EIX - Earnings call transcript Q1 2020

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Operator

Good afternoon and welcome to the Edison International First Quarter 2020 Financial Teleconference. My name is Sue, and I will be your operator today. [Operator Instructions] Today's call is being recorded.

And 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, Sue, welcome,

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

would we doing with mention this because of that different Executives in locations to California's like call I are our stay-at-home order.

us if difficulties call. technical you on any with experience bear please So the

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

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

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

will over the Pedro. call to turn I now

Pedro Pizarro

Sam, good and afternoon, Thanks everyone.

Edison those by COVID-XX, begin to go including out impacted elsewhere in from been California our and colleagues our thoughts me saying who by that have Let here directly team.

unprecedented facing not earnings and all that in has past. routine know an are been participation experience it call that your We the I likely is today’s is in the

to I they to Edison service all the pandemic time. in of orders women the their men by not our role way a this our to demonstrating incredible be carry that customers of and This and this the essential The have commitment grid people and deliver their to and times International for worked health could California team company’s lives. on that the of out put are the thing communities team historic mission. continue during is electric is in prouder safety the changed stay-at-home served million spotlight One XX,XXX these our to hasn’t and SCE. XX and our our plays who Edison, commitment Edison together Southern

much same the Maria SCE I by first you response of quick financial the loss Edison but an fully period reported $X.XX our last and more of our EPS for XXXX, core to will Parent will prepared per compared was discuss give share Today, Other. at detail financial flat me International first per in headlines. quarter my year. core at to the Higher remarks increase EIX performance offset her share earnings COVID-XX, report. in in dedicate to core let

the and some share COVID-XX workforce. the navigate responded, been now we for the of will Edison of in turn order. how customers are SCE has ways the to has is caring how State helping responding California which the I of stay-at-home will our and to I crisis, executive preparing effects how and organized also

will continue. identified SCE CPUC its made that I work wildfire on must an have essential mitigation the as agencies on Lastly, provide has which other state update the and continued work, progress

In we pass emergency with Legislature hospital tax California, to July purchase The and our Governor deadline. Legislature medical capacity, after is assist impacted actions COVID-XX. the by are up the deadline XXth unduly work XXth this the mitigation expected of to address state's headline provide equipment, $X ensuring not most State emergency. to in significantly the vulnerable is on to extended a and and by that more protect a total returns, residents. it the budget taken filing increase more scaled-down is to the robust to have expected The spend develop When budget June facilities schools billion wildfire is funding

address Governor’s The prevention priorities to related homelessness. and COVID-XX budget are wildfire impacts,

essential the our an maintain staff to government closely communication We wildfire open work and senior and on to officials undertake, company that continue line work work. mitigation continues particularly with will of

IMT and them of emergencies and to senior resources to is corporate employees Crisis policies. Early core in of and established health SCE, daily Edison, operations on, Management up our provide is approve safety or to check focus I we an Council, respond on the group At day-today our new benefit Incident Team, the The and staff made SCE necessary by Management with from ensuring mobilized lead run for COVID-XX to IMT, with customers. the utilizing Incident and system guidance response. and on providing the of individuals EIX FEMA. trained Commander our of a protocols our our needed key to maintain critical IMT leaders

the robust While same time, we of out to learn. about nature scale the service tested SCE to plan committed has essential the a of Leveraging stay-at-home crisis number which policy reality had also of of the training experience the COVID-XX was to and continue At the is in response our teleworking. the the remain called we the Governor’s already exercises, order. quickly that provides, on executive we fly us two-thirds pandemic workforce changes and a IMT, it to and required transitioned in the had of planning we make

Front-line personnel designated critical observing in at or number their measures. small SCE to facilities. a safety workers essential critical has ensure and of availability at field who while certain support appropriate functions SCE sequestered remain the employees Furthermore, facilities

the already longer-term are too behind and Edison just certainty, pandemic with is say asked It’s but us. crisis dramatically any how work alter live, about whether being the for potential to preparing early once probably COVID-XX is already Questions immediate of will socialize changes. we the

we am for changes: we how we positive will flexibly in learnings how improvements after be to our certain rejoin more do physical that our and sustainably can work will in even these example, lead telework our in I colleagues of Some offices.

up the adjust changed end, and consider our employees how thrive, we To and to for both a and economically. socially plan and this and possible Future customers to stood Cell reality Planning company, a can continue

the providing reliable facilities serve safely stores. is critical Recovery. representative to Task and as to honored only Governor's Business on the such labs as am SCE grocery and on Jobs power hospitals, medical utility I Force

environment, a jobs energy quality. recovery a just future air thousands post-COVID-XX As role the to also change work climate with of of economic of play that a good clean California address begins equitable and in and plan can in challenges the critical

of Since SCE stay-at-home statewide X%. has the system load implementation measures, declined by

We have seen load more but this an is by the demand, than in increase sectors. in decreases residential offset non-residential

long-standing power, from While like reduced decoupling we that for remind to revenue would are demand a electricity of has sales. California seeing you policy I

earnings. We Balancing is revenue there Account, also mechanism track Revenue to Requirement a the no place Base in have so impact already on and called over-or under-collections, any net

Commission SCE new associated account, remarks. to proceedings. memorandum COVID-XX with subsequent the establishment seek Pandemic recovery in a to the address efforts her topic Protections Memo Additionally, of protection called COVID-XX, recently Maria Account, will cost which can consumer approved related in through the record costs this

the on customers it to for one SCE by communities. late commercial COVID-XX customers has utilities residential of first supporting our offering suspend focused our voluntarily is was fees service mandated. disconnections SCE before arrangements. impacted was billing waived and remain We nationwide nonpayment for and flexible and

more for proud organizations by million be the $XXX,XXX To those International nonprofit I pledged grateful Edison to International. contributed of COVID-XX. and Edison providing the $X hardship COVID-XX who has due to matched they further relief, funds than our employees Edison economic support contributed support am communities, facing to will

customers, has function the own CPUC In the customers. has continued and utility pandemic, our identified help initiatives efforts support to during addition to itself to to

Some initiatives of I which what SCE already had these earlier. and parallel implemented covered

pending Additionally, of many we encouraged has SCE’s the are applications. CPUC that moved on

changes. decision a issued on April without any & the final Safety the XXth, instance, on approving Commission For Resiliency Program, SCE’s settlement agreement Grid

$XXX.X toXXXX. and The decision million $XXX.X million authorizes O&M for in in capital XXXX

events. earlier equity seeks the of exclude on capital structure $X.X previously this SCE's and future XXXX XXXX common and associated received proposed a Additionally, its with recorded SCE net month, application from billion any waiver that the charges to decision charge wildfire

of PD to the also XXXX claims as the related excludes resolved. for a which continues as for of debt are The move early approval XXXX cost two-year The until of purpose or processing This wildfire claims Wildfire and waiver recovery IOUs’ events. continues Plans, for the in are also issuance to period the CPUC June. forward earlier slated Mitigation these paying

and The associated the filing seeks expenditures incurred million Board Wildfire last mitigation of O&M were XXXX its reasonableness month, for of approved capital Advisory XXXX Further, million. April On X Track issued proceeding. GRC WMP activities, and filed April review wildfire XX. XXXX on SCE and incremental of of Recommendations of on $XXX.X Draft those recovery $XXX.X cost the the revenue and requirement its X, Safety

across our developed to operations, any with communities address and as SCE mitigation reliability area has to better local concerns. perform are ahead to SCE long a deferring for jurisdictions Turning critical look public related outages our home. safety, also work outages as while planned wildfire of XX-day non-critical at continues coordinate staying service to and

year we also enhance analytics mitigate all data XXXX Additionally, operational plan in SCE strides tremendous implementing filed and capabilities and to made This Plan bolster awareness last SCE continue wildfire Wildfire and calls our practices, to to February. Mitigation has in XXXX infrastructure, harden for situational to while enhanced technology. risk the

of programs executing and as as they the us. by are our We are essential the as viewed these are communities by quickly and possible, State to ensuring critical safety as

year another of process to At team including PSPS. SCE customers. in and significant playbooks care shut potential wildfire-related areas, jurisdictions fire further of safety advancing Incident the and information This on potential measures to more generators. customer power working we areas or prepare impacts for power time, one focus on the risk Team and customers, the is of further earlier minimize the same of to outages, offs, like developing Management and is on our automating back-up detailed continue local timely established PSPS our this to to high re-route public This more reducing dedicated provide use customer programs work,

to California The transformation California’s Pathway of I Force our EIX’s industry policies strategy the the weather its exciting and as company all and consistent our and where energy through reopen State’s and long-term of be electric ahead. major water economy of events is key in and will Task combat the position role, decades found electrification areas the on state elements heating. extreme a the change for deployment energy, blueprint the catalyzes vehicle to of broader objectives. sector, of how clean plays remain economy for our these that We prosper can to expect transportation calls Governor’s It exacerbates stations our with XXXX, a committed clean clean focus our strategy space looks the building climate and wildfires. foundation in charging and electrification the energy,

comments all and serve we of support our we power we I public. my the the both with close doing and also help on this hard lifestyles; I healthy. so working employees; for service an the of the machines investors are staying emphasis safely. our provide. who hope power we your Once colleagues I well, of We support, ones commitment protect again, and are your XX,XXX to my you of on and am want and safe, help essential I economy; nature all proud very lifesaving thank loved and that

report. Maria will that, provide With her financial

Maria Rigatti

Pedro. Thanks

rate our operations My results, XXXX will impact XXXX cover topics capital on the other COVID-XX quarter and expenditure financial guidance comments performance. including today our and first and forecast, EPS of base

given As meaningful timing turn Page less we have said decision. to Please GRC the previously, X. quarterly of XXXX year-over-year are comparisons the

expense. was reported at same due per by share, at in and which International compared loss increase share an interest year. SCE per EPS primarily offset core Higher EIX Other, earnings last to core to Parent Edison period was $X.XX of core flat the fully

From of the dilution. EPS This a activities positive was partially table which share see $X.XX the $X.XX driven primarily core you year-over-year. SCE by had $X.XX that right-hand variance was higher on EPS from core count of offset by side, will of SCE

driven of a with, of are items due the of was in the To higher adoption revenues primarily variance This higher QX few EPS revenues $X.XX a XXXX final SCE. positive $X.XX. mainly CPUC GRC accounted There begin to that the had majority for decision at variance the of by XXXX.

number to higher by $X.XX. the base due of and was the higher expenses FERC growth combination negatively legislation new a Higher revenues year-over-year rate This variance SB to management $X.XX largely mandated training The of $X.XX increase equity and State’s is largest of in in a due expenses. layer, component trims. and vegetation increased XXX positive costs. EPS an impacted by a wages the had O&M increase

authorized expenses have each the We summarize pause and past, are that before I the deferral expenses for amount actual of full incur are for tracking to to to memo regulatory the are record incremental here for the From this a various of track in recovery. Only begin, wildfire-related eligible costs the GRC methodology of accounts. activities. and authorized impact the we accounts. same but have to amounts annual want the year, memo and in these GRC asset the costs we in incremental that we To amounts qualify incurred for probable discussed the to there the authorized compare that start in

As results, results expenditures which not future and year-over-year or timing impacts variances. can quite of quarter-over-quarter deferrals a point quarterly quarters. drive pronounced begin comparing at result, and the when considering reflective the The be of the

we previously, lack Finally, recovery as to due which of recorded we of have seek have will a said asset precedent. costs not we for a regulatory

impact negative absent due in wildfire in related There XXXX. of recovery costs impact the incentive $X.XX $X.XX also the Next, which there from was insurance to short-term was year expenses to a was negative a compensation. prior

for variance economic allowance bad the pandemic and COVID-XX legal to increase $X.XX negative and primarily higher estimated of the impact expenses. related in Additionally, due there workers' the comp debts was to an a

expense As Memo we CPPMA COVID-XX XXXX the regulatory approved recognize bad protection for we probable authorized exceed track the asset Pedro consumer to new seek GRC GRC authority for and SCE Pandemic the the establishment in will residential is costs debts, and, amount commercial excess the record Account, a customers. will CPUC for earlier, debt of the authorized conclude bad recovery. mentioned to Protections once small of we amounts of amount

proceeding in these and track will CPUC. seek We by an expenses cost the ultimately recovery applicable designated

tracked costs tomorrow this to overall Letter file the to Advice expect be scope We an account. including of in

negative $X.XX related expense increased impact. a to borrowings had interest Higher

positive tax to a on passed impact variance earnings. with back was benefits to $X.XX no there Lastly, income related customers,

expense Parent had outstanding. to shares was borrowings $X.XX core to due EIX in related variance by and in and negative Other quarter. increase interest increased was offset partially of This a largely the higher $X.XX the

capital GRC capital Page capital CPUC capital spending expenditure spending. certain non-GRC includes X FERC This CPUC-jurisdictional SCE's shows forecast. expenditures, and

what of execute you forecast is with This capital to in February. robust unchanged $XX.X we from billion a continue We to from program XXXX. through $XX.X XXXX shared

to to comply pandemic, as customers due impact our practices with COVID-XX the on However, are we work modifying the reduce stay-at-home orders. they

working into strong with have continue visibility we our planned ensure to governments the mitigation on work are We being to have focus but local a essential wildfire they efforts.

that met significant continue we the the impact in term, COVID-XX and customers’ our program assessing the as to needs this, the resiliency the safety longer of and of energy are potential opportunities We of and but capital invest clean our broader are on XXXX impacts are in working future. see the investment and we grid ensure for to prepare

SCE’s periods. capital compound This the two rate rate case On annual CPUC- weighted-average FERC-jurisdictional and of a Page show levels to will in rate level $XX the by X, base increase over request forecast. requested represents rate total expenditure base XXXX. billion X.X% GRC, we growth At XXXX

laid To billion, Year SCE’s scoping California memo. Test the of Cal testimony give a revenue schedule its Cal million you reduction XX, PA with X in on out the request, an intervenor GRC, of in proposed requirement on PA $XXX filed XXXX update XXXX billion. in $X.X a to April from request the Track $X.X Public response line Advocates, the

X.X% year TURN T&D increases intervenor’s They are and requirement and and also XXXX. approving June X to capital on request conductor of is post-test covered prevention difference our testimony proposed rebuttal expenditures the PA XXXX for request. scheduled on provide XX% May revenue to XX. other program operations. and Overall, wildfire was the The and in mitigation, due grid in related intervenors Cal proposed between our primary and proposal SCE’s approximately of

third sets the a CPUC forth litigating earlier cycle. in for procedure with on issued beginning and Track XXXX schedule May QX the decision in XXXX filing amended and schedule of SCE’s with ruling GRC scoping XXXX. year XXXX attrition Additionally, The proposed the X for the an month, this a memo concluding of

COVID-XX the the about of to onset and been the we’ve revenue earnings. potential asked Since pandemic, impact

status the of regulatory also than have and strengthen to and strong pensions, recovery other We benefits our on benefits or funding PBOP, conversations enhancements had and liquidity sheet, the mechanisms. balance our postretirement related pension actions

X out to on are X. these I a to which items Slides address take am laid and going minutes few

four to authorized various and Requirement BRRBA. or receives Balancing sales equal utility supportive decouple decades, in For retail the regulatory electricity amounts. that IOUs, to particularly revenues authorized to SCE has sales been revenue volumetric volumes a related Revenue revenue risk under recovery mechanisms. cost from decoupling load so has track nearly CPUC that customers California rates base CPUC Base through in over in or of had from We our rates of the due Account, collections variations construct

net and refunded COVID-XX and from changes. there volumes, amounts the including authorized no adjustments in impact are volatility or developments. levels so either from These revenue billed to between Annually, SCE is all load differences address SCE’s earnings sales related collected

CPPMA will the record new as costs. noted consumer Additionally, protection earlier, request to use I we to

will We or GRC, other cost these Energy of annual recovery Account, seek proceedings. our in Resource Recovery

and In activated tracking we costs. employees for themselves dependents Memorandum addition expenses CPPMA, the CEMA, COVID-XX affected The IT other the other employee this has as Account, track be incurred teleworking, to to benefits our a account COVID-XX, during offset care include be which used or support result facilitate savings to to will will also and of and Catastrophic record crisis. by to of costs workers allowing SCE Events costs well-being to costs realized work the in safety changes additional This will any the recorded.

bills, with decline XX, order protections. in the X% of you year. given customer experienced I load prior versus also impact April particularly a load customer COVID-XX of system share stay-at-home on importance to-date, SCE’s want the to Through the on the during and has SCE

On classes. each Slide has While customer class. within down, see varied load you the total X, changes customer is can across load experience

evaluating impact the cycles on versus behavior. the still Given full the customer order, of stay-at-home start billing we payment the are timing of

seen of in have or residential debt increases accounts we leading the bad for expense. for likely increase both deferred an in receivable commercial is This and However, a payments some outstanding customers. number indicator

that, of Please are These have turn pension well XXXX. of positioned allocation to pension on qualified fully months a benefits XX% asset were and plans end we we early XXXX, volatility multiple with significant Page range as have Also, the XX% to a approximately the our year-end. level in in from trusts plans is X which which At PBOP. includes funded, resiliency of seen PBOP through provided diversified of through some our the information which managed funded. total,

pension are to contributions regulatory balancing asset makes a because unfunded is these plans, and the for its to status through accounts account no plans and earnings. to we a to record SCE true impact annual PBOP CPUC year up us these contribution. approved every Also, the actual contributions that there recoverable allows of

Please Page X. turn to

continue ensuring strong flexibility. focus maintaining and on have balance We we to a sheet financial

have you credit $X.X a billion. see As and EIX of page, liquidity $X.X can billion, facilities of hand bar billion available on on and consolidated April from a SCE which the combination of cash profile $X.X the is as on XX, capacity of of

debt for the and and of approximately debt maturities $X in year SCE the long-term EIX no of billion rest have maturities XXXX.

of We in latter XXXX have accessing issuing financing April. our March $X.X EIX in XXXX and for million includes portion funds market debt the capital plan. SCE and proactively at January, de-risked billion long-term of the The needs EIX. debt at by financing $XXX notes This the

related related $XXX XXXX financing XXX-day Also, by put need our place flexibility to first is wildfire a but does to XXXX in billion. facility an a component, the through market authorized to recent XXX-day credit be provide for SCE This AB return term recovered to earn to loan and be in place an $X.X eligible under the for loan revolving equity that dedicated in COVID-XX. mitigation not securitizable CPUC. volatility term dedicated-rate the EIX quarter, put once spending capital also million given will equity

grade debt of support a The at financing carry-over previously and framework at this remaining of plan long-term we financing just million $XXX capital $XXX growth plan EIX. is which SCE our discussed, our in is of EIX SCE complete while to Our XXXX in for XXXX. drives disclosed that This execute we is both $XXX $XXX equity maintaining investment I million XXXX at capital year. in million of equity, growth plans the needs EIX, framework includes expect which million the and which disclosed out SCE to the ratings

ATM million of that $XX XX, As approximately internal was and March programs. of through amount raised

on in at in we executing have put capital for loan equity give remaining EIX plan XXXX. last flexibility month I As volatility the a us given we as recent mentioned, to deliberately markets, financing our term work

X Page guidance the key XXXX purposes. modeling and our for assumptions shows

In re-affirming by our we in range to to of of not bridge our midpoint have range showing this the for volatility a let share. introduced are light of COVID-XX, the per $X.XX guidance me $X.XX explain done the We thoughts past. as

base with from started rate CPUC- assets. guidance jurisdictional XXXX and our Previously, earnings FERC

information have As you this slide, are operational how of on for on for unchanged, the base and from this effect earnings an rate will the remainder assumptions can year. plans but our our see financing COVID-XX execute we

impacts As costs regulatory mitigate earlier, constructs I to incremental are California COVID-XX. the mentioned will that well there as strong reductions as related load of in

be are because may some result the such stay-at-home have there of realized a that as as been order. However, reduced activities, savings cost travel,

discuss government to be related. a costs savings recovery that more variability savings authorized. than data-intensive range there to process of Therefore, new will are It it specifically to I earnings and is will typically used by are These various is determine rather so within drivers the be before detailed driven across be part costs and additional a more relevant COVID-XX and directives that offset COVID-XX mid-point. expect the guidance, will which our

a gain specific an I COVID-XX earnings giving impact on to of as of you deliver more next this the in California. continue the call our customers we update service forward to essential to understanding look and

remarks. concludes our That

Sam Ramraj

the for questions. Sue, please open lines

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

Operator

[Operator Research Instructions] And that Vertical from comes Partners. with Jonathan Arnold

ahead. go may You

Jonathan Arnold

detail. the all for you Thank

- up talked in Just I to you something accounts filing that are terms covering you of then is are track that in separate to on for of I what that to a think WEMA is just one piece? those million. could wildfire some proceeding itself. the - just memo a like tie the saw or number, $XXX the about - maybe under WEMA But those XX-Q thing, the the filing an update that And

Maria Rigatti

Sure.

looking notes in show accounts, that the has million. the the accounts, I'll to the regulatory moved, now From back where you're say, think we $XX memo balancing and number accounts. I So about year-end

So about in another that account. we recorded $XX million

this the So year the filing we track increment that next is actually recorded the with in that we will Commission. be

you if QX So, are of incurred track XXXX in filed part gets XXXX. actually recall, the costs the that of in

you're continue of accumulate at, soup we'll so in that to wildfire related accounts. So not And It's at, that or the line that looking alphabet these account. just WEMA were the is notes, the memo costs. it's item account you looking

Jonathan Arnold

about But correct? the encompasses Is of some you Track X that talked filing that balance.

Maria Rigatti

to That's decision right. see seeking would of million part The that expect Track revenue early year. X the that of and we recovery filed requirement, in for about is we next $XXX for

Jonathan Arnold

see. I

Okay.

Maria Rigatti

and at is CDC primarily or a determining proceeding, insurance which is proceeding required. are evidentiary hearings Track associated the WEMA, with - bit are ahead The whether process the X aimed in little the costs, is we of of that

see if they forthcoming or decision evidentiary then - understand now, in and whether could so, actually a and confer need to the that. asked not meet and And be will those been have those could hearing. we Right take parties required are will place potentially following to June

Jonathan Arnold

to my down are then XXXX, since some starting your of And these to out that in what quarter? work balances maybe then the prospects as last and Okay. evolved follow-up, how on has coming view just

Maria Rigatti

to say we I in the is think have get to one on then play you issue have The the we a trying days it decision will of the into get the always calendar decision, a I'd rates. roll is same, and So later out. terms proposed timing to where reasonably there of proceedings you on is the thing get XX - to get think

the reasonably they are quarter. a things still could in last of variability So some that. there a But as same be place result as were

Operator

The next from question Fleishman with Wolfe is Steve Research.

go may You ahead.

Steve Fleishman

wanted clarification. So to just I a - make just

reaffirm commentary that about this the COVID, including related of speak, to the that your bridge, did more you right? get to You of within with you is the XXXX dealing your do current and in there, all And way think range? just guidance, just view of you'll pieces impact so the moving Is exact is your but be kind correct?

Pedro Pizarro

of lot moving a Maria? pieces. But on Yes,

Maria Rigatti

agree I Pedro. with

that think range. the I reaffirmed we

there I lot pieces. are a moving think of

And buckets, so because very, we we very it would level tell I'll do to think in think want keep I would I if precision to bridge, I build you, try try question. things putting - that I to - if it keep convey think of that precise

now, on think that's moving, the trying year are. we I But through to still just obviously. we're range, we be So that are and straightforward with right and able things where move maybe we'll be guidance to provide the more specificity as

Steve Fleishman

not if just so the I it's California too how into probably into getting the And get work, of I much - every you because it. it's kind Got detail of it, and forest. think get mechanisms trees

of revenue timing lot the the issues if not It's and and just a the forest, and when of the up are picture So timing tracking overall of recovered. for -most despite of things such the issue things. you account record just you of is of there's going way cost, forest, view, that these lot is that the different these intra-quarter, a of components you mechanisms to the overall all recover a lot this, have of do I'm - the the the back that volatility

Maria Rigatti

definitely collections avail. some years a are recovery is under work mechanisms a old, in lot to at Yes, But I year-over-year there this think of that kind of of that us XX especially them of methodology. I way accounts of the allow that intra-quarter completely create memo agree mechanics variability, under costs the just point, recover because in variety or that California,

Pedro Pizarro

things how to that be just when - let one in is just here, not at the things our be reality you we out and doing, moving working, But workforce to the to to might of to think things doing, be that our COVID-XX. are is even so different work of help steps there, And the we're you employees and the make are if from to terms the home, me the the level. field, in efficiently all part maybe keep had what add those along many spread in piece what about safe need we've bring clouds way to even down decisions level, be to up this do changing, forest practices pieces, we need actual it down our our to how them teleworking slow they able folks providing there

it's the so, need accounts. demonstrate when that good track, decisions council, senior so process tracking that why and described, need in come oversight have we all have obviously, to to amounts only much have we'll terms IND we'll not but time, those will a That's around were the And of There management this over the made. we that I decisions. myriad and crisis prudent the we

go looking State will at the the to it's we that just economy, involved, allow office, normal things, with blocks discussions around the with at whatever new State, and after how looking we're the with the through is and managing but about the how not to But company other this. crisis, the the then overall our this the because is, pandemic, building through back the this about is CPUC, are about Governor's having others piece informally is thinking

do vacuum, peer the utilities to State. the consulting we're doing in what consulting but we're also policymakers, in so, outside State, not trying And a

good - all it we're to that bolster helps shot think ultimately should I do case trying prudently, all So this for have and a the recovery.

Operator

from with is Michael next question Lapides Goldman Sachs. The

ahead. You may go

Michael Lapides

Meaning, it lag how perspective? quarter a is is call quickly much if BURBA. easy timing flow and purpose, purposes, work but One or two How a does how impact, on the there? BURBA So quarters, does XX%, from an demand down, in is in one, is true-up? for the mechanism is from the earnings impact, no a there which cash there

Maria Rigatti

Maria. it's Michael,

of year. BURBA gets into put So, beginning the rates at every

an So it's annual true-up.

Michael Lapides

it. Got

in put the that beginning any the lost along So use other the a number revenue rates adjustments? revenue of in I'll you've if term it is, of - got number rate kind number, lost at a with words, gets whatever pick next year, other

Maria Rigatti

working, been That it's is how yes.

Pedro Pizarro

many, been way that years. It's many, working for many

Michael Lapides

automatic it's the for get file docket, do a approval to get BURBA, Or through to go regulatory you have And update? an process? actually

Maria Rigatti

than a works little bit differently BURBA ERA.

actually and power accounts go goes beginning With rates. purchase automatically and it into is at a our of rates to file, what into through, that accounts, of talk probably people BURBA, about, had they of we just recovery that then thinking the kind really and the year. happens decision, you You're then

Michael Lapides

remind you've Got think question. on list of you're your last got or things base that in included or Can what a And rate then it. slide, referring implies? are I one just the transmission that. And CapEx infrastructure. us growth that you the was what CapEx not On list one to,

Maria Rigatti

provided in their we've be electrifying base would out The this and something - think says yet this out in looking do we that plays is that growth needed, I our think longer-term the that FERC will have of one of certainly transmission more projects long-term to, the needed, calculations to at move you're and what So, is that are over but the transmission drivers them of some be a when not California, put transmission point. here, reference as We it CISO the rate are, transmission I time. be will infrastructure. plans has growth for opportunity to more as economy,

Pedro Pizarro

that developing And on that to they develop be that input Michael, owners based just the participants that market - get other ends based to piggyback and identify utility, transmission the on existing sent from the then user plan, overall are remember, [indiscernible] that on of or extensions projects [indiscernible] extent as projects, transmission open to has refusal. upgrades centers of a projects to call of and new in the identify brand owner, that are the competition, right they first input in

other their And lines what in some what know existing or that so, would projects to be completed But projects. will XXXX, or think SCE combination that don't reasonable - future of first XXXX, projects might might of have for you. some renew of have extensions the I are and we would there probably right or it's we have refusal on, that be plan expect upgrades

Operator

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

ahead. go may You

Julien Dumoulin-Smith

that mean ultimate Can this. where and that everything, you're follow missing And up going on them when not to reduces I ultimately, here the you're conversation, about as dynamic to of trees to pretty not was the COVID new you're about the make year? I'm the is you're wanted to the the to simply Maria, me Steve show offset second crystal this going to to extent number statement you're some number for that's variability about which and conceptual ago strictly a think netting an ultimately, income just able intra-quarter. expense. from seeking on I you're seeking you added point from sure deferred, whole necessarily and be going this or not when netting, raising here, and clear this it, amount your is in still that sure So net CPUC volatility that tell this and to the make forest we're just talking you account missing how up the account,

Maria Rigatti

So, the you mitigation I around just earlier not about working accounts, my that's probably in - COVID remarks, wildfire just prepared things how and variability well. as obviously covers but talked memo

of those a is on in bit areas. going there of So activity little both

some is around than COVID. just there more So variability

things the going or costs, amplifications already in our In just be space, tracking of that the whether COVID authorized are we are at looking those costs correct, be of were that were to GRC. all not

able amounts, expenses. we be And all authorized to defer first so, in be the then only recording GRC and would would

tracking driven also our then by an are well. frankly, of And to in quarterly because a relate one being to terms be our easy And That's COVID-XX now. recovery, I We of right categories that right that's government us go also travel. standard directives. we as really through gave traveling of process have example probability things because savings of none process is of these of part that

manage process, sure part every at think And also want some going to I well. want year. we're that with provide to that's them. every component the the of And as we're have we some I reaffirming and it create go we didn't across make across range, then those with all know to piece we'll today. variability of what could think why, So other through categories that looking level to we of always we while guidance And specificity that be

Julien Dumoulin-Smith

if of up the cash the I with that equity but is respect can with generations, capital it. the year, unchanged lot Got and cumulatively of presume, that's within your capital you with about here, alluded follow changes for I of working et even how drive to in earnings considerations, generations flow involved you're sheet to I COVID, just cetera. And as fundamentally generations. working or to or that so thinking doesn't this timing quantum litany cetera, obviously, respect that And notion commentary metrics, well, necessarily change respect given there's a et FFO of decoupling, not - other any to, accounts does that, presume. latitude balance on

Maria Rigatti

There's lot in there.

of focused that but very So on focused mentioned earlier customer I We put on cetera. a sliver et an obviously, really and our in certain facility, we're was behaviors, cash spending. did flows credit additional capital payment

capital spending, be So will that ultimately the amounts securitized. the AB XXXX

say would - so normal up So facilities. course we our free also into that I'll credit place put that

one us place $X the and We But, have and we flow SCE, managing impact. facilities liquidity manage credit issues, be billion aimed so payment putting think yes, customer that have really at cetera. et been various that down facility was help which would we cash at the the into

is think at In I for loan of back put gives us announced equity around obviously plan that year, the We place your the still in flexibility same have invest to we the growth that question ratings FDE at in QX. well there. plan. EIX as SCE's terms opportunities, The which on we say the we term both the are as maintain certainly the timing financing grade EIX. to to But in philosophy, still investment have and I'll same create opportunity

we with So continuing our will plan. be

- think helpful. we're the California rating be with But our the think of the facing plan. pursuing be find to going I agencies some around financing regulatory to I still are COVID-XX issues we're very very constructs

Operator

JP Our is next Morgan. Jeremy question Tonet with from

ahead. go may You

Jeremy Tonet

the wanted done to not earnings the in when here, clarify to that Just you've putting comes it here bridge past. the in

not Just about there that want the clarify this? kind of type is to end provide that that this now the think range too necessarily right you dynamic. way to right of to here, for Is just indicating uncertainty of lower much the

Pedro Pizarro

range. and we're and whole I reaffirming right I mean, reaffirmed there providing range. we're think that to just out midpoint, pieces of are moving parts the lot and We're pointing But earlier, Maria bridge now. captured guidance well that not the a we've a

Jeremy Tonet

equity just a funding it. for second. to And Got real wanted then there. quick That's turn to helpful

blocks just XXXX timing at Just you given either. also, capital the point consider really your in any in of given wondering further of the or volatility raising the unprecedented marketplace in And XXXX, was here, that ATM for volatility into if markets way has looking would a seeing continues? for this strategy carried equity, portion we're equity equity altered be doing this if it at

Maria Rigatti

continues to is back kind financing to So think still the plan What Jeremy QX put XXXX is plan. the you done flexibility at for if financing up the one our the at to we've in is plan. But same. we of announced that look in about our tying term of I loan terms in of our the EIX, which, earlier questions, help plan quantum, XXXX be

Operator

from Byrd Morgan is Stanley. The with next question Stephen

may ahead. You go

Stephen Byrd

just year done, work to a lot first wanted gave. on that approaches. shut about that look just It further you Any that year. whether or how like terms bit off in color mind compared sounds to there's I year a you little approach? PSPS duration of might it the been thinking different touch how this just about be Pedro, been last talking commentary, that's sort this scope Would around more of might look of

Pedro Pizarro

Yes, do that. Sure. to happy

all since a in through the lot been so, last going of I year. comments, there's like really said And on work

out you remind Gas Diego or performance, year's the customers you to that. percent population similar the was some look or it so was I'd call when other. of point to Just X% San generally who impacted of at last throughout & it Electric, of I were at think

like areas average investment risk a in of sectionalizing distribution into was high for can of And the circuits area. our I our years fire in lot circuit product We that subdivide on four. think

high portions three are fire there's fire portion that a risk that So there's but circuit, non-high risk. of

scope. that limits parts, and one take part, can You the not three and

major So towards as the particularly - opposed other been be energized is what that major to one to fact colleagues on have item. based our And last that then, the working we forecast. have actual at ability conditions, XX-hour they to ahead was a comparing PG&E, year was the we now, item

those were last helpful So, really year. two

year? thought last point. since happened good in you what I it's forward, look starting You to anchor the

on further refining. working been We've

Let to our that's grid, have to further should allow believe, if There's a been capability them more tighter, start should, bit done just granular capabilities, allow work lot targeted forecasting it. modeling piece. tighter you will, us and modeling of that refine mapping make that the been with more forecasting fidelity me a a to higher be we in a us around

think advancement mentioned I year playbooks. Another I last these since was

be on set quickly just can level, lot the we turned using you may terms in time de-energized, of of variables a fair heads that of variables may do a so that real. that work ones circuit and team portions close you we're the trying that be versus do good be what are to rather to by last more to instruction a are an So amount to real of or have having the than that that or getting for the move repeatable, the for number did de-energization to the up update approaches, do as in they cookbook over a what that static, as one, a to circuit a and used need circuit off, determining customers of more update more get time, really year correlate where things to job ultimately the planning that

from circuits areas. that was were flyers, scope I'll was narrow were did to those. de-energized at further we the the took year, the high-risk - did the look de-energizations on because them that or thing they there they another And times frequent last that team ways And in a at multiple you're of call looked our,

But can so here. further the year, will, they been we across customers doing - were that to or you instead that to some that circuit narrow higher the capability re-wiring, adding fire I'm In that taking are going circuit, some make some XX and sectionalization numbers community. people might XXX actually the trouble spot if the you a to highest area, who more down out cases, reduces last interest isolate pain year doing up risk XXX have - if within people, times the the have several during in if overall spot,

I maybe started should've finally one. then, - And with this

out Another year conductor covered course means more system, another year's year-to-year the mile of That there. over to in continue worth deployment improve progress the our piece terms of WMP. in hardening of particular will

that. And and so, more more see we risk from should reduction

bare and much impacted. the put risk year-on-year continue conductor? covered to areas risk system conditions, out that hardening number in of to the wire of When continue why fuel of have product particulars us decrease there, that you or how the decision decrease like it's dependent to versus you profile variables to so, will of allow look also at all of And high-risk together, do if Stephen, neighborhood. not, conditions de-energize informed that the the about that's customers the we on of weather But we is think it as

same conditions exact Bottom lot line we that long-winded, on we the little but energy expect that's if amount year, last that it would of there's a smaller station. on. all some so we gone was - that the weather a proportionately line did is saw Bottom same

you course, meaningful as been progress. last Of a year, some the there's gives but same just see it won't sense that we exact conditions

Stephen Byrd

on the you here, pace helpful. your as stand infrastructure of of the do increased of one key of you providing That's program. of a in high-level in that separate just we the pace terms on the status How meet about Would program? rollout the that state? just question program mind kind just from thinking And update that try milestones penetration to implementation, EV EV on extremely generally

Pedro Pizarro

Sure.

second $XXX is had approval - we CPUC had million is approved $XX summarize program for- this tune a we've full programs. ready already Charge a program. large pilot so. multi-year approval been charge I'll the we heavy and range and And so key had have duty for or So the as and or There, Ready around sort then our heavy remember million medium that the that's program. - the which large One transport program, to

We same O&M mode, extension around for all our would continue in that. in considers and gave $XXX I ended an program amount of the of that million Basically but what application is a a CPUC $XXX think bridge capital capital. had while be mode pilot to million the us or about larger

they that June - the I And the they for this considering the months four When so CPUC. six is have sitting application Commissioner the extended deadline it the year. at believe of that extended I months XX that and on or ago until lead be docket expected who he said think will ago in when the year. extension it's this six-month he is Commissioner early a PD [Virchow] out

June we've PD a getting not seen with a have understandably, from but they've look so out certainly, lot I et don't forward impacts, cetera, there's XX approved that we heard that but talked different we deadline think hopefully to that the COVID going in timeframe. on the yet anything

on, pole slowed Charge stuff. some in has of I work and progress sales down the premise customers period we tell close just come passenger keep made somebody you less working essential it's and deployments lot vehicle Charge than COVID to Ready. on a in proximity. that this transport and on terms work the in through may the ready requires have the on the it In to be of on working customer will both meantime, Probably Ready of say, the because lights not and installation a

just some there long-term we're governor unabated again plan near-term in for the Governor's reopening this been about not think that. but of But for the a some the mentioned, think state. the electrification and long the lead I back that's that been that has state the need for I energy economy and the does up I and part as clean there's looking So, we early economy. pieces - has How and of the that follow slowdown how up ramp as as is long-term at. bolster of all that are discussions viewed That you in term re-opening Force the one do about big fact, of the of a Task and the how continues and

Operator

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

Sam Ramraj

thanks conference us Thank joining everyone This follow-up for questions. concludes call. us you, Sue. Please today. any have you call the And if

may You now disconnect.

Edison International (EIX) 30 Apr 202020 Q1 Earnings call transcript