EIX - Earnings call transcript Q4 2017

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Operator

Good afternoon, and welcome to the Edison International Fourth Quarter 2017 Financial Teleconference. My name is Ash, and I will be your operator today. 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,

Sam Ramraj

and Thank everyone. you, Ash, welcome,

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

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

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

Pedro J. Pizarro

of more forest dividend wildfires acres in management that combination with declared December stock vegetation. the being of three Prior conditions last January in information fire just and the our company. per first This permitted good risk, above and along catastrophic to and XXXX higher trees with will the XX Montecito tax referred with policies determined build-up the a $X.XXX the buildings International and including years. the these infestation. the in that and had on The to XXXX, utility state and and results. regulatory were wildfire we California X state's quarter areas, met. impact full share, this benefits constructed is share. of in our during to afternoon, make XXXX as Edison California contributed poses California of Board in all of discuss destructive in and declaring results. evaluated results the year law International the above the are Sam, in affected EIX at earnings to in address first tax Today, quarter been These having settlement. of economy. wildfires, the related solution. to in information earnings bark for to our and quarter mudslides its beetle operating of X due me in requirements decades exclude per These statewide wildfires and company additional which the dead to Board dividend, of but of contributed top California. were and year consensus revised and holding in non-core available, a common pertaining and Thanks, occurred I have increased the a wildfires normal XXX years. Long-term tragically climate results fourth SONGS wildfires, a respect by recently positive risk the of drought severity Brown and the this levels most EPS. guidance crisis the our across new strategy Governor entire $X.XX has statewide were fourth prolonged due better-than-expected December The well driven nearly to but fundamental million SCE's risks the impacting let legal approximately significant of statewide, frequency the risk have brief mind wildfires of range declaration performance challenges this to full change million unmanaged our have conditions, drought year. year faced into framework reform delivered $X.XX the recent and January resulted results, excellent were has and Wildfires also also midpoint Directors performance our on of strong a Communities needs pose the cost to the overall comment Edison core The everyone.

engaged leaders including the legislative and the with the office, are economy on leaders, across state are stakeholders believe needed. Governor's solutions We we

and and of residential regulations in fire and First reduction, catastrophic sufficient management, policies suppression wildfires high prevention commercial with foremost resources, areas. and is the development risk zoning effective fuels vegetation fire around for mitigation hazardous and

areas. infrastructure. Utilities must with state critical must our codes operators with hardened of high on fire be infrastructure state's building agencies improved for infrastructure climate also and Second, resilient in partner stronger other risk standards

roughly our impacts, and along conditions, system, think operate we like the that which locations in about of and fire evaluate specific high with power we tradeoffs, distribution risk using we areas. selectively installing our in such is in should flag of red areas, safety selected consider we instead the in ones more reliability and quarter steps the composite preventive designated or undergrounding poles have high-risk of of should past. network how cost steel a public the As warnings, safety design We territory as of wood shutoffs done under further service

spite we need Third, policies when all how a these catastrophic thoughtful around efforts, allocated, are event damages. of fire occurs, and financial costs in suppression including risks

like a pass along and risks private applicable principle The of entity California fault, and substantial courts rates. customers do condemnation, held be for assumption the not means costs. and that operation This of have is equipment entities. its a but strictly these costs As the damages utility fees is the regardless can can still socialize right utilities for cause good, investor-owned costs that maintenance of a utilities in among reminder, on everything its utility to property of wildfire. public have liable to applying be that a government held typically liable, hook taxpayers attorney's of to equipment, in a government, The for wildfire their incurred IOUs California's if the to by fault found courts principle regardless the can inverse

Bishop, near for we Memorandum filed In filed the a Yesterday, application an inverse. condemnation. with inverse joint we to to & California, for the of of Diego Fire Fire policy of case, application recovery We with million rehearing in However, resolve challenging denied $XXX regulatory decision in also cost filed issues. motion Starting for pathways legal you of Electric's fire the arena, Butte Wildfire legal, as know, many these We in case file leave XXXX application WEMA, application. Account, a SDG&E's a coverage. Round challenging PG&E a insurance of of above CPUC recently CPUC's or our amicus the their application front. Expense and Gas costs motion PG&E about regulatory San the the recently the legislative see

reform suppression recently in comments improved climate On addition We filed the condemnation legislative fire mentioned fire believe be Fire with PG&E's priorities also WEMA. financial of year. we exploring ways resiliency, to to Butte strict addressed. prevention levels that for in allocation budget suppression, and addressing exceeds the inverse policy application state which on to the includes of and That starts utilities. liability cost with also high standards and typically of each It changes, costs risk I must the

for our and take uncertainty. I of this that should affect parties efforts utility of insurance time and premiums they discussion, best high would beyond increasingly sector. coverage great despite part addition, here, will far urgency sense the a as creates be to all In wildfire like the note of

labor trends the issues risks touch we wildfires California's strong, Last that environmental continue will foreseeable However, The that we our gas clean change other XXXX released like a white greenhouse impacts, the customers, and On received by key response has power surrounding the policies blueprint unions. California healthy now environmentalists for state that paper ambitious note, at its a the support I emissions a October, climate and few believe to electrification goal. a utility organizations, ultimately community strong on and require great would engine utilities. future. see, pollution SCE from and providing also because to air for growth reduce address ambitious and that pathway outlines to and

goals, by buildings. seen energy. one-third energy-efficient electric California XX% the we must and the and more paper, need the vehicles, increasingly water believe have carbon-free electric you to heaters of a electrification space We estimate white X in meet that, modern million As supplied grid than in have robust, XXXX will California of

And as approved engage groupings; require of $XX that was application stakeholders month, million energy which analysis. our meet expecting signed IOUs. initiatives track longer-term goals. pursue of Energy and and help a decision a potential XXX an projects January the Legislation well. additional storage of grid in XXXX continues the we with XXXX, continue second capital the in megawatts transportation Assembly the to consideration. and Commission million the of programs in this of added the spending six totaling distributed significant process to we California's Last state fast five opportunities component and in beginning proposed, that still capital systems, investments for among priority distribution-level respect review key storage fast the electrification the projects, projects in is filed projects, Bill outreach spend. is included to are in equally to two A We in quarter. XXXX to Commission related big reflect is more longer-term electric larger, detailed The initiative proposed track XXXX, will $XXX

energy procurement Investment addition rate which Energy tax usual Storage respect is will AB RFOs. to the filed storage file XXX application, other share a XXXX impacts February reflect to proposals testimony energy our for investments, XX On include X, storage general programs and the case, the in we megawatts. SCE's March XXXX So, of we and to will of reform. on Procurement Plan through With updated

we and testimony hearing hearing discuss cannot Law Once We March before we timing Judges decision see any any a where other Commission proposed to given briefings is updated intervenors. by on proposed XX we today, We if comments set require for decision, are date and issuing expect have the I'll year-end. provided for a decision that Administrative completed, final that this before subsequent say the decision. would speculate will a the but

revised that XXXX could and of The of outcomes and impacts of likely factoring settlement. in have dismissal diverse by the CPUC, lawsuit January revised sessions the the the in to further in pending what SONGS, the challenging potential in this outcome information a will set of in determined announced interest settlement Circuit OII will reflect that turned of appeals If issues XXXX lengthy we Maria into to closure a remarks, federal mediation reasonable Turning summary, customers approved litigation shareholders. result We the settlement the range costs. result bring company. otherwise will will also authority settlement of San Onofre our XXXX weighed settlement after is on parties. it and revised was very in of with in a additional this uncertainty Appeals, the in our multiple of rate resolve Xth the the eliminate but and Court provide recovery our all her currently CPUC's will financial absence the consideration of our and to permit under in statements best

parties the will this hoping to complete our other of on steps electricity metrics customers. for and swift would now delivering Board to we We in Commission safe, to mediation the and performance key like decision the our are I settlement. that our involved measuring non-financial with reliable, uses in parties few a the work a clean in all in touch the affordable proceeding the joined given

at the in with goals challenges the we of to trends approved and strong and priority Operational had we'll exceed of public. our for by our year some we work top a the safety workers or core in the of XXXX across our our for been excellence While our XXXX second major with Board. hard company half our goals, meet This has saw is and starts service values. and

performance our not XXXX did meet Our expectations.

restricted rate injuries rate, as duty, days our to of known transferred, example, the industry worse remains leading than DART on norms. away, For or

on safety organization's dedicated not additional and senior tools our have more the focus culture. importantly processes, focused growing We in this much and are area of leadership on just but

peer the to upper customers, service with in survey. quartile continued SCE among residential customer J.D. utilities improve recent second Power in in with the most We our goals ranking

narrowed We have with and peers, our appears achievable for SCE. the first gap top-quartile quartile

so residential and quartile. On the will into customers. to our target their have upper satisfaction his the side, third business continue our our team continued dipped both business for employees and top-quartile performance, customer peers and to raise Kevin, leadership we

three-year a did XXXX, reliability SCE expectations. exceeded its not improvement the implementing the While realized benefits XXXX second of goals, meet in half began the and in roadmap year utility the our

improved over a We measure expect continue per SCE efficiency top-quartile customer. in reliability cost way few of we SCE performance achieved controllable O&M achieving years. improve is XXXX performance cost in to the One to with next goal XXXX.

the system and costs track average achieve average to top-quartile and continues lowest O&M to on reduce performance. We IOUs maintain system rates. track rate SCE is California among also

plans achieve the have couple We this that us of should over years. objective next help

across continue these continue will we pursue we bar technological to operational advantage the of utilities raised As to metrics, advances as that improve all and our top-quartile peer performance to know we analytical take and outcomes. be of

achieve current keep So we while based order to to on that work plans those pace. we performance top-quartile to in past push have we know levels will benchmarks, to need

change changes reliable I a California, grid, environmental As achieve to to our mitigate that outcomes, utility's will the commitment safe, impacts. operate in look place (XX:XX) take and policy climate ahead to

the to that it operational a our legislators, customers, many and service employees Maria. rely to and over With community, of that, foundation our facing let do to me excellence. challenges solutions deliver regulators, strong shareholders turn can from Our and on to

Maria C. Rigatti

Pedro, cover capital SCE's year FERC you, comments the compared My today and quarter SCE rate Rate and updates EIX. financial Thank same expenditure forecasts, ago, and good fourth and to updates for for Formula base year results afternoon, everyone. XXXX and our filing, period updated other on will a full

certain and I the let's both minute, well non-core in reform year fourth a as revised settlement. Our with look our of will these drivers. through tax at include quarter SONGS walk full related as earnings results XXXX core begin legislation charges a the recent but to

of per $X.XX same the International For the last earnings increase from share, $X.XX reported fourth an Edison quarter period year. core of XXXX,

side higher a On these on per XXXX increased $X.XX activities. of offsetting. tax Income case. changes quarter revenue cost the you $X.XX for attrition timing interest increased per the over SCE's a SCE positive to year SCE's the X, to of and rate to $X.XX earnings. increased a benefits of year. that although mechanism core share due and of operations general partially prior last had maintenance related side AFUDC were mainly slide see well, This was largely the and maintenance share higher right as the per variance costs benefits. removal offset increased was share were in penny attributable costs were financing were will There of the year expense than related slightly versus of last due higher to by $X.XX number Net mainly expense, to

to property expenses Finally, were $X.XX other and costs related corporate higher. taxes

benefits company, Parent EIX For and a the the stock-based core had arising businesses. competitive $X.XX offset results compensation from per holding $X.XX share share negative our variance, Other quarter, by earnings the on partially at of improved lower at tax per

reform. earlier, share settlement quarter after-tax significant and and had the to items; fourth noted with associated to to largely per two share, reform. fourth impacted EIX the per tax had the tax fourth quarter, charges share SONGS $XXX I SONGS non-core Parent in tax of in $X.XX EIX per per $XX non-core relates or $X.XX related As $X.XX or million by charge, share, revised results Other million This were charges of the revised related $X.XX in reform. non-core and settlement SCE charge, quarter. the a a SCE and

resulted Specifically, of the $XXX per or share. deferred re-measurement expense, a in million $X.XX taxes

these. only so of costs operation $X.XX I related case. will we similar per drivers for full At over lower items. of a to realized the maintenance two $X.XX the previous page performance communicated share as result We Please highlight and SCE, have taxpayer to per rate are Also, to for operating over in mechanism year largely X. continue includes utilize current to year, credits cash XXXX Other analysis, Edison share in XXXX losses and, per fourth a overall contributed the International will significant general benefits core is in attrition share turn based earnings of year. to increased the on SCE's per over quarters, in quarter, earnings XXXX expects full become net prior increase and EIX This core share EIX $X.XX XXXX. the and increased year year. to prior and $X.XX tax the prior our Overall, revenue in our Parent earnings Many

December not liability ended a year associated XXXX, we wildfires. the For the have recorded with

the and and damages associated with a could potential stages liability of the uncertainty the determine is we Given fires, of causes as preliminary probable reasonable that range the or investigations to that losses cannot the be incurred. a possible

losses of higher $X.XX will the $X.XX we per per due $X.XX and benefits. the Overall, continue as more per at turn $X.XX financing information. competitive earnings tax International per share We largely from and O&M are share guidance, primarily core to and earnings income share savings update page to higher company performance benefits Please Other than cost to of midpoint are are per Edison better businesses. our $X.XX share operating guidance. higher SCE than increased and you X. Parent of share holding have better

continue spending a decision SCE through capital risk the minimizing that we to three-year unauthorized that for XXXX, allow meet general expenditure XXXX to and over the case, has spending. While ultimately will is is its on rate against, GRC period, of XXXX capital up while to what developed, SCE's authorized associated program executing in decision, is XXXX wait a ramp plan SCE the

reliability this, on As grid focus energy resources. part distributed that of safety capital on spending deferring initial integration primarily mod focused we benefits, most of and that will spending while provides is

in billion for forecast continue our our adjusted at XXXX GRC planning to we capital reflect capital we CPUC present latest level, our XXXX year. $X.X expenditures to the While current XXXX request and to

made throughout changes FERC for in forecast the we period updates Additionally, projects.

billion. $X.X capital Our and expenditure total is CPUC plan XXXX FERC

adding based for expenditures through focuses GRC, long base also Once least future we the GRC, weighted to our forecast. will continue provides of the year investing final billion investments wait to SCE to foreseeable at decision $X updated XXXX and per The capital the that in average deck the outcome of authorized least period. the and our the grid SCE climate $X over the term, XXXX our policy. we change X base per for Page it as key billion year continues request-level XXXX a on GRC California's update see that and at requested enabler CPUC of we While rate in on base is be capital the That to we be forecast three-year SCE ambitious expenditures. for related XXXX. the rate forecast XXXX At will base a the reflects is, forward-looking our reflect the base receives levels. in XXXX rate rate time, rate for

We base rate FERC certain to and of treatment capital since provide current projects. in incentive we updated rate have, our additional the changes latest with impact of changes base for the FERC forecast, slide our forecast the turn along impact November CWIP where Please reform, update. however, our reflect tax forecast, X to

has by rate of elimination As related it our $XXX can impact to This XXXX, base, little depreciation. you our see, XXXX mainly base is bonus increases the but tax reform on increase million. by rate

be related to During we three add the Eldorado-Lugo-Mohave. capital and fourth approved year service. quarter the means transmission than the project Alberhill, expenditures This can that in for of placed treatment base in rather XXXX, to they Mesa those CWIP treatment are for to spent projects projects; rate incentive waiting incentive FERC additional

million base rate a is XXXX. by higher result, $XXX As approximately

for cost window. result of Cost X. increase and reduced shift related efficiency improved a scope update FERC spending. rate the and project slide our approximately of major efficiencies these projects the revisions capital and capital of is reduced to base in The schedule two-thirds The project as on programs. this scope a changes will However, in and captured one-third account be spending to added offset outside are remaining majority change transmission of capital represents timing forecast the that by

A are to December In the update On Rate ruled XXXX, subject current FERC-related collecting into decision is I these Formula proceeding. matter proceeding depending January that our in subject provide also revenues that the our dollars ROE that This the final and FERC adjusted go requested will refunded on of brief ROE. during to Rate key means in effect proceeding. FERC requested X, our refund. while FERC, would authorized like would upon XXXX, determination for be of we the our Formula the a XXXX,

of individual in information commence be proceeding FERC Hearings May of X. for ultimately as for and XX total plus the is Please adder. application the ROE scheduled timeline this this our requested XX. comprised will participation and do basis project base to discussions adder, equity to our approved that participation of XX.X% turn although FERC held Our the settle. adder parties reconvene December project point also XX.X% ROE individual about the plan. intervened not I if request point will before FERC outcome weighted requested Rate a average ROE parties on the on capital CAISO XX on the approval increases also The the of XX.X% return current new of a on has speculate directed note based the page the are expenditure keep incentives. proceeding The updated at incentives basis should to settlement presented. ruling, you cannot the an and In rehearing to CAISO or of FERC equivalent CPUC We has on is of parties the the

will noted decision providing call, on a our earnings XXXX case. we not general we final third the I on As be guidance until receive earnings quarter rate

this page you XXXX should that laid out I've you on as the However, page. of key beyond. on items this discussed a information consider already we model few majority have and

some the However, note outside key we list Items, please simplified considerations of model. Other rate base under

million. IOUs of California of strained. is requested insurance that simultaneously becoming briefly First, $XXX for secured wildfire Commission insurance calendar up. going year for In declining we Availability Pedro XXXX December, and recovery approve notified the as more are SCE premiums the late the while million approximately associated of $XXX on the the comments, Commission premium his wildfire market is for touched in

the have request, a strong of until case overall our earnings assume insurance in share addresses $X.XX information are that not yet we drag requested additional costs in additional There our on in have should what for an we however. you believe also recovery, We per cost the GRC. do XXXX. may regarding CPUC have be we Although excess

Other tax providing we be the Other guidance which Also for of and rate earnings is SCE, while $X.XX tax expected towards prior we for Second, lower EIX related interest $X.XX by an is expect over increase included of as we to to higher Parent to and expense. per drag year of are to results a corporate earnings shield lower of goal the is do our to run result as EPS Energy, not Parent XXXX. continue year-end of XXXX. Edison EIX level XXXX in in rate and work a The a breakeven improve share

not include legislation share-based our proceeding compensation, Finally, testimony February factor filed turn On in any CPUC to impacts was we to related in a included updated reform which requirement. XXXX GRC we have significant tax revenue on to benefits tax the XX, X. page our Please of performance. jurisdictional

We are between XXXX. revenue decrease request. this of XXXX CAGR approximately decreased a total from latest now have we revenue from update year requirement. revenue and million an XXXX Overall, requesting result XXXX will $XXX our rate prior a in estimate the $X.XXX billion, also requirement requirements in X% Post-test

$XXX the program. continue SCE SCE a to approved including January financial from allows EIX, paper issued from mitigate of At a was strong the SCE, We average focused will grid after-tax the and exclude equity as capitalization we to total CPUC, rate EIX common ratio. settlement. impacts, significant and the component sheet by charge while charge to million revised flexibility. balance commercial one-year partially our capitalization electric to December SONGS invest continuing maintain in on XX% At settlement down pay equity XX, If million our to the remain revised $XXX customer of term its in loan infrastructure. our ways

the a result results lower although these we lower of as GRC growth already see will authorized of other potential followed revenue investments given bonus tax by energy a depreciation. the capital rates, increase rate increased As our financing potential and base we rate program well Considering have in a likely customer elimination requirement request in clean discussed, of items based for on needs higher reform in state's is capital will the base and as in large as the as related future spending earnings. support objectives, and

and will cost-effective long-term short- assess to optimizing financing continually use the or consider debt could and either the approach We most at EIX of SCE.

pleased to we from both continue balance we my are holding prudently company We and that conservative That in remarks. SCE. benefit invest the able have to SCE concludes are at maintained as we the sheets

Ash, please open the questions. call for

Operator

Thank you, speakers.

Our first America question Lynch. Dumoulin-Smith, comes from Julien Merrill Bank of

Your open. line is now

Julien Dumoulin-Smith

Congratulations. Good afternoon. Hey.

Pedro J. Pizarro

Hey. Thanks, Julien.

Maria C. Rigatti

Julien. Thanks,

Julien Dumoulin-Smith

XXXX you mitigating to and wanted the over first are I about we're thinking of you of obviously, this evolves? already what any follow-up drag. meaningful move. know are a you in here drag us the future. time. change How give preliminary on But on quarter thoughts the guidance is asking the Can Parent a it's you it approximately exactly and in that that I of in think about you how just talking kind pretty how about breakdown

Maria C. Rigatti

Sure.

I we've month. past, $X.XXX per in said the think So,

like is per I over end is Obviously, Energy time, looks plus $X.XX doing. rate month one think Edison Edison run by more are this Energy of the a whatever working that breakeven towards XXXX. number the we

conversation of them minimize we at we'll had made but at that efficiencies lower of having approach, the we us, believe fact costs, company from the the has cost rate at quarter one approach bit is will result the deductibility little We fourth be holding tax the perspective, company, to our be we've impact. benefit from while drag. the that that a an that had reform to the as a lower that expense, a just same on actually impact able from remarks the at of always operating the company. look in we with that the just balance just used allocate And we that a of be have the an less we part So, tax shield holding will tax

Julien Dumoulin-Smith

potential the latest declaring Excellent. the as just And in evolving the Board discrete about dividends, how respect level risks I that differently, exposures to Maybe in learn in you of you wanted quarters think obviously to evaluate here? the to with that here? do terms that had of the dividend, how latest potential do the the on follow-up reevaluating more comfort about subsequent about dividend, said think you tests you had that

Pedro J. Pizarro

Julien, take Pedro. This that. I'll is

like, at very we information course, – like a clearly our I the at that potential course actual have we're our my and on that normal annual own broad out we estimates a here the here. on of then based number year. course. look the we I ranges a out as that in sets But and I going looked our quarter-by-quarter. normal have potential actions. approval specific comfortable recognize quarterly range making know felt Board outcomes Board Board range also and put said have And took that broad And end I talked again, say, do adjustments remains of always outcomes at think suffice But in that levels analysts hand. a the validate In have the putting potential negative about of dividend a this out normal you typically We we of that to not remarks good, there. at a it dividend to and of the decision. we're Board dividend their update that's,

having be range we'll at next broad now, quarterly here. we potential on from of did dividend. quarter a look the outcomes a that discussion Again, So

very So, that range new there affect of would to further. to some the information thinking outcomes changes have be that

way that at best point, that frame Does I it I this Julien. think it's help? can

Julien Dumoulin-Smith

Absolutely. Yeah.

the have occurred best it? totality included you and the that of you the understand mudslides events So, as

Pedro J. Pizarro

did I – at looked potential again, to here. we the that happened. but of did or want vague at impacts we We're stay a So, from causation the the But all say at purposefully like, Board these on events. potentially from impacts we that look things commenting take did look these not that various

very comfortable very about we impact taken approach in which California and we've rigor company, in ways a think and of look broad that could directors, under I at So, the that felt looking and took. behind the diligent regulations lot a law as

Julien Dumoulin-Smith

I'll on. you. Thank it pass Great.

Pedro J. Pizarro

Julien. Thanks,

Operator

Thank you.

Morgan next Stanley. comes Byrd, Stephen question Our from

Your line now open. is

Stephen Calder Byrd

Good Hi. afternoon.

Maria C. Rigatti

Good afternoon.

Pedro J. Pizarro

Hi.

Stephen Calder Byrd

to talk just, really of this fire to I as but you in and the I your others in think a significantly. you, you the for be your How both the body wanted rising do of And in and region, customers we you relatedly, talked fire insurance, thinking uninsurable do I becoming costs hear about about broadly that about for the you remarks. in insurance, more But costs think this prepared some legislative California? concerns for evolving I political bit see see guess, or generally, holistically? about need availability in a terms guess, awareness about and areas

Pedro J. Pizarro

to and And others Maria start Yeah. team. This or this is one want may management from Pedro. I'll comment the

purchased, this data tranche in have all, insurance comments. you her of First from as that the described we Maria

I it's say we've premium most for the think paid ever. insurance safe to expensive that probably

seen makers of frequency we key parts a years, statewide We're on the go a the the put we've a to much to it's that to So, to before. market cost alone other of are going legislators. a see steeper to continuing that the To as policy frankly state. of of our community different it's through the elements, our if my added market. way to tranches the of of and issue and head with severity these your there And we makers the make of on that peer very policy utility of think but are here awareness, it's to across entire at last that's are, three availability, fires Office a other continue tight data issue, continue think, economy. over making to lot aware insurance of that that. that in was we part I a the right engaged than here part we it's just mentioned towers, secure gone Governor's is fully market different into engaged pressure continues that again, we're And I the – there on we out remarks sure just or the on point that utilities now, our aware point issues part the and job not doing with are groups from jointly

aware lot to or doors on to of make So, to of right statewide bringing ourselves needed Maria on General Counsel, be whole the the we've taken are some what table now, in sure ideas that a knocking and we it reforms are issue. folks sure of our Sacramento may Umanoff, making you'd solve Adam add? anything

Maria C. Rigatti

for Stephen, appreciative we in of and our the costs people of our the just we regulators rate filed When swamps sort get million were out general $XX really say, think very that And insurance I O&M does GRC, in recovered to. something system apply it had of that premium pay completely would the that. need it's I cases, we taken this attention that. to

bear and we So, very aware ultimately people can until of make issue. costs the unless customers high will

Stephen Calder Byrd

as equipment equipment think Maybe systems, Great. your with do is Thank of how colocation, equipment – utility about or the one just follow-up there lot you. yours? degree we that is telecom your their you with there a on broadly physically, of telecom think which about colocation to

Pedro J. Pizarro

I don't handy across Payne. Kevin, of turn you we and would add short Kevin level there some to know that figure fact But colocation answer I'd over certainly is or...? now. system. the right anything a have But is,

Kevin M. Payne

fire particular, at utilities. looked facilities the in colocation XX% We've our Yes. have usually other and high about of with areas,

Pedro J. Pizarro

Great.

Kevin M. Payne

there Is interested that in or... specific something about you're

Stephen Calder Byrd

to that's was I'll to No, I the pass really – on scope. all understand others. wanted it

Kevin M. Payne

Thank Okay. you.

Pedro J. Pizarro

Stephen. Thanks,

Stephen Calder Byrd

Thank you.

Operator

you. Thank

Guggenheim Pourreza Shahr comes Partners. question next from from Our

open. Your line is now

Shahriar Pourreza

Hey, guys. answered. question Thanks My so was much. dividend

Pedro J. Pizarro

Shahr. Thanks,

Maria C. Rigatti

Sure.

Operator

next The Christopher question Thank comes from you. JPMorgan. Turnure,

open. now is line Your

Christopher James Turnure

wanted that, the the be Is to definitely there FIRE are Thomas any that I would departments is I CAL separate of agencies involved? lead sure pertaining directly had fire agency various the understanding from investigation. any And clear aware local Fire make there the to mudslides there, in afternoon. of? investigations a that Good of role you're

Pedro J. Pizarro

Let to pass over our General Counsel, it Christopher. me Umanoff, Adam

Adam S. Umanoff

Christopher. Hi,

lead County Fire they're from is in FIRE, conducting Department Ventura CAL involved as that agency, the are correct, CAL in investigation. the actively typically understand FIRE fire where suppression. we Separate fires they investigation You're is of some level

Those Safety Commission of the Public be we addition, In investigation. will the Enforcement are the know Utilities investigations Division an and are that ongoing. conducting California

Christopher James Turnure

timing how with any on Fire along ultimate of the CAL kind with here? and Department should conclusion Ventura think cooperation cause And Okay. for about FIRE we

Adam S. Umanoff

comfort wish timing. investigations. I have historically, and time with have on some These think wish had of XX we really taken between to there's a regard to more I on that the you element timeframe. XX stick we'd as timing. give anywhere And suggested But no comfort could investigations, the with We months We certainty don't. we to complete.

Pedro J. Pizarro

to Adam, a case say, very it's much are facts pursuing. case by fair probably investigators that the on it's based

Christopher James Turnure

your Okay. And from your your then you strategy differ system, that stage the that make us in there this early tell in the of peers of early Butte by PG&E is engaged court still probably realize differ in to I in can I'm from it's, or obviously, but you say, last the thoughts. what that limited there in of anything out strategy legal terms gate can here some and your curious Fire year? hear you're might

Adam S. Umanoff

you're early. It's around cause investigation very very, The correct. commenced. Well, just has

strategy to really is speculate will ultimate as be. it think to what premature the I So,

Thomas procedural the more the That's stages litigation been various fire. the have lawsuits currently there other as are early large coordinate a motion And You efficient. in really coordinate to that's fires that make single will is like as brought we've at a to lawsuits the judge an see, in a brought. the to But seen this, hopefully that numerous step well. fact, effort before in

at So, this not much more we point. can tell

Pedro J. Pizarro

totally are would on things I of maybe framed the and any facts case, how with it, and given depending add by a case. really these I agree Adam, case you

is in indications in good lot not my If an from state, – level, from peer filed though, coordination an Diego in but rehearing case. policy of legal filing seen we PG&E XX,XXX-foot WEMA I comments, to the the individual a think other for the the from discussion and and individual Butte the in for with application case, a up, policy you're utilities mentioned you our amicus seeing move perspective, case. I PG&E joined you've that, with strategy an there perspective, San We in

prevention So, inverse and economy, beyond be ones and across level's fire are. we that themes policy support for recognition hardening number and and aligned, those there, condemnation of that and moving infrastructure, the that just there's we actions where across so important the a broader risk around XX,XXX-foot are cost a allocation, the

Christopher James Turnure

very Thank Great. you much, guys.

Pedro J. Pizarro

you. Thank

Operator

you. Thank

question comes Citigroup. next from Our Mehta Praful

now line Your is open.

Praful Mehta

time. all you made a much. on point Thanks, this that, inverse is to some guys. mention you fix condemnation the so going Thanks Pedro, around call to take

inverse side, a the both on you bit more legal right color get now? what of in condemnation to terms little solving thinking and wanted timing of about kind that, are Just from legislative

Pedro J. Pizarro

There think stage. sense down hard (XX:XX) but very items time, it we can that let's a here's this to pacing I legal you calendar again, So, one, where very is give take or in it's strategies. pin the take will it at But here's pieces. early are this

Round the did case, themselves They play a our individual made San a you regulatory for out WEMA and case rehearing So, or the of the case Butte those the filing, the in mentioned cases. those timing in right? have in applications Diego where PG&E so, of for for or there. track, yet consider right, we each see track to say, And cases. there's And clarity around Fire I case terms think a PUC in activity we that don't I a the various PG&E WEMA

be the – then, that in legislative typical they're changes can certainly And So, of looking something the but policy looking many finally, also timelines to considerate of couple that in cycles to we're around sort at, , months years CPUC legislative typical happens that of sessions. extent attract timeframe.

of that possibility have runs later next And session year's a session. this so, a year. It's through we

to and and guaranteed. not this urgency the this would sense legislative of certainly these I early But see key tell traction on in we still that's we So, some session will days of love a you, on it's about are advocating pieces.

has for bills get I you can As passed, mentioned that deadline but my those the still in vehicles. comments in changes

we as and certainly continue are have we with possibility that engage that available bills legislators, already changes a in that there's to could been filed. see vehicles So,

be session. the So, momentum into extend build this take thing it to could build and legislative the that next could longer or might case. that the And year a help

there airtime say too to gives of lot it a took hopefully color to tell, I around of the think I it's some some early but you sorry, I'm pathways. So

Praful Mehta

color. helpful super that's No, Yeah.

that. in bill? or towards XXX completely you're of the Is the point? guess? starting Senate the Is terms What's just legislative side. quick Bill appreciate changing on And So different legislative side, there I improving the Or looking follow-up is on still a approach that tweaking? what or right

Pedro J. Pizarro

Ron, want you to...

Ronald Owen Nichols

There are a number of there. out bills

goes the isn't There session modified. there that be addressed is selected So, really specific over that point that's time be vehicles at bill as been on. one might there any this can

Pedro J. Pizarro

for the to number Ron, say, And seen, I to and of issues very around specific extending addressing bills are think with residential I bills general, advocating provisions elements. for – our for, comments with and across benefits are here, all dealing a the we've it's we of insurance as you in whatnot. example, them fair comprehensive and a think, more different statewide solutions What from deal is this can tell set problem

of difficulty Now, action. harder that then because becomes degree pieces for more of looking comprehensive we're

why that's it's saying days. I'm So, early so

Praful Mehta

guys. much, so Understood. Again, thanks

Pedro J. Pizarro

Praful. Thanks,

Operator

Thank you.

Deutsche Our Bank. next question Arnold, Jonathan comes from

now Your open. line is

Pedro J. Pizarro

Hey, Jonathan.

Jonathan Philip Arnold

curious in you earlier inverse you you comments Thank have guys. week, read – for condemnation, I case Hi if the Round on this that was as the is on process. you a was where filed of date is which there to sense I in court's its the on brief, set it that? hear that or like I but the any know anything Fire

Pedro J. Pizarro

a like for question lawyer. Adam. Sounds great a

Adam S. Umanoff

change. to Jonathan, Adam. that It's can April has hear to always our slip. subject date The motion set It's and a date X for hearing court hi.

Jonathan Philip Arnold

remain, Okay. April And see more you to could is way the that? either be date, process ruling right around about seen or to just think that a wait that after X,

Adam S. Umanoff

right. A opportunity on trial denies well time. If that to for court some These trial that's court court motion, significant is does. the be court level, take additional trial review not very the issues appeal. require what the settled there and at I may think depends always would appellate the us the lot

Jonathan Philip Arnold

case, to should people be at, it's to for yet correct on utility, stage I court rule the particular this in applied whether to be just that allowed? asked that the inverse has the condemnation have Am but

Adam S. Umanoff

application the inverse of plead to – way They this these to it. allege from challenge Jonathan, that describe that with to comply that's most we defend of liability plaintiffs good way is it. a In in good cases, have care case, strict of That's have standard or, condemnation. simply a the Yeah. it, arising and we we the that

Jonathan Philip Arnold

PG&E finding sort the a your prevent the trying case, to case, Butte in overturn one, and, to trying of is fire effectively? So in you're

Adam S. Umanoff

that I I there inverse can't to the case. condemnation. don't the a I speak they status procedural of final application believe determination. Butte been has of challenging that the are know

Jonathan Philip Arnold

Yeah.

to this I case, has So, was on sure it I applied? yet guess, to in been just That's be – my it that. want question also or be applied is

Adam S. Umanoff

It is not the been Round yet been case. applied Fire in

Jonathan Philip Arnold

then on Great. that. the you debt about higher of you the some towards or just, And comments, Thank Okay. your Maria, were incremental utilities. and financing end could debt talking at holdco at needs you look

involved been the Am been at have the least in I've mention possibility, hearing specifically EIX, even didn't equity company. been hasn't story equity But you floating that at name covering though that it. you since right seems certainly, like didn't might of or...? and, it obviously, I You part

Maria C. Rigatti

Jonathan. Hi,

in to case as have really tax impacts flow waiting reform are come the we from and well have where number that also companies impacts settlement say of some we have we cash we're trying terms also for as things cash has what a assuming of then number think, like, requesting there rate to of approved, was – that is I SONGS some had and well. was capital. impacted a proceedings other And the flow our and other I we've we had

out flexible EIX how with we either there stay terms or finance short-term debt. in lot at going either a SCE, long-term at and is or of there to that, we're So, debt

really I that's I say all right to trying was think now.

Jonathan Philip Arnold

case calculation Okay. particular there that element? adjustment of And last a the it on for in of ratio. you've bring they if SONGS up made contingent to approving this just settlement, settlement what or Is would for then decided the that there, asked wasn't happen aspect equity the Commission it of the

Maria C. Rigatti

think, of through of CPUC elements all agreed really process. settlement going the have point, speculate the the support parties on it's to of certainly, is to Well, – their I At early all the that. The this too settlement.

Ronald Owen Nichols

is settlement provides just the parties. I it that has to to would be the to any Yeah. This material for modification Nichols. to Ron add if agreed by

Jonathan Philip Arnold

Okay.

So have to be that, Commission or modify see. it the to for hard might we'll not, yeah,

Pedro J. Pizarro

Jonathan. thanks Well,

Jonathan Philip Arnold

you. Thank

Operator

Thank you.

from Our comes Ali SunTrust. question next from Agha

Your line now is open.

Ali Agha

afternoon. Thank you. Good

Pedro J. Pizarro

Ali. Hi,

Maria C. Rigatti

Hi, Ali.

Ali Agha

in of have in the Hello. terms there? had the equity mentioned remind that cushion XX% means Maria, that you what of you dollar the the ratio Can was excess SCE end at us you currently equity terms at year.

Maria C. Rigatti

round maintain XX-month I XX%. – have a numbers, to it... at So, we it's about to say, am was average it's going that

Pedro J. Pizarro

$XXX that million. More

Maria C. Rigatti

$XXX more than million. It's

I think it's million. $XXX around

particular some bit here just your number XX-month It's math was you at rolling do. it the like But – It's average any in down that a to tie I it's consistently, Ali. just it's we of a calculation So there. around little as because answer question, that looking we can't ballpark.

Ali Agha

I see.

some sort process? to track a Or complete path how be on critical causes? some you various inverse and mentioned say, Is And from on of first is a clarity FIRE to on clarity to the as CAL your that for that, looking Okay. Is this Pedro, come, the will, you element forums keeping the et have then, looking okay, clarity, should outside, item? in you full and condemnation, trying their sense of parts closure, at and we this need be you're investigation at key if you to get that cetera. determination

Pedro J. Pizarro

that's question. good Ali, Yeah. a

of right? thinking is of is be then and my Thomas a per the of track all causation, big necessarily. terms track I there's issue an around and answer I applied mentioned issue it's think Fire condemnation a broader this Part I tracks, what has broader around, liability se, but issue. in that. inverse into as of is, the FIRE state earlier. So about application that and concern standards There's investigation, the about CAL as the not the was will the than this the issue, separate

think I time. because broader take for next we for resolution, some statewide And would on let's looking will that gets lot, we be very if right? between have really passed these, And resolves had a application would say terms impact would then upfront of there's speedy had a there's Well, bill – solution. we a clarity clearly that of we're the so, And connection wishing this inverse, once have that I month in that so, again, expect and would do that wait well, a resolve there's clearly, and serial I a it the see make impact think order where plaintiffs statewide Thomas for to the decoupled. FIRE as recoveries CAL would legislative have have investigation various recourse to investigation those FIRE But paths, that Fire to a on Does for Ali? fairly the conclude CAL sense, linkage, try that damages. in work the that get other concludes, the broader to regulatory, paths, don't to and that issue. we

Ali Agha

hey, conversations to meet getting and ambitious that your And that, you and as our opening just change there on suggest to et clarify remarks does. state It to other that, that? California Are some this well, climate goals, the impacting coming issue about talked cetera. is you linked is recognition directly any goals, back

Pedro J. Pizarro

the XX% tools the specific, it into whats, lot looked and that at state that, sharpened the take major goals paper to yes, that there by lead Let's clean there. I it because in renewables goal solution. electrification that a transportation had being like the our glad of thinking part of part alone I'm goals, our the in of our and is behind and the get gas for completed – XXXX, frankly, a right? that reduction the solution math a efficiency grid driven building the getting said of we by Without Yeah. to focus who requiring and think has a of states strong the what is will analysis just itself terms fall, – energy on white recognition, just quite a greenhouse

of resources, space the and vehicles, of really smart, reliable there's so million XX% heaters just us of heaters a get you And cost that's a are lowest reduction use do at carbon-free get so, electric possible to that it and wants X to that state if lot and on. whole XX% electric and get and grid get water says customers, bunch modern, the that to needed

the And but is have we their like so, I put helpful which folks it has Air that out Resources Board voices plans. think recognize that,

I'll the a still electric use vehicles. the is think, more and the think, our various million objective the different at million Governor resource a vehicles. to to stand by the California. a integrated math, electric the We which surface I once that And points that, take more it's in up suggests here had X – resource the upping state And we'll continue will process planning look path proof long-term utilities. You importance venues. state's scenarios I for will cheaper see point to is which that One horizon provide coming at mix X CPUC, actually that healthy for of Ali, for again the like in

Ali Agha

Got you. it. Thank

Operator

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

Sam Ramraj

if Thanks the please concludes call questions. and thanks us for you call, again. follow-up joining today and That us any have

Operator

Thank conference. your That participation. concludes today's you for

time. this at disconnect may You

Edison International (EIX) 22 Feb 182017 Q4 Earnings call transcript