Financial Data and Key Metrics Changes - Core earnings per share for Q2 2025 were $0.31, with a year-to-date total of $0.64, down from the previous year, but consistent with internal plans [5][22] - The full-year guidance range for earnings per share is reaffirmed at $1.48 to $1.52, representing a 10% increase over 2024 [5][22] - The company is targeting a 20% dividend payout by 2028, with no further equity issuance planned through that year [11][26] Business Line Data and Key Metrics Changes - The data center pipeline has grown to 10 gigawatts, a nearly threefold increase from the previous year, with over 50 projects in various stages [18][19] - The company has executed four Public Safety Power Shutoff (PSPS) events in 2025, indicating proactive measures in wildfire risk management [13] Market Data and Key Metrics Changes - Residential combined bills are forecasted to remain flat for the remainder of 2025 and decrease in 2026, with a potential for lower bills in 2027 [15][17] - The company is seeing beneficial load growth from data centers, which could reduce electric bills by 1% to 2% for every gigawatt brought online [21] Company Strategy and Development Direction - The company is focused on a "simple affordable model" to stabilize customer bills while making necessary capital investments [10][11] - Legislative efforts are underway to improve wildfire risk management and affordability, with the company advocating for effective solutions [6][8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth under various legislative outcomes, emphasizing the importance of affordability legislation [34][39] - The company is committed to improving physical risk mitigation and maintaining a strong balance sheet to support future growth [34][35] Other Important Information - The company has identified nearly 100 initiatives aimed at operational and maintenance savings, contributing to overall cost reduction efforts [22][25] - The company plans to file a ten-year undergrounding plan by year-end, emphasizing the importance of undergrounding in wildfire mitigation [90] Q&A Session Summary Question: Concerns about legislative outcomes affecting growth - Management reassured that they have modeled various legislative scenarios and remain confident in their guidance through 2028, emphasizing that securitization proposals would not be supported as they could increase bills [39][40] Question: Balance sheet capacity and funding - Management indicated that there is no need for a large upfront contribution to the wildfire fund, as claims typically take years to pay out, and they have sufficient flexibility in their plans [46][50] Question: Data center pipeline and load growth benefits - Management highlighted that construction for data center projects in San Jose is expected to start in late 2026 or early 2027, with load materializing predominantly in 2027 [70][71] Question: Affordability solutions in the legislature - Management expressed optimism about achieving affordability solutions in the current legislative session, noting that 30-40% of bills are policy-driven and that there are good ideas on the table [75][76] Question: Wildfire fund and legislative package - Management stated that any legislative package must be net better for customers and investors, emphasizing the importance of the wildfire fund's durability [83][84]