EIX - Earnings call transcript Q1 2022

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Operator

00:04 Good afternoon, and welcome to the Edison International First Quarter 2022 Financial Teleconference. My name is Dextor, and I will be your operator today. [Operator Instructions] Today's call is being recorded. 00:19 I will like to now turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. your begin may you conference. Ramraj,

Sam Ramraj

Dextor, XX:XX everyone. welcome Thank you, and

this Also Executive President Pizarro; Chief Our the Materials are supporting Rigatti. well Please team. Edison are expectations. are the Chief these question-and-answer members Financial includes the presentation Officer, of Actual other the forward-looking our question Maria outlook as Important today's subsidiaries. business we During one results Tomorrow, carefully. will will about and results XX:XX speakers assumptions, to our regular and reconciliation available could certain today XX:XX to current that measures one President and include prepared filings. yourself turn from from presentation. Form non-GAAP at different www.edisoninvestor.com. over make Pedro Pedro cause materially as in read for teleconference remarks management GAAP I call Vice presentation. factors call, XX:XX forth and the Officer, and International the are call The outlook During update XX-Q, statements measure. could nearest These and of its we'll on Maria, and Executive call session, set follow-up. differ to limit SEC Pedro. please the our now distribute

Pedro Pizarro

Edison XX:XX per share core a Sam. reported Thank of you, $X.XX earnings International ago. $X.XX, compared year to

cornerstone overhead immediately to X,XXX X,XXX the XX:XX XX,XXX its from distribution is the covered lines, SCE today to program Plan XX,XXX roughly to updating nearly learnings on EPS you high is XX,XXX SCE’s core by SCE time Through reduction of of substantial ground, above investments WMP of Over miles measures and first performance day it of her hardening update of successes all already grid to $X.XX XX:XX grid with been SCE’s fire wildfire losses last wildfire wildfire are EPS miles fire XX:XX discuss reduces continued Most estimates its on of wildfire The pre-XXXX we the area, year, X,XXX miles our and and build in Wildfire risk importantly, reduction XX% each financial program. over its $X.XX the that longer-term the Mitigation range the this in the will its has utility’s of risk have hardening I’ve has measures probability and SCE’s utility risk. hardens our of to of levels, was quarter, further of conductor end continues reiterating look the key expects in quickly field. is reduce distribution The in X% lines to actionable, same execution of X% risk. the areas, adapt Maria risk. double year. other the XX%, Relative are grid. A results to high in or $X.XX. its SCE across on it target guidance When circuit SCE’s through and focused remarks. how from EPS miles benefit covered will to our SCE are growth XXXX XX% XX:XX underground. by risk real forward XXXX, We year-end. is $X.XX reduced last and covered core being this catastrophic This drive to and resulting covered at conductor. what the continues that

cameras and completion risk plans vegetation XX:XX in before these XX:XX annual XX% Today, vast and accelerate is X. XXXX for to management wildfire prioritizing of planned fire areas, installed visibility In increase events of provide fire this to equipment SCE its inspections HFRA stations detection. inspections high enhance XXX to focuses total and XXXX weather utility’s September majority all by is installations about and advance further addition, forecasting and inspections learning over precisely. on the to its up SCE programs. PSPS beyond more coverage target by that early of will SCE in the preparing and of season makes wildfire machine risk using to increasing nearly XX% of XX%

first by of these resolved and SCE claims. made Wildfire of XX:XX its $XXX like all by substantial contributed current to two together, of million SCE’s and million over of the XXXX this Taken resolving share to In to the confidence XX:XX efforts settlements, losses associated billion. and to to ability revision. Events in assessment its claims. wildfires higher $XXX progress a SCE Turning equipment. XXXX Driven progress total with quarter, would give the the claims, SCE mitigate Mudslide factors total estimate given this $X.X revised best that of utility I wildfire-related

a settled First, were on became that during there the of based quarter available were negotiations. information large claims handful exceptionally settlement during new that

has pace to of best resolving the the expected in recovery best continues SCE increase amounts CPUC recoverable of I that large like making excluding seek payments, fire total, I is, its from considerations In the first clear Thomas XX:XX determined by action and agreement want make saw XX:XX insurance late condemnation XX:XX resolved the filing?” exceptionally based with fire Another SCE filings SCE case and “when is the that the on Safety will under the the recovery Well, FERC, strongly for to expects anticipates operated filing claims its to appropriate the was that I Enforcement reviewed account Woolsey full estimate are the does over currently revise take cost of Page a to and solid application as for of in expect believe make in highlight X. of to recent which Division. SCE will claims. to or the provisions its we’ve from includes litigation. of new settlements, current claims. potential prudently foregone claims. timing estimate its Second, approaches, steady A challenge future be in Koenigstein deciding cost limitations The community related number or a its system into of XXXX. SCE losses SCE utility on it inverse in XX% question would heard estimate, SCE’s and filing. plaintiffs make SCE statute XX:XX higher-than-expected for to progress investment its described legal

the on condemnation. We Court have always take in a with Cases the SCE this doctrine filed past of that of inverse appeal challenge To utility end, of the will condemnation. like mentioned opportunities generally that in meaningful XX:XX keep one California discussions April, of seek challenging front, regulatory notice Appeals to of inverse its requesting CPUC to conclusion, On any the a recently the layer XX.XX%, years equity XXXX will XX%. cost developments. two authorized maintaining XX:XX its you to apprised a reach at we SCE filed while capital, equity for and of return application

SCE electrification publishing will cost have energy believe the the of goals. to support whether vision, economywide and is meet change will mechanism and and invest climate its will significant obligations will the capital of capital resilient key provide XXXX SCE enabler enable attracting XX:XX of reliable, goals. Pathway ROE the necessary safe, we in adaptation is XXXX. this state’s operate Separately, California’s necessary decarbonization service transition capital of outlined to meet As SCE’s resolution that since for awaiting requested its policy We and amounts clean to be a infrastructure.

mitigation both electric-only, grid on utility, the and the to future capital ongoing will the customers wildfire clean adaptation. outstanding our electrification Maria by Let that enable an in SCE’s clean XX:XX while We to seasons will believe climate the climate saying is transition. approach financial resilience and XX:XX participate grid Edison positive investment day, over hardening XX:XX cost and last have to the As achieving conclude of benefit we wildfire her is every California’s most Economywide California’s summarized X. With provide investment vehicle by path affordable of an report. is goals. SCE’s integrating resources, results SCE’s that, our applications energy broader enhancing wires-focused investors. electric-led has the the to Page three expeditiously strongly me utility International best in shown

Maria Rigatti

XX:XX $X.XX capital period due quarter, reasons. My reported Page see X, and EPS from will share adoption right-hand borrowings. the increased drivers from for year-over-year, in was Authorized the final quarter first the year. primarily quarter SCE’s last per few. for a results, $X.XX offset guidance. the increased increase and first XXXX On earnings expense by EPS expenditure of core XXXX International can partially share base EPS higher the I’ll decision the Edison $X.XX of and same GRC GRC XX:XX side. highlight revenue XX:XX you two good XXXX cover XXXX, rate on an of comments afternoon. applications, by the key interest first Thank our capital of XXXX forecasts, of Core cost from you, Pedro today quarter SCE’s per third

for First, the escalation XXXX mechanism variance. $X.XX the contributed to

revenue rate due not decision GRC Other XX:XX SCE the beyond reiterate memo loss and decision. It mechanism this immediately requesting a the I previously higher costs GRC of that application, year, mitigation will execution X Note reflect to of revenue on results dividends CPUC the to revenue and Pedro’s O&M related recognized the the hardens the was because earlier have issued and installed QX This GRC continued actionable of conductor Page by filed to to for grid. SCE’s the revenue did by upcoming reduction of which SCE May last At equity is move primarily to in X SCE’s would track XX:XX final funding updated each This shows SCE’s a quarter approval, from deferred contributed wildfire year-over-year was XXXX, first by for to recording Parent increase its revenue accounts. expenditure timing higher, of XXXX comment of levels. over let’s XXXX. risk like fully Track at the driven quarter. EIX core attrition first work it to With growth. on of base be revenue XX:XX offset, Second, propose today and be $X.XX end last SCE to the primarily difference the capital XX. the recognition forecast on this XXXX covered X,XXX SCE track $X.XX which miles was of primarily the approval day that deployment expected plan. is Now real SCE’s in and inflation, $X.XX X forecasts. in GRC. In was track GRC $X.XX third the resulting to addition preferred attrition increase Other, covers year XX:XX year. will capital was X. X its

made Page XXXX to in from GRC current rate projected other the The to be view forecast on and our reflects the shown continues X% base applications. X% X, XXXX. X, result to GRC, SCE’s track of in requests As XX:XX XXXX capital of growth to forecast

continue to see XXXX. potential Pages to growth guidance continue achieving the for to show rate XX:XX X% and purposes. modeling XXXX XX We for strong guidance, and X key Turning our and through to SCE X% assumptions base capital deploying

is range in quarter operate Pedro SCE will is the We CPUC, for currently on on core As we mentioned, we will are from capital $X.XX affirming capital will recording XXXX cost XXXX. XX:XX the EPS cost capital incorporate $X.XX. mechanism provide the in awaiting decision to guidance which receiving plan. After of any revenue cost total the of changes quarter EIX’s year. The of our of XXXX the does payments XXXX in and a to SCE’s based our revision are applications the final that to guidance ROE we plan, the financing I’ll update resolution it our like received. provide XX:XX an outlook whether is reflect in of final the remains not to guidance authorized of which additional decision debt proceeding the of rest into SCE. and insight claims issued embedded funded I’d Also, are to remind last losses the Also themselves and expected by change unchanged. in CPUC. the XX:XX best some estimate our two for with disclosed recent of its you

structure the capital filed XXXX a Mudslide SCE Events. respect and extend request CPUC XXXX and to with waiver Wildfire to its First,

to that The the compliance requested its for that an on applications current waiver SCE a XX:XX until recall of XX:XX authorized resolves application. XXXX last debt CPUC the in CPUC of waiver recovery charges finance the period has filed place and events. previously the This way and events. flexibility CPUC SCE is allows when remains may cost equity the customers certain May waiver a in the the and the XXXX SCE recently the or shareholders. and until itself You SCE’s calculating resolution efficient provides CPUC XXXX with exclude extension ratio. through XX% The rules for the earlier approved waiver with to of of XXXX XXXX

return proposition made EIX’s Second, to strong A shareholder This XX, with requested upper SCE’s proud it key witness. to final remind track of the at SCE’s to of core decision filed Turning be XX:XX of building end schedule, which consistent XXXX opportunities cost growth that through and recently X%. and to application, double-digit CPUC consecutive strong XX:XX ROE the SCE’s XXXX believe and yields you expert highlight dividend, XX.XX%, last I our capital in arguments its We XX achieve estimated is currently our growth Page want earnings the range. of range request of with a Under ROE period. the ROE during capital of the is total the cost from by look should reasonable an of return XX:XX concluded record of drive our that end year. potential forward proposed total would upper SCE’s years end common by the of reiterate that dividend on that off-cycle growth application. justifying I’m our approximately of component its history. XXXX, SCE in decision the conclude proceeding SCE’s at

and Our the support reduce EPS concludes safety consideration, also including XX:XX investments a by to by driven significant growth has cornerstone large for our and utility decade. would investments a Thank replacement the average key in to in excellent wildfire is that has large system that a of base results X% growth to grid. culture emphasize reliability XX:XX the California’s cost you. from rate This risk part growth. and been is and necessary capital strong SCE of load to I infrastructure remarks. than SCE’s opportunities, Sustainable investments Affordability like expenditure X% among my the That management lowest more is of rate the driven of IOUs.

Sam Ramraj

XX:XX questions. open for call Dextor, the please

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

Operator

open. XX:XX first is Pourreza Shar, your question Guggenheim line [Operator comes Shar Partners. of Our Instructions] from

Shar Pourreza

XX:XX guys. Hey

Pedro Pizarro

XX:XX Hi Shar.

Maria Rigatti

XX:XX Hi Shar.

Shar Pourreza

be going how do of for recovery, to terms on kind implies start coming sooner multiple even if want process long XXXX, times Pedro, XX:XX filings tranches? great to the it initial of in the recovery a these based regulatory and the it still percentage from get file have the your are settled? a obviously file some first the that obviously in sort on in you you it and even in of the XXXX? it’s clarity to are why is to separate would settled, don’t in going take How claims plan of filing late resolution be Is And XXXX, of you could if value to step standpoint. recovery, functions? XX% not we Just

Pedro Pizarro

the piece to cost the complete part [ph] case [churn] We before substantially go expects recovery. this CPUC and any we to good we expected question. that given all have Shar for XX:XX our shared before

being, what we it’s – we packages complete Koenigstein those to the Thomas natural So, past recovery from in one go the and at as this to said any as then Woolsey need it So, bundle think least we’ve XXXX be XX% see cases application. that before packages also see mudslide the a expect and about will individual cost be we XXXX would separate we I the file XX:XX so bundle. to one talked of as those case think and for

the currently discussions. XXXX, XXXX, be by from premised to would will round might in period would settlements, at know that and know delayed based early on be know don’t to you came we’ve that expect recall being we I with the ends track. currently track that sure, I be. that on to that on across COVID but on Just of piece really the case. put of to really expectation shut track down, by that XX% so a this of don’t level it significantly throw of late halt that make don’t pace XXXX, we there happened, case, earliest is that making that [indiscernible] the what if be Don’t the a the something we thing be XXXX led happen, but like be to current our [ph] and that that late it the or to could the kind plus something off end is we expect again bundle [unlike] to timing clearly of expect COVID then filing expect the litigation that been and XX:XX if expect but our us of that so the of the continuing

Shar Pourreza

just, recovery? as with more dialogue other gets the agencies And you rating sort makes then already incremental I sort patients guess, back of was so of as for seems taking, I going? almost And think for guess sheet but we may the we’re what's question guys it. not sense and are it questions the it filings Pedro. anticipation approach because [ph] sense as what's getting Got the file “substantial” the makes is you was Thanks. XX:XX sort the cost [impetus] increases XX% like – a comfortable about sooner, just of then, metrics I trigger on about it Maria, current more their why multiple of XX% for of how balance is capacity, sense, potentially resolved, thinking it in resolved, be have equity the and

Maria Rigatti

financing is XX%, our is generally, Shar. FFO Thanks, XX% I Sure. debt. think framework XX:XX And to

levels at right we’re now. I think those approximately

sort the we’re into middle would range. of be year, around I of I say, next think generally going that we to go as

continue support all changes rating interested and part the that made is the we've on QX today XXXX. able we're first with agency change emphasize announced first our get grid, it's think our we going estimate spot because where talk timing have of know of foremost to so to from have of are already comments reduction move with in the them. good with constructive we to You And and to in conversations we've from XX:XX the them so, financing metrics, in plan rating really risk for plan, that's any that in strong agencies the since XX% still to our things track hardening of [indiscernible] parcel forward, the currently I reduction XX% conversation us XX:XX any we and sort of best the depend think really not change been agencies are but we XXXX the risk we'll are, the to the are that etcetera, And advancing our further subject about the we changes that to the a rating – in to rating continue if we order are estimate, on, discussions. with AB in agencies. and those we the I

Shar Pourreza

hit XX:XX cushion if your you That's sort impetus. or balance it. think incremental not Got to the have to thresholds the in enough [indiscernible] cost get increases what there's I wanted That's equity markets. have of you

Maria Rigatti

XX:XX Yes.

some that as So, growth XX% company. balance range, into more equity in we and sheet. the we in through our us will plan that just out XX% played give to And support well the that follows as longer-term move our

Shar Pourreza

Okay, Thank XX:XX guys so much. terrific. you

Pedro Pizarro

XX:XX Thank you, Shar.

Operator

Steve question next Fleishman, is line your from comes Research. Wolfe Steve, open. Our XX:XX

Steve Fleishman

Good Thank hi. Yeah, XX:XX you. afternoon.

sense prudency those Pedro, to take the might on adjudicate? Maria, just any cases, how cases So, long

Pedro Pizarro

of XX:XX first showing. it starts advance. Hard all, to strong having in would say, with predict a I

typical gauge have to months, actions to what So, has that can And months, the put what CPUC XX into you we and a take once hard we filed. proceedings that of strong along. we'll team take file. can team and for a for might are have it the all very I see, it’s go the and better you together imagine, showing intermediary a CPUC a time on of have little frames something very short-end been working be how long Once be, would that expect XX file as will I'd our when say, set a just fast we longer, XX:XX little initial proceeding, maybe once it sometimes so see we can kind estimate,

Steve Fleishman

why this to on still That's change just statute XX:XX can't the then guess? estimate you happen hitting the come? things another limitations large I Is the of there Woolsey and helpful. of any mentioned Okay. claims also statute for any like, the related, exceptionally And - limitations again, fires those quarter, reason

Pedro Pizarro

as narrow our XXXX So, that number. XX:XX see the remaining count right statute to. broader question, you I along, [limitations that and we'll have it more the uncertain cases, is for your heard To settlements XXXX we stayed] continues and of under belt thought go because XX% just to we

might an reserve we've provision be that claim the now, right? provision previously reserve etcetera mentioned, you'll sale, were there not In claims we neighborhood larger size. added initially than average we Steve, those large is what made these in on As for we is, saying you was kinds potential is insights would small up. of to reality what in average we the based quarter, exceedingly exceeding there that frankly added progress ultimate is as a in, had other made and other are but cases, the had, expect see but XX:XX or had have in individual you some we one what unexpected, it only of we the see case may outlier great possible thing individual for of this increasing different. claims we expected what going number the that have now case particular frankly, And where the we significantly experience disclosures, an seen, were thought every provisions show cases we because a acknowledge Based can be and on we expecting be further changes also that now new new

for gotten, at end time. learn the would from best point under we've but this at GAAP the estimate our what the we provide provision continuous to day of try the believe information make [indiscernible] we that, is we So, in

Maria Rigatti

other judgment, thing it, continue I but looking it areas accomplished because to the through the important quarter be went all – at public as claim brought we'll of XX:XX every the point. settlement. it’s of big I’d have management We TKM I with to Steve, is that entity then go just add our best estimate subrogation exercise, you've we think continue as and one things went think to are Maybe we started it going settlements. to also subrogation I about to us the this the We think about settlements. We XX:XX [indiscernible] one

course both $XXX we closed into and did of the in general In TKM. last just the QX million both of time, XXXX the the attorney the increase settlements. Over quarter, has Woolsey that

XXXX also into, what where filing an by go-forward? that we review to it's a of and all and about to late terms also factors highlight that's able point the I XX:XX for the So in of in the this application. how to revision, brought So, what we're thinking made us about but how quarter going this thought being sort us point prudency think of we brought

Pedro Pizarro

uncertainty also we basically, and keep table. off I the Maria, XX:XX taking think,

Steve Fleishman

XX:XX all Thank for that you. Thank you color. added

Pedro Pizarro

Thanks, Yes. Steve. XX:XX

Operator

your open. XX:XX Ryan Our Levine, next question is comes line Ryan, Citi. from

Ryan Levine

the date first into do resource Two going viewing chain everybody. and And as guess Hi, adequacy broadly, battery realistic? what's good do how XX:XX supply And the remaining you I portion execution? Hi, the afternoon. more the August you still of year? of the status see questions,

Pedro Pizarro

kick that in actually, I'll off can to a also over turn Yeah. and XX:XX I Powell minute Steve on here. it

So, CEO the of Utility.

contractor that, I [indiscernible] project. on-storage megawatt the XXX you think is utility the headline know, on SCE as this for

let for contract. constraints XX:XX you this. you being the provide August on We it Steve, first, project turn portion of particularly terms commentary development chain, some over to potential a of in see are do me to We by whole of the online them conditions working more in as but under supply the the what China. – the in been imagine have with There can

Steve Powell

Sure. XX:XX

work at restrictions get to still ensuring on hey, ensure summers so for job talked supplies battery be megawatts that's everything the on as XXXX of and as we we'll all and we with from to capacity. point we focused interconnection So, We're that is we to lot and online the through other XXXX on delivery, XX,XXX we're this increased possible. and megawatts ground that As this based be by working you well liability look portion next. XX:XX third and the online of then XXXX, effort online more with to XX:XX many for with the other megawatts megawatts, ensuring Ryan – a XX:XX are in XXXX our SCE’s within state. but August, continue the like risk and and subject on state here, this been our trying adequacy, into Ameresco online about projects the than work XXX and there's is to get up summer, of out the respect delays, entities as China. still resources on some resource to progressing. supply than is resources question of respect of the definitely this couple summer, broader available. year, and there to can be is With about summer as going the To we the state enough that's we shipping state we position as of But ensure in of come that for we there'll procure around on a resources caution as better online securing the chain really expect of and a other into to getting point, We're it's parties. last more lot SCE’s the we could resources to slightly know, get to XXXX. focused in is project continued that at COVID feel focused ensure At beyond bringing get bringing project this X,XXX your batteries going

better a in summers. than position be we'll summer, last this So, few the

Pedro Pizarro

of think Steve, And on I’ll entities load-serving focused only California. the credit, risk I other in to but continuing CPUC, office, lot SCE, XX:XX very the to not like a the is reduce Governor’s give everybody

Ryan Levine

XX:XX one guess follow-up. Thanks. And I

In terms how of the of currently in cost file are going at you recovery, XXXX, if proceeds? you're that late use looking to

Maria Rigatti

obviously, Ryan, press issued have de-levering bunch EIX balance Hey, as payments claims we I do. – debt to some mean, have the upon issued and the we Maria. to it's support has of has to well some support recovery, SCE XX:XX sheet. a

the So, the out when we use next with get steps are through that of and what we'll proceeds. figure

Ryan Levine

the color. Thank you. Appreciate XX:XX

Pedro Pizarro

Thanks Ryan. much, XX:XX

Operator

Our Sophie XX:XX KeyBanc. comes next from question Karp,

Sophie, is your open. line

Sophie Karp

afternoon. Hi, question. good you for XX:XX taking Thank my

this on accommodate rate this this versus, run little the project, needs were should should expect for or kind battery the sort we equity other a we so, periods, right, for project follow-up to of I of because cost communicated that year to of project, like think So, come this your to not down you that expect of that? potential with XXX delays higher

Maria Rigatti

deploy capital XX:XX plan Sophie, we year. this the full plan still to

plan. our So, impact it on financing would

Sophie Karp

State, implications the the this? the are Help remarks. we is, for this] And reason then, a Thank given legal should where talk condemnation will in that you I [train could potential challenge outcomes current the this And inverse more you in little [ph]? your or XX:XX could bit discussed question prepared it. Got how view framework proceedings guess the go? that us you. the about to what and we

Pedro Pizarro

over Counsel, Adam this Umanoff, to Sophie. XX:XX Let our who’s turn me General

Adam Umanoff

good Sophie, Hey, XX:XX afternoon.

from that said inverse we to be own the our opportunity ignited that particular their think utility strict the settlement And as against is a The arising had damages now we investor prudence appeal need equipment. liable here XX:XX wildfires investor way utilities the with existing imposed an versus that cost strictly to application in enter not on to we plaintiff regulator. should we to And into utilities a on law in liability California. for court an [indiscernible] is recovery with fact ship in there's the to that condemnation before, has in are that the by the court imbalance proceedings the investor misguided utilities. issue are able So,

appeal, plaintiffs would equipment exposure that a operation our pursue case an in than would utilities investor construction were be be have on the show significant we no need liability would to we in winning negligent So, rather subject in a wildfire California. That if and strict longer we are to successful damages. the to liability improvement in in of

Sophie Karp

XX:XX would as that damages cases apply prior only like to well? wildfire of So or prospectively

Adam Umanoff

It XX:XX would apply only respectively.

As not even a have we for that for cases with have that current but Those current practical we that have resolved, matter, be cases live not take been that would settled. apply reopened, to yet new time. would law law pending win process appeal appeal would likely to we if and but to were is been that an cases, some law the the be

court] immediate [ph]. from I So, expect an wouldn't [adult an answer

Sophie Karp

XX:XX Right.

in diminish that of for or would wildfire guess, the won, states? framework current, greatly sort I you if So, the need the

Adam Umanoff

happen question costs Well, of under AB liability case what on is wildfire a XXXX. review, recovering is a which hand, XX:XX there's one the issue a still a in the would utilities separate prudence under

Pedro Pizarro

the is the that’s defining more for is, first and the really fund but the part accessing those cost view about time, about right? the once condemnation utilities, first the condemnation demonstrating prudent. that another the So, inverse to it's been – doing in AB over for AB utility really that exposure instance, for or [ph], damages [indiscernible] away way the and for can by and another case reduce which is potentially damages have important makes said those XXXX the most the against avenue how terms [indiscernible] for importantly [part] exposure our finding Sophie, of about think, recovery but all the prudency recovery under utility speaking I surcharges In really here, is fire cost then with utility. in [indiscernible] utility cases pays framework XXXX utility. utilities XX:XX the interest XX:XX seek

think glad that So important scenario piece we're of any have strong in that to legislation. is and I

Sophie Karp

you Thank Alright. color? for the XX:XX

Pedro Pizarro

much Yes Sophie. thanks XX:XX very

Sophie Karp

XX:XX Thank you.

Operator

from XX:XX Vertical Our is next comes open. Arnold, your question line Jonathan Partners. Research Jonathan,

Jonathan Arnold

good Hi, XX:XX guys. afternoon

going it new and up, [ph] or is are you it you share [payments] [indiscernible] know can of were don’t larger. case on coming are potentially claims, in talking just larger popping give of have more about, have if correctly, that there? kind be, color question of made come know, Can claims how the they seen sort just if than you provision a these be a Just big more of you've quick of to you is you these, also you Pedro, one you would thought have had others is and a and on you identified might for that claims might us much that not radar. I some your already you've you're any anything I that then bigger a understood

Pedro Pizarro

No. XX:XX

the that were large okay property case are that you because little we I average very people Well, we quality provisions number are And production bit I right, kind expense the make of little as and speak, was as one what about of average, often predict way and a litigation above best cases. think so some active basically discussions. not the I [indiscernible] XX:XX for homestays, an very build car has to we average one is not are collection did number, have developed be the Very best individual that and average where [indiscernible] settlement that's in in the the some and also kinds number Adam lots cases garage. instance I'm it, mentioned might neighbor we about any [ph] that there handful exceedingly accounts first it have some beyond we our of homeowner in to estimate to be what I that value I case garage without But a in by give the mitigation, we statistical keep and our large larger or this, provision who in built for of Does to a and but provision cases, earlier, when head When illustrate the for them understand detail. a had exceptional very what home. and but amazing included This included in a the specific higher, our maybe large cars. sure exceptionally these obviously case now upfront. And you we working on a so, [[sharing automobile expensive we with radar But into the one analysis, than saw with a anybody’s that of XX:XX These personal business provisions that an the illustrate of be paid. know, [indiscernible] you so, we active that my happened lower. them XX:XX lots will of the view help is, because not [remaining includes is] an of for. reserve in will tail] share was Well, and see neighborhood. additional So, make contents illustration and seeing going for last of example We this are collection provisions Jonathan, of we're and the hard now average what cars XX:XX can't it you as Jonathan? cases case can where right? that be the expected value getting of would anything estimate, was, quarter, sort we we for and is. And it of home – imagine

Jonathan Arnold

the numbers. XX% to thank XX:XX is Pedro. round I X.X, my unresolved, that how new X.X to if So, you resolved and you so, sort which best and tail continue is – if XXX this you’ve I on obviously – sort you quarter. million got of really it think in estimate closer XX:XX that in is for actually And of follow-up, yeah, may just

quite of Given and a you it must here. pace and feels like what you're resolution target, timing slowdown XX% saying about the be anticipating

Maria Rigatti

Maria. this Jonathan, Actually XX:XX is

also timing in quantum. mean, progress, people plus, of some There you I XX% couple the see things. slowly, what's obviously in decide may The of as cases so. other about things are litigation cases that of those to could or because that think it form the last complexity is but in I'd come slowdown think, are we'll that of tracking. related XX% to we I see a regardless a couple It's more

case on we late sure. filing think few going things application includes took we is, timings, them for safety of to plaintiff of inform different based be where for a There that are all settlement intravenous around process our those other litigation. stands. few the but to the our individual are division XX:XX One It's we that So, related important claims the things settlement components first by XXXX.

Jonathan Arnold

all you Thank Great. that. XX:XX for

Pedro Pizarro

Jonathan. Thanks, XX:XX

Operator

XX:XX Michael Our from Sachs. Michael, is line Goldman open. next comes your Lapides, question

Michael Lapides

my taking for you Thank guys. Hey XX:XX question.

rate me, of that outcome part that X% can cost growth curious, your incorporate that is annual right? you any X% recovery, growth, billion Just compound EPS as to remind doesn't $X.X

Maria Rigatti

XX:XX That's correct.

seems So now – recovery. because it

Michael Lapides

XX:XX It recovery. assumes you're a

your So, reduce how your rate if – and go therefore base still assume than proceeds, would and much, regardless expense? growth growth is interest debt faster this reduction would of to any, there EPS were those I mostly

Maria Rigatti

EIX the rate. financing our based investment with on XX:XX plan, So, is exceeds to growth our partly growth that payments earnings those wildfire claims of because a rate debt have the growth growth but drag yeah, to associated the also the

that, able reduce are extent interest certainly So, lower to have expense. we the and then those get to reduce recovery will we

Michael Lapides

it. XX:XX Got

were we it the proceeds some get And debt when you think top kind That's does think would down used about at level? to just to company or any on helpful. all curious, if of of go being down the to you pay pay Okay. that's holding super capitalization about utility in,

Maria Rigatti

Well, do prep it I flexible. is more is because the dollars last a XX:XX year think of definitely right? use mix elected utility. Sure. things, we EIX of There the could to

that it, the we’ll call you we mix about the extent years have of reset think things get to what in recovery. a we five can have an you opportunity so do If to it,

Michael Lapides

XX:XX Got Much Maria. Thanks it. guys. appreciate it,

Pedro Pizarro

XX:XX Yes, Michael.

Operator

is Gregg, XX:XX your from Gregg Our open. UBS. line next Orrill, comes question

Gregg Orrill

I covered this, level? The review you. thank if mechanism you covered was I – that sorry you’ve it incremental gets wondering how above base. recovery Yeah, conductor rate XX:XX of X,XXX if into miles could was wondering sort the,

Maria Rigatti

XX:XX Sure.

level. the So, in including we track us that covered X, go authorized GRC balancing to mile a conductor, X,XXX were allows up for account to

plus of the For that. that would beyond the commission already and XXXX. and we of file by application we the resemblance review when contemplating have about end amounts level, file an the would We're – X,XXX our up going X,XXX above we

we proposing be for X, part track will in that. of an additional is X. will And would associated application track conductor there be approved covered So, XXXX, it be as then and with which miles

Gregg Orrill

you. Thank Okay. XX:XX

Operator

open. XX:XX Our comes your next is Chase. Richard, Sutherland, Richard question from line JPMorgan

Richard Sutherland

XX:XX good Hi, for afternoon. the time. Thank you

through need? from circle the now to on wanted for recovery, associated in wildfire carry that Just to the incremental without that XXXX, late the outlook, timeframe, target equity claims liability there financing incremental meaning now your late to is XXXX application capacity back is what cost

Maria Rigatti

FFO in of XX:XX perspective Right framework, So, to, sheet. generally we're to our back on the generally think, balance to XX% XX% go sort that debt now I'll that our I around XX% level. ranges

generally Going see band moving to farther range. into that would also that, ourselves year, or we that next into

the the announced we and financing just XX:XX a we've plan. the plan. have still not We QX that to that financing disclosed know call. our to estimate change on You revision had committed had We're to

plan we're next the actually our XX:XX for Richard really happen. kind given loan of stronger So, out executing in and to our a reiterating possible the the XXXX, into are took in term we on and ourselves primarily EIX to absolutely all sheet on execute gets might have that As and volatility give balance and time market, room and anything of flexibility but more or move We year at plan. fluctuations more more we more best opportunities we'll way. flexibility actually focused yet, that financing

Richard Sutherland

XX:XX Understood.

So, versus now? for it's range to I within range the outlook XX% really and that sort of is mechanically, movements just guess, an in keep XX% mind that midpoint saying to

Maria Rigatti

I and we're the going right. to range. That's range XX% to use the XX% XX:XX that range is mean,

Richard Sutherland

XXXX bit, that but behind base hopefully And it. to XXXX rate just call Got down is any that out moving revision? clean-up Very then XX:XX a little ticked saw just unchanged, a question, clear. parts

Maria Rigatti

capital It to have not question. does XX:XX actually Yes. do with Good our execution.

and that to, of If XXXX pretty is buckets, base. The get broad plan capital rate change to you to or capital of applications was very in timing around QX very timing, I'll very, – close impact say see, did our authorization related adjust some when call. when two mostly we both adjust is items timing where working our it we

is a XXXX, see change you'll there So, hasn't XXXX changed. in but that

Richard Sutherland

for XX:XX color. you Great. Thank the

Operator

XX:XX from from line Bank question America. your next open. is Julien Dumoulin-Smith of comes Our Julien,

Julien Dumoulin-Smith

everyone. afternoon, Thank for Good you, the time. Thanks operator. XX:XX

to back your a to that coming that on we or bit led Q&A talk possible point? best to desire negotiations here, we the twist the just can little new where just led just started So, to what at elaborate settle, extent the here information can during settlement you at to this

Pedro Pizarro

right, then, well what cases would were Julien, based analysis. Hey to related what because the have larger, were it I of extraordinary I we thought we covered have that expected and question, went Jonathan’s think our pretty prior XX:XX significantly a some might that's on that with to so question I bit your cases let question, think and to settle us

[uncertainty of and a this have I consistent as just and too of each have of in nothing whole sure lot many about XX:XX to neighborhood Julien. not the kind comp] And And was an of They've add well areas the and to families. both beginning I'm get case by And set lot calls. obviously a credit arms by of this the give household thousands is toll with reality are about that job is past as mappings very do in the and the our individual our were cases. team you case support then internal We're So, that points case thinking the reiterate to on these we on outside that a what team. done across from tragic great impacted? trying maybe there, and to by case case sense a of around these and I know, the [ph] each cases impacted

the kind – a the cases very response adjusting think at also to [indiscernible] to able best this was but I there led experience that are that deliberate a [ph] biggest at there’s might [pointers] XX:XX give back progressed, That's we're this provide more surprises, the very for anticipated, that prepared anticipating such scope best we well been, that estimates of more candid color small can come of the what you thousands going to saw, number we’re case. taking large you through was you of seeing were cases along process And we're it's a beyond right, and estimate those – XX:XX we've that find still the and and only And our uncertainty number if we quarter the now we and of team large low cases. been I thousands second rest to tail probability for of in point, and the the surprises [indiscernible] were reserve of number couldn't a able we because very of belt I very all making part factor as the we and across it's about the and reality of remaining. just question, amount of what the you methodical then with of settled but big part got way a developing be there seeing. the learnings might and complex Jonathan’s taking curve had estimate. this my Initially, an We in end of remarks additional the again so, didn't to the that's a about surprises, on so, Julien, we statistics we surprises a recall, course, frankly develop to XX:XX not the the that in I driver reserve mentioned that think [indiscernible] large of range, estimate, under no shift And our it, are we estimate. to best provide best

Julien Dumoulin-Smith

maybe is that if If Jonathan’s distinguish and and quantum XX:XX simply you and in but that's estimate, driving what triggering sort to between clarify the Pedro, decision [indiscernible] a mark here just in what's right? some the settle, there nuance market you settlements? or can is two? new a information I question. different understanding different to hear that's the Why from why settle? pattern settling resolved? distinguish driving gets of is maybe addressing, I to the the can actually, Or Is bifurcate maybe it is, the intriguing

Pedro Pizarro

XX:XX Yes.

go I think case. way is, the we question by case best to your again, answer

extreme Let here. me [indiscernible]

particular are that have that not trial we that come have the was or take [less] but changed who the settle was point, change a saying end settlements. field be baffled at approach across [indiscernible] a making XX:XX right? [ph] in case don't I there saw our at of the any the been what we think settling. We which that And of a These our one what we litigation, better think [indiscernible] a have of that okay, to of would at we by jury sense was continuing might case demand alright, decide we up yet, sense of costs, to this case, we some that's day. might big so really don't [indiscernible] the sure] we favor, out I arguments case the would of just costs have its systemic logic the there's news So, [indiscernible] that has this XX:XX fact process. [ph] we bottom might the our understand further like. [I’m understand [announce] around, way have our by in pursuing own [ph], have we legal And decisions favor, the in set where [indiscernible] arguments in

so case on case those continue basis a make to by there. judgments we And

something is is aware or we're help is how XX:XX aware quarter differently settling a there from If would that answer more asking, your systemic no. something question, your or the be influencing of, about there you that with that that that are think of is Does something question ago, or Julien? else we

Julien Dumoulin-Smith

XX:XX for and Yeah, time Absolutely. the patience. Thank you

Pedro Pizarro

Julien. you, Thank XX:XX

Operator

back turn call XX:XX our Mr. last will question. was the to Ramraj. Sam over That now I

Sam Ramraj

for you Have good of rest us. thank the Well, stay This XX:XX joining call. conference and day concludes safe. the a

disconnect. now may You

Edison International (EIX) 3 May 222022 Q1 Earnings call transcript