Edison International (EIX) 25 Feb 222021 Q4 Earnings call transcript

Good afternoon, and welcome to the Edison International Fourth Quarter 2021 Financial Teleconference. My name is Missy, and I'll 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, Missy, 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-K, 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 X will limit please X the question-and-answer over now question turn Pedro. session, I to During yourself

call year reported was you, Sam. a exceeded quarter’s Today, provided higher earnings Well, had which thank of than we ago. Edison core and for we share last on XXXX, International $X.XX $X.XX per the range guidance

today, tremendous that Maria key to highlight clean the our reduction. the our are risk, X EPS support of EPS want that results performance reducing next of XXXX will X few our energy growth for goals. will return the our introducing EIX of then XXXX. state’s underpin in is potential underway address us to themes and shares. my outlook. by to what In recent substantial in in financial our capital X% and and are double-digit I range longer-term with confidence years through discuss further over progress to achieved total comments risk and reiterating We I opportunities wildfire years $X.XX $X.XX and the high SCE to confidence guidance we gives target start I want increased the transformation investment

cumulative shareholder discuss will of with drought conditions that season greater I intensifying present employees, value to over say in I that the several the pleased and fire practices shown XXXX another illustrates yield, our this initiatives, catastrophic presentation. operational our today mitigation year to Lastly, state. the enable our and utility these years, the return government and that's with wildfire severe is associated SCE’s We despite and ongoing in wildfire us am without last marks the that the dividend combined and culture and merited mitigation effect price-to-earnings season on reduction total we SCE’s efforts. wildfire state’s even customers, will wildfire stakeholders. believe X excellence for by infrastructure. consecutive potential factoring the of before All believe and a is an Page This as increase investments extremely third the deliver other wildfire attractive SCE’s multiple investors, risk

conductor its effective cases utility the the measures update, XXXX, strong wildfire of wildfire is and SCE reduce wildfire In many of continued plan in to service risks its area. plan mitigation reiterated most mitigation one and execution PSPS During program its in XXXX exceeded covered its goals. that

catastrophic over capital risk areas in conductor the Reducing confidence company for will As contribute require factors. factors top this to based that the undergrounding for Page covered a Further through this last note probability we track next wildfire shown investment, additional XXXX. increase XX year levels, for is unique and the the is significant mitigation, estimates the losses an X and GRC evaluating program. SCE reduced to mitigation reported has June December including please including from potential XX% XX% several from pre-XXXX XX% remain through mitigation certain on by the Overall, work to billion $X.X priority the of of period. years its our two wildfire enhanced X, that will work on in through to SCE relative previously

Starting set previously FIRE’s of and grid X, account to page with This risk state the to this aircraft, year. with on budget to and threat in investments, grid for of than It resilient its of transition like accelerate higher of $X.X Wildfire are take economywide CAL in would utilities, against forest the edge further at The prevention the through just programs transportation additional fire programs International On largest of fleet on be lays largest California reliable is clean as investor-owned of X, does Slide the proposed today continued Edison shown adoption. has Biden headcount I X,XXX aerial also Forest electrification, plan country, $X.X bolster budget in As leadership and to five the trend Through the electrification. leading more also already highlight to to Administration’s billion would increasingly Edison increased thought federal weather the the the investments were U.S. lands largest and into energy significant of this that to the add governor’s International and deploying improvements by and made extreme wildfire to Resilience includes aerial one for federal not foundation forest with the Strategy across transition. strongest hardening CAL pleased FIRE’s SCE necessary fleet SCE’s one metric The ago. owned civil vehicle electrification funding utilities for Protecting date the fire government. the see the billion profiles the risk of have resources encouraging the also multibillion expects in the than is continues has the prevention. We XX SCE reduction miles continued progress. XX% in industry. reduce among and to the years covered the date suppression XX% investment, approved an levels West, including world. and state support and firefighting to dollar prevention leading SCE electric California aircraft, conductor health

California’s is XXXX. a SCE December, billion adoption least amount has in and to where adoption proposal been estimate of and X complement million jumpstart of widespread to climate accelerate fact, EV meet hours is area The in XX governor’s in consumption X the electrification decarbonization. this addition month, megawatt $XXX a goals budget to to to buildings, are date. we could climate SCE’s area. SCE’s Governor another to proposed Building building program reduce California add In the to electric economy EVs goals. million Newsom’s be the opportunity by U.S. help registered and SCE’s will of last customers plan gas achieving critical over almost made is by progress $X emissions then heat the California’s pumps critical welcome incremental it's electricity greenhouse service of a Last proposed and in meaningful

will reliability the future storage be to of energy grid. an ensure part Additionally, an of important electric-led

all projects, The processes for in supports engaged will to d fully processes work California state’s plan which those see ISO released In to the growth will are investments on as climate and to project SCE proceedings, investment CPUC for January, goals. into real the billion regulatory need GRC previously, We transmission Independent and estimates base consistent is team. to potential To this service storage. it's to identified In $XX investment focused achieve needed and its $X of projects ensure approved XXX track generally ideas achieve California CAISO lines, XXXX first ahead and our XXXX transmission has forth we conceptual the $XX in the customers. all greater long-term transmission as will on As existing projects the GRC, focus the beyond SCE we the affordable XXXX. the operational by of be SCE late grid this estimates service includes and the investment is and System is lie investment investing team is billion goals, state’s ever remain XX-year construct transmission area, already billion of this that be programs to long-term megawatts highlighted our value upcoming approximately the near-term the the transmission they XXXX is in Operator visibility advance track imperative utility’s all possible X continued including provide transition over that help to turn CAISO’s over The XXXX. bringing as August. These to meet and SCE excellence a will ambitious for be of help the Pathway set upgrades with in investments clean is by XXXX electrify billion the going our climate absolutely goals. Pathway through that of on-track Analysis. be maximize energy going rate needed outlook, vision CAISO in economy into to the constant which SCE’s XXXX $X SCE’s Underpinning that table continued to outlook substantial new utility-owned that CAISO-wide. make that

digital cost manage some its largely reduce that and across rising rate has California's Last SCE’s now, with improvement along absorb investor-owned company grown line and launched excellence, new last late systems employee-led to power operational cost-reduction deployed in highlight customers. act further the utilities. grid’s cost program the among decade large SCE data of broader local to recent inflation excellence and utility which XX allowed affordability management maintenance, our the customers, to years, focus capabilities gather serve and over operational a than over to years resulted For and customer pursued inspection SCE the on system This to its focus to these on average average in tools strengthen enriched advanced enhanced proactively investments has continuous the efforts new and year, is and with for To operational the wildfire on want feedback. by improved rate year. risk reliability. has the lowest to and I improvement less SCE’s we capabilities been an last quality, abilities has

provided ideas going are thousands they been wonderful have on impact of have on enthusiastically quality. that employees measurable affordability, to and believe we real, safety, and positive, Our

implement this value results that, our program I'll SCE more We greater to in all turn the expect about the of other report. I'm over employees, and ideas years for financial our will stakeholders. her enable two you it for the With will Maria for of telling over future. delivering for customers, for our next that the looking forward investors, to

cover $X.XX, was SCE’s November will claims. a for EPS At GRC of XXXX other the at capital increased quarter The EPS due today the due benefits XXXX higher miscellaneous fourth Thanks, comments of $X.XX rate quarter loss by guidance, higher due was financing and core debt base from updates than the share X, which financing primarily revenue Net core the exceeded were final items. year-over-year primarily equity XXXX per right-hand XXXX key in we tax and results, and and settlement to income is drivers costs. fourth International forecasts, XXXX throughout our due reported finance higher range. fourth of to our the offset see issued Pedro, Edison in to This Core quarter. share afternoon, audits, issued wildfire-related higher Parent year Full of topics. California EPS fourth on per our and from quarter good primarily everyone. higher and O&M to My the expenditure in earnings can preferred to on was the On increase of O&M the parent guidance partially side. tax XXXX. core EIX on the you decision costs $X.XX financial net Other and expenses XXXX. resolution March dividends Page variety

capital and expenditure base forecasts. to Now let’s SCE’s rate move

driven in safety SCE X, highest investments investment and to our by we shown see Page reliability support significant history, includes opportunities which In level project of in storage grid. As billion reliability. XXXX, on in expenditure spending we the summer capital at to utility-owned the capital XXXX SCE’s continue the $X

base forecast X% to projected growth XXXX. As shown in rate capital our of X, from X% Page on XXXX to results

last circumstances SCE’s into warrant programs capital confident are is mechanism a cost infrastructure wildfire cost opening extraordinary and electrification. from driven cost of XXXX. whether Page of should update recently which this set left its the CPUC’s to departure capital on and proceeding. by separates over We investment mitigation, the the years testimony, cost of of if the extraordinary so, SCE in for that issues: circumstances two and accelerate reiterating continued XXXX departure capital a provides recommending of submitted an scoping that in capital cost replacement, how from be mechanism mechanism, components range, capital warrant the memo the to The of unchanged. the XXXX XX couple

the consideration in proceeding. earnings address I Our guidance this outcomes the on position wide when based of potential of I guidance. earnings and XXXX is this our discuss in range will

Additionally, directed their requests in XXXX cost scheduled ruled time, which the limited XXXX that of is of the to CPUC for regularly is and this this capital proceeding file utilities year. at to April through XXXX the

utility and XXXX SCE resolved make estimate of CPUC the the recovery Events. progress XX, SCE eligible seek and of solid plaintiff to XX% total will best total, approximately continues losses. appropriate time, the of Wildfire Turning and across individual settling costs. has In to claims prudently-incurred XXXX the Mudslide At Page

As is its a is with ratemaking payments reminder, debt claims SCE that structure. funding outside capital

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

range to To $X.XX let’s $X.XX. We of we forecast a at base start EPS, EPS which $X.XX. components, rate XXXX the with are initiating guidance address

capital for status any the in better point rest cost After the in EPS. proceeding, XX.X%. of of will in and are understand provide update ROE the Given year. sensitivity, the results final in a change XX-basis current of on ROE of to ROE CPUC, guidance a our guidance change the outlook a help incorporate To basing X-cent on the you an we the SCE’s from we decision receiving changes

preferred be contribution Let’s earnings. next related net currently cost our to of the reflected equity ROE, includes XX will to with discuss rate capital authorized addressed add at that proceeding. share. XX currently of This and approach SCE per operational variances, which are XX This of XXXX base of a cents debt with to authorized is in costs costs forecasted guidance. the the preferred in Consistent and debt cents

as As recur aren’t as not from large Prior seen benefitted we we years expected, expected the that remaining have to are going the past. variances forward. items in

year. Parent XX preferred increase of billion cents primarily a year-over-year total to equity issued EIX share. we expect Other, full expense expense driven XX per by and of is dividend of from year For a $X The last the

debt The this Lastly, authorized. the per costs share interest of payments. is wildfire we fund SCE have issued XX from cents in excluded primary on to claims category expense increase

the As debt I to full parent on have we previously during the provide debt communicated, interest SCE settlements. will fund now financing company’s issued a to plus throughout plan. XXXX year of like interest additional issued on XXXX XXXX would

of $XXX to page million total to equity needs financing of billion, project we we Turning $X.X XX, the $XXX discussed. previously content including

storage amount from $X that into investment this securities of issue million annual average XXXX, to year. owned In expect than to continue XXXX. $XXX with accelerated utility We of the equity up of content an to SCE’s because billion is through XXXX average higher was

the expected does this increase over total not period. the However,

refinance million debt new of parent $XXX with to the issuances. debt expect we maturing Additionally,

in Page would approximately to X% Turning XX, confident $X.XX $X.XX per to result reiterating EPS XXXX XXXX. to we CAGR share. XXXX our of are earnings from This in X% to

have provided for EPS We range. clarity considerations confidence give in modeling achieving our behind this to XXXX

strong growth increases XXXX parent table wildfire at on in fund by to driven payments. base offsets be earnings, you in in the rate and can the expect costs right, from EPS As claims costs with we see to the SCE’s financing

will foundation the Our That and Thank at energy growth is climate investment for create you. my SCE underpinned opportunities strong transition. remarks. clean capital a concludes by that earnings the adaptation

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

from Jeremy from Tonet comes JPMorgan. question first Our Instructions] [Operator

Maybe Sunderland, with for off actually the Jeremy. It's guidance starting drivers. Rich on

likely cost give guess, outlined rate You not put to of benefits, cost just alone. payers? any thoughts portion to of that more be mean capital to you're $X.XX clear back the simply want the have outcome Just steady-state you Does Or I financing a capital? that component in of helpful. high-level kind after of be would XXXX of that there on expecting

the Thanks question. Sure. for

of to base current our the the we cost is on it developed So way guidance capital.

of the the actually 'XX basically that of trigger At proceeding. be the proceeding, was there cycle. be sometime proceeding if closely be et cost cetera, and In of mechanism is, of we're to We carryover, would should an of be capital? middle know the will signed One So a extraordinary address in thereafter. this then by and event? end all through the the which normal there And really the in the a end done there the then of defined XXXX we're was, commissions that the continue having itself, a middle of no can how questions that that March, ruling point, considered. decision hearings,

the just the we're capital, So are might you to we is really from it that what current earnings developing lay extent basis. on of be there for year. from what the really impacts for doing out that To changes the just wanted cost

we've parts. ROE and separated cost course updated another we where sensitivity and then we the in no continuum of something understand to see trigger that we and get And can the that an is provide the to or resetting debt we we guidance. sort and sensitivity. would a year, of we impact so stand, And can of there outcome into the be stand preferred way is we all be at where as the could else get what really as look through embedded wide X the middle. can take be, And outcomes. It of the One because the one proceeding over

underground speak more or cost the targeting parse is dollar activity high your Could separately, per and you that a basis. and ranges color. it. reduction just maybe to, Got helpful of representative of maybe low of your a the range mile that system? across That's on then cost And end

been I prior what been Rich, So on that's the have experience. think showed we based -- numbers

Powell, over at turn Steve CEO color give there. to the more me Let SCE, to

Yes, hit the also showing of over where scale. mitigation last right. it numbers it's Pedro, costs experience represented based you Those that we're our at in wild are number The certainly years, and things doing on we're aren't fire plan. our

over undergrounding to or in are We number it's single of years, up doing digits the XX miles. the last

looking were would As to $X.X reduction, as looking a were as undergrounding -- scale, numbers egress we mile. I analyze the thresholds show undergrounding, over are there, we a consider especially least that million and at the In average and in of opportunities we of do the at at of and we're evaluating and is years our undergrounding for wins we look risk per at be we're do look if our broader it if a specific expect we'll location, frequency little at a few potential we that, out. miles hundreds to the what factors plan, would probably cost. PSPS fires also

So selecting lower that we'd but side. risk on ones be the it's be really cost, ideally driven would

see bring have could that can looking. cost figure the you costs those to more much backwards targeted we is out how effectively. places them still we band where to work So volumes in larger do We down doing and manage

looking mentioned Rich, it's at Steve important thousands And miles. thing really that one hundreds, there potentially has of not but that we're is

really terrain the where a are We we it's looking undergrounding geography, probably again, choice at just the continue some from have, of so choice hundreds, the basis. specific and it's the thousands. covered territory most not conductor to the that mirror be there factors, it's risk mitigation see for and But applications right for would given our as of

Pourreza Partners. comes from with Our next Guggenheim question Shar

and terms on you're claims. wildfire for a Appreciate to moving to back today. there discussions of just the resolution to constitutes Is what start incremental It's pace settlement? you're or be actually to seeing seem have up Shar. in the of And close you along reduction being with outstanding Constantine lines, anything pace completion of filings And update claims here of closer in those do the as reasonably terms of you CPUC? maybe sense picking

heard certainly add it's us start forecast Yes. you really with say timing and probably Maria, on hard here. and start I'll before can I'll something Maybe that this. you've to

clearly, you've seen Now by, quarter as each continued goes we've the made. progress

they're uncertainty, uncertainty are but uncertainty the keeps narrowing includes case-specific. uniform. here, certainly, that So still timing. not unique, They're there's and These cases cone

on And so you it's give that says or project insights this. to the hard around pace potential

pretty of of volume might be. In good but completion exposure enough I what that into to can total is think going would define what don't terms really that, I CPUC us expect or mean we substantial have believe the visibility this, to

I for vast a So -- mean given for cases would majority the given the of think that bundle. a

you And seeing the Koenigstein as mean, feet, its so by Woolsey the CPUC. taking and another substantial X matter that, imagine Thomas Woolsey you and of could imagine in bundle. and I cases see we'll standing Separately, completion own the could mudslides to

events. we could of Koenigstein think to whatever cases Maria, or collection you'd logical logical the cases to -- the joint so this don't then 'XX liability. I majority for sense think of what a done have a would all as So Woolsey is, bundle But or 'XX that there? vast of add correct we anything need total and is Thomas, we of need see good collection of

commission, that have just probably types to more when claims think it And the terms the we've clarity it and are as are not the once to Something the addition maybe get loose case to in to there benefits that sure open that, it's what quantum say start. helps of correct. of for fewer and as I we that that is, us to just could forward bring in just ends the what proceeding some does add, I'd settled. of well or

separate of it's bring we have just have last Woolsey start settled, what vast we different doesn't would them weighing to think forward. So the go events there and is a It of And process. a but would person to I majority to Pedro the before think too note that every benefit certainly, have I think facts as are having that we're we set settled forward. we probably and of all said is that important Thomas that

we're your you or non-GRC potential non-GRC And the detail. that risk about tail seen working on you're of plan the appreciate other various magnitude items. of like investments I end and seeing. Certainly. microgrids, as the We've the mitigation that CapEx kind discuss thinking of upsides policy years, CPUC can

implemented all? Just your plan, in at if being curious how that's

give mean, took state level high XXXX, a we around is, range we items opportunities the expansion very number to to once electrification, that we the of at you that answer, which I'll I X% as have a look we storage. in around constructed large X% that mentioned, of the grid,

I years, get And you are until think of then later end transmission starts those the more the important. supportive all as of at upper being range.

things think that set all don't to certainly X% X% that I opportunities range. being this beyond but rather of the that look early of could at here at point, we're to range, So as say we us take supportive a

comes Our Research next from question Jonathan Arnold Partners. Vertical with

to it Just down from picking X.X% -- X.X%. it Pedro. think up Is liabilities, I on the went legacy

the You accrual. overall didn't change

you par to in the $XXX settled X million And quarters. So on assume prior quarter. fair with that's about the

So assume would that much with some change is in X there and wouldn't any X from somewhere between done the now, big be you pretty accrual? this, reason absent quarters I

that the I -- I go answer shared I math is with your think back to right. Constantine

say pace of that terms don't use we've the we experienced, to In precisely. to but want

and specific. Y assume point X quarters cases again, really if you unique now rate. these Because, Jonathan, the therefore, all same from So are of it

can't had. with we're answer. want We're based that pleased history that hard. give extrapolating working don't be progress the We're on you to precise making, timing but the and firm we so I And we've just

Sorry, I a know little unsatisfying. it's

give have should know the anticipate what When that Understand. Well, maybe of. All but 'XX, just you've rate 'XX normal? of try over -- cadence now more control you presumably, I sort would we're guidance? just I right, I'll case that -- be a I we new some something what's normal would timing you the us do in that given your

Yes.

that on what So 'XX trying do give through cycle visibility time. kind on X-year Jonathan, 'XX and is that focus cycle, EPS really, people CAGR that of or overall we're to over

is schedule 'XX. have we'll think 'XX give same I have I past. the guidance we'll we our think, to in annual Today give guidance, same we the the in QX, that give in -- 'XX,

provide have long visibility the think to We started bit how term. into a about little we more

take a when the we've can slides, for to folks chance do piece the that and on But I the same developed use some as of So schedule the you'll look so longer-term at do do see look we you that out to modeling past. get in XXXX to a start that basis. now annual will parts think on they have

Our Angie Storozynski Seaport. from next question comes from

to becomes remaining ready we filing and for same tell just if since one you Slide XX of Woolsey, to expect for one the I XXXX. for Thomas that roughly best can it's roughly XX% that -- percentage wanted sooner? it's Can them the meaning estimates follow-up same Or the and the number or wise us there's that both? just claims that of with XXXX for When outstanding. show still you

for Yes. Thanks, the question. Angie,

reasons. number split have for it of that how We out report a not we in

that, sooner. from So CPUC line that I don't to might extrapolate think which you get can case

bigger Okay. picture And then question. a

conclusion. midst the the analyst you're the your capital of equity, for of stock being an made XXXX understand interesting We've seen the advocates equity the proceeding. consumer an some of I no filings about by is performance points interesting quite cost in So link and which between with cost

you that that, with Just confirm right? disagree

do. I are I least job, I Yes, think. to also, But I growth. finance at mean, issuing my hope equity you guys underpins it so,

affordability actually customer into et your equity cost of that so equity and the cetera. rates, plays And of

that members commission, new So of mean, gone have I through cost good of of the you particularly are I few proceeding. that of the we have this equity. of a -- of capital position ones think existing in a the to demonstrate cost importance the number very

we consumer the of far, the have So position advocate.

give a of anything 'XX there end us at least this reasonable sense of that at the -- you is sense capital cost a proceeding? outcome, that this commission there fairness again, is tell a and reasonable So of us to can -- will up with

of lot that's, an really back cost think similar through think, of I made already on through recently all 'XX really that back. So then haven't to flows XXXX utilities Angie, ruling 'XX. in you'd points to be to it day. in signed through really capital filings at I the to of clear And our just before. mean, go we've That's arguments August question, the the capital really you this made, of is January, in And of opportunity I a our ones and the commissioners how the the a but made proceeding now making file us to Commission's just end the as the customer they going say, And cost see opportunity all made. we you that back reflected for We're that the want underscore been it's and rates for go to opportunity.

a And long what have of the to the ultimately, real equity is, important the the you cost to gives really that signal affordability. cost -- that's really so itself in need proceeding and market but to that's itself the ROE reflective term, around of jurisdiction

all So we points. making those going are of to

of it those the from you and of same end in aren't I rates. appropriate, have of customer filing our like not we And Division ends the get and they routine made all of the discussions come decisions all day, staff appropriately, points make Energy handled there. just think course, costs January. we from this, the they're at the up how probably didn't we'll if in that you this back points proceed with make if did the Even proceeding, where separately many and when we we

from costs seen that need that Maria and of that's think an state maybe and Angie, stems some the work long think years tested, that utilities. healthy utilities Maria, saw government job understands that that. number the in legislation this wildfire the the taking of the more over of I past healthy we addressing that through Well, financially it good framework. right. to customer apparatus got commission we've perspective, And to even cost and need around the more a and We broader ultimately, whole understanding I we've you and do broadly, challenges from But think financially do the now said, run. to broadly, there's for gone even recovery and All like the we the XX-XX passed been minimize an

would cost capital the will And that as go proceeding. so they hope principle top of mind we expect be commissioners and of through for

from comes with Our Sachs. Goldman next Michael question Lapides

guidance. good on Congrats

Just things the When SCE kind in we curious, of the $X.XX excluded out handful but XXXX, that operating thinking $X.XX, from the speaking a out that. of of variance to look guidance. just that years, SCE a are that's also $X.XX costs there the authorized, meaning benefit. to I'm

$X.XX the take You don't -- assume to $X.XX. let's

that interest back clawed point, some assume at of rates? and don't gets its event added that's back kind executive then of that some GRC, of maybe a get regulatory or future future You comp, $X.XX the lot to

Michael, thanks question. for the

And guidance. way things those we when let's authorized. buckets, the excluded to can variances digging have discrete out from X give those variances operational the and XXXX, I and yes, say, in you separate we every the -- So some did, year it. think would same it's just operational it costs then about

You it's terms few you board. the year into well to It capital shareholder that of is be saw like regulatory timing plan called across guidance, be the up a things, of things lot AFUDC, exactly as cost. after really, a a of But out in our what in regulatory proceedings the can proceeding. your can of as asset. 'XX we It have type coming and true different

number. very, and we're detailed very the look So then every with actually a doing year back like coming

visibility time, of have we're next really several the next that's years move happen that And out the -- what things well. will we As into course thinking in about as we in number. over that

actually the Because in on customer. key range case that that higher least from Look, about thing doing that rates work past rate excluded first time, in get in to recovered cycle, terms the haven't a should at reason Same of general over savings number. to push a driven. ultimately lower O&M that's for -- going Also, going not legislatively lot really next to some presuming that going those back said recovered for arguments of we case, the happen. O&M to recovered around is of -- costs think of every we're you're right, rate rates. that to the to that we're with rate But that on go the a flip but it's our When in the very make cases and might so number cost the not authorized. making know we're and we not a things we're how authorized, we in that GRC from the side benefit and is savings. that -- year you XXXX And year the going

right that for as claims it's is would assumptions the we're we're expense making payments, fact not SCE on that, well And of paying go any the payments. interest claims Some those that away. now

we right recover not -- will occur. cost, claims assumption that making we're the make that to would would We but that, now certainly the

it. Got

Okay. one for you. Super then, helpful. Pedro, And

of that it do think it's to Just -- of electrification versus be think really what's a trying way customers, to hydrogen you think don't the to of how it, in about want the going the the discussion a users in decarbonize how of role right larger happens industrial you about about kind but call state. the hyper the state I to battle,

where you're we same, electrify capture, do clean level not the coming there availability to my It's hydrogen be recall that unless hydrogen, all start places but from fuels. the reductions the applications that using -- that, If our you be clean that carbon with to fuels will some low need you across I'll there with electricity we like emissions will great electricity that right? Pathway largest society. hard topic. back from to a of in part out work, point might talk And go But and Yes. XXXX the there we we sense carbon is therefore, the fossil And from a that made so be capture, assume not should about by absolutely of probably using We're be we the will [indiscernible] source right? some also carbon -- will it's need dedicated for that -- assuming which hydrogen. talking that's probably and way, about of

hydrogen, it's down able of about think of cost from excitement production to lot I So with drive electrolysis. being a the

You Hydrogen have DOE, you other a of at have on the that. Earthshot announcements number

in what -- fully tell called applications technical need can are carbon project how can hydrogen Gas the Power the work sit on. issues that of Electric the that? of of here resources these initiative, work? accommodate kind Institute Research do hydrogen. and you and going for the hydrogen. it's I them what digging and low some carbon to the that's Technology joint that metallurgy deep and to the low Institute for you pipelines, backdrop, what's engaged for to you into LCRI, potential So that's How It's you are have And X-year they the your be help these and actually and go We the going much like the that question, think a electric think applications get go about core changes example, to of the don't fuels

be industrial general, to would I heat perhaps think duty, itself probably from more some another the transport heavier application more in processes would that to hydrogen, benefit hydrogen. some of be consuming processes, lend likely would long-haul

it's like those. for particularly light-duty see really a battery I advances vehicles, electricity, making intended better think vehicle, just that you're looking no to because sense it's when such as for much at -- hydrogen, pun continue, hard that applications

competition we on much just to word maybe some electricity need X. you think in pick not to is competition are, it's your the hydrogen little through I to I'm between electrolysis. the to as be clean, bit a definitely see is -- make point the So role. Final quite clean going if coming from the sure to then be going as see sense chances I that used

the can an amounts the be hydrogen deliver in a therefore, into electric to there's what important may power that delivering of so then electric for grid And likely role pipeline. massive electrolysis plants

there's that's the for still I modern we're business grid, and a robust a think in. So role

it's side So as well. we necessary think hydrogen in the

comes with Ryan next Our question Citi. from Levine

What the underway potential transmission ways Edison use? to prepared remarks, of portion of there billion initiatives any does to opportunities? electric $X are have And those potentially the of enable highlighted in today right

a I'm you This answer, going get it translated over needs to It turn Steve plan. a but give projects. to conceptual quick is into Powell. to

as specific -- Steve, So as but me I answer don't or to think question, a that. there's your on specific take

in Yes. lot paths projects general No, cases, a of up. where The Pedro, would end that's conceptual identifying right. plan, is of

this, current of There there, As framework. at of on new based the largely you heavily sort be wouldn't projects for the that utilities, is look identified refusal projects of first the are it that right mix within in followed plans given work plan the those and conceptual as resource done lot a forward. more be move that to but projects are planning of XX-year really be is we into translated upstream processes CAISO's of into to for sort

there. for around can And upgrades most the work important understand and that lot more what more back it opportunity it and now be pathway ways large a customers. a our think if going out how system done at versus is cost-effective really But to think can shown much of be to would So be the opportunity, -- figuring to I I of how it's it's have -- that first just out existing is deliver the through to right matter has looking reinforces that we overall own of new. a be more managed of refusal much

Okay.

independently. is those existing, of procure so that way no to have So you correctly? hearing I right Am

ultimate and on into. depend these paths would the translate It that projects

of those to And will bring right so is but to to them a some some more entail. of be may more ways, our clarity there ultimately work existing close of to lot projects do what

financial, know Ryan. of we don't accessible that upgrades. But And yet, it to be some may

of miles? in addition potential one place And conductor that. in few to question hundred miles earlier. Are clarifying a or there current undergrounding the Appreciate then from cover

Yes.

we're where as we're conductor. looking focused cover So that, places on we at now, haven't installed already the right

of got approximately we've installed. covered So conductor miles X,XXX

do way might evaluation, make we going one undergrounding that be miles forward, As to that need And there's to or hardened be where sense. out look we figure that looking we thousands believe we're more as to another.

is there's the focus those more to installed covered lot on do. conductor, a haven't because now where right currently we of places that need So

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

here. So first, just detail a little

on I elaborate Can COC there you associated cost that that that of about proceeding. -- XXXX capital understand what is? You've diamond got with Just the financing about talks benefits proceeding. a

Just what $X.XX is the there?

Sure, Julien.

the proceeding covers cycle. cost a of typically, So capital X-year

the cost be. will you're what bunch forecast X-year and be of start but at of debt a already of a as estimate you whole debt an a also beginning prep issued, what to that's been X-year make the cycle Certainly, You is that using when of cost that the will cycle.

Over you the that those to cycle, the course see forecast. X-year can from costs start original of diverge

of the to benefit you than less of of actual the sort the that you you beginning embedded tail cycle the get once because it's at your so cycle. anticipated what debt of the the get, is And cost end

right. But of with the amortize bill percentage NEM is sticking ability really, your through kilowatt contemplating you that, hours. are And what factors. if more a sight but to all And then look instance, resolution to going a Got et accelerating just that answered the -- the penetration, can, What cognizant pieces, you especially amongst of just at here, like lot other of that cetera. across line high-level inflation as question of you've just just detailed forecast period? EV I back Excellent. especially then it. I'm curious, as mitigate to is trying for All the here,

I'll thoughts. Yes. you couple give of a

of get bill pressure I think the to would or We any part the the certainly our and bill long rate to see the we there next years firm the more That's of terms estimate as to pressure we path of some run the largest answer. to over wave path in we've do "normal" like. then wildfire don't And of bow out returning few commented mitigation that what work. increases a like call one increases. system see we sort continue that inflation in that look of provided overall First, will look or

remarks, reduce alluded electric from we pressure the vehicles extent the my you a good we of the right? push other part have to, kilowatt But kilowatt on you mentioned hours the just decoupling, just is help electrification, it that bring through adding rate as we -- know, those which in earn kilowatt is because those customers. to of that that on overall hours. all system with XXXX, alone The In I will Julien, is don't And which that will thing. at hours that though, for get answer, more

policymakers more final bill electrify one up, utility and will an grid, some the in the this by consumers like It's to bills, XXXX be put amount that more for move a in power you made, way of themselves will the right? pressure to the go of an here around investments are economy-wide zeroing the by economy net economy. on And because the consistently journey reducing electricity Pathway is to policy the but that electrification maybe get get being of really gasoline that of the time, that more cheapest we're answer electric journey. investments using, is out. journey analysis on using is in our So maybe benefit the their to the coming from space. remind We lot our just broadly, the that to be pressure that's there, customers clean That work to important X same is the offset we'll just carbon. upward part using it for life. And not showed benefit, things At will a there electricity, a not the more and need making

be reducing the gas amount using. natural You'll of that you're

spend less average overall, for terms net way they entire other today. across customer the energy to might cheapest before do get forms they'll we bill XXXX energy your They X. see So spend in the on mentioned remember, we to society more real and electricity, you that's that spending in less than of on X/X

And -- that And long have very bit society total migrate may now X decarbonize. prior increases focused where target, around mean to in other so oral the come approach interrelated. SCE right we climate costs affordability helping you so are believe, we is when the includes that that mitigation adaptation, for conversation bill has inflation and cost need to some affordability net may total GRC see a from the means this narrowly the of last farther so the get which and bill needs your today's He know also across of more the some place to the through the the that's, looking us the but one that in customer putting is cheapest around electric that's a that And there society just the to the that captured on frankly, up climate the also at one thoughtful order a bill. the the Kevin right? benefit bill a economy increase cost recall, the are getting And arguments the all to that's to avoid Payne, little in aftermath One pressure run question, electric above might electric in right? important. all not wildfire catastrophic but cost the aperture think I made than part, now year little CEO, reduction out or I mitigation the that's pointed in I a proceeding. that cost for so went to are, flyer, on whole to

which insurance or do meaningfully offsets place Indeed. you just And in bring conductors, just to to think reduced a that even within customer bills just on from costs the that the you it over doesn't contribute effort given can time? that, covered

to that driving means means of to I deploy pathway covered on our cost customer in continue undergrounding a that continuing operations, focused position as California mean is our itself. possible. right? so lower And cost time, some Yes, experience, possibly on for operational I at lowest our cost, higher, on focused and say Steven We're you better speaks know I being improving work the also and do And for heard higher more they puzzle more relative excellence pieces right? think we've long us set we'll operational all the peers reliability, It how our right? to safety. the continue performance, here, well conductor

new we're not here. a just initiative starting So

big over able again, run types also We needed are being that continuing for as both will the and we a as affordable even as wave last for long to to at to may mitigation or of the above journey the that climate are -- a primary for little investments for years, those contributes do customer. bow look not lead just this at long investment rate data. of maybe somewhat be us above that the all seen adaptation, possible the But given extraordinary we've wildfire of increases inflation. bit couple levels that were well Hopefully, the

one of just today. lower directly one, customer. offset We're Actually, our flow risk one right that benefit, we'll now marketing can because we to seen next insurance costs down, high hope you didn't be see. what O&M, and we of we we some has we and we we on the forecast Julien, so see XXXX specifically like can insurance. think, mitigated were there question the policy I the we're carriers a But the -- will year, thought to that perhaps with we put specific, Certainly, may trajectory our demonstrate plan would through which had see in in realizing we thing is we out our as through back as as see about have move to we for been time quite together to if going capital went when that

the still good thing. we but forecast So that's for is actually, lower And than it's had now, a high.

rate Our about is online XX%.

So we that's buy dollar the insurance. on when $X.XX

just them other not premiums customer next. us losses. to to allow would not year premiums and out-of-pocket customer-funded risk risk companies would that demonstration see we're the we X we're is which there into waiting insurance reduction, but thing be the take of self-insurance, the no were around The also for for as mitigate pursuing if roll doing just Basically, the

try of risk other conductor So efforts. we're to those the things the reduction doing sort parallel some of as cost is in all potentially well to the the of mitigation and covered

Paul Fremont Our next from question Mizuho. with comes

a and to written guess I your wildfire excluded of anything those I look you've my or be when amount assumptions? they that they first certain regulatory are assuming from off recovery assumptions, going of is expenses equity one is, rate assuming at are base that

mean you expenses, say liabilities? you when wildfire the And

yes. Yes,

on here wildfire be that not Yes. those getting we do liabilities. recovery We assume will

filing to what I earlier, I for be reiterate said will want However, recovery. a we

of back the all will and that we incurred ask prudently to we that for recover the allow rates. So in go to costs commission have, us

We built forecast. into have not the that

Okay.

that anything to would assume I be then would that means then, your that So be rate recovered numbers? would upside base

the sure recovery -- would Paul. base, do rate same That be you again, just -- about making talking thing. think wouldn't we're about That I'm

wildfire been you on it's paying be something that be would You depending O&M. base asset big is would commission recovery to It of of a kind mean if rate level the That is out. a not of comfortable allowing liabilities like that the -- think typically we've us that what number, recover. about

So we would to have impacts, But it's to language mitigate as if to it. rate we don't potentially would ways allow this time over customer legislation a to think through think us asset were point. that I at it base now in rate right we -- securitize think recover about that

a would accretive it liability to I'm regulatory be just were pursuit? that earnings would it portion if recover be earnings thinking, through but you or neutral, of

example, payment have with to like the to of through we of for were a finance associated right portion debt earnings those claims. recover core being interest we that, now, used expense the that's If coming in

then So to through if we that, recover were earnings. that come would

that it the reverse off through would future. to liability would in come wrote we wrote that itself that and noncore. actual The off, we earnings You

of trying use believes think neighbor, Great. underground? And see it limited able is that O&M by be to on plans that system. you the actually as I potential northern the more strategy the to side your have the would to I undergrounding cost its it question of terms in used to being savings other management savings your O&M is part Do is, vegetation an then undergrounding achieve offset of with

well, Yes. I cost think saying been the but turn amount veg significant terrain the open of very have Paul, another Steve the about really let me by to And PG&A. this as to just start to place, management have in it’s both this difference the let over important for me geography. Patti and and is remember And where team it one

And more forced. so the terrain is much

grasslands. Our terrain is more more concerns trees with line. into have They falling

right? still with concerns So the what in where say contact cover else Steve, objects conductor But that’s math more towards there? case. have has We would in, blowing our from you

that we huge up we O&M driver difference plans we our doing are face different the Pedro, between and risk why of types in different. territories of ignitions To of have the is we're for end is as would that vegetation for extent we would each undergrounding. doing we management that But those approach that -- in where the the from undergrounding terrain that would I undergrounding, the for look changes the where to us so savings undergrounding, more expect not specific get and those well. just the areas it doing having be inspection were some potentially places do to

issue. we falling it conductor need On vegetation. to large into be they an covered doing conductor, to if the We trees they keep trees need could and still side, down, work covered that are because take would if trees, be

conductor, point just yet. potentially practices we'll and savings more can and management with over learn not cover but evolve have that vegetation we're at our how O&M So time, about

and the -- more to So so cost undergroundings. get great effective I'd really we'll been is say conductor opportunities that risk for to us been upfront. have And it cover quickly the it's reduce for out has

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

good This a for Well, the thank you concludes stay us. of conference rest and Have joining the call. day safe.

disconnect. now may You