PG&E Corp (PCG) 2022 Q3 法說會逐字稿

Good morning, everyone, and welcome to PG&E Corporation's Third Quarter 2022 Earnings Release Conference Call. (Operator Instructions)

大家早上好，歡迎參加 PG&E Corporation 的 2022 年第三季度收益發布電話會議。 （操作員說明）

I would now like to turn the call over to Matt Fallon, Director -- Senior Director, Investor Relations. Mr. Fallon, you may now begin.

我現在想將電話轉給投資者關係高級總監 Matt Fallon。法倫先生，您現在可以開始了。

Good morning, everyone. Thank you for joining us for PG&E's third quarter earnings call. With us today are Patti Poppe, Chief Executive Officer; and Chris Foster, Executive Vice President and Chief Financial Officer.

大家，早安。感謝您參加 PG&E 第三季度財報電話會議。今天和我們在一起的是首席執行官 Patti Poppe；以及執行副總裁兼首席財務官 Chris Foster。

I want to remind you that today's discussion will include forward-looking statements about our outlook for future financial results. These are based on information currently available to management. Some of the important factors that could affect the company's actual financial results are described on the second page of today's third quarter earnings call presentation. The presentation also includes a reconciliation between non-GAAP and GAAP measures. The presentation can be found online, along with other information, at investor.pgecorp.com. We encourage you to review our quarterly report on Form 10-Q for the quarter ended September 30, 2022.

我想提醒您，今天的討論將包括關於我們對未來財務業績前景的前瞻性陳述。這些是基於目前可供管理層使用的信息。今天第三季度財報電話會議的第二頁描述了一些可能影響公司實際財務業績的重要因素。該演示文稿還包括非公認會計原則和公認會計原則措施之間的協調。該演示文稿以及其他信息可在investor.pgecorp.com 上在線找到。我們鼓勵您查看我們截至 2022 年 9 月 30 日的季度的 10-Q 表格季度報告。

With that, I'll hand it to Patti.

有了這個，我會把它交給帕蒂。

Thank you, Matt. Good morning, everyone. Thanks for joining us.

謝謝你，馬特。大家，早安。感謝您加入我們。

As you can see on Slide 3, we are on track to deliver our commitments to you. We've narrowed our non-GAAP core EPS range for 2022 to $1.09 to $1.11 per share. As Chris will discuss, we performed well in the third quarter, providing room to reinvest for our customers in the fourth quarter and deliver at the midpoint of our non-GAAP core EPS guidance. No more, no less.

正如您在幻燈片 3 中看到的那樣，我們正在向您兌現我們的承諾。我們已將 2022 年的非 GAAP 核心每股收益範圍縮小至每股 1.09 美元至 1.11 美元。正如克里斯將討論的那樣，我們在第三季度表現良好，為我們的客戶在第四季度進行再投資提供了空間，並在我們的非公認會計準則核心每股收益指導的中點實現。不多也不少。

In addition, we're initiating 2023 non-GAAP core EPS guidance. You probably won't be surprised, 2023 is in line with our projected 10% growth in a band of $1.19 to $1.23. We're also reiterating our at least 10% EPS growth for 2024 and at least 9% in 2025 and 2026. No change there.

此外，我們正在啟動 2023 年非 GAAP 核心每股收益指南。您可能不會感到驚訝，2023 年符合我們預計的 10% 的增長，區間為 1.19 美元至 1.23 美元。我們還重申 2024 年每股收益至少增長 10%，2025 年和 2026 年至少增長 9%。那裡沒有變化。

As you know, to fund growing important capital investment for our customers, we've been working on more efficient financing plans like the minority interest sale, Pacific Generation. We've been working on plans like this for some time within our 5-year planning process.

如您所知，為了為我們的客戶提供不斷增長的重要資本投資，我們一直在製定更有效的融資計劃，例如少數股權出售、Pacific Generation。在我們的 5 年規劃過程中，我們一直在製定這樣的計劃。

As a result, we're happy to report that we forecast no equity issuance for the remainder of this year, nor in 2023 nor in 2024. There will undoubtedly be ups and downs in that time frame as we continue to resolve legacy legal matters and regulatory investigations and proceedings. We want you to know that we work hard to provide flexibility for the unknowns with an eye toward maximizing the resources available to serve the needs of our customers.

因此，我們很高興地報告，我們預測今年剩餘時間、2023 年和 2024 年都不會發行股票。隨著我們繼續解決遺留法律問題和監管調查和訴訟。我們希望您知道，我們努力為未知事物提供靈活性，著眼於最大限度地利用可用資源來滿足客戶的需求。

Our goal is to be proactive, handle the ups and downs so that you don't have to. Our priority will always be to deliver the highest value investments for customers and deliver consistent financial results for you, our investors. Your capital is essential to our ability to make our system safer faster and to deliver for our customers.

我們的目標是積極主動，處理起起落落，這樣您就不必這樣做。我們的首要任務將始終是為客戶提供最高價值的投資，並為您，我們的投資者提供一致的財務結果。您的資金對於我們使我們的系統更快更安全並為我們的客戶提供服務的能力至關重要。

Moving to Slide 4. We continue to be focused on mitigating physical risk and mitigating financial risk. I want to highlight a couple of major accomplishments for the team during the third quarter.

轉到幻燈片 4。我們將繼續專注於降低物理風險和降低財務風險。我想強調一下球隊在第三季度取得的幾項主要成就。

First, we experienced a historic 10-day heat wave starting in late August, with all-time record high temperatures and all-time demand on September 6. PG&E and the people of California rose to the challenge. We avoided rotating power outages, and we restored 97% of impacted customers within 12 hours. This response is a wonderful example of the PG&E team in action, partnering with the state, our fellow utilities, the California ISO and our customers, mitigating physical risk for our hometowns.

首先，我們從 8 月下旬開始經歷了歷史性的 10 天熱浪，9 月 6 日創紀錄的高溫和空前的需求。PG&E 和加利福尼亞人民迎接挑戰。我們避免了輪流停電，並在 12 小時內恢復了 97% 的受影響客戶。這一回應是 PG&E 團隊在行動中的一個很好的例子，他們與州政府、我們的公用事業公司、加利福尼亞 ISO 和我們的客戶合作，為我們的家鄉減輕了物理風險。

Second, this quarter, on our vegetation management, our efforts since 2021 are recognized in the CPUC draft resolution recommending us to exit Step 1 of enhanced oversight. You may remember that we entered into this additional regulatory oversight as a result of our evolving vegetation management program and inconsistent risk model application in 2020. Our customers have benefited from the constructive feedback of our regulators, and we thank them for their transparency and engaging oversight.

其次，本季度，在我們的植被管理方面，我們自 2021 年以來的努力在 CPUC 決議草案中得到認可，建議我們退出加強監督的步驟 1。您可能還記得，由於我們不斷發展的植被管理計劃和 2020 年不一致的風險模型應用，我們進入了這項額外的監管監督。我們的客戶從監管機構的建設性反饋中受益，我們感謝他們的透明度和參與監督.

Another highlight of the quarter came as a result of the policymakers of California working hard through the legislative session to enable us to better serve our customers by passing 2 historic legislative packages, one for undergrounding and another to support the extension of our Diablo Canyon nuclear power plant. As I mentioned, we continue our focus on mitigating financial risk for our customers through our simple, affordable model, and mitigating financial risk for our investors by delivering consistent, predictable results and a stronger balance sheet.

本季度的另一個亮點是加州的政策制定者在立法會議上努力工作，通過兩項具有歷史意義的立法方案，使我們能夠更好地為我們的客戶服務，一個用於地下，另一個用於支持我們暗黑破壞神峽谷核電的擴展植物。正如我所提到的，我們繼續專注於通過我們簡單、負擔得起的模型為客戶降低財務風險，並通過提供一致、可預測的結果和更強大的資產負債表來降低投資者的財務風險。

Turning to Slide 5. We continue to add layers of protection that we estimate have mitigated 90-plus percent of the wildfire risk on our system today. Our layers start with our Wildfire Mitigation Programs, such as system hardening and undergrounding, vegetation management and enhanced inspections and repairs. We leverage Enhanced Power Line Safety Setting Technology and our Public Safety Power Shutoff tools to keep people safe when conditions require it.

轉到幻燈片 5。我們繼續添加保護層，我們估計這些保護層已經減輕了當今系統上 90% 以上的野火風險。我們的層從我們的野火緩解計劃開始，例如係統加固和地下工程、植被管理以及加強檢查和維修。我們利用增強型電力線安全設置技術和我們的公共安全電源關閉工具在條件需要時確保人員安全。

We extend that protection by engaging with first responders when an ignition does occur to make sure that we are using our collective knowledge and experience to minimize the impact of fire spread. And of course, we continue to evaluate innovative solutions to move above the 90-plus percent wildfire risk reduction with a specific focus on low-energy faults, which are typically not currently mitigated by EPSS.

當確實發生火災時，我們通過與第一響應者接觸來擴展這種保護，以確保我們利用我們的集體知識和經驗來最大程度地減少火災蔓延的影響。當然，我們將繼續評估創新解決方案，以超越 90% 以上的野火風險降低，特別關注 EPSS 目前通常無法緩解的低能量故障。

To address these faults, we're using partial voltage [force-out] and downed conductor detection capabilities. We've implemented partial voltage detection through our smart meters across the high fire risk areas and we've had 33 partial voltage force out since the program initiation in June, with 10 potential hazards identified that could have led to potential ignition.

為了解決這些故障，我們使用了部分電壓 [force-out] 和倒地導體檢測功能。我們已經通過我們的智能電錶在高火災風險區域實施了分壓檢測，自 6 月該計劃啟動以來，我們已經有 33 個分壓強制輸出，並確定了 10 個可能導致潛在點火的潛在危險。

For downed conductor detection, we've installed protection on over 5,000 miles of our overhead electric distribution lines in the high fire risk areas, and we've experienced 9 downed conductor detection outages to date, any one of which could have led to a potential ignition. We'll continue to innovate and push to further increase our wildfire mitigation above the estimated 90-plus percent in place today.

對於倒塌的導體檢測，我們在高火災風險區域的 5,000 多英里的架空配電線路上安裝了保護裝置，迄今為止，我們已經經歷了 9 次倒塌的導體檢測中斷，其中任何一次都可能導致潛在的點火。我們將繼續創新並推動進一步提高我們的野火緩解率，使其超過目前估計的 90% 以上。

Here on Slide 6, you'll see our systematic approach that enables our 90-plus percent wildfire risk mitigation today. We've implemented our enhanced power line safety settings across 43,000 miles of high fire risk areas and select adjacent areas. With this systematic approach in place in 2022, we've seen a meaningful reduction in both the number of ignitions and size of fires when ignitions do occur.

在幻燈片 6 中，您將看到我們的系統方法，該方法使我們今天能夠減輕 90% 以上的野火風險。我們已經在 43,000 英里的高火災風險區域和選定的相鄰區域實施了增強的電力線安全設置。通過在 2022 年實施這種系統化的方法，我們已經看到在確實發生點火時點火次數和火災規模都顯著減少。

While ignition count alone is a primary indicator of wildfire risk, not all ignitions are the same in terms of consequence, which is why we've developed this new metric, the Ignition Impact Measure. It's simply the sum of acres burned by CPUC reportable ignitions on primary distribution assets in high fire risk areas. This measure proves to us that EPSS works. Due to our efforts in 2022, despite 36% more R3 risk days in 2022 relative to the 2018 through 2020 average, we've seen a 99% reduction in the ignition impact measure.

雖然僅點火次數是野火風險的主要指標，但並非所有點火在後果方面都是相同的，這就是我們開發這個新指標的原因，即點火影響測量。這只是 CPUC 可報告點火在高火災風險地區的初級配電資產上燃燒的英畝數。這一措施向我們證明了 EPSS 是有效的。由於我們在 2022 年的努力，儘管 2022 年的 R3 風險天數相對於 2018 年至 2020 年的平均值增加了 36%，但我們已經看到點火影響措施減少了 99%。

Turning to Slide 7. We're committed to earning trust with policymakers in California, utilizing the simple, affordable model. The legislation on undergrounding and the Diablo Canyon extension fit right into the simple, affordable model, reducing financial risk by delivering safe, reliable, clean energy affordably to our customers.

轉到幻燈片 7。我們致力於利用簡單、負擔得起的模式贏得加利福尼亞政策制定者的信任。關於地下開采和暗黑破壞神峽谷擴建的立法完全符合簡單、負擔得起的模式，通過向我們的客戶提供安全、可靠、清潔的能源來降低財務風險。

The benefits of the undergrounding and Diablo Canyon extension bills are shown here on Slide 8. For undergrounding, the major benefit versus the prior construct is the longer-term work plan, which leads to real cost savings for customers. The new law allows us to provide certainty to our workforce, create longer-term partnerships for material and equipment and inform our hometowns about when they will benefit from their lines being buried. This long-term certainty is critical to accelerate permanent risk reduction of physical and financial risk for our customers.

地下工程和暗黑破壞神峽谷擴建法案的好處在幻燈片 8 上顯示。對於地下工程，與之前的建設相比，主要的好處是長期的工作計劃，這可以為客戶帶來真正的成本節約。新法律允許我們為我們的勞動力提供確定性，為材料和設備建立更長期的合作夥伴關係，並告知我們的家鄉他們何時將從他們的線路被埋葬中受益。這種長期的確定性對於加速永久降低我們客戶的物理和財務風險至關重要。

For the Diablo Canyon power plant extension, the new law is a key step to allow us to provide California with a large source of non-GHG emitting baseload power for another 5 years. The alternative would have been for us and other load-serving entities in California to procure more expensive baseload clean power to replace what is today over 8% of all of California's energy consumed, provided annually by Diablo Canyon.

對於暗黑破壞神峽谷發電廠的擴建，新法律是關鍵一步，使我們能夠在未來 5 年內為加州提供大量非溫室氣體排放基荷電力。對於我們和加利福尼亞的其他負荷服務實體來說，另一種選擇是採購更昂貴的基本負荷清潔能源，以取代目前由暗黑破壞神峽谷每年提供的加利福尼亞能源消耗總量的 8% 以上。

Replacing this power has proven challenging given clean energy supply constraints, and we estimate that this law will save customers several hundred million dollars relative to other potential baseload solutions. In addition to clean energy that provides savings to California electric customers, extending Diablo Canyon provides local jobs to over 1,000 PG&E coworkers and is a big boost to local businesses and the Central Coast economy.

鑑於清潔能源供應的限制，更換這種電源已被證明具有挑戰性，我們估計，與其他潛在的基本負荷解決方案相比，這項法律將為客戶節省數億美元。除了為加州電力客戶節省成本的清潔能源外，擴建暗黑峽谷還為 1,000 多名 PG&E 同事提供了當地就業機會，極大地促進了當地企業和中央海岸經濟。

Moving to Slide 9. We are early on our journey with policymakers, earning trust and establishing the stability necessary to attract capital to invest on behalf of our customers. It started in 2019 with the passage of AB 1054. AB 1054 provides a framework to keep California utilities financially healthy while we do the work necessary to mitigate wildfire risk. Building on the AB 1054 foundation, the 2 pieces of legislation passed in 2022 create the right outcomes for customers, mitigating physical risk and financial risk, further enhancing the California regulatory construct.

轉到幻燈片 9。我們在政策制定者的旅程中處於早期階段，贏得了信任並建立了必要的穩定性，以吸引資本代表我們的客戶進行投資。它始於 2019 年 AB 1054 的通過。AB 1054 提供了一個框架，以在我們開展必要工作以減輕野火風險的同時保持加州公用事業的財務健康。在 AB 1054 基礎上，2022 年通過的兩項立法為客戶創造了正確的結果，降低了物理風險和財務風險，進一步加強了加州的監管結構。

Looking ahead to 2023, we'll file our 10-year undergrounding plan, informed by feedback we receive from our various stakeholders, and we've proposed to finalize our potential sale of a minority interest in Pacific Generation, an example of our continuous effort on efficient financing.

展望 2023 年，我們將提交 10 年地下開採計劃，並根據我們從各個利益相關者那裡收到的反饋意見，我們已提議最終完成對太平洋發電少數股權的潛在出售，這是我們不斷努力的一個例子關於高效融資。

Earning trust also requires that we fulfill our regulatory requirements and meet our standards. When we identify a shortcoming, we own that outcome, communicate transparently and take appropriate corrective actions. This week, we're doing just that. We filed a self-report with the CPUC for a pole inspection standard gap that was identified by a team of my coworkers. Our standard did not match the CPUC standard. We found it and are on track to remediate all of the highest-risk poles in question by the end of the week.

贏得信任還要求我們滿足監管要求並達到我們的標準。當我們發現缺陷時，我們擁有該結果，透明地溝通並採取適當的糾正措施。本週，我們正在這樣做。我們向 CPUC 提交了一份自我報告，以了解我的一個同事團隊發現的電線桿檢查標準差距。我們的標準不符合 CPUC 標準。我們找到了它，並有望在本週末之前修復所有有問題的最高風險極點。

I've talked a lot about how we're using Lean here at PG&E. Our performance playbook is empowering our workforce and enabling us to make gaps to standards visible and allowing us to close the gaps, making us a better operator. This is an essential part of the turnaround and culture change here at PG&E. We need to have the will to change and the skills to execute. Our performance playbook enables both.

我已經談了很多關於我們如何在 PG&E 使用精益。我們的績效手冊正在賦予我們的員工力量，使我們能夠使與標準的差距變得可見，並使我們能夠縮小差距，使我們成為更好的運營商。這是 PG&E 轉型和文化變革的重要組成部分。我們需要有改變的意願和執行的技能。我們的性能手冊支持兩者。

Closing on Slide 10, our report card slide. You can see here how we're tracking on our goals for 2022 and beyond. We added the Mosquito fire to our CPUC reportable ignitions greater than or equal to 100 acres. Though the investigation is not complete, we can see that the fire started near the base of our 60 kV steel pool. As Chris will discuss, we booked a liability for the Mosquito fire of $100 million, which is well within our range of insurance.

在幻燈片 10 上結束，我們的報告卡幻燈片。您可以在此處查看我們如何跟踪 2022 年及以後的目標。我們在大於或等於 100 英畝的 CPUC 可報告點火中添加了蚊子火災。雖然調查尚未完成，但我們可以看到火災是在我們 60 kV 鋼水池的底部附近開始的。正如克里斯將討論的那樣，我們為蚊子火災預定了 1 億美元的責任，這完全在我們的保險範圍內。

We will miss our gas main miles replacement as we reallocated some funding to other higher-risk capital spend this year. This is a good example of our Lean operating system, making visible the best choices for our customers. We are comfortable making that visible to you too. You may also notice that we increased our annual rate base growth from 9% to 9.5% through 2026.

由於我們今年將一些資金重新分配給其他高風險資本支出，因此我們將錯過我們的天然氣主里程更換。這是我們精益操作系統的一個很好的例子，為我們的客戶提供了最佳選擇。我們也很樂意讓您看到它。您可能還注意到，到 2026 年，我們將年利率基數增長率從 9% 提高到 9.5%。

Our customers expect us to make the right infrastructure investments, and this investment reflects that. We will continue to do that and manage the affordability with our simple model. The other metrics are all on track, and we feel great about our progress.

我們的客戶希望我們做出正確的基礎設施投資，而這項投資反映了這一點。我們將繼續這樣做，並使用我們的簡單模型管理可負擔性。其他指標都在正軌上，我們對自己的進步感覺很好。

With that, I'll hand it over to Chris, who will discuss our financial and regulatory items.

有了這個，我會把它交給克里斯，他將討論我們的財務和監管項目。

Thank you, Patti, and good morning, everyone. As Patti mentioned, we remain focused on delivering our financial commitments this year, and we are reaffirming the 5-year plan with our 2022 to 2026 earnings growth guidance remaining the same.

謝謝你，帕蒂，大家早上好。正如帕蒂所說，我們今年仍然專注於兌現我們的財務承諾，我們重申 5 年計劃，我們的 2022 年至 2026 年盈利增長指導保持不變。

This morning, I have a few updates to share with you. To start, I'll recap our third quarter financial results. Then I'll walk you through the details of our 2023 guidance. And lastly, I'll provide a few highlights on regulatory and legislative items.

今天早上，我有一些更新要與大家分享。首先，我將回顧一下我們第三季度的財務業績。然後，我將帶您了解我們 2023 年指南的詳細信息。最後，我將重點介紹監管和立法項目。

Let's start on Slide 11. With non-GAAP core earnings per share for the quarter coming in at $0.29 and at $0.84 for the first 9 months, we're solidly on track to deliver the midpoint of our narrowed 2022 non-GAAP core EPS guidance of $1.10. As Patti mentioned, we took a charge of $100 million for the Mosquito fire this quarter, an estimated impact that is well within our available $940 million wildfire insurance and does not factor into our walk here. We expect applicable self-insurance for this fire to be recoverable in CPUC and FERC [rates].

讓我們從幻燈片 11 開始。本季度非 GAAP 核心每股收益為 0.29 美元，前 9 個月為 0.84 美元，我們有望實現我們縮小的 2022 年非 GAAP 核心每股收益指引的中點1.10 美元。正如帕蒂所說，本季度我們為蚊子大火收取了 1 億美元的費用，估計的影響完全在我們可用的 9.4 億美元的野火保險範圍內，並且不考慮我們在這裡的步行。我們預計這次火災的適用自我保險可以在 CPUC 和 FERC [費率] 中恢復。

Earlier this week, the CPUC issued a proposed administrative enforcement order related to the 2020 Zogg fire. The proposed order recommends a penalty of $155 million. We'll look to work with the CPUC to resolve the issues identified in the proposed order as we have with other CPUC enforcement actions.

本週早些時候，CPUC 發布了與 2020 年 Zogg 火災相關的擬議行政執法令。擬議的命令建議罰款 1.55 億美元。我們將尋求與 CPUC 合作，以解決在提議的命令中發現的問題，就像我們在其他 CPUC 執法行動中所做的那樣。

While we're showing strong results year-to-date in 2022, some of the benefit is timing related and some of the benefit reflects conservative planning. But because of these efforts, we'll invest back into the system as part of maximizing every available resource for our customers and meet our commitments to you. As Patti referenced, our active efforts during the year have also allowed us to eliminate equity needs for 2022.

雖然我們在 2022 年年初至今顯示出強勁的業績，但其中一些好處與時間相關，而一些好處反映了保守的計劃。但由於這些努力，我們將重新投資於該系統，以最大限度地為我們的客戶提供所有可用資源並履行我們對您的承諾。正如帕蒂所說，我們在這一年的積極努力也使我們能夠消除 2022 年的股權需求。

Turning to Slide 12. With 2022 nearly complete, we're initiating 2023 guidance, consistent with our existing 5-year guidance and reflective of our abundant customer safety and reliability capital investment opportunities. Our 2023 non-GAAP core EPS guidance is up 10% from our 2022 midpoint at $1.21, which reflected here within a tight range of $1.19 to $1.23. On the financing front, at the operating company, we expect to issue net long-term debt through 2023, largely in line with our planned CapEx, less depreciation and our improved capital structure.

轉到幻燈片 12。隨著 2022 年接近完成，我們將啟動 2023 年指導，這與我們現有的 5 年指導一致，並反映了我們豐富的客戶安全和可靠性資本投資機會。我們的 2023 年非 GAAP 核心每股收益指引較 2022 年的中點 1.21 美元上漲 10%，這反映在 1.19 美元至 1.23 美元的窄幅區間內。在融資方面，在運營公司，我們預計到 2023 年將發行淨長期債務，這在很大程度上符合我們計劃的資本支出、更少的折舊和我們改善的資本結構。

An important part of our financing plan is the sale of a minority interest in Pacific Generation filed with the CPUC last month. This proposed transaction would allow customers to retain the benefits of our flexible and clean generation portfolio with no bill impact while providing a source of funding to be invested in the system for their benefit. Our plan to utilize efficient financing from the proposed minority interest sale, along with moderating our parent debt paydown, result in us projecting no equity issuance in 2023 or 2024.

我們融資計劃的一個重要部分是出售上個月向 CPUC 提交的 Pacific Generation 的少數股權。這項擬議的交易將使客戶能夠在不影響賬單的情況下保留我們靈活和清潔發電組合的好處，同時為他們的利益提供投資於該系統的資金來源。我們計劃利用擬議的少數股權出售的有效融資，以及緩和我們的母公司債務償還，導致我們預計 2023 年或 2024 年不會發行股票。

I want to reinforce that customer affordability remains at the forefront of all our decision-making as we turn to Slide 13. Moderating customer bill growth to at or below inflation is our guidepost. And the simple, affordable model is how we will get there. Our proposed minority interest sale fits squarely into the efficient financing category shown here, with proceeds providing an alternative to equity issuance.

當我們轉向幻燈片 13 時，我想強調的是，客戶的負擔能力仍然是我們所有決策的首要考慮因素。將客戶賬單增長控制在或低於通脹水平是我們的指導方針。簡單、負擔得起的模型是我們實現目標的方式。我們提議的少數股權出售完全符合此處顯示的有效融資類別，收益提供了股權發行的替代方案。

As this transaction moves through the regulatory approval process, with a proposed transaction close date in Q4 2023, we are not slowing down our pursuit of additional O&M cost reductions. Our annual 2% nonfuel O&M cost reduction target remains another key aspect of our simple, affordable model, and we're making additional progress on this front in our 2023 general rate case.

隨著這項交易通過監管審批流程，擬議的交易結束日期為 2023 年第四季度，我們不會放慢進一步降低 O&M 成本的步伐。我們每年 2% 的非燃料 O&M 成本降低目標仍然是我們簡單、負擔得起的模型的另一個關鍵方面，我們在 2023 年一般費率案例中在這方面取得了額外進展。

Which takes us to my last topic, our key regulatory and legislative updates. Starting at the top of Slide 14, we received a proposed decision in an alternate proposed decision in our 2022 Cost of Capital proceeding. Both the proposed decision and the alternate acknowledges an extraordinary event occurred and that no automatic adjustment mechanism should be implemented.

這將我們帶到我的最後一個主題，即我們的主要監管和立法更新。從幻燈片 14 的頂部開始，我們在 2022 年資本成本訴訟程序中收到了備選提議決定中的提議決定。提議的決定和替代決定都承認發生了異常事件，並且不應實施自動調整機制。

The proposed decision calls for a second phase to determine the appropriate ROE for 2022, while the ultimate call for the ROE to remain at 10.25%. In the 2023 Cost of Capital case we expect to see a proposed decision in November, which will allow for a final decision before the end of the year.

提議的決定要求第二階段確定 2022 年的適當 ROE，而最終要求 ROE 保持在 10.25%。在 2023 年資本成本案例中，我們預計將在 11 月看到擬議的決定，這將允許在年底之前做出最終決定。

Moving to the 2023 General Rate Case. This month, we filed a settlement agreement that provides for 100% wildfire liability self-insurance. This is a great outcome for customers with the potential for up to $1.8 billion in savings over the 2023 to 2026 GRC period, and here's how it works.

轉到 2023 年一般費率案例。本月，我們提交了一份提供 100% 野火責任自保的和解協議。對於有可能在 2023 年至 2026 年 GRC 期間節省高達 18 億美元的客戶來說，這是一個很好的結果，這就是它的工作原理。

If approved, the settlement allows for self-insurance to be funded through CPUC jurisdictional rates starting at $400 million for test year 2023 and subsequent years into $1 billion of unimpaired self-insurance is reached. Given the high cost of wildfire insurance, this was a priority for PG&E, TURN and CAL advocates, and we'd like to thank the parties for working collaboratively on a constructive outcome for customers.

如果獲得批准，該和解協議允許通過 CPUC 管轄費率為 2023 年測試年的 4 億美元和隨後年份的自保提供資金，達到 10 億美元的未受損自保。鑑於野火保險的高成本，這是 PG&E、TURN 和 CAL 倡導者的優先事項，我們要感謝各方合作，為客戶帶來建設性成果。

We're asking for a final decision by February 2023 so we can lock in the self-insurance option for the 2023 policy year. The remainder of the 2023 general rate case continues to move through the process, with the final decision scheduled for the third quarter of 2023.

我們要求在 2023 年 2 月之前做出最終決定，以便我們可以鎖定 2023 保單年度的自我保險選項。 2023 年一般利率案例的其餘部分將繼續進行，最終決定定於 2023 年第三季度作出。

Moving down the slide, we will summarize the status on our outstanding recoveries related to Diablo wildfire risk reduction investments. We have approximately $5.7 billion outstanding at the end of the quarter. Of this amount, approximately $800 million has already been approved for cost recovery through 2023, and we anticipate an additional roughly $1 billion in additional recoveries in 2023 overall.

向下滑動幻燈片，我們將總結與暗黑破壞神野火風險降低投資相關的未償恢復狀況。截至本季度末，我們有大約 57 億美元的未償債務。其中，大約 8 億美元已獲准用於到 2023 年的成本回收，我們預計到 2023 年將額外回收大約 10 億美元。

This month, the CPUC issued both a proposed decision and an alternate proposed decision on our 2020 wildfire mitigation and catastrophic events application. While we are glad to see the movement in this case, we're disappointed with the proposed decision, both of which declined to adopt our settlement agreement in full, and we will be advocating for improvements.

本月，CPUC 就我們的 2020 年野火緩解和災難性事件申請發布了一項擬議決定和一項替代擬議決定。雖然我們很高興看到這種情況發生了變化，但我們對提議的決定感到失望，兩者都拒絕完全通過我們的和解協議，我們將倡導改進。

At the bottom of this slide, we highlight 2 important pieces of legislation signed by the governor last month. SB 884 provides support for a 10-year undergrounding plan, which we'll file in 2023. And SB 846 provides for the 5-year extension of Diablo Canyon, which, as Patti discussed, is a great outcome for our customers and our coworkers.

在這張幻燈片的底部，我們重點介紹了州長上個月簽署的兩項重要立法。 SB 884 為 10 年地下開採計劃提供支持，我們將在 2023 年提交該計劃。SB 846 為暗黑破壞神峽谷提供 5 年延期，正如帕蒂所討論的，這對我們的客戶和我們的同事來說是一個很好的結果.

I'll close on Slide 15 by reiterating that we are on track to deliver our 2022 financial targets, on plan to deliver predictable results and mitigate financial risk. Our 5-year commitment remains unchanged. Non-GAAP core EPS growth of at least 10% each year in 2022 to 2024 and at least 9% in 2025 and 2026.

我將在幻燈片 15 結束時重申，我們有望實現 2022 年的財務目標，併計劃提供可預測的結果並降低財務風險。我們的 5 年承諾保持不變。非 GAAP 核心每股收益在 2022 年至 2024 年每年至少增長 10%，在 2025 年和 2026 年每年至少增長 9%。

With that, I'll hand it back to Patti.

有了這個，我會把它還給帕蒂。

Thank you, Chris. As I wrap up our prepared remarks, I want to take a moment to thank Matt Fallon for his dedicated service to PG&E during a very difficult time. We wish Matt our very best, and I know you do, too.

謝謝你，克里斯。在我結束我們準備好的發言時，我想花一點時間感謝 Matt Fallon 在非常困難的時期為 PG&E 提供的熱忱服務。我們祝馬特最好的，我知道你也是。

By mitigating physical and financial risk for our customers and investors, we continue on our path toward making PG&E a premium utility, and we've made tremendous progress in 2022. We know we are rebuilding this utility in a way that can last. We are turning the page on our history, focused on the new PG&E story. We trust that you feel the momentum too.

通過為我們的客戶和投資者降低物理和財務風險，我們繼續將 PG&E 打造為優質公用事業公司，我們在 2022 年取得了巨大進展。我們知道我們正在以一種可以持續的方式重建這個公用事業公司。我們正在翻開歷史的一頁，專注於新的 PG&E 故事。我們相信您也會感受到這種勢頭。

With that, operator, please open the line for Q&A.

有了這個，接線員，請打開問答線路。

(Operator Instructions) Our first question comes from Shahriar Pourreza from Guggenheim Partners.

（操作員說明）我們的第一個問題來自 Guggenheim Partners 的 Shahriar Pourreza。

So just maybe starting off with the new 9.5% rate base CAGR you put out there. I guess, what are some of the moving pieces that caused you to tick up by that 50 bps? Is it just confidence around the prior range that was provided by undergrounding? Is it some of the investment opportunities from Diablo Canyon, baseline CapEx up? Is it all of the above? And I guess, can you just help bridge the driver of that increase? And is there any near-term opportunities that could further be incremental to that plan?

所以也許只是從你提出的新的 9.5% 的基礎複合年增長率開始。我想，是什麼讓你上漲了 50 個基點？只是對地下提供的先前範圍的信心嗎？是來自暗黑破壞神峽谷的一些投資機會，基線資本支出上升嗎？以上都是嗎？而且我想，你能幫助彌合這種增長的驅動因素嗎？是否有任何近期機會可以進一步增加該計劃？

Yes. Great question, Shahriar. Look, one thing that I have definitely learned is that we have a lot of work to do here at PG&E. And one thing that's been really interesting to watch is our new business applications. We have over 120,000 applications for new business in a given year.

是的。好問題，Shahriar。看，我確實學到的一件事是，我們在 PG&E 有很多工作要做。值得關注的一件事是我們的新業務應用程序。在某一年，我們有超過 120,000 份新業務申請。

And so as we're always looking to allocate capital and making sure we're serving all of our regions appropriately and making sure we have the best service for our customers, regardless where they live in our service area, we knew that we needed to really make sure that we had enough capital deployed to make -- to serve that new business and certainly.

因此，由於我們一直在尋求分配資金並確保我們為所有地區提供適當的服務，並確保我們為客戶提供最好的服務，無論他們住在我們服務區域的哪個地方，我們知道我們需要真的要確保我們有足夠的資金來部署——服務於新業務，當然。

The additional electrification that we're starting to see and our electric vehicle count continues to grow. And so capacity and new business will be a primary use. But as you can imagine, we do a lot of work on capital allocation and making sure that we can serve all of our regions well.

我們開始看到的額外電氣化和我們的電動汽車數量繼續增長。因此容量和新業務將成為主要用途。但正如你可以想像的那樣，我們在資本配置方面做了很多工作，並確保我們能夠很好地服務於我們所有的地區。

Got it. Perfect. And then just, Patti, looking at sort of your early outlook for financing. You guys reduced equity needs through '24, down to 0 and now you're targeting about $2 billion more in debt paydown. I guess what are some of the moving pieces and being able to get the offset? And just to confirm, you're now embedding the proposed equity sale of Pacific Generation. What are you assuming there since this process is, I guess, in more infancy stages still?

知道了。完美的。然後只是，帕蒂，看看你早期的融資前景。你們在 24 年將股權需求減少到 0，現在你們的目標是償還約 20 億美元的債務。我猜有哪些移動部件並且能夠獲得偏移量？只是為了確認一下，您現在正在嵌入 Pacific Generation 的擬議股權出售。你在那裡假設什麼，因為這個過程，我猜，還處於更多的嬰兒階段？

Hey, Shar. So I think, say, there's a couple of things moving around, obviously. But I think maybe the place to start is what are we solving for. I think Patti really hit it earlier, which is we've got substantial capital needs for the system. We're balancing that with going forward with the best economic decisions we can make on the financing itself. So that's why you heard us say moderating at the holdco debt paydown, eliminating equity needs for '23 and '24. And we're going to continue to target that mid- to high teens FFO to debt guide through the plan. So that hasn't changed. So really, we're constantly managing the ups and downs.

嘿，夏爾。所以我認為，很明顯，有幾件事正在發生變化。但我認為也許開始的地方就是我們要解決的問題。我認為 Patti 真的很早就做到了，這就是我們對該系統有大量資金需求。我們正在平衡這一點，以及我們可以就融資本身做出的最佳經濟決策。所以這就是為什麼你聽到我們說要緩和控股公司的債務償還，消除 23 年和 24 年的股權需求。我們將繼續以中高青少年 FFO 為目標，通過該計劃指導債務。所以這沒有改變。所以說真的，我們一直在管理起起落落。

A couple of the examples to think about even in the last couple of years: our San Francisco general office sale, the towers' related lease transaction, and now we've got the Pacific Generation transaction as well. It is embedded in the plan, Shar, right? We've got a current assumption for a year-end 2023 resolution at the CPUC. But obviously, we're going to be managing conservatively there around timing. So hopefully, that helps paint the moving pieces for you a bit.

甚至在過去幾年中也需要考慮的幾個例子：我們的舊金山綜合辦公室銷售，塔的相關租賃交易，現在我們也得到了 Pacific Generation 交易。它被嵌入計劃中，夏爾，對吧？我們目前假設 CPUC 會在 2023 年年底做出決議。但顯然，我們將圍繞時間進行保守管理。因此，希望這有助於為您繪製移動的部分。

No, it does. Fantastic. I'll jump back in the queue. See you guys soon, and congrats, Mr. Fallon.

不，確實如此。極好的。我會跳回隊列中。很快見到你們，恭喜法倫先生。

Thanks, Shar.

謝謝，夏爾。

Our next question comes from Steve Fleishman from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Steve Fleishman。

So great to see some of this progress and also great to see it getting reflected in the stock price recently, but obviously begs the question, just is there any color on the Fire Victim Trust and how they're thinking about things now that the stock looks like it might actually be above where they got it at?

很高興看到其中的一些進展，也很高興看到它最近反映在股價中，但顯然引出了一個問題，火災受害者信託基金是否有任何顏色，以及他們現在如何看待股票看起來它實際上可能在他們得到它的地方之上？

Sure, Steve. As you can imagine, we remain in continuous contact with the Fire Victim Trust, just given they are a large shareholder of the company. But at this point, it's definitely a very explicit decision in terms of execution of any kind of financing.

當然，史蒂夫。正如您所想像的那樣，我們一直與火災受害者信託基金保持聯繫，因為他們是該公司的大股東。但在這一點上，就執行任何類型的融資而言，這絕對是一個非常明確的決定。

Most recently, certainly, all that we saw in the market are roughly 35 million shares, just over, I think, about a month ago. So at this point, as you can imagine, it's tough for us to predict any future explicit transaction there.

最近，當然，我們在市場上看到的所有股票大約是 3500 萬股，我想，大約一個月前。因此，正如您可以想像的那樣，在這一點上，我們很難預測那裡未來的任何顯式交易。

Okay. Good. And then just on the minority sale and looking at your rate base, is that -- is the rate base associated with that potential sale included in your rate base still? Could you just remind us how much that would be?

好的。好的。然後就少數群體銷售並查看您的費率基礎，是否 - 與潛在銷售相關的費率基礎是否仍然包含在您的費率基礎中？你能提醒我們那會是多少嗎？

Sure, Steve. I think it's very limited is the way to think about it. You'd look at it and probably see about $0.03 total change. But that's -- in terms of our overall plan, that's pretty easy for us to manage here over that time frame. So really, for us, it's about the efficient financing that this opportunity provides, which is why this is really about the focus here over the next couple of years.

當然，史蒂夫。我認為這是非常有限的思考方式。你會看到它，可能會看到大約 0.03 美元的總變化。但這 - 就我們的整體計劃而言，我們很容易在那個時間範圍內進行管理。所以，對我們來說，這真的是關於這個機會提供的有效融資，這就是為什麼這真的是未來幾年的重點。

Okay. But it's still in the rate base data, so we just make that adjustment once we see something. That's not like pulled out already of the rate base?

好的。但它仍然在費率基礎數據中，所以我們只要看到一些東西就進行調整。那不是已經退出了利率基礎嗎？

That's correct. We did not explicitly pull it out. Yes, thanks for the clarifying question.

這是正確的。我們沒有明確地把它拉出來。是的，謝謝你的澄清問題。

And then last question is just in terms of the overall financing environment and, I guess, kind of combining with kind of IRA impacts. Could you just talk to whether the kind of higher cost financing environment and IRA and all those things are kind of embedded in this kind of refresh plan? Is there anything we need to be watching? Yes.

然後最後一個問題只是就整體融資環境而言，我想這與 IRA 的影響相結合。您能否談談這種更高成本的融資環境和 IRA 以及所有這些東西是否包含在這種更新計劃中？有什麼我們需要看的嗎？是的。

Yes, they definitely are embedded. In fact, we were able to update our general rate case here recently, which really showcased the next 4 years of IRA impacts. So really, you could see that no material impacts in terms of the overall plan itself in the 5-year plan.

是的，它們肯定是嵌入的。事實上，我們最近能夠在這裡更新我們的一般利率案例，這確實展示了 IRA 未來 4 年的影響。所以真的，你可以看到，在五年計劃中，總體規劃本身並沒有實質性的影響。

What I would offer is kind of 2 different points, though. One, the customer benefits that can come here from the IRA's passage is substantial. We're talking probably over $0.5 billion over the next 10 years, just purely in customer savings from reduced pricing on the renewable energy contracts and PPAs that we pursue.

不過，我會提供兩種不同的觀點。第一，IRA 的通過給客戶帶來的好處是巨大的。我們談論的未來 10 年可能超過 5 億美元，這純粹是因為我們追求的可再生能源合同和 PPA 價格降低，從而為客戶節省了成本。

Then in the near term, as we look at interest rate pressure, we've already assumed that rates continue to go up. And just as a reminder for us, in terms of a rule of thumb, you can probably look at a 100 basis point move for the company's up or down is roughly $0.02 up or down. So we've already managed roughly $60 million in impacts this year and are comfortable, again, managing that going forward.

然後在短期內，當我們看到利率壓力時，我們已經假設利率會繼續上漲。作為對我們的提醒，根據經驗法則，您可能會看到公司上漲或下跌 100 個基點的波動約為 0.02 美元。因此，我們今年已經管理了大約 6000 萬美元的影響，並且再次對未來的管理感到滿意。

Our next question comes from Julien Dumoulin-Smith from Bank of America.

我們的下一個問題來自美國銀行的 Julien Dumoulin-Smith。

Congratulations on the continued success here. Really, really impressive. Just if I can -- clarifying a couple of things, thus far. Your '23 outlook here, I mean, given the step-up in rate base, one might have thought there might have been a bigger jump in earnings here. Can you elaborate a little bit on the moving pieces here?

祝賀這裡繼續取得成功。真的，真的很感人。只要我能 - 澄清幾件事，到目前為止。我的意思是，鑑於利率基數的提高，您對 23 年的展望可能會認為這裡的收益可能會有更大的增長。你能詳細說明一下這裡的移動部分嗎？

Clearly, the front-end impact of a sale here of rate base, you said $0.03 a moment ago, what would be one of potentially a plurality of items here. But can you talk about it outside of just the conservatism in your plan about the bigger step-up in rate base versus earnings?

很明顯，這裡出售價格基數的前端影響，你剛才說 0.03 美元，這裡可能是多個項目之一。但是，您能否在計劃中的保守主義之外談論它，即利率基數相對於收益的更大提升？

And then separately, I'm just throwing a quick second question at the same time. The '25 and '26 [bio emission], are you saying that there's still kind of an equity balance sheet need?

然後分別，我只是同時快速提出第二個問題。 '25 和 '26 [生物排放]，您是說仍然需要股權資產負債表嗎？

Thank you, Julien. A couple of things. First, as you know, we do plan conservatively, and that's how we can be confident in our forward-looking equity forecast as well as our -- in equity guidance as well as our earnings guidance. Our goal is to ride those ups and downs. And we still, as I mentioned, we'll see legacy items. We'll see items of opportunity, and we'll see items that we can invest back in the business.

謝謝你，朱利安。有幾件事。首先，如您所知，我們確實進行了保守的計劃，這就是我們對前瞻性股票預測以及我們的股票指引和盈利指引充滿信心的方式。我們的目標是度過這些起伏。正如我所提到的，我們仍然會看到遺留項目。我們將看到機會項目，我們將看到我們可以投資於業務的項目。

It is always going to be #1 for us to be balancing affordability with quality of service. And so that's -- those are the trade-offs and the [positions] that we balance against. And so that's what drives our earnings forecast. We think that added 10% EPS growth, we feel good about that, and we feel good that we can consistently deliver. And that's what is most important to us and to our customers, and I think that's how we best serve investors as well.

平衡可負擔性與服務質量始終是我們的第一要務。所以這就是我們要權衡的權衡和[職位]。這就是推動我們盈利預測的原因。我們認為增加了 10% 的每股收益增長，我們對此感覺良好，並且我們對能夠持續交付感到良好。這對我們和我們的客戶來說是最重要的，我認為這也是我們為投資者提供最佳服務的方式。

Got it. On '25 and '26 there? Maybe a Chris question.

知道了。在'25和'26那裡？也許是克里斯的問題。

Sure, Julien. I was just getting ready to jump in. I think that as we look at the timing, really, around the Alpine -- excuse me, around the Pacific Generation sale, at this point, you can imagine we'll be getting greater certainty as we go into next year. We've got a midyear time frame of an initial view from the CPUC, at least, in what we've requested. And so once we can get further along there, I think once we also look at our dividend reinstatement, right, we're going to be able to give a better view on equity as we go out to '25 and '26. Certainly, at this point, just too early.

當然，朱利安。我正準備加入。我認為，當我們考慮時機時，真的，在阿爾卑斯山附近——對不起，在太平洋一代銷售期間，在這一點上，你可以想像我們將獲得更大的確定性，因為我們進入明年。至少按照我們的要求，我們已經從 CPUC 獲得了初步視圖的年中時間框架。因此，一旦我們能在這方面走得更遠，我認為一旦我們也考慮恢復股息，對，我們將能夠在 25 和 26 年時更好地了解股權。當然，在這一點上，還為時過早。

Yes. No, you give something, we want more, right, always.

是的。不，你給了一些東西，我們想要更多，對，總是。

We know, Julien. We know. We know. We're just keeping it on the straight and narrow here. Thank you.

我們知道，朱利安。我們知道。我們知道。我們只是在這裡保持直線和狹窄。謝謝你。

Indeed. Congratulations and nice [movement], Patti, on bringing the conservatism back into the plan that we know you for.

的確。帕蒂，恭喜你，把保守主義帶回我們認識你的計劃中。

Thank you, Julien.

謝謝你，朱利安。

Our next question comes from Michael Lapides from Goldman Sachs.

我們的下一個問題來自高盛的 Michael Lapides。

I actually have 3. I apologize for 3 questions. I'll just rattle them off. I think 2 are probably for Chris, one for Patti.

我實際上有 3 個。我為 3 個問題道歉。我只會把它們吵掉。我想 2 個可能是給 Chris，一個給 Patti。

The 2 for Chris. Just curious, as you think out a few years, how much in the way of holding company debt do you want to keep up top? That's question one. Question two is, can you remind us what your cash tax position will be post-IRA, and whether that impacts the level of cash taxes going forward?

2 給克里斯。只是好奇，當你思考幾年的時候，你想在持有公司債務的方式上保持多少？那是問題一。問題二是，您能否提醒我們您在 IRA 之後的現金稅狀況如何，以及這是否會影響未來的現金稅水平？

And then Patti, for you, labor availability. I know labor rates for -- and I'm thinking a line or craft and folks who work on the system. I know labor rates are up a lot, especially in your region. But are you seeing any challenges in the actual availability regardless of costs?

然後是帕蒂，對你來說，勞動力可用性。我知道人工費率 - 我正在考慮生產線或工藝以及在系統上工作的人。我知道勞動力價格上漲了很多，尤其是在您所在的地區。但是，無論成本如何，您是否看到實際可用性方面的任何挑戰？

Okay. Chris, why don't you take the first 2, and then I'll take number 3.

好的。克里斯，你為什麼不選前 2 個，然後我選第 3 個。

Sure, happy to. Michael, it's here on the first one in terms of holdco debt, again, as a reminder, we've got $4.75 billion in holdco debt at this point. And what we updated this morning is, as we're looking through the plan from now through 2026, we anticipate reducing that over $2 billion. So the $2 billion-plus number that we provided this morning.

當然，很高興。邁克爾，就控股公司債務而言，這是第一個，再次提醒一下，我們目前有 47.5 億美元的控股公司債務。我們今天早上更新的是，從現在到 2026 年，我們正在研究該計劃，我們預計將減少超過 20 億美元。所以我們今天早上提供的超過 20 億美元的數字。

On cash taxes, at this stage, we were, again, pretty specific in terms of our filing, in terms of our general rate case specifically there. It's tough for me to be much more specific on cash taxes other than to say -- what we experienced in the 5-year plan was really a generally offsetting impact from the corporate minimum tax and then the depreciation provisions that were embedded there. So really no material impact in the plan in the near term.

在現金稅方面，在這個階段，我們在申報方面非常具體，特別是在我們的一般稅率案例方面。我很難對現金稅做出更具體的說明，除了說——我們在 5 年計劃中所經歷的實際上是企業最低稅以及其中嵌入的折舊條款的普遍抵消影響。所以短期內對計劃確實沒有實質性影響。

And then I'll go on to question 3 on the labor availability. Michael, it's a great question. And I'm really -- I just need to give a shout out to our labor partners, the ESC and the IBEW have been extraordinary partners for us as we've been really turning around the company.

然後我將繼續討論關於勞動力可用性的問題 3。邁克爾，這是一個很好的問題。我真的 - 我只需要向我們的勞工合作夥伴大聲疾呼，ESC 和 IBEW 一直是我們非凡的合作夥伴，因為我們一直在扭轉公司。

And just one example. We felt like we were -- we could do a better job serving the Bay Area, specifically San Francisco and the City of Oakland, and we had a challenge staffing those communities. And we worked with our union. And in fact, we challenged ourselves to add 100 new line workers for the city of San Francisco and Oakland, and we weren't sure we would be able to find those resources. And in fact, we have.

只是一個例子。我們覺得我們是——我們可以更好地為灣區服務，特別是舊金山和奧克蘭市，我們面臨著為這些社區配備人員的挑戰。我們與工會合作。事實上，我們挑戰自己，為舊金山和奧克蘭市增加 100 名新的生產線工人，但我們不確定是否能夠找到這些資源。事實上，我們有。

And the beauty of that is, as we hired those line workers to work here at PG&E, we were able to actually save money because we were paying premiums for contractors. And we ended up saving over $8 million by in-sourcing 100 new line workers. So it's really an incredible opportunity to work with our labor unions. People want to work at PG&E, and we're able to attract that talent.

這樣做的美妙之處在於，當我們僱傭這些生產線工人在 PG&E 工作時，我們實際上能夠省錢，因為我們為承包商支付了保費。通過內購 100 名新生產線工人，我們最終節省了超過 800 萬美元。因此，與我們的工會合作確實是一個難得的機會。人們想在 PG&E 工作，而我們能夠吸引這些人才。

Our next question comes from Nicholas Campanella from Credit Suisse Financial Services.

我們的下一個問題來自瑞士信貸金融服務公司的 Nicholas Campanella。

I dropped, so hopefully, I'm not repeating a question here. But I guess, just since you kind of announced this minority interest sale and the strategy around Pacific Generation, have you had incomings of interest on the assets? And can you give us any kind of detail on how those conversations have been? And just overall interest in the assets would be helpful.

我放棄了，所以希望我不會在這裡重複一個問題。但我想，就在您宣佈出售少數股權以及圍繞太平洋發電的戰略之後，您是否收到了對資產的興趣？你能告訴我們這些對話的細節嗎？只是對資產的整體興趣會有所幫助。

Nick, absolutely. No, thanks for the question. I know it's a busy morning. This hasn't been asked. So happy to give you color, at least, in what we can. Again, the portfolio itself is one that is very clean, right? We're talking about 5.6 gigawatts, with 75% of it plus is completely GHG-free and a very straightforward predictable regulatory environment for these assets themselves. So because of that, certainly have had interest in the assets themselves.

尼克，絕對的。不，謝謝你的問題。我知道這是一個忙碌的早晨。這還沒有被問到。很高興至少在我們力所能及的範圍內給你顏色。同樣，投資組合本身非常乾淨，對嗎？我們談論的是 5.6 吉瓦，其中 75% 加上完全不含溫室氣體，並且為這些資產本身提供了一個非常簡單可預測的監管環境。因此，正因為如此，肯定對資產本身產生了興趣。

But let me maybe help give you some color on timing, right, and the time frame we're looking at. We have already filed the request of the CPUC for the ability to create the subsidiary at the utility. So the way I would think about this in terms of our timing, we'll be in that marketing process with counterparties in Q1 next year.

但是，讓我也許可以幫助您了解時間，對，以及我們正在研究的時間框架。我們已經向 CPUC 提出了在公用事業公司創建子公司的請求。因此，按照我們的時間安排，我會考慮這一點，我們將在明年第一季度與交易對手進行營銷過程。

So it's a little premature for me to give a whole lot of color, other than to say, definitely, it had inbounds -- inbounds definitely have had interest. But we want to make a little bit more progress, first, here on the underlying case itself before we get into those detailed diligence discussions.

所以我現在給出很多顏色還為時過早，除了說肯定有界外球——界內球肯定有興趣。但我們希望取得更多進展，首先，在我們進行詳細的盡職調查之前，先談談基礎案例本身。

Got it. That's helpful. That's helpful. And then just on the credit side, a lot of positive data points across the board this year. The credit right neutral securitization and you seem to be on the path to achieve the FFO to debt targets that you've lined out. Just what are the conversations with the agency has been? How should we just kind of think about timing to get back to investment grade at the holdco?

知道了。這很有幫助。這很有幫助。然後只是在信用方面，今年有很多積極的數據點。信用權中性證券化，您似乎正在朝著您設定的債務目標的 FFO 邁進。與該機構的對話是什麼？我們應該如何考慮在控股公司恢復投資級別的時機？

Sure. Very focused there, Nick, as you can imagine, it's really 2 things for us. It's -- first, it's the quantitative measures, consistently focused there on FFO to debt, as we've talked about and we think that trajectory of mid- to high teens puts us on that path to continue to walk up beyond the positive outlooks that we recently saw.

當然。尼克非常專注，正如你可以想像的那樣，這對我們來說真的是兩件事。它是 - 首先，它是量化指標，始終關注 FFO 到債務，正如我們已經談到的那樣，我們認為中高齡青少年的發展軌跡使我們走上這條道路，繼續超越積極的前景我們最近看到了。

Additionally, I think it's really important, some of the highlights that we were able to provide this morning show progress on the qualitative component. Patti really hit in detail the progress we're making with 99% risk reduction as it relates to our EPSS protocols. That's the essence of the improvements we need to be able to show operationally.

此外，我認為這非常重要，我們今天早上能夠提供的一些亮點顯示了定性部分的進展。 Patti 確實詳細介紹了我們在將風險降低 99% 方面取得的進展，因為這與我們的 EPSS 協議有關。這就是我們需要能夠在操作上展示的改進的本質。

Additionally, the final key piece is consistent, timely straightforward regulatory outcomes. And I think that, that's what we're starting to see. We showcased both on the legislative and the regulatory side progress being made, on the legislative side with the Diablo Canyon legislation as well as undergrounding. And then it's up to us to now file next year a comprehensive 10-year undergrounding plan and really execute that work effectively.

此外，最後的關鍵部分是一致、及時、直接的監管結果。我認為，這就是我們開始看到的。我們展示了立法和監管方面正在取得的進展，在立法方面與暗黑破壞神峽谷立法以及地下化有關。然後我們現在要在明年提交一份全面的 10 年地下開採計劃，並真正有效地執行這項工作。

Similarly, on the regulatory side, I think that we've got right in front of us here cost of capital-related decisions that are going to be important to showing the rating agencies progress on, again, both quantitative, in terms of the episode debt and then qualitative on both operational and regulatory efforts that are underway.

同樣，在監管方面，我認為我們面前擺在我們面前的是與資本相關的決策成本，這對於顯示評級機構在量化方面的進展非常重要。債務，然後對正在進行的運營和監管工作進行定性。

All right. Thanks so much team, and Matt, pleasure working with you.

好的。非常感謝團隊和馬特，很高興與您合作。

Thanks, Nick.

謝謝，尼克。

Our next question comes from Gregg Orrill from UBS.

我們的下一個問題來自瑞銀的 Gregg Orrill。

So as you get to the point where you're tapping the Wildfire Fund, can you please sort of remind me of the process there and the time line? And if there's any sort of review around that and how you think about it?

所以當你到了你要利用野火基金的時候，你能提醒我那裡的過程和時間線嗎？如果對此有任何形式的評論以及您如何看待它？

Sure. Gregg, I think there's a few steps that I can lay out there for you. So specifically, this would relate to the charge we've taken on the Dixie fire, where the implication would be a roughly -- very small, but a roughly $150 million impact to the Wildfire Fund.

當然。格雷格，我想我可以為你列出幾個步驟。因此，具體而言，這將與我們對 Dixie 火災的指控有關，這意味著對野火基金的影響大致非常小，但大約為 1.5 億美元。

So the way to think about this is, we'll work our way through now the various legal claims themselves. Traditionally, it takes -- you really don't get your arms around really the totality of the legal claims for roughly 2 to 3 years. Then we embark upon settlement and resolution or litigation of those claims.

所以考慮這個問題的方法是，我們現在將通過各種法律索賠本身來解決問題。傳統上，這需要大約 2 到 3 年的時間——你真的沒有真正了解所有的法律索賠。然後我們著手解決和解決這些索賠或提起訴訟。

At that stage, you then move forward with a review at the CPUC of roughly 12 to 18 months, right? So you've got 3 years, then you add another 18 months for our filing related to prudency under the new AB 1054 improved construct. Only after that, once we've resolved -- and I believe the wording in the law is substantially resolved, most of the claims, only then would you be knocking on the door of the Wildfire Fund for those recoveries.

在那個階段，您會在 CPUC 進行大約 12 到 18 個月的審查，對嗎？因此，您有 3 年的時間，然後再增加 18 個月，以便我們根據新的 AB 1054 改進結構提交與審慎性相關的文件。只有在那之後，一旦我們解決了——而且我相信法律中的措辭已經基本解決，大多數索賠，只有到那時你才會敲開野火基金的大門以獲得這些追償。

And so as you've seen at this stage in terms of our -- both the charge we took and the offsetting receivables, we are confident at this point that in terms of our actions at that location as a prudent operator to be able to have both recoveries above insurance at the CPUC and FERC as well as recoveries at the Wildfire Fund, but it will be a few years ahead of us.

因此，正如您在現階段所看到的 - 我們收取的費用和抵消的應收賬款，我們現在有信心，就我們在該地點的行動而言，作為一個謹慎的運營商能夠擁有CPUC 和 FERC 的保險回收率以及野火基金的回收率都高於保險，但我們將提前幾年。

Okay. And then the realization of the tax benefits related to the Fire Victims Trust sales, what's the timing of how that comes through? How does that work?

好的。然後實現與 Fire Victims Trust 銷售相關的稅收優惠，具體時間是什麼時候？這是如何運作的？

So we recognize -- thank you, Gregg. We do recognize those tax benefits. You'd see those on a quarterly basis as we update each quarter because any time there is a sale, both the Fire Victim Trust enjoys the tax benefit as well as the company. So we would -- you would see that updated as the [three] sales have happened this year directly into our financials in the subsequent quarter.

所以我們承認-- 謝謝你，Gregg。我們確實承認這些稅收優惠。當我們每季度更新一次時，您會每季度看到一次，因為任何時候有銷售，火災受害者信託基金和公司都享有稅收優惠。所以我們會 - 你會看到隨著今年[三]銷售直接進入我們下一季度的財務狀況而更新。

Congratulations.

恭喜。

Thank you, Gregg.

謝謝你，格雷格。

Thanks, Gregg.

謝謝，格雷格。

Our next question comes from David Arcaro from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 David Arcaro。

I was wondering if you could speak to the GRC. There was your recent update related to inflation, had a fairly significant impact on just the higher rate base level that's getting requested there. Wondering if you could just give a sense of are those inflation numbers -- they were fairly mechanical so are they real? How are you interpreting them in terms of the costs of the business for the next couple of years? And how might the commission interpret those inflation adjustments that were made?

我想知道你能不能和 GRC 談談。您最近更新了與通貨膨脹有關的信息，僅對那裡要求的較高利率基礎水平產生了相當大的影響。想知道您是否可以了解這些通貨膨脹數字——它們相當機械，所以它們是真實的嗎？您如何根據未來幾年的業務成本來解釋它們？委員會如何解釋所做的通脹調整？

It's a great question. We definitely are seeing inflation in our actual spend. We see that. But I think what's really important to think about, as we look at our filings and our GRC and the inflation update, is our commitment to affordability for customers. And so as we look at the -- our bills here in California, we do have the benefit of mild weather in most parts of our state.

這是一個很好的問題。我們肯定會在實際支出中看到通貨膨脹。我們看到了。但我認為，當我們查看我們的文件、我們的 GRC 和通貨膨脹更新時，真正重要的是要考慮的是我們對客戶負擔能力的承諾。因此，當我們查看我們在加利福尼亞的賬單時，我們確實受益於我們州大部分地區的溫和天氣。

And so that's one piece of the puzzle here that we're aware of that our energy bills are a lower percent of wallet than in many parts of the country. However, there are parts of our state where they are more energy intensive. And so we have a very important focus on affordability, and that's what the simple, affordable model is all about.

因此，這是一個難題，我們知道我們的能源賬單佔錢包的百分比低於該國許多地區。但是，我們州的某些地區能源密集度更高。因此，我們非常重視可負擔性，這就是簡單、負擔得起的模型的全部意義所在。

We know that our customers have been really anxious for us to invest in our infrastructure, make it more resilient, make it safer, make it more reliable, and yet make it affordable. And so as we do our O&M cost reductions, as we do efficient financing through things like our Pac Gen sale, we have ways of offsetting the capital investment to the benefit of customers. And customers will start to experience that in the coming years.

我們知道，我們的客戶一直非常渴望我們投資於我們的基礎設施，使其更具彈性、更安全、更可靠，同時又能負擔得起。因此，當我們降低 O&M 成本時，當我們通過 Pac Gen 銷售等方式進行有效融資時，我們有辦法抵消資本投資以造福客戶。客戶將在未來幾年開始體驗到這一點。

And just -- here's one example. I was -- I'm sort of famous for a story of the month. So here's our story this month. In fact, it was a story of the week, if you will, because it seems like we're finding lots of opportunity all across the company. But we had an update this week from our vegetation management team and our sourcing team. We've come a long way using our Lean performance playbook to standardize and improve many aspects of our business, but especially our vegetation management, which is a very important part of our safety measures here at the company.

只是 - 這是一個例子。我是——我有點因為這個月的故事而出名。這就是我們這個月的故事。事實上，如果你願意的話，這是本週的一個故事，因為看起來我們在整個公司都發現了很多機會。但本週我們從植被管理團隊和採購團隊那裡得到了更新。我們在使用我們的精益績效手冊來標準化和改進我們業務的許多方面取得了長足的進步，尤其是我們的植被管理，這是我們公司安全措施中非常重要的一部分。

So we added visibility to the training and the safety standards for all of our contractors. We did a thorough review and removed outdated quality standards. We standardized unit rate contracts versus time and equipment contracts. We reduced our contractor count from 24 to 14, regionalizing them to better serve our hometowns.

因此，我們為所有承包商增加了培訓和安全標準的可見性。我們進行了徹底的審查並刪除了過時的質量標準。我們將單位費率合同與時間和設備合同標準化。我們將承包商數量從 24 家減少到 14 家，將其區域化以更好地服務於我們的家鄉。

That -- this is going to be resulting for 2023 in a better customer experience, less repeat visits. I've talked about this on previous calls where we visit a customer's home multiple times to do our vegetation management work. So in this case, with all the improvements the team has made, we'll make less repeat visits to a customer's home at a lower cost.

那——這將在 2023 年帶來更好的客戶體驗，減少重複訪問。我在之前的電話中談到過這個問題，我們多次訪問客戶家進行植被管理工作。因此，在這種情況下，通過團隊所做的所有改進，我們將以更低的成本減少對客戶家的重複訪問。

This is our performance playbook in action. The bottom line savings is going to be over $300 million just from standardizing smarter contracting and utilizing our performance playbook. That's the play we're running at PG&E. That's what's happening here. We're going to find ways to do better work for customers at a lower cost. So we are very zeroed in on making sure that we have an affordable service.

這是我們的績效手冊。僅通過標準化更智能的合同和利用我們的績效手冊，底線節省將超過 3 億美元。這就是我們在 PG&E 上演的戲。這就是這裡發生的事情。我們將想辦法以更低的成本為客戶提供更好的工作。因此，我們非常專注於確保我們提供負擔得起的服務。

Great. That's helpful color. And just related to the Pacific Generation sales. I was just wondering, are you able to give if that were to not be approved or if it gets delayed, just how much equity might be needed into the plan in that alternative case?

偉大的。這是有用的顏色。並且只與太平洋一代的銷售有關。我只是想知道，如果該計劃未獲批准或延遲，您是否能夠提供，在另一種情況下，該計劃可能需要多少股權？

Sure. I think, in short, you can imagine this is exactly what we were mentioning earlier is that we're constantly looking at internal cash management levers, regulatory levers to manage any variability for you. So I think that it wouldn't necessarily change anything. I think that's our point, is that we're putting ourselves in a position with a more conservative plan to be sure that we can have the most efficient financing possible. And that's why this filing makes good sense.

當然。我認為，簡而言之，你可以想像這正是我們之前提到的，我們一直在關注內部現金管理槓桿，監管槓桿來為你管理任何可變性。所以我認為它不一定會改變任何事情。我認為這就是我們的觀點，我們將自己置於一個更保守的計劃中，以確保我們能夠獲得最有效的融資。這就是為什麼這個文件很有意義。

Got it. Okay. Great. And then just last one. I was wondering, any updates on just undergrounding in terms of cost forecast or technology improvements, Patti, just what you're seeing on the undergrounding opportunity and how that's evolving after we've gotten the legislation now in place?

知道了。好的。偉大的。然後只是最後一個。我想知道，關於成本預測或技術改進方面的地下開采的任何更新，Patti，您對地下開採機會的看法以及在我們現在製定立法後它是如何演變的？

Yes. So we're in the process of building out our tender plan as a result of that legislation. And kudos to our legislators for making a big decision and supporting that undergrounding -- drafting and supporting that undergrounding legislation. That 10-year plan allows for better savings for customers. Fundamentally, we can have better work plan -- workforce planning. We can have better equipment. We can have better long-term contracts. And we know that all of that results in savings for customers.

是的。因此，由於該立法，我們正在製定我們的招標計劃。感謝我們的立法者做出重大決定並支持地下化 - 起草和支持地下化立法。該 10 年計劃可以為客戶節省更多費用。從根本上說，我們可以有更好的工作計劃——勞動力規劃。我們可以擁有更好的設備。我們可以有更好的長期合同。我們知道，所有這些都會為客戶節省開支。

We're seeing good progress this year. We've completed 165 miles of civil construction already. We'll do the final buttoning up of that work and expect to meet our target of 175 miles this year, which -- you'll remember, we did about 72 miles last year. So this is a huge improvement year-over-year.

今年我們看到了良好的進展。我們已經完成了 165 英里的土建工程。我們將完成這項工作的最後敲定，並期望今年能達到 175 英里的目標，你會記得，我們去年做了大約 72 英里。因此，與去年相比，這是一個巨大的進步。

And many of those miles are coming in closer to the $2.5 million a mile than the original $3.7 million a mile. So we're really seeing progress. We continue to improve, and we're looking forward to being able to publicly file that 10-year plan in 2023, so we can share what the whole outlook looks like, including the cost forecast that go with it.

其中許多里程的價格接近每英里 250 萬美元，而不是最初的每英里 370 萬美元。所以我們真的看到了進步。我們繼續改進，我們期待能夠在 2023 年公開提交該 10 年計劃，以便我們可以分享整個前景，包括隨之而來的成本預測。

Our next question comes from Ryan Levine from Citigroup.

我們的下一個問題來自花旗集團的 Ryan Levine。

I appreciate the updates around your equity issuance plan. Curious how you're currently thinking about your dividend policy, recognizing you need Board approval. But in the context of ability to return capital to shareholders, how are you thinking about that given the pending transaction or potential transaction won't close until after a dividend decision would be made?

感謝您對股票發行計劃的更新。好奇您目前如何考慮您的股息政策，認識到您需要董事會批准。但是在向股東返還資本的能力的背景下，鑑於待決交易或潛在交易在做出股息決定之前不會結束，您如何看待這一點？

Ryan, thanks for the question. Again, I think we'll have maybe some initial insight. Remember, with regard to at least the current calendar, we've provided to the commission and our request, which would have a midyear initial view really, of the transaction on Alpine. So it could go into our thinking a bit.

瑞安，謝謝你的問題。同樣，我認為我們可能會有一些初步的見解。請記住，至少就當前日曆而言，我們已經向委員會和我們的請求提供了關於 Alpine 交易的年中初始視圖。所以它可以進入我們的思考。

But let me just take a step back. Remember that our eligibility for reinstating the dividend is when we hit $6.2 billion in non-GAAP core earnings. And so we are well on that path at this stage and would be at the point of eligibility midyear next year.

但讓我退後一步。請記住，當我們的非公認會計準則核心收益達到 62 億美元時，我們才有資格恢復股息。因此，我們現階段在這條道路上進展順利，明年年中將達到資格。

I think what you have to emphasize, though, as Patti said, there's an awful lot of need for customers at our system. So you should assume that it's actually a very small dividend initially -- at this point, and then we would feather it in over time. Obviously, going to spend time on that going into next year with our Board and be able to come forward with more detail when we can.

不過，正如帕蒂所說，我認為您必須強調的是，我們的系統對客戶的需求非常大。所以你應該假設它最初實際上是一個非常小的紅利 - 在這一點上，然後我們會隨著時間的推移將它羽化。顯然，我們將在明年與我們的董事會一起花時間在這方面，並在可能的情況下提出更多細節。

We have no further questions. I would like to turn the call back over to Patti Poppe for closing remarks.

我們沒有進一步的問題。我想把電話轉回給 Patti Poppe 做結束語。

Thank you, Julianne. Thank you, everyone, for joining us. We are looking forward to seeing you at EEI in just a couple of weeks. And we just hope that you are safe out there, and we look forward to seeing you in November.

謝謝你，朱麗安。謝謝大家加入我們。我們期待在短短幾週內在 EEI 見到您。我們只希望你在外面安全，我們期待著在 11 月見到你。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。