Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide any indication about the potential damages from the Eaton fire and when you expect to know more? A: Pedro Pizarro, President and CEO, stated that it is too early to determine potential liabilities. The investigation is ongoing, and it could take 12 to 18 months to receive an official report from fire authorities. Establishing liability depends on legal actions by plaintiffs, which can take time.
Q: How are the legislative discussions progressing regarding wildfire fund enhancements, and what solutions are being considered? A: Pedro Pizarro mentioned that discussions are in early stages, but there is a strong understanding among policymakers about the importance of financially healthy utilities. The administration has engaged experts for financial analysis, and discussions with legislative leaders are ongoing. Multiple levers could be employed to strengthen the AB 1054 framework.
Q: What steps are being taken to strengthen and standardize the bonding process after the Eaton fire? A: Pedro Pizarro explained that SCE is always learning and improving its practices. Immediate steps were taken after the fire, such as enhancing PSPS protocols. SCE is committed to transparency and will share learnings as appropriate while balancing litigation considerations.
Q: How might the wildfires impact the outcome of the General Rate Case (GRC) and the Woolsey cost recovery proceeding? A: Maria Rigatti, CFO, stated that the GRC process is well underway, with many items already settled with interveners. The Woolsey cost recovery application is also progressing on its own path, and both proceedings are expected to continue as planned.
Q: How will potential liabilities from the January 2025 events be financed, and what role does the wildfire fund play? A: Maria Rigatti explained that the wildfire fund is designed to support claims payments and the utility's balance sheet. After using customer-funded self-insurance, SCE would access the wildfire fund, which has a streamlined process for claims, eliminating the need for debt issuance like in pre-AB 1054 fires.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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