Edison International (EIX) 23 Feb 232022 Q4 Earnings call transcript

Good afternoon, and welcome to the Edison International Fourth Quarter 2022 Financial Teleconference. My name is Ted, 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, Ted, welcome,

are and officer, and team. Pedro speakers the Financial today and Executive President are call on Also President Our Pizarro; the Chief Executive Maria Rigatti. members other of Officer, management Chief Vice

supporting Tomorrow at These we presentation. our business XX-K, are will include Maria, and available Pedro update remarks distribute from and call the today's Form Materials www.edisoninvestor.com. prepared teleconference presentation. regular

International and the Important the Edison Please During different we outlook differ forth could filings. forward-looking will factors set these our in cause expectations. subsidiaries. about statements its materially call, make could results current results are carefully. read SEC Actual for from that

GAAP as includes outlook assumptions measure. as presentation nearest certain well of non-GAAP reconciliation The measures the to

yourself session, question During one limit and follow-up. the question-and-answer to one please

will call turn to the Pedro. now I over

thanks afternoon, lot, Sam, Well, and good everybody. a

International's we report $X.XX, are range. of outlook. to and Today, will pleased which am of delivering target in long-term to XXXX in that from our our the was $X.XX was I performance EPS end are confidence strong growth reinforcing guidance to EPS upper Edison for of financial and through XXXX guidance our our introducing initial XXXX. EPS discuss X% XXXX Maria X% $X.XX core we

Let's noted XXXX, start on in with are our and Page they key accomplishments X.

just First, we once again as annual mentioned. EPS delivered I on our guidance,

now XX%, on as levels, and mitigations tremendous on other to wildfire now XX% make wildfires as in reliance wildfire pre-XXXX PSPS. Page hardening losses reducing to SCE depicted is continued critically on progress and key that that has plan to estimates mitigation of its and SCE lower updated probability the reduced statistic catastrophic X. successfully compared X; by Second, of executed with risk Page only much and PSPS, continue, it XX% the SCE shown

market Despite shareholder our this financial operational total impacted and strong sentiment performance, return.

of the our for TSR most Utility and Index XXXX peers. Our Philadelphia Sector trailed that of

I clean and and financial SCE's achieving our are affordable, our deeply strengthening committed leadership to targets As increasingly team while electricity. reliable, shareholders ourselves, ability safe, to deliver

in weather catastrophic included despite marks infrastructure. area challenging into deeper associated achievements nearly miles installations from consecutive and a miles. to bringing Key without XXXX with distance deploying last SCE's fires tremendous this to progress about in our Diving SCE's some covered the wildfire service year perspective, To year, conductor, wildfire round-trip is circuit Washington, X,XXX XXXX of the in mitigation, fourth conditions this X,XXX around in Los total put DC. Angeles circuit

which ongoing execution made So, I our have of activities, communities hardening of safer. proud am SCE's grid extremely

to on The are in hardened. covered it summarized in a total, Page utility and of from year-end, its in granular providing X,XXX the fire largest network visiting in are distribution has burned sections X,XXX ignitions structure utility acres on inform risk achievement that is those operations. another our miles is XX% lines SCE total of not conductor By yet view A be high areas key of result risk in high is weather-related a its grid hardened smaller XXXX, in to XX% targeting with significant up than or to HFRA, This total to SCE of network The including out times. of weather and three is the more station stations, least at the now, weather continued areas, privately-owned than X,XXX one-millionth build country, expected already underground, X. is risk fire approximately miles every like HFRA since completed inspection hardened. which XXXX.

hardening distribution for customer system SCE's innovative end By risk wildfire by XXXX the continued the overhead have the reliability, will amount in SCE Fault differentiated pilots, We plan, XXXX forward like as example, risk Early wildfire such speed mitigation reducing shutoffs. reducing wildfire to that and shortest prioritizing about greatest in approach Detection. circuits the to hardening infrastructure time. of its scaled its risk success by reliance of on of hardened of measures miles look X,XXX through amount SCE's the and of reducing of PSPS, at is by power affect

to the mudslide third of SCE In and on Turning in recovery and now about quarter, XXXX million events XXXX claims paid outlined the TKM fourth settlements. cost SCE XXXX. the application wildfire quarter X. Page $XXX filing in the targets

cost the to Let interest that first Safety it cost The public recovered. will strong, operated that case recovery, compelling or about foregone already its the expects agreement authorize application. me utility CPUC billion will seek is excluding full full SCE show recovery. the in this $X to Enforcement request SCE prudently system emphasize its currently amounts it under and Division that with in

beyond Our from in not XXXX upside factor which and substantial for any financial assumptions recovery cost applications, value. would the do potential represent

XXXX; Looking for areas ahead, highlight I want are management to these on focus Page key out X. laid

injuries and his employee X,XXX and of XX%. a we a are targeting very troubleman, the joined First employee injury safety rates and success, foremost, X.X it died redoubled and in reducing This month, it utility Johnny service ones and last Kinkade, our of resolve to foundational Tragically, by our years team's is resolve from values work-related redoubled my at week. make it last. fatality his memorial last work-related us loved to and our first was our

wildfire for miles miles focus communities unwavering filing its application keeping of cost the keep X,XXX wildfires by utility mitigation recovery SCE's Again, historical of safe first a total through month to reaching commitment per a conductor, The continues. the us. covered plans about also for area our year-end. front-and-center of pace to XXX is

looks SCE mechanism, front, upside should trigger. capital result could regulatory to XXXX earnings and of the it which cost application the in forward will GRC monitor significant XXXX upcoming to its On

and earnings capabilities, supportive We firefighting side, financial by the upgrades state's reduction capital credit well-warranted as the this our On regulation. is achieving on will California be considering significant to we wildfire as the well our pursuing ratings. focused believe expenditure goals, SCE, risk strong and

here steep annual shared before through economywide are followed codes And year. toward XXXX XXXX, trajectory to earlier nationally future, support flat with approved a that by big Looking and we California. we electricity projected a We've the forecast and we yes, XXXX, by for growing the XX% increases the and six grow usage in electrification continues but zero. regulations, growth standards almost legislation, now seeing last previously, of breadth through that's

have This outlook XXXX. external validation. electricity SCE is decarbonization state's based these to source growth has the XXXX electrification Pathway California forecast significant on significantly, Commission's to providing a gap updated of Energy the about projects changes transportation electrification our building reflect forecast strong now its from analysis. sales the consistent X% with and XXXX Both growth forecasts and narrowing annual load also policies, increased policy through

electrification Rapid to need expansion the infrastructure. SCE's of sharpens in investments significant continued make

continue demand, investment be spread among affordability will wildfire of it grid investor-owned major to over lowest in this increase Over support a already to grid California average will the With invest work mitigation the growth we California's leading significant sales, role be in coming economy. its higher future. utilities carbon-free system overall. years, the expect and lowest supporting will SCE's a electricity in SCE building and for volume foreseeable rate is the

importantly, confident our me investors that significant wildfire and recognize our this, makes about fully the electrification opportunity, wildfires, XXXX excited target, confidence will our cost the near-term clean I risk of long-term steps value our historical All and, recovery for investment creation. am EPS growth, reduction, in so

turn for to it financial let that, over with And Maria report. me the

Thanks, Pedro. Good afternoon, everyone.

fourth results, by today, Let plan. for quarter $X.XX EPS Edison me I my International's guidance our discuss guidance, upper highlighting the start in our our that of will XXXX core comments financing initial of end In was EPS and XXXX range. XXXX

quarter fourth of EIX of the XXXX, core EPS $X.XX. with Starting reported

and with claims year-over-year This due and was GRC higher expense. was interest holding As you see quarter was payments. depreciation EIX partially a primarily shown year company associated of to escalation. variance can XX, variance XXXX wildfire there quarterly fourth on $X.XX, offset rates expense. The and latter expense Parent from net by At by analysis, SCE's increased attrition higher earnings negative funding the driven higher interest interest primarily to higher due Other, Page XXXX

want capital the driven SCE's in base grid. and shown of safety I with significant the rate capital and These disclosures. investments consistent on has I forecasts, largely emphasize SCE opportunities would Pages to are last reliability to quarter's and XX now like by XX. expenditure discuss that

to of GRC we our X% quarter continue growth the to view current through made SCE's our to from incorporates project update call. testimony extend will them also applications. May forecast second strong XXXX before in and other X% in rate of GRC, be base forecasts files The and XXXX We application and its earnings XXXX XXXX to requests and XXXX. the SCE

I rate X.X% the guidance want $X.XX. approximately components in XXXX growth. Turning to core EPS The in base guidance moment, but frame growth, a driver expect earnings first will are which is we year-over-year of I be our to initiating XXXX we primary of cover EPS outlook, to XXXX. $X.XX to our

see can our you relatively for to flat range modest However, that the implies year. growth guidance

SCE. Page parent interest base be settlement-related attributed of and the XXXX increase. XX% you both higher help expense difference parent debt the wildfire at the for The To between growth, in can rate gap out debt lays for XX historical wildfire of bridge to growth the drive and the is To core put EPS at Refinancing difference, this primary claims reason payments EPS the debt. perspective, year-over-year. and about SCE's

very they this that cost reach claims resolution, carrying including utility clear seek want CPUC expects until While be the payments, full of SCE cost is recovery financing costs. to to financing cost eligible all recovery I

guidance at Please $X.XX. drivers. XXXX earnings of to our EPS we rate with turn which key and for math, The base guidance forecast Page XX components start

SCE payments. of which major right shown of $X.XX, the next to net with excluded $X.XX $X.XX The contributors contributor Let's interest page. costs side being expense variances, from per contribution discuss biggest the to the on operational on for are claims wildfire are SCE a debt guidance authorized have share.

we total to EIX Other, $X.XX per $X.XX expect and For expense share. Parent of a

this like reflected is now our by saying specific XXXX financing instruments the preface plan regardless would financing our I'll provide use, EPS the to of that company's we guidance. fully in parent I plan.

we $X.X financing Page to Turning needs XX, EIX project of parent total billion.

with this financed securities of million for a combination debt and be million $XXX parent of content to the We to XXX equity with expect remainder.

a of we grade of program. at-the-market internal we firmly use are maintaining. committed a issue which securities, combination level programs, content, hybrid with credit our we desired investment equity our to or to ratings, achieve To As may existing our support reminder, securities equity content

capital XX-month average provides end and increasing the between Baa utility X.XX%. the the mechanism CPUC half ROE XX the on exceeds of at X.XX% an by index for average If Moody's bond the the the cost Page update calls of of mechanism. the difference September,

of resets is average mechanism period the the measurement the XX, preferred debt also around February authorized costs Through and Importantly, X.X%. equity.

the understanding monitoring of as an on specifics for be a will and We next Relations provided you this we an months seven Investor as spreadsheet download. the our website over the mechanism, that -- can aid have

guidance that I mechanism, environment, which of interest are updates ahead, My translates incorporates on to this which ROE XXXX, adjusts through I assumptions associated and target. this costs reiterating XXXX upside committed management our $X.XX, Page accommodate to the Looking does cost we fully $X.XX include potential will note laid delivering EPS growth X% but out debt higher the capital from to with XX. are and and EPS rate on rate team preferred. to the not of XXXX the to target EPS X% of

XX changes a not which mechanism $X.XX. each the potential ROE wildfire by basis could a of XX our assumptions trigger, that historical in with substantial. you provide costs, To the ROE points, would XXXX by the points about Further, be financial of of do for EPS basis increase XXXX factor minimum does if and recovery sensitivity,

earlier the SCE customer California Under point to the affordability revenue that customer-funded I the million, builds wildfire able and Cal about Pedro's average another to self-insurance This this was action IOUs, lowest taken reached in for manage it requirement rate, SCE's authorized among by GRC. to Lastly, a agreement yet model. the Earlier with expect reduce move we previously SCE customer revised highlight $XXX Advocates be build structure, month, driving want on the an annualized will settlement and has self-insurance the already to on be down funded TURN a major is to its which XXXX foreseeable further future. lowest SCE will and system rates.

invests yield. the of EPS of dividend base to return as offers conclude, fundamental rate potential, and growth grid, To year increases X% X% double-digit growth consisting safety our the total the electrification guidance which utility X% the economywide and accelerates. driver, is SCE's rate in each importance EIX as in reliability

I'll to Sam. That concludes hand my it remarks, back and

questions. for call the open please Ted,

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

from Partners. Pourreza with Instructions] Guggenheim is Shar [Operator question The first

now is open. Your line

Good afternoon, Shar.

Hey, Shar.

good cost on Pedro, light the potentially do given or path equity end deferring that equity I emerging at glide the, still tunnel, issue credit I metrics? recovery, you wildfire just guess, afternoon, at the showing Pedro. you you that's the cost will, start I content? Maria. some need the Hey, to if recovery, Hey, guess equitized, efficiency you mean, if I visibility you could right, become getting issuance and mean, assuming for find in time, over a agencies so of

Hey, Shar, it's Maria.

needs needs know the when rate of company. the on before, I that equity base think we've that really capital shared the you focused underlying and we've our needs

focus getting has all So, been that on point. we've addressed of and to already liabilities the our

rate over basis, four about growth. billion, the average go-forward that talking $XXX really, on So, a on we're million that's $X next or base years, about equity

we processes, I the door. to through incorporate deal will in of we that We that I continue But capital if we at we're SCE when to the structure. address recovery, -- as get we'll some as forward. how those get we we'll we debt go think all go with dollars retire that the obviously, think to Yes, as going into have

Got Okay. it.

So, more there. to come

guess, aren't sort just then, sort increment And about have that load recovery obviously 'XX, another currently I the you of levels, think a GRC? approved CapEx GRC flattish do now do on be Okay. growth do in recovered an And in investment since within I planning of seeing would you're mechanisms I this could that that think horizon? need of base? we from needs any how Or anticipate the you under? mean, to rate sort X% file starting impact Thanks.

thought Apologize, little Thanks, so was There phone Yes. done. Shar. you blip jumped on I were I in the a line, there.

it's No, okay.

this, to to and this Steve rate to pieces We're well. add want 'XX certainly case. may within of current Couple managing Powell as the

see application. X that expected. approval we that. through saw we of we have as growth than You earlier that Key look though had for thing here Track We're we XXXX, waiting is, XXXX,

We to building and completing Steve's is 'XX May. that expecting be 'XX in to application will the that now file team certainly GRC into

I think within manageable. we that believe this is

[from add would (ph) own] you perspective? anything Steve, your

increase to the time. I'd just rooftop so Pedro, starting that I point to it year. the XX load of see growth, next level And will will to expect It the out, clarification begins as do It to around well X% over as terms building next load up vehicle lower, of as in we see as growth ramp expect years, over start electrification solar well. accelerate. begins growth point, at some swamp wouldn't

rate at really cycle. investments that years will XXXX But be our support -- figure of needed like the that Pedro, hard for couple that to said, case growth. within next additional So won't what current we're looking rate case you out to impact will

other point Yes, you one And it's but for, you than here. maybe give great, I'll more Steven. asked sure,

a I'll customer it think an lot don't use the of exciting. good think We're going see frankly be going that, to there I just to surprises necessarily is mean -- example volatility some time. negative way, right? adoption. over going bring some electrification. smooth, not And That's in term is, I volatility. particularly it's we but and frankly to really This fleet out important about focus on a in

a installing to get things know or we they that But of one large not past. in some able application proposing able in heavy-duty getting manage think We'll with upcoming is GRC If the going terms that electrification a flexibility -- 'XX to earlier experienced have surprise one at manage I electrification the a buying vehicles, investments at be us the retailer the will on of let may will big looking being that you team circuit point. the yet. about electric truck concentrated surprises a that depot provide little see more box we fleet That's have is be of those to more team in in of terms than distribution or good a

thing, it's that's we different like you for California along, changes but about larger It's because very it's ahead. when step applications come a will with go good as how It's think to up going a of the electrification some some right, coming day heavier-duty trucks. decarbonize, particularly

next just that XXXX takeaway the the manage in application. of years, maybe, see fully So fully Shar, main growth in GRC, couple reflected is load but we there our can you our existing will within this

guys. Okay. I Fantastic, it. appreciate This perfect. is

Shar. Thanks,

from is queue the in Storozynski. question Angie Next

Your is now -- line Seaport. open with

Hey, Angie.

Thank you. are Hey, how you?

And you? how are

Good. Okay.

that at relatively 'XX all for equity angle. of seem needed So, question, they I you low didn't different needs you for equity 'XX. the given at actually looked issue the and first maybe

some is So, monetize the you've is know, the on some 'XX? to, buildings, of catch-up side, it just name it don't assets, thus, for do cash -- on efficiencies that reflection you I it? to flow need a the and you capital Or managed don't

It's Angie. Maria. Hi,

I I'm FFO we are to XX% range. to that just managing XX% start saying, So, debt going to think to by

investment-grade Having capital you about We need have to cetera. program, content on through our 'XX, of have -- up equity in before a where we would real et ratings. billion that, we've we were that to flex about commitment [Technical depending our $X but told that $X said Difficulty] billion

of us another good yes, some we metrics, be want terms to had to we we to commitment that where and allow that and came of the to our content the we satisfy at but as into XXXX rating. in will market XXXX, this look our conditions, out So, deferred make investment-grade of continue given equity took

capital at look we where are comfortable our move continue as But 'XX we take 'XX for the are through rest plan. financing the today through of very where So, the 'XX in we're a to plan. we with we'll cycle,

give project. you you of your about a And us status sense battery project? that didn't of anything the mention Could Okay.

want Yes, on on track Steve, give that's more online be to summer. the by detail to you that? any

online as everyone, with run challenges. we SCE like for We've signed of into Ameresco we the been working that and Pedro reminder October say, it year, other agreement just so that expect since. -- And with I'd supply million also a did be project in $X every And the about though, projects. Last -- [this under that Reduction will 'XX some for coming execution XXX We said, for of back in getting fully summer. it megawatts. chain spend we still credits billion expect about for total be year] will $XXX the tax on project Inflation eligible to are the (ph) Act. online the

so that the And go benefit to will our of customers.

Okay. importantly, is so you the the why for filing first at than earlier the expected. And and it accelerate then, wildfire recovery, lastly I'm planning probably just cost coming are most wondering to least portion.

So, one. that's

And the you're interest any deferring haven't with financing the wildfire is, those number from you CPUC. any claims, so two associated had decision not because of

get at So, if Woolsey? expense or start I'm enough just deferring the associated in or settlement is for that interest least wondering, that a to you you settlement with a batch, do a decision first

I'll take can and the Maria second part. I take think first part the

right, piece behind do of that the commented first we what we this the value by over of we first said the also, recognize soon were filing as is we I to the in were I us. getting cost that because think recovery think, earnings that certainty that there's -- year. on last how looking targeting And several we getting quarters' and as that calls end possible,

would quarter. I to that have we see have of consistent in ability the we clarity accelerated with we now we that every sure that third quarter, not I'm the filing. more the year, Again, end but file the say So, the by it's

filing And out. that's are when to going we the so get

you cover the Maria, other part? can

Yes.

associated are the correctly we interest not you expense as deferring Angie, point wildfire out, debt. claims So with the

to that's so income And statement. the running

a We or what apply the recognize are we to and we itself for reverse file we when get recovery the is, want -- or up will languages precedent. earnings. precise would et to that When decision, And will for ask we you then set look how at we that see as Woolsey asking cetera, we when will application. the and in that recovery, that would get if

So, we'll the get happens see we decision language when that of around actually on what the TKM.

Awesome. you. Thank

Thanks, Angie.

Research. is question Steve with Wolfe from Fleishman Next

Your line open. is

good afternoon. Yes. Hi,

Hi, Steve.

we -- rating, like probably already, on guys this knew You you looks probably Moody's your but on this may call, so were upgraded have as congrats that.

you. Thank

scorecards, do our on you? checkmark first So,

think, But -- the I the for about there so the get isn't could There's dollars the I an just from on two on like determining first expected the actual guess, you filing -- then answer there's and recovery, prudency talk timeline Yes. decisions? -- part... to CPC? And

Yes.

So...

Could about talk both process. prudence you of the those? ...of

Sure.

the So, how filed with schedule, our intent setting applications. they consistent when rate application is XX-month of we sorts request to an handle that's

both conference, a which prudency could to our scoping that are pre-hearing ask also they be of the of other response simultaneously. after memo. the scoping or their typically, pre-hearing of a file requests both our we will which sort process memo following their and that application their people the process prudency issue comments, XX-day would have file operations would in to there comments. The going consider schedule, just then a items after settlement intervener would conference. our the And window We commission schedule would that and claim they What of those you mentioned, happen is

know that's is of we'll and looking lot issued. So at, scoping thing memo sort a after we're that more

Yes, a that's with your -- give 'XX. better the out just just lot the 'XX through since variances, driving you've I like, how been And thanks. Great. sense, GRC I play year, able operational those that? terms variances, does sense GRC on in increases are offset to that the into operational also? what respect of of a long-term the to particularly the Could to Okay. growth so the interest you And rate, then rate of think guess, improvement in

there you it of a our see lot can XXXX there's in And in even and Sure. things guidance.

'XX a range in CAGR. that actually EPS in similar have We we fairly have XXXX the

operational a healthy Big there? in are AFUDC that of things in variances. earnings, what's chunk that's are So, there

at have time, get we to the every through been we submitting get when And -- year that when from actually of applications go point. this those pretty some regulatory true-ups time those variances. those decisions, much have then also We operational

we XXXX use that the over is manage specifically of depreciation. An since GRC GRC course example that there cycle, become through are how aligned of do Speaking first cycle. the the it's often things to less year I and

-- get get So, normal as can actually things you you what you can cycle, first over out When GRC the misaligned get with depreciation or was of can true back you're authorized. actually recognizing to and what get up cadence. those year versus you a more into

the So, the have whether those are or sorts 'XX that 'XX of year 'XX. was embedded, it we things last future or

you. Thank Okay.

Yes, thanks, Steve.

is question with next The from Levine Ryan Citi.

Your is line now open.

to you some that you cost recovery about deviation determine that presentation, in request? And factors application. that billion the cause would everybody. How prepared amount? In the Hi, did follow be from the $X remarks what Hoping ask. up highlighted could on

case. And Good case the is, TKM question, Woolsey I and Ryan. think separate the this that's answer about simple from the is

two that a before not amount how have given cases. between of sense the you was We up total divided

insight the TKM. amount you gives relevant to this that's Now, into allocated or

simply, said, -- which. the So it's just are that claims what accounting of that's

probably we anything quite the you in accrue we application we incur will so claims and we cost will insight a give true-up will any because address include perfect can But to to -- continue it interest we that we and incur continue settle that we doesn't yet, the filed, application. following that mechanism

right. That's

be specific you to that any third a share watch the milestones that work of presumably, the in in process? there's and timing to to care quarter, factors Between needs could lot any influence and done, the filing the that more now

nicely covered earlier, Maria think Ryan. I

Our there expectation be proposing an schedule. will XX-month

for applications that these past been on I has team think we in shared some the quite time. working already calls

that ongoing. work starts So, it's that's work it's not been now,

have final we details there. we'll so, once the out application And put

Okay. you. Thank

Thanks, Ryan.

is question from next UBS. The Gregg with Orrill

line open. is Your

Hey, Greg.

impacts Yes, how your Can that of and the Track you goals? about how hi. about impacts that -- and going your ability talk proceeding should financial X hit your we it? Thank that's How to think you. sort how

Sure.

case, XXXX stub it revenue that gotten X have XXXX is so Track our in We've addresses filed GRC -- So, comments. requirement. interveners year

normal we're the that get for think year. by this a to through the schedule I going The of process. end decision is

very a for So that's relevant data XXXX. point

normal of process GRC GRC a the there's So is of component some we sort the or that that through outstanding. go anytime

not something that XXXX. It affecting is is

next recall, XXXX XXXX year the we EPS our you if GRC mentioned cycle X% this CAGR cycle we'll is So, first in Steve's X% is response and to outcome. through XXXX on through to focused from be GRC really the and 'XX as question, of that

And on the final expected some between would be improvement the and outcome somewhere to decision? be in final that the interveners

You're talking X? Track about

Yes.

There need Track I procedural is there still to due. things are we work some and on think through still X. is schedules that comments

So, that year. the balance of the we'll work through

right. All Good luck.

Hey, thanks, Gregg.

Nicholas Next question Suisse. from Credit is Campanella with

now Your line is open.

would that? that missed guess, be And questions. wanted just just Woolsey, Hey, explain it. after claims, for actually everyone. TKM? my taking I if a for can be after XX-month the the Or I filed? process ask when Thanks to I just sometime follow-up would the 'XX, on sorry it But you and on I'm

Yes.

new given haven't timing We on that yet.

to the don't past be the expect would a I in sometime TKM TKM. on to necessarily Woolsey. wait to think than need schedule have happened you'd so We TKM, after that proceeding year we how to later be around completed for that file commented Woolsey for

So, with the I in settlements, we -- a complete just when would that terms we or of as a -- think really have TKM for we timing filing. did substantially have be

actions carried $X.XX the to I imagine notable, that's recovery very your for just for we there. from and forward you there's to on drag that Okay, going a guess, as 'XX, guidance, as on would I and earnings with thanks And walk is that's the presumably it. affecting get debt think confidence 'XX about potentially I await helpful. the 'XX the balances CPUC. get appreciate

Are frame do you. you do in where of sight are more it, 'XX? -- you within be the line you to to getting 'XX? a within there is how or Thank X% Just have you in about X% it range just

we're that the right, Well, this commit important of to. aspect put most and is we 'XX driving because fundamentally, towards conversation, target there and we'll that's the out

do rate on obviously, I QX for terms going when fundamental we'll of that driver In about find XXXX still base of the is out give there -- guidance that XXXX as about going next but we XXXX though, think XXXX we're think we give it. to 'XX, our I a guidance think to of are QX this year, growth. are XXXX call And that? how in year inform things

the to the GRC discussed we've Track X some decision. X things of So, already today, Track

we've example. number made a have and see those, timing that filings on for account of We memo the -- we'll where

to continue execute plan. in all this rate higher of to be point. clear. We're this at environment want financing We've interest the numbers on to I sort going our embedded really

So, you won't where that there interest say already baked to but XXXX, end is it. think up definitively will I in I into rates

We're could continue X% CAGR of going get EPS to in It's to XXXX. but capital mechanism. something monitor us not impact frankly necessary the for XXXX, cost to to to also that X% is it our

work that So, we of are XXXX. important also the as course, question, and we are doing in the into all here And to all continues lean but so of operational on those this affordability. of to customer team efficiencies and things prepare move to

I Maria. color, that Thank really you. for appreciate Thanks it.

care. Nick. Thanks, Take

with Arcaro Next question is David Morgan from Stanley.

open. Your line is

financing types debt for my so your We've the seen taking Hi, look Wondering financing and do there of on of environment. interest if the opportunities first at ideas of debt the costs outlook wondering have convertible-like that, exploring I peers following upcoming recently, maybe are some securities refinancing you any that questions. couple up was in some of and the lower much terms debt issuances? interest thanks that a different rates. lower debt to like offered you're securities as rate

Yes.

we're to that to and market always that whether it all effective can. like looking to as situation, have be see transactions our go, that, We'll as but is, every possible. answer monitor cost other opportunity the think for the those at I looking how question fits we absolutely opportunities

much following able Thanks. give versus expectation? of I'm it. of what the within prior increased variances, that outlook, the wondering portion got if the to give looking on XXXX overall kind is And And are also that at Okay, to an the how of indication could up you efficiencies operational bucket? then, you operational just as

Yes.

terms broken into lot that a remember, at in and EIX. goes haven't of efficiencies, there's of efficiencies, we because out on ton SCE a at operational operational work detail it of So,

areas some and And technology But working relates to like that items you we're you're looking have the so, management it line broad -- and we've at leveraging relate to that that through. many, thematic looked to of many improvements work procurement. relates technology,

So, efficiencies. category would of number the are I into that areas operational say there of fall a

period. includes includes that misaligned to fact things. the that time bit things the the operational bucket It that includes a lot a But also as as over some course gotten mentioned depreciation. It I of earlier, realization the regulatory of like get a little we includes going variances AFUDC. sort the other of cycle into of realign applications may have four-year we're of GRC It

variances. So, there's all of operational those into things the fall that

Okay, great. it. I color. Thanks That's so appreciate helpful much.

Thank you.

so much. Thanks

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

open. Your line is

when appreciate I Hey, much just so for like back well. just Thanks call it's from Hope coming a amount ask $X.XX midpoint. way, 'XX, we to that let this me guys and to it. received your here, at flattish team. here. are time. guidance afternoon, But Other, it you look 'XX the you 'XX, right, right, good 'XX, the it, Parent good Hey, attention of relatively

about there Or equity issued. no that. i.e., or some effect, that and is of something parent the issuance and or suggests the balance the some that equity positive of that debt the there focus from TKM there Given sheet like paydown commentary is fact the some offset, includes right, kind issuance of on incremental the debt is, right, thus maybe dilutive it included, kind far parent if

and understand in Parent and that trying line. puts takes Other Just the to

Yes.

given things think, will a do manage the in the at around around areas that number utility into our look how for the parent, Julien, cetera, the And same XXXX. efficiencies. fall I we range efficiencies, there are and that operational to we that allow that we've work, think et we cost does of us

think of but getting I it's a cost that not down. So, lot work hard glamorous, it's

how also, $X.XX in of a of reductions you will? in any there 'XX And Got much the was through we think have like I terms in guidance, it the period, of CEMA. it. the is Do sense cost baked if course

details? that what true-up just subject while the well, is So, on of we're as

Sure.

across just holding hit at a working items to our whole we're effectiveness efficiencies So, the business company. and range of our frankly operational

come more work on So, those we to as through that issues.

item of CEMA relates CEMA so to -- Account. that Event Catastrophic that XXXX the terms Memo to, referring In you're is a

that not So, or wildfire, costs. the it's -- come very to we will a events. CSRP et gave [Technical in when And now incremental we to had because incurred similar we this in the costs of application, any cetera, cetera, a few years we that guidance. that that Difficulty] be a fruition 'XX and recognized for make or was year there 'XX storm, we in to variances. ago think happens, event analogous an our that catastrophic related to flagged we related application item to capital, It's we operational will any XXXX a when believe, And et

guys, Got a great it. All you, Have very right. much. Thank day.

Thanks.

Thanks, Julien.

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

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

may You now disconnect.