Edison International Q3 FY2025 earnings call

• California's legislative session passed SB 254, creating an up to $18 billion continuation account for wildfires ignited after September 19, 2025, with provisions for cost recovery and securitization. It also calls for a Phase 2 report in April 2026 to evaluate long-term reforms for equitably socializing climate-driven natural disaster risks. • Eaton Fire investigations continue; SCE entered a settlement with an insurance claimant and will launch a wildfire recovery compensation program for the Eaton Fire. • Regulatory progress: CPUC approved TKM Settlement (approx. $1.6B recovery of wildfire-related costs) and SCE reached a settlement with Woolsey fire intervenors (approx. $2B authorized recovery subject to approval). SCE's 2025 General Rate Case authorized $9.7B base revenue and investments in wildfire mitigation, safety, etc. • SCE deployed over 6,800 miles of covered conductor, aims to harden nearly 90% of distribution lines in high fire risk areas by year-end, and updated public safety power shutoff criteria. • Load growth projections: near-term CAGR up to 3%, electricity sales expected to nearly double in next 2 decades.

• Narrowed 2025 core EPS guidance to $5.95 to $6.20, including potential $0.10 per share costs for early refinancing. • Reaffirmed 5% to 7% core EPS growth target through 2028. • Refreshed 4-year capital plan of $28 billion to $29 billion, projecting rate base growth of 7% to 8%. • Anticipate securitization proceeds from TKM settlement ($1.6B) and pending Woolsey settlement ($2B), strengthening credit metrics.

• Uncertainty around Eaton Fire potential losses and ongoing investigations. • Regulatory and legislative changes could impact financial performance, including potential outcomes of Phase 2 of SB 254. • Fluctuations in cost of capital proceedings and their impact on financial projections.

Q: Nicholas Campanella asked about the $0.10 charge related to preferred equity and Eaton Fire recovery program participation.

A: Maria Rigatti and Pedro Pizarro responded, with Maria explaining the preferred equity refinancing options and Pedro discussing the Eaton Fire recovery program launch and uncertainty around losses.

Q: Gregg Orrill asked about the trend within the 5%-7% EPS growth range.

A: Maria Rigatti responded, stating confidence in the 5%-7% EPS CAGR due to increased regulatory clarity and a stronger balance sheet.

Q: Shahriar Pourreza asked about Phase 2 of SB 254 and limiting EIX's liability.

A: Pedro Pizarro responded, discussing the Phase 2 process transparency, Governor Newsom's executive order, and the need for equitable allocation of natural catastrophe risks.

Q: Anthony Crowdell followed up on preferred equity financing.

A: Maria Rigatti responded, explaining the impact of regulatory proceedings on preferred equity refinancing options.

Q: Paul Zimbardo asked about EPS trajectory linearity beyond 2025.

A: Maria Rigatti responded, noting detailed planning processes and the GRC's role in providing clarity for EPS guidance.

Q: Carly Davenport asked about cost of capital outcome and FERC investment.

A: Pedro Pizarro and Steven Powell responded, discussing cost of capital proceedings and FERC transmission investment opportunities.

Q: David Paz asked about SB 254 CapEx backfilling.

A: Maria Rigatti responded, clarifying CapEx related to SB 254 and its inclusion in future rate case cycles.

Q: Aidan Kelly asked about near-term sales growth breakdown.

A: Steven Powell responded, detailing the mix of load growth from electrification, residential, and commercial/industrial customers.