Financial Data and Key Metrics - The company reaffirmed its full-year core EPS guidance of 4.55to4.85 for 2023 [22] - Core EPS for Q2 2023 was 1.01,witha0.13 year-over-year increase driven by GRC attrition year revenue escalation (0.19),higherFERCandotherrevenue(0.04), and balancing account interest income (0.10),partiallyoffsetbya0.16 increase in interest expense [181][105] - The company expects 5% to 7% EPS growth from 2021 through 2025, with a pathway to 7EPSpotentialby2028[146][43]−SCE′s2025baserevenuerequirementis10.3 billion, a 1.9billion(1238 to 43billion,withover8541.9 billion, nearly 20% higher than two years ago [164] - The California Independent System Operator (CAISO) identified 2.3billionintransmissionprojectsforSCE,withanadditional3 billion in competitive projects in Southern California [183] - The state of California allocated 2.7billionoverfouryearsforforestresiliencyandfiresuppression,maintaining982 billion in potential investments to be requested in standalone applications [23] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 5% to 7% EPS growth through 2028, driven by strong rate base growth and stabilized headwinds [61][188] - The company highlighted the potential for cost recovery in legacy wildfire proceedings, which could provide substantial upside to long-term earnings [27] - Management noted the importance of the CHIPS Act and federal infrastructure investments in supporting long-term supply chain resilience [31] - The company is prepared for the wildfire season, with 76% of distribution lines in high fire risk areas expected to be hardened by year-end [19] Other Important Information - SCE's operational excellence program has identified O&M savings, including 55millionfromcombinedgroundandaerialinspections[41][24]−Thecompanyhasachieved160 million in annual savings through its expanded wildfire self-insurance program [186] - SCE's vegetation management program inspects 1.6 million trees annually, mitigating approximately 850,000 trees, with over half in high fire risk areas [176] Q&A Session Summary Question: Long-term EPS growth and rate base growth alignment - Management clarified that the 5% to 7% EPS growth aligns with rate base growth, with stabilization of past headwinds and strong AFEDC growth contributing to this alignment [108][110] Question: Equity financing and capital needs - The company plans to rely on internal equity programs, generating approximately 100millionannually,tomeetequityneedsthrough2028[53][78]Question:CAISOtransmissionopportunities−CAISO′stransmissionplanningprocessidentifiesprojectsona20−yearoutlook,with2.3 billion in incumbent projects for SCE and 3billionincompetitiveprojects[57][58]Question:OperationalvariancesandAFEDC−Managementprovidedsensitivitiesforoperationalvariances,includingAFEDCanddepreciationadjustments,withAFEDCexpectedtorisefrom0.30-0.35to0.45 by 2028 [100][111] Question: CCM trigger and ROE adjustment - The CCM is likely to trigger, with an advice letter to be filed in October for a potential ROE adjustment, though this is not factored into the 5% to 7% EPS growth target [106][125] Question: Wildfire cost recovery - SCE will file a cost recovery application in August for the 2017 and 2018 wildfire events, seeking full CPUC cost recovery [37][51]