Edison International (EIX) 1 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to the Edison International Third Quarter 2023 Financial Teleconference. My name is Sue, 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, Sue, welcome,

are regular and Officer, and and will teleconference team. Materials our Pedro speakers the Financial today These and supporting Pedro Executive our President our call on available presentation. Also Tomorrow, President presentation. update distribute Our today's Pizarro; call the at from Chief Executive the Form Maria we XX-Q, Rigatti. Maria members business remarks are and other of Officer, www.edisoninvestor.com. management Chief include Vice prepared

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

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

over the now call will to I Pedro. turn

and share X earnings Thanks, for the right. reported International All core quarter for and Edison Sam, of year. $X.XX everybody. of the afternoon, $X.XX the per good third months first

I reaffirm We performance to X% guidance the in in also X% year-to-date. for with not outlook potential are the we core to quarter, ] to commitment growth [ fourth factor our several our pleased $X.XX $X.XX. of which EPS XXXX like does core reaffirming with range our And EPS XXXX, ongoing combined are to would delivering content for upsides.

to to our X% We XXXX guidance X% for also reaffirm EPS of growth XXXX.

comments today key My X cover thoughts.

wildfires estimate. First, relating a best on the an to update the change legacy in

utilities practices across change-driven industry-leading as risk SCE's affects climate mitigation wildfire company nation. the how Second, differentiate the wildfire

the clean then enable required and energy economy-wide regulatory on electrification SCE several finally, expansion Edison's the updates, to updated transition. and grid Third, dramatic projections

and The is made for The and the as costs. these shown claims cost SCE's process moving estimated evaluates progress outcome and And resolving claims legacy X. substantial with estimate claims. utility the challenging. complex has each towards Starting SCE the recovering final to quarter, Page settling on resolve wildfires, remaining

primarily this being best to at and levels required driven higher increase settlements by continue. quarter's million, trend estimated $XXX evaluation resolved the will that originally However, SCE assuming estimate by than

has The on the about X/X increase Woolsey. more about as us. of of types through process. shareholders, is this lost mediation it our precepted refined The now also works majority, attributable increase SCE the the of claims is impact on you, information not to being

As that cost this to and importance ourselves, crucial, committed of us. recovery. issue support all firmly SCE reasonable the we understand will this in ultimately behind completing Resolving claims outstanding is manner prudent a shareholders and is

a their A process in the for and claims that positive claimants to fight After XXXX. have on this them. is claims remaining then, clarity increased the SCE value will recently complete of February the step SCE ability swiftly to protocol of Woolsey deadline resolve in by utility's was settlement set

we than of The plus including recovery when expectation cover always, eligible will and it update more continue Fire. application will cost costs. Woolsey Woolsey for As will SCE's financing the for the $X to you application payments each legal claims billion file quarter

specific by wildfire country Against vegetation asset from differentiated progress the backdrop, has losses SCE but multilayered its and viewed from catastrophic enhanced this This international become management, are includes across utilities facing tremendous hardening XXXX, its through that strategy. XX%. which mitigation challenges reducing initially issue. grid risk of other has inspections programs. anchored by were SCE itself to an and wildfires is recognize We as new since made expanded to wildfires, have California,

and as areas. private largest miles of enhanced the fast high-fire the X,XXX my covered replaced achievements, and colleagues in known country lines SCE across has networks And with mitigation utilities includes deep settings country. protective fact, year-end, risk experience strategies the the in Growth have sharing by in miles are their XX% weather station of its hardened distribution physically SCE conductor. one With will uncovered of SCE mitigation, with distribution conductor over

Moving to the regulatory front, I'd like to updates. provide X

First, avoiding achieve and save its testimony Expert SCE's resulted economy-wide reasonable case recovery customers cost in years, $X.X requesting from $X.X the could provided as that XX billion other control. on of costs SCE the extraordinary and environmental SCE evidence a much recovery the next for that incurred. designed, costs compelling were commitment and debt damages electrification. decision making that shows more affordable issued August, associated a TKM by its conditions billion. to its beyond application excess to estimates financing a delivered as managed over file The SCE prudently equipment recently factors it that operated provided

scoping steps, procedural As issue a the next will schedule. memo the commission set will that for

Second, for in has GRC, SCE the with an CPUC filed unopposed September, approval track motion remarks. agreement to outcome sets provide XXXX Reaching Maria its revenue a by approve requirement XXXX. details the year. intervenors the of settlement on the sought is additional in its and the X a utility her SCE and for end successful will which CPUC of customers, for this

the period to a of X the The XX mechanism October CPUC's which response after its the the point for refer debt resulting a filed division equity, at ends to update XX triggered approve with letter full ROE cost the tomorrow, end of basis along SCE January in and to the increase XXXX. or it advice CPUC. Third, on preferred intervenors September, energy equity. Tier cost capital to X, implement effective SCE's of return on can

fourth I SCE's currently upsides I growth EPS quarter Consistent with our to increase one is is like the on in of will earlier remarks. our that reiterate XXXX achievable provide my practice, at call. through usual authorized we this ROE and guidance mentioned would XXXX earnings earnings our

measurement share accountable. I corporate Zicklin marquee company's of Business and the now for strong Center achievement want and recent Research our our governance. for and Political published index, Accountability annual to which of is recently recognition corporate transparency political Center The Ethics a

score, For and accomplishment, tenth and continued team to the a the a corporate commitment second International were as recognized transparency. our for our received proud very am year. leader integrity and I consecutive we year, consecutive for perfect Edison of this

now putting Institute other also are with Electric were am on, companies as Zicklin proud also scores, XX indicating setters, I S&P to identified my XXX Index utilities Edison disclosure which oversight. CPA And Chair say trend current that and robust hat

for all We customer the goals latest published a achieve greenhouse the than policies, Xx need will flowing clean respectively. electric. top been the to by and clean rates, to this has Page must we on earlier energy energy and X shows of carbon some can and how while the updates gets modeling the levels of XX% conclude thought XXXX, need leveraging and on In means its net-zero expand and grid handle has for XX% transmission This XXXX, emission to California XX% Countdown part added just line achieve This war, to how Xx projects findings to over about serve To Pathway grid to and due an buildings at electric the September, years today. previously be advances the to Edison that estimated. grid leader published reflecting white XXXX neutrality. to their adoption our California distribution electrical many state forecast in latest in new papers XXx numerous X analysis. demand it. ever we new laws in gas vehicles We technology than faster climate will in science. expand historical before decades, higher load, increase transition going

change is of the are entire and efficiency energy overall household to actions to in outlining fuel about deeply states state's grid improve pace infrastructure At annual to planned average the as expenses by electric their and to of other appliances. committed model XX% on operated. California of we of save the the goal reach ceased energy requires and to a to set impacts a though, for to Countdown electrify economy greater mitigate nations. reduced This buildout fossil its and and approaches needed XXXX vehicles going how is the XXXX helping ambitious due Edison, Importantly, unprecedented bold spending climate

over Maria let for financial turn that, it me With her to report.

results, our EPS additional Thanks, and XXXX, of good and comments core today, third of everyone. core afternoon, with reported guidance my growth our expectations. quarter Starting into EPA provide EIX I $X.XX. quarter discuss cover EPS third Pedro, insight long-term will In XXXX

Page As there on Other, recorded SCE year, you can holding SCE's third unfavorable quarterly I decrease. Recall true-up. expense. $X.XX, a offset GRC on earnings expense. this additional quarter. variance highlight were primarily $X.XX in in service a an At X, company escalation revenue project quarter last will decision see and that earnings by saw replatform interest increase a $X.XX to from CPUC partially This shown analysis comparison SCE's the final its driven customer higher period key year-over-year year-over-year this interest variances. received results variance during negative higher X Parent due due EIX to and the an mechanism of for was a

our performance of fourth I'll are are the detail minutes. we quarter, outlook in with we with year, this Overall, first core cover the more in year in a pleased of guidance in our for $X.XX. X few months EPS full our and combined confident $X.XX the reaffirming to

opportunities to continue GRC $XX projects. that Page through XXXX from here On of the to the XXXX. $XX and The capital updated capital track message assumptions X, settlement key X we incorporate the certain investment timing we've forecast billion see for agreement about million is to

Turning to Page X.

to capital plan XXXX X% approximately supports X% to rate Our growth XXXX. from base

benefits electric-only competitive emphasize is focused an that several me distribution SCE regulatory and ROEs. transmission mechanisms Let strong from and utility, which

risk a this California's needed in grid see transitioning rate So role driven economy. since carbon-free to by we growth is is crucial lower to quality high leading it and base the facilitate infrastructure

keep expansion analysis, outlined growth. system-wide our is Countdown long-term pace to unprecedented needed with As in to capacity resource XXXX grid

sense distribution to in in a transformers XXXX. expects XX% here the additions SCE by scale, the This expansion long-term of in distribution significant have needed grid of makes a confident because and us for upgrades circuits, opportunity California. system the and conductors, larger investment For substations,

and would our have financing out needs key discuss opportunities future Before X we have around certainty that I XXXX financial like beyond, to our I'd point outlook. for and outlook identified

wireless that SCE the and than filing towers its utility an equipment. be monetize will line XXX application transmission structures providers allow transmission making final tomorrow infrastructure. on more wireless SCE the the to opportunities use The to providers other the assets utility portfolio and to would with to leases contracting future time space has regulatory prior CPUC that approval. of is these their current attach contracts of currently this leading of marketing to with filing First, shorten on its

benefit contract form efficient an need The of generate revenue. will for million expects the $XX in financially annual customers. that this transaction financing And nearly This reduce is the shareholders, monetize the in utility to equity for future. can

the as updated progresses. you keep will transaction We

EIX the announced debt offer Second, stock. we tender outstanding funding This for the rate reduce the subordinated junior preferred or balance By $XXX with delever Overall, sheet will transaction would million our equity recently and JSNs, its will as funded replace a be offer repurchase JSNs. preferred simultaneously notes the stock. the such exposure. of content interest with issuances

transaction expected build of of after-tax is efficiently on to the track XXXX identifying preferred stock and me long-term benefits. successfully XXXX, Let preferred costs about executing record create the manage to near- will in X EPS more core stock. In every we recognize reset financing of financial tendered. lower and to this opportunities the rates In underscore beyond, These that million ways even $X.XX additional compared would and for for have value. our creates locked we $XXX

we final XXXX CEMA possibility As proceeding on are but deadline outlook EPS could we tender us for a offer, application. with these by $X.XX our there the to confident XXXX, recently our guidance the core at Page range. shown this to reaffirming extended a year-end. on are related the still CPUC our Together rest put delivering of items decision guidance $X.XX statutory this SCE's performance the year-to-date range guidance of April year, top X is the The of X, Based target. that Recall of and in XXXX on $X.XX. includes end

we final CEMA earnings will year. in the decision if that in occurs However, realize XXXX, those

been an our date with gives have on strong supported you year update to line investor XXXX transaction and in X far financing plan. by regarding response. expectations The Page in to accomplishments our financing our so this

and opportunistically to new executing moment another a tender we've our successful mentioned a I offer plan to transaction. added the As component with look forward ago,

couple On of like the regulatory I'd a front, on points. expand to earlier Pedro's

the here the to provide is detail provide revenue once with will SCE's earnings will over by that some on X, our track takeaway First, requirements typical XX% requested agreement rate clarity practice, to guidance the base. approved in would call. provide with of XXXX fourth interveners $X.XX rate incremental agreement XX% on requested key and authorize its on our XXXX Consistent CPUC, EPS earnings GRC The we revenue translate and XXXX. base quarter of

Second, point increases as triggered XXXX XXXX a CPUC ROEs cost in ROE EPS embedded XX, XX in XX.XX%. to resulting on of approximately increase, hedge capital $X.XX of Page in guidance of interest mechanism the by shown mechanism levels future $X.XX. the The benefits above This against and our XXXX $X.XX. XXXX rates provides basis

In a terms the base will also portion more to deliver providing customers. enable are accelerate considerations. to we over for would modeling SCE savings of This and investment operational range customer benefit will safety, I benefits. the utility a of time. the is capture $X.XX to drivers, on thereby evaluating long-term this within front shown for share that initiatives we would in sooner, reinvest confident quality opportunities strong results affordability that a

confidence to our to reiterate have want I the our and achieve EPS we growth XXXX XXXX high in ability targets.

to opportunities. addition strong growth, we upside see rate In also our base

looking an attractive return for are total sets forward targeted the delivering EPS to our growth, foundation We which proposition.

I'll remarks. back concludes Sam. hand to with my And That that, it

please you Instructions] call the [Operator questions. open for can Sue,

Anthony [Operator is Our Crowdell Mizuho. Instructions] from first question with

capital. Follow-up take to Slide last slide, it, wants or cost XX, on on of the the Pedro Maria,

Just I reset. the gave into of first, you some insight proceeds use the on mean,

then at you Senate the have curious X? would happens one And Bill proceeds. through into Just also then And deploy follow-up. plays if the I the November what you where XXX procedurally, if go

Sure.

capital of of So maybe now. really reason by capital is to in look it's we've $X.XX given going rates X assumption rates. the a And that think said about it's about I this cost 'XX And capital think that proceeding interest that right a when and finance X-year shift. that components. part the think interest in mechanism, rates. -- for and 'XX I rate I plan the let's is embedded XXXX about actually decade levels. that's just 'XX that the part different the we're it's this at X a And slide, SCE to and and ROE rate. interest 'XX And through reason driver, more a And it And information I think through that we've the finance about that interest There the for X.X% of about you period. if period the in if cost different. to 'XX than have we've bit then little and is want around interest cost I highlight in X.X% and And EIX of the 'XX period, that the plan of will executed about you we've I those our about think has at had we And at at year to finance mechanism, for the the have because been capital driven a the in cycle. the think basically, think mechanism cost you

In slightly levels. those fact, EIX below

at forward in mechanism. seen I if of cost longer-term that Then 'XX, they're fundamental they're develop basically of good the vintages, the I was term, that through EIX California about captured again, kind here XXXX. [ period to at assumptions interest at to now normal between X.X% finance those by increases against our the the think that at we We protects in end. finance the we've interest longer current capital rates. When more against provided some really We we've recent a hedge hedge will regulatory fundamental do yes, of I look we And as around you for I volatility assumptions. higher vintages, very about think But the also as actually look think front if And then and X.X% how 'XX look the of longer-term that's capital providing basically, have recent ] the process, the rates. vintage, given for really converging. those that's And said of SCE prior look we that, about future and forecasts that term, mechanism I in cost by Longer forecast. rates, one that, constructs those look in rest I

And a in think good so on we longer-term place still a that we're basis.

but spreads Of course, And we've role, our direction since as that, narrow. more well. gave of spreads play a you assumptions year rates actually seen some too. for around we in our benefit interest first a we've seen ago, certainly, about Hoping that

CCM how a and proceeds. that's of the So of we use think about the component

is in other shared CCN Because that we been that have to accelerate of the we I as many, we do for we piece But effort, the driving year referenced not and think that in the have lot years. that and with our have might some efficiencies we it's of opportunities And you look drivers program. already. we operational effort. want you at a operational benefits I the multiyear a trigger, that to a operational it's working single excellence many excellence see on know

And so at basically take do provides opportunities as more forward. an because and see will quickly, we definitely more even look initiatives we it going a foundation stronger that it deploy to

the components those how the thinking I and of CCM are about So we're different it. think

if file, the guess, comments do intervenors Great. X, And you year-end? or we took guess, through just then post division November then Energy the -- post for tomorrow, wait I on us November X and I just

Sure.

would pass deadline Once or passed, would or would commission. whether if decision it the -- the division they they on not the are to due interveners. tomorrow the still just energy consider So comments deadline is or from that the

capital it's a of is only it know implemented. get So of terms the is mechanism how that there's Remember, math lot very relatively though, -- shortly. in formulaic, we cost of will would not

do I that's element an think the of So important mechanism.

change clarity. went Great. if X.X%, if correct, have think, February, total deadline it I here? where for X/X but should is Slide about the just be to the Is may lastly, my claims, that And due think X. related more of appreciate amount claims February, the Woolsey. on think by you understanding then -- And I again, I I the certainty much may by to I increase, additional we be

the gives that Anthony. right, certainty around for Because here. scope so provides that That's deadline filing a a there claims,

at to So the line. looking reaching forward time

The Pourreza Partners. Guggenheim next with is question Shar from

telecom in increased revenue monetization What benefits leases, embedding a potentially obviously wildfire drag equity in Pedro, the metric the start of benefits? And from of recovery. time you with and the the $XX just million figures present claims the to some on sale? that infrastructure the the claims versus frame coupling plan do seeing content and EPS credit are of

Shar, it's Maria.

So X pieces, take in a little our maybe going on credit to I'm so that metrics. bit

to debt. to to our XX% So we know and the plan out our our financing that for to programs. And the related recovery we amounts FFO the or to of you the to when be course, hit is and $XXX -- meet FFO That, including the internal we are can able filed. targets additional plan, a framework debt. we comes laid comfortable XX% with capital objectives reserve We've the DRIP XX% fluctuation is million our and Obviously, XX% through that little metrics. metrics, our is through of approximately to recovery related we are comfortable in the but credit still that the increase our it in to applications the bit will

the every about And that's the Woolsey point around provided this basis of XX metrics we for some recovered, application. XX slides billion our time in metrics. to where a improvement filed credit in file we already $X application we've will the So TKM cost

number. very a material it's So

customer that And focused ensue. prudency. decision long-term we'll having And so on financial benefits benefits we're and focused strength sheet our demonstrating on We're a good on also the balance that will the create. focused the we're

comes all at. sort of to in think look the attachment tower So what sale I you terms When element. that's it of that, of timing pro

process bit our to But filing tomorrow get can qualify for ahead just tomorrow. is streamlined on filing get be. the The We we it we're want So the a we precisely of will we're little what somewhat we more think reason a that the alternative, regulatory clarity frame. regulatory application time process. approval so in

the are regulatory going marketing So with our approval. to we align schedule

next So for to that agreements before because purchase commission path into And we'd the sometime reduce potentially transaction will, we just goes signed like depending to uncertainty XXXX sale of close. approval down, would on until of the year regulatory we have course, see everyone. expect any which and middle

looking the So of for we're that's that. sort frame at time

the does that it. the with present increasing timing any claims of the And recoveries challenges Got to CPUC? of claims, value the the

No.

settled we TKM the no, amounts remember, procedure our Shar, after for application filing, that recovery I'll filing that filing, the say cost have in a proposed introducing date. been

had There And beyond be number doing so in settlements numbers it's of been we'll filed. that coming the contemplated. be it initially we will some that

increase the claims final in So that proposed. will into we just X that fit procedure

and guess That take And incremental how you And guess it of the deploy lag? the CapEx what that customer-focused of would long you sort I mechanisms CapEx. mechanisms support? it to the then would was $X.XX minimize deploy utilize would to that just you earnings of the good. I to into Perfect. lastly, from upside obviously opportunity $X.XX Okay. capital noted cost of

Yes.

from pushing a of So whole on forward that the $X.XX range in our that could we range to at and the looking things improve everywhere would field of initiatives be there. in terms deploying further processes

as us to get And O&M well at in capital so other We're and efficiencies. experience. or that allow the customer would service improving looking efficiencies customer as opportunities keep enhancing to going

do places examples. We have services with want to we also in support affairs and regulatory that finance and as things

a operational excellence, doing this not we efficiencies business. on like year effort, driving basis. us, in that. single I earlier, So we're cost multiyear a looking It's at effectiveness said as the And really for are

XXXX. to And building be going into we that successes next year so have on we're

that see think I expect So we plan 'XX. this still 'XX, is to 'XX, developing, would but

Seaport. question And from is Angie our Storozynski with next

late are very feels other right? almost substantial. surprising, wildfire somewhat every target, ninth first, in almost inning. it's increases And loss vantage a to see it these but the It's come. least into like feels It more quarter, Would from process. disagree? there just of mean, have again, by February, that have So a we this hopeful picture, big the We're point I'm it is like the again, very you And we increases will I moving increases. our just full clearly those those at to

and of, is Angie, in are comments. that test heard listen, and our The again, notice this are change. certainly we too So you it this quarter, shareholders. number we reality taking my we know is shareholders We something of as reevaluate. every management quarter, And and as a that factors

As than I adds higher to. coming boils seeing my down all We're mentioned in settlements in down comments, or expected. it

that so new becomes estimate. And best the now

think you've right. behind into what and specific going certainly still to the We're big are is caution looking be over at that finally that the claims for last the details Woolsey. least time years. I I all to process, really the claims to forward might as and the do some claims knowing deadline take want get deadline you're dose, to beyond seen a filing February for several that's

fires, at So fair were outcome very fair on it's our but the by litigation, to through be it as who all we'll this be having we fair has people of to to our go team all it. continue impacted going to And a focused is customers. to work

have and actions demonstrate good as can to as PUC. process the taking it quickly And we so the to to able be that thoughtful prudency we but needed the to we of want a sure our do time make

and we I an evaluation. to last process do could if is able comes kind completion. to resolution a maybe offer we most able of think be we the The also all touched Because have just up will and and And final But application. with one it mechanism we comment. go It this true-up more these we when a the process Pedro in through that will -- thing, go TKM done of I certainty to the be creating that's getting a to his fully have part when with we're processes, and through, that get with have important commission. on is in

as our as claims through claims the perspective, we getting the because it's possibly that will completion So quickly to certainty. the from create getting and can

in for claims grows meantime, right, recovery. because But eligible claims me the mechanism are really doesn't or help of not the total capital number the those financing of in cost Okay. of currently here,

up? the on isn't rising trued interest that So Is those expense

Yes.

we are of will going -- the claims application, interest cost -- just our for we And of So financing other file expense highlight couple with we to are is for claims as recovery that recovery another in to and the -- associated well aspect the payments. numbers you.

We about are resolutions. XX% individual to plaintiffs all clean complete our of with

will, moving are we through you So the pile, if expeditiously.

changing Okay. And topics. then

well, your 'XX, So you or lowered projections -- 'XX. base 'XX rate

'XX. -- out, So and pointing beyond mostly base, the you're obviously, upside to CapEx on that rate

I've components, color. is guidance, And in behind last more changes So $X.XX And just the noticed quarter? just if the one of some secondly, could then provide which your in the maybe the some that? details in increase more you since

your And two Sure. questions actually, it much that related. out are turns very

term. that in very It's project storage just around the near timing seeing the the So utility-owned and moving capital in of shift the is payments. particularly a you're those

second seeing your really shift those question, shifts It's buckets. rate between base on before. Utility has base the a what in AFUDC So rate to slide you're was earnings on storage between related modeling and X that consideration.

construction in work it's longer. Now in progress

you you were them add just same quarter. see the numbers, as they back last together, So be they'll if

it. So that's of piece one

year, one out projects are each have just shifted just going that's is through we our capital of that's piece program but other still it in transmission the The that out going year. the X we on shifted shifted permitting on process

of overall, through 'XX, last bit that you're the program still same little the a quarter. as seeing And for so the 'XX But why, it was period capital is impact. that's

is question from next Orrill The with UBS. Gregg

tender Is there you temporary before preferred get sub-note financing? to the question. oriented financing detailed a a for Sorry potential the for

this it address is Gregg, Maria. We can ways. in different

some after I other or we offering, some the that security do by we we the of the preferred have can will temporarily. we we've equity documents, right objective and operating our tender, think in then some content other equity either think how documents finance and stock. the replace could bridge -- the sort JSN it is will of note But made I using is that clear overall we securities in content offering

Levine is question Citi. with Ryan next The from

clarify Maria. To for question one more

of now work? I you in through equity benefits for How to offsetting clarification the mechanics remarks, walk And sale? of telecom the the that can and why the And given content. your how terms does you tested asset of In of think customers?

Sure.

So a couple things. of

now. why So

about our been we I at portfolio might might discussions -- things different that before looking we selling. are think have we consider in

we that. so doing been have And

completed And we've now are attractive why we business out will that think in this find and so these are folks assets who is also our and that attractive. analysis day the day that in

And that's why -- why that's now. the so

taking and those time actually, this for accelerate when numbers, the think XX% I constraints that the this is company see drive that tomorrow assets. By for term. the filing think we customers, portfolio these of as are the that about and the now, able in you is at you'll we them about our XX% other have, benefit you round can of concerns we'll during that a value to action Customers into good to and this be that we of do whether value not, or overall affordability look customers thing for is share or the helps shareholders. near of benefits the sell this,

now. why the part shareholders. probably the the what I Was about and what for Ryan? question of I for is the just element And another else customers in there something comment answered parts think So made

suggested in [indiscernible] your XX%? kind of In terms you prepared maybe -- of the think I equity offsetting remarks, that

Yes.

and look we program. opportunity we that 'XX, point the program, using that about Obviously, programs. equity the mentioned regulatory some equity be maybe otherwise could of you year because the our issue $XXX think depending we offset there's as if on million or commission said so proceeds at the to we're there our into see when what this under which middle to going earlier, something determine XXXX, internal about internal our an would you've down, at I a path that of can goes So

is with Evercore. question Michael Lonegan from next The

some its a rate Panasonic We So there's EV about production. your battery there's recently electric been saw cut territory. high in demand concerns service Obviously, adoption vehicle slowing.

was there an within your You have associated thoughts the if period, or load you that? could color a on would provide I wondering share growth that be slowdown the planning with supports you investment any could whether your risks EVs. on program

start. I'll tariff. you have Yes. Steve this Powell, some thoughts additional on might

we've is think, referring latest I in probably really seen, of Edison there through something well way, the know since a you're articles There here is which together after California. a used of one That's in strong the Washington of broader important And of new that IRA, that, is territory level. credit vehicles, tax California. really terms a period the slowdown had across our here. could are think to by electric that there seen I continued not I've and elements something of as but the the for the right, support saw. EVs continuing I at $X,XXX vehicle also you're already I introduction electric tax in be reporting advance national come really that right, significant press, for pickup in in things helped number only in we pattern the some it's the First, the $X,XXX credit,

to I in So paper pretty it's you expensive, white Countdown reduction. for in role And GHG the like vehicles terms with models, damper valuable electric it's of loans here ownership you're for interest puts cost that today, it cost look, the total and -- ownership probably how than downs. reducing consumers a that gases. the the lower-cost engine have of for the greenhouse total I of certainly see market, that. look combustion clear of a think and that vehicle EV for lower bit things value is But guess to similar a on like vehicles. certainly our when And XXXX a already trend, environment, clear making the of to play say a But temporary think is long-term makes to going vehicles EV electric rate higher you will think is little at just any more deployment also ups that

baked could been planning. I impact our think have and significant on into our also asked buildout You infrastructure growth rate And we're the case. that's about now, seeing right it our

So it Steve, for over -- but the me we you on growth. let to on thoughts customer can or -- system we're turn impacts this, and following distribution around the that

Sure.

in in of Right vehicle being in electric. sales vehicle sales we're seen significant new adoption electric. about of years. So In state hitting last new obviously, now, EV XX% the growth we've number California over the about were of XXXX, X%

we've And for and so some ramp that's the been that We've we planning for continuing. quite this time. up see seen --

long-term into XXXX our our the So where growth in there our has planning rate plans then which electrification case, in from portion big in plans the forecast, our distribution growth. This feeds load grid. driven load what to general And load of XXXX forecast. a informed distribution, that's around been program our baked is

the on. the planning that's not Both then infrastructure are out, it to so teams it. but our and And circuits what just build focused starting support to

because see light-duty Aside segments and Particularly we from way our come heavy-duty by ports transportation to the really territory the are that that's vehicle meet And those inland. and can the medium- from the we looking chunks in range our that in teams the out so different pockets warehouses large demands down growth the solutions all from side, quickly. in where the they further demands come charging. at

to and demand temporary through us the we're of mobile do help that So enable like out accelerate mobile we development more that places circuits infrastructure it. and how from to substations build ahead get substations at solutions to can everything batteries looking bridge in while have we

seeing that's that are to growth planned growth the certainly meet now, for and coming the So we're ahead. we're and right planning able we've

the Steve out term heavy-duty at really include think you're right? that step here, to passenger we point deployment, over rate looking great Then when when made the technical particularly in And temporary fleet I case innovation about a to for because, medium last a neighborhoods. think that general critical chunkier, it's and equipment, that's equipment, is the mobile spread request vehicles being

working make we that's meet so team that the been to Steve have and where can sure And load. and how

dear maybe to and but than us. Michael, it's want near you So topic a it, more

with David is The Stanley. question next Morgan from Arcaro

you would there? or through away into in changes thinking its play forward? your rate you the anything they've strategy perspectives might rate and your case, as Any rate read PG&E's had but I process? get go if It's Or take across just CapEx in on yet, done any to to as your getting was some GRC there's come you just perspective just that base case. challenges or not wondering go curious approved

Yes. And thanks a David, give I for the you quick question. maybe answer here.

starts I these company-specific. situation-specific acknowledging with rate very of that think it and each cases is

of in for case that know PG&E, had big on that they amount and rate in our their much lands on emphasis more to at more high-fire based in through our risk been that I as example, the additions a colleagues the have past territory covered graft the fact compared So forest undergrounding areas, have can the so more SCE, from which land conductor. and elements the addressed has have be

needs X,XXX different build-out application, to miles 'XX than territory. the the of with our territory in around post, in covered continue case by XXX us rate Very miles 'XX seen MTGE undergrounding. completing conductor of you've another So complemented per

focused -- difference. you from the fact that the time, out case. PG&E the on in the have to rates relied part of and that escalation the And XX% fact, The compensatory to escalation out So that proposed fully hours, At the saw are comments provided cost a of comment thought that there. hard to requested, of strong are an the mechanism common. needed in structure. essentially only allowable California called we rate provided costs on elements saying important as that abstract is full PG&E in something the same in filed that Southern given a for we alternative case some right, topic be to that decision -- payrolls escalation Particularly the XX% there it's is be order include,

certainly Maria, utilities. significant there's anything I closely. be team recognize beyond to we've the in some we're that's that of And the one the our rate all So the companies. topic more that that, But just interest in case you because will differences said, it's add? and like watching across X situations watched for case common a want that intervened though,

Yes.

to everything even comment actually rate Just case underscore that escalator. a every situation-specific different and is mechanism. of example the about is have very We kind on different, last Pedro's escalation

the as I view. rate -- as cases a there's it's general think really in like to said, said, I not across different Pedro So rather, read-through our

It perspective. year. then project? the -- for was Got next see, store it. and that And check Was wanted let's this that also outlook. related I appreciate CapEx also Got I decreased it. the to on year to

Yes.

around well, to and entirely not So it's one -- stores. related of piece the 'XX. it utility David, owned the That's is but particularly related 'XX entirely, to schedule

It's transmission around versus more of then 'XX. So start very supposed our that near that we're be projects future. dollars will different I to piece have mentioned well. we moved larger some as the 'XX -- spent that transmission schedules other in in out the one slightly a And year was earlier essentially

and $XX the billion at within that of period captured all $XX still to billion we're XXXX, through So still CapEx.

with is question America. Zimbardo next Paul from Bank Our of

one, benefit. in prepared Track GRC remarks X I just around something first The the wanted the clarify to

a XXXX. in what just of rate into component year-over-year expect of the of Is $X.XX like terms correct? you growth. earnings mentioned that would as per That's You kind share

the yes. reflect base to math, rate Yes,

And the kind some those reinvestments be discussed? [ within the it we Or Okay. should the at XXX at about assuming just think think we this I with range the ]? point, range cost the other, to of capital of you force is that like ] [ that would about $X.XX, versus XXXX? XXX should earnings above then growth in think trigger Because of as

Yes.

question, So mechanism, I'll was it's just interest I it that capital think Anthony, recap said of I everything to the have rates. a in asked saying earlier, first What I response, related was don't was to off, the take of I want cost we but who points. sort few --

hedge as and against more hitting the by see what's We CCM. have we plan We good that The rate our assumptions. the for our marks the of financing CCM, going embedded a that rate forecast rates completing done movements I'll you really our job around have a recent interest forward, benefit underscores interest it. again, shared in interest that's driven with say beyond the XXXX, volatility

to Second the costs the course, benefit operations. year our customer, renew part and we benefit for of in overall look opportunities of of for it year is that do of out and the

are lock-in day. X the opportunity years as to you we I an is sure managing customer the benefits, that foundation so on business see we ahead have that. in every more basis. are remarks, forward, to a can do If share said an of certainly prepared benefits provide If we an during accelerate with X benefit accelerate we'll years And We going go-forward we plan we us. going opportunity even to see -- work. for The

built When really about I have would And outcomes. the extraordinary a the more was kind questions year. mechanism an saw of I in the you had think to potential with, think we you had rate is the mechanisms, this right? on This just report of I what precisely add of last may yours had I or issue situation here. have of of the be kinds some I It's Paul, broadly sense want cost to clear been on capital speculating not here. you've case what mechanism that happened deal movements interest where

to parcel cover it's cost think I appropriate to recovery. what very and will signed be of much mechanism quarter provide the

So mechanism division, the static conditions now for. clearly to expect articulated was fairly Energy that we -- she a is heard are the the to very was this condition given responding and that CPUC account similar the is Maria the question meant very mechanism by mechanical you Anthony's earlier precisely at would when or of that's be say strong, why to the approach and

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

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

You disconnect. now may