Edison International (EIX) Q4 FY25 earnings call: guidance and Q&A

When will the company be able to estimate the low end of losses for the Eaton fire, given $1.1 billion recorded so far?

Management clarified that the $1.1 billion recorded is a combination of Wildfire Recovery Compensation Program (WRCP) payments and subrogation settlements. With only 2,300 claims submitted out of 18,000 eligible properties (potentially tens of thousands of claimants), they cannot yet estimate a range of potential losses with GAAP confidence.

“we really don't have an estimate for that yet because it really depends on the pace of this.”

asked by Nicholas Campanella · answered by Pedro Pizarro

Given 8% rate base growth from 2028-2030, does the company expect to be at the high end of its 5-7% EPS growth range in those years?

Management stated they plan conservatively with various scenarios and are confident in the 5-7% growth target. They expect to be at the high end of the range for the next couple of years (post-2026) due to rate base growth, which remains the primary driver, especially with a new General Rate Case filing in May 2027.

“We definitely run a lot of different scenarios. We plan conservatively. Looking at all various outcomes and how they play together allows us to have confidence in the 5% to 7%.”

asked by Nicholas Campanella · answered by Maria Rigatti

What is the anticipated timing for clarity on AMI 2.0 approvals and how does it interplay with the capital plan?

The company plans to file the AMI 2.0 application in the next few months, expecting a decision in about 18 months. Approximately $1.5 billion of the total request is embedded in the capital plan through 2030, with the total request exceeding $3 billion and spending continuing through 2033.

“The capital that's embedded in the forecast right now, the total request will be in the neighborhood of $3 billion about $1.5 billion is in the period that we have portrayed here through 2030 with another $1.5 billion that would get spent post that by and large through 2033.”

asked by Carly Davenport · answered by Maria Rigatti

What are the updates on the SB 254 process and what does it mean for timing of legislative clarity?

Management noted robust stakeholder participation and a constructive approach by the CEA. Key themes include recognizing the economy-wide nature of wildfire risk and the need for a predictable framework to support well-priced capital for customer affordability. They highlighted the CPUC's report acknowledging utilities cannot be insurers of last resort.

“But seeing the recognition that this is an economy-wide issue, that really needs to touch all sectors, everything from upstream, securing of buildings, hardening of buildings, decreasing the risk of ignition, decreasing the risk of spread and a consequence focusing as well on shoring up the insurance market, focusing on having ultimately solutions that if heaven forbid, there's another catastrophic fire in the state that there's a way to equitably socialize that impact across the economy.”

asked by Carly Davenport · answered by Pedro Pizarro

Could management elaborate on why the $0.14 in depreciation and tax variances for 2026 are not recurring?

Management clarified that while these are variances relative to 2025, they are now built into 2026 and will not diminish year-over-year growth in subsequent periods. The variances stem from deploying assets at a different pace or in different buckets than authorized in the GRC, and from tax law changes (e.g., charitable contributions) and increased wildfire debt outstanding.

“So while they are variances in this year like relative to '25, but now that they're built in, they're just going -- they continue on a go-forward basis, but they won't actually be affecting or diminishing the growth year-over-year.”

asked by Paul Zimbardo · answered by Maria Rigatti

Will the company continue to tweak the Wildfire Recovery Compensation Program (WRCP) and what was the rationale for recent changes?

Management explained two recent modifications: providing added support for displaced renters (higher of actual rent or fair market value for three months) and increasing coverage for legal fees from 10% to 20% of net damages. These changes are retroactive and based on community feedback. The objective is fair, timely compensation, and they aim for program stability rather than constant changes.

“So now we are making an adjustment to use the calculator or the engine that we have to calculate or estimate fair market value for rent, and allowing tenants to recover three months of either the higher of their actual rent payments or that fair market value rent.”

asked by Ryan Levine · answered by Pedro Pizarro

Can management elaborate on the LA District Attorney's investigation into potential criminal violations related to the Eaton fire?

Management stated that investigations are expected for events of this scale and they will collaborate with the attorney's office. They expressed confidence that SCE will be able to demonstrate its actions were those of a reasonable utility operator, which provides comfort regarding this and broader investigations.

“But importantly, as we continue our investigation, and I think as I said earlier, as we look at the events here, we continue to be confident that SCE will be able to make a good faith showing that its actions were those of a reasonable utility operator.”

asked by Aidan Kelly · answered by Pedro Pizarro

Can management confirm whether the out-of-service transmission tower in Eaton was grounded?

Management confirmed the idle transmission line was grounded at both ends but noted photographic evidence showed anomalies with that grounding. They stated there's no common industry standard for grounding idle lines, but SCE has since changed its protocols to require grounding at endpoints and every two miles for longer lines, or shorter depending on topography.

“We have shared before that transmission line, the idle line was grounded at both ends. We have also shared that we had photographic evidence at the far end of the line that showed some anomalies and potential issues with that grounding and we've been transparent about all this from early on.”

asked by Aidan Kelly · answered by Pedro Pizarro