Financial Data and Key Metrics Changes - Edison International reported second quarter core earnings per share (EPS) of $0.97, down from $1.23 a year ago, with the year-over-year comparison being less meaningful due to the lack of a final decision in its 2025 general rate case [6][20][21] - The company remains confident in achieving its 2025 EPS guidance and delivering a 5% to 7% core EPS compound annual growth rate (CAGR) through 2028 [7][30] Business Line Data and Key Metrics Changes - SCE's core EPS variance was primarily driven by higher operating and maintenance (O&M) expenses and the net impact of regulatory decisions [20] - The proposed decision (PD) in SCE's 2025 general rate case would authorize base revenue of $9.8 billion for 2025, with incremental increases in subsequent years [12][23] Market Data and Key Metrics Changes - The PD supports significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement while considering affordability for customers [12][13] - SCE anticipates investing $6.2 billion in its wildfire mitigation plan from 2026 to 2028, which includes various safety and reliability measures [15] Company Strategy and Development Direction - The company is focused on enhancing its wildfire recovery compensation program and engaging with the community to support recovery efforts [9][19] - Edison International is optimistic about legislative support for California's regulatory framework, particularly regarding wildfire management and affordability [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative process enhancing California's wildfire framework and emphasized the importance of a comprehensive approach to wildfire risk [9][10][19] - The company highlighted its commitment to operational excellence and cost management, which has resulted in the lowest system average rate among California's major industrial utilities [17] Other Important Information - The ongoing investigations into the Eaton fire are being conducted by SCE and the LA County Fire Department, with no new disclosures on ignition or estimated costs at this time [8][18] - The company is actively participating in various regulatory proceedings to de-risk its financial outlook and ensure alignment with customer needs [27][30] Q&A Session Summary Question: Regarding the proposed $18 billion fix, what is the company's stance on shareholder contributions? - Management indicated that while discussions are ongoing, they do not foresee a need for upfront contributions from shareholders, emphasizing the importance of a balanced legislative package [36][39] Question: How will the company communicate updates on the Eaton fire investigation? - Management stated that they would provide information during quarterly earnings calls but may disclose material information off-cycle if necessary [41][44] Question: Can you provide details on the proposed decision versus the range case forecast? - Management confirmed that the PD aligns with their range case forecast but noted that there are opportunities for additional capital beyond what has been flagged [48][49] Question: What are the company's thoughts on affordability legislation and securitization? - Management expressed concerns that securitization could lead to higher costs for customers in the long run and emphasized the need for alternative solutions to support affordability [57][61] Question: How does the company view the current regulatory environment and its impact on investor support? - Management acknowledged the challenges but expressed confidence in California's commitment to addressing utility needs and the clean energy transition [71][74] Question: What is the status of the Eaton investigation and potential equity issuance for wildfire fund contributions? - Management clarified that there are two separate investigations ongoing and emphasized that there is currently no need for upfront cash contributions to the wildfire fund [80][84]

Financial Data and Key Metrics Changes - Edison International reported second quarter core earnings per share (EPS) of $0.97, down from $1.23 a year ago, with the year-over-year comparison being less meaningful due to the lack of a final decision in its 2025 general rate case [5][19] - The company remains confident in achieving its 2025 EPS guidance and delivering a 5% to 7% core EPS compound annual growth rate (CAGR) through 2028 [6][29] Business Line Data and Key Metrics Changes - SCE's core EPS variance was primarily driven by higher operating and maintenance (O&M) expenses and the net impact of regulatory decisions [19] - The proposed decision (PD) in SCE's 2025 general rate case would authorize base revenue of $9.8 billion for 2025, with incremental increases in subsequent years [22] Market Data and Key Metrics Changes - The PD supports significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement while considering affordability for customers [11][12] - SCE anticipates investing $6.2 billion in its wildfire mitigation plan from 2026 to 2028, which includes various strategies to enhance safety and reliability [14] Company Strategy and Development Direction - The company is focused on enhancing California's wildfire regulatory framework and engaging with legislators to improve affordability measures [8][9] - SCE's long-term strategy includes ensuring the grid is prepared for California's electrified future, with a commitment to operational excellence and cost management [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in legislative actions that will enhance California's regulatory framework, particularly regarding wildfire management [18] - The company highlighted the importance of continuous engagement with the community and stakeholders to address wildfire risks and improve operational practices [7][10] Other Important Information - The ongoing investigation into the Eaton fire is being conducted by SCE and the LA County Fire Department, with no new disclosures on ignition or estimated costs at this time [6][17] - SCE has launched a wildfire recovery compensation program to provide direct payments to eligible individuals and businesses affected by the Eaton fire [8] Q&A Session Summary Question: Regarding the proposed $18 billion fix and utility contributions - Management indicated that discussions are ongoing, and the balance of the legislative package will be crucial in determining acceptable structures for utility contributions [36][40] Question: Expectations for disclosures on the Eaton fire - Management stated that they would provide information during quarterly earnings calls but may disclose material information off-cycle if necessary [42][43] Question: Details on the proposed decision versus the range case forecast - Management confirmed that the PD aligns with their range case forecast but noted that there are opportunities for additional capital beyond what has been flagged [46][47] Question: Thoughts on affordability legislation and securitization - Management emphasized the importance of operational excellence and highlighted alternative measures to support affordability without compromising the regulatory framework [55][60] Question: Status of the Eaton investigation - Management clarified that there are two separate investigations ongoing, with the official investigation led by LA County Fire and SCE's own investigation involving various stakeholders [77][80] Question: Potential equity issuance for wildfire fund contributions - Management expressed that upfront contributions would drive up the cost of capital and are not seen as necessary at this time, pending further legislative developments [81][83]

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]

Financial Performance & Guidance - The company is on track to meet its 2025 core EPS guidance, projecting a 10% increase[6,8] - The company reaffirms its core EPS guidance for 2026-2028, targeting at least 9% growth[6,8] - The first quarter 2025 non-GAAP core EPS was $0.33, compared to $0.37 in the first quarter of 2024[6,91] - The company targets a 20% dividend payout by 2028[8] - The 2025 non-GAAP core EPS guidance is between $1.48 and $1.52[6,28] Capital Investment & Rate Base - The company anticipates approximately 10% CAGR for rate base growth from 2023 to 2028[29] - The weighted average rate base is projected to be $63 billion from 2024 to 2028[29,30] - The company has at least $5 billion in customer beneficial investment opportunities[29] Operational Efficiency & Cost Reduction - The company aims for a 2% reduction in non-fuel O&M costs[12,37,41] - The company has a track record of exceeding the 2% annual O&M cost reduction target[38] - Net savings from O&M cost reductions are projected to be $200 million in 2025[37] Wildfire Mitigation & Safety - The company has completed 2,061 system hardening miles and 899 undergrounding miles[25] - The company has installed 1,585 sectionalizing devices and removed 4 million trees[25] - The company has installed 643 cameras and 1,589 weather stations for situational awareness[25] Data Center Load Growth - The company has a data center pipeline totaling 8,700 MW as of March 2025[15,45] - 1,400 MW of data center projects are in the final engineering phase[15,16] - The company estimates that 1 GW of data center load can lead to a 1%-2% electric bill reduction[15]