EDISON INTERNATIONAL Q1 FY26 earnings call EIX

SCE reports its planned physical hardening of the distribution system in high fire-risk areas is now about 93% complete, built on more than 7,100 miles of covered conductor and nearly 100 miles of undergrounding. The utility continues to evolve its Public Safety Power Shutoff (PSPS) protocols using its weather-station network and system visibility. In March, the Office of Energy & Infrastructure Safety approved SCE's annual safety certification following an independent assessment of its Wildfire Mitigation Plan. Management stresses the effort targets multi-decade climate-driven risk, not just year-to-year conditions.

Since 2023 SCE has deployed AI/ML models collectively capable of detecting nearly 100 unique object classes and dozens of defect conditions to improve grid inspections and quality control, and uses LiDAR and satellite imagery for proactive vegetation management. It is expanding early fault-detection tools for earlier ignition-risk awareness, and cited a rapidly built AI proof-of-concept to surface unbilled usage that could yield roughly $25M of unbilled-revenue savings over 3-6 months. Management frames AI benefits as already rolling into forecasts but too early to fully size.

SCE has extended over 1,500 offers totaling over $500 million to Eaton fire community members through the WRCP, an out-of-court program intended to deliver fast, fair payments. Against those offers there are over 3,100 claims filed, roughly 30,000 plaintiffs asserting claims, and about 18,000 properties eligible in the qualifying zones (a property can have multiple claimants). Management repeatedly declined to estimate ultimate liability or even when an estimate is possible, citing claim variability and complex insurance interdependencies; the property-damage statute of limitations runs until January 2028.

The California Earthquake Authority released its SB 254 study, presenting three non-exclusive pathways and more than two dozen policy choices for reforming wildfire, insurance and utility systems, and reinforcing that the status quo and 'cost of inaction' are unsustainable. Edison advocates returning to an investor-owned-utility cost-of-service model with prudency-based recovery. The legislative session ends August 31 (bills in print by August 28); management cannot predict passage timing and warns that failure to act in 2026 could produce credit-rating impacts across multiple state sectors.

SCE's 2026-2030 capital plan of $38-$41 billion is unchanged from last quarter and drives ~7% rate base CAGR (2025-2030). An approved 2025 GRC covers the bulk of capital through 2028, and resolution of cost of capital and legacy wildfire recoveries gives clear visibility to 2028 earnings and a 'cleaner' 2026 regulatory slate. Two stand-alone applications — NextGen ERP and the AMI 2.0 smart-meter modernization (~$3.1B requested through 2033) — are already embedded in the plan. SCE will file its RAMP application next month to inform the next GRC cycle.

Management underscored funding growth with no new common equity through at least 2030, building on only ~$400M of common equity issued over the prior five years, and reaffirmed commitment to a 15%-17% FFO-to-debt framework with expectation to remain within range across the forecast window — noted as one of the strongest consolidated FFO-to-debt ratios projected by S&P. Parent financing costs fell after a preferred-stock redemption, aiding the quarter.

Edison announced Maria Rigatti's retirement effective September 1, with the CFO role transitioning to Aaron Moss (currently SCE CFO) on July 3; Rigatti will focus her final months on the SB 254 process and transition support. This was her 39th and final earnings call. Susan Hardwick, former CEO of American Water, joined Edison's Board, bringing over 35 years of electric and water utility leadership.