Edison International (NYSE:EIX) Q3 2023 Earnings Call Transcript

Maria Rigatti : Yeah. So I don’t want to sort of recap everything I said earlier, but I’ll just take a few points. What I was saying in response, I think it was Anthony, who asked the question, first off, was that we have — the cost of capital mechanism, it’s related to interest rates. We have done a really good job completing our financing plan for 2023, hitting the marks that we have shared with you around our interest rate assumptions. The CCM, again, driven by interest rates and I’ll say the more recent volatility underscores the benefit of the CCM. We see that as a hedge against interest rate movements beyond what’s embedded in our forecast going forward, that’s it. Second part of it is that we do year in and year out look for opportunities to reduce costs for the benefit of the customer, and of course, the benefit of our overall operations.

We are managing the business every day. If we see an opportunity to accelerate benefits, we have four years — four years ahead of us. If we see an opportunity to accelerate lock-in benefits so that we can provide an even sure foundation for customer benefit going forward, we are going to do that. The plan is in work. And as I said during the prepared remarks, we’ll certainly share more with you on a go-forward basis.

Pedro Pizarro : And Paul, I would add just more broadly on the cost of capital mechanisms, I think I saw a report, there was a, where you had some questions about the mechanism or I think you may have been speculating on potential outcomes. I want to be really clear here. This kind of situation is precisely what this mechanism was built to deal with, right? When you’ve had the kinds of interest rate movements that have happened here. It’s not an extraordinary case in the sense of what the issue we had last year. We think it’s very much quarter parcel of what the mechanism will be signed to cover and to provide appropriate cost recovery. So that’s why you heard Maria say earlier when she was responding to Anthony’s similar question that — and we would expect this to be a fairly mechanical approach at the CPUC or by the Energy division, given that the mechanism is very strong, very clearly articulated and the condition static is now are precisely the conditions of the mechanism was meant to account for.

Paul Zimbardo : Okay, great. Thank you very much, team.

Maria Rigatti : Thanks, Paul.

Operator: Thank you. And that was our last question. I will now turn the call back over to Mr. Sam Ramraj.

Sam Ramraj: Well, thank you, everyone, for joining us. This concludes the conference call. Have a good rest of the day. You may now disconnect.