PG&E Corp (PCG) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the PG&E Corporation Second Quarter 2020 Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today, Chris Foster, Vice President, Treasury and Investor Relations, PG&E Corporation. Thank you. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎來到 PG&E Corporation 2020 年第二季度收益發布電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）現在我想將會議交給您今天的發言人，PG&E Corporation 財務和投資者關係副總裁 Chris Foster。謝謝。請繼續。

Thank you, Stephanie, and thanks to those of you on the phone for joining us. Before I turn it over to Bill Smith, I want to remind you that our discussion today will include forward-looking statements about our outlook for future financial results, which are based on assumptions, forecasts, expectations and information currently available to management. Also joining us this morning are John Simon, Executive Vice President, Law, Strategy and Policy; and Jason Wells, Executive Vice President and CFO.

謝謝你，斯蒂芬妮，也感謝電話中的你們加入我們。在我轉交給比爾·史密斯之前，我想提醒您，我們今天的討論將包括關於我們對未來財務業績展望的前瞻性陳述，這些陳述基於假設、預測、預期和管理層目前可獲得的信息。今天上午加入我們的還有負責法律、戰略和政策的執行副總裁 John Simon；執行副總裁兼首席財務官 Jason Wells。

Some of the important factors that could affect the company's actual financial results are described in the second page of today's second quarter earnings call presentation. The presentation also includes a reconciliation between non-GAAP and GAAP measures and can be found online, along with other information at investor.pgecorp.com. We also encourage you to review our quarterly report on Form 10-Q that was filed with the SEC earlier today and the discussion of risk factors that appears there and in the 2019 annual report on Form 10-Q. With that, I'll hand it over to Bill.

今天第二季度財報電話會議的第二頁介紹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 GAAP 和 GAAP 措施之間的對賬，可以在網上找到，以及 investor.pgecorp.com 上的其他信息。我們還鼓勵您查看我們今天早些時候向美國證券交易委員會提交的 10-Q 表格季度報告，以及該報告和 10-Q 表格 2019 年年度報告中出現的風險因素討論。有了這個，我會把它交給比爾。

Thanks, Chris, and good morning, everyone. We're excited to return to our traditional format. Today's call marks a milestone for us, and we're excited to share our post-emergence vision for the coming years. We've emerged from bankruptcy as a stronger company. The complex legal matters are now resolved and major regulatory cases establishing our revenues are either approved or settled. We also have a good line of sight on our regulatory framework for the next 3 years. Our financial plan displays strong growth and enables a path for the company to get back to investment grade.

謝謝，克里斯，大家早上好。我們很高興回到我們的傳統格式。今天的電話會議對我們來說是一個里程碑，我們很高興分享我們對未來幾年的新興願景。我們已經擺脫破產，成為一家更強大的公司。複雜的法律問題現已解決，確定我們收入的主要監管案件已獲得批准或解決。我們對未來 3 年的監管框架也有很好的展望。我們的財務計劃顯示出強勁的增長，並為公司重回投資級別開闢了道路。

My remarks today will focus on changes we've made on governance, progress on our wildfire plan and preparations ahead of the 2020 wildfire season. I will conclude with an update on key regulatory matters. Jason will then cover the financials, including updated guidance and a walk-through of the quarterly financial results.

我今天的講話將集中討論我們在治理方面所做的改變、我們的野火計劃取得的進展以及 2020 年野火季節之前的準備工作。最後，我將介紹關鍵監管事項的最新情況。然後，Jason 將介紹財務狀況，包括更新的指導和季度財務結果的演練。

Our focus now turns to building on the many changes we've put in place during bankruptcy, which set the foundation for an improved company. At the same time, we will never forget the impacts to the communities we serve and those who lost their lives as a result of catastrophic wildfires in recent years. Our mandate is to rebuild the trust of our customers while delivering operational excellence. We'll do that by focusing on responsive customer service and system investments that focus on risk reduction, safety and reliability. Organizational changes to help deliver on this mandate are already well underway. First, at the Board level, 11 new directors were seated at the start of this month. These directors were carefully chosen based on their individual skills and backgrounds and are well suited to guide our company for years to come.

現在，我們的重點轉向建立我們在破產期間實施的許多變革，這些變革為改善公司奠定了基礎。與此同時，我們永遠不會忘記我們所服務的社區以及近年來因災難性野火而喪生的人們所受到的影響。我們的任務是在提供卓越運營的同時重建客戶的信任。為此，我們將專注於專注於降低風險、安全性和可靠性的響應式客戶服務和系統投資。幫助完成這項任務的組織變革已經在順利進行中。首先，在董事會層面，本月初有 11 名新董事上任。這些董事是根據他們的個人技能和背景精心挑選出來的，非常適合在未來幾年指導我們的公司。

One of our initial priorities as a Board is to hire the next permanent CEO, and that process is ongoing. We've had recent changes that we've announced among our leadership ranks, and I want to thank each of them for all their contributions to PG&E. With our emergence from Chapter 11, this is a natural inflection point for leaders to evaluate their future and their roles at the company. We'll continue to build our team through both internal development programs and external hires. A couple of recent additions to the team include Francisco Benavides as our Chief Safety Officer; and Sumeet Singh as our Chief Risk Officer, and I'm delighted to say we'll be announcing a CIO soon. We have a seasoned team in place that is well suited to execute on our operational improvement plans developed during the bankruptcy process.

作為董事會，我們的首要任務之一是聘請下一任常任首席執行官，並且該過程正在進行中。我們最近宣布了領導層的變動，我要感謝他們每個人對 PG&E 的所有貢獻。隨著我們從第 11 章中出現，這是領導者評估他們的未來和他們在公司中的角色的自然轉折點。我們將繼續通過內部發展計劃和外部招聘來建設我們的團隊。該團隊最近的幾位新成員包括 Francisco Benavides 作為我們的首席安全官；和 Sumeet Singh 擔任我們的首席風險官，我很高興地說我們很快就會宣布 CIO。我們擁有一支經驗豐富的團隊，非常適合執行我們在破產程序中製定的運營改進計劃。

For example, the core electronic operations team members that manage our wildfire mitigation efforts and successfully achieved our goals during the last wildfire season remain in place. This group has consistently improved our tools and evolved our capabilities each year. I have confidence that this team and others we will add to deepen the bench will lean on their extensive experience to manage the evolving wildfire threat. And we will take the necessary steps to keep our customers safe.

例如，管理我們的野火緩解工作並在上一個野火季節成功實現我們目標的核心電子運營團隊成員仍然在原地。這個小組每年都在不斷改進我們的工具並發展我們的能力。我有信心，這個團隊和我們將增加的其他團隊將依靠他們豐富的經驗來管理不斷變化的野火威脅。我們將採取必要措施確保我們客戶的安全。

If you go to Slide 3 of our presentation, you can see we're progressing well on our 4 key Wildfire Mitigation Plan targets. I'll cover a few areas on the wildfire preparedness front. First, I'll touch on our operational work plan status. I'll also showcase some of the technology we continue to deploy to better understand our assets and reduce risk. Then I'll touch on our Public Safety Power Shutoff, or PSPS, program evolution.

如果您轉到我們演示文稿的幻燈片 3，您會看到我們在 4 個關鍵野火緩解計劃目標方面進展順利。我將介紹野火準備方面的幾個方面。首先，我將談談我們的運營工作計劃狀態。我還將展示我們繼續部署的一些技術，以更好地了解我們的資產並降低風險。然後，我將介紹我們的公共安全斷電 (PSPS) 計劃的演變。

Knowing a number of the program goals are longer term in nature, we continue to stand ready to shut off power when extreme weather conditions present themselves. So let's start with this year's mitigation work. Behind these numbers, the annual work plan is on track to meet all of our 2020 targets. We had some supply chain issues early on in the stages of -- due to COVID-19, which slowed our progress on the installation of weather stations and HD cameras. We've since resolved those issues and fully expect to meet the program goals.

知道許多計劃目標本質上是長期的，我們繼續隨時準備在極端天氣條件出現時關閉電源。那麼讓我們從今年的緩解工作開始吧。在這些數字的背後，年度工作計劃正在按計劃實現我們 2020 年的所有目標。由於 COVID-19，我們在早期階段遇到了一些供應鏈問題，這減緩了我們安裝氣象站和高清攝像機的進度。我們已經解決了這些問題，並完全有望實現計劃目標。

Turning to Slide 4, you'll see a snapshot of how we're making foundational investments in technology that we're excited about. On our enhanced inspection work, we're evaluating new programmable flight options to ensure greater consistency and efficiency of the drone inspections we do. We've also started a partnership with one of the country's most advanced data analytics companies. We're working to migrate to predictive maintenance utilizing the enormous data set we've collected from advanced visualization inspection tools. This year, we'll likely add another 2.5 million images of our assets. We are utilizing machine-learning tools to deploy computer vision models to compile asset inspection photos. This improves the quality and consistency of the analysis. All of this part is knowing our assets better and consistently improving our records and data.

轉到幻燈片 4，您將看到我們如何對我們感到興奮的技術進行基礎投資的快照。在我們加強的檢查工作中，我們正在評估新的可編程飛行選項，以確保我們所做的無人機檢查具有更高的一致性和效率。我們還與該國最先進的數據分析公司之一建立了合作夥伴關係。我們正在努力利用我們從高級可視化檢查工具收集的大量數據遷移到預測性維護。今年，我們可能會再添加 250 萬張資產圖像。我們正在利用機器學習工具部署計算機視覺模型來編譯資產檢查照片。這提高了分析的質量和一致性。所有這一部分都是為了更好地了解我們的資產並不斷改進我們的記錄和數據。

Stepping back with these early-stage examples, we're evaluating a range of different technologies, much as we did with the methane leakage technology adopted by our gas business years ago. We are fortunate to be working with California-based companies on these emerging technologies that will reduce wildfire risk in our state. We've taken this partnership approach for years on the clean energy front. Our announcement yesterday that we're breaking ground on just -- on one of the world's largest battery energy storage systems with Tesla is just another example of that.

回顧這些早期的例子，我們正在評估一系列不同的技術，就像我們多年前對天然氣業務採用的甲烷洩漏技術所做的那樣。我們很幸運能與總部位於加利福尼亞州的公司合作開發這些新興技術，這些技術將降低我們州的野火風險。多年來，我們在清潔能源領域一直採用這種合作方式。我們昨天宣布，我們正在破土動工——與特斯拉合作的世界上最大的電池儲能係統之一就是另一個例子。

There's one other aspect to the wildfire mitigation program that I'll give an update on, and that's our PSPS program. It's covered here on Slide 5. As we have in prior years, we'll continually evaluate conditions that include wind speed, humidity levels, fuel moisture and other factors. When conditions warrant, we'll implement power shutoffs for public safety purposes. We have taken steps to minimize the impact of these events on our customers, and we're working hard to make the PSPS programs smaller, shorter and smarter.

我將更新野火緩解計劃的另一個方面，那就是我們的 PSPS 計劃。它在幻燈片 5 中有所介紹。與往年一樣，我們將不斷評估包括風速、濕度水平、燃料濕度和其他因素在內的條件。在條件允許的情況下，出於公共安全目的，我們將實施斷電。我們已採取措施盡量減少這些事件對我們客戶的影響，並且我們正在努力使 PSPS 計劃更小、更短和更智能。

To make our PSPS program smarter, our team will be using new weather modeling that has doubled the granularity of the data feeding our models. Our team will now use the improved insights to inform which circuits are considered for shutoff. The improved accuracy of the forecast should ultimately result in fewer customers being impacted. Our next priority to improve the PSPS program is to make the customer footprint smaller. To address this, we are prepositioning about 460 megawatts of temporary generation in order to meet critical community needs in areas that have a high probability of an outage. These will be strategically placed at over 60 substations, mid-feeder locations and secondary health facilities. We've also installed nearly 400 sectionalizing devices and plan to achieve our 2020 goal of 600 devices by the end of August.

為了使我們的 PSPS 程序更智能，我們的團隊將使用新的天氣模型，該模型將我們模型的數據粒度增加了一倍。我們的團隊現在將使用改進的見解來告知哪些電路被考慮關閉。預測準確性的提高最終應該會減少受影響的客戶。我們改進 PSPS 計劃的下一個優先事項是縮小客戶足跡。為了解決這個問題，我們預置了大約 460 兆瓦的臨時發電，以滿足停電可能性高的地區的關鍵社區需求。這些將戰略性地放置在 60 多個變電站、中等饋線位置和二級衛生設施。我們還安裝了近 400 台分段設備，併計劃在 8 月底之前實現 2020 年 600 台設備的目標。

Both solutions allow us to keep power on in more places where it's safe to do so. In combination, these elements are expected to allow us to reduce the number of customers impacted by 1/3. In order to make the outages experienced by our customers shorter, we've increased our aerial patrol abilities through additional helicopters and fixed-wing aircraft. By using infrared cameras, we'll be able to conduct controls into the evening, unlike last year, where our post-event inspections were limited to daylight hours. This greatly advances our ability to meet our goal as a 50% faster restoration time this season.

這兩種解決方案都允許我們在更多安全的地方保持供電。綜合起來，這些因素預計將使我們能夠將受影響的客戶數量減少 1/3。為了縮短客戶遇到的停電時間，我們通過增加直升機和固定翼飛機增加了空中巡邏能力。通過使用紅外熱像儀，我們將能夠在晚上進行控制，這與去年不同，我們的事後檢查僅限於白天。這大大提高了我們實現本賽季恢復時間縮短 50% 的目標的能力。

As I mentioned earlier, part of the improved financial foundation for the company is improved clarity on our key regulatory cases. I'll touch on a few of those.

正如我之前提到的，公司財務基礎改善的部分原因是我們對關鍵監管案例的清晰度提高了。我會談談其中的一些。

First, I'll cover some updates at the CPUC. Looking back to our previous gas transmission and storage rate case, we overspent on capital and sought recovery. Roughly $600 million of that spend was subject to audit, which was completed in May with no disallowances recommended. We are now authorized to seek recovery of those costs through a separate application, and we anticipate a decision on that filing in Q2 of 2021. As a reminder, we've reached an all-party settlement in our 2020 general rate case. The commission recently updated the procedural schedule, and we expect a final decision by the middle of December. In our securitization filing, this week, a scoping memo was released by the commission, pointing to hearings at the end of November. Given this update, we would anticipate resolution around the start of 2Q next year.

首先，我將介紹 CPUC 的一些更新。回顧我們之前的輸氣儲費案例，我們在資本上超支並尋求回收。其中大約 6 億美元的支出需要接受審計，該審計於 5 月完成，沒有建議取消津貼。我們現在被授權通過單獨的申請尋求收回這些費用，我們預計將在 2021 年第二季度對該申請做出決定。提醒一下，我們已經就 2020 年一般費率案達成了所有各方的和解。該委員會最近更新了程序時間表，我們預計將在 12 月中旬做出最終決定。在我們的證券化文件中，本週，委員會發布了一份範圍界定備忘錄，指向 11 月底的聽證會。鑑於此更新，我們預計將在明年第二季度初左右解決。

We are required to have our safety certificate renewed each year in order to access the AB 1054 Wildfire Fund. Our 2020 safety certification request is currently with the commission for review and our certificate from last year is valid, while the review is underway.

我們需要每年更新安全證書才能使用 AB 1054 野火基金。我們的 2020 年安全認證申請目前正在接受委員會審查，我們去年的證書有效，審查正在進行中。

Moving to FERC and our Transmission Owner '20 case, we are currently in settlement discussions though we do not know the timing of potential resolution. I'll close by touching on COVID-19 and workforce impacts, and I'd be remiss not to mention other challenges our employees and customers face, given the broader backdrop of the issues that are part of our larger national discussion.

轉到 FERC 和我們的 Transmission Owner '20 案，我們目前正在進行和解討論，但我們不知道潛在解決方案的時間。最後，我將談談 COVID-19 和勞動力的影響，考慮到這些問題的更廣泛背景是我們更廣泛的全國討論的一部分，我將不提我們的員工和客戶面臨的其他挑戰。

From an operational standpoint, we continue to make headway in the second quarter, even with the challenges created by COVID-19. The recent uptick in COVID cases in California has resulted in the state reinstituting measures to protect against further spread. Load has shown some improvement compared to what we reported in May. During a period from mid-May to July, we've seen a 3% reduction in electric load and a 4% reduction in core gas load on a weather-adjusted basis versus 2019. We also experienced higher uncontrollable -- uncollectible costs in 2Q. These impacts have often -- have been offset by a regulatory asset that was recorded to a memorandum account created to track COVID-related costs.

從運營的角度來看，我們在第二季度繼續取得進展，即使 COVID-19 帶來了挑戰。加利福尼亞州最近 COVID 病例的增加導致該州重新採取措施以防止進一步傳播。與我們 5 月份報告的情況相比，負載有所改善。在 5 月中旬至 7 月期間，與 2019 年相比，經天氣調整後的電力負荷減少了 3%，核心天然氣負荷減少了 4%。我們在第二季度也經歷了更高的不可控成本——無法收回的成本.這些影響通常被記錄到為跟踪 COVID 相關成本而創建的備忘賬戶中的監管資產所抵消。

Given the challenge of our current operating environment, I want to take a second to express my appreciation for all PG&E frontline employees who continue to execute on our risk reduction, safety and reliability programs across gas and electric systems. Our workforce is also engaged in the broader discussion around diversity and inclusion. We are fortunate to serve a customer base with extreme diversity. As a company that has weathered bankruptcy and still maintains a very low overall attrition rate, we're focused on this conversation with our employees and our suppliers. We are proud that over 50% of our hires in 2019 were diverse candidates, and we'll maintain a history of investing in diversity, including 8 consecutive years of exceeding a $2 billion diverse supplier spend. With that, I'll turn it over to Jason to cover financials.

鑑於我們當前運營環境的挑戰，我想花點時間對所有 PG&E 一線員工表示感謝，他們繼續執行我們在天然氣和電力系統中的風險降低、安全和可靠性計劃。我們的員工還參與了圍繞多元化和包容性的更廣泛討論。我們很幸運能夠為極其多樣化的客戶群提供服務。作為一家經歷過破產且仍然保持非常低的整體流失率的公司，我們專注於與我們的員工和供應商的對話。我們感到自豪的是，我們在 2019 年招聘的員工中有超過 50% 是多元化的候選人，我們將保持投資多元化的歷史，包括連續 8 年超過 20 億美元的多元化供應商支出。有了這個，我會把它交給傑森來處理財務問題。

Thank you, Bill, and good morning, everyone. I plan on covering 3 items, some of which are highlighted here on the financial summary on Slide 6. First, given the clarity resulting from the emergence from Chapter 11 and the resolution of key regulatory proceedings, we are initiating earnings guidance that is reflective of strong growth over the coming years.

謝謝你，比爾，大家早上好。我計劃涵蓋 3 個項目，其中一些在幻燈片 6 的財務摘要中突出顯示。首先，鑑於第 11 章的出現和關鍵監管程序的解決帶來的清晰度，我們正在啟動反映未來幾年的強勁增長。

Second, I'll briefly touch on the protections we now benefit from as a full participant of the Assembly Bill 1054 Wildfire Fund as well as from recent insurance policy updates. Lastly, I'll briefly cover our results for the quarter.

其次，我將簡要介紹作為 1054 號議會法案野火基金的正式參與者以及最近的保險政策更新，我們現在受益的保護措施。最後，我將簡要介紹一下本季度的業績。

Stepping back into the more traditional earnings format post-Chapter 11 emergence, we plan to provide a slightly longer view of our earnings potential and a greater level of detail than in the past. We've provided some of the basic assumptions impacting GAAP and non-GAAP core earnings for you on Slide 7. We've also provided a traditional look at CapEx and rate base growth, the latter of which is growing at roughly 8% on Slides 8 and 9, respectfully.

在第 11 章出現後回到更傳統的收益格式，我們計劃提供比過去更長的收益潛力視圖和更詳細的信息。我們在幻燈片 7 上為您提供了一些影響 GAAP 和非 GAAP 核心收益的基本假設。我們還提供了資本支出和利率基礎增長的傳統觀點，後者在幻燈片上的增長率約為 8% 8 和 9，恭敬地。

Our assumption for rate base is slightly updated from what we shared last quarter. Due to our anticipated time line for cost recovery of the GT&S Rate Case audit results, our 2020 rate base has declined by $400 million. We now have that amount included in rate base and earning a return on equity in 2021. There was no impact to our capital forecast for the year.

我們對費率基礎的假設與我們上個季度分享的略有更新。由於我們預計 GT&S Rate Case 審計結果的成本回收時間表，我們 2020 年的費率基數下降了 4 億美元。我們現在將該金額包含在利率基礎中，並在 2021 年獲得股本回報率。這對我們當年的資本預測沒有影響。

One item to note is that CapEx is reflective of the $3.2 billion in wildfire mitigation spend but does not earn an equity return under AB 1054. However, this amount is not included in these rate base projections.

需要注意的一項是，資本支出反映了 32 億美元的野火減災支出，但並未根據 AB 1054 獲得股權回報。但是，這一數額不包括在這些費率基礎預測中。

Moving to our earnings guidance elements. First, we are updating earnings factors as well as initiating non-GAAP core earnings per share guidance for 2020. Second, we are providing earnings factors initiating non-GAAP core earnings per share guidance and updating our potential equity needs for 2021.

轉到我們的收益指導要素。首先，我們正在更新收益因素並啟動 2020 年非 GAAP 核心每股收益指導。其次，我們正在提供啟動非 GAAP 核心每股收益指導的收益因素並更新我們 2021 年的潛在股權需求。

If we now go to Slide 10, starting with 2020 earnings guidance. We have updated our earnings factors to reflect the anticipated non-GAAP core earnings of roughly $2 billion for the full year. That translates into approximately $1.60 to $1.63 per share based on anticipated average share count of 1.25 billion shares outstanding for the full year. This non-GAAP core earnings target is $325 million to $350 million below our authorized levels and reflects a tightening of the range from the guidance of $250 million to $350 million that we provided last quarter. We're also narrowing the range on both components of under earnings. On our net below the line and spend above authorized, we are adjusting the expense range to $200 million to $225 million, and that primarily reflects additional wildfire spend above authorized.

如果我們現在轉到幻燈片 10，從 2020 年收益指引開始。我們已經更新了我們的收益因素，以反映全年約 20 億美元的預期非 GAAP 核心收益。根據全年 12.5 億股的預期平均流通股數，這相當於每股約 1.60 美元至 1.63 美元。這一非 GAAP 核心盈利目標比我們的授權水平低 3.25 億美元至 3.5 億美元，反映了我們上季度提供的 2.5 億美元至 3.5 億美元指導範圍的收緊。我們還縮小了收入不足的兩個組成部分的範圍。在我們低於線下的淨額和高於授權的支出方面，我們將支出範圍調整為 2 億至 2.25 億美元，這主要反映了超出授權的額外野火支出。

Second, unrecoverable interest expense will be consistent with the midpoint of our prior forecast range and results in a $125 million impact to earnings for the remaining 6 months of the year. Keep in mind that for 2020, some of the factors such as increased shares outstanding and interest expense from our exit financing, are impacting only the last 6 months of the year. Additionally, the guidance assumes a final decision in the 2020 GRC this year consistent with our all-party settlement.

其次，不可收回的利息支出將與我們先前預測範圍的中點一致，並對今年剩餘 6 個月的收益產生 1.25 億美元的影響。請記住，對於 2020 年，一些因素（例如流通股增加和退出融資的利息支出）僅影響今年的最後 6 個月。此外，該指南假定今年 2020 GRC 的最終決定與我們的各方和解一致。

Moving to noncore earnings guidance. There are a number of elements that I'd like to update here. First, we have an updated range for bankruptcy and legal costs to a range of $2.63 billion to $2.67 billion, which reflects the total equity backstop fees of $1.5 billion; a charge of $620 million for the reduction of the deferred tax asset related to the lower share value for the equity contributed to the Fire Victims Trust; and total legal and professional service costs for the Chapter 11 proceeding.

轉向非核心收益指導。我想在這裡更新一些元素。首先，我們將破產和法律費用的範圍更新為 26.3 億美元至 26.7 億美元，這反映了 15 億美元的總股權支持費用；一筆 6.2 億美元的費用，用於減少與向火災受害者信託基金出資的股權的較低股份價值相關的遞延稅資產；第 11 章程序的法律和專業服務總成本。

Second, the $300 million of investigation remedies and cost recovery has been updated to reflect the uncertainty and the tax deductibility for a small portion of the amount related to the wildfire and Locate and Mark OIIs.

其次，更新了 3 億美元的調查補救措施和成本回收，以反映與野火以及定位和標記 OII 相關的一小部分金額的不確定性和稅收減免。

Third, amortization of the Wildfire Fund contribution has decreased to roughly $300 million for 2020, reflecting an increase in the assumed life of the trust that I'll discuss further in my prepared remarks.

第三，2020 年 Wildfire Fund 捐款的攤銷已減少至約 3 億美元，這反映了我將在準備好的發言中進一步討論的信託假定壽命的增加。

Fourth, due to the media notice provided by CAL FIRE recently, identifying PG&E's transmission line as the cause for the Kincade Fire, we've also recorded an accounting charge that reflects the low end of the range we provided last quarter, a write-off of associated restoration costs and a receivable for the associated insurance recovery.

第四，由於 CAL FIRE 最近提供的媒體通知，將 PG&E 的傳輸線確定為 Kincade Fire 的原因，我們還記錄了反映我們上個季度提供的範圍低端的會計費用，註銷相關恢復成本和相關保險恢復的應收賬款。

And finally, we've updated the pickup associated with the successful audit of the GT&S capital. The $80 million reflects a recognition of the regulatory asset for recovery of the historical depreciation expense and cost of debt. The final decision approving cost recovery is now anticipated in 2021, and at county rules limit the ability for recognizing a regulatory asset for the historical equity return until that final decision is received.

最後，我們更新了與成功審計 GT&S 資本相關的信息。 8000 萬美元反映了對收回曆史折舊費用和債務成本的監管資產的確認。現在預計將在 2021 年做出批准成本回收的最終決定，並且在收到最終決定之前，縣法規限制了為歷史股權回報確認監管資產的能力。

Moving to 2021 earnings factors on Slide 11. We have made progress addressing the factors contributing to under-earning our allowed return on equity resulting in an increase in our forecasted non-GAAP core earnings relative to the forecast included in our March disclosure statement. We are initiating non-GAAP core earnings for 2021 in a range of $2.1 billion to $2.3 billion. This is roughly $50 million to $250 million more than our previous estimate in the March disclosure statement. In comparing this range to our authorized earnings, this guidance results in between $275 million and $425 million below authorized levels, reflecting an update to net below the line spend above authorized levels of up to $100 million and a range of $275 million to $325 million in unrecoverable interest expense.

轉到幻燈片 11 上的 2021 年收益因素。我們在解決導致我們允許的股本回報率低於預期的因素方面取得了進展，導致我們預測的非 GAAP 核心收益相對於我們 3 月份披露聲明中包含的預測有所增加。我們正在啟動 2021 年的非 GAAP 核心收益，範圍為 21 億美元至 23 億美元。這比我們之前在 3 月份披露聲明中的估計高出大約 5000 萬至 2.5 億美元。將此範圍與我們的授權收入進行比較時，該指導結果比授權水平低 2.75 億美元至 4.25 億美元，反映了對高於授權水平最高 1 億美元的淨線下支出的更新以及 2.75 億美元至 3.25 億美元的範圍不可收回的利息支出。

We have line of sight to initial improvements relative to our disclosure statement in a few areas, including lower unrecoverable interest costs and renegotiated third-party contracts that will result in more efficient execution of some of our inspection repairs on our electric system next year.

我們在幾個方面對我們的披露聲明進行了初步改進，包括降低不可收回的利息成本和重新談判的第三方合同，這將導致我們明年更有效地執行我們對電力系統的一些檢查維修。

2021 is the first year we'll experience the full dilution from the exit financing. And as a result, this translates into a range of non-GAAP core earnings per share of $0.95 to $1.05. Our 2021 guidance incorporates the same assumptions as 2020, with the addition of approved securitization application in the first quarter. Noncore earnings guidance for 2021 includes a onetime upfront charge for securitization of $1.36 billion; amortization of the Wildfire Fund contribution of $330 million; bankruptcy and legal costs of around $40 million to $80 million; $80 million of investigation remedies and cost recovery; and a pickup of about $140 million related to the deferred equity return on the successful audit of the GT&S capital given the final decision we expect next year.

2021 年是我們將經歷退出融資完全稀釋的第一年。因此，這轉化為每股 0.95 美元至 1.05 美元的一系列非 GAAP 核心收益。我們的 2021 年指引包含與 2020 年相同的假設，並在第一季度增加了批准的證券化申請。 2021 年的非核心收益指引包括 13.6 億美元的一次性預付證券化費用；攤銷野火基金捐款 3.3 億美元；破產和法律費用約為 4000 萬至 8000 萬美元； 8000 萬美元的調查補救措施和成本回收；鑑於我們預計明年將做出最終決定，成功審計 GT&S 資本後，將獲得約 1.4 億美元的遞延股權回報。

We're also providing an update to our potential equity needs in 2021, which are contingent on approval next year of our securitization application at the CPUC that Bill mentioned earlier. While we remain committed to achieving investment-grade ratings across the enterprise and paying down roughly $1.7 billion in holding company debt in 2021, consistent with our March disclosure statement, we are lowering our projected equity need in 2021 to between $450 million and $750 million. This range includes the net impact from the Kincade Fire accrual this quarter.

我們還提供了 2021 年潛在股權需求的最新情況，這取決於比爾之前提到的明年我們在 CPUC 的證券化申請是否獲得批准。儘管我們仍然致力於在 2021 年實現整個企業的投資級評級並償還大約 17 億美元的控股公司債務，但與我們 3 月份的披露聲明一致，我們將 2021 年的預計股權需求下調至 4.5 億美元至 7.5 億美元之間。該範圍包括本季度 Kincade Fire 應計利潤的淨影響。

I would also like to reaffirm that we also do not have any anticipated equity needs beyond 2021 for our 5-year plan. There are a few factors that contribute to this overall reduction, including the improved earnings range I referenced earlier and a slight reduction in CapEx we are projecting. Additionally, we continue to pursue divesting of certain noncore assets that could generate additional proceeds more cost effectively than issuing equity that would enable us to trend at the lower end of this revised equity range.

我還想重申，我們的 5 年計劃在 2021 年之後也沒有任何預期的股權需求。有幾個因素導致了整體下降，包括我之前提到的收益範圍的改善以及我們預計的資本支出略有下降。此外，我們繼續尋求剝離某些非核心資產，這些資產可能比發行股票更具成本效益地產生額外收益，這將使我們能夠處於修訂後的股權範圍的低端。

Turning to Slide 12. We have confidence that 2022 and subsequent years will continue to reflect a roughly 8% rate base growth I mentioned earlier. And that rate base growth will be outpaced by earnings growth as we continue to pay down unrecoverable interest costs. Bill covered the operational efforts we are making to mitigate fires. Along with a good execution thus far on our operational work plans, our financial risk has also been reduced as we head into the traditional start of fire season. We are now fully participating in the AB 1054 Wildfire Fund, having made our roughly $5 billion contribution. As a reminder, as participants in the fund, the disallowance liability cap is in place and the new prudent manager regulatory framework applies.

轉到幻燈片 12。我們有信心 2022 年及隨後幾年將繼續反映我之前提到的大約 8% 的利率基礎增長。隨著我們繼續支付不可收回的利息成本，盈利增長將超過利率基礎增長。比爾介紹了我們為減輕火災所做的行動。到目前為止，除了我們的運營工作計劃得到良好執行外，隨著我們進入傳統的火災季節開始，我們的財務風險也有所降低。我們現在完全參與了 AB 1054 野火基金，已經貢獻了大約 50 億美元。提醒一下，作為基金的參與者，禁止責任上限已經到位，並且適用新的審慎管理人監管框架。

In terms of how this contribution has been reflected in our second quarter financial statements, we've recorded a regulatory liability of $6.7 billion, reflecting the discounted value of the total payments to be made to the Wildfire Fund. In addition, we recorded a wildfire contribution asset of $6.5 billion, with the difference reflecting amortization expense for the period of time we had partial coverage under the fund prior to our emergence from Chapter 11. The total expense is amortized based on an expected life of 15 years, which is longer than the previous estimated life of 10 years. This change resulted from an adjustment to the model to better reflect relevant historical data and the effectiveness of the state's collective wildfire mitigation programs.

就這一貢獻在我們第二季度財務報表中的反映方式而言，我們記錄了 67 億美元的監管負債，反映了向 Wildfire 基金支付的總付款的貼現值。此外，我們記錄了 65 億美元的野火捐助資產，差異反映了在我們從第 11 章中出現之前我們在基金部分覆蓋期間的攤銷費用。總費用根據預期壽命攤銷15年，比之前預估的10年壽命還要長。這一變化源於對模型的調整，以更好地反映相關歷史數據和該州集體野火緩解計劃的有效性。

We also established our new liability insurance coverage, which runs from August 2020 through July 2021, totaling slightly more than $1.4 billion. The wildfire liability insurance component provides up to $757 million in coverage for the period. The non-wildfire liability insurance provides up to $700 million for non-wildfire events. The total cost of this overall coverage is roughly $750 million. We will continue to pursue additional insurance coverage for the same policy period in weeks to come. We will seek recovery for all premiums associated with this coverage, either through the proposed 2-way balancing account included in our pending 2020 General Rate Case settlement or through the existing wildfire expense memorandum account tracking mechanism.

我們還建立了新的責任保險範圍，從 2020 年 8 月到 2021 年 7 月，總額略高於 14 億美元。野火責任保險部分在此期間提供高達 7.57 億美元的保險。非野火責任保險為非野火事件提供高達 7 億美元的保險。這種全面覆蓋的總成本約為 7.5 億美元。我們將在未來幾週內繼續為同一保單期限尋求額外的保險保障。我們將通過我們未決的 2020 年一般利率案件和解中包含的擬議雙向平衡賬戶，或通過現有的野火費用備忘賬戶跟踪機制，尋求收回與此保險相關的所有保費。

Now I'd like to transition to our second quarter financial results. Slide 13 shows our results for the second quarter. Non-GAAP core earnings came in at $1.03 per share and is largely consistent with the disclosure statement forecast. GAAP earnings, including noncore items, are also shown here. The noncore items are consistent with the discussion of the full year 2020 guidance I mentioned.

現在我想過渡到我們第二季度的財務業績。幻燈片 13 顯示了我們第二季度的結果。非 GAAP 核心收益為每股 1.03 美元，與披露聲明的預測基本一致。包括非核心項目在內的 GAAP 收益也列於此處。非核心項目與我提到的 2020 年全年指南的討論一致。

Moving on, Slide 14 shows the quarter-over-quarter comparison of non-GAAP core earnings per share of $1.10 in the second quarter of last year and $1.03 this year. The primary drivers related to the delay in the 2020 GRC decision as well as an increase in interest on pre-petition payables and short-term debt with no corresponding costs last year and wildfire mitigation costs that exceeded our authorized levels. These costs were partially offset by growth in rate base earnings and timing of taxes.

接下來，幻燈片 14 顯示了去年第二季度非 GAAP 核心每股收益 1.10 美元和今年 1.03 美元的季度環比比較。主要驅動因素與 2020 年 GRC 決定的延遲以及去年沒有相應成本的請願前應付款項和短期債務的利息增加以及超過我們授權水平的野火緩解成本有關。這些成本被利率基礎收入和稅收時間的增長部分抵消。

To close this out, I just want to echo Bill's comments at the start of our call today. The clarity we have on a number of fronts positions us very well from a governance, operations and financial standpoint. We are focused on earning our authorized rate of return on equity less the unrecoverable interest expense in 2022. And you can see that our 5-year financial plan grows at roughly 10% earnings growth, which exceeds the 8% rate base growth we provided. When combined, we see a competitive total return even with our temporary suspension of the dividend. Having the Chapter 11 case behind us allows us to now fully focus on executing on our operational plans. With that, operator, could you please open up the line for questions?

為了結束這個，我只想重複 Bill 在我們今天的電話會議開始時的評論。從治理、運營和財務的角度來看，我們在許多方面的清晰度使我們處於非常有利的位置。我們的重點是在 2022 年賺取我們的授權股本回報率減去不可收回的利息費用。你可以看到，我們的 5 年財務計劃的收益增長率約為 10%，超過了我們提供的 8% 的基礎增長率。合併後，即使我們暫時中止股息，我們也會看到有競爭力的總回報。有了美國破產法第 11 章的案例，我們現在可以完全專注於執行我們的運營計劃。有了這個，接線員，你能打開問題熱線嗎？

(Operator Instructions) Your first question comes from Steve Fleishman with Wolfe Research.

（操作員說明）您的第一個問題來自 Wolfe Research 的 Steve Fleishman。

Nice to have you all back doing an earnings call. So just could you -- maybe a couple of operational questions. Just on the wildfire preparation, the -- when you look at the different percentages, it's not clear just based on looking at full year that you're kind of -- how much you're on track or not. Could you just give a little more color on how you're progressing with each of those categories and being ready for the fire season?

很高興你們都回來做財報電話會議。你也可以 - 也許是幾個操作問題。就野火準備而言，當您查看不同的百分比時，僅根據全年的情況並不清楚您是否在軌道上。您能否就您在每個類別中的進展以及為火災季節做好準備提供更多顏色？

Sure. This is Bill. I'd be glad to do that. We are really on target with all other ones. As I mentioned, the couple that we had a little bit of a delay starting on were related to weather stations and the HD cameras. Those were impacted by some assembly issues at factories that were closed down temporarily and some things of that nature. But we are progressing very well and plan to be on target and getting everything completed. In some of these cases, we're ahead of target. So for example, on the veg management, we're actually running ahead of schedule there. If you look at where we are on temporary generation, we're going to overshoot that target by about 50%. So we're doing very well overall. The 2 items that were a little bit delayed early on, we've got a recovery plan in place. So we feel very solid about getting all of this program executed as scheduled.

當然。這是比爾。我很樂意那樣做。我們真的與所有其他人都在目標上。正如我所提到的，我們稍有延遲的一對夫婦與氣象站和高清攝像機有關。這些受到暫時關閉的工廠的一些組裝問題以及類似性質的一些事情的影響。但我們進展順利，計劃實現目標並完成所有工作。在其中一些情況下，我們領先於目標。因此，例如，在蔬菜管理方面，我們實際上已經提前完成了。如果你看看我們在臨時發電方面的進展，我們將超過該目標約 50%。所以我們總體上做得很好。早期有點延遲的 2 個項目，我們已經制定了恢復計劃。因此，我們對按計劃執行所有這些程序感到非常踏實。

Okay. And then just any comment on the departure of the utility CEO.

好的。然後只是對公用事業公司首席執行官離職的任何評論。

I think during an emergence like this, it's -- a lot of times, people reevaluate what's going on. And so this is not an unexpected situation. We're very well situated with the leadership team we have in place, and we're actively bringing in the next generation of leaders for the new PG&E. So we're all set.

我認為在出現這樣的情況時，很多時候，人們會重新評估正在發生的事情。因此，這並非意外情況。我們與現有的領導團隊相處得很好，我們正在積極為新的 PG&E 引進下一代領導者。所以我們都準備好了。

Okay. Great. And then just on the -- thinking about 2021 and the securitization assumptions you're mentioning, just do things change dramatically if, for some reason, the securitization doesn't happen? Is it -- or would it be kind of -- I think you have other alternatives in a worse case, but just assuming, could you give maybe a little bit of color there?

好的。偉大的。然後就-考慮到 2021 年和您提到的證券化假設，如果由於某種原因證券化沒有發生，事情是否會發生巨大變化？是——還是會是——我認為在更糟糕的情況下你還有其他選擇，但只是假設，你能給那裡一些顏色嗎？

Sure, happy to do so. Steve, this is Jason. While we have confidence in the securitization application being improved, I mean, I think it was a strong statement of support by Governor Newsom when he said it was in the best interest of the public to see that securitization application approved. We did, as a fallback measure, as part of our plan for reorganization, we asked the CPUC to approve an extension of that temporary debt, the $6 billion in temporary debt that we emerged with. We asked for a permanent waiver to the capital structure in the event that, that securitization application is not approved. So from a financial standpoint, there is limited financing risk associated with the securitization application. I would say that the one impact, if not approved, would be -- there would be incremental unrecoverable debt on that $6 billion of temporary debt that would remain outstanding in 2021 and beyond.

當然，很高興這樣做。史蒂夫，這是傑森。雖然我們對證券化申請的改進充滿信心，但我的意思是，我認為州長 Newsom 表示，看到證券化申請獲得批准符合公眾的最大利益，這是一種強烈的支持聲明。作為後備措施，作為我們重組計劃的一部分，我們要求 CPUC 批准延長臨時債務，即我們出現的 60 億美元臨時債務。如果證券化申請未獲批准，我們要求永久放棄資本結構。因此，從財務角度來看，與證券化申請相關的融資風險有限。我想說的是，如果沒有獲得批准，一個影響是——在 2021 年及以後仍未償還的 60 億美元臨時債務中，將出現不可收回的增量債務。

Okay. And I apologize, I have one last question. The guarantor trust discussion that you mentioned in the release, that's kind of -- in terms of the Fire Victim Trust, how you treat it. Could you maybe just give a little bit of a punchline on how do we interpret that? And what that discussion means?

好的。抱歉，我還有最後一個問題。你在新聞稿中提到的擔保人信託討論，就火災受害者信託而言，就是你如何對待它。您能否就我們如何解釋這一點給出一些妙語？那次討論意味著什麼？

Sure. As I mentioned in my prepared remarks, we took about a $620 million charge this quarter to reduce the deferred tax asset associated with the stock that we issued to the Fire Victims Trust. We had originally recorded the accrual and the associated deferred tax asset based on the settlement value of $6.75 billion. As a result of the stock value coming in lower than that original assumed value, we wrote down the deferred tax asset to about sort of roughly $4.5 billion of value contributing to that trust. What we are highlighting is that -- that reduction in the deferred tax asset assumes that we maintain the tax deduction based on a qualified settlement fund, which essentially the tax deduction is recognized at the time that the stock is issued to the Fire Victims Trust.

當然。正如我在準備好的發言中提到的那樣，我們本季度收取了約 6.2 億美元的費用，以減少與我們向火災受害者信託基金發行的股票相關的遞延稅款資產。我們最初根據 67.5 億美元的結算價值記錄了應計費用和相關的遞延所得稅資產。由於股票價值低於最初的假設價值，我們將遞延稅資產減記至約 45 億美元，為該信託做出貢獻。我們要強調的是——遞延稅資產的減少假設我們維持基於合格結算基金的稅收減免，這基本上是在股票發行給火災受害者信託基金時確認稅收減免。

However, we are pursuing a different election for the deduction. And that would be the grantor trust election. The grantor trust election actually allows us to deduct the value of the stock when it is sold. And so as the stock value increases over time, it would allow us to recognize a larger tax deduction. There are a couple of technical IRS elements to being able to convert to that grantor trust that we are currently working through with the IRS. We'd expect clarity on that, likely around the end of the calendar year.

然而，我們正在為扣除尋求不同的選擇。那就是設保人信託選舉。授予人信託選舉實際上允許我們在出售股票時扣除股票的價值。因此，隨著股票價值隨著時間的推移而增加，這將使我們能夠認識到更大的稅收減免。有幾個技術 IRS 元素可以轉換為我們目前正在與 IRS 合作的設保人信託。我們預計可能會在日曆年年底左右明確這一點。

Your next question comes from Stephen Byrd with Morgan Stanley.

你的下一個問題來自摩根士丹利的斯蒂芬伯德。

Thanks for the really thorough update on a lot of topics. Just a couple of items here, I guess, on my end. Just in terms of the cost of wildfire insurance, you laid out the amount of coverage. I was just curious generally in terms of commentary and in terms of just availability and cost of that insurance beyond 2020. Just what's your general sense of sort of the magnitude and cost that you're seeing these days?

感謝您對很多主題進行了真正徹底的更新。我猜這裡只有幾項，就我而言。就野火保險的成本而言，您列出了承保範圍。我只是對評論以及 2020 年以後該保險的可用性和成本感到好奇。你對這些天看到的規模和成本的總體感覺是什麼？

Well, we've certainly seen tightening in the liability insurance market. While AB 1054 provides significant financial stability to the utilities, the fact that the inverse still applies means sort of a first dollar of loss falls on liability insurers. And as a result, we've seen sort of tightening capacity in that market and a significant increase in costs. As I mentioned, we've secured a total of $1.4 billion in liability insurance, about $757 million of which relates to wildfire claims. The total cost of that program is $750 million. It's obviously a significant increase over what we were seeing several years ago. And I think it's sort of reflective of what will be an ongoing trend of higher liability insurance cost going forward.

好吧，我們當然看到責任保險市場正在收緊。雖然 AB 1054 為公用事業提供了顯著的財務穩定性，但逆向仍然適用這一事實意味著第一筆損失落在了責任保險公司身上。結果，我們看到該市場的產能有所收緊，成本顯著增加。正如我提到的，我們已經獲得了總計 14 億美元的責任保險，其中約 7.57 億美元與野火索賠有關。該計劃的總成本為 7.5 億美元。與幾年前我們所看到的相比，這顯然是一個顯著的增長。我認為這在某種程度上反映了未來責任保險成本上升的持續趨勢。

Understood. That's helpful. And then I guess stepping back, when you look at the overall business, I guess I'm thinking a lot about optimization and not related to wildfire risk, but just sort of cost optimization across the entire PG&E footprint, whether that be how you go about procurement, looking at real estate that is owned. Is there a potential in your mind for a kind of a more thorough view now that sort of you've reemerged? And just looking across the whole business in terms of areas where either operating costs, not related to safety again, but just other areas could be reduced or real estate could be monetized? Just thinking more broadly, do you -- are there such opportunities?

明白了。這很有幫助。然後我想退後一步，當你審視整體業務時，我想我正在考慮很多關於優化的問題，而不是與野火風險相關，而只是在整個 PG&E 足跡中進行成本優化，不管你是怎麼做的關於採購，查看擁有的房地產。既然你已經重新出現，你的腦海中是否有可能獲得一種更徹底的觀點？並且只是從運營成本（與安全無關）但其他領域可以減少或房地產可以貨幣化的領域來審視整個業務？只是更廣泛地思考，你有這樣的機會嗎？

Yes, Stephen, thanks for the question. I think there are pretty extensive of opportunities available for the company. We are cognizant of maintaining the affordability of our servers, particularly as we continue to invest so significantly in our gas and electric systems. I think you've touched on a couple of the programs that are at the forefront of the start of our work on cost optimization, and that is selling underutilized assets, things like, as you mentioned, real estate. It could also include or has included selling excess renewable energy credits. I also think you've touched on another opportunity that we see an opportunity for significant improvement around. And that's our third-party spend.

是的，斯蒂芬，謝謝你的提問。我認為公司有相當多的機會。我們意識到要保持服務器的可負擔性，尤其是在我們繼續對天然氣和電力系統進行大量投資的情況下。我想你已經談到了我們成本優化工作開始時最前沿的幾個項目，那就是出售未充分利用的資產，比如你提到的房地產。它還可能包括或已經包括出售多餘的可再生能源信用額度。我還認為您已經談到了另一個機會，我們認為這是一個可以進行重大改進的機會。這就是我們的第三方支出。

The company spends about $10 billion annually with third-party suppliers. There was a number of contracts that we had to enter into over the last couple of years to incentivize crews to come out west to accelerate the work on our wildfire system. Those contracts included premiums to attract that significant level of work that was needed on our system. However, what we are doing now with third-party suppliers is we are bundling that work and committing to longer-term plans in order to bring the cost structure down over time.

該公司每年在第三方供應商身上花費約 100 億美元。在過去的幾年裡，我們必須簽訂許多合同，以激勵工作人員到西部來加快我們野火系統的工作。這些合同包括獎金，以吸引我們系統所需的大量工作。然而，我們現在與第三方供應商正在做的是，我們將這些工作捆綁在一起並致力於長期計劃，以便隨著時間的推移降低成本結構。

We've seen a couple of really good examples in our vegetation management and inspection programs and look forward to continuing to work with our third-party suppliers on the rest of that remaining spend. I think as we get past sort of those elements, there is an opportunity for the company to redesign some of our work management-related capabilities. But our focus is on the upcoming fire season, and so we will grow into that sort of process redesign over the coming couple of years.

我們已經在我們的植被管理和檢查計劃中看到了幾個非常好的例子，並期待繼續與我們的第三方供應商就剩餘的支出進行合作。我認為，隨著我們克服這些因素，公司就有機會重新設計一些與工作管理相關的能力。但我們的重點是即將到來的火災季節，因此我們將在未來幾年內進行這種流程重新設計。

Our next question comes from Jonathan Arnold with Vertical Research.

我們的下一個問題來自 Vertical Research 的 Jonathan Arnold。

Could I just ask on the timing of the CEO search process? You -- I think you mentioned you were going to announce a new CIO soon, but any sense of just what the sort of likely time frame for the leadership announcement would be? And then also on that topic, do you anticipate still having a separate utility and corp CEO? I just could use a reminder on sort of where you stand on that governance question.

我可以問一下 CEO 搜尋過程的時間安排嗎？你——我想你提到過你將很快宣布一位新的首席信息官，但你知道領導層宣布的可能時間框架是什麼嗎？然後在這個話題上，你是否預計還會有一個單獨的公用事業和公司首席執行官？我只是想提醒一下您在治理問題上的立場。

Sure. Thanks for the question. This is Bill. The search is being launched for the CEO as we speak. So that process is underway. The target deadline is to have someone in that role permanently by the end of the year. As I've said before, fortunately, there's no artificial deadline, and I have the flexibility to be in the role as long as I need to be, but we're really looking for getting the next generation of the leadership team fully in place and get that closed. So those -- that team can start executing their plan going forward. So we think that it's reasonable to have that individual in place by the end of the year, and that's still our target. But what's most important is finding the right person.

當然。謝謝你的問題。這是比爾。就在我們說話的時候，首席執行官的搜尋工作正在啟動。所以這個過程正在進行中。目標截止日期是在年底之前讓某人永久擔任該職位。正如我之前所說，幸運的是，沒有人為的最後期限，我可以靈活地擔任這個角色，只要我需要，但我們真的希望讓下一代領導團隊完全到位並關閉它。所以那些 - 該團隊可以開始執行他們的計劃。所以我們認為在年底之前讓那個人到位是合理的，這仍然是我們的目標。但最重要的是找到合適的人。

So there's nothing artificially imposing a deadline on that particular item. With regard to the utility head, there is a requirement to have some separation between the corporation and the utility. I don't think it will be a CEO per se. I think we'll likely go back to the way it had been for a number of years with a President of the utility. More -- if you think about it, more of a President and Chief Operating Officer, that seems to make more sense. I think it's been a little bit confusing to a lot of constituents with the dual CEO title. But there are some requirements to keep separation between the utility and the corporation, and we'll obviously continue to honor those.

因此，沒有人為地為該特定項目強加最後期限。關於公用事業負責人，需要在公司和公用事業之間進行一些分離。我認為它本身不會成為 CEO。我認為我們很可能會回到多年來公用事業公司總裁的方式。更多 - 如果你考慮一下，更多的總裁兼首席運營官，這似乎更有意義。我認為很多擁有雙重 CEO 頭銜的選民有點困惑。但是有一些要求要保持公用事業和公司之間的分離，我們顯然會繼續遵守這些要求。

Great, Bill. And then, may I just on -- one other question on the equity for 2021. I believe, in the disclosure statement, you sort of talked about that being one possibility, but you might also pay down debt a little slower, presumably, if you didn't like the price on your potential equity issuance. Is that -- should we take what you're doing today more as a definitive statement that you plan to do this piece with equity? Or is it still possible you might choose not to?

太好了，比爾。然後，我可以談談 - 另一個關於 2021 年股權的問題。我相信，在披露聲明中，你談到了這是一種可能性，但你也可能會稍微慢一點償還債務，如果您不喜歡潛在股票發行的價格。那是——我們是否應該將你今天所做的更多地視為你計劃公平地完成這件作品的明確聲明？或者您仍然有可能選擇不這樣做嗎？

Jonathan, thanks for the question. I mean I do think we retain that flexibility as we look at those equity needs. But let me clarify a couple of things first. The equity that I mentioned, that revised range to $450 million to $750 million, that's contingent on the securitization application. We also have had an opportunity, given sort of the earnings forecast improvements as well as some timing in cash flows, been able to sort of generate a reduction in that contingent equity need.

喬納森，謝謝你的提問。我的意思是，我確實認為我們在考慮這些股權需求時保留了這種靈活性。但讓我先澄清幾件事。我提到的股權，修改後的範圍為 4.5 億至 7.5 億美元，這取決於證券化申請。考慮到盈利預測的改善以及現金流的一些時機，我們也有機會能夠減少或有股權需求。

As I also mentioned, we are exploring certain divestiture of noncore assets. We have sort of a more natural owner and so that would also have an opportunity to sort of bring us to the lower end of the range that I mentioned. And then to the point that you raised, we do have some flexibility around the timing of the holding company debt paydown. But I want to reiterate, we are also committed to improving our balance sheet health and achieving investment-grade credit ratings. And so I would anticipate if the securitization application is issued, equity in that general range next year.

正如我還提到的，我們正在探索非核心資產的某些剝離。我們有一個更自然的所有者，因此也有機會將我們帶到我提到的範圍的低端。然後就您提出的觀點而言，我們在控股公司償還債務的時間方面確實有一些靈活性。但我想重申，我們還致力於改善資產負債表的健康狀況並實現投資級信用評級。因此，我預計如果發行證券化申請，明年的股權將處於該一般範圍內。

Your next question comes from Ryan Levine with Citi.

你的下一個問題來自花旗的 Ryan Levine。

In terms of the insurance -- in terms of the $757 million insurance, I think in your prepared remarks, you mentioned a potential to expand that further. Can you elaborate around the potential or what your goal would be as we get closer to wildfire season?

在保險方面——就 7.57 億美元的保險而言，我認為在你準備好的發言中，你提到了進一步擴大保險的潛力。隨著我們接近野火季節，您能否詳細說明潛力或您的目標是什麼？

We're currently, as conducting this call, still in the market with a number of different risk transfer policies. And so we think that there is still some opportunity, still some capacity in the market that we're continuing to pursue. Our goal would be to achieve the $1 billion of risk transfer that's prescribed under AB 1054. I will say, I think that, that's probably going to be tough to achieve that full level, but there is some additional capacity in the market that we're pursuing.

目前，在進行此次電話會議時，我們仍在市場上採用多種不同的風險轉移政策。因此，我們認為仍有一些機會，我們仍在繼續追求的市場容量。我們的目標是實現 AB 1054 規定的 10 億美元的風險轉移。我會說，我認為，要達到這個水平可能很難，但市場上還有一些額外的容量，我們重新追求。

And then in terms of the issuance assumption for '21, beyond asset sales, are there any other key drivers of where you may be within the range, absent the securitization?

然後就 21 年的發行假設而言，除了資產出售之外，在沒有證券化的情況下，是否還有任何其他關鍵驅動因素可以說明您可能處於該範圍內？

No. The reduction in the equity range, really, the improved earnings forecast, some of the cash flow benefits that I mentioned really bring us to sort of, I'll call it the top end of the range. And I think then, it's the disposition of some noncore assets that would drive us to the lower end of that range that we provided.

不，股票範圍的縮小，實際上，盈利預測的改善，我提到的一些現金流收益確實讓我們有點，我稱之為範圍的頂端。然後我認為，正是一些非核心資產的配置將把我們推向我們提供的範圍的低端。

Our next question comes from Michael Lapides with Goldman Sachs.

我們的下一個問題來自高盛的 Michael Lapides。

Congratulations for all the effort you put in over the last 2 years, especially over the last 18 or 20 months, which have been hectic, obviously. Just curious, can you, Jason, talk about the holding company debt? So the -- I think it was around $4.8 billion and then the temporary short-term debt, the $6 billion. Can you walk us through a path over the next couple of years of what you want those balances to be 2 or 3 years from now? And how do you get there?

祝賀你在過去 2 年中付出的所有努力，尤其是在過去 18 或 20 個月裡，顯然很忙碌。只是好奇，傑森，你能談談控股公司的債務嗎？所以——我認為大約是 48 億美元，然後是臨時短期債務，即 60 億美元。您能否在接下來的幾年中為我們介紹一條您希望這些餘額從現在起 2 或 3 年的路徑？你如何到達那裡？

Thanks, Michael. Great to be back on a formal earnings call. Again, with respect to the holding company debt, as part of our plan of reorganization, we committed to the state of California that we would not reinstate our common stock dividend until we had achieved $6.2 billion of non-GAAP core earnings. That's roughly about 3 years post emergence. And so those retained cash flows provide significant capacity to pay down that holding company debt. We're anticipating paying down roughly a little more than $3 billion of that debt over the next 5 years, with the majority of that debt being paid down over the next 3, given the retained cash flows from that suspended dividend.

謝謝，邁克爾。很高興回到正式的財報電話會議。同樣，關於控股公司債務，作為我們重組計劃的一部分，我們向加利福尼亞州承諾，在我們實現 62 億美元的非 GAAP 核心收益之前，我們不會恢復我們的普通股股息。這大約是出現後 3 年。因此，這些保留的現金流提供了償還控股公司債務的強大能力。我們預計在未來 5 年內償還大約略多於 30 億美元的債務，其中大部分債務將在接下來的 3 年內償還，因為暫停派發的股息保留了現金流。

I think with respect to the $6 billion in temporary debt, there's really 2 paths to pay that debt down. The first path is the securitization application that is in front of the commission. To the extent that, that application is approved, the $7.5 billion of proceeds from that securitization will be used to pay down that $6 billion in temporary debt. If -- and we think it's unlikely the securitization application is not approved, we have asked the commission for a permanent capital structure waiver on that $6 billion of temporary debt. And what we have committed to is using the shareholder-funded net operating losses. As we realize those shareholder-funded net operating losses, we will use those cash flows to pay down that $6 billion in temporary debt over time. And so those would be the 2 pathways to addressing that debt at the utility level.

我認為關於 60 億美元的臨時債務，實際上有兩條途徑可以償還這筆債務。第一條路徑是委託前的證券化申請。如果該申請獲得批准，該證券化的 75 億美元收益將用於償還 60 億美元的臨時債務。如果——而且我們認為證券化申請不太可能未獲批准，我們已要求委員會對這 60 億美元的臨時債務實施永久資本結構豁免。我們承諾的是使用股東資助的淨經營虧損。當我們意識到這些股東資助的淨運營虧損時，我們將使用這些現金流來償還 60 億美元的臨時債務。因此，這些將是在公用事業層面解決該債務的兩條途徑。

Got it. And if I think about when you guide for 2021 guidance, the unrecoverable interest expense that you lay out in the guidance slide. How much -- is that all just tied to the holdco debt and to the temporary debt? Or is there anything else that's contributing to that?

知道了。如果我想一想你在指導 2021 年指導時，你在指導幻燈片中列出的不可收回的利息支出。有多少——這一切都與控股公司債務和臨時債務掛鉤嗎？或者還有什麼其他因素對此有貢獻嗎？

There are sort of -- 3 sort of factors that I would -- there's the holding company debt that we've discussed. There is some incremental debt above authorized levels. First, we raised about $2.5 billion of incremental debt at the utility to fund half of the Wildfire Fund contribution upon emergence. That has no impact on our equity ratio because we have an equal amount of equity to offset it on a ratio standpoint. But it is $2.5 billion of debt above authorized levels that contributes to under-recovery.

有一些 - 我會考慮的 3 種因素 - 我們已經討論過的控股公司債務。有一些超出授權水平的增量債務。首先，我們在公用事業公司籌集了約 25 億美元的增量債務，用於在出現時為野火基金捐款的一半提供資金。這對我們的股本比率沒有影響，因為從比率的角度來看，我們有等量的股本來抵消它。但正是超過授權水平的 25 億美元債務導致了經濟復甦不足。

And then as a result of the securitization application and the impact on the equity ratio, we do have a modest amount of incremental utility debt in 2021 that is contributing to that unrecoverable interest expense that will effectively get paid down in 2022 and in 2023. Those are sort of the 3 sources beyond the -- again, the holding company and the temporary debt that we discussed.

然後，由於證券化申請和對股本比率的影響，我們在 2021 年確實有少量增量公用事業債務，這導致了無法收回的利息支出，這些利息支出將在 2022 年和 2023 年得到有效償還。那些是我們討論過的控股公司和臨時債務之外的 3 個來源。

Our next question comes from Richard Sunderland with JPMorgan.

我們的下一個問題來自摩根大通的理查德桑德蘭。

Maybe turning back to the insurance premium question that we've touched on a couple of times. Could you speak to the AB 1054 requirements? And any changes there possible should you be under a situation where you're not getting full recovery of the premiums?

也許回到我們已經提到過幾次的保險費問題。你能談談 AB 1054 的要求嗎？如果您處於無法全額收回保費的情況下，是否有任何可能的改變？

Thanks, Richard, for the question. No, I wouldn't anticipate any change to that fundamental structure that -- in AB 1054. I mean AB 1054 has passed -- really sets sort of a foundation for eligibility for the state Wildfire Fund at damages that exceed $1 billion. Utilities are encouraged to secure risk transfer up to that level. Given kind of all of the issues that California is currently undertaking, I don't necessarily see an amendment to AB 1054 that would modify that expected level of risk transfer or liability insurance.

謝謝理查德提出這個問題。不，我預計 AB 1054 中的基本結構不會發生任何變化。我的意思是 AB 1054 已經通過 - 確實為損失超過 10 億美元的州野火基金的資格奠定了基礎。鼓勵公用事業公司將風險轉移到該水平。考慮到加州目前正在處理的所有問題，我不一定會看到 AB 1054 的修正案會修改風險轉移或責任保險的預期水平。

Got it. And then just on Kincade, real quick. You spoke a little bit about this in the script. But curious in terms of reaching the expected impact of the cost in 2020 here, what hurdles from, I guess, the CPUC or other party standpoint remain to kind of tying that up?

知道了。然後就在 Kincade 上，非常快。你在劇本中談到了一點。但好奇的是，要在 2020 年達到成本的預期影響，我想，從 CPUC 或其他政黨的角度來看，還有哪些障礙可以將其捆綁起來？

Richard, it's John. I will say on Kincade, it's very early in the process. And I won't speculate on tying it up. What makes it really difficult to give more certainty in the answer is a couple of things. First, we don't have the evidence CAL FIRE has that I think is leading them to conclude what they're concluding. Their practice is to lock down evidence after the fire. So they have things we don't. As you probably know, we don't have the report from CAL FIRE either, which lays out their determination. We'd certainly like to see it. What I can tell you is if, in fact, PG&E equipment is the cause of Kincade, we would work for an expeditious resolution. It's just hard to give you a sense for the timing. And so therefore, it's hard to answer the rest of your question.

理查德，是約翰。我會在 Kincade 上說，它處於這個過程的早期階段。而且我不會推測捆綁它。真正難以在答案中給出更多確定性的原因有兩點。首先，我們沒有 CAL FIRE 擁有的證據，我認為這些證據正在引導他們得出他們正在得出的結論。他們的做法是在火災發生後鎖定證據。所以他們有我們沒有的東西。你可能知道，我們也沒有來自 CAL FIRE 的報告，其中列出了他們的決心。我們當然希望看到它。我可以告訴你的是，如果 PG&E 設備確實是 Kincade 的原因，我們會努力盡快解決。很難讓您了解時間。因此，很難回答您剩下的問題。

(Operator Instructions) Your next question comes from Paul Fremont with Mizuho.

（操作員說明）你的下一個問題來自瑞穗的 Paul Fremont。

Congratulations for being back. I guess my first question, can you just confirm the dollar amounts that were raised under the public issuance, the pipe and the convert, including all the over-allotments that are expected to be finalized or haven't been finalized?

恭喜你回來了。我想我的第一個問題是，你能否確認在公開發行、管道和轉換下籌集的美元金額，包括所有預計將最終確定或尚未最終確定的超額配售？

Yes. Thanks, Paul, for the question. The over-allotment feature, the backstop of the greenshoe, those structures were put in place to ensure that we raised a total of $9 billion across the pipe, the mandatory convertible equity as well as the common equity. And so we have issued the total $9 billion as a result of the expiration of that over-allotment feature at this time.

是的。保羅，謝謝你提出這個問題。超額配售特徵、綠鞋支持、這些結構的實施是為了確保我們通過管道、強制性可轉換股權和普通股籌集了總計 90 億美元的資金。因此，由於此時超額配售功能到期，我們已經發行了總計 90 億美元。

Great. And can I just get the convert dollar amount then? Because that's obviously going to affect the future share count.

偉大的。那我可以得到轉換美元的金額嗎？因為這顯然會影響未來的股票數量。

Paul, it's Chris. I'll make sure we follow-up with you separately on that.

保羅，是克里斯。我會確保我們就此單獨跟進您。

Great. Then is the secure -- would you expect the securitization to happen 90 days after you receive regulatory approval? So does that put you midyear next year on the securitization?

偉大的。然後是安全的——您是否希望證券化在您獲得監管批准後 90 天發生？那麼這是否會讓你在明年年中進行證券化？

Generally speaking, there is a 90-day appeal window for securitization applications. I don't think that necessarily pushes us to midyear, though. I think in terms of Bill's prepared remarks, referencing the second quarter, we took into consideration the timing of the decision as well as the appeal window. So we think it is sometimes sort of early in the second quarter.

一般來說，證券化申請有 90 天的上訴窗口。不過，我認為這不一定會將我們推到年中。我認為就比爾準備好的評論而言，參考第二季度，我們考慮了決定的時間以及上訴窗口。所以我們認為有時在第二季度有點早。

Your next question comes from Travis Miller with Morningstar.

你的下一個問題來自晨星的特拉維斯米勒。

Definitely appreciate you guys doing the call and taking the questions. A quick question, you answered most of them, but for the CEO search, how much input either are you going to seek or do you have to seek from legislators, the governor's office and other kind of non-utility entities?

非常感謝你們打電話和回答問題。一個簡短的問題，你回答了其中的大部分問題，但對於 CEO 搜索，你將尋求或必須從立法者、州長辦公室和其他類型的非公用事業實體那裡尋求多少意見？

This is Bill. Thanks for the question. There's no formal requirement. Obviously, we will look for someone that would be a good fit in California and someone that the stakeholders here would be comfortable with. There's no formal requirement for approval, but that process basically is what we went through in seeding the new Board and the new Board is an extremely talented group of people. And I think we'll do the same thing with the CEO search.

這是比爾。謝謝你的問題。沒有正式的要求。顯然，我們將尋找適合加州的人選，以及讓這裡的利益相關者感到滿意的人選。沒有正式的批准要求，但這個過程基本上是我們在培養新董事會時所經歷的，新董事會是一群非常有才華的人。我認為我們將對 CEO 搜索做同樣的事情。

So I'm really, really pleased at the prospects of having high-caliber people interested in this job. It's been a challenge for, obviously, the last couple of years. But there's nothing that will keep this corporation, in my opinion, from being able to perform in the top quartile, if not top decile level. We just got some work to do, and I think it's a great opportunity for the right person coming in. So I have no concerns about any inability to find someone that's a nice fit for the environment here in California.

所以我真的非常高興有高素質的人對這份工作感興趣。顯然，在過去的幾年裡，這一直是一個挑戰。但在我看來，沒有什麼能阻止這家公司在前四分之一（如果不是前十分之一水平）中的表現。我們只是有一些工作要做，我認為這對合適的人來說是一個很好的機會。所以我不擔心無法找到適合加利福尼亞環境的人。

Okay. Great. And then one other quick follow-up on Kincade. What's either the time line or the ability or the amount that you'd have access to that AB 1054 fund and how it might impact the insurance recovery that you've booked so far?

好的。偉大的。然後是另一個關於 Kincade 的快速跟進。您可以使用該 AB 1054 基金的時間線或能力或金額是多少，它可能如何影響您目前預訂的保險賠償？

Thanks, Travis. I'll answer the first part. Maybe, Jason, you can answer the second part. In terms of the Wildfire Fund under 1054, it's available for claims costs after insurance above $1 billion. For the reasons I was mentioning earlier, it's very early for us, no evidence, no report. We haven't paid any claims either. So in terms of tapping into that fund, we won't speculate on that. And maybe, Jason, on the second part?

謝謝，特拉維斯。我會回答第一部分。也許，傑森，你可以回答第二部分。就 1054 下的 Wildfire Fund 而言，它可用於超過 10 億美元的保險後理賠費用。由於我之前提到的原因，現在對我們來說還為時尚早，沒有證據，沒有報告。我們也沒有支付任何索賠。因此，就利用該基金而言，我們不會對此進行推測。也許，傑森，在第二部分？

Yes. Thanks, John. The -- right now, because the accrual estimate is below that $1 billion threshold, there's been no recognition of cost recovery from the state's Wildfire Fund. We would only begin to record a receivable for those expected receipts when the cost exceed that $1 billion threshold. One thing though that I will point out is that we do have and are eligible to seek recovery for about 10% of those costs through our Transmission Owner Rate Cases at FERC. We have to wait and see what the underlying report by CAL FIRE alleges before we can seek that cost recovery. But in the event that there are no substantive violations identified, then we have the opportunity to again seek about 10% of the net costs through the Transmission Owner Rate Case process.

是的。謝謝，約翰。 - 目前，由於應計費用估計低於 10 億美元的門檻，因此尚未確認該州野火基金的成本回收。只有當成本超過 10 億美元的門檻時，我們才會開始記錄這些預期收入的應收賬款。不過，我要指出的一件事是，我們確實有並且有資格通過我們在 FERC 的傳輸所有者費率案例尋求收回這些成本的大約 10%。在我們尋求成本回收之前，我們必須等待 CAL FIRE 的基礎報告所指稱的內容。但如果沒有發現實質性違規行為，那麼我們將有機會再次通過傳輸所有者費率案例流程尋求約 10% 的淨成本。

Thank you, Travis, for that question. Stephanie, thanks for helping us to organize the call today. Everyone, thanks for joining for our call today. Have a safe day, and feel free to let us know if you have additional questions. Thank you very much.

特拉維斯，謝謝你提出這個問題。斯蒂芬妮，感謝你幫助我們組織今天的電話會議。大家，感謝您參加我們今天的電話會議。祝您度過安全的一天，如果您有其他問題，請隨時告訴我們。非常感謝。

Thank you. This concludes today's conference call. You may now disconnect.

謝謝。今天的電話會議到此結束。您現在可以斷開連接。