prior this -- terms

the cover you you conductor mile in Okay. per as to plan, And then implement are improvement any plan one, last noticing the as continue the cost is implementing?

I been cost mile. haven’t -- decreases around seen think haven’t seen it’s but we either. big pretty I the we mean constant we’ve increases, per

I think may initial estimates. actually when pretty be it spot we on got an we

Our next caller is Lapides from Sachs. Goldman Michael

a question, covered you which did conductors. macro little is as a the GRC bit proposing of in Just your

anything north in the is proposing of kind different the out haven’t Your SED more program. of seen while. neighbor undergrounding a I material to

help terms prevention. Florida has with kind of for what and more strategy develops think in you is Illinois of hardening kind pace like multi-decade the a to with time the distribution kind multiyear broader investment, the legislation similar Just wildfire recovery through a of to curious, there do the storm state think maybe line, of cost what where need formal mitigation doing the has things and piece a of both gas state for follow-on of or

interesting an Michael. Yes. question, That’s

to who So by I’ll set already, for that. utilities for conversation has information actually plan plan up the the comparing ultimately, processes. framework item state advising give with of the consultant place line enhanced fires the -- governor’s by we budget office. the I directly process. should updated speaking, peers that the and that utilities. It OAIS, you an with mitigation addition it’s that framework my frankly reviewed interfacing be ratification as and do, wildfire become because a I actually year GRC or whole good outside working the notes about XXXX the CPUC quick the provided legislation for reaction view in many where the other work in say And included AB we in is I ways, a it’s this venue our in using right, of But ramp think feeds are what then into prevent wildfire utilities addition tools further the they ideas don’t and new to which to mitigation bringing that, ultimately, need is

The that’s all the The is reality miles. the But utilities that other I reaction, Michael, XX,XXX looks has is my it that’s from outside, this reason of like California, WMP in framework. something different mean is fairly that territories. have square the important each PG&E right? it’s

more the PG&E lot risk look I even have heavily a calls, the that’s you more area We have this geography a XX,XXX, in includes prior if and for territory ourselves, territory. at forested. PG&E, high-fire versus But Santiago territory smaller has mentioned

we the see not throughout probability the from they for could from so well the In -- management trees it’s high objects, flowing fire zone. into them, a forest, context example, lines. with case, from Edison lines, [indiscernible] of trees outside they into discussions it’s Grasslands. Edison’s ignition lot the emission zone, our There’s falling higher area probability for ignition be of And stuff vegetation the them, it, from understand of for a area streaming much those as higher Chaparral, risk much is of

as risk math. for think versus the run same the incremental math PG&E we adding bit the using or conductor all that understanding case, benefit an cost. drives see insight the at trees cover values we equation covered in of lot look In all-in falling different, I cost the a much but helps undergrounding And that benefit our is variables significant so of And as undergrounding. we’re other -- are And conductor that little reduction generally, give right? the into they analysis a variable of from why so provides my the lower tools, for

That’s not have replace also since a we SCE’s a already territory different so out have handout. lot to the only the In needs. program takes cost right? pole of we that conductor don’t out a means another through on line a installations, long-winded. wires, territories, addition, pole-loading replacements, need is our bottom to had that increment might that that we The and replace that that go little And utility if but covered replace fairly have led different post in that they pole, to gone the

We’re comparing notes.

scope we connected, us. for but have results I are and results think to miles learn potentially to And to stick could right? that fundamental the underground equation the values to different see more of used see extent and concepts, different to leading staying needs for seen coming you we PG&E more the continuous But in we’re each undergrounding Edison. to for

Maria? So there. we Yes, certainly continue to learn

more just macro sort it of about you’re thing a since perspective. asking one And Michael, from

the really and things already would addresses and home might long-term that keep legislation land that going have in those forest do Woolsey development things the been really addressed help to are a this in and management we that’s to be management definitely hardening be because to on to mitigation an legislation utilities have to support While issue. addressed want we additional something eye like and are if

Jonathan Vertical Research. Arnold from

make best $XXX the Is Is in the best, That's increase of that now estimate. correct? to Just these I on understand that's numbers the this million part sure accrual settlement. in the correctly.

Yes.

that’s million, $XXX that undertake, payment mitigation fund, million is So there’s there components recovery. $XXX general of to there are and $XX $XXX there’s foregone million X the of we’ll activity the Jonathan, million to that

is that about think part – should I So

$XXX against the – part taken has of million, overall already hadn’t we a events asset of taken XXXX. the cost that and because we regulatory XXXX been Because our haven’t of

of it. part best effectively, of that’s estimate the So $X.X billion all

all of Yes, it.

part of Is the the $X.X not it between the a unresolved billion of But it's from considered resolved. and perspective billion? difference all like $X.X

that all it's -- the billion. terms $X.X in Well, number, in

have general we to have around obviously, which flows, different and frames have we mitigation cash payments investments. to time make we the in fund, of make terms In the

So yet. haven't gone those cash flows

cash flow. I think your the question is

question will that billion XXX be going effectively the at CPUC will longer And now settlement, no $X.X expected or the losses remaining is, my resolved approves because if the down unpacked? by of least

make go No. or payments general or mitigation The as fund for to payment we remaining cash down actual billion will the $X.X settlement payments.

Okay.

So that's still –

That's for future, yes. the

So be as clear, just the unresolved. is resolved, SED viewed to really not

viewed resolved. It’s as

Okay. Pending approval.

I approval, think the $X.X for but purposes pending versus $X.X Obviously, it’s billion. of billion

- fact America. about Dumoulin that of moving the Thank you. Julien just the here. Q from Bank crystal and here to can equity we're Smith want sure I pieces clear here, make Dumoulin just needs Julien I the Smith review If

'XX plan remarks, specifically not And then leave out 'XX. together and the that So incremental require fine fits kept piece in ended. called considering the does 'XX equity to also just equity. considering it the from understand financing to I'll you how incremental -- I intact you well, want open the

quickly? that Just can you rehash

measured that securities our equity cash envision to really I to up did the additional and taken and the $X financing of and you the we've approach Julien, And in know we plan, XXXX think, And Absolutely. billion issuing been content. like. that Sure. watching we've we've flows that been content and in equity equity

announced consistent objective as even metrics as so changing already about our we assess change with that of we the to the with in the improving looking we reserve and on had at over that credit XXXX it's and reserve with And the the thought level still level, XX%. think we plan, XX% were focus what time

that equity related the XXXX next discuss over really when that utility. sort year the of equity in X years to through to needs thinking were we about we've relates next how the of to growth the the we'll Now call, discussed and get more detail QX for the that we

And how so that on think back bit ties let's little a together.

extent, And terms about X% in we're year, still the We that needed X%. to to So period, laid CAGR EPS of EPS a through we million out over was varying equity based that capital to $XXX that about some previously, we the talked in 'XX up needs the of believe is when that, that we talked in. the firmly on that range total CAGR, year. XXXX

CapEx would some rebalance capital of to take which look metrics. XXXX, in we equity to the with in to over turned on we top later got the basically our again customer $XXX million needs As reliability that's response in otherwise up period, while obviously and of robust and that's state XXXX. in some of and an needs more that's And that back want that have years already support plan, we've

strike. balance kind the of always to that that's So trying we're

the how next as and I are year think need those so then the And about of we year. thought plan for the them through for we develop pieces and balance the equity how of this

And was call Sam Ramraj. sir. last Mr. that the Thank back question. the now will turn over I to you,

Well, thank you for joining us. This the call. conference concludes

stay have the good rest day of safe, everyone. and So a

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conference you. call. Thank concludes today's This

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