Edison International

Good afternoon and welcome to the Edison International Second Quarter 2025 Financial Teleconference. My name is Denise and I will be your operator today. When we get to the question and answer session, if you have a question, press star 1 on your phone. Today's call is being recorded. I would now like to turn the call over to Mr. Sam Romrage, Vice President of Investor Relations. Mr. Romrage, you may begin your conference.

Thank you Denise and welcome everyone. Our speakers today are President and Chief Executive Officer Pedro Pizarro and Executive Vice President and Chief Financial Officer Maria Riccardi. Also on the call are other members of the management team. Materials supporting today's call are available at .edisoninvestor.com. These include a Form 10Q, prepared remarks from Pedro and Maria, and the teleconference presentation. Tomorrow we will distribute a regular business update presentation. During this call we will make forward looking statements about the outlook for Edison International and its subsidiaries. Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings. Please read these carefully. The presentation includes certain outlook assumptions as well as reconciliation of non-GAAP pressures to the nearest GAAP measure. During the question and answer session, please limit yourself to one question and one follow-up. I will now turn the call over to Pedro.

Thanks a lot Sam and good afternoon everyone. Today I will address three key topics for our investors. An update on the Ethan Fire. Our confidence that California's legislature will support healthy investor-owned utilities. And an update on regulatory decisions and future actions that position SCE well to deliver on its commitments for customers and other stakeholders. Let me start with a brief comment on earnings. Today Edison International reported second quarter core earnings per share of 97 cents compared to $1.23 a year ago. However as I have mentioned before, this -over-year comparison is not particularly meaningful because SCE has not received a final decision in its 2025 general rate case. Nonetheless we remain confident in our ability to meet our 2025 EPS guidance and deliver a 5 to 7 percent core EPS CAGR through 2028. I will touch on the GRC proposed decision in a few minutes and Maria will discuss her financial performance in her remarks. On the Ethan Fire. The investigations by SCE and the LA County Fire Department remain ongoing. There are no additional disclosures on the ignition or estimated cost at this point. To recap, SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence we believe that SCE equipment could have been associated with the ignition. In addition, numerous lawsuits have already been brought against SCE. If it is determined that SCE's transmission equipment was associated with the ignition of the Ethan Fire, based on the information we have reviewed thus far, we remain confident that SCE would make a good faith showing that its conduct with respect to its transmission facilities in the Ethan Canyon area was consistent with actions of a reasonable utility. As we know from prior wildfire events, engaging with and helping the community is critical. That's why we announced last week the Wildfire Recovery Compensation Program which SCE will launch this fall. The program will provide direct payments to eligible individuals and businesses. Resolving claims quickly allows the community to focus on recovery and minimizes the overall cost by mitigating the impacts of interest expense and inflation. This will also help use the wildfire fund efficiently and have more of the cash support impacted community members instead of being spent on higher legal costs. On the legislative front, we are encouraged by the continuing discussions with the governor's office and legislators to enhance California's industry-leading AB 1054 regulatory framework. Given the economy-wide consequences of inaction, we believe policymakers will strengthen California's wildfire framework during the current legislative session. The issue of wildfires is not just a utility regulation issue. The full solution must include broader actions across multiple sectors and could be addressed during next year's legislative session. Separately, a number of affordability bills are being discussed. Our track record on cost management, which I will discuss in a few minutes, shows our commitment to affordability. There are good steps the legislature can consider to improve affordability, like right-sizing public purpose programs and NEM and streamlining siting and permitting. However, provisions like securitizing capital may be well-intentioned but in fact would actually raise customer costs by deteriorating credit quality. We will continue to engage with legislators to help them make decisions that are grounded in the facts. Moving to the regulatory front, SCE continues to build on its progress across multiple proceedings, further de-risking our financial outlook. Maria will expand on several of those proceedings in her remarks, but let me touch on the proposed decision in SCE's 2025 GRC issued by the administrative law judge on Monday. Page 3 provides a summary. The PD overall generally aligns with our range case rate-based forecast. We share the ALJ's view that critical investments are needed to maintain a safe, reliable, and increasingly clean electric grid. On the other hand, key areas of the PD require improvement, so SCE will seek revisions. The PD would authorize base revenue of $9.8 billion or 93% of SCE's requested revenue requirement. It also supports significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement, while incorporating affordability considerations for customers. The reductions from SCE's requests primarily relate to scope, pacing, or cost, not to the underlying need or effectiveness of the programs. Most notably, the PD finds that covered conductor has been a highly effective wildfire mitigation strategy and that no party recommended a reduction to SCE's request. It also notes that no party disputed that targeted undergrounding is an effective tool for SCE, although it would authorize fewer miles than SCE proposed. The PD affirms the reasonableness of the utility's baseload growth forecast and recognizes the importance of SCE's planning methodology, which integrates statewide forecasts with local system knowledge. This supports our long-term strategy to ensure the grid is ready for California's electrified future. However, there are some areas where the PD is not fully aligned with customer needs and will be part of the utility's opening comments. Maria will say more in her remarks. The January wildfires underscore the importance of mitigation plans and the need for continuous and evolving tools to maintain infrastructure resiliency. SCE submitted its 2026-2028 wildfire mitigation plan in May, outlining a comprehensive strategy to address both immediate and long-term wildfire risks with new and innovative solutions. The plan reflects the utility's commitment to public safety, risk reduction, and affordability and builds on foundational mitigations such as covered conductor, targeted undergrounding, and enhanced vegetation management. Over the 2026-2028 period, SCE anticipates investing $6.2 billion. The plan also supports continued use of aerial firefighting assets, including the world's largest heli tankers with nighttime capabilities, and aims to inspect approximately 1 million trees annually. Public safety power shutoffs remain a critical tool in wildfire prevention. This year's PSPS updates include revised criteria and wind speed thresholds, expanded circuit coverage, and broader boundaries around high-fire risk areas. As always, SCE remains focused on customer support and outreach to enhance safety and reduce the impact of PSPS events. Additional details can be found on page 4. As you will recall, a year ago we shared our projection that even with 100% of SCE's GRC The utility expects its system average rate to grow on average at an inflation-like level for 2028. Based on where things stand today, that is still the expectation, which is further enabled by SCE's enduring focus on operational excellence and efficiently managing costs for customers. SCE has a more than 15-year track record with the lowest system average rate among California's industry-owned utilities, thanks to successfully executing on its operational excellence initiatives and taking proactive measures to address customer affordability. Technology is a major driver of better affordability, safety, reliability, and resiliency. For example, last month, EEI once again selected EIX and SCE as the winner of their prestigious Edison Award, recognizing distinguished leadership, innovation, and contribution to the advancement of the electric industry for the benefit of all. Our winning project, SCE's Advanced Waveform Anomaly Recognition Engine, or AWARE for short, uses real-time grid sensor data, AI, and machine learning to proactively predict potential system issues and pinpoint where failures take place within SCE's service territory. Customers benefit from higher safety and reliability, faster restoration times, and higher affordability through optimized crew time. I am proud of our team for their steadfast commitment to operational excellence and for creating this AI-driven solution to help make the grid safer and more resilient for our communities. I will conclude my remarks by reiterating the key messages. First, SCE is continuing with its investigation on the origin and cost of the Ethan Fire, and there are no new disclosures about the ignition or cost estimate at this time. When we have additional relevant information, we will share it with you and, importantly, will continue our transparency with our community. Second, we are confident that legislative action will ultimately enhance California's AB 1054 regulatory framework. Third, SCE is well positioned from a regulatory standpoint to deliver for customers and investors. With that, I'll turn it over to Maria for her financial report.