Q4 2025 Edison International Earnings Call

February 18, 2026

Speaker #1: It will be your operator today. When we get to the question-and-answer session, if you have a question, press star 1 on your phone. Today's call is being recorded.

Speaker #1: I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations, Mr. Ramraj, you may begin your conference.

Speaker #2: Good afternoon and welcome to the Edison International Fourth Quarter 2025 Financial Teleconference. My name is Michelle, and I will be your operator today. When we get to the question and answer session, if you have a question, please press star one on your phone.

Operator: Good afternoon, and welcome to the Edison International Fourth Quarter 2025 financial teleconference. My name is Michelle, and I will be your operator today. When we get to the question-and-answer session, if you have a question, press star one on your phone. Today's call is being recorded. I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. Ramraj, you may begin your conference.

Speaker #2: 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.

Speaker #2: Today's call is being recorded. I would now like to turn the call over to Mr. Sam Ramraj, Vice President of Investor Relations. Mr. Ramraj, you may begin your conference.

Speaker #2: Also on the call are other members of the management team. Material supporting today's call are available at www.edisoninvestor.com. These include a Form 10-K, prepared remarks from Pedro and Maria, and the teleconference presentation.

Speaker #3: 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.

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 a Form 10-K, prepared remarks from Pedro and Maria, and the teleconference presentation. Tomorrow, we will distribute our regular business update presentation. During this call, we'll make forward-looking statements about the outlook for Edison International and its subsidiaries. Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings. Please read these carefully. The presentation includes certain outlook assumptions as well as reconciliation of non-GAAP measures to the nearest GAAP measure. During the question-and-answer session, please limit yourself to one question and one follow-up.

Speaker #2: Tomorrow we will distribute a regular business update presentation. During this call we'll make forward-looking statements about the outlook for Edison International and its subsidiaries.

Speaker #3: Also on the call are other members of the management team. Material supporting today's call is available at www.edisoninvestor.com. These include a Form 10-K, prepared remarks from Pedro and Maria, and the teleconference presentation.

Speaker #2: Actual results could refer defer materially from current expectations, important factors that could cause different results are set forth in our SEC filings; please read these carefully.

Speaker #3: Tomorrow, we will distribute a regular business update presentation. During this call, we'll make forward-looking statements about the outlook for Edison International and its subsidiaries.

Speaker #2: The presentation includes certain outlook assumptions as well as reconciliation of non-gap measures to the nearest gap measure. During the question-and-answer session, please limit yourself to one question and one follow-up.

Speaker #3: Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings; please read these carefully.

Speaker #2: I will now turn the call over to Pedro.

Speaker #3: Oh, thanks a lot, Sam, and good afternoon everyone. Edison International's 2025 core earnings per share of $6.55 was above our guidance range, and that extends our two-decade track record of meeting or exceeding annual EPS guidance.

Speaker #3: The presentation includes certain outlook assumptions as well as a reconciliation of non-GAAP measures to the nearest GAAP measure. During the question-and-answer session, please limit yourself to one question and one follow-up.

Speaker #3: Importantly, this also marks the successful delivery of the long-term core EPS growth target that we established in 2021. Our performance reflects disciplined execution across the enterprise and continued focus on cost management, operational performance, and capital efficiency.

Speaker #3: I will now turn the call over to Pedro.

Sam Ramraj: I will now turn the call over to Pedro.

Speaker #4: Oh, thanks a lot, Sam, and good afternoon, everyone. Edison International's 2025 core earnings per share of $6.55 was above our guidance range, and that extends our two-decade track record of meeting or exceeding annual EPS guidance.

Pedro Pizarro: Well, thanks a lot, Sam, and good afternoon, everyone. Edison International's 2025 core earnings per share of $6.55 was above our guidance range. That extends our 2-decade track record of meeting or exceeding annual EPS guidance. Importantly, this also marks the successful delivery of the long-term core EPS growth target that we established in 2021. Our performance reflects disciplined execution across the enterprise and continued focus on cost management, operational performance, and capital efficiency. Maria will provide more details in her remarks. Today, I'll focus on three themes: our commitments to customers, communities, and investors, our strength in regulatory visibility, and our confidence in our multi-year plan. Starting with the first theme, we are committed to the customers and communities who count on safe, reliable, and increasingly clean energy.

Speaker #3: Maria will provide more details in her remarks. Today I'll focus on three themes: our commitments to customers, communities, and investors; our strengthened regulatory visibility; and our confidence in our multi-year plan.

Speaker #4: Importantly, this also marks the successful delivery of the long-term core EPS growth target that we established in 2021. Our performance reflects disciplined execution across the enterprise and continued focus on cost management, operational performance, and capital efficiency.

Speaker #3: Starting with the first theme, we are committed to the customers and communities who count on safe, reliable, and increasingly clean energy. Safety remains our top value, and SEE continues to carry out extensive work to strengthen the electric system and reduce wildfire risk.

Speaker #4: Maria will provide more details in her remarks. Today, I'll focus on three themes: our commitments to customers, communities, and investors; our strengthened regulatory visibility; and our confidence in our multi-year plan.

Speaker #3: We are proud that in the Q4 2025 residential customer engagement survey by Escalant, SEE had the highest absolute brand trust score among the large California investor on utilities.

Speaker #4: Starting with the first theme, we are committed to the customers and communities who count on safe, reliable, and increasingly clean energy. Safety remains our top value, and SEE continues to carry out extensive work to strengthen the electric system and reduce wildfire risk.

Speaker #3: Customers and public trust remain the core of SEE's mission. The utility has now installed more than 7,000 miles of covered conductor in high-fire risk areas, representing over 90% of its planned grid hardening effort.

Pedro Pizarro: Safety remains our top value, and SCE continues to carry out extensive work to strengthen the electric system and reduce wildfire risk. We are proud that in the Q4 2025 Residential Customer Engagement Survey by Escalant, SCE had the highest absolute brand trust score among the large California investor-owned utilities. Customers and public trust remain the core of SCE's mission. The utility has now installed more than 7,000 miles of covered conductor in high fire risk areas, representing over 90% of its planned grid hardening effort. This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve. SCE now has fast curve settings on 93% of its distribution circuits in high fire risk areas, a prime example of how it is using technology to reduce risk by detecting and addressing faults even more quickly.

Speaker #4: We are proud that in the Q4 2025 residential customer engagement survey by Escalant, SEE had the highest absolute brand trust score among the large California investor-owned utilities.

Speaker #3: This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve. SEE now has fast curve settings on 93% of its distribution circuits in high-fire risk areas, a prime example of how it is using technology to reduce risk by detecting and addressing faults even more quickly.

Speaker #4: Customers and public trust remain the core of SEE's mission. The utility has now installed more than 7,000 miles of covered conductor in high-fire-risk areas, representing over 90% of its planned grid hardening effort.

Speaker #3: All of this work demonstrates SEE's ongoing wildfire risk reduction leadership. This progress benefits not just the utility's own customers and communities who fund this critical work, but also many peers across the nation.

Speaker #4: This work continues to play a critical role in reducing ignition risk and strengthening reliability for the communities we serve. SCE now has fast curve settings on 93% of its distribution circuits in high-fire risk areas, a prime example of how it is using technology to reduce risk by detecting and addressing faults even more quickly.

Speaker #3: Safety and affordability remain at the core of our commitment to customers. Earlier this year, SEE announced a $2.3% rate decrease for residential customers and a $5.3% decrease for small and medium-sized business customers.

Speaker #4: All of this work demonstrates SEE's ongoing wildfire risk reduction leadership. This progress benefits not just the utility's own customers and communities who fund this critical work, but also many peers across the nation.

Pedro Pizarro: All of this work demonstrates SCE's ongoing wildfire risk reduction leadership. This progress benefits not just the utility's own customers and communities who fund this critical work, but also many peers across the nation. Safety and affordability remain at the core of our commitment to customers. Earlier this year, SCE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized business customers. This is starting from a place of having the lowest system average rate by a margin of 20% among California's major investor-owned utilities. SCE has invested more than $12 billion for customer safety and reliability over the last two years. Currently, a typical non-care residential customer pays about $188 per month, which is modestly higher than the $180 paid two years ago.

Speaker #3: This is starting from a place of having the lowest system average rate by a margin of 20% among California's major investor on utilities. SEE has invested more than $12 billion for customer safety and reliability over the last two years.

Speaker #4: Safety and affordability remain at the core of our commitment to customers. Earlier this year, SEE announced a 2.3% rate decrease for residential customers and a 5.3% decrease for small and medium-sized business customers.

Speaker #3: Currently, a typical non-care residential customer pays about $188 per month, which is modestly higher than the $180 paid two years ago. This reflects the utility's disciplined cost management to support customer affordability.

Speaker #4: This is starting from a place of having the lowest system average rate by a margin of 20% among California's major investor-owned utilities. SCE has invested more than $12 billion for customer safety and reliability over the last two years.

Speaker #3: We will continue to work to keep rates affordable for customers. We are also committed to the investors whose capital makes it possible to build the infrastructure that is essential to deliver safe, reliable, affordable electricity.

Speaker #4: Currently, a typical non-care residential customer pays about $188 per month, which is modestly higher than the $180 paid two years ago. This reflects the utility's disciplined cost management to support customer affordability.

Speaker #3: Our commitment begins with a regulatory framework that enables SEE to consistently earn its authorized returns, which supports a strong investment-grade balance sheet and lower financing costs for customers.

Pedro Pizarro: This reflects the utility's disciplined cost management to support customer affordability. We will continue to work to keep rates affordable for customers. We are also committed to the investors whose capital makes it possible to build the infrastructure that is essential to deliver safe, reliable, affordable electricity. Our commitment begins with a regulatory framework that enables SCE to consistently earn its authorized returns, which supports a strong investment-grade balance sheet and lower financing costs for customers. Our capital contributors, including pension funds, mutual funds, and insurers, depend on stable, transparent, long-term performance. Credit rating agencies continue to evaluate California's specific risk factors, underscoring the importance of maintaining a durable and predictable regulatory environment that provides confidence for long-term investment and protects customers from higher costs.

Speaker #4: We will continue to work to keep rates affordable for customers. We are also committed to the investors, whose capital makes it possible to build the infrastructure that is essential to deliver safe, reliable, affordable electricity.

Speaker #3: Our capital contributors, including pension funds, mutual funds, and insurers, depend on stable, transparent, long-term performance. Credit rating agencies continue to evaluate California-specific risk factors.

Speaker #4: Our commitment begins with a regulatory framework that enables SEE to consistently earn its authorized returns, which supports a strong investment-grade balance sheet and lower financing costs for customers.

Speaker #3: Underscoring the importance of maintaining a durable and predictable regulatory environment that provides confidence for long-term investment and protects customers from higher costs. To that end, we are actively engaging with policymakers and state leaders to reinforce the value of a stable framework and the SB 254 process will be a central venue in 2026 for strengthening the regulatory durability that supports both capital contributors and customers.

Speaker #4: Our capital contributors, including pension funds, mutual funds, and insurers, depend on stable, transparent, long-term performance. Credit rating agencies continue to evaluate California-specific risk factors.

Speaker #4: Underscoring the importance of maintaining a durable and predictable regulatory environment that provides confidence for long-term investment and protects customers from higher costs. To that end, we are actively engaging with policymakers and state leaders to reinforce the value of a stable framework, and the SB 254 process will be a central venue in 2026 for strengthening the regulatory durability that supports both capital contributors and customers.

Speaker #3: SEE remains committed to resolving wildfire-related claims fairly, prudently, and responsibly. To date, more than 2,300 claims have been submitted under the wildfire recovery compensation program, with associated payments underway.

Pedro Pizarro: To that end, we are actively engaging with policymakers and state leaders to reinforce the value of a stable framework, and the SB 254 process will be a central venue in 2026 for strengthening the regulatory durability that supports both capital contributors and customers. SCE remains committed to resolving wildfire-related claims fairly, prudently, and responsibly. To date, more than 2,300 claims have been submitted under the Wildfire Recovery Compensation Program, with associated payments underway. As always, we are guided by our commitment to transparency, accountability, and customer trust. Building upon this, today, SCE announced enhancements to the program, providing stronger support for displaced renters and increasing coverage for legal expenses. Regarding the Eaton fire, as you see on page four, the investigations remain ongoing.

Speaker #3: As always, we are guided by our commitment to transparency, accountability, and customer trust. Building upon this, today SEE announced enhancements to the program, providing stronger support for displaced renters and increasing coverage for legal expenses.

Speaker #4: SEE remains committed to resolving wildfire-related claims fairly, prudently, and responsibly. To date, more than 2,300 claims have been submitted under the wildfire recovery compensation program, with associated payments underway.

Speaker #3: Regarding the Eaton Fire, as you see on page 4, the investigations remain ongoing. To recap our prior statements, while SEE has not conclusively determined that its equipment cost the ignition of the Eaton Fire, a viable explanation is that the energized idle SEE transmission facility in the preliminary area of origin was associated with the ignition of the fire.

Speaker #4: As always, we are guided by our commitment to transparency, accountability, and customer trust. Building upon this, today, SEE announced enhancements to the program, providing stronger support for displaced renters and increasing coverage for legal expenses.

Speaker #4: Regarding the Eaton Fire, as you see on page 4, the investigations remain ongoing. To recap our prior statements, while SEE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, a viable explanation is that the energized idle SEE transmission facility in the preliminary area of origin was associated with the ignition of the fire.

Speaker #3: And SEE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SEE believes that it is likely that its equipment could have been associated with the ignition of the Eaton Fire.

Pedro Pizarro: To recap our prior statements, while SCE has not conclusively determined that its equipment caused the ignition of the Eaton fire, a viable explanation is that a de-energized idle SCE transmission facility in the preliminary area of origin was associated with the ignition of the fire, and SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment could have been associated with the ignition of the Eaton fire. Given the complexities associated with estimating damages, we currently are unable to reasonably estimate a range of potential losses. Nonetheless, based on the information we have reviewed thus far, we remain confident that SCE will be able to make a good-faith showing that its conduct with respect to its transmission facilities in the Eaton Canyon area was consistent with actions of a reasonable utility.

Speaker #3: Given the complexities associated with estimating damages, we currently are unable to reasonably estimate a range of potential losses.

Speaker #4: And SEE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SEE believes that it is likely that its equipment could have been associated with the ignition of the Eaton Fire.

Speaker #1: Nonetheless , based on the information we have reviewed thus far , we remain confident that TSS will be able to make a good faith , showing that its conduct with respect to its transmission facilities in the Eaton Canyon area was consistent with actions of a reasonable utility The company continues to prioritize a recovery of impacted community members .

Speaker #4: Given the complexities associated with estimating damages, we currently are unable to reasonably estimate a range of potential losses. Nonetheless, based on the information we have reviewed thus far, we remain confident that SEE will be able to make a good faith showing that its conduct with respect to its transmission facilities in the Eaton Canyon area was consistent with actions of a reasonable utility.

Speaker #1: Edison International is donating $2 million to the Pasadena Community Foundation to help meet the needs of community members in the Altadena area , recovering from the Eaton Fire My second theme today is Our strengthened regulatory visibility .

Speaker #1: Given 2025 was a significant regulatory year for SE , which you see on page five with the GRC cost of capital proceeding , and we'll see settlement agreements and other wildfire proceedings concluded .

Speaker #4: The company continues to prioritize a recovery of impacted community members. Edison International is donating $2 million to the Pasadena Community Foundation to help meet the needs of community members in the Altadena area recovering from the Eaton Fire.

Pedro Pizarro: The company continues to prioritize the recovery of impacted community members. Edison International is donating $2 million to the Pasadena Community Foundation to help meet the needs of community members in the Altadena area recovering from the Eaton fire. My second theme today is our strengthened regulatory visibility, given 2025 was a significant regulatory year for SCE, which you see on page 5. With the GRC cost of capital proceeding, TKM and Woolsey settlement agreements, and other wildfire proceedings concluded, SCE enters 2026 with substantially greater clarity into capital plans, revenue requirement, and operational priorities, not only for the GRC period, but into the next decade. Our team members across Edison International and SCE continue to demonstrate their ability to execute through complexity, respond to evolving conditions, and stay focused on long-term goals.

Speaker #1: SE enters 2026 with substantially greater clarity into capital plans . Revenue requirement and operational priorities . Not only for the GRC period , but into the next decade .

Speaker #4: My second theme today is our strengthened regulatory visibility, given 2025 was a significant regulatory year for SEE, which you see on page 5. With the GRC, cost of capital proceeding, TKM and Woolsey settlement agreements, and other wildfire proceedings concluded, SEE enters 2026 with substantially greater clarity into capital plans, revenue requirement, and operational priorities—not only for the GRC period, but into the next decade.

Speaker #1: Our team members across Edison International and SE continue to demonstrate their ability to execute , through complexity , respond to evolving conditions , and stay focused on long term goals Turning to the legislative front , the upcoming session will be pivotal for shaping the next phase of California's energy and resiliency policy , a central focus this year is the SB 254 Natural Catastrophe Resiliency Study , being authored by the California Earthquake Authority and subsequent legislation .

Speaker #4: Our team members across Edison International and SEE continue to demonstrate their ability to execute, handle complexity, respond to evolving conditions, and stay focused on long-term goals.

Speaker #1: Our focus remains on a whole of society . Solution to mitigate and respond to catastrophic wildfires that enhances public safety , improves affordability , and supports predictable long term investment in a clean , reliable energy system for California In December , SCE and the other IOUs jointly submitted white papers , along with dozens of other stakeholders providing input into the Ceas process .

Speaker #4: Turning to the legislative front, the upcoming session will be pivotal for shaping the next phase of California's energy and resiliency policy. A central focus this year is the SB 254 Natural Catastrophe Resiliency Study, being authored by the California Earthquake Authority and subsequent legislation.

Pedro Pizarro: Turning to the legislative front, the upcoming session will be pivotal for shaping the next phase of California's energy and resiliency policy. A central focus this year is the SB 254 natural catastrophe resiliency study being authored by the California Earthquake Authority and subsequent legislation. Our focus remains on a whole-of-society solution to mitigate and respond to catastrophic wildfires that enhances public safety, improves affordability, and supports predictable, long-term investment in a clean, reliable energy system for California. In December, SCE and the other IOUs jointly submitted white papers, along with dozens of other stakeholders, providing input into the CEA's process. We continue to be actively engaged with relevant stakeholders, the governor's office, and legislative leaders about the potential for enhancements to the policy framework. Moving on to my third theme today, our confidence in our multi-year financial outlook.

Speaker #4: Our focus remains on a whole-of-society solution to mitigate and respond to catastrophic wildfires that enhances public safety, improves affordability, and supports predictable, long-term investment in a clean, reliable energy system for California.

Speaker #1: We continue to be actively engaged with relevant stakeholders . The governor's office and legislative leaders about the potential for enhancements to the policy framework Moving on to my third theme today , our confidence in our multi-year financial outlook .

Speaker #4: In December, SEE and the other IOUs jointly submitted white papers, along with dozens of other stakeholders, providing input into the CEA's process. We continue to be actively engaged with relevant stakeholders, the governor's office, and legislative leaders about the potential for enhancements to the policy framework.

Speaker #1: We are introducing core EPs guidance for 2026 and 2027 . We are affirming our 2028 outlook and extending our expected core EPs growth rate .

Speaker #1: Target through 2030 . Maintaining the 2028 target while extending the horizon underscores the growing clarity and stability in our multiyear plan , supported by a constructive regulatory foundation and a robust pipeline of necessary investments at the utility .

Speaker #4: Moving on to my third theme today: our confidence in our multi-year financial outlook. We are introducing core EPS guidance for 2026 and 2027. We are firming our 2028 outlook and extending our expected core EPS growth rate target through 2030.

Pedro Pizarro: We are introducing Core EPS guidance for 2026 and 2027, reaffirming our 2028 outlook, and extending our expected Core EPS growth rate target through 2030.... maintaining the 2028 target while extending the horizon underscores the growing clarity and stability in our multi-year plan, supported by a constructive regulatory foundation and a robust pipeline of necessary investments of the utility. With an attractive dividend yield of approximately 5% and a long-term Core EPS growth target of 5% to 7%, EIX shares offer a compelling case for total shareholder returns of 10% to 12%. This combination of income and growth reflects the strength of our regulated business model and our commitment to delivering sustainable value for customers and capital providers. Let me close where I began, with commitment.

Speaker #1: With an attractive dividend yield of approximately 5% and a long term core EPs growth target of 5 to 7% . IX shares offer a compelling case for total shareholder returns of 10 to 12% .

Speaker #4: Maintaining the 2028 target while extending the horizon underscores the growing clarity and stability in our multi-year plan, supported by a constructive regulatory foundation and a robust pipeline of necessary investments at the utility.

Speaker #1: This combination of income and growth reflects the strength of our regulated business model and our commitment to delivering sustainable value for customers and capital providers Let me close where I began with commitment .

Speaker #4: With an attractive dividend yield of approximately 5% and a long-term core EPS growth target of 5% to 7%, EIX shares offer a compelling case for total shareholder returns of 10% to 12%.

Speaker #1: Our commitment to communities and customers , and to the capital contributors who support makes our work possible Our commitment to strengthening the grid , enhancing safety , improving reliability , and supporting affordability .

Speaker #4: This combination of income and growth reflects the strength of our regulated business model and our commitment to delivering sustainable value for customers and capital providers.

Speaker #1: Our commitment to clarity and transparency as we move into a period of greater regulatory stability and our commitment to deliver on the objectives we have shared with you today .

Speaker #4: Let me close where I began—with commitment. Our commitment to communities and customers, and to the capital contributors whose support makes our work possible.

Pedro Pizarro: Our commitment to communities and customers, and to the capital contributors whose support makes our work possible. Our commitment to strengthening the grid, enhancing safety, improving reliability, and supporting affordability. Our commitment to clarity and transparency as we move into a period of greater regulatory stability, and our commitment to deliver on the objectives we have shared with you today. We have the right strategy, the right plan, and the right team in place, and we are confident in our ability to execute that plan through 2030. With that, Maria, let me turn it over to you.

Speaker #1: We have the right strategy , the right plan and the right team in place , and we are confident in our ability to execute that plan through 2030 .

Speaker #4: Our commitment to strengthening the grid, enhancing safety, improving reliability, and supporting affordability. Our commitment to clarity and transparency as we move into a period of greater regulatory stability.

Speaker #1: With that , Maria , let me turn it over to you .

Speaker #2: Thanks , Pedro . In my comments today , I will discuss fourth quarter and full year financial results . Our focus areas for 2026 provide an update on our refreshed capital rate base and EPs growth guidance , and discuss other financial topics for the fourth quarter .

Speaker #4: And our commitment to deliver on the objectives we have shared with you today. We have the right strategy, the right plan, and the right team in place, and we are confident in our ability to execute that plan through 2030.

Speaker #2: IX reported core EPs of $1.86 full year 2025 . Core EPs of $6.55 . Exceeded the high end of our EPs guidance range .

Speaker #4: With that, Maria, let me turn it over to you.

Speaker #1: Thanks, Pedro. In my comments today, I will discuss fourth quarter and full-year financial results, our focus areas for 2026, provide an update on our refreshed capital, rate base, and EPS growth guidance, and discuss other financial topics.

Maria Rigatti: Thanks, Pedro. In my comments today, I will discuss Q4 and full-year financial results, our focus areas for 2026, provide an update on our refreshed capital, rate base, and EPS growth guidance, and discuss other financial topics. For the fourth quarter, EIX reported core EPS of $1.86. Full year 2025 core EPS of $6.55 exceeded the high end of our EPS guidance range. Pages 6 and 7 provide the year-over-year variance analysis. I would like to note two items embedded in our results. First, fourth quarter core EPS includes $0.06 of costs attributed to the preferred stock tender offers and redemption at EIX and SCE completed in December. Second, we recorded a $0.46 true-up following the final decision in the Woolsey cost recovery proceeding.

Speaker #2: Pages six and seven provide the year over year variance analysis . I would like to note two items embedded in our results First fourth quarter core EPs includes $0.06 of costs attributed to the preferred stock tender offers and redemption at IX and SE , completed in December Second , we recorded a 46 cent show up following the final decision in the Woolsey Cost Recovery proceeding .

Speaker #1: For the fourth quarter, EIX reported core EPS of $1.86. Full-year 2025 core EPS of $6.55 exceeded the high end of our EPS guidance range.

Speaker #1: Pages 6 and 7 provide the year-over-year variance analysis. I would like to note two items embedded in our results. First, fourth quarter core EPS includes $0.06 of costs attributed to the preferred stock tender offers and redemption at EIX and SCE completed in December.

Speaker #2: Excluding the Woolsey True up IX full year 2025 core EPs still exceeded the midpoint of our guidance . I will echo Pedro's comments that this marks the successful delivery of the long term core EPs target .

Speaker #2: We established for 2021 through 2025 . Over that period , we successfully managed a number of unforeseen headwinds record inflation , the first rising interest rate environment in over 15 years , growing wildfire claims related debt , several changes to QAS authorized cost of capital and additional cost pressures Yet we delivered on our commitment Today , we are reaffirming our 2028 guidance and extending our 5% to 7% EPs growth target to 2030 .

Speaker #1: Second, we recorded a $46 million true-up following the final decision in the Woolsey cost recovery proceeding. Excluding the Woolsey true-up, EIX's full-year 2025 core EPS still exceeded the midpoint of our guidance.

Maria Rigatti: Excluding the Woolsey true-up, EIX's full year 2025 core EPS still exceeded the midpoint of our guidance. I will echo Pedro's comments that this marks the successful delivery of the long-term core EPS target we established for 2021 through 2025. Over that period, we successfully managed a number of unforeseen headwinds: record inflation, the first rising interest rate environment in over 15 years, growing wildfire claims-related debt, several changes to SCE's authorized cost of capital, and additional cost pressures, yet we delivered on our commitments. Today, we are reaffirming our 2028 guidance and extending our 5% to 7% EPS growth target to 2030. You should share this leadership team's confidence that we will continue to deliver on these commitments and build on your trust.

Speaker #1: I will echo Pedro’s comments that this marks the successful delivery of the long-term core EPS target we established for 2021 through 2025. Over that period, we successfully managed a number of unforeseen headwinds.

Speaker #1: Record inflation, the first rising interest rate environment in over 15 years, growing wildfire claims-related debt, several changes to SCE's authorized cost of capital, and additional cost pressures—yet we delivered on our commitment.

Speaker #2: You should share this leadership team's confidence that we will continue to deliver on these commitments and build on your trust . You can see on page eight that delivering strong financial results was just one accomplishment .

Speaker #1: Today, we are reaffirming our 2028 guidance and extending our 5% to 7% EPS growth target to 2030. You should share this leadership team's confidence that we will continue to deliver on these commitments and build on your trust.

Speaker #2: And another year of strong execution in 2025 , page nine summarizes the key management focus areas for 2026 . SCE continues to execute its wildfire Mitigation plan and its focus on operational excellence to reduce costs for customers .

Speaker #1: You can see on page 8 that delivering strong financial results was just one accomplishment in another year of strong execution in 2025. Page 9 summarizes the key management focus areas for 2026.

Maria Rigatti: You can see on page 8 that delivering strong financial results was just one accomplishment in another year of strong execution in 2025. Page 9 summarizes the key management focus areas for 2026. SCE continues to execute its wildfire mitigation plan and its focus on operational excellence to reduce costs for customers. The utility also plans to execute on its $7 billion capital plan for the year to meet customers' needs. As Pedro mentioned, the legislative process will be a major focus for the year. In the regulatory area, the utility will be driving toward a final decision on its Next-Gen ERP program and filing an application for its Advanced Metering Infrastructure, or AMI 2.0, program. Both of these are large programs that provide significant long-term customer benefits.

Speaker #2: The utility also plans to execute on its $7 billion capital plan for the year to meet customers needs . As Pedro mentioned , the legislative process will be a major focus for the year in the regulatory area .

Speaker #1: SEE continues to execute its wildfire mitigation plan and its focus on operational excellence to reduce costs for customers. The utility also plans to execute on its $7 billion capital plan for the year to meet customers' needs.

Speaker #2: The utility will be driving toward a final decision on its next gen ERP program and filing an application for its Advanced Metering Infrastructure , or Ami 2.0 program .

Speaker #2: Both of these are large programs that provide significant long term customer benefits Lastly , we look forward to another year of delivering on our annual core EPs guidance and executing efficient financings across the enterprise Let's turn to SES updated capital and rate based forecasts shown on pages ten and 11 .

Speaker #1: As Pedro mentioned, the legislative process will be a major focus for the year. In the regulatory area, the utility will be driving toward a final decision on its next-gen ERP program, and filing an application for its advanced metering infrastructure, or AMI 2.0, program.

Speaker #1: Both of these are large programs that provide significant long-term customer benefits. Lastly, we look forward to another year of delivering on our annual core EPS guidance and executing efficient financings across the enterprise.

Speaker #2: The Extended capital plan of 38 to $41 billion from 2026 through 2030 , continues the company's essential work in load growth driven programs , infrastructure replacement and wildfire mitigation Additionally , our updated forecast now includes nearly $1.5 billion of capital expenditures through 2030 from SES .

Maria Rigatti: Lastly, we look forward to another year of delivering on our annual Core EPS guidance and executing efficient financings across the enterprise. Let's turn to SCE's updated capital and rate base forecast, shown on pages 10 and 11. The extended capital plan of $38 to 41 billion from 2026 through 2030 continues the company's essential work in load growth-driven programs, infrastructure replacement, and wildfire mitigation. Additionally, our updated forecast now includes nearly $1.5 billion of capital expenditures through 2030 from SCE's upcoming AMI 2.0 application. The total request will exceed $3 billion, with spending expected to continue through 2033. We forecast a step-up in our capital deployment opportunities to as high as $9 billion per year in the next GRC cycle.

Speaker #1: Let's turn to SEE’s updated capital and rate-based forecast, shown on pages 10 and 11. The extended capital plan of $38 to $41 billion from 2026 through 2030 continues the company’s essential work in load growth-driven programs, infrastructure replacement, and wildfire mitigation.

Speaker #2: Upcoming Ami 2.0 . Application . The total request will exceed $3 billion , with spending expected to continue through 2033 . We forecast a step up in our capital deployment opportunities to as high as $9 billion per year in the next GRC cycle This is driven by the essential investments in the grid to meet customer needs and support California's clean energy objectives .

Speaker #1: Additionally, our updated forecast now includes nearly $1.5 billion of capital expenditures through 2030 from SEE's upcoming AMI 2.0 application. The total request will exceed $3 billion, with spending expected to continue through 2033.

Speaker #2: The resulting projected rate , base growth is approximately 7% from 2025 to 2030 . Page 12 shows our 2026 and 2027 core EPs guidance .

Speaker #1: We forecast a step-up in our capital deployment opportunities to as high as $9 billion per year in the next GRC cycle. This is driven by the essential investments in the grid to meet customer needs and support California's clean energy objectives.

Speaker #2: We have also provided modeling considerations on page 15 . Our core EPs guidance for 2026 is $5.90 to $6.20 , and for 2027 , it is $6.25 to $6.65 .

Maria Rigatti: This is driven by the essential investments in the grid to meet customer needs and support California's clean energy objectives. The resulting projected rate base growth is approximately 7% from 2025 to 2030. Page 12 shows our 2026 and 2027 Core EPS guidance. We have also provided modeling considerations on page 15. Our Core EPS guidance for 2026 is $5.90 to 6.20, and for 2027, it is $6.25 to 6.65. As you're aware, Edison's Core EPS over the years has not been linear. Let me provide some additional insight into our outlook and trajectory toward achieving our longer-term targets.

Speaker #1: The resulting projected rate-based growth is approximately 7% from 2025 to 2030. Page 12 shows our 2026 and 2027 core EPS guidance. We have also provided modeling considerations on page 15.

Speaker #2: As you're aware , Edison's core EPs over the years has not been linear . Let me provide some additional insight into our outlook and trajectory toward achieving our longer term targets You will see that 2026 core EPs represents growth of about 3.5% at the midpoint , compared to the $5.84 baseline .

Speaker #1: Our core EPS guidance for 2026 is $5.90 to $6.20, and for 2027, it is $6.25 to $6.65. As you're aware, Edison's core EPS over the years has not been linear.

Speaker #2: We have provided a bridge on page 13 to help you understand the puts and takes this muted growth is driven by three items , which amount to $0.25 .

Speaker #1: Let me provide some additional insight into our outlook and trajectory toward achieving our longer-term targets. You will see that 2026 core EPS represents growth of about 3.5% at the midpoint compared to the $5.84 baseline.

Speaker #2: First , SCD has fewer regulatory decisions in 2026 than last year . Therefore , the associated earnings contribution from recognizing prior year earnings is about $0.11 lower .

Maria Rigatti: You will see that 2026 core EPS represents growth of about 3.5% at the midpoint compared to the $5.84 baseline. We have provided a bridge on page 13 to help you understand the puts and takes. This muted growth is driven by three items, which amount to $0.25. First, SCE has fewer regulatory decisions in 2026 than last year. Therefore, the associated earnings contribution from recognizing prior year earnings is about $0.11 lower. Second, asset mix differences versus the original GRC forecast creates depreciation and property tax related variances of about $0.07. Third, financing related variances, tax law changes, and other items reduce core EPS by approximately $0.07. The drivers behind the $0.25 impact are baked into 2026, and thus are not expected to result in negative variances in later periods.

Speaker #1: We have provided a bridge on page 13 to help you understand the puts and takes. This muted growth is driven by three items, which amount to $0.25.

Speaker #2: Second asset mix differences versus the original GRC forecast creates appreciation and property tax related variances of about $0.07 . Third , financing related variances , tax law changes and other items reduce core EPs by approximately $0.07 .

Speaker #1: First, SEE has fewer regulatory decisions in 2026 than last year. Therefore, the associated earnings contribution from recognizing prior-year earnings is about $0.11 lower.

Speaker #2: The drivers behind the 25 cent impact are baked into 2026 , and thus are not expected to result in negative variances in later periods .

Speaker #1: Second, asset mix differences versus the original GRC forecast create appreciation and property tax-related variances of about $0.07. Third, financing-related variances, tax law changes, and other items reduce core EPS by approximately $0.07.

Speaker #2: Consequently , we expect EPs growth in 2027 to be at the high end of our 5 to 7% range . This is supported by Sdi's 7% rate base growth , and we do not expect any large discrete variances from the rest of SES operations Turning to page 16 .

Speaker #1: The drivers behind the $0.25 impact are baked into 2026, and thus are not expected to result in negative variances in later periods. Consequently, we expect EPS growth in 2027 to be at the high end of our 5 to 7 percent range.

Speaker #2: We are extending our 5% to 7% EPs growth target to 2030 . We are also reaffirming our 2028 guidance . And both of these are measured from the $5.84 baseline for 2025 .

Maria Rigatti: Consequently, we expect EPS growth in 2027 to be at the high end of our 5% to 7% range. This is supported by SCE's 7% rate-based growth, and we do not expect any large discrete variances from the rest of SCE's operations. Turning to page 16, we are extending our 5% to 7% EPS growth target to 2030. We are also reaffirming our 2028 guidance, and both of these are measured from the $5.84 baseline for 2025. On the financing front, I want to emphasize that we project no equity needs for the next five years through 2030. Our balance sheet remains strong, and we continue to finance the business efficiently within our 15% to 17% FFO to debt framework. Last month, the utility filed its Woolsey securitization application with the CPUC.

Speaker #1: This is supported by SEE's 7% rate-based growth, and we do not expect any large discrete variances from the rest of SEE's operations. Turning to page 16, we are extending our 5% to 7% EPS growth target to 2030.

Speaker #2: On the financing front , I want to emphasize that we project no equity needs for the next five years through 2030 . Our balance sheet remains strong and we continue to finance the business efficiently within our 15% to 17% FFO to debt framework Last month , the utility filed its Woolsey application with the CPUc Once approved , the utility will securitize about $2 billion in costs associated with the approved Woolsey Settlement Agreement , sees proposed schedule would allow for this transaction to close in mid 2026 .

Speaker #1: We are also reaffirming our 2028 guidance, and both of these are measured from the $5.84 baseline for 2025. On the financing front, I want to emphasize that we project no equity needs for the next five years through 2030.

Speaker #1: Our balance sheet remains strong, and we continue to finance the business efficiently within our 15% to 17% FFO-to-debt framework. Last month, the utility filed its Wolsey securitization application with the CPUC.

Speaker #2: As we have shared before , proceeds from this transaction would be used to offset normal course debt issuances at SCE , rather than paying down specific issuances .

Speaker #1: Once approved, the utility will securitize about $2 billion in costs associated with the approved Wolsey settlement agreement. SCE's proposed schedule would allow for this transaction to close in mid-2026.

Maria Rigatti: Once approved, the utility will securitize about $2 billion in costs associated with the approved Woolsey settlement agreement. SCE's proposed schedule would allow for this transaction to close in mid-2026. As we have shared before, proceeds from this transaction would be used to offset normal course debt issuances at SCE rather than paying down specific issuances. I will conclude by echoing Pedro's earlier comments about commitment and trust. Deploying capital for the resilience, reliability, and readiness of the grid helps deliver on our commitments to customers and maintain their trust. We are committed to collaborating with stakeholders to advance a clear, durable, and predictable framework. And to our capital contributors, you have seen us deliver consistently on our annual and long-term commitments to earn your trust. This leadership team remains committed and confident in continuing to do just that going forward. That concludes my remarks.

Speaker #2: I will conclude by echoing Pedro's earlier comments about commitment and trust . Deploying capital for the resilience , reliability and readiness of the grid helps deliver on our commitments to customers and maintain their trust .

Speaker #1: As we have shared before, proceeds from this transaction would be used to offset normal course debt issuances at SEE, rather than paying down specific issuances.

Speaker #2: We are committed to collaborating with stakeholders to advance a clear , durable and predictable framework and to our capital . Contributors . You have seen us deliver consistently on our annual and long term commitments to earn your trust .

Speaker #1: I will conclude by echoing Pedro's earlier comments about commitment and trust. Deploying capital for the resilience, reliability, and readiness of the grid helps deliver on our commitments to customers and maintain their trust.

Speaker #2: This leadership team remains committed and confident in continuing to do just that going forward . That concludes my remarks . Back to you , Sam

Speaker #1: We are committed to collaborating with stakeholders to advance a clear, durable, and predictable framework. And to our capital contributors, you have seen us deliver consistently on our annual and long-term commitments to earn your trust.

Speaker #3: Michelle , please open the call for questions . As a reminder , we request you to limit yourself to one question and one follow up .

Speaker #3: So everyone in line has the opportunity to ask questions .

Speaker #4: Thank you . If you would like to ask a question , please press star one on your phone . One moment please . For the first question .

Speaker #1: This leadership team remains committed and confident in continuing to do just that going forward. That concludes my remarks. Back to you, Sam.

Maria Rigatti: Back to you, Sam.

Speaker #4: Our first caller is Nick Campanella with Barclays . Your line is open , sir

Speaker #2: Michelle, please open the call for questions. As a reminder, we request that you limit yourself to one question and one follow-up, so everyone in line has the opportunity to ask questions.

Sam Ramraj: Michelle, please open the call for questions. As a reminder, we request you to limit yourself to one question and one follow-up, so everyone in line has the opportunity to ask questions.

Speaker #5: Hi . Good afternoon . Thanks for taking my questions So , I guess just on the on the Eaton losses . I think you disclosed that you recorded about 1.1 billion of losses so far just from the settlements under the wildfire recovery compensation program .

Speaker #3: Thank you. If you would like to ask a question, please press star one on your phone. One moment, please, for the first question. Our first caller is Nick Campanella with Barclays.

Operator: Thank you. If you would like to ask a question, please press star one on your phone. One moment, please, for the first question. Our first caller is Nick Campanella with Barclays. Your line is open, sir.

Speaker #5: And I guess just as you're continuing to get more visibility on the total liability , when do you think you would potentially have the low end of losses for the for the total event ?

Speaker #3: Your line is open, sir.

Speaker #4: Hi, Nick.

Pedro Pizarro: Hi, Nick.

Speaker #5: Hey, good afternoon. Thanks for taking my questions. So I guess just on the EIT and losses, I think you disclosed that you recorded about $1.1 billion of losses so far just from the settlements under the Wildfire Recovery Compensation Program.

Nick Campanella: Hey, good afternoon. Thanks for taking my questions. So I guess just on the, on the Eaton losses, I think you disclosed that you recorded about $1.1 billion of losses so far, just from the settlements under the Wildfire Recovery Compensation Program. And I guess just as you're continuing to get more visibility on the total liability, like, when do you think you would potentially have the low end of losses for the, for the total event? And, you know, what is kind of the complicating factor at this point, if you could kind of maybe expand on that at all? Thank you.

Speaker #5: And what is kind of the complicating factor at this point ? If you could maybe expand on that at all ? Thank you .

Speaker #1: Okay . Thanks , Nick , for the question . I'll start on this one . Let maybe share some , reinforce some numbers for perspective .

Speaker #5: And I guess, just as you're continuing to get more visibility on the total liability, when do you think you would potentially have the low end of losses for the total event?

Speaker #1: I think I mentioned that we've had SC has had over 2300 claims submitted so far . There are 18,000 properties that are eligible for the program .

Speaker #5: And what is kind of the complicating factor at this point, if you could maybe expand on that at all? Thank you.

Speaker #1: You might have multiple claimants per property . For example , if you have a multiple tenant kind of property . So we could certainly see , you know , a few tens of thousands of claims ultimately , you know , if everybody were to participate to the program .

Speaker #4: Yeah, thanks, Nick, for the question. I'll start on this one. Let me share some reinforcing numbers for perspective. I think I mentioned that SEE has had over 2,300 claims submitted so far.

Pedro Pizarro: Yeah, thanks, Nick, for the question. I'll start on this one. Let me share some, reinforce some numbers for perspective. I think I mentioned that we've had SCE has had over 2,300 claims submitted so far. There are 18,000 properties that are eligible for the program. You might have multiple claimants per property. There's, for example, if you have a, you know, multiple tenant kind of property. We could certainly see a few tens of thousands of claims ultimately, you know, if everybody were to participate through the program. In that context, 2,300 claim applications that were now, I think I checked this morning, SCE has now crossed the 590 offer mark. Those are, that's a really good, strong start.

Speaker #1: And so in that context , 2300 claim applications that were now , I think I checked this morning SC has now crossed the 590 offer mark .

Speaker #4: There are 18,000 properties that are eligible for the program. You might have multiple claimants per property. For example, if you have a multiple-tenant kind of property, so we could certainly see a few tens of thousands of claims ultimately.

Speaker #1: Those are that's a really good strong start . There's are good numbers for just you know three months into the program . But it's just a you know , minuscule number compared to the potential pool here .

Speaker #4: If everybody were to participate through the program—and so in that context, 2,300 claim applications that were now, I think I checked this morning, SEE has now crossed the 590-offer mark.

Speaker #1: And so in terms of when we would be able to estimate , we really don't have an estimate for that yet , because it really depends on the pace of this .

Speaker #2: And Nick , maybe just a clarification . You referenced a billion or so that we've recorded . That's a combination of what we've paid under the WRC program , which Pedro just described .

Speaker #4: Those are really good, strong start. Those are good numbers for just three months into the program. But it's just a minuscule number compared to the potential pool here.

Pedro Pizarro: Those are good numbers for just, you know, three months into the program, but it's just a, you know, minuscule number compared to the potential pool here. And so, in terms of when we would be able to estimate, we really don't have an estimate for that yet because it really depends on the pace of this.

Speaker #2: That is the a very minor part of the total . The rest of it is with subrogation claims settlements that the company has entered into .

Speaker #4: And so, in terms of when we would be able to estimate, we really don't have an estimate for that yet because it really depends on the pace of this.

Speaker #2: So it's both of those things .

Speaker #1: Yeah . Thanks for the clarification , Maria . And we've announced a couple of settlements so far . So so that's why on the insurance side , subrogation side , similarly , there's been two two settlements at around an average of $0.55 on the dollar .

Speaker #3: And Nick, maybe just a clarification. You referenced a billion or so that we've recorded. That's a combination of what we've paid under the WRCP program, which Pedro just described.

Maria Rigatti: Nick, maybe just a clarification. You referenced $1 billion or so that we've recorded. That's a combination of what we paid under the WRCP program, which Pedro just described. That is a very minor part of the total.

Speaker #3: That is the very minor part of the total; the rest of it is associated with subrogation claims, settlements that the company has entered into.

Speaker #1: But you know , there's many more insurance companies than that . So we really can't estimate when we might have enough critical volume to be able to have , you know , a even a low end of the range with the confidence required by gap

Pedro Pizarro: Yep.

Maria Rigatti: The rest of it is associated with subrogation claim settlements that the company's entered into. So it's, it's both of those things.

Speaker #3: So it's both of those things.

Speaker #4: Yeah, thanks for the clarification, Maria. I think we've announced a couple of subrogation settlements so far. So that's why, on the insurance side, the subrogation side, similarly, there's been two settlements at around an average of $0.55 on the dollar, but there are many more insurance companies than that.

Pedro Pizarro: Yeah. Thanks for the clarification, Maria. Good. I think we've announced a couple of subrogation settlements so far. So, so that's why-

Speaker #5: Okay . Thank you . Thanks for the clarification . And then just maybe expanding on the comments about the 5 to 7% and being at the high end , 27 .

Nick Campanella: Thanks for that clarification.

Pedro Pizarro: On the insurance side, the subrogation side, similarly, there's been two settlements at around an average of $0.55 on the dollar, but, you know, there's many more insurance companies than that. So we really can't estimate when we might have enough critical volume to be able to have a, you know, even a low end of the estimable range with the confidence required by GAAP.

Speaker #4: So we really can't estimate when we might have enough critical volume to be able to have even a low end of the estimable range with the confidence required by GAAP.

Speaker #5: I know your rate base growth is 7% and you're not issuing any equity , which is great , but I assume you do have some financing drag .

Speaker #5: Just what are kind of the the considerations and non-linearity to think about for 28 and 29 ? And do you do you kind of plan to be at the high end in those years in the 5 to 7 range , or are there just further considerations there ?

Speaker #5: Okay, thank you. Thanks for the clarification. And then just maybe expanding on the comments about the 5% to 7% and being at the high end in ’27, I know your rate-based growth is 7% and you're not issuing any equity, which is great, but I assume you do have some financing drag.

Nick Campanella: Okay, thank you. Thanks for the clarification. And then just maybe expanding on the comments about, you know, the 5 to 7% and being at the high end in 2027. I know your rate base growth is 7% and you're not issuing any equity, which is great, but I assume you do have some financing drag. Just what are kind of the considerations and nonlinearity to think about for 2028 and 2029? And do you kind of plan to be at the high end in those years, in the 5 to 7% range, or are there just further considerations there? Thank you.

Speaker #5: Thank you

Speaker #2: Thanks , Nick . So you can see sort of through the 28 period again , 2026 some muted growth due to variances that are now in the in the year and will not create variances on a go forward basis , which then does mean that we're at the high end of the range for the next couple of years .

Speaker #5: Just what are kind of the considerations and non-linearity to think about for '28 and '29? And do you kind of plan to be at the high end in those years, in the 5 to 7 range, or are there just further considerations there?

Speaker #2: We don't really see any large discrete activities that are driving things in one direction or the other . Over the course of those years .

Speaker #5: Thank you.

Speaker #3: Thanks, Nick. So you can see, sort of through the ’28 period—again, 2026, it's a muted growth due to variances that are now in the year and will not create variances on a go-forward basis—which then does mean that we're at the high end of the range for the next couple of years.

Maria Rigatti: Thanks, Nick. So you can see sort of through the 2028 period, again, 2026, some muted growth due to variances that are now in the year and will not create variances on a go-forward basis, which then does mean that we're at the high end of the range for the next couple of years. We don't really see any large discrete activities that are driving things in one direction or the other over the course of those years. It's really rate-based growth. Obviously, you know, we're still gonna continue to see things like AFDC come through. We're going to continue to manage the business across all the different elements and areas, similar to what we've done in the past. Then as you get out to 2029 and 2030, again, right back down to rate-based growth.

Speaker #2: It's really rate based growth . Obviously , you know , we're going to continue to see things like Afudc come through . We're going to continue to manage the business across all the different elements and areas , similar to what we've done in the past .

Speaker #2: Then as you get out to 29 and 30 again , right back down to rate base growth , I mean , that is really the driver here .

Speaker #3: We don't really see any large, discrete activities that are driving things in one direction or the other over the course of those years. It's really rate-based growth.

Speaker #2: And you can see the potential step up in 29 and 30 as we file for a new general rate case decision . That'll be filed actually in May of 2027 .

Speaker #3: Obviously, we're still continuing to see things like AFEGC come through. We're going to continue to manage the business across all the different elements and areas.

Speaker #2: So we're closing in on that now

Speaker #3: Similar to what we've done in the past. Then, as you get out to '29 and '30, again, right back down to rate-based growth. I mean, that is really the driver here, and you can see the potential step-up in '29 and '30 as we file for a new General Rate Case decision.

Speaker #5: Okay . Thanks

Speaker #4: Thank you . And the next question comes from Carly Davenport with Goldman Sachs . Your line is open

Maria Rigatti: I mean, that is really the driver here, and you can see the potential step up in 2029 and 2030 as we file for a new General Rate Case decision. That'll be filed actually in May of 2027, so we're closing in on that now.

Speaker #6: Hey good afternoon . Hey , thanks so much for taking the questions . Maybe just on some of the updates on the capital plan through 2030 .

Speaker #3: That'll be filed, actually, in May of 2027. So we're closing in on that now.

Speaker #6: On the Ami 2.0 application , just once you file that , what do you anticipate to be the timing on clarity of approvals ?

Speaker #5: Okay, thanks.

Nick Campanella: Okay, thanks.

Speaker #3: Thank you. And the next question comes from Carly Davenport with Goldman Sachs. Your line is open.

Operator: Thank you. And the next question comes from Carly Davenport with Goldman Sachs. Your line is open.

Speaker #6: And then just how does that interplay with the timing of the capital dollars that are embedded in the plan through 2030 ?

Speaker #6: Hey, good afternoon. Hey, thanks so much for taking the questions. Maybe just on some of the updates on the capital plan through 2030. On the AMI 2.0 application, just once you file that, what do you anticipate to be the timing on clarity of approvals?

Carly Davenport: Hey, good afternoon.

Speaker #2: Sure . So we'll be filing later next few months , likely . And we'll ask for a typical schedule , which would get us a decision hopefully in about 18 months or so .

Maria Rigatti: Hi, Carly.

Carly Davenport: Hey, thanks so much for taking the questions. Maybe just on some of the updates on the capital plan through 2030. On the AMI 2.0 application, just once you file that, what do you anticipate to be the timing on clarity of approvals? And then just how does that interplay with the timing of the capital dollars that are embedded in the plan through 2030?

Speaker #2: The capital that's embedded in the forecast right now , the total request will be in the neighborhood of $3 billion , about a billion and a half is in the period that we have portrayed here through 2030 , with another billion and a half that would get spent post that , by and large , through 2033 .

Speaker #6: And then, just how does that interplay with the timing of the capital dollars that are embedded in the plan through 2030?

Speaker #3: Sure. So, we'll be filing later in the next few months, likely. And we'll ask for a typical schedule, which would get us a decision, hopefully, in about 18 months or so.

Maria Rigatti: Sure. We'll be filing, you know, later, next few months, more likely, and we'll ask for a typical schedule, which would get us a decision, hopefully, in about 18 months or so. The capital that's embedded in the forecast right now, the total request will be in the neighborhood of $3 billion. About $1.5 billion is in the period that we have portrayed here through 2030, with another $1.5 billion that would get spent post that, by and large, through 2033. So that's sort of the pace of what we're anticipating.

Speaker #2: So that's sort of the pace of what we're anticipating

Speaker #3: The capital that's embedded in the forecast right now—the total request will be in the neighborhood of $3 billion. About $1.5 billion is in the period that we have portrayed here through 2030.

Speaker #6: Great . Okay . That's super helpful . And then maybe just on the SB 254 processes , getting closer to the April first CEA report deadline , any updates that you'd call out in terms of , you know , semantics that are coming out of the updates we've gotten so far and just how you feel we're progressing into that deadline and what that could mean for timing of getting some clarity on legislation .

Speaker #3: With another $1.5 billion that would get spent post that, by and large, through 2033. So that's sort of the pace of what we're anticipating.

Speaker #6: Great. Okay, that's super helpful. And then maybe just on the S&P 254 processes, getting closer to the April 1st CEA report deadline—any updates that you'd call out in terms of somatics that are coming out of the updates we've gotten so far, and just how you feel we're progressing into that deadline and what that could mean for timing of getting some clarity on legislation?

Carly Davenport: Great. Okay, that's super helpful. And then maybe just, on the SB 254 processes, you know, getting closer to the 1 April CEA report deadline, you know, any updates that you'd call out in terms of, you know, thematics that are coming out of the updates we've gotten so far, and just how you feel we're progressing into that deadline, and what that could mean for, you know, timing of getting some clarity on legislation?

Speaker #1: Yeah . Thanks , Carly . I'd say , you know , the process is certainly underway . It's good to see robust participation from so many stakeholders across the economy at the legislature said this up .

Speaker #1: They set it up to be truly across economy , sort of exercise . And so that that engagement is important . It's been important to see the approach that the CEA is taking in marshaling the process , making sure that there's there's good participation , you know , good engagement , good transparency into the various positions that different parties are bringing in .

Speaker #4: Yeah, hey, thanks, Carly. I'd say the process is certainly underway. It's good to see robust participation from so many stakeholders across the economy. The legislature set this up.

Pedro Pizarro: Yeah. Thanks, Carly. I'd say, you know, the process is certainly underway. It's good to see robust participation from so many stakeholders across the economy. The legislature set this up. They set it up to be truly a cross-economy sort of exercise. And so that engagement is important. It's been important also to see the approach that the CEA is taking in marshaling the process, making sure that there's good participation, you know, good engagement, good transparency into the various positions that different parties are bringing in. You know, it's early in the process, so really not able to comment on specific solutions or potential solutions yet.

Speaker #4: They set it up to be truly a cross-economy sort of exercise. And so that engagement is important. It's been important to see the approach that the CEA is taking in marshaling the process, making sure that there's good participation, good engagement, and good transparency into the various positions that different parties are bringing in.

Speaker #1: You know , it's early in the process . So really not able to comment on specific solutions or potential solutions yet . But seeing the recognition that this is an economy wide issue that it really needs to touch all sectors , everything from upstream , securing a buildings , hardening of buildings , decreasing the risk of ignition , decreasing the risk of spread and of consequence .

Speaker #4: It's early in the process, so we're really not able to comment on specific solutions or potential solutions yet. But seeing the recognition that this is an economy-wide issue that really needs to touch all sectors—everything from upstream securing the buildings, hardening of buildings, decreasing the risk of ignition, decreasing the risk of spread and of consequence, focusing as well on shoring up the insurance market, and focusing on having, ultimately, solutions that, if heaven forbid there's another catastrophic fire in the state, there's a way to equitably socialize that impact across the economy.

Speaker #1: Focusing as well on shoring up the insurance market , focusing on having ultimately solutions that if , you know , heaven forbid , there's another catastrophic fire in the state , that there's a way to equitably socialize that impact across the economy .

Pedro Pizarro: But seeing the recognition that this is an economy-wide issue, that, you know, really needs to touch all sectors, everything from upstream, securing the buildings, hardening the buildings, decreasing the risk of ignition, decreasing the risk of spread, and of consequence, focusing as well on shoring up the insurance market. Focusing on having ultimately solutions that if, you know, heaven forbid, there's another catastrophic fire in the state, that there's a way to equitably socialize that impact across the economy. You know, those are all constructive themes that keep coming up. I would also point to the report that the CPUC issued a couple of weeks ago.

Speaker #1: You know , those are all constructive themes that keep coming up . I would also point to the report that the CPUc issued a couple of weeks ago .

Speaker #1: We thought that that was very constructive . And , you know , acknowledged that central theme that ultimately utilities and therefore their customers and shareholders simply cannot continue to be the the insurer of last resort .

Speaker #4: Those are all constructive themes that keep coming up. I would also point to the report that the CPUC issued a couple of weeks ago.

Speaker #1: The bearers of all this risk that even if you have a catastrophe that that starts with a utility ignition , that catastrophe has so many other components .

Speaker #4: We thought that that was very constructive and acknowledged that central theme that ultimately utilities, and therefore their customers and shareholders, simply cannot continue to be the insurers of last resort—the bearers of all of this risk. Even if you have a catastrophe that starts with a utility ignition, the catastrophe has so many other components, right?

Pedro Pizarro: We thought that that was, you know, very constructive and, you know, acknowledged that central theme that ultimately, utilities and therefore their customers and shareholders, simply cannot continue to be the insurers of last resort, the bearers of all of this risk, that even if you have a catastrophe that starts with a utility ignition, the catastrophe has so many other components, right? The tragedy, it can include weather conditions, can include challenges in mitigating the fire, can include, you know, issues that led to, you know, faster spread. And so, recognizing those kind of themes is really important, and it was good to see that, you know, show up in the CPUC's conclusions. Maria, anything to add?

Speaker #1: Right . The tragedy , it can include whether conditions can include challenges in mitigating the fire , could include , you know , issues that led to , you know , faster spread .

Speaker #1: And so recognizing those kind of things is important . And it was good to see that , you know , show up in the CPUc .

Speaker #1: Conclusions . Maria , anything you that .

Speaker #2: Maybe just one other thing , Carly . And it's really not an ad . It's just a it's an it's a underscoring . Pedro talked about , you know , sort of the focus on safety and risk reduction on timely and fair recovery for the people who are impacted by an event , but also it's very important and part of the conversation that we're having is that you need a predictable framework that supports access to , well-priced capital , because at the end of the day , it's about affordability for customers .

Speaker #4: The tragedy can include weather conditions, can include challenges in mitigating the fire, can include issues that led to faster spread. And so recognizing those kinds of themes is really important.

Speaker #4: And it was good to see that show up in the CPUC's conclusions. Maria, anything to add?

Speaker #3: Maybe just one other thing, Carly. And it's really not an ad; it's just an underscoring. Pedro talked about the focus on safety and risk reduction, and on timely and fair recovery for the people who are impacted by an event.

Maria Rigatti: I think maybe just one other thing, Carly, and it's really not an add, it's just an underscoring. You know, Pedro talked about, you know, sort of the focus on safety and risk reduction, on timely and fair recovery for the people who are impacted by an event. But also, it's very important, and part of the conversation that we're having, is that you need a predictable framework that supports access to well-priced capital. Because at the end of the day, it's about affordability for customers. And so, having that conversation and making sure that we are emphasizing that is a really important part of what the IOUs are doing.

Speaker #2: And so having that conversation and making sure that we are emphasizing that is a really important part of what the IOUs are doing .

Speaker #6: Got it . Really helpful . Thank you for all those comments .

Speaker #3: But also, it's very important—and part of the conversation that we're having—is that you need a predictable framework that supports access to well-priced capital.

Speaker #1: Yeah . Thanks , Carly .

Speaker #4: Thank you . And the next question comes from Paul Zimbardo with Jefferies . Your line is open , sir .

Speaker #3: Because at the end of the day, it's about affordability for customers. And so, having that conversation and making sure that we are emphasizing that is a really important part of what the IOUs are doing.

Speaker #7: Hi . Good afternoon team . Thanks for taking the question The first one I had was just to follow up on Nick's question a little bit .

Speaker #6: Got it. Really helpful. Thank you for all those comments.

Carly Davenport: Got it. Really helpful. Thank you for all those comments.

Speaker #7: If I have the math right and it's late in the day , so I might not . But if I have the math right , it looks like about an 8% rate base growth from that 28 to 2030 .

Speaker #4: Yeah, thanks, Carly.

Pedro Pizarro: Yeah, thanks, Carly.

Speaker #3: Thank you. And the next question comes from Paul Zimbardo with Jefferies. Your line is open, sir.

Operator: Thank you. And the next question comes from Paul Zimbardo with Jefferies. Your line is open, sir.

Pedro Pizarro: Thank you. And the next question comes from Paul Zimbardo with Jefferies. Your line is open, sir.

Speaker #7: So I don't know if there's any other factors we should be considering because of your rate . Base growth is translating into the net income and earnings growth .

Speaker #7: Hi, good afternoon, team. Thanks for taking the question. The first one I had was just to follow up on Nick's question a little bit.

Paul Zimbardo: Hi, good afternoon, team. Thanks for taking the question.

Pedro Pizarro: Yeah.

Paul Zimbardo: The first one I had was just to follow up on Nick's question a little bit. If I have the math right, and it's late in the day, so I might not, but if I have the math right, it looks like about an 8% Rate Base growth from that 2028 to 2030. So I didn't know if there, there's any other factors we should be considering, because kind of your Rate Base growth is translating into the net income and earnings growth. Should we think about a potential faster trajectory in the, the back end of that plan from 2020 to 2030?

Speaker #7: Should we think about a potential faster trajectory in the the back end of that plan from 2028 to 2030 ?

Speaker #7: If I have the math right—and it's late in the day, so I might not—but if I have the math right, it looks like about an 8% rate base growth from that $28 to 2030.

Speaker #2: Paul , I think , you know , how we approach this . We definitely run a lot of different scenarios . We plan conservatively , looking at all various outcomes and how they play together allows us to have confidence in the 5 to 7% .

Speaker #7: So, I didn't know if there's any other factors we should be considering, because kind of your rate base growth is translating into the net income and earnings growth.

Speaker #2: I would focus on that now . I think we're we're not seeing anything other than rate base growth as we move out in time .

Speaker #7: Should we think about a potential faster trajectory in the back end of that plan from 2028 to 2030?

Speaker #2: We're always going to be doing things to help , you know , benefit the growth . But and also benefit affordability . So we'll be focusing on efficient financings .

Speaker #3: Paul, I think you know how we approach this. We definitely run a lot of different scenarios. We plan conservatively. Looking at all the various outcomes, and how they play together, allows us to have confidence in the 5% to 7%.

Maria Rigatti: Paul, I think you know how we approach this. We definitely run a lot of different scenarios. We plan conservatively. Looking at all various outcomes and how they play together allows us to have confidence in the 5% to 7%. I would focus on that now. I think we're, we're not seeing anything other than rate-based growth as we move out in time. We're always going to be doing things to help, you know, benefit the growth, but and also benefit affordability. So we'll be focusing on efficient financings. We'll be focusing on, over time, you know, further operational excellence efforts. But I, I think that's how I really view the entire 5-year period. It's based on a lot of scenarios, a lot of scenario planning, a lot of scenario analysis, and some conservative evaluations.

Speaker #2: We'll be focusing on over time , you know , further operational excellence efforts . But I think that's how I really view the entire five year period .

Speaker #3: I would focus on that now. I think we're not seeing anything other than rate-based growth as we move out in time. We're always going to be doing things to help benefit the growth and also benefit affordability.

Speaker #2: It's based on a lot of scenarios , a lot of scenario planning , a lot of scenario analysis , and some conservative evaluations .

Speaker #7: Okay , that that is clear . And then I do want to follow up a little bit on the 2026 drivers and the variances you mentioned .

Speaker #3: So we'll be focusing on efficient financings. We'll be focusing on, over time, further operational excellence efforts. But I think that's how I really view the entire five-year period.

Speaker #7: Understand on the the regulatory true up , but could you elaborate a little bit on on why we shouldn't think about the the depreciation and kind of those tax other items .

Speaker #3: It's based on a lot of scenarios, a lot of scenario planning, a lot of scenario analysis, and some conservative evaluations.

Speaker #7: That $0.14 is recurring . That would be helpful . Thanks .

Speaker #7: Okay, that is clear. And then I did want to follow up a little bit on the 2026 drivers and the variances you mentioned. I understand on the regulatory true-up, but could you elaborate a little bit on why we shouldn't think about the depreciation and kind of those tax and other items—that $0.14—as recurring?

Paul Zimbardo: Okay. That is clear. And then I did want to follow up a little bit on the 2026 drivers and the variances you mentioned. I understand on the regulatory true-up, but could you elaborate a little bit on why we shouldn't think about the depreciation and kind of those tax other items, that $0.14 is recurring? That'd be helpful. Thanks.

Speaker #8: Sure .

Speaker #2: So what they are variances in this year like relative to 25 . But now that they're built in they're just going to you know they continue on a go forward basis .

Speaker #2: But they won't actually be affecting or diminishing the growth year over year . So maybe thats a clarification that might be helpful . You know , what they with more specificity as you get into any rate case cycle .

Speaker #7: That would be helpful. Thanks.

Speaker #2: And I know we've chatted about this in the past . You know , you can start to deploy invest in assets at a slightly different pace or in a slightly different and slightly different buckets than are in the GRC authorized revenue requirement .

Speaker #3: Sure. So what they are are variances in this year, relative to '25. But now that they're built in, they're just going to continue on a go-forward basis, but they won't actually be affecting or diminishing the growth year over year.

Maria Rigatti: Sure. So, what they are are variances in this year, like relative to 25, but now that they're built in, they're just gonna, you know, they continue on a go-forward basis, but they won't actually be affecting or diminishing the growth year-over-year. So maybe that's a clarification that might be helpful. You know, what are they with more specificity? As you get into any rate case cycle, and I know we've chatted about this in the past, you know, you can start to deploy assets or invest in assets at a slightly different pace or in slightly different buckets than are in the GRC authorized revenue requirement. So you get those depreciation and then, and then also property tax-related variances. Again, built in now, so on a go-forward basis, they don't affect the year-over-year trajectory.

Speaker #2: So you get those depreciation and and then also property tax related variances . Again built in . Now . So on a go forward basis they don't affect the year over year trajectory tax and financing .

Speaker #3: So maybe that's a clarification that might be helpful. What are they with more specificity? As you get into any rate case cycle and I know we've chatted about this in the past, you can start to deploy assets or invest in assets at a slightly different pace or in a slightly different in slightly different buckets than are in the GRC authorized revenue requirement.

Speaker #2: There were some tax law changes last year around charitable contributions . There's a couple of pennies around that . And then because year over year we have more wildfire debt outstanding .

Speaker #3: So you get those depreciation and then also property tax-related variances—again, built in now. So I want to go forward basis. They don't affect the year-over-year trajectory.

Speaker #2: You see just a variance in the financing costs . Again , because the average amount outstanding changes as you continue as we continue to pay claims back in 2025 .

Speaker #3: Tax and financing. There were some tax law changes last year around charitable contributions. There's a couple of pennies around that. And then because year-over-year, we have more wildfire debt outstanding, you see just a variance in the financing cost—again, because the average amount outstanding changes as we continue to pay claims back in 2025.

Maria Rigatti: Tax and financing, there were some tax law changes last year around charitable contributions. There's a couple of pennies around that. And then, because year-over-year, we have more wildfire debt outstanding, you see just a variance in the financing cost, again, because the average amount outstanding changes as we continue to pay claims back in 2025. Again, now built in, we also have a lot of visibility into that with the settlements behind us, so not a variance going forward, which brings you back to rate-based growth as the driver for our earnings growth.

Speaker #2: But again , now built in , we also have a lot of visibility into that with the settlements behind us . So not a variance going forward , which brings you back to rate base growth as the driver for our earnings .

Speaker #8: Growth

Speaker #7: Okay . Very comprehensive and thank you for for giving the 2027 as well . Thanks a lot team .

Speaker #8: Thanks .

Speaker #4: Well thank you . And the next question comes from Ryan Levine with Citi . Your line is open .

Speaker #3: But again, now built in. We also have a lot of visibility into that with the settlements behind us, so not a variance going forward, which brings you back to rate-based growth as the driver for our earnings growth.

Speaker #1: Hello Ryan .

Speaker #9: Hi . How are you . As the compensation program continues to execute , would you look to continue to tweak the program to achieve your objectives and any color you could share around the rationale for the recently announced changes ?

Speaker #7: Okay, very comprehensive. And thank you for giving the 2027 as well. Thanks a lot, team.

Paul Zimbardo: Okay. That's very comprehensive, and thank you for giving the 2027 as well. Thanks a lot, team.

Speaker #3: Thanks, Paul.

Maria Rigatti: Thanks, Paul.

Speaker #2: Thank you. And the next question comes from Ryan Levine with City. Your line is open.

Speaker #1: I had a little hard time picking up . Did you hear the question ?

Operator: Thank you. The next question comes from Ryan Levine with Citi. Your line is open.

Speaker #2: Yes .

Speaker #8: So .

Speaker #4: Hello, Ryan.

Pedro Pizarro: Hello, Ryan.

Speaker #2: Ryan , we did . Pedro did mention earlier some small changes or some changes we're making in the program . I think all of that ties to the information gathering and the community feedback .

Ryan Levine: Hi, how are you? As the compensation program continues to execute, would you look to continue to tweak the program to achieve your objectives, and any color you could share around the rationale for the recently announced changes?

Speaker #7: Hi. How are you?

Speaker #4: As the compensation program continues to execute, would you look to continue to tweak the program to achieve your objectives? And any color you could share around the rationale for the recently announced changes?

Speaker #2: We continue to get , but I think , Pedro , if you want to elaborate .

Speaker #1: I'm happy to . And sorry , Ryan , it was just a little bit of static when you were asking the question . So I had a hard time picking it up .

Speaker #4: I had a little hard time picking up. Did you hear the question?

Pedro Pizarro: I had a little hard time picking up.

Speaker #1: Yeah . So we made a couple of modifications to the WRC program . One is to provide some added support for tenants . The original protocol provided three months of compensation at the actual rent level that the tenants were paying prior to the event .

Maria Rigatti: Um, uh-

Pedro Pizarro: Did you hear the question?

Maria Rigatti: Yes. So, Ryan, Pedro did mention earlier some small changes or some changes we're making in the program. I think all of that ties to the information gathering and the community feedback we continue to get. But I think, Pedro, if you want to elaborate.

Speaker #3: Yes. So, Ryan, as Pedro mentioned earlier, there are some small changes—or some changes—we're making in the program. I think all of that ties to the information gathering and the community feedback we continue to get.

Speaker #3: But I think, Pedro, if you want to elaborate.

Speaker #4: Yeah, happy to. And sorry, Ryan. There was just a little bit of static when you were asking the question. So I had a hard time picking it up.

Pedro Pizarro: Yeah, happy to. Sorry, Ryan, it was just a little bit of static when you were asking the question, so I had a hard time picking it up. Yeah, so we made a couple of modifications to the WRCP program. One is to provide some added support for tenants. The original protocol provided three months of compensation at the actual rent level that the tenants were paying prior to the event. But as we dug into this more and got more feedback, it became clear that there was at least some number of tenants in Altadena who perhaps had been longer-term tenants and were continuing to pay rents that were under market levels.

Speaker #1: But as we dug into this more and got more feedback , it became clear that there was at least some number of tenants in Altadena who perhaps had been longer term tenants and were continuing to pay rents that were under market levels .

Speaker #4: Yeah, so we made a couple of modifications to the WRCP program. One is to provide some added support for tenants the original protocol provided three months of compensation at the actual rent level that the tenants were paying prior to the event.

Speaker #1: So now we're making an adjustment to use the the calculator , the engine that we have to , you calculate or estimate fair market value for rent and allowing tenants to recover three months of either the higher of their actual rent payments or that fair market value .

Speaker #4: But as we dug into this more and got more feedback, it became clear that there was at least some number of tenants in Altadena who perhaps had been longer-term tenants and were continuing to pay rents that were under market levels.

Speaker #1: Rent . The second adjustment we made was , you might recall that the program provided support for attorney fees , voluntary program . You can participate without an attorney , but if claimants choose to use an attorney , then the program provided 10% of net damages as an increment to help cover attorney fees .

Speaker #4: So now we're making an adjustment to use the calculator, the engine that we have to calculate or estimate fair market value for a rent.

Pedro Pizarro: So now we're making an adjustment to use the calculator or the engine that we have to, you know, calculate or estimate fair market value for rent, and allowing tenants to recover three months of either the higher of their actual rent payments or that fair market value rent. The second adjustment we made was, you might recall that the program provided support for attorney fees because it's a voluntary program, you can participate without an attorney, but if, you know, claimants choose to use an attorney, then the program provided 10% of net damages as an increment to help cover attorney fees.

Speaker #4: And allowing tenants to recover three months of either the higher of their actual rent payments or that fair market value rent. The second adjustment we made was, you might recall that the program provided support for attorney fees. Because it’s a voluntary program, you can participate without an attorney.

Speaker #1: You know , we were also hoping that the attorney community would recognize that this program represents a fairly straightforward approach and hopefully less work for , you know , less effort for them .

Speaker #4: But if claimants choose to use an attorney, then the program provided 10% of net damages as an increment to help cover attorney fees. We were also hoping that the attorney community would recognize that this program represents a fairly straightforward approach and hopefully less work for less effort for them.

Speaker #1: And perhaps they could provide lower fees for for clients . But as we got feedback from the clients themselves , from the claimants themselves , we decided it was appropriate to increase the What we're providing for legal fees to 20% from the 10% of net damages .

Pedro Pizarro: We were also hoping that the attorney community would recognize that this program represents a fairly straightforward approach and hopefully less work for, you know, less effort for them, and perhaps they could provide lower fees for clients. But as we got feedback from the clients themselves, from the claimants themselves, we decided that it was appropriate to increase what we're providing for legal fees to 20% from the 10% of net damages. Both of these changes will be applied retroactively as well. So we have claimants who have already received their compensation or, you know, have already received an offer. We'll be making the adjustment for them automatically and won't require effort on their part.

Speaker #1: Both of these changes will be applied retroactively as well . So we have claimants who have already received their compensation or have already received an offer .

Speaker #4: And perhaps they could provide lower fees for clients. But as we got feedback from the clients themselves, from the claimants themselves, we decided it was appropriate to increase what we're providing for the legal fees to 20% from the 10% of net damages.

Speaker #1: We'll be making the adjustment for them automatically and won't require effort on their part .

Speaker #2: And Ryan , I think you asked about would we continue to tweak to meet our objectives . The objective here is to have fair , timely compensation , which also helps preserve the funds in the wildfire fund .

Speaker #4: Both of these changes will be applied retroactively as well. So, we have claimants who have already received their compensation or have already received an offer.

Speaker #2: You know , reducing interest costs , reducing escalation , etc. . The the objective that is the objective . And then in terms of additional changes , we really are trying to respond to the community , but we think we've gotten a lot of feedback at this .

Speaker #4: We'll be making the adjustment for them automatically and it won't require any effort on their part.

Speaker #3: And Ryan, I think you asked about whether we would continue to tweak to meet our objectives. The objective here is to have fair, timely compensation, which also helps preserve the funds in the wildfire funds.

Maria Rigatti: Ryan, I think, you know, you asked about would we continue to tweak to meet our objectives. The objective here is to have fair, timely compensation, which also helps preserve the funds in the Wildfire Fund, you know, reducing interest costs, reducing escalation, et cetera. The objective, that is the objective. And then, in terms of additional changes, we really are trying to respond to the community, but we think we've gotten a lot of feedback at this point.

Speaker #8: Point .

Speaker #5: Thank you .

Speaker #1: I , our advisors on this also , you know , have highlighted the importance of having a stable , understandable program . So , you know , I don't think it would be helpful to have a constant stream of changes either .

Speaker #3: Reducing interest, cost, reducing escalation, etc. The objective that is the objective. And then in terms of additional changes, we really are trying to respond to the community, but we think we've gotten a lot of feedback at this point.

Speaker #9: Thank you .

Speaker #8: Yeah .

Speaker #1: Thanks , Ryan .

Speaker #8: Thank you .

Speaker #4: Thank you . The next question comes from Aidan Kelly with JP Morgan . Your line is open .

Speaker #4: And you think. I think our advisors on this also have highlighted the importance of having a stable understandable program. So I don't think it would be helpful to have a constant stream of changes either.

Aidan Kelly: Thank you.

Ryan Levine: Thank you.

Pedro Pizarro: I think our advisors on this also, you know, have highlighted the importance of having a stable, understandable program. So, you know, I don't think it would be helpful to have a constant stream of changes either.

Speaker #10: Hey . Good afternoon .

Speaker #1: Afternoon .

Speaker #10: Yeah , good afternoon . Just wondering if you could elaborate a bit more on the LA District Attorney's investigation to determine whether criminal violations occurred ?

Speaker #7: Thank you.

Aidan Kelly: Thank you.

Ryan Levine: Thank you.

Speaker #4: Yeah. Thanks, Ryan.

Speaker #10: I noticed the new 10-K disclosure here , so would appreciate any color on how you think about the scope of this investigation . Any thoughts on the potential magnitude ?

Pedro Pizarro: Yeah. Thanks, Ryan.

Speaker #2: Thank you.

Maria Rigatti: Thank you.

Speaker #3: Thank you. The next question comes from Aiden Kelly with JPMorgan. Your line is open.

Operator: Thank you. The next question comes from Aiden Kelly with JP Morgan. Your line is open.

Speaker #1: Yeah . Thanks for the question . And as you might imagine , you know , investigations , I think are often to be expected when you have events of the scale of the the Eaton Fire .

Speaker #8: Hey, good afternoon. Yeah, just wanted to say good afternoon. Just wondering if you could elaborate a bit more on the LA District Attorney's investigation to determine whether criminal violations occurred.

Aidan Kelly: Hey, good afternoon.

Pedro Pizarro: Afternoon.

Aidan Kelly: Yeah, good afternoon. Just wondering if you could elaborate a bit more on the LA District Attorney's investigation to determine whether criminal violations occurred. I noticed a new 10-K disclosure here, so would appreciate any color on how you think about the scope of this investigation. Any thoughts on the potential magnitude?

Speaker #8: I noticed the new 10-K disclosure here, so I would appreciate any color on how you think about the scope of this investigation. Any thoughts on the potential magnitude?

Speaker #1: We don't have a lot of visibility into timing , etc. certainly our team will be collaborating with the attorney's office as as they ask for any steps .

Speaker #4: Yeah, thanks for the question. And as you might imagine, investigations I think are often to be expected when you have events of the scale of the Eton fire.

Pedro Pizarro: Yeah, thanks for the question. As you might imagine, you know, investigations, I think, are often to be expected when you have events of the scale of the Eaton fire. We don't have a lot of visibility into timing, et cetera. Certainly, our team will be collaborating with the attorney's office as, you know, as they ask for any steps. But importantly, as we continue our investigation, you know, and I think as I said earlier, as we look at the events here, you know, we continue to be confident that SCE will be able to make a good faith showing that, you know, its actions were those of a reasonable utility operator.

Speaker #1: But importantly , as we continue on investigation . And I think as I as I said earlier , as we look at these events here , you know , we continue to be confident that SC will be able to make a good faith , showing that , you know , its actions were those of a reasonable utility operator .

Speaker #4: We don't have a lot of visibility into timing, etc. Certainly, our team will be collaborating with the attorney's office as they ask for any steps.

Speaker #1: And so that gives us a lot of comfort as we look at , you whether it's that investigation you mentioned or just the broader investigations into the event .

Speaker #4: But importantly, as we continue our own investigation, and I think as I said earlier, as we look at the events here, we continue to be confident that SCA will be able to make a good faith showing that its actions were those of a reasonable utility operator.

Speaker #1: And , you know , looking ahead to , you know , ultimately looking for the CPUc to affirm Prudency in the future

Speaker #10: Understood . Thanks for the color . There . And just one last one for me . Can you confirm whether the out of service transmission tower in Eaton was grounded or not

Speaker #4: And so that gives us a lot of comfort as we look at whether it's that investigation you mentioned, or just broader investigations into the event.

Pedro Pizarro: And so that gives us a lot of comfort as we, you know, look at, you know, whether it's that investigation you mentioned or just the broader investigations into the event and, you know, looking ahead to, you know, ultimately, looking for the CPUC to affirm CPUC, SCE's prudency in the future.

Speaker #4: And looking ahead to ultimately looking for the CPUC to affirm CPU SCA's prudency in the future.

Speaker #1: We have we have shared before that that transmission line , the idle line , was grounded at both ends . We have also shared that we had photographic evidence at the far end of the line that showed some anomalies and potential issues with that grounding .

Speaker #8: Understood. Thanks for the color there. And just one last one for me. Can you confirm whether the out-of-service transmission tower in Eton was grounded or not?

Aidan Kelly: Understood. Thanks for the color there. And just one last one for me. Can you confirm whether the out-of-service transmission tower in Eaton was grounded or not?

Pedro Pizarro: We have shared before that transmission line, the idle line, was grounded at both ends. We have also shared that we had photographic evidence at the far end of the line that showed some anomalies and potential issues with that grounding. And we've been transparent about all of this from early on. We have also shared that as you take a look at practices across the utility industry, there really is no common practice or standard for grounding of idle lines. In fact, we've identified at least a couple of utilities that choose not to ground idle lines at all.

Speaker #4: We have shared before that that transmission line—the idle line—was grounded at both ends. We have also shared that we had photographic evidence at the far end of the line that showed some anomalies and potential issues with that grounding.

Speaker #1: And we've been transparent about all of this from from early on . We have also shared that as you take a look at practices across the utility industry , there really is no common practice or standard for grounding of idle lines .

Speaker #1: In fact , we identified at least a couple of utilities that choose not to ground idle lines at all in an abundance of caution and in the spirit of continuous improvement .

Speaker #4: And we've been transparent about all of this from early on. We have also shared that, as you take a look at practices across the utility industry, there really is no common practice or standard for grounding of idle lines.

Speaker #1: And it's one of our values , as a company as we continue to learn and or hypothesize to about what may or may not have happened here , you might also recall that it a month or two after the event , we also disclosed publicly that we were going .

Speaker #4: In fact, we've identified at least a couple of utilities that choose not to ground idle lines at all. In an abundance of caution, and in the spirit of continuous improvement—and it's one of our values as a company—as we continue to learn and, or hypothesize, too, about what may or may not have happened here, you might also recall that, probably, it was a month or two after the event, we also disclosed publicly that we were going—in fact, we already did this.

Pedro Pizarro: In an abundance of caution and in the spirit of continuous improvement, and it's one of our values as a company, as we continue to learn and or hypothesize, too, about what may or may not have happened here, you might also recall that, probably a month or two after the event, we also disclosed publicly that we were going. In fact, we already did this, change SCE's protocols and policies to now require the grounding of idle lines at not only the endpoints, but for longer lines, at least every two miles. And that could be shorter, you know, depending on the particular topography, you know, of any line. It's probably more than you wanted on idle lines there, but I want to make sure you had the complete picture.

Speaker #1: In fact , we already did this change X protocols and policies to now require the grounding of idle lines at not only the endpoints , but for longer lines .

Speaker #1: At least every two miles . And that could be shorter . You know , depending on the particular topography . You know , of any line .

Speaker #1: It's probably more than you wanted on idle lines there . But I'm sure you have the complete picture .

Speaker #4: Change SCA's protocols and policies to now require the grounding of idle lines at not only the endpoints, but for longer lines at least every two miles.

Speaker #10: I appreciate it . Appreciate it . Thank you . I'll leave it there . Thanks .

Speaker #1: Thanks , Aidan .

Speaker #4: Thank you . And that was our last question . I will now turn the call back over to Sam Ramraj .

Speaker #4: And that could be shorter, depending on the particular topography of any line. So probably more than you wanted on idle lines there, but I want to show you the complete picture.

Speaker #3: Thank you for joining us . This concludes the conference call Have a good rest of the day . You may now disconnect .

Speaker #8: Oh, I appreciate it. Appreciate it. Thank you. I'll leave it there. Thanks.

Aidan Kelly: Oh, I appreciate it. Appreciate it. Thank you. Always there. Thanks.

Speaker #4: Thanks, Aiden.

Pedro Pizarro: Thanks, Aiden.

Speaker #3: Thank you. And that was our last question. I will now turn the call back over to Sam Ramraj.

Operator: Thank you. That was our last question. I will now turn the call back over to Sam Ramraj.

Pedro Pizarro: Thank you for joining us. This concludes the conference call. Have a good rest of the day. You may now disconnect.

Speaker #4: Thank you for joining us. This concludes the conference call. Have a good rest of the day. You may now disconnect.

Sam Ramraj: Thank you for joining us. This concludes the conference call. Have a good rest of the day. You may now disconnect.

Operator: Thank you. This concludes today's conference call. You may now disconnect at this time and have a good rest of your day.

Q4 2025 Edison International Earnings Call

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