Edison International (EIX) 29 Oct 242024 Q3 Earnings call transcript

Good afternoon, and welcome to the Edison International Third Quarter 2024 Financial Teleconference. My name is Sheila, 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, Sheila, welcome,

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

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

Sam, and XXXX was Well, our EPS quarter $X.XX International's $X.XX. EPS in year-to-date core are performance, per bringing With $X. confident guidance third good to earnings core we Edison thanks, to narrowing strong for $X.XX, year-to-date share afternoon, XXXX everyone. this to core

EPS our to in confident X% remain we Additionally, delivering meet guidance our a CAGR XXXX. My ability important remarks X takeaways. XXXX through and EPS to X% today includes

which ability our the TKM X the landscape outlook and regulatory the will GRC, its navigate a application and the to agreement to XXXX. proceedings, regulatory financial decision key of awaiting demonstrate reaching final recovery solidify in through in First, stages SCE a XXXX continues cost proposed to is settlement

constructive core years, is stages on success Gap] reaching the [indiscernible] final remarkable achieved gas X is of management. Starting couple climate-related on [Audio SCE regulatory has managing risk a legacy our emissions of wildfires. the a net by with resolving team over in the of updates greenhouse the our last XXXX pillar Second,

Page an X. update have on provided We

settlement the an our reached of ] the costs utility's to milestone XX August, the navigate a of owners. of the negotiations $X.X expect the months to it proceeding approved to clear complete. supporting about prudency You recently the of complex recovery the settle billion. This application. Once that about we of agreement take framework the authorized which utility you, But case, and TKM compromise claim its the settlement or settlement to advocates the cost Kal operations XX% with regulatory with saw a strong SCE in with CPUC, is and the demonstration good recovery [ the the state a around. also is interveners and It Wolse from [ outcome. regulatory process. made benefit marks to ultimate as strong a the underway, do indication constructive all Customers with and is another significant premature filed ] landscape. SCE speculate just application, ability by

of both These we B A of could cash has billion over the included flow which, CMS several in several on strong clean others. growth XX X the and energy amounts ready resilient XX by greatest numerous our and achieve necessary driver Lima the coming to and of in SCE XXXX reliable, the in the XXXX outcomes, of prior resulted couple GRC the also and GRC next growth. SCE's applications and reminder, outcome and cost to TKM our rapid not will Thus, be operational response our another to years. Upcoming in a year. into for events additive decisions calendar, settlement Wolse XXXX. Capital The our legacy mitigate these expecting As TKN risk of for first the the have to spending believe enabled settlement targets. the decisions incremental recovery will the the we rates happen core $X to outlook wildfire earnings half benefits Trex regulatory regulatory the applications. financial customer is a ensure X, on transition. X substantial solidify investment eventual factored recovering regulatory curitizations and GRC achieved

We the outcome regulatory us XXXX for on also ROEs. EPS commission in X% SCE's changed a strong of commitment enable ago, mechanism confident couple needs. Staying a customers are cost will A of equity with to getting the with the XXXX our deliver investor-owned the that utilities X% through capital CAGR weeks and of to California minimal environment.

applies it unfortunate regulatory on I X our is manage numerous and and only confidence EPS just commitments. said, XXXX outcomes delivering in the delivering and is long-term was business that we we commitments. EPS decision to our the While of in on this growth reiterate believe process XXXX, disappointing. That our

SCE's the last several years. I associated ability proud Moving team's am challenges core on numerous over of to unprecedented operations. climate the and manage to regulatory our navigate applications

As stability. you operational remarkable can see on and reinforcing resilience financial Page have X, strides our we made in

mitigation SCE's increased state emissions the due is is while by will number these strategic though, years strong several This seen SCE's wildfire line home, have acres the its is relatively of in the fire of and now. Wildfires roughly so a wildfire our my high operations XXXX, despite of change. this drive and X areas important, performance risk be the having plan have part of robust flat fire years adapted burned from suppression. always high and Page ignitions with far fire is address this you in climate mitigation of testament happened and significant burned has execution manage several dedication for California, extremely exacerbated acres that To point in challenges, is this that the X-year since the to been risk. To periods. shows average. year And plan our SCE's results climate a initiatives Our teammates. has been industry-leading to the workforce, reduction SCE What risk

hardening none great Importantly, the failure cornerstone ignitions of the strategy. of are the of from conductor, SCE's covered

continue in areas. Consequently, the fire SCE's state reliable covered miles SCE clean lead action. resilient, other XX% its more hardening of their X,XXX than high benefit more we will distribution hardened risk improved growth conductor suppression physically and increased grid focus the California to as well from has also support transition. with in on utilities fire deployed, and ahead grid state positioned to as the Now grid energy of

our Moving reduce International gas bigger safer, disasters, future picture. air way affordable our are create which to is and reaching our focuses change to unveiled a impacting X Wildfires needed acting the just net is of of plan recently economy one Edison analysis X risk International's a health, climate-related reaching to builds white what latest net California cleaner is previous carbon of on emissions Edison neutrality. management. We XXXX on our and climate The more commitment. pillar California's reach paper, with and for risk by of X net that life. core X greenhouse net climate quality reaffirms is publication

plan on XXX% power As this is around X, enterprise-wide power as you are centered customers associated carbon-free delivery. Page to with SCE's see of delivering emissions XX%

reduce In from chain. emissions operational the reducing those supply primarily addition, by we will

preferably scopes Lastly, about decarbonize, we need project will solutions will or XXXX. of those all offsets. neutralize emissions removal we to X remain high-quality carbon through emissions in million fully To tons across

is the weather. and affordably to safely in approach our emphasis deployment take analysis clean power any need substantial of firm generation will and supply XX/X key state reliably always, we a of As that findings. point A pragmatic to

that that must fleet less reach the its new gas natural net conclusions to of as will electricity. big their delays surprising government. one for and and total is in reduction technology investment insurance So me cooperation it financial let California retain will a bottom it that, energy existing clean line The will development report. sector is incorporate the of often. The industry between significantly will economy though maybe projected nearly every need generators against to customers generation the and X, deployment, take costs be by in to her for over turn It see much Maria will effort worth XX% who XXXX. With and run

delivering making generate deliver and year Pedro, with decision stages resolving in emphasize I results; that remain today, another year-to-date legacy accounts front, progress key of In the comments we ability the first, update on solid wildfires; we afternoon. recovering a plan memo and is GRC. to on past confident our final to final cash our will SCE strong flow next we to confidence projections note for and in commitments financial X following which messages: yet Thanks, tracked very costs good to performance, are our like by the third, of beyond. I our would financial in and regulatory continues XXXX pleased reinforces EIX's year SCE's my second, to

review a third with brief core start reported of Let's EIX EPS quarter results. our $X.XX. of

higher to grew claims these of authorized see can Other XXXX year-over-year rates was last CPUC X, EIX This track expense the variance with in growth EPS Page drivers authorized higher for As earnings primarily with on from the offsetting GRC interest analysis was due and wildfire you line Parent shown associated by year. $X.XX. was payments. period in revenue the same higher and X return. Partially core quarterly of debt

show base EPS largely quarter's and a SCE's and rate driven benefiting X disclosures. and forecasts, quarterly year-to-date is And from by XX timing. Pages last capital bring Our performance execution this with are results to $X.XX. consistent which O&M, combination strong efficient of

We follow the XXXX plan SCE's expect in GRC. our will update decision to final a next major capital

more billion these system, GRC projects X.X FERC of jurisdictional application billion on supported for next-generation Both the the plan. application in Combined, to working end In has resource development. to metering the towards planning to advanced of to upside next FERC the addition CPUC its stand-alone also are the expects capital of and $X which is months. Further, CPUC incremental file SCE represent $X than XXXX. transmission current our expected the by X enterprise capital filed spending capital SCE be the in investments. investments over utility the is infrastructure

to Turning XX. Page

and a application follow securitize XXXX. In on received that, cash new significantly of Not final in The completion $X.X flow years, total, $X.X will strong a since approval years, already that our we will to settlement about Following request you the quarter's balance SCE only TKM In an the to by next the billion settlement, file XXXX. credit regulatory has year-end expected notice metrics. recovery. couple the outcomes agreement. and on over targeting will this billion of and sheet the XX% financing strengthened remaining SCE the and will apply should approval regulatory item. ratio settlement securitization of the to decision After expect the are recovered a update, recent TKM to of the agreement, decline XX% also of like costs, accounts now the recovery to the utility of process. I through individual resolve GRCs same wildfires. Wolvey going to activities to continues previously as work net agreed XX% outstanding status forward, we disallowance. simplifying see for swiftly plaintiff demands would them. Under claims built resolving the TKM into received amounts over SCE's SCE time has expand recovered on fully memo but these of now legacy the

proposed claims this For filed. Wolvey, losses estimate settlements was recover in date also with remained the additional as application a expectations. after paid the of to SCE line been unchanged The have total process best quarter

XXXX considerations. XX guidance Page guidance. EPS and to shows Turning our core modeling EPS

We comfortable customers. results With X very forward with to also performance we remainder year-to-date based our year, pulling for outlook are the the and the guidance strong with EPS are O&M months which $X.XX of $X. us very of us opportunity of continue pleased for behind to on our narrowing our the gives to benefit

Page to XX. Turning

for We couple considerations modeling XXXX. a note have I'll refreshed items. of the

of the reflect capital First, we've to updated EPS CPUC that cost Pedro decision mentioned. rate on base

Secondly, continuing and the financing favorable of see benefits. the management reinvestment pace O&M flexibility, by cost driven we trend,

rate Lastly, the discuss our this TKN let macro into to long-term agreement forecast. I which benefits me we the our would refresh, outlook. recent incremental that a now At guidance have removes the level, moderating have incorporated that the financing in we interest from the years. I emphasize plan headwind to faced updating for settlement want note will not be and environment

proceedings in tailwind. Additionally, legacy wildfire a cost recovery the provides

Looking core growth. driver at for operations, our earnings SCE's our high-quality the GRC is

decision CPUC our plan, mentioned, from the settlement. the update growth factoring XXXX financing year. SCE capital we the decision EPS CPUC first gets half on a see of will EPS TKM we a are final forecast, GRC, hoping plan, Once guidance As and Pedro to in in next the

in There X through confidence to our by core growing and guidance XXXX. of factors. $X.XX us to EPS gives X% what earnings So XXXX are X% achieving key $X.XX,

positions, in of GRC progress be is proceeding. made would case the SCE's on line and its strength intervenors forecast SCE even of strong base throughout with First growth X%. a and rate the range based SCE's case still

decades. and year year as Second ability to last is in the demonstrated variables out in the our the X manage over numerous business, we've

is it not reiterate from incorporate our the to important settlement. Additionally, the that upside TKM guidance does

that XXXX targets, $X.XX. I'll is that to core annual enables upside to discipline $X.XX, As customers. strong transition. That not leadership XXXX back concludes given but continue conclude beyond is our you the EPS clean total to us benefit X, ongoing energy key deliver saying a that cost and for only Sam. about saw financial on Page our to my the you, on affordability by financial is and component remarks, also SCE's of

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

first Our with Lonegan Instructions] will ISI. [Operator question from Mike come Evercore

rate that So of on revenues? was decision in proposed the around latest it case your your trigger general California. the you and to We've rate the attrition SDG&E and cost case, on wondering affordability formula in for if share saw concerns gas just change I cut a context seen in mechanism in thoughts the capital how could

Appreciate the think made folks me we've in places. And Yes. other to on call. start by you comments reminding let Michael. Thanks, have I

look in from I California we back that last the onto trajectory quarter, 'XX. at to 'XX below Edison, said we going or see think, As Southern for rate local levels inflation the at we,

So think affordability key. we is

in so that the years. inflation number increases other of rate delivering by embedded can we general several end case offset of a up over trajectory We that rate the around terms are fortunate items that in the next performance are

the times longer remarks, that, at we that over my that at Looking continued made electric point going the beyond in gas, stress we know to plus terms quickly the we as and I that needed more in you of look using at XX% gasoline electricity. investments look customer as term, down I see is to X% spending the be total continuing electric pressure see will We average because put driving share the bill bills XXXX. But see energy levels inflation our rates. We natural beyond their bill people for transition. our clean for energy for of the the total on the around likely energy total household those electric real period guidance which importantly, X% other to XXXX income in And their they're today analysis is by XXXX. bill, wallet, amount of that goes our increasing

I answer we our and give and case So as long-term near-term you are of all in, educate those customers the a policymakers. and a both and answer make our can help important

Yes. Michael, maybe I'll bit. just little add on a

affordability of right. that them. When consistent different, is to asks referred is every a SCE and filed case being application, every theme And lens justification. different, affordability that is So of it through its it theme. you rate you're proceeding all definitely but affordability its all that had everything in for

they into In periods. GRC GRC that they between fact, savings accumulated introduced the had already

one response note to have intervenor about rate on still our think factor in positions is really growth that base. application rate X% important to I even a

early interveners seeing into the of long next in So time. from we'll and and we've year. noted rate on for case responsiveness had the focus a part we decision it case, this integrated think get We've our we you're affordability as sort rate general of that first

sooner growth expected. about from secondly you've load talking me, than materializing been And

the potentially GRC mentioned approaches through applications. funding pursuing in You've CapEx alternative or reprioritizing separate

your around this. what thinking wondering Just latest is

the Well, the we some already benefit time of have that seeing forecast a repaired acceleration in when of period GRC load. having in we're

so think have is I good certainly XXXX, as And look that we what a beat at on needed. we

final what what case, and there. the into rate we of years look embedded foremost, in decision see, first we'll levels capital and get the As later we

capital the case have in couple it need the to GRC SPXXX most process. avenues. And support we needs. And decision. or mechanism mechanism continue we determine capital to There's to on We a reprioritize that were the different including rate the if later beyond deploy the pressing against to ability more

-- high it's up distribution So in distributed resource high the energy -- come proceeding. and

prioritizing of But So good for piece different right to we're a press from think on couple now, avenues. and or there. Maria rate add I focused Sam? Anything a to continuing outcome

will Pourreza Next, Shar you Guggenheim Partners. hear from with

the instruments rate the TKM of balance memo of of wildfire account EPS recovery flexibility leave Pedro, taking $X.XX the So settlement, junior the beyond TKM supporting terms -- the from subordinated. prefs that just and some of run claims does maybe kind for room equity-like improvement, the like the sheet were out in plus the

some Would are your equity? So right Could improving. the plan to down that metrics of sort be your of now? you accretive take

the for thanks Shar, question. Yes.

XX% of foremost, first think, I to to debt. have and So we the FFO XX% framework

balance as I think look that the million we the long solid first on would thing the that a said equity our plan not at we're year $XXX necessary. because be of is we've in might is sheet, that as

As we we looking move the will at forward hybrids. in time, be

that's we then really beyond don't actually into But definitely looking and play even until that at. be come an I think that. those opportunity will 'XX

Incremental it. that plan, not plan you're embedding So right? the right to that's the now. something Got in

a We'll at look as Yes. those take reset closer dates. get and to closer that we

assumption as how the guys clarify slides, pulling contribute operation to then the calling in reinvestment that the of And some much is for that of 'XX Great. if note, Okay. of by was ROE that changes $X.XX you the variance offset kind the benefit positive financing in planned out back driven originally can there? in you're you

Yes.

provided. situations. At business considerations. capital sort a we've So the final be thought of update much We obviously for that. when But level. considerations past base we've did something those granular high-level time remember, this done at a same to modeling wanted to guidance, the the that number high-level because those That's we since we given the math cycles update operate that, we few propria got that of of are we've cost would more we the gone on decision in a through it we rate that the

a rates business. rate and variances different We've ago. well. benefits the number a out looked what the number at We point, things this many of environments across underlying board, we in operational did of but we And many, see costs. do many, at One those years of of through as look financing across obviously the a as well we there worked many put assumptions both aspect took area elements at the cost we was other interest So the spreads. as in terms including across factors

We're benefit is thing and that XXXX, the The further rate. every pull quantifying us mentioned have work lever thing the gives as down but O&M in of looked we we that other that's the that with did we which XXXX. of the really reinvestment same penny at, flexibility think to sort to into every net, through year earlier flexibility forward. we forward XXXX to not have I is the the move did even as I that that, customers, went we process the that for a quarter. costs that we

to And covered our sense you commitment walked our and a I customers XXXX Shar, our commitment of away the with our you to targets. hopefully, you meeting stress, Maria, managing well just all would of XXXX and for around business well. it

come question with Our Crowdell next will Anthony from Mizuho.

quick Just, I guess, X questions.

think update TKM on At you think about will you plus we'll once GRC you an wildfire I in [ clarity GRC a providing 'XX. ] X get incorporate and giving have time, do provide that proceedings? update the and the or decision talked you -- Woolsey

of thinking TKM the the So in the GRC first schedule for year. and we're half the

do the So Anthony. those both incorporate of both Woolsey, it's early ability in to the we'll hopefully, product, have

later will response recently. I filed bring the that just conference prehearing their -- have this through we won't Interveners relatively application filed year. until a think we us having

or a any saw to and process. But a weren't we is way incorporating get Same going what the settlement we through the work I Woolsey. to process thing TKM that decision. where we want a we're it until So from litigated we treated benefits happening same for emphasize

and just numbers. the think we out it's you'll if just strength our straightforward in much keep see underlying that the business I of more

or cost were set, how that see Great. as happens though there investors X-year happens year don't capital may the we it's mid-cycle Again, And not kind you But whether next challenging question, we some even to but answer, mean look do was unless of to change. there my on just we give a mechanism thought unique trigger just concerned you the in event. And last as cycle, [indiscernible], period right maybe change capital a the mid-cycle going word, the capital environment, guess cost a of investors of assurances I trigger. cost this was a uncertainty that forward of that triggering a I that the the another event shouldn't was wasn't of the a know what forward? and really expect we macro something in

Anthony, in you the investors, take wildfire comments us in saw started and you disappointed AB work I And importantly, around work And making CPUC let the so that aperture about specific always the when sure I me it. we of uncertainty looking strengthening down right? And we're that about through framework and of decision. to picture work broader that But in at last state decade, were through the say saw when the the of did regulatory my I'll the framework you through a the of hear on the so on California, whole me talk XXXX. environment context broader through we that. a start remarkable as I the mean, seen you've one. then of think And over point have the here. bit it half put implementation we right? And that, that, this, and with I know with you broad lived sit period

the light. not past financial to is this you're of We framework so number of going recovering constructive state a I to CPUC maintains here in from memo of that table 'XX we number we're environment. And that of few of You've that a regulatory committed seen there. investors. We're 'XX they other proceeding, a will robust seeing in capital seen you've what to set And But overall, a to But the right? gives clarity have some the X,XXX, came we've get we as and turn them. come a certainty we out since terms the that's disagree expect highly where and 'XX, the in think to got bit bats do, to would think that why It proceedings. Maria misses very been and going going few baseball continued I'm with strong we couple having nobody now, regulation for take see number that the right the be of a decades, supported for there. And last thing of has of of meantime, premium health in and sports the work utilities. arguments looking things about the talked over accounts out constructive guy, CPUC is rate decision. to a case need general a California a it been big been of things the but in a I we're from through for big cash a we'll

You very set call with outcome TKM constructive on the advocates settlement. saw the

York number points I the number go us, of said New at Imperia which are what know continued I of use other around really So about Dodgers. the here. And again, since in you're the a proof you risk of sports But a analogy, of since strengthening environment right do. I

Our will from Steve come next question with Wolfe Research. Fleishman

Alex you. right. That's Thank That's all right. all Pedro.

of both So the just year. toward timing color just went a and Semprus the of on -- the the and little well kind maybe GRC because into more cases PG&E end

issues more color just an I just differential guess of get a settle to to Just -- we there is little on you half timing. the before in a there's Or timing because more positions? first And maybe order? hopeful on are also, of less chance

Yes.

ALJ GRCs really been all written are as et we've a on their the decision that cetera. the is past write parties there other half the We but certainly seen to not meet helpful to to There everybody that of got So issues, year with are to that. clearing bit very time think you're first the Steve, on documents a every decision. now schedule. At We the and days it's sort ALJ resolution. proceeding, the much but staffing works through we've everybody few think get worked the extensions, or in moving through it's with I here submitted, according and with everything, people this a deadline. the briefs, is where the all we're more of that finished helps always the And point, of there waiting think little when proposed also the

the we time right first year frame for us. So now next think looks of do that a half like reasonable

things. to reasonably terms In behind settlements, and additional as you have in are discussion the number from items, different some have now know very to final of settled for what different of us settlement the helps we last is These difficult. But actually an proposed of decision. which remaining of typically sort overall cases of and settling complex terms is quarter, procedurally, streamline that is a

half So we but amount first next items, in we'll through of decision of we've for do final think year. moved a the that waiting fair be a

affect won't next Okay. the the And guess, for the... 'XX then I probably which, that just be the for end capital would guess won't of but X that I missing 'XX, piece X years, be the till cost decided of

we has of those So typically, decisions of getting out track March. commission year. end will And record a the file very in the long before the

all in cost We've thing from is perspective. talked differential of into term, which the to work about XXXX. fact, the be about the the -- growth as really phrase and California through first commission X-year past, will qualitative kind talked as to same we other file kind we've said IOUs jurisdictions. I'll of year X% in the the So past note, what well coin though, issues, the that of look get because capital all the the X% at as with we of the longer the that we environment. premium California we emphasize perspective a to ROE about cycle. We're they, in the going you're continuing of in have to annual know dealing you different has And compound both think as do to the you the that quantitative that as and well a in that consistently relative proceeding

moved few past so it over the around a little And years. bit has

are we confident we business change, are today. folks have manage sort less been the we than those understand but given magnitude the have Some regardless. been we're lines, We've sensitivity today, of can some some where that than can so where more along

next Our from Citi. comes with Ryan question Levine

Q, couple ones. that and trust $X.X your drove Edison. quick to plan? of decommissioning that What estimate are to you there In financing the what highlighted net change to billion A was impacts to the the a nuclear

Sure.

X everything. refreshing the So as update do be years, we of part of look, we every we that's X-year cost our And regulatory that do the process. ignition will

just what's from of remove things spent the the about government fuel are Some will that the site. change expectation the federal the when

the So things in the very impact plan. does that on the financing go it funded, change no has and into all -- decommissioning trust mix. fund our is of those well trust

maybe any Okay. And outside there capital color of benefit terms outcomes? items a some the of to Is of then in you case the cost -- the could XXXX. offsetting additional provide related around of follow-up or rate

Sure.

it's of we through terms what in those bit little how and at call. looked managed the said issues, on all a So to granular earlier of akin I

X in the had lot of from originally as good job a we a took first time around doing the assumptions a an numbers we to had from environments. find would. we we now, we better at financing plans. And portfolio we are over various look do years, there rate past a announced So interest we actually And that done example, perspective, at, than the managing we've assumed which through

and XXXX, left positive finance go as when we well can we but next well too into have as of expectations timing for forward to manage the anywhere through both year. When don't about out like think look around we some reinvestment we from of about always can next market in the more levers like we're And we are as, again, maintenance. timing quantum that that about the business. we year, As evaluating that look what more and range to what we much the will the on investing market the inspections side, projects think

create when So the manage cycle. next potentially will into to that we case create telecom headroom. accelerating around things into like increase of that, forward related frankly, can some capital, and we move can faster the things the we timing we were can like. some enhancements we first cost pull in XXXX that changes some in that XXXX the some benefit announced of And as rate to We

we Next, Gregg hear Orrill will UBS. with from

detail-oriented of scale filing just your system? Generation just maybe for of would in on that in how that and at long planning could of another that you the the resource next What's a gas role question. view top if the around Maybe involved California, And terms all? be in that, enterprise would question

Why the we Greg. on Steve with ERP Thanks, start piece. don't

Sure.

its on NextGen program technology it its and around we current nearing of our work changes going well chain underpinnings organization. We're is kind to those across life of resource supply through solution it's process point system ERP a now. end where our our focused end management, the -- analysis And next the major service. So call right functions the gen, as both heading as is enterprise of planning or

that's so And later decade. this

expect we that the So and commission, that we're the basically that implementation. redesigning into system go ERP we with QX to Right in finish as generation on we're so come filing up. of the now, focused to finalizing next

effectiveness I lot It run at of to like nuclear change storage, those needed. And of then effectiveness can in will X that X right? goes number really next-generation would How a amount X. in over could emissions generation And demand or gigawatt can into some frankly, net system that operate or but flow make conditions? work, stores geothermal of probably gives does a a for reduction comments resources look or generation? capture same piece, interesting resources here think that the law California about I X flow XX did gas of kind normal because do clean of firm what in? as not -- with just What the [indiscernible] took how balance think need require gas So comments, on net they carbon they California. And this sure picture, to could gigawatts power the the you is firm paired analysis. It reaching be that, clean saw what's supply included level referring in resources and gas right, that [indiscernible] the my across reaching was, important of power my a mentioned of at our solar was you really you're But Gregg, be storage. when pretty on team with XX/X of

And and be it have go and of also all, a part And and any number We you clean development the the will for still ratio lots are the of curve. right? siting up is solar technology though, resource. need storage, you to will format challenges an not resources then permitting but have that challenge, They of important picture. The those need maturation mature.

a policy. XXXX. uncertainty L of ground insurance that terms we steel in it's of this the So currently there's have in that that and meantime, getting lot big generation means all the between the exists gas state. the natural In the And in

important expect message and running permitting the than gainers we might be in where we from policy at gas fleet less resources our insurance and analysis, a for and those potential would of scenarios. But scenarios construction deciding of those estimated we look in lot see really they like California part existing XXXX. gas and X% where as to something the again, hold generation I see prior greater on in coming electrons do generators, particularly delays deployment that see higher that as its to even technology load, our is, we So would X% between today. the

the covers that hopefully, Now question. second

Campanella Our from next with come question will Nicholas

capital, positioned 'XX So seem absorb I to and well know you and a this. cost questions lot variance guys and of all the of on

like And we [ XX that think there then should ] that? power? consider So about to that X anything into of midpoint and doing ] [ are we kind flag kind when as to TKM? you earnings wrong offsets adding [ kind 'XX forma Is X there it and ] kind as $X.XX that tie Is just it of off just we pro that? would of think 'XX as X of with 'XX growing about like to and simple up,

Yes.

$X.XX is So the the rate. run

run full out have get $X.XX but there because rate 'XX. in variation have -- slight rate decision is year, year to the as run is could the it in you sure, first the The that. out put might the during past that get $X.XX when anything we'll a So that's for you on for you additive not we've we don't year, exactly know the

recovery. then Wilsey And like key I for? the request, what different TKM, got than talk kind you you that that the things started the kind in just XX% on but TKM, of about the just can of just to outcome XX% are know watch you've what make can

TKM? mean to Woolsey as You on opposed

Yes.

stay answer the Nick. level and specific. high is will Thanks, But they're I'll all line is Yes. very different bottom cases, here. case pretty very this

can't number something assume fire, we it's whether for Wooley TKM and else. So look at is, or that number that, another the therefore, the

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hear JPMorgan. Next, you from will with Jeremy Tonet

Rich give work broadly, Jeremy. of right you? the the update actually the billion on CapEx in might of me. plan? when when spend your plan base of do jurisdictional be those Sunderland How And timing then going just next including to that the if be status X more on It's FERC one transmission Just for and $X The and for that that stuff, applications, that? you'll if sense are funding is you sense on what deployed for across and it a any maybe you CPUC you're year, have $X would FERC billion when be think on your

yet applications, working I But how to on And the that's you better to a amount we we're still through when about roll post FERC working do bit into first. Typically, know just and the the as the the the the the updates on close it of let terms resolution haven't is, the talk would Steve XXXX. would timing spent spend our why and it that's details. the we're we Steve, will don't and of that, I'll why So plan. towards be that rolled that talk all little about timing the of details. in FERC we much get will because we note the side, of we and but what filing in plan quantum

Maria XXXX as through where are, CISO that's period. so outside online And over awarded transmission $X Edison 'XX generally, XX those was in billion. they the incumbent mentioned, 'XX come yes, So projects about plan, worth projects the

So project going is, the partnership there. In spend And data that LOTUS same most think that infrastructure also to in I is Edison happen the project that was is competitive with XXXX. won there of again, out online process, a partners.

And through transmission takes the processes stuff built. Public so other and we'll get the be it with working approval design all Utilities the Commission, to

time, projects continue to out frames electrification focused it's getting long the of think projects, so beyond. as plans site will still really very licensing come get that in accelerate also in take X new as with the to [indiscernible] the needed we're meet transmission time are the decade well a growth I important why note to the on and improvements to reasons be because new that next it's all And that required long over to resources they and help are energy the growth built this help projects as and

Arcaro come from Our Morgan will Stanley. next question with David

become now there might when I'm Is a potential a in looking process of more discussions just year process? here. wanted on versus for Wise the up those follow Would might terms to at frame that for the time realistic just the settlement? be where Woolsey, in watch from me a Let I TKM we

Yes.

then scoping prehearing conference and need ALJ So you'll early just schedule more out. expect our it schedule. today, then that definitive we'll would November for at the exists schedule it We And of we to to a from the memo. give the apply you chance an to probably as that XX, get December. Then the proposed would and responses on to least wait overall as interveners, view that a protests Woolsey where that we would in get lays is get

or what we a We single that. they for place quite litigated really did wants a volumes settlement outcome one is there setting be would et with look phase parts SCE that an reached own testimony really the stage the that about conference, of a Advocates, not set scoping with outcome. did that's TM to or on of terms with CALPA but the the the having memo have their a developing in to participate and ALJ as in even to testimony, of important which an Obviously, you was for whether the that's for aside a has Cal TKM. forward settlement important exactly few of file asked submitted schedule, a memo, -- asked end look we cetera, interveners get settled time date we scoping important is XX-month either TKM. But consistent really the

really And to be that's looking what so for.

were I plan? would would next those the and up When near processes hitting months. guess, it. ERP That's the in sounded on then roughly it -- like Got when appreciate end curious it. term, clear. coming or XX was how the Very CapEx I And helpful. filings, I Like the to just long those that. AMI X be? Got

in in for be XXXX. even would spend you'll But projects, beyond plan metering CapEx the years. for those there X next the So project, see those projects this particularly

regulatory length time And it's months the kind of of it, [indiscernible] process, the of standard, call in also XX for the terms probably

with Our Seaport. from Angie will Storozynski come next question

So great.

were not and or the a services some interview those have is should just about if in cheap AI, And with you, mean, wondering, how I'm again, areas just be to in even it's basically purely there have I your data to hoping listened not place So place impact demand-driven question data additional rates. But that I centers, prices plans. related hyperscale that potentially the you because California, will your would center you where not those increases mentioned California if to electricity with are I electric flow growth some growth.

the that's to they that based number nonelectric that's that going of your customers that sources they're on if rising electric about it how And of you just an if the number look would feedback, in the see. one. And bill to actually would argument sort offset at actually notice there be energy mentioned So two wondering other decrease customer the users. costs I'm is, for your end

have Thanks, quick both Angie. And more to a these. I'll one Steve, do might add. you on of

data you're right. On say, the center,

we've commenting on this. think been I

some You think are see in about the hyperscale probably of the in California. big it don't I we terms impact way seeing centers. And AI,

that you latency a that center AI seeing You data providers growth, probably are closer in of search some by are the the so here. centers the But big seeing the training put issues. to centers used I don't think see are you the question centers, the the these are when and question answer -- we engine. Typically, minimize to right? you having because those load like hyperscale can inference

are a Southern large as increase center the you SCs presence see center data might what in as And not applications territory. we have percent in dramatic California, so already fairly seeing is -- since certainly It's we data a state. in just

is the are quarter. All that cost. by really driven on is of some reduction about centers share I that forecast point, energy on appliances other hyperscale there, have when in increase up. And think showing into XX% already the first, some don't the Then know total big commented core, talked demand Angie, seeing last that -- we the in built the you I fact the Yes, Steve, You're that more XX% I the right. it the if at XX-year being replaced. to of built

heater efficiency engine electric an a intended you into workout or that's energy pump a And is when an the total XX% gas the higher, that an so water work automobile a with driving the So water automobile, of heat in into main energy electric right? gasoline efficiency physics costs. driving lot replace sorry, with heater -- reduction

I I ago a seeing natural the Now and go back. tell gas in went made whole electrified same switch but we're think appliances. are are from the my bill home efficiency the we bill X.X I got we wife seeing this our But to to research, that. still we store when you up, your years drop, our who and we And that. when you're customers our have asking customers certainly barbecue seeing see not have saw new the electric

I add haven't education the important you CEA that's do made consumer education commission out because to well think the where going customers understand getting we're this the sure that question of business home of with the would for and with make working right is is, switch broader else critical other one? particularly that's And yet anything the of working contractors on be cycle these, the to that. the for there a utilities, as an working conversions. part Steve, part EEI, sort picture making as with the

most because on gas critical their different the to show gasoline be electricity, our your card I'd today, up and at credit to out don't their they're different and of their bills Pedro, going customers together, that, bills. customer is charges education look there say -- on they point, average

challenges don't vehicles usage And electric -- -- correlating other they some I they're their on up as go of by see see always that so electric reductions and way, parts the electrified see and way, or that's really my you from the bill to in the it some not bill.

So is it customers electrified before make the as actually education and well to converted they've are purchases make thinking usage. they part their about sure one part once of

something How build together. do -- is that The going look can't have we out. to have that that's do for bring we're this to part stakeholders to provide that to our simply It's something work you and own. we with And snapshot continue bring on ways visibility to other have educate as it. we to to we more

also just a picture like But question. big Okay.

California gas where prices So sit. But if that is there basis we the prices, the -- currently there in I growth what natural understand sensitivity electric feel higher any be prices? to for on plan, electric Do the meaningful your to some for example, happens versus electricity gas there is to in big natural were demand or back growth sharply be it prices? potentially you pickup driven like of higher

at The going we're say something planet XXXX. And I increase. getting different very and but X at the keep have the ends you on made endpoint, that needed broadly, California here's I that's has in to I an being think, firm to this, and up might to view number Home the rate believe But heater commitment be important have reasonable example. we how also right, in you of only by Angie, again, because not incentives, a in interesting. it, say, there, same, temperature adoption new deciding is have technologies you least gas that Steve, the you California net is or more could if prices on a overall actually year, be to might when energy they're impact they're right, a variations an where it given way right? And of different there you're those can see prices might different get versus any about, so you at Depot gas changes if as folks if a electric talking sitting structures, factors and brace gas impact

absolutely I downs we to but the it And So way, ups the net way the being which up along electrifying do X. going most is then ends see get reliable committed, and the you much analysis, we some of might our same. build to affordable the that is to and and by the which is must remain so if there thing economy, if believe endpoint

some sooner it might on little there. in happens and by happens XXXX. little variations a here it hopefully, between see happen or later. That's a what Does depending you where Now

Sam will was last remarks. the our back Ramraj, now question. turn call closing for to over I That

Have for rest concludes day. joining us. conference the of good you a call. Thank the This

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