PG&E Corporation (NYSE:PCG) Q2 2023 Earnings Call Transcript

A – Patti Poppe: Yes. Well, one of the things I’m really going to appreciate is this WMP process. It’s an open and transparent proceeding. It allows us to align, with our regulator and frankly to get the best ideas on the table. We welcome that alignment and we welcome the feedback, because that will make us better. And anything we can do to make the system safer, faster is important to us. Now in the revision notice that the OEIS issued, it identified eight critical issues and we have until August 7, we’ll be filing our revision — our response to that revision notice. It had some — about three main themes, I would suggest in their feedback. They’re asking for additional granularity like, for example, quarterly data through 2024 on vegetation management targets.

That’s a reasonable request, and we can provide that feedback. Additional information on proposals and alternatives considered like, for example, the changing in our underground mile timing when we might make those revisions, and more insights to understand our objectives in both the three-year filing, but also the 10-year look, which all of that is — they’re good questions and we can have good healthy dialogue, with the safety regulators here in the state to make sure that we’ve got alignment there. So we’ll submit that revision on August 7, and we expect a draft decision from OEIS at the end of September. Now the safety certificate filing date is set as prior to September 13, 2023. So, we’ll make that filing even if we don’t have a final decision on the WMP, and then the OEIS has 90 days to review our safety certificate application.

Shar Pourreza: Perfect. Big congrats, Patti on the execution. It’s pretty — it’s very noticeable. Thanks so much.

A – Patti Poppe: Thank you. Shar

Operator: Your next question is from the line of David Arcaro with Morgan Stanley. Your line is open.

Q – David Arcaro: Hi, good morning. Thanks so much for taking my question.

A – Patti Poppe: Hi, David.

Q – David Arcaro: I was just wondering if you could give an update on, how the — I guess the environmental backdrop is shaping up so far during the summer and into fire season. Just is the expectation still or are the have the conditions changed at all in terms of expectations, when you’re looking at fuel out there moisture content, just outlook into the rest of the summer and how this year’s kind of fire season is shaping up right now? Thanks.

A – Patti Poppe: Yes. So, a couple of things. One, of course all of that moisture that we got in the first quarter of this year certainly has I would say, delayed the start of fire season. We had a good moisture. But as you’ve indicated, David, it also provides for additional fuel in the form of grasses and grasses to be managed. The important thing to know, and what we’re really trying to convey in our report today and really making the distinction about how far we’ve come since 2017, we are ready no matter what. We are ready, no matter the conditions. Our Hawk 24/7 365 is utilizing all of those cameras and weather stations we know precisely the conditions and our enhanced power line safety settings went into automatic mode on July 1.

We deactivate those when conditions warrant. So there are certain cases where we do know we have high moisture and in particular polygon in our service area. And so we deactivate the EPSS but we have EPSS ready and able every single day of the year. And so for us we’re just using this as an opportunity to be wildfire ready no matter the conditions. All that being said we’re having great performance. Our EPSS settings continue to be an extraordinary risk mitigation tool for us. In fact this year our ignitions year-to-date are 50% less than what they were last year. And last year was an extraordinary year of performance as well. So we’re feeling very good about our posture and we’re ready.