Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss your confidence level that there won't be another revision higher in the charge as we approach the third quarter and resolve the remaining $800 million in claims?
A: Pedro J. Pizarro, President and CEO of Edison International, emphasized the company's commitment to providing the best estimates and noted the importance of moving through the process quickly to achieve final certainty. He highlighted that every quarter the estimates are re-evaluated, suggesting that future adjustments could go either way but stressed the focus on completing the process.
Q: With the balance sheet impacts in mind, particularly the commitment to only $100 million of equity a year, how do the recent charges affect your financial metrics, especially the FFO to debt ratio?
A: Maria C. Rigatti, Executive VP & CFO, mentioned that the latest S&P report places them just over 14% FFO to debt, within the desired range. She explained that the financing plan is designed to move into the 15% to 17% FFO to debt range over the next few years, driven by claims resolution and regulatory asset recovery.
Q: Can you provide more details on the visibility into the best estimate of losses for Woolsey, considering the limited number of plaintiffs that have received extensions?
A: Maria C. Rigatti explained that the process involves analyzing the information submitted by plaintiffs, some of whom received extensions. The company uses its experience with a broad range of claims to evaluate these, and more information will be available as plaintiffs meet their deadlines in the coming months.
Q: What are the timelines for filing stand-alone applications for the NextGen ERP and AMI 2.0 programs, and what might be the incremental equity needed to finance these?
A: Maria C. Rigatti expects the NextGen ERP application to be filed in late 2024 and the AMI application in 2025. She noted that financing for these projects would adhere to the authorized capital structure, and the company's strong credit metrics might minimize the need for additional equity.
Q: Are there any trends or updates in transmission CapEx through the Cal ISO planning process that we should be aware of?
A: Pedro J. Pizarro mentioned that the Cal ISO's long-term planning process indicates a significant need for investment in transmission to meet the state's net zero goals by 2045. He highlighted SCE's entitlement to build several projects and its participation in competitive solicitations for new projects.
Q: With summer approaching, can you update us on the wildfire conditions across your territory and your expectations for the season?
A: Pedro J. Pizarro pointed out that while the immediate wildfire risk appears average or below average, the long-term trend due to climate change suggests an increase in wildfire risk. He emphasized the significant risk reduction achieved through grid hardening and other measures, suggesting that the focus should be on these ongoing efforts rather than seasonal variations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
