EIX - Earnings call transcript Q4 2020

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Operator

Good afternoon, and welcome to the Edison International Fourth Quarter 2020 Financial Teleconference. My name is Missy, and I will be your operator today. [Operator Instructions] Today’s call is being recorded. I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. your begin may you conference. Ramraj,

Sam Ramraj

and Thank everyone. you, Missy, welcome

include are and Officer, and team. Pedro difficulty. available speakers the Financial bear today presentation. in are and I us our Executive this if President are call on mention Also President and These Our technical would so at any presentation. are call please Maria, Pizarro; like with business Form the regular that remarks Materials locations, Tomorrow, Chief Executive prepared today’s call Maria with different Rigatti. experience members executives to supporting and other of Officer, distribute we XX-K, from management our www.edisoninvestor.com. you Chief update we doing Pedro will teleconference Vice our the

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

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

Pedro Pizarro

thank you, Well, Sam.

lower the has at one major share initial range, equity earnings is of on our SCE $X.XX we financial changing of $X.XX a for to adapt and faced ago, targets narrowed cases and the basis, core in reported and progress dilution. Edison with EPS financially change and public grid safety. and last on to discuss was continues increasing midpoint the of Let substantial Texas me by strategy. of program just accomplished states comprehensive is and many year mitigation Climate than COVID-XX of call. start updated support resiliency higher, dilution, despite XXXX. $X.XX pandemic. core $X.XX of to were due share of Maria mitigation collective within residents majority the climate on XXXX, XXXX Today, was of a EPS we $X.XX to was last detail per International to adaptation. physically top remarks. excluding This impacted performance and all those operational our Core continue On decline This wildfire to call In SCE’s of made priorities, the frigid our guidance exceeded our exceeded the range story the efforts earnings and SCE. our challenges climate advance SCE industry other goals, the strong will for the an sentiments that vast all the the part its her week’s our there, by in in during protect its performance driven weather.

with of have the We the issued of page SCE’s X record-setting wildfire season infrastructure, strategy XXXX, the California of last execution execution slide of Since several release. end associated mitigation we despite measures highlighted of risk that utility our on earnings SCE’s with its reduced and wildfires has deck wildfire year. progress a

of further For by options at it early efforts. second to caused exceed decision-making, continues how the risk-informed end XX% for the SCE fire advance wildfire reducing be plan CPUC technology-based equipment to distribution not covered year, and mitigation overhead its filed today to XXXX long-term and which month, approximately mitigation by management, alleged within update, innovate grid engagement. wildfire mitigation capabilities the has wildfire matured utility outlines of A believe SCE its to from approval. hardening insurance. prime program, utility this plan the subject high which the solutions areas The miles describes fault is damages ignition Earlier risks. SCE’s example as will increase the over XX% from data community covered such and further risk detection we any consecutive conductor is will circuit XXXX, to its percentage implement do accelerating wildfire

As SCE compared described XX% public consideration. XXXX, or PSPS with operations, ignitions safety in by only in areas being same PSPS XXXX. fire the conditions WMP, SCE SCE the paramount shutoff, continues experienced uses assuming estimates when its as high a XXXX power its XXXX improve reduction warrant. in risk as in to safety public conditions to

paired the President important and in received in includes Action letter last SCE loud that the and customer PSPS devices, achieving February all of opportunities improve are execution All essential and January risk a SCE during the of this at X.X-hour based despite footprints especially in with January me the found on to and SCE there the existing that hardships the commitments PSPS, enabled better damage the shows possible, need improve XX said, PSPS customers. for XXXX, In more stations for wherever resort customers. XX XX, was weather that noting devices, could Let potentially better limit from use communications Batjer, reduction to XXXX caused post-PSPS interruption. need underscored in that Plan minutes of XX that and and to PSPS way SCE’s near-term further XXXX, of underscore to automation CPUC care ignitions. of our support on its the assessments, customers, incidents leaders all a wind-related least clear sectionalization By tool this patrols PSPS the in with filed the it have hearing That input creates. on and community installation recognizes of XX%

season. significant $X XXXX-XXXX approaches their a This the $XXX out In its proposed that next of lands. harden individual prioritizing fire budget, properties. building would billion and to start firefighting SCE, the these additional early fire proposed $X support communities has and to action health Recognizing need that the investments and projects state Beyond Governor be also quickly, to high-risk homeowners forest move technology the firebreaks million that an around protect coordinated capabilities. prevention to prevention for his to before maximizes for in strategy Governor science-based on the been includes state billion grants

suppression, statewide XXXX related on state and combat total, and financing Shifting and Woolsey make fire of utility The businesses. help resources approximately expected tankers. last SCE toward pending budget seven make progress the and wildfires Events. adds Fire large wildfires, significant community litigation. the new continue best resolved affordable events The to suppression more past claims air Commission in wildfire resolving XXXX solid to be California in phasing has the Mudslide XX in this to will has month, seven they the become announced litigation. an the season The hardening will the establish remaining estimate SCE statewide two-thirds In and needs XXXX. catastrophic. that Last to the quickly Hawk for home available call. equity crews SCE with in later support additional state pending funding fire to on claims risk, total five progress fire also Governor subrogation For residents will Black These made to operation and and another help continues insurance insurance XXXX across to reduce before provide these resolved update and settling of a all the plaintiff standards will Wildfire plan established and September. Maria Insurance to individual losses helicopters, move

emission Batjer’s actions. President to regulatory President has to en leadership to confirmation Senate. Commission’s of goals. Batjer reduction of CPUC the reappointment banc Turning term, six-year stakeholders. the about We by affordability many the the implementation hosted the share greenhouse ideas subject welcome Yesterday, gas across CPUC for state’s a an energized

clean were and follows leadership COVID-XX, have on to rate of we many by The Given our issues timely the Commission a the XXXX in proud to acknowledged staff system and see other growth raised discussion California the discussion well economic manage reinforced years SCE it is which Pathway report impacts utilities, below many the others. average of this of with we XX% and increase across forms and they air today, that needed result XXXX efficiency average to thanks decarbonize electric in energy spending the the including equity, of technologies. the greater actually but in may than less economy electrification electric costs investments greater and all do analysis, of the local quality will energy grid improve customer affordability through to

to Transport, light-duty vehicles, its charging forward. it used including support power Pathway electric long-term as XXX% launched goal The outlined Charge budget committed to ahead, and for which includes X eventually role heat and zero-emission the to Grid building launched XXXX the Looking particularly point in medium medium, all XX,XXX of programs plays X,XXX critical of infrastructure infrastructure Reimagining infrastructure approval charging sustainability, investing light-duty investor-owned to the utility of proposal strategy and XXXX. and pump XXXX, medium XXXX proposed vehicles. with to investment Governor’s program, will offerings grow achieve will improved vehicles, in for support the to papers. The program vantage to, vehicles opportunities and installations heavy-duty comprehensive SCE light-duty fleet, new including also Charge expects approximately for access $XXX Ready electrify Ready transportation charging and vehicles. is its new charging $X.X EV for business. wires-focused underscores In continue XXXX. SCE’s building include heavy-duty significant million an its utility SCE’s to going received This also SCE buildings, heavy-duty area zero-emission SCE and largest the has the this electrification ports. vehicle support in the a XXXX by electric unique for, own in white and States, electrification, these charging through build SCE infrastructure from planning over investments This a will program by CPUC and United to vehicle has capital goals vehicles. to by of incentivize expand in electric to light, billion

accomplished cared would our communities, I and or for COVID-XX conclude, delivering all last very, and facing our the and like we safety. adapted spite each do that cared in has very continue of we I the the am our whether providing an say what of just those the relief working of field that our over and we business their year, for teleworking; reshaped challenges; in way COVID-XX We economic interact how us we communities employees Before to to proud service. with and other, customers essential pandemic. customers, I for for cared

about SCE as investments aligned the long-term government’s am with with business Looking goals. our state’s decarbonization federal forward, near utility, opportunities. excited the an and and now electric-only highly I long-term is well-positioned

mitigation her that, Maria to With clean future. building continue will provide while accelerate efforts, wildfire will energy report. We our equitable an toward financial

Maria Rigatti

we the accounted $X.XX and the last expenditure for ago, year $X.XX was Core earnings fourth our and within the at EPS an of capital key comments base $X.XX core from a year. I EPS that an core to the lower updated plans Good see EPS per core afternoon, My call. range XXXX XXXX. SCE. XXXX, our dilution, basis was International financing for on $X.XX, can share the which and today quarter SCE’s of forecasts, was would On on on excluding equity performance year X, $X.XX fourth On like Pedro. per quarter an due and strong of XXXX rate exceeded the Edison last range share Full $X.XX our by midpoint side. our four everyone. narrowed same of driven cover Thanks, operational dilution. of decline will results, period drivers of reported you than EPS for $X.XX page to hand earnings quarter the guidance items increase is variance. was initial highlight right share update much fourth higher,

XXXX $X.XX to balancing higher First, in other mechanism EPS positive increase $X.XX related negative no on escalation variance by $X.XX, had also of operating income decision. This due of and effect captured this a revenue. account. line, benefits a rate tax revenue higher largely base. is revenue the There to CPUC-related our FERC was tax variance to primarily GRC with related increased earnings. of $X.XX, the offset contributed to due the in from

mitigation Second, variance of positive X activities uncollectibles, settlement. wildfire to from and O&M of approval higher to had GRC primarily and $X.XX, track due regulatory the customer a deferrals related

due variance depreciation higher rate Third, a $X.XX negative of had base. to

equity offering $X.XX SCE’s from increase outstanding, associated XXXX. capital forecasts, Lastly, by the to I comment in lower because was growth in primarily which of expenditure on X. the the May SCE’s EPS and like shown page now shares rate dilution are with base quarter on in would

represents in electric base significantly billion at This and between rate driven over XXXX to of by rate annual X.X% opportunities level. expenditures The rate request capital see investments growth $XX $XX infrastructure. reflects XXXX. grow to of two continue base, We compound periods SCE’s to the billion case program

this is $XXX a during costs. primarily GRC result million X. forecast CapEx XXXX billion, approximately as fire unchanged In total period a track capital in decision of SCE’s Our XXXX, higher higher $X.X as awaiting we SCE’s forecast, than are spending restoration proposed was

will For to flexibility while targets adapt Please maintaining robust a authorized page execute XXXX, later developed key turn against SCE plan programs years to has and GRC to in the final decision. that in X. levels capital

of end our will second a for of We proposed it the track we inquiry date the on quarter. to a SCE decision is XXXX X remain compared a the the of While in receive quarter SCE’s level quarter. past SCE that on the Commission’s first the by believe PD this GRC, schedule unlikely that CPUC, receive experience, from to hopeful will calls based PD

to approvals cash securitization summary AB receiving As a issue decision utility final costs. on of vote the September addition proposed in after issues guidance no can mitigation a CPUC GRC. after recovery substantial a expects our decision. incremental billion capital. ongoing earnings receive with sooner XX CPUC wildfire X implements the on the decision the we reminder, a is to for through we over as days will XXXX of practice, XXXX progress $X a Page out SCE prior shows This final approvals. flow of it of Consistent than receive

The last that, issuing million a the securitization, to that XXXX Resiliency and issued financing to AB Grid O&M CPUC capital XXXX capital issued AAA-rated short-term AB the Plan repay SCE the proceeds capital request Yesterday, bonds. securitize expense. tranche of recovery expenditures, SCE X Safety order will CPUC to quarter, expenditures. In another settlement, XXXX allows approved recall financing for of the the SCE January, SCE’s may be authorizing AB expenditures securitize in GRC track used borrowings which $XXX successfully order settlement. You approved approved closed first the to & recover

filed the beginning provide a discussed $XXX will for SCE to I If issuance wildfire for application approximately second now the XXXX. of SCE Additionally, XXXX. update recover an $X premiums January approved, WEMA million previously. half that would billion insurance equity on have like we

established. two-thirds far, that resolving claims litigation pending SCE and, estimate been making of we noted, has best significant the Pedro As progress settled wildfire-related thus has represent approximately that

support We ground issue a to in supports identified will in our ratings range. by content equity XXXX, the financing billion with in framework up that the XX% continue grade to need. plan securities EIX $X outcome, investment To targeting consistent consolidated previously of with to FFO-to-debt this XX%

content, consider of equity will our program. programs, this a range including needed, We equity, ATM preferred to existing options achieve and if internal

efficiently be timing and need. will regarding conditions finance market We flexible the specific to monitor the

the decision receiving and equity clean associated grid minimal associated ongoing to made concludes the That a investments quantify Beyond achieve company we after resiliency will opportunity final these GRC. Overall, longer-term energy our the with expect this and the growth and program in the remarks. in is have capital year, needs with with our being objectives. well-positioned to associated safety the our XXXX

Sam Ramraj

open the questions. call please Missy, for

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

Operator

Bank from of [Operator Julien Instructions] America. from First question Dumoulin-Smith Yes, sir. comes

Julien Dumoulin-Smith

any agencies, get the Perhaps you sheet an the characterize little curious you I I GRC with what if any agencies your you the with about, appreciate proposed the balance filing I know thinking and where your about really to I of update, your rating is here. again, metrics how curious can context on you remarks, would as here. stand to the around how would instance. a outstanding. GRC ,if And just perhaps are start to relative I’m with think conversations appreciate provide commentary but can appreciate But commenting for perhaps cushion? bit

Maria Rigatti

Julien. Sure,

agencies are we can As all to rating talking probably imagine, time. the you

all to We as about in well on and just you where as going what’s of landed that. of as on providing them generally have risk updates operational them back with year the are mitigation and talking all last we more with our settlements California,

conversations. been of those we’ve having So, sorts

we is As appropriately. have the plan place, last metrics of but basis supportive sure why on you’ve that that equity we’re a we’ve the are that, of to I’m plan the read in out. that mentioned sheet all announced balance The or equity put before, can that back had have forward very financing range supportive so reports that the place and the skinny, support think agencies we that’s we that and the in year, investment-grade ratings. FFO-to-debt plan the and move to with issue we have look recent targeting

Julien Dumoulin-Smith

if guys appreciate can And action their bit and in it. elaborate should what plan pivot here? I CPUC you the process remarks. from respect PSPS events year I So, Can it. Got with you of last if over expectations little the the to appreciate in the expect the minimum, commentary, the provided for I then, to a terms anything? from a PSPS at we response what inquiry around on

Pedro Pizarro

I’ll he he Payne the this, Maria Hey. Kevin add have is Yes. on start sees more. with fit. line, may as so can and also

from lot steps has provided SCE of, commissioners other helpful developed communities So, the and frankly, of monitored he series for action President agencies. the the Batjer a that, plan that letter just sent, you and Powell on PUC the state That members that hearing Kevin input process, the other saw and a that of had and good commitments. Based team a Steve participated. and

more poised narrow on the on real-time work I conditions. the gap for the just is that versus right? work and on impact by that’s the You based on we weather there put right notified -- to and conditions, modeling, tend Areas been energized the and approach help frankly, in scope having helps. and around that have be modeling energizing continuous are notifying But things better to improvement between and those the but on can some frankly number forecast the or, narrow approach SCE to forecasting and to work really to that of sectionalization to for customers going the in a we of get the PSPS. like like of minimize continues, that gap to of the of saw just continue have, customers, better to between would which trying there category get continuing then

saw So, those a the lines. say, lot how customers. use the with on do with focus emergency the you leaders, some around we help really But, with process, communications actions was of better SCE government, team agencies, with the communications end community improve

number And that. saw so, of a you actions around

terms them couple meetings a dedicating of of a has process, while be the of weeks going there’s keep just updated. for staff, and In PSPS, commission now pretty series to every of the the PSPS the step taken continue frankly next to a SCE to few dedicated moving with business improvement with next president to on from months, of vice the spend who’s team, over time, along the this strong T&D all he’s leader, to approach.

the would anything on you add and somewhat along move then commission I’d So, with it’s all the the plan, there’s make formality can and there? them. sure to with rate the elements it’s in SCE action to how wanting And and commitments. that’s check-ins meet going frankly, formal its on team that say, Kevin, But more -- process. discussions formal

Kevin Payne

think, covered the you and commission. the pieces process with plan the well, the it I also action Pedro, really of

good. So,

Operator

Research. Jonathan from from comes question Vertical Next Arnold

Jonathan Arnold

are along, simple legacy pace to the change the anything in appreciate claims two-third. settling one reached had ask that Pedro? the can in the Just with on settlement if if latest of move Woolsey, of I around success things could you seeing able these you and now terms the update, subrogation being you any with But sort wildfire quantification the report you’ve

Pedro Pizarro

plaintiffs individual remaining not talking many Maria formal you Koenigstein, done. to time-intensive, plaintiffs might can that be multiple give a it’s it’s quick you’re of a may individual be individual more. established is so are might just work a I’ll of all on just have that cases, largely see legal cases. by represented plaintiffs, about the that’s common counsel, the There packages a of been The by Mudslides Thomas, more you and nature the settlements thousands But, cases. answer. process to laborious process more that. In

We’re working that. through

in We’re cases. plaintiffs the working individual Woolsey with

timeframe a it’s harder so, pin of just to pace it is that, a good for the team down Jonathan. steady at progress. going has And But, frankly and

think, numbers outcome What And see perspective, every we kinds in shared the from did as you with that today. the quarter we investor update so, of I Maria? an of you’ll I miss there, that

Maria Rigatti

No.

Pedro. a it, I that’s and Mudslides. Koenigstein on process think have Thomas, mean, we I

that move can Pedro to be an sort It’s that trying we’ll as are for quarter. out, Jonathan. updating But you going We with not pointed we plaintiffs. exactly, be various every pinpoint to endpoint of

occurs. So, you’ll see the it progress as

Jonathan Arnold

Okay.

So, to going X be effectively? that is slide a live thing

Pedro Pizarro

so. just big don’t it Yes, put much individual cases. a a on very fine to expect it, And bang comes point plaintiff to when

progress, because case. facts different for just You all expect area individualized, a natural owner very that of this kind continued in those in a business And are kind cases circumstances homeowner it’s case area. stories, of versus should and by

Jonathan Arnold

helping it. a I appreciate of That’s I is track it. that. think this good people way

Pedro Pizarro

helpful. That’s feedback. the for thanks Well,

Jonathan Arnold

ask I’ll other just thing. one

in might delay past? bit work mean, to does At what your affect sort capital the the PD you come decision-making You’ve with? the not sort could I sort a GRC that throwing second as delay obviously of long said of has how until and of about quarter. happened off spending the start a point you

Maria Rigatti

first the we of just we obviously, an is sooner we’ve as is the plan later. done well, the GRCs rather year to done from in work. we’ve which cycle what Well, past, perspective, operational But, like what this year, the than know in

do to going We’re the work.

against to We’re it. progress going

decision end the is XXXX. the capital have in back comes But, to plan very can in the we the final based what adjust, out You flexibility robust that see with. on

the hand. later. there. think, I well it to degrees decision perspective, than we from get So, Again, an rather in But, still we’d like sooner have we think, freedom operational I of have

Operator

from Next question comes Fleishman Wolfe from Research. Steve

Steve Fleishman

lot Just mentioned Is questions on the any Just please? timing, CPUC on on of just it the comments on the you a color more or timing comment, normal based more just that that the GRC than questioning later. things?

Pedro Pizarro

every more timing years, Yes. about it we now experienced after every It’s I by three cases be four will have these guess -- really this with one. years

so, the And to together, getting this through analysis a and And lot as go the see they nature yet is as of PD. pace at as to you PD commission and different seen of staff questions put need typically the do, point. really closer haven’t the you we that get

So, to what is suggests that’s PD quarter. likely the us within that not imminent

questions about be the writing So, questions, different quite that of really and point don’t set you’re to that to getting that evaluation of PERIOD, you there’s of yet. and a -- at down it’s staff kinds final as get, seem just

Steve Fleishman

equity great. Okay, billion of commentary, That’s equity then, I content. said with helpful. you And $X think, to the Thank you. respect

content, to kind preferreds I things that? guess, not did or dollars. saying if equity that total focus you’re that you way content, equity the not some think that’s, about of So, are full Is on

Maria Rigatti

That’s right.

in trying about very holistically, said we’ve market we As the are think to conditions. monitor this past,

the we equity when targeting. content, that equity about content we’re talk it’s So,

So, Steve. absolutely right,

Steve Fleishman

access Yes. tower saw potentially this could I’m lines. did along that Is sure of that sale you something One those last that SBA. transmission question look PG&E as at to well? you

Pedro Pizarro

Yes.

interesting. it’s and see So, we the did transaction

inside like more SCE, obviously, attachments part antenna but services, about do has fiber well with have telecom Edison circumstances our we [indiscernible]. carriers. be that Care comprehensive as team fiber a maybe to towers that fiber, transmission essentially and as somewhat bandwidth In There lit utility, the on been competitive not them has bit of different is [ph] sell also managed they’re does case, which learning business. it. already Solutions, attachments, the providing dark telco only So, for today, a

SCE’s under operates in telecom there’s noticed that SCE’s sharing under a contemplates. so broader a different business some sharing that also The PG&E deal the business. little revenue case, And that operates mechanism. there’s framework. revenue different I It

of just a So just made and scale of different different there’s number bolts the are and for whistles maturity and different scope business today. that

transferable transaction So, be or fully not might the PG&E applicable.

Steve Fleishman

Okay, for great. Thank that. Thanks you.

Pedro Pizarro

so I much I XX because like it’s surprised. said it run ago, to the be might used so. about You business, years telecom but

Operator

from from JP Next Tonet question comes Jeremy Morgan.

Jeremy Tonet

exhaust just want X after for recovery you to you be the insurance. other CPUC are thinking of minute of that there. about a back I there to go file Woolsey And slide here? to settlements, for the discussed gating we that Can recoveries, expect kind or should you items

Maria Rigatti

Yes.

quantum the So, an been as if you sort understand look generally to Commission sort the has our wants the before of that experience recovery. to of make indicator, around past the of ask they decisions

total cost, will history that took Commission recovery, precedents, the be say I make a little But, go still would we on is that asking we a that the ways prudently years based of the was of So, think, this prior charge the ask we we probable the to a framework we recovery. have ultimately ago. CPUC. for which incurred can’t and to At why that’s generally point, couple said to that get size Obviously, we for before that has.

Jeremy Tonet

could That’s you if the discussions state helpful. on might risk just the in able currently and And you just be of relationships, how in you provide be about wondering thinking environment PSPS the now, state. very it. helpful. just see thoughts to political would Got comment Any overall Thanks. kind right

Pedro Pizarro

purchases our in country I the cases, we the Look, of like Yes. chip elements states utility, -- right? it’s it to balancing of most view in to forward-looking we because California have the the continue say. the that. And as procurement I regulation, constructive backward-looking should that both that and I’m current the rate mechanisms fact happy on accounts think, when for comes we energy the one is headline to have procurement, like

number have while elements that make a decoupling, constructive you environment. have a for We that of quite for here a So, have right? been

role on also ball the of technology towards to a reflected wanted edge other distributed risks terms in deeper is have, in of it’s the take meant And being fairly future, our storage looking manage. the advancing and in right? has solidly, are in economy. that around the the California And have for opportunity in those to states that peers push ROEs a You really the or added customers. based curve to significant that has and frankly, and renewables looking more we then,, out managing being risks for as state some premium wanting lent decarbonizing to an more that or state that been For utilities utilities penetration of benefit having well committed that’s -- like. the That’s itself future, a have asked to aggressive on the than providing the play finally, in operational sector, earlier to resources a

so, seen have carbon-free all a investment through in in requires state, significant require place order will decarbonization a the and electrify the getting dramatic This really our a XXXX of robust grid so along more that that what than see zero all you’ve lead or to to state the economy, a we then load and a XX% to resources papers the significant like And Pathway other ramp-up we remanaging renewable storage. to in papers that and happen. net lot for with will make that increase in increase across today that grid with

good that a So, opportunity utilities. all up to adds for

make but It that affordable. put has cost on pressure more been as overall XX% total all in we remarks, for also the it leading I by way, it’s to customer that prepared the customer may good some of a will Now, XXXX. ultimately said in customer, the decline the the average down my for opportunity the cost help in bring utility see bills, states and because a energy

Now, been a The can are We’ve had are bumps that create has pause. help of AB last give said, lot one the in encouragement There like the XXXX wildfire things there road. always to a items experience that several challenging framework. getting restored over a in years.

align and to of physical utilities comfortable there in investors the that that have. is help through the as discount to lot hopefully, that framework One the see to investors on peers carrying all I of help is long-term mitigate time, going the relative are that over there’s of middle structure going We’re COVID. still for on, working, that the some states. opportunities are risks mitigated there’s that. And that know get the is California implementation opportunity our other being that final and the it’s with better going item value fully we that financials, the a in and will today

CPUC their I the or XXX staff, lot feel the them of plates. for have So, on a so

in done focusing I on think has the Batjer, great and energy I’ve Commission future. the as President mentioned clean that leadership a comments,

the Commission helped timely its think, Track she’s that like but in general, I elements a had to, and plate. you there’s their in the also be success lot saw on session, in recently, generally, we X

got. little a feedback tough decisions. PD X has not know and the I while So, on when it been Track that recognize then, may there to they quarter, we this overall disappointed up that timely we PSPS, they’re GRC some I’m end And importance a seeing case, comes of the

good hours take commend SCE having it of I action lot and learning SCE in merited. X.X a the And at a feedback frankly and a and So, it’s for team filed. there and plan for Payne listened, sat good that reflected note Kevin opportunity, PSPS and the was

if bumps at way But really road if long I then. look in and in a look trees, will the be you forest there for overall, they of So, in But the it’s you now the interesting term. think, relationship. couple at forest, any a get maybe the

Jonathan Arnold

electrifying, up very there, Got this past, helpful in sector And about prepared transportation in your to picking it the remarks. spoke the specific with you there. it. That’s you about spoke maybe

you I you guess years kind the big today perspective maybe future, ago, couple of EIX? and down versus provide a EV how looks How it the could outlook. some do think if is of for opportunity wondering, Just this for

Pedro Pizarro

So, started our Charge had about a we few years talking ago. application. Ready We this

there think like state think, the and at Pathway the million the time really seen need after, for you’ve paper was a to talking million about most forecasting end in I to look XXXX. is state, progress vehicle that on get like tools tool of right day. and zero-emission zero-emission XXXX vehicles state realization then, order by the I growing affordable down Newsom’s driven -- growing by at that sales and of a commitment -- says X mark. vehicles Since about the decarbonization was That time At doubling the at executive XXX% the or our something something California Governor electric shortly frankly the $X the the by key for by electric a XXXX. vehicles one

we out. Remember, the this and driving first I was of whole a this, talking new I’d about market, the my the got year, then so, were some start vote. Telas, there’s vote there EVs model that angle, other colleagues right? when in of XXXX my The lot first on is, when share And

where going and are they run what, Now, you’re XX automakers be, to model was think the I they that U.S. articles there’s rollout -- like area of realizing lose or could one automakers or automakers. looking where across offerings leadership Chinese it’s over next at to fast, new OEMs reading XX something the I if latest a don’t auto an European year,

next commitment suspect, four, real, started this by folks that and takes like years surprised towards in the seeing And internal ago. things a seeing EVs decade so, landscape five anymore to how is investment engines happening, Ford’s it’s maybe So, phones, or cell you over where combustion have very like is from that other tells deployment different a not the $XX-some-billion innovations, that GM’s it several like quickly I years, escrow of aspiration technology off. of we

Operator

question Next Michael from Goldman Lapides comes Sachs. from

Michael Lapides

A housekeeping question. of little bit

earnings. you came after XXXX put when quarter third So, or $XXX what about you third for than capital quarter had just earnings all million spend in reported higher out

being any long-haul about -- development of think where just do $XXX there? a you to seven-year second transmission not maintenance there’s And scale cycle sizable related all grid, spend, that million there’s in five the on work more transmission drove all, $XXX of program there does capital in of of is potentially what First terms so then, what in change spend done million all, that quickly? the new think lot you’re still or or you a

Maria Rigatti

first least, driven by capital second, But, let was spending the chime at I’ll piece, long-haul and go that quarter last on also take in and wildfire of between bit transmission. thoughts a largely restoration in delta I’ll so quarter little costs. his in a the this Pedro

in fires year, So, particularly late up in you around of were service last there service will that the a recall large territory Big our northern of our number part territory, Creek.

And so, a cetera. then since and that’s has to to lot get facilities going repair really back et of been spend into service those all been of them, on the

there, that’s Michael. driver really So, the

there through of and otherwise to incremental, the what’s analysis to have capital largely last go sort have been upgraded, We in was that’s what change see or going cetera, an et replaced but quarter. from

we’re still transmission, cycle. and the of in terms In

to state And the is in plan have his future, going described as obviously, need resource future the well. think, the for integrated well Pedro of CAISO. that let remarks. planning. do a to that in his to plans CAISO the integrated Pedro the around lot as work thoughts as well, I we I’ll just well as on both earlier the planning resource But, -- as There’s look obviously share

Pedro Pizarro

require lines. But, transmission, or And that being the investment XX of our That’s why California it’s you me that and power storage the of current of site Maria wholesale gigawatts and analysis. new need has to that counterpart sound, is your Michael, side addition whether XXXX. wholesale to storage would said, that like $XX maybe XX billion resource bulk a storage. XX bulk of kind have like this distributed like Just power need all something gigawatts estimated XXXX $XXX share may the renewables something from would for to of level Pathway that most level before, side. But, of distributed analysis in add and by billion for gigawatts quick heard you again, gigawatts of generation behind-the-meter renewables enhancing that for with investment, in lines XX

third that do line. with utility refusal right ISO Now, big not and its it’s that’s brand-new has line first and that reminder new expect I not how of a to operates. existing If upgraded, an parties that the economy. electrified seek in of state has the quarter will structure, accommodate to that wide, X,XXX if but that that, that’s all then on just already an bid line, that that’s SCE, be would a is then a per need gives to for competitively. order right? to And utility Cal investment out current compete determines future decarbonize as upgrade extension sense you be So, existing the the needs of been the under Line line, And an build. --owns to to

territory it’s all the SCE will specific across pie that SCE So, to I clearly that. hard opportunity very large that from role its significant the play be to a But, expect And be that. need what met will within quantify certainly of a will for state.

Michael Lapides

When part might three start three five-year do the four when actually could think to southern to it? the state forecast we -- need seeing into you of Like, do start year you roll think that or piece?

Pedro Pizarro

for may a between spend elbow as I on flat underlying as turned guess a you which before. a curve, It being about that between is, and sharp fairly see XXXX don’t the and guess, think, the I now right yet the that by the lines Yes. picks is electrification big to good has In in up my XXXX, analysis is sure lot answer a for ISO, be XXXX that declining going see continued question. XXXX. state our that’s sense load, really really when well crank what a analysis spend turn and continued mostly decade, because increase that’s Cal analysis, that we sense the of the But, upswing My the has to fairly been have That’s load efficiency. what not timing? generation to talked have because lot where for Because the XXXX in slightly that bulk now, happens -- I’m last be And I’m Michael, counterbalanced interestingly, not right? the flattish, XXXX. distributed really XX% statewide through post you deployment really continues energy of you -- from of pick up my or load post partly too.

good a of you’ve so that. that that the in capital seen far. maybe chunk But, meantime, suggest our may that post build So, spend

from described, year. just restoration had last up we that Maria Creek As a bump Fire

say we in an utility. we hope that restoration have fires. capital the future ongoing see the do But to for continue spend, for for investment core don’t to opportunity we I any capital So, fire significant just

adder so, -- And that think an transmission, long-haul Company. that about I to the long-term becomes supports growth the for the certainly

Operator

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

Sam Ramraj

have good follow-up you and rest joining conference you today. for safe. This call. if please questions. the of a Thank call day the any And Have us concludes stay

now disconnect. may You

Edison International (EIX) 26 Feb 212020 Q4 Earnings call transcript