Oct 29, 2026 earnings call — Wildfire reform urgency and Eaton Fire update
Management reaffirmed 2026 core EPS guidance of $5.90 to $6.20 and reported third quarter core EPS of $1.92.
Revenue $4.9B (est $5.3B) · EPS $1.87 (est $1.81)
Key quotes
"The objective is to achieve a long term solution that includes a clear and durable liquidity source for funding claims resolution, and a true shareholder liability cap that is not connected to the wildfire fund."
"The utility has reached substantial wildfire mitigation and grid hardening milestones, including hardening approximately 90% of its distribution system in high fire risk areas."
"First, we remain confident that SCE will be able to make a good faith showing that its conduct with respect to the Eaton Fire was consistent with the actions of a reasonable utility."
Analyst Q&A 7
deadline dates and Eaton recovery
Q (Nicholas Campanella · Barclays): Clarify the November 15 constitutional deadline. Ask if the November 30 Eaton Fire recovery compensation deadline will give enough information to estimate a potential charge and whether the PG&E prudence decision could affect how you book that liability.
A: Pedro said November 30 is the WRCP deadline and applications are increasing but still a small fraction of total claims, so WRCP alone likely will not let them extrapolate individual claim exposure yet. He noted statute of limitations dates: personal injury in January 2027 and property damage in January 2028, and other claim classes like subrogation and governmental claims also matter. Aaron said they are watching PG&E proceedings (Dixie and Kincaid) and will consider those precedents, FERC comparisons, and the totality of evidence when estimating reserves and regulatory assets.
"If you look in the constitution, it specifies that any bills need to be sent to the governor prior to November 15." — Pedro J. Pizarro (CEO)
special session appetite and 2029 CapEx
Q (Carly Davenport · Goldman Sachs): Ask if there is appetite for a special legislative session after recent hearings and whether anything stuck out. Also ask how much CapEx might be cut in the 2029 GRC if durable wildfire reform is not in place.
A: Pedro said there is openness to a special session but it is not guaranteed; they will not expect one unless a framework can win support from the senate, assembly, and governor, and they are educating policymakers. Aaron said GRC preparation is bottoms-up and they will prioritize safety, reliability and compliance; rising cost of capital means less funding for low-growth and some clean-energy investments, and the final reconciliation will be in GRC testimony development.
"I think we are hearing that there will be openness to a special session, but it is certainly not guaranteed by any means." — Pedro J. Pizarro (CEO)
insurance subrogation and reform links
Q (Gregg Orrill · UBS): Ask how reform of insurance subrogation connects to the company's goals and how they would view subrogation being addressed without the other goals being met.
A: Pedro said subrogation is part of a broader economy issue: utilities must be accountable, but not every hazard is within their control, so risks need proper allocation among insurance, a wildfire fund, customers and shareholders. Aaron added they need a predictable framework that supports access to reasonably priced capital, including a durable shareholder liability cap and liquidity measures; reducing friction in subrogation and faster resolution could save customers money and help insurers.
"I see the connection with subrogation is 1 that is important because, ultimately, you know, clearly, utilities need to be accountable for running our systems prudently." — Pedro J. Pizarro (CEO)
Eaton Fire prudence and special session timing
Q (Aidan Kelly · JPMorgan): Ask what remaining uncertainties exist in proving prudence for the Eaton Fire and whether any new findings change the assessment. Also ask if a special session bill can be sent after November 15 and whether IOUs are offering concessions.
A: Pedro said they remain confident SCE can make a good-faith showing of prudency and that AB 1.05k creates a presumption of prudence given the safety certificate unless serious doubt is shown; the CPUC process will likely take many years and typically waits for settlement amounts. He also said he cannot detail ongoing stakeholder discussions about concessions, and clarified that a bill must be sent by November 15 because the current legislature is no longer in place as of November 30.
"We remain confident that SCE will be able to make a good faith showing of its prudency." — Pedro J. Pizarro (CEO)
cost of delay and CPUC report
Q (Ryan Levine · Citi): Ask whether there is any estimate of the cost of delay if nothing happens by next August, beyond the $300 million figure, and whether any key data in the upcoming CPUC report should be highlighted.
A: Aaron said the $300 million is one data point and noted the elevated spreads have been in place since January 2025 and will continue, so costs of delay take a long time to work out because they finance long-term investments. Pedro said they are cooperating with the CPUC staff on data requests and look forward to the report, which they expect will be an important piece of information.
"But you could imagine that, you know, the elevated spreads that we have been seeing have been in place since January 2025." — Aaron D. Moss (CFO)
keep pushing for 2026 or wait until 2027
Q (Anthony Crowdell · Mizuho): Ask whether fatigue in the regulatory process means it might be better to aim for 2027 instead of pushing hard for a 2026 solution.
A: Pedro said no, it is in customers' interest to have action in 2026 and they are not stepping back from urgency; Aaron noted rating agencies are not waiting for 2027 and further downgrades would take time to recover from. They said if reform does not happen in the special session, they will continue to press in 2027 with the same urgency.
"It is in our customer's interest to have action in 2026." — Pedro J. Pizarro (CEO)
CapEx mix and trial dates
Q (Paul Zimbardo · Jefferies): Ask what percent of CapEx is safety, reliability and compliance and whether that scope is CPUC or FERC. Also ask what the additional trial dates beyond January relate to.
A: Aaron said they focus on CPUC capital and the business update shows the CapEx breakdown through 2030; about 22% is load growth and interconnection costs. On trials, they have a bellwether in January covering 8 plaintiffs plus 8 backups (16 out of tens of thousands), and subsequent trials are set later in the year, which underlines why the settlement program is needed to resolve claims efficiently; Pedro added concern about misinformation discouraging participation in the WRCP.
"And in that, about 22% of that capital is load growth in interconnection costs." — Aaron D. Moss (CFO)