Edison Intl (EIX) Q3 2025 Earnings Call Transcript

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DATE

Tuesday, Oct. 28, 2025 at 4:30 p.m. ET

CALL PARTICIPANTS

President and Chief Executive Officer — Pedro J. Pizarro

Executive Vice President and Chief Financial Officer — Maria C. Rigatti

Vice President, Investor Relations — Sam Ramraj

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TAKEAWAYS

Core Earnings Per Share (EPS) -- Core earnings per share for the third quarter were $2.34, up from $1.51 a year earlier. The increase was largely attributed to a retroactive true-up for the 2025 general rate case.

2025 Core EPS Guidance -- 2025 core EPS guidance was narrowed to $5.95–$6.20 per share, This incorporates a potential $0.10 per share in costs tied to refinancing related to the TKM and Woolsey cost recoveries.

Core EPS Growth Target -- The 5%–7% core EPS growth target was reaffirmed, with a baseline of $5.84 for 2025 maintained for long-term projections.

General Rate Case (GRC) Decision -- Authorizes $9.7 billion in 2025 base revenue.

Capital Plan -- $28 billion–$29 billion capital plan for 2025–2028, reflecting infrastructure upgrades, electrification, and resiliency investments.

Rate Base Growth -- A 7%–8% rate base CAGR is projected for 2025–2028, after accounting for wildfire mitigation capital not earning equity returns under SB 254.

SB 254 Legislation -- An $18 billion continuation account is enacted to backstop wildfires ignited after September 19, 2025, clarifies liability caps, and allows securitization of claims, improving regulatory certainty on cost recovery.

Wildfire Settlements -- The TKM settlement was approved for approximately $1.6 billion in recovery; The pending Woolsey fire settlement will authorize approximately $2 billion in recovery out of $5.6 billion requested, subject to CPUC approval. Combined, these cover $3.6 billion (43%) above insurance/FERC recoveries.

Covered and Hardened Distribution Lines -- Over 6,800 miles of covered conductor have been deployed as of Q3 2025; Nearly 90% of more than 14,000 miles in high fire risk areas are anticipated to be hardened by the end of the year; The GRC authorizes 1,150 additional miles of covered conductor and 212 miles of targeted undergrounding as part of the 2025 general rate case.

Financing Plan -- 2025–2028 plan does not require any new equity issuance, supported by TKM and Woolsey cost recoveries; SCE expects to receive approximately $1.6 billion in securitization proceeds from the TKM settlement by year-end and plans to request $2 billion for Woolsey upon CPUC approval.

Credit Ratings -- Moody’s affirmed ratings with a stable outlook; Fitch removed negative watch citing SB 254, while S&P downgraded EIX and SCE by one notch but maintains projected credit metrics within target ranges.

Parent Preferred Equity Refinancing -- Early refinancing of preferred equity series with 2026 and 2027 reset dates under evaluation; The $0.10 per share in costs, recognized regardless of timing, is included in 2025 core EPS guidance.

Wildfire Fund and Eaton Fire -- The liability cap for the Eaton fire is approximately $4 billion based on the current rate date. SB 254 allows SCE to securitize claims payments before a reasonableness review if the initial fund is exhausted for fires between January 1 and September 19, 2025; No estimate of total Eaton fire losses has been provided as of Q3 2025.

Load Growth -- SCE projects up to 3% near-term load growth CAGR, with long-term projections indicating electricity sales will nearly double over the next two decades, driven by infrastructure, EV adoption, and broader demand.

System Average Rate -- Continues to be the lowest among major California IOUs.

SUMMARY

The passage of SB 254 fundamentally strengthens the recovery framework for wildfire-related costs, establishes a new $18 billion backstop account, and enhances the mechanism for the securitization of future claims, providing greater certainty for stakeholders. Management highlighted accelerated grid hardening, regulatory progress with the TKM and pending Woolsey settlements, and a large, multi-year capital plan, reducing financial uncertainty and enabling long-term EPS growth. SCE’s 2025–2028 financing strategy does not require new equity issuance. Anticipated proceeds from wildfire settlements are expected to support credit metrics for 2025 through 2028, even following an S&P downgrade. The company’s refreshed demand outlook supports expectations for sustained load and rate-base growth, with investments targeted at reliability, electrification, and wildfire risk mitigation. Fitch and Moody’s referenced SB 254’s risk mitigation effects in their latest credit assessments, while SCE’s balance sheet strength was emphasized through strong FFO-to-debt ratios and low parent-company leverage.

CEO Pizarro stated, "This comparison is not meaningful because during the quarter, SCE recorded a true-up for the 2025 general rate case final decision, which is retroactive to January 1."

Final GRC and recent settlements together authorize significant recovery of wildfire-related expenditures, with CPUC’s final decision on the Woolsey fire likely by early 2026.

SB 254’s second phase, due by April 2026, will evaluate reforms to further socialize natural disaster costs, with management expecting significant legislative action next year.

Discussions on parent preferred equity emphasized that any refinancing would entail a one-time $0.10 per share cost, which is included in 2025 core EPS guidance calculations.

SCE anticipates continued policy-driven demand growth, particularly in EV adoption, and future investments beyond 2028 were highlighted as necessary to meet long-term electrification goals.

Active engagement with the California Earthquake Authority and transparency in the phase two legislative process were identified as critical for future liability and risk allocation refinement.

INDUSTRY GLOSSARY

IOU (Investor-Owned Utility): A privately owned electric utility, regulated by public agencies and stockholder-owned, serving retail customers.

Covered Conductor: Overhead electric distribution wire insulated to reduce the risk of igniting wildfires upon contact with vegetation or debris.

GRC (General Rate Case): The comprehensive regulatory proceeding in California to set a utility’s authorized revenue requirement and investment for a multi-year period.

CPUC (California Public Utilities Commission): The state agency that regulates privately owned electric, gas, and water companies in California.

FFO to Debt: A credit metric expressing the ratio of funds from operations to total outstanding debt, widely used to assess financial leverage in utilities.

Securitization: The process of issuing debt backed by future cash flows, often used by utilities to finance large, extraordinary claims or investments with dedicated repayment streams.

Full Conference Call Transcript

Pedro J. Pizarro: Good afternoon, everybody. Today, Edison International reported third quarter core earnings per share of $2.34 compared to $1.51 a year ago. This comparison is not meaningful because during the quarter, SCE recorded a true-up for the 2025 general rate case final decision, which is retroactive to January 1. Reflecting the year-to-date performance and our outlook for the remainder of the year, including the costs for potential early refinancing activities later this year, we are narrowing our 2025 core EPS guidance range to $5.95 to $6.20 and are reaffirming our 5% to 7% core EPS growth target. Maria will discuss our guidance and financial performance in more detail.

We concluded California's legislative session with the passage of SB 254, a constructive and important step to support IOU customers, address wildfire risk, and boost the financial stability of the state's investor-owned utilities. The bill passed with near-unanimous support, and that's a clear signal that policymakers understand the urgency of the issue and the need for durable solutions. SB 254 creates an $18 billion continuation account jointly funded by IOUs and customers to provide a backstop for wildfires ignited after September 19, 2025. Importantly, it enhances the existing framework by basing the liability cap on the year of ignition rather than the year of disallowance, providing certainty for stakeholders.

It also allows for the securitization of wildfire claims payments for 2025 wildfires ignited between January 1 and September 19 if the initial wildfire fund is exhausted, which would apply to the Eaton fire if needed. These provisions are constructive for potential cost recovery and help utilities like SCE continue to invest in safety and reliability while maintaining affordability for customers.

We have provided a summary of SB 254 on page three. SB 254 calls for an important second phase, a comprehensive report due in April 2026 that will evaluate long-term reforms to equitably socialize the risks and costs of climate-driven natural disasters. The law recognizes that customers and shareholders continuing to bear the burden of these events is unsustainable. This second phase is important to evaluate the broad scope of potential reforms that are necessary for a sustainable model. As you will see on page four, the 10 points outlined in SB 254 can be grouped into three categories: first, reducing the risk of ignitions and harm from wildfires; second, affording fair compensation for people affected by wildfires, including avoiding disparate treatment of communities; third, allocating the risk and costs of natural catastrophes across stakeholders equitably. We are encouraged by this direction and by the executive order that Governor Newsom signed on September 30 to expedite the state's all-in response. We look forward to continuing to work with legislators and stakeholders to shape a more sustainable and equitable framework. We are confident that we will see meaningful legislative action next year.

Turning to the Eaton fire, the investigations remain ongoing. As we have said before, SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment could be found to have been associated with the ignition. During the third quarter, SCE entered into a settlement with an insurance claimant agreeing to pay 52¢ for each dollar paid to its policyholders. Note that this is a single data point and does not provide sufficient information to develop an estimate of the total potential losses associated with the Eaton fire. The wildfire fund administrator has confirmed that Eaton is a covered wildfire for the purposes of accessing the fund.

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 Eaton Canyon area was consistent with actions of a reasonable operator.

That said, we continue to take proactive steps to support community members. Shortly, SCE will launch the wildfire recovery compensation program for the Eaton Fire. This voluntary program is designed to provide eligible individuals and businesses impacted by the fire with direct payments to resolve claims quickly, allowing communities to focus on recovery earlier while minimizing the overall cost and outflows from the wildfire fund by reducing escalation interest expense and legal fees.

Moving to the regulatory front, the key message is that we've made significant progress across multiple proceedings this year, further derisking our financial outlook and bolstering our ability to deliver for customers and investors. Earlier this year, the CPUC approved the TKM settlement, authorizing recovery of approximately $1.6 billion in wildfire-related costs. More recently, SCE reached a settlement agreement with intervenors in the Woolsey fire proceeding as highlighted on page five. This marks a significant milestone and puts the company one step closer toward fully resolving the 2017 and 2018 legacy events. The agreement will authorize recovery of approximately $2 billion of the $5.6 billion requested, subject to CPUC approval.

This structure supports long-term affordability by reducing excess financing costs and improving credit metrics, specifically up to a 90 basis point benefit to FFO to debt and an annualized interest expense benefit of approximately 18¢ per share. Combined with the TKM settlement, this would result in recovery of 43% or about $3.6 billion of the total cost above insurance and FERC recoveries. We anticipate a final decision from the CPUC toward the end of this year or early next year, and assuming CPUC approval, we expect to receive proceeds from securitization mid-2026. Details of both proceedings can be found on page six.

SCE also received a final decision on its 2025 general rate case in September, as highlighted on page seven. The decision authorizes 2025 base revenue of $9.7 billion and supports significant investments in wildfire mitigation, safety and reliability, and upgrades for increased load growth, while incorporating affordability considerations for customers. It also authorizes average revenue increases of about $500 million per year for 2026 to 2028, subject to adjustment based on inflation. On capital expenditures, the final decision authorizes 91% of SCE's request. Importantly, the commissioners highlighted that these investments in the grid provide long-lasting value to customers, especially given the need to protect against wildfires, advance electrification, and ensure a ready reliable grid for the clean energy future.

On wildfire mitigation, SCE has now deployed more than 6,800 miles of covered conductor. I'm pleased to share that by the end of the year, SCE will have hardened nearly 90% or more than 14,000 miles of its total distribution lines in high fire risk areas. The GRC authorizes installing another 1,150 miles of covered conductor for wildfire mitigation, as well as 212 miles of targeted undergrounding. Similar to covered conductors, which continue to be an important risk mitigation tool, SCE believes that its targeted undergrounding program also provides substantial benefits to further safeguard its customers and communities. Public safety power shutoffs remain a critical tool in wildfire prevention.

This year's updates include revised criteria and wind speed thresholds, expanded circuit coverage, and broader boundaries around high fire risk areas.

Additionally, SCE has now enabled fast curve settings on approximately 93% of its 1,100 distribution circuits in high fire risk areas, further reducing ignition risk and improving system reliability. As we've shared before, SCE's system average rate continues to be the lowest among the major IOUs in the state. Importantly, the utility expects this will grow at an inflation-like level on average through 2028. Incorporating the GRC approval, TKM settlement, and pending Woolsey settlement, we continue to expect that CAGR to be in the range of 2% to 3%.

In closing, I want to thank our team members for their continued dedication and resilience. This has been a year of meaningful progress. I also want to thank our customers for the opportunity to serve them and our investors for your support. We remain deeply committed to learning from our experiences, but we also recognize that this has been a challenging time for so many of the communities we serve, particularly those impacted by wildfires. We are grateful for the opportunity to partner with customers, local stakeholders, and others to build a safer and more sustainable energy future. We look forward to continuing our dialogue with many of you at the EEI Financial Conference in November. We'll see you there.

And with that, Maria, I'll turn it over to you for your financial report.

Maria C. Rigatti: Good afternoon, and thanks, Pedro. I will echo your comments that we have made significant progress across multiple proceedings this year, further derisking our financial outlook and bolstering our ability to deliver for customers and investors. With the GRC final decision in hand, we now have increased certainty and visibility into the work SCE will do to meet customers' needs and have refreshed our projections through 2028. Consequently, starting with third quarter 2025 results, we are reaffirming our 5% to 7% core EPS growth target, which I will discuss in detail.

EIX delivered core EPS of $2.34, up from $1.51 a year ago. The year-over-year variance analysis is on page eight. As Pedro noted, this comparison is not meaningful because SCE recorded a true-up of approximately 55¢ for the 2025 GRC final decision, which is retroactive to January 1. Based on strong year-to-date performance and our outlook for the rest of the year, we are narrowing our 2025 core EPS guidance to $5.95 to $6.20, as you will see on page nine. This range now includes potential for 10¢ per share of cost associated with refinancing tied to the TKM and Woolsey cost recoveries.

As previously mentioned, our 2025 guidance does not include potential earnings associated with the Woolsey settlement. SCE is awaiting a decision on the settlement, and a final decision could be issued later this year or early next. We want to be clear that for measuring our core EPS growth through 2028, the 2025 baseline of $5.84 is unchanged from prior disclosure. Now I would like to discuss our refreshed projections, which we have summarized on page 10. Additionally, on pages 14 through 17, we put together a comprehensive list of frequently asked questions on guidance-related topics for background and easy reference.

Please turn to page 11, which lays out our four-year capital plan of $28 billion to $29 billion. This compares to our previous forecast for the same period of $27 billion to $32 billion. The plan incorporates substantial investments in infrastructure replacement, electrification, and system resiliency approved in SCE's GRC. Additionally, the plan now incorporates the utility's next-gen ERP project and other updates across the business, including wildfire mitigation capital that will be securitized under SB 254. We also continue to see the need for substantial grid investments beyond our forecast period. We've highlighted on the right side of the page two examples of this, with much of that spending occurring beyond 2028.

Driven by the capital plan, we project rate-based growth of 7% to 8% as shown on page 12. This growth is after incorporating the expected wildfire mitigation capital expenditures that will not earn an equity return under SB 254.

Moving on to our long-term core EPS growth target, as shown on page 13, we continue to expect 2028 core EPS of $6.74 to $7.14. You will find additional information on this topic on pages 14 and 15. Our confidence in delivering on our commitments is underpinned by the clarity we have from the GRC and our ability to manage our operations for the benefit of all stakeholders.

Let me now turn to our financing strategy and balance sheet strength. Over the last several years, we have executed efficient financing to support our target 15% to 17% FFO to debt framework. We have used hybrid securities to generate equity content when needed, avoiding substantial common equity issuance to prefund our capital plan. By year-end, SCE expects to receive approximately $1.6 billion in securitization proceeds from the TKM settlement. Following Woolsey settlement approval, the utility plans to request that financing order to securitize an additional $2 billion. These actions further strengthen our credit metrics and financing flexibility for funding future rate base and dividend growth.

Altogether, this leaves us very well placed among our peers on two key credit metrics. EIX has one of the strongest consolidated FFO to debt ratios projected by S&P. Also, we have one of the lowest levels of parent company debt as a percentage of total debt. Page 13 details our 2025 through 2028 financing plan. Let me highlight that this plan does not require any equity issuance. This expectation is supported by the TKM and Woolsey recovery. Further, as you know, the wildfire fund provides reimbursement for claims paid above an IOU's $1 billion of insurance.

Additionally, for fires between January 1 and September 19, 2025, the recently passed SB 254 allows the utility to issue securitized bonds prior to a reasonableness review to fund claims payments should the initial fund be exhausted. While we currently cannot estimate the probable losses associated with the Eaton fire, the constructive California liquidity and prudency framework means neither equity nor debt would need to be issued in connection with that event. Following the passage of SB 254, the rating agencies issued updates on the company. Moody's affirmed its ratings for both EIX and SCE with a stable outlook. Fitch removed its rating watch negative from both companies, citing SB 254 as a meaningful policy shift.

While S&P downgraded EIX and SCE by one notch, we believe this view does not fully recognize legislative intent or commentary from the governor's office. Importantly, S&P still expects our credit metrics to remain within our target, with upside potential from a constructive OLV outcome.

At the parent company, we are working on how to best address the preferred equity issuances that have upcoming rate resets. We are looking at cost-efficient options for early refinancing, which will bring forward both cost and the benefits of the transaction. The core benefit is the optimization and clarity of financing costs before the rate reset, which further derisks our financial outlook. We have considered the potential cost of this optimization in our narrowed 2025 core EPS guidance and see the long-term benefits outweighing the near-term cost.

I would like to update you on another positive trend we are seeing: load growth. As we have laid out on page 18, SCE remains well-positioned to meet the diverse and accelerating demand across its service area. Our team continues to anticipate significant investments in infrastructure upgrades to meet this growing demand, many of which were included in SCE's recent GRC approval. Importantly, our demand forecast is not reliant on a single sector. SCE is at the heart of California's EV adoption, helping the state maintain its national leadership in transportation electrification. In fact, the state recently announced a record 29% of new cars purchased in Q3 2025 were zero-emission vehicles. We're also expecting growth in new housing developments and increases in commercial and industrial consumption.

To sum up, we are expecting a near-term load growth CAGR of up to 3%. In the long term, we project electricity sales will nearly double over the next two decades.

I will conclude by saying that the company has made significant progress achieving certainty across numerous regulatory proceedings this year, allowing us to confidently reaffirm our long-term guidance. It underscores our ability to execute on our commitments and deliver for the customers and communities SCE serves, and for our investors. That concludes my remarks, and I'll turn it back to Sam.

Sam Ramraj: Denise, please open the call for questions. As a reminder, we request you to limit yourself to one question and one follow-up so everyone in line has the opportunity to ask questions.

Operator: Thank you. If you would like to ask a question, please press 1 on your phone. One moment, please, for the first question.

Nicholas Campanella: The first question is coming from Nicholas Campanella with Barclays. Your line is open.

Nicholas Campanella: Hey. Good afternoon. Thanks for all the information today. Just wanted to ask you. You brought up the 10¢ for the equity preferred as it relates to the '25 guide. Can you just kind of confirm is this is this is the 10¢ just a charge for both the 2026-2027 maturities, or is that still kind of up for debate? And then maybe just expand on what some of your options are for addressing that. Obviously, there's no equity coming to replace this. If I'm reading it correctly. Thanks.

Maria C. Rigatti: Sure. Well, right. So just to recap what you said, we have two preferred equity series with a rate reset in March 2026 and then again in March 2027. We issued those back in 2021, and that was to address the claims that we were paying related to TKM and Woolsey. And now that we have the TKM settlement approved and the securitization coming later this year as well as the Woolsey settlement pending approval, which will also be securitized, we're taking a look at all of our options at the holding company. So we are still evaluating the options.

We think that maybe taking some steps earlier rather than waiting for those March 2026 and March 2027 reset dates would be beneficial overall for the company. Anytime we do a refinancing, there will be a write-off of transaction costs, etc. And so that's what the 10¢ represents. That would happen regardless of whether we do it early or whether we did it at the actual reset date. But the options that we're looking at are pretty broad, and we'll have more to come on that.

Nicholas Campanella: Okay. I appreciate that. And then I guess as it relates to Eaton, you've launched this kind of recovery compensation program. Maybe you can kind of just discuss what the participation level has been in that. And does that allow you to have kind of a view on claims in more of an expedited manner? Is that something that we can maybe expect with the 10-K? And you know, I understand that there's very clear new protections in place from SB 254, which are helpful. But just when do you think that we'll have a low range estimate for what the liability against the fund would be?

Pedro J. Pizarro: Yeah. Hey, Nick. Let me jump in here. So we're not quite where you think we are yet. We haven't launched a program yet. We've announced that it's coming. We went through a process of releasing a draft protocol in September and then opening it up to feedback from the community. And so as I said in my remarks, we expect to be able to finalize the program and launch it shortly. And so regarding when that might lead or if it might lead to an estimate on losses, first is, as you point out, we'll need to see what the participation rate is.

Now I think that there's, you know, we're doing everything we can, and we've engaged really the world's best outside experts on this. Ken Feinberg and Camille Bieras, who were among other things, the architects of the 9/11 fund. So they've been providing great advice on this. We've gotten good input from the community. We're considering a number of potential changes beyond what we had released in draft form. But I do want to make sure I temper expectations. This will be a long process. And it's only one of the components of potential losses in a complex event like Eaton.

So you saw that, you know, I mentioned in my remarks already that we did the settlement with an insurance claimant. It was meaningful, but it's only one. And so we're not able to estimate even several losses just from that one data point. And so similarly, we'll have to see what kind of participation rate we get, and at some point, does it become material enough that it maybe allows us to start getting more hands around that portion of losses. But, of course, there are other kinds of losses in this. So very long way of saying that we're still where we were last quarter. We don't yet have an estimate of when we'll have an estimate.

Maria C. Rigatti: And, Nick, maybe just picking up on a couple of the other things you raised. The direct claims program is, of course, a good way to be good stewards of the fund. But you pointed directly to SB 254 protections that were introduced. So building on the protections of AB 1054, there were a couple of things that we think can apply to Eaton's do that in a constructive manner. First, the date at which liability cap is calculated is the point of ignition. So we'll know with clarity what the cap is for Eaton, which is approximately $4 billion based on our current rate date. The second piece relates to securitization that I mentioned earlier.

For fires that occur between January 1 and the effective date of the legislation, to the extent there is a need to go above the fund, and again, we don't know what the estimate is for Eaton, the company can securitize those claims before going in for a reasonableness review with the CPUC. That outcome is good for customers because it minimizes cost and interest expense. It's also good for the utility because it wouldn't need to issue any debt at that point or equity to fund the claims payment.

Nicholas Campanella: Very fair. And I appreciate the clarification there. Thank you.

Maria C. Rigatti: Thanks, Nick.

Operator: Thank you. The next question comes from Greg O'Real with UBS. Your line is open.

Gregg Gillander Orrill: Hi, Greg. Hi. Thank you for the update on guidance. Just a clarification, is there a part within the growth rate range that you feel you're trending toward now, the upper half or the lower half? Or maybe things that I know you provided some disclosure on what would take you within that range, but any other thoughts on that would be helpful.

Maria C. Rigatti: Greg, we are very comfortable and confident in the 5% to 7% EPS growth. Obviously, we run a lot of scenarios when we take a look at that. And there are many variables that can change either because it's a four-year period or because it is a complex business. I would just say that we did incorporate a lot of new information into our outlook. We have the GRC in hand. We had multiple regulatory proceedings over the past year around recovery of memo accounts that also contribute to capital. We had the TKM settlement. We have the securitization that's coming up. The Woolsey settlement that's pending approval. All of that, we put that together in the mix.

And I think the three key takeaways for me are not just reaffirming the 5% to 7% EPS CAGR, but also that we have significantly more clarity around that forecast and we have a stronger balance sheet. So we're still 5% to 7% is where we are, but I think there's a lot more behind that is very positive.

Gregg Gillander Orrill: Okay. Thank you.

Operator: The next question comes from Shar Pourreza with Wells Fargo. Your line is open.

Shar Pourreza: Hey, Shar. What are you guys back? I appreciate it. Thank you very much. Thank you very much. Pedro, I know there's obviously, there's clearly some improvement in the wildfire constructs from phase one even though they kind of kicked the can down the road and some of the key items there. I guess in terms of phase two process, what do you see as viable for limiting, you know, EIX's liability? And what will be the data points that you anticipate going into the legislative session? Like, is this gonna be a public process? Is this gonna be a private process? How do we track it? Thanks.

Pedro J. Pizarro: Yeah. No. Thanks, Shar. Good set of questions. And as I mentioned in my remarks, we are very encouraged by the legislature not only having taken the steps that Maria recapped just now in phase one, but setting up this phase two process. It's still being shaped, but the California Earthquake Authority as the lead entity here has been pretty articulate already in some key parts of the process, given that timeline. Right? For submission of abstracts across the various topics. That's November 3. Is the deadline for those abstracts. And then they have a deadline of December 12 for the full papers that parties can submit.

They have said already that they plan to make all of those submissions, both the abstracts and the papers public as they come in. So I think that's really helpful because it will give really nice transparency to everybody in terms of what various stakeholders are submitting and how they're thinking about things. For our part, we continue to work very closely with our colleagues at the other industrial utilities. And we'll be looking to engage with a broader set of stakeholders as we develop our ideas or compare notes with their ideas.

We also understand that CEA will have perhaps still being fine a little bit, but some process for open discussions, meetings, etc., between the submission of papers and the April 1 deadline for the final report. Was also encouraging. They had touched on this very briefly, but in my remarks, but it's very encouraging to see Governor Newsom turn to the various agencies with this executive order and essentially give out homework assignments for the expectations on how each agency would be contributing to specific items within the 10 areas that were outlined by SB 254 that I covered in my remarks as well.

So, you know, it's really nice to see not only the CEA putting out their process, but the governor then turning to the agencies and, you know, for some of the agencies that he can direct actually gave them direction for the agencies that are more constitutional where he can only provide advice or suggestions. He suggested focus areas, you know, for each of those. We'll see what comes out of, you know, in the report, although we're encouraged frankly, by this responsibility the leadership of it, having placed by SB 254 in the hands of the California Earthquake Authority.

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