Financial Data and Key Metrics Changes - Core earnings per share for Q1 2025 are $0.33, down $0.04 compared to Q1 2024, with a reaffirmation of full-year guidance of $1.48 to $1.52, representing a 10% increase from 2024 results [6][29][30] - The return on equity (ROE) decreased from 10.7% in 2024 to 10.28% in 2025, impacting earnings [30][32] - The company expects to deliver its 2025 plan despite lower ROE and equity dilution from a December equity issuance [30][31] Business Line Data and Key Metrics Changes - The capital investment plan remains at $63 billion through 2028, with an additional estimated $5 billion in investment needs identified [34][36] - Operational and maintenance (O&M) savings exceeded $500 million in 2023 and nearly $350 million in 2024, contributing to improved financial performance [41][42] Market Data and Key Metrics Changes - The data center project pipeline has increased from 5.5 gigawatts to 8.7 gigawatts, with 1.4 gigawatts in final engineering [17][18] - For every gigawatt of new electric demand from data centers, customers may save between 1% to 2% on their electricity bill [20] Company Strategy and Development Direction - The company is focused on affordability, with bills forecasted to decrease in 2025 and again in 2026 [8][50] - The upcoming general rate case (GRC) filing on May 15 aims to reflect the simple affordable model and address infrastructure demands [12][62] - The company is advocating for legislative changes to improve the AB 1054 framework, which is crucial for attracting low-cost capital [9][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a constructive legislative outcome regarding AB 1054, emphasizing its importance for customer affordability and capital attraction [58][60] - The company is optimistic about the potential for beneficial load growth from data centers to help stabilize and reduce customer bills [20][112] Other Important Information - The company has achieved 814 days without a workplace fatality, marking a significant improvement in safety culture [26][27] - The utility issuer credit rating was upgraded to investment grade by Moody's, with ongoing efforts to achieve investment grade at the holding company level [36][154] Q&A Session Summary Question: Can you expand on the confidence regarding AB 1054 legislative outcomes? - Management highlighted the importance of AB 1054 for customer affordability and capital attraction, expressing confidence in a constructive outcome this year [58][60] Question: What differentiates your upcoming GRC from peers? - The GRC proposal will reflect a simple affordable model, focusing on infrastructure demands and improved O&M ratios to lower costs for customers [62][64] Question: How should we think about the $5 billion upside CapEx in the context of the upcoming filing? - The $5 billion is part of the capital plan, with potential for additional investments based on affordability and customer needs [73][76] Question: Can you provide an update on the data center pipeline? - Management expects 90% of the 1.4 gigawatts in final engineering to be built by 2030, with significant demand for compute power in Northern California [80][112] Question: What is the status of conversations with rating agencies regarding investment grade? - The company remains focused on maintaining a strong balance sheet and is optimistic that addressing AB 1054 uncertainty will lead to favorable actions from rating agencies [154][155]