EIX - Earnings call transcript Q2 2022

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Sam Ramraj

Thank you, Michelle, and welcome, everyone.

Our speakers today are President and Chief Executive Officer, Pedro Pizarro; and Executive Vice President and Chief Financial Officer, Maria Rigatti. Also on the call are other members of the management team. Materials supporting today's call are available at www.edisoninvestor.com. These include our Form 10-Q, prepared remarks from Pedro and Maria, and the teleconference presentation. our update distribute will we regular presentation. business Tomorrow,

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

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

Pedro Pizarro

target Well, growth X% fully SCE outlook emphasize share thanks in of its Sam, mitigation. and of we for also her the will year, the level mitigate afternoon, her its like of to EPS equipment. our reaffirming with made update that year for the wildfire preparing good per to International confidence I long-term want compared to on peak year's everyone. a remainder XXXX has range SCE $X.XX of Edison a confident this season, has Maria guidance tremendous lot, to a in are in core EPS associated $X.XX ago. $X.XX I absolutely would we on earnings progress financial remarks. with In and through discuss reported wildfire of wildfires our an $X.XX. performance XXXX. begin performance core to that X% higher Based to ability and year-to-date, remain our

with per of reduction is have XX% will years. for circuit the and I execution has for significant which SCE miles covered miles milestone. timely next SCE just has this utilities am by over reduction X,XXX achieved tool. couple to continue risk HFRA plans years. or it half risk program, with lines customers. Since pleased its X,XXX year three substantially current areas, improve area, cost now of conductor the through the and distribution about of reduction of over has balances other covered SCE continue expects installing covered and SCE quarter, many a majority safety execution, wildfire SCE XXXX. in hardening achieved conductor equipment It system, the hardening covered power risk and extreme inspections. In end or overhead vegetation wildfires. shutoffs weather the primary during implement cutting critical also approximately and and technologies to conditions. against fire high grid to conductor power fuel During of conductor pace its covered to bear risk mitigate high Public of wire continues management, that measures, a replaced PSPS the locations edge throughout provide of service impact safety in hardening to is additional of SCE grid

resiliency and may forest continues fire suppression, example, also and will For resources. SCE is substantial wind accuracy which of local fire aerial PSPS of predict speed of and improve areas efforts SCE readiness forecasts better this utility The funding agencies. the in state wildfires And help exceed XXX is the leveraging around station the locations. machine weather reach to thresholds. at or learning California of including allocate response support our to crews supporting

world's force. night, making agencies. aerial it most Fire drops Los and Ventura fully tankers wildfires fourth million contributing agencies when fire providing and QRF's of lease can retardant the and feature is the electoral dropping retardant make help reaction that force $XX do Angeles to The is is to first For year, local critical SCE consecutive to water resources suppression task to start. aerial hover SCE quick to they extinguish it the continue County Orange quickly fill at

fire for In new ignitions. utility and artificial confirm that addition, SCE's and the wildfires intelligence detect technology agencies to growing sources new continues fire can and camera network data explore provides adding to visibility

this SCE's Education Emergency to on Center that like meeting leave Operations and I an at Before I Center. remind topic, would investors we Energy XX hosting August are in-person

to and team in energy SCE's ongoing wildfire leadership opportunities I discussing Our look mitigation and forward transition. clean activities California's

folks under final a right. Safety, Last annual the down. prudency made prerequisite wildfire safety of plan week, overall the its and of submit has XXXX. its progress SCE from XXXX risk to mitigation recognized So wildfire strategies. Energy and This to approving mitigating coming of certification benefit from portfolio cap which SCE All and request Office is mitigation maturity allows increasing decision This AB the the SCE presumption the a received liability decision in the Infrastructure update. wildfire

wildfire-related to settlements. Turning

progress the SCE's resolution to XXXX I remaining insurance Safety has substantial for claims. make be the in FERC matter Division. like or second resolved remains the on excluding further progress nearly cost wildfire million of with SCE would XX% reaching steady continues events losses application to on file the claims. track to recovery and of way resolved and or utility claims approximately XXXX resolving with In Enforcement mudslides pleased recovery payments, are clear $XXX amounts that full recoverable really its claims. TKM agreement foregone its We cost in to in to currently expected claims by SCE quarter, resolving and expects CPUC SCE under total, first is the from seek of of and late best well XXXX. estimate In the of

California employees on two this topics, our of We brought will I Shifting Southern updated you would front. address briefly progress like to by keep lawsuit Edison. on former a

SCE As damages we law, fault of Edison not reflect for. was jury settlement. not engage facts legal settlement which part with $XX that the reached do did some consistent and net But to award rather liability of believe protracted July, a a and International for and or a than we be jury’s we we We stand charge you substantial the does the certainly in challenge, what in the plaintiffs. decision admit are not aware, or took the it may after-tax of who million. as

wildfire lot mitigation, also our strategy. a to because to on so about Pages recently We focus of sustainability company component sustainability covered These X published achievements. report, details this and Most want I is covered far continuing adapting risk Okay. change. our underlies emphasize in are climate annual our XXXX my a which comments which core X. on

of energy among average you Further, see primarily of Let operational lowest SCE in across total service XXXX, gas that customers to for customers electrification. gasoline natural potential area country. and committed see that's me the to on relative the continue rate household increasing the and decade decline other states highlight levels total income on especially of the electricity, below cost X, or Page that to in IOUs large California has than We as the cost that for due a is more was with management. focus median system and excellence the median in burden SCE to the

delivers state analysis with is by that last let as electric X cover Edison and and shows the chain. will all as Our California, to customers appliances saying SCE that for operations, costs announced efficiency In energy financial greenhouse recognized greater alignment and climate reduce me across report. Well, it turn one-third the total her X goal Pathway enterprise-wide X, Edison to our we International will clean motors year, Scopes that is over With of zero by that the power leader to gas International's a including achieve across that, 'XX net of in supply well energy let nationally conclude customers' the planned as by by by XXXX actions transition. XXXX. commodities Maria emissions me

Maria Rigatti

XXXX second and year-over-year, of EPS of primarily quarter. per the At International decision the due Thanks, SCE higher increased offset good core quarter in in share reported XXXX, of afternoon, I'll loss in higher for core and period XXXX unrealized On the you from and the in losses to higher can $X.XX quarter key the of see side, $X.XX to GRC on for $X.XX XXXX EPS revenue the year. final the SCE's two Pedro, higher EIX second second same was This at everyone. a expenses. partially Edison other, on Parent reasons. Core preferred earnings by was and adoption last Authorized unrealized quarter. the due O&M the and highlight right-hand primarily dividends third X, GRC to by investments second recognized drivers few. was gains compared the Page quarter

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

costs X. it year-over-year primarily QX primarily Second, because the final by for contributed of With related XXXX GRC revenue costs have not $X.XX of The second variance timing this recording in this was to to there remaining revenue GRC year, impact earnings deferred was were no recognized growth. last activity at growth. memo driven timing revenue because approval, levels. net was the mitigation recognized Track Other difference from to did this for CTC previously higher, approval $X.XX also revenue wildfire SCE expense quarter This quarter recognition. the was decision of a revenue O&M accounts the SCE

last X. Page X forecast SCE when capital to is of Moving we SCE's GRC. capital quarter, the expenditures from requested its unchanged Track reflected in

funding SCE's XXXX submitted SCE its which request, GRC. X second year the for the During third covers Track quarter, of attrition XXXX,

miles to conductor, installed driven to the increase deploying addition which high a proposed GRC its or risk SCE in covered another fire by about attrition X,XXX of revenue by the of inflation, bring end In about XXXX two-thirds miles and total distribution requesting overhead the utility X,XXX of mechanism a miles areas. of would

XXXX strong This base achieving current in SCE forecast on continues to the growth request see base forecast rate in of shown and rate X% and potential Page GRC projected incorporates capital XX, XXXX We to made XXXX. from XXXX. be to to As for to SCE's continue of through capital growth to applications. X% other the X% our deploying view X% result

would couple like to a quarter. share to positive I turning the Before guidance, in developments of

to wildfire for June run insurance carriers have measures First, that completed SCE risk, company's year. the policies from through SCE insurance further wildfire XXXX. XXXX its implemented view negotiations recently reduced In the has of this July reduce premiums annual

Fitch quarter, progress SCE's outlook both combined and EIX raised positive outlook wildfire these to affirmed addressing Second, were during XXXX changes by positive with risk stable. of constructive utility's credit and from the their the AB of rating the significant framework. recognition Moody's Both driven and

assumptions key guidance the and for Turning XXXX Pages modeling XX our to show XX purposes. and guidance.

We guidance our XXXX core EPS range of to $X.XX are reaffirming $X.XX.

our year. resolution of out. XXXX components cost In scoping a will a law after capital cost will to we proceeding, that two issued incorporate XXXX. are and remain and outlook unchanged the to with on the guidance update ruling the an the point recently receiving of positive decision, whether provide final administrative of for capital changes judge And for awaiting like rest CPUC We the I'd any

decision proposed mid-November, which to final a be be for First, decision the calls proceeding by to for issued a schedule made could year-end. allow in

which $X.XX. update on XX. you has consistent Second, September, schedule proceedings, $X.XX more cost growth will to reflect our update to plan with of We XXXX financing and earnings we our EPS a a our and the SCE's SCE of requested strong updating XXXX allow its earnings to SCE would growth confident and debt guidance, EPS in calls for ability brief which X% will for our EPS call. introduce achieve also in At on now X% that which to past to a made of remain the case provide time, final shown on to results interest target. from will request rate QX incorporate XX.XX%, range XXXX in in Page will forecast. XXXX up-to-date and we rate decision ROE of like XXXX, preferred our the long-term we I on

we the debt loan disclosed transaction remains $XXX later with In what for Our and content consistent issuing a flexibility shared agreement, you April, which in parent under provides XXXX. securities or equity overall plan term this the year matures with XXXX. borrowed previously. million in This previously

our equity preferred to continue common to internal will to monitor use said in program. equity issuance, conditions market and the past, at-the-market structure, which, have optimize capital We of or the as we

this earlier establish year, program coming prior we weeks. a plan three-year to in the Our and expired program ATM replacement

by business building by on clean comments EIX conclude Since is from the Pedro's on the billion bonds to demand publishing me last environmental and of strategy that issued that the the funded with social and drivers these has strong under $X.X alignment June, the underway. benefits Let between transition sustainability. strong framework I will earlier sustainable financing framework sustainability investors bonds. energy the recognizing related emphasize projects and of SCE

company's this to continued securities Our remarks, strategy framework, sustainability-oriented can which under with concludes focused ample large my so on grid questions. of is capital aligned go investment we the the provides opportunity That and plan for issuance vision.

Sam Ramraj

[Operator Instructions] for open the call please Michelle, questions.

Operator

[Operator Instructions] Guggenheim Partners. Pourreza with first from Shahriar question Our comes

sir. Your line open is

Shahriar Pourreza

at Pedro, for bit process, end wanted going on the exactly that more mean settlement But threshold of you're sizable of get as to have the So by 'XX and recovery valued the guys what the just legacy a of likely I filing. I a claims pace clarity have to going, file. you're year-end. little terms majority in you liabilities to is a the target

XX% have why continued You you XXX% the are to already. file? filing guess, make resolved Can you waiting by progress, potentially we If earlier? there's could year-end? hit I

Pedro Pizarro

Yes, question. on Shar. thoughts the for that. A Thanks of couple

on we Koenigstein, say, in these final of is completion. at hard And before you least XX% not about threshold, about a the we it's XXX% to right? necessarily, is exposure. notionally happy Substantial want -- past that mentioned substantial talked agree so When that front to focused a want we about we've that cases. both the having what an application then aggregate as Woolsey that that have mudslide First, That's We've across XX those think they commission the that matters plus. of clarity not now, settlements right XX there see that. as we well can will different believe that then we're not the is the enough enough right? we But place matter. Thomas in to in that will they progress see remember in are put split the So

towards our likely first what to more make be or a we've Koenigstein, go the Thomas year so so an pointed to into confidence stentorian mudslide application of is by by that first XXXX end -- we'll then. the that application. earlier, the those And happened

it that and as out And across we cases, that nearly just a active so just haven't joint best the broken number. it's -- all -- litigation, is have remember that provide is so now of XX% XX we for to

feel I urgency cost of sense want a we but your feel I So which think to And is do right. sure underlying really you think urgency, we bottom we a that into when haven't the percent sense but hit. as It's we recovery, for of need is what's I think exists a line because precise not judgment x.y amount outstanding, looking file of it given prime question, that we ready time. of to will also this ultimate types we're for the the number to don't it's at the number number. we on only factor our plaintiffs, cases call all

Shahriar Pourreza

being given since than then legislative territory. effective covered solution more guess, undergrounding just there that guess, risk that much reduction covers I a conductors some you more measure? service benefit, think the from just on you to that are, your be as framework for Do should approach? potentially a a does framework you some physical And that on enabled And give I legislation, would areas just progress made the address stated underground that

Pedro Pizarro

Thanks, Shar.

mitigation the process. XXXX, that have It's and AB framework. plan wildfire called We

trees that feel framework. areas quarter zone. falling we a friends shared come We their are land, with that we'll outside -- into increased last our we that PG&E. a vegetation very do geography number about of lot incidents with So we've this comfortable more framework, at of from from do different undergrounding. before, Under at they forest looking where the targeted very of where have we more have talked have lines management have a you They

making contact lines. more have grasslands we more get or with blow We Chaparral in the

and the quickly covered been fraction has why, that's deploy at territory. is plan, perspective for risk the But solution are doing under of again, we spots. our which wildfire conductor, undergrounding of most more can spend undergrounding of looking the custom a much superior and a from so And efficiency we mitigation targeted more

said miles we of the us, be of think hundreds probably thousands I that in past for not miles.

and through larger are because right I they have our focused scale Sacramento that is asked the You legislative on going now, at PG&E, undergrounding. package of friends very about much think,

passed, our so the we have of think mitigation But that. and for the plan I Southern I our framework course, at there California see of be what there's point. this will, given we would the if at be on take need beneficial we And customers. it a we and anything strength certainly Should that have Edison, hands look legislation that scale respect wildfire for

Shahriar Pourreza

maybe reiterated the just that one you one is that And last you rate just for quick underpin the what's growth just guys ROEs

Maria Rigatti

our put we out in have and rate, have of around that we since numbers that XX.X% been we managing there. embedded the So looking growth all at and

Operator

Michael Lapides from Goldman from comes question Sachs. next Our

sir. open, is line Your

Michael Lapides

be that when XX out to going and rate I that's curious, do your I'm to things move things XXXX, don't is years? you're the about on XXXX, get looking and growth how XX what changes Just long-term those guys. you term guidance, needle talk But more tracking potential probably process material items? let's base XXXX, you long And make think out further than at could certainty mean in years, the to that those could

Pedro Pizarro

question. Great a at leading actually growth be point. about in rate are and XXXX, lot care but XXXX that other And Yes. do folks that who I the probably

goes of And grid. needed underpinning we've maintain grid, lot there's but that of outlined that shared to core reimagining the not see plenty core things investments paper, right? continue start too. there's that and So a with one are to bread-and-butter core growth X% into resilient, to white reliable investments But investment that. we with that's make of starts the continues X% to good also needed rate It with just And can this It enhancements the as a right? only grid move the we XX%. so we first, talked the before, grid we about and that, the that stuff to needle. are safe the have our And to we expectation have the

have to inside make the X% help be support to order X% of utility additional about investments to in make transition. asked the talked have energy We may also should that or clean how expectation we that

think it's level those -- some category, I so we will that And be where of need. particularly there know

customers really need ultimately beneficial our the beneficial what market are also but not and programs how for case, this even extent cost propose have will beneficial be materializes there a ago is at meant only underwriting that that of XX to it's all when the to application that SCE's the a part you will right needs we customers, the and example to and around policies. proposal, building right see customers I and of in look right? is million love good solar transition, rest electrification And we think clean ratios. stimulate cost to to with when stimulated or see our just the behalf market approach And be of incentives to economy, energy investment a stronger We one. We on when for of that's to of additional it's application, $XXX the the various the the you application, years benefit like market took pretty But sluggishly stimulated that part moving now. with programs that benefit for it our was

see investments transportation. needle those the as customers as move that for And I item about needle our the really move earnings for storage greater make the need and but do investments think that then can we earnings, both for we for that well. building would that move first the That's for include mentioned another what if our needle right, for. electrification. are we economy. not could we're That So I first thinking that will

the about prospects the future. excited we're for So

Michael Lapides

at you like, framework recovery about follow-up, cost how what end look I that half process 'XX one mean on that in of actually for then And a filing the proceeding the the at CPUC? Is -- actually would second XXXX. of just talked work filing, there process-wise would like

Maria Rigatti

the the outstanding SED reapproved. one got recovery. settlement through of gone recently that with The of but that we've process, our was pieces Michael, happened the all actually thing CPUC for we

et requests look approved the gone we've recovery, process, through at that, what application but second information of be application. a an would for filing so out Interveners taking that's We'll doing. time. are which cetera. all And course, other be would So as well a about of lay our for the the as now CPUC we claims,

then really the application, that's and file And commission schedule. with come scoping process. would you a memo a So an back once procedural the

Operator

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

Your line open. is

Jonathan Arnold

good -- have you costs. but news that more that's queue, a could maybe perhaps mentioned and Could the you little you in share detail? insurance on Maria, you

Maria Rigatti

Jonathan. Sure,

using we a our in ways. hard for I'll working to, of commercial about we've One maybe tower. are customer-funded that customers. minimizing so before customer-funded self-insurance. self-insurance, step about take back getting filled of on the and million So doing premiums down insurance talked can the really And year, the And with pieces fill we then the actually $XXX this cost is, also tower, we wildfire worth two

just great don't a affordability reduction losses, avenue year. if to that have roll customer that's So because you next really for the cost and forward you

on which piece, that we noted, what ongoing insurance third-party have risk at found I'll of, sort because is this us. reduction as charging the we year, going have what other a the of the The and I And company. say, are indication carriers commercial is

low year, are all online, online. from way just policy since the which rate -- year to last policy level rate percentage average we're just started XX% up the the online the has top. which at and XX% look down Overall, the being you the If has to from ended gone current across the again, that versus charged tower weighed now

we when we're our for able seeing we're use that that we're mitigation better self-insurance, trend finding a of customers. acknowledging risk the that see customer-funded it. provide to are and the So couple a with starting people -- And to outcome

Jonathan Arnold

understand I that. sure make to Just

to would $XXX million million it $XX up $XX the versus coverage, and scaled size of program. for be million So of the

Maria Rigatti

you do how it. That's That's That's right. right.

Jonathan Arnold

one cost. And on then just other question

I that the was on what noticed about general bit pressure. or adjustment for you extent And called and just inflationary timing the quarter. labor well curious, also little a O&M Z-Factor context Just in as more in Curious the talk so whether too, maybe guidance. costs around -- to filed a you out that,

Maria Rigatti

Sure, those O&M recognition. moving on issue X buckets, it's Track that's both mentioned there's but I wildfire that in the quarter, some really expense through timing mitigation of absolutely. The the that of a

So the that's happened in quarter. what

I terms and in think now, we application labor file outside in of the where inflation terms we're fact we -- did like, ago inflation, that's and wildfire weeks that recognition of seeing contractors. mitigation, few the have Z-Factor related, that in of does management, a it's largely labor our

So of do a that that's seeing to where use the inflation. have we we're of it. We number order areas impacts mitigate in

basket the So we our have GRC. the every year. revenue of And indices mechanism a in attrition requirement we use escalate to that's

So important mitigate. I risk that's inflationary think one really

in balancing get and reasonableness, recorded accounts, interestingly there, in we're market trued costs the now. We embed the but memo there amounts do that seeing the get accounts ultimately, the have they that can the we up for

we'll filing, Track avenue the we inflationary mitigation, well instance to that impact. Z-Factor our an just also included noted when occurred. So on able some we come X again, there's as there side. seeing to XXXX, capital of that to inflation the going we inflation so back recognize we And the actual one be additional that's were where In some that

to the embed we time, in further contracts out go that and obviously, current is be we able as the GRC you to get XXXX a longer-term trajectory, and we'll growth have. new Now

I think, of covers the in inflation impact. terms that So waterfront

Operator

with Steve Wolfe Research. comes Fleishman question next Our from

is open. line Your

Steve Fleishman

to know of for I you resupported X% kind 'XX. X% earnings strongly growth the

that you're the mix? of higher in have that, of Just the you curious cost environment financing we Is doing including you versus do beginning that, year kind currently when of the let's of when kind are that? kind say,

Maria Rigatti

it's absolutely in the mix, Yes, Steve.

I always think that back rate answered the pretty earlier ultimately growth that base to base been EPS talking extensively. that X% the X% X% about we've trajectory, growth to and still Pedro I to that underpinning think, rate X% question, keep going

folks, EPS or those So again. the create are items that line move costs context time. whether covers the each parents And fundamental other those so that's shared and that variances as there, with for into of you things forward many those I authorized, for I many, it's to really across all won't see in SCE those that we've But operational well. But you, always sub buckets. they some managing above the of topics as growth. think, holdco can or items go We're

into et came interest this rate we when we are that use, SCE say that definitely So reflect the authorized I the we did update to of that higher at would interest looking above looking those costs at rates. quarter, tenor perspective what's cetera. through we would from forecast,

the we that time, file So involve Pedro at recovery before, would that expect time different Because cost applications, to that -- we're two horizons. point going in we're TKM mentioned probably right?

still filing still pending. applications So based on XXXX, could the late first application subsequent there application, in and then be a

probably shorter interest the And we're point. So or end we at looking the forecast we're the embedded rate at in percent -- this curve. XXX in of be so will that

Operator

Our next with Mizuho. Fremont question comes from Paul

line open. Your is

Paul Fremont

about assumptions assumptions? your sort in and $X.XX the the $X.XX sort in can you comprised variances But the what's of expense. get discuss change and of there change your in talks I XXXX higher so interest And the of slide operating the that

Maria Rigatti

Sure.

overall variances, year, long operational I you in a talk excellence that So operational an had us and our have about that we closely. commitment, see something and of time. sort core for rate very perspective the average every state think It's system and the is that that's to we lowest area manage

the line efficiencies, impacts. behind of it it, earlier, lot include things. timing there's that it -- I includes true-ups. mentioned depreciation things as that. different operational include I many includes see can there's -- item though, It that, think if there a in like Included you So so history That are of just regulatory just

that involved it's get just So closer we're mix in and some have there refinements and the know in and we deliver because we'll that's we've been that what terms do of about continue make there, changes for look expectations thing dealing point rate other to we time. able as be And at us natural we environment able been the closer, to that a to do in category. to the at with interest

So it's managing business. just part to of our approach the overall

Paul Fremont

is But of of sort of confluence just it's anything talked about? or of a the sort there all that specific you things

Maria Rigatti

business be It running perceive of what and excellent lot would is in that It's things manner. just operationally different to we characterized as a an and the category.

Pedro Pizarro

just and work Maria, driving that's Steve a a some engaged to this there's bigger now big I would bang very deeply things Paul, is of color. but that Powell last where moving more the our team been in one quarter, of that teammates And a in has one shared we're right smaller right, we are It improvement, little employees, business. There's a add at of lot some thing really you And there. parts. to the that, focused and this. There's interesting not bottom-up operational SCE further kind on big ideas, approach that our ideas, give

a us there's terms to illustration a enterprise. just And valuable You pieces of see think work lot the you of that And Maria's add diversity the of that's part grease operations. get hard is good to in total. up lot another we of gives elbow because approach how it of point, and of every across that

Paul Fremont

wildfires issuance might disclosure your billion on Can year? funded this you of the as you has update year. of end of through think so sort that debt done talks to have I any that And the about far $X provide what last

Maria Rigatti

there's Paul, earlier don't amount, out as then fund wildfire which The markets. But year been go it wildfire typically, use the claims issuance -- claims. it approach year that's a we'll anything think builds of the one finance I of was this make different. number of over that been capital the up payments and to to and particular in is course a SCE was would had the SCE

that believe. QX, think occurred I in I

Paul Fremont

And how that? much will

Maria Rigatti

$X.XX That was billion, X.X round recall if something, or I numbers. correctly

Paul Fremont

were fixed And finance then of the If the you you're last looking -- rate? variable of about you of finance sort curve. Because to looking short Or heard to looking rate? end correctly, you to are you are talking question. sort I

Maria Rigatti

Yes.

rates variable as time that So of have loans well time definitely the team we utilized rate it. from at had there as looking actually are for -- term out some some to fixed already notes, that, all

efficient to going still likely get to the timing on there. you we that curve it, do look be likely in and So application. recovery, our the as second I we're just shorter applications what's just the of of because give focus the would for effective end way for for at potentially just will most middle we the

important financing need also apply run applying the a But is we the because to to cost, associated way expense payments, them really recovery the of we we'll it's obviously, period because business. over the also to of interest be cost think minimize claims for of the efficient when with minimizing time. recovery I this

a perspective So us eye important well. from as for it's to that on keep customer an really

Operator

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

Julien Dumoulin-Smith

of maybe may, to off just If of up I where couple pick off these left guys here. last

recovery that that, about to On on putting out too, some and get in the cycle, amount Do you puts plus you case and can side the still you $X.XX then think based operational right? there, $X.XX, you different, kind Or and there 'XX start minus talk of from outstanding or the rate or XXX think if notional a And about the takes the you what shift the of same think 'XX $X.XX would you timing it? as in about the on the about of excellence, by recovery? the uplift you're that on just other there of probably on being have Delta? and the

Maria Rigatti

Yes.

there. pieces two So

recovery just actually We I'll maybe X%. targets, to the clarify. the embed X% in first, don't The growth

file to have and making to commission, file going a but not with a assumption that's We in to the we're great great embedded customary that are absolutely -- application. of We're argument set going the we're X%. going the an X% that to

So that's one thing.

In terms over efficiencies and of and the operational going in time. out

the we're XX% was first year base continue So rate year the effectively, efficiencies. be the that capital, case overall rate we deploying. or course, we definitely last to of of But We the be actually customers. necessary all case the rate want the behalf rates this cycle, pursuing that most we can our will always of of to year, as company, so much represents we're customer whatever capital efficiency increase as going of cycle possible and make do that growth it for on managed

for year then other bunch variances us operational puzzle after in, it. the there things of piece overall in as a every are of a year that's So And year, out, bucket that going of well.

places pull going levers there order So in we're to where efficient outcome. are to most the ensure

year in, So of that it's year we're many operational efficiencies things. just the is rate what in. and question, doing But cycle you of in I it asked, the regardless out, think of year specifically terms

Pedro Pizarro

Yes. Maria, great. that's And

You well. covered it

we consistent decision X% your into the underscore that be have point, a & cost we're very the recovery treatment, from the case that some commission decade only recovery, right, confident at that cost doing included base was the there -- out And flawed SCE very first and the to least But to goes position X%. the about ability not to the GAAP we're merits since of to ago. at case our Just the Diego to Gas San we and merits the level. Electric demonstrate with

that things make beyond we the baked so an into about that that's analysis. something confident is X% all And that X%, haven't to the that even piece extra the us

So our confidence of level that here. you some sense of gives

Julien Dumoulin-Smith

Right. No, indeed.

think you you 'XX? mean be that fit took feed earlier I what In $X.XX wider operational this that? $X.XX what in know benefit You quarter of what talk the that could that about excellence, program? of by organizational talk that uplift? Should a about to just of start into on more does terms in here. the expecting of How extent fact, in charge I of Can these here cadence sort if a the can -- is realignment that I

Pedro Pizarro

so a -- utility, let's can program. thinking he the on here have give in of Steve Powell Julian, about the Steve how color little as CEO the he's come

Steven Powell

Sure. Thanks, Pedro.

employees. noted identified you we what we about our -- the of So thousands looking of we call program, set talked of before, is ideas. changes of and kind we've catalyst bottom-up this we're that And charge related ideas to part at as for the

identified went and go next XXX-plus cetera. to or way. so the execute improvements, teams XX benefits as to going reliability, customers, and ideas through our things affordability, kind Our they're the to months against those as of not et ideas around reap that and plan is help well And are around over just contributing all along but safety, all

We Some there's to as well changes. as improvements But support, and going require that a some we'll operational lead become help metrics. to year-over-year. other drive operating of of process will around investment that that along this, would core of the them things in improvements recurring that's technology efforts our what's operational more efficiencies activity that get continued other with are efficiencies expect

And and able become identify we'll so be as us we this to that going look underneath how get benefit and program our interim better contribute customers much of to a periods could is to earnings. with great next legs for the to in one,

Julien Dumoulin-Smith

So ratable right the here? it sounds through like maybe forecast it's more still

Operator

next Our comes question Ryan Citi. from with Levine

Your line is open.

Ryan Levine

of of could gain scope clarity billion $X.X portion just the there that is file Or would filing? the learn 'XX Of this ballpark look around at be we more in when late point? cost the you recovery, would a potential or to that initial -- shared

Pedro Pizarro

good a Yes. Ryan, question. it's

that on. the recall candid have haven't on, active we might Woolsey do active You going we going settlements that claim amounts. split We've TKM been pretty litigation versus apart really

the in present so think to our of two. And it's combined customers' interest picture I the been

filing? filing really in an color provide the therefore, is at what split time earlier might those you between versus see this So two and can't later we on therefore, what

Ryan Levine

is that of provide of comments Just in not be needs I given around able terms time would a time mean, clarity, claimed? be actually to there to XXX% when necessarily addressed your or you period line,

Pedro Pizarro

that mark, to that Ryan, what making done first by the be of is filing outside the we've expect given we we've you end XXXX.

we a sense little mentioned As have I earlier, a of urgency.

we expect I would can with we as will regulators that filing we're to making go the let And give that that same why where we that we that process for the against settlements the we know application. understand you us the let we're enough color know do earlier, application. So are at can continue time negotiation -- filing that would the as progressed as application, settlements we that if just that. I entire you as -- we we see want the we're market sensitivity just coincidently making

Ryan Levine

billion history. it's remaining And from frame expected claim, $XXX in. there last unchanged Do on came this greater loss good confidence then is is confidence see, Or which you to regarding loss any way versus expected have million number versus remaining given $X.X quarters? the the quarter, level to the previous

Pedro Pizarro

Yes.

Maria, to answer have way. you it may this here. Let me something add

want sure that have being providing we lower. actual make really And And We seem they as to we straight continue change right? and are the that down not we're you could best time. quarter-to-quarter. the sure definitions, the middle could given road to of our so you estimate, GAAP make number best estimate be at disclosed that saw, any you be that higher, We

the of the one $XXX narrower getting consider in we is expected is number, estimate. because always there factor to now uncertainty that I final think that keeps million have that in cone while uncertainty

smaller. amount And the so is remaining just

extent I this smaller want is that, and but that percent thought all number [Indiscernible] the of over potential $X.X that it if disclosures of we lower. best about now disclosed an I uncertainty level an and percent we're the our way, consistent over to That's percent to x with about quarter. therefore, be $XXX know might So or right, million, this uncertainty we to have you haven't had -- billion there do but I level could final reiterate, that is our estimate, say, number higher a can x uncertainty

Operator

last to would like back Ramraj. to was you. Thank question. That over Sam the the now call I turn

Sam Ramraj

there. day conference This concludes for stay the safe call. and us. of you out a the Have joining rest fantastic Thank

now may You disconnect.

Edison International (EIX) 29 Jul 222022 Q2 Earnings call transcript