Edison International

Southern California Edison

Total Revenue

17adff80412ab47d999c1890cc5830da20fba1af4abe5b221b266ea927b38b86

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from Debt (USD, millions)

Repayments of Debt (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

1922655d5abb0b2b32dd2738c228da32415336b07b147316585ddccd415929bf

1. With the uncertainties surrounding the timing of the 2025 General Rate Case decision, how confident are you in receiving a final decision in the first half of next year, and what are the potential implications for your capital plan and earnings growth if there are delays?

2. Considering the upcoming cost of capital proceedings amid rising interest rates, how do you plan to secure favorable cost of capital determinations, and what impact could this have on your 5% to 7% earnings growth projections through 2028?

3. Given the significant capital investments required for your upcoming ERP and AMI projects totaling over $2 billion, what challenges do you anticipate in obtaining regulatory approval, and how might delays affect your capital expenditure plans and earnings trajectory?

4. With over $2 billion in FERC transmission projects that have long lead times extending beyond 2028, how are you managing potential regulatory and construction delays, and what effects could these delays have on meeting electrification demands and your future earnings?

5. In light of the recent increase in the nuclear decommissioning trust estimate to $2.3 billion, are there any potential risks to your future cash flows or unforeseen liabilities, and how do you plan to address these to maintain your financial stability?

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Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD/share)

Earnings Per Share (EPS) - Diluted (USD/share)

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### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **2024 Core EPS Guidance**: Narrowed to **$4.80 to $5.00**  **[EIX_3404418_4]** **[EIX_3404418_1]** .
  2. **2025 Core EPS Guidance**: Provided in the range of **$5.50 to $5.90**  **[EIX_3404418_4]** .
  3. **EPS Growth Forecast**: Expected to grow earnings by **5% to 7%** through 2028  **[EIX_3404418_4]** **[EIX_3404418_1]** .
  4. **Impact of TKM Settlement**: Expected to add about **$0.44** to the 2025 core EPS and provide an ongoing annual benefit of **$0.14** beyond 2025  **[EIX_3404418_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core EPS Guidance for 2024**: Reaffirmed in the range of **$4.75 to $5.05**  **[EIX_3394343_1]** **[EIX_3394343_5]** .
  2. **EPS CAGR**: Aiming for a **5% to 7% EPS compound annual growth rate (CAGR)** through 2028  **[EIX_3394343_1]** .
  3. **Equity Needs**: **$400 million in total** from 2025 through 2028  **[EIX_3394343_5]** .
  4. **System Average Rate**: **$0.267 per kilowatt hour**, with projected increases aligned with inflation  **[EIX_3394343_1]** .
  5. **Load Growth**: **2% to 3% annual sales growth**, with an inflection point above 3% beginning in 2028  **[EIX_3394343_1]** .
  6. **Capital and Rate Base Forecasts**: Consistent with previous disclosures  **[EIX_3394343_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Core EPS Guidance for 2024**: Affirmed range of **$4.75 to $5.05**  **[EIX_3381566_4]** .
  2. **Long-term EPS Growth Targets**: **5% to 7%** for 2021-2025 and 2025-2028  **[EIX_3381566_1]** .
  3. **Equity Needs**: About **$100 million of equity per year through 2028**  **[EIX_3381566_4]** .
  4. **Capital Investment**: More than **$6 billion over the next five years** in wildfire mitigation  **[EIX_3381566_1]** .
  5. **Rate Base Growth**: Projected range of **6% to 8%**  **[EIX_3381566_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **2024 EPS Guidance**: Introduced range of **$4.75 to $5.05**  **[EIX_3374603_1]** .
  2. **Long-term EPS Growth Target**: **5% to 7%** for 2021-2025 and 2025-2028  **[EIX_3374603_1]** .
  3. **2025 Core EPS Growth**: Rate base projected to increase by **11% to 14%** in 2025  **[EIX_3374603_4]** .
  4. **Dividend**: Raised by **5.8%**, marking the 20th consecutive annual increase  **[EIX_3374603_1]** .
  5. **Capital Investment Plan**: **$38 billion to $43 billion** from 2023 through 2028  **[EIX_3374603_3]** .
  6. **Wildfire Mitigation**: **90%** of distribution lines in high fire risk areas to be hardened by end of 2025  **[EIX_3374603_15]** .

508b6a2b41155e263fca7962bb7757f5fa272d0f94bfbabb564fcf74eb300ede

| Name             | Position                                      | Start Date         | Short Bio                                                                                                                                          |
|------------------|-----------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Pedro J. Pizarro | President and CEO of EIX                      | 2016               | Pedro J. Pizarro has been serving as the President and CEO of Edison International since 2016. He holds a B.S. from Harvard and a Ph.D. from Caltech. He has over 24 years of experience in the energy industry  **[0001558370-24-003398_eix-20240425xdef14a.htm:10]** **[0001558370-23-004096_eix-20230427xdef14a.htm:12]** . |
| Maria Rigatti    | EVP and CFO of EIX                            | N/A                | Maria Rigatti serves as the Executive Vice President and Chief Financial Officer of Edison International. Specific details regarding her start date are not provided. |
| Adam S. Umanoff  | EVP, General Counsel, and Corporate Secretary | January 2024       | Adam S. Umanoff serves as the Executive Vice President, General Counsel, and Corporate Secretary at Edison International. He became the Corporate Secretary in January 2024 while continuing his role as EVP and General Counsel  **[0001558370-24-003398_eix-20240425xdef14a.htm:66]** . |
| Steven D. Powell | President and CEO of SCE                      | December 1, 2021   | Steven D. Powell is the President and CEO of Southern California Edison, a subsidiary of Edison International. He assumed the role on December 1, 2021, after serving as an EVP at SCE  **[0001558370-24-003398_eix-20240425xdef14a.htm:66]** **[0001558370-23-004096_eix-20230427xdef14a.htm:68]** . |
| J. Andrew Murphy | President and CEO of Edison Energy            | July 10, 2023      | J. Andrew Murphy became the President and CEO of Edison Energy on July 10, 2023, and served as EIX Senior Vice President through July 7, 2023  **[0001558370-24-003398_eix-20240425xdef14a.htm:66]** . |

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**Annual guidance for FY 2024:**
- **Core EPS Guidance for 2024**: $4.75 to $5.05  **[EIX_3394343_1]** **[EIX_3394343_5]**  (no change from $4.75 to $5.05  **[EIX_3381566_4]** )  
- **EPS CAGR**: 5% to 7%  **[EIX_3394343_1]**  (no change from 5% to 7%  **[EIX_3381566_1]** )  
- **Equity Needs**: $400 million in total from 2025 through 2028  **[EIX_3394343_5]**  (no change from about $100 million per year through 2028  **[EIX_3381566_4]** )  
- **Capital Investment**: Consistent with previous disclosures  **[EIX_3394343_5]**  (no change from more than $6 billion over the next five years  **[EIX_3381566_1]** )  
- **Rate Base Growth**: Consistent with previous disclosures  **[EIX_3394343_5]**  (no change from 6% to 8%  **[EIX_3381566_3]** )  
- **System Average Rate**: $0.267 per kilowatt hour  **[EIX_3394343_1]**  (no prior guidance)  
- **Load Growth**: 2% to 3% annual sales growth  **[EIX_3394343_1]**  (no prior guidance)  

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| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 2002  **[0000827052-24-000013_eix-20231231x10k.htm:84]**    | Present  | Current auditor   |

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- **Earnings per share are significantly impacted by wildfire-related debt interest expenses, amounting to $0.61 per share**, and the company is not assuming any recovery in their long-term EPS forecast, adding uncertainty to future earnings. \[4\], \[14\]
- **Earnings growth in 2025 heavily relies on prior spending true-ups and non-recurring items**, which may not continue in subsequent years, potentially leading to slower growth or declines in earnings beyond 2025. \[9\], \[12\]
- There is **downside risk to the assumed transmission Return on Equity (ROE) of 10.3%**, as regulatory decisions or changes in the interest rate environment could lead to lower ROEs, negatively impacting future earnings. \[11\]

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- Total Revenue: $4,310 million (+9% YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   
- Operating Income (EBIT): $932 million (+27% YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   
- Net Income: $626 million (+**67%** YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   
- Earnings Per Share (Basic): $1.14 (+24% YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   
- Cost of Goods Sold: $1,234 million (+7% YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   
- Interest Expense: $338 million (-14% YoY)  **[0000827052-23-000065_eix-20230630x10q.htm:35]** **[0000827052-23-000065_eix-20230630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:35]** **[0000827052-24-000055_eix-20240630x10q.htm:32]** **[0000827052-24-000055_eix-20240630x10q.htm:55]**   

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1. **Litigation Charges Revision**  
   **Q:** Will there be further revisions to litigation charges?  
   **A:** Management explained that while they reassess estimates each quarter, their focus is on completing the process and getting this fully behind them. They highlighted that **97%** of the TKM individual plaintiffs and **86%** of the Woolsey individual plaintiffs have been settled, indicating significant progress toward resolution.  **[EIX_3381566_5]** 

2. **Balance Sheet Impact and FFO/Debt Ratios**  
   **Q:** How does the recent charge affect FFO to debt ratios?  
   **A:** The latest S&P report shows an FFO to debt ratio just over **14%**, which is within the downward range. Management's objective remains at **15% to 17%**, and they plan to issue **$100 million** of equity annually through 2028 to improve credit metrics.  **[EIX_3381566_6]** 

3. **Capital Plans for NextGen ERP and AMI 2.0**  
   **Q:** When will applications for NextGen ERP and AMI 2.0 be filed?  
   **A:** The NextGen ERP application is expected in late **2024**, and the AMI 2.0 (smart meter) application in **2025**, totaling about **$2 billion** in capital. Financing will adhere to the authorized capital structure, aiming to minimize incremental equity by staying within credit metric ranges.  **[EIX_3381566_8]** 

4. **Transmission CapEx Trends**  
   **Q:** What are the trends in transmission CapEx through Cal ISO?  
   **A:** Management noted that recent California ISO plans include about **$2 billion** of capital across **17** projects where SCE has the right of first refusal. These projects present significant investment opportunities for SCE in the coming years.  **[EIX_3381566_9]** 

5. **Wildfire Season Expectations**  
   **Q:** What are expectations for wildfire conditions this summer?  
   **A:** While this season may appear average or below average in risk, management anticipates increasing climate-driven wildfire risks due to climate change. SCE has significantly reduced wildfire risk by **85% to 88%** through grid hardening and other measures.  **[EIX_3381566_10]** 

6. **O&M Cost Increases**  
   **Q:** Why did O&M expenses increase year-over-year?  
   **A:** The rise in O&M costs is mainly due to timing differences and when expenses are booked, often influenced by weather conditions. There is no change in the cost structure, and the company remains focused on streamlining processes and reducing costs over time.  **[EIX_3381566_13]** 

7. **National Wildfire Mitigation Initiatives**  
   **Q:** Are there opportunities to streamline wildfire mitigation costs nationally?  
   **A:** Management is sharing best practices with the industry, recognizing that wildfire risk is now a national issue. As more utilities adopt similar technologies and strategies, there may be opportunities to reduce costs through greater scale and collaboration.  **[EIX_3381566_14]** 

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- **Uncertainty around the recovery of legacy wildfire costs**, which could impact EIX's financial position. The outcome of the legacy wildfire cost recovery application remains uncertain, and management cannot comment on potential settlements.  **[EIX_3394343_9]** ,  **[EIX_3394343_8]**
- **Potential need for additional equity financing or debt** to fund accelerated capital expenditures due to faster-than-expected load growth. Management indicated that financing these investments depends on timing and may require actions beyond the existing financing plan.  **[EIX_3394343_10]** ,  **[EIX_3394343_16]**
- **Unresolved issues in the 2025 General Rate Case (GRC)**, with only **19% of O&M and 8% of capital requests settled**, leaving significant portions still under debate, which could affect future rate base growth and revenues.  **[EIX_3394343_7]** ,  **[EIX_3394343_6]**

283761d3562dbc04b7105802d66d64bb27051a3332c15c3ab163625f31d980c4

- **Edison International increased its best estimate of losses by $490 million due to fewer plaintiffs dropping litigation in the Woolsey Fire mediation program, indicating higher than expected liabilities.**  **[EIX_3381566_7]** **[EIX_3381566_5]**
- **Operating and Maintenance (O&M) costs have increased year-over-year due to higher inspection and maintenance costs, potentially impacting earnings.**  **[EIX_3381566_13]**
- **FFO to debt ratio is just over 14%, close to S&P's downgrade threshold, indicating tight financial metrics and potential pressure on credit ratings.**  **[EIX_3381566_6]**

1aec59c3430eb44cbb3ce6f9e2254aa10119855d2e959f1d67b63cc355d3ca9a

- **Edison International is experiencing load growth materializing faster than expected**, with a 35% increase in the 10-year load growth forecast compared to just two years ago. This acceleration is driven by increased customer demand across electrification, residential housing, and commercial developments, leading to **higher infrastructure investment opportunities**.  **[EIX_3394343_12]**
- **The company remains confident in achieving its 2024 EPS guidance**, reaffirming that they are "very confident in our guidance" and "right on track," indicating strong financial performance and potential for earnings growth.  **[EIX_3394343_10]**
- **Potential improvements in credit metrics through wildfire cost recoveries**, where every **$1 billion recovered improves credit metrics by 40 to 50 basis points**, offering financial flexibility and the possibility of lower financing costs.  **[EIX_3394343_9]**

2c22917316a10a2f5aad8fe8e746b4c40fd4992229de1def7d33d59dce6cd548

- Edison International anticipates significant earnings growth in **2025** due to a **$1.78 increase in rate base earnings**, driven by the **2025 GRC** and prior spending true-ups, which will continue to contribute to earnings beyond 2025.  **[EIX_3374603_10]** **[EIX_3374603_21]**
- The company has a strong balance sheet with capacity to fund additional capital expenditures, targeting a **15% to 17% FFO-to-debt ratio**, and requires only **minimal equity funding** of **$100 million per year**, indicating financial strength and ability to pursue growth opportunities without significant equity dilution.  **[EIX_3374603_11]**
- Edison International is poised to benefit from substantial potential value creation opportunities not factored into guidance, including over **$2 billion** of FERC transmission projects where SCE is the incumbent transmission owner, and potential cost recoveries for wildfire events.  **[EIX_3374603_17]** **[EIX_3374603_9]**

6feb62a46774813de89e1dfaefc9bcd58a072f60faf23d1f7ef4aa7b5288aeb9

1. **Wildfire Claims Recovery**  
   **Q:** How will wildfire claims affect earnings and recovery?  
   **A:** Edison expects wildfire claims debt to cause an earnings drag of **$0.61** in both 2024 and 2025. They have not assumed any recovery in their long-term EPS forecast but have submitted a compelling case and are making progress. Wildfire claims payments should be substantially complete by the end of 2024, stabilizing related debt expenses.  **[EIX_3374603_7]** **[EIX_3374603_19]** **[EIX_3374603_22]** 

2. **Cost of Capital Mechanism Impact**  
   **Q:** How does the cost of capital mechanism affect earnings?  
   **A:** The cost of capital mechanism, triggered by higher interest rates, acts as a hedge against interest rate changes. Edison plans to reinvest these dollars into the business, focusing on long-term affordability and reliability. This reinvestment offsets potential earnings benefits from the mechanism in 2024 and 2025.  **[EIX_3374603_8]** **[EIX_3374603_18]** **[EIX_3374603_26]** 

3. **2025 EPS Growth Drivers**  
   **Q:** What drives EPS growth between 2024 and 2025?  
   **A:** The increase in earnings is driven by **rate base growth**, including prior spending true-ups and non-GRC applications. The **$0.37** prior spending true-up in the 2025 EPS bridge is part of rate base earnings and will continue in future years. Operational variances and wildfire debt have minimal impact on year-over-year growth.  **[EIX_3374603_8]** **[EIX_3374603_10]** **[EIX_3374603_21]** 

4. **Wildfire Mitigation Spending**  
   **Q:** Will wildfire mitigation spend continue or change?  
   **A:** Edison plans to have **90%** of distribution lines in high fire risk areas hardened by the end of 2025, with wildfire mitigation spending stabilizing. They will apply the same standards if additional areas are designated high-risk in the future.  **[EIX_3374603_15]** 

5. **Balance Sheet and Equity Needs**  
   **Q:** How will increased CapEx affect balance sheet and equity?  
   **A:** Edison is committed to its balance sheet strength and plans to fund capital expenditures within its authorized capital structure. They aim to maintain an FFO-to-debt ratio in the **15% to 17%** range and will assess equity needs based on financial metrics.  **[EIX_3374603_11]** 

6. **Transmission Projects Opportunity**  
   **Q:** What is the potential impact of new transmission projects?  
   **A:** Edison is the incumbent transmission owner for **17 projects totaling over $2 billion**, largely planned post-2028. They are awaiting decisions on two competitive bids expected in the spring. These projects represent significant long-term growth opportunities.  **[EIX_3374603_9]** **[EIX_3374603_17]** 

7. **Asset Sales of Tower Attachments**  
   **Q:** What is the status of tower attachment asset sales?  
   **A:** Edison is awaiting the scoping memo from the commission and hopes to proceed soon. The sale could occur this year or extend into 2025, depending on the regulatory schedule.  **[EIX_3374603_14]** 

8. **Building Electrification Efforts**  
   **Q:** How will you pursue building electrification after proposal denial?  
   **A:** Despite the denial of their application, Edison views building electrification as essential for meeting state decarbonization goals. They are exploring other strategies, including different funding sources, to address this opportunity.  **[EIX_3374603_24]** 

9. **AI Cost-Cutting Opportunities**  
   **Q:** How significant are AI-driven cost-cutting opportunities?  
   **A:** Edison sees AI as a **long-term opportunity** with significant potential for efficiency gains. While early initiatives are showing impact, it will take time for these technologies to mature and materially contribute to cost savings.  **[EIX_3374603_16]** 

10. **Future Earnings Outlook**  
    **Q:** What is the expected earnings profile from 2025 to 2028?  
    **A:** Edison expects earnings growth driven by rate base growth, targeting an EPS growth rate of **5% to 7%** through 2028. Wildfire claims debt expense is stabilizing, and O&M efficiencies are not significant drivers in this period.  **[EIX_3374603_27]** 

11. **Interest Expense Stability**  
    **Q:** Why is interest expense stable despite claims funding?  
    **A:** Interest expense remains at **$0.61** in both 2024 and 2025 due to minimal refinancing needs and the stabilization of wildfire claims debt. Most claims payments will be completed by the end of 2024, limiting further debt increases.  **[EIX_3374603_12]** 

12. **Transmission ROE Concerns**  
    **Q:** Is there risk of a lower transmission ROE?  
    **A:** Edison is comfortable with the assumed **10.3%** transmission ROE from a black-box settlement. While intervenors could request a new rate case, the current interest rate environment supports their position.  **[EIX_3374603_20]** 

13. **Woolsey Claim Deadline Impact**  
    **Q:** How does the Woolsey claim deadline affect losses?  
    **A:** The process for filing Woolsey fire claims has ended. Edison is evaluating the responses and will update on the impact to total losses in the next earnings call.  **[EIX_3374603_23]** 

14. **Earnings Drag Clarification**  
    **Q:** Will wildfire debt drag be offset by cost recovery?  
    **A:** Edison has not assumed any recovery from the cost recovery application in earnings forecasts, so the **$0.61** earnings drag from wildfire debt is not offset. Potential recovery could provide a future benefit.  **[EIX_3374603_19]** 

15. **Settling Claims Impact**  
    **Q:** How did settling claims affect the reserve increase?  
    **A:** A recent **$65 million** reserve increase was largely due to one claim. Edison expects to complete wildfire claims payments by the end of 2024.  **[EIX_3374603_13]** **[EIX_3374603_12]** 

7144e593d9b651b306ef595660773e6039d69c15ab7dc7ac70ce34f2eaabdaa4

- Edison International has made significant progress in resolving legacy wildfire claims, settling **97% of TKM individual plaintiff claims** and **86% of Woolsey individual plaintiff claims**, and is on track to file the Woolsey cost recovery application in Q3, enhancing financial certainty.  **[EIX_3381566_4]** ,  **[EIX_3381566_5]**
- The company maintains a strong financial position with limited equity needs, committed to only **about $100 million of equity per year through 2028**, and is improving its FFO to debt ratio into the target range, as recognized by **S&P affirming their ratings and lowering the FFO to debt downgrade threshold to 14%**, noting the company's decreasing business risk.  **[EIX_3381566_6]** ,  **[EIX_3381566_4]** ,  **[EIX_3381566_11]**
- Southern California Edison's substantial investments in grid hardening and wildfire mitigation have significantly reduced wildfire risk by **85% to 88%**, and the company continues to refine and improve mitigation strategies, leading to decreased business risk and operational reliability, and recognition from S&P, supporting long-term stability.  **[EIX_3381566_10]** ,  **[EIX_3381566_9]** ,  **[EIX_3381566_2]**

db3678607c255aafac5a30ae1ba06ea5df0320a64b25d78d2afe05d52799be0e

1. **Offsetting ROE Changes in 2025**  
   **Q:** How will you offset the ROE changes in 2025?  
   **A:** We are managing the impact of the ROE decrease by examining financing costs and reinvestment rates. We've found cost benefits across the board, including operational variances. We also have flexibility to adjust the timing and amount of our investments, such as pulling forward O&M costs into 2024 to benefit customers and create headroom in 2025.  **[EIX_3404418_8]** 

2. **Reducing Equity-Like Instruments**  
   **Q:** Can you reduce equity or hybrid securities due to improved metrics?  
   **A:** With the improved balance sheet from the TKM settlement and memo account recovery, we might not need the **$100 million per year** of equity planned. We will also consider addressing the hybrids, like preferreds and junior subordinated notes, but those come into play in **2026 and beyond**. This could be accretive to our plan.  **[EIX_3404418_7]** 

3. **Load Growth and CapEx Plans**  
   **Q:** How are you addressing load growth materializing sooner than expected?  
   **A:** We prepared our GRC forecast when we were already seeing accelerated load growth. We have the ability to reprioritize capital to meet pressing needs. If more capital support is needed beyond the GRC decision, we have avenues like the **SP410 mechanism** or other rate case processes to pursue additional funding.  **[EIX_3404418_6]** 

4. **GRC Decision Timing and Impact**  
   **Q:** When do you expect the GRC decision, and what's its impact?  
   **A:** We anticipate the GRC decision in the **first half of next year**. All parties have met deadlines, and we're waiting on the ALJ's proposed decision. While procedural settlements are behind us, we've resolved several items to streamline the remaining issues. The decision will provide clarity on our capital plans and rate trajectory.  **[EIX_3404418_10]** 

5. **Wildfire Proceedings and Recovery**  
   **Q:** How might Woolsey wildfire recovery differ from TKM's 60%?  
   **A:** Each wildfire case is specific. TKM involved two ignition points with different circumstances. Woolsey is different—a single ignition point linked to our infrastructure, but we believe SCE was fully prudent. Thus, outcomes may differ, and we can't assume the same recovery percentage as TKM.  **[EIX_3404418_17]** 

6. **Potential Mid-Cycle Cost of Capital Changes**  
   **Q:** Can you assure investors against mid-cycle cost of capital changes?  
   **A:** We were disappointed with the recent decision but view it in the context of California's overall regulatory framework, which has strengthened over the past half-decade. While disagreements occur, the CPUC remains committed to maintaining utilities' financial health. We'll continue to advocate for the **California premium** in future proceedings.  **[EIX_3404418_9]** 

7. **Impact of Electricity Prices on Growth Plans**  
   **Q:** Could higher electricity prices affect your growth plans?  
   **A:** The endpoint remains the same due to California's firm commitment to **net zero by 2045**. While fluctuations in energy prices might affect adoption rates in the short term, we believe electrification is the most affordable and reliable path forward. Our growth plans account for these dynamics.  **[EIX_3404418_22]** 

8. **Role of Gas in California's Future**  
   **Q:** How long will natural gas generation be part of California's energy mix?  
   **A:** California will need clean firm generation, including resources like next-generation geothermal or gas with carbon capture. Many of these technologies aren't yet mature, so existing natural gas generation serves as an insurance policy. By **2045**, we expect only **4% to 5%** of electricity will come from gas resources, running significantly less than today.  **[EIX_3404418_15]** 

9. **Nuclear Decommissioning Trust Estimate**  
   **Q:** What drove the change in the nuclear decommissioning trust estimate?  
   **A:** We update decommissioning costs every three years as part of our regulatory process. Changes like the expected timeline for federal removal of spent fuel impact the estimate, now at **$2.3 billion** net to Edison. The trust fund is well-funded, and this change doesn't affect our financing plan.  **[EIX_3404418_13]** 

10. **Transmission CapEx Inclusion in Plan**  
    **Q:** When will the $2B FERC transmission CapEx be included in your plan?  
    **A:** We typically roll projects into our plan when we have clearer details. The FERC transmission projects, awarded in CAISO's 2022-2023 plan, mostly come online post-2028, so spending occurs beyond our current planning horizon. We'll update our plan once timing and spend are better defined.  **[EIX_3404418_18]** 

8c6a10eb404fe6aa0b09fa38d4d4e664bf25f1fa23e20526ea9ab95fd60b6670

1. **Load Growth and Incremental Investment**  
   **Q:** Is faster load growth leading to more investment through 2028?  
   **A:** Management confirms that **load growth is accelerating faster than expected** due to increased customer demand across residential, commercial, and industrial sectors. They are evaluating precise plans to determine how much **additional infrastructure will be needed**. Options to finance the incremental spending include **reprioritizing capital within the GRC cycle** and exploring **alternative funding approaches**.  **[EIX_3394343_7]** 

2. **Clarification on Load Growth Expectations**  
   **Q:** Is load growth higher than previously expected?  
   **A:** Management maintains that near-term load growth remains at **2% to 3%**, but over a **10-year forecast**, they are seeing an acceleration beyond **3%**. The increase is driven by factors such as electrification and new home starts. They are closely monitoring to see if growth surpasses prior expectations.  **[EIX_3394343_12]** 

3. **Involvement in Next-Gen Technologies**  
   **Q:** Will you participate in CPUC's procurement for next-gen technologies?  
   **A:** Management agrees with the need for **next-generation technologies** like long-duration energy storage, offshore wind, and geothermal. They are evaluating the CPUC's proposal and emphasize that these technologies need to be **de-risked** and proven to be built on a timely and affordable basis. **Effective procurement is crucial** as it impacts customer bills.  **[EIX_3394343_13]** 

4. **GRC Partial Settlement Progress**  
   **Q:** Thoughts on key debates remaining in the GRC settlement?  
   **A:** Management is pleased that the **rate base growth remains in line with their range** despite intervener positions. Partial settlements have been reached, allowing focus on a **narrower set of issues**. They believe there is opportunity to achieve outcomes beneficial to customers and note that the proceeding is **on track from a time perspective**.  **[EIX_3394343_6]** 

5. **Wildfire Cost Recovery and Settlement**  
   **Q:** Will you settle the wildfire cost application for less than 100%?  
   **A:** Management cannot comment on potential settlements but is **open to engaging with parties**. They believe the team has done a strong job demonstrating prudency in their application. Procedurally, they will either file a settlement by **August 7** or a case management statement outlining remaining issues. Hearings are scheduled for **November or January**.  **[EIX_3394343_8]** 

6. **Capital Allocation Post-Wildfire Recovery**  
   **Q:** How will wildfire recovery impact capital allocation and credit metrics?  
   **A:** The recovery of wildfire claims is expected to **improve credit metrics**, with every **$1 billion equating to a 40 to 50 basis point improvement**. Management plans to **securitize the recovery**, reallocating existing debt to rate base financing to maintain their capital structure. They will consider replacing higher-cost equity content securities with regular debt upon refinancings, while adhering to a **15% to 17% FFO to debt framework**.  **[EIX_3394343_9]** 

7. **Funding Additional CapEx Without Equity**  
   **Q:** Can you fund additional capital without issuing equity?  
   **A:** The ability to fund additional capital without issuing equity **depends on the timing** of investments. Management adheres to a **15% to 17% FFO to debt financing framework**, which will dictate financing plans. They may **reprioritize spending within the GRC** and explore other mechanisms for timely cost recovery.  **[EIX_3394343_11]** 

8. **Investment in Next-Gen ERP System**  
   **Q:** What's the investment magnitude for the next-gen ERP application?  
   **A:** Upon filing the application, management will detail the **costs and benefits** of the next-gen ERP system. The system aims to improve efficiency in financial reporting and work management. They emphasize the need to build infrastructure to meet demand while running an **efficient operation**, and assure that it doesn't compete with load growth investments.  **[EIX_3394343_14]** 

9. **Impact of EV Growth and Federal Policy**  
   **Q:** Does EV growth and federal policy affect your load forecast?  
   **A:** Management states that EV adoption is driven by **California's targets**, not federal policy. Federal incentives from the **Inflation Reduction Act** help lower transition costs for consumers. They remain focused on preserving these benefits but note that **California's commitment to EVs is unwavering** regardless of federal support.  **[EIX_3394343_15]** 

10. **Confidence in Full Year '24 Guidance**  
    **Q:** Are you trending towards the higher end of your full-year guidance?  
    **A:** Management reaffirms **confidence in their full-year '24 guidance**, remaining on track. They acknowledge that different quarters may have varying events but believe they are aligned with expectations.  **[EIX_3394343_10]** 

11. **Interpreting Cal Advocates Filing Testimony**  
    **Q:** How should we interpret only Cal Advocates filing testimony?  
    **A:** Management advises not to read too much into the initial step, noting there are opportunities for other parties to voice their views in the proceedings.  **[EIX_3394343_16]** 

6d1037f6cca23e5e95a511cc234ec5e43319c3bb9dc182aaf8d403ba3882b901

- **Load growth is materializing sooner than expected**, and Edison International is **well-positioned to capitalize on this by reprioritizing capital expenditures** and has avenues to obtain more capital support beyond the General Rate Case decision if needed.  **[EIX_3404418_6]**
- **Upcoming Enterprise Resource Planning (ERP) and Advanced Metering Infrastructure (AMI) projects** will contribute to capital expenditure plans over the next four years, **indicating additional growth opportunities** beyond 2028.  **[EIX_3404418_20]**
- **Confidence in the strength of the regulatory environment** in California, with expectations of constructive regulatory outcomes that **support the financial health of utilities and provide certainty to investors**, despite occasional setbacks.  **[EIX_3404418_10]**

1b5c0161f385827af55ecc6224d0886531c1b79dc2aedd096a06eb8a8f033f7d

Edison International (EIX)

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