Financial Data and Key Metrics Changes - Edison International reported core earnings per share (EPS) of $1.37 for Q1 2025, an increase from $1.13 in the same period last year [5][19] - The year-over-year comparison is noted as not particularly meaningful due to the lack of a decision in the 2025 general rate case [6][19] - The company remains confident in meeting its 2025 EPS guidance and achieving a core EPS compound annual growth rate (CAGR) of 5% to 7% through 2028 [6][25] Business Line Data and Key Metrics Changes - SCE's first quarter EPS includes approximately $0.30 associated with the TKM settlement approval, offset by higher interest expenses at EIX Parent and Other [20] - The utility's full general rate case (GRC) request includes about $1.4 billion of annual capital spending on wildfire mitigation and hardening an additional 1,800 miles of overhead distribution infrastructure [14] Market Data and Key Metrics Changes - The company is actively engaging with legislators and the governor's office to enhance California's regulatory framework regarding wildfire safety [11] - SCE's proposed cost of capital application includes a request for a return on equity (ROE) of 11.75%, with a proposed decision expected in November [21] Company Strategy and Development Direction - The company is focused on rebuilding wildfire-impacted areas and enhancing the resilience of its electrical distribution infrastructure [7] - SCE plans to submit its 2026 wildfire mitigation plan in May, reflecting priorities in risk mitigation, public safety, and affordability [14] - The utility is committed to executing an integrated wildfire mitigation strategy, prioritizing grid hardening, asset inspections, and vegetation management [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment and the importance of addressing wildfire risks to restore stakeholder confidence [11] - The company is optimistic about the proposed decision timeline for the GRC and the potential for a constructive regulatory environment [13] Other Important Information - The company has launched a new webpage to address misinformation regarding the Ethan fire and its operations [9] - Significant media coverage has been noted regarding the Ethan fire, with management emphasizing transparency throughout the ongoing investigation [8] Q&A Session Summary Question: What drove the new material loss disclosure? - Management indicated that the ongoing investigation and the lack of evidence pointing to another source of ignition warranted the disclosure of probable losses [32] Question: How will potential liabilities from the Eaton fire impact financing plans? - Management explained that the wildfire fund would be accessed to cover claims, reducing the need for debt issuance compared to previous incidents [36][38] Question: What is the status of wildfire legislation in California? - Management expressed confidence in legislative engagement but noted that discussions are still in early stages [41][42] Question: How does the Moody's risk management model reflect wildfire risk? - Management confirmed that grid hardening efforts have significantly reduced the probability of catastrophic wildfires, but ongoing evaluations will continue [44][46] Question: What are the considerations for accessing the wildfire fund? - Management clarified that the process for accessing the fund is streamlined, with initial claims covered by customer-funded self-insurance before tapping into the fund [110] Question: Are there any updates on the investigation into the Eaton fire? - Management stated that no estimates could be provided regarding the investigation timeline, and they are still assessing potential ignition sources [76][78]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported GAAP net income of $100 million or $0.91 per diluted share, compared to $109 million or $1.08 per diluted share in Q1 2024 [8] - Non-GAAP net income for Q1 2025 was $123 million or $1.21 per share [9] - Total load growth was 4.6%, with industrial load growth at 16.4% compared to the same quarter last year [9][24] Business Line Data and Key Metrics Changes - Residential load decreased by 0.8% quarter over quarter, while residential customer count increased by 1.6% [25] - Commercial load remained relatively flat with a slight increase of 0.8% [25] - Industrial load increased by 16.4% on both nominal and weather-adjusted bases, driven by data centers and semiconductor customers [26] Market Data and Key Metrics Changes - The company serves five large semiconductor customers and over ten significant data center providers, which account for nearly a quarter of total deliveries [10] - The company reaffirmed its 2025 weather-adjusted load growth guidance of 2.5% to 3.5% and long-term load growth guidance of 3% through 2029 [27] Company Strategy and Development Direction - The company is focused on building a reliable, affordable, and increasingly clean grid, aligning with the clean energy goals of its customers [12] - A commitment to wildfire risk management includes a planned expenditure of over $120 million in 2025 for wildfire mitigation [16] - The company is pursuing updates to its corporate structure to enable a holding company, which is common in the industry and will provide increased financing flexibility [22][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the industrial base, particularly in semiconductors and data centers, despite potential economic headwinds [58] - The company is actively monitoring the evolving federal policy landscape, including tariffs and tax policies, which may impact capital plans [33] - Management reaffirmed the 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share and long-term earnings and dividend growth guidance of 5% to 7% [38] Other Important Information - Total liquidity as of March was $948 million, with credit ratings remaining unchanged [34] - The company executed $310 million of first mortgage bonds in March and anticipates up to $140 million more in debt financing later this year [34] Q&A Session Summary Question: Wildfire Mitigation Progress - Management highlighted the extensive wildfire mitigation plans and increased vegetation management efforts, noting that discussions with legislators have been productive [43][45] Question: Capital Expenditure and Growth Confidence - Management remains confident in growth despite potential economic slowdowns, emphasizing the importance of cost recovery and competitive returns for investors [46][49] Question: RFP Timing and Updates - Management is pleased with the progress of negotiations for the 2023 RFP and expects to finalize contracts in the second half of the year [52] Question: Industrial Sales Growth and Capital Reallocation - Management is closely monitoring the semiconductor market and has seen moderating inflation in costs, which may impact capital projects [58][60] Question: Tax Credit Monetization - The current financing plan accounts for limited monetization of tax credits, primarily related to the seaside project [61][63] Question: RFP Resource Pivot - Management does not see a need to pivot resources from the 2023 RFP to the 2025 RFP at this time, as the current process is adaptable [67][68] Question: Data Center Customer Structure - Management is actively working on legislation to ensure data center customers contribute fairly to infrastructure costs, which is crucial for system reliability [73][75] Question: Holding Company Structure - The establishment of a holding company is expected to provide flexibility in financing and managing costs, with further clarity anticipated in the coming year [91][94]