Edison International (EIX)

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. -

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. -

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. -

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. -

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. -

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. -

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. -

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. -

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. -

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. -