PG&E Corp (PCG) 2023 Q3 法說會逐字稿

Hello. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the PG&E Corporation Third Quarter 2023 Earnings Release. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) Thank you, Jonathan Arnold, Vice President, Investor Relations. You may begin.

你好。我叫克里斯，今天我將擔任你們的會議操作員。現在，我歡迎大家關注 PG&E 公司 2023 年第三季財報。演講者發言後，將進行問答環節。 （操作員說明）謝謝投資者關係副總裁 Jonathan Arnold。你可以開始了。

Good morning, everyone, and thank you for joining us for PG&E's Third Quarter 2023 Earnings Call. With us today are Patti Poppe, Chief Executive Officer; and Carolyn Burke, Executive Vice President and Chief Financial Officer. We also have other members of the leadership team here with us in our Oakland headquarters.

大家早安，感謝您參加 PG&E 2023 年第三季財報電話會議。今天與我們在一起的有執行長 Patti Poppe；和卡羅琳·伯克，執行副總裁兼財務長。我們在奧克蘭總部還有領導團隊的其他成員。

First, I should remind you that today's discussion will include forward-looking statements about our outlook for future financial results. These statements are based on information currently available to management. Some of the important factors, which could affect our actual financial results are described on the second page of today's third quarter presentation. The presentation also includes a reconciliation between non-GAAP and GAAP financial measures.

首先，我應該提醒您，今天的討論將包括有關我們未來財務表現展望的前瞻性陳述。這些陳述是基於管理層目前可獲得的資訊。今天第三季簡報的第二頁描述了一些可能影響我們實際財務表現的重要因素。該簡報還包括非公認會計原則和公認會計原則財務指標之間的調節。

The slides along with other relevant information can be found online at investor.pgecorp.com.

這些幻燈片以及其他相關資訊可以在 Investor.pgecorp.com 上在線找到。

We would also encourage you to review our quarterly report on Form 10-Q for the quarter ended September 30, 2023. With that, it's my pleasure to hand the call over to our CEO, Patti Poppe.

我們也鼓勵您查看截至 2023 年 9 月 30 日的季度的 10-Q 表格季度報告。因此，我很高興將電話轉交給我們的執行長 Patti Poppe。

Thank you, Jonathan, and good morning, everyone. I'm pleased to report another quarter of solid progress.

謝謝喬納森，大家早安。我很高興地報告又一個季度取得了紮實進展。

As you'll see on Slide 3, our core earnings per share of $0.24 for the third quarter bring us to $0.76 for the first 9 months of 2023. We continue to work through the review process of our General Rate Case at the California Public Utilities Commission and have, therefore, not yet recognized the benefit in our earnings. With the customary memo account in place, once we receive the final order, we will book the new GRC revenues starting from the January 1, 2023 effective date.

正如您將在幻燈片3 中看到的那樣，我們第三季度的核心每股收益為0.24 美元，2023 年前9 個月的每股核心收益為0.76 美元。我們將繼續對加州公用事業公司的一般費率案例進行審查。因此，我們尚未認識到收益的好處。常規備忘帳戶到位後，一旦我們收到最終訂單，我們將從 2023 年 1 月 1 日生效之日起記入新的 GRC 收入。

As you may know, our General Rate Case is on the agenda for CPUC's November 2 voting meeting next week, and we trust that the commission appreciates the importance of reaching a timely and constructive resolution, one which provides sufficient cash flow to support the critical work we have in front of us. If the GRC is not voted out next week, there are 2 further voting meetings in November, one on the 16th and one on the 30th.

如您所知，我們的一般利率案例已列入CPUC 下週11 月2 日投票會議的議程，我們相信委員會認識到達成及時和建設性決議的重要性，該決議可以提供足夠的現金流來支持關鍵工作我們已經在我們面前了。如果GRC下週沒有被投票通過，11月還有2次投票會議，一場是16日，一場是30日。

Resolving our GRC will be a key milestone as it sets our CPUC base revenue through 2026. While we await the final decision, our memo account allows us to reaffirm our 2023 guidance range of $1.19 to $1.23. We also reaffirm our commitment to at least 10% earnings per share growth in 2024 and at least 9% in both 2025 and 2026, along with our plan for no new equity issuance through 2024.

解決GRC 將是一個重要的里程碑，因為它設定了我們到2026 年的CPUC 基本收入。在我們等待最終決定的同時，我們的備忘帳戶使我們能夠重申2023 年1.19 美元至1.23 美元的指導範圍。我們也重申，我們承諾 2024 年每股盈餘將成長至少 10%，2025 年和 2026 年至少成長 9%，並計畫在 2024 年不再發行新股。

Looking ahead, once we have the final GRC decision, we anticipate scheduling a follow-up investor call, and we look forward to providing you with a more granular update on our financial plan at the time. Then on our year-end call in February, you should expect further detail around our investment plans.

展望未來，一旦我們做出 GRC 的最終決定，我們預計會安排一次後續投資者電話會議，並且我們期待為您提供有關我們當時財務計劃的更詳細的更新資訊。然後，在我們二月份的年終電話會議上，您應該期待有關我們投資計劃的更多細節。

With respect to reinstating our common dividend, we recognize how important this is to traditional utility and income investors, and we look forward to recommending this important step to our Board soon.

關於恢復我們的普通股息，我們認識到這對傳統公用事業和收入投資者有多重要，我們期待盡快向董事會建議這一重要步驟。

Turning back to our GRC. In our filed comments with the CPUC as well as in our public advocacy, we have been vocal that we view the ALJ's Proposed Decision, or PD and the assigned commissioner's Alternate Proposed Decision, or APD, as falling short of providing the funding to accomplish the necessary safety work we have proposed on behalf of customers.

回到我們的GRC。在我們向 CPUC 提交的評論以及我們的公開宣傳中，我們一直直言不諱地表示，我們認為 ALJ 的擬議決定 (PD) 和指定專員的替代擬議決定 (APD) 未能提供資金來完成我們代表客戶提出了必要的安全工作。

As we have said, we are disappointed at the PD's apparent willingness to trade safety and reliability for short-term cost considerations. This is critical work, and in many cases, work that is required for us to execute on the safety commitments we make in our annual wildfire mitigation plan or under other regulatory orders.

正如我們所說，我們對PD明顯願意為了短期成本考量而犧牲安全性和可靠性感到失望。這是一項至關重要的工作，在許多情況下，我們需要執行我們在年度野火緩解計畫或其他監管命令中所做的安全承諾。

One good example, and there are others, is that the current PDs declined to fund over $260 million of capital for corrective maintenance of our gas meters. This work is not optional and is, in fact, required for compliance with CPUC General Order 58-A, which sets the statewide standards for gas service in California. Unless the CPUC makes meaningful changes to the cash flow elements of the current PDs, we will have to slow down making our system safer and delay meeting legislative directives and regulatory requirements. My management team and I stand for delivering safety, reliability and affordability.

一個很好的例子以及其他一些例子是，目前的 PD 拒絕資助超過 2.6 億美元的資金用於燃氣表的糾正性維護。這項工作不是可選的，事實上，是遵守 CPUC 通用命令 58-A 所必需的，該命令制定了加州天然氣服務的全州標準。除非 CPUC 對目前 PD 的現金流要素做出有意義的改變，否則我們將不得不放慢使我們的系統更安全的速度，並推遲滿足立法指令和監管要求。我和我的管理團隊致力於提供安全性、可靠性和經濟性。

We believe that our plan, thanks to the simple affordable model, offers a clear pathway to keep build growth well below the current level of inflation at 2% to 4% annually over the rate case period. The CPUC's GRC process is designed to get the best outcome, and the state has been very clear about the infrastructure they want us to build. We stand by our filing and continue to view our undergrounding plan as the fastest and most affordable path to keep our customers safe. To that end, we have been encouraged by significant statements of support received from our local leaders and stakeholders.

我們相信，由於簡單的負擔得起的模型，我們的計劃提供了一條清晰的途徑，使建築增長在利率案例期內保持遠低於當前每年 2% 至 4% 的通脹水平。 CPUC 的 GRC 流程旨在獲得最佳結果，國家對他們希望我們建造的基礎設施非常明確。我們堅持我們的備案，並繼續將我們的地下計畫視為確保客戶安全的最快、最實惠的途徑。為此，我們對當地領導人和利害關係人發表的重要支持聲明感到鼓舞。

Aside from the GRC, on Slide 4, we continue to mitigate physical and financial risk. On the physical side, we're pleased with our continued progress, mitigating wildfire risk through our layers of protection strategy. This remains at the heart of our plan, and we stand unapologetically on the side of public safety. In Sacramento, this year's legislative session included a number of bills which sought to address the very real challenges utilities have had keeping up with customer growth. Since our last update, the SB410 energization bill was passed by the legislature and signed into law by Governor Newsom.

除了 GRC 之外，在投影片 4 上，我們繼續降低實體和財務風險。在物理方面，我們對我們不斷取得的進展感到滿意，透過我們的多層保護策略減輕野火風險。這仍然是我們計劃的核心，我們毫無歉意地站在公共安全這邊。在薩克拉門托，今年的立法會議包括多項法案，旨在解決公用事業公司在滿足客戶成長方面面臨的非常現實的挑戰。自我們上次更新以來，SB410 通電法案已獲得立法機關通過，並由紐瑟姆州長簽署成為法律。

We viewed SB410 as a constructive solution, allowing us to deliver the necessary work for our customers with more timely cost recovery. One key provision is for the CPUC to establish a rate-making mechanism, allowing for recovery of energization investment above what is approved in our GRC. We believe this is appropriate given the fast-moving and unpredictable nature of electrification-related customer demand and emerging and high-quality problem for any utility would love to have.

我們將 SB410 視為一種建設性的解決方案，使我們能夠為客戶提供必要的工作，並更及時地回收成本。其中一項關鍵規定是 CPUC 建立費率制定機制，允許回收高於 GRC 批准的能源投資。我們認為，考慮到電氣化相關客戶需求的快速變化和不可預測性，以及任何公用事業公司都希望遇到的新出現的高品質問題，這是適當的。

In the newly opened Phase 2 of our GRC, we've proposed a new balancing account to implement the provisions of SB410. Keeping affordability in mind, our proposal would cap annual incremental customer bill impact at 2.5% of electric distribution rates. This could amount to over $200 million of annual revenue, supporting close to $1.5 billion of incremental capital investment. The ratemaking mechanism in addition to the GRC authorized funding will allow an estimated 300-plus distribution capacity projects and over 35,000 new business connections over the next 3 years if the proposed rate-making mechanism is adopted.

在新開設的 GRC 第二階段中，我們提出了一個新的平衡帳戶來實施 SB410 的規定。考慮到承受能力，我們的建議將年度增量客戶帳單影響限制在配電費率的 2.5%。這可能相當於超過 2 億美元的年收入，支持近 15 億美元的增量資本投資。如果採用擬議的費率制定機制，除了 GRC 授權資金之外，該費率制定機制將在未來 3 年內支援估計 300 多個分銷能力項目和超過 35,000 個新業務連接。

As with the pending GRC decision, it's critical that the Phase 2 proceeding support the necessary cash flow and timely resolution to do the work our legislature has directed and on the time line our customers are requesting. Since our last call, we've also made progress on legacy legal risk, reaching a settlement with the CPUC's Safety and Enforcement Division with respect to the Dixie Fire. This was for $45 million, most to be spent on the new electronic record system over 5 years.

與 GRC 待決的決定一樣，第二階段程序必須支持必要的現金流量和及時解決，以完成我們的立法機關指示的工作並按客戶要求的時間表完成工作，這一點至關重要。自上次通話以來，我們在遺留法律風險方面也取得了進展，與 CPUC 的安全和執法部門就迪克西火災問題達成了和解。這筆費用為 4500 萬美元，其中大部分將在 5 年內用於新的電子記錄系統。

We continue to maintain we were a prudent operator and our settlement with SED specifically preserves our ability to apply for cost recovery, both from the CPUC and from the State Wildfire Fund.

我們繼續堅稱我們是一家謹慎的營運商，我們與 SED 的和解特別保留了我們向 CPUC 和國家野火基金申請成本回收的能力。

Turning to Slide 5. Our layers of protection strategy continue to underpin our approach to wildfire risk as we strive to make our communities safer each and every day. We've now completed the work, which improves our risk reduction from 90% at the start of the year to 94%, in line with our 2023 wildfire mitigation plan. Much of this year's improvement relates to installing downed conductor detection technology, supplementing our enhanced power line safety settings and public safety power shutoff programs.

轉向幻燈片 5。我們的多層保護策略繼續支撐我們應對野火風險的方法，因為我們每天都在努力讓我們的社區更安全。我們現已完成這項工作，將風險降低率從年初的 90% 提高到 94%，符合我們的 2023 年野火緩解計畫。今年的大部分改進與安裝跌落導體檢測技術有關，補充了我們增強的電力線安全設定和公共安全電源關閉計劃。

Other improvements this year include securing (inaudible) approval for beyond line of sight drone inspections and integration of artificial intelligence for smoke detection on 610 cameras, covering over 91% of PG&E's high fire-risk areas.

今年的其他改進包括獲得（聽不清楚）超視距無人機檢查的批准，以及在 610 個攝影機上整合人工智慧煙霧偵測，覆蓋 PG&E 超過 91% 的高火災風險區域。

Our latest wildfire mitigation plan is working through the review process with the Office of Energy Infrastructure Safety, or OEIS. Last month, we submitted our supplemental response to their revision notice and their updated schedule calls for a draft decision by November 14 with a final decision by December 29.

我們最新的野火緩解計畫正在與能源基礎設施安全辦公室 (OEIS) 進行審查。上個月，我們提交了對他們的修訂通知的補充答复，更新後的時間表要求在 11 月 14 日之前做出決定草案，並在 12 月 29 日之前做出最終決定。

As directed, we're expecting to file for our 2023 safety certificate by December 12. And remember that under AB 1054, the current certificate remains in full force, while OEIS reviews the new request.

按照指示，我們預計在 12 月 12 日之前提交 2023 年安全證書。請記住，根據 AB 1054，當前證書仍然完全有效，同時 OEIS 會審查新請求。

Turning to Slide 6. Let's review our wildfire season performance to date. First, we are pleased to report that we are on track with our primary goal of zero catastrophic wildfire ignitions associated with PG&E equipment.

轉向幻燈片 6。讓我們回顧一下迄今為止我們的野火季節表現。首先，我們很高興地報告，我們正在實現與 PG&E 設備相關的零災難性野火點火的主要目標。

As of October 22, CPUC reportable admissions in our high-risk zones are down 27% from last year and down 67% from 2017. The extended period of winter storms we experienced in 2023, certainly delayed the start of fire season, but this also led to an abundance of growth and fuel once conditions dried out.

截至10 月22 日，我們高風險地區的CPUC 可報告入院人數比去年下降了27%，比2017 年下降了67%。我們在2023 年經歷的冬季風暴持續時間較長，無疑推遲了火災季節的開始，但這也一旦條件乾燥，就會帶來豐富的生長和燃料。

While we are really pleased with the headline data, variances and weather conditions from year-to-year can create some comparability challenges. To account for this, we track a weather-normalized ignition rate. We expressed this as ignitions per 100,000 circuit mile days under R3 or higher conditions, as measured by our Fire Potential Index.

雖然我們對整體數據非常滿意，但每年的差異和天氣條件可能會帶來一些可比性挑戰。為了解釋這一點，我們追蹤了天氣標準化的點火率。我們將其表示為在 R3 或更高條件下每 100,000 英里日的點火次數，並透過我們的火災潛力指數進行測量。

We've seen this ignition rate decline by 70% overall since 2017, including significant step-downs in 2021 and 2022, validating our layers of protection approach. This year, through mid-October, I am pleased to report that we've seen our weather-normalized ignition rate come down by a further 7% versus 2022.

自 2017 年以來，我們發現點火率總體下降了 70%，其中包括 2021 年和 2022 年的大幅下降，驗證了我們的多層保護方法。今年，到 10 月中旬，我很高興地報告說，我們的天氣正常化點火率比 2022 年進一步下降了 7%。

One point I want to reinforce, at PG&E, we're ready every day for dangerous conditions. Our layers of protection do not rely on weather being in our favor. We've implemented state-of-the-art situational readiness technology, tools and people. We treat every day as a high-risk day. This is the mindset that will protect our customers and our communities. No matter the conditions, we are ready.

我想強調的一點是，在 PG&E，我們每天都會做好應對危險情況的準備。我們的保護層並不依賴對我們有利的天氣。我們實施了最先進的態勢準備技術、工具和人員。我們將每一天都視為高風險的一天。這種心態將保護我們的客戶和社區。無論條件如何，我們都準備好了。

A good example is our use of public safety power shutoffs. Last year, we didn't need to activate any PSPS events since we did not experience sufficiently high-risk wind conditions. This year, we've initiated two PSPS events, one in August and one in September, and both were quite localized.

一個很好的例子是我們使用公共安全電源關閉裝置。去年，我們不需要啟動任何 PSPS 事件，因為我們沒有經歷足夠高風險的風況。今年，我們發起了兩場 PSPS 活動，一場在 8 月，一場在 9 月，而且都非常在地化。

Through our enhanced situational awareness, which breaks the system down into 2-kilometer polygons, along with our extensive use of data and advanced meteorology, we are continuing to refine our PSPS capabilities. Our program is now far more surgical than when we first rolled it out in 2018. Because of those improvements, our PSPS events only affected around 3,900 customers in August and 1,200 in September. Our post-event analysis shows that our 2023 shutoffs prevented 2 likely ignitions in close to 30,000 acres, which might have otherwise burned.

透過我們增強的態勢感知能力（將系統分解為 2 公里的多邊形），以及我們對數據和先進氣象學的廣泛使用，我們正在繼續完善我們的 PSPS 能力。現在，我們的計畫比 2018 年首次推出時更加精準。由於這些改進，我們的 PSPS 活動僅在 8 月影響了約 3,900 名客戶，在 9 月影響了 1,200 名客戶。我們的事後分析顯示，我們 2023 年的關閉措施避免了近 30,000 英畝土地上發生的兩起可能的火災，否則這些土地可能會被燒毀。

We are standing for our hometown and are resolved the catastrophic wildfires shall stop. PSPS and EPSS, Enhanced Powerline Safety Settings program have been very effective at reducing ignitions. But both present unacceptable reliability challenges for customers. That's why we see undergrounding as the right long-term infrastructure for the very specific high-risk miles identified in our 10,000-mile plan and affordable for customers at $3.40 per month for the average non-care residential customers. In fact, based on our analysis over the expected life of the assets to be installed during the GRC period, our proposal returns billions of dollars more in net present value compared to the APD.

我們支持我們的家鄉，並決心讓災難性的野火停止。 PSPS 和 EPSS、增強型電力線安全設定程序在減少火災方面非常有效。但兩者都為客戶帶來了不可接受的可靠性挑戰。這就是為什麼我們認為地下基礎設施是針對我們10,000 英里計劃中確定的非常具體的高風險里程的正確長期基礎設施，並且對於普通非護理住宅客戶來說，每月3.40 美元的價格是可以負擔得起的。事實上，根據我們對 GRC 期間安裝資產的預期壽命的分析，與 APD 相比，我們的提案的淨現值回報率高出數十億美元。

Just like our layers of physical protection, our financial plan also includes multiple layers of protection as illustrated on Slide 7. The orange wedge represents the difference between the APD rate base and our guidance midpoint. Most critically, our layers of protection include improving on the cash elements of the rate case PDs, which we are working hard to do in our advocacy.

就像我們的實體保護層一樣，我們的財務計畫也包括多層保護，如幻燈片 7 所示。橙色楔形代表 APD 利率基礎與我們的指導中點之間的差異。最重要的是，我們的保護層包括改善費率案例 PD 的現金要素，我們正在努力倡導這一點。

There are also 3 items where the PDs do not recommend this allowances, but instead shift cost recovery into other future proceedings. These include (inaudible), incremental spending on energization as provided under SB410 and our 10-year undergrounding plan under SB84.

還有 3 個項目，PD 不建議這種補貼，而是將成本回收轉移到其他未來程序。其中包括（聽不清楚）SB410 規定的增量供電支出以及 SB84 規定的 10 年地下計畫。

We also see no shortage of incremental investment headroom in our FERC jurisdiction rate base. Keep in mind that capital investment for the benefit of customers' needs can be offset with O&M reductions and efficient financing, along with low growth to make sure safe infrastructure is also affordable. This is the heart of our simple, affordable model. Our regulators and key stakeholders are just becoming familiar with this model and we must implement it in a very trustworthy way so that California can have the modern infrastructure in place that keeps people safe and energized, which takes me to my story of the month on Slide 8.

我們也認為 FERC 管轄範圍內的費率基礎並不缺乏增量投資空間。請記住，為了滿足客戶需求而進行的資本投資可以透過減少營運和維護、高效融資以及低成長來抵消，以確保安全的基礎設施也是負擔得起的。這是我們簡單、實惠的模型的核心。我們的監管機構和主要利益相關者剛開始熟悉這種模式，我們必須以非常值得信賴的方式實施它，以便加州能夠擁有現代化的基礎設施，保證人們的安全和活力，這讓我進入了幻燈片上的本月故事8.

A couple of weeks ago, I visited a site in Vacaville, where my coworkers are burying lines in a high-fire threat area. The project manager and field engineer were on site and could not have been more excited about what they were accomplishing for their hometown. This undergrounding project was originally estimated to cost close to $3.5 million a mile with a completion date in 2024. The team is now estimating a unit cost of approximately $2.9 million a mile and finishing in early December.

幾週前，我參觀了瓦卡維爾的一個工地，我的同事正在那裡的高火災威脅區域埋設電線。專案經理和現場工程師都在現場，他們對自己為家鄉所取得的成就感到非常興奮。該地下工程最初預計每英里成本將接近 350 萬美元，預計於 2024 年完工。該團隊目前預計單位成本約為每英里 290 萬美元，並於 12 月初完成。

Using lean and the principles of waste elimination, my coworkers found opportunities to reduce materials and labor costs by challenging the status quo. They reduced trench depth and width while staying in compliance with county standards and they found additional cost savings during the backfill process. The combination of these solutions brought down the unit cost and they reduced total active construction time, making it safer, faster and reducing the impact on the community.

利用精實和消除浪費的原則，我的同事發現了透過挑戰現狀來減少材料和勞動成本的機會。他們減少了溝槽深度和寬度，同時保持符合縣標準，並在回填過程中發現了額外的成本節省。這些解決方案的結合降低了單位成本，並減少了總的施工時間，使其更安全、更快，並減少了對社區的影響。

As you can imagine, each project comes with its unique challenges, and this one was no different. What is different now at PG&E is the standard set of tools and the mindset that my coworkers bring to every job. It's consistent application of lean and problem-solving that drives predictable and in some cases, extraordinary breakthrough results, no matter what challenges we face. Sticking with undergrounding, I should note that we currently have more than 2,000 qualified personnel working safely on undergrounding in our service territory every day.

正如您可以想像的那樣，每個專案都有其獨特的挑戰，這個專案也不例外。現在 PG&E 的不同之處在於我的同事為每項工作帶來的標準工具集和心態。無論我們面臨什麼挑戰，精實和解決問題的一致應用都可以帶來可預測的、在某些情況下甚至是非凡的突破性結果。說到地下作業，我應該指出的是，目前我們每天都有 2,000 多名合格人員在我們的服務區域內安全地進行地下作業。

Earlier this month, we announced that we had finished 100% of the heavy construction work necessary to complete the 350 miles targeted for this year. We expect to energize an average of 20 additional miles per week through the end of the year, and I could not be prouder of the team for overcoming the significant challenges presented by the weather we experienced earlier this year. Day by day, week by week, we are managing our progress, leveraging visual management and operating reviews, giving me the confidence to affirm that we are right on track with our plan for 2023, with line of sight running well into 2024. And with that, let me hand you over to Carolyn for our financial highlights.

本月早些時候，我們宣布已完成 100% 的重型施工工作，以完成今年 350 英里的目標。我們預計到今年年底，每周平均可以多行駛 20 英里，我為我們的團隊克服了今年早些時候所經歷的天氣帶來的重大挑戰而感到無比自豪。日復一日、週復一周，我們利用目視管理和營運審查來管理我們的進度，這讓我有信心確認我們正按照 2023 年的計劃走上正軌，並展望 2024 年。那麼，讓我把我們的財務要點交給卡洛琳。

Thank you, Patti, and good morning, everyone. This morning, I'll cover three main topics with you. Our 2023 year-to-date results, why we feel confident reaffirming our year-end and longer-term outlook and our simple affordable model.

謝謝你，帕蒂，大家早安。今天早上，我將與大家討論三個主要主題。我們 2023 年迄今為止的業績，為什麼我們有信心重申我們的年終和長期前景以及我們簡單的負擔得起的模型。

Let's start with our 2023 report card here on Slide 9. As Patti discussed earlier, we are solidly on track with our operational metrics. We also have confidence that we are on track to deliver our 2023 financial commitments.

讓我們從幻燈片 9 上的 2023 年成績單開始。正如帕蒂之前討論的那樣，我們的營運指標正在穩步走上正軌。我們也有信心能夠兌現 2023 年的財務承諾。

Today, we are reaffirming our 2023 EPS guidance range of $1.19 to $1.23, along with our EPS growth target of at least 10% for 2024 and at least 9% for 2025 and 2026. We are also reaffirming our commitment to no new equity in 2023 or 2024. You may have noticed our amber dial, signaling a potential challenge to reaching our FFO to debt target in 2024.

今天，我們重申2023 年每股收益指引範圍為1.19 美元至1.23 美元，以及2024 年每股收益成長至少10%、2025 年和2026 年至少9% 的成長目標。我們也重申2023 年不增持新股的承諾或 2024 年。您可能已經注意到我們的琥珀色錶盤，這表明在 2024 年實現 FFO 債務目標存在潛在挑戰。

While we remain committed to achieving our mid-teens FFO to debt as quickly as possible, as discussed in our public comments throughout the past several weeks, the PD and APD in our General Rate Case fall short on cash flow in two notable areas. First, both the PD and APD extend the amortization period for collecting our incremental 2023 revenue increases to 36 months, packing an additional 2 years onto our requested 12-month collection period. This longer amortization period pushes out cash flow and unnecessarily (inaudible) customers in the form of additional interest cost.

儘管我們仍然致力於盡快實現15 歲左右的FFO 債務比率，正如我們在過去幾週的公開評論中所討論的那樣，但我們的一般利率案例中的PD 和APD 在兩個顯著領域的現金流量不足。首先，PD 和 APD 都將收取 2023 年增量收入增長的攤銷期延長至 36 個月，在我們要求的 12 個月收取期的基礎上又延長了 2 年。較長的攤銷期會以額外利息成本的形式擠出現金流和不必要的（聽不清楚）客戶。

Second, the APD allows only 25% of the customary inflation index adjustment, which risks lowering the pace of our balance sheet recovery. As intervening parties acknowledge that last week's (inaudible) argument, our request and the index supporting it are consistent with commission precedent. Taken together, these cuts will constrain future cash flows. And as we've said to the commission, we will be forced to make some difficult choices on what priority work to dial back on and what to complete.

其次，APD 只允許 25% 的慣常通膨指數調整，這可能會降低我們資產負債表復甦的步伐。由於幹預方承認上週的（聽不清楚）論點，我們的要求和支持它的指數與委員會的先例一致。總的來說，這些削減將限制未來的現金流。正如我們對委員會所說的那樣，我們將被迫做出一些艱難的選擇，決定哪些優先工作要重新啟動以及要完成哪些工作。

We simply are not willing to compromise on safety, nor can the state afford to see us take a step backwards in terms of the progress we've made improving our credit metrics. As Patti mentioned, we are advocating strongly for improvements in the PD. And we trust the CPUC understands the importance of a financially healthy utility, just as we understand the importance of keeping bills affordable for customers. The simple affordable model makes both financial health and affordability possible.

我們根本不願意在安全問題上妥協，國家也不能容忍我們在改善信用指標方面取得的進展出現倒退。正如帕蒂所提到的，我們強烈主張改進效績數據。我們相信 CPUC 理解財務健康的公用事業的重要性，就像我們理解讓客戶負擔得起帳單的重要性一樣。簡單的負擔得起的模式使財務健康和負擔能力成為可能。

Turning to Slide 10. As we've said, we are on track to meet our 2023 EPS guidance of $1.19 to $1.23. On a year-to-date basis, our result is $0.76 per share, including $0.24 in the third quarter. During the first 9 months of 2023, we've realized $0.03 of favorability from operating and maintenance cost reductions, which we have fully redeployed right back into the business. And we're on track for at least our annual 2% nonfuel O&M reduction target. The $0.04 of timing is expected to fully reverse by year-end and includes the typical tax driver, which results in variances between quarterly and annual earnings. This driver is even more pronounced this year as we await the final decision in our GRC. And the $0.04 of other has not changed from last quarter.

轉向幻燈片 10。正如我們所說，我們預計將實現 2023 年每股收益 1.19 美元至 1.23 美元的目標。年初至今，我們的業績為每股 0.76 美元，其中第三季為 0.24 美元。在 2023 年前 9 個月，我們透過降低營運和維護成本獲得了 0.03 美元的優惠，我們已將其完全重新部署回業務中。我們預計將實現至少 2% 的年度非燃料 O&M 削減目標。 0.04 美元的時間預計將在年底完全逆轉，並包括典型的稅收驅動因素，這會導致季度和年度收益之間的差異。今年，當我們等待 GRC 的最終決定時，這一推動因素更加明顯。其他的0.04美元與上季相比沒有變化。

Once we receive a final GRC decision, we will record the catch-up revenues, supporting our customer capital investments for the full year 2023 as tracked in our approved memo accounts. This incremental catch-up revenue is the largest discrete driver of earnings that we project for the fourth quarter. As you may have seen, we have adjusted our accrual for the 2021 Dixie Fire this quarter. Our focus continues to be on making it right for the victims, and we are making a noncash increase to our accrual of $425 million to reflect our claims settlement experience to date. At the same time, we recorded an offsetting receivable from the State Wildfire Fund, reflecting our continued confidence in the protections provided by AB 1054.

一旦我們收到最終的 GRC 決定，我們將記錄追趕收入，以支持我們批准的備忘帳戶中追蹤的 2023 年全年客戶資本投資。這種增量追趕收入是我們預期第四季獲利的最大離散驅動因素。正如您可能已經看到的，我們本季調整了 2021 年迪克西火災的應計費用。我們的重點仍然是為受害者提供適當的幫助，我們正在將應計費用增加到 4.25 億美元，以反映我們迄今為止的理賠經驗。同時，我們記錄了來自州野火基金的抵銷應收帳款，反映了我們對 AB 1054 提供的保護的持續信心。

On Slide 11, our 10-year capital investment plan has not changed. As I mentioned earlier, we continue to advocate for improvements in the final outcome of our GRC. At the same time, we have several layers of financial protection to support our plan, including opportunities to seek cost recovery for the needed safety and reliability investments that our system requires, our customers demand and which are legislative and regulatory stakeholder support. You can be sure that we're not taking our foot off the pedal to find and realize opportunities to further improve quality and reduce cost.

在投影片 11 上，我們的 10 年資本投資計畫沒有改變。正如我之前提到的，我們繼續倡導改進 GRC 的最終結果。同時，我們有多層財務保護來支持我們的計劃，包括為我們的系統、客戶的需求以及立法和監管利益相關者的支持所需的安全性和可靠性投資尋求成本回收的機會。您可以確信，我們不會停下來尋找並實現進一步提高品質和降低成本的機會。

Reducing costs and delivering more for our customers are core to our simple affordable model shown here on Slide 12. Coupled with load growth and efficient financing, this is how we plan to keep customer bills affordable. In fact, while we expect a step-up in average customer bills in 2024 with the GRC implementation, our internal forecast for 2025 and 2026 show a declining bill trajectory as we progress our lean tools, lower O&M costs and as legacy cost items, including (inaudible) recoveries roll off. This permits us to sustain average annual bill increases from 2023 through 2026 at or below assumed inflation in the 2% to 4% range, even with the first year GRC step-up.

降低成本並為客戶提供更多服務是幻燈片 12 所示的簡單實惠模型的核心。再加上負載成長和高效融資，這就是我們計劃如何讓客戶帳單負擔得起。事實上，雖然我們預計隨著GRC 的實施，2024 年平均客戶帳單將有所增加，但我們對2025 年和2026 年的內部預測顯示，隨著我們改進精益工具、降低營運和維護成本以及遺留成本項目，帳單將呈下降趨勢，包括（聽不清楚）恢復率下降。這使我們能夠將 2023 年至 2026 年的平均年度帳單成長維持在 2% 至 4% 範圍內的假設通膨率或以下，即使第一年 GRC 上調也是如此。

Part of our affordable model is efficient financing. Our sale of a minority stake in our nonnuclear generating assets, Pacific Generation has received robust inbound interest for this attractive and unique portfolio. The regulatory record closed earlier this month and a PD is due early next year. We are targeting a transaction closing date in mid-2024.

我們負擔得起的模式的一部分是高效的融資。我們出售非核能發電資產 Pacific Generation 的少數股權，這項有吸引力且獨特的投資組合已獲得了濃厚的興趣。監管記錄已於本月初結束，PD 將於明年初到期。我們的目標交易截止日期為 2024 年中期。

I'll end here on Slide 13, looking forward to 2024. On October 13, you saw this file an advice letter with the CPUC, seeking to implement the cost of capital adjustment mechanism effective January 1, 2024, subject to commission disposition.

我將在投影片13 上結束，展望2024 年。10 月13 日，您看到了這封向CPUC 提交的建議信，尋求實施2024 年1 月1 日生效的資本成本調整機制，但須接受佣金處置。

Based on market interest rates, the mechanism has triggered, resulting in a formulaic 70 basis point upward adjustment to our return on equity and a 35 basis point upward adjustment to our cost of long-term debt. We believe the increase is well justified by market conditions. And if improved, we anticipate reinvesting any upside beyond our targeted earnings growth right back into the system for the benefit of our customers.

根據市場利率，該機制已觸發，導致我們的股本回報率公式化上調70個基點，我們的長期債務成本上調35個基點。我們認為，根據市場狀況，這一增長是合理的。如果有所改善，我們預計將超出目標獲利成長的任何收益重新投資回系統，以造福我們的客戶。

On the same day, we also filed our TO21 rate case application with FERC, seeking a 12.87% ROE, inclusive of the 50 basis point CAISO participation adder. A FERC order, except in the filing is expected by mid-December for rates to be effective January 1, 2024. Our filing includes $1.9 billion in forecasted capital additions during '23 and 2024.

同一天，我們也向 FERC 提交了 TO21 利率案例申請，尋求 12.87% 的 ROE，包括 50 個基點的 CAISO 參與加法器。 FERC 預計將於 12 月中旬發布一項命令，規定費率將於 2024 年 1 月 1 日生效。我們的文件包括 23 年至 2024 年預計增加的資本 19 億美元。

As a reminder, a nice feature of our formula rate structure is the annual true-up mechanism, which adjusts rates to reflect actual costs, including customer capital investment, which, as we've said, is an area where we see abundant growth opportunities.

提醒一下，我們的公式費率結構的一個很好的特點是年度調整機制，它調整費率以反映實際成本，包括客戶資本投資，正如我們所說，這是一個我們看到豐富成長機會的領域。

To summarize, we are mitigating both our physical and financial risk with layers of protection. Although we are concerned that the PDs and our GRC risk setting us back in our quest to restore our credit ratings, we believe we can make our system safer, faster and more affordable for our customers. At the same time, we are offering attractive earnings growth to investors.

總而言之，我們正在透過多層保護來降低實體和財務風險。儘管我們擔心 PD 和 GRC 風險會阻礙我們恢復信用評級的努力，但我們相信我們可以讓我們的系統更安全、更快、對客戶更實惠。同時，我們為投資者提供有吸引力的獲利成長。

We are looking forward to reinstating our common dividend soon and we look forward to catching up with many of you at EEI next month. With that, I'll hand it back to Patti.

我們期待盡快恢復我們的共同股息，並期待下個月在 EEI 與你們見面。說完，我會把它交還給帕蒂。

Thank you, Carolyn. Before we take your questions, I just wanted to take a moment to review our regulatory and legislative time line shown here on Slide 14 and reflect on some of our highlights in 2023, starting with our wildfire self-insurance settlement in January, which we see saving customers up to $1.8 billion through this 4-year GRC period. Other milestones include resolving our safety culture OII, settlements with the CPUC Safety and Enforcement Division for both the Zogg and the Dixie Fires, and over $1 billion of interim rate relief approved in our 2022 (inaudible) proceeding.

謝謝你，卡洛琳。在回答您的問題之前，我只想花點時間回顧一下幻燈片 14 中顯示的監管和立法時間表，並反思我們 2023 年的一些亮點，從 1 月份的野火自我保險解決方案開始，我們看到在這4 年的GRC 期內，為客戶節省高達18 億美元。其他里程碑包括解決我們的安全文化OII、與CPUC 安全和執法部門就佐格和迪克西火災達成和解，以及在我們的2022 年（聽不清楚）程序中批准的超過10 億美元的臨時費率減免。

We have plenty to look forward to as well. Key catalysts we can point to include resolving our GRC and achieving base revenue visibility through 2026, approval of our 2023 WMP and safety certificate, resolution of our GRC Phase 2 proposal to implement SB 410, our 10-year undergrounding plan filing under SB 84, disposition of our cost of capital adjustment advice letter, the proposed decision on Pacific Generation and advancing our DOE loan application.

我們也有很多值得期待的事。我們可以指出的關鍵催化劑包括解決我們的GRC 問題並在2026 年之前實現基本收入可見性、批准我們的2023 年WMP 和安全證書、解決我們實施SB 410 的GRC 第2 階段提案、我們根據SB 84 提交的10 年地下計劃，處理我們的資本成本調整建議函、對太平洋發電公司的擬議決定以及推進我們的能源部貸款申請。

That's a lot of value to come for customers as well as investors. In addition to regulatory catalysts, we look forward to further progress towards normalizing our financial profile. With the Fire Victim Trust completing their sales, restoring our credit ratings to investment grade to unlock significant financing cost savings for customers and reinstating our common dividend.

這對客戶和投資者來說都是巨大的價值。除了監管催化劑外，我們還期待在財務狀況正常化方面取得進一步進展。隨著火災受害者信託基金完成銷售，我們的信用評級將恢復至投資等級，從而為客戶節省大量融資成本，並恢復我們的共同股息。

We believe these catalysts favorably differentiate the PG&E investment story anchored in our simple affordable model. Our strategy remains focused and is based on the foundational belief that a financially healthy and well-run PG&E can and will play a leading role in enabling the clean, affordable and resilient energy future to which the state of California and our customers aspire. We trust that you feel the momentum that we do. And with that, operator, please open the lines for questions.

我們相信，這些催化劑有利於使 PG&E 投資故事以我們簡單的負擔得起的模型為基礎。我們的策略始終聚焦，並基於這樣的基本信念：財務健康且運作良好的 PG&E 能夠並將在實現加州和我們的客戶所渴望的清潔、負擔得起和有彈性的能源未來方面發揮主導作用。我們相信您會感受到我們的動力。那麼，接線員，請打開提問線路。

(Operator Instructions) The first question is from Shar Pourreza with Guggenheim.

（操作員說明）第一個問題來自古根漢的 Shar Pourreza。

Just on the core drivers for moving the metric away from on track for FFO by '24. I mean obviously, Carolyn mentioned in the prepared remarks, did quote like you have to make some pretty difficult decisions, but most of your spending being somewhat crucial for the state. I guess what difficult decisions were you referring to?

就在 24 年前讓 FFO 指標脫離正軌的核心驅動因素。我的意思顯然是，卡羅琳在準備好的發言中提到，確實引用了你必須做出一些相當困難的決定，但你的大部分支出對國家來說都至關重要。我想你指的是哪些困難的決定？

I guess how do you manage this headwind under an assumption that the various rate requests are adverse and don't work into your planning assumptions? And could we see incremental equity as a result of that as you try to rightsize the metrics?

我想，假設各種費率要求是不利的並且不符合您的計劃假設，您如何應對這種逆風？當您嘗試調整指標時，我們是否可以看到由此帶來的股權增量？

Yes. Thanks, Shar, for the question. These are all things, obviously, on our mind.

是的。謝謝莎爾的提問。顯然，這些都是我們的想法。

Look, first of all, the process isn't finished. We're in the throes of completing the final decision for our rate case. We know how important it is. We also know the important work that we want to do for customers. And that is at the heart of what we requested in the rate case and the heart of our advocacy. In terms of difficult choices, I think what we look at, we see without the necessary cash flow, it definitely slows down our ability to complete the work, but we also know that we're committed to improving the health of our balance sheet.

看，首先，這個過程還沒有完成。我們正在努力完成費率案例的最終決定。我們知道它有多重要。我們也知道我們想為客戶做的重要工作。這是我們在費率案例中要求的核心，也是我們倡議的核心。就困難的選擇而言，我認為我們看到，如果沒有必要的現金流，這肯定會減慢我們完成工作的能力，但我們也知道我們致力於改善資產負債表的健康。

I'll address your equity point, but then I want to make a broader point about the regulatory environment here in California. First, on the equity point, we're still committed for sure, to our commitment to not issue equity through 2024. We stand by that plan. We know that issuing equity at this valuation is not good for customers. We need to make sure that we have the equity and access to the capital markets that attracts capital to California, so we can make those necessary investments. So we're standing by our plan there through 2024.

我將討論您的公平問題，但接下來我想就加州的監管環境提出更廣泛的觀點。首先，在股權方面，我們仍然堅定地致力於在 2024 年之前不發行股權。我們支持該計劃。我們知道以這樣的估值發行股票對客戶不利。我們需要確保我們擁有股權和進入資本市場的機會，吸引資本來到加州，這樣我們就可以進行必要的投資。因此，我們將堅持 2024 年之前的計畫。

But back to the construct and to your question about how do we make these choices. Look, the California regulatory construct is good. It has a lot to love and I've learned that as I've been here. It provides many earnings mechanisms and provides certainty in those earnings mechanisms. Let me give you one example. We had these major storms back at the beginning of the year, like 14 storms in the first quarter. And we were able to recognize the revenue associated with covering the cost of those storms through our (inaudible) mechanism but we don't collect the cash. There's a delay in that. And so that's the part that I think people are coming to terms with here in California, specifically about PG&E is that given our -- we're on a path to become healthy, we're on a path to recover our balance sheet, we're committed to FFO to debt in the mid-teens.

但回到構造和你關於我們如何做出這些選擇的問題。看起來，加州的監管結構很好。它有很多值得喜愛的地方，我在來這裡的過程中了解了這一點。它提供了許多收益機制並為這些收益機制提供了確定性。讓我舉一個例子。今年年初我們就遭遇了這些重大風暴，例如第一季就有 14 場風暴。我們能夠透過我們的（聽不清楚）機制確認與承擔這些風暴成本相關的收入，但我們不收取現金。這裡面有一個延遲。因此，我認為加州的人們已經接受了這一點，特別是關於 PG&E，因為我們正在變得健康，我們正在恢復資產負債表，我們在十幾歲的時候就向 FFO 承諾了債務。

In order to do that, we have to have timely cash recovery. And that's the point we've been trying to make about these proposed decisions that they allow too much cash flow lag and we don't have a balance sheet that can afford that. I think a typical investment-grade utility can handle that buffer and so the regulatory construct works. But given that we are in the situation we are with our credit metrics, we've got to improve those credit metrics and this PD is essential to returning us to the position so that -- and this is the part that's most important, Shar, so that we can do that necessary work on time. We don't want to have to slow down the deployment of the work. We don't want to have to make choices for customers about which essential work we do first. We want to be able to do that work in parallel. I have the work team -- I have the team here at PG&E who's ready to go, who can do that work for customers that can make the system safer, faster, but we need the cash flow.

為此，我們必須及時收回現金。這就是我們一直試圖就這些擬議決策做出的一點，它們允許太多的現金流滯後，而我們沒有能夠承受的資產負債表。我認為典型的投資級公用事業公司可以處理這種緩衝，因此監管結構發揮作用。但鑑於我們目前的信用指標情況，我們必須改進這些信用指標，而這份績效數據對於讓我們回到原來的位置至關重要，這樣——這是最重要的部分，Shar，以便我們能夠按時完成必要的工作。我們不想放慢工作的部署。我們不想讓客戶選擇我們首先要做哪些重要工作。我們希望能夠並行完成這項工作。我有一個工作團隊——我在 PG&E 的團隊已經做好了準備，他們可以為客戶做這項工作，使系統更安全、更快，但我們需要現金流。

And so I think it's a new issue here in California. It's a new issue for our regulators to deal with the fact that our credit ratings are where they are. But we do see a path that if we all work together and if PG&E proves itself trustworthy as we work to do every day, and I think the progress we've made to date is starting to provide that evidence that we can do what we said we're going to do, we have earned the right to be trusted to deploy this cash to the best benefit of customers, and that's really what we're focused on doing, Shar.

所以我認為這在加州是一個新問題。對於我們的監管機構來說，處理我們的信用評級處於現狀這一事實是一個新問題。但我們確實看到了一條道路，如果我們大家共同努力，如果PG&E 在我們每天的工作中證明自己是值得信賴的，我認為我們迄今為止所取得的進展正在開始提供證據，證明我們可以做到我們所說的我們要做的，我們已經贏得了被信任的權利，可以將這筆現金用於為客戶帶來最大利益，而這正是我們專注於做的事情，Shar。

Got it. And then just lastly for me on Slide 7, you pointed out that the APD (inaudible) in the bottom half of the rate base guidance. Can you just comment on the cadence of the customer investments that gets you back to the midpoint. What are, I guess, some of the more additive construct? Is it SB 410, is it WMCE? And if like this whole undergrounding issue is reduced, I guess, how long would it take you to ramp up to that 10-year plan, especially there seems to be a lot of stakeholders pushing back on the undergrounding costs?

知道了。最後，在投影片 7 上，您指出 APD（聽不清楚）位於利率基礎指引的下半部。能否簡單評論一下讓您回到中點的客戶投資節奏？我猜，一些更具附加性的結構是什麼？是 SB 410 還是 WMCE？如果整個地下工程問題減少，我想，您需要多長時間才能完成該十年計劃，尤其是似乎有很多利益相關者正在抵制地下工程成本？

Yes. Good question, Shar. Thank you. I would say, first of all, these new mechanisms, particularly those that are reflected in the new legislation, SB 410 and last year's legislation around undergrounding do provide for us to do the work. But again, it all comes back to our access to cash and the cash flow.

是的。好問題，莎爾。謝謝。我想說，首先，這些新機制，特別是新立法、SB 410 和去年有關地下工程的立法中反映的機制，確實為我們進行這項工作提供了條件。但這一切又回到了我們獲得現金和現金流的情況。

And so we think that we definitely can catch up on the work and do the work if we have the cash. And so that's an important role that these PDs play as we move forward. I will also say that on the undergrounding specifically, it's a relatively small cost in the overall rate case.

所以我們認為，如果我們有現金的話，我們絕對可以趕上工作並完成工作。因此，這就是這些 PD 在我們前進的過程中所扮演的重要角色。我還要說的是，特別是在地下工程方面，在整體費率情況下，這是一個相對較小的成本。

So in terms of customer cost, as we've calculated and have been sharing $3.40 a month is the impact to customers at the peak of the rate case for customers, to do the undergrounding. And the customers I talked to are pretty excited about us doing that work. And so we continue to make the case that undergrounding in very specific miles.

因此，就客戶成本而言，正如我們計算的那樣，每月分攤 3.40 美元是在客戶費率高峰時進行地下活動對客戶的影響。與我交談過的客戶對我們進行這項工作感到非常興奮。因此，我們繼續論證在非常特定的英里範圍內進行地下化。

And I think it seems in some cases, it feels like people are trying to do all or nothing. It's either we do undergrounding or we do covered conductor. The reality is we have 1,000 miles of covered conductor, there are places on our system where covered conductor is the right choice.

我認為在某些情況下，人們似乎試圖做所有事情或什麼都不做。我們要嘛做地下埋設，要嘛做有蓋導體。現實情況是，我們擁有 1,000 英里的覆蓋導線，在我們的系統中的某些地方，覆蓋導線是正確的選擇。

What we're talking about is a very specific highest-risk miles with a very unique geography, particularly suspect for vegetation strike. And that vegetation management expense that we are doing every year, customers have to pay for. And I think people don't understand it actually is less expensive to do the undergrounding. And people understand it costs something, $3.40 a month, but it will cost more to continue to do vegetation management and overhead hardening and the maintenance of those overhead lines in these specific areas. So we continue to make the case.

我們所討論的是一個非常具體的最高風險英里，其地理位置非常獨特，特別容易受到植被破壞。我們每年都要支付的植被管理費用是客戶必須支付的。我認為人們不明白地下工程實際上更便宜。人們知道這要花一些錢，每月 3.40 美元，但繼續在這些特定區域進行植被管理和架空硬化以及架空線路的維護將花費更多。所以我們繼續論證。

Look, Shar, we see a path forward to do all of this necessary work that our customers have been begging us to do. We're excited about being able to do that work, and we're sure that we can get to a good constructive outcome with our regulators.

看，莎爾，我們看到了一條前進的道路，可以完成客戶一直懇求我們所做的所有這些必要的工作。我們很高興能夠完成這項工作，並且確信我們能夠與監管機構取得良好的建設性成果。

The next question is from Steve Fleishman with Wolfe.

下一個問題是史蒂夫·弗萊什曼和沃爾夫提出的。

So you talked about the -- obviously, to get more cash, there'd be more rate increase upfront, but then you talked about the declining bill trajectory and rollover and such that, obviously, you need to do the work and you want to get into that declining build trajectory. Could you just talk about that aspect and some of the things that help in '25, '26?

所以你談到了——顯然，為了獲得更多現金，預先會增加更多的利率，但隨後你談到了賬單軌跡下降和展期，因此，顯然，你需要做這項工作，並且你想要進入下降的建構軌跡。您能談談這方面以及對 '25、'26 有幫助的一些事情嗎？

Yes, you bet. Yes, it's a great question, Steve. And I also think it's something that's been hard to understand in all the public comments and advocacy. Look, there's some catch-up that needs to be done here. And in California, we have this construct where we need to do necessary work and the utility bears the risk of doing all the wildfire preventive work. And so there are some onetime short-term costs that are embedded in the early years of this rate proceeding. But as the years progress, then those things come out of the bill.

是的，你敢打賭。是的，這是一個很好的問題，史蒂夫。我還認為，在所有的公眾評論和倡議中，這是一件很難理解的事情。看，這裡需要做一些補充。在加州，我們有這樣的結構，我們需要做必要的工作，而公用事業公司承擔所有野火預防工作的風險。因此，在這項利率程序的最初幾年中，存在一些一次性的短期成本。但隨著時間的推移，這些事情就會從帳單中消失。

So for example, as we do the recovery of the 2023 revenues, that obviously needs to be captured then. And our proposal is a 12-month capture in 2024. So if you can imagine a customer would be collecting bills in '24 or paying bills in '24 that reflect '24 and '23s revenue and then that comes off and then the bills come down significantly. And so what we're -- the point we're trying to make is that there is some catch-up in this, but bills can definitely improve, that's just math.

例如，當我們恢復 2023 年收入時，顯然需要捕獲這一點。我們的建議是2024 年12 個月的捕獲。因此，如果您可以想像客戶將在24 年收集賬單或在24 年支付賬單，反映24 歲和23 歲的收入，然後這些收入就會消失，然後賬單就會出現顯著下降。所以我們想要表達的一點是，這方面有一些追趕，但帳單肯定可以改善，這只是數學。

But what I think is really important and the part that people don't necessarily yet appreciate about the new PG&E model is our simple affordable model. This is not just a slogan, it's not just a thing we say. This is something that we do every day. And that is funding capital investment through cost savings, cost reduction. We have had dramatic cost improvements already on our undergrounding, on our vegetation management. Our next big hurdle is our system inspections. We've got major improvements that we can make there.

但我認為真正重要的是人們還不一定會欣賞新 PG&E 模型的部分是我們簡單且經濟實惠的模型。這不僅僅是一個口號，這不僅僅是我們說的一句話。這是我們每天都在做的事情。那就是透過節省成本、降低成本來為資本投資提供資金。我們在地下工程和植被管理方面已經取得了顯著的成本改善。我們的下一個大障礙是我們的系統檢查。我們可以在那裡做出重大改進。

Then we add in the efficient financing. Look, getting our credit ratings in the right place will save customers money, not spreading out the collection of the '23 revenues over 3 and 4 years, it will save customers money. We have the ability to reduce costs in the bills, and that's what we're focused on every day. I think that's a new habit, a new pattern for PG&E to be recognized for. And so I can appreciate that regulators and others have questions and wonder if that's actually what we're going to do. All I can say, Steve, I think you know my track record, we can do real cost savings that benefit customers while we're making these very necessary investments in the infrastructure.

然後我們加上高效率融資。看，將我們的信用評級放在正確的位置將為客戶節省資金，而不是在 3 和 4 年內分散收取 23 年的收入，這將為客戶節省資金。我們有能力降低帳單成本，這就是我們每天關注的重點。我認為這是 PG&E 獲得認可的新習慣、新模式。因此，我可以理解監管機構和其他人有疑問，並想知道這是否真的是我們要做的。我只能說，史蒂夫，我想你知道我的記錄，在我們對基礎設施進行這些非常必要的投資的同時，我們可以真正節省成本，使客戶受益。

Okay. Great. And then just -- could you just go through the steps here. So the GRC is on the agenda for the meeting next week. Does that mean they likely will rule or could they delay it? And could we still get another alternate? Or are we likely just going to kind of get a final order?

好的。偉大的。然後 - 您能完成這裡的步驟嗎？因此，GRC 已列入下週會議的議程。這是否意味著他們可能會統治或可以推遲統治？我們還能找到另一個替代者嗎？或者我們可能只是得到最終訂單？

Well we're hopeful, Steve, that November 2 reflects a final decision. But what's on our mind is we want to make sure that it's the right final decision. And so -- if -- I think there's still two meetings, November 16 and November 30 if in fact, they wanted to take more time to get it right. But we're hopeful that November 2 represents a final decision.

史蒂夫，我們希望 11 月 2 日能反映出最終決定。但我們的想法是，我們希望確保這是正確的最終決定。所以——如果——我認為還有兩次會議，11 月 16 日和 11 月 30 日，如果事實上，他們想花更多時間來把事情做好。但我們希望 11 月 2 日能做出最終決定。

The next question is from Nicholas Campanella with Barclays.

下一個問題來自巴克萊銀行的尼古拉斯·坎帕內拉。

I guess just very clear on the FFO to debt disclosures here, but just can you elaborate on just the agency conversations on the path to IG right here right now? And how we should think about if this PD is adopted your path to get there?

我想這裡關於 FFO 到債務披露的問題已經非常清楚了，但您能否詳細說明一下目前在通往 IG 的道路上的機構對話？我們該如何考慮這個PD是否採取了你的路徑來實現這一目標？

Yes. Thanks for the question. We have been in continuous conversation with the rating agencies about our rating. And we've actually already spoken to them about the GRC and the PDs and the impact on FFO to debt. But we've also talked to them about our commitment to achieving mid-teens in 2024 and other ways that we can get there if we need to. But it is challenged, and it's going to slow -- it will slow our progress on our balance sheet. So the path to get there really is about FFO to debt and getting to at least the 13% to the 14%, and that's what we're committed to doing over the course of the next 2 years for sure, and we're committed to getting to mid-teens by the end of 2024.

是的。謝謝你的提問。我們一直在與評級機構就我們的評級進行持續對話。事實上，我們已經與他們討論了 GRC 和 PD 以及對 FFO 債務的影響。但我們也與他們討論了我們對 2024 年實現中青少年目標的承諾，以及在需要時我們可以實現這一目標的其他方法。但它面臨著挑戰​​，而且速度將會放緩——這將減緩我們在資產負債表上的進展。因此，實現這一目標的途徑實際上是 FFO 債務並至少達到 13% 到 14%，這肯定是我們在未來 2 年內致力於做的事情，我們致力於到 2024 年底將達到十幾歲。

That's helpful. And I think you also said in regards to the wildfire fund, you booked like a $400 million and change receivable. Is this the first time the fund has been tapped? And correct me if I'm wrong there, but just what's the process around actually receiving that?

這很有幫助。我想您也說過，關於野火基金，您預訂了 4 億美元和應收帳款變更。這是基金第一次被動用嗎？如果我錯了，請糾正我，但實際接收該資訊的過程是什麼？

So we haven't actually tapped the wildfire fund. So on the Dixie accrual, we did increase the accrual by $425 million. We have an accrual of $1.6 billion in total at this point in time. But what's important is that you can't tap the fund until you actually -- until we have actually paid out $1 billion in settlement. So to date, we have a 730 -- we've settled around $730 million, and we've paid out $575 million. So we have a ways to go to fully paying out $1 billion.

所以我們其實還沒有動用野火基金。因此，在迪克西應計項目上，我們確實將應計項目增加了 4.25 億美元。目前我們的應計總額為 16 億美元。但重要的是，在我們真正支付 10 億美元的和解金之前，你不能動用這筆資金。到目前為止，我們已經有了 730，我們已經結算了大約 7.3 億美元，並且已經支付了 5.75 億美元。因此，我們還有很長的路要走才能全額支付 10 億美元。

But the Statute of Limitations on Dixie actually runs out in October of 2024. So we are preparing for that filing as we speak and working with the fund on how to ensure a smooth of a process as possible. I'll just add in. So no, it hasn't been done before, Nicholas and so we're working through what that process will be. And so that's not perfectly clear, but I do want to remind everyone that the benefits of AB 1054, there's -- it's a fundamental change in California that really helps create the certainty required to: number one, prevent a liquidity issue in the event of a significant incident. It allows us if, in fact, we did have to, in a hurry, get access to that fund, we could access it to pay third-party damages. But as Carolyn said, it's actually -- it takes time to settle and to pay out those settlements, but the enhanced prudency standard that comes with AB 1054 is another enhancement that will be good to see as we move forward here.

但 Dixie 的訴訟時效實際上將於 2024 年 10 月到期。因此，我們正在為該申請做準備，並與該基金合作，以確保流程盡可能順利。我只是補充一下。所以不，以前沒有這樣做過，尼古拉斯，所以我們正在研究這個過程。所以這還不是很清楚，但我確實想提醒大家，AB 1054 的好處是——這是加州的一項根本性變化，確實有助於創造所需的確定性：第一，防止流動性問題一個重大事件。事實上，如果我們確實必須緊急使用該基金，它允許我們使用它來支付第三方損害賠償。但正如 Carolyn 所說，實際上 - 和解和支付這些和解金需要時間，但 AB 1054 附帶的增強審慎標準是另一個增強功能，隨著我們在此推進，這將是很好的看到。

And so I think there's a lot to appreciate about AB 1054 and the protections it provides and the certainty it allows for here in California as we do this necessary safety work to make the system safer and faster. And I'll just remind you that we also just -- we did record an offsetting receivable for the State Wildfire Fund for that accrual.

因此，我認為 AB 1054 及其提供的保護以及它在加利福尼亞州提供的確定性有很多值得讚賞的地方，因為我們正在進行必要的安全工作，以使系統更安全、更快速。我只想提醒您，我們也確實為國家野火基金記錄了該應計費用的抵銷應收帳款。

The next question is from Julien Dumoulin-Smith with Bank of America.

下一個問題來自美國銀行的 Julien Dumoulin-Smith。

Thank you very much. Appreciate the time. Just first off here, on the undergrounding and the timing-related matter here. I mean obviously, sort of for the purpose of efficiency, you want to keep this going in a more linear fashion and you guys are up and going here.

非常感謝。珍惜時間。首先，關於地下和與時間相關的問題。我的意思是，顯然，出於提高效率的目的，您希望以更線性的方式保持這種情況，而你們就站起來並繼續前進。

Do you want to talk about sort of funding and ensuring consistency and execution through the near term, barring whatever comes out in some subsequent process here on longer-term undergrounding. Obviously, you've carefully negotiated the -- with the various contractors in the medium term here, if you don't mind.

您是否想談談資金的種類以及確保短期內的一致性和執行力，除非在長期地下化的後續過程中出現任何結果。顯然，如果您不介意的話，您已經在中期與各個承包商進行了仔細的談判。

Yes. Well, first and foremost, let me be clear, we won't do work that the commission didn't fund. And so our plan right now is the most efficient plan we agree. We have done negotiations with contractors. We've developed a workforce. As I mentioned in the script, I've got 2,000 people right now today, doing undergrounding and those people are skilled and qualified and boy oh boy, I don't want to tell them that they have to step off the job. But the reality is we've got 350 miles planned for this year, and we've got engineering in the hopper to prepare us for next year's 450-mile target. And then we're focused on 550 miles in 2025 and 750 miles in 2026, but all of this is contingent upon regulator approval.

是的。好吧，首先，讓我明確一點，我們不會做委員會沒有資助的工作。所以我們現在的計劃是我們同意的最有效的計劃。我們已經與承包商進行了談判。我們已經培養了一支勞動力隊伍。正如我在劇本中提到的，我現在有 2,000 名員工，從事地下活動，這些人技術精湛、合格，天哪，我不想告訴他們必須辭職。但實際情況是，我們今年計劃行駛 350 英里，並且我們在料斗中進行了工程設計，為明年的 450 英里目標做好準備。然後我們的重點是 2025 年行駛 550 英里，2026 年行駛 750 英里，但所有這些都取決於監管機構的批准。

So if the CPUC decides we should do less undergrounding or to slow down the path, it will cost more for customers, but obviously, we'll take their direction, and we'll then file our 10-year plan and make sure that it does its best job of compelling a more favorable decision to get the scale because that's the beauty of what we've observed already, just like the story of the month that I shared on the call, we are finding savings on every job, and scale is essential to realizing those savings for customers.

因此，如果 CPUC 決定我們應該減少地下工程或放慢道路速度，那麼客戶的成本將會更高，但顯然，我們會聽從他們的指示，然後我們將提交我們的 10 年計劃並確保盡最大努力迫使做出更有利的決定來獲得規模，因為這是我們已經觀察到的美妙之處，就像我在電話會議上分享的本月故事一樣，我們在每項工作和規模上都找到了節省對於為客戶實現這些節省至關重要。

So that's really what's on our mind as we move forward. We will be filing that 10-year plan when the OEIS is prepared to receive it.

因此，這確實是我們前進時所想的。當 OEIS 準備好接收該 10 年計畫時，我們將提交該計畫。

Right. Exactly. And maybe the point is, to the extent where that has a process that could take a couple of years here. If you really want to be watching your ability and/or rather the commission's decision tree on not just '24 but also '25 in terms of what's right in the near term?

正確的。確切地。也許關鍵在於，這個過程可能需要幾年的時間。如果你真的想專注於你的能力和/或委員會的決策樹，不僅是'24，而且是'25，就近期而言是正確的？

Yes, exactly. We certainly don't want to come to a cold hard stop. Like we want to be able to keep moving and keep the acceleration of the benefits for customers, rolling every mile buried as another mile of risk virtually eliminated. And so we're really focused on these very specific miles and getting these specific miles done as soon as possible to protect the people of California, and we think we can do that at a very affordable price.

對，就是這樣。我們當然不想突然停止。就像我們希望能夠繼續前進並不斷加速為客戶帶來利益一樣，每埋藏一英里，就幾乎消除另一英里的風險。因此，我們真正專注於這些非常特定的里程，並儘快完成這些特定的里程，以保護加州人民，我們認為我們可以以非常實惠的價格做到這一點。

Excellent. And Patti, just following up on our prior conversation, on SB 410 and enabling timely interconnect. I mean do you want to talk about how that bolsters the cash flow conversation you had a second ago here on the call vis-a-vis ratings and targets?

出色的。 Patti，剛剛跟進我們先前關於 SB 410 的對話並實現及時互連。我的意思是，您想談談這如何加強您剛才在電話會議上就評級和目標進行的現金流對話嗎？

Yes. We're very grateful for the legislature and the great work that they did this year in recognizing that when you do a 4-year forward-looking rate-making, you don't -- you can't perfectly predict the demand that we're actually experiencing. And so as demand increases, SB 410 allows for an annual true-up of recoveries for the work that needs to be done to enable electric vehicle transition to electrification in the state. And I'm very proud of my team. We've been working hard to improve our own process while we get the necessary funding. What's important is that we are able to do our work more timely.

是的。我們非常感謝立法機關以及他們今年所做的出色工作，因為他們認識到，當你進行 4 年前瞻性利率制定時，你無法完美預測我們的需求。實際上正在經歷。因此，隨著需求的增加，SB 410 允許每年對實現該州電動車向電氣化過渡所需工作的回收進行調整。我為我的團隊感到非常自豪。在獲得必要的資金的同時，我們一直在努力改進我們自己的流程。重要的是我們能夠更及時地完成我們的工作。

And so here's some news from this year. We delivered a 17% increase in volume of requests this year. So in 2022, we did 7,900 new business connections. We're up to 9,200 here in 2023. So that's a 17% increase. Really proud of the team, all of our lean operating system being put to work, have deployed things like we are estimating, which is our engineering and work preparation is a critical part, but can be a bottleneck in the process. That team has gone to work reimagining how they do estimating, and they've reduced their cycle time from 116 days down to 71 days.

這是今年的一些新聞。今年我們的請求量增加了 17%。因此，2022 年，我們建立了 7,900 個新業務聯繫。到 2023 年，我們的人數將達到 9,200 人。增幅為 17%。真的為團隊感到自豪，我們所有的精益作業系統都投入使用，已經部署了我們正在估計的東西，這是我們的工程和工作準備是一個關鍵部分，但可能是過程中的瓶頸。團隊開始重新思考如何進行估算，並將週期時間從 116 天減少到 71 天。

I mean that's a 50% improvement in really a 1-year focused effort. So the ability for us to improve throughput and meet the needs of customers is real. We're starting to prove to people that we can, again, do what we said we're going to do and the cash flow that's enabled by SB 410 is helpful because it's more timely, but there is still a year's lag.

我的意思是，這實際上是 1 年集中努力的 50% 的改進。因此，我們確實有能力提高吞吐量並滿足客戶的需求。我們開始向人們證明，我們可以再次做到我們所說的要做的事情，而 SB 410 帶來的現金流很有幫助，因為它更及時，但仍然有一年的延遲。

And so again, we've got to get these credit ratings back up into investment grade so that we can attract the debt markets at the lowest cost for customers. And this whole -- the plan hangs together extremely well when we are -- when we have a balance sheet to fund all this really important work that we need to do for customers.

同樣，我們必須將這些信用評級恢復到投資級別，以便我們能夠以最低的成本吸引客戶進入債務市場。當我們擁有資產負債表來為我們需要為客戶做的所有這些真正重要的工作提供資金時，整個計劃就非常緊密地結合在一起。

The next question is from Gregg Orrill with UBS.

下一個問題來自瑞銀集團的格雷格·奧裡爾。

On PacGen, I know there's been a lot of support in the process. Could you sort of remind us about what has to happen to close the transaction from here and any sort of risks or concerns you might have around it? .

在 PacGen 上，我知道在過程中得到了很多支持。您能否提醒我們從這裡完成交易需要發生什麼以及您可能對此有任何風險或擔憂？ 。

Thanks for the question. So PacGen is on track. We're following the process, as we've mentioned, that we had kicked off our Phase 1 of the sales process at the end of June and July, and we're now in what we would call Phase 2. So we're tracking the marketing and sales process right along with the regulatory process. I think the major milestone on the regulatory really is that the PD is due in January of 2024 or within 90 days of the record closing, which occurred on October 5, 2023.

謝謝你的提問。所以 PacGen 已步入正軌。正如我們所提到的，我們正在遵循我們在六月底和七月啟動銷售流程第一階段的流程，現在我們正處於第二階段。所以我們追蹤行銷和銷售流程以及監管流程。我認為監管方面的重要里程碑實際上是 PD 將於 2024 年 1 月或記錄截止日期（2023 年 10 月 5 日）後 90 天內到期。

So we still expect the closing to occur in the first half of 2024. We have seen very robust interest from what we expected in terms of interest in these very unique differentiated assets, largely from infrastructure funds, but we're pleased with the interest and still expect the time line to be as we've discussed in past earnings calls. And I'll add. The PacGen, the whole purpose of that is for efficient financing for customers. And so this is a good example of how -- we're not just counting on others, we're not just counting on the regulators to fix our balance sheet. There are things, self-action that we can take that we are taking that is really intended to help enable customers to get the value that they're demanding, the value they deserve in this infrastructure that we have the privilege to build for them. And so this is just another example of our simple affordable model, efficient financing as a piece of the puzzle to make sure that we can invest in the infrastructure and save customers money. And so that's what we're up to on this transaction.

因此，我們仍然預計交割將於 2024 年上半年進行。與我們預期的情況相比，我們看到了對這些非常獨特的差異化資產的濃厚興趣，主要來自基礎設施基金，但我們對這種興趣和仍然預計時間表將如我們在過去的財報電話會議中討論的那樣。我補充一下。 PacGen 的全部目的是為客戶提供高效率的融資。因此，這是一個很好的例子，說明我們不僅僅指望其他人，我們也不只是指望監管機構來修復我們的資產負債表。我們可以採取一些自我行動，我們正在採取的真正目的是幫助客戶獲得他們所要求的價值，他們在我們有幸為他們建造的基礎設施中應得的價值。因此，這只是我們簡單的負擔得起的模式的另一個例子，高效的融資是確保我們能夠投資基礎設施並為客戶節省資金的一部分。這就是我們這筆交易的目的。

The next question is from Ryan Levine with Citi.

下一個問題來自花旗集團的 Ryan Levine。

As the company engages the CPUC ahead of the November 2 potential decision, is the company open to accelerating or open to committing to accelerate the undergrounding of the top 5% risk lines? And to the extent that permitting is a limitation, is there a political solution that could help advance both the company and key stakeholders' interest on this front?

由於該公司在 11 月 2 日可能做出決定之前與 CPUC 進行了接觸，因此該公司是否願意加速或願意承諾加速將前 5% 的風險線轉入地下？如果許可是一種限制，是否有政治解決方案可以幫助提高公司和主要利害關係人在這方面的利益？

Yes. Our plan is dynamic enough that in '25 and '26, we can adjust the miles and make sure that they're mutually agreeable, if you will. I will say that as we designed the sequencing of the miles, we picked -- well -- and let me just start with every mile in the 10,000 miles is high risk. So if you do mile 8,000 or mile 2000, you're still tackling a high-risk mile. So we'll start with that. But as we sequence those 10,000 miles, we did include the adjacent miles that also will be underground for an efficiency. That's how we get to the lower unit cost.

是的。我們的計劃足夠動態，如果您願意的話，我們可以在 25 年和 26 年調整里程並確保它們是雙方同意的。我想說的是，當我們設計里程順序時，我們選擇了——好吧——讓我從 10,000 英里中的每一英里開始都是高風險的。因此，如果您跑了 8,000 英里或 2000 英里，您仍然面臨著高風險的里程。那我們就從這個開始吧。但當我們對這 10,000 英里進行排序時，我們確實包括了相鄰的英里，這些英里也將位於地下，以提高效率。這就是我們降低單位成本的方法。

But if there's certain miles that the regulators instruct us to do sooner as we work with OEIS on our risk reduction plan, will definitely be prioritized. We definitely are focused on making sure that the system is safe today because of our mechanisms like EPSS and public safety power shutoffs but those cause outages. The public safety power shutoffs and the EPSS mechanisms are working, we showed that with our ignition reduction. And so we know customers are safe today, but we want them to be resilient. We don't want customers to have to choose between having safety or having power. We want them to have both and undergrounding is the lowest cost path to that future.

但是，如果監管機構指示我們在與 OEIS 合作制定風險降低計劃時盡快完成某些里程任務，那麼我們肯定會優先考慮。我們今天肯定專注於確保系統安全，因為我們有 EPSS 和公共安全電源關閉等機制，但這些都會導致停電。公共安全電源關閉和 EPSS 機制正在發揮作用，我們透過減少點火來證明這一點。因此，我們知道今天的客戶是安全的，但我們希望他們能夠保持彈性。我們不希望客戶必須在安全和電力之間做出選擇。我們希望他們兩者兼得，而地下化是實現這未來的成本最低的途徑。

I appreciate the response. And then one other unrelated. In terms of the details on SB 410 impact, what is the nature of the 300-plus projects highlighted in the prepared remarks, any color you could share there?

我很欣賞你的回應。然後是另一件無關的事。就 SB 410 影響的細節而言，準備好的評論中強調的 300 多個項目的性質是什麼，您可以分享其中的任何顏色嗎？

Yes. So we have demands every day on capacity increases, EV charging infrastructure. And so that's just -- and that demands -- some of that we can't -- we don't know the project request yet because it will come in a very -- it happens all the time. And so that's the point about SB 410. We can't perfectly predict what those 300 projects would be. Otherwise, we wouldn't need the mechanism. Because it comes in as EV penetration increases to meet the state's direction as EV charging infrastructure gets built out. That will vary year after year after year. And so that's the beauty of SB 410, whatever the demand is, we can meet it. And we won't recover more than we install, we'll just have good timely true-up of that work that gets demanded by customers. And so that's more of a calculated 300 than actual specific 300 projects.

是的。因此，我們每天都有增加容量、電動車充電基礎設施的需求。所以這只是 - 並且要求 - 其中一些我們不能 - 我們還不知道項目請求，因為它會非常 - 它一直在發生。這就是 SB 410 的重點。我們無法完美預測這 300 個項目會是什麼。否則，我們就不需要這個機制。因為隨著電動車充電基礎設施的建設，電動車普及率不斷提高，以滿足國家的方向。年復一年，情況會有所不同。這就是 SB 410 的美妙之處，無論需求是什麼，我們都能滿足。我們不會恢復比安裝的更多的內容，我們只會及時調整客戶要求的工作。因此，這更多是計算出的 300 個項目，而不是實際的具體 300 個項目。

The next question is from Jeremy Tonet with JPMorgan.

下一個問題來自摩根大通的 Jeremy Tonet。

This is Rich Sunderland on for Jeremy. Can you hear me?

我是里奇·桑德蘭 (Rich Sunderland) 替補傑里米 (Jeremy)。你聽得到我嗎？

We sure can.

我們當然可以。

Great. Slide 7, I know you've parsed this from a couple of different angles, but I just wanted to circle back to those categories broadly under customer investments. Could you speak a little bit more to, I guess, timing and dollar of those? I don't know if it's best if they've gone sort of a cash basis or a CapEx basis. But when you might have clarity on some of those, should PD or APD stand as it is today?

偉大的。第 7 張投影片，我知道您已經從幾個不同的角度解析了這個問題，但我只想回到客戶投資下的這些類別。我想你能多談談這些的時間安排和資金嗎？我不知道他們採用現金基礎還是資本支出基礎是否最好。但是，當您可能對其中一些內容有了清晰的認識時，PD 或 APD 應該像現在這樣嗎？

Yes. Well, we'll be working that. First and foremost, we think a revision to the PD will be good and enable us to do more faster, so number one. Number two, though, as we look at the SB 410, that's going to be driven by customer demand, and that's good work to be done.

是的。好吧，我們會努力的。首先也是最重要的，我們認為對效績數據的修訂將是一件好事，使我們能夠更快地做得更多，所以第一。不過，第二點是，當我們審視 SB 410 時，這將由客戶需求驅動，這是一項有待完成的出色工作。

Our (inaudible) proceedings, we'll continue to file those on a timely basis. Those certainly help with cash flow. It's a good example of a delayed recovery that doesn't affect earnings, but it certainly affects our credit metrics and our balance sheet. And so (inaudible) will be important to be resolved in a timely manner. But the 10-year undergrounding plan just provides the pathway to the lowest cost, safest infrastructure. And then certainly, FERC transmission, as you saw, we filed our TO filing earlier in October. We'll continue to leverage the ability to do that at those transmission projects as well as key components of the whole picture.

我們的（聽不清楚）訴訟程序，我們將繼續及時歸檔。這些肯定有助於現金流。這是延遲復甦的一個很好的例子，它不會影響收益，但它肯定會影響我們的信用指標和資產負債表。因此（聽不清楚）及時解決非常重要。但十年地下工程計劃只是提供了通往成本最低、最安全的基礎設施的途徑。當然，如您所見，FERC 傳輸，我們在 10 月初提交了 TO 備案。我們將繼續利用這些能力來完成這些輸電項目以及整個計劃的關鍵組成部分。

One of the things that is really important to understand as I rattle off all those things, there is so much work to be done here, work that customers deserve, work that customers will greatly value and benefit from, work that customers have been asking us to do for some time. And so what's important to recognize is we always self-regulate the volume of work we do on customers' ability to afford. That is the simple affordable model, that we can invest in this capital infrastructure as indicated in -- on Slide 7, but we offset it with cost savings for customers every single day. And so those cost savings is what makes it possible to grow rate base like that without putting an undue burden on customers and their ability to pay. So it's value for customers and cost savings that make up that simple, affordable model, good for customers, good for investors.

當我滔滔不絕地講述所有這些事情時，需要理解的一件事非常重要，這裡有很多工作要做，客戶應得的工作，客戶將非常重視並從中受益的工作，客戶一直要求我們做的工作做一段時間。因此，重要的是要認識到，我們始終根據客戶的負擔能力自我調節我們所做的工作量。這是一個簡單的負擔得起的模型，我們可以投資於幻燈片 7 中所示的資本基礎設施，但我們每天都會透過為客戶節省的成本來抵消它。因此，這些成本節省使得我們可以在不給客戶及其支付能力帶來過度負擔的情況下擴大費率基礎。因此，對客戶的價值和成本的節省構成了這種簡單、實惠的模式，對客戶和投資者都有好處。

Understood. Very helpful. And maybe since you referenced TO21 application. Curious if there are any notable requests in that beyond ROE and cap structure? Any other potential areas you're focused on with that?

明白了。很有幫助。也許是因為您提到了 TO21 申請。好奇除了股本回報率和上限結構之外是否還有任何值得注意的要求？您還關注其他哪些潛在領域嗎？

No, it's good bread-and-butter transmission investment, stuff that helps enable the clean energy transition that's happening here in California and work that improves both reliability and access to that clean energy.

不，這是一項很好的基礎輸電投資，有助於實現加州正在發生的清潔能源轉型，並提高可靠性和獲得清潔能源的機會。

That will conclude our question-and-answer session. I'll turn it back over to Patti Poppe, Chief Executive Officer of PG&E Corporation, for any closing remarks.

我們的問答環節就到此結束。我會將其轉交給 PG&E 公司執行長 Patti Poppe 發表結束語。

Thank you, Chris. Well, thanks, everyone, for joining us. We definitely enjoy this time together, but we appreciate certainly your patience on this GRC. It has a long-term impact. And it is worth the way to get it right and to make sure that we are aligned with our regulators. We all want the same thing. We want the safest system as fast as possible that customers can afford. And so we're working together to get to a good outcome and we appreciate your patience.

謝謝你，克里斯。好的，謝謝大家加入我們。我們確實很享受在一起的時光，但我們當然感謝您對此 GRC 的耐心。它具有長期影響。採取正確的方法並確保我們與監管機構保持一致是值得的。我們都想要一樣的東西。我們希望盡可能快速地為客戶提供最安全的系統。因此，我們正在共同努力以取得良好的結果，感謝您的耐心等待。

We will hold a special call once we have a final decision to review the details and share more of our insights when we get to a final resolution. We look forward to seeing you at EEI. And please, be safe out there.

一旦我們做出最終決定，我們將舉行一次特別電話會議，以審查細節，並在達成最終解決方案時分享更多我們的見解。我們期待在 EEI 見到您。請注意安全。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. 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。您現在可以斷開連線。