The paragraph is an introduction to Edison International's third-quarter 2024 financial teleconference. The meeting is led by Sam Ramraj, Vice President of Investor Relations, with presentations by President and CEO Pedro Pizarro, and CFO Maria Rigatti. Supporting materials are available online, including their Form 10-Q and prepared remarks. The discussion will involve forward-looking statements, with actual results potentially differing due to various factors detailed in SEC filings. Pedro Pizarro reports core earnings per share (EPS) of $1.51 for Q3 2024 and $3.88 year-to-date, expressing confidence in narrowing 2024's guidance to a range of $4.80 to $5. He also reaffirms their 2025 EPS goals and expects a 5% to 7% EPS compound annual growth rate through 2028.

The paragraph outlines Southern California Edison's (SCE) progress in navigating regulatory challenges, highlighting key developments. SCE is nearing the end of two major regulatory proceedings, including a settlement agreement in the TKM cost recovery application, expected to recover 60% of costs once approved. This achievement underscores SCE's effective negotiation and resilience in handling external risks. The company has also reaffirmed its commitment to reaching net zero emissions by 2045, a crucial aspect of its climate risk management. Additionally, SCE has initiated the Woolsey cost recovery application, with proceedings anticipated to last 18 months, but outcomes remain uncertain. Overall, these regulatory advances are expected to enhance SCE's financial stability and operational growth.

The paragraph discusses Southern California Edison's (SCE) efforts to manage wildfire risk and navigate the regulatory environment, resulting in multiple applications and positive outcomes in recovering prior spending. SCE expects significant cash flow in the coming years and anticipates key regulatory decisions that will impact financial outlook through 2028. The company is focused on capital investments to support grid reliability and clean energy transition, aiming for a 5% to 7% EPS CAGR with minimal equity needs. SCE also addresses recent regulatory changes in the cost of capital and ROEs, expressing disappointment but confidence in meeting EPS commitments. The paragraph highlights SCE's resilience in managing climate challenges and regulatory processes, emphasizing strong operational and financial performance.

The paragraph highlights Southern California Edison's (SCE) efforts in wildfire mitigation and grid hardening in response to climate challenges. Despite wildfires being a persistent threat in California, exacerbated by climate change, SCE has successfully reduced acres burned in high-risk areas since 2017, mainly due to executing a robust wildfire mitigation plan and increased fire suppression support. The implementation of over 6,100 miles of covered conductor has made 85% of SCE's distribution grid in high fire risk areas more resilient and reliable. As California also benefits from improved state fire support and broader grid hardening actions by other utilities, Edison International remains focused on achieving net zero greenhouse gas emissions by 2045, promoting a safer, cleaner, and more sustainable future for the state.

The article discusses Edison International's commitment to achieving net zero emissions, focusing on delivering 100% carbon-free power to SCE's customers. This involves reducing emissions from power delivery and the supply chain, with a goal to neutralize remaining emissions by 2045 through carbon removal or offsets. The plan highlights the necessity of clean firm generation and retaining natural gas plants as a backup to ensure reliable power supply. The transition to clean electricity across sectors will require significant investment and cooperation. Customers are expected to see a 40% reduction in energy costs by 2045. Maria Rigatti then highlights EIX's strong financial performance, successful cost recovery, and progress in resolving wildfire-related issues.

The paragraph discusses Edison International's (EIX) confidence in meeting its 2025 commitments, and plans to update projections after a decision in Southern California Edison's (SCE) General Rate Case (GRC). The third-quarter results show EIX's core earnings per share (EPS) increased mainly due to higher authorized CPUC revenue and rates of return, although this was partially offset by increased interest expenses related to wildfire claims. Year-to-date EPS is driven by effective operations and maintenance. Capital and rate base forecasts remain consistent with last quarter's disclosure, with major updates anticipated post-2025 GRC decision. SCE plans significant capital investment in enterprise resource planning and advanced metering infrastructure, totaling over $2 billion, alongside more than $2 billion in FERC transmission projects. Regulatory successes have seen SCE recover $4.5 billion since 2021, with a new securitization expected following the approval of the TKM settlement.

The paragraph outlines Southern California Edison's (SCE) financial strategies and updates on resolving legacy wildfire claims. SCE plans to request approval to securitize a $1.6 billion recovery by the end of 2025, which will improve its balance sheet and credit metrics. The regulatory process is expected to be simplified as activities are integrated into SCE's General Rate Cases. SCE is actively working to resolve outstanding claims from the Thomas-Koopman-Mudblow and Woolsey fires, with most of the demands already received. They propose a recovery process for post-application Woolsey claims. The estimated total losses remain consistent, and SCE is on track with its EPS guidance, projecting $4.80 to $5 for 2024. For 2025, they've adjusted rate base EPS following a cost of capital decision and anticipate favorable cost management, O&M reinvestment, and financing benefits.

The paragraph discusses the financial outlook and strategic approach of the company. It highlights that the benefits from the TKM settlement agreement are not yet included in the current forecast, which could positively impact future projections. The paragraph mentions optimism about the moderating interest rate environment and cost recovery from wildfire proceedings, both of which are easing financial pressures. The company's earnings growth is mainly driven by SCE's General Rate Case (GRC), with an anticipated decision from the California Public Utilities Commission (CPUC) expected soon. The company's confidence in achieving its 2025 core EPS guidance of $5.50 to $5.90, along with an earnings growth of 5% to 7% through 2028, is attributed to the strength of its GRC progress and effective business management. The TKM settlement could further boost EPS by $0.44 by 2025 and provide an additional annual benefit of $0.14 beyond that. Finally, the paragraph underscores the importance of financial discipline in achieving these targets and maintaining cost leadership, which is crucial for the clean energy transition.

The paragraph is a discussion during a call between a participant, Michael Lonegan from Evercore ISI, and Pedro Pizarro, regarding Southern California Edison's general rate case and affordability concerns in California. Pizarro explains that the rate trajectory for Southern California Edison aims to align with or be below local inflation from 2024 to 2028. He emphasizes the importance of affordability and mentions that various factors will help offset rate increases, maintaining an around-inflation performance. Beyond 2028, necessary investments for the clean energy transition could maintain rate pressures at inflation levels, but overall energy costs, including electricity, gasoline, and natural gas, are expected to decrease by 40% for the average customer by 2045.

The paragraph discusses the efforts of SCE (Southern California Edison) to address affordability in their energy rate cases. Currently, households spend 7% of their income on energy, which SCE aims to reduce to 3% by 2045. Affordability is a consistent theme across various rate cases, and SCE has already implemented cost-saving measures. Intervenor positions predict a 6% growth rate on the rate base, and a decision on the general rate case is expected early next year. Additionally, SCE is considering adjustments to their capital expenditure plans due to unexpected load growth and is exploring alternative funding options.

The paragraph is a discussion during a financial call involving capital allocation strategies and potential financial adjustments. The speaker mentions that the company can reprioritize capital based on pressing needs and explore various avenues, like the SP410 mechanism, if more capital support is needed beyond the current General Rate Case (GRC) decisions. The conversation shifts to Shar Pourreza from Guggenheim Partners questioning the impact of the TKM settlement on the company's balance sheet flexibility and the possibility of reducing equity instruments used to support wildfire claims. Maria Rigatti responds by emphasizing that maintaining a strong balance sheet might make annual equity issuance unnecessary and mentions the future consideration of hybrids around 2026.

In the paragraph, Maria Rigatti explains that after receiving the final decision on Return on Equity (ROE) for 2025, the company updated its rate base calculations and high-level modeling assumptions. They re-evaluated various business factors, particularly focusing on financing costs and interest rate environments, leading to cost benefits in operational variances and other areas. They also considered the flexibility around the reinvestment rate, noting their ability to adjust operating and maintenance costs to benefit customers. While they're not detailing every financial impact, these adjustments contributed to the positive financial outlook for the quarter. Pedro Pizarro agrees with Maria's explanation.

The paragraph features a discussion between Shar Pourreza, Pedro Pizarro, Maria Rigatti, and Anthony Crowdell regarding business commitments and updates on financial proceedings. Shar acknowledges the company's dedication to achieving its 2025 and 2028 targets. Anthony asks about the timeline for updates on the General Rate Case (GRC) and wildfire proceedings related to TKM and Woolsey. Maria indicates that updates for TKM and GRC are expected in the first half of the year, but Woolsey is in earlier stages, with no prehearing conference until later in the year. She emphasizes keeping expected benefits from settlements or litigation out of financial projections until decisions are finalized. Anthony also mentions investors' concerns about changes in the cost of capital in a three-year mechanism, despite no triggering event.

In the paragraph, Pedro Pizarro addresses investor concerns about the possibility of mid-cycle changes in the cost of capital. He expresses disappointment with a recent decision but emphasizes the importance of considering the overall regulatory environment in California. Pizarro highlights the progress made in improving the regulatory framework over the past five years, particularly in dealing with wildfire-related uncertainties and implementing measures like AB 1054. He reassures investors by noting the constructive actions of the California Public Utilities Commission (CPUC) and the state's commitment to maintaining a robust regulatory framework that ensures the financial health of utilities. While acknowledging potential disagreements with some decisions, he is optimistic about the overall direction and stability provided to investors.

The paragraph discusses the ongoing capital proceedings expected for 2026 to 2028, emphasizing the need for maintaining the California premium, a concept supported over the past decades. The speaker anticipates constructive regulation from the ongoing general rate case decision and highlights positive outcomes from the TKM settlement with advocates. The conversation transitions to a sports analogy, with a nod to New York and a "Go Dodgers" remark. Steven Fleishman from Wolfe Research asks about the timing and potential resolution of issues in the General Rate Case (GRC), referencing the timelines of PG&E and Sempra's cases. Maria Rigatti responds that the process is on schedule, with all documents and written briefs submitted, and they are now awaiting a proposed decision from the Administrative Law Judge (ALJ).

The paragraph discusses the expected timeline and current status of decision-making regarding various settlements and cases, aiming for resolutions by the first half of the next year. The completion of additional settlements has streamlined remaining issues. There is also mention of filing for the cost of capital for the next three years in March, with a decision expected by the end of the year, allowing them to understand the financial framework entering the new three-year cycle. The filing will emphasize both quantitative and qualitative aspects and highlight the unique California premium due to the distinct work of California's IOUs compared to other areas.

The paragraph features a discussion during a financial earnings call. Initially, it touches upon the company's strategy for achieving a 5% to 7% compound annual growth rate through 2028, regardless of the varying return on equity (ROE) environments. Ryan Levine from Citi then asks about changes to the nuclear decommissioning trust estimate, which has increased to $2.3 billion for Edison. Maria Rigatti explains that this change arises from the regular update process every three years, considering factors like federal government activities related to spent fuel removal. She assures that the decommissioning trust is well-funded and won't impact the financing plan. Additionally, Rigatti discusses considerations for managing financial plans through 2025, related to the cost of capital benefits and rate case outcomes.

Over the past four years, the company has effectively managed through various interest rate environments and performed better than expected from a portfolio perspective. As they look ahead to the next year, they don't anticipate much financing needed for 2025 and feel confident in managing it through market timing and positive market expectations. They constantly evaluate their reinvestment strategies, considering the timing and amount for projects like inspections and maintenance. They aim to potentially accelerate some investments into 2024, such as telecom enhancements, to create financial flexibility. Ryan Levine ends the segment by introducing questions from Gregg Orrill from UBS, who inquires about the Generation enterprise resource planning system and the role of gas in California. Pedro Pizarro directs the ERP question to Steve Powell, who notes that the NextGen ERP program is in the solution analysis phase.

The paragraph discusses the organization's efforts to upgrade its ERP system as it approaches the end of life. They aim to redesign it for future implementation, focusing on work management and supply chain processes. Additionally, Pedro Pizarro highlights the importance of achieving net-zero emissions in California, recognizing the need for clean firm generation resources such as geothermal, nuclear, and gas with carbon capture. These resources offer significant emissions reduction compared to solar paired with storage. However, they face challenges in technological development and regulatory hurdles, despite being crucial for a balanced and sustainable energy system.

The paragraph discusses the uncertainty regarding steel infrastructure development between now and 2045, highlighting the importance of existing natural gas generation in California as a backup during potential delays in technology deployment and other challenges. By 2045, the expectation is that only 4% to 5% of electricity will come from gas resources. In a broader financial context, Nicholas Campanella from Barclays asks about earnings projections for 2025 and 2026, specifically regarding a $0.14 increase and growth expectations. Maria Rigatti confirms that the $0.14 is a run rate, noting it should add to projections for 2026 but might not apply fully in 2025, depending on when decisions are finalized.

In the paragraph, Nicholas Campanella questions Pedro Pizarro about the potential differences in recovery outcomes between the Woolsey fire case and the TKM case, both involving Edison. Pizarro explains that the two cases are distinct and that recovery outcomes can't be directly compared. In TKM, there were two ignition sources, one of which involved Edison equipment. In contrast, Woolsey had a single ignition point linked to Edison infrastructure. Pizarro emphasizes that each fire is unique and case-specific factors must be considered when assessing outcomes.

The paragraph is a discussion among financial analysts and company executives regarding Edison’s transmission capital expenditure plans. Rich Sunderland, filling in for Jeremy Tonet from JPMorgan, inquires about the inclusion of $2 billion for FERC transmission and another $2 billion for CPUC jurisdictional applications in the company’s future financial plans. Maria Rigatti explains that these are not yet included in the base plan as they are still finalizing details, with most spending expected post-2028. Steve Powell elaborates that Edison has been awarded over $2 billion worth of projects in the 2022-2023 CISO transmission plan, with major spending occurring after 2028, and mentions a competitive project in collaboration with Lotus Infrastructure partners, set for 2032 completion.

The paragraph discusses the timeline and expectations surrounding the Woolsey process, emphasizing the potential for a settlement. Maria Rigatti provides an overview of the proposed schedule, with a notable date on November 12 for protests and responses from interveners, followed by a prehearing conference in early December. The scoping memo from the ALJ (Administrative Law Judge) will provide a definitive schedule and indicate whether time will be set aside for a settlement conference, similar to the TKM process, which follows an approximately 18-month schedule.

The paragraph involves a discussion about regulatory processes and capital expenditure plans related to ERP and AMI filings, with CapEx expected over the next four years and spending extending beyond 2028 for certain projects like metering. The regulatory process is estimated to take about 18 months. Following this, Angie Storozynski from Seaport asks about the impact of potential demand-driven electricity price increases in California on CapEx and growth plans, specifically questioning the influence of hyperscale data centers and other growth opportunities on these plans. She also references a previous comment about the potential decrease in costs for non-electric energy sources for end users.

In the paragraph, Pedro Pizarro addresses a question about customer perception of rising electric bills and offsets. He explains that data center growth, particularly those used for AI purposes, is occurring in Southern California, contributing to energy demand. Despite existing large data centers, the increase isn't as dramatic as in other states. He also discusses a 40% reduction in total energy costs, largely attributed to replacing less efficient gas appliances and gasoline vehicles with more efficient electric alternatives, which are more energy-efficient.

The paragraph discusses the importance of educating consumers about the benefits and changes associated with switching to electrified appliances and vehicles. While those who have switched notice efficiency gains and reduced natural gas bills, they often see higher electricity bills without correlating savings in other areas. The challenge is to educate consumers about these changes before and after switching, as many do not view their utility costs holistically. The speaker emphasizes the need for better consumer education and collaboration among utilities and commissions to help consumers understand and manage their energy costs effectively.

The paragraph discusses the impact of potential increases in electricity prices on growth plans in California, particularly in the context of the state's commitment to achieving net zero emissions by 2045. Agnie Storozynski questions whether growth plans are sensitive to rising electric prices. Pedro Pizarro responds, suggesting that while there may be fluctuations due to factors like gas prices, energy prices, incentives, and rate structures, the state's commitment to net zero remains firm. He emphasizes that despite potential variations, the focus on electrifying the economy is seen as the most affordable and reliable path to achieving net zero, whether it happens by 2045 or slightly earlier or later.

The paragraph concludes a conference call, with acknowledgments from Pedro Pizarro for the strategic questions posed by Agnie Storozynski. The operator notes that all questions have been addressed and hands over to Sam Ramraj for final remarks. Sam Ramraj thanks the participants and signals the end of the call, inviting attendees to disconnect.

This summary was generated with AI and may contain some inaccuracies.