EIX - Earnings call transcript Q1 2021

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Operator

Good afternoon and welcome to the Edison International First Quarter 2021 Financial Teleconference. My name is Michelle 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, Michelle welcome,

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

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

Pedro Pizarro

Well, ago. per International good share thank you, $X.XX afternoon, earnings year Sam Edison reported of to core and everybody. Today, a $X.XX compared

Edison's Investors reports how have our all financial discuss about in is risk meaningful SCE the Rate with been authorized not and has both view because into risk. particularly largely XXXX that headed peak received in California not profile activities us asking is recognized news another SCE on wildfire Case. given above-average General Maria XXXX remarks. comparison revenue her the its quarter XXXX we decision year-over-year requirements. will XXXX this from base However, first based season for a revenue CPUC performance

setting for I XXXX above-average-risk acres years, have XXXX also and before, were with records As shared burned. XXXX

however, highlight like to that important, significantly work. CPUC scale seen progress key firefighting, and avoided AB implementation a the would the state damage wildfire has is investments XXXX of improved profile: this to mitigation really own factors catastrophic three SCE's XXXX state improve I and However, in XXXX. risk successfully our on have and

of state's in So budget increased CAL XXXX, capabilities Incorporating equipment would the this a since FIRE's firefighters several XXXX capabilities. the a investments has increase first, and increases increase and XXXX, trend; the the this proposed XX% state last firefighting XXXX wildfire peak suppression at which over in XX% Governor's continues years. budget, to the enhance since to in significant in the season modeling represent

state resources suppression $XX million example, season wildfire and Wildfire more tankers Governor taken prevention to and early XXXX projects have and Resilience firefighters is for an Earlier For will in in FIRE fire the for and management and already accelerate CAL $XXX air roughly and this five Forest catastrophic. Action approved they adds before focus fire additional out The laid proposed wildfires forest they combat seven season. to action. the become state XXXX. million this month, the the land Plan, the budget also another quickly help operating large These the to expected a move enhanced on Legislature XXXX new have

departments capacity. resource We fire times to aid seen in local firefighting have also staff and significant response our additions and

made the and past steady risk the progress second XXXX’s designed. provisions improvement over enacting two years factor CPUC is as has timely The that nearly AB

the Wildfire the Insurance a XXXX, half after Legislature passed For opened to about that on funds emergency the CPUC an proceeding the non-bypassable instance, basis Fund. establish AB shortly charge of

utility’s that annual has created. serious key a standard deemed certification, is where AB step certification in reasonable the Commission is safety of a a it each valid approved unless a safety the implementing in has SCE’s that prudency if is This certifications timely doubt conduct XXXX is indicator codified, Another manner.

of Fund. go Insurance and the additional Importantly, will direction. beyond standard providing life safety The the Wildfire Commission this wildfire oversight Wildfire Safety established Division, its

Lastly, on within been despite or pace decisions the tool a has timely Safety to Commission has public’s Power on this engaging discretion pandemic. acknowledging COVID-XX The in the completed utilities’ to numerous that time proactive CPUC protect safety. the crucial at the Public IOUs it wildfire-related also execution, PSPS use with Shutoff, the is same the

being that steadily AB designed. signs as Taken together, these XXXX’s is implemented are all intent

practices part The own programs to third reduce wildfire has years SCE’s wildfire Fire and been SCE’s several manage and improvement operational for the work to utility place reduce risk risk. of integral factor risk. had has an is mitigation in

all customers, officials, PSPS from conductor fires comprehensive risk As the its increase covered wildfire the miles and wildfires forecasting, substantial strategy electric utility new In circuit over agencies. the and its risk particularly infrastructure least with regulatory hardened substantially areas, team mitigation public XXXX, of risk, by over technologies this distribution of continues high The fire partners, climate deployment pace, associated of from expects infrastructure, in and X,XXX and elected wildfire to or SCE through Readiness made risk overhead equipment. has utility pace miles, enhance change its program. invest in dedicated its additional of up will PSPS feedback its assembled X,XXX fire accelerating and to has the SCE year-end. WMP. infrastructure to practices, SCE At reducing have mitigate stepped to the install progress, a safety improve utility is accuracy its operational XX% at address in weather intensified

actions building the which decarbonization. SCE’s economy work This a reliability investment So for in and as X mitigation with over on Slides also and confidence improved essential International’s this respect to and wildfires. CPUC, deck electrification increasing our additional increases across of dramatically State’s X Edison us the provide gives risk the will longer-term actions and California, SCE few wildfire and profile of for last the year-to-date is activities in information State by the block years. combination resiliency, be

effectively decarbonization, That future improve in service jobs; communities; change; new of air Pathway this Now reliable, with to Contribution, deployment alignment $X.XX this in speaking the develop release. in SCE to had the XXXX Nationally of most our Biden's infrastructure of and particularly the vulnerable goals complementary electric of economy-wide of economy XX% forward proposal is investments address ensure competitiveness. implement reductions buildings, support stated and agree and create and and with quality, electric Determined infrastructure well-paying to for President we resilient leaders trillion will This Administration increase or across requires the XXXX what close paper, with EVs, prior its to NDC, that climate policies to Edison demand. the relative XX% clean, in We target target and the already global greater gas to for meet greenhouse white working substantial in outlined electrification its to look NDC’s our Congress

of near-term is thanks As in track X, as with support average and the earnings affordability additional increases equitable you but amounts investments invests electric areas. bills to efficiency our highlighted energy record will decline XXXX, and in on yield. a maintaining the the generation the will increasing of costs in the will Slides X, hardening technologies. energy goals future economy-wide least these in deck powering in views they customers affordability, our further needed carbon-free Pathway with a through information and in from SCE their grid benefit makes expensive in long-term provide of to see in long the SCE total one-third X clean The economy. energy an also achieve greater has of to customer clean decarbonization way electrification the

For excellence areas efforts. reliability, over as well efforts, its operational has SCE reduction a cost proactively decade, improvements through as in like pursued

better to asset Embedding our in performance, reduce and drive harness management, operations. customers an to in how electricity. technology inspections and process being safe more deep we to Building enable starts create basis lean and use stronger delivering capability in more streamline expect like delivery work value more. We our and and do these data a through help us will excellent the improve operator, to reliable affordable a management Fundamentally, and robust with areas efficiencies operations our of management and automation efficiencies safe risk. other to tools will vegetation digital and

that Affairs, PG&E’s will Regulatory close me acknowledging and colleague X comments on role be SVP & Executive my by Affairs. news friend as for yesterday’s our leaving May of new Carla Let Corporate Strategy us Peterman, of SCE’s a VP

wish our glad takes Carla’s but Patti to Carla great utilities together, sad important she that, on challenging and am communities. state relationships her and California benefit and provide as report. to strong, a healthy turn of helping around so very continue will their very PG&E’s her to year-and-a-half are team We be talent. leadership operations needs its new Poppe her well great, I after and task really with really lose and of will financial With Maria stakeholders from all the

Maria Rigatti

Thanks, and International filings, per first other core of from results, My $X.XX good updates year. today the topics. on same will XXXX, and key quarter regulatory cover the increase capital first $X.XX per reported of an afternoon, XXXX Pedro, our quarter comments share base and rate everyone. share last forecasts, financial Edison expenditure period earnings for

the key that contributed by page right-hand noted meaningful see to revenue higher SCE highlight decision As variance. this X, XXXX first items General to share. higher earlier, of a revenue particularly not handful not due $X.XX year-over-year accounted $X.XX this variance, revenue To this its in side. I for Pedro to EPS primarily $X.XX a of can base. On would variance. drivers CPUC-related comparison Case. to per was quarter has begin, received rate SCE’s on contributed the is because much Rate like you FERC-related

asset costs and to redemption net had interest effect mitigation on a process. lower rates account largely were of positive quarter, first last items, fewer also offset a of lower There O&M lower lower through preferred negative identified $X.XX inspection the to to to preferred dividends base. was due of primarily year. this was because at from financing a lower were due a variance balancing increase balancing an expenses and wildfire Lower remediations employee with SCE expenses benefits due expenses. variance $X.XX, including several O&M However, the higher mitigation-related in $X.XX in accounts Wildfire on the positive by had due variance no depreciation stock earnings. of

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

related forecast. affecting fire month. X. base evaluating rate be add track Please and key targets approximately that pending unchanged application to could programs, an a are to is rate later years yet The to current on does this from is certain includes for SCE adapt rate does final and and, decision. that if to Re-Platform to much SCE’s forecast GRC to also is page the incremental may how in ultimately $XXX XXXX. million reflect forecasts base in to the this wildfires for are SCE capital maintaining decision base year authorized in SCE the programs by this base while capital XXXX. approved. It went capital not last operational CSRP, X. and the later plan not earlier project, CSRP restoration determine facilities SCE’s a equipment expects costs what rate not late or executing cost spending Our the XXXX This approved, file quarter recovery Service against turn include GRC projects to which flexibility in Customer

On of track X XXXX decision receive remain proposed GRC its quarter. we hopeful a will SCE front, the regulatory on that this

no final the our on guidance a CPUC out decision the receive final it GRC. Consistent a vote we after prior issues can practice, will reminder, decision. after issue XX a with sooner we a days As than proposed earnings decision

reasonable and Additionally, already SCE in mentioned. of of wildfire and the SCE of in just wildfire mitigation requesting summary track wildfire-related find the of the filing a recovery in testimony revenue incurred. capital X, XXXX we costs, In X the track mitigation million step including $XXX applications CPUC for its provides incremental approved have that of GRC I requirement, cost is expenditures. costs is recovery quarter. incremental another recovery Page This pending X, track million first XX filed towards which $XXX

in will in see SCE can XX, order securitize the X, request would residential on to and you AB authorized authorized X. As XXXX, for financing that it costs additional months, a GRC page allow coming track track in XXXX the GRC capital uncollectibles

mitigation-related AB individual the uncollectible of with $XXX the SCE’s of billion, expenses Mudslide Wildfire economic solid the XXXX claims. and of to expect XXXX O&M, settling approximately progress incremental pandemic. $XXX We COVID-XX residential wildfire continues request million million total and Related to SCE $XXX $X to and XXXX-related of effects composed the make associated be events, capital, of million plaintiff remaining

the EIX provide an update content supports To issuance up earnings grade and first that As total now $X.X of during billion, of XX, page brings losses, utility. maintaining that last with best call. financing $XXX on I of would to and this total, than million claims quarter, our shown on SCE approximately which In resolved the individual to of reiterate $X more we investment claims. statements, previous the plan like representing our of resolved ratings equity equity unchanged. securities estimate billion two-thirds EIX the approximately discussed on to remains plaintiff at the content

preferred Edison During quarter, with the of content $XXX stock, of first equity billion approximately million. $X.XX issued International

and monitor satisfy conditions equity, programs, equity if will of to consider existing need balance to We the content year. internal needed, additional at-the-market preferred program the continue the market and, this

quantify Beyond after XXXX, to concludes GRC. continue in receiving SCE’s my decision expect a to we program the will needs these That associated remarks. minimal ongoing XXXX with equity have capital and final we

Sam Ramraj

please the for Michelle, questions. call open

limit so Operator ask Instructions] has line from yourself and follow-up, As opportunity questions. in Jeremy Tonet Thank [Operator a the reminder, you. to to we request one you to JPMorgan. question everyone one

ahead. go may You

Jeremy Tonet

Hi. Good afternoon.

Maria Rigatti

Hi, there.

Pedro Pizarro

Jeremy. Good afternoon,

Jeremy Tonet

EIX, form. innings wondering, off still and see it want But there. Biden it's on transmission you what as would of impact relates could I point, think to as right you the have its now, Just it particularly very here, any share If just granted, kind do and you could could. it to for plan EVs? on the change start us thoughts early if And

Pedro Pizarro

administration administration, early a you you but last it's start filled details high-level week and give work be so here. happens by parties provides few know, that you expect the be then with. Jeremy, And least the Congress, NDC, Congress, And we’ve in to thoughts, therefore, conventional their only both but will lots as have I can the not in, that said, bipartisan, of ultimately side, To something to also the Yes. through the as seen right? to and by divided with Washington, at on plan Anything

in in support XX% to I overall my think at remarks, the we I XXXX. and absolutely by highest economy-wide prepared as level, emissions direction we mentioned gas the the reduction greenhouse -- XX%

elements And of all saying energy, line to parts work. get California way initial feasible Biden the clean there the cheapest our seen we've for and most Pathway what electrification with is you've As they really plan, transmission big are of through XXXX been the plan. nicely the and up

in robust very investment well spending really certainly for estimated that And investment that. that and said the for rate will alone support on have we and alignment California-wide building, of resources, see I their know talking to $XX good terms utility next the don't just last So And grid, the distribution the making around billion perspective, that to look that need I in XXXX the storage transportation. been that's several The think support renewables, core investment is the years, as basis, manage $XXX and we've be core that investment. deck importantly what need need we we investments to guidance case transmission what prepare the little to Pathway part across SCE it really you think of a and electrifying this But from rate water case. for -- for expect see needed to date. in support then, I several -- means be part have I terms that the so a one in and of program for long-term transmission on think about energy transition provided billion. something transmission think need clean like to an years provides the able space provide And of or the is, the past beyond cycle customers, outlined. we've electrifying I the most charts we heating, strategy, detail

its the think I the billion breakout for show X So, page state. that $XX

of So, well that Charge the we have power as One the all utility investment grid in supportive transports power XXXX a was on way zero GHG to Charge thing about a we core added target as needing extent our underway so now. the or a for example, talked and by basis Ready saying by reductions Ready of sector and think that has from to opportunity now morning role that's right or X XXXX. for to the some a programs upside California levels this long the the to about on opportunities press like President I'll say of there's and be getting core on XX% play standalone sector of investments, for more trail, setting for there that Biden campaign discussion potentially XXXX, itself final is storage

Edison transition, There's would fill take lined the Speaking that's but capital can and broader perspective It's much fact national stretching technology transmission needed help not feasibility be I the as both all we given a to nine be can on R&D still can from fast the deployment until the nationwide a that investment process years as the to for quite it's and that and from needed, think, significant while. permitting gaps just just as the side. ban. perspective, we particularly as that at technology a level. an may really the XX% we're here industry do up

I've emissions gas others from that from the XXXX an XX% our be some pathway would XXXX in something still might that California levels see below concluded on number mid-XXs actually suggest or so. analysis XX% that aggressive analysis and maybe So, XXXX. national by national greenhouse decrease seen Pathway EPRI a like

think what as on I as that of can art country. industry, for we defines the will how much the the administration is across equitable that? especially number be all the there do if sure -- and can be we What the So, will and among And defines of customers a reliable, make do. discussions what we Congress do, transition affordable

Jeremy Tonet

Thank That's it. helpful. very you. Got

Pedro Pizarro

you than maybe So, we've been spending... more wanted. Yes,

Jeremy Tonet

of That comes No, and you. kind just No. a of no. when Thank inverse here thinking great. it level, high kind bit condemnation. Maybe was pivoting to

wondering in this challenges Or on changes just here? any legal been you what going Do helpful. would thoughts front. share see forward had there outlook? Or see think are this the any any you past. And I could be on do thoughts your you challenges Thanks.

Pedro Pizarro

This Yes. XXXX. AB we resolve but term. created are more not framework. that did Very one a And pleased have maybe fair AB brief. we condemnation, inverse XXXX near it

think a in I long risk exposure so, state. And that across the view they our and utilities reduced for significantly ways, the went

unlikely In approach AB lot in a recover a been itself, soon action there's on terms They see full you'd frankly, of literature the the it's workabilities from helping I have changing of economy legislative the current XXXX. state's think pandemic. on anytime agenda because already for issues wildfire inverse quite and

have that could go pop and expect into go case there bandwidth always be There but load, inverse that only there'd a taking we court opportunities is challenge premature of wouldn't as inverse. be a up that near-term. us be other cases Probably tested in may I to again. court again where So, might utilities some through that our could whole also be the I'm that to there up specific but challenged aware details lot cases, of for for not possibility

through a the always out court that's there So, system. possibility

Jeremy Tonet

Got it, me. it That’s for Thanks. that’s helpful.

Pedro Pizarro

Jeremy. Thanks

Operator

you. Thank

from question Bank from Julien America. next Our comes Dumoulin-Smith of

go ahead. may You

Pedro Pizarro

Julian. there Hey

Julien Dumoulin-Smith

here. all outset, -- would you wildfire team. the time. some afternoon et you actions weather And you the guys profile? comments the little your risk I on you on guys especially profile Seems How attention mitigation for that thus just comment cetera Can to probabilities? have is wildfires. mitigation efforts good Perhaps just going be see the far, the pursued as versus risk here bit relative events materializing Thanks appreciate about the Pedro what getting taken the frame a Hey fall have at here? already that just into you

So, back I'll put it you. to

Pedro Pizarro

The think likely Yes. that. recap why calling we my the part all that's to Thanks comments and little one for that add guess do period peak see Julien dedicated we would here. I of and are framing external bit. a part that recap fire part maybe I above-average forecasts risk a and see I is the I first

them I of in is has the the think have that taken in amount terms over detail. a several you a add what that approach approach. Maybe of last the we mitigation risk-informed to I through fair been remind would I years went

right? with you the we've the So, mile the when address that cover where we So, bare stack of went the would impact first areas to highest-risk it in been mitigations was the one risk conductor the if mile trying by wire areas out to will highest replace highest-risk reduction. was on going of down the possible, first have

of I do continues reducing bites every That doing. and terms risk piece That that of profile. that's framing constructive the we've is stuff work we gone the been risk after on. in really helpful And profile the and is to So, early risk think narrow. big we've

we've firefighting capabilities outstanding improving states modeling just just As and capabilities. I prepared the in effort firefighting mentioned fire-suppression my seen to also remarks dedicate

the multiple fire to have simultaneously. XXXX in ability that has fight state that so it now And or that didn't frankly large XXXX

of Camp risk added recall all us. state a and might is equipment with and some of And lot the qualified the bodies there to and Well, able articles more piece XXXX I reduction trucks Fire be simultaneously. to multiple a in that and around the the of deploy across Woolsey for that a fronts You other significant lot and Fire had simultaneously. states planes mentioned L.A. fighting really Times interesting Fire the all the are Hill challenge

disclosure-quality can sure not I answer. I'm give a quantified you So,

face difference the that lower. think right significant percent it's it's state therefore profile x.y% So, faces that a of overall terms we But risk therefore I now. in and the

Julien Dumoulin-Smith

the tough this you a clarify could commented on that I as If here. individual in But say about question. Anything chunkier you just Excellent. stuff XXXX here it's milestones million $XXX claims look Maria, through resolution and I front? any remaining Got claims perhaps the here, that all of third? prospectively at you know can specific can it. drive

Maria Rigatti

No.

made. to Julien, -- saw continue to disclose think the those every sort I group the plaintiffs as the the before, all It's individual that we've are mentioned we're subro property we've are because claims. in quarter, damage going that of progress homogeneous we like claims not

going So continue to we're move to through. just

some individual have try as to processes plaintiffs We and make possible. as the discussions as the streamlined with efficient

So back and let that the we'll we'll know has come to you what quarter and progress you do been. every

Julien Dumoulin-Smith

Okay. guys. Thank of you Best luck.

Pedro Pizarro

Thanks, Julien.

Operator

Thank you.

Our next Partners. Jonathan from with Vertical comes Research question Arnold

ahead, You sir. may go

Jonathan Arnold

Good guys. Hi. afternoon

Pedro Pizarro

Hi, Jonathan.

Maria Rigatti

Jonathan. Hey,

Jonathan Arnold

Hi.

on a about -- some little wondering talk you've what PSPS specifically in issues just past. you're taken to flag some you're curious the Just has situation? of of you anything whole avoid And on of these for CPUC. an then the working kind also if putting could sort criteria doing obviously similar and to I'm on your front if come the or approach update in PG&E new that been of bit just

Pedro Pizarro

and then to for may planning the engineering it, the separate it into two physical more of you it, categories. I execution. execution have the I'll PSPS is the start actual and would -- One space broad Maria add. behind the the

the be communications would second The element. broad

all the you We right, to that one I it about cordoned something has us frankly -- reporting segmentation Well prior better off a event. utility terms at like for had in if on of investment in to areas. I look our years, devices think that continue you the in remember right? separate to in the high-fire-risk could earnings in X.X pretty core sectionalization which be sectionalizing several into at circuits add we grid. target how average four SCE PSPS back high-fire-risk point year years -- significant well call sections going probably done to circuits areas, last execution allowed

XXXX So now through down XXXX number we've from to impacted the in events. that significant continues improvements of the PSPS and have better terms to Through customers planning scope of seen hone XXXX in that events. who to given of been

this Now I to weather-driven. much all though very have that add is

some the we lot through by of the weather And have now actually grows was if had tool XXXX so look that a WMP filings lowest customers the it basis using But even this at events process, are percentage in season. that resort the various utilities take I -- right? the XXXX so SOS numbers. you last the of that a if had tough And in numbers percent to you some of what necessitate resort, happened Edison at of impacted think a of the customers made PSPS has on has total who look

Importantly, XXXX who year. did believe work has from customers impact we will the the significantly last to -- for we XXXX continued reduce year, were to as have impacted further Edison weather allow if we the last same

But from significant see impact. would won't in same an I we think we the pretty assumption very basis, reduction weather. course, have the Of

number to or impacted reduction think last is in impact XX% over I customers year. who the to were XX% close

able terms things down event. of good in of being lots one So impact and the restrict to capabilities, the any triage it of modern

think, side, pointed I more we communication and local is and frankly, got deservedly opportunity, feedback customers On some pretty governments. communities had and the where from

And plan things you that at at. so okay better if filed at the and to a than better we things on that look doing do February, do action okay the lot so were there doing also we that SCE didn't in much at continuing there's

the communications more communications with customers, on local how and And vehicles them. centers, so we with emergency focus see you for lot communities, of with timely governments, of have where do a improving with those operation that's the quality

say into in our a Maria, an will expect hope that's I so area where have customers this customer what And season. there? improvement next I -- peak our going good missed

Maria Rigatti

we just our of obviously two Yeah. of is component a focus One that when the with customers programs how additional this. that really communicate on deenergized, well, think a I add because benefit could I that's guess along big as I things. are would them lines they

help to communicate just is filed that is customers And the important that think clear it's we now tool that action I I have we do aspect other think I we opportunity what would plan, when to deenergize necessary the now do and do add we then the with them. this can our commission.

So I now. is every think cadence our weeks two about

ongoing So us around have it opportunity that to an doing. SCE it provide is is does what really an dialogue for

think aspects PSPS of are I year. for important this So those all

Pedro Pizarro

for because on I'm glad the battery something is Great. added really you deployment increased of programs and emphasis that batteries the we've example appropriately.

Jonathan Arnold

if have for Pedro when to you not often to. you do less people it does more trying and bearable it show It can make

Pedro Pizarro

it and have Absolutely. protect to Because But we right? our we of safety to will an do when tool communities. important protective do health the it, it's

Jonathan Arnold

Okay. on have case may timing host commission this the thoughts extending other we're here. you pretty has a moving a you doesn't statutory any then fast bit have of do whole be to of the I a And on what been if And GRC, things. have or deadline just just seems why sense here? waiting still any Maybe

Maria Rigatti

anything has GRCs. of a request It's complicated would I a most that It's not different Jonathan, case. components read into it. lot Yeah. a like

get aspects that putting So working to of and that to pen through proposed it just paper out. decision they're I think the different

Jonathan Arnold

Thank you. All right.

Maria Rigatti

Okay. Jonathan. Thanks,

Operator

ahead, from go may from comes And Pourreza; our Partners. question next Shar Guggenheim you

Pedro Pizarro

there, Shar. Hi

Constantine Lednev

quiet the had some decisions? to the a GRC get sense the Hey, Jonathan with It's the the a everything proceedings. filing has out been just of controversial Kind the getting follow-up CPUC since this answered. Constantine questions is in closed actually been I prospective indicative ex it's close moving forward? of here good and had have and to more as filling quick of if the staff ones in to of cycle that few mentioned I lot of, on in. partes PD afternoon. a just just now your the is process the of CPUC curious you timeliness the else this And see And improvements couple

Pedro Pizarro

GRC not And your broadly with the question hearing the asking right, Yeah. if about I'm right? you're just PUC

Constantine Lednev

Yes.

Pedro Pizarro

Right.

prepared mentioned And we her still PD had we we we'll that not And we're all by -- have I case. And the a pretty as moving But, through there they that -- number Maria we of bit. the comments But So into amount the And around I I'm of throw that their a think of our a seeing broken in all the comments. the expeditiously The balls and of there's the created, recovery says, well And process this complex a hopeful extra GRC we're a would make things obviously think don't been given by We of performed end think skies of have a work that they the disposition safety right right? examples in have. a the CPUC this systemic stuff. think that the So prepared juggle that Edison been COVID-XX of for a contrary. had in number under remarks PD provided the accounts. of a anything as frankly, impacts mentioned volume I the frankly, lot a I in with you now. problem tougher number they've the lot the of mix. is pandemic operations then admirably as blue whole has certifications is quarter, own hoped you on COVID like cost doing on skies.

GRC So there's you gears think But And for then? more they on lot I anything part have for grinding And systemically. our differently say not that. see that the difficult just a to we'll down soon. PD do times. under Maria, we're like something a sensing we'd going the obviously,

Maria Rigatti

No. I agree.

Constantine Lednev

broadly, kind follow-up, little the risk. year season. and this kind Thanks this of extremely wildfire of that were expenses activities just forest related low guess, in That's I to some a kind you And studies some mitigation drivers content Okay. on of moisture of for really on more bit kind fire there's helpful. of of one that been, mentioned color. And kind California lower last the fewer just

rate you these how near-term? mentioned some of another what the about inflation kind I that out issues I the that I in kind even but of of have wildfire in broadly more term if are factors? of risk in enough longer you be So will you qualify thinking And the -- high-wildfire-risk you some rate there know that are near Can of kind And term mitigating kind inflation? understanding bounce the of little guess And a another of us kind capacity bit for guess, year. recoverable kind puts of of year kind conditions?

Pedro Pizarro

Maria, Maybe, Yeah. I'll -- this take or I was...

Maria Rigatti

No. Go Go ahead. ahead.

Pedro Pizarro

Yeah.

certainly around capacity, wildfire-mitigation more a And again, side ignites. that, help our to first some our do, talk know And point to the to pressure plan control I'm commented your content. follow state's year. and to seeing resources mitigate things in risk taking But you you believe to they on that some multiple first we up moisture that the that I ready above-average but part we I believe, that, do doing the When the need need basically Now if risk. fire-suppression we're we more. ways. of the risk that can foremost, side. help of on of focused the rate also fact to question went maybe just the we're things to the you And then have signs doing the fire, already, the on all think the an it Maria, about

Maria Rigatti

Sure.

you did related We an this talked to associated areas I lower that think mitigation. do. think, not about had there some commission still talk before, inspections wildfire on ago That's more fact too as affordability. are costs I with mentioned But found remediate. mitigating expenses risk. bond we we to and We've convened fewer that to the in broadly, we see long

it to on are the the to economy, at for the IOUs we do what it that that, squarely what electrify for longer necessity that over and then of the we people further means that but other as the electric means also focus what our expenditures And to And maintaining continue doing communities. goes so for really we wildfire-mitigation we the itself. safety our bill means energy then grades, looking rates that term, as

electric different order And wallet a been represents in we stakeholders you looking commission share I not the things total from as your wage and by at commission, have just has defined ways affordability, to perspectives, we and think Affordability few the bill. other it that work electric energy the pay like, so so do of at are how bill. minimum different to about hours many think

the that's affordability, state in about also has. think objectives participate wildfire I that a environmental about know very the and to do all our equitable we communities in important important And that environment. our an electrification broader being mitigation improvement we it's we also it's for that important is of the having But that and because to the be as ongoing communities that and going think of know gas greenhouse we is safety do discussion. and

Pedro a well. So discussion. I and increase focused we rightfully to as think help as our as the that cycle it's allowing economy year commission to manage ongoing focused further many going to it is be then we costs. it an trying well, been mentioned, over The have on affordability And on electrify as

Constantine Lednev

Thanks, very Maria. commentary you thank and for helpful taking Thanks questions. the

Operator

Our [Operator Goldman next you. Michael Sachs. Lapides Thank comes Instructions] from with question

may You ahead go sir.

Michael Lapides

you Hi, for think cash a takes may My for the and puts just trying taking I'm thank be flow. my question. Maria to question. about

XX litigation about I door billion in from think XX. to the the securitization about want Should on items $X Slide a over estimate. to the when pay finalized around sources because pay XXXX XX and is it based cash So cash you finalize you're little it, Slide good I'm as even chunk think out. the then XX as the I on and coming double here, gets make what -- about if I the I your billion Slide liabilities when you've XXXX -- need billion Slide almost liabilities still of $X got out settlements outflow the mean, wildfires? going on it, and have more-than-ample-enough if $X think and to outlined cash of look at slide that a I fund if to counting not two those sure I still to require you still in you or

Maria Rigatti

So there. couple things in of a

I XX Page XX, look think and are not at as you things those some look at unique. Page of

the up being securitized talk Page of we Page on things XX. on some about So that end XX,

cash on tie So we if do take that as we have of it's more spent separately general go will already door. these continue securitizations wildfire have you. will of through recoveries for to application can us and numbers mitigation. we is, maybe easier, to through sort cash probably get the kind and that response allow This we question rates in I'll your back The to the the -- file and/or

funded seen, you've will debt alleviated. that expressed in in of pressure short-term the short-term the of or often the some debt past through through So issuance the be past

the before metrics what EIX order said past credit perspective, claims ratings the investment-grade has we've both and or a to preferred issued in from the equity equity is think in I at we'll company. the come payments past that allows the the to continue holding SCE that claims issuance equity be due utility debt and insurance -- now the finance And that as they to we're recovery. shortly sustain

their their debt dollars they in accordance authorized business financings. structure. And the the so there. all timing putting we're waiver do their subject Over structure. cash may they can -- impact have capital debt outside able time of that they'll when down with exact that. But fungible to the as funding That do capital of And they'll over be be to time, is that keep they

So that's I think the general framework.

I numbers if more on of the as page then can between slides bit XX and we on you securitizations we applications. And said little XX detail on. like a go think that XX, and translate into in I there's over later overlap that

Michael Lapides

be XXXX? that beyond be there XXXX little You they great. through you are back are those bit you That'd where circle And you meaning impact these in highlighted kind CapEx. of went that little of Or some that Pedro, And finally, can bit and revisit quickly. a a items -- areas XXXX, to beyond? kind Can for you upside could us?

Pedro Pizarro

Sure.

materialized, over those three our Ready But we program coming some have were $X.X have that that Ready it's two of and of billion worth plus and probably for what we approval CapEx got now from of $XXX -- long-term. until And of heavy-duty probably vehicles. of those you've some and over programs years things Charge Make light-duty programs applications. that we're seen certainly million there's right? think, while midterm a and already the quite of forecast I near-term to few going last over some for So

developed an got that's few this. PUC designed one of through and we were and where example support it went for process, years, about So talking program a a the for

or or a lot think next is because decade utility-level for midterm by at of done I for that decade, look large-scale near-term think will third present customer the the storage an whether grid-side storage. be it's parties opportunities the could as premise. it's and or customers half potential may But I whether a -- that you some upside near storage down in be there BPAs opportunity

it You've as the us a did with like make Mira megawatts acceleration things where assumptions of more to case to places some sense rate batteries see few do XX itself modest of included reinforce substation with a seen that. a storage electrification put that level. lend might vehicle might particularly as The we years where about in Loma But we already we of some ago.

So that's one. midterm kind of a call near-term it or

We the have make per quarter the able XXXX is longer-term upside think want that compete. for utility sure transmission. I And of is with transmission. we course, to competition to in

refusal. I'll just has for projects, utility -- However, right of that projects needed of you scale is utility wires there the be that we of And are the I think the operator would we XXXX given maybe XXXX. some through handily the on We hypothesize that's existing first for be lines that renewables really the investment of probably upgrades independent to that and on to are existing haven't planning will remind projects run and where California its are process determine transmission on that that conceived going later dependent transmission by needed upgrades by yet. system that's

So presents transmission I opportunity. offset think another

could million Project $XXX I the by Bermudan from XXXX that our rate coming commission. Service with of base that approved we but additional near-term, then the some you early Fire. wildfire that and restoration be additions rate this, base in to just We also in out went back Creek the live did remind April. there if Replatform have mentioned just be that the to And could Customer work additions very down we of Maria Finally, way know

that we're analysis haven't externally, quantified that yet now. finalizing but We

opportunities. So those blocking-and-tackling of kind are near-term much more

Michael Lapides

Much you. Thank it. appreciated. Got

Pedro Pizarro

Mike. Thanks

Operator

you. Thank

question next comes Our Citi. from Ryan Levine from

ahead. may go You

Ryan Levine

remaining afternoon. the and good of in settlement as XX% cadence changing? recognizing smaller weeks the of they're claims, How pace discussions Hi, continued in has OE has for been the the that potential nature recent

Pedro Pizarro

there, are We won't you negotiations. be confidential help much because those probably Yes. unfortunately, able very to

that, process I individual good share plaintiffs the for the as plaintiffs. there's mudslide a did in think Wolfspeed we that both have we Thomas, -- Koenigstein plaintiffs news for now well as

So generalizing thousand remaining. court subrogation to relative done cases did to at process say the any to When and I the make far mentioned relative making our plaintiff approach individual plaintiffs to there's say want established too to cases of settlements there have earlier. an you would of -- sure, think not remaining assumptions -- several settle that But are with smaller number smaller so working that cases. approved the smoother much the about way amount you we've ones that by extrapolating remain. the we through allows you're we or that us by that looking say, settlements also I from they're individual dollar

individualized. case-by-case, solved are these very of All

ratio use to that case-by-case. for say, Y for So it's really It's X hard extrapolate remaining ones. dollars can because we the did these plaintiffs, you and really

estimate. changes that we what we quarter. not I review did to you any best thing on that? once We have can I the in reserves, that the did we one again, missed think estimate Maria, and the anchor every is may that, make you that saw

Maria Rigatti

No.

that can or covered anything Ryan, stay really like cadence I we not anything, terms it. think in There's or that. of you patterns

signposts amount the that reached every have is should quarter that for plaintiffs. with these the for updating most we'll be individual we with that settlements you -- the of look think I -- some

be that's really going milestone. So to the

Ryan Levine

had And of opportunity presidential Great. growth could and $XX the just outlined Pathway follow-up if terms more it squeeze light transmission in of Was XXXX. in you I around the your billion? In one that in that light holds? that state any get accelerated could may Congress politics flux And congressional there and bills underpin some key that that any longer-term of permits in the before federal of outlook? be growth is in

Pedro Pizarro

at to that, it's And over Congress answer take the and Yes. give weeks administration maybe honest right? early, a that. is significant going between Probably even you -- the I Maybe see discussions next shot you're and most we'll can really the months.

I in -- bit, think want timing -- the time streaming to November. there's that expect Glasgow firmly conference and the parties parties Nations plan would terms I of a of the conference the will have a in the United in place administration for the of that

on the hopefully -- you're it President. sooner. by now from the his But hearing -- in proposal. the pace, I discussions the proposed infrastructure so billion $X-plus mean And coming not, that's we're numbers scale package you see the and even been And if

$XXX members Republican more talking packages million the hearing are mark. You're about that on

of case influence a transmission streamline take transmission permitting lines. transmission it's equation. see on federal perspective, piece different and how the process from relative federal access to levers Frankly, That for is of years the rights new -- have accepted and just this on it's the need alone emphasis element than and packages generally way the we to federal federal of biggest It be can transmission, money So The transmission adds we lands you that access is the of levers on both I because to like a that that process incentives? of translates But helping so degree the of side the probably the will that that accelerate our into? they really have Are decade government key might build do where to more think, sides project. in focus a to that by us. in the for things years to one that would will the projects. permitting

in my of going power frame? How more to that to level using be mechanisms -- So of time sectors? -- back sector-by-sector does compare then in sector that emphasis with what you to is in deeper other transmission, that All are first point how versus allocations? the frankly extent of by discussions it's those ahead. determined. that To Ryan, the how but you're market what in do to And the go not discussions game guide will go deeply lots early I'll any case but in

Ryan Levine

you. it. Thank Appreciate

Pedro Pizarro

You bet.

Operator

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

Sam Ramraj

Yes. rest the Thank us you a day safe. for concludes joining Have call. everyone today. conference good of the and stay This

may now You disconnect.

Operator

call. And conference thank today's This you. concludes

and this ahead go disconnect at may time. You

Edison International (EIX) 28 Apr 212021 Q1 Earnings call transcript