The paragraph introduces the Edison International First Quarter 2025 Financial Teleconference. Sam Ramraj, the Vice President of Investor Relations, opens the call and identifies the speakers, including President and CEO Pedro Pizarro and CFO Maria Rigatti. The call features forward-looking statements and references to materials available on the Edison investor website. The importance of reviewing SEC filings for potential risks is emphasized. During the call, participants are asked to limit their questions. Pedro Pizarro expresses sympathy for those affected by recent wildfires and mentions the company's collaboration with leaders in Altadena and Malibu to rebuild affected areas.

Edison International reported an increase in core earnings per share to $1.37 from $1.13, though this comparison is less significant due to pending decisions on the 2025 General Rate Case. The company expects to meet its 2025 EPS guidance and achieve a 5-7% core EPS CAGR through 2028. They have submitted a plan to Governor Newsom for rebuilding electrical infrastructure affected by the Palisades and Eaton Fires, which includes undergrounding over 150 circuit miles in High Fire Risk Areas to improve reliability and resilience. Investigations into the Eaton Fire are ongoing, with SCE conducting inspections and removing idle facilities for further analysis, although no definitive cause for the fire has been determined yet.

The paragraph discusses Southern California Edison's (SCE) belief that its equipment may be linked to the Eaton Fire, suggesting potential material losses for Edison International (EIX) and SCE. The company emphasizes transparency and addresses misinformation through a new website page. SCE maintains confidence in their responsible operation and is engaging with lawmakers to enhance California's regulatory framework regarding wildfires. The California Public Utilities Commission (CPUC) recently approved the TKM settlement, reflecting a positive regulatory environment.

The paragraph discusses Southern California Edison's (SCE) ongoing legal and administrative proceedings related to the Woolsey cost recovery and its 2025 General Rate Case (GRC). It outlines the timelines for upcoming filings, including intervenor testimony and potential settlement discussions. The GRC is expected to see a proposed decision in the first half of the year, supporting SCE’s aims for reliable electric service and wildfire mitigation. SCE’s investment plans include substantial annual capital spending on wildfire prevention and infrastructure upgrades. Additionally, SCE will submit its 2026 Wildfire Mitigation Plan, emphasizing risk mitigation, public safety, and affordability, in May.

The utility is implementing an integrated wildfire mitigation strategy focusing on grid hardening, asset inspections, and vegetation management. The speaker acknowledges the retirement of Vanessa Chang from the Board of Directors after 18 years of service and Adam Umanoff, the former general counsel, who will retire in July, praising both for their contributions. The new general counsel, Chonda Nwamu, is welcomed for her expertise, especially in California’s legal and regulatory framework. Maria Rigatti then takes over to discuss financial matters, noting first-quarter 2025 results and emphasizing that year-over-year comparisons are not very meaningful due to pending decisions in SCE's 2025 General Rate Case.

Southern California Edison (SCE) is aligning its revenue bookings with 2024 authorized levels pending a final decision, and anticipates a financial true-up. The first quarter core earnings per share include $0.30 from a TKM settlement, offset by increased interest expenses. In regulatory matters, SCE made progress in several areas: reaching a settlement in its wildfire mitigation proceeding, awaiting CPUC approval, which would add to 2025 earnings guidance; filing a 2026 cost of capital application with an 11.75% ROE request; and submitting a NextGen ERP application seeking $1.1 billion in capital investment. The utility plans to request authorization for issuing securitized bonds following the approval of a $1.6 billion TKM cost recovery settlement.

The paragraph discusses Southern California Edison's (SCE) General Rate Case (GRC) and strategic plans through 2028. SCE aims to improve reliability, resiliency, and readiness while updating projections after a GRC decision. The utility focuses on capital expenditure and rate base forecasts, with plans for significant transmission spending and infrastructure updates, including replacing outdated smart meters to enhance grid efficiency. SCE also highlights recent financing activities, including issuing $550 million in senior notes and $1.5 billion in long-term debt, both of which received strong investor interest.

The paragraph discusses the company's financial outlook, specifically their EPS (Earnings Per Share) guidance. They are confident in their 2025 EPS range of $5.94 to $6.34 and expect a 5-7% EPS growth from 2025 to 2028, translating to $6.74 to $7.14 EPS in 2028. They emphasize strong regulatory support, robust rate base growth, and the need for significant grid investment to achieve near and long-term growth expectations. The remarks conclude, and the call opens for questions, with Nick Campanella from Barclays asking about material loss disclosure and potential liabilities related to a recent fire. Sam Ramraj responds, acknowledging the ongoing investigation and recovery process.

The paragraph discusses the uncertainty surrounding the cause and liability of a fire, with Pedro Pizarro noting that while their equipment might have been involved, no conclusive evidence or alternative hypothesis has been found. As such, they have disclosed the event as probable, but liability remains unestimable. Pedro mentions third-party estimates exist, but they're too early to rely on. Maria Rigatti agrees with Pedro's points and discusses potential financial considerations, highlighting that they now have access to a wildfire fund unlike during previous incidents.

The paragraph discusses a financial strategy involving a $1 billion customer-funded self-insurance to pay claims initially, reducing the need for issuing debt as previously done for TCAM and Woolsey incidents. This approach benefits both the financing plan and provides protection for affected communities. The speaker mentions updating their financing plan based on typical activities like their capital plan, and intends to communicate this after receiving the GRC final decision. During a call, Michael Lonegan asks about wildfire legislation in California and its potential to provide financial certainty. Pedro Pizarro responds, stating the governor's office and legislative leaders are actively engaged in addressing the complex issue, although discussions are still in early stages.

The paragraph discusses the confidence in the understanding and action towards expanding the AB 1054 framework, acknowledging the need for diligence and engagement from legislative leaders and the governor's office. There is hope for constructive engagement, though no guarantees are given. Michael Lonegan inquires about updates to the Moody's risk management model, which reported an 88% reduction in wildfire probability primarily focused on distribution assets. Pedro Pizarro and Steve Powell elaborate that the model is comprehensive and covers various risk areas, noting that while historical ignitions stemmed from distribution, transmission is also considered. They emphasize that grid hardening and other mitigations drive risk reduction, and they continue evaluating different models to enhance understanding and management of wildfire risks.

The paragraph discusses measures taken to reduce the risk of wildfires associated with electrical equipment. The speaker mentions ongoing efforts to maintain idle lines, which are kept for potential future use, and how these lines are inspected and maintained regularly. Recent experiences have led to updates in the wildfire mitigation plans, including enhancements in the transmission operations manual to clarify procedures for grounding idle lines. This example highlights the continuous improvement approach to strengthening systems and reducing risks.

The paragraph discusses a conversation between Maria Rigatti, Carly Davenport, and an unidentified analyst about the company's exposure to tariff risks and its capital plan. Rigatti mentions that about 5% of their purchases are foreign materials, equating to roughly $125 million annually. The impact on customers will be mitigated since the costs are related to long-term capital investments. The focus then shifts to the SCE rate case, where the unidentified analyst asks if the shifting deadline will affect the new rates or capital expenditures. Rigatti responds, explaining the capital plan is tied to a four-year general rate case cycle.

The paragraph discusses the company's approach to executing its capital plan and managing rates in connection with its general rate case (GRC) decision. The plan includes the possibility of adjusting spending over the next few years post-decision. It highlights that current rates are based on 2024 revenue requirements, and any changes will be amortized over time. The company expects its rates to align with local inflation, even after considering additional capital deployments and recovery efforts. An analyst inquires about financing for incremental capital expenditures. Maria Rigatti explains that financing typically aligns with the authorized capital structure, primarily through debt rather than equity, and that the company has a well-defined financing plan through 2028, which will be updated upon receiving the final GRC decision.

In the paragraph, an analyst, Paul Zimbardo, inquires about Eaton’s disclosures regarding a potential material loss related to wildfires, questioning if a reimbursement to the wildfire fund is expected. Maria Rigatti explains that the accounting approach separates the liability from any recovery, recording receivables from insurance and the wildfire fund independently. She clarifies that this does not signal imprudence or the need to refund the fund. Based on current information, SCE believes it can demonstrate prudence in its actions. Pedro Pizarro emphasizes that while a material loss is now deemed probable, SCE still believes it has operated its system reasonably.

The paragraph is a discussion about the potential legal and settlement strategies related to a fire that might be connected to Edison. Pedro Pizarro explains that determining the cause of the fire and the subsequent actions depend on case-specific factors, making it hard to predict timing based on previous experiences. He mentions it can take 12 to 18 months to get formal investigation materials from fire authorities, but beyond that, it's challenging to estimate when decisions or settlements might occur. Richard Sunderland from JPMorgan asks for any updates on the investigation's timing, but Pizarro confirms that they still can't provide an exact estimate.

In the paragraph, Richard Sunderland inquires if any third-party sources of ignition have been ruled out for the material losses disclosed. Pedro Pizarro responds by saying there is currently no conclusive evidence pointing to another ignition source, although they are open to new information. This uncertainty influenced their decision to change their designation to probable. Gregg Orrill from UBS then asks whether certain types of lawsuits would make claims unrecoverable by the wildfire fund. Maria Rigatti assures him that the wildfire fund is available for damage claims, emphasizing that they have a safety certificate and liability cap, and there are no limitations on the type of claims covered by the fund. She also addresses a question about interest expense for the quarter.

In the paragraph, the discussion focuses on legislative efforts related to AB 1054 in Sacramento. Pedro Pizarro mentions that it's still early in the process, with many legislators being relatively new to the issue since the 2019 period. While various ideas are being discussed, it's too soon to dive into specifics. The priority is to educate policymakers on maintaining community safety at the lowest cost to customers, highlighting how shareholder actions can impact debt costs, credit ratings, and ultimately, customer costs.

In this discussion, David Arcaro from JPMorgan Stanley inquires about the impact of potential losses on the balance sheet and regulatory considerations. Maria Rigatti explains that while losses would appear on the balance sheet, they would be offset by receivables or regulatory assets, ensuring no earnings impact and keeping the balance sheet balanced. This approach satisfies regulatory capital requirements and addresses rating agency concerns. David Arcaro confirms his understanding that there is no cash flow impact due to access to the fund. He also seeks clarification from Pedro Pizarro regarding third-party estimates of damages, to which Pizarro responds that while various estimates exist, they don't collectively reach the $21 billion mark, and there are different types of losses being discussed.

The paragraph discusses the uncertainty surrounding the potential impact of a large fire on a fund if it is linked to Edison infrastructure. It emphasizes that it's too soon to estimate the financial implications, though some estimates seem to fall within expected limits. The conversation then shifts to addressing changes in the wildfire mitigation plan post-January events. Pedro Pizarro acknowledges that the plan is continually evolving, with a focus on grid hardening programs, like cover conductors and undergrounding, especially in burn scar areas to rebuild stronger. Steve Powell supports this, noting increased undergrounding efforts in devastated areas.

The paragraph discusses the evaluation of inspection and vegetation management programs to address emerging wildfire risks, with a focus on learning from past fires and aggressively implementing wildfire mitigation plans. Ryan Levine inquires about the timeline for accessing a wildfire fund. Maria Rigatti explains that it's too early to determine this as they are still in the investigation phase and would need to go through a settlement process. She mentions that any claims would first use $1 billion of customer-funded self-insurance before accessing the wildfire fund, which has a streamlined process for reimbursement. The conference call concludes with Sam Ramraj thanking participants.

The paragraph indicates that the conference has concluded and participants are free to disconnect. It also wishes them a good rest of their day.

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