WEBVTT 00:34:25.163 --> 00:34:27.064 align:middle line:85% position:50% size:70% AND WELCOME. I AM CALLING TO 00:34:27.131 --> 00:34:28.900 align:middle line:85% position:50% size:70% ORDER TODAY'S HEARING OF THE 00:34:28.966 --> 00:34:30.134 align:middle line:85% position:50% size:78% ASSEMBLY COMMITTEE ON UTILITIES 00:34:30.201 --> 00:34:32.870 align:middle line:85% position:50% size:78% AND ENERGY. TODAY IS THE SECOND 00:34:32.937 --> 00:34:34.639 align:middle line:85% position:50% size:60% HEARING IN OUR SERIES ON 00:34:34.705 --> 00:34:36.808 align:middle line:85% position:50% size:73% CALIFORNIA'S WILDFIRE CRISIS. 00:34:36.874 --> 00:34:38.576 align:middle line:85% position:50% size:50% TODAY WE TURN TO THE 00:34:38.643 --> 00:34:40.411 align:middle line:85% position:50% size:73% GENERATIONAL INVESTMENTS THAT 00:34:40.478 --> 00:34:42.246 align:middle line:85% position:50% size:70% CALIFORNIA IS POISED TO MAKE 00:34:42.313 --> 00:34:44.382 align:middle line:85% position:50% size:70% OVER THE NEXT TWO DECADES IN 00:34:44.449 --> 00:34:45.817 align:middle line:85% position:50% size:65% OUR ELECTRIC GRID, AND THE 00:34:45.883 --> 00:34:47.618 align:middle line:85% position:50% size:73% DEGREE TO WHICH WILDFIRE RISK 00:34:47.685 --> 00:34:49.821 align:middle line:85% position:50% size:73% IS THREATENING OUR ABILITY TO 00:34:49.887 --> 00:34:51.522 align:middle line:85% position:50% size:65% FINANCE THOSE INVESTMENTS. 00:34:51.589 --> 00:34:53.157 align:middle line:85% position:50% size:73% BEFORE WE DIG IN, I HAVE SOME 00:34:53.224 --> 00:34:54.459 align:middle line:85% position:50% size:45% BRIEF HOUSEKEEPING 00:34:54.525 --> 00:34:55.893 align:middle line:85% position:50% size:73% ANNOUNCEMENTS. PUBLIC COMMENT 00:34:55.960 --> 00:34:56.994 align:middle line:85% position:50% size:68% IS WELCOME IN PERSON. WE'LL 00:34:57.061 --> 00:34:58.696 align:middle line:85% position:50% size:78% HAVE AN OPPORTUNITY FOR THAT AT 00:34:58.763 --> 00:34:59.831 align:middle line:85% position:50% size:63% THE CONCLUSION OF TODAY'S 00:34:59.897 --> 00:35:01.632 align:middle line:85% position:50% size:63% PANELS. OTHERWISE, PUBLIC 00:35:01.699 --> 00:35:03.134 align:middle line:85% position:50% size:78% COMMENT MAY BE SUBMITTED ONLINE 00:35:03.201 --> 00:35:05.570 align:middle line:85% position:50% size:65% VIA THE COMMITTEE WEBSITE. 00:35:05.636 --> 00:35:06.671 align:middle line:85% position:50% size:68% LASTLY, AS IS CUSTOMARY, WE 00:35:06.737 --> 00:35:08.506 align:middle line:85% position:50% size:65% WILL NOT ACCEPT DISRUPTIVE 00:35:08.573 --> 00:35:09.607 align:middle line:85% position:50% size:58% BEHAVIOR AND WILL APPLY 00:35:09.674 --> 00:35:11.042 align:middle line:85% position:50% size:65% ASSEMBLY RULES TO MAINTAIN 00:35:11.108 --> 00:35:13.978 align:middle line:85% position:50% size:73% ORDER AND RUN A FAIR HEARING. 00:35:14.045 --> 00:35:16.347 align:middle line:85% position:50% size:70% WITH THAT TO THE BUSINESS AT 00:35:16.414 --> 00:35:19.650 align:middle line:85% position:50% size:65% HAND. CALIFORNIA IS MAKING 00:35:19.717 --> 00:35:21.786 align:middle line:85% position:50% size:75% TRULY GENERATIONAL INVESTMENTS 00:35:21.853 --> 00:35:23.554 align:middle line:85% position:50% size:73% IN OUR ELECTRIC GRID OVER THE 00:35:23.621 --> 00:35:25.389 align:middle line:85% position:50% size:70% COURSE OF THE NEXT 20 YEARS. 00:35:25.456 --> 00:35:27.258 align:middle line:85% position:50% size:63% CALIFORNIA IS EXPECTED TO 00:35:27.325 --> 00:35:29.060 align:middle line:85% position:50% size:78% INCREASE GENERATION CAPACITY BY 00:35:29.126 --> 00:35:31.863 align:middle line:85% position:50% size:65% SOME 300% AND TRANSMISSION 00:35:31.929 --> 00:35:35.867 align:middle line:85% position:50% size:75% CAPACITY BY SOME 350% OVER THE 00:35:35.933 --> 00:35:37.635 align:middle line:85% position:50% size:65% NEXT FIVE YEARS. PG AND E, 00:35:37.702 --> 00:35:39.804 align:middle line:85% position:50% size:75% SOUTHERN CALIFORNIA EDISON AND 00:35:39.871 --> 00:35:41.939 align:middle line:85% position:50% size:60% S, G, S, D, G AND E HAVE 00:35:42.006 --> 00:35:45.977 align:middle line:85% position:50% size:73% PLANNED ABOUT $125 BILLION OF 00:35:46.043 --> 00:35:46.611 align:middle line:85% position:50% size:65% INVESTMENT. THAT'S ROUGHLY 00:35:46.677 --> 00:35:48.479 align:middle line:85% position:50% size:78% DOUBLE WHAT THEY SPENT A DECADE 00:35:48.546 --> 00:35:52.116 align:middle line:85% position:50% size:73% AGO. AND LADWP HAS ITS OWN 30 00:35:52.183 --> 00:35:54.552 align:middle line:85% position:50% size:75% MORE THAN $30 BILLION PLAN FOR 00:35:54.619 --> 00:35:56.320 align:middle line:85% position:50% size:55% POWER AND WATER. THESE 00:35:56.387 --> 00:35:57.088 align:middle line:85% position:50% size:70% INVESTMENTS WILL CONNECT NEW 00:35:57.154 --> 00:35:58.923 align:middle line:85% position:50% size:68% HOMES AND BUSINESSES, POWER 00:35:58.990 --> 00:36:00.291 align:middle line:85% position:50% size:70% ELECTRIC CARS AND BUILDINGS, 00:36:00.358 --> 00:36:02.093 align:middle line:85% position:50% size:70% REPLACE AGING EQUIPMENT, AND 00:36:02.159 --> 00:36:04.996 align:middle line:85% position:50% size:70% MAKE OUR GRID LESS LIKELY TO 00:36:05.062 --> 00:36:07.198 align:middle line:85% position:50% size:50% WILDFIRE RISK. THESE 00:36:07.265 --> 00:36:08.232 align:middle line:85% position:50% size:65% INVESTMENTS REALLY ARE THE 00:36:08.299 --> 00:36:09.700 align:middle line:85% position:50% size:60% BACKBONE OF CALIFORNIA'S 00:36:09.767 --> 00:36:11.536 align:middle line:85% position:50% size:73% HOUSING, ECONOMIC AND CLIMATE 00:36:11.602 --> 00:36:14.672 align:middle line:85% position:50% size:75% GOALS. THIS IS, AS I SAID, THE 00:36:14.739 --> 00:36:17.275 align:middle line:85% position:50% size:75% SECOND IN OUR FALL FALL SERIES 00:36:17.341 --> 00:36:19.076 align:middle line:85% position:50% size:68% OF HEARINGS ON CALIFORNIA'S 00:36:19.143 --> 00:36:21.245 align:middle line:85% position:50% size:75% WILDFIRE CRISIS. LAST WEEK, WE 00:36:21.312 --> 00:36:23.014 align:middle line:85% position:50% size:68% ASKED WHETHER THE POST 2019 00:36:23.080 --> 00:36:24.815 align:middle line:85% position:50% size:55% SAFETY REGIME HAS MADE 00:36:24.882 --> 00:36:26.617 align:middle line:85% position:50% size:73% CALIFORNIANS SAFER. TODAY, WE 00:36:26.684 --> 00:36:28.452 align:middle line:85% position:50% size:73% TURN TO MONEY. WE'RE ASKING A 00:36:28.519 --> 00:36:30.955 align:middle line:85% position:50% size:78% FEW SIMPLE QUESTIONS. HOW DO WE 00:36:31.022 --> 00:36:32.356 align:middle line:85% position:50% size:75% BUILD THE GRID THAT CALIFORNIA 00:36:32.423 --> 00:36:34.525 align:middle line:85% position:50% size:75% NEEDS AND ON WHAT TERMS? AS WE 00:36:34.592 --> 00:36:35.993 align:middle line:85% position:50% size:68% KNOW, CUSTOMERS ARE ALREADY 00:36:36.060 --> 00:36:38.129 align:middle line:85% position:50% size:65% STRETCHED INCREDIBLY THIN. 00:36:38.195 --> 00:36:40.331 align:middle line:85% position:50% size:73% RATES AT OUR THREE LARGE IOUS 00:36:40.398 --> 00:36:42.833 align:middle line:85% position:50% size:73% HAVE OUTPACED INFLATION SINCE 00:36:42.900 --> 00:36:44.602 align:middle line:85% position:50% size:70% 2021, AND THE CPUC SAYS THAT 00:36:44.669 --> 00:36:46.437 align:middle line:85% position:50% size:75% WILDFIRE COSTS ARE THE LARGEST 00:36:46.504 --> 00:36:47.872 align:middle line:85% position:50% size:70% REASON. THOSE WILDFIRE COSTS 00:36:47.939 --> 00:36:50.808 align:middle line:85% position:50% size:70% NOW RUN ABOUT $41 A MONTH ON 00:36:50.875 --> 00:36:53.611 align:middle line:85% position:50% size:75% THE AVERAGE. PG AND E BILL $27 00:36:53.678 --> 00:36:56.814 align:middle line:85% position:50% size:75% AT SẼ ĐỂ AND $21 AT SDG AND E. 00:36:56.881 --> 00:36:58.683 align:middle line:85% position:50% size:73% ON TOP OF THAT, WILDFIRE RISK 00:36:58.749 --> 00:37:00.851 align:middle line:85% position:50% size:78% IS RAISING THE PRICE OF CAPITAL 00:37:00.918 --> 00:37:03.421 align:middle line:85% position:50% size:73% ITSELF. RATINGS AGENCIES HAVE 00:37:03.487 --> 00:37:04.555 align:middle line:85% position:50% size:68% WARNED THAT IF THE WILDFIRE 00:37:04.622 --> 00:37:06.524 align:middle line:85% position:50% size:55% FUND RUNS DRY, MOST OF 00:37:06.591 --> 00:37:08.059 align:middle line:85% position:50% size:73% CALIFORNIA'S IOU SECTOR COULD 00:37:08.125 --> 00:37:09.860 align:middle line:85% position:50% size:70% FALL BELOW INVESTMENT GRADE. 00:37:09.927 --> 00:37:11.629 align:middle line:85% position:50% size:70% AND WE'RE ALREADY SEEING THE 00:37:11.696 --> 00:37:13.064 align:middle line:85% position:50% size:60% CONSEQUENCES OF THAT. IN 00:37:13.130 --> 00:37:14.231 align:middle line:85% position:50% size:70% SEPTEMBER, PG AND E DEFERRED 00:37:14.298 --> 00:37:16.734 align:middle line:85% position:50% size:68% ABOUT $2 BILLION OF PLANNED 00:37:16.801 --> 00:37:19.136 align:middle line:85% position:50% size:75% 2027 INVESTMENT, IMPACTING NEW 00:37:19.203 --> 00:37:20.938 align:middle line:85% position:50% size:75% CUSTOMER CONNECTIONS AND CLEAN 00:37:21.005 --> 00:37:23.074 align:middle line:85% position:50% size:70% ENERGY INTERCONNECTIONS. AND 00:37:23.140 --> 00:37:24.442 align:middle line:85% position:50% size:65% PUBLIC POWER IS NAVIGATING 00:37:24.508 --> 00:37:26.444 align:middle line:85% position:50% size:70% THESE SAME CHALLENGES. AFTER 00:37:26.510 --> 00:37:30.047 align:middle line:85% position:50% size:73% THE JANUARY 2025 FIRES, LADWP 00:37:30.114 --> 00:37:31.849 align:middle line:85% position:50% size:78% POWER BONDS WERE DOWNGRADED TWO 00:37:31.916 --> 00:37:33.551 align:middle line:85% position:50% size:78% NOTCHES. AND THAT DOWNGRADE HAS 00:37:33.618 --> 00:37:35.386 align:middle line:85% position:50% size:65% ALREADY COST ITS CUSTOMERS 00:37:35.453 --> 00:37:37.555 align:middle line:85% position:50% size:73% MILLIONS OF DOLLARS IN HIGHER 00:37:37.622 --> 00:37:39.090 align:middle line:85% position:50% size:63% INTEREST. SO TODAY WE ARE 00:37:39.156 --> 00:37:40.791 align:middle line:85% position:50% size:73% DIGGING INTO THREE QUESTIONS. 00:37:40.858 --> 00:37:42.593 align:middle line:85% position:50% size:78% FIRST, WHAT IS THE SCALE OF THE 00:37:42.660 --> 00:37:44.762 align:middle line:85% position:50% size:75% GENERATIONAL INVESTMENT AHEAD? 00:37:44.829 --> 00:37:45.896 align:middle line:85% position:50% size:70% SECOND, HOW MUCH IS WILDFIRE 00:37:45.963 --> 00:37:47.999 align:middle line:85% position:50% size:78% RISK ADDING TO THE COST OF THIS 00:37:48.065 --> 00:37:49.433 align:middle line:85% position:50% size:70% INVESTMENT? WE'RE LEADING TO 00:37:49.500 --> 00:37:51.335 align:middle line:85% position:50% size:70% POTENTIAL DELAYS. AND THREE, 00:37:51.402 --> 00:37:52.703 align:middle line:85% position:50% size:75% WHAT ARE THE OPTIONS BEFORE US 00:37:52.770 --> 00:37:55.940 align:middle line:85% position:50% size:78% TO REBALANCE THIS SITUATION? WE 00:37:56.007 --> 00:37:56.974 align:middle line:85% position:50% size:75% RECOGNIZE THAT ANY SOLUTION TO 00:37:57.041 --> 00:37:58.776 align:middle line:85% position:50% size:70% THIS CRISIS COMES WITH TRADE 00:37:58.843 --> 00:38:00.945 align:middle line:85% position:50% size:70% OFFS. AND AS WE EVALUATE THE 00:38:01.012 --> 00:38:02.380 align:middle line:85% position:50% size:68% OPTIONS BEFORE US, THE TEST 00:38:02.446 --> 00:38:04.915 align:middle line:85% position:50% size:68% REALLY IS VERY SIMPLE. WHAT 00:38:04.982 --> 00:38:06.450 align:middle line:85% position:50% size:75% DOES IT LEAVE CUSTOMERS PAYING 00:38:06.517 --> 00:38:08.119 align:middle line:85% position:50% size:55% AND WHAT DO CALIFORNIA 00:38:08.185 --> 00:38:11.389 align:middle line:85% position:50% size:60% CUSTOMERS GET IN RETURN? 00:38:11.455 --> 00:38:12.456 align:middle line:85% position:50% size:60% TOMORROW WE ARE GOING TO 00:38:12.523 --> 00:38:13.491 align:middle line:85% position:50% size:78% CONTINUE THIS CONVERSATION WITH 00:38:13.557 --> 00:38:14.558 align:middle line:85% position:50% size:60% A JOINT HEARING WITH THE 00:38:14.625 --> 00:38:16.127 align:middle line:85% position:50% size:70% INSURANCE COMMITTEE. BUT FOR 00:38:16.193 --> 00:38:18.963 align:middle line:85% position:50% size:70% NOW, I THINK WE ARE READY TO 00:38:19.030 --> 00:38:22.166 align:middle line:85% position:50% size:78% BEGIN. WE WILL WELCOME THE CPUC 00:38:22.233 --> 00:38:24.335 align:middle line:85% position:50% size:75% EXECUTIVE DIRECTOR TO TESTIFY. 00:38:24.402 --> 00:38:27.905 align:middle line:85% position:50% size:80% WHO WILL KICK US OFF? THANK YOU. 00:38:27.972 --> 00:38:29.373 align:middle line:85% position:50% size:75% EXECUTIVE DIRECTOR FOR JOINING 00:38:29.440 --> 00:38:51.028 align:middle line:85% position:50% size:73% US. GREAT. WE WILL LOAD THOSE 00:38:51.095 --> 00:38:54.899 align:middle line:85% position:50% size:68% SLIDES UP. AND THE FLOOR IS 00:38:54.965 --> 00:39:09.680 align:middle line:85% position:50% size:55% YOURS. THANK YOU. GOOD 00:39:09.747 --> 00:39:10.815 align:middle line:85% position:50% size:75% AFTERNOON, CHAIR PETRIE-NORRIS 00:39:10.881 --> 00:39:12.216 align:middle line:85% position:50% size:70% AND HONORABLE MEMBERS OF THE 00:39:12.283 --> 00:39:14.318 align:middle line:85% position:50% size:70% COMMITTEE. THANK YOU FOR THE 00:39:14.385 --> 00:39:15.519 align:middle line:85% position:50% size:68% OPPORTUNITY TO JOIN YOU. MY 00:39:15.586 --> 00:39:16.987 align:middle line:85% position:50% size:68% NAME IS LUẬN TESFAYE, AND I 00:39:17.054 --> 00:39:18.556 align:middle line:85% position:50% size:78% SERVE AS THE EXECUTIVE DIRECTOR 00:39:18.622 --> 00:39:19.757 align:middle line:85% position:50% size:63% FOR THE CALIFORNIA PUBLIC 00:39:19.824 --> 00:39:21.959 align:middle line:85% position:50% size:75% UTILITIES COMMISSION. TODAY, I 00:39:22.026 --> 00:39:24.462 align:middle line:85% position:50% size:78% WILL PRESENT AN OVERVIEW OF HOW 00:39:24.528 --> 00:39:26.297 align:middle line:85% position:50% size:70% WILDFIRE RISKS ARE AFFECTING 00:39:26.363 --> 00:39:28.365 align:middle line:85% position:50% size:65% THE FINANCIAL STABILITY OF 00:39:28.432 --> 00:39:29.467 align:middle line:85% position:50% size:73% CALIFORNIA UTILITIES AND WHAT 00:39:29.533 --> 00:39:32.536 align:middle line:85% position:50% size:65% THAT MEANS FOR ELECTRICITY 00:39:32.603 --> 00:39:40.211 align:middle line:85% position:50% size:68% CUSTOMERS. SO THIS SLIDE IS 00:39:40.277 --> 00:39:41.712 align:middle line:85% position:50% size:70% GOING TO BE A ROADMAP OF THE 00:39:41.779 --> 00:39:43.214 align:middle line:85% position:50% size:78% PRESENTATION FOR TODAY. SO I'LL 00:39:43.280 --> 00:39:44.982 align:middle line:85% position:50% size:73% BE STARTING WITH CALIFORNIA'S 00:39:45.049 --> 00:39:46.784 align:middle line:85% position:50% size:63% CLEAN ENERGY INVESTMENTS, 00:39:46.851 --> 00:39:48.586 align:middle line:85% position:50% size:78% GROWING WILDFIRE RISKS, AND HOW 00:39:48.652 --> 00:39:50.387 align:middle line:85% position:50% size:68% THE COSTS OF PREVENTING AND 00:39:50.454 --> 00:39:52.189 align:middle line:85% position:50% size:68% RESPONDING TO WILDFIRES ARE 00:39:52.256 --> 00:39:54.291 align:middle line:85% position:50% size:78% AFFECTING ELECTRICITY BILLS FOR 00:39:54.358 --> 00:39:57.228 align:middle line:85% position:50% size:68% CUSTOMERS. I'LL FOLLOW THAT 00:39:57.294 --> 00:39:59.363 align:middle line:85% position:50% size:75% WITH HOW THE WILDFIRE FUND WAS 00:39:59.430 --> 00:40:01.532 align:middle line:85% position:50% size:73% ESTABLISHED UNDER AB 1054 AND 00:40:01.599 --> 00:40:04.135 align:middle line:85% position:50% size:73% SENATE BILL 254 AND HELP, AND 00:40:04.201 --> 00:40:05.536 align:middle line:85% position:50% size:68% HOW THAT HELPS UTILITIES TO 00:40:05.603 --> 00:40:07.138 align:middle line:85% position:50% size:70% MANAGE WILDFIRE LIABILITIES, 00:40:07.204 --> 00:40:08.706 align:middle line:85% position:50% size:73% AND WHY CONCERNS REMAIN ABOUT 00:40:08.773 --> 00:40:10.574 align:middle line:85% position:50% size:73% WHETHER THOSE PROTECTIONS ARE 00:40:10.641 --> 00:40:11.976 align:middle line:85% position:50% size:53% SUFFICIENT TO PROTECT 00:40:12.042 --> 00:40:14.211 align:middle line:85% position:50% size:78% CALIFORNIA RATEPAYERS. AND THEN 00:40:14.278 --> 00:40:15.913 align:middle line:85% position:50% size:55% HOW WILDFIRE RISKS ARE 00:40:15.980 --> 00:40:16.981 align:middle line:85% position:50% size:60% AFFECTING UTILITY CREDIT 00:40:17.047 --> 00:40:18.916 align:middle line:85% position:50% size:73% RATINGS, BORROWING COSTS, AND 00:40:18.983 --> 00:40:20.584 align:middle line:85% position:50% size:70% THE ABILITY TO INVEST IN THE 00:40:20.651 --> 00:40:22.453 align:middle line:85% position:50% size:68% ELECTRIC GRID THAT WE NEED. 00:40:22.520 --> 00:40:24.255 align:middle line:85% position:50% size:68% I'LL ALSO TOUCH ON WHY SOME 00:40:24.321 --> 00:40:25.656 align:middle line:85% position:50% size:70% UTILITIES ARE FACING GREATER 00:40:25.723 --> 00:40:26.791 align:middle line:85% position:50% size:73% FINANCIAL RISKS, BECAUSE THEY 00:40:26.857 --> 00:40:28.626 align:middle line:85% position:50% size:63% DO NOT HAVE ACCESS TO THE 00:40:28.692 --> 00:40:31.428 align:middle line:85% position:50% size:68% WILDFIRE FUND. AND FINALLY, 00:40:31.495 --> 00:40:32.830 align:middle line:85% position:50% size:70% I'LL ALSO BE DISCUSSING WHAT 00:40:32.897 --> 00:40:33.697 align:middle line:85% position:50% size:73% ADDITIONAL REFORMS ARE NEEDED 00:40:33.764 --> 00:40:35.366 align:middle line:85% position:50% size:60% TO PROTECT CUSTOMERS AND 00:40:35.432 --> 00:40:36.801 align:middle line:85% position:50% size:65% MAINTAIN UTILITY FINANCIAL 00:40:36.867 --> 00:40:37.868 align:middle line:85% position:50% size:60% STABILITY TO SUPPORT THE 00:40:37.935 --> 00:40:45.509 align:middle line:85% position:50% size:75% CALIFORNIA ECONOMY. SO NEXT, I 00:40:45.576 --> 00:40:47.278 align:middle line:85% position:50% size:78% WANTED TO DO SOME TABLE SETTING 00:40:47.344 --> 00:40:48.846 align:middle line:85% position:50% size:75% ON THE CALIFORNIA CLEAN ENERGY 00:40:48.913 --> 00:40:50.948 align:middle line:85% position:50% size:73% GOALS AND WHERE WE ARE TODAY, 00:40:51.015 --> 00:40:52.249 align:middle line:85% position:50% size:65% AND REALLY LOOK AT THE BIG 00:40:52.316 --> 00:40:53.751 align:middle line:85% position:50% size:73% PICTURE. CALIFORNIA IS ASKING 00:40:53.818 --> 00:40:55.953 align:middle line:85% position:50% size:78% ITS ELECTRICITY GRID TO DO MORE 00:40:56.020 --> 00:40:59.223 align:middle line:85% position:50% size:78% AND MORE THAN EVER. IT'S ASKING 00:40:59.290 --> 00:41:01.692 align:middle line:85% position:50% size:78% US TO POWER MORE ELECTRIC CARS, 00:41:01.759 --> 00:41:03.761 align:middle line:85% position:50% size:78% HOMES, BUSINESSES, AND TO SERVE 00:41:03.828 --> 00:41:05.996 align:middle line:85% position:50% size:78% NEW INDUSTRIES LIKE LARGE LOADS 00:41:06.063 --> 00:41:08.098 align:middle line:85% position:50% size:70% FROM DATA CENTERS. THE STATE 00:41:08.165 --> 00:41:09.567 align:middle line:85% position:50% size:73% PROJECTS THAT THE ELECTRICITY 00:41:09.633 --> 00:41:12.436 align:middle line:85% position:50% size:78% WE NEED WILL GROW BY ABOUT 20GW 00:41:12.503 --> 00:41:15.773 align:middle line:85% position:50% size:65% BY 2040. AND LOOKING BACK, 00:41:15.840 --> 00:41:17.541 align:middle line:85% position:50% size:78% WE'VE ALREADY BEEN BUILDING OUT 00:41:17.608 --> 00:41:18.943 align:middle line:85% position:50% size:63% AND BUILDING FASTER EVERY 00:41:19.009 --> 00:41:20.744 align:middle line:85% position:50% size:58% SINGLE YEAR. AND I KNOW 00:41:20.811 --> 00:41:21.512 align:middle line:85% position:50% size:53% ESPECIALLY YOU, CHAIR 00:41:21.579 --> 00:41:22.546 align:middle line:85% position:50% size:68% PETRIE-NORRIS HAVE HEARD ME 00:41:22.613 --> 00:41:23.781 align:middle line:85% position:50% size:65% PRESENT ON THAT TOPIC MANY 00:41:23.848 --> 00:41:25.382 align:middle line:85% position:50% size:60% TIMES, BUT ALWAYS A GOOD 00:41:25.449 --> 00:41:26.584 align:middle line:85% position:50% size:75% OPPORTUNITY TO SHARE THAT, YOU 00:41:26.650 --> 00:41:28.152 align:middle line:85% position:50% size:70% KNOW, IN THIS TOP CHART HERE 00:41:28.219 --> 00:41:29.753 align:middle line:85% position:50% size:68% REALLY SHOWS WHAT'S COMING, 00:41:29.820 --> 00:41:32.289 align:middle line:85% position:50% size:78% WHAT'S COME ONLINE. SINCE 2020, 00:41:32.356 --> 00:41:34.792 align:middle line:85% position:50% size:78% CALIFORNIA HAS ADDED ABOUT 38GW 00:41:34.859 --> 00:41:37.661 align:middle line:85% position:50% size:73% OF NEW RESOURCES TO THE GRID. 00:41:37.728 --> 00:41:38.762 align:middle line:85% position:50% size:65% OVER THE LAST THREE YEARS, 00:41:38.829 --> 00:41:42.333 align:middle line:85% position:50% size:75% WE'VE ADDED NEARLY 7000MW EACH 00:41:42.399 --> 00:41:44.134 align:middle line:85% position:50% size:65% YEAR, AND ANOTHER 18GW ARE 00:41:44.201 --> 00:41:46.370 align:middle line:85% position:50% size:73% ALREADY UNDER CONTRACT AND IN 00:41:46.437 --> 00:41:47.872 align:middle line:85% position:50% size:78% DEVELOPMENT TO BE COMING ONLINE 00:41:47.938 --> 00:41:49.940 align:middle line:85% position:50% size:68% BY 2030. SO THIS ISN'T JUST 00:41:50.007 --> 00:41:51.375 align:middle line:85% position:50% size:70% WHAT WE HOPE TO HAVE ONLINE. 00:41:51.442 --> 00:41:52.877 align:middle line:85% position:50% size:75% THIS IS WHAT'S COME ONLINE AND 00:41:52.943 --> 00:41:55.279 align:middle line:85% position:50% size:75% WE KNOW IS UNDER CONSTRUCTION. 00:41:55.346 --> 00:41:57.414 align:middle line:85% position:50% size:75% AND SO LOOKING AHEAD AT THE AT 00:41:57.481 --> 00:41:59.617 align:middle line:85% position:50% size:75% THE OTHER CHART, IT SHOWS THAT 00:41:59.683 --> 00:42:01.051 align:middle line:85% position:50% size:73% WHAT IT WILL TAKE TO MEET OUR 00:42:01.118 --> 00:42:02.987 align:middle line:85% position:50% size:70% CLIMATE GOALS AND REACH 100% 00:42:03.053 --> 00:42:06.123 align:middle line:85% position:50% size:78% CLEAN ELECTRICITY BY 2045 UNDER 00:42:06.190 --> 00:42:08.425 align:middle line:85% position:50% size:70% SENATE BILL 100, THAT'S MORE 00:42:08.492 --> 00:42:11.161 align:middle line:85% position:50% size:68% THAN 130GW OF NEW CAPACITY, 00:42:11.228 --> 00:42:12.663 align:middle line:85% position:50% size:68% PLUS THE HIGH VOLTAGE POWER 00:42:12.730 --> 00:42:14.031 align:middle line:85% position:50% size:55% LINES TO DELIVER IT TO 00:42:14.098 --> 00:42:15.900 align:middle line:85% position:50% size:68% CALIFORNIA CUSTOMERS. THESE 00:42:15.966 --> 00:42:18.035 align:middle line:85% position:50% size:73% GRID INVESTMENTS ARE CRITICAL 00:42:18.102 --> 00:42:20.471 align:middle line:85% position:50% size:75% FOR THREE REASONS RELIABILITY. 00:42:20.537 --> 00:42:22.273 align:middle line:85% position:50% size:78% AND BY THAT, I MEAN KEEPING OUR 00:42:22.339 --> 00:42:23.707 align:middle line:85% position:50% size:70% LIGHTS ON, ESPECIALLY ON THE 00:42:23.774 --> 00:42:28.078 align:middle line:85% position:50% size:80% HOTTEST DAYS DURING PEAK DEMAND. 00:42:28.145 --> 00:42:29.580 align:middle line:85% position:50% size:73% NEXT, OUR CLEAN ENERGY GOALS, 00:42:29.647 --> 00:42:30.915 align:middle line:85% position:50% size:68% STAYING ON TRACK TO REPLACE 00:42:30.981 --> 00:42:32.750 align:middle line:85% position:50% size:73% FOSSIL FUELS WITH CLEAN POWER 00:42:32.816 --> 00:42:35.286 align:middle line:85% position:50% size:68% FOR CUSTOMERS, AND THEN THE 00:42:35.352 --> 00:42:36.654 align:middle line:85% position:50% size:75% GREATER GROWTH OF OUR ECONOMY. 00:42:36.720 --> 00:42:38.122 align:middle line:85% position:50% size:65% SO SERVING NEW DEMAND FROM 00:42:38.188 --> 00:42:40.324 align:middle line:85% position:50% size:73% ELECTRIC VEHICLES AND TRUCKS, 00:42:40.391 --> 00:42:42.126 align:middle line:85% position:50% size:75% NEW HOUSING, THAT'S ESSENTIAL, 00:42:42.192 --> 00:42:43.894 align:middle line:85% position:50% size:55% AS WELL AS THE GROWING 00:42:43.961 --> 00:42:46.797 align:middle line:85% position:50% size:73% CALIFORNIA ECONOMY. UNDER THE 00:42:46.864 --> 00:42:48.265 align:middle line:85% position:50% size:70% CURRENT MODEL, UTILITIES PAY 00:42:48.332 --> 00:42:50.401 align:middle line:85% position:50% size:73% FOR THESE PROJECTS UPFRONT BY 00:42:50.467 --> 00:42:52.536 align:middle line:85% position:50% size:75% BORROWING MONEY ON THE CAPITAL 00:42:52.603 --> 00:42:54.338 align:middle line:85% position:50% size:73% MARKETS AND RAISING THAT FROM 00:42:54.405 --> 00:42:55.873 align:middle line:85% position:50% size:73% INVESTORS. CUSTOMERS THEN PAY 00:42:55.940 --> 00:42:57.608 align:middle line:85% position:50% size:68% IT BACK IN THEIR BILLS OVER 00:42:57.675 --> 00:43:00.778 align:middle line:85% position:50% size:70% MANY YEARS. SO WHEN IT COSTS 00:43:00.844 --> 00:43:02.613 align:middle line:85% position:50% size:75% UTILITIES MORE TO BORROW, THAT 00:43:02.680 --> 00:43:06.216 align:middle line:85% position:50% size:78% COST IS ON CUSTOMERS TO. TODAY, 00:43:06.283 --> 00:43:07.351 align:middle line:85% position:50% size:75% I'LL PRESENT INFORMATION ABOUT 00:43:07.418 --> 00:43:09.286 align:middle line:85% position:50% size:78% HOW WILDFIRE RISKS SPECIFICALLY 00:43:09.353 --> 00:43:10.888 align:middle line:85% position:50% size:60% ARE AFFECTING CALIFORNIA 00:43:10.955 --> 00:43:12.356 align:middle line:85% position:50% size:73% UTILITY, FINANCIAL STABILITY, 00:43:12.423 --> 00:43:15.159 align:middle line:85% position:50% size:58% AND WHAT THAT MEANS FOR 00:43:15.225 --> 00:43:21.332 align:middle line:85% position:50% size:63% ELECTRICITY CUSTOMERS. SO 00:43:21.398 --> 00:43:23.067 align:middle line:85% position:50% size:70% WILDFIRES IN CALIFORNIA HAVE 00:43:23.133 --> 00:43:25.269 align:middle line:85% position:50% size:60% CHANGED. HOTTER WEATHER, 00:43:25.336 --> 00:43:27.805 align:middle line:85% position:50% size:78% STRONGER WINDS, MORE DRY BRUSH, 00:43:27.871 --> 00:43:30.007 align:middle line:85% position:50% size:68% AND MORE HOMES IN HIGH RISK 00:43:30.074 --> 00:43:31.475 align:middle line:85% position:50% size:63% AREAS MEAN THAT FIRES ARE 00:43:31.542 --> 00:43:32.710 align:middle line:85% position:50% size:68% BIGGER AND MORE DESTRUCTIVE 00:43:32.776 --> 00:43:35.245 align:middle line:85% position:50% size:70% THAN EVER. SO ON THIS SLIDE, 00:43:35.312 --> 00:43:36.814 align:middle line:85% position:50% size:68% WE'RE SHOWING HOW 14 OF THE 00:43:36.880 --> 00:43:38.649 align:middle line:85% position:50% size:68% STATE'S 20 MOST DESTRUCTIVE 00:43:38.716 --> 00:43:40.050 align:middle line:85% position:50% size:70% WILDFIRES HAVE OCCURRED JUST 00:43:40.117 --> 00:43:43.153 align:middle line:85% position:50% size:80% SINCE 2017 ALONE. IN PARTICULAR, 00:43:43.220 --> 00:43:47.491 align:middle line:85% position:50% size:70% THE JANUARY 2025 LOS ANGELES 00:43:47.558 --> 00:43:49.326 align:middle line:85% position:50% size:63% WILDFIRES ALONE CAUSED AN 00:43:49.393 --> 00:43:51.061 align:middle line:85% position:50% size:58% ESTIMATED 53 BILLION IN 00:43:51.128 --> 00:43:54.331 align:middle line:85% position:50% size:60% ECONOMIC LOSSES. UTILITY 00:43:54.398 --> 00:43:55.399 align:middle line:85% position:50% size:65% EQUIPMENT HISTORICALLY HAS 00:43:55.466 --> 00:43:57.601 align:middle line:85% position:50% size:70% ACCOUNTED FOR SLIGHTLY UNDER 00:43:57.668 --> 00:44:00.137 align:middle line:85% position:50% size:75% 10% OF WILDFIRE IGNITIONS, AND 00:44:00.204 --> 00:44:01.472 align:middle line:85% position:50% size:70% WITH THE MITIGATION OVER THE 00:44:01.538 --> 00:44:03.674 align:middle line:85% position:50% size:70% PAST YEARS, IT'S NOW DOWN TO 00:44:03.741 --> 00:44:05.876 align:middle line:85% position:50% size:70% APPROXIMATELY 6% OF WILDFIRE 00:44:05.943 --> 00:44:07.311 align:middle line:85% position:50% size:68% IGNITIONS. SO WE ARE SEEING 00:44:07.378 --> 00:44:10.114 align:middle line:85% position:50% size:65% PROGRESS. MOST UTILITY AND 00:44:10.180 --> 00:44:11.281 align:middle line:85% position:50% size:63% NON-UTILITY IGNITIONS ARE 00:44:11.348 --> 00:44:12.983 align:middle line:85% position:50% size:70% SUPPRESSED WITH LITTLE OR NO 00:44:13.050 --> 00:44:15.886 align:middle line:85% position:50% size:55% DAMAGE. BUT IN TODAY'S 00:44:15.953 --> 00:44:17.721 align:middle line:85% position:50% size:78% CONDITIONS, A FEW CAN GROW INTO 00:44:17.788 --> 00:44:19.556 align:middle line:85% position:50% size:68% DISASTROUS, COSTING TENS OF 00:44:19.623 --> 00:44:22.526 align:middle line:85% position:50% size:78% BILLIONS OF DOLLARS GIVEN THEIR 00:44:22.593 --> 00:44:24.561 align:middle line:85% position:50% size:55% MANY THOUSAND MILES OF 00:44:24.628 --> 00:44:25.796 align:middle line:85% position:50% size:70% ELECTRICITY LINES, UTILITIES 00:44:25.863 --> 00:44:27.765 align:middle line:85% position:50% size:73% ARE UNLIKELY IN ANY NEAR TERM 00:44:27.831 --> 00:44:29.666 align:middle line:85% position:50% size:73% TO REDUCE THE RISK OF UTILITY 00:44:29.733 --> 00:44:32.102 align:middle line:85% position:50% size:70% IGNITIONS TO ZERO, AND GIVEN 00:44:32.169 --> 00:44:33.937 align:middle line:85% position:50% size:73% EXISTING LIABILITY LAWS. THAT 00:44:34.004 --> 00:44:36.073 align:middle line:85% position:50% size:75% MEANS THAT EVEN WITH CONTINUED 00:44:36.140 --> 00:44:38.242 align:middle line:85% position:50% size:70% WILDFIRE MITIGATION EFFORTS, 00:44:38.308 --> 00:44:39.676 align:middle line:85% position:50% size:60% UTILITY CUSTOMERS REMAIN 00:44:39.743 --> 00:44:41.845 align:middle line:85% position:50% size:78% EXPOSED TO POTENTIALLY ENORMOUS 00:44:41.912 --> 00:44:50.454 align:middle line:85% position:50% size:65% WILDFIRE COSTS. SO ON THIS 00:44:50.521 --> 00:44:52.656 align:middle line:85% position:50% size:73% SLIDE, WE'LL BE TALKING ABOUT 00:44:52.723 --> 00:44:54.458 align:middle line:85% position:50% size:68% AUTHORIZED COSTS AND REALLY 00:44:54.525 --> 00:44:55.859 align:middle line:85% position:50% size:50% LOOKING AT HOW THOSE 00:44:55.926 --> 00:44:57.327 align:middle line:85% position:50% size:73% EXPENDITURES ARE REVIEWED AND 00:44:57.394 --> 00:44:58.362 align:middle line:85% position:50% size:65% APPROVED BY THE CALIFORNIA 00:44:58.429 --> 00:45:02.066 align:middle line:85% position:50% size:78% PUBLIC UTILITIES COMMISSION. IN 00:45:02.132 --> 00:45:03.434 align:middle line:85% position:50% size:63% ADDITION TO THAT, WE HAVE 00:45:03.500 --> 00:45:04.601 align:middle line:85% position:50% size:78% REVENUE REQUIREMENTS, WHICH ARE 00:45:04.668 --> 00:45:06.203 align:middle line:85% position:50% size:73% THE AMOUNTS THE UTILITIES ARE 00:45:06.270 --> 00:45:07.371 align:middle line:85% position:50% size:65% AUTHORIZED TO RECOVER FROM 00:45:07.438 --> 00:45:08.806 align:middle line:85% position:50% size:75% CUSTOMERS THROUGH THEIR RATES. 00:45:08.872 --> 00:45:09.907 align:middle line:85% position:50% size:75% SO THERE'S A SLIGHT DIFFERENCE 00:45:09.973 --> 00:45:11.041 align:middle line:85% position:50% size:58% THERE. AND I THINK IT'S 00:45:11.108 --> 00:45:12.810 align:middle line:85% position:50% size:68% IMPORTANT TO HIGHLIGHT HERE 00:45:12.876 --> 00:45:14.978 align:middle line:85% position:50% size:60% SOME COSTS, PARTICULARLY 00:45:15.045 --> 00:45:15.979 align:middle line:85% position:50% size:50% PARTICULARLY CAPITAL 00:45:16.046 --> 00:45:17.014 align:middle line:85% position:50% size:63% INVESTMENTS. SO THERE I'M 00:45:17.081 --> 00:45:19.249 align:middle line:85% position:50% size:70% TALKING ABOUT UNDERGROUNDING 00:45:19.316 --> 00:45:20.284 align:middle line:85% position:50% size:68% ELECTRICITY POLES THINGS OF 00:45:20.350 --> 00:45:22.152 align:middle line:85% position:50% size:75% THAT NATURE ARE RECOVERED OVER 00:45:22.219 --> 00:45:23.687 align:middle line:85% position:50% size:78% MANY YEARS OR OVER WHAT WE CALL 00:45:23.754 --> 00:45:27.558 align:middle line:85% position:50% size:73% THE USEFUL LIFE OF THE ASSET. 00:45:27.624 --> 00:45:29.026 align:middle line:85% position:50% size:73% REVENUE REQUIREMENTS MAY ALSO 00:45:29.093 --> 00:45:30.461 align:middle line:85% position:50% size:73% INCLUDE THE RECOVERY OF COSTS 00:45:30.527 --> 00:45:32.296 align:middle line:85% position:50% size:78% THAT ARE AUTHORIZED IN PREVIOUS 00:45:32.362 --> 00:45:34.098 align:middle line:85% position:50% size:68% YEARS, WHICH IS WHY THE TWO 00:45:34.164 --> 00:45:35.099 align:middle line:85% position:50% size:65% FIGURES DO NOT NECESSARILY 00:45:35.165 --> 00:45:37.734 align:middle line:85% position:50% size:73% MATCH IN A GIVEN PERIOD. NOW, 00:45:37.801 --> 00:45:39.103 align:middle line:85% position:50% size:68% SEPARATE FROM CAPITAL COSTS 00:45:39.169 --> 00:45:40.871 align:middle line:85% position:50% size:75% THAT I SAID ARE RECOVERED OVER 00:45:40.938 --> 00:45:42.673 align:middle line:85% position:50% size:75% TIME, WE HAVE OTHER COSTS LIKE 00:45:42.739 --> 00:45:43.807 align:middle line:85% position:50% size:78% OPERATIONS AND MAINTENANCE, FOR 00:45:43.874 --> 00:45:45.609 align:middle line:85% position:50% size:78% EXAMPLE, VEGETATION MANAGEMENT, 00:45:45.676 --> 00:45:48.011 align:middle line:85% position:50% size:55% LABOR COSTS. THOSE ARE 00:45:48.078 --> 00:45:49.513 align:middle line:85% position:50% size:75% COLLECTED FROM CUSTOMERS EVERY 00:45:49.580 --> 00:45:51.315 align:middle line:85% position:50% size:75% YEAR. AND SO IT'S IMPORTANT TO 00:45:51.381 --> 00:46:00.657 align:middle line:85% position:50% size:70% REALIZE THAT DISTINCTION. SO 00:46:00.724 --> 00:46:02.092 align:middle line:85% position:50% size:70% WILDFIRE COSTS ARE ALREADY A 00:46:02.159 --> 00:46:03.227 align:middle line:85% position:50% size:48% SIGNIFICANT PART OF 00:46:03.293 --> 00:46:04.995 align:middle line:85% position:50% size:78% CALIFORNIA'S ELECTRICITY BILLS. 00:46:05.062 --> 00:46:06.396 align:middle line:85% position:50% size:65% AND SO THAT'S IMPORTANT TO 00:46:06.463 --> 00:46:07.898 align:middle line:85% position:50% size:78% UNDERSTAND WHERE WE'RE STARTING 00:46:07.965 --> 00:46:09.633 align:middle line:85% position:50% size:70% TODAY. CUSTOMERS ARE ALREADY 00:46:09.700 --> 00:46:14.037 align:middle line:85% position:50% size:63% PAYING FOR THIS. SO THESE 00:46:14.104 --> 00:46:15.472 align:middle line:85% position:50% size:50% AUTHORIZED COSTS ARE 00:46:15.539 --> 00:46:16.473 align:middle line:85% position:50% size:75% EXPENDITURES THAT ARE APPROVED 00:46:16.540 --> 00:46:17.574 align:middle line:85% position:50% size:55% AND SCRUTINIZED BY THE 00:46:17.641 --> 00:46:19.076 align:middle line:85% position:50% size:68% CALIFORNIA PUBLIC UTILITIES 00:46:19.143 --> 00:46:20.844 align:middle line:85% position:50% size:78% COMMISSION, AS WELL AS OUR MANY 00:46:20.911 --> 00:46:21.678 align:middle line:85% position:50% size:75% STAKEHOLDERS THAT ARE INVOLVED 00:46:21.745 --> 00:46:26.250 align:middle line:85% position:50% size:73% IN OUR PROCESS. AS THIS TABLE 00:46:26.316 --> 00:46:29.119 align:middle line:85% position:50% size:75% SHOWS, FROM 2020 THROUGH 2026, 00:46:29.186 --> 00:46:31.355 align:middle line:85% position:50% size:48% THE CPUC AUTHORIZED 00:46:31.421 --> 00:46:33.824 align:middle line:85% position:50% size:68% APPROXIMATELY 54 BILLION IN 00:46:33.891 --> 00:46:35.926 align:middle line:85% position:50% size:75% WILDFIRE RELATED COSTS FOR THE 00:46:35.993 --> 00:46:37.761 align:middle line:85% position:50% size:65% THREE LARGE INVESTOR OWNED 00:46:37.828 --> 00:46:39.229 align:middle line:85% position:50% size:63% UTILITIES PACIFIC GAS AND 00:46:39.296 --> 00:46:40.297 align:middle line:85% position:50% size:73% ELECTRIC, SOUTHERN CALIFORNIA 00:46:40.364 --> 00:46:42.032 align:middle line:85% position:50% size:70% EDISON AND SAN DIEGO GAS AND 00:46:42.099 --> 00:46:43.967 align:middle line:85% position:50% size:75% ELECTRIC, AS REQUIRED IN STATE 00:46:44.034 --> 00:46:46.069 align:middle line:85% position:50% size:73% LAW BY SENATE BILL 901, WHICH 00:46:46.136 --> 00:46:48.906 align:middle line:85% position:50% size:75% WAS LEGISLATION FROM 2019 THAT 00:46:48.972 --> 00:46:51.108 align:middle line:85% position:50% size:68% PUSHED FOR COSTLY AND RAPID 00:46:51.175 --> 00:46:52.509 align:middle line:85% position:50% size:68% WILDFIRE MITIGATION FOR THE 00:46:52.576 --> 00:46:55.479 align:middle line:85% position:50% size:63% ELECTRIC SYSTEM. ABOUT 39 00:46:55.546 --> 00:46:57.181 align:middle line:85% position:50% size:60% BILLION WAS FOR WILDFIRE 00:46:57.247 --> 00:46:59.082 align:middle line:85% position:50% size:63% MITIGATION, AND NEARLY 15 00:46:59.149 --> 00:47:00.751 align:middle line:85% position:50% size:60% BILLION WAS FOR WILDFIRE 00:47:00.817 --> 00:47:03.687 align:middle line:85% position:50% size:70% LIABILITIES. THESE COSTS ARE 00:47:03.754 --> 00:47:05.522 align:middle line:85% position:50% size:73% ASSOCIATED WITH APPROXIMATELY 00:47:05.589 --> 00:47:06.890 align:middle line:85% position:50% size:60% 37 BILLION IN AUTHORIZED 00:47:06.957 --> 00:47:09.493 align:middle line:85% position:50% size:73% REVENUE REQUIREMENTS. THE TWO 00:47:09.560 --> 00:47:10.527 align:middle line:85% position:50% size:73% FIGURES MEASURE TWO DIFFERENT 00:47:10.594 --> 00:47:11.728 align:middle line:85% position:50% size:75% THINGS, AS I SAID EARLIER, AND 00:47:11.795 --> 00:47:13.030 align:middle line:85% position:50% size:70% SHOULDN'T BE ADDED TOGETHER. 00:47:13.096 --> 00:47:14.831 align:middle line:85% position:50% size:65% BUT BECAUSE SOME COSTS ARE 00:47:14.898 --> 00:47:16.667 align:middle line:85% position:50% size:78% RECOVERED, AS I SAID, OVER MANY 00:47:16.733 --> 00:47:18.468 align:middle line:85% position:50% size:58% YEARS, THEY'LL CONTINUE 00:47:18.535 --> 00:47:20.604 align:middle line:85% position:50% size:73% AFFECTING CUSTOMER BILLS WELL 00:47:20.671 --> 00:47:24.308 align:middle line:85% position:50% size:75% INTO THE FUTURE. AS OF JANUARY 00:47:24.374 --> 00:47:26.009 align:middle line:85% position:50% size:75% 2026, WILDFIRE COSTS ACCOUNTED 00:47:26.076 --> 00:47:29.913 align:middle line:85% position:50% size:65% FOR 10 TO 14% OF A TYPICAL 00:47:29.980 --> 00:47:37.187 align:middle line:85% position:50% size:73% RESIDENTIAL ELECTRIC BILL. SO 00:47:37.254 --> 00:47:39.022 align:middle line:85% position:50% size:78% NEXT, I WANT TO DIVE INTO A BIT 00:47:39.089 --> 00:47:41.892 align:middle line:85% position:50% size:78% OF THE CREDIT RATING LANDSCAPE. 00:47:41.959 --> 00:47:42.926 align:middle line:85% position:50% size:68% WILDFIRE RISKS HAVE ALREADY 00:47:42.993 --> 00:47:44.528 align:middle line:85% position:50% size:73% WEAKENED CALIFORNIA UTILITIES 00:47:44.595 --> 00:47:46.563 align:middle line:85% position:50% size:73% CREDIT RATINGS. AS THIS SLIDE 00:47:46.630 --> 00:47:47.931 align:middle line:85% position:50% size:70% SHOWS, SEVERAL UTILITIES ARE 00:47:47.998 --> 00:47:50.834 align:middle line:85% position:50% size:70% NOW NEAR OR BELOW INVESTMENT 00:47:50.901 --> 00:47:53.403 align:middle line:85% position:50% size:75% GRADE. A CREDIT RATING WORKS A 00:47:53.470 --> 00:47:55.172 align:middle line:85% position:50% size:65% LOT LIKE A PERSONAL CREDIT 00:47:55.239 --> 00:47:57.674 align:middle line:85% position:50% size:78% SCORE. THE LOWER THE SCORE, THE 00:47:57.741 --> 00:48:00.544 align:middle line:85% position:50% size:78% MORE IT COSTS TO BORROW BELOW A 00:48:00.611 --> 00:48:02.012 align:middle line:85% position:50% size:75% CERTAIN LINE CALLED INVESTMENT 00:48:02.079 --> 00:48:03.447 align:middle line:85% position:50% size:73% GRADE. AS YOU CAN SEE ON THIS 00:48:03.513 --> 00:48:05.983 align:middle line:85% position:50% size:78% SLIDE, BORROWING GETS MUCH MORE 00:48:06.049 --> 00:48:07.784 align:middle line:85% position:50% size:60% EXPENSIVE AND SOME LARGE 00:48:07.851 --> 00:48:09.953 align:middle line:85% position:50% size:70% INVESTORS CAN'T GET MONEY AT 00:48:10.020 --> 00:48:12.823 align:middle line:85% position:50% size:78% ALL. SOUTHERN CALIFORNIA EDISON 00:48:12.889 --> 00:48:15.025 align:middle line:85% position:50% size:78% IS RATED TRIPLE B MINUS BY S&P, 00:48:15.092 --> 00:48:16.760 align:middle line:85% position:50% size:70% JUST ONE DOWNGRADE AWAY FROM 00:48:16.827 --> 00:48:18.895 align:middle line:85% position:50% size:75% FALLING BELOW INVESTMENT GRADE 00:48:18.962 --> 00:48:20.397 align:middle line:85% position:50% size:65% PG, AND E IS ALREADY BELOW 00:48:20.464 --> 00:48:21.765 align:middle line:85% position:50% size:65% INVESTMENT GRADE UNDER S&P 00:48:21.832 --> 00:48:23.567 align:middle line:85% position:50% size:55% RATING SCALE, AND THIS 00:48:23.634 --> 00:48:26.436 align:middle line:85% position:50% size:75% TRANSLATES TO ADDITIONAL COSTS 00:48:26.503 --> 00:48:33.677 align:middle line:85% position:50% size:58% FOR CUSTOMERS. AND THAT 00:48:33.744 --> 00:48:35.078 align:middle line:85% position:50% size:68% ADDITIONAL COST IS REALLY A 00:48:35.145 --> 00:48:36.613 align:middle line:85% position:50% size:78% CYCLE. AS I DEMONSTRATE ON THIS 00:48:36.680 --> 00:48:39.116 align:middle line:85% position:50% size:58% SLIDE, UNCAPPED UTILITY 00:48:39.182 --> 00:48:41.652 align:middle line:85% position:50% size:73% LIABILITY OF A WILDFIRE EVENT 00:48:41.718 --> 00:48:44.154 align:middle line:85% position:50% size:73% OR RISK OF ONE EVEN ALSO PUTS 00:48:44.221 --> 00:48:45.589 align:middle line:85% position:50% size:68% UTILITIES AT RISK OF CREDIT 00:48:45.656 --> 00:48:47.758 align:middle line:85% position:50% size:63% RATING DOWNGRADES. CREDIT 00:48:47.824 --> 00:48:49.126 align:middle line:85% position:50% size:70% RATING DOWNGRADES NEGATIVELY 00:48:49.192 --> 00:48:51.328 align:middle line:85% position:50% size:75% IMPACT RATEPAYERS BECAUSE THEY 00:48:51.395 --> 00:48:52.729 align:middle line:85% position:50% size:65% INCREASE UTILITY BORROWING 00:48:52.796 --> 00:48:53.830 align:middle line:85% position:50% size:55% COSTS THAT ARE LEGALLY 00:48:53.897 --> 00:48:56.366 align:middle line:85% position:50% size:70% COLLECTED ON CUSTOMER BILLS. 00:48:56.433 --> 00:48:58.135 align:middle line:85% position:50% size:70% THESE HIGHER FINANCING COSTS 00:48:58.201 --> 00:48:59.970 align:middle line:85% position:50% size:60% ALSO CONSTRAIN ACCESS TO 00:49:00.037 --> 00:49:01.405 align:middle line:85% position:50% size:75% CAPITAL AND MAKE IT HARDER FOR 00:49:01.471 --> 00:49:02.873 align:middle line:85% position:50% size:68% UTILITIES TO FUND IMPORTANT 00:49:02.939 --> 00:49:03.940 align:middle line:85% position:50% size:75% PROJECTS, LIKE THE ONES THAT I 00:49:04.007 --> 00:49:05.642 align:middle line:85% position:50% size:73% TALKED ABOUT AT THE BEGINNING 00:49:05.709 --> 00:49:08.211 align:middle line:85% position:50% size:75% OF THE PRESENTATION. THIS ALSO 00:49:08.278 --> 00:49:10.047 align:middle line:85% position:50% size:60% INCLUDES WILDFIRE SAFETY 00:49:10.113 --> 00:49:11.315 align:middle line:85% position:50% size:70% IMPROVEMENTS, GRID UPGRADES, 00:49:11.381 --> 00:49:13.250 align:middle line:85% position:50% size:70% AND INFRASTRUCTURE NEEDED TO 00:49:13.317 --> 00:49:14.718 align:middle line:85% position:50% size:63% SERVE GROWING ELECTRICITY 00:49:14.785 --> 00:49:16.219 align:middle line:85% position:50% size:63% DEMAND AND TO SUPPORT THE 00:49:16.286 --> 00:49:19.056 align:middle line:85% position:50% size:78% GROWTH IN CALIFORNIA'S ECONOMY. 00:49:19.122 --> 00:49:20.857 align:middle line:85% position:50% size:73% THIS ALSO INCREASED COSTS FOR 00:49:20.924 --> 00:49:24.027 align:middle line:85% position:50% size:75% UTILITY ENERGY CONTRACTS. THIS 00:49:24.094 --> 00:49:25.562 align:middle line:85% position:50% size:78% EVENTUALLY LEADS, AS YOU SEE ON 00:49:25.629 --> 00:49:27.431 align:middle line:85% position:50% size:80% THIS SLIDE, TO LIQUIDITY STRAIN, 00:49:27.497 --> 00:49:29.132 align:middle line:85% position:50% size:55% ALL OF WHICH ADDS COST 00:49:29.199 --> 00:49:30.867 align:middle line:85% position:50% size:70% PRESSURES TO EVERY ASPECT OF 00:49:30.934 --> 00:49:33.804 align:middle line:85% position:50% size:75% UTILITY BUSINESS. AND FINALLY, 00:49:33.870 --> 00:49:35.238 align:middle line:85% position:50% size:73% INVESTOR CONFIDENCE IS ERODED 00:49:35.305 --> 00:49:36.673 align:middle line:85% position:50% size:75% WHEN DOWNGRADES TRIGGER MARKET 00:49:36.740 --> 00:49:38.875 align:middle line:85% position:50% size:75% EXIT BY UTILITIES, STOCK PRICE 00:49:38.942 --> 00:49:40.677 align:middle line:85% position:50% size:58% DECLINE AND STOCK PRICE 00:49:40.744 --> 00:49:42.846 align:middle line:85% position:50% size:68% VOLATILITY. SO FOR EXAMPLE, 00:49:42.913 --> 00:49:43.880 align:middle line:85% position:50% size:55% WITH RESPECT TO HIGHER 00:49:43.947 --> 00:49:45.349 align:middle line:85% position:50% size:63% BORROWING COSTS, PG AND E 00:49:45.415 --> 00:49:46.817 align:middle line:85% position:50% size:78% ESTIMATES THAT WILDFIRE RELATED 00:49:46.883 --> 00:49:48.885 align:middle line:85% position:50% size:65% BORROWING COST PREMIUMS ON 00:49:48.952 --> 00:49:51.755 align:middle line:85% position:50% size:70% BONDS ISSUED SINCE 2017 WILL 00:49:51.822 --> 00:49:54.791 align:middle line:85% position:50% size:70% RESULT IN APPROXIMATELY $4.1 00:49:54.858 --> 00:49:57.194 align:middle line:85% position:50% size:75% BILLION IN ADDITIONAL INTEREST 00:49:57.260 --> 00:49:58.295 align:middle line:85% position:50% size:65% EXPENSES OVER THE LIVES OF 00:49:58.362 --> 00:50:00.163 align:middle line:85% position:50% size:78% THOSE BONDS. THESE EXPENSES ARE 00:50:00.230 --> 00:50:02.265 align:middle line:85% position:50% size:75% LEGALLY REQUIRED TO BE PAID BY 00:50:02.332 --> 00:50:04.034 align:middle line:85% position:50% size:80% CALIFORNIA RATEPAYERS EVERY DAY. 00:50:04.101 --> 00:50:05.869 align:middle line:85% position:50% size:63% CUSTOMERS, SO MAINTAINING 00:50:05.936 --> 00:50:07.604 align:middle line:85% position:50% size:75% UTILITY FINANCIAL STABILITY IS 00:50:07.671 --> 00:50:09.106 align:middle line:85% position:50% size:73% IMPORTANT NOT ONLY FOR PAYING 00:50:09.172 --> 00:50:11.208 align:middle line:85% position:50% size:73% WILDFIRE CLAIMS, BUT ALSO FOR 00:50:11.274 --> 00:50:12.676 align:middle line:85% position:50% size:68% KEEPING THE ELECTRIC SYSTEM 00:50:12.743 --> 00:50:21.017 align:middle line:85% position:50% size:68% RELIABLE AND AFFORDABLE. SO 00:50:21.084 --> 00:50:23.854 align:middle line:85% position:50% size:68% FOLLOWING THE 2017 AND 2018 00:50:23.920 --> 00:50:25.622 align:middle line:85% position:50% size:65% WILDFIRES AND THE PG AND E 00:50:25.689 --> 00:50:27.090 align:middle line:85% position:50% size:68% BANKRUPTCY, THE LEGISLATURE 00:50:27.157 --> 00:50:29.226 align:middle line:85% position:50% size:63% ACTED WITH AB 1054, WHICH 00:50:29.292 --> 00:50:32.095 align:middle line:85% position:50% size:75% ESTABLISHED THE WILDFIRE FUND. 00:50:32.162 --> 00:50:34.131 align:middle line:85% position:50% size:78% THE FUND IS A POT OF MONEY THAT 00:50:34.197 --> 00:50:35.132 align:middle line:85% position:50% size:58% HELPS UTILITIES PAY FOR 00:50:35.198 --> 00:50:37.567 align:middle line:85% position:50% size:73% ELIGIBLE WILDFIRE CLAIMS FROM 00:50:37.634 --> 00:50:39.369 align:middle line:85% position:50% size:73% UTILITY CAUSED WILDFIRES, AND 00:50:39.436 --> 00:50:40.837 align:middle line:85% position:50% size:68% TO AVOID ANOTHER BANKRUPTCY 00:50:40.904 --> 00:50:44.007 align:middle line:85% position:50% size:70% LIKE JAZZ IN 2019, IT'S PAID 00:50:44.074 --> 00:50:46.209 align:middle line:85% position:50% size:75% FOR IN A 5050 SPLIT, HALF FROM 00:50:46.276 --> 00:50:47.978 align:middle line:85% position:50% size:73% UTILITY SHAREHOLDERS AND HALF 00:50:48.044 --> 00:50:50.881 align:middle line:85% position:50% size:78% FROM RATEPAYERS. ONLY THE THREE 00:50:50.947 --> 00:50:52.616 align:middle line:85% position:50% size:75% LARGE INVESTOR OWNED UTILITIES 00:50:52.682 --> 00:50:53.784 align:middle line:85% position:50% size:63% PACIFIC GAS AND ELECTRIC, 00:50:53.850 --> 00:50:55.152 align:middle line:85% position:50% size:75% SOUTHERN CALIFORNIA EDISON AND 00:50:55.218 --> 00:50:56.620 align:middle line:85% position:50% size:65% SAN DIEGO GAS AND ELECTRIC 00:50:56.686 --> 00:50:58.422 align:middle line:85% position:50% size:73% CONTRIBUTE TO IT AND CAN DRAW 00:50:58.488 --> 00:51:00.090 align:middle line:85% position:50% size:75% FROM IT. AND AS WE KNOW, THERE 00:51:00.157 --> 00:51:01.224 align:middle line:85% position:50% size:75% ARE MANY MORE UTILITIES IN THE 00:51:01.291 --> 00:51:02.692 align:middle line:85% position:50% size:78% STATE OF CALIFORNIA THAT CANNOT 00:51:02.759 --> 00:51:06.263 align:middle line:85% position:50% size:75% DRAW ON THE WILDFIRE FUND. THE 00:51:06.329 --> 00:51:08.131 align:middle line:85% position:50% size:75% WILDFIRE FUND WAS AN ESSENTIAL 00:51:08.198 --> 00:51:09.533 align:middle line:85% position:50% size:65% PIECE TO ALLOW PG AND E TO 00:51:09.599 --> 00:51:11.768 align:middle line:85% position:50% size:68% EMERGE FROM BANKRUPTCY. THE 00:51:11.835 --> 00:51:12.836 align:middle line:85% position:50% size:68% CREDIT RATING AGENCIES HAVE 00:51:12.903 --> 00:51:14.538 align:middle line:85% position:50% size:75% ALSO BEEN CLEAR THAT CONTINUED 00:51:14.604 --> 00:51:16.473 align:middle line:85% position:50% size:78% ACCESS TO A WILDFIRE FUND, WITH 00:51:16.540 --> 00:51:18.575 align:middle line:85% position:50% size:80% MORE THAN $10 BILLION AVAILABLE, 00:51:18.642 --> 00:51:20.510 align:middle line:85% position:50% size:70% IS CRITICAL FOR THE INVESTOR 00:51:20.577 --> 00:51:21.778 align:middle line:85% position:50% size:73% OWNED UTILITIES TO KEEP THEIR 00:51:21.845 --> 00:51:23.246 align:middle line:85% position:50% size:78% CURRENT CREDIT RATING AND AVOID 00:51:23.313 --> 00:51:25.782 align:middle line:85% position:50% size:58% FURTHER DOWNGRADES. THE 00:51:25.849 --> 00:51:27.918 align:middle line:85% position:50% size:78% ORIGINAL FUND HAD APPROXIMATELY 00:51:27.984 --> 00:51:29.352 align:middle line:85% position:50% size:68% 21 BILLION IN INITIAL CLAIM 00:51:29.419 --> 00:51:31.488 align:middle line:85% position:50% size:70% PAYING CAPACITY, BUT IT ONLY 00:51:31.555 --> 00:51:33.690 align:middle line:85% position:50% size:70% COVERS ELIGIBLE UTILITY COST 00:51:33.757 --> 00:51:35.492 align:middle line:85% position:50% size:65% FIRES THAT OCCURRED BEFORE 00:51:35.559 --> 00:51:39.429 align:middle line:85% position:50% size:75% SEPTEMBER OF 2025. THREE FIRES 00:51:39.496 --> 00:51:42.299 align:middle line:85% position:50% size:70% KINCADE, DIXIE AND EATON ARE 00:51:42.365 --> 00:51:43.733 align:middle line:85% position:50% size:70% EXPECTED TO DRAW ON IT, WITH 00:51:43.800 --> 00:51:45.268 align:middle line:85% position:50% size:68% EATON ALONE EXPECTED TO USE 00:51:45.335 --> 00:51:47.671 align:middle line:85% position:50% size:50% MUCH OF WHAT'S LEFT. 00:51:47.737 --> 00:51:48.805 align:middle line:85% position:50% size:63% IMPORTANTLY, UNTIL BETTER 00:51:48.872 --> 00:51:49.973 align:middle line:85% position:50% size:73% ESTIMATES OF EATON ARE KNOWN, 00:51:50.040 --> 00:51:51.842 align:middle line:85% position:50% size:75% WE WILL NOT KNOW THE AMOUNT OF 00:51:51.908 --> 00:51:53.443 align:middle line:85% position:50% size:70% FUNDING AVAILABLE FOR FUTURE 00:51:53.510 --> 00:51:54.845 align:middle line:85% position:50% size:50% FIRES, CREATING MORE 00:51:54.911 --> 00:51:57.514 align:middle line:85% position:50% size:73% UNCERTAINTY FOR LATER UTILITY 00:51:57.581 --> 00:51:59.616 align:middle line:85% position:50% size:68% COST FIRES. SENATE BILL 254 00:51:59.683 --> 00:52:01.518 align:middle line:85% position:50% size:75% MORE RECENTLY SET UP A PROCESS 00:52:01.585 --> 00:52:03.520 align:middle line:85% position:50% size:65% TO FUND A NEW CONTINUATION 00:52:03.587 --> 00:52:06.056 align:middle line:85% position:50% size:73% ACCOUNT OF ABOUT $18 BILLION, 00:52:06.122 --> 00:52:08.592 align:middle line:85% position:50% size:75% BUT AGAIN WITH A SPLIT OF 5050 00:52:08.658 --> 00:52:09.993 align:middle line:85% position:50% size:60% BETWEEN SHAREHOLDERS AND 00:52:10.060 --> 00:52:11.261 align:middle line:85% position:50% size:73% RATEPAYERS, AND AGAIN LIMITED 00:52:11.328 --> 00:52:12.762 align:middle line:85% position:50% size:68% TO THE LARGE THREE INVESTOR 00:52:12.829 --> 00:52:16.867 align:middle line:85% position:50% size:75% OWNED UTILITIES ONLY. BUT THAT 00:52:16.933 --> 00:52:17.934 align:middle line:85% position:50% size:65% MONEY ISN'T SITTING IN THE 00:52:18.001 --> 00:52:19.769 align:middle line:85% position:50% size:63% ACCOUNT TODAY. THE FUND'S 00:52:19.836 --> 00:52:20.837 align:middle line:85% position:50% size:65% ADMINISTRATOR FIRST HAS TO 00:52:20.904 --> 00:52:22.672 align:middle line:85% position:50% size:70% DETERMINE THAT THE FUNDS ARE 00:52:22.739 --> 00:52:24.040 align:middle line:85% position:50% size:73% NEEDED. AND SO UNTIL WE GET A 00:52:24.107 --> 00:52:25.108 align:middle line:85% position:50% size:70% BETTER ESTIMATE ON THE EATON 00:52:25.175 --> 00:52:27.310 align:middle line:85% position:50% size:70% FIRE, WE WILL NOT KNOW. THEN 00:52:27.377 --> 00:52:29.145 align:middle line:85% position:50% size:75% THE CONTRIBUTIONS COME IN OVER 00:52:29.212 --> 00:52:32.048 align:middle line:85% position:50% size:78% TIME ON A SET SCHEDULE. UTILITY 00:52:32.115 --> 00:52:33.850 align:middle line:85% position:50% size:78% CONTRIBUTIONS DON'T BEGIN UNTIL 00:52:33.917 --> 00:52:34.951 align:middle line:85% position:50% size:48% 2029, AND RATEPAYER 00:52:35.018 --> 00:52:37.120 align:middle line:85% position:50% size:78% CONTRIBUTIONS DON'T BEGIN UNTIL 00:52:37.187 --> 00:52:39.256 align:middle line:85% position:50% size:68% 2036. THAT MEANS IF A MAJOR 00:52:39.322 --> 00:52:40.690 align:middle line:85% position:50% size:63% UTILITY COST FIRE HAPPENS 00:52:40.757 --> 00:52:42.225 align:middle line:85% position:50% size:68% BEFORE THE ACCOUNT HAS BEEN 00:52:42.292 --> 00:52:44.594 align:middle line:85% position:50% size:65% BUILT UP, THE MONEY TO PAY 00:52:44.661 --> 00:52:45.996 align:middle line:85% position:50% size:58% CLAIMS WOULD HAVE TO BE 00:52:46.062 --> 00:52:47.898 align:middle line:85% position:50% size:73% BORROWED AGAINST THOSE FUTURE 00:52:47.964 --> 00:52:50.066 align:middle line:85% position:50% size:73% CONTRIBUTIONS. BORROWING ADDS 00:52:50.133 --> 00:52:51.434 align:middle line:85% position:50% size:78% COSTS AND MAY LIMIT HOW MUCH IS 00:52:51.501 --> 00:52:53.069 align:middle line:85% position:50% size:73% ACTUALLY AVAILABLE TO PAY THE 00:52:53.136 --> 00:52:55.405 align:middle line:85% position:50% size:70% CLAIMS OF VICTIMS. GIVEN HOW 00:52:55.472 --> 00:52:57.574 align:middle line:85% position:50% size:75% LARGE WILDFIRE DAMAGES CAN BE, 00:52:57.641 --> 00:52:59.242 align:middle line:85% position:50% size:73% THE CURRENT FUNDING FRAMEWORK 00:52:59.309 --> 00:53:01.578 align:middle line:85% position:50% size:73% IS NOT ENOUGH TO COVER FUTURE 00:53:01.645 --> 00:53:03.313 align:middle line:85% position:50% size:65% CATASTROPHIC UTILITY COST. 00:53:03.380 --> 00:53:04.781 align:middle line:85% position:50% size:60% WILDFIRES. ANOTHER MAJOR 00:53:04.848 --> 00:53:06.249 align:middle line:85% position:50% size:68% UTILITY COST FIRE WILL VERY 00:53:06.316 --> 00:53:08.018 align:middle line:85% position:50% size:60% LIKELY CAUSE MORE CREDIT 00:53:08.084 --> 00:53:10.186 align:middle line:85% position:50% size:58% DOWNGRADES AND POSSIBLY 00:53:10.253 --> 00:53:14.157 align:middle line:85% position:50% size:73% BANKRUPTCY. NOW, I TOUCHED ON 00:53:14.224 --> 00:53:16.326 align:middle line:85% position:50% size:75% THIS AT A BRIEF LEVEL EARLIER, 00:53:16.393 --> 00:53:17.527 align:middle line:85% position:50% size:60% BUT I DO WANT TO FURTHER 00:53:17.594 --> 00:53:19.896 align:middle line:85% position:50% size:80% EMPHASIZE IT WITH ITS OWN SLIDE. 00:53:19.963 --> 00:53:21.698 align:middle line:85% position:50% size:73% ONLY THE LARGE INVESTOR OWNED 00:53:21.765 --> 00:53:23.867 align:middle line:85% position:50% size:73% UTILITIES PG AND E, SAN DIEGO 00:53:23.934 --> 00:53:24.935 align:middle line:85% position:50% size:73% GAS AND ELECTRIC AND SOUTHERN 00:53:25.001 --> 00:53:26.102 align:middle line:85% position:50% size:73% CALIFORNIA EDISON HAVE ACCESS 00:53:26.169 --> 00:53:28.572 align:middle line:85% position:50% size:78% TO THE WILDFIRE FUND. THE OTHER 00:53:28.638 --> 00:53:30.407 align:middle line:85% position:50% size:73% INVESTOR OWNED UTILITIES LIKE 00:53:30.473 --> 00:53:33.209 align:middle line:85% position:50% size:80% LIBERTY UTILITIES OR PACIFICORP, 00:53:33.276 --> 00:53:34.611 align:middle line:85% position:50% size:55% AND THE PUBLICLY OWNED 00:53:34.678 --> 00:53:36.813 align:middle line:85% position:50% size:60% UTILITIES LIKE LAUP, LOS 00:53:36.880 --> 00:53:38.014 align:middle line:85% position:50% size:78% ANGELES DEPARTMENT OF WATER AND 00:53:38.081 --> 00:53:40.016 align:middle line:85% position:50% size:70% POWER HAVE NO ACCESS TO THIS 00:53:40.083 --> 00:53:42.185 align:middle line:85% position:50% size:68% FUND. INSTEAD, THEY RELY ON 00:53:42.252 --> 00:53:44.020 align:middle line:85% position:50% size:75% THEIR OWN INSURANCE LIQUIDITY, 00:53:44.087 --> 00:53:46.222 align:middle line:85% position:50% size:75% BORROWING CAPACITY, AS WELL AS 00:53:46.289 --> 00:53:47.290 align:middle line:85% position:50% size:78% THE RATE SETTING AUTHORITY THAT 00:53:47.357 --> 00:53:48.692 align:middle line:85% position:50% size:70% THE PUBLICLY OWNED UTILITIES 00:53:48.758 --> 00:53:50.126 align:middle line:85% position:50% size:75% HAVE OVER THEMSELVES TO MANAGE 00:53:50.193 --> 00:53:51.895 align:middle line:85% position:50% size:65% WILDFIRE RELATED FINANCIAL 00:53:51.962 --> 00:53:53.430 align:middle line:85% position:50% size:63% EXPOSURE. THESE TOOLS ARE 00:53:53.496 --> 00:53:55.098 align:middle line:85% position:50% size:75% LIKELY INADEQUATE IN THE EVENT 00:53:55.165 --> 00:54:00.971 align:middle line:85% position:50% size:78% OF A MAJOR WILDFIRE. SO THIS IS 00:54:01.037 --> 00:54:03.106 align:middle line:85% position:50% size:63% MY FINAL SLIDE. REFORM IS 00:54:03.173 --> 00:54:05.642 align:middle line:85% position:50% size:78% NECESSARY AND IT IS URGENT. THE 00:54:05.709 --> 00:54:07.077 align:middle line:85% position:50% size:73% OPTIONS WE HAVE TODAY MAY NOT 00:54:07.143 --> 00:54:09.245 align:middle line:85% position:50% size:68% BE THERE AFTER THE NEXT BIG 00:54:09.312 --> 00:54:12.215 align:middle line:85% position:50% size:78% FIRE. ABSENT STRUCTURAL REFORM, 00:54:12.282 --> 00:54:13.950 align:middle line:85% position:50% size:58% THE STATUS QUO WILL SEE 00:54:14.017 --> 00:54:15.685 align:middle line:85% position:50% size:58% CONTINUED INCREASED AND 00:54:15.752 --> 00:54:17.554 align:middle line:85% position:50% size:68% UNAFFORDABLE ELECTRIC BILLS 00:54:17.621 --> 00:54:18.955 align:middle line:85% position:50% size:70% CONSTRAINED ELECTRIC SERVICE 00:54:19.022 --> 00:54:20.757 align:middle line:85% position:50% size:73% DUE TO CREDIT DOWNGRADES. AND 00:54:20.824 --> 00:54:22.325 align:middle line:85% position:50% size:75% WHEN I SAY ELECTRIC SERVICE, I 00:54:22.392 --> 00:54:23.560 align:middle line:85% position:50% size:75% MEAN ALL OF THIS HOUSING WE'RE 00:54:23.627 --> 00:54:25.362 align:middle line:85% position:50% size:73% TRYING TO BRING ONLINE OR NEW 00:54:25.428 --> 00:54:26.496 align:middle line:85% position:50% size:55% ELECTRICITY GENERATION 00:54:26.563 --> 00:54:29.733 align:middle line:85% position:50% size:78% RESOURCES AND LIMITED ACCESS TO 00:54:29.799 --> 00:54:31.534 align:middle line:85% position:50% size:60% CAPITAL THAT HAMPERS THE 00:54:31.601 --> 00:54:34.437 align:middle line:85% position:50% size:68% OVERALL CALIFORNIA ECONOMY. 00:54:34.504 --> 00:54:36.272 align:middle line:85% position:50% size:78% WITHOUT REFORM, EVEN THE STATUS 00:54:36.339 --> 00:54:39.476 align:middle line:85% position:50% size:75% QUO IS NOT SUSTAINABLE. FUTURE 00:54:39.542 --> 00:54:40.677 align:middle line:85% position:50% size:70% FIRES ARE LIKELY TO BANKRUPT 00:54:40.744 --> 00:54:42.679 align:middle line:85% position:50% size:75% AND FURTHER DOWNGRADE ELECTRIC 00:54:42.746 --> 00:54:44.514 align:middle line:85% position:50% size:73% UTILITIES, FURTHER INCREASING 00:54:44.581 --> 00:54:45.515 align:middle line:85% position:50% size:63% RATES AND THREATENING THE 00:54:45.582 --> 00:54:47.017 align:middle line:85% position:50% size:80% STATE'S ABILITY TO PROVIDE SAFE, 00:54:47.083 --> 00:54:49.185 align:middle line:85% position:50% size:65% RELIABLE ELECTRIC SERVICE. 00:54:49.252 --> 00:54:50.587 align:middle line:85% position:50% size:65% THANK YOU, AND I'M OPEN TO 00:54:50.654 --> 00:54:51.755 align:middle line:85% position:50% size:63% TAKING QUESTIONS FROM THE 00:54:51.821 --> 00:54:54.924 align:middle line:85% position:50% size:80% COMMITTEE. WONDERFUL. THANK YOU, 00:54:54.991 --> 00:54:57.527 align:middle line:85% position:50% size:70% EXECUTIVE DIRECTOR. TESTIFY. 00:54:57.594 --> 00:54:59.663 align:middle line:85% position:50% size:70% QUESTIONS FROM THE COMMITTEE 00:54:59.729 --> 00:55:01.097 align:middle line:85% position:50% size:68% FOR THE EXECUTIVE DIRECTOR. 00:55:01.164 --> 00:55:03.700 align:middle line:85% position:50% size:73% ASSEMBLY MEMBER. PEPIN. WELL, 00:55:03.767 --> 00:55:05.035 align:middle line:85% position:50% size:63% THANK YOU SO MUCH FOR THE 00:55:05.101 --> 00:55:06.336 align:middle line:85% position:50% size:73% PRESENTATION. I DO APPRECIATE 00:55:06.403 --> 00:55:10.473 align:middle line:85% position:50% size:75% IT. I HAD A QUICK QUESTION. SO 00:55:10.540 --> 00:55:14.077 align:middle line:85% position:50% size:75% THE BACKGROUNDER NOTES THAT IT 00:55:14.144 --> 00:55:17.681 align:middle line:85% position:50% size:73% IS THAT ABOUT EACH PERCENTAGE 00:55:17.747 --> 00:55:19.149 align:middle line:85% position:50% size:68% POINT ADDED TO FINANCING IS 00:55:19.215 --> 00:55:23.787 align:middle line:85% position:50% size:78% ABOUT $5 ON THE MONTHLY BILL OF 00:55:23.853 --> 00:55:25.955 align:middle line:85% position:50% size:73% RESIDENTIAL FOLKS. AND I JUST 00:55:26.022 --> 00:55:27.357 align:middle line:85% position:50% size:63% WANT TO BELIEVE THAT THAT 00:55:27.424 --> 00:55:28.792 align:middle line:85% position:50% size:75% RELATIONSHIP ALSO WORKS IN THE 00:55:28.858 --> 00:55:30.193 align:middle line:85% position:50% size:70% INVERSE. AND IT IS THAT EACH 00:55:30.260 --> 00:55:32.762 align:middle line:85% position:50% size:78% PERCENTAGE POINT THAT'S REMOVED 00:55:32.829 --> 00:55:34.931 align:middle line:85% position:50% size:63% FROM A LIABILITY, GETTING 00:55:34.998 --> 00:55:36.700 align:middle line:85% position:50% size:70% FINANCING COSTS THAT THAT IS 00:55:36.766 --> 00:55:37.867 align:middle line:85% position:50% size:78% CREDITED. AND IS THERE A WAY OF 00:55:37.934 --> 00:55:39.703 align:middle line:85% position:50% size:75% ENSURING THAT ANY SAVINGS FROM 00:55:39.769 --> 00:55:41.304 align:middle line:85% position:50% size:65% LOWER COST DEBT WILL REACH 00:55:41.371 --> 00:55:43.606 align:middle line:85% position:50% size:60% CONSUMERS? SO RIGHT NOW, 00:55:43.673 --> 00:55:44.741 align:middle line:85% position:50% size:75% THROUGH ASSEMBLY BILL, I THINK 00:55:44.808 --> 00:55:47.177 align:middle line:85% position:50% size:73% IT WAS TWO, SIX, SIX, SIX, WE 00:55:47.243 --> 00:55:48.945 align:middle line:85% position:50% size:73% WERE ABLE TO CREATE A TEAM TO 00:55:49.012 --> 00:55:51.147 align:middle line:85% position:50% size:73% BE ABLE TO TRACK THOSE COSTS, 00:55:51.214 --> 00:55:52.515 align:middle line:85% position:50% size:60% AS WELL AS THOSE SAVINGS 00:55:52.582 --> 00:55:54.317 align:middle line:85% position:50% size:70% RELATED TO RETURN ON EQUITY. 00:55:54.384 --> 00:55:56.252 align:middle line:85% position:50% size:68% AND SO THE PUBLIC UTILITIES 00:55:56.319 --> 00:55:58.021 align:middle line:85% position:50% size:58% COMMISSION OPENED A NEW 00:55:58.088 --> 00:55:59.355 align:middle line:85% position:50% size:78% PROCEEDING THIS YEAR CALLED THE 00:55:59.422 --> 00:56:00.857 align:middle line:85% position:50% size:65% RATE CASE PLAN PROCEEDING, 00:56:00.924 --> 00:56:01.958 align:middle line:85% position:50% size:60% WHERE WE ARE GOING TO BE 00:56:02.025 --> 00:56:03.426 align:middle line:85% position:50% size:78% WORKING ON IMPLEMENTING THAT IN 00:56:03.493 --> 00:56:05.128 align:middle line:85% position:50% size:70% ORDER TO BE ABLE TO TRACK IN 00:56:05.195 --> 00:56:07.263 align:middle line:85% position:50% size:73% BOTH DIRECTIONS. RIGHT NOW WE 00:56:07.330 --> 00:56:08.398 align:middle line:85% position:50% size:78% ARE GATHERING THE DATA. WE HAVE 00:56:08.465 --> 00:56:10.300 align:middle line:85% position:50% size:75% IT ON OUR WEBSITE, BUT WE WANT 00:56:10.366 --> 00:56:12.235 align:middle line:85% position:50% size:58% TO LOOK AT IT IN A MORE 00:56:12.302 --> 00:56:13.436 align:middle line:85% position:50% size:70% GRANULAR FASHION. SO THE PUC 00:56:13.503 --> 00:56:14.871 align:middle line:85% position:50% size:73% OPENED THAT NEW RULEMAKING TO 00:56:14.938 --> 00:56:16.306 align:middle line:85% position:50% size:50% BE ABLE TO WORK WITH 00:56:16.372 --> 00:56:17.540 align:middle line:85% position:50% size:73% STAKEHOLDERS ON HOW TO CREATE 00:56:17.607 --> 00:56:19.242 align:middle line:85% position:50% size:53% THAT TRANSPARENCY AND 00:56:19.309 --> 00:56:20.510 align:middle line:85% position:50% size:70% VISIBILITY AND TRACK IT BOTH 00:56:20.577 --> 00:56:25.281 align:middle line:85% position:50% size:70% WAYS. YEAH. ASSEMBLYMEMBER'S 00:56:25.348 --> 00:56:26.783 align:middle line:85% position:50% size:65% THANK YOU, MADAM EXECUTIVE 00:56:26.850 --> 00:56:27.817 align:middle line:85% position:50% size:70% EXECUTIVE DIRECTOR FOR BEING 00:56:27.884 --> 00:56:28.952 align:middle line:85% position:50% size:50% HERE. APPRECIATE THE 00:56:29.018 --> 00:56:30.053 align:middle line:85% position:50% size:73% PRESENTATION AND ALL THE WORK 00:56:30.120 --> 00:56:31.154 align:middle line:85% position:50% size:73% THAT YOU'RE DOING, AS WELL AS 00:56:31.221 --> 00:56:33.890 align:middle line:85% position:50% size:75% YOUR BOARD AND THE COMMISSION. 00:56:33.957 --> 00:56:36.159 align:middle line:85% position:50% size:68% I GUESS MY MY MAIN QUESTION 00:56:36.226 --> 00:56:38.261 align:middle line:85% position:50% size:70% GOES TO SLIDE 11, WHERE, YOU 00:56:38.328 --> 00:56:41.164 align:middle line:85% position:50% size:75% KNOW, REFORM URGENCY IS TALKED 00:56:41.231 --> 00:56:42.966 align:middle line:85% position:50% size:63% ABOUT AND SORT OF THE THE 00:56:43.032 --> 00:56:44.434 align:middle line:85% position:50% size:78% OPTIONS THAT YOU LAY OUT. AND I 00:56:44.501 --> 00:56:46.069 align:middle line:85% position:50% size:73% DON'T THINK ANYONE HERE WOULD 00:56:46.136 --> 00:56:47.203 align:middle line:85% position:50% size:73% DISAGREE THAT WE NEED REFORM. 00:56:47.270 --> 00:56:49.038 align:middle line:85% position:50% size:75% WE NEED TO FIX THE STATUS QUO, 00:56:49.105 --> 00:56:50.106 align:middle line:85% position:50% size:68% WHICH ISN'T WORKING. AND WE 00:56:50.173 --> 00:56:51.574 align:middle line:85% position:50% size:70% NEED TO MAKE SURE THAT WE'RE 00:56:51.641 --> 00:56:54.043 align:middle line:85% position:50% size:55% DELIVERING AFFORDABLE, 00:56:54.110 --> 00:56:57.714 align:middle line:85% position:50% size:73% EFFECTIVE ENERGY THAT IS ALSO 00:56:57.781 --> 00:56:58.715 align:middle line:85% position:50% size:55% PROTECTING PEOPLE FROM 00:56:58.782 --> 00:56:59.883 align:middle line:85% position:50% size:53% WILDFIRES. SO I THINK 00:56:59.949 --> 00:57:01.651 align:middle line:85% position:50% size:70% EVERYONE'S ON THE SAME PAGE. 00:57:01.718 --> 00:57:03.820 align:middle line:85% position:50% size:73% WHAT IS NOT IN YOUR LIST IS A 00:57:03.887 --> 00:57:05.588 align:middle line:85% position:50% size:65% IS A CAP ON LIABILITY. YOU 00:57:05.655 --> 00:57:07.457 align:middle line:85% position:50% size:73% DON'T LIST THAT SPECIFICALLY. 00:57:07.524 --> 00:57:09.559 align:middle line:85% position:50% size:75% AND SO I WANT TO GET, I GUESS, 00:57:09.626 --> 00:57:13.196 align:middle line:85% position:50% size:78% YOUR HONEST OPINION ON WHAT, IF 00:57:13.263 --> 00:57:13.997 align:middle line:85% position:50% size:73% ANYTHING, YOU THINK WE SHOULD 00:57:14.063 --> 00:57:15.665 align:middle line:85% position:50% size:70% BE DOING IN TERMS OF PUSHING 00:57:15.732 --> 00:57:18.568 align:middle line:85% position:50% size:60% FOR CAP ON LIABILITY FOR 00:57:18.635 --> 00:57:21.204 align:middle line:85% position:50% size:78% SHAREHOLDERS OF IOUS. YEAH. SO, 00:57:21.271 --> 00:57:22.705 align:middle line:85% position:50% size:75% YOU KNOW, THAT ISN'T SOMETHING 00:57:22.772 --> 00:57:24.274 align:middle line:85% position:50% size:65% I'M PREPARED TO TALK IN IN 00:57:24.340 --> 00:57:25.508 align:middle line:85% position:50% size:75% DETAIL, BUT I AM HAPPY TO TALK 00:57:25.575 --> 00:57:27.443 align:middle line:85% position:50% size:75% ABOUT IT AT A HIGHER LEVEL AND 00:57:27.510 --> 00:57:29.279 align:middle line:85% position:50% size:70% THE BENEFIT OF WHAT THAT CAP 00:57:29.345 --> 00:57:30.613 align:middle line:85% position:50% size:75% WOULD BE FOR UTILITY CUSTOMERS 00:57:30.680 --> 00:57:32.015 align:middle line:85% position:50% size:73% AND HAVING THAT CAP IN PLACE, 00:57:32.081 --> 00:57:34.784 align:middle line:85% position:50% size:70% IT CREATES MORE CERTAINTY IN 00:57:34.851 --> 00:57:36.586 align:middle line:85% position:50% size:75% THE CAPITAL MARKETS. AND SO AS 00:57:36.653 --> 00:57:37.921 align:middle line:85% position:50% size:73% UTILITIES ARE GOING OUT THERE 00:57:37.987 --> 00:57:39.122 align:middle line:85% position:50% size:68% TO BORROW MONEY, INVESTORS, 00:57:39.189 --> 00:57:40.890 align:middle line:85% position:50% size:55% PENSION FUNDS THAT ARE 00:57:40.957 --> 00:57:42.792 align:middle line:85% position:50% size:80% CONSIDERING INVESTING, YOU KNOW, 00:57:42.859 --> 00:57:44.594 align:middle line:85% position:50% size:78% HAVE CERTAINTY ABOUT, YOU KNOW, 00:57:44.661 --> 00:57:46.362 align:middle line:85% position:50% size:78% WHAT THEIR RETURN WILL POSSIBLY 00:57:46.429 --> 00:57:47.697 align:middle line:85% position:50% size:60% LOOK LIKE WHEN IT'S WELL 00:57:47.764 --> 00:57:50.266 align:middle line:85% position:50% size:75% MANAGED AND BEING ABLE TO FEEL 00:57:50.333 --> 00:57:52.435 align:middle line:85% position:50% size:65% CONFIDENT THAT WE HAVE OUR 00:57:52.502 --> 00:57:53.236 align:middle line:85% position:50% size:60% FIREFIGHTER PENSION, OUR 00:57:53.303 --> 00:57:54.904 align:middle line:85% position:50% size:78% TEACHER PENSION, THAT THESE ARE 00:57:54.971 --> 00:57:55.972 align:middle line:85% position:50% size:75% THE TYPES OF INVESTORS WE WANT 00:57:56.039 --> 00:57:57.207 align:middle line:85% position:50% size:70% THE UTILITIES TO HAVE, THOSE 00:57:57.273 --> 00:57:58.975 align:middle line:85% position:50% size:70% THAT HAVE LIKE THE LONG GAME 00:57:59.042 --> 00:57:59.909 align:middle line:85% position:50% size:70% PERSPECTIVE HERE. BECAUSE AS 00:57:59.976 --> 00:58:01.144 align:middle line:85% position:50% size:68% YOU CAN SEE FROM MY EARLIER 00:58:01.211 --> 00:58:02.946 align:middle line:85% position:50% size:70% SLIDE ABOUT ALL OF THE BUILD 00:58:03.012 --> 00:58:04.080 align:middle line:85% position:50% size:70% OUT THAT WE'RE TRYING TO DO, 00:58:04.147 --> 00:58:06.015 align:middle line:85% position:50% size:75% IT'S A LONG GAME. AND SO THOSE 00:58:06.082 --> 00:58:07.851 align:middle line:85% position:50% size:75% ARE THE KIND OF INVESTORS THAT 00:58:07.917 --> 00:58:09.018 align:middle line:85% position:50% size:58% WE WANT TO HAVE FOR OUR 00:58:09.085 --> 00:58:10.854 align:middle line:85% position:50% size:80% UTILITIES. AND SO BEING ABLE TO, 00:58:10.920 --> 00:58:13.656 align:middle line:85% position:50% size:78% TO SERIOUSLY LOOK INTO A CAP ON 00:58:13.723 --> 00:58:14.757 align:middle line:85% position:50% size:73% LIABILITY IS SOMETHING THAT I 00:58:14.824 --> 00:58:16.893 align:middle line:85% position:50% size:78% THINK IS VERY URGENT, AND BEING 00:58:16.960 --> 00:58:18.728 align:middle line:85% position:50% size:73% ABLE TO HAVE THAT IN PLACE SO 00:58:18.795 --> 00:58:20.897 align:middle line:85% position:50% size:78% THAT WE ARE ABLE TO CREATE THAT 00:58:20.964 --> 00:58:21.965 align:middle line:85% position:50% size:73% STABILITY, THAT UNDERSTANDING 00:58:22.031 --> 00:58:23.700 align:middle line:85% position:50% size:63% OF WHAT THE LEVEL OF RISK 00:58:23.766 --> 00:58:25.201 align:middle line:85% position:50% size:68% EXPOSURE IS, AND BE ABLE TO 00:58:25.268 --> 00:58:26.636 align:middle line:85% position:50% size:58% DRAW THE RIGHT KINDS OF 00:58:26.703 --> 00:58:28.104 align:middle line:85% position:50% size:68% INVESTORS TO THE CALIFORNIA 00:58:28.171 --> 00:58:30.440 align:middle line:85% position:50% size:70% UTILITIES. GREAT. THANK YOU. 00:58:30.506 --> 00:58:34.911 align:middle line:85% position:50% size:75% YEAH. JUST A COUPLE QUESTIONS, 00:58:34.978 --> 00:58:37.146 align:middle line:85% position:50% size:73% AND THANK YOU FOR JOINING US. 00:58:37.213 --> 00:58:38.848 align:middle line:85% position:50% size:60% AS I NOTED IN MY OPENING 00:58:38.915 --> 00:58:40.583 align:middle line:85% position:50% size:60% COMMENTS, WE ARE ALREADY 00:58:40.650 --> 00:58:42.185 align:middle line:85% position:50% size:68% FEELING THE CONSEQUENCES TO 00:58:42.252 --> 00:58:45.088 align:middle line:85% position:50% size:68% SOME EXTENT OF THIS. I LIKE 00:58:45.154 --> 00:58:46.489 align:middle line:85% position:50% size:78% THIS SLIDE. I THINK THIS DOES A 00:58:46.556 --> 00:58:48.258 align:middle line:85% position:50% size:75% GOOD JOB OF EXPLAINING WHETHER 00:58:48.324 --> 00:58:51.160 align:middle line:85% position:50% size:75% WE'RE IN A VIRTUOUS CYCLE OR A 00:58:51.227 --> 00:58:55.064 align:middle line:85% position:50% size:75% DOOM SPIRAL. AND I THINK, AS I 00:58:55.131 --> 00:58:56.366 align:middle line:85% position:50% size:73% NOTED IN MY OPENING COMMENTS, 00:58:56.432 --> 00:58:57.901 align:middle line:85% position:50% size:60% WE'RE ALREADY SEEING THE 00:58:57.967 --> 00:59:00.837 align:middle line:85% position:50% size:68% CONSEQUENCES OF SOME OF THE 00:59:00.904 --> 00:59:03.740 align:middle line:85% position:50% size:78% FALLOUT FROM THIS CYCLE WITH PG 00:59:03.806 --> 00:59:05.541 align:middle line:85% position:50% size:58% AND E'S ANNOUNCEMENT IN 00:59:05.608 --> 00:59:06.609 align:middle line:85% position:50% size:60% SEPTEMBER THAT THEY WERE 00:59:06.676 --> 00:59:08.778 align:middle line:85% position:50% size:78% DEFERRING $2 BILLION IN PLANNED 00:59:08.845 --> 00:59:10.346 align:middle line:85% position:50% size:68% 2027 INVESTMENT. AND WE ARE 00:59:10.413 --> 00:59:11.814 align:middle line:85% position:50% size:60% GOING TO BE HEARING FROM 00:59:11.881 --> 00:59:12.982 align:middle line:85% position:50% size:70% SOMEONE FROM PG AND E IN OUR 00:59:13.049 --> 00:59:14.884 align:middle line:85% position:50% size:70% NEXT PANEL, BUT FROM THE THE 00:59:14.951 --> 00:59:17.720 align:middle line:85% position:50% size:75% CPU SIDE, HOW ARE YOU GOING TO 00:59:17.787 --> 00:59:18.988 align:middle line:85% position:50% size:73% MONITOR WHETHER THAT DEFERRAL 00:59:19.055 --> 00:59:21.324 align:middle line:85% position:50% size:78% IS DELAYING NEW CONNECTIONS AND 00:59:21.391 --> 00:59:23.192 align:middle line:85% position:50% size:60% ENSURE THAT THE IOUS ARE 00:59:23.259 --> 00:59:25.662 align:middle line:85% position:50% size:73% CONTINUING TO MEET SB 410 AND 00:59:25.728 --> 00:59:28.264 align:middle line:85% position:50% size:75% AB 50 OBLIGATIONS? YEAH. SO WE 00:59:28.331 --> 00:59:30.166 align:middle line:85% position:50% size:80% HAVE A COUPLE OF DIFFERENT WAYS. 00:59:30.233 --> 00:59:32.302 align:middle line:85% position:50% size:65% AND SO FOCUSING. I'LL TALK 00:59:32.368 --> 00:59:34.304 align:middle line:85% position:50% size:73% ABOUT SB 410, BUT I ALSO WANT 00:59:34.370 --> 00:59:36.239 align:middle line:85% position:50% size:73% TO TALK, WHICH HAS TO DO WITH 00:59:36.306 --> 00:59:36.873 align:middle line:85% position:50% size:70% CUSTOMERS GETTING ENERGIZED. 00:59:36.940 --> 00:59:39.042 align:middle line:85% position:50% size:63% AND THEN WE'RE ALSO DOING 00:59:39.108 --> 00:59:40.543 align:middle line:85% position:50% size:78% TRACKING ON THE GENERATION SIDE 00:59:40.610 --> 00:59:42.278 align:middle line:85% position:50% size:68% AS WELL. AND SO WITH SENATE 00:59:42.345 --> 00:59:43.713 align:middle line:85% position:50% size:43% BILL 410, WE WORK 00:59:43.780 --> 00:59:44.347 align:middle line:85% position:50% size:60% COLLABORATIVELY WITH THE 00:59:44.414 --> 00:59:45.481 align:middle line:85% position:50% size:73% GOVERNOR'S OFFICE OF BUSINESS 00:59:45.548 --> 00:59:47.283 align:middle line:85% position:50% size:75% AND ECONOMIC DEVELOPMENT TO BE 00:59:47.350 --> 00:59:48.384 align:middle line:85% position:50% size:63% ABLE TO TROUBLESHOOT WITH 00:59:48.451 --> 00:59:49.786 align:middle line:85% position:50% size:73% CUSTOMERS WHO HAVE CHALLENGES 00:59:49.852 --> 00:59:51.220 align:middle line:85% position:50% size:65% WITH GETTING ENERGIZED AND 00:59:51.287 --> 00:59:52.689 align:middle line:85% position:50% size:73% CONNECTED TO THE GRID. I WILL 00:59:52.755 --> 00:59:54.490 align:middle line:85% position:50% size:58% SAY IN RESPONSE TO THAT 00:59:54.557 --> 00:59:55.558 align:middle line:85% position:50% size:68% LEGISLATION, THERE HAS BEEN 00:59:55.625 --> 00:59:56.726 align:middle line:85% position:50% size:78% SIGNIFICANT INVESTMENT THAT HAS 00:59:56.793 --> 00:59:58.428 align:middle line:85% position:50% size:78% BEEN PUT INTO ENERGIZATION. AND 00:59:58.494 --> 01:00:00.563 align:middle line:85% position:50% size:65% SO SOME OF THOSE DRAWN OUT 01:00:00.630 --> 01:00:01.698 align:middle line:85% position:50% size:68% TIMELINES THAT WE SAW A FEW 01:00:01.764 --> 01:00:03.566 align:middle line:85% position:50% size:75% YEARS AGO THAT KIND OF SPURRED 01:00:03.633 --> 01:00:04.901 align:middle line:85% position:50% size:65% THAT LEGISLATION HAVE BEEN 01:00:04.968 --> 01:00:06.703 align:middle line:85% position:50% size:75% LARGELY CLOSED. SO THAT'S VERY 01:00:06.769 --> 01:00:08.571 align:middle line:85% position:50% size:73% POSITIVE. BUT WE WANT TO KEEP 01:00:08.638 --> 01:00:09.572 align:middle line:85% position:50% size:70% IT CLOSED, RIGHT? WE WANT TO 01:00:09.639 --> 01:00:11.374 align:middle line:85% position:50% size:75% KEEP THAT THAT TIMELINE THERE. 01:00:11.441 --> 01:00:13.576 align:middle line:85% position:50% size:73% AND SO RIGHT NOW, THE PUC, IN 01:00:13.643 --> 01:00:15.044 align:middle line:85% position:50% size:73% RESPONSE TO THAT LEGISLATION, 01:00:15.111 --> 01:00:16.779 align:middle line:85% position:50% size:73% WE PUT OUT A DECISION ABOUT A 01:00:16.846 --> 01:00:18.548 align:middle line:85% position:50% size:60% YEAR AND A HALF AGO WITH 01:00:18.614 --> 01:00:20.049 align:middle line:85% position:50% size:68% TRACKING AND REPORTING ON A 01:00:20.116 --> 01:00:21.818 align:middle line:85% position:50% size:55% QUARTERLY BASIS OF THE 01:00:21.884 --> 01:00:23.319 align:middle line:85% position:50% size:75% ENERGIZATION TIMELINES THAT WE 01:00:23.386 --> 01:00:25.088 align:middle line:85% position:50% size:75% SET OUT. WE ALSO HAD TO CREATE 01:00:25.154 --> 01:00:26.122 align:middle line:85% position:50% size:73% ENERGIZATION TIMELINES. SO WE 01:00:26.189 --> 01:00:27.323 align:middle line:85% position:50% size:73% DID THAT AS WELL. BUT WE ALSO 01:00:27.390 --> 01:00:29.125 align:middle line:85% position:50% size:78% HAVE REPORTING ON THAT TIMELINE 01:00:29.192 --> 01:00:30.326 align:middle line:85% position:50% size:68% SO THAT ALL OF THE INVESTOR 01:00:30.393 --> 01:00:31.594 align:middle line:85% position:50% size:73% OWNED UTILITIES ARE REPORTING 01:00:31.661 --> 01:00:33.396 align:middle line:85% position:50% size:73% TO US HOW THEY'RE MEETING ALL 01:00:33.463 --> 01:00:35.164 align:middle line:85% position:50% size:60% OF THOSE MILESTONES WITH 01:00:35.231 --> 01:00:36.632 align:middle line:85% position:50% size:75% CUSTOMERS. AND WE LOOK AT THAT 01:00:36.699 --> 01:00:38.134 align:middle line:85% position:50% size:75% ON A QUARTERLY BASIS, BUT ALSO 01:00:38.201 --> 01:00:40.203 align:middle line:85% position:50% size:75% ON AN AGGREGATED BASIS. AND SO 01:00:40.269 --> 01:00:41.304 align:middle line:85% position:50% size:75% THAT'S A REALLY IMPORTANT PART 01:00:41.371 --> 01:00:43.506 align:middle line:85% position:50% size:53% TO MAKE SURE THAT THE 01:00:43.573 --> 01:00:44.540 align:middle line:85% position:50% size:75% REQUIREMENTS ARE BEING MET AND 01:00:44.607 --> 01:00:45.975 align:middle line:85% position:50% size:60% ALSO SEE WHAT THE LARGER 01:00:46.042 --> 01:00:46.776 align:middle line:85% position:50% size:68% TRAJECTORY IS. AND SO WE'VE 01:00:46.843 --> 01:00:48.878 align:middle line:85% position:50% size:70% SEEN THAT LARGELY CLOSED NOW 01:00:48.945 --> 01:00:50.313 align:middle line:85% position:50% size:73% WITH THIS ANNOUNCEMENT. THERE 01:00:50.380 --> 01:00:52.081 align:middle line:85% position:50% size:70% MIGHT BE CHALLENGES TO THAT. 01:00:52.148 --> 01:00:53.916 align:middle line:85% position:50% size:78% AND WE DO WANT THE UTILITIES TO 01:00:53.983 --> 01:00:55.351 align:middle line:85% position:50% size:70% THINK VERY CLOSELY ABOUT HOW 01:00:55.418 --> 01:00:57.153 align:middle line:85% position:50% size:68% MUCH IT COSTS TO BORROW THE 01:00:57.220 --> 01:00:58.921 align:middle line:85% position:50% size:75% CAPITAL TO GET THESE CUSTOMERS 01:00:58.988 --> 01:00:59.956 align:middle line:85% position:50% size:78% CONNECTED, BECAUSE THAT'S GOING 01:01:00.023 --> 01:01:01.457 align:middle line:85% position:50% size:75% TO END UP ON EVERYONE'S BILLS. 01:01:01.524 --> 01:01:03.159 align:middle line:85% position:50% size:70% NOW, IN ADDITION TO THAT, ON 01:01:03.226 --> 01:01:05.094 align:middle line:85% position:50% size:63% THE GENERATION SIDE, THAT 01:01:05.161 --> 01:01:06.462 align:middle line:85% position:50% size:75% ANNOUNCEMENT ALSO AFFECTED THE 01:01:06.529 --> 01:01:07.930 align:middle line:85% position:50% size:63% GENERATION SIDE AND THOSE 01:01:07.997 --> 01:01:09.932 align:middle line:85% position:50% size:75% CUSTOMERS GETTING CONNECTED TO 01:01:09.999 --> 01:01:11.768 align:middle line:85% position:50% size:70% THE GRID. AND SO WE HAVE OUR 01:01:11.834 --> 01:01:12.735 align:middle line:85% position:50% size:68% TRACKING ENERGY DEVELOPMENT 01:01:12.802 --> 01:01:14.404 align:middle line:85% position:50% size:75% TASK FORCE, WHICH INCLUDES THE 01:01:14.470 --> 01:01:15.838 align:middle line:85% position:50% size:70% PUBLIC UTILITIES COMMISSION, 01:01:15.905 --> 01:01:17.407 align:middle line:85% position:50% size:73% GOVERNOR'S OFFICE, THE OFFICE 01:01:17.473 --> 01:01:19.075 align:middle line:85% position:50% size:60% OF BUSINESS AND ECONOMIC 01:01:19.142 --> 01:01:20.209 align:middle line:85% position:50% size:68% DEVELOPMENT, THE CALIFORNIA 01:01:20.276 --> 01:01:21.411 align:middle line:85% position:50% size:70% INDEPENDENT SYSTEM OPERATOR, 01:01:21.477 --> 01:01:23.046 align:middle line:85% position:50% size:63% AND THE CALIFORNIA ENERGY 01:01:23.112 --> 01:01:24.280 align:middle line:85% position:50% size:75% COMMISSION, WHERE WE REGULARLY 01:01:24.347 --> 01:01:25.615 align:middle line:85% position:50% size:73% MEET WITH DEVELOPERS THAT ARE 01:01:25.681 --> 01:01:27.383 align:middle line:85% position:50% size:70% TRYING TO GET THEIR PROJECTS 01:01:27.450 --> 01:01:28.317 align:middle line:85% position:50% size:73% INTERCONNECTED, UNDERSTANDING 01:01:28.384 --> 01:01:29.519 align:middle line:85% position:50% size:70% WHAT IMPACTS THEY'RE SEEING. 01:01:29.585 --> 01:01:32.822 align:middle line:85% position:50% size:78% AND SO WHEN THEY RECEIVED THOSE 01:01:32.889 --> 01:01:34.624 align:middle line:85% position:50% size:73% NOTICES, THEY PROMPTLY LET US 01:01:34.690 --> 01:01:36.759 align:middle line:85% position:50% size:73% KNOW THAT THEY RECEIVED THOSE 01:01:36.826 --> 01:01:37.827 align:middle line:85% position:50% size:55% NOTICES. AND SO WE ARE 01:01:37.894 --> 01:01:38.961 align:middle line:85% position:50% size:78% CONNECTED WITH THEM IN ORDER TO 01:01:39.028 --> 01:01:40.897 align:middle line:85% position:50% size:75% BE ABLE TO TRACK THAT DATA AND 01:01:40.963 --> 01:01:42.899 align:middle line:85% position:50% size:78% SEE HOW THEY'RE BEING IMPACTED. 01:01:42.965 --> 01:01:44.033 align:middle line:85% position:50% size:73% AND THEN IN ADDITION TO THAT, 01:01:44.100 --> 01:01:45.868 align:middle line:85% position:50% size:70% WE HAVE AN OPEN GENERAL RATE 01:01:45.935 --> 01:01:46.936 align:middle line:85% position:50% size:60% CASE FOR PACIFIC GAS AND 01:01:47.003 --> 01:01:48.671 align:middle line:85% position:50% size:68% ELECTRIC. AND WE'LL ALSO BE 01:01:48.738 --> 01:01:50.039 align:middle line:85% position:50% size:70% ABLE TO LOOK INTO THIS ISSUE 01:01:50.106 --> 01:01:51.174 align:middle line:85% position:50% size:63% THERE AS WELL THROUGH THE 01:01:51.240 --> 01:01:54.744 align:middle line:85% position:50% size:73% STAKEHOLDER PROCESS. AND THEN 01:01:54.811 --> 01:01:57.580 align:middle line:85% position:50% size:70% TO THE, I GUESS, TO THE, THE 01:01:57.647 --> 01:01:59.982 align:middle line:85% position:50% size:73% HEART OF, OF THE CONVERSATION 01:02:00.049 --> 01:02:01.284 align:middle line:85% position:50% size:73% THAT WE WANT, YOU KNOW, WE'RE 01:02:01.350 --> 01:02:02.885 align:middle line:85% position:50% size:70% TRYING TO HAVE THIS FALL IS, 01:02:02.952 --> 01:02:04.053 align:middle line:85% position:50% size:60% YOU KNOW, HOW DO WE MOVE 01:02:04.120 --> 01:02:06.923 align:middle line:85% position:50% size:70% FORWARD FROM HERE? HOW DO WE 01:02:06.989 --> 01:02:08.357 align:middle line:85% position:50% size:75% START TO TACKLE SOME OF THESE, 01:02:08.424 --> 01:02:09.859 align:middle line:85% position:50% size:68% THESE CHALLENGES AND CREATE 01:02:09.926 --> 01:02:13.029 align:middle line:85% position:50% size:70% BETTER BALANCE IN THE CPUC S 01:02:13.096 --> 01:02:15.932 align:middle line:85% position:50% size:75% RESPONSE TO THE CEA IN PUTTING 01:02:15.998 --> 01:02:18.534 align:middle line:85% position:50% size:68% TOGETHER THE SB 254 REPORT? 01:02:18.601 --> 01:02:20.303 align:middle line:85% position:50% size:73% SURE. YOU OFFERED A NUMBER OF 01:02:20.369 --> 01:02:21.604 align:middle line:85% position:50% size:75% RECOMMENDATIONS, BUT I WANT TO 01:02:21.671 --> 01:02:22.805 align:middle line:85% position:50% size:75% ASK ABOUT A COUPLE OF THEM. SO 01:02:22.872 --> 01:02:25.341 align:middle line:85% position:50% size:63% ONE, THE CPUC RECOMMENDED 01:02:25.408 --> 01:02:26.409 align:middle line:85% position:50% size:60% ESCALATING REPAYMENT FOR 01:02:26.476 --> 01:02:28.177 align:middle line:85% position:50% size:75% IMPRUDENT UTILITIES AND NUMBER 01:02:28.244 --> 01:02:29.979 align:middle line:85% position:50% size:58% TWO, PAYING FOR PART OF 01:02:30.046 --> 01:02:31.547 align:middle line:85% position:50% size:73% WILDFIRE MITIGATION WORK WITH 01:02:31.614 --> 01:02:34.083 align:middle line:85% position:50% size:73% NON RATEPAYER FUNDS. I GUESS. 01:02:34.150 --> 01:02:36.786 align:middle line:85% position:50% size:65% TWO QUESTIONS. ONE, DO YOU 01:02:36.853 --> 01:02:38.988 align:middle line:85% position:50% size:60% STILL BELIEVE THAT THOSE 01:02:39.055 --> 01:02:40.456 align:middle line:85% position:50% size:60% RECOMMENDATIONS WOULD BE 01:02:40.523 --> 01:02:41.657 align:middle line:85% position:50% size:78% HELPFUL. AND TWO, CAN YOU SPEAK 01:02:41.724 --> 01:02:44.193 align:middle line:85% position:50% size:73% A BIT MORE TO WHAT THAT WOULD 01:02:44.260 --> 01:02:47.697 align:middle line:85% position:50% size:78% LOOK LIKE IN PRACTICE? YEAH. SO 01:02:47.763 --> 01:02:49.132 align:middle line:85% position:50% size:73% OUR RECOMMENDATIONS, WE STILL 01:02:49.198 --> 01:02:50.433 align:middle line:85% position:50% size:75% STAND BY THOSE RECOMMENDATIONS 01:02:50.500 --> 01:02:53.002 align:middle line:85% position:50% size:75% THAT WE HAD TO THE 254 REPORT. 01:02:53.069 --> 01:02:54.837 align:middle line:85% position:50% size:70% AND IN PARTICULAR, YOU KNOW, 01:02:54.904 --> 01:02:56.305 align:middle line:85% position:50% size:60% LOOKING AT THE IMPACT OF 01:02:56.372 --> 01:02:57.507 align:middle line:85% position:50% size:73% WILDFIRE, IT IMPACTS EVERYONE 01:02:57.573 --> 01:02:59.475 align:middle line:85% position:50% size:75% IN THE STATE. BUT RIGHT NOW WE 01:02:59.542 --> 01:03:00.610 align:middle line:85% position:50% size:70% HAVE A SIGNIFICANT AMOUNT OF 01:03:00.676 --> 01:03:02.612 align:middle line:85% position:50% size:78% WORK LIKE VEGETATION MANAGEMENT 01:03:02.678 --> 01:03:04.547 align:middle line:85% position:50% size:75% THAT IS BEING PAID FOR THROUGH 01:03:04.614 --> 01:03:06.048 align:middle line:85% position:50% size:73% JUST THE RATEPAYER BILLS. AND 01:03:06.115 --> 01:03:07.683 align:middle line:85% position:50% size:73% SO THAT'S A LIMITED NUMBER OF 01:03:07.750 --> 01:03:09.619 align:middle line:85% position:50% size:75% PEOPLE IN CALIFORNIA. WHEN THE 01:03:09.685 --> 01:03:11.053 align:middle line:85% position:50% size:70% IMPACT OF, OF NOT DOING THAT 01:03:11.120 --> 01:03:12.588 align:middle line:85% position:50% size:73% WORK AND THE BENEFIT OF DOING 01:03:12.655 --> 01:03:14.223 align:middle line:85% position:50% size:73% THAT WORK IMPACTS EVERYONE IN 01:03:14.290 --> 01:03:16.125 align:middle line:85% position:50% size:78% THE STATE. AND SO BEING ABLE TO 01:03:16.192 --> 01:03:17.660 align:middle line:85% position:50% size:73% LEVERAGE NON RATEPAYER SOURCE 01:03:17.727 --> 01:03:19.695 align:middle line:85% position:50% size:75% OF DOLLARS SO THAT WE CAN MORE 01:03:19.762 --> 01:03:21.164 align:middle line:85% position:50% size:73% EQUITABLY PAY FOR THOSE TYPES 01:03:21.230 --> 01:03:24.033 align:middle line:85% position:50% size:65% OF ESSENTIAL, THAT TYPE OF 01:03:24.100 --> 01:03:25.468 align:middle line:85% position:50% size:70% ESSENTIAL MITIGATION WORK IS 01:03:25.535 --> 01:03:27.570 align:middle line:85% position:50% size:65% SOMETHING THAT WE STRONGLY 01:03:27.637 --> 01:03:29.405 align:middle line:85% position:50% size:75% RECOMMEND BE CONSIDERED BY THE 01:03:29.472 --> 01:03:31.574 align:middle line:85% position:50% size:78% LEGISLATURE SO THAT WE CAN MORE 01:03:31.641 --> 01:03:33.009 align:middle line:85% position:50% size:75% EQUITABLY PAY FOR THE FOR THAT 01:03:33.075 --> 01:03:35.211 align:middle line:85% position:50% size:68% TYPE OF INFRASTRUCTURE. YOU 01:03:35.278 --> 01:03:37.346 align:middle line:85% position:50% size:78% KNOW, IN PARTICULAR, WHEN THOSE 01:03:37.413 --> 01:03:38.781 align:middle line:85% position:50% size:60% COSTS ARE RECOVERED FROM 01:03:38.848 --> 01:03:40.183 align:middle line:85% position:50% size:68% CUSTOMERS THERE, THOUGH, WE 01:03:40.249 --> 01:03:42.385 align:middle line:85% position:50% size:68% HAVE A SMALL INFRASTRUCTURE 01:03:42.451 --> 01:03:43.419 align:middle line:85% position:50% size:60% CHARGE ON UTILITY BILLS. 01:03:43.486 --> 01:03:45.288 align:middle line:85% position:50% size:58% THEY'RE LARGELY LARGELY 01:03:45.354 --> 01:03:46.355 align:middle line:85% position:50% size:75% COLLECTED. VOLUMETRICALLY. AND 01:03:46.422 --> 01:03:47.790 align:middle line:85% position:50% size:68% SO YOU REALLY SEE CUSTOMERS 01:03:47.857 --> 01:03:48.858 align:middle line:85% position:50% size:65% THAT HAVE HIGH ELECTRICITY 01:03:48.925 --> 01:03:51.727 align:middle line:85% position:50% size:68% BILLS, FOR EXAMPLE, PAYING, 01:03:51.794 --> 01:03:52.762 align:middle line:85% position:50% size:80% SHOULDERING MOST OF THOSE COSTS. 01:03:52.828 --> 01:03:54.263 align:middle line:85% position:50% size:63% AND SO YOU END UP WITH AN 01:03:54.330 --> 01:03:56.032 align:middle line:85% position:50% size:70% EQUITY CONCERN THERE AS WELL 01:03:56.098 --> 01:03:58.201 align:middle line:85% position:50% size:75% ABOUT A LOT OF THAT MITIGATION 01:03:58.267 --> 01:03:59.001 align:middle line:85% position:50% size:73% OCCURRING IN CERTAIN PARTS OF 01:03:59.068 --> 01:04:00.436 align:middle line:85% position:50% size:73% THE STATE. AND THEN CUSTOMERS 01:04:00.503 --> 01:04:01.837 align:middle line:85% position:50% size:65% IN THESE OTHER AREAS WHERE 01:04:01.904 --> 01:04:02.939 align:middle line:85% position:50% size:75% MAYBE THEY'RE JUST USING A LOT 01:04:03.005 --> 01:04:04.340 align:middle line:85% position:50% size:73% OF ELECTRICITY OR SHOULDERING 01:04:04.407 --> 01:04:05.841 align:middle line:85% position:50% size:70% MOST OF THAT BURDEN. SO THAT 01:04:05.908 --> 01:04:09.378 align:middle line:85% position:50% size:68% EQUITY CONCERN REMAINS. AND 01:04:09.445 --> 01:04:11.914 align:middle line:85% position:50% size:55% THEN AT THE END OF OUR 01:04:11.981 --> 01:04:14.083 align:middle line:85% position:50% size:60% LEGISLATIVE SESSION, THE 01:04:14.150 --> 01:04:15.818 align:middle line:85% position:50% size:73% GOVERNOR SENT A LETTER TO THE 01:04:15.885 --> 01:04:18.688 align:middle line:85% position:50% size:70% CPUC ASKING YOU TO REPORT BY 01:04:18.754 --> 01:04:19.755 align:middle line:85% position:50% size:65% NOVEMBER 1ST. SO THIS IS A 01:04:19.822 --> 01:04:22.024 align:middle line:85% position:50% size:68% LITTLE EARLY ON DOWNGRADES, 01:04:22.091 --> 01:04:24.160 align:middle line:85% position:50% size:73% BORROWING COSTS AND ACCESS TO 01:04:24.227 --> 01:04:27.830 align:middle line:85% position:50% size:78% CAPITAL. CAN YOU SHARE ANY SORT 01:04:27.897 --> 01:04:29.932 align:middle line:85% position:50% size:58% OF PREVIEW ON WHAT YOUR 01:04:29.999 --> 01:04:30.600 align:middle line:85% position:50% size:43% RESPONSE AND YOUR 01:04:30.666 --> 01:04:33.102 align:middle line:85% position:50% size:73% RECOMMENDATIONS WILL BE ON IN 01:04:33.169 --> 01:04:34.971 align:middle line:85% position:50% size:78% THAT REPORT? THAT IS COMING OUT 01:04:35.037 --> 01:04:37.406 align:middle line:85% position:50% size:75% IN A FEW DAYS? YEAH. SO WE YOU 01:04:37.473 --> 01:04:38.407 align:middle line:85% position:50% size:70% ARE WORKING EXPEDITIOUSLY ON 01:04:38.474 --> 01:04:40.376 align:middle line:85% position:50% size:68% THE REPORT TO GET IT OUT ON 01:04:40.443 --> 01:04:43.246 align:middle line:85% position:50% size:73% TIME. WE WERE ON A VERY TIGHT 01:04:43.312 --> 01:04:44.981 align:middle line:85% position:50% size:70% TIMELINE, WAS GIVEN TO US BY 01:04:45.047 --> 01:04:46.115 align:middle line:85% position:50% size:73% THE GOVERNOR. AND SO YOU WILL 01:04:46.182 --> 01:04:47.950 align:middle line:85% position:50% size:70% LARGELY SEE IN THAT REPORT A 01:04:48.017 --> 01:04:49.252 align:middle line:85% position:50% size:78% LOT OF THE SAME RECOMMENDATIONS 01:04:49.318 --> 01:04:50.953 align:middle line:85% position:50% size:70% THAT, AS I SAID, WE STAND BY 01:04:51.020 --> 01:04:52.255 align:middle line:85% position:50% size:73% FROM OUR SUBMISSION TO THE SB 01:04:52.321 --> 01:04:55.424 align:middle line:85% position:50% size:75% TWO FIVE REPORT. AND SO WE ARE 01:04:55.491 --> 01:04:57.260 align:middle line:85% position:50% size:75% ALSO, YOU KNOW, SHORING UP THE 01:04:57.326 --> 01:04:59.095 align:middle line:85% position:50% size:80% NUMBERS THERE IN THE REPORT TOO, 01:04:59.161 --> 01:05:01.030 align:middle line:85% position:50% size:78% JUST SO THAT WE CAN PROVIDE YOU 01:05:01.097 --> 01:05:02.999 align:middle line:85% position:50% size:70% WITH THE DATA AND ANALYTICAL 01:05:03.065 --> 01:05:04.900 align:middle line:85% position:50% size:78% IMPACTS TO CUSTOMERS, SOME THAT 01:05:04.967 --> 01:05:07.003 align:middle line:85% position:50% size:75% I SHARED HERE, BUT WE'LL BE IN 01:05:07.069 --> 01:05:08.771 align:middle line:85% position:50% size:75% THE REPORT AS WELL. ALL RIGHT. 01:05:08.838 --> 01:05:10.139 align:middle line:85% position:50% size:70% GREAT. THANK YOU. WE'LL LOOK 01:05:10.206 --> 01:05:11.207 align:middle line:85% position:50% size:65% FORWARD TO THAT. THANK YOU 01:05:11.274 --> 01:05:12.708 align:middle line:85% position:50% size:70% AGAIN, EXECUTIVE DIRECTOR, I 01:05:12.775 --> 01:05:14.243 align:middle line:85% position:50% size:75% APPRECIATE YOU BEING HERE. AND 01:05:14.310 --> 01:05:16.779 align:middle line:85% position:50% size:73% WITH THAT, WE'LL GO AHEAD AND 01:05:16.846 --> 01:05:19.548 align:middle line:85% position:50% size:70% WELCOME OUR SECOND PANEL. WE 01:05:19.615 --> 01:05:21.784 align:middle line:85% position:50% size:73% ARE JUST EVERYONE CAN KIND OF 01:05:21.851 --> 01:05:25.688 align:middle line:85% position:50% size:75% COME UP AND I'LL I'LL READ OUR 01:05:25.755 --> 01:05:27.056 align:middle line:85% position:50% size:73% PANELISTS. WE ARE GOING TO BE 01:05:27.123 --> 01:05:29.625 align:middle line:85% position:50% size:70% JOINED BY MURRAY BECKER, THE 01:05:29.692 --> 01:05:31.460 align:middle line:85% position:50% size:60% VICE PRESIDENT, INTERNAL 01:05:31.527 --> 01:05:32.461 align:middle line:85% position:50% size:60% AUDITOR AND TREASURER AT 01:05:32.528 --> 01:05:33.929 align:middle line:85% position:50% size:68% PACIFIC GAS AND ELECTRIC BY 01:05:33.996 --> 01:05:36.899 align:middle line:85% position:50% size:78% DIỆN DAN DUNMORE, THE PRESIDENT 01:05:36.966 --> 01:05:38.868 align:middle line:85% position:50% size:70% AND CHIEF EXECUTIVE OFFICER, 01:05:38.934 --> 01:05:40.002 align:middle line:85% position:50% size:58% THE CALIFORNIA BUILDING 01:05:40.069 --> 01:05:42.805 align:middle line:85% position:50% size:70% INDUSTRY ASSOCIATION. BY JAN 01:05:42.872 --> 01:05:44.340 align:middle line:85% position:50% size:58% SMUTNY JONES, THE CHIEF 01:05:44.407 --> 01:05:45.775 align:middle line:85% position:50% size:60% EXECUTIVE OFFICER OF THE 01:05:45.841 --> 01:05:47.510 align:middle line:85% position:50% size:70% INDEPENDENT ENERGY PRODUCERS 01:05:47.576 --> 01:05:49.712 align:middle line:85% position:50% size:73% ASSOCIATION. RALPH ARMSTRONG, 01:05:49.779 --> 01:05:51.180 align:middle line:85% position:50% size:73% THE SENIOR ASSISTANT BUSINESS 01:05:51.247 --> 01:05:52.581 align:middle line:85% position:50% size:70% MANAGER AT THE INTERNATIONAL 01:05:52.648 --> 01:05:54.083 align:middle line:85% position:50% size:58% BROTHERHOOD OF ELECTRIC 01:05:54.150 --> 01:05:56.886 align:middle line:85% position:50% size:73% ELECTRICAL WORKERS LOCAL 1245 01:05:56.952 --> 01:05:59.055 align:middle line:85% position:50% size:70% BY MARK TONEY, THE EXECUTIVE 01:05:59.121 --> 01:06:00.489 align:middle line:85% position:50% size:75% DIRECTOR OF THE UTILITY REFORM 01:06:00.556 --> 01:06:02.458 align:middle line:85% position:50% size:73% NETWORK, AND FERNANDO VALERO, 01:06:02.525 --> 01:06:04.093 align:middle line:85% position:50% size:63% THE EXECUTIVE DIRECTOR OF 01:06:04.160 --> 01:06:05.561 align:middle line:85% position:50% size:63% STRATEGIC ISSUES, THE LOS 01:06:05.628 --> 01:06:07.196 align:middle line:85% position:50% size:78% ANGELES DEPARTMENT OF WATER AND 01:06:07.263 --> 01:06:13.836 align:middle line:85% position:50% size:73% POWER, AND IT. ONE MORE SORRY 01:06:13.903 --> 01:06:16.305 align:middle line:85% position:50% size:75% AND BY SAM BROTHWELL, THE VICE 01:06:16.372 --> 01:06:18.541 align:middle line:85% position:50% size:70% PRESIDENT OF. AND STRATEGIC, 01:06:18.607 --> 01:06:19.975 align:middle line:85% position:50% size:58% STRATEGIC AND FINANCIAL 01:06:20.042 --> 01:06:22.445 align:middle line:85% position:50% size:65% ADVISORY AT MC PERFORMANCE 01:06:22.511 --> 01:06:23.813 align:middle line:85% position:50% size:70% SOLUTIONS. SO WELCOME. THANK 01:06:23.879 --> 01:06:25.648 align:middle line:85% position:50% size:75% YOU ALL FOR BEING HERE. I KNOW 01:06:25.715 --> 01:06:27.550 align:middle line:85% position:50% size:70% WE'VE GOT A FULL DAIS, BUT I 01:06:27.616 --> 01:06:29.318 align:middle line:85% position:50% size:80% THINK THAT REALLY REFLECTS JUST, 01:06:29.385 --> 01:06:31.253 align:middle line:85% position:50% size:78% I THINK, THE SCALE AND SWEEP OF 01:06:31.320 --> 01:06:32.888 align:middle line:85% position:50% size:78% THE CHALLENGE BEFORE US AND THE 01:06:32.955 --> 01:06:35.024 align:middle line:85% position:50% size:70% DEGREE TO WHICH THIS IMPACTS 01:06:35.091 --> 01:06:36.058 align:middle line:85% position:50% size:73% STAKEHOLDERS ACROSS THE STATE 01:06:36.125 --> 01:06:38.227 align:middle line:85% position:50% size:75% OF CALIFORNIA. SO WITH THAT, I 01:06:38.294 --> 01:06:39.395 align:middle line:85% position:50% size:73% THINK WE'RE GOING TO GO AHEAD 01:06:39.462 --> 01:06:40.996 align:middle line:85% position:50% size:63% AND BEGIN. VICE PRESIDENT 01:06:41.063 --> 01:06:44.800 align:middle line:85% position:50% size:58% BECKER, WITH YOU. CHAIR 01:06:44.867 --> 01:06:45.468 align:middle line:85% position:50% size:70% PETRIE-NORRIS MEMBERS OF THE 01:06:45.534 --> 01:06:46.936 align:middle line:85% position:50% size:70% COMMITTEE, THANK YOU FOR THE 01:06:47.002 --> 01:06:48.037 align:middle line:85% position:50% size:73% OPPORTUNITY TO SPEAK WITH YOU 01:06:48.104 --> 01:06:49.472 align:middle line:85% position:50% size:68% TODAY ON ON THESE IMPORTANT 01:06:49.538 --> 01:06:51.240 align:middle line:85% position:50% size:63% ISSUES. MY NAME IS MURRAY 01:06:51.307 --> 01:06:52.708 align:middle line:85% position:50% size:75% BECKER. I'M VICE PRESIDENT AND 01:06:52.775 --> 01:06:53.909 align:middle line:85% position:50% size:73% TREASURER AT PG AND E, AND SO 01:06:53.976 --> 01:06:55.878 align:middle line:85% position:50% size:78% MY ROLE AT THE COMPANY INCLUDES 01:06:55.945 --> 01:06:56.979 align:middle line:85% position:50% size:68% GOING OUT TO THE MARKETS TO 01:06:57.046 --> 01:06:58.814 align:middle line:85% position:50% size:73% RAISE THE CAPITAL THAT WE USE 01:06:58.881 --> 01:07:00.015 align:middle line:85% position:50% size:75% TO INVEST IN INFRASTRUCTURE ON 01:07:00.082 --> 01:07:03.185 align:middle line:85% position:50% size:73% BEHALF OF OUR CUSTOMERS AT PG 01:07:03.252 --> 01:07:04.387 align:middle line:85% position:50% size:65% AND E, WE ARE COMMITTED TO 01:07:04.453 --> 01:07:05.688 align:middle line:85% position:50% size:78% DELIVERING THE ENERGY TO THE 16 01:07:05.755 --> 01:07:06.789 align:middle line:85% position:50% size:73% MILLION CALIFORNIANS WHO LIVE 01:07:06.856 --> 01:07:08.858 align:middle line:85% position:50% size:78% IN OUR TERRITORY IN CENTRAL AND 01:07:08.924 --> 01:07:11.060 align:middle line:85% position:50% size:75% NORTHERN CALIFORNIA. AND WE'RE 01:07:11.127 --> 01:07:13.996 align:middle line:85% position:50% size:68% PROUD OF OUR PROGRESS. THAT 01:07:14.063 --> 01:07:15.398 align:middle line:85% position:50% size:78% INCLUDES FOUR CONSECUTIVE YEARS 01:07:15.464 --> 01:07:16.866 align:middle line:85% position:50% size:58% WITH NO MAJOR WILDFIRES 01:07:16.932 --> 01:07:18.634 align:middle line:85% position:50% size:75% ASSOCIATED WITH OUR EQUIPMENT. 01:07:18.701 --> 01:07:20.736 align:middle line:85% position:50% size:75% IT INCLUDES FIVE ELECTRIC RATE 01:07:20.803 --> 01:07:22.271 align:middle line:85% position:50% size:68% DECREASES OVER THE LAST TWO 01:07:22.338 --> 01:07:24.039 align:middle line:85% position:50% size:75% YEARS, AND WE WILL CONTINUE TO 01:07:24.106 --> 01:07:26.876 align:middle line:85% position:50% size:75% TO FOCUS ON THAT WORK. BUT THE 01:07:26.942 --> 01:07:28.344 align:middle line:85% position:50% size:63% CENTRAL POINT I'D LIKE TO 01:07:28.411 --> 01:07:29.612 align:middle line:85% position:50% size:73% CONVEY IN THESE REMARKS RIGHT 01:07:29.678 --> 01:07:33.182 align:middle line:85% position:50% size:75% NOW IS THAT WILDFIRE FINANCIAL 01:07:33.249 --> 01:07:34.850 align:middle line:85% position:50% size:68% RISK IS MAKING CAPITAL MORE 01:07:34.917 --> 01:07:36.285 align:middle line:85% position:50% size:75% EXPENSIVE TO DO THAT WORK, AND 01:07:36.352 --> 01:07:37.653 align:middle line:85% position:50% size:65% THAT IS MAKING ENERGY MORE 01:07:37.720 --> 01:07:39.989 align:middle line:85% position:50% size:78% EXPENSIVE FOR CALIFORNIANS. AND 01:07:40.055 --> 01:07:41.323 align:middle line:85% position:50% size:58% LEFT UNADDRESSED. THOSE 01:07:41.390 --> 01:07:42.158 align:middle line:85% position:50% size:70% CHALLENGES ARE ALSO GOING TO 01:07:42.224 --> 01:07:44.126 align:middle line:85% position:50% size:78% MAKE IT HARDER FOR US TO DO THE 01:07:44.193 --> 01:07:45.261 align:middle line:85% position:50% size:60% WORK THAT'S EXPECTED FOR 01:07:45.327 --> 01:07:46.695 align:middle line:85% position:50% size:78% CALIFORNIA ON THE TIMELINE THAT 01:07:46.762 --> 01:07:49.932 align:middle line:85% position:50% size:78% OUR CUSTOMERS WOULD LIKE. AS WE 01:07:49.999 --> 01:07:51.767 align:middle line:85% position:50% size:73% HEARD FROM EXECUTIVE DIRECTOR 01:07:51.834 --> 01:07:54.570 align:middle line:85% position:50% size:70% TESFAI JUST NOW, SINCE 2017, 01:07:54.637 --> 01:07:56.038 align:middle line:85% position:50% size:75% WILDFIRE RISK HAS BEEN A MAJOR 01:07:56.105 --> 01:07:57.072 align:middle line:85% position:50% size:63% DETERMINANT OF THE CREDIT 01:07:57.139 --> 01:07:57.940 align:middle line:85% position:50% size:58% QUALITY OF CALIFORNIA'S 01:07:58.007 --> 01:07:59.675 align:middle line:85% position:50% size:73% INVESTOR OWNED UTILITIES. AND 01:07:59.742 --> 01:08:00.843 align:middle line:85% position:50% size:73% THAT REALLY REFLECTS THE FACT 01:08:00.910 --> 01:08:04.346 align:middle line:85% position:50% size:78% THAT WE PLAY TWO ROLES. ONE, WE 01:08:04.413 --> 01:08:07.249 align:middle line:85% position:50% size:68% PROVIDE ESSENTIAL ĐÃ ARE AN 01:08:07.316 --> 01:08:07.917 align:middle line:85% position:50% size:60% ESSENTIAL INFRASTRUCTURE 01:08:07.983 --> 01:08:10.085 align:middle line:85% position:50% size:68% BUSINESS FOR THE STATE. BUT 01:08:10.152 --> 01:08:11.187 align:middle line:85% position:50% size:53% SECOND, UNDER INVERSE 01:08:11.253 --> 01:08:12.288 align:middle line:85% position:50% size:68% CONDEMNATION, WE PROVIDE AN 01:08:12.354 --> 01:08:14.390 align:middle line:85% position:50% size:75% INSURANCE BACKSTOP ROLE IN THE 01:08:14.457 --> 01:08:15.491 align:middle line:85% position:50% size:50% STATE, AND THAT PUTS 01:08:15.558 --> 01:08:16.959 align:middle line:85% position:50% size:53% SIGNIFICANT FINANCIAL 01:08:17.026 --> 01:08:19.094 align:middle line:85% position:50% size:73% LIABILITIES ONTO US. AND THAT 01:08:19.161 --> 01:08:21.197 align:middle line:85% position:50% size:70% IS UNIQUE. YOU'RE FACED WITH 01:08:21.263 --> 01:08:23.399 align:middle line:85% position:50% size:73% THOSE CHALLENGES. LEGISLATIVE 01:08:23.466 --> 01:08:25.267 align:middle line:85% position:50% size:78% ACTION HAS BEEN VERY SUPPORTIVE 01:08:25.334 --> 01:08:26.635 align:middle line:85% position:50% size:60% FOR CREDIT QUALITY. THAT 01:08:26.702 --> 01:08:28.504 align:middle line:85% position:50% size:63% INCLUDES AB 1054 THAT WAS 01:08:28.571 --> 01:08:31.707 align:middle line:85% position:50% size:73% PASSED IN 2019, AS WELL AS SB 01:08:31.774 --> 01:08:35.644 align:middle line:85% position:50% size:55% 254 LAST YEAR. BUT THE 01:08:35.711 --> 01:08:36.779 align:middle line:85% position:50% size:63% CATASTROPHIC WILDFIRES IN 01:08:36.846 --> 01:08:38.514 align:middle line:85% position:50% size:70% SOUTHERN CALIFORNIA IN EARLY 01:08:38.581 --> 01:08:41.083 align:middle line:85% position:50% size:58% 2025 REALLY CHANGED THE 01:08:41.150 --> 01:08:42.918 align:middle line:85% position:50% size:73% PERSPECTIVE ON THE DURABILITY 01:08:42.985 --> 01:08:45.054 align:middle line:85% position:50% size:80% OF THAT FRAMEWORK UNDER AB 1054. 01:08:45.120 --> 01:08:46.689 align:middle line:85% position:50% size:73% AND THAT REALLY IS WHY WE ARE 01:08:46.755 --> 01:08:49.024 align:middle line:85% position:50% size:63% HERE TODAY. THE FINANCIAL 01:08:49.091 --> 01:08:50.426 align:middle line:85% position:50% size:60% MARKETS HAVE REACTED AND 01:08:50.493 --> 01:08:51.827 align:middle line:85% position:50% size:60% REACTED STRONGLY TO THAT 01:08:51.894 --> 01:08:55.097 align:middle line:85% position:50% size:73% CONDITION SINCE JANUARY 2025, 01:08:55.164 --> 01:08:56.599 align:middle line:85% position:50% size:75% SOUTHERN CALIFORNIA EDISON HAS 01:08:56.665 --> 01:08:58.300 align:middle line:85% position:50% size:80% BEEN DOWNGRADED BY THE AGENCIES. 01:08:58.367 --> 01:09:00.135 align:middle line:85% position:50% size:75% PG PROGRESS TOWARDS INVESTMENT 01:09:00.202 --> 01:09:03.372 align:middle line:85% position:50% size:75% GRADE RATINGS HAS STALLED, AND 01:09:03.439 --> 01:09:05.107 align:middle line:85% position:50% size:65% S&P HAS WARNED THAT IN THE 01:09:05.174 --> 01:09:06.609 align:middle line:85% position:50% size:60% ABSENCE OF ACTION AS THE 01:09:06.675 --> 01:09:08.377 align:middle line:85% position:50% size:75% CURRENT FUND IS DEPLETED, BOTH 01:09:08.444 --> 01:09:10.546 align:middle line:85% position:50% size:55% PGE AND EDISON WILL BE 01:09:10.613 --> 01:09:13.082 align:middle line:85% position:50% size:75% DOWNGRADED MULTIPLE NOTCHES IN 01:09:13.148 --> 01:09:14.850 align:middle line:85% position:50% size:70% RATING AGENCY TERMINOLOGY TO 01:09:14.917 --> 01:09:17.119 align:middle line:85% position:50% size:78% THE SINGLE B CATEGORY. AND JUST 01:09:17.186 --> 01:09:18.754 align:middle line:85% position:50% size:68% TO PUT THAT IN PERSPECTIVE, 01:09:18.821 --> 01:09:20.322 align:middle line:85% position:50% size:75% THAT WOULD MAKE CALIFORNIA AND 01:09:20.389 --> 01:09:22.491 align:middle line:85% position:50% size:78% EDISON. EXCUSE ME, PG AND E AND 01:09:22.558 --> 01:09:23.893 align:middle line:85% position:50% size:58% EDISON THE LOWEST RATED 01:09:23.959 --> 01:09:26.428 align:middle line:85% position:50% size:78% UTILITIES IN THE UNITED STATES. 01:09:26.495 --> 01:09:28.264 align:middle line:85% position:50% size:53% AND SO THERE ARE REAL 01:09:28.330 --> 01:09:29.298 align:middle line:85% position:50% size:73% CONSEQUENCES TO OUR CUSTOMERS 01:09:29.365 --> 01:09:31.901 align:middle line:85% position:50% size:75% OF THAT POSSIBILITY. AND THESE 01:09:31.967 --> 01:09:33.636 align:middle line:85% position:50% size:68% ISSUES ARE NOT THEORETICAL. 01:09:33.702 --> 01:09:35.070 align:middle line:85% position:50% size:55% HIGHER FINANCING COSTS 01:09:35.137 --> 01:09:36.171 align:middle line:85% position:50% size:68% ASSOCIATED WITH UNADDRESSED 01:09:36.238 --> 01:09:37.072 align:middle line:85% position:50% size:70% RISK IS ALREADY REFLECTED IN 01:09:37.139 --> 01:09:38.874 align:middle line:85% position:50% size:73% OUR RATES. WE JUST HEARD FROM 01:09:38.941 --> 01:09:40.876 align:middle line:85% position:50% size:73% EXECUTIVE DIRECTOR TESFAI PG, 01:09:40.943 --> 01:09:42.611 align:middle line:85% position:50% size:70% AND HIS ESTIMATE IS THAT FOR 01:09:42.678 --> 01:09:44.813 align:middle line:85% position:50% size:73% DEBT WE'VE ISSUED SINCE 2017, 01:09:44.880 --> 01:09:45.848 align:middle line:85% position:50% size:55% THAT HAS COMMITTED OUR 01:09:45.915 --> 01:09:47.683 align:middle line:85% position:50% size:75% CUSTOMERS TO AN INCREMENTAL $4 01:09:47.750 --> 01:09:49.852 align:middle line:85% position:50% size:73% BILLION IN INTEREST EXPENSES. 01:09:49.919 --> 01:09:51.620 align:middle line:85% position:50% size:65% AND IF WE INCLUDE SOUTHERN 01:09:51.687 --> 01:09:53.455 align:middle line:85% position:50% size:63% CALIFORNIA EDISON AND SDG 01:09:53.522 --> 01:09:54.924 align:middle line:85% position:50% size:68% ESTIMATES, THAT GROWS TO $6 01:09:54.990 --> 01:09:57.026 align:middle line:85% position:50% size:70% BILLION OF HIGHER COSTS THAT 01:09:57.092 --> 01:10:00.296 align:middle line:85% position:50% size:78% CALIFORNIANS WILL HAVE TO BEAR. 01:10:00.362 --> 01:10:02.765 align:middle line:85% position:50% size:55% THE STATUS QUO IS ALSO 01:10:02.831 --> 01:10:03.899 align:middle line:85% position:50% size:78% IMPAIRING OUR ABILITY TO DO THE 01:10:03.966 --> 01:10:05.367 align:middle line:85% position:50% size:73% WORK THAT OUR CUSTOMERS WANT. 01:10:05.434 --> 01:10:06.936 align:middle line:85% position:50% size:68% AND WE DID HAVE TO ANNOUNCE 01:10:07.002 --> 01:10:08.237 align:middle line:85% position:50% size:58% LAST MONTH A $2 BILLION 01:10:08.304 --> 01:10:10.306 align:middle line:85% position:50% size:70% DEFERRAL OF OUR 2027 CAPITAL 01:10:10.372 --> 01:10:13.208 align:middle line:85% position:50% size:75% PLANS. YOU KNOW, FIRST, I JUST 01:10:13.275 --> 01:10:14.977 align:middle line:85% position:50% size:75% HAVE TO EMPHASIZE THAT THAT IS 01:10:15.044 --> 01:10:17.580 align:middle line:85% position:50% size:78% NOT A DECISION WE MADE LIGHTLY. 01:10:17.646 --> 01:10:20.549 align:middle line:85% position:50% size:75% BUT AND WE WE RESPECT ENTIRELY 01:10:20.616 --> 01:10:21.884 align:middle line:85% position:50% size:73% THAT IT HAS REAL IMPLICATIONS 01:10:21.951 --> 01:10:23.652 align:middle line:85% position:50% size:65% FOR, FOR OUR CUSTOMERS AND 01:10:23.719 --> 01:10:26.055 align:middle line:85% position:50% size:65% THEIR NEEDS. BUT THAT IS A 01:10:26.121 --> 01:10:27.256 align:middle line:85% position:50% size:55% DECISION THAT WAS ALSO 01:10:27.323 --> 01:10:28.324 align:middle line:85% position:50% size:78% NECESSITATED BY THE ENVIRONMENT 01:10:28.390 --> 01:10:29.458 align:middle line:85% position:50% size:58% WE'RE IN. AND WE CANNOT 01:10:29.525 --> 01:10:30.793 align:middle line:85% position:50% size:70% CONTINUE TO GROW OUR CAPITAL 01:10:30.859 --> 01:10:32.895 align:middle line:85% position:50% size:65% PLAN WITHOUT SOME OF THESE 01:10:32.962 --> 01:10:35.898 align:middle line:85% position:50% size:75% ISSUES BEING ADDRESSED. AND SO 01:10:35.965 --> 01:10:37.333 align:middle line:85% position:50% size:68% THE CIRCUMSTANCES REFLECT A 01:10:37.399 --> 01:10:39.468 align:middle line:85% position:50% size:75% DIFFICULT CYCLE. MORE WILDFIRE 01:10:39.535 --> 01:10:40.536 align:middle line:85% position:50% size:75% FINANCIAL UNCERTAINTY LEADS TO 01:10:40.603 --> 01:10:42.705 align:middle line:85% position:50% size:70% WEAKER CREDIT. WEAKER CREDIT 01:10:42.771 --> 01:10:44.506 align:middle line:85% position:50% size:80% LEADS TO MORE EXPENSIVE CAPITAL, 01:10:44.573 --> 01:10:46.375 align:middle line:85% position:50% size:78% AND MORE EXPENSIVE CAPITAL PUTS 01:10:46.442 --> 01:10:47.810 align:middle line:85% position:50% size:68% UPWARD PRESSURE ON CUSTOMER 01:10:47.876 --> 01:10:49.578 align:middle line:85% position:50% size:55% BILLS. AND ALL OF THIS 01:10:49.645 --> 01:10:50.679 align:middle line:85% position:50% size:78% CONSTRAINS THE INVESTMENTS THAT 01:10:50.746 --> 01:10:53.282 align:middle line:85% position:50% size:70% CALIFORNIA NEEDS. THE STATUS 01:10:53.349 --> 01:10:54.750 align:middle line:85% position:50% size:73% QUO IS THEREFORE NOT NEUTRAL, 01:10:54.817 --> 01:10:56.018 align:middle line:85% position:50% size:70% AND OUR CUSTOMERS ARE PAYING 01:10:56.085 --> 01:10:58.554 align:middle line:85% position:50% size:73% FOR IT. SO THESE ISSUES RAISE 01:10:58.621 --> 01:10:59.788 align:middle line:85% position:50% size:73% THE QUESTION OF WHAT'S NEEDED 01:10:59.855 --> 01:11:02.191 align:middle line:85% position:50% size:68% TO SUPPORT INVESTMENT GRADE 01:11:02.257 --> 01:11:05.094 align:middle line:85% position:50% size:78% UTILITIES AND IMPORTANTLY, PASS 01:11:05.160 --> 01:11:06.495 align:middle line:85% position:50% size:78% LEGISLATION THROUGH AB 1054 AND 01:11:06.562 --> 01:11:08.998 align:middle line:85% position:50% size:65% SB 254 HAS SHOWN WHAT SOME 01:11:09.064 --> 01:11:11.166 align:middle line:85% position:50% size:70% ELEMENTS OF INVESTMENT GRADE 01:11:11.233 --> 01:11:12.267 align:middle line:85% position:50% size:78% SUPPORTIVE SOLUTIONS MIGHT LOOK 01:11:12.334 --> 01:11:14.803 align:middle line:85% position:50% size:75% LIKE. THE RATING AGENCIES HAVE 01:11:14.870 --> 01:11:17.640 align:middle line:85% position:50% size:65% BEEN PRETTY CLEAR IN THEIR 01:11:17.706 --> 01:11:18.674 align:middle line:85% position:50% size:78% PUBLICATIONS ABOUT WHAT THEY'RE 01:11:18.741 --> 01:11:20.643 align:middle line:85% position:50% size:75% LOOKING FOR. THAT DOES INCLUDE 01:11:20.709 --> 01:11:22.678 align:middle line:85% position:50% size:70% A DISALLOWANCE LIMITATION ON 01:11:22.745 --> 01:11:24.446 align:middle line:85% position:50% size:78% POTENTIAL EXPOSURE IN THE EVENT 01:11:24.513 --> 01:11:27.383 align:middle line:85% position:50% size:60% OF A UTILITY CAUSE FIRE, 01:11:27.449 --> 01:11:28.817 align:middle line:85% position:50% size:73% PARTICULARLY WHEN THE UTILITY 01:11:28.884 --> 01:11:30.252 align:middle line:85% position:50% size:73% IS PRUDENT IN ITS ACTIONS, IN 01:11:30.319 --> 01:11:31.487 align:middle line:85% position:50% size:75% MEETING ITS COMMITMENTS IN HOW 01:11:31.553 --> 01:11:34.957 align:middle line:85% position:50% size:73% IT IS MANAGING WILDFIRE RISK. 01:11:35.024 --> 01:11:36.325 align:middle line:85% position:50% size:50% ALSO, AS IN PREVIOUS 01:11:36.392 --> 01:11:37.826 align:middle line:85% position:50% size:68% LEGISLATION, A DISALLOWANCE 01:11:37.893 --> 01:11:39.194 align:middle line:85% position:50% size:55% LIMITATION COULD EXIST 01:11:39.261 --> 01:11:40.329 align:middle line:85% position:50% size:43% ALONGSIDE UTILITY 01:11:40.396 --> 01:11:42.865 align:middle line:85% position:50% size:75% ACCOUNTABILITY MEASURES AND AS 01:11:42.931 --> 01:11:44.299 align:middle line:85% position:50% size:70% WAS DISCUSSED AT LAST WEEK'S 01:11:44.366 --> 01:11:46.101 align:middle line:85% position:50% size:73% HEARINGS, WE WELCOME RIGOROUS 01:11:46.168 --> 01:11:47.536 align:middle line:85% position:50% size:70% REVIEW AND ACCOUNTABILITY TO 01:11:47.603 --> 01:11:49.238 align:middle line:85% position:50% size:78% ENSURE THAT WE ARE ALIGNED WITH 01:11:49.304 --> 01:11:50.339 align:middle line:85% position:50% size:65% THE SAFETY OUTCOMES OF THE 01:11:50.406 --> 01:11:52.207 align:middle line:85% position:50% size:78% STATE. AND SO, IN CLOSING, I'LL 01:11:52.274 --> 01:11:53.709 align:middle line:85% position:50% size:78% RETURN TO MY CENTRAL POINT. THE 01:11:53.776 --> 01:11:55.477 align:middle line:85% position:50% size:53% STATUS QUO IS HURTING 01:11:55.544 --> 01:11:56.545 align:middle line:85% position:50% size:78% AFFORDABILITY AND THREATENS OUR 01:11:56.612 --> 01:11:57.980 align:middle line:85% position:50% size:68% ABILITY TO MAKE INVESTMENTS 01:11:58.047 --> 01:11:59.415 align:middle line:85% position:50% size:70% CALIFORNIA NEEDS AT THE PACE 01:11:59.481 --> 01:12:01.583 align:middle line:85% position:50% size:70% CALIFORNIA EXPECTS POTENTIAL 01:12:01.650 --> 01:12:02.317 align:middle line:85% position:50% size:75% SOLUTIONS COULD CONSIDER THOSE 01:12:02.384 --> 01:12:03.719 align:middle line:85% position:50% size:65% ELEMENTS NEEDED TO SUPPORT 01:12:03.786 --> 01:12:04.820 align:middle line:85% position:50% size:73% STRONG CREDIT QUALITY, AND WE 01:12:04.887 --> 01:12:06.588 align:middle line:85% position:50% size:75% HOPE YOU WILL ACT WITH URGENCY 01:12:06.655 --> 01:12:08.457 align:middle line:85% position:50% size:68% ON THESE ISSUES. THANK YOU, 01:12:08.524 --> 01:12:09.792 align:middle line:85% position:50% size:68% THANK YOU AND MEMBERS, WHAT 01:12:09.858 --> 01:12:10.993 align:middle line:85% position:50% size:75% WE'RE GOING TO DO IS HEAR FROM 01:12:11.060 --> 01:12:12.828 align:middle line:85% position:50% size:75% OUR PANELISTS AND THEN OPEN IT 01:12:12.895 --> 01:12:13.829 align:middle line:85% position:50% size:50% UP FOR QUESTIONS AND 01:12:13.896 --> 01:12:14.897 align:middle line:85% position:50% size:68% CONVERSATION. MR. DONMOYER, 01:12:14.963 --> 01:12:16.765 align:middle line:85% position:50% size:70% THANKS FOR BEING HERE. THANK 01:12:16.832 --> 01:12:18.500 align:middle line:85% position:50% size:78% YOU, MADAM CHAIR. PETRIE-NORRIS 01:12:18.567 --> 01:12:19.568 align:middle line:85% position:50% size:70% MEMBERS, TEAM MEMBERS OF THE 01:12:19.635 --> 01:12:21.003 align:middle line:85% position:50% size:60% COMMITTEE. DAN DONMOYER, 01:12:21.070 --> 01:12:22.438 align:middle line:85% position:50% size:60% PRESIDENT AND CEO OF THE 01:12:22.504 --> 01:12:24.206 align:middle line:85% position:50% size:70% CALIFORNIA BUILDING INDUSTRY 01:12:24.273 --> 01:12:25.708 align:middle line:85% position:50% size:78% ASSOCIATION, WHERE THE BUSINESS 01:12:25.774 --> 01:12:27.509 align:middle line:85% position:50% size:78% ASSOCIATION THAT REPRESENTS THE 01:12:27.576 --> 01:12:29.311 align:middle line:85% position:50% size:73% SHELTER INDUSTRY. OUR MEMBERS 01:12:29.378 --> 01:12:31.113 align:middle line:85% position:50% size:78% BUILD ALL TYPES OF HOUSING PURE 01:12:31.180 --> 01:12:33.282 align:middle line:85% position:50% size:73% CHARITY FOR HOMELESS, LEGALLY 01:12:33.348 --> 01:12:35.751 align:middle line:85% position:50% size:75% DEFINED AFFORDABLE APARTMENTS, 01:12:35.818 --> 01:12:37.186 align:middle line:85% position:50% size:65% MULTIFAMILY, CONDO, SINGLE 01:12:37.252 --> 01:12:39.021 align:middle line:85% position:50% size:60% FAMILY, DETACHED. SO ALL 01:12:39.088 --> 01:12:40.422 align:middle line:85% position:50% size:63% COMPONENTS OF THE HOUSING 01:12:40.489 --> 01:12:42.091 align:middle line:85% position:50% size:73% INDUSTRY AND ALL ARE IMPACTED 01:12:42.157 --> 01:12:44.426 align:middle line:85% position:50% size:68% BY TODAY'S CONVERSATION. WE 01:12:44.493 --> 01:12:45.828 align:middle line:85% position:50% size:65% ALSO BUILD THE MOST ENERGY 01:12:45.894 --> 01:12:48.397 align:middle line:85% position:50% size:78% EFFICIENT HOMES IN THE WORLD WE 01:12:48.464 --> 01:12:50.532 align:middle line:85% position:50% size:75% HAVE SUPPORTED. WE'RE THE ONLY 01:12:50.599 --> 01:12:51.667 align:middle line:85% position:50% size:73% BUILDING INDUSTRY ASSOCIATION 01:12:51.734 --> 01:12:53.102 align:middle line:85% position:50% size:63% IN AMERICA THAT SUPPORTED 01:12:53.168 --> 01:12:55.571 align:middle line:85% position:50% size:75% MANDATORY SOLAR INDUSTRY, THAT 01:12:55.637 --> 01:12:56.438 align:middle line:85% position:50% size:70% BUILDING INDUSTRY IN AMERICA 01:12:56.505 --> 01:12:58.440 align:middle line:85% position:50% size:75% THAT SUPPORTED THE MOST STRICT 01:12:58.507 --> 01:12:59.541 align:middle line:85% position:50% size:58% REQUIREMENTS FOR ENERGY 01:12:59.608 --> 01:13:01.677 align:middle line:85% position:50% size:75% EFFICIENCY. WE'RE UNPARALLELED 01:13:01.744 --> 01:13:02.778 align:middle line:85% position:50% size:63% ANYWHERE IN THE WORLD FOR 01:13:02.845 --> 01:13:04.146 align:middle line:85% position:50% size:73% ENERGY EFFICIENCY. WE ARE NOW 01:13:04.213 --> 01:13:05.647 align:middle line:85% position:50% size:65% BUILDING HOMES THAT CHARGE 01:13:05.714 --> 01:13:07.449 align:middle line:85% position:50% size:68% MULTIPLE ELECTRIC VEHICLES. 01:13:07.516 --> 01:13:09.218 align:middle line:85% position:50% size:55% THEY HAVE ALL ELECTRIC 01:13:09.284 --> 01:13:10.319 align:middle line:85% position:50% size:70% APPLIANCES. THAT'S THE GREAT 01:13:10.385 --> 01:13:12.121 align:middle line:85% position:50% size:75% NEWS. THE CHALLENGE, AS YOU'LL 01:13:12.187 --> 01:13:14.256 align:middle line:85% position:50% size:68% SEE, IS THAT DEMAND, AS THE 01:13:14.323 --> 01:13:15.557 align:middle line:85% position:50% size:73% EXECUTIVE DIRECTOR TESTIFIED, 01:13:15.624 --> 01:13:16.825 align:middle line:85% position:50% size:68% JUST MENTIONED A TREMENDOUS 01:13:16.892 --> 01:13:18.627 align:middle line:85% position:50% size:68% AMOUNT OF ENERGY. SO WE ARE 01:13:18.694 --> 01:13:20.395 align:middle line:85% position:50% size:70% VERY MUCH IN THIS DISCUSSION 01:13:20.462 --> 01:13:22.264 align:middle line:85% position:50% size:78% BECAUSE WE BUILD THE HOMES THAT 01:13:22.331 --> 01:13:23.332 align:middle line:85% position:50% size:58% PEOPLE WANT, THE ENERGY 01:13:23.398 --> 01:13:25.067 align:middle line:85% position:50% size:70% EFFICIENCY THAT THE STATE OF 01:13:25.134 --> 01:13:26.268 align:middle line:85% position:50% size:73% CALIFORNIA HAS URGED US TO DO 01:13:26.335 --> 01:13:28.704 align:middle line:85% position:50% size:78% AND WE ARE DOING, BUT IT'S ALSO 01:13:28.771 --> 01:13:30.939 align:middle line:85% position:50% size:78% IMPACTING HOW WE BUILD TODAY. I 01:13:31.006 --> 01:13:32.641 align:middle line:85% position:50% size:75% WANT TO RESPOND TO THE WAY THE 01:13:32.708 --> 01:13:34.243 align:middle line:85% position:50% size:78% AGENDA IS FRAMED, THE IMPACT OF 01:13:34.309 --> 01:13:36.211 align:middle line:85% position:50% size:70% THE RECENT ACTIONS THAT HAVE 01:13:36.278 --> 01:13:38.413 align:middle line:85% position:50% size:78% OCCURRED MOST SINCE YOU'VE LEFT 01:13:38.480 --> 01:13:40.282 align:middle line:85% position:50% size:75% YOUR REGULAR SESSION. SO WE'RE 01:13:40.349 --> 01:13:42.017 align:middle line:85% position:50% size:70% THE CANARY IN THE COAL MINE, 01:13:42.084 --> 01:13:44.153 align:middle line:85% position:50% size:75% FOR LACK OF A BETTER TERM. AND 01:13:44.219 --> 01:13:45.420 align:middle line:85% position:50% size:78% BEING NEXT TO MY COLLEAGUE FROM 01:13:45.487 --> 01:13:47.422 align:middle line:85% position:50% size:68% P, G AND E, KEEP IN MIND WE 01:13:47.489 --> 01:13:48.490 align:middle line:85% position:50% size:63% REPRESENT PRETTY MUCH ALL 01:13:48.557 --> 01:13:50.159 align:middle line:85% position:50% size:75% COMPONENTS OF WHAT IT TAKES TO 01:13:50.225 --> 01:13:51.393 align:middle line:85% position:50% size:75% BUILD A HOME. SO THAT INCLUDES 01:13:51.460 --> 01:13:52.461 align:middle line:85% position:50% size:60% UTILITIES. THAT INCLUDES 01:13:52.528 --> 01:13:54.563 align:middle line:85% position:50% size:78% INSURANCE. SO WE WE PICK SIDES, 01:13:54.630 --> 01:13:55.798 align:middle line:85% position:50% size:78% WE PICK SIDES WITH ALL OF THEM. 01:13:55.864 --> 01:13:57.666 align:middle line:85% position:50% size:65% AND WE WANT ALL OF THEM TO 01:13:57.733 --> 01:13:58.801 align:middle line:85% position:50% size:63% THRIVE, TO SUCCEED AND TO 01:13:58.867 --> 01:14:00.736 align:middle line:85% position:50% size:65% PRODUCE THE MOST EFFICIENT 01:14:00.803 --> 01:14:02.104 align:middle line:85% position:50% size:60% PRICE FOR OUR CUSTOMERS. 01:14:02.171 --> 01:14:03.605 align:middle line:85% position:50% size:75% BECAUSE HIGH UTILITY COSTS AND 01:14:03.672 --> 01:14:04.706 align:middle line:85% position:50% size:65% HIGH INSURANCE COSTS MEANS 01:14:04.773 --> 01:14:05.908 align:middle line:85% position:50% size:73% FEWER PEOPLE BUY OUR PRODUCT, 01:14:05.974 --> 01:14:08.577 align:middle line:85% position:50% size:78% WHICH OUR HOMES. SO AS A RESULT 01:14:08.644 --> 01:14:09.745 align:middle line:85% position:50% size:75% OF THAT, WE'RE VERY INTERESTED 01:14:09.812 --> 01:14:11.246 align:middle line:85% position:50% size:63% IN THIS ISSUE BECAUSE THE 01:14:11.313 --> 01:14:12.981 align:middle line:85% position:50% size:78% FUTURE OF HOUSING IS THE FUTURE 01:14:13.048 --> 01:14:14.116 align:middle line:85% position:50% size:68% SUCCESS OF THIS COMMITTEE'S 01:14:14.183 --> 01:14:15.517 align:middle line:85% position:50% size:73% ACTIONS AND THE LEGISLATURE'S 01:14:15.584 --> 01:14:17.619 align:middle line:85% position:50% size:73% ACTIONS. BUT WHERE DO WE SIT? 01:14:17.686 --> 01:14:19.521 align:middle line:85% position:50% size:80% WELL, I'D LIKE TO SAY RIGHT NOW, 01:14:19.588 --> 01:14:21.290 align:middle line:85% position:50% size:68% SINCE YOU ADJOURNED IN YOUR 01:14:21.356 --> 01:14:23.058 align:middle line:85% position:50% size:70% REGULAR SESSION, WE ARE IN A 01:14:23.125 --> 01:14:24.827 align:middle line:85% position:50% size:68% STATE OF GREAT CONCERN. AND 01:14:24.893 --> 01:14:26.195 align:middle line:85% position:50% size:70% I'LL USE THE WORD. IT SOUNDS 01:14:26.261 --> 01:14:27.362 align:middle line:85% position:50% size:68% KIND OF ALARMIST, BUT IT IS 01:14:27.429 --> 01:14:29.198 align:middle line:85% position:50% size:73% WHERE OUR MEMBERS ARE, SO LET 01:14:29.264 --> 01:14:30.299 align:middle line:85% position:50% size:75% ME COMMUNICATE IT. THE WORD IS 01:14:30.365 --> 01:14:32.367 align:middle line:85% position:50% size:78% CATACLYSMIC. SO AS MY COLLEAGUE 01:14:32.434 --> 01:14:34.236 align:middle line:85% position:50% size:58% TO MY LEFT JUST SAID SO 01:14:34.303 --> 01:14:35.337 align:middle line:85% position:50% size:73% ARTICULATELY, MISS POPPY CAME 01:14:35.404 --> 01:14:36.738 align:middle line:85% position:50% size:75% FORWARD AS ON OCTOBER 15TH SHE 01:14:36.805 --> 01:14:38.273 align:middle line:85% position:50% size:75% SENT OUT A LETTER WHICH I HAVE 01:14:38.340 --> 01:14:39.975 align:middle line:85% position:50% size:75% WITH ME HERE, WHICH IS SENT TO 01:14:40.042 --> 01:14:41.844 align:middle line:85% position:50% size:68% ALL OF OUR MEMBERS. AND I'M 01:14:41.910 --> 01:14:42.978 align:middle line:85% position:50% size:80% SURE YOU'VE SEEN COPIES OF THIS. 01:14:43.045 --> 01:14:44.813 align:middle line:85% position:50% size:60% BUT WHEN WE HAVE A GREAT 01:14:44.880 --> 01:14:45.948 align:middle line:85% position:50% size:78% RELATIONSHIP WITH PG AND E, AND 01:14:46.014 --> 01:14:47.182 align:middle line:85% position:50% size:65% SINCE MISS POPPY'S BEEN IN 01:14:47.249 --> 01:14:48.817 align:middle line:85% position:50% size:75% CHARGE OF IT, OUR RELATIONSHIP 01:14:48.884 --> 01:14:50.018 align:middle line:85% position:50% size:75% AND OUR ABILITY TO BUILD, TURN 01:14:50.085 --> 01:14:51.920 align:middle line:85% position:50% size:78% POWER ON AND MOVE OUR HOMES HAS 01:14:51.987 --> 01:14:53.689 align:middle line:85% position:50% size:68% IMPROVED FROM A 5% POSITIVE 01:14:53.755 --> 01:14:55.090 align:middle line:85% position:50% size:75% FACTOR, WHICH IS REALLY LOW TO 01:14:55.157 --> 01:14:57.593 align:middle line:85% position:50% size:75% AN 85% POSITIVE. SO THIS IS NO 01:14:57.659 --> 01:14:58.660 align:middle line:85% position:50% size:63% DISPARAGING REMARK ON OUR 01:14:58.727 --> 01:15:00.162 align:middle line:85% position:50% size:80% LEADERSHIP. IT'S BEEN FANTASTIC. 01:15:00.229 --> 01:15:01.363 align:middle line:85% position:50% size:78% SHE'S BEEN A GREAT PARTNER WITH 01:15:01.430 --> 01:15:03.332 align:middle line:85% position:50% size:65% US. BUT AS WAS SAID BY THE 01:15:03.398 --> 01:15:05.868 align:middle line:85% position:50% size:80% EXPERT TO MY LEFT, YOU'RE RIGHT, 01:15:05.934 --> 01:15:07.402 align:middle line:85% position:50% size:75% THAT LETTER WENT OUT. AND THAT 01:15:07.469 --> 01:15:09.471 align:middle line:85% position:50% size:65% LETTER TO US IS TRULY GAME 01:15:09.538 --> 01:15:10.572 align:middle line:85% position:50% size:68% CHANGING. SO WHAT DOES THAT 01:15:10.639 --> 01:15:12.040 align:middle line:85% position:50% size:63% LETTER REALLY MEAN? WELL, 01:15:12.107 --> 01:15:13.242 align:middle line:85% position:50% size:68% EFFECTIVELY WHAT MISS POPPY 01:15:13.308 --> 01:15:15.277 align:middle line:85% position:50% size:80% SAID WAS, I'M SORRY TO TELL YOU, 01:15:15.344 --> 01:15:16.812 align:middle line:85% position:50% size:70% BUT WE'RE GOING TO GO REALLY 01:15:16.879 --> 01:15:18.614 align:middle line:85% position:50% size:80% SLOW NEXT YEAR. AND YOUR DELAYS. 01:15:18.680 --> 01:15:21.383 align:middle line:85% position:50% size:78% HER WORDS, NOT MINE, RANGE FROM 01:15:21.450 --> 01:15:23.218 align:middle line:85% position:50% size:75% 1 TO 6 MONTHS FOR YOUR HOUSING 01:15:23.285 --> 01:15:25.721 align:middle line:85% position:50% size:75% PROJECTS. WE DON'T HAVE 1 TO 6 01:15:25.787 --> 01:15:27.189 align:middle line:85% position:50% size:78% MONTHS IN THIS MARKET. INTEREST 01:15:27.256 --> 01:15:28.657 align:middle line:85% position:50% size:73% RATES ARE THE HIGHEST THEY'VE 01:15:28.724 --> 01:15:29.658 align:middle line:85% position:50% size:68% BEEN. FORTUNATELY, THE FEDS 01:15:29.725 --> 01:15:30.792 align:middle line:85% position:50% size:70% DIDN'T MOVE ON IT TODAY. BUT 01:15:30.859 --> 01:15:32.594 align:middle line:85% position:50% size:75% REALITY? THE FACT IS, WE DON'T 01:15:32.661 --> 01:15:34.363 align:middle line:85% position:50% size:78% BORROW MONEY AT THE LOW RATE OF 01:15:34.429 --> 01:15:36.565 align:middle line:85% position:50% size:75% 7.5%. WE BORROW MONEY AT 15 TO 01:15:36.632 --> 01:15:37.933 align:middle line:85% position:50% size:65% 18%. WHY? BECAUSE BUILDING 01:15:38.000 --> 01:15:39.101 align:middle line:85% position:50% size:68% HOMES IN CALIFORNIA IS VERY 01:15:39.167 --> 01:15:42.638 align:middle line:85% position:50% size:73% HIGH RISK. SO WHEN P, G AND E 01:15:42.704 --> 01:15:44.606 align:middle line:85% position:50% size:78% AND I'M JUST PICKING ON THEM AS 01:15:44.673 --> 01:15:45.741 align:middle line:85% position:50% size:65% ĐỂ IS AROUND THE CORNER TO 01:15:45.807 --> 01:15:47.643 align:middle line:85% position:50% size:75% HAVING TO DO THIS, IF THEY GET 01:15:47.709 --> 01:15:48.744 align:middle line:85% position:50% size:75% DOWNGRADED EVEN MORE WHEN THEY 01:15:48.810 --> 01:15:50.579 align:middle line:85% position:50% size:73% STEP INTO THIS REQUIREMENT TO 01:15:50.646 --> 01:15:51.914 align:middle line:85% position:50% size:65% SLOW THINGS DOWN, WHICH IS 01:15:51.980 --> 01:15:53.181 align:middle line:85% position:50% size:68% TOTALLY UNDERSTANDABLE, YOU 01:15:53.248 --> 01:15:54.283 align:middle line:85% position:50% size:58% HAVE TO STICK WITH YOUR 01:15:54.349 --> 01:15:55.284 align:middle line:85% position:50% size:73% EXISTING CUSTOMERS. YOU CAN'T 01:15:55.350 --> 01:15:56.418 align:middle line:85% position:50% size:70% FOCUS ON CUSTOMERS YOU DON'T 01:15:56.485 --> 01:15:58.186 align:middle line:85% position:50% size:68% HAVE YET, BUT THOSE ARE OUR 01:15:58.253 --> 01:15:59.955 align:middle line:85% position:50% size:75% CUSTOMERS, THE HOME BUYERS. SO 01:16:00.022 --> 01:16:01.723 align:middle line:85% position:50% size:75% AS A RESULT OF THIS DYNAMIC, A 01:16:01.790 --> 01:16:03.258 align:middle line:85% position:50% size:65% 1 TO 6 MONTH DELAY FOR OUR 01:16:03.325 --> 01:16:04.293 align:middle line:85% position:50% size:63% PROJECTS, JUST THINK THIS 01:16:04.359 --> 01:16:05.661 align:middle line:85% position:50% size:75% THROUGH. YOU WALK THROUGH YOUR 01:16:05.727 --> 01:16:06.762 align:middle line:85% position:50% size:73% HOME, IT'S BEEN APPROVED. YOU 01:16:06.828 --> 01:16:07.863 align:middle line:85% position:50% size:70% LOOK AT IT, EVERYTHING'S THE 01:16:07.930 --> 01:16:09.531 align:middle line:85% position:50% size:75% WAY YOU WANT IT. THEY FIXED UP 01:16:09.598 --> 01:16:11.466 align:middle line:85% position:50% size:78% THE TOUCH UP PAINT AND THEN THE 01:16:11.533 --> 01:16:12.534 align:middle line:85% position:50% size:68% HOME BUILDER SAYS, HEY, I'M 01:16:12.601 --> 01:16:14.469 align:middle line:85% position:50% size:78% SORRY TO INFORM YOU, BUT PG AND 01:16:14.536 --> 01:16:16.405 align:middle line:85% position:50% size:68% E WILL BE OUT IN ABOUT FOUR 01:16:16.471 --> 01:16:17.606 align:middle line:85% position:50% size:73% MONTHS TO TURN ON YOUR POWER. 01:16:17.673 --> 01:16:19.408 align:middle line:85% position:50% size:73% THAT MEANS YOU'RE LIVING IN A 01:16:19.474 --> 01:16:20.609 align:middle line:85% position:50% size:78% HOTEL ROOM FOR FOUR MONTHS. THE 01:16:20.676 --> 01:16:22.411 align:middle line:85% position:50% size:68% RECORD, BY THE WAY, IS NINE 01:16:22.477 --> 01:16:23.545 align:middle line:85% position:50% size:68% MONTHS. THIS IS ALL CHANGED 01:16:23.612 --> 01:16:24.713 align:middle line:85% position:50% size:80% THOUGH IN THE LAST COUPLE YEARS. 01:16:24.780 --> 01:16:26.515 align:middle line:85% position:50% size:73% IT'S A FEW DAYS. WE'VE WORKED 01:16:26.581 --> 01:16:28.483 align:middle line:85% position:50% size:73% THIS OUT WITH PG AND E AND SẼ 01:16:28.550 --> 01:16:29.651 align:middle line:85% position:50% size:68% BUT WITH THIS ANNOUNCEMENT, 01:16:29.718 --> 01:16:31.420 align:middle line:85% position:50% size:78% THAT MEANS WE DON'T KNOW IF THE 01:16:31.486 --> 01:16:32.621 align:middle line:85% position:50% size:80% POWER WILL TURN ON TO OUR HOMES, 01:16:32.688 --> 01:16:34.589 align:middle line:85% position:50% size:78% BECAUSE PG AND E HAS TO GO SLOW 01:16:34.656 --> 01:16:36.391 align:middle line:85% position:50% size:55% AND WE HAVE THIS GREAT 01:16:36.458 --> 01:16:37.459 align:middle line:85% position:50% size:75% PARTNERSHIP. SO WE'RE GOING TO 01:16:37.526 --> 01:16:38.727 align:middle line:85% position:50% size:73% TRY TO WORK THROUGH THIS. BUT 01:16:38.794 --> 01:16:40.429 align:middle line:85% position:50% size:73% THE MORE PROFOUND ONE BESIDES 01:16:40.495 --> 01:16:41.563 align:middle line:85% position:50% size:73% TURNING ON THE POWER SLOW, IS 01:16:41.630 --> 01:16:42.698 align:middle line:85% position:50% size:63% DOES THE PROJECT EVEN GET 01:16:42.764 --> 01:16:44.566 align:middle line:85% position:50% size:73% STARTED? IF PG HAS TO COME TO 01:16:44.633 --> 01:16:46.401 align:middle line:85% position:50% size:78% US SAYING, HEY, WE REALLY CAN'T 01:16:46.468 --> 01:16:47.369 align:middle line:85% position:50% size:65% MOVE ON THE INFRASTRUCTURE 01:16:47.436 --> 01:16:48.437 align:middle line:85% position:50% size:60% BECAUSE WE CAN'T GET THE 01:16:48.503 --> 01:16:49.571 align:middle line:85% position:50% size:73% INVESTMENTS WE NEED. WE DON'T 01:16:49.638 --> 01:16:51.406 align:middle line:85% position:50% size:68% HAVE THE MONEY. THE COST OF 01:16:51.473 --> 01:16:52.541 align:middle line:85% position:50% size:68% MONEY IS TOO HIGH. WE DON'T 01:16:52.607 --> 01:16:53.775 align:middle line:85% position:50% size:78% HAVE THE CREDITWORTHINESS TO DO 01:16:53.842 --> 01:16:55.410 align:middle line:85% position:50% size:73% THIS. THEY RIGHTFULLY HAVE TO 01:16:55.477 --> 01:16:56.578 align:middle line:85% position:50% size:78% SLOW THINGS DOWN. BUT WHAT THAT 01:16:56.645 --> 01:16:58.380 align:middle line:85% position:50% size:70% MEANS IN ENGLISH IS WE DON'T 01:16:58.447 --> 01:16:59.548 align:middle line:85% position:50% size:68% BUILD THE HOMES. SO FOR US, 01:16:59.614 --> 01:17:01.550 align:middle line:85% position:50% size:78% THIS ISN'T A KIND OF A PROBLEM. 01:17:01.616 --> 01:17:03.418 align:middle line:85% position:50% size:78% THIS IS A CRISIS. AND THIS WILL 01:17:03.485 --> 01:17:04.653 align:middle line:85% position:50% size:75% START IN ABOUT 60 DAYS. SO FOR 01:17:04.720 --> 01:17:06.421 align:middle line:85% position:50% size:73% US AND THE BUILDING INDUSTRY, 01:17:06.488 --> 01:17:07.589 align:middle line:85% position:50% size:60% WE'RE VERY INTERESTED IN 01:17:07.656 --> 01:17:09.024 align:middle line:85% position:50% size:75% RESOLUTION AND SOLUTIONS TO BE 01:17:09.091 --> 01:17:10.592 align:middle line:85% position:50% size:75% HERE. I KNOW I FOCUSED ON PGE, 01:17:10.659 --> 01:17:11.893 align:middle line:85% position:50% size:75% BUT SHE HASN'T REALLY PUBLICLY 01:17:11.960 --> 01:17:12.828 align:middle line:85% position:50% size:78% ANNOUNCED THE FACT THAT THEY'RE 01:17:12.894 --> 01:17:14.596 align:middle line:85% position:50% size:75% GOING TO PROBABLY GET HIT WITH 01:17:14.663 --> 01:17:15.931 align:middle line:85% position:50% size:75% A LARGE, SIMILAR KIND OF COST, 01:17:15.998 --> 01:17:17.599 align:middle line:85% position:50% size:70% AND THEY'RE GOING TO HAVE TO 01:17:17.666 --> 01:17:19.434 align:middle line:85% position:50% size:75% TAKE SIMILAR ACTIONS. SO WE'RE 01:17:19.501 --> 01:17:20.635 align:middle line:85% position:50% size:68% CONCERNED ACROSS THE BOARD, 01:17:20.702 --> 01:17:22.971 align:middle line:85% position:50% size:75% THIS IS ABOUT 85% OF THE BUILD 01:17:23.038 --> 01:17:24.172 align:middle line:85% position:50% size:63% OUT IN CALIFORNIA BECAUSE 01:17:24.239 --> 01:17:25.974 align:middle line:85% position:50% size:73% INLAND EMPIRE, ORANGE COUNTY, 01:17:26.041 --> 01:17:27.809 align:middle line:85% position:50% size:75% CENTRAL VALLEY, SACRAMENTO AND 01:17:27.876 --> 01:17:29.211 align:middle line:85% position:50% size:75% EAST BAY ARE OUR BIGGEST BUILD 01:17:29.277 --> 01:17:31.146 align:middle line:85% position:50% size:78% OUT AREAS. SO THIS IS A MASSIVE 01:17:31.213 --> 01:17:33.915 align:middle line:85% position:50% size:75% PART OF THE STATE'S HOUSING. I 01:17:33.982 --> 01:17:35.984 align:middle line:85% position:50% size:78% DO WANT TO SAY, AND I JUST WANT 01:17:36.051 --> 01:17:37.886 align:middle line:85% position:50% size:80% TO SAY THE STAFF REPORT ON THIS. 01:17:37.953 --> 01:17:39.921 align:middle line:85% position:50% size:68% I DID READ IT. I HAD A LONG 01:17:39.988 --> 01:17:40.889 align:middle line:85% position:50% size:60% FLIGHT FROM ATLANTA THIS 01:17:40.956 --> 01:17:42.057 align:middle line:85% position:50% size:75% MORNING. SO I'VE BEEN UP SINCE 01:17:42.124 --> 01:17:44.026 align:middle line:85% position:50% size:78% 330. BUT THE REPORT IS A REALLY 01:17:44.092 --> 01:17:45.160 align:middle line:85% position:50% size:68% WELL DONE AND OUTLINING THE 01:17:45.227 --> 01:17:46.194 align:middle line:85% position:50% size:78% CHALLENGES YOU FACE AS DECISION 01:17:46.261 --> 01:17:47.929 align:middle line:85% position:50% size:63% MAKERS. AND IT'S NOT EASY 01:17:47.996 --> 01:17:48.997 align:middle line:85% position:50% size:60% BECAUSE YOU HAVE TO KEEP 01:17:49.064 --> 01:17:50.065 align:middle line:85% position:50% size:73% INSURERS SOLVENT. YOU HAVE TO 01:17:50.132 --> 01:17:51.266 align:middle line:85% position:50% size:68% KEEP UTILITIES SOLVENT, BUT 01:17:51.333 --> 01:17:52.267 align:middle line:85% position:50% size:73% MOST IMPORTANTLY, YOU HAVE TO 01:17:52.334 --> 01:17:53.935 align:middle line:85% position:50% size:78% KEEP CONSUMERS HAPPY. THOSE ARE 01:17:54.002 --> 01:17:56.238 align:middle line:85% position:50% size:78% THE PEOPLE WHO ELECT YOU. SO WE 01:17:56.304 --> 01:17:57.372 align:middle line:85% position:50% size:65% DESIRE TO DO THAT WITH YOU 01:17:57.439 --> 01:17:58.673 align:middle line:85% position:50% size:60% BECAUSE WE HAVE THE SAME 01:17:58.740 --> 01:18:00.242 align:middle line:85% position:50% size:73% CONSTITUENT IN THIS CASE, THE 01:18:00.308 --> 01:18:01.910 align:middle line:85% position:50% size:70% IDENTICAL CONSTITUENT. SO MY 01:18:01.977 --> 01:18:03.779 align:middle line:85% position:50% size:68% HOPE I'LL JUST SAY THIS I'M 01:18:03.845 --> 01:18:05.881 align:middle line:85% position:50% size:78% HOPEFUL THAT WHAT WE'RE WARRING 01:18:05.947 --> 01:18:07.149 align:middle line:85% position:50% size:73% FACTIONS MIGHT COME TOGETHER. 01:18:07.215 --> 01:18:09.117 align:middle line:85% position:50% size:55% THOSE ARE INSURERS AND 01:18:09.184 --> 01:18:10.952 align:middle line:85% position:50% size:73% UTILITIES, AND THEY MIGHT SIT 01:18:11.019 --> 01:18:12.354 align:middle line:85% position:50% size:70% DOWN AND TRY TO COME FORWARD 01:18:12.421 --> 01:18:14.322 align:middle line:85% position:50% size:78% WITH SOME SORT OF A PATH TO YOU 01:18:14.389 --> 01:18:15.624 align:middle line:85% position:50% size:73% ON A PROCESS THAT MIGHT WORK. 01:18:15.690 --> 01:18:17.292 align:middle line:85% position:50% size:75% I'LL ALSO ASK, JUST BECAUSE WE 01:18:17.359 --> 01:18:19.194 align:middle line:85% position:50% size:75% DON'T HAVE TIME, THAT YOU MOVE 01:18:19.261 --> 01:18:20.996 align:middle line:85% position:50% size:75% QUICKER THAN LATER, I'LL GO SO 01:18:21.063 --> 01:18:22.831 align:middle line:85% position:50% size:65% BOLDLY AS TO SAY THIS WORD 01:18:22.898 --> 01:18:25.000 align:middle line:85% position:50% size:73% SPECIAL SESSION. JUST BECAUSE 01:18:25.067 --> 01:18:26.201 align:middle line:85% position:50% size:78% WE HAVE A GOVERNOR WHO WANTS TO 01:18:26.268 --> 01:18:27.969 align:middle line:85% position:50% size:70% DO SOMETHING, NOT SAYING THE 01:18:28.036 --> 01:18:29.137 align:middle line:85% position:50% size:73% NEXT GOVERNOR, HE OR HE MIGHT 01:18:29.204 --> 01:18:31.006 align:middle line:85% position:50% size:73% NOT WANT TO DO SOMETHING, BUT 01:18:31.073 --> 01:18:31.973 align:middle line:85% position:50% size:70% THIS GOVERNOR HAS CONFRONTED 01:18:32.040 --> 01:18:33.208 align:middle line:85% position:50% size:80% THIS FOR SEVEN AND A HALF YEARS. 01:18:33.275 --> 01:18:35.143 align:middle line:85% position:50% size:70% AND ALL OF YOU AND THANK YOU 01:18:35.210 --> 01:18:36.344 align:middle line:85% position:50% size:78% FOR HOLDING THESE HEARINGS HAVE 01:18:36.411 --> 01:18:38.013 align:middle line:85% position:50% size:73% BEEN CONFRONTING THIS FOR THE 01:18:38.080 --> 01:18:39.114 align:middle line:85% position:50% size:68% LAST FIVE, SIX, EIGHT YEARS 01:18:39.181 --> 01:18:40.115 align:middle line:85% position:50% size:68% YOURSELVES. YOU HAVE 20 NEW 01:18:40.182 --> 01:18:41.216 align:middle line:85% position:50% size:78% LEGISLATORS COMING IN. I'M SURE 01:18:41.283 --> 01:18:42.984 align:middle line:85% position:50% size:70% THEY'RE EQUALLY AS BRIGHT AS 01:18:43.051 --> 01:18:44.152 align:middle line:85% position:50% size:73% YOU ARE, BUT THEY'RE GOING TO 01:18:44.219 --> 01:18:45.320 align:middle line:85% position:50% size:73% BE SOMEWHAT CONFOUNDED BY THE 01:18:45.387 --> 01:18:47.022 align:middle line:85% position:50% size:78% COMPLEXITY OF THIS ISSUE. OKAY. 01:18:47.089 --> 01:18:48.056 align:middle line:85% position:50% size:65% THEY'RE NOT, BUT LET'S SAY 01:18:48.123 --> 01:18:49.191 align:middle line:85% position:50% size:68% THEY'RE CLOSE TO IT. SORRY, 01:18:49.257 --> 01:18:51.026 align:middle line:85% position:50% size:68% MISS PAPPIN, BUT WE WANT TO 01:18:51.093 --> 01:18:52.194 align:middle line:85% position:50% size:75% MAKE SURE WE THINK WE HAVE THE 01:18:52.260 --> 01:18:54.129 align:middle line:85% position:50% size:78% ABILITY TO GET THIS DONE SOONER 01:18:54.196 --> 01:18:55.130 align:middle line:85% position:50% size:75% THAN LATER, ESPECIALLY BECAUSE 01:18:55.197 --> 01:18:56.298 align:middle line:85% position:50% size:78% HOUSING IS PUT ON HOLD STARTING 01:18:56.364 --> 01:18:58.033 align:middle line:85% position:50% size:70% JANUARY 2ND. SO LAST THING I 01:18:58.100 --> 01:19:00.001 align:middle line:85% position:50% size:75% JUST WANT TO SAY IS THANK YOU. 01:19:00.068 --> 01:19:01.069 align:middle line:85% position:50% size:63% THANK YOU FOR HAVING THIS 01:19:01.136 --> 01:19:02.170 align:middle line:85% position:50% size:73% HEARING. THANK YOU FOR MAKING 01:19:02.237 --> 01:19:04.573 align:middle line:85% position:50% size:70% THIS A PRIORITY. AGAIN, AS I 01:19:04.639 --> 01:19:06.441 align:middle line:85% position:50% size:75% SAID BEFORE, WE HAVE ALLIES ON 01:19:06.508 --> 01:19:08.376 align:middle line:85% position:50% size:70% ALL SIDES OF THIS. AND SO WE 01:19:08.443 --> 01:19:09.611 align:middle line:85% position:50% size:78% REALLY WANT TO COME FORWARD AND 01:19:09.678 --> 01:19:11.379 align:middle line:85% position:50% size:68% BE PART OF THE SOLUTION. SO 01:19:11.446 --> 01:19:12.881 align:middle line:85% position:50% size:70% ANYTHING WE CAN DO AT CBA TO 01:19:12.948 --> 01:19:14.349 align:middle line:85% position:50% size:75% HELP IN THIS DISCUSSION, WE'RE 01:19:14.416 --> 01:19:15.550 align:middle line:85% position:50% size:75% HERE TO HELP. THANK YOU, MADAM 01:19:15.617 --> 01:19:18.286 align:middle line:85% position:50% size:78% CHAIR. THANK YOU, MR. DUNMEYER. 01:19:18.353 --> 01:19:21.156 align:middle line:85% position:50% size:78% MR. JONES, THANK YOU VERY MUCH, 01:19:21.223 --> 01:19:22.591 align:middle line:85% position:50% size:68% MADAM CHAIR, MEMBERS OF THE 01:19:22.657 --> 01:19:24.726 align:middle line:85% position:50% size:78% COMMITTEE AND I TOO, WOULD LIKE 01:19:24.793 --> 01:19:25.927 align:middle line:85% position:50% size:73% TO THANK YOU FOR HOLDING THIS 01:19:25.994 --> 01:19:27.262 align:middle line:85% position:50% size:70% HEARING. IT'S VERY IMPORTANT 01:19:27.329 --> 01:19:29.498 align:middle line:85% position:50% size:73% AND VERY TIMELY. AND IT WAS A 01:19:29.564 --> 01:19:30.932 align:middle line:85% position:50% size:63% GREAT BACKGROUND PAPER. I 01:19:30.999 --> 01:19:32.267 align:middle line:85% position:50% size:75% THOUGHT IT WAS THE MOST ONE OF 01:19:32.334 --> 01:19:33.768 align:middle line:85% position:50% size:78% THE MORE INFORMATIVE ONES I'VE. 01:19:33.835 --> 01:19:35.537 align:middle line:85% position:50% size:68% I'VE READ ON A VERY COMPLEX 01:19:35.604 --> 01:19:38.773 align:middle line:85% position:50% size:73% ISSUE. KUDOS AS ALWAYS TO OUR 01:19:38.840 --> 01:19:40.642 align:middle line:85% position:50% size:68% INCREDIBLE, YES, INCREDIBLE 01:19:40.709 --> 01:19:43.512 align:middle line:85% position:50% size:78% CONSULTANTS, MISS CHABOT. THANK 01:19:43.578 --> 01:19:46.715 align:middle line:85% position:50% size:70% YOU. YEAH. SO I'M JANICE MỘT 01:19:46.781 --> 01:19:48.116 align:middle line:85% position:50% size:55% JONES. I REPRESENT THE 01:19:48.183 --> 01:19:49.885 align:middle line:85% position:50% size:70% INDEPENDENT ENERGY PRODUCERS 01:19:49.951 --> 01:19:51.453 align:middle line:85% position:50% size:68% ASSOCIATION. WE REPRESENT A 01:19:51.520 --> 01:19:53.555 align:middle line:85% position:50% size:78% WIDE RANGE OF RENEWABLES SOLAR, 01:19:53.622 --> 01:19:55.724 align:middle line:85% position:50% size:73% WIND, GEOTHERMAL, BIOMASS, AS 01:19:55.790 --> 01:19:57.025 align:middle line:85% position:50% size:73% WELL AS SIGNIFICANT AMOUNT OF 01:19:57.092 --> 01:19:58.627 align:middle line:85% position:50% size:78% THE GAS FLEET. AND WE WERE SOME 01:19:58.693 --> 01:20:00.462 align:middle line:85% position:50% size:63% OF THE FIRST FOLKS IN THE 01:20:00.529 --> 01:20:01.530 align:middle line:85% position:50% size:78% STORAGE BUSINESS. SO WE'VE BEEN 01:20:01.596 --> 01:20:03.765 align:middle line:85% position:50% size:75% DOING THIS SINCE 1982. WE WORK 01:20:03.832 --> 01:20:05.901 align:middle line:85% position:50% size:75% IN ALL THE UTILITIES. CCAS ARE 01:20:05.967 --> 01:20:08.670 align:middle line:85% position:50% size:63% OUR CUSTOMERS. WE'RE VERY 01:20:08.737 --> 01:20:11.540 align:middle line:85% position:50% size:75% ACTIVE IN BASICALLY GENERATING 01:20:11.606 --> 01:20:15.177 align:middle line:85% position:50% size:73% AND POWER TO CALIFORNIANS. MY 01:20:15.243 --> 01:20:16.978 align:middle line:85% position:50% size:58% BOTTOM LINE IS WILDFIRE 01:20:17.045 --> 01:20:19.080 align:middle line:85% position:50% size:70% LIABILITY AND THE UNDERLYING 01:20:19.147 --> 01:20:20.882 align:middle line:85% position:50% size:75% UTILITY, FINANCIAL INSTABILITY 01:20:20.949 --> 01:20:23.385 align:middle line:85% position:50% size:60% IS EXISTENTIAL THREAT TO 01:20:23.451 --> 01:20:25.520 align:middle line:85% position:50% size:75% CALIFORNIA'S GOALS OF BRINGING 01:20:25.587 --> 01:20:26.988 align:middle line:85% position:50% size:60% RELIABLE, AFFORDABLE AND 01:20:27.055 --> 01:20:28.423 align:middle line:85% position:50% size:65% SUSTAINABLE ELECTRICITY TO 01:20:28.490 --> 01:20:31.359 align:middle line:85% position:50% size:63% RATEPAYERS, REDUCING THAT 01:20:31.426 --> 01:20:33.828 align:middle line:85% position:50% size:75% LIABILITY, AND STABILIZING THE 01:20:33.895 --> 01:20:34.996 align:middle line:85% position:50% size:70% FINANCIAL HEALTH NEEDS TO BE 01:20:35.063 --> 01:20:37.432 align:middle line:85% position:50% size:75% THE TOP ENERGY GOAL IN MEETING 01:20:37.499 --> 01:20:40.335 align:middle line:85% position:50% size:68% THIS THREAT. WHY AM I HERE? 01:20:40.402 --> 01:20:41.937 align:middle line:85% position:50% size:78% WELL, THE SESSION ENDED WITHOUT 01:20:42.003 --> 01:20:43.572 align:middle line:85% position:50% size:65% A MECHANISM TO ADDRESS THE 01:20:43.638 --> 01:20:45.340 align:middle line:85% position:50% size:55% WILDFIRE LIABILITY AND 01:20:45.407 --> 01:20:47.509 align:middle line:85% position:50% size:78% ASSOCIATED CREDIT TO UTILITIES. 01:20:47.576 --> 01:20:49.744 align:middle line:85% position:50% size:68% AS YOU'VE HEARD, THE CREDIT 01:20:49.811 --> 01:20:51.880 align:middle line:85% position:50% size:73% AGENCIES REACTED IMMEDIATELY, 01:20:51.947 --> 01:20:54.382 align:middle line:85% position:50% size:80% DOWNGRADING BOTH PGE AND EDISON, 01:20:54.449 --> 01:20:55.483 align:middle line:85% position:50% size:55% INCREASING THE COST OF 01:20:55.550 --> 01:20:56.484 align:middle line:85% position:50% size:73% BORROWING FOR INTERCONNECTION 01:20:56.551 --> 01:20:58.753 align:middle line:85% position:50% size:75% AND TRANSMISSION. THIS HAS HAD 01:20:58.820 --> 01:21:00.488 align:middle line:85% position:50% size:65% A REAL NEGATIVE REAL WORLD 01:21:00.555 --> 01:21:02.290 align:middle line:85% position:50% size:70% EFFECT ON INDEPENDENT ENERGY 01:21:02.357 --> 01:21:04.459 align:middle line:85% position:50% size:68% SUPPLIERS DOING BUSINESS IN 01:21:04.526 --> 01:21:05.927 align:middle line:85% position:50% size:75% CALIFORNIA AND SUPPLYING CLEAN 01:21:05.994 --> 01:21:08.129 align:middle line:85% position:50% size:68% AND RELIABLE ELECTRICITY TO 01:21:08.196 --> 01:21:09.864 align:middle line:85% position:50% size:75% CUSTOMERS, WHETHER THEY'RE PGE 01:21:09.931 --> 01:21:14.569 align:middle line:85% position:50% size:70% EDISON'S CCAS OR POS. AS YOU 01:21:14.636 --> 01:21:16.504 align:middle line:85% position:50% size:78% HEARD, 68 CLEAN ENERGY PROJECTS 01:21:16.571 --> 01:21:18.506 align:middle line:85% position:50% size:73% HAVE GOTTEN A NOTICE FROM PGE 01:21:18.573 --> 01:21:19.608 align:middle line:85% position:50% size:68% INDICATING THEIR PREVIOUSLY 01:21:19.674 --> 01:21:22.444 align:middle line:85% position:50% size:75% SCHEDULED INTERCONNECTIONS FOR 01:21:22.510 --> 01:21:24.579 align:middle line:85% position:50% size:75% 2027 ARE GOING TO BE DEFERRED, 01:21:24.646 --> 01:21:27.148 align:middle line:85% position:50% size:78% AND THIS IS SERIOUSLY AFFECTING 01:21:27.215 --> 01:21:29.618 align:middle line:85% position:50% size:65% DEVELOPMENT SCHEDULES. AND 01:21:29.684 --> 01:21:32.487 align:middle line:85% position:50% size:70% THESE IT'S VERY IMPORTANT TO 01:21:32.554 --> 01:21:34.322 align:middle line:85% position:50% size:73% UNDERSCORE, AS THESE PROJECTS 01:21:34.389 --> 01:21:37.225 align:middle line:85% position:50% size:63% WERE PART OF THE MID-TERM 01:21:37.292 --> 01:21:39.160 align:middle line:85% position:50% size:75% RELIABILITY PROCUREMENT NEEDED 01:21:39.227 --> 01:21:40.428 align:middle line:85% position:50% size:65% TO MEET FUTURE RELIABILITY 01:21:40.495 --> 01:21:43.665 align:middle line:85% position:50% size:75% NEEDS STARTING IN 2030, AND SO 01:21:43.732 --> 01:21:47.502 align:middle line:85% position:50% size:75% THAT THESE ARE TIMED IN SUCH A 01:21:47.569 --> 01:21:49.137 align:middle line:85% position:50% size:68% WAY THAT WE WE REALLY CAN'T 01:21:49.204 --> 01:21:51.606 align:middle line:85% position:50% size:70% SLOW DOWN. PGE HAS INDICATED 01:21:51.673 --> 01:21:53.441 align:middle line:85% position:50% size:73% THEIR TRIMMING $2 BILLION OUT 01:21:53.508 --> 01:21:55.277 align:middle line:85% position:50% size:73% OF THE 13.2 BILLION. THAT WAS 01:21:55.343 --> 01:21:57.078 align:middle line:85% position:50% size:73% PART OF THEIR ORIGINAL CREDIT 01:21:57.145 --> 01:22:00.649 align:middle line:85% position:50% size:68% PLAN AND INTERCONNECTION OF 01:22:00.715 --> 01:22:01.416 align:middle line:85% position:50% size:65% RESIDENTIAL HOUSING, LARGE 01:22:01.483 --> 01:22:02.784 align:middle line:85% position:50% size:60% LOADS. AND OBVIOUSLY, MY 01:22:02.851 --> 01:22:04.586 align:middle line:85% position:50% size:70% MEMBERS ARE AFFECTED BY THIS 01:22:04.653 --> 01:22:05.987 align:middle line:85% position:50% size:75% DECISION. AND YOU'VE HEARD THE 01:22:06.054 --> 01:22:07.422 align:middle line:85% position:50% size:80% REASON FOR THE CREDIT DOWNGRADE. 01:22:07.489 --> 01:22:08.923 align:middle line:85% position:50% size:58% THEY'RE CONCERNED ABOUT 01:22:08.990 --> 01:22:09.958 align:middle line:85% position:50% size:58% BORROWING MONEY AT HIGH 01:22:10.025 --> 01:22:11.359 align:middle line:85% position:50% size:73% INTEREST RATES, LEADS TO LONG 01:22:11.426 --> 01:22:16.131 align:middle line:85% position:50% size:68% TERM AFFORDABILITY. SO JUST 01:22:16.197 --> 01:22:17.565 align:middle line:85% position:50% size:78% BRIEFLY TO EXPLAIN HOW ALL THIS 01:22:17.632 --> 01:22:19.701 align:middle line:85% position:50% size:75% WORKS IS THE CALIFORNIA ENERGY 01:22:19.768 --> 01:22:21.903 align:middle line:85% position:50% size:68% COMMISSION, PUC AND THE ISO 01:22:21.970 --> 01:22:23.305 align:middle line:85% position:50% size:78% IDENTIFY. WE SPENT LOTS OF TIME 01:22:23.371 --> 01:22:25.840 align:middle line:85% position:50% size:73% ON PLANNING, FUTURE NEEDS AND 01:22:25.907 --> 01:22:27.309 align:middle line:85% position:50% size:63% NECESSARY TRANSMISSION TO 01:22:27.375 --> 01:22:29.411 align:middle line:85% position:50% size:73% DELIVER RESOURCES. THE ENERGY 01:22:29.477 --> 01:22:30.545 align:middle line:85% position:50% size:58% PRODUCERS, WE LIVE IN A 01:22:30.612 --> 01:22:31.746 align:middle line:85% position:50% size:73% COMPETITIVE MARKET, SO THAT'S 01:22:31.813 --> 01:22:34.516 align:middle line:85% position:50% size:78% PUT OUT TO BID. AND PEOPLE MAKE 01:22:34.582 --> 01:22:35.517 align:middle line:85% position:50% size:48% THOSE BIDS BASED ON 01:22:35.583 --> 01:22:38.753 align:middle line:85% position:50% size:70% CREDITWORTHY PARTIES AT VERY 01:22:38.820 --> 01:22:39.854 align:middle line:85% position:50% size:60% SPECIFIC TIMES. AND THIS 01:22:39.921 --> 01:22:42.357 align:middle line:85% position:50% size:70% INCLUDES, OBVIOUSLY THE ISOS 01:22:42.424 --> 01:22:45.260 align:middle line:85% position:50% size:75% AND THE THESE RESOURCES DEPEND 01:22:45.327 --> 01:22:47.829 align:middle line:85% position:50% size:75% ON A TIMELY DELIVERY. WE'RE UP 01:22:47.896 --> 01:22:50.298 align:middle line:85% position:50% size:78% AGAINST SOME PRETTY SIGNIFICANT 01:22:50.365 --> 01:22:51.766 align:middle line:85% position:50% size:73% TIME CONSTRAINTS, ONE OF THEM 01:22:51.833 --> 01:22:53.868 align:middle line:85% position:50% size:70% BEING THE SOLAR TAX CREDITS, 01:22:53.935 --> 01:22:56.805 align:middle line:85% position:50% size:78% WHICH BASICALLY EXPIRE IN 2030, 01:22:56.871 --> 01:22:59.040 align:middle line:85% position:50% size:78% MISS THAT DATE. GAME OVER. IT'S 01:22:59.107 --> 01:23:01.076 align:middle line:85% position:50% size:75% AT LEAST A 30% INCREASE IN THE 01:23:01.142 --> 01:23:03.611 align:middle line:85% position:50% size:70% COST OF THOSE UNITS. SO THAT 01:23:03.678 --> 01:23:05.246 align:middle line:85% position:50% size:73% THAT'S A SIGNIFICANT PROBLEM. 01:23:05.313 --> 01:23:07.682 align:middle line:85% position:50% size:68% AND I WOULD JUST NOTE THIS, 01:23:07.749 --> 01:23:10.118 align:middle line:85% position:50% size:73% LAST WEEK IT WAS ANNOUNCED TO 01:23:10.185 --> 01:23:11.886 align:middle line:85% position:50% size:65% CLARIFY THAT THE STRATEGIC 01:23:11.953 --> 01:23:12.954 align:middle line:85% position:50% size:60% ENERGY RESERVE, YOU WERE 01:23:13.021 --> 01:23:14.622 align:middle line:85% position:50% size:73% BRIEFED, I THINK IN MAY ABOUT 01:23:14.689 --> 01:23:16.224 align:middle line:85% position:50% size:63% THE FACT THAT WE MET THIS 01:23:16.291 --> 01:23:17.292 align:middle line:85% position:50% size:50% SUMMER. WE WERE FINE 01:23:17.359 --> 01:23:19.160 align:middle line:85% position:50% size:68% RELIABILITY WISE. WE HAD AN 01:23:19.227 --> 01:23:20.895 align:middle line:85% position:50% size:78% INSURANCE POLICY, THE STRATEGIC 01:23:20.962 --> 01:23:23.064 align:middle line:85% position:50% size:63% ENERGY RESERVE, WHICH WAS 01:23:23.131 --> 01:23:25.600 align:middle line:85% position:50% size:78% 3000MW OF SOME OLDER RESOURCES. 01:23:25.667 --> 01:23:27.369 align:middle line:85% position:50% size:75% THEY ARE NOW BEING MOTHBALLED. 01:23:27.435 --> 01:23:29.237 align:middle line:85% position:50% size:73% SO THEY'RE GONE FOR NEXT YEAR 01:23:29.304 --> 01:23:30.939 align:middle line:85% position:50% size:70% AND FOR PROBABLY ALL TIME TO 01:23:31.005 --> 01:23:33.141 align:middle line:85% position:50% size:78% COME. BUT THE POINT IS, IS THAT 01:23:33.208 --> 01:23:35.677 align:middle line:85% position:50% size:75% THEY WERE GOING TO BE REPLACED 01:23:35.744 --> 01:23:38.546 align:middle line:85% position:50% size:60% WITH WITH BACK WITH MORE 01:23:38.613 --> 01:23:39.781 align:middle line:85% position:50% size:78% ADDITIONAL RELIABILITY PRODUCTS 01:23:39.848 --> 01:23:42.150 align:middle line:85% position:50% size:68% COMING OUT OF THIS MID-TERM 01:23:42.217 --> 01:23:45.387 align:middle line:85% position:50% size:73% RELIABILITY RELIABILITY PLAN. 01:23:45.453 --> 01:23:47.956 align:middle line:85% position:50% size:78% SO IMMEDIATE LEGISLATIVE ACTION 01:23:48.022 --> 01:23:49.657 align:middle line:85% position:50% size:70% NEEDS TO BE TAKEN ON THIS TO 01:23:49.724 --> 01:23:52.193 align:middle line:85% position:50% size:80% STABILIZE THE CALIFORNIA MARKET. 01:23:52.260 --> 01:23:54.329 align:middle line:85% position:50% size:70% SO WE CAN BASICALLY MEET OUR 01:23:54.396 --> 01:23:56.498 align:middle line:85% position:50% size:70% AFFORDABILITY NEEDS RELIABLY 01:23:56.564 --> 01:23:59.768 align:middle line:85% position:50% size:78% AND WITH SUSTAINABLE RESOURCES. 01:23:59.834 --> 01:24:03.004 align:middle line:85% position:50% size:78% AND TIME IS NOT ON OUR SIDE. SO 01:24:03.071 --> 01:24:05.907 align:middle line:85% position:50% size:73% I, I AGREE WITH MY COLLEAGUES 01:24:05.974 --> 01:24:07.709 align:middle line:85% position:50% size:70% INTERPRETATION OF HOW QUICK, 01:24:07.776 --> 01:24:12.046 align:middle line:85% position:50% size:73% QUICK NEEDS TO BE. THANK YOU. 01:24:12.113 --> 01:24:15.250 align:middle line:85% position:50% size:70% NEXT UP, MR. ARMSTRONG. GOOD 01:24:15.316 --> 01:24:17.419 align:middle line:85% position:50% size:75% AFTERNOON, CHAIR PETRIE-NORRIS 01:24:17.485 --> 01:24:19.521 align:middle line:85% position:50% size:73% AND MEMBERS OF THE COMMITTEE. 01:24:19.587 --> 01:24:20.755 align:middle line:85% position:50% size:78% MY NAME IS RALPH ARMSTRONG. I'M 01:24:20.822 --> 01:24:21.656 align:middle line:85% position:50% size:63% SENIOR ASSISTANT BUSINESS 01:24:21.723 --> 01:24:22.824 align:middle line:85% position:50% size:65% MANAGER WITH INTERNATIONAL 01:24:22.891 --> 01:24:23.925 align:middle line:85% position:50% size:63% BROTHERHOOD OF ELECTRICAL 01:24:23.992 --> 01:24:27.128 align:middle line:85% position:50% size:78% WORKERS 1245 WE REPRESENT ABOUT 01:24:27.195 --> 01:24:29.264 align:middle line:85% position:50% size:75% 30,000 MEN AND WOMEN OR 30,000 01:24:29.330 --> 01:24:31.466 align:middle line:85% position:50% size:55% BELLY BUTTONS THAT ARE 01:24:31.533 --> 01:24:33.268 align:middle line:85% position:50% size:63% RESPONSIBLE FOR BUILDING, 01:24:33.334 --> 01:24:35.036 align:middle line:85% position:50% size:73% MAINTAINING AND OPERATING THE 01:24:35.103 --> 01:24:35.703 align:middle line:85% position:50% size:70% ELECTRICAL INFRASTRUCTURE IN 01:24:35.770 --> 01:24:37.906 align:middle line:85% position:50% size:70% THE STATE OF CALIFORNIA. I'M 01:24:37.972 --> 01:24:40.074 align:middle line:85% position:50% size:60% ALSO A DESCENDANT SENATE 01:24:40.141 --> 01:24:41.242 align:middle line:85% position:50% size:68% APPOINTEE TO THE CALIFORNIA 01:24:41.309 --> 01:24:42.010 align:middle line:85% position:50% size:78% WILDFIRE SAFETY ADVISORY BOARD, 01:24:42.076 --> 01:24:44.112 align:middle line:85% position:50% size:73% WHERE I SPEND MOST OF MY TIME 01:24:44.179 --> 01:24:46.581 align:middle line:85% position:50% size:78% DEALING WITH GRID HARDENING AND 01:24:46.648 --> 01:24:47.715 align:middle line:85% position:50% size:63% VEGETATION MANAGEMENT AND 01:24:47.782 --> 01:24:50.151 align:middle line:85% position:50% size:65% SAFETY. SO I'M HERE TODAY, 01:24:50.218 --> 01:24:51.286 align:middle line:85% position:50% size:73% THOUGH, SPEAKING ON BEHALF OF 01:24:51.352 --> 01:24:53.455 align:middle line:85% position:50% size:73% LABOR, THE LACK OF MEANINGFUL 01:24:53.521 --> 01:24:55.190 align:middle line:85% position:50% size:58% WILDFIRE RELIEF FOR THE 01:24:55.256 --> 01:24:56.324 align:middle line:85% position:50% size:63% CALIFORNIA INVESTOR OWNED 01:24:56.391 --> 01:24:58.092 align:middle line:85% position:50% size:70% UTILITIES COULD HAVE SERIOUS 01:24:58.159 --> 01:24:59.194 align:middle line:85% position:50% size:70% CONSEQUENCES FOR THE MEN AND 01:24:59.260 --> 01:25:00.595 align:middle line:85% position:50% size:75% WOMEN THAT KEEP THE LIGHTS ON, 01:25:00.662 --> 01:25:01.663 align:middle line:85% position:50% size:63% MAINTAIN THE MAINTAIN OUR 01:25:01.729 --> 01:25:02.797 align:middle line:85% position:50% size:63% ENERGY INFRASTRUCTURE AND 01:25:02.864 --> 01:25:05.266 align:middle line:85% position:50% size:75% RESTORE POWER AFTER DISASTERS. 01:25:05.333 --> 01:25:07.469 align:middle line:85% position:50% size:63% IBEW 1245 MEMBERS ARE NOT 01:25:07.535 --> 01:25:10.004 align:middle line:85% position:50% size:78% RESPONSIBLE FOR WILDFIRE POLICY 01:25:10.071 --> 01:25:12.106 align:middle line:85% position:50% size:70% DECISIONS, YET THEY BEAR THE 01:25:12.173 --> 01:25:13.208 align:middle line:85% position:50% size:70% CONSEQUENCES THROUGH REDUCED 01:25:13.274 --> 01:25:15.009 align:middle line:85% position:50% size:70% UTILITY INVESTMENTS, DELAYED 01:25:15.076 --> 01:25:16.845 align:middle line:85% position:50% size:78% INFRASTRUCTURE PROJECTS, HIRING 01:25:16.911 --> 01:25:18.346 align:middle line:85% position:50% size:75% FREEZES, LAYOFFS, WHICH WE ARE 01:25:18.413 --> 01:25:20.048 align:middle line:85% position:50% size:65% IN THE MIDST OF RIGHT NOW. 01:25:20.114 --> 01:25:21.149 align:middle line:85% position:50% size:68% WE'RE GOING TO SEE PROBABLY 01:25:21.216 --> 01:25:23.351 align:middle line:85% position:50% size:78% ROUGHLY ABOUT A THOUSAND PEOPLE 01:25:23.418 --> 01:25:24.686 align:middle line:85% position:50% size:65% LAID OFF, RIGHT, RIGHT NOW 01:25:24.752 --> 01:25:25.854 align:middle line:85% position:50% size:58% THROUGH THE THROUGH THE 01:25:25.920 --> 01:25:28.723 align:middle line:85% position:50% size:48% HOLIDAYS, AND FEWER 01:25:28.790 --> 01:25:29.958 align:middle line:85% position:50% size:73% OPPORTUNITIES FOR APPRENTICES 01:25:30.024 --> 01:25:31.593 align:middle line:85% position:50% size:63% IN THE NEXT GENERATION OF 01:25:31.659 --> 01:25:33.394 align:middle line:85% position:50% size:68% SKILLED, SKILLED WORKERS. I 01:25:33.461 --> 01:25:34.496 align:middle line:85% position:50% size:68% WANT TO EMPHASIZE SOMETHING 01:25:34.562 --> 01:25:35.497 align:middle line:85% position:50% size:60% HERE THAT THE ELECTRICAL 01:25:35.563 --> 01:25:36.598 align:middle line:85% position:50% size:75% INFRASTRUCTURE THAT CALIFORNIA 01:25:36.664 --> 01:25:39.133 align:middle line:85% position:50% size:65% DEPENDS ON IS BEING BUILT, 01:25:39.200 --> 01:25:40.602 align:middle line:85% position:50% size:73% MAINTAINED, AND PROTECTED AND 01:25:40.668 --> 01:25:41.402 align:middle line:85% position:50% size:75% PROTECTED BY THE MEN AND WOMEN 01:25:41.469 --> 01:25:44.172 align:middle line:85% position:50% size:78% OF CALIFORNIA. THESE CALIFORNIA 01:25:44.239 --> 01:25:45.940 align:middle line:85% position:50% size:65% WORKERS RAISING CALIFORNIA 01:25:46.007 --> 01:25:47.442 align:middle line:85% position:50% size:70% FAMILIES AND CONTRIBUTING TO 01:25:47.509 --> 01:25:49.210 align:middle line:85% position:50% size:78% CALIFORNIA'S ECONOMY. THESE ARE 01:25:49.277 --> 01:25:51.346 align:middle line:85% position:50% size:75% GOOD PAYING, FAMILY SUPPORTING 01:25:51.412 --> 01:25:53.181 align:middle line:85% position:50% size:63% UNION JOBS. THE WAGES OUR 01:25:53.248 --> 01:25:54.616 align:middle line:85% position:50% size:63% MEMBERS EARN DON'T SIMPLY 01:25:54.682 --> 01:25:56.117 align:middle line:85% position:50% size:68% DISAPPEAR INTO THE ECONOMY. 01:25:56.184 --> 01:25:57.886 align:middle line:85% position:50% size:70% THEY ARE SPENT RIGHT HERE IN 01:25:57.952 --> 01:25:59.287 align:middle line:85% position:50% size:75% CALIFORNIA. THEY SUPPORT LOCAL 01:25:59.354 --> 01:26:01.089 align:middle line:85% position:50% size:60% BUSINESSES, RESTAURANTS, 01:26:01.155 --> 01:26:02.156 align:middle line:85% position:50% size:60% GROCERY STORES, HOUSING, 01:26:02.223 --> 01:26:04.292 align:middle line:85% position:50% size:75% SCHOOLS AND COMMUNITIES. EVERY 01:26:04.359 --> 01:26:05.860 align:middle line:85% position:50% size:75% PAYCHECK HELPS CIRCULATE MONEY 01:26:05.927 --> 01:26:07.629 align:middle line:85% position:50% size:78% THROUGHOUT THE STATE'S ECONOMY. 01:26:07.695 --> 01:26:08.997 align:middle line:85% position:50% size:75% WHEN THESE JOBS ARE PROTECTED, 01:26:09.063 --> 01:26:10.832 align:middle line:85% position:50% size:70% CALIFORNIA FAMILIES BENEFIT. 01:26:10.899 --> 01:26:12.267 align:middle line:85% position:50% size:78% LOCAL BUSINESSES BENEFIT IN THE 01:26:12.333 --> 01:26:14.469 align:middle line:85% position:50% size:78% STATE AS A WHOLE. BENEFITS. OUR 01:26:14.536 --> 01:26:15.637 align:middle line:85% position:50% size:73% MEMBERS ARE ALSO ON THE FRONT 01:26:15.703 --> 01:26:17.305 align:middle line:85% position:50% size:73% LINES OF WILDFIRE PREVENTION, 01:26:17.372 --> 01:26:18.773 align:middle line:85% position:50% size:68% GRID MAINTENANCE, EMERGENCY 01:26:18.840 --> 01:26:21.209 align:middle line:85% position:50% size:80% RESPONSE, AND POWER RESTORATION. 01:26:21.276 --> 01:26:22.710 align:middle line:85% position:50% size:68% THEY'RE ESSENTIAL TO MAKING 01:26:22.777 --> 01:26:24.145 align:middle line:85% position:50% size:70% CALIFORNIA'S ELECTRIC SYSTEM 01:26:24.212 --> 01:26:26.281 align:middle line:85% position:50% size:70% SAFER AND MORE RELIABLE. THE 01:26:26.347 --> 01:26:27.315 align:middle line:85% position:50% size:58% INVESTMENTS MADE IN OUR 01:26:27.382 --> 01:26:29.183 align:middle line:85% position:50% size:73% ELECTRICAL INFRASTRUCTURE ARE 01:26:29.250 --> 01:26:30.685 align:middle line:85% position:50% size:73% INVESTMENTS IN PUBLIC SAFETY, 01:26:30.752 --> 01:26:32.020 align:middle line:85% position:50% size:50% ECONOMIC GROWTH, AND 01:26:32.086 --> 01:26:34.222 align:middle line:85% position:50% size:50% CALIFORNIA'S FUTURE, 01:26:34.289 --> 01:26:35.290 align:middle line:85% position:50% size:63% UNDERMINING THE FINANCIAL 01:26:35.356 --> 01:26:38.226 align:middle line:85% position:50% size:78% STABILITY OF THE UTILITIES, THE 01:26:38.293 --> 01:26:39.594 align:middle line:85% position:50% size:60% UTILITIES RESPONSIBILITY 01:26:39.661 --> 01:26:41.095 align:middle line:85% position:50% size:65% RESPONSIBLE FOR WORK COULD 01:26:41.162 --> 01:26:42.163 align:middle line:85% position:50% size:65% JEOPARDIZE THE INVESTMENTS 01:26:42.230 --> 01:26:44.632 align:middle line:85% position:50% size:80% NEEDED TO REDUCE WILDFIRE RISKS, 01:26:44.699 --> 01:26:45.633 align:middle line:85% position:50% size:60% STRENGTHEN THE GRID, AND 01:26:45.700 --> 01:26:47.201 align:middle line:85% position:50% size:78% PROTECT CALIFORNIA COMMUNITIES. 01:26:47.268 --> 01:26:49.337 align:middle line:85% position:50% size:68% I COULD ALSO COULD ALSO PUT 01:26:49.404 --> 01:26:50.438 align:middle line:85% position:50% size:73% THOUSANDS OF GOOD PAYING JOBS 01:26:50.505 --> 01:26:51.839 align:middle line:85% position:50% size:75% IN FUTURE CAREER OPPORTUNITIES 01:26:51.906 --> 01:26:53.975 align:middle line:85% position:50% size:63% AT RISK. WE RECOGNIZE THE 01:26:54.042 --> 01:26:55.076 align:middle line:85% position:50% size:60% IMPORTANCE OF SUPPORTING 01:26:55.143 --> 01:26:57.679 align:middle line:85% position:50% size:73% WILDFIRE VICTIMS AND ENSURING 01:26:57.745 --> 01:26:58.680 align:middle line:85% position:50% size:75% ACCOUNTABILITY. THOSE WHO HAVE 01:26:58.746 --> 01:26:59.781 align:middle line:85% position:50% size:55% SUFFERED THROUGH THESE 01:26:59.847 --> 01:27:01.249 align:middle line:85% position:50% size:73% DEVASTATING FIRES DESERVE THE 01:27:01.316 --> 01:27:03.384 align:middle line:85% position:50% size:73% SUPPORT, AND WE MUST CONTINUE 01:27:03.451 --> 01:27:04.786 align:middle line:85% position:50% size:65% WORKING TOWARDS MEANINGFUL 01:27:04.852 --> 01:27:06.220 align:middle line:85% position:50% size:75% SOLUTIONS. HOWEVER, CALIFORNIA 01:27:06.287 --> 01:27:08.790 align:middle line:85% position:50% size:78% MUST FIND A BALANCE APPROACH, A 01:27:08.856 --> 01:27:10.558 align:middle line:85% position:50% size:70% BALANCED APPROACH TO PROVIDE 01:27:10.625 --> 01:27:12.026 align:middle line:85% position:50% size:58% RELIEF WHILE PROTECTING 01:27:12.093 --> 01:27:13.094 align:middle line:85% position:50% size:58% RATEPAYERS, MAINTAINING 01:27:13.161 --> 01:27:14.195 align:middle line:85% position:50% size:58% CRITICAL INFRASTRUCTURE 01:27:14.262 --> 01:27:15.630 align:middle line:85% position:50% size:70% INVESTMENTS AND SAFEGUARDING 01:27:15.697 --> 01:27:17.065 align:middle line:85% position:50% size:78% THE SKILLED WORKFORCE THE STATE 01:27:17.131 --> 01:27:18.933 align:middle line:85% position:50% size:65% DEPENDS ON. WE CANNOT LOSE 01:27:19.000 --> 01:27:20.301 align:middle line:85% position:50% size:70% SIGHT OF THE BIGGER PICTURE. 01:27:20.368 --> 01:27:21.736 align:middle line:85% position:50% size:65% CALIFORNIA NEEDS A STRONG, 01:27:21.803 --> 01:27:23.204 align:middle line:85% position:50% size:73% RELIABLE ELECTRICAL SYSTEM TO 01:27:23.271 --> 01:27:24.005 align:middle line:85% position:50% size:55% SUPPORT ITS RESIDENTS, 01:27:24.072 --> 01:27:26.641 align:middle line:85% position:50% size:73% BUSINESSES AND FUTURE GROWTH. 01:27:26.708 --> 01:27:27.742 align:middle line:85% position:50% size:60% THAT INFRASTRUCTURE WILL 01:27:27.809 --> 01:27:29.243 align:middle line:85% position:50% size:58% CONTINUE TO BE BUILT BY 01:27:29.310 --> 01:27:30.678 align:middle line:85% position:50% size:73% CALIFORNIA WORKERS WHOSE JOBS 01:27:30.745 --> 01:27:33.548 align:middle line:85% position:50% size:53% AND ECONOMIC ECONOMIC 01:27:33.615 --> 01:27:34.549 align:middle line:85% position:50% size:75% CONTRIBUTIONS ARE AN IMPORTANT 01:27:34.616 --> 01:27:36.718 align:middle line:85% position:50% size:70% PART OF WHAT KEEPS THE STATE 01:27:36.784 --> 01:27:38.920 align:middle line:85% position:50% size:60% MOVING FORWARD. WILDFIRE 01:27:38.987 --> 01:27:40.655 align:middle line:85% position:50% size:78% RECOVERY SHOULD NOT COME AT THE 01:27:40.722 --> 01:27:41.756 align:middle line:85% position:50% size:70% EXPENSE OF WORKING FAMILIES, 01:27:41.823 --> 01:27:43.224 align:middle line:85% position:50% size:65% GOOD PAYING UNION JOBS AND 01:27:43.291 --> 01:27:45.727 align:middle line:85% position:50% size:80% CALIFORNIA'S ENERGY RELIABILITY. 01:27:45.793 --> 01:27:46.861 align:middle line:85% position:50% size:58% I URGE THE COMMITTEE TO 01:27:46.928 --> 01:27:48.696 align:middle line:85% position:50% size:68% CONSIDER THE IMPACTS OF NOT 01:27:48.763 --> 01:27:53.267 align:middle line:85% position:50% size:80% TAKING ACTION ON LABOR AND HOLE, 01:27:53.334 --> 01:27:55.169 align:middle line:85% position:50% size:78% AND THE THOUSANDS OF CALIFORNIA 01:27:55.236 --> 01:27:57.305 align:middle line:85% position:50% size:73% FAMILIES THAT DEPEND ON THESE 01:27:57.372 --> 01:28:00.508 align:middle line:85% position:50% size:60% JOBS. WE. WE MUST FIND A 01:28:00.575 --> 01:28:01.542 align:middle line:85% position:50% size:70% SOLUTION TO SUPPORT WILDFIRE 01:28:01.609 --> 01:28:02.844 align:middle line:85% position:50% size:70% VICTIMS, PROTECT RATEPAYERS, 01:28:02.910 --> 01:28:04.412 align:middle line:85% position:50% size:75% PRESERVE GOOD PAYING JOBS, AND 01:28:04.479 --> 01:28:05.913 align:middle line:85% position:50% size:68% ENSURE CALIFORNIA CONTINUES 01:28:05.980 --> 01:28:07.348 align:middle line:85% position:50% size:68% INVESTING IN INFRASTRUCTURE 01:28:07.415 --> 01:28:09.550 align:middle line:85% position:50% size:63% NECESSARY FOR THE STATE'S 01:28:09.617 --> 01:28:10.952 align:middle line:85% position:50% size:78% FUTURE. AND LOOK FORWARD TO ANY 01:28:11.019 --> 01:28:13.121 align:middle line:85% position:50% size:78% QUESTIONS YOU MIGHT HAVE. THANK 01:28:13.187 --> 01:28:19.193 align:middle line:85% position:50% size:68% YOU, MR. VALERO. AFTERNOON, 01:28:19.260 --> 01:28:20.595 align:middle line:85% position:50% size:75% MEMBERS. THANKS FOR HAVING ME. 01:28:20.662 --> 01:28:22.163 align:middle line:85% position:50% size:65% FERNANDO VALERO, EXECUTIVE 01:28:22.230 --> 01:28:24.298 align:middle line:85% position:50% size:78% DIRECTOR OF STRATEGIC ISSUES AT 01:28:24.365 --> 01:28:27.535 align:middle line:85% position:50% size:63% LAUP. WITH WILDFIRE BEING 01:28:27.602 --> 01:28:29.971 align:middle line:85% position:50% size:65% NUMBER ONE ON MY STRATEGIC 01:28:30.038 --> 01:28:32.874 align:middle line:85% position:50% size:78% ISSUES LIST FOR FOR BWP, I WANT 01:28:32.940 --> 01:28:35.376 align:middle line:85% position:50% size:75% TO THANK YOU FOR EXAMINING HOW 01:28:35.443 --> 01:28:37.512 align:middle line:85% position:50% size:63% WILDFIRE RISK IMPACTS OUR 01:28:37.578 --> 01:28:40.748 align:middle line:85% position:50% size:65% ABILITY TO INVEST AND KEEP 01:28:40.815 --> 01:28:43.351 align:middle line:85% position:50% size:60% WATER AND POWER SAFE AND 01:28:43.418 --> 01:28:45.420 align:middle line:85% position:50% size:68% RELIABLE. FIRST, LET ME SAY 01:28:45.486 --> 01:28:46.888 align:middle line:85% position:50% size:75% THAT WE AGREE WITH THE CENTRAL 01:28:46.954 --> 01:28:48.756 align:middle line:85% position:50% size:63% FINDING OF THE CALIFORNIA 01:28:48.823 --> 01:28:51.959 align:middle line:85% position:50% size:73% EARTHQUAKE AUTHORITY'S SB 254 01:28:52.026 --> 01:28:54.462 align:middle line:85% position:50% size:70% STUDY. CATASTROPHIC WILDFIRE 01:28:54.529 --> 01:28:57.732 align:middle line:85% position:50% size:78% RISK IS A STATEWIDE PROBLEM. IT 01:28:57.799 --> 01:28:59.600 align:middle line:85% position:50% size:75% NEEDS STATEWIDE SOLUTIONS, AND 01:28:59.667 --> 01:29:01.669 align:middle line:85% position:50% size:78% THE LOSSES FROM WILDFIRE CAN BE 01:29:01.736 --> 01:29:03.871 align:middle line:85% position:50% size:78% MORE THAN ONE UTILITY. ONE CITY 01:29:03.938 --> 01:29:05.606 align:middle line:85% position:50% size:75% AND ITS CUSTOMERS CAN CARRY ON 01:29:05.673 --> 01:29:09.343 align:middle line:85% position:50% size:70% ITS OWN. AS A RESULT OF THIS 01:29:09.410 --> 01:29:13.047 align:middle line:85% position:50% size:75% RISK FINANCING, LED OPERATIONS 01:29:13.114 --> 01:29:16.117 align:middle line:85% position:50% size:68% AND INVESTMENTS HAVE BECOME 01:29:16.184 --> 01:29:18.252 align:middle line:85% position:50% size:68% INCREASINGLY EXPENSIVE. FOR 01:29:18.319 --> 01:29:20.388 align:middle line:85% position:50% size:65% CONTEXT, WHEN WE REPLACE A 01:29:20.455 --> 01:29:22.190 align:middle line:85% position:50% size:75% WATER MAIN, STRENGTHEN A POWER 01:29:22.256 --> 01:29:25.126 align:middle line:85% position:50% size:78% LINE, OR BUILD A SUBSTATION, WE 01:29:25.193 --> 01:29:27.962 align:middle line:85% position:50% size:75% PAY FOR THIS WORK UP FRONT AND 01:29:28.029 --> 01:29:29.397 align:middle line:85% position:50% size:55% CUSTOMERS PAY FOR THAT 01:29:29.464 --> 01:29:30.865 align:middle line:85% position:50% size:78% INVESTMENT OVER MANY YEARS THAT 01:29:30.932 --> 01:29:32.667 align:middle line:85% position:50% size:65% THEY USE IT. BONDS. LET US 01:29:32.734 --> 01:29:34.569 align:middle line:85% position:50% size:75% SPREAD THIS COST OVER THE LIFE 01:29:34.635 --> 01:29:36.637 align:middle line:85% position:50% size:68% OF THE EQUIPMENT, BUT EVERY 01:29:36.704 --> 01:29:38.106 align:middle line:85% position:50% size:73% DOLLAR OF INTEREST IS ANOTHER 01:29:38.172 --> 01:29:40.208 align:middle line:85% position:50% size:68% DOLLAR. CUSTOMERS PAY AS WE 01:29:40.274 --> 01:29:42.777 align:middle line:85% position:50% size:75% HAVE NO SHAREHOLDERS TO SHARE. 01:29:42.844 --> 01:29:46.013 align:middle line:85% position:50% size:73% THAT COST. OUR FIVE YEAR PLAN 01:29:46.080 --> 01:29:49.617 align:middle line:85% position:50% size:78% INCLUDES ABOUT $30.5 BILLION OF 01:29:49.684 --> 01:29:51.185 align:middle line:85% position:50% size:75% INVESTMENT IN POWER AND WATER, 01:29:51.252 --> 01:29:52.620 align:middle line:85% position:50% size:70% OF WHICH WE EXPECT TO BORROW 01:29:52.687 --> 01:29:55.690 align:middle line:85% position:50% size:75% ABOUT $21 BILLION AND FUND THE 01:29:55.757 --> 01:29:57.525 align:middle line:85% position:50% size:68% REST FROM CASH AND REVENUES 01:29:57.592 --> 01:30:00.027 align:middle line:85% position:50% size:58% FROM THE SYSTEM THAT IS 01:30:00.094 --> 01:30:02.196 align:middle line:85% position:50% size:65% GENERATED OVER TIME. THOSE 01:30:02.263 --> 01:30:03.998 align:middle line:85% position:50% size:70% INVESTMENTS SUPPORT WILDFIRE 01:30:04.065 --> 01:30:05.433 align:middle line:85% position:50% size:73% MITIGATION, RELIABLE SERVICE, 01:30:05.500 --> 01:30:07.168 align:middle line:85% position:50% size:65% CLEAN ENERGY AND THE WATER 01:30:07.235 --> 01:30:10.805 align:middle line:85% position:50% size:78% NETWORK. OUR CITY NEEDS. PUBLIC 01:30:10.872 --> 01:30:13.007 align:middle line:85% position:50% size:78% OWNERSHIP IMPACTS, HOW WE RAISE 01:30:13.074 --> 01:30:15.376 align:middle line:85% position:50% size:78% MONEY. INVESTOR OWNED UTILITIES 01:30:15.443 --> 01:30:17.712 align:middle line:85% position:50% size:78% CAN BORROW AND RAISE MONEY FROM 01:30:17.779 --> 01:30:18.713 align:middle line:85% position:50% size:70% SHAREHOLDERS, AND THE PUBLIC 01:30:18.780 --> 01:30:20.948 align:middle line:85% position:50% size:73% UTILITIES COMMISSION SETS THE 01:30:21.015 --> 01:30:23.084 align:middle line:85% position:50% size:73% FINANCING MIX AND THE RETURNS 01:30:23.151 --> 01:30:25.953 align:middle line:85% position:50% size:78% CUSTOMERS PAY THROUGH RATES FOR 01:30:26.020 --> 01:30:28.289 align:middle line:85% position:50% size:75% LAUP. WE HAVE NO SHAREHOLDERS, 01:30:28.356 --> 01:30:31.726 align:middle line:85% position:50% size:73% SO WE RELY SOLELY ON CUSTOMER 01:30:31.793 --> 01:30:33.594 align:middle line:85% position:50% size:70% REVENUES AND BORROWING. WITH 01:30:33.661 --> 01:30:36.697 align:middle line:85% position:50% size:80% OUR RATES APPROVED LOCALLY. NOW, 01:30:36.764 --> 01:30:40.368 align:middle line:85% position:50% size:78% WHILE OUR BONDS QUALIFY FOR TAX 01:30:40.434 --> 01:30:42.170 align:middle line:85% position:50% size:73% EXEMPT FINANCING, WHICH HELPS 01:30:42.236 --> 01:30:44.639 align:middle line:85% position:50% size:55% KEEPS COSTS DOWN, THAT 01:30:44.705 --> 01:30:46.474 align:middle line:85% position:50% size:73% ADVANTAGE DOES NOT PROTECT US 01:30:46.541 --> 01:30:49.811 align:middle line:85% position:50% size:73% FROM WILDFIRE RISK, NOR DO WE 01:30:49.877 --> 01:30:51.879 align:middle line:85% position:50% size:60% HAVE ACCESS TO THE STATE 01:30:51.946 --> 01:30:53.681 align:middle line:85% position:50% size:75% WILDFIRE FUND THAT'S AVAILABLE 01:30:53.748 --> 01:30:56.184 align:middle line:85% position:50% size:78% TO PARTICIPATING INVESTOR OWNED 01:30:56.250 --> 01:30:58.352 align:middle line:85% position:50% size:58% UTILITIES, WHICH RATING 01:30:58.419 --> 01:31:00.922 align:middle line:85% position:50% size:70% AGENCIES HAVE HAVE NOTED. AT 01:31:00.988 --> 01:31:03.424 align:middle line:85% position:50% size:75% THE SAME TIME, WE MUST REPLACE 01:31:03.491 --> 01:31:05.326 align:middle line:85% position:50% size:73% AGING INFRASTRUCTURE, PREPARE 01:31:05.393 --> 01:31:07.728 align:middle line:85% position:50% size:78% FOR MORE SEVERE FIRE CONDITIONS 01:31:07.795 --> 01:31:09.530 align:middle line:85% position:50% size:63% AND MEET OUR CLEAN ENERGY 01:31:09.597 --> 01:31:12.066 align:middle line:85% position:50% size:63% COMMITMENTS. INSURANCE IS 01:31:12.133 --> 01:31:14.168 align:middle line:85% position:50% size:80% INCREASINGLY COSTLY AND LIMITED, 01:31:14.235 --> 01:31:15.937 align:middle line:85% position:50% size:63% AND CUSTOMERS ARE ALREADY 01:31:16.003 --> 01:31:18.506 align:middle line:85% position:50% size:68% FACING RISING BILLS BECAUSE 01:31:18.573 --> 01:31:20.975 align:middle line:85% position:50% size:70% RATES COVER THE DEBT SERVICE 01:31:21.042 --> 01:31:22.877 align:middle line:85% position:50% size:70% AND CASH FUNDING WE NEED FOR 01:31:22.944 --> 01:31:25.379 align:middle line:85% position:50% size:68% THIS INFRASTRUCTURE. IN THE 01:31:25.446 --> 01:31:28.549 align:middle line:85% position:50% size:75% CASE OF A WILDFIRE, THE CREDIT 01:31:28.616 --> 01:31:30.351 align:middle line:85% position:50% size:75% CONSEQUENCES CAN ARRIVE BEFORE 01:31:30.418 --> 01:31:31.786 align:middle line:85% position:50% size:70% RESPONSIBILITY FOR A FIRE IS 01:31:31.853 --> 01:31:34.455 align:middle line:85% position:50% size:78% EVEN ESTABLISHED. SO ON JANUARY 01:31:34.522 --> 01:31:37.992 align:middle line:85% position:50% size:78% 14TH, 2025, AFTER THE PALISADES 01:31:38.059 --> 01:31:40.795 align:middle line:85% position:50% size:70% FIRE, S&P CUT BOTH OUR POWER 01:31:40.862 --> 01:31:42.964 align:middle line:85% position:50% size:60% AND WATER RATINGS BY TWO 01:31:43.030 --> 01:31:45.466 align:middle line:85% position:50% size:70% NOTCHES, EVEN THOUGH ITS OWN 01:31:45.533 --> 01:31:46.968 align:middle line:85% position:50% size:78% REPORT NOTED OUR INFRASTRUCTURE 01:31:47.034 --> 01:31:49.070 align:middle line:85% position:50% size:75% HAD NOT BEEN IMPLICATED AS THE 01:31:49.136 --> 01:31:51.639 align:middle line:85% position:50% size:73% CAUSE. THAT IS BECAUSE OF THE 01:31:51.706 --> 01:31:53.808 align:middle line:85% position:50% size:53% LIABILITY PARADIGM IN 01:31:53.875 --> 01:31:54.809 align:middle line:85% position:50% size:70% CALIFORNIA, WHICH WAS ENOUGH 01:31:54.876 --> 01:31:56.244 align:middle line:85% position:50% size:65% FOR THE RATING AGENCIES TO 01:31:56.310 --> 01:31:57.745 align:middle line:85% position:50% size:58% RAISE CONCERN ABOUT OUR 01:31:57.812 --> 01:32:00.248 align:middle line:85% position:50% size:78% FINANCES. WHEN LENDERS SEE MORE 01:32:00.314 --> 01:32:02.817 align:middle line:85% position:50% size:68% RISK, IT CREATES TWO ISSUES 01:32:02.884 --> 01:32:05.319 align:middle line:85% position:50% size:73% THEY DEMAND MORE INTEREST AND 01:32:05.386 --> 01:32:07.822 align:middle line:85% position:50% size:73% TWO, SOME BECOME UNWILLING TO 01:32:07.889 --> 01:32:11.025 align:middle line:85% position:50% size:55% LEND AT ALL. THIS RISK 01:32:11.092 --> 01:32:13.561 align:middle line:85% position:50% size:73% MANIFESTS ITSELF IN INCREASED 01:32:13.628 --> 01:32:16.063 align:middle line:85% position:50% size:70% COSTS. FOR EXAMPLE, ASSUMING 01:32:16.130 --> 01:32:17.899 align:middle line:85% position:50% size:65% LADWP. S CURRENT FIVE YEAR 01:32:17.965 --> 01:32:20.334 align:middle line:85% position:50% size:65% CAPITAL PLAN, A TWO LETTER 01:32:20.401 --> 01:32:22.603 align:middle line:85% position:50% size:63% DOWNGRADE OF DWP'S CREDIT 01:32:22.670 --> 01:32:24.405 align:middle line:85% position:50% size:78% RATING COULD INCREASE BORROWING 01:32:24.472 --> 01:32:28.042 align:middle line:85% position:50% size:78% COSTS BY OVER $900 BILLION $900 01:32:28.109 --> 01:32:30.511 align:middle line:85% position:50% size:78% MILLION. THESE COSTS ULTIMATELY 01:32:30.578 --> 01:32:32.346 align:middle line:85% position:50% size:73% REACH HOUSEHOLDS BECAUSE CASH 01:32:32.413 --> 01:32:34.815 align:middle line:85% position:50% size:63% USED FOR INTEREST IS CASH 01:32:34.882 --> 01:32:36.984 align:middle line:85% position:50% size:73% POTENTIALLY NOT USED IN OTHER 01:32:37.051 --> 01:32:38.719 align:middle line:85% position:50% size:55% AREAS OF NEED, SUCH AS 01:32:38.786 --> 01:32:41.322 align:middle line:85% position:50% size:68% RELIABILITY INVESTMENTS. TO 01:32:41.389 --> 01:32:43.124 align:middle line:85% position:50% size:70% PRESERVE THE SAME INVESTMENT 01:32:43.190 --> 01:32:44.525 align:middle line:85% position:50% size:68% PROGRAM, WE WOULD NEED MORE 01:32:44.592 --> 01:32:47.028 align:middle line:85% position:50% size:70% REVENUE FROM RATES, AND THAT 01:32:47.094 --> 01:32:48.462 align:middle line:85% position:50% size:75% BURDEN FALLS HARDEST ON PEOPLE 01:32:48.529 --> 01:32:49.931 align:middle line:85% position:50% size:70% WITH THE LEAST ROOM IN THEIR 01:32:49.997 --> 01:32:51.732 align:middle line:85% position:50% size:75% BUDGETS. DUE TO THE REGRESSIVE 01:32:51.799 --> 01:32:54.568 align:middle line:85% position:50% size:60% NATURE OF OUR RATES. OUR 01:32:54.635 --> 01:32:56.737 align:middle line:85% position:50% size:60% RESIDENTS ALSO FUND CITY 01:32:56.804 --> 01:32:59.273 align:middle line:85% position:50% size:70% SERVICES SO FINANCIAL STRESS 01:32:59.340 --> 01:33:02.910 align:middle line:85% position:50% size:65% CAN REACH THEM TWICE. LAST 01:33:02.977 --> 01:33:04.378 align:middle line:85% position:50% size:70% SESSION, WE PUT PROPOSALS ON 01:33:04.445 --> 01:33:06.480 align:middle line:85% position:50% size:73% THE TABLE, CLEAR STANDARDS OF 01:33:06.547 --> 01:33:08.316 align:middle line:85% position:50% size:58% CARE FOR UTILITIES WITH 01:33:08.382 --> 01:33:09.684 align:middle line:85% position:50% size:45% ASSOCIATED UTILITY 01:33:09.750 --> 01:33:11.185 align:middle line:85% position:50% size:65% ACCOUNTABILITY, MEANINGFUL 01:33:11.252 --> 01:33:12.987 align:middle line:85% position:50% size:73% LIABILITY LIMITS, SUBROGATION 01:33:13.054 --> 01:33:14.789 align:middle line:85% position:50% size:78% REFORM AND A STATE ADMINISTERED 01:33:14.855 --> 01:33:16.624 align:middle line:85% position:50% size:78% WILDFIRE INSURANCE FRAMEWORK OR 01:33:16.691 --> 01:33:18.759 align:middle line:85% position:50% size:78% PUBLICLY OWNED UTILITY WILDFIRE 01:33:18.826 --> 01:33:20.528 align:middle line:85% position:50% size:60% FUND. WE WANT VICTIMS TO 01:33:20.594 --> 01:33:22.663 align:middle line:85% position:50% size:70% RECEIVE TIMELY COMPENSATION, 01:33:22.730 --> 01:33:24.031 align:middle line:85% position:50% size:70% AND WE ALSO NEED TO PRESERVE 01:33:24.098 --> 01:33:25.900 align:middle line:85% position:50% size:75% THE RESILIENCE INVESTMENT THAT 01:33:25.967 --> 01:33:28.102 align:middle line:85% position:50% size:75% PRESENTS PREVENTS FUTURE HARM. 01:33:28.169 --> 01:33:30.304 align:middle line:85% position:50% size:68% A WORKABLE SOLUTION MUST DO 01:33:30.371 --> 01:33:31.706 align:middle line:85% position:50% size:70% BOTH, AND WE LOOK FORWARD TO 01:33:31.772 --> 01:33:33.507 align:middle line:85% position:50% size:63% WORKING WITH YOU ON THAT. 01:33:33.574 --> 01:33:37.778 align:middle line:85% position:50% size:70% THANKS. THANK YOU, MR. TONY. 01:33:37.845 --> 01:33:42.516 align:middle line:85% position:50% size:75% THANK YOU VERY MUCH. I THINK I 01:33:42.583 --> 01:33:45.386 align:middle line:85% position:50% size:75% FOUND IT. THANK YOU VERY MUCH. 01:33:45.453 --> 01:33:47.121 align:middle line:85% position:50% size:75% CHAIR PETRIE-NORRIS MEMBERS OF 01:33:47.188 --> 01:33:48.990 align:middle line:85% position:50% size:78% THE COMMITTEE. MY NAME IS MARK. 01:33:49.056 --> 01:33:50.391 align:middle line:85% position:50% size:75% TONY. I SERVE AS THE EXECUTIVE 01:33:50.458 --> 01:33:52.560 align:middle line:85% position:50% size:70% DIRECTOR OF TURN THE UTILITY 01:33:52.626 --> 01:33:55.429 align:middle line:85% position:50% size:70% REFORM NETWORK. POLICYMAKERS 01:33:55.496 --> 01:33:57.965 align:middle line:85% position:50% size:65% FACE A DIFFICULT CHOICE ON 01:33:58.032 --> 01:34:00.835 align:middle line:85% position:50% size:65% WILDFIRE REFORM. ONE IS TO 01:34:00.901 --> 01:34:03.371 align:middle line:85% position:50% size:70% TREAT UTILITY EXECUTIVES AND 01:34:03.437 --> 01:34:04.505 align:middle line:85% position:50% size:63% SHAREHOLDERS AS A SPECIAL 01:34:04.572 --> 01:34:06.307 align:middle line:85% position:50% size:63% INTEREST GROUP THAT NEEDS 01:34:06.374 --> 01:34:07.708 align:middle line:85% position:50% size:68% PROTECTION. THE OTHER IS TO 01:34:07.775 --> 01:34:09.510 align:middle line:85% position:50% size:75% PROTECT THE PUBLIC INTEREST BY 01:34:09.577 --> 01:34:10.911 align:middle line:85% position:50% size:60% STANDING WITH CALIFORNIA 01:34:10.978 --> 01:34:12.380 align:middle line:85% position:50% size:73% RESIDENTS AND BUSINESSES THAT 01:34:12.446 --> 01:34:14.115 align:middle line:85% position:50% size:73% NEED RATEPAYER RELIEF TO KEEP 01:34:14.181 --> 01:34:15.983 align:middle line:85% position:50% size:73% THE LIGHTS ON, KEEP OPERATING 01:34:16.050 --> 01:34:18.152 align:middle line:85% position:50% size:73% IN THE STATE AND MEET CLIMATE 01:34:18.219 --> 01:34:22.456 align:middle line:85% position:50% size:73% GOALS. NOW, PG AND E IS RIGHT 01:34:22.523 --> 01:34:24.992 align:middle line:85% position:50% size:60% WHEN THEY SAY THAT LOWER 01:34:25.059 --> 01:34:27.928 align:middle line:85% position:50% size:73% UTILITY CREDIT RATINGS EQUALS 01:34:27.995 --> 01:34:30.031 align:middle line:85% position:50% size:78% HIGHER BORROWING COSTS THAT ARE 01:34:30.097 --> 01:34:33.968 align:middle line:85% position:50% size:78% PASSED TO RATEPAYERS. OKAY, BUT 01:34:34.035 --> 01:34:39.040 align:middle line:85% position:50% size:73% WE DISAGREE THAT THE BEST WAY 01:34:39.106 --> 01:34:41.142 align:middle line:85% position:50% size:60% THAT CAPPING SHAREHOLDER 01:34:41.208 --> 01:34:43.677 align:middle line:85% position:50% size:73% LIABILITY IS THE BEST PATHWAY 01:34:43.744 --> 01:34:46.580 align:middle line:85% position:50% size:68% TO INCREASE CREDIT RATINGS, 01:34:46.647 --> 01:34:48.049 align:middle line:85% position:50% size:73% ESPECIALLY BECAUSE THAT MEANS 01:34:48.115 --> 01:34:50.184 align:middle line:85% position:50% size:60% THAT RATEPAYERS WOULD BE 01:34:50.251 --> 01:34:52.720 align:middle line:85% position:50% size:68% RESPONSIBLE FOR 100% OF THE 01:34:52.787 --> 01:34:58.459 align:middle line:85% position:50% size:73% COST OVER THE CAP. ONE OF THE 01:34:58.526 --> 01:35:00.494 align:middle line:85% position:50% size:70% THEMES THAT HAS COME UP OVER 01:35:00.561 --> 01:35:03.130 align:middle line:85% position:50% size:73% AND OVER TODAY IS THAT CREDIT 01:35:03.197 --> 01:35:06.734 align:middle line:85% position:50% size:75% RATINGS ARE BASED ON RISK. AND 01:35:06.801 --> 01:35:09.603 align:middle line:85% position:50% size:75% SO WE THINK THAT REDUCING RISK 01:35:09.670 --> 01:35:12.139 align:middle line:85% position:50% size:68% IS A BETTER WAY TO INCREASE 01:35:12.206 --> 01:35:14.008 align:middle line:85% position:50% size:63% CREDIT RATINGS AND REDUCE 01:35:14.075 --> 01:35:16.877 align:middle line:85% position:50% size:80% RATEPAYER COSTS. TWO STRATEGIES. 01:35:16.944 --> 01:35:20.047 align:middle line:85% position:50% size:68% ONE, REDUCE THE DEBT EQUITY 01:35:20.114 --> 01:35:21.916 align:middle line:85% position:50% size:63% RATIO IN FINANCING, WHICH 01:35:21.982 --> 01:35:23.651 align:middle line:85% position:50% size:68% HASN'T COME UP YET, AND THE 01:35:23.717 --> 01:35:25.820 align:middle line:85% position:50% size:75% OTHER IS TO LIMIT PAYOUTS FROM 01:35:25.886 --> 01:35:27.955 align:middle line:85% position:50% size:70% THE WILDFIRE FUND. SO LET ME 01:35:28.022 --> 01:35:30.524 align:middle line:85% position:50% size:70% START WITH REDUCING THE DEBT 01:35:30.591 --> 01:35:32.693 align:middle line:85% position:50% size:75% EQUITY RATIO. I'M GOING TO USE 01:35:32.760 --> 01:35:35.896 align:middle line:85% position:50% size:73% PG AND E AS AN EXAMPLE. OKAY. 01:35:35.963 --> 01:35:38.833 align:middle line:85% position:50% size:68% THE HIGHER A COMPANY'S DEBT 01:35:38.899 --> 01:35:40.267 align:middle line:85% position:50% size:73% EQUITY RATIO, THE HIGHER RISK 01:35:40.334 --> 01:35:42.369 align:middle line:85% position:50% size:78% IT IS DEEMED BY THE MARKET. THE 01:35:42.436 --> 01:35:44.972 align:middle line:85% position:50% size:73% REPORT THAT YOU RECEIVED, YOU 01:35:45.039 --> 01:35:46.440 align:middle line:85% position:50% size:58% KNOW, VERIFIED THAT THE 01:35:46.507 --> 01:35:48.542 align:middle line:85% position:50% size:78% COMMISSION HAS AUTHORIZED A 48% 01:35:48.609 --> 01:35:53.214 align:middle line:85% position:50% size:70% DEBT, 52% EQUITY RATIO FOR A 01:35:53.280 --> 01:35:56.050 align:middle line:85% position:50% size:75% FINANCING FOR CALIFORNIA IOUS, 01:35:56.117 --> 01:35:59.286 align:middle line:85% position:50% size:75% BUT PG AND E IS ACTUAL DEBT TO 01:35:59.353 --> 01:36:02.523 align:middle line:85% position:50% size:68% EQUITY RATIO IS MUCH HIGHER 01:36:02.590 --> 01:36:06.527 align:middle line:85% position:50% size:68% THAN AUTHORIZED DUE TO CPUC 01:36:06.594 --> 01:36:08.329 align:middle line:85% position:50% size:78% EXEMPTIONS AND WAIVERS. SO IT'S 01:36:08.395 --> 01:36:12.266 align:middle line:85% position:50% size:70% MORE LIKE 54 TO 58% DEBT AND 01:36:12.333 --> 01:36:16.570 align:middle line:85% position:50% size:68% ONLY 4,246% EQUITY. THIS IS 01:36:16.637 --> 01:36:18.372 align:middle line:85% position:50% size:70% IMPORTANT BECAUSE THE MARKET 01:36:18.439 --> 01:36:20.975 align:middle line:85% position:50% size:68% VALUES RISK BASED ON ACTUAL 01:36:21.041 --> 01:36:24.478 align:middle line:85% position:50% size:53% GAAP RATIOS, NOT CPUC 01:36:24.545 --> 01:36:29.216 align:middle line:85% position:50% size:78% AUTHORIZED RATIOS. SO WHAT THAT 01:36:29.283 --> 01:36:32.786 align:middle line:85% position:50% size:75% MEANS IS THAT THE DAY IT COSTS 01:36:32.853 --> 01:36:34.622 align:middle line:85% position:50% size:78% MORE TO BORROW. SO WHEN WE WERE 01:36:34.688 --> 01:36:36.724 align:middle line:85% position:50% size:78% TALKING ABOUT THE $4 BILLION OF 01:36:36.790 --> 01:36:40.394 align:middle line:85% position:50% size:73% EXTRA PART OF THAT IS BECAUSE 01:36:40.461 --> 01:36:44.298 align:middle line:85% position:50% size:68% OF THIS HIGH DEBT TO EQUITY 01:36:44.365 --> 01:36:48.269 align:middle line:85% position:50% size:70% RATIO, OUR SOLUTIONS ARE END 01:36:48.335 --> 01:36:49.737 align:middle line:85% position:50% size:73% EXEMPTIONS AND WAIVERS FOR PG 01:36:49.803 --> 01:36:52.573 align:middle line:85% position:50% size:78% AND E MANDATING THAT ITS ACTUAL 01:36:52.640 --> 01:36:55.809 align:middle line:85% position:50% size:75% DEBT TO EQUITY, DEBT TO EQUITY 01:36:55.876 --> 01:36:59.079 align:middle line:85% position:50% size:78% RATIO BE IN COMPLIANCE WITH THE 01:36:59.146 --> 01:37:01.549 align:middle line:85% position:50% size:75% AUTHORIZED RATIO, WOULD RESULT 01:37:01.615 --> 01:37:04.785 align:middle line:85% position:50% size:65% IN LOWER COST OF FINANCING 01:37:04.852 --> 01:37:07.021 align:middle line:85% position:50% size:63% CAPITAL PROJECTS PG AND E 01:37:07.087 --> 01:37:08.756 align:middle line:85% position:50% size:68% SHOULD BE REQUIRED TO ISSUE 01:37:08.822 --> 01:37:10.991 align:middle line:85% position:50% size:68% MORE EQUITY. THAT'S HOW YOU 01:37:11.058 --> 01:37:13.394 align:middle line:85% position:50% size:70% REBALANCE IT. THE MANAGEMENT 01:37:13.460 --> 01:37:14.461 align:middle line:85% position:50% size:65% AND SHAREHOLDERS HAVE BEEN 01:37:14.528 --> 01:37:15.963 align:middle line:85% position:50% size:70% TRYING TO DO EVERYTHING THEY 01:37:16.030 --> 01:37:19.200 align:middle line:85% position:50% size:63% CAN TO AVOID THAT. CREDIT 01:37:19.266 --> 01:37:22.503 align:middle line:85% position:50% size:73% AGENCIES HAVE EXPRESSLY STATE 01:37:22.570 --> 01:37:25.673 align:middle line:85% position:50% size:75% THAT ISSUING ADDITIONAL EQUITY 01:37:25.739 --> 01:37:27.508 align:middle line:85% position:50% size:75% WOULD LIKELY STRENGTHEN PG AND 01:37:27.575 --> 01:37:29.643 align:middle line:85% position:50% size:70% E'S CREDIT RATING, AND WOULD 01:37:29.710 --> 01:37:32.546 align:middle line:85% position:50% size:80% RESULT IN LOWER FINANCING COSTS. 01:37:32.613 --> 01:37:35.449 align:middle line:85% position:50% size:78% I HAVE INCLUDED A MEMO FROM ONE 01:37:35.516 --> 01:37:37.218 align:middle line:85% position:50% size:75% OF OUR ATTORNEYS THAT EXPLAINS 01:37:37.284 --> 01:37:38.686 align:middle line:85% position:50% size:73% THAT I'M NOT GOING TO GO INTO 01:37:38.752 --> 01:37:41.155 align:middle line:85% position:50% size:70% IT. SO THERE ARE THINGS THAT 01:37:41.222 --> 01:37:44.058 align:middle line:85% position:50% size:78% CAN BE DONE OUTSIDE OF WILDFIRE 01:37:44.124 --> 01:37:47.628 align:middle line:85% position:50% size:70% LIABILITY TO REDUCE RISK AND 01:37:47.695 --> 01:37:49.463 align:middle line:85% position:50% size:70% REDUCE THE COST AND INCREASE 01:37:49.530 --> 01:37:51.298 align:middle line:85% position:50% size:75% CREDIT RATING. WE NEED TO LOOK 01:37:51.365 --> 01:37:52.700 align:middle line:85% position:50% size:68% AT THAT. LET'S NOT OVERLOOK 01:37:52.766 --> 01:37:56.637 align:middle line:85% position:50% size:70% THAT. THE SECOND THING IS TO 01:37:56.704 --> 01:37:58.505 align:middle line:85% position:50% size:58% LIMIT PAYMENTS FROM THE 01:37:58.572 --> 01:38:02.810 align:middle line:85% position:50% size:68% WILDFIRE FUND. SB 254 STUDY 01:38:02.876 --> 01:38:06.347 align:middle line:85% position:50% size:65% PROVIDES A POLICY ROADMAP. 01:38:06.413 --> 01:38:08.515 align:middle line:85% position:50% size:58% INVEST IN WILDFIRE RISK 01:38:08.582 --> 01:38:10.851 align:middle line:85% position:50% size:70% REDUCTION TO REDUCE IGNITION 01:38:10.918 --> 01:38:13.887 align:middle line:85% position:50% size:70% AND SPREAD OF FIRES. PROTECT 01:38:13.954 --> 01:38:16.490 align:middle line:85% position:50% size:58% UTILITY RATEPAYERS FROM 01:38:16.557 --> 01:38:19.727 align:middle line:85% position:50% size:73% UNLIMITED WILDFIRE LIABILITY, 01:38:19.793 --> 01:38:21.829 align:middle line:85% position:50% size:75% AND ESTABLISH THE STATE AS THE 01:38:21.895 --> 01:38:24.331 align:middle line:85% position:50% size:80% WILDFIRE INSURER OF LAST RESORT. 01:38:24.398 --> 01:38:26.200 align:middle line:85% position:50% size:78% I'M NOT GOING TO GO THROUGH ALL 01:38:26.267 --> 01:38:30.137 align:middle line:85% position:50% size:78% OF THESE RIGHT NOW. I'M OPEN TO 01:38:30.204 --> 01:38:32.740 align:middle line:85% position:50% size:73% QUESTIONS. THE ONE THING I DO 01:38:32.806 --> 01:38:35.542 align:middle line:85% position:50% size:75% WANT TO TALK ABOUT FOCUS ON IS 01:38:35.609 --> 01:38:38.045 align:middle line:85% position:50% size:70% WE'VE GOT TO DO SOMETHING TO 01:38:38.112 --> 01:38:40.547 align:middle line:85% position:50% size:65% LIMIT HOW MANY PARTIES ARE 01:38:40.614 --> 01:38:42.349 align:middle line:85% position:50% size:70% COLLECTING FROM THE WILDFIRE 01:38:42.416 --> 01:38:45.252 align:middle line:85% position:50% size:78% FUND, SO THAT THE WILDFIRE FUND 01:38:45.319 --> 01:38:47.421 align:middle line:85% position:50% size:68% CAN BE FOCUSED ON WILDFIRE. 01:38:47.488 --> 01:38:50.324 align:middle line:85% position:50% size:63% VICTIMS CAN BE FOCUSED ON 01:38:50.391 --> 01:38:55.329 align:middle line:85% position:50% size:75% LOSSES AND NOT BE LOOKED AT AS 01:38:55.396 --> 01:38:57.164 align:middle line:85% position:50% size:70% A DOUBLE DIPPING OPPORTUNITY 01:38:57.231 --> 01:39:01.068 align:middle line:85% position:50% size:75% FOR INSURANCE COMPANIES, FOR A 01:39:01.135 --> 01:39:05.806 align:middle line:85% position:50% size:68% BONANZA, FOR ATTORNEYS, FOR 01:39:05.873 --> 01:39:09.009 align:middle line:85% position:50% size:78% HEDGE FUNDS. WE NEED. THE OTHER 01:39:09.076 --> 01:39:12.646 align:middle line:85% position:50% size:63% THING WE NEED TO DO IS TO 01:39:12.713 --> 01:39:14.782 align:middle line:85% position:50% size:78% RESTORE THE NEGLIGENCE STANDARD 01:39:14.848 --> 01:39:17.318 align:middle line:85% position:50% size:65% THAT REQUIRES UTILITIES TO 01:39:17.384 --> 01:39:20.187 align:middle line:85% position:50% size:78% DEMONSTRATE PRUDENCE WHEN THEIR 01:39:20.254 --> 01:39:23.757 align:middle line:85% position:50% size:75% EQUIPMENT STARTS A WILDFIRE. I 01:39:23.824 --> 01:39:28.462 align:middle line:85% position:50% size:73% AM I HAVE SOME SUGGESTIONS ON 01:39:28.529 --> 01:39:30.998 align:middle line:85% position:50% size:73% ESTABLISHING THE STATE AS THE 01:39:31.065 --> 01:39:34.168 align:middle line:85% position:50% size:80% WILDFIRE INSURER OF LAST RESORT. 01:39:34.234 --> 01:39:39.973 align:middle line:85% position:50% size:78% IT IS ABSOLUTELY IMPORTANT THAT 01:39:40.040 --> 01:39:42.142 align:middle line:85% position:50% size:58% RATEPAYER CENTERED RISK 01:39:42.209 --> 01:39:44.278 align:middle line:85% position:50% size:60% REDUCTION THAT INCREASES 01:39:44.345 --> 01:39:48.582 align:middle line:85% position:50% size:70% UTILITY CREDIT WORTHINESS BE 01:39:48.649 --> 01:39:50.417 align:middle line:85% position:50% size:60% ADOPTED OVER SHAREHOLDER 01:39:50.484 --> 01:39:52.953 align:middle line:85% position:50% size:78% CENTERED STRATEGIES THAT EXPOSE 01:39:53.020 --> 01:39:55.055 align:middle line:85% position:50% size:75% RATEPAYERS TO UNLIMITED COSTS. 01:39:55.122 --> 01:39:57.658 align:middle line:85% position:50% size:58% MY FINAL POINT, PLEASE. 01:39:57.725 --> 01:39:59.760 align:middle line:85% position:50% size:70% WHATEVER YOU DO, RELEASE THE 01:39:59.827 --> 01:40:01.995 align:middle line:85% position:50% size:73% WILDFIRE REFORM BILL LANGUAGE 01:40:02.062 --> 01:40:03.464 align:middle line:85% position:50% size:68% AT LEAST 30 DAYS BEFORE YOU 01:40:03.530 --> 01:40:05.566 align:middle line:85% position:50% size:78% VOTE ON IT. THE PUBLIC DESERVES 01:40:05.632 --> 01:40:08.068 align:middle line:85% position:50% size:78% A FAIR CHANCE TO PARTICIPATE IN 01:40:08.135 --> 01:40:09.803 align:middle line:85% position:50% size:65% DEMOCRATIC DECISION MAKING 01:40:09.870 --> 01:40:10.904 align:middle line:85% position:50% size:65% PROCESS THAT WILL DIG INTO 01:40:10.971 --> 01:40:12.706 align:middle line:85% position:50% size:70% THEIR POCKETS FOR DECADES TO 01:40:12.773 --> 01:40:16.310 align:middle line:85% position:50% size:78% COME. THANK YOU. THANK YOU. ALL 01:40:16.377 --> 01:40:18.312 align:middle line:85% position:50% size:73% RIGHT. AND LAST BUT CERTAINLY 01:40:18.379 --> 01:40:20.314 align:middle line:85% position:50% size:73% NOT LEAST, WE ARE GOING TO BE 01:40:20.381 --> 01:40:22.082 align:middle line:85% position:50% size:68% HEARING FROM MR. BROTHWELL. 01:40:22.149 --> 01:40:25.419 align:middle line:85% position:50% size:70% THANKS FOR BEING HERE. THANK 01:40:25.486 --> 01:40:28.956 align:middle line:85% position:50% size:73% YOU, MR. TONY, FOR THE CHAIR. 01:40:29.022 --> 01:40:30.357 align:middle line:85% position:50% size:65% THANK YOU, MADAM CHAIR AND 01:40:30.424 --> 01:40:31.859 align:middle line:85% position:50% size:70% MEMBERS OF THE COMMITTEE FOR 01:40:31.925 --> 01:40:33.160 align:middle line:85% position:50% size:65% THE OPPORTUNITY TO BE HERE 01:40:33.227 --> 01:40:34.762 align:middle line:85% position:50% size:78% TODAY. AND I WOULD ALSO LIKE TO 01:40:34.828 --> 01:40:36.263 align:middle line:85% position:50% size:73% COMMEND THE BACKGROUND REPORT 01:40:36.330 --> 01:40:38.332 align:middle line:85% position:50% size:78% THAT WAS SENT OUT. I THOUGHT IT 01:40:38.399 --> 01:40:40.501 align:middle line:85% position:50% size:70% WAS COMPREHENSIVE, OBJECTIVE 01:40:40.567 --> 01:40:42.269 align:middle line:85% position:50% size:75% AND VERY INFORMATIVE. SO THANK 01:40:42.336 --> 01:40:44.772 align:middle line:85% position:50% size:70% YOU FOR THAT. MY NAME IS SAM 01:40:44.838 --> 01:40:46.573 align:middle line:85% position:50% size:60% BROTHWELL AND I HEAD THE 01:40:46.640 --> 01:40:47.641 align:middle line:85% position:50% size:58% STRATEGIC AND FINANCIAL 01:40:47.708 --> 01:40:49.843 align:middle line:85% position:50% size:58% ADVISORY PRACTICE AT MC 01:40:49.910 --> 01:40:52.012 align:middle line:85% position:50% size:78% PERFORMANCE SOLUTIONS. WE'RE AN 01:40:52.079 --> 01:40:53.747 align:middle line:85% position:50% size:68% INDEPENDENT CONSULTING FIRM 01:40:53.814 --> 01:40:55.249 align:middle line:85% position:50% size:68% THAT HAS WORKED EXCLUSIVELY 01:40:55.315 --> 01:40:56.383 align:middle line:85% position:50% size:73% WITH THE UTILITY INDUSTRY FOR 01:40:56.450 --> 01:40:59.153 align:middle line:85% position:50% size:60% MORE THAN 27 YEARS. I'VE 01:40:59.219 --> 01:41:00.587 align:middle line:85% position:50% size:73% PERSONALLY SPENT MORE THAN 40 01:41:00.654 --> 01:41:03.157 align:middle line:85% position:50% size:68% YEARS IN ENERGY AND UTILITY 01:41:03.223 --> 01:41:04.258 align:middle line:85% position:50% size:58% FINANCE. I'VE WORKED IN 01:41:04.324 --> 01:41:06.026 align:middle line:85% position:50% size:65% INVESTOR RELATIONS FOR TWO 01:41:06.093 --> 01:41:07.828 align:middle line:85% position:50% size:73% UTILITIES AND CREDIT ANALYSIS 01:41:07.895 --> 01:41:10.330 align:middle line:85% position:50% size:75% AT MOODY'S, EQUITY RESEARCH AT 01:41:10.397 --> 01:41:12.833 align:middle line:85% position:50% size:75% MERRILL LYNCH AND WELLS FARGO, 01:41:12.900 --> 01:41:14.668 align:middle line:85% position:50% size:73% AND SPENT TEN YEARS AT ENERGY 01:41:14.735 --> 01:41:17.571 align:middle line:85% position:50% size:73% INCOME PARTNERS, A $7 BILLION 01:41:17.638 --> 01:41:19.006 align:middle line:85% position:50% size:53% ENERGY INFRASTRUCTURE 01:41:19.072 --> 01:41:20.574 align:middle line:85% position:50% size:68% INVESTMENT FIRM. SO I SPENT 01:41:20.641 --> 01:41:22.576 align:middle line:85% position:50% size:70% MOST OF MY CAREER LOOKING AT 01:41:22.643 --> 01:41:24.378 align:middle line:85% position:50% size:73% UTILITIES THROUGH THE EYES OF 01:41:24.445 --> 01:41:26.647 align:middle line:85% position:50% size:78% INVESTORS. MORE RECENTLY, I LED 01:41:26.713 --> 01:41:29.082 align:middle line:85% position:50% size:70% A STUDY FOR THE AMERICAN GAS 01:41:29.149 --> 01:41:30.417 align:middle line:85% position:50% size:65% ASSOCIATION LOOKING AT WHY 01:41:30.484 --> 01:41:31.652 align:middle line:85% position:50% size:68% UTILITY CUSTOMER RATES HAVE 01:41:31.718 --> 01:41:33.420 align:middle line:85% position:50% size:58% BEEN RISING AND JUST AS 01:41:33.487 --> 01:41:35.556 align:middle line:85% position:50% size:65% IMPORTANTLY, WHY ACCESS TO 01:41:35.622 --> 01:41:37.491 align:middle line:85% position:50% size:73% CAPITAL MATTERS. IF UTILITIES 01:41:37.558 --> 01:41:39.493 align:middle line:85% position:50% size:78% ARE GOING TO CONTINUE PROVIDING 01:41:39.560 --> 01:41:41.295 align:middle line:85% position:50% size:73% SAFE, RELIABLE AND AFFORDABLE 01:41:41.361 --> 01:41:43.464 align:middle line:85% position:50% size:70% SERVICE. THESE ARE IMPORTANT 01:41:43.530 --> 01:41:45.265 align:middle line:85% position:50% size:75% ISSUES ACROSS THE COUNTRY, BUT 01:41:45.332 --> 01:41:46.700 align:middle line:85% position:50% size:60% I THINK IT'S FAIR TO SAY 01:41:46.767 --> 01:41:48.101 align:middle line:85% position:50% size:70% THEY'RE ESPECIALLY IMPORTANT 01:41:48.168 --> 01:41:50.471 align:middle line:85% position:50% size:75% HERE IN CALIFORNIA. SO THERE'S 01:41:50.537 --> 01:41:51.972 align:middle line:85% position:50% size:75% THREE KEY POINTS THAT I'D LIKE 01:41:52.039 --> 01:41:54.274 align:middle line:85% position:50% size:78% TO SHARE WITH YOU TODAY. FIRST, 01:41:54.341 --> 01:41:56.376 align:middle line:85% position:50% size:70% RISK MATTERS. RISK MATTERS A 01:41:56.443 --> 01:41:58.212 align:middle line:85% position:50% size:78% LOT. IT'S THE FULCRUM UNDER THE 01:41:58.278 --> 01:41:59.313 align:middle line:85% position:50% size:73% TIPPING POINT THAT'S REFERRED 01:41:59.379 --> 01:42:02.149 align:middle line:85% position:50% size:80% TO AT THE TITLE OF THIS HEARING. 01:42:02.216 --> 01:42:04.351 align:middle line:85% position:50% size:78% INVESTORS CONSTANTLY WEIGH RISK 01:42:04.418 --> 01:42:06.086 align:middle line:85% position:50% size:55% AGAINST RETURN IN VERY 01:42:06.153 --> 01:42:08.021 align:middle line:85% position:50% size:68% COMPETITIVE MARKETS AS RISK 01:42:08.088 --> 01:42:09.389 align:middle line:85% position:50% size:60% GOES UP. AS WE'VE HEARD, 01:42:09.456 --> 01:42:11.625 align:middle line:85% position:50% size:63% INVESTORS EXPECT A HIGHER 01:42:11.692 --> 01:42:13.126 align:middle line:85% position:50% size:70% RETURN. THAT MEANS FINANCING 01:42:13.193 --> 01:42:15.195 align:middle line:85% position:50% size:68% GETS MORE EXPENSIVE. AND AT 01:42:15.262 --> 01:42:17.364 align:middle line:85% position:50% size:78% SOME POINT, AS WE'VE ALSO HEARD 01:42:17.431 --> 01:42:19.132 align:middle line:85% position:50% size:65% TODAY, THE RISK CAN SIMPLY 01:42:19.199 --> 01:42:20.567 align:middle line:85% position:50% size:68% BECOME TOO GREAT. INVESTORS 01:42:20.634 --> 01:42:22.369 align:middle line:85% position:50% size:73% HAVE CHOICES AND THEY CAN PUT 01:42:22.436 --> 01:42:24.137 align:middle line:85% position:50% size:73% THEIR MONEY TO WORK SOMEWHERE 01:42:24.204 --> 01:42:26.306 align:middle line:85% position:50% size:78% ELSE. THAT'S AN IMPORTANT ISSUE 01:42:26.373 --> 01:42:28.242 align:middle line:85% position:50% size:78% FOR CALIFORNIA UTILITIES TODAY, 01:42:28.308 --> 01:42:30.244 align:middle line:85% position:50% size:75% AS THEY FACE SOME UNIQUE RISKS 01:42:30.310 --> 01:42:32.045 align:middle line:85% position:50% size:65% THAT AREN'T FOUND IN OTHER 01:42:32.112 --> 01:42:34.615 align:middle line:85% position:50% size:63% STATES. UNLIKE MOST OTHER 01:42:34.681 --> 01:42:36.016 align:middle line:85% position:50% size:68% INDUSTRIES, UTILITIES CAN'T 01:42:36.083 --> 01:42:37.651 align:middle line:85% position:50% size:78% SIMPLY PACK UP THEIR OPERATIONS 01:42:37.718 --> 01:42:39.219 align:middle line:85% position:50% size:70% AND MOVE TO ANOTHER STATE TO 01:42:39.286 --> 01:42:42.155 align:middle line:85% position:50% size:63% MITIGATE THOSE RISKS. BUT 01:42:42.222 --> 01:42:44.324 align:middle line:85% position:50% size:78% INVESTORS CAN MOVE THEIR MONEY, 01:42:44.391 --> 01:42:46.093 align:middle line:85% position:50% size:75% AND WE'RE SEEING SIGNS OF THAT 01:42:46.159 --> 01:42:47.861 align:middle line:85% position:50% size:65% PRESSURE TODAY AS INVESTOR 01:42:47.928 --> 01:42:49.730 align:middle line:85% position:50% size:58% CAPITAL REALLOCATION IS 01:42:49.796 --> 01:42:51.498 align:middle line:85% position:50% size:65% REFLECTED IN UTILITY STOCK 01:42:51.565 --> 01:42:53.300 align:middle line:85% position:50% size:65% PRICES, CREDIT RATINGS AND 01:42:53.367 --> 01:42:55.802 align:middle line:85% position:50% size:73% BORROWING COSTS. IMPORTANTLY, 01:42:55.869 --> 01:42:58.372 align:middle line:85% position:50% size:75% THIS ISN'T JUST A BIG ELECTRIC 01:42:58.438 --> 01:43:00.240 align:middle line:85% position:50% size:78% COMPANY ISSUE. YESTERDAY, I WAS 01:43:00.307 --> 01:43:01.975 align:middle line:85% position:50% size:60% AT A WATER CONFERENCE IN 01:43:02.042 --> 01:43:03.377 align:middle line:85% position:50% size:75% MONTEREY WHERE I HEARD A SMALL 01:43:03.443 --> 01:43:05.913 align:middle line:85% position:50% size:78% MOM AND POP WATER UTILITY WORRY 01:43:05.979 --> 01:43:08.015 align:middle line:85% position:50% size:75% ABOUT BEING SUED WHEN HYDRANTS 01:43:08.081 --> 01:43:10.217 align:middle line:85% position:50% size:58% RUN DRY, BECAUSE NOBODY 01:43:10.284 --> 01:43:12.052 align:middle line:85% position:50% size:73% UNDERSTANDS THAT THEIR SYSTEM 01:43:12.119 --> 01:43:15.222 align:middle line:85% position:50% size:80% WASN'T BUILT TO FIGHT WILDFIRES. 01:43:15.289 --> 01:43:16.790 align:middle line:85% position:50% size:70% MY SECOND POINT IS THAT DEBT 01:43:16.857 --> 01:43:18.859 align:middle line:85% position:50% size:55% AND EQUITY ARE CLOSELY 01:43:18.926 --> 01:43:20.994 align:middle line:85% position:50% size:70% CONNECTED. WE SOMETIMES TALK 01:43:21.061 --> 01:43:22.863 align:middle line:85% position:50% size:53% ABOUT BONDHOLDERS AND 01:43:22.930 --> 01:43:23.897 align:middle line:85% position:50% size:68% STOCKHOLDERS AS THOUGH THEY 01:43:23.964 --> 01:43:25.666 align:middle line:85% position:50% size:78% OPERATE IN TWO SEPARATE WORLDS, 01:43:25.732 --> 01:43:27.868 align:middle line:85% position:50% size:55% AND THEY REALLY DON'T. 01:43:27.935 --> 01:43:29.369 align:middle line:85% position:50% size:58% SHAREHOLDERS PROVIDE AN 01:43:29.436 --> 01:43:31.138 align:middle line:85% position:50% size:78% IMPORTANT FINANCIAL CUSHION FOR 01:43:31.204 --> 01:43:32.205 align:middle line:85% position:50% size:68% LENDERS BECAUSE THEY'RE THE 01:43:32.272 --> 01:43:34.408 align:middle line:85% position:50% size:70% FIRST TO ABSORB LOSSES. THAT 01:43:34.474 --> 01:43:36.143 align:middle line:85% position:50% size:70% MATTERS TO CREDITORS, AND IT 01:43:36.209 --> 01:43:38.679 align:middle line:85% position:50% size:78% MATTERS TO THE RATING AGENCIES. 01:43:38.745 --> 01:43:40.047 align:middle line:85% position:50% size:60% EQUITY IS ALSO IMPORTANT 01:43:40.113 --> 01:43:42.215 align:middle line:85% position:50% size:60% BECAUSE THE STOCK MARKET 01:43:42.282 --> 01:43:44.785 align:middle line:85% position:50% size:78% REPRESENTS A VERY LARGE POOL OF 01:43:44.851 --> 01:43:47.588 align:middle line:85% position:50% size:78% POTENTIAL CAPITAL, 3 TO 5 TIMES 01:43:47.654 --> 01:43:49.456 align:middle line:85% position:50% size:63% THE SIZE OF CORPORATE AND 01:43:49.523 --> 01:43:51.959 align:middle line:85% position:50% size:73% MUNICIPAL DEBT MARKETS. SO IF 01:43:52.025 --> 01:43:53.827 align:middle line:85% position:50% size:75% CALIFORNIA UTILITIES ARE GOING 01:43:53.894 --> 01:43:55.295 align:middle line:85% position:50% size:70% TO MAKE THE INVESTMENTS THAT 01:43:55.362 --> 01:43:58.131 align:middle line:85% position:50% size:65% THE STATE NEEDS, THEY NEED 01:43:58.198 --> 01:44:00.634 align:middle line:85% position:50% size:73% READY ACCESS TO BOTH DEBT AND 01:44:00.701 --> 01:44:02.803 align:middle line:85% position:50% size:58% EQUITY CAPITAL ON TERMS 01:44:02.869 --> 01:44:04.204 align:middle line:85% position:50% size:73% COMPETITIVE WITH UTILITIES IN 01:44:04.271 --> 01:44:07.474 align:middle line:85% position:50% size:78% OTHER STATES. MY THIRD POINT IS 01:44:07.541 --> 01:44:09.209 align:middle line:85% position:50% size:70% ABOUT THE BASIC BARGAIN THAT 01:44:09.276 --> 01:44:11.011 align:middle line:85% position:50% size:60% GOES WITH INVESTING IN A 01:44:11.078 --> 01:44:13.213 align:middle line:85% position:50% size:55% UTILITY. HISTORICALLY, 01:44:13.280 --> 01:44:14.648 align:middle line:85% position:50% size:73% UTILITIES HAVE BEEN VIEWED AS 01:44:14.715 --> 01:44:16.817 align:middle line:85% position:50% size:80% RELATIVELY LOW RISK INVESTMENTS. 01:44:16.883 --> 01:44:19.319 align:middle line:85% position:50% size:80% THEY PROVIDE ESSENTIAL SERVICES, 01:44:19.386 --> 01:44:21.488 align:middle line:85% position:50% size:65% OPERATE IN DEFINED SERVICE 01:44:21.555 --> 01:44:22.923 align:middle line:85% position:50% size:70% TERRITORIES, AND ARE LARGELY 01:44:22.990 --> 01:44:24.791 align:middle line:85% position:50% size:73% PROTECTED FROM COMPETITION BY 01:44:24.858 --> 01:44:26.560 align:middle line:85% position:50% size:68% REGULATION. IN EXCHANGE FOR 01:44:26.627 --> 01:44:28.295 align:middle line:85% position:50% size:70% THOSE PROTECTIONS, INVESTORS 01:44:28.362 --> 01:44:29.763 align:middle line:85% position:50% size:78% ACCEPT SOMETHING ELSE, AND THAT 01:44:29.830 --> 01:44:31.565 align:middle line:85% position:50% size:63% IS THAT THEIR RETURNS ARE 01:44:31.632 --> 01:44:34.134 align:middle line:85% position:50% size:68% LIMITED BY RATE REGULATION. 01:44:34.201 --> 01:44:35.902 align:middle line:85% position:50% size:75% THAT BARGAIN CAN WORK WHEN THE 01:44:35.969 --> 01:44:37.704 align:middle line:85% position:50% size:63% RISKS ARE ALSO REASONABLY 01:44:37.771 --> 01:44:40.240 align:middle line:85% position:50% size:73% LIMITED. BUT WHEN YOU COMBINE 01:44:40.307 --> 01:44:42.743 align:middle line:85% position:50% size:75% CAPPED UPSIDE WITH POTENTIALLY 01:44:42.809 --> 01:44:44.578 align:middle line:85% position:50% size:58% UNLIMITED DOWNSIDE, THE 01:44:44.645 --> 01:44:46.013 align:middle line:85% position:50% size:70% EQUATION CHANGES AND BECOMES 01:44:46.079 --> 01:44:48.849 align:middle line:85% position:50% size:75% FAR RISKIER. INVESTORS AT THAT 01:44:48.915 --> 01:44:50.584 align:middle line:85% position:50% size:68% POINT BEGIN TO ASK A PRETTY 01:44:50.651 --> 01:44:52.419 align:middle line:85% position:50% size:70% SIMPLE QUESTION WHY SHOULD I 01:44:52.486 --> 01:44:54.655 align:middle line:85% position:50% size:63% TAKE THAT RISK WHEN I CAN 01:44:54.721 --> 01:44:57.557 align:middle line:85% position:50% size:73% INVEST SOMEWHERE ELSE? AND IF 01:44:57.624 --> 01:44:59.326 align:middle line:85% position:50% size:73% ENOUGH INVESTORS COME TO THAT 01:44:59.393 --> 01:45:00.727 align:middle line:85% position:50% size:78% CONCLUSION, THE COST OF CAPITAL 01:45:00.794 --> 01:45:03.296 align:middle line:85% position:50% size:65% GOES UP AND EVENTUALLY THE 01:45:03.363 --> 01:45:04.731 align:middle line:85% position:50% size:68% AVAILABILITY OF CAPITAL CAN 01:45:04.798 --> 01:45:06.867 align:middle line:85% position:50% size:73% BECOME AN ISSUE AS WELL. THAT 01:45:06.933 --> 01:45:08.301 align:middle line:85% position:50% size:73% BRINGS ME BACK TO THE CENTRAL 01:45:08.368 --> 01:45:10.404 align:middle line:85% position:50% size:70% CHALLENGE FACING CALIFORNIA. 01:45:10.470 --> 01:45:12.606 align:middle line:85% position:50% size:65% EVERY STATE HAS TO BALANCE 01:45:12.673 --> 01:45:14.041 align:middle line:85% position:50% size:78% CUSTOMER AFFORDABILITY WITH THE 01:45:14.107 --> 01:45:16.576 align:middle line:85% position:50% size:68% NEED TO ATTRACT INVESTMENT. 01:45:16.643 --> 01:45:18.045 align:middle line:85% position:50% size:68% CALIFORNIA IS REALLY AT THE 01:45:18.111 --> 01:45:19.112 align:middle line:85% position:50% size:68% EPICENTER OF THAT CHALLENGE 01:45:19.179 --> 01:45:22.015 align:middle line:85% position:50% size:68% TODAY. INVESTORS UNDERSTAND 01:45:22.082 --> 01:45:24.151 align:middle line:85% position:50% size:75% THAT CALIFORNIA NEEDS ENORMOUS 01:45:24.217 --> 01:45:25.919 align:middle line:85% position:50% size:65% INVESTMENT TO MAINTAIN AND 01:45:25.986 --> 01:45:27.387 align:middle line:85% position:50% size:45% IMPROVE OUR ENERGY 01:45:27.454 --> 01:45:29.189 align:middle line:85% position:50% size:75% INFRASTRUCTURE. BUT THOSE SAME 01:45:29.256 --> 01:45:30.590 align:middle line:85% position:50% size:70% INVESTORS HAVE CHOICES. THEY 01:45:30.657 --> 01:45:32.526 align:middle line:85% position:50% size:73% DECIDE EVERY DAY WHERE TO PUT 01:45:32.592 --> 01:45:34.194 align:middle line:85% position:50% size:75% THEIR CAPITAL, WHETHER THAT BE 01:45:34.261 --> 01:45:36.396 align:middle line:85% position:50% size:68% IN ANOTHER STATE OR ANOTHER 01:45:36.463 --> 01:45:38.498 align:middle line:85% position:50% size:70% INDUSTRY. TODAY, THE BALANCE 01:45:38.565 --> 01:45:40.333 align:middle line:85% position:50% size:68% BETWEEN RISK AND REWARD FOR 01:45:40.400 --> 01:45:41.802 align:middle line:85% position:50% size:68% CALIFORNIA'S INVESTOR OWNED 01:45:41.868 --> 01:45:43.203 align:middle line:85% position:50% size:63% UTILITIES IS INCREASINGLY 01:45:43.270 --> 01:45:45.739 align:middle line:85% position:50% size:68% TILTED TOWARD RISK. IF THAT 01:45:45.806 --> 01:45:46.940 align:middle line:85% position:50% size:75% CONTINUES, CAPITAL WILL BECOME 01:45:47.007 --> 01:45:48.975 align:middle line:85% position:50% size:78% MORE EXPENSIVE AND GO ELSEWHERE 01:45:49.042 --> 01:45:51.178 align:middle line:85% position:50% size:73% AND VERY POSSIBLY NOT RETURN. 01:45:51.244 --> 01:45:53.080 align:middle line:85% position:50% size:78% AND THAT'S HAPPENING AT EXACTLY 01:45:53.146 --> 01:45:54.548 align:middle line:85% position:50% size:73% THE SAME TIME THAT CALIFORNIA 01:45:54.614 --> 01:45:56.216 align:middle line:85% position:50% size:70% NEEDS INVESTMENT TO MAINTAIN 01:45:56.283 --> 01:45:58.051 align:middle line:85% position:50% size:73% SAFE, RELIABLE AND AFFORDABLE 01:45:58.118 --> 01:45:59.820 align:middle line:85% position:50% size:73% ENERGY SERVICE. SO IF THERE'S 01:45:59.886 --> 01:46:00.954 align:middle line:85% position:50% size:68% ONE THOUGHT I WOULD LIKE TO 01:46:01.021 --> 01:46:02.689 align:middle line:85% position:50% size:63% LEAVE YOU WITH, IT'S THIS 01:46:02.756 --> 01:46:04.091 align:middle line:85% position:50% size:53% UTILITIES CAN'T LEAVE 01:46:04.157 --> 01:46:05.892 align:middle line:85% position:50% size:60% CALIFORNIA, BUT INVESTOR 01:46:05.959 --> 01:46:07.728 align:middle line:85% position:50% size:68% CAPITAL CAN. THANK YOU VERY 01:46:07.794 --> 01:46:09.296 align:middle line:85% position:50% size:75% MUCH FOR THE OPPORTUNITY TO BE 01:46:09.362 --> 01:46:10.464 align:middle line:85% position:50% size:63% HERE. AND I'D BE HAPPY TO 01:46:10.530 --> 01:46:14.501 align:middle line:85% position:50% size:80% ANSWER ANY QUESTIONS. THANK YOU. 01:46:14.568 --> 01:46:15.702 align:middle line:85% position:50% size:73% THANK YOU AGAIN TO ALL OF OUR 01:46:15.769 --> 01:46:17.537 align:middle line:85% position:50% size:70% PANELISTS. I THINK YOU DID A 01:46:17.604 --> 01:46:19.539 align:middle line:85% position:50% size:80% TREMENDOUS JOB OF JUST, I THINK, 01:46:19.606 --> 01:46:21.775 align:middle line:85% position:50% size:73% SETTING OUT EXACTLY WHAT'S AT 01:46:21.842 --> 01:46:25.312 align:middle line:85% position:50% size:60% STAKE, WHETHER YOU ARE A 01:46:25.378 --> 01:46:27.247 align:middle line:85% position:50% size:65% CALIFORNIA WORKER, SOMEONE 01:46:27.314 --> 01:46:29.316 align:middle line:85% position:50% size:65% WHO'S BUILDING OR BUILDING 01:46:29.382 --> 01:46:31.451 align:middle line:85% position:50% size:80% HOUSES OR WANTING TO BUY A HOME, 01:46:31.518 --> 01:46:33.720 align:middle line:85% position:50% size:80% CLEAN ENERGY PRODUCER, YOU KNOW, 01:46:33.787 --> 01:46:37.958 align:middle line:85% position:50% size:78% A UTILITY CONSUMER. AND I THINK 01:46:38.024 --> 01:46:39.159 align:middle line:85% position:50% size:73% JUST ONE THING I WANT TO MAKE 01:46:39.226 --> 01:46:40.861 align:middle line:85% position:50% size:68% SUPER EXPLICIT TO COMMITTEE 01:46:40.927 --> 01:46:42.729 align:middle line:85% position:50% size:78% MEMBERS THAT ARE HERE AND FOLKS 01:46:42.796 --> 01:46:44.264 align:middle line:85% position:50% size:73% THAT MAY BE LISTENING, ONE OF 01:46:44.331 --> 01:46:45.532 align:middle line:85% position:50% size:78% THE REASONS THAT WE'RE SPENDING 01:46:45.599 --> 01:46:46.600 align:middle line:85% position:50% size:63% AN ENTIRE HEARING, REALLY 01:46:46.666 --> 01:46:48.335 align:middle line:85% position:50% size:68% TALKING ABOUT THE MONEY AND 01:46:48.401 --> 01:46:49.803 align:middle line:85% position:50% size:65% TALKING ABOUT FINANCING IS 01:46:49.870 --> 01:46:51.938 align:middle line:85% position:50% size:80% BECAUSE AS WE'RE THINKING ABOUT, 01:46:52.005 --> 01:46:53.774 align:middle line:85% position:50% size:75% AS WE SAID, THESE GENERATIONAL 01:46:53.840 --> 01:46:55.308 align:middle line:85% position:50% size:75% INVESTMENTS, IT TURNS OUT THAT 01:46:55.375 --> 01:46:56.343 align:middle line:85% position:50% size:65% THE MOST IMPORTANT PART OF 01:46:56.409 --> 01:46:57.711 align:middle line:85% position:50% size:70% THESE PROJECTS, IT'S NOT THE 01:46:57.778 --> 01:46:59.579 align:middle line:85% position:50% size:73% STEEL IN THE GROUND, IT'S THE 01:46:59.646 --> 01:47:02.816 align:middle line:85% position:50% size:75% MONEY, IT'S THE MONEY. AND THE 01:47:02.883 --> 01:47:05.652 align:middle line:85% position:50% size:73% MORE THAT WE CAN SET A POLICY 01:47:05.719 --> 01:47:07.020 align:middle line:85% position:50% size:78% FOUNDATION THAT LOWERS THE COST 01:47:07.087 --> 01:47:09.222 align:middle line:85% position:50% size:75% OF THAT MONEY, THAT TRANSLATES 01:47:09.289 --> 01:47:10.724 align:middle line:85% position:50% size:60% INTO MASSIVE SAVINGS FOR 01:47:10.791 --> 01:47:11.958 align:middle line:85% position:50% size:70% CALIFORNIA CUSTOMERS. AND ON 01:47:12.025 --> 01:47:14.661 align:middle line:85% position:50% size:78% THE FLIP SIDE, AND, YOU KNOW, I 01:47:14.728 --> 01:47:16.096 align:middle line:85% position:50% size:80% REALLY APPRECIATE, MR. ROTHWELL, 01:47:16.163 --> 01:47:18.999 align:middle line:85% position:50% size:65% YOUR COMMENTS, IF WE DON'T 01:47:19.065 --> 01:47:22.302 align:middle line:85% position:50% size:78% RESET THAT BALANCE AND THE COST 01:47:22.369 --> 01:47:24.004 align:middle line:85% position:50% size:68% OF THE MONEY SPIRALS OUT OF 01:47:24.070 --> 01:47:26.373 align:middle line:85% position:50% size:68% CONTROL, THAT IS ULTIMATELY 01:47:26.439 --> 01:47:27.974 align:middle line:85% position:50% size:70% GOING TO HIT THE BOTTOM LINE 01:47:28.041 --> 01:47:29.810 align:middle line:85% position:50% size:68% FOR ALL OF THE CONSTITUENTS 01:47:29.876 --> 01:47:32.012 align:middle line:85% position:50% size:68% THAT WE REPRESENT. OKAY. SO 01:47:32.078 --> 01:47:34.481 align:middle line:85% position:50% size:70% WITH THAT, ANY QUESTIONS FOR 01:47:34.548 --> 01:47:39.352 align:middle line:85% position:50% size:70% PANELISTS, MISS PAPIN? WELL, 01:47:39.419 --> 01:47:40.654 align:middle line:85% position:50% size:68% THANK YOU, MADAM CHAIR. AND 01:47:40.720 --> 01:47:42.355 align:middle line:85% position:50% size:78% THAT WAS ONE OF THE REASONS WHY 01:47:42.422 --> 01:47:45.258 align:middle line:85% position:50% size:78% I WANTED TO COME TODAY, BECAUSE 01:47:45.325 --> 01:47:46.726 align:middle line:85% position:50% size:78% ONE THING I LEARNED EARLY ON IS 01:47:46.793 --> 01:47:48.495 align:middle line:85% position:50% size:63% NOTHING HAPPENS IN PUBLIC 01:47:48.562 --> 01:47:49.963 align:middle line:85% position:50% size:78% POLICY WITHOUT THE GOD ALMIGHTY 01:47:50.030 --> 01:47:55.402 align:middle line:85% position:50% size:63% DOLLAR WORKING. AND SO IF 01:47:55.468 --> 01:47:56.403 align:middle line:85% position:50% size:60% THERE'S A HEARING THAT'S 01:47:56.469 --> 01:47:57.537 align:middle line:85% position:50% size:58% IMPORTANT TO 40 MILLION 01:47:57.604 --> 01:47:59.639 align:middle line:85% position:50% size:78% CALIFORNIANS, IT'S THIS ONE. SO 01:47:59.706 --> 01:48:01.208 align:middle line:85% position:50% size:75% I APPRECIATE THE EFFORT THAT'S 01:48:01.274 --> 01:48:03.109 align:middle line:85% position:50% size:78% GONE INTO IT. AND YOUR ATTEMPTS 01:48:03.176 --> 01:48:05.045 align:middle line:85% position:50% size:73% TO GET DIFFERENT PERSPECTIVES 01:48:05.111 --> 01:48:07.247 align:middle line:85% position:50% size:75% ON, ON HOW THIS WORKS. SO I'VE 01:48:07.314 --> 01:48:11.585 align:middle line:85% position:50% size:73% GOT A COUPLE QUESTIONS AND PG 01:48:11.651 --> 01:48:13.353 align:middle line:85% position:50% size:70% AND E, YOU'RE HERE. SO LUCKY 01:48:13.420 --> 01:48:15.155 align:middle line:85% position:50% size:75% YOU AND I HAPPEN TO BE IN YOUR 01:48:15.222 --> 01:48:19.059 align:middle line:85% position:50% size:75% JURISDICTION OR YOU MINE. SO I 01:48:19.125 --> 01:48:21.428 align:middle line:85% position:50% size:78% WANT TO TALK A LITTLE BIT ABOUT 01:48:21.494 --> 01:48:23.897 align:middle line:85% position:50% size:73% THE $2 BILLION REDUCTION. AND 01:48:23.964 --> 01:48:25.565 align:middle line:85% position:50% size:75% THE FIRST QUESTION THAT I HAVE 01:48:25.632 --> 01:48:29.836 align:middle line:85% position:50% size:70% FOR YOU IS. IS THAT GOING TO 01:48:29.903 --> 01:48:32.038 align:middle line:85% position:50% size:78% HAPPEN NO MATTER WHAT? SO WE'VE 01:48:32.105 --> 01:48:33.874 align:middle line:85% position:50% size:75% TALKED ABOUT, AND MR. DUNMEYER 01:48:33.940 --> 01:48:37.143 align:middle line:85% position:50% size:63% USED THE THOSE EVIL WORDS 01:48:37.210 --> 01:48:39.613 align:middle line:85% position:50% size:70% SPECIAL SESSION. BUT I WOULD 01:48:39.679 --> 01:48:41.414 align:middle line:85% position:50% size:55% LIKE TO KNOW, IS THERE 01:48:41.481 --> 01:48:42.883 align:middle line:85% position:50% size:63% SOMETHING THAT'S GOING TO 01:48:42.949 --> 01:48:45.752 align:middle line:85% position:50% size:70% CHANGE THAT? THE LETTER THAT 01:48:45.819 --> 01:48:48.288 align:middle line:85% position:50% size:68% CAME OUT AND THIS POTENTIAL 01:48:48.355 --> 01:48:50.056 align:middle line:85% position:50% size:75% REDUCTION OF $2 BILLION. YEAH. 01:48:50.123 --> 01:48:53.326 align:middle line:85% position:50% size:78% THANK YOU FOR THAT QUESTION. ON 01:48:53.393 --> 01:48:54.828 align:middle line:85% position:50% size:68% BEHALF OF MY COLLEAGUES, WE 01:48:54.895 --> 01:48:56.563 align:middle line:85% position:50% size:78% WOULD LOVE TO DO THIS WORK. AND 01:48:56.630 --> 01:48:58.431 align:middle line:85% position:50% size:78% IT'S HARD TO HEAR ON THIS PANEL 01:48:58.498 --> 01:49:00.867 align:middle line:85% position:50% size:70% THE IMPLICATIONS OF WHAT THE 01:49:00.934 --> 01:49:02.636 align:middle line:85% position:50% size:55% DEFERRAL MEANS FOR OUR 01:49:02.702 --> 01:49:05.939 align:middle line:85% position:50% size:68% CUSTOMERS, GIVEN THE ISSUES 01:49:06.006 --> 01:49:07.407 align:middle line:85% position:50% size:73% WE'RE TALKING ABOUT TODAY. WE 01:49:07.474 --> 01:49:09.342 align:middle line:85% position:50% size:70% WE DON'T SEE A PATH TO DOING 01:49:09.409 --> 01:49:11.611 align:middle line:85% position:50% size:70% WE'LL NEED TO DEFER IN 2027. 01:49:11.678 --> 01:49:14.281 align:middle line:85% position:50% size:75% BUT, YOU KNOW, AS I SAID IN MY 01:49:14.347 --> 01:49:16.082 align:middle line:85% position:50% size:70% OPENING REMARKS, OUR HOPE IS 01:49:16.149 --> 01:49:17.250 align:middle line:85% position:50% size:70% THAT THE STATE WILL ACT WITH 01:49:17.317 --> 01:49:19.085 align:middle line:85% position:50% size:78% URGENCY AND IMPLEMENT SOLUTIONS 01:49:19.152 --> 01:49:21.588 align:middle line:85% position:50% size:65% THAT CAN SUPPORT A DURABLE 01:49:21.655 --> 01:49:23.089 align:middle line:85% position:50% size:75% WILDFIRE FRAMEWORK, WHICH, YOU 01:49:23.156 --> 01:49:24.457 align:middle line:85% position:50% size:75% KNOW, COULD SUPPORT OUR CREDIT 01:49:24.524 --> 01:49:26.626 align:middle line:85% position:50% size:75% QUALITY AND ENABLE US TO TO DO 01:49:26.693 --> 01:49:28.461 align:middle line:85% position:50% size:70% MORE WORK FOR THE STATE. YOU 01:49:28.528 --> 01:49:30.563 align:middle line:85% position:50% size:55% KNOW, THE SPECIFICS OF 01:49:30.630 --> 01:49:32.098 align:middle line:85% position:50% size:78% OPERATIONALLY WHEN THAT HAPPENS 01:49:32.165 --> 01:49:33.800 align:middle line:85% position:50% size:68% AND HOW QUICKLY WE CAN RAMP 01:49:33.867 --> 01:49:35.302 align:middle line:85% position:50% size:73% BACK UP THE WORK. AND I THINK 01:49:35.368 --> 01:49:36.870 align:middle line:85% position:50% size:73% THERE'S A LOT OF NUANCES THAT 01:49:36.937 --> 01:49:38.505 align:middle line:85% position:50% size:68% RELATE TO TIMING, BUT WE WE 01:49:38.571 --> 01:49:40.774 align:middle line:85% position:50% size:75% WILL BE EAGER AND READY TO TRY 01:49:40.840 --> 01:49:42.909 align:middle line:85% position:50% size:73% TO DO THAT IF THE OPPORTUNITY 01:49:42.976 --> 01:49:47.547 align:middle line:85% position:50% size:63% ARISES. OKAY. ASSUMING IT 01:49:47.614 --> 01:49:49.282 align:middle line:85% position:50% size:63% DOESN'T ARISE, HOW DO YOU 01:49:49.349 --> 01:49:51.851 align:middle line:85% position:50% size:78% INTEND TO ALLOCATE THE PAIN? IN 01:49:51.918 --> 01:49:53.386 align:middle line:85% position:50% size:73% OTHER WORDS, WHAT IS THE PLAN 01:49:53.453 --> 01:49:55.422 align:middle line:85% position:50% size:70% AS TO WHERE THESE CUTS MIGHT 01:49:55.488 --> 01:49:58.091 align:middle line:85% position:50% size:63% OCCUR? YEAH. ANOTHER VERY 01:49:58.158 --> 01:49:59.793 align:middle line:85% position:50% size:73% IMPORTANT QUESTION. AND MAYBE 01:49:59.859 --> 01:50:01.628 align:middle line:85% position:50% size:63% FIRST, JUST TO PUT THE $2 01:50:01.695 --> 01:50:03.763 align:middle line:85% position:50% size:75% BILLION INTO CONTEXT. SO AFTER 01:50:03.830 --> 01:50:05.231 align:middle line:85% position:50% size:68% TAKING THOSE DEFERRALS INTO 01:50:05.298 --> 01:50:09.102 align:middle line:85% position:50% size:75% ACCOUNT IN 2027, WE WILL SPEND 01:50:09.169 --> 01:50:10.937 align:middle line:85% position:50% size:73% $11.4 BILLION. SO WE'RE STILL 01:50:11.004 --> 01:50:12.739 align:middle line:85% position:50% size:75% INVESTING A SIGNIFICANT AMOUNT 01:50:12.806 --> 01:50:14.407 align:middle line:85% position:50% size:73% IN DOING A LOT OF WORK. WE'VE 01:50:14.474 --> 01:50:15.976 align:middle line:85% position:50% size:70% BEEN VERY CLEAR THAT WE WILL 01:50:16.042 --> 01:50:18.478 align:middle line:85% position:50% size:60% NOT COMPROMISE SAFETY OR 01:50:18.545 --> 01:50:20.246 align:middle line:85% position:50% size:70% COMPLIANCE IN THINKING ABOUT 01:50:20.313 --> 01:50:24.284 align:middle line:85% position:50% size:78% WHAT WORK NEEDS TO BE DEFERRED. 01:50:24.351 --> 01:50:25.719 align:middle line:85% position:50% size:68% AND SO WE WON'T TOUCH THOSE 01:50:25.785 --> 01:50:28.188 align:middle line:85% position:50% size:65% CORE RESPONSIBILITIES. BUT 01:50:28.254 --> 01:50:29.222 align:middle line:85% position:50% size:73% UNFORTUNATELY, THAT DOES MEAN 01:50:29.289 --> 01:50:30.790 align:middle line:85% position:50% size:68% THAT OTHER AREAS THAT DON'T 01:50:30.857 --> 01:50:33.626 align:middle line:85% position:50% size:73% TOUCH SAFETY COMPLIANCE, SUCH 01:50:33.693 --> 01:50:34.494 align:middle line:85% position:50% size:73% AS WE'RE HEARING FROM SOME OF 01:50:34.561 --> 01:50:36.496 align:middle line:85% position:50% size:73% MY CO-PANELISTS HERE, ARE THE 01:50:36.563 --> 01:50:37.597 align:middle line:85% position:50% size:60% AREAS THAT THAT COULD BE 01:50:37.664 --> 01:50:39.666 align:middle line:85% position:50% size:73% IMPACTED. AND YOU EXPECT THAT 01:50:39.733 --> 01:50:42.268 align:middle line:85% position:50% size:75% TO START IN 27, CORRECT? OKAY. 01:50:42.335 --> 01:50:45.205 align:middle line:85% position:50% size:68% SO JUST SO YOU KNOW, I HAVE 01:50:45.271 --> 01:50:47.007 align:middle line:85% position:50% size:73% THREE PARTICULAR INSTANCES IN 01:50:47.073 --> 01:50:48.408 align:middle line:85% position:50% size:73% MY DISTRICT THAT HAVE COME TO 01:50:48.475 --> 01:50:51.344 align:middle line:85% position:50% size:78% LIGHT IN THE LAST WEEK, OR P, G 01:50:51.411 --> 01:50:53.780 align:middle line:85% position:50% size:73% AND E IS HOLDING THEM UP. ONE 01:50:53.847 --> 01:50:55.215 align:middle line:85% position:50% size:60% IS AN AFFORDABLE HOUSING 01:50:55.281 --> 01:50:57.384 align:middle line:85% position:50% size:73% COMPLEX THAT HAS ALREADY BEEN 01:50:57.450 --> 01:50:58.785 align:middle line:85% position:50% size:75% COMPLETED. THEY HAVE HAD THEIR 01:50:58.852 --> 01:51:02.422 align:middle line:85% position:50% size:78% SCHEDULING FOR A HOOKUP SET AND 01:51:02.489 --> 01:51:04.224 align:middle line:85% position:50% size:70% RESET THREE DIFFERENT TIMES. 01:51:04.290 --> 01:51:06.426 align:middle line:85% position:50% size:78% THAT'S NOT OKAY. THE SECOND ONE 01:51:06.493 --> 01:51:08.161 align:middle line:85% position:50% size:65% IS, IS A PROJECT THAT JUST 01:51:08.228 --> 01:51:10.030 align:middle line:85% position:50% size:73% INVOLVES A DEMOLITION SO THAT 01:51:10.096 --> 01:51:11.898 align:middle line:85% position:50% size:75% THE THE NEW PROJECT CAN START, 01:51:11.965 --> 01:51:13.533 align:middle line:85% position:50% size:73% WHICH MEANS A LOT OF ECONOMIC 01:51:13.600 --> 01:51:15.769 align:middle line:85% position:50% size:73% VITALITY TO MY OWN CITY. THEY 01:51:15.835 --> 01:51:18.204 align:middle line:85% position:50% size:75% CAN'T EVEN GET AN APPOINTMENT. 01:51:18.271 --> 01:51:19.706 align:middle line:85% position:50% size:68% AND THEN THE THIRD ONE IS A 01:51:19.773 --> 01:51:21.207 align:middle line:85% position:50% size:70% PUBLIC WORKS PROJECT THAT IS 01:51:21.274 --> 01:51:23.309 align:middle line:85% position:50% size:63% ALREADY UNDERWAY AND WILL 01:51:23.376 --> 01:51:26.579 align:middle line:85% position:50% size:63% IMPACT THE ABILITY TO THE 01:51:26.646 --> 01:51:28.348 align:middle line:85% position:50% size:73% FINANCING RELATED TO THAT AND 01:51:28.415 --> 01:51:29.616 align:middle line:85% position:50% size:78% TAX CREDITS THAT ARE RELATED TO 01:51:29.682 --> 01:51:31.518 align:middle line:85% position:50% size:73% THAT. AND BY THE WAY, THE TAX 01:51:31.584 --> 01:51:32.652 align:middle line:85% position:50% size:68% CREDITS ON THE UNAFFORDABLE 01:51:32.719 --> 01:51:34.821 align:middle line:85% position:50% size:75% HOUSING PROJECT MAY ALSO BE IN 01:51:34.888 --> 01:51:37.357 align:middle line:85% position:50% size:68% JEOPARDY. SO YOU'RE TALKING 01:51:37.424 --> 01:51:39.059 align:middle line:85% position:50% size:60% ABOUT 27, BUT THAT'S NOT 01:51:39.125 --> 01:51:40.960 align:middle line:85% position:50% size:78% HAPPENING IN MY DISTRICT. AND I 01:51:41.027 --> 01:51:42.395 align:middle line:85% position:50% size:68% DROVE UP HERE TODAY, PARTLY 01:51:42.462 --> 01:51:44.197 align:middle line:85% position:50% size:73% BECAUSE I GOT FOLKS SCREAMING 01:51:44.264 --> 01:51:45.999 align:middle line:85% position:50% size:80% AT ME SAYING, WHAT IS PGE DOING? 01:51:46.066 --> 01:51:48.568 align:middle line:85% position:50% size:68% SO YOU'RE TELLING ME 27 AND 01:51:48.635 --> 01:51:50.203 align:middle line:85% position:50% size:75% THAT'S WHY I ASKED, HOW IS THE 01:51:50.270 --> 01:51:51.471 align:middle line:85% position:50% size:78% PAIN GOING TO BE ALLOCATED? BUT 01:51:51.538 --> 01:51:54.641 align:middle line:85% position:50% size:58% IT'S HAPPENING NOW. AND 01:51:54.707 --> 01:51:55.708 align:middle line:85% position:50% size:73% UNFORTUNATELY, YOU MAY BE THE 01:51:55.775 --> 01:51:56.810 align:middle line:85% position:50% size:68% SACRIFICIAL LAMB PERSONALLY 01:51:56.876 --> 01:51:58.244 align:middle line:85% position:50% size:75% WHO'S HERE, BUT WE'RE GOING TO 01:51:58.311 --> 01:52:00.313 align:middle line:85% position:50% size:75% NEED TO GET SOME ACTION BEFORE 01:52:00.380 --> 01:52:01.915 align:middle line:85% position:50% size:73% 27. I CAN'T HAVE THESE THINGS 01:52:01.981 --> 01:52:02.916 align:middle line:85% position:50% size:73% HAPPENING IN MY DISTRICT. FOR 01:52:02.982 --> 01:52:04.317 align:middle line:85% position:50% size:65% WHAT IT'S WORTH, YOU DON'T 01:52:04.384 --> 01:52:05.418 align:middle line:85% position:50% size:78% NECESSARILY NEED TO ANSWER THAT 01:52:05.485 --> 01:52:06.152 align:middle line:85% position:50% size:65% QUESTION IF YOU'D LIKE TO, 01:52:06.219 --> 01:52:07.987 align:middle line:85% position:50% size:73% PLEASE GO AHEAD. BUT IT'S NOT 01:52:08.054 --> 01:52:09.489 align:middle line:85% position:50% size:73% REALLY A QUESTION. BUT IF YOU 01:52:09.556 --> 01:52:10.924 align:middle line:85% position:50% size:73% WANT TO ADDRESS THE CONCERNS, 01:52:10.990 --> 01:52:12.692 align:middle line:85% position:50% size:73% I'M ALL EARS. WELL, THANK YOU 01:52:12.759 --> 01:52:14.761 align:middle line:85% position:50% size:75% FOR SHARING IT. YOU KNOW, I AM 01:52:14.828 --> 01:52:16.563 align:middle line:85% position:50% size:70% TREASURER. AND SO MY SORT OF 01:52:16.629 --> 01:52:18.531 align:middle line:85% position:50% size:78% SCOPE OF ROLE, I DON'T KNOW THE 01:52:18.598 --> 01:52:20.133 align:middle line:85% position:50% size:60% DETAILS OF WHAT WOULD BE 01:52:20.200 --> 01:52:22.335 align:middle line:85% position:50% size:80% IMPACTING WORK IN YOUR DISTRICT. 01:52:22.402 --> 01:52:24.871 align:middle line:85% position:50% size:75% YOU KNOW, AS MR. DONMOYER HERE 01:52:24.938 --> 01:52:27.040 align:middle line:85% position:50% size:73% SHARED, OUR FOCUS HAS BEEN ON 01:52:27.107 --> 01:52:28.441 align:middle line:85% position:50% size:60% IMPROVING OUR CONNECTION 01:52:28.508 --> 01:52:31.277 align:middle line:85% position:50% size:75% TIMELINES. AND SO I DON'T KNOW 01:52:31.344 --> 01:52:32.479 align:middle line:85% position:50% size:78% THE DETAILS, BUT I THINK WE CAN 01:52:32.545 --> 01:52:34.247 align:middle line:85% position:50% size:65% CERTAINLY FOLLOW UP. AND I 01:52:34.314 --> 01:52:35.281 align:middle line:85% position:50% size:68% APPRECIATE YOU RAISING YOUR 01:52:35.348 --> 01:52:36.349 align:middle line:85% position:50% size:70% CONCERN. SURE, SURE. I MEAN, 01:52:36.416 --> 01:52:37.450 align:middle line:85% position:50% size:55% THE CONCERN IS ALREADY 01:52:37.517 --> 01:52:39.552 align:middle line:85% position:50% size:70% SCHEDULED AND THEN TAKEN OFF 01:52:39.619 --> 01:52:40.620 align:middle line:85% position:50% size:65% THE SCHEDULE NOT ONCE, NOT 01:52:40.687 --> 01:52:42.122 align:middle line:85% position:50% size:70% TWICE, BUT THRICE. OKAY. AND 01:52:42.188 --> 01:52:43.756 align:middle line:85% position:50% size:75% THEN THE FINAL QUESTION THAT I 01:52:43.823 --> 01:52:45.725 align:middle line:85% position:50% size:58% HAVE WAS, YOU HAVE SOME 01:52:45.792 --> 01:52:47.227 align:middle line:85% position:50% size:78% COMMENTS TO MAKE ABOUT THE TURN 01:52:47.293 --> 01:52:48.695 align:middle line:85% position:50% size:78% FOLKS AND THEIR SUGGESTIONS AND 01:52:48.761 --> 01:52:51.131 align:middle line:85% position:50% size:80% HOW THAT MIGHT WORK OR NOT WORK, 01:52:51.197 --> 01:52:53.333 align:middle line:85% position:50% size:73% BECAUSE I'D LOVE TO HEAR, YOU 01:52:53.399 --> 01:52:55.835 align:middle line:85% position:50% size:73% KNOW, IN IOUS RESPONSE TO IT. 01:52:55.902 --> 01:52:59.038 align:middle line:85% position:50% size:78% SURE. YOU KNOW, I'LL START WITH 01:52:59.105 --> 01:53:00.874 align:middle line:85% position:50% size:63% SAYING THAT WE AGREE WITH 01:53:00.940 --> 01:53:02.308 align:middle line:85% position:50% size:73% EXECUTIVE DIRECTOR TONY, THAT 01:53:02.375 --> 01:53:03.476 align:middle line:85% position:50% size:68% REDUCING RISK IS ONE OF THE 01:53:03.543 --> 01:53:05.345 align:middle line:85% position:50% size:70% BEST WAYS TO ADDRESS SOME OF 01:53:05.411 --> 01:53:06.980 align:middle line:85% position:50% size:65% THESE CHALLENGES. AND SO I 01:53:07.046 --> 01:53:09.849 align:middle line:85% position:50% size:70% COULD NOT AGREE MORE IN THAT 01:53:09.916 --> 01:53:11.117 align:middle line:85% position:50% size:73% OPPORTUNITY, BOTH OPERATIONAL 01:53:11.184 --> 01:53:15.555 align:middle line:85% position:50% size:70% RISK AND FINANCIAL RISK. BUT 01:53:15.622 --> 01:53:18.124 align:middle line:85% position:50% size:50% HIS POINTS ABOUT THE 01:53:18.191 --> 01:53:19.159 align:middle line:85% position:50% size:60% TECHNICALITIES OF HOW WE 01:53:19.225 --> 01:53:21.461 align:middle line:85% position:50% size:75% STRUCTURE OUR BALANCE SHEET IS 01:53:21.528 --> 01:53:23.563 align:middle line:85% position:50% size:75% A TOPIC THAT'S NOT NEW. IT WAS 01:53:23.630 --> 01:53:24.697 align:middle line:85% position:50% size:75% COVERED IN LAST YEAR'S COST OF 01:53:24.764 --> 01:53:27.567 align:middle line:85% position:50% size:73% CAPITAL PROCEEDING. I FRANKLY 01:53:27.634 --> 01:53:28.902 align:middle line:85% position:50% size:55% FIND HIS COMMENTS VERY 01:53:28.968 --> 01:53:30.003 align:middle line:85% position:50% size:58% CONCERNING. I THINK THE 01:53:30.069 --> 01:53:31.104 align:middle line:85% position:50% size:73% SUGGESTIONS HE WAS LAYING OUT 01:53:31.171 --> 01:53:32.505 align:middle line:85% position:50% size:70% WOULD ACTUALLY UNDERMINE OUR 01:53:32.572 --> 01:53:35.441 align:middle line:85% position:50% size:78% CREDIT QUALITY, NOT SUPPORT IT. 01:53:35.508 --> 01:53:37.210 align:middle line:85% position:50% size:78% AND JUST A COUPLE DATA POINTS I 01:53:37.277 --> 01:53:41.514 align:middle line:85% position:50% size:75% GUESS I CAN SHARE AROUND THAT. 01:53:41.581 --> 01:53:43.316 align:middle line:85% position:50% size:78% FIRST, I THINK HE USED THE WORD 01:53:43.383 --> 01:53:45.118 align:middle line:85% position:50% size:75% REQUIRE THE UTILITIES TO ISSUE 01:53:45.185 --> 01:53:47.320 align:middle line:85% position:50% size:78% EQUITY TO INCREASE THEIR EQUITY 01:53:47.387 --> 01:53:49.856 align:middle line:85% position:50% size:73% RATIO. TODAY, GIVEN WHERE OUR 01:53:49.923 --> 01:53:51.724 align:middle line:85% position:50% size:73% STOCK PRICE TRADES, WE LIKELY 01:53:51.791 --> 01:53:53.393 align:middle line:85% position:50% size:75% DON'T HAVE ACCESS TO EQUITY AT 01:53:53.459 --> 01:53:54.861 align:middle line:85% position:50% size:78% REASONABLE COST. WE ARE WORKING 01:53:54.928 --> 01:53:56.663 align:middle line:85% position:50% size:75% VERY HARD NOT TO HAVE TO GO TO 01:53:56.729 --> 01:53:59.532 align:middle line:85% position:50% size:73% THE MARKET, BECAUSE THAT IS A 01:53:59.599 --> 01:54:01.334 align:middle line:85% position:50% size:65% VERY FINANCIALLY IMPRUDENT 01:54:01.401 --> 01:54:02.135 align:middle line:85% position:50% size:68% SITUATION, AND IT'S ONE THE 01:54:02.202 --> 01:54:03.670 align:middle line:85% position:50% size:75% RATING AGENCIES WOULD NOT WANT 01:54:03.736 --> 01:54:07.440 align:middle line:85% position:50% size:70% US DOING. AND SO THE PREMISE 01:54:07.507 --> 01:54:09.943 align:middle line:85% position:50% size:80% ALONE, I THINK HAS HAS CONCERNS. 01:54:10.009 --> 01:54:12.145 align:middle line:85% position:50% size:75% BUT MAYBE MORE IMPORTANTLY, IF 01:54:12.212 --> 01:54:13.546 align:middle line:85% position:50% size:70% YOU LOOK AT THE PUBLICATIONS 01:54:13.613 --> 01:54:14.647 align:middle line:85% position:50% size:73% THAT THE RATING AGENCIES HAVE 01:54:14.714 --> 01:54:16.449 align:middle line:85% position:50% size:70% PUT OUT OVER THE LAST MONTH, 01:54:16.516 --> 01:54:17.917 align:middle line:85% position:50% size:70% THEY'RE VERY CLEAR WHEN THEY 01:54:17.984 --> 01:54:19.652 align:middle line:85% position:50% size:75% ASSESS AN ISSUER LIKE PG AND E 01:54:19.719 --> 01:54:21.421 align:middle line:85% position:50% size:68% TO SAY, HERE ARE THE THINGS 01:54:21.487 --> 01:54:22.655 align:middle line:85% position:50% size:68% WE'D LIKE TO SEE THAT COULD 01:54:22.722 --> 01:54:23.656 align:middle line:85% position:50% size:68% TRIGGER IMPROVEMENT IN YOUR 01:54:23.723 --> 01:54:25.325 align:middle line:85% position:50% size:73% RATINGS. HERE ARE THINGS THAT 01:54:25.391 --> 01:54:27.227 align:middle line:85% position:50% size:65% COULD, YOU KNOW, RESULT IN 01:54:27.293 --> 01:54:30.430 align:middle line:85% position:50% size:60% REDUCTIONS. THEY ARE NOT 01:54:30.496 --> 01:54:31.598 align:middle line:85% position:50% size:73% FOCUSED ON OUR CREDIT METRICS 01:54:31.664 --> 01:54:33.333 align:middle line:85% position:50% size:78% RIGHT NOW. AND THEY WILL SAY IF 01:54:33.399 --> 01:54:34.834 align:middle line:85% position:50% size:68% YOU TALK TO THEM, PG CREDIT 01:54:34.901 --> 01:54:35.902 align:middle line:85% position:50% size:68% METRICS ARE CONSISTENT WITH 01:54:35.969 --> 01:54:38.037 align:middle line:85% position:50% size:55% OTHER INVESTMENT GRADE 01:54:38.104 --> 01:54:40.206 align:middle line:85% position:50% size:70% UTILITIES. THEY ARE NARROWLY 01:54:40.273 --> 01:54:41.474 align:middle line:85% position:50% size:73% FOCUSED ON THE WILDFIRE RISKS 01:54:41.541 --> 01:54:43.176 align:middle line:85% position:50% size:75% WE ARE TALKING ABOUT TODAY AND 01:54:43.243 --> 01:54:44.544 align:middle line:85% position:50% size:68% THE POTENTIAL FOR UNLIMITED 01:54:44.611 --> 01:54:47.814 align:middle line:85% position:50% size:78% FINANCIAL EXPOSURE. AND SO EVEN 01:54:47.880 --> 01:54:49.616 align:middle line:85% position:50% size:70% IF ONE WERE TO FIND A WAY TO 01:54:49.682 --> 01:54:52.118 align:middle line:85% position:50% size:68% MAYBE TRY TO IMPLEMENT THAT 01:54:52.185 --> 01:54:53.253 align:middle line:85% position:50% size:73% CONCEPT, IT WOULD NOT ADDRESS 01:54:53.319 --> 01:54:54.254 align:middle line:85% position:50% size:63% THE CORE PROBLEM THAT THE 01:54:54.320 --> 01:54:56.456 align:middle line:85% position:50% size:78% RATING AGENCIES ARE FOCUSED ON. 01:54:56.522 --> 01:55:00.727 align:middle line:85% position:50% size:78% AND SO. I THINK I WOULD LIKE TO 01:55:00.793 --> 01:55:02.528 align:middle line:85% position:50% size:75% BRING IT BACK. I GUESS I THINK 01:55:02.595 --> 01:55:04.631 align:middle line:85% position:50% size:70% THAT THE CORE ELEMENT OF THE 01:55:04.697 --> 01:55:05.765 align:middle line:85% position:50% size:73% CONVERSATION WE HAVE HERE IS, 01:55:05.832 --> 01:55:07.667 align:middle line:85% position:50% size:78% IS WHERE IS THEIR FOCUS AND HOW 01:55:07.734 --> 01:55:09.802 align:middle line:85% position:50% size:63% CAN THAT BE SUPPORTIVE OF 01:55:09.869 --> 01:55:15.842 align:middle line:85% position:50% size:78% QUALITY? QUICK QUESTION. I, I'M 01:55:15.908 --> 01:55:18.711 align:middle line:85% position:50% size:73% ASSUMING, AND I DON'T WANT TO 01:55:18.778 --> 01:55:22.682 align:middle line:85% position:50% size:78% ASSUME. THE SECOND PART OF THAT 01:55:22.749 --> 01:55:24.884 align:middle line:85% position:50% size:73% PRESENTATION AS IT RELATED TO 01:55:24.951 --> 01:55:26.286 align:middle line:85% position:50% size:70% PAYMENTS OUT OF THE WILDFIRE 01:55:26.352 --> 01:55:28.121 align:middle line:85% position:50% size:63% FUND. YOU MIGHT HAVE SOME 01:55:28.187 --> 01:55:31.324 align:middle line:85% position:50% size:73% INTEREST IN THAT AND CHANGING 01:55:31.391 --> 01:55:36.429 align:middle line:85% position:50% size:78% HOW THAT EQUATION WORKS. I JUST 01:55:36.496 --> 01:55:37.397 align:middle line:85% position:50% size:78% WANT TO UNDERSTAND THE QUESTION 01:55:37.463 --> 01:55:39.632 align:middle line:85% position:50% size:73% WHICH PRESENTATION FROM TURN, 01:55:39.699 --> 01:55:41.768 align:middle line:85% position:50% size:55% THEIR SECOND POINT WAS 01:55:41.834 --> 01:55:43.202 align:middle line:85% position:50% size:70% RESTRICTING AND LIMITING HOW 01:55:43.269 --> 01:55:44.637 align:middle line:85% position:50% size:68% PEOPLE CAN RECOVER FROM THE 01:55:44.704 --> 01:55:46.906 align:middle line:85% position:50% size:78% WILDFIRE FUND, WHETHER IT'S DID 01:55:46.973 --> 01:55:48.941 align:middle line:85% position:50% size:65% YOU NOT SAY, YEAH, WHO CAN 01:55:49.008 --> 01:55:50.743 align:middle line:85% position:50% size:65% RECOVER? I THINK WE HAD WE 01:55:50.810 --> 01:55:52.512 align:middle line:85% position:50% size:75% REFERRED TO HEDGE FUNDS, HEDGE 01:55:52.578 --> 01:55:54.714 align:middle line:85% position:50% size:70% FUNDS, ATTORNEY'S FEES, ETC. 01:55:54.781 --> 01:55:57.250 align:middle line:85% position:50% size:65% SURE. WHAT I WOULD SAY AND 01:55:57.317 --> 01:55:58.318 align:middle line:85% position:50% size:60% AGAIN, SORT OF TRYING TO 01:55:58.384 --> 01:56:00.186 align:middle line:85% position:50% size:68% REPRESENT THE RATING AGENCY 01:56:00.253 --> 01:56:02.655 align:middle line:85% position:50% size:70% PERSPECTIVE IS THEIR PRIMARY 01:56:02.722 --> 01:56:04.457 align:middle line:85% position:50% size:63% FOCUS IS ON THE UNLIMITED 01:56:04.524 --> 01:56:07.427 align:middle line:85% position:50% size:73% EXPOSURE THAT THEY FOUND, THE 01:56:07.493 --> 01:56:08.394 align:middle line:85% position:50% size:70% DISALLOWANCE LIMITATION THAT 01:56:08.461 --> 01:56:11.331 align:middle line:85% position:50% size:73% WAS IMPLEMENTED WITH AB 1054, 01:56:11.397 --> 01:56:14.534 align:middle line:85% position:50% size:70% WHICH IS BASED ON 20% OF OUR 01:56:14.600 --> 01:56:16.402 align:middle line:85% position:50% size:68% ELECTRIC EQUITY TỊ AND RATE 01:56:16.469 --> 01:56:18.905 align:middle line:85% position:50% size:63% BASE. THAT WAS A CRITICAL 01:56:18.971 --> 01:56:20.340 align:middle line:85% position:50% size:73% ELEMENT OF CREDIT QUALITY FOR 01:56:20.406 --> 01:56:23.209 align:middle line:85% position:50% size:78% THEM. I THINK IF YOU ASKED THEM 01:56:23.276 --> 01:56:24.677 align:middle line:85% position:50% size:68% WOULD ACTIONS TO REDUCE THE 01:56:24.744 --> 01:56:26.212 align:middle line:85% position:50% size:78% MAGNITUDE OF FINANCIAL EXPOSURE 01:56:26.279 --> 01:56:27.914 align:middle line:85% position:50% size:78% BE HELPFUL? THEY WOULD SAY YES. 01:56:27.980 --> 01:56:29.315 align:middle line:85% position:50% size:73% YOU KNOW, GENERALLY SPEAKING, 01:56:29.382 --> 01:56:31.417 align:middle line:85% position:50% size:65% LESS EXPOSURE IS IS BETTER 01:56:31.484 --> 01:56:32.485 align:middle line:85% position:50% size:70% FINANCIALLY, BUT IT'S NOT ON 01:56:32.552 --> 01:56:34.454 align:middle line:85% position:50% size:78% THE SAME LEVEL OF THEIR LIST IN 01:56:34.520 --> 01:56:35.855 align:middle line:85% position:50% size:70% TERMS OF WHAT WHAT THEY FEEL 01:56:35.922 --> 01:56:37.623 align:middle line:85% position:50% size:53% LIKE MUST BE TRUE FOR 01:56:37.690 --> 01:56:40.126 align:middle line:85% position:50% size:80% INVESTMENT GRADE UTILITIES HERE. 01:56:40.193 --> 01:56:44.097 align:middle line:85% position:50% size:63% OKAY. THANK YOU. AND MISS 01:56:44.163 --> 01:56:46.899 align:middle line:85% position:50% size:65% BECKER, I HAVE A FOLLOW UP 01:56:46.966 --> 01:56:50.169 align:middle line:85% position:50% size:60% QUESTION RELATED TO THIS 01:56:50.236 --> 01:56:52.138 align:middle line:85% position:50% size:75% ANNOUNCEMENT OF THE $2 BILLION 01:56:52.205 --> 01:56:53.373 align:middle line:85% position:50% size:68% IN DEFERRED SPENDING. AND I 01:56:53.439 --> 01:56:55.007 align:middle line:85% position:50% size:75% ACTUALLY THINK MAYBE I WANT TO 01:56:55.074 --> 01:56:57.009 align:middle line:85% position:50% size:78% SORT OF REWIND A LITTLE BIT AND 01:56:57.076 --> 01:56:59.212 align:middle line:85% position:50% size:73% ASK YOU IF YOU CAN EXPLAIN TO 01:56:59.278 --> 01:57:01.581 align:middle line:85% position:50% size:73% ALL OF US, WHY WOULD YOU MAKE 01:57:01.647 --> 01:57:02.648 align:middle line:85% position:50% size:75% THAT DECISION? BECAUSE I THINK 01:57:02.715 --> 01:57:05.985 align:middle line:85% position:50% size:65% THAT THERE'S BEEN A LOT OF 01:57:06.052 --> 01:57:08.154 align:middle line:85% position:50% size:78% SPECULATION AS TO WHY YOU WOULD 01:57:08.221 --> 01:57:10.323 align:middle line:85% position:50% size:68% WOULD DO THAT. YOU KNOW, IF 01:57:10.390 --> 01:57:11.991 align:middle line:85% position:50% size:78% SOME PEOPLE ARE SUGGESTING THAT 01:57:12.058 --> 01:57:13.659 align:middle line:85% position:50% size:78% IT'S ALMOST LIKE A HOSTILE ACT. 01:57:13.726 --> 01:57:16.129 align:middle line:85% position:50% size:58% SO IF YOU COULD HELP US 01:57:16.195 --> 01:57:19.465 align:middle line:85% position:50% size:75% UNDERSTAND, WHY WOULD YOU MAKE 01:57:19.532 --> 01:57:21.567 align:middle line:85% position:50% size:78% THE DECISION TO SCALE BACK YOUR 01:57:21.634 --> 01:57:22.702 align:middle line:85% position:50% size:78% $2 BILLION OF SPENDING AND WHAT 01:57:22.769 --> 01:57:24.737 align:middle line:85% position:50% size:75% WENT INTO THAT DECISION? YEAH, 01:57:24.804 --> 01:57:26.272 align:middle line:85% position:50% size:70% THANK YOU FOR THAT QUESTION, 01:57:26.339 --> 01:57:30.510 align:middle line:85% position:50% size:75% CHAIR. AS I SAID IN MY OPENING 01:57:30.576 --> 01:57:32.145 align:middle line:85% position:50% size:78% REMARKS, IT IS ABSOLUTELY NOT A 01:57:32.211 --> 01:57:34.113 align:middle line:85% position:50% size:75% DECISION THAT WE TOOK LIGHTLY, 01:57:34.180 --> 01:57:35.982 align:middle line:85% position:50% size:73% BUT IT IS REALLY NECESSITATED 01:57:36.048 --> 01:57:37.750 align:middle line:85% position:50% size:50% BY WHAT WE SEE AS AN 01:57:37.817 --> 01:57:39.619 align:middle line:85% position:50% size:75% UNSUSTAINABLE STATUS QUO. BOTH 01:57:39.685 --> 01:57:41.587 align:middle line:85% position:50% size:75% THE COST OF THIS FINANCING AND 01:57:41.654 --> 01:57:42.789 align:middle line:85% position:50% size:75% THE COMPOUNDING OF THOSE COSTS 01:57:42.855 --> 01:57:44.924 align:middle line:85% position:50% size:75% IN OUR CUSTOMER RATES, AS WELL 01:57:44.991 --> 01:57:46.826 align:middle line:85% position:50% size:78% AS JUST THE OVERALL ABILITY FOR 01:57:46.893 --> 01:57:48.895 align:middle line:85% position:50% size:75% US TO ACCESS CAPITAL TO DO THE 01:57:48.961 --> 01:57:51.030 align:middle line:85% position:50% size:78% CORE WORK WE NEED TO DO TO MEET 01:57:51.097 --> 01:57:54.000 align:middle line:85% position:50% size:73% OUR OBLIGATION TO SERVE. JUST 01:57:54.066 --> 01:57:56.836 align:middle line:85% position:50% size:75% TO EMPHASIZE OUR RELUCTANCE TO 01:57:56.903 --> 01:57:59.739 align:middle line:85% position:50% size:68% TAKE THAT STEP. AND WE HAVE 01:57:59.806 --> 01:58:01.174 align:middle line:85% position:50% size:78% BEEN TALKING ABOUT THESE ISSUES 01:58:01.240 --> 01:58:04.010 align:middle line:85% position:50% size:73% FOR ALMOST TWO YEARS NOW. AND 01:58:04.076 --> 01:58:06.212 align:middle line:85% position:50% size:73% SO PGE HAS WAITED A VERY LONG 01:58:06.279 --> 01:58:08.681 align:middle line:85% position:50% size:78% TIME NOT CHANGING OUR PLAN. THE 01:58:08.748 --> 01:58:10.750 align:middle line:85% position:50% size:73% STATE TOOK ACTION PROACTIVELY 01:58:10.817 --> 01:58:11.984 align:middle line:85% position:50% size:73% LAST YEAR WITH THE PASSAGE OF 01:58:12.051 --> 01:58:14.454 align:middle line:85% position:50% size:55% SB 254 THAT INCLUDED A 01:58:14.520 --> 01:58:15.588 align:middle line:85% position:50% size:75% COMMITMENT TO FOLLOW IT WITH A 01:58:15.655 --> 01:58:17.690 align:middle line:85% position:50% size:60% SECOND PHASE IN THE 2026 01:58:17.757 --> 01:58:19.826 align:middle line:85% position:50% size:75% LEGISLATIVE SESSION. AND SO WE 01:58:19.892 --> 01:58:21.260 align:middle line:85% position:50% size:70% CONTINUE DOWN THE PATH TO DO 01:58:21.327 --> 01:58:23.930 align:middle line:85% position:50% size:70% THE WORK IN HOPES THAT THERE 01:58:23.996 --> 01:58:25.998 align:middle line:85% position:50% size:78% WOULD BE A SORT OF MORE DURABLE 01:58:26.065 --> 01:58:27.133 align:middle line:85% position:50% size:78% FRAMEWORK THAT CAME OUT OF THAT 01:58:27.200 --> 01:58:28.901 align:middle line:85% position:50% size:53% PROCESS. BUT WHEN THE 01:58:28.968 --> 01:58:29.669 align:middle line:85% position:50% size:70% LEGISLATIVE SESSION ENDED AT 01:58:29.735 --> 01:58:31.337 align:middle line:85% position:50% size:65% THE END OF AUGUST, WITH NO 01:58:31.404 --> 01:58:33.873 align:middle line:85% position:50% size:80% ACTION AND COMPLETE UNCERTAINTY, 01:58:33.940 --> 01:58:35.708 align:middle line:85% position:50% size:55% WHEN OR IF ANY DURABLE 01:58:35.775 --> 01:58:37.276 align:middle line:85% position:50% size:78% FRAMEWORK MIGHT EMERGE, WE FELT 01:58:37.343 --> 01:58:38.344 align:middle line:85% position:50% size:63% LIKE WE COULDN'T WAIT ANY 01:58:38.411 --> 01:58:41.781 align:middle line:85% position:50% size:75% LONGER. THEN YOU WITHDREW YOUR 01:58:41.848 --> 01:58:44.617 align:middle line:85% position:50% size:73% 28, YOUR 2028 TO 2030 CAPITAL 01:58:44.684 --> 01:58:46.052 align:middle line:85% position:50% size:70% FORECAST PENDING A STRATEGIC 01:58:46.118 --> 01:58:47.587 align:middle line:85% position:50% size:58% REVIEW. CAN YOU HELP US 01:58:47.653 --> 01:58:48.421 align:middle line:85% position:50% size:73% UNDERSTAND WHAT THAT IS GOING 01:58:48.488 --> 01:58:50.456 align:middle line:85% position:50% size:73% TO LOOK LIKE? I WOULD IMAGINE 01:58:50.523 --> 01:58:51.557 align:middle line:85% position:50% size:60% YOUR STRATEGIC REVIEW IS 01:58:51.624 --> 01:58:52.625 align:middle line:85% position:50% size:70% PROBABLY SIMILAR TO WHAT OUR 01:58:52.692 --> 01:58:54.393 align:middle line:85% position:50% size:75% OTHER IOUS ARE CONDUCTING, AND 01:58:54.460 --> 01:58:55.528 align:middle line:85% position:50% size:58% I'D LOVE TO UNDERSTAND. 01:58:55.595 --> 01:58:56.629 align:middle line:85% position:50% size:63% FERNANDO, IF YOU'RE DOING 01:58:56.696 --> 01:58:59.098 align:middle line:85% position:50% size:78% ANYTHING SIMILAR ON THE. SORRY. 01:58:59.165 --> 01:59:02.301 align:middle line:85% position:50% size:75% MR. ANYWAY, ON THE ON THE PLUS 01:59:02.368 --> 01:59:05.605 align:middle line:85% position:50% size:73% SIDE. OKAY, SURE. SO JUST YOU 01:59:05.671 --> 01:59:07.373 align:middle line:85% position:50% size:75% DESCRIBED IT WELL, BUT JUST TO 01:59:07.440 --> 01:59:09.509 align:middle line:85% position:50% size:78% RESTATE IT, IN EARLY SEPTEMBER, 01:59:09.575 --> 01:59:11.310 align:middle line:85% position:50% size:73% AFTER THE LEGISLATIVE SESSION 01:59:11.377 --> 01:59:14.213 align:middle line:85% position:50% size:75% ENDED WITHOUT WILDFIRE REFORM, 01:59:14.280 --> 01:59:15.481 align:middle line:85% position:50% size:73% WE DID COME OUT. WE ANNOUNCED 01:59:15.548 --> 01:59:17.517 align:middle line:85% position:50% size:68% THE $2 BILLION DEFERRAL AND 01:59:17.583 --> 01:59:19.252 align:middle line:85% position:50% size:78% THEN ALSO ANNOUNCED A STRATEGIC 01:59:19.318 --> 01:59:20.686 align:middle line:85% position:50% size:63% REVIEW, WHICH IS REALLY A 01:59:20.753 --> 01:59:22.488 align:middle line:85% position:50% size:65% SPECIFIC TERM OF PHRASE TO 01:59:22.555 --> 01:59:24.257 align:middle line:85% position:50% size:73% FINANCIAL MARKETS, WHICH IS A 01:59:24.323 --> 01:59:25.725 align:middle line:85% position:50% size:68% COMPANY MAKING UP THEIR NOT 01:59:25.791 --> 01:59:27.693 align:middle line:85% position:50% size:70% VERY COMMON, BUT A STATEMENT 01:59:27.760 --> 01:59:29.128 align:middle line:85% position:50% size:78% THAT SOMETHING STRUCTURAL NEEDS 01:59:29.195 --> 01:59:30.830 align:middle line:85% position:50% size:73% TO CHANGE IN OUR BUSINESS. WE 01:59:30.897 --> 01:59:33.399 align:middle line:85% position:50% size:75% NEED TO RETHINK HOW WE FINANCE 01:59:33.466 --> 01:59:35.434 align:middle line:85% position:50% size:73% OR STRUCTURE THE WORK SO THAT 01:59:35.501 --> 01:59:37.303 align:middle line:85% position:50% size:70% WE CAN MEET THE NEEDS OF OUR 01:59:37.370 --> 01:59:38.638 align:middle line:85% position:50% size:75% CUSTOMERS. AND SO WE ANNOUNCED 01:59:38.704 --> 01:59:40.473 align:middle line:85% position:50% size:80% THAT PROCESS IN EARLY SEPTEMBER. 01:59:40.540 --> 01:59:42.275 align:middle line:85% position:50% size:60% IT'S VERY TYPICAL THAT A 01:59:42.341 --> 01:59:43.075 align:middle line:85% position:50% size:78% STRATEGIC REVIEW DOESN'T HAVE A 01:59:43.142 --> 01:59:45.578 align:middle line:85% position:50% size:58% LOT OF DETAIL, AT LEAST 01:59:45.645 --> 01:59:48.414 align:middle line:85% position:50% size:70% INITIALLY. THIS OPENS UP THE 01:59:48.481 --> 01:59:49.815 align:middle line:85% position:50% size:65% POSSIBILITY FOR US TO TALK 01:59:49.882 --> 01:59:51.984 align:middle line:85% position:50% size:73% BROADLY ABOUT WHAT STRUCTURAL 01:59:52.051 --> 01:59:53.119 align:middle line:85% position:50% size:73% SOLUTIONS COULD LOOK LIKE AND 01:59:53.185 --> 01:59:54.887 align:middle line:85% position:50% size:78% OR HOW OUR BUSINESS MAY NEED TO 01:59:54.954 --> 01:59:56.989 align:middle line:85% position:50% size:63% CHANGE. AND SO WE'RE JUST 01:59:57.056 --> 01:59:58.124 align:middle line:85% position:50% size:73% REALLY EARLY DAYS IN STARTING 01:59:58.190 --> 02:00:02.094 align:middle line:85% position:50% size:78% THAT PROCESS. WE WANT TO, WHERE 02:00:02.161 --> 02:00:04.931 align:middle line:85% position:50% size:70% POSSIBLE, WORK OR HAVE INPUT 02:00:04.997 --> 02:00:07.099 align:middle line:85% position:50% size:68% FROM OTHER STAKEHOLDERS AND 02:00:07.166 --> 02:00:09.302 align:middle line:85% position:50% size:75% ALSO MONITOR TO SEE IF THERE'S 02:00:09.368 --> 02:00:11.070 align:middle line:85% position:50% size:68% A POSSIBILITY THAT WILDFIRE 02:00:11.137 --> 02:00:14.807 align:middle line:85% position:50% size:80% REFORM COULD EMERGE. MR. VALERO, 02:00:14.874 --> 02:00:17.276 align:middle line:85% position:50% size:73% ARE YOU UNDERTAKING A SIMILAR 02:00:17.343 --> 02:00:19.345 align:middle line:85% position:50% size:75% STRATEGIC REVIEW ON YOUR SIDE, 02:00:19.412 --> 02:00:21.514 align:middle line:85% position:50% size:68% GIVEN THE INCREASED COST OF 02:00:21.581 --> 02:00:23.649 align:middle line:85% position:50% size:68% CAPITAL THAT YOU'VE SEEN? I 02:00:23.716 --> 02:00:25.885 align:middle line:85% position:50% size:63% GUESS I WOULD SAY THAT WE 02:00:25.952 --> 02:00:26.953 align:middle line:85% position:50% size:73% CONSISTENTLY LOOK AT OUR FIVE 02:00:27.019 --> 02:00:29.422 align:middle line:85% position:50% size:73% YEAR CAPITAL PLAN AND ACCOUNT 02:00:29.488 --> 02:00:31.657 align:middle line:85% position:50% size:78% FOR THE POTENTIAL AFFORDABILITY 02:00:31.724 --> 02:00:33.793 align:middle line:85% position:50% size:68% CHALLENGES THAT DWP MAY MAY 02:00:33.859 --> 02:00:35.928 align:middle line:85% position:50% size:73% FACE. I DON'T KNOW IF YOU SAW 02:00:35.995 --> 02:00:37.697 align:middle line:85% position:50% size:53% THE PUBLIC HEARING WE 02:00:37.763 --> 02:00:39.832 align:middle line:85% position:50% size:55% EXPERIENCED YESTERDAY. 02:00:39.899 --> 02:00:40.900 align:middle line:85% position:50% size:60% OBVIOUSLY, CUSTOMERS ARE 02:00:40.967 --> 02:00:42.401 align:middle line:85% position:50% size:53% CONCERNED ABOUT THEIR 02:00:42.468 --> 02:00:43.869 align:middle line:85% position:50% size:78% AFFORDABILITY, AS WE SHOULD BE, 02:00:43.936 --> 02:00:46.372 align:middle line:85% position:50% size:68% AS ARE WE. RIGHT. AND SO WE 02:00:46.439 --> 02:00:48.908 align:middle line:85% position:50% size:68% CONTINUALLY KIND OF LOOK AT 02:00:48.975 --> 02:00:50.309 align:middle line:85% position:50% size:73% WHAT OUR CURRENT CAPITAL PLAN 02:00:50.376 --> 02:00:53.145 align:middle line:85% position:50% size:68% IS IN LIGHT OF THE COSTS TO 02:00:53.212 --> 02:00:56.482 align:middle line:85% position:50% size:75% BORROW. YOU KNOW, THERE ARE NO 02:00:56.549 --> 02:00:58.584 align:middle line:85% position:50% size:75% EASY SOLUTIONS HERE, JUST HARD 02:00:58.651 --> 02:00:59.752 align:middle line:85% position:50% size:73% CHOICES. THAT'S THAT GOES FOR 02:00:59.819 --> 02:01:01.621 align:middle line:85% position:50% size:75% YOU. THAT GOES FOR US AS WELL. 02:01:01.687 --> 02:01:03.756 align:middle line:85% position:50% size:73% AND SO WE'RE TRYING TO MANAGE 02:01:03.823 --> 02:01:06.192 align:middle line:85% position:50% size:78% AGING INFRASTRUCTURE, DOING OUR 02:01:06.258 --> 02:01:08.060 align:middle line:85% position:50% size:68% WILDFIRE MITIGATION ONBOARD 02:01:08.127 --> 02:01:10.496 align:middle line:85% position:50% size:60% CLEAN RESOURCES. SO THAT 02:01:10.563 --> 02:01:12.298 align:middle line:85% position:50% size:68% REQUIRES US TO CONSISTENTLY 02:01:12.365 --> 02:01:14.100 align:middle line:85% position:50% size:73% LOOK AT OUR CURRENT FIVE YEAR 02:01:14.166 --> 02:01:16.202 align:middle line:85% position:50% size:75% PLAN. WE HAVE NOT PIVOTED, BUT 02:01:16.268 --> 02:01:18.738 align:middle line:85% position:50% size:65% I WILL SAY POST PALISADES, 02:01:18.804 --> 02:01:21.273 align:middle line:85% position:50% size:63% RIGHT. OUR BOND YIELD PRE 02:01:21.340 --> 02:01:24.577 align:middle line:85% position:50% size:73% PALISADES WAS AROUND 4%. POST 02:01:24.644 --> 02:01:28.514 align:middle line:85% position:50% size:73% PALISADES WERE AROUND 5.25.3. 02:01:28.581 --> 02:01:30.116 align:middle line:85% position:50% size:75% AND THAT'S THAT'S SIGNIFICANT. 02:01:30.182 --> 02:01:32.418 align:middle line:85% position:50% size:70% AND WE WEREN'T IMPLICATED IN 02:01:32.485 --> 02:01:33.853 align:middle line:85% position:50% size:78% PALISADES. RIGHT. AND SO THAT'S 02:01:33.919 --> 02:01:37.123 align:middle line:85% position:50% size:73% AN ONGOING THING WE WILL HAVE 02:01:37.189 --> 02:01:38.924 align:middle line:85% position:50% size:78% TO MANAGE IN THE FUTURE. AND IT 02:01:38.991 --> 02:01:41.494 align:middle line:85% position:50% size:75% IS CHALLENGING. SO I HOPE THAT 02:01:41.560 --> 02:01:43.195 align:middle line:85% position:50% size:55% ANSWERS YOUR QUESTION. 02:01:43.262 --> 02:01:48.300 align:middle line:85% position:50% size:75% HENDERSON AND MR. BROTHWELL. I 02:01:48.367 --> 02:01:49.835 align:middle line:85% position:50% size:68% THINK YOUR YOUR POINT THREE 02:01:49.902 --> 02:01:51.337 align:middle line:85% position:50% size:60% THAT YOU MADE FOR US WAS 02:01:51.404 --> 02:01:53.506 align:middle line:85% position:50% size:73% RELATED TO YOUR YOU DESCRIBED 02:01:53.572 --> 02:01:55.107 align:middle line:85% position:50% size:78% KIND OF WHAT YOU SEE AS A BASIC 02:01:55.174 --> 02:01:56.909 align:middle line:85% position:50% size:68% BARGAIN, THAT UTILITIES ARE 02:01:56.976 --> 02:01:57.610 align:middle line:85% position:50% size:65% ESSENTIALLY SUPPOSED TO BE 02:01:57.677 --> 02:01:59.412 align:middle line:85% position:50% size:70% BORING AND SAFE INVESTMENTS. 02:01:59.478 --> 02:02:00.613 align:middle line:85% position:50% size:60% AND IN CALIFORNIA TODAY, 02:02:00.680 --> 02:02:02.982 align:middle line:85% position:50% size:70% THEY'RE KIND OF ANYTHING BUT 02:02:03.049 --> 02:02:04.517 align:middle line:85% position:50% size:70% YOU SAID THAT THE BALANCE IS 02:02:04.583 --> 02:02:07.353 align:middle line:85% position:50% size:75% TILTED TOO FAR TO RISK. AND IN 02:02:07.420 --> 02:02:08.954 align:middle line:85% position:50% size:65% YOUR VIEW, WE'VE GOT TO DO 02:02:09.021 --> 02:02:10.589 align:middle line:85% position:50% size:75% SOMETHING TO RECALIBRATE THAT, 02:02:10.656 --> 02:02:12.358 align:middle line:85% position:50% size:75% I GUESS. HOW WOULD YOU EXPLAIN 02:02:12.425 --> 02:02:15.261 align:middle line:85% position:50% size:73% THAT TO EVERYDAY CALIFORNIANS 02:02:15.327 --> 02:02:19.598 align:middle line:85% position:50% size:78% WHO READ HEADLINES ABOUT RECORD 02:02:19.665 --> 02:02:21.767 align:middle line:85% position:50% size:68% PROFITS? AND, YOU KNOW, THE 02:02:21.834 --> 02:02:23.269 align:middle line:85% position:50% size:68% SHAREHOLDERS ARE, YOU KNOW, 02:02:23.335 --> 02:02:25.104 align:middle line:85% position:50% size:78% LIVING LARGE WHILE NORMAL FOLKS 02:02:25.171 --> 02:02:26.772 align:middle line:85% position:50% size:75% ARE STRUGGLING? HOW DO YOU HOW 02:02:26.839 --> 02:02:31.077 align:middle line:85% position:50% size:75% DO YOU KIND OF RECONCILE THAT? 02:02:31.143 --> 02:02:32.578 align:middle line:85% position:50% size:68% I AGREE THAT IS NOT AN EASY 02:02:32.645 --> 02:02:34.380 align:middle line:85% position:50% size:68% THING TO CONVEY IN LAYMAN'S 02:02:34.447 --> 02:02:39.418 align:middle line:85% position:50% size:78% TERMS. CLEARLY, AS I, I THINK I 02:02:39.485 --> 02:02:41.120 align:middle line:85% position:50% size:70% INDICATED THE INFRASTRUCTURE 02:02:41.187 --> 02:02:42.922 align:middle line:85% position:50% size:60% THAT'S NEEDED RESTS ON A 02:02:42.988 --> 02:02:44.790 align:middle line:85% position:50% size:75% CAPITAL, A CAPITAL SYSTEM THAT 02:02:44.857 --> 02:02:47.660 align:middle line:85% position:50% size:80% IS COMPRISED OF DEBT AND EQUITY. 02:02:47.727 --> 02:02:50.162 align:middle line:85% position:50% size:60% THE EQUITY RETURNS FOR A 02:02:50.229 --> 02:02:53.132 align:middle line:85% position:50% size:63% UTILITY ARE DETERMINED BY 02:02:53.199 --> 02:02:54.166 align:middle line:85% position:50% size:78% REGULATION. THEY ARE DETERMINED 02:02:54.233 --> 02:02:55.601 align:middle line:85% position:50% size:60% BY THE CALIFORNIA PUBLIC 02:02:55.668 --> 02:02:58.137 align:middle line:85% position:50% size:75% UTILITIES COMMISSION. AND I'LL 02:02:58.204 --> 02:03:00.239 align:middle line:85% position:50% size:65% SPEAK BROADLY ABOUT TRENDS 02:03:00.306 --> 02:03:01.707 align:middle line:85% position:50% size:78% ACROSS THE COUNTRY. AND THAT IS 02:03:01.774 --> 02:03:04.710 align:middle line:85% position:50% size:78% THAT MY FIRM DID A REPORT ABOUT 02:03:04.777 --> 02:03:07.146 align:middle line:85% position:50% size:78% TWO YEARS AGO LOOKING AT AT THE 02:03:07.213 --> 02:03:08.681 align:middle line:85% position:50% size:78% FACTORS THAT WERE GETTING READY 02:03:08.748 --> 02:03:11.751 align:middle line:85% position:50% size:75% TO DRIVE UTILITY RATES UP. AND 02:03:11.817 --> 02:03:15.721 align:middle line:85% position:50% size:75% IT WAS LABOR, IT WAS STEEL, IT 02:03:15.788 --> 02:03:17.957 align:middle line:85% position:50% size:78% WAS ALL OF THESE THINGS. WE HAD 02:03:18.023 --> 02:03:19.859 align:middle line:85% position:50% size:78% 2% INFLATION, 2% INTEREST RATES 02:03:19.925 --> 02:03:21.560 align:middle line:85% position:50% size:70% AND $2 SHALE GAS. AND ALL OF 02:03:21.627 --> 02:03:22.928 align:middle line:85% position:50% size:68% THOSE WERE GETTING READY TO 02:03:22.995 --> 02:03:26.132 align:middle line:85% position:50% size:80% CHANGE. AND AND THEY DID CHANGE. 02:03:26.198 --> 02:03:27.600 align:middle line:85% position:50% size:75% ONE THING THAT HAS NOT TRENDED 02:03:27.666 --> 02:03:30.870 align:middle line:85% position:50% size:70% UP NATIONALLY IS THE ALLOWED 02:03:30.936 --> 02:03:33.038 align:middle line:85% position:50% size:78% ROE, THAT UTILITIES ARE GRANTED 02:03:33.105 --> 02:03:34.840 align:middle line:85% position:50% size:73% BY THEIR REGULATORS. THAT HAS 02:03:34.907 --> 02:03:36.575 align:middle line:85% position:50% size:70% NOT TAKEN A NOSEDIVE, BUT IT 02:03:36.642 --> 02:03:39.178 align:middle line:85% position:50% size:68% HAS BEEN TRENDING DOWNWARD. 02:03:39.245 --> 02:03:40.613 align:middle line:85% position:50% size:73% SOME OF THAT IS A FUNCTION OF 02:03:40.679 --> 02:03:42.314 align:middle line:85% position:50% size:73% HAVING BEEN IN A LOW INTEREST 02:03:42.381 --> 02:03:43.282 align:middle line:85% position:50% size:75% RATE ENVIRONMENT. WE'RE NOT IN 02:03:43.349 --> 02:03:44.917 align:middle line:85% position:50% size:78% A LOW INTEREST RATE ENVIRONMENT 02:03:44.984 --> 02:03:47.052 align:middle line:85% position:50% size:75% ANYMORE. IF ANYTHING, THE DEBT 02:03:47.119 --> 02:03:49.588 align:middle line:85% position:50% size:78% COMPONENT OF THE OF THE CAPITAL 02:03:49.655 --> 02:03:51.357 align:middle line:85% position:50% size:75% STRUCTURE HAS BECOME MUCH MORE 02:03:51.423 --> 02:03:52.925 align:middle line:85% position:50% size:68% COSTLY, AS WE'VE HEARD FROM 02:03:52.992 --> 02:03:57.196 align:middle line:85% position:50% size:75% MISS BECKER AND MR. VALERO. SO 02:03:57.263 --> 02:03:59.632 align:middle line:85% position:50% size:65% IT YOU'RE NOT, IN MY VIEW, 02:03:59.698 --> 02:04:02.535 align:middle line:85% position:50% size:70% YOU'RE NOT LOOKING AT RECORD 02:04:02.601 --> 02:04:05.437 align:middle line:85% position:50% size:75% PROFITS. YOU'RE LOOKING AT THE 02:04:05.504 --> 02:04:07.773 align:middle line:85% position:50% size:68% COST OF A COST OF FINANCING 02:04:07.840 --> 02:04:10.075 align:middle line:85% position:50% size:55% THOSE ASSETS IN A IN A 02:04:10.142 --> 02:04:12.278 align:middle line:85% position:50% size:78% CHALLENGING ENVIRONMENT, OPTICS 02:04:12.344 --> 02:04:14.547 align:middle line:85% position:50% size:78% BE WHAT THEY ARE. BUT IT IS YOU 02:04:14.613 --> 02:04:17.683 align:middle line:85% position:50% size:78% KNOW, IT IS A A LEVEL OF PROFIT 02:04:17.750 --> 02:04:20.886 align:middle line:85% position:50% size:65% THAT'S SET BY A REGULATORY 02:04:20.953 --> 02:04:23.389 align:middle line:85% position:50% size:68% PROCESS. IT IT'S NOT LIKE A 02:04:23.455 --> 02:04:24.857 align:middle line:85% position:50% size:73% NORMAL BUSINESS THAT CAN EARN 02:04:24.924 --> 02:04:26.358 align:middle line:85% position:50% size:68% WHATEVER IT CAN EARN IN THE 02:04:26.425 --> 02:04:29.195 align:middle line:85% position:50% size:68% MARKET. SO LET ME PLAY BACK 02:04:29.261 --> 02:04:31.130 align:middle line:85% position:50% size:78% WHAT I THINK YOU SAID, WHICH IS 02:04:31.197 --> 02:04:34.200 align:middle line:85% position:50% size:75% THAT IN SOME RESPECTS, THE THE 02:04:34.266 --> 02:04:37.169 align:middle line:85% position:50% size:78% ACCELERATING RISK IS CREATING A 02:04:37.236 --> 02:04:39.305 align:middle line:85% position:50% size:73% NEED FOR ACCELERATING PROFITS 02:04:39.371 --> 02:04:40.806 align:middle line:85% position:50% size:73% AND SORT OF FEEDING THIS KIND 02:04:40.873 --> 02:04:42.141 align:middle line:85% position:50% size:68% OF VICIOUS CYCLE THAT WE'RE 02:04:42.208 --> 02:04:44.610 align:middle line:85% position:50% size:75% SEEING UNFOLD. IT'S CREATING A 02:04:44.677 --> 02:04:46.579 align:middle line:85% position:50% size:73% NEED FOR IT'S CREATING A NEED 02:04:46.645 --> 02:04:48.614 align:middle line:85% position:50% size:68% FOR CAPITAL. WHETHER YOU'RE 02:04:48.681 --> 02:04:50.216 align:middle line:85% position:50% size:73% TALKING ABOUT JUST A BASELINE 02:04:50.282 --> 02:04:52.218 align:middle line:85% position:50% size:60% OF KEEPING UP WITH AGING 02:04:52.284 --> 02:04:53.652 align:middle line:85% position:50% size:70% INFRASTRUCTURE, AS WE HEARD, 02:04:53.719 --> 02:04:55.054 align:middle line:85% position:50% size:65% BUT ADDING ON THE LAYER OF 02:04:55.120 --> 02:04:57.623 align:middle line:85% position:50% size:75% NEEDING TO MAKE INVESTMENTS TO 02:04:57.690 --> 02:04:59.425 align:middle line:85% position:50% size:65% PROTECT THE SYSTEM AGAINST 02:04:59.491 --> 02:05:00.526 align:middle line:85% position:50% size:63% WILDFIRE RISK, TREMENDOUS 02:05:00.593 --> 02:05:01.694 align:middle line:85% position:50% size:68% AMOUNT OF CAPITAL, AS WE'VE 02:05:01.760 --> 02:05:03.596 align:middle line:85% position:50% size:78% HEARD IN THIS ROOM TODAY, IS IS 02:05:03.662 --> 02:05:05.531 align:middle line:85% position:50% size:75% NEEDED TO DO ALL THOSE THINGS. 02:05:05.598 --> 02:05:07.833 align:middle line:85% position:50% size:75% AND THAT CAPITAL IS ULTIMATELY 02:05:07.900 --> 02:05:10.436 align:middle line:85% position:50% size:75% PRICED IN MARKETS THAT OPERATE 02:05:10.502 --> 02:05:12.104 align:middle line:85% position:50% size:65% IN A NATIONAL AND INDEED A 02:05:12.171 --> 02:05:14.974 align:middle line:85% position:50% size:80% GLOBAL LEVEL. SO AS I INDICATED, 02:05:15.040 --> 02:05:17.943 align:middle line:85% position:50% size:68% INVESTORS MAKE CHOICES, AND 02:05:18.010 --> 02:05:19.378 align:middle line:85% position:50% size:73% WHEN THEY SEE ELEVATED LEVELS 02:05:19.445 --> 02:05:21.180 align:middle line:85% position:50% size:70% OF RISK. AND I THINK THE ONE 02:05:21.247 --> 02:05:23.015 align:middle line:85% position:50% size:78% FACTOR HERE THAT DIFFERENTIATES 02:05:23.082 --> 02:05:24.717 align:middle line:85% position:50% size:78% CALIFORNIA IS I AS I MENTIONED, 02:05:24.783 --> 02:05:26.585 align:middle line:85% position:50% size:78% MY PREPARED REMARKS IS YOU HAVE 02:05:26.652 --> 02:05:28.053 align:middle line:85% position:50% size:68% CAPPED RETURNS MATCHED WITH 02:05:28.120 --> 02:05:30.489 align:middle line:85% position:50% size:75% UNLIMITED POTENTIAL LIABILITY. 02:05:30.556 --> 02:05:33.392 align:middle line:85% position:50% size:73% AND THAT IS A VERY UNBALANCED 02:05:33.459 --> 02:05:38.097 align:middle line:85% position:50% size:73% RISK AND RETURN PROFILE. AND, 02:05:38.163 --> 02:05:40.165 align:middle line:85% position:50% size:65% AND I, I'M NOT SURE IF YOU 02:05:40.232 --> 02:05:41.233 align:middle line:85% position:50% size:68% YOURSELF HAVE WRITTEN ABOUT 02:05:41.300 --> 02:05:43.135 align:middle line:85% position:50% size:68% THIS, SO I HATE TO MAKE YOU 02:05:43.202 --> 02:05:44.937 align:middle line:85% position:50% size:73% SPEAK FOR ALL OF THE ANALYSTS 02:05:45.004 --> 02:05:46.105 align:middle line:85% position:50% size:80% AND ALL OF THE RATINGS AGENCIES, 02:05:46.171 --> 02:05:47.439 align:middle line:85% position:50% size:68% BUT WE APPRECIATE YOU BEING 02:05:47.506 --> 02:05:50.309 align:middle line:85% position:50% size:68% HERE. SO I THINK ALL OF THE 02:05:50.376 --> 02:05:51.977 align:middle line:85% position:50% size:78% RATINGS AGENCIES HAVE BEEN VERY 02:05:52.044 --> 02:05:53.178 align:middle line:85% position:50% size:73% CLEAR THAT, IN THEIR VIEW, IN 02:05:53.245 --> 02:05:55.681 align:middle line:85% position:50% size:65% ORDER TO LEVEL THE PLAYING 02:05:55.748 --> 02:05:57.850 align:middle line:85% position:50% size:58% FIELD, AS IT WERE, WITH 02:05:57.917 --> 02:05:59.285 align:middle line:85% position:50% size:68% CALIFORNIA'S INVESTOR OWNED 02:05:59.351 --> 02:06:01.420 align:middle line:85% position:50% size:65% UTILITIES AND THEIR MARKET 02:06:01.487 --> 02:06:03.589 align:middle line:85% position:50% size:75% PEERS, THAT SOME KIND OF A CAP 02:06:03.656 --> 02:06:05.457 align:middle line:85% position:50% size:73% ON THAT CATASTROPHIC DOWNSIDE 02:06:05.524 --> 02:06:09.395 align:middle line:85% position:50% size:70% RISK IS NEEDED. YOU KNOW, DO 02:06:09.461 --> 02:06:12.398 align:middle line:85% position:50% size:73% YOU CONCUR WITH THAT? I DO, I 02:06:12.464 --> 02:06:14.767 align:middle line:85% position:50% size:78% THINK THERE ARE TWO THINGS. THE 02:06:14.833 --> 02:06:16.969 align:middle line:85% position:50% size:73% CAP, WHICH WE'VE TALKED ABOUT 02:06:17.036 --> 02:06:20.172 align:middle line:85% position:50% size:63% AND ALSO INTERIM FUNDING, 02:06:20.239 --> 02:06:21.273 align:middle line:85% position:50% size:45% BECAUSE THERE'S AN 02:06:21.340 --> 02:06:23.776 align:middle line:85% position:50% size:73% ADMINISTRATIVE PROCESS AROUND 02:06:23.842 --> 02:06:26.779 align:middle line:85% position:50% size:78% THIS THAT CAN LEAVE THAT BURDEN 02:06:26.845 --> 02:06:28.080 align:middle line:85% position:50% size:70% ON THE UTILITY BALANCE SHEET 02:06:28.147 --> 02:06:29.581 align:middle line:85% position:50% size:70% FOR SOME PERIOD OF TIME. AND 02:06:29.648 --> 02:06:30.950 align:middle line:85% position:50% size:75% WE'RE TALKING LARGE AMOUNTS OF 02:06:31.016 --> 02:06:32.885 align:middle line:85% position:50% size:75% MONEY. SO, YOU KNOW, THE OTHER 02:06:32.952 --> 02:06:34.520 align:middle line:85% position:50% size:75% THING THAT I'VE READ AND HEARD 02:06:34.586 --> 02:06:36.722 align:middle line:85% position:50% size:70% IS SOMETHING TO ADDRESS THAT 02:06:36.789 --> 02:06:41.760 align:middle line:85% position:50% size:75% THAT INTERIM FUNDING NEED. AND 02:06:41.827 --> 02:06:43.228 align:middle line:85% position:50% size:68% YOU SPOKE ABOUT KIND OF THE 02:06:43.295 --> 02:06:45.397 align:middle line:85% position:50% size:63% BASIC BARGAIN FOR UTILITY 02:06:45.464 --> 02:06:47.599 align:middle line:85% position:50% size:70% INVESTORS, I THINK, AND I'LL 02:06:47.666 --> 02:06:49.368 align:middle line:85% position:50% size:63% PARAPHRASE MR. TONY, YOUR 02:06:49.435 --> 02:06:51.203 align:middle line:85% position:50% size:68% REMARKS, BUT I THINK WHAT I 02:06:51.270 --> 02:06:54.740 align:middle line:85% position:50% size:68% HEARD HEARD YOU SAY IS THAT 02:06:54.807 --> 02:06:56.875 align:middle line:85% position:50% size:78% THERE'S KIND OF A BASIC BARGAIN 02:06:56.942 --> 02:06:59.411 align:middle line:85% position:50% size:65% FOR UTILITY CUSTOMERS THAT 02:06:59.478 --> 02:07:00.879 align:middle line:85% position:50% size:63% FEELS LIKE IT'S GETTING A 02:07:00.946 --> 02:07:03.315 align:middle line:85% position:50% size:70% LITTLE A LITTLE SKEWED IF WE 02:07:03.382 --> 02:07:07.386 align:middle line:85% position:50% size:73% ARE BOTH PAYING THE BILLS AND 02:07:07.453 --> 02:07:09.788 align:middle line:85% position:50% size:80% RESPONSIBLE FOR ALL OF THE RISK. 02:07:09.855 --> 02:07:10.990 align:middle line:85% position:50% size:75% AND IS THAT THAT'S KIND OF THE 02:07:11.056 --> 02:07:13.792 align:middle line:85% position:50% size:68% POINT. YOU WERE MAKING. THE 02:07:13.859 --> 02:07:16.695 align:middle line:85% position:50% size:70% FRAMEWORK THAT WE CREATED IN 02:07:16.762 --> 02:07:19.932 align:middle line:85% position:50% size:78% 2015 FOR THE WILDFIRE INSURANCE 02:07:19.999 --> 02:07:24.603 align:middle line:85% position:50% size:68% FUND WAS 50% RATEPAYER, 50% 02:07:24.670 --> 02:07:26.438 align:middle line:85% position:50% size:68% SHAREHOLDERS. AND THAT IS A 02:07:26.505 --> 02:07:29.008 align:middle line:85% position:50% size:68% PRINCIPLE THAT GOT A LOT OF 02:07:29.074 --> 02:07:30.709 align:middle line:85% position:50% size:60% SUPPORT. OKAY. JUST THAT 02:07:30.776 --> 02:07:33.946 align:middle line:85% position:50% size:75% CONCEPT AND DOLLAR FOR DOLLAR. 02:07:34.013 --> 02:07:36.515 align:middle line:85% position:50% size:70% AND THAT'S SOMETHING THAT WE 02:07:36.582 --> 02:07:37.883 align:middle line:85% position:50% size:75% BELIEVE IS IMPORTANT TO FIGURE 02:07:37.950 --> 02:07:39.685 align:middle line:85% position:50% size:75% OUT HOW TO RETAIN. SO IF WE'RE 02:07:39.752 --> 02:07:41.854 align:middle line:85% position:50% size:55% GOING TO HAVE A CAP ON 02:07:41.920 --> 02:07:43.722 align:middle line:85% position:50% size:60% SHAREHOLDER LIABILITY, I 02:07:43.789 --> 02:07:45.791 align:middle line:85% position:50% size:65% UNDERSTAND THAT I HAVE HAD 02:07:45.858 --> 02:07:47.026 align:middle line:85% position:50% size:70% INVESTMENT FIRMS TELL ME THE 02:07:47.092 --> 02:07:48.427 align:middle line:85% position:50% size:70% SAME THING. I TALKED TO THEM 02:07:48.494 --> 02:07:50.129 align:middle line:85% position:50% size:60% ALL THE TIME ALSO. OKAY, 02:07:50.195 --> 02:07:51.563 align:middle line:85% position:50% size:70% BECAUSE THEY ARE PART OF THE 02:07:51.630 --> 02:07:54.900 align:middle line:85% position:50% size:70% MIX HERE. BUT I ALSO WANT TO 02:07:54.967 --> 02:07:57.369 align:middle line:85% position:50% size:55% SEE A CAP ON RATEPAYER 02:07:57.436 --> 02:07:58.570 align:middle line:85% position:50% size:73% LIABILITY. OKAY. I DON'T WANT 02:07:58.637 --> 02:08:01.340 align:middle line:85% position:50% size:63% TO SHIFT. AND SO THEN THE 02:08:01.407 --> 02:08:02.474 align:middle line:85% position:50% size:70% QUESTION, OF COURSE, AND THE 02:08:02.541 --> 02:08:04.243 align:middle line:85% position:50% size:68% HARD QUESTION IS, WELL, WHO 02:08:04.309 --> 02:08:05.544 align:middle line:85% position:50% size:75% PAYS OVER THE CAP? LET'S LET'S 02:08:05.611 --> 02:08:07.479 align:middle line:85% position:50% size:73% BE HONEST. WE WILL ALL AGREE, 02:08:07.546 --> 02:08:09.615 align:middle line:85% position:50% size:75% INCLUDING ME. THAT IS THE HARD 02:08:09.681 --> 02:08:11.417 align:middle line:85% position:50% size:78% QUESTION. WHO WILL PAY OVER THE 02:08:11.483 --> 02:08:13.519 align:middle line:85% position:50% size:73% CAP? AND THAT'S WHERE I THINK 02:08:13.585 --> 02:08:15.788 align:middle line:85% position:50% size:73% WE NEED TO LOOK LONG AND HARD 02:08:15.854 --> 02:08:17.289 align:middle line:85% position:50% size:68% AT SETTING UP. I, YOU KNOW, 02:08:17.356 --> 02:08:19.358 align:middle line:85% position:50% size:78% HAVE A PROPOSAL FOR A RAINY DAY 02:08:19.425 --> 02:08:21.126 align:middle line:85% position:50% size:70% FUND, A STATE RAINY DAY FUND 02:08:21.193 --> 02:08:22.961 align:middle line:85% position:50% size:73% THAT STARTS GETTING FUNDED BY 02:08:23.028 --> 02:08:25.497 align:middle line:85% position:50% size:78% THINGS LIKE, YOU KNOW, A FEE ON 02:08:25.564 --> 02:08:26.598 align:middle line:85% position:50% size:68% SECOND HOMES. I DON'T KNOW, 02:08:26.665 --> 02:08:27.966 align:middle line:85% position:50% size:65% SOMETHING WHERE WE LOOK AT 02:08:28.033 --> 02:08:30.469 align:middle line:85% position:50% size:70% THINGS WHERE MAYBE THERE ARE 02:08:30.536 --> 02:08:32.337 align:middle line:85% position:50% size:75% REASONABLE PLACES TO ASK FOR A 02:08:32.404 --> 02:08:35.541 align:middle line:85% position:50% size:78% LITTLE BIT MORE HERE AND THERE, 02:08:35.607 --> 02:08:36.708 align:middle line:85% position:50% size:70% AND I'M NOT GOING TO GO INTO 02:08:36.775 --> 02:08:39.111 align:middle line:85% position:50% size:50% THE DETAILS NOW, BUT 02:08:39.178 --> 02:08:42.181 align:middle line:85% position:50% size:75% CONCEPTUALLY, HOW YOU YOURSELF 02:08:42.247 --> 02:08:43.115 align:middle line:85% position:50% size:65% AT CHAIR PETRIE-NORRIS HAD 02:08:43.182 --> 02:08:44.917 align:middle line:85% position:50% size:73% BROUGHT UP THE QUESTION ABOUT 02:08:44.983 --> 02:08:46.985 align:middle line:85% position:50% size:75% ARE THERE THIRD, YOU KNOW, NON 02:08:47.052 --> 02:08:48.153 align:middle line:85% position:50% size:68% RATEPAYER FUNDS THAT CAN BE 02:08:48.220 --> 02:08:51.023 align:middle line:85% position:50% size:70% BROUGHT INTO THIS MIX? AND I 02:08:51.090 --> 02:08:52.458 align:middle line:85% position:50% size:70% THINK THAT THAT IS WHERE THE 02:08:52.524 --> 02:08:55.327 align:middle line:85% position:50% size:70% TRUE SOLUTION IS GOING TO BE 02:08:55.394 --> 02:08:58.897 align:middle line:85% position:50% size:50% THERE. YES. A CAP ON 02:08:58.964 --> 02:09:00.332 align:middle line:85% position:50% size:75% SHAREHOLDER LIABILITY NEEDS TO 02:09:00.399 --> 02:09:02.901 align:middle line:85% position:50% size:55% BE MATCHED BY A CAP ON 02:09:02.968 --> 02:09:05.370 align:middle line:85% position:50% size:68% RATEPAYER LIABILITY TO. AND 02:09:05.437 --> 02:09:07.206 align:middle line:85% position:50% size:75% THAT WOULD BE A SOLUTION IF WE 02:09:07.272 --> 02:09:09.374 align:middle line:85% position:50% size:78% COULD WORK TOGETHER ON IT. THAT 02:09:09.441 --> 02:09:10.642 align:middle line:85% position:50% size:73% WOULD MAKE ALL THE DIFFERENCE 02:09:10.709 --> 02:09:13.312 align:middle line:85% position:50% size:70% IN THE WORLD. ALL RIGHT. AND 02:09:13.378 --> 02:09:14.780 align:middle line:85% position:50% size:75% MR. ROTHWELL, YOUR THOUGHTS ON 02:09:14.847 --> 02:09:16.615 align:middle line:85% position:50% size:68% HOW DO YOU DESIGN KIND OF A 02:09:16.682 --> 02:09:19.218 align:middle line:85% position:50% size:75% BASIC BARGAIN THAT WORKS, THAT 02:09:19.284 --> 02:09:21.653 align:middle line:85% position:50% size:78% WORKS FOR BOTH THE SHAREHOLDERS 02:09:21.720 --> 02:09:23.055 align:middle line:85% position:50% size:70% WHOSE MONEY WE NEED TO BUILD 02:09:23.122 --> 02:09:25.557 align:middle line:85% position:50% size:55% THESE PROJECTS AND FOR 02:09:25.624 --> 02:09:28.026 align:middle line:85% position:50% size:60% RATEPAYERS. I'D MAKE TWO 02:09:28.093 --> 02:09:29.928 align:middle line:85% position:50% size:73% OBSERVATIONS, ONE SPECIFIC TO 02:09:29.995 --> 02:09:32.030 align:middle line:85% position:50% size:78% THE WILDFIRE ISSUE. AND I THINK 02:09:32.097 --> 02:09:39.204 align:middle line:85% position:50% size:75% MR. TONY ALLUDED TO SOME. SOME 02:09:39.271 --> 02:09:41.340 align:middle line:85% position:50% size:65% WAYS THAT THOSE THAT THOSE 02:09:41.406 --> 02:09:45.010 align:middle line:85% position:50% size:78% MONIES ARE BEING DIVERTED AWAY, 02:09:45.077 --> 02:09:46.145 align:middle line:85% position:50% size:78% SIPHONED AWAY, HOWEVER YOU WANT 02:09:46.211 --> 02:09:49.047 align:middle line:85% position:50% size:75% TO LOOK AT IT. I THINK THAT IS 02:09:49.114 --> 02:09:50.349 align:middle line:85% position:50% size:63% AN ISSUE THAT NEEDS TO BE 02:09:50.415 --> 02:09:51.550 align:middle line:85% position:50% size:63% ADDRESSED. YES, THERE'S A 02:09:51.617 --> 02:09:52.584 align:middle line:85% position:50% size:70% BALANCING. THERE'S A SHARING 02:09:52.651 --> 02:09:54.753 align:middle line:85% position:50% size:73% THAT IS INVOLVED HERE, BUT IT 02:09:54.820 --> 02:09:57.189 align:middle line:85% position:50% size:78% NEEDS TO BE THOSE FUNDS NEED TO 02:09:57.256 --> 02:09:59.391 align:middle line:85% position:50% size:70% BE DIRECTED AT AT DOING GOOD 02:09:59.458 --> 02:10:02.761 align:middle line:85% position:50% size:78% WHERE THEY'RE NEEDED. THE OTHER 02:10:02.828 --> 02:10:05.531 align:middle line:85% position:50% size:65% POINT THAT I WOULD MAKE IS 02:10:05.597 --> 02:10:08.400 align:middle line:85% position:50% size:73% THERE'S A THERE'S A NUMBER OF 02:10:08.467 --> 02:10:09.835 align:middle line:85% position:50% size:78% STATES AROUND THE COUNTRY RIGHT 02:10:09.902 --> 02:10:11.236 align:middle line:85% position:50% size:65% NOW THAT ARE EXAMINING THE 02:10:11.303 --> 02:10:14.540 align:middle line:85% position:50% size:73% BASIC UTILITY BUSINESS MODEL, 02:10:14.606 --> 02:10:16.742 align:middle line:85% position:50% size:73% AND THAT IS OFTEN DONE IN THE 02:10:16.808 --> 02:10:18.844 align:middle line:85% position:50% size:73% CONTEXT OF LOOKING AT HOW CAN 02:10:18.911 --> 02:10:22.514 align:middle line:85% position:50% size:78% WE LOWER RETURN ON EQUITY. I, I 02:10:22.581 --> 02:10:25.717 align:middle line:85% position:50% size:80% THINK THAT IS IN ITS ON ITS OWN. 02:10:25.784 --> 02:10:27.486 align:middle line:85% position:50% size:65% WOULD SIMPLY DO WHAT I WAS 02:10:27.553 --> 02:10:28.554 align:middle line:85% position:50% size:65% TALKING ABOUT, AND THAT IS 02:10:28.620 --> 02:10:30.389 align:middle line:85% position:50% size:68% DRIVE INVESTOR CAPITAL AWAY 02:10:30.455 --> 02:10:31.823 align:middle line:85% position:50% size:78% BECAUSE INVESTORS DON'T HAVE TO 02:10:31.890 --> 02:10:33.258 align:middle line:85% position:50% size:75% INVEST IN THE UTILITY INDUSTRY 02:10:33.325 --> 02:10:35.060 align:middle line:85% position:50% size:65% EITHER. THEY HAVE A LOT OF 02:10:35.127 --> 02:10:37.596 align:middle line:85% position:50% size:75% CHOICES AND MOST OF THEM OFFER 02:10:37.663 --> 02:10:40.065 align:middle line:85% position:50% size:73% MUCH HIGHER UPSIDE POTENTIAL. 02:10:40.132 --> 02:10:42.167 align:middle line:85% position:50% size:78% HOWEVER, I THINK ONE THING THAT 02:10:42.234 --> 02:10:45.837 align:middle line:85% position:50% size:58% COULD BE LOOKED AT IN A 02:10:45.904 --> 02:10:47.306 align:middle line:85% position:50% size:70% SYMMETRICAL AND CONSTRUCTIVE 02:10:47.372 --> 02:10:49.474 align:middle line:85% position:50% size:75% MANNER IS PROVIDING INCENTIVES 02:10:49.541 --> 02:10:52.744 align:middle line:85% position:50% size:63% FOR DESIRED OUTCOMES. THE 02:10:52.811 --> 02:10:53.779 align:middle line:85% position:50% size:70% BACKGROUND REPORT I THOUGHT, 02:10:53.845 --> 02:10:55.414 align:middle line:85% position:50% size:55% DID A VERY GOOD JOB OF 02:10:55.480 --> 02:10:57.349 align:middle line:85% position:50% size:75% ADDRESSING THIS ISSUE. IT IS A 02:10:57.416 --> 02:10:59.618 align:middle line:85% position:50% size:80% IT IS A TRICKY ONE BECAUSE, YES, 02:10:59.685 --> 02:11:02.421 align:middle line:85% position:50% size:73% THE INHERENT MORAL HAZARD AND 02:11:02.487 --> 02:11:04.523 align:middle line:85% position:50% size:73% MY FORMER FIRM, ENERGY INCOME 02:11:04.590 --> 02:11:05.691 align:middle line:85% position:50% size:78% PARTNERS, WE TESTIFIED A LITTLE 02:11:05.757 --> 02:11:06.992 align:middle line:85% position:50% size:73% BIT ON THIS MATTER BEFORE THE 02:11:07.059 --> 02:11:09.161 align:middle line:85% position:50% size:63% SENATE ENERGY AND NATURAL 02:11:09.228 --> 02:11:10.963 align:middle line:85% position:50% size:68% RESOURCES COMMITTEE BACK IN 02:11:11.029 --> 02:11:13.098 align:middle line:85% position:50% size:75% 2018, IF MY MEMORY IS CORRECT. 02:11:13.165 --> 02:11:15.267 align:middle line:85% position:50% size:68% AND WE WE RAISED THAT POINT 02:11:15.334 --> 02:11:18.470 align:middle line:85% position:50% size:70% THAT A SYMMETRICAL SCHEME OF 02:11:18.537 --> 02:11:19.638 align:middle line:85% position:50% size:73% INCENTIVES AND YES, THEY HAVE 02:11:19.705 --> 02:11:21.006 align:middle line:85% position:50% size:60% TO BE SYMMETRICAL. SO IF 02:11:21.073 --> 02:11:22.774 align:middle line:85% position:50% size:75% THERE'S POOR PERFORMANCE, THAT 02:11:22.841 --> 02:11:25.344 align:middle line:85% position:50% size:68% IS THAT IS PENALIZED. BUT I 02:11:25.410 --> 02:11:27.112 align:middle line:85% position:50% size:70% THINK AS PUTTING MY INVESTOR 02:11:27.179 --> 02:11:28.947 align:middle line:85% position:50% size:70% HAT BACK ON, I THINK OUR JOB 02:11:29.014 --> 02:11:30.449 align:middle line:85% position:50% size:75% WAS TO LOOK FOR COMPANIES THAT 02:11:30.515 --> 02:11:33.218 align:middle line:85% position:50% size:75% ARE WELL RUN, THAT DELIVER FOR 02:11:33.285 --> 02:11:35.787 align:middle line:85% position:50% size:65% THEIR CUSTOMERS, AND THOSE 02:11:35.854 --> 02:11:37.222 align:middle line:85% position:50% size:73% COMPANIES SHOULD BE REWARDED. 02:11:37.289 --> 02:11:39.725 align:middle line:85% position:50% size:75% AND THE PART OF THE BARGAIN IS 02:11:39.791 --> 02:11:42.261 align:middle line:85% position:50% size:70% THAT IF THOSE COMPANIES OVER 02:11:42.327 --> 02:11:44.463 align:middle line:85% position:50% size:68% EARN THAT KIND OF BASELINE, 02:11:44.529 --> 02:11:46.598 align:middle line:85% position:50% size:78% THEN I THINK THE REGULATORS AND 02:11:46.665 --> 02:11:47.833 align:middle line:85% position:50% size:75% INTERVENERS NEED TO UNDERSTAND 02:11:47.899 --> 02:11:49.134 align:middle line:85% position:50% size:75% THAT THERE'S A REASON AND THAT 02:11:49.201 --> 02:11:52.070 align:middle line:85% position:50% size:78% THAT'S OKAY. I THINK ONE OF THE 02:11:52.137 --> 02:11:53.138 align:middle line:85% position:50% size:73% PUSHBACKS YOU'D HEAR FROM THE 02:11:53.205 --> 02:11:54.539 align:middle line:85% position:50% size:73% UTILITY INDUSTRY IS THAT WHEN 02:11:54.606 --> 02:11:55.307 align:middle line:85% position:50% size:68% PERFORMANCE INCENTIVES HAVE 02:11:55.374 --> 02:11:56.675 align:middle line:85% position:50% size:68% BEEN APPLIED IN RATEMAKING, 02:11:56.742 --> 02:11:59.177 align:middle line:85% position:50% size:78% THEY'VE OFTEN BEEN MOSTLY STICK 02:11:59.244 --> 02:12:02.447 align:middle line:85% position:50% size:73% AND VERY LITTLE CARROT. THANK 02:12:02.514 --> 02:12:04.916 align:middle line:85% position:50% size:75% YOU. SORT OF RELATED QUESTION, 02:12:04.983 --> 02:12:08.186 align:middle line:85% position:50% size:75% MR. VALERO, FOR YOU. I BELIEVE 02:12:08.253 --> 02:12:10.122 align:middle line:85% position:50% size:75% THAT IF I'M CORRECT, I BELIEVE 02:12:10.188 --> 02:12:12.124 align:middle line:85% position:50% size:68% THAT LÀ IS ON THE RECORD AS 02:12:12.190 --> 02:12:14.660 align:middle line:85% position:50% size:78% SUPPORTING BOTH A LIABILITY CAP 02:12:14.726 --> 02:12:18.196 align:middle line:85% position:50% size:75% AND ACCESS TO A STATE FUND FOR 02:12:18.263 --> 02:12:21.199 align:middle line:85% position:50% size:78% OUR USE, IS THAT CORRECT? YEAH. 02:12:21.266 --> 02:12:23.268 align:middle line:85% position:50% size:78% I MEAN, I GUESS THE WAY I THINK 02:12:23.335 --> 02:12:28.040 align:middle line:85% position:50% size:73% ABOUT IT IS THERE IS THE SIZE 02:12:28.106 --> 02:12:31.576 align:middle line:85% position:50% size:70% OF LIABILITY PIE AND HOW YOU 02:12:31.643 --> 02:12:33.845 align:middle line:85% position:50% size:75% FINANCE THE LIABILITY PIE. AND 02:12:33.912 --> 02:12:37.416 align:middle line:85% position:50% size:63% WE DON'T HAVE EITHER. AND 02:12:37.482 --> 02:12:41.386 align:middle line:85% position:50% size:73% THAT'S A PROBLEM. DO YOU CARE 02:12:41.453 --> 02:12:43.188 align:middle line:85% position:50% size:75% TO COMMENT ON WHAT TERMS UNDER 02:12:43.255 --> 02:12:45.257 align:middle line:85% position:50% size:75% WHICH TERMS YOU MIGHT CONSIDER 02:12:45.324 --> 02:12:47.392 align:middle line:85% position:50% size:78% JOINING A FUND, OR YOU AND YOUR 02:12:47.459 --> 02:12:49.895 align:middle line:85% position:50% size:65% PO BRETHREN MIGHT CONSIDER 02:12:49.961 --> 02:12:53.598 align:middle line:85% position:50% size:65% JOINING A FUND. I'LL SAY A 02:12:53.665 --> 02:12:56.034 align:middle line:85% position:50% size:75% COUPLE OF THINGS. I THINK POST 02:12:56.101 --> 02:12:58.236 align:middle line:85% position:50% size:75% PALISADES DWP CAN SEE WHAT CAN 02:12:58.303 --> 02:12:59.838 align:middle line:85% position:50% size:80% HAPPEN TO ITS SERVICE TERRITORY. 02:12:59.905 --> 02:13:02.174 align:middle line:85% position:50% size:68% I'M NOT SURE. ALL OF US ARE 02:13:02.240 --> 02:13:03.942 align:middle line:85% position:50% size:65% SIMILARLY SITUATED IN THAT 02:13:04.009 --> 02:13:08.280 align:middle line:85% position:50% size:78% REGARD, SO I WOULD SUGGEST THAT 02:13:08.347 --> 02:13:10.816 align:middle line:85% position:50% size:68% ANY SORT OF STATE SPONSORED 02:13:10.882 --> 02:13:13.785 align:middle line:85% position:50% size:78% LIABILITY INSURANCE OR FUND FOR 02:13:13.852 --> 02:13:16.888 align:middle line:85% position:50% size:80% PO USE WOULD WOULD BE VOLUNTARY, 02:13:16.955 --> 02:13:19.858 align:middle line:85% position:50% size:73% WHICH, YOU KNOW, I THINK THAT 02:13:19.925 --> 02:13:22.027 align:middle line:85% position:50% size:78% ACCOUNTS FOR PERHAPS SOME OTHER 02:13:22.094 --> 02:13:23.595 align:middle line:85% position:50% size:70% PO USE SEEING IT DIFFERENTLY 02:13:23.662 --> 02:13:25.931 align:middle line:85% position:50% size:75% THAN THAN WE DO. BUT DWP WOULD 02:13:25.997 --> 02:13:28.467 align:middle line:85% position:50% size:73% CERTAINLY WANT TO PARTICIPATE 02:13:28.533 --> 02:13:32.771 align:middle line:85% position:50% size:60% IN EITHER OF THOSE. MOST 02:13:32.838 --> 02:13:34.639 align:middle line:85% position:50% size:73% DEFINITELY. AND THEN IN TERMS 02:13:34.706 --> 02:13:38.510 align:middle line:85% position:50% size:65% OF THE DWP ACCOUNTABILITY. 02:13:38.577 --> 02:13:39.644 align:middle line:85% position:50% size:60% RIGHT. YOU KNOW, I THINK 02:13:39.711 --> 02:13:41.079 align:middle line:85% position:50% size:55% CURRENTLY OUR WILDFIRE 02:13:41.146 --> 02:13:42.314 align:middle line:85% position:50% size:75% MITIGATION PLAN IS APPROVED BY 02:13:42.381 --> 02:13:44.316 align:middle line:85% position:50% size:60% OUR LOCAL BOARD AND THEN 02:13:44.383 --> 02:13:47.185 align:middle line:85% position:50% size:75% WILDFIRE SAFETY ADVISORY BOARD 02:13:47.252 --> 02:13:50.088 align:middle line:85% position:50% size:73% REVIEWS IT. BUT IF THERE WERE 02:13:50.155 --> 02:13:52.958 align:middle line:85% position:50% size:68% THE ABILITY TO TO HAVE THAT 02:13:53.024 --> 02:13:54.426 align:middle line:85% position:50% size:73% WILDFIRE MITIGATION APPROVED, 02:13:54.493 --> 02:13:57.262 align:middle line:85% position:50% size:73% SAY, BY CAL OE S, BUT IT CAME 02:13:57.329 --> 02:13:58.530 align:middle line:85% position:50% size:70% WITH THESE OTHER BENEFITS. I 02:13:58.597 --> 02:13:59.765 align:middle line:85% position:50% size:65% THINK THAT'S SOMETHING DWP 02:13:59.831 --> 02:14:02.968 align:middle line:85% position:50% size:60% WOULD CONSIDER. AND MORE 02:14:03.034 --> 02:14:04.436 align:middle line:85% position:50% size:70% BROADLY, YOU KNOW, THERE ARE 02:14:04.503 --> 02:14:08.039 align:middle line:85% position:50% size:60% CERTAINLY ADVANTAGES AND 02:14:08.106 --> 02:14:10.575 align:middle line:85% position:50% size:73% DISADVANTAGES TO AN IOU MODEL 02:14:10.642 --> 02:14:15.280 align:middle line:85% position:50% size:75% VERSUS A PO MODEL. THE RISK OF 02:14:15.347 --> 02:14:17.182 align:middle line:85% position:50% size:78% PUTTING YOU AND MISS BECKER OR. 02:14:17.249 --> 02:14:18.917 align:middle line:85% position:50% size:73% SORRY, MISS. YES, MISS BECKER 02:14:18.984 --> 02:14:21.553 align:middle line:85% position:50% size:78% ON THE SPOT. YOU KNOW, JUST TOP 02:14:21.620 --> 02:14:22.687 align:middle line:85% position:50% size:68% LINE. WHAT ARE THE PROS AND 02:14:22.754 --> 02:14:25.023 align:middle line:85% position:50% size:78% CONS OF EACH MODEL FOR? NOT FOR 02:14:25.090 --> 02:14:26.458 align:middle line:85% position:50% size:78% YOU. NOT FOR YOUR SHAREHOLDERS, 02:14:26.525 --> 02:14:27.859 align:middle line:85% position:50% size:53% FOR CALIFORNIANS, FOR 02:14:27.926 --> 02:14:28.927 align:middle line:85% position:50% size:63% CALIFORNIA RATEPAYERS AND 02:14:28.994 --> 02:14:39.905 align:middle line:85% position:50% size:68% TAXPAYERS. I PREFACED IT BY 02:14:39.971 --> 02:14:41.072 align:middle line:85% position:50% size:75% SAYING, AT THE RISK OF PUTTING 02:14:41.139 --> 02:14:44.075 align:middle line:85% position:50% size:70% YOU ON THE SPOT, BUT NÓ FAIR 02:14:44.142 --> 02:14:46.545 align:middle line:85% position:50% size:70% ENOUGH. I MEAN, I THINK, YOU 02:14:46.611 --> 02:14:50.148 align:middle line:85% position:50% size:75% KNOW, ONE COULD ARGUE THAT THE 02:14:50.215 --> 02:14:53.118 align:middle line:85% position:50% size:73% THE IOUS HAVE TO, TO FEED THE 02:14:53.185 --> 02:14:55.654 align:middle line:85% position:50% size:75% SHAREHOLDER COMPONENT. BUT THE 02:14:55.720 --> 02:14:57.322 align:middle line:85% position:50% size:73% IRONY IS, IF YOU HAVE A 401 K 02:14:57.389 --> 02:14:59.925 align:middle line:85% position:50% size:73% OR CALPERS, YOU'RE PROBABLY A 02:14:59.991 --> 02:15:02.461 align:middle line:85% position:50% size:78% SHAREHOLDER OF AN IOU, RIGHT? I 02:15:02.527 --> 02:15:04.963 align:middle line:85% position:50% size:70% THINK FROM A PO PERSPECTIVE, 02:15:05.030 --> 02:15:07.432 align:middle line:85% position:50% size:70% THERE'S LOCAL CONTROL, LOCAL 02:15:07.499 --> 02:15:11.403 align:middle line:85% position:50% size:78% BOARD AND OUR, THE WAY WE RAISE 02:15:11.470 --> 02:15:14.706 align:middle line:85% position:50% size:73% MONEY IS VIA BONDS. AND WE'RE 02:15:14.773 --> 02:15:15.674 align:middle line:85% position:50% size:75% TRANSPARENT, VERY TRANSPARENT. 02:15:15.740 --> 02:15:18.577 align:middle line:85% position:50% size:65% EVERYTHING WE DO IS IN THE 02:15:18.643 --> 02:15:21.112 align:middle line:85% position:50% size:73% RECORD. RIGHT. AND SO I THINK 02:15:21.179 --> 02:15:23.315 align:middle line:85% position:50% size:63% THERE'S AN ACCOUNTABILITY 02:15:23.381 --> 02:15:25.116 align:middle line:85% position:50% size:70% PERSPECTIVE THAT PEOPLE USE. 02:15:25.183 --> 02:15:27.986 align:middle line:85% position:50% size:75% ARGUE WOULD ARGUE THAT IS VERY 02:15:28.053 --> 02:15:32.324 align:middle line:85% position:50% size:78% VISIBLE FOR ITS CUSTOMERS. MISS 02:15:32.390 --> 02:15:33.425 align:middle line:85% position:50% size:73% BECKER, ANY THOUGHTS? WELL, I 02:15:33.492 --> 02:15:35.026 align:middle line:85% position:50% size:75% GUESS FIRST I WOULD COMPLIMENT 02:15:35.093 --> 02:15:36.428 align:middle line:85% position:50% size:80% THE COMMITTEE REPORT. YESTERDAY, 02:15:36.495 --> 02:15:38.697 align:middle line:85% position:50% size:75% I THOUGHT IT I'M NOT AN EXPERT 02:15:38.763 --> 02:15:39.931 align:middle line:85% position:50% size:75% IN THESE ISSUES, BUT I THOUGHT 02:15:39.998 --> 02:15:41.700 align:middle line:85% position:50% size:50% IT DID A GOOD JOB OF 02:15:41.766 --> 02:15:43.068 align:middle line:85% position:50% size:70% HIGHLIGHTING SOME OF THE KEY 02:15:43.134 --> 02:15:43.869 align:middle line:85% position:50% size:73% DISTINCTIONS. AND THERE ARE A 02:15:43.935 --> 02:15:44.936 align:middle line:85% position:50% size:60% NUMBER OF CONSIDERATIONS 02:15:45.003 --> 02:15:47.405 align:middle line:85% position:50% size:65% BETWEEN THE IOU AND THE PO 02:15:47.472 --> 02:15:51.710 align:middle line:85% position:50% size:75% MODEL. SO I WON'T REHASH THOSE 02:15:51.776 --> 02:15:54.646 align:middle line:85% position:50% size:78% HERE. BUT WE DO BELIEVE THE IOU 02:15:54.713 --> 02:15:56.047 align:middle line:85% position:50% size:53% MODEL HAS A NUMBER OF 02:15:56.114 --> 02:15:57.582 align:middle line:85% position:50% size:75% TREMENDOUS BENEFITS, NOT LEAST 02:15:57.649 --> 02:15:59.684 align:middle line:85% position:50% size:78% OF WHICH IS SCALE AND SCOPE AND 02:15:59.751 --> 02:16:02.153 align:middle line:85% position:50% size:75% THE ABILITY, WHEN IT WORKS, TO 02:16:02.220 --> 02:16:03.955 align:middle line:85% position:50% size:75% BRING LARGE AMOUNT OF LOW COST 02:16:04.022 --> 02:16:05.190 align:middle line:85% position:50% size:78% INVESTOR CAPITAL TO DO WORK AND 02:16:05.257 --> 02:16:08.660 align:middle line:85% position:50% size:68% TO DO IT QUICKLY. BUT MAYBE 02:16:08.727 --> 02:16:10.795 align:middle line:85% position:50% size:73% JUST TO BRING IT BACK TO THIS 02:16:10.862 --> 02:16:12.030 align:middle line:85% position:50% size:73% FORUM AND SOMETHING I THOUGHT 02:16:12.097 --> 02:16:14.065 align:middle line:85% position:50% size:55% IN READING THAT REPORT 02:16:14.132 --> 02:16:15.834 align:middle line:85% position:50% size:55% YESTERDAY WAS JUST THE 02:16:15.901 --> 02:16:17.235 align:middle line:85% position:50% size:75% DISCUSSION OF AN OPTIMAL MODEL 02:16:17.302 --> 02:16:22.374 align:middle line:85% position:50% size:78% IS A NOT A FAST ONE IN TERMS OF 02:16:22.440 --> 02:16:24.442 align:middle line:85% position:50% size:65% DETERMINING, DECIDING THAT 02:16:24.509 --> 02:16:25.944 align:middle line:85% position:50% size:75% DEBATE OR WHAT A SPECIFIC AREA 02:16:26.011 --> 02:16:28.947 align:middle line:85% position:50% size:75% MIGHT NEED. AND I JUST FEELING 02:16:29.014 --> 02:16:30.615 align:middle line:85% position:50% size:73% THE URGENCY OF THE ISSUE THAT 02:16:30.682 --> 02:16:31.783 align:middle line:85% position:50% size:70% WE HAVE IN FRONT OF US TODAY 02:16:31.850 --> 02:16:33.752 align:middle line:85% position:50% size:78% ALSO FELT LIKE IT FELT A LITTLE 02:16:33.818 --> 02:16:36.388 align:middle line:85% position:50% size:70% OUT OF PLACE IN TERMS OF THE 02:16:36.454 --> 02:16:37.489 align:middle line:85% position:50% size:60% NEEDING SOMETHING NOW TO 02:16:37.556 --> 02:16:38.890 align:middle line:85% position:50% size:65% ADDRESS WHAT'S IN FRONT OF 02:16:38.957 --> 02:16:41.059 align:middle line:85% position:50% size:70% CALIFORNIA VERSUS THOSE REAL 02:16:41.126 --> 02:16:42.127 align:middle line:85% position:50% size:73% CONSIDERATIONS AND TRADE OFFS 02:16:42.193 --> 02:16:43.595 align:middle line:85% position:50% size:68% THAT ARE PART OF THE PUBLIC 02:16:43.662 --> 02:16:46.898 align:middle line:85% position:50% size:78% DISCOURSE. I GUESS, YOU KNOW, I 02:16:46.965 --> 02:16:48.633 align:middle line:85% position:50% size:75% THINK WE CAN PROBABLY WALK AND 02:16:48.700 --> 02:16:50.335 align:middle line:85% position:50% size:78% CHEW GUM AT THE SAME TIME. SO I 02:16:50.402 --> 02:16:51.603 align:middle line:85% position:50% size:78% THINK IT'S REALLY IMPORTANT FOR 02:16:51.670 --> 02:16:53.271 align:middle line:85% position:50% size:65% US IN THIS CONVERSATION TO 02:16:53.338 --> 02:16:55.507 align:middle line:85% position:50% size:78% CONTEMPLATE BOTH WHAT ACTION IS 02:16:55.574 --> 02:16:57.242 align:middle line:85% position:50% size:70% URGENTLY NEEDED NOW TO STAVE 02:16:57.309 --> 02:16:59.377 align:middle line:85% position:50% size:50% OFF A CRISIS THAT IS 02:16:59.444 --> 02:17:00.478 align:middle line:85% position:50% size:75% POTENTIALLY GOING TO DEVASTATE 02:17:00.545 --> 02:17:02.247 align:middle line:85% position:50% size:73% NOT JUST CALIFORNIA'S UTILITY 02:17:02.314 --> 02:17:05.183 align:middle line:85% position:50% size:78% SECTOR, BUT THE ENTIRE ECONOMY. 02:17:05.250 --> 02:17:08.019 align:middle line:85% position:50% size:55% AND WHAT ARE THE RIGHT 02:17:08.086 --> 02:17:09.054 align:middle line:85% position:50% size:68% CONVERSATIONS AND THE RIGHT 02:17:09.120 --> 02:17:10.121 align:middle line:85% position:50% size:70% QUESTIONS THAT WE NEED TO BE 02:17:10.188 --> 02:17:11.256 align:middle line:85% position:50% size:55% ASKING AS THE STATE OF 02:17:11.323 --> 02:17:13.191 align:middle line:85% position:50% size:73% CALIFORNIA IN IN A MEDIUM AND 02:17:13.258 --> 02:17:15.093 align:middle line:85% position:50% size:75% LONG TERM FRAME. SO I THINK WE 02:17:15.160 --> 02:17:17.128 align:middle line:85% position:50% size:73% CAN DO, WE CAN AND NEED TO DO 02:17:17.195 --> 02:17:18.530 align:middle line:85% position:50% size:75% BOTH OF THOSE THINGS TOGETHER. 02:17:18.597 --> 02:17:20.332 align:middle line:85% position:50% size:78% ANYONE ELSE HAVE THOUGHTS ON MY 02:17:20.398 --> 02:17:21.866 align:middle line:85% position:50% size:68% IOU? I SAW YOU NODDING OVER 02:17:21.933 --> 02:17:24.669 align:middle line:85% position:50% size:73% THERE. MR. BROTHWELL. I WOULD 02:17:24.736 --> 02:17:27.205 align:middle line:85% position:50% size:78% AGREE WITH MISS BECKER. THE THE 02:17:27.272 --> 02:17:29.007 align:middle line:85% position:50% size:68% BACKGROUND REPORT ADDRESSED 02:17:29.074 --> 02:17:30.442 align:middle line:85% position:50% size:75% THIS. I THOUGHT IN A VERY FAIR 02:17:30.508 --> 02:17:32.911 align:middle line:85% position:50% size:75% AND BALANCED WAY. I WOULD JUST 02:17:32.978 --> 02:17:35.013 align:middle line:85% position:50% size:75% REITERATE THAT TWO POINTS. THE 02:17:35.080 --> 02:17:36.314 align:middle line:85% position:50% size:75% EQUITY MARKET, AS I MENTIONED, 02:17:36.381 --> 02:17:39.117 align:middle line:85% position:50% size:75% IS VERY LARGE AND IT'S A. IT'S 02:17:39.184 --> 02:17:41.219 align:middle line:85% position:50% size:63% A POOL OF CAPITAL THAT IS 02:17:41.286 --> 02:17:43.321 align:middle line:85% position:50% size:73% AVAILABLE TO THE IOU. I'M NOT 02:17:43.388 --> 02:17:44.189 align:middle line:85% position:50% size:75% SUGGESTING THAT ONE IS BETTER. 02:17:44.255 --> 02:17:45.857 align:middle line:85% position:50% size:68% IT'S JUST A DIFFERENTIATING 02:17:45.924 --> 02:17:51.262 align:middle line:85% position:50% size:78% FACTOR. AND THE THE OTHER POINT 02:17:51.329 --> 02:17:55.233 align:middle line:85% position:50% size:73% IS THAT IF THE STATE OR STATE 02:17:55.300 --> 02:17:56.635 align:middle line:85% position:50% size:75% ENTITIES OR MUNICIPAL ENTITIES 02:17:56.701 --> 02:17:59.571 align:middle line:85% position:50% size:78% START TAKING ON ADDITIONAL DEBT 02:17:59.638 --> 02:18:00.972 align:middle line:85% position:50% size:63% TO FUND ACQUISITIONS, FOR 02:18:01.039 --> 02:18:02.607 align:middle line:85% position:50% size:75% INSTANCE. AND I THINK THAT WAS 02:18:02.674 --> 02:18:03.675 align:middle line:85% position:50% size:60% ALSO MENTIONED IN IN THE 02:18:03.742 --> 02:18:04.743 align:middle line:85% position:50% size:78% BACKGROUND REPORT, THAT'S GOING 02:18:04.809 --> 02:18:06.745 align:middle line:85% position:50% size:70% TO BE THAT'S GOING TO AFFECT 02:18:06.811 --> 02:18:08.213 align:middle line:85% position:50% size:70% THE THE VIEW THAT THE CREDIT 02:18:08.279 --> 02:18:09.948 align:middle line:85% position:50% size:75% RATING AGENCY AGENCIES HAVE ON 02:18:10.015 --> 02:18:11.383 align:middle line:85% position:50% size:75% THEIR DEBT, AS WELL AS THAT OF 02:18:11.449 --> 02:18:15.320 align:middle line:85% position:50% size:75% THE STATE. THANK YOU. MISS, DO 02:18:15.387 --> 02:18:17.188 align:middle line:85% position:50% size:75% YOU HAVE SOME QUESTIONS? THANK 02:18:17.255 --> 02:18:19.157 align:middle line:85% position:50% size:78% YOU. THANK YOU, THANK YOU THANK 02:18:19.224 --> 02:18:22.627 align:middle line:85% position:50% size:78% YOU EVERYONE. YOU KNOW, I THINK 02:18:22.694 --> 02:18:24.329 align:middle line:85% position:50% size:75% YOU'RE A COMMENT ABOUT NO EASY 02:18:24.396 --> 02:18:26.598 align:middle line:85% position:50% size:78% SOLUTIONS, JUST HARD CHOICES IS 02:18:26.665 --> 02:18:29.100 align:middle line:85% position:50% size:53% A GOOD SUMMARY OF THE 02:18:29.167 --> 02:18:31.636 align:middle line:85% position:50% size:68% CONVERSATION TODAY. AND YOU 02:18:31.703 --> 02:18:33.238 align:middle line:85% position:50% size:70% KNOW, IN THE MIDDLE OF THIS, 02:18:33.304 --> 02:18:35.507 align:middle line:85% position:50% size:68% OUR RATEPAYERS WHO ARE ALSO 02:18:35.573 --> 02:18:37.342 align:middle line:85% position:50% size:73% TAXPAYERS AND COULD BE PAYING 02:18:37.409 --> 02:18:38.843 align:middle line:85% position:50% size:73% TWICE FOR SOME OF THIS STUFF, 02:18:38.910 --> 02:18:42.714 align:middle line:85% position:50% size:75% RIGHT. AND, YOU KNOW, AND, AND 02:18:42.781 --> 02:18:44.983 align:middle line:85% position:50% size:80% PEOPLE ARE STRUGGLING RIGHT NOW. 02:18:45.050 --> 02:18:48.520 align:middle line:85% position:50% size:63% AND I, I KNOW THE HEARING 02:18:48.586 --> 02:18:50.055 align:middle line:85% position:50% size:78% REALLY, YOU KNOW, THAT HAPPENED 02:18:50.121 --> 02:18:53.425 align:middle line:85% position:50% size:70% AT LADWP REALLY DEMONSTRATED 02:18:53.491 --> 02:18:55.226 align:middle line:85% position:50% size:73% THAT AND THE CALL TO NOT SHUT 02:18:55.293 --> 02:18:56.361 align:middle line:85% position:50% size:78% PEOPLE OFF RIGHT BEFORE THE END 02:18:56.428 --> 02:18:58.229 align:middle line:85% position:50% size:63% OF THE YEAR, YOU GUYS ARE 02:18:58.296 --> 02:18:59.998 align:middle line:85% position:50% size:70% HAVING TO MAKE THESE CHOICES 02:19:00.065 --> 02:19:01.466 align:middle line:85% position:50% size:53% NOW BECAUSE OF PEOPLE 02:19:01.533 --> 02:19:03.601 align:middle line:85% position:50% size:55% STRUGGLING SO MUCH. IT 02:19:03.668 --> 02:19:05.804 align:middle line:85% position:50% size:68% CERTAINLY HAVE PEOPLE IN MY 02:19:05.870 --> 02:19:07.939 align:middle line:85% position:50% size:73% COMMUNITY, YOU KNOW, WHO HAVE 02:19:08.006 --> 02:19:09.774 align:middle line:85% position:50% size:68% BEEN RAISING CONCERNS ABOUT 02:19:09.841 --> 02:19:11.176 align:middle line:85% position:50% size:78% INCREASED RATES FOR A VERY LONG 02:19:11.242 --> 02:19:13.745 align:middle line:85% position:50% size:73% TIME. AND, AND BECAUSE OF THE 02:19:13.812 --> 02:19:16.581 align:middle line:85% position:50% size:78% MANY, MANY, MANY HOT DAYS, VERY 02:19:16.648 --> 02:19:18.717 align:middle line:85% position:50% size:78% HOT DAYS THAT WE HAD IN THE LOS 02:19:18.783 --> 02:19:21.720 align:middle line:85% position:50% size:75% ANGELES AREA, PEOPLE HAVE MADE 02:19:21.786 --> 02:19:23.455 align:middle line:85% position:50% size:75% THE DECISIONS TO JUST NOT TURN 02:19:23.521 --> 02:19:26.324 align:middle line:85% position:50% size:73% ON THE AC AT ALL AND WHICH IS 02:19:26.391 --> 02:19:27.192 align:middle line:85% position:50% size:75% DANGEROUS, YOU KNOW, DANGEROUS 02:19:27.258 --> 02:19:29.160 align:middle line:85% position:50% size:68% TO THEIR HEALTH. AND IF YOU 02:19:29.227 --> 02:19:31.362 align:middle line:85% position:50% size:68% LIVE AROUND CHIQUITA CANYON 02:19:31.429 --> 02:19:33.098 align:middle line:85% position:50% size:68% LANDFILL, IT'S DANGEROUS TO 02:19:33.164 --> 02:19:35.300 align:middle line:85% position:50% size:73% OPEN THE WINDOWS TO, WHICH IS 02:19:35.366 --> 02:19:37.802 align:middle line:85% position:50% size:75% IN MY DISTRICT AND THE BURNING 02:19:37.869 --> 02:19:41.039 align:middle line:85% position:50% size:78% LANDFILL. SO IT'S, YOU KNOW, IT 02:19:41.106 --> 02:19:44.242 align:middle line:85% position:50% size:75% CREATES IMPOSSIBLE CHOICES FOR 02:19:44.309 --> 02:19:47.178 align:middle line:85% position:50% size:75% PEOPLE WHO CANNOT AFFORD THEIR 02:19:47.245 --> 02:19:51.216 align:middle line:85% position:50% size:63% RATES. AND I THINK IT'S A 02:19:51.282 --> 02:19:53.251 align:middle line:85% position:50% size:60% REALLY DIFFICULT PILL TO 02:19:53.318 --> 02:19:57.622 align:middle line:85% position:50% size:68% SWALLOW THAT YOUR RATES ARE 02:19:57.689 --> 02:20:00.458 align:middle line:85% position:50% size:70% TIED TO THE CREDIT RATING OF 02:20:00.525 --> 02:20:04.829 align:middle line:85% position:50% size:68% YOUR PROVIDER, YOUR UTILITY 02:20:04.896 --> 02:20:07.365 align:middle line:85% position:50% size:75% PROVIDER, RIGHT? THAT YOU HAVE 02:20:07.432 --> 02:20:09.868 align:middle line:85% position:50% size:73% TO REALLY CARE ABOUT THAT AND 02:20:09.934 --> 02:20:11.302 align:middle line:85% position:50% size:63% THAT THINGS THAT MIGHT BE 02:20:11.369 --> 02:20:14.205 align:middle line:85% position:50% size:63% REALLY GOOD FOR YOU, LIKE 02:20:14.272 --> 02:20:17.041 align:middle line:85% position:50% size:75% THINGS THAT LOWER COST FOR YOU 02:20:17.108 --> 02:20:19.244 align:middle line:85% position:50% size:73% CAN, AT THE SAME TIME WORK TO 02:20:19.310 --> 02:20:22.647 align:middle line:85% position:50% size:70% BE A DISADVANTAGE BECAUSE IT 02:20:22.714 --> 02:20:25.016 align:middle line:85% position:50% size:78% MIGHT INCREASE, YOU KNOW, OR IT 02:20:25.083 --> 02:20:26.484 align:middle line:85% position:50% size:75% MIGHT LOWER YOUR CREDIT RATING 02:20:26.551 --> 02:20:27.819 align:middle line:85% position:50% size:65% AND THEN INCREASE COSTS IN 02:20:27.886 --> 02:20:32.223 align:middle line:85% position:50% size:68% ANOTHER WAY, RIGHT? SO, YOU 02:20:32.290 --> 02:20:34.459 align:middle line:85% position:50% size:75% KNOW, SO IT'S JUST, IT'S, IT'S 02:20:34.526 --> 02:20:38.663 align:middle line:85% position:50% size:70% A VERY OBVIOUSLY COMPLICATED 02:20:38.730 --> 02:20:40.231 align:middle line:85% position:50% size:70% ISSUE THAT WE HAVE TO FIGURE 02:20:40.298 --> 02:20:41.966 align:middle line:85% position:50% size:73% OUT SOLUTIONS TO. AND I THINK 02:20:42.033 --> 02:20:44.068 align:middle line:85% position:50% size:78% WHAT WE WANT TO PREVENT, AND I, 02:20:44.135 --> 02:20:45.470 align:middle line:85% position:50% size:60% YOU KNOW, APPRECIATE THE 02:20:45.537 --> 02:20:46.671 align:middle line:85% position:50% size:78% CHAIR'S LEADERSHIP AND THE HARD 02:20:46.738 --> 02:20:48.373 align:middle line:85% position:50% size:73% WORK OF THE STAFF ON THIS AND 02:20:48.439 --> 02:20:51.676 align:middle line:85% position:50% size:75% THE SERIES OF HEARINGS IS, YOU 02:20:51.743 --> 02:20:53.344 align:middle line:85% position:50% size:75% KNOW, WE DON'T WANT TO BE IN A 02:20:53.411 --> 02:20:54.479 align:middle line:85% position:50% size:70% SITUATION LIKE WE HAVE FOUND 02:20:54.546 --> 02:20:55.880 align:middle line:85% position:50% size:65% OURSELVES IN THE INSURANCE 02:20:55.947 --> 02:20:59.918 align:middle line:85% position:50% size:78% INDUSTRY WHERE, YOU KNOW, WHERE 02:20:59.984 --> 02:21:02.053 align:middle line:85% position:50% size:78% PEOPLE ARE REALLY AT A LOSS FOR 02:21:02.120 --> 02:21:09.594 align:middle line:85% position:50% size:70% PROVIDERS, RIGHT? AND SO. SO 02:21:09.661 --> 02:21:11.396 align:middle line:85% position:50% size:70% THAT'S JUST LIKE, FEELS LIKE 02:21:11.462 --> 02:21:12.897 align:middle line:85% position:50% size:68% THE BACKDROP OF WHAT WE ARE 02:21:12.964 --> 02:21:14.666 align:middle line:85% position:50% size:68% FACING RIGHT NOW, TRYING TO 02:21:14.732 --> 02:21:16.835 align:middle line:85% position:50% size:73% FIGURE THIS OUT AND SERVE OUR 02:21:16.901 --> 02:21:18.269 align:middle line:85% position:50% size:75% COMMUNITY WHO IS STRUGGLING TO 02:21:18.336 --> 02:21:21.940 align:middle line:85% position:50% size:75% PAY THEIR RATES. AND IT'S WHAT 02:21:22.006 --> 02:21:23.842 align:middle line:85% position:50% size:78% I THINK ALSO MAKES IT DIFFICULT 02:21:23.908 --> 02:21:26.544 align:middle line:85% position:50% size:78% IS THAT WE FOR SO MANY YEARS, I 02:21:26.611 --> 02:21:27.946 align:middle line:85% position:50% size:70% FEEL LIKE WE'VE BEEN TALKING 02:21:28.012 --> 02:21:29.514 align:middle line:85% position:50% size:78% ABOUT, OH, WE'RE GOING TO WE'RE 02:21:29.581 --> 02:21:31.950 align:middle line:85% position:50% size:68% GOING TO SEE THIS ABUNDANCE 02:21:32.016 --> 02:21:34.052 align:middle line:85% position:50% size:65% RIGHT IN THE ENERGY MARKET 02:21:34.118 --> 02:21:35.520 align:middle line:85% position:50% size:73% WHERE WE'RE GOING TO HAVE ALL 02:21:35.587 --> 02:21:37.055 align:middle line:85% position:50% size:73% THIS SOLAR AND WIND, AND IT'S 02:21:37.121 --> 02:21:38.590 align:middle line:85% position:50% size:78% GOING TO WE'RE GOING TO HAVE TO 02:21:38.656 --> 02:21:39.791 align:middle line:85% position:50% size:73% DO THESE INITIAL INVESTMENTS, 02:21:39.858 --> 02:21:41.392 align:middle line:85% position:50% size:70% AND THEN IT'S GOING TO BRING 02:21:41.459 --> 02:21:44.629 align:middle line:85% position:50% size:75% THE COST DOWN OVER TIME. AND I 02:21:44.696 --> 02:21:46.564 align:middle line:85% position:50% size:73% DON'T THINK I DON'T FEEL LIKE 02:21:46.631 --> 02:21:47.765 align:middle line:85% position:50% size:73% WE'RE SEEING THAT. RIGHT. ARE 02:21:47.832 --> 02:21:48.967 align:middle line:85% position:50% size:73% WE SEEING ARE WE SEEING THIS? 02:21:49.033 --> 02:21:50.668 align:middle line:85% position:50% size:68% IT DOES NOT FEEL LIKE WE'RE 02:21:50.735 --> 02:21:51.836 align:middle line:85% position:50% size:80% SEEING THIS. WE ARE SEEING THIS. 02:21:51.903 --> 02:21:55.340 align:middle line:85% position:50% size:75% YES. OKAY. EXPLAIN IT TO ME. I 02:21:55.406 --> 02:21:58.576 align:middle line:85% position:50% size:78% WILL GIVE YOU AN EXAMPLE. OKAY. 02:21:58.643 --> 02:22:03.281 align:middle line:85% position:50% size:78% THE PRICE PER KILOWATT HOUR FOR 02:22:03.348 --> 02:22:06.117 align:middle line:85% position:50% size:75% LARGE SCALE SOLAR IS LESS THAN 02:22:06.184 --> 02:22:08.653 align:middle line:85% position:50% size:78% $0.03 PER KILOWATT HOUR. THAT'S 02:22:08.720 --> 02:22:11.189 align:middle line:85% position:50% size:78% CHEAPER THAN COAL, CHEAPER THAN 02:22:11.256 --> 02:22:14.759 align:middle line:85% position:50% size:78% NATURAL GAS. THAT'S ONE EXAMPLE 02:22:14.826 --> 02:22:17.629 align:middle line:85% position:50% size:73% WHERE AT LEAST IN, IN, IN, IN 02:22:17.695 --> 02:22:20.164 align:middle line:85% position:50% size:70% ONE IMPORTANT SECTOR, IT HAS 02:22:20.231 --> 02:22:23.101 align:middle line:85% position:50% size:75% COME DOWN. NOT IN ALL OF THEM, 02:22:23.167 --> 02:22:24.535 align:middle line:85% position:50% size:75% BUT THAT IS ONE IMPORTANT ONE, 02:22:24.602 --> 02:22:27.772 align:middle line:85% position:50% size:73% WHICH WE'RE VERY HAPPY ABOUT. 02:22:27.839 --> 02:22:29.474 align:middle line:85% position:50% size:75% AND SO HOW IS THAT TRANSLATING 02:22:29.540 --> 02:22:31.342 align:middle line:85% position:50% size:63% INTO IT BEING CHEAPER FOR 02:22:31.409 --> 02:22:36.381 align:middle line:85% position:50% size:70% CUSTOMERS, CUSTOMERS PAY FOR 02:22:36.447 --> 02:22:40.652 align:middle line:85% position:50% size:70% THE GENERATION COSTS. SO THE 02:22:40.718 --> 02:22:41.786 align:middle line:85% position:50% size:68% GENERATION COSTS ARE PASSED 02:22:41.853 --> 02:22:43.888 align:middle line:85% position:50% size:65% RIGHT ALONG. IT'S NOT LIKE 02:22:43.955 --> 02:22:46.391 align:middle line:85% position:50% size:60% THERE'S NO PROFIT IN THE 02:22:46.457 --> 02:22:48.192 align:middle line:85% position:50% size:75% GENERATION COSTS. SO CUSTOMERS 02:22:48.259 --> 02:22:50.762 align:middle line:85% position:50% size:68% WOULD BE PAYING A LOT MORE. 02:22:50.828 --> 02:22:51.930 align:middle line:85% position:50% size:78% CUSTOMERS, FOR INSTANCE, DO PAY 02:22:51.996 --> 02:22:55.066 align:middle line:85% position:50% size:63% A LOT MORE FOR THE SOLAR. 02:22:55.133 --> 02:22:59.771 align:middle line:85% position:50% size:68% THAT'S FROM WHOSE ORIGIN IS 02:22:59.837 --> 02:23:02.240 align:middle line:85% position:50% size:70% ROOFTOP IS HIGHER THAN THAT. 02:23:02.307 --> 02:23:04.342 align:middle line:85% position:50% size:73% I'M I'M SPEAKING SPECIFICALLY 02:23:04.409 --> 02:23:06.978 align:middle line:85% position:50% size:75% OF THE LARGE SCALE SOLAR. JUST 02:23:07.045 --> 02:23:09.480 align:middle line:85% position:50% size:78% BECAUSE IT IS ONE OF THE BRIGHT 02:23:09.547 --> 02:23:13.084 align:middle line:85% position:50% size:55% LIGHTS IN CLEAN ENERGY 02:23:13.151 --> 02:23:15.586 align:middle line:85% position:50% size:60% INVESTMENT. BUT OVERALL, 02:23:15.653 --> 02:23:17.455 align:middle line:85% position:50% size:68% RATEPAYERS ARE SEEING THEIR 02:23:17.522 --> 02:23:21.426 align:middle line:85% position:50% size:63% BILLS GO UP, RIGHT AND UP 02:23:21.492 --> 02:23:22.860 align:middle line:85% position:50% size:68% FASTER THAN INFLATION RATE, 02:23:22.927 --> 02:23:24.929 align:middle line:85% position:50% size:55% HIGHER THAN INFLATION. 02:23:24.996 --> 02:23:28.232 align:middle line:85% position:50% size:58% ABSOLUTELY. SO THE SO I 02:23:28.299 --> 02:23:31.436 align:middle line:85% position:50% size:75% APPRECIATE THAT SOLAR IS LESS, 02:23:31.502 --> 02:23:32.904 align:middle line:85% position:50% size:63% BUT THE OVERALL COST THAT 02:23:32.971 --> 02:23:34.605 align:middle line:85% position:50% size:75% PEOPLE ARE PAYING IS NOT LESS. 02:23:34.672 --> 02:23:36.574 align:middle line:85% position:50% size:68% IT'S MUCH, MUCH MORE. AND I 02:23:36.641 --> 02:23:38.409 align:middle line:85% position:50% size:75% THINK THAT'S, YOU KNOW, THAT'S 02:23:38.476 --> 02:23:39.777 align:middle line:85% position:50% size:68% WHERE IT FEELS LIKE THERE'S 02:23:39.844 --> 02:23:41.479 align:middle line:85% position:50% size:65% THIS DISCONNECT OF, OF THE 02:23:41.546 --> 02:23:43.481 align:middle line:85% position:50% size:73% PROMISE THAT, THAT WE'VE BEEN 02:23:43.548 --> 02:23:45.883 align:middle line:85% position:50% size:75% HEARING ABOUT AND HOW IS THIS, 02:23:45.950 --> 02:23:49.087 align:middle line:85% position:50% size:75% YOU KNOW, SO WHAT'S THE OTHER, 02:23:49.153 --> 02:23:51.022 align:middle line:85% position:50% size:75% YOU KNOW, THE OTHER BIG PIECES 02:23:51.089 --> 02:23:52.724 align:middle line:85% position:50% size:68% THAT ARE COSTING US SO MUCH 02:23:52.790 --> 02:23:54.492 align:middle line:85% position:50% size:78% MORE. AND I KNOW PART OF IT HAS 02:23:54.559 --> 02:23:56.327 align:middle line:85% position:50% size:55% TO DO WITH THE COST OF 02:23:56.394 --> 02:23:57.462 align:middle line:85% position:50% size:73% BORROWING, AND PART OF IT HAS 02:23:57.528 --> 02:23:59.364 align:middle line:85% position:50% size:53% TO DO WITH ALL OF THE 02:23:59.430 --> 02:24:00.365 align:middle line:85% position:50% size:73% INFRASTRUCTURE THAT GOES INTO 02:24:00.431 --> 02:24:02.800 align:middle line:85% position:50% size:73% IT. I WANTED TO ASK PG AND E, 02:24:02.867 --> 02:24:04.569 align:middle line:85% position:50% size:78% IF YOU CAN EXPLAIN A LITTLE BIT 02:24:04.635 --> 02:24:10.341 align:middle line:85% position:50% size:78% MORE ABOUT THIS $2 BILLION. AND 02:24:10.408 --> 02:24:15.013 align:middle line:85% position:50% size:70% HOW IT WAS DECIDED UPON WHAT 02:24:15.079 --> 02:24:18.282 align:middle line:85% position:50% size:78% WOULD BE BOTH WHAT THE WHAT YOU 02:24:18.349 --> 02:24:24.355 align:middle line:85% position:50% size:78% WOULD BE DEFERRING, AND ALSO IS 02:24:24.422 --> 02:24:27.258 align:middle line:85% position:50% size:73% HOW IS THAT WHO'S $2 BILLION? 02:24:27.325 --> 02:24:31.562 align:middle line:85% position:50% size:78% IS THAT IS THAT ALL? IS THAT $2 02:24:31.629 --> 02:24:33.364 align:middle line:85% position:50% size:60% BILLION IN PROJECTS THAT 02:24:33.431 --> 02:24:34.832 align:middle line:85% position:50% size:78% SOMEBODY ELSE BUILT THAT PG AND 02:24:34.899 --> 02:24:37.068 align:middle line:85% position:50% size:73% DIDN'T PAY FOR? OR IS THIS $2 02:24:37.135 --> 02:24:39.504 align:middle line:85% position:50% size:73% BILLION OF PG AND E ONLY WORK 02:24:39.570 --> 02:24:41.706 align:middle line:85% position:50% size:75% THAT YOU ARE NOT DOING? OR CAN 02:24:41.773 --> 02:24:43.441 align:middle line:85% position:50% size:73% YOU EXPLAIN A LITTLE BIT MORE 02:24:43.508 --> 02:24:46.310 align:middle line:85% position:50% size:75% ABOUT THAT? SURE. I, I THINK I 02:24:46.377 --> 02:24:47.779 align:middle line:85% position:50% size:70% SHARED A LITTLE BIT EARLIER, 02:24:47.845 --> 02:24:49.480 align:middle line:85% position:50% size:75% BUT IF WE THINK OF SORT OF THE 02:24:49.547 --> 02:24:50.782 align:middle line:85% position:50% size:75% MAJOR BUCKETS OF WHAT MAKES UP 02:24:50.848 --> 02:24:54.552 align:middle line:85% position:50% size:78% THAT $2 BILLION, IF WE THINK OF 02:24:54.619 --> 02:24:56.754 align:middle line:85% position:50% size:73% IT IN TERMS OF TYPES OF WORK, 02:24:56.821 --> 02:24:58.222 align:middle line:85% position:50% size:78% YOU KNOW, THAT IS AREAS LIKE WE 02:24:58.289 --> 02:24:59.657 align:middle line:85% position:50% size:58% ARE HEARING ABOUT HERE, 02:24:59.724 --> 02:25:01.426 align:middle line:85% position:50% size:55% CUSTOMER, NEW CUSTOMER 02:25:01.492 --> 02:25:02.894 align:middle line:85% position:50% size:53% CONNECTIONS, ELECTRIC 02:25:02.960 --> 02:25:04.729 align:middle line:85% position:50% size:73% GENERATION, INTERCONNECTIONS, 02:25:04.796 --> 02:25:06.197 align:middle line:85% position:50% size:78% WORK REQUESTED BY OTHERS, WHICH 02:25:06.264 --> 02:25:09.367 align:middle line:85% position:50% size:75% CAN BE LIKE RELOCATION WORK IN 02:25:09.434 --> 02:25:10.835 align:middle line:85% position:50% size:73% DIFFERENT AREAS. AND DID THEY 02:25:10.902 --> 02:25:12.603 align:middle line:85% position:50% size:78% PAY FOR THAT? LIKE, I KNOW, FOR 02:25:12.670 --> 02:25:15.773 align:middle line:85% position:50% size:70% EXAMPLE, BUILDING, YOU KNOW, 02:25:15.840 --> 02:25:17.275 align:middle line:85% position:50% size:70% HOUSING, THEY'LL PAY FOR THE 02:25:17.341 --> 02:25:19.410 align:middle line:85% position:50% size:78% COST OF CONNECTION, CORRECT? IS 02:25:19.477 --> 02:25:24.115 align:middle line:85% position:50% size:60% THAT CORRECT? YES. IN IN 02:25:24.182 --> 02:25:26.317 align:middle line:85% position:50% size:78% GENERAL, I GUESS I CAN SAY THAT 02:25:26.384 --> 02:25:27.685 align:middle line:85% position:50% size:73% OUR INVESTMENTS, PARTICULARLY 02:25:27.752 --> 02:25:29.153 align:middle line:85% position:50% size:73% APPROVED CAPITAL EXPENDITURES 02:25:29.220 --> 02:25:31.022 align:middle line:85% position:50% size:78% THAT GO INTO OUR RATE BASE ARE, 02:25:31.089 --> 02:25:33.124 align:middle line:85% position:50% size:68% IS WORK THAT WE ARE FUNDING 02:25:33.191 --> 02:25:35.726 align:middle line:85% position:50% size:78% OURSELVES. I DON'T KNOW ALL THE 02:25:35.793 --> 02:25:37.295 align:middle line:85% position:50% size:75% SPECIFICS ON MAYBE SOME OF THE 02:25:37.361 --> 02:25:40.364 align:middle line:85% position:50% size:68% NUANCED RATE MAKING OR SO I 02:25:40.431 --> 02:25:41.532 align:middle line:85% position:50% size:75% THINK MAYBE THE GENERAL ANSWER 02:25:41.599 --> 02:25:43.434 align:middle line:85% position:50% size:73% IS THE BEST WAY TO RESPOND TO 02:25:43.501 --> 02:25:45.069 align:middle line:85% position:50% size:73% IT, WHICH IS OUR BUSINESS, IS 02:25:45.136 --> 02:25:46.771 align:middle line:85% position:50% size:70% WE ARE RAISING THE MONEY AND 02:25:46.838 --> 02:25:47.972 align:middle line:85% position:50% size:75% INVESTING THAT. AND THAT'S THE 02:25:48.039 --> 02:25:48.940 align:middle line:85% position:50% size:65% BULK OF WHAT WE'RE TALKING 02:25:49.006 --> 02:25:51.209 align:middle line:85% position:50% size:73% ABOUT HERE. SO SO WHAT YOU'RE 02:25:51.275 --> 02:25:53.945 align:middle line:85% position:50% size:75% SAYING IS IT'S $2 BILLION THAT 02:25:54.011 --> 02:25:56.114 align:middle line:85% position:50% size:70% PG AND E WILL NOT BE PAYING. 02:25:56.180 --> 02:25:57.682 align:middle line:85% position:50% size:68% IT'S PG AND E DOLLARS. IT'S 02:25:57.748 --> 02:25:59.083 align:middle line:85% position:50% size:73% WORK WE WON'T DO. AND BECAUSE 02:25:59.150 --> 02:26:00.585 align:middle line:85% position:50% size:70% WE'RE NOT DOING THE WORK, WE 02:26:00.651 --> 02:26:01.752 align:middle line:85% position:50% size:65% DON'T HAVE TO GO RAISE THE 02:26:01.819 --> 02:26:03.521 align:middle line:85% position:50% size:60% MONEY TO FUND IT. THAT'S 02:26:03.588 --> 02:26:04.856 align:middle line:85% position:50% size:75% CORRECT. OKAY. IF I COULD JUST 02:26:04.922 --> 02:26:07.759 align:middle line:85% position:50% size:78% WEIGH IN THAT THIS IS I'LL JUST 02:26:07.825 --> 02:26:08.926 align:middle line:85% position:50% size:70% KIND OF GIVE YOU THE HISTORY 02:26:08.993 --> 02:26:11.028 align:middle line:85% position:50% size:73% HERE. SO WHEN WHEN POPPY CAME 02:26:11.095 --> 02:26:12.930 align:middle line:85% position:50% size:70% IN, WE SAT DOWN WITH HER AND 02:26:12.997 --> 02:26:14.232 align:middle line:85% position:50% size:63% OUR BUILDERS AND TRIED TO 02:26:14.298 --> 02:26:15.666 align:middle line:85% position:50% size:70% EXPLAIN TO HER, LIKE, WHY IS 02:26:15.733 --> 02:26:17.602 align:middle line:85% position:50% size:75% THIS SO SLOW? WHY IS YOUR, YOU 02:26:17.668 --> 02:26:19.504 align:middle line:85% position:50% size:73% KNOW, WHEN YOU GO TO TURN THE 02:26:19.570 --> 02:26:21.405 align:middle line:85% position:50% size:70% POWER IN A HOME, IT GOES, IT 02:26:21.472 --> 02:26:22.907 align:middle line:85% position:50% size:78% TAKES MONTHS. AND SO PEOPLE SIT 02:26:22.974 --> 02:26:24.575 align:middle line:85% position:50% size:73% IN A HOTEL ROOM UNTIL YOU CAN 02:26:24.642 --> 02:26:26.511 align:middle line:85% position:50% size:73% COME IN. SO THE ON TIME RATIO 02:26:26.577 --> 02:26:27.645 align:middle line:85% position:50% size:73% WHEN WE FIRST STARTED WORKING 02:26:27.712 --> 02:26:29.714 align:middle line:85% position:50% size:73% WITH HER WAS 5%. A MONTH AGO, 02:26:29.780 --> 02:26:32.250 align:middle line:85% position:50% size:75% IT WAS 85%, 85% ON TIME. SO WE 02:26:32.316 --> 02:26:34.318 align:middle line:85% position:50% size:75% HAVE SEEN TREMENDOUS PROGRESS. 02:26:34.385 --> 02:26:35.553 align:middle line:85% position:50% size:68% WHEN WE GOT THE LETTER FROM 02:26:35.620 --> 02:26:37.355 align:middle line:85% position:50% size:68% MISS POPPY AGAIN, WE WE SAW 02:26:37.421 --> 02:26:38.990 align:middle line:85% position:50% size:75% DEJA VU BECAUSE TO HER CREDIT, 02:26:39.056 --> 02:26:40.858 align:middle line:85% position:50% size:68% SHE WENT INTO. SHE WENT AND 02:26:40.925 --> 02:26:41.893 align:middle line:85% position:50% size:60% PULLED MONEY OUT THROUGH 02:26:41.959 --> 02:26:42.727 align:middle line:85% position:50% size:75% INVESTMENT OR. HOWEVER SHE DID 02:26:42.793 --> 02:26:44.395 align:middle line:85% position:50% size:70% IT, PROBABLY MY COLLEAGUE ON 02:26:44.462 --> 02:26:45.663 align:middle line:85% position:50% size:78% THE LEFT DID IT, BUT THEY FOUND 02:26:45.730 --> 02:26:47.999 align:middle line:85% position:50% size:78% ADDITIONAL $410 MILLION TO COME 02:26:48.065 --> 02:26:49.800 align:middle line:85% position:50% size:75% FORWARD AND MAKE SURE THAT THE 02:26:49.867 --> 02:26:51.602 align:middle line:85% position:50% size:65% PROJECTS, THE NEW PROJECTS 02:26:51.669 --> 02:26:53.070 align:middle line:85% position:50% size:75% WOULD ACTUALLY BE TURNED ON IN 02:26:53.137 --> 02:26:54.472 align:middle line:85% position:50% size:70% TIME. THEY DEVELOPED A WHOLE 02:26:54.539 --> 02:26:55.439 align:middle line:85% position:50% size:73% STRUCTURE, WHICH WE SAID THAT 02:26:55.506 --> 02:26:56.674 align:middle line:85% position:50% size:65% WE HAVE MULTIPLE TECHNICAL 02:26:56.741 --> 02:26:57.942 align:middle line:85% position:50% size:75% COMMITTEES. WE'VE HAD, I DON'T 02:26:58.009 --> 02:26:59.177 align:middle line:85% position:50% size:58% KNOW, PROBABLY 50 OR 60 02:26:59.243 --> 02:27:00.278 align:middle line:85% position:50% size:68% MEETINGS OVER THE LAST FOUR 02:27:00.344 --> 02:27:02.446 align:middle line:85% position:50% size:68% YEARS TO CREATE A WHOLE NEW 02:27:02.513 --> 02:27:03.581 align:middle line:85% position:50% size:68% SYSTEM. WE SAW THIS LETTER. 02:27:03.648 --> 02:27:04.582 align:middle line:85% position:50% size:73% WE'RE OBVIOUSLY DISAPPOINTED. 02:27:04.649 --> 02:27:06.117 align:middle line:85% position:50% size:78% FOR US, WE'RE THE TOP PRIORITY. 02:27:06.184 --> 02:27:08.219 align:middle line:85% position:50% size:78% HOUSING IS EVERYTHING. BUT WHEN 02:27:08.286 --> 02:27:08.986 align:middle line:85% position:50% size:78% SOMEBODY SAYS, WELL, WE HAVE TO 02:27:09.053 --> 02:27:11.055 align:middle line:85% position:50% size:78% DEAL WITH COMPLIANCE AND RISKS, 02:27:11.122 --> 02:27:12.256 align:middle line:85% position:50% size:80% ALL THOSE ARE INVESTMENT ISSUES. 02:27:12.323 --> 02:27:13.891 align:middle line:85% position:50% size:55% IF YOU DON'T DEAL WITH 02:27:13.958 --> 02:27:14.725 align:middle line:85% position:50% size:73% COMPLIANCE AND YOU DON'T DEAL 02:27:14.792 --> 02:27:16.427 align:middle line:85% position:50% size:78% WITH SAFETY, IF THINGS START TO 02:27:16.494 --> 02:27:17.895 align:middle line:85% position:50% size:70% BURN DOWN, THEN THEIR CREDIT 02:27:17.962 --> 02:27:19.730 align:middle line:85% position:50% size:73% RATING IS GONE. SO IT'S LIKE, 02:27:19.797 --> 02:27:20.865 align:middle line:85% position:50% size:75% WE OBVIOUSLY WANT TO BE NUMBER 02:27:20.932 --> 02:27:22.733 align:middle line:85% position:50% size:78% ONE, BUT WE ALSO UNDERSTAND YOU 02:27:22.800 --> 02:27:23.968 align:middle line:85% position:50% size:78% HAVE TO DEAL WITH WHAT YOU HAVE 02:27:24.035 --> 02:27:25.803 align:middle line:85% position:50% size:68% TO DEAL WITH FIRST. SO, YOU 02:27:25.870 --> 02:27:26.871 align:middle line:85% position:50% size:63% KNOW, WHEN WE'VE GOT THIS 02:27:26.938 --> 02:27:28.706 align:middle line:85% position:50% size:70% LETTER, THE NOTES I GOT BACK 02:27:28.773 --> 02:27:29.874 align:middle line:85% position:50% size:73% FROM OUR MEMBERS WAS HELLFIRE 02:27:29.941 --> 02:27:30.875 align:middle line:85% position:50% size:70% AND BRIMSTONE. IT'S LIKE YOU 02:27:30.942 --> 02:27:32.710 align:middle line:85% position:50% size:75% HAVE TO TELL PG THEY'RE CRAZY. 02:27:32.777 --> 02:27:33.945 align:middle line:85% position:50% size:78% THIS IS WRONG. WHEN YOU LOOK AT 02:27:34.011 --> 02:27:35.947 align:middle line:85% position:50% size:70% IT AS A GUY WHO USED TO WORK 02:27:36.013 --> 02:27:37.782 align:middle line:85% position:50% size:63% FOR A GOVERNOR WHO HAD TO 02:27:37.848 --> 02:27:38.849 align:middle line:85% position:50% size:65% OVERSEE THE ENTIRE UTILITY 02:27:38.916 --> 02:27:39.917 align:middle line:85% position:50% size:70% SYSTEM AFTER MR. DAVIS LEFT, 02:27:39.984 --> 02:27:41.686 align:middle line:85% position:50% size:70% THAT WAS MY JOB. YOU REALIZE 02:27:41.752 --> 02:27:42.787 align:middle line:85% position:50% size:73% THAT THERE ARE DECISIONS THAT 02:27:42.853 --> 02:27:43.988 align:middle line:85% position:50% size:70% HAVE TO BE MADE BY UTILITIES 02:27:44.055 --> 02:27:45.723 align:middle line:85% position:50% size:78% BECAUSE OF COMPLIANCE AND OTHER 02:27:45.790 --> 02:27:46.857 align:middle line:85% position:50% size:78% COMPONENTS. OUR GOAL IS TO FIND 02:27:46.924 --> 02:27:48.859 align:middle line:85% position:50% size:78% A WAY FOR MONEY TO COME BACK IN 02:27:48.926 --> 02:27:50.728 align:middle line:85% position:50% size:73% THE SYSTEM, SO THAT WHAT MISS 02:27:50.795 --> 02:27:52.430 align:middle line:85% position:50% size:75% PAPPIN RAISED IS NOT UNCOMMON. 02:27:52.496 --> 02:27:54.298 align:middle line:85% position:50% size:78% AS THIS STARTS TO SLOW DOWN, WE 02:27:54.365 --> 02:27:56.200 align:middle line:85% position:50% size:78% WILL GET MORE AND MORE OF THOSE 02:27:56.267 --> 02:27:57.168 align:middle line:85% position:50% size:70% COMPLAINTS FROM OUR MEMBERS. 02:27:57.235 --> 02:27:59.203 align:middle line:85% position:50% size:78% WE'LL GO TO PG AND WE'LL TRY TO 02:27:59.270 --> 02:28:00.338 align:middle line:85% position:50% size:65% WORK IT OUT. BUT GENERALLY 02:28:00.404 --> 02:28:01.339 align:middle line:85% position:50% size:73% SPEAKING, THEY'LL TRY TO TURN 02:28:01.405 --> 02:28:03.174 align:middle line:85% position:50% size:70% ON THE POWER THINGS THAT ARE 02:28:03.241 --> 02:28:04.208 align:middle line:85% position:50% size:68% COMPLETED, BUT THEY'LL COME 02:28:04.275 --> 02:28:05.443 align:middle line:85% position:50% size:75% BACK TO US AND SAY, JUST DON'T 02:28:05.509 --> 02:28:07.211 align:middle line:85% position:50% size:78% START THOSE PROJECTS. JUST WAIT 02:28:07.278 --> 02:28:08.379 align:middle line:85% position:50% size:68% UNTIL WE GET THIS IN ORDER. 02:28:08.446 --> 02:28:10.214 align:middle line:85% position:50% size:63% WELL, FOR US, THAT CAN BE 02:28:10.281 --> 02:28:11.182 align:middle line:85% position:50% size:75% BANKRUPTCY, ESPECIALLY FOR OUR 02:28:11.249 --> 02:28:13.050 align:middle line:85% position:50% size:78% SMALLER MEMBERS. SO THAT IS THE 02:28:13.117 --> 02:28:14.485 align:middle line:85% position:50% size:78% THAT THAT IS A GIVE AND TAKE IN 02:28:14.552 --> 02:28:16.354 align:middle line:85% position:50% size:73% THIS PROCESS AND WHY WE'RE SO 02:28:16.420 --> 02:28:17.655 align:middle line:85% position:50% size:65% CONCERNED ABOUT IT. AND SO 02:28:17.722 --> 02:28:19.890 align:middle line:85% position:50% size:68% UNTIL THIS ISSUE OF CAPPING 02:28:19.957 --> 02:28:20.992 align:middle line:85% position:50% size:65% EXPOSURE, DEALING WITH THE 02:28:21.058 --> 02:28:22.560 align:middle line:85% position:50% size:78% ISSUES OF MAKING SURE INSURANCE 02:28:22.627 --> 02:28:23.561 align:middle line:85% position:50% size:73% IS STILL AFFORDABLE, WILL YOU 02:28:23.628 --> 02:28:25.630 align:middle line:85% position:50% size:73% GO THROUGH THESE DECISIONS AS 02:28:25.696 --> 02:28:27.064 align:middle line:85% position:50% size:70% LEGISLATORS? I MEAN, THIS IS 02:28:27.131 --> 02:28:28.733 align:middle line:85% position:50% size:75% THIS IS KIND OF THE DÉJA VU WE 02:28:28.799 --> 02:28:29.967 align:middle line:85% position:50% size:73% DON'T WANT TO SEE HAPPEN. AND 02:28:30.034 --> 02:28:31.736 align:middle line:85% position:50% size:75% EVEN THOUGH WE THINK WE'RE THE 02:28:31.802 --> 02:28:32.737 align:middle line:85% position:50% size:60% MOST IMPORTANT THING AND 02:28:32.803 --> 02:28:33.771 align:middle line:85% position:50% size:60% BUILDING HOUSING IS VERY 02:28:33.838 --> 02:28:35.306 align:middle line:85% position:50% size:78% IMPORTANT. BUT ALSO THESE OTHER 02:28:35.373 --> 02:28:36.374 align:middle line:85% position:50% size:65% REQUIREMENTS ARE STATUTORY 02:28:36.440 --> 02:28:37.541 align:middle line:85% position:50% size:78% REQUIRED BY THE PC, REQUIRED BY 02:28:37.608 --> 02:28:39.610 align:middle line:85% position:50% size:73% THE LEGISLATURE, REQUIRED BY. 02:28:39.677 --> 02:28:41.479 align:middle line:85% position:50% size:78% WELL, IF YOU DON'T PROTECT YOUR 02:28:41.545 --> 02:28:43.214 align:middle line:85% position:50% size:73% IF WE HAVE MORE FIRES BECAUSE 02:28:43.281 --> 02:28:44.982 align:middle line:85% position:50% size:78% PG DOESN'T PROTECT THEIR LINES, 02:28:45.049 --> 02:28:46.484 align:middle line:85% position:50% size:73% WE'RE BACK ON THAT ISSUE TOO. 02:28:46.550 --> 02:28:48.152 align:middle line:85% position:50% size:58% SO FOR US, IT HAS TO BE 02:28:48.219 --> 02:28:49.487 align:middle line:85% position:50% size:73% HOLISTIC. IT'S NOT TWO THIRDS 02:28:49.553 --> 02:28:51.322 align:middle line:85% position:50% size:70% OF. THE SOLUTION HAS TO BE A 02:28:51.389 --> 02:28:52.390 align:middle line:85% position:50% size:70% HOLISTIC SOLUTION. OTHERWISE 02:28:52.456 --> 02:28:53.691 align:middle line:85% position:50% size:63% THE NEW CONSTRUCTION, NEW 02:28:53.758 --> 02:28:54.725 align:middle line:85% position:50% size:60% PROJECTS, THE AFFORDABLE 02:28:54.792 --> 02:28:56.260 align:middle line:85% position:50% size:78% HOUSING WILL FALL OUT. THE LAST 02:28:56.327 --> 02:28:58.362 align:middle line:85% position:50% size:75% THING I WOULD SAY IS LIKE WHAT 02:28:58.429 --> 02:28:59.797 align:middle line:85% position:50% size:65% MISS PATMAN SAID ABOUT OUR 02:28:59.864 --> 02:29:01.599 align:middle line:85% position:50% size:70% AFFORDABLE BUILDERS. THE TAX 02:29:01.666 --> 02:29:02.767 align:middle line:85% position:50% size:73% CREDITS ARE ABOUT AN 18 MONTH 02:29:02.833 --> 02:29:04.702 align:middle line:85% position:50% size:78% CYCLE. IF YOU DON'T HIT IT, YOU 02:29:04.769 --> 02:29:05.836 align:middle line:85% position:50% size:65% LOSE IT. BUT IT'S THE SAME 02:29:05.903 --> 02:29:06.937 align:middle line:85% position:50% size:60% THING FOR THE INDIVIDUAL 02:29:07.004 --> 02:29:08.739 align:middle line:85% position:50% size:78% CONSUMER. YOU GO TO WELLS FARGO 02:29:08.806 --> 02:29:10.608 align:middle line:85% position:50% size:75% OR US BANK, ONE OF OUR MEMBERS 02:29:10.675 --> 02:29:12.643 align:middle line:85% position:50% size:78% AS WELL, AND YOU GET A 6090 DAY 02:29:12.710 --> 02:29:13.844 align:middle line:85% position:50% size:73% WINDOW IF PG AND SAYS, HEY, I 02:29:13.911 --> 02:29:15.780 align:middle line:85% position:50% size:73% CAN'T COME IN FOR SIX MONTHS, 02:29:15.846 --> 02:29:17.648 align:middle line:85% position:50% size:78% YOU LOSE YOUR HOME. SO, I MEAN, 02:29:17.715 --> 02:29:18.783 align:middle line:85% position:50% size:68% IT'S THE SAME ISSUE FOR THE 02:29:18.849 --> 02:29:19.784 align:middle line:85% position:50% size:75% INDIVIDUAL CONSUMERS. IT'S FOR 02:29:19.850 --> 02:29:20.918 align:middle line:85% position:50% size:68% THE BROADER SOCIETY OR BIG, 02:29:20.985 --> 02:29:21.952 align:middle line:85% position:50% size:65% LARGE, AFFORDABLE PROJECT, 02:29:22.019 --> 02:29:23.888 align:middle line:85% position:50% size:63% MAYBE 80 OR 90 UNITS. BUT 02:29:23.954 --> 02:29:26.791 align:middle line:85% position:50% size:80% THAT'S WHY TIME DELAYS CRUSH US. 02:29:26.857 --> 02:29:28.993 align:middle line:85% position:50% size:78% AND SO FOR US, THE HOPE IS THAT 02:29:29.060 --> 02:29:30.394 align:middle line:85% position:50% size:73% THE LEGISLATURE DOES CREATE A 02:29:30.461 --> 02:29:31.562 align:middle line:85% position:50% size:63% FRAMEWORK UPON WHICH MORE 02:29:31.629 --> 02:29:33.264 align:middle line:85% position:50% size:75% INVESTMENT CAN COME IN SO THAT 02:29:33.331 --> 02:29:35.299 align:middle line:85% position:50% size:73% PG AND E SẼ AND SAN DIEGO GAS 02:29:35.366 --> 02:29:36.434 align:middle line:85% position:50% size:78% ELECTRIC CAN INVEST MORE IN THE 02:29:36.500 --> 02:29:37.601 align:middle line:85% position:50% size:60% NEW PROJECTS, AS WELL AS 02:29:37.668 --> 02:29:39.403 align:middle line:85% position:50% size:78% MAINTAIN COMPLIANCE AND SAFETY, 02:29:39.470 --> 02:29:40.671 align:middle line:85% position:50% size:78% BECAUSE TO US, ALL THOSE THINGS 02:29:40.738 --> 02:29:41.706 align:middle line:85% position:50% size:73% ARE ESSENTIAL BECAUSE IF THEY 02:29:41.772 --> 02:29:43.007 align:middle line:85% position:50% size:68% DON'T MAINTAIN SAFETY, THEY 02:29:43.074 --> 02:29:44.775 align:middle line:85% position:50% size:75% HAVE MORE FIRES. WE'RE BACK TO 02:29:44.842 --> 02:29:46.477 align:middle line:85% position:50% size:73% SQUARE ONE ALL OVER AGAIN. SO 02:29:46.544 --> 02:29:47.745 align:middle line:85% position:50% size:63% IT IS A HOLISTIC SOLUTION 02:29:47.812 --> 02:29:49.113 align:middle line:85% position:50% size:70% THAT'S NEEDED. WE'VE SEEN IT 02:29:49.180 --> 02:29:50.614 align:middle line:85% position:50% size:75% WORK WHEN INVESTMENTS ARE MADE 02:29:50.681 --> 02:29:52.717 align:middle line:85% position:50% size:73% AND OUR IMPROVEMENT TIMES ARE 02:29:52.783 --> 02:29:54.185 align:middle line:85% position:50% size:75% TURNING OUT, OUR POWER IS MUCH 02:29:54.251 --> 02:29:55.686 align:middle line:85% position:50% size:75% QUICKER. AND WE ALSO KNOW THAT 02:29:55.753 --> 02:29:56.854 align:middle line:85% position:50% size:73% WHAT WE'RE SO FEARFUL IS IT'S 02:29:56.921 --> 02:29:58.856 align:middle line:85% position:50% size:78% GOING TO GO BACK TO THE THE BAD 02:29:58.923 --> 02:30:00.758 align:middle line:85% position:50% size:73% DAYS WHERE WE HAVE TO WAIT SO 02:30:00.825 --> 02:30:02.693 align:middle line:85% position:50% size:75% LONG. AND THAT IS JUST BAD FOR 02:30:02.760 --> 02:30:04.195 align:middle line:85% position:50% size:75% EVERYBODY. YEAH, IT IS BAD FOR 02:30:04.261 --> 02:30:09.300 align:middle line:85% position:50% size:78% EVERYBODY AND GOOD TO THE CHAIR 02:30:09.367 --> 02:30:11.802 align:middle line:85% position:50% size:73% I JUST TO LET MY KIDS BE COOL 02:30:11.869 --> 02:30:14.672 align:middle line:85% position:50% size:78% TOO. WE WE HAVE A HIGH PRIORITY 02:30:14.739 --> 02:30:16.774 align:middle line:85% position:50% size:70% TO, TO GET INTERCONNECTED AS 02:30:16.841 --> 02:30:18.642 align:middle line:85% position:50% size:73% WELL. THERE ARE DEPOSITS THAT 02:30:18.709 --> 02:30:20.811 align:middle line:85% position:50% size:78% ARE PUT IN BY MEMBER COMPANIES. 02:30:20.878 --> 02:30:22.213 align:middle line:85% position:50% size:68% I DON'T KNOW THAT IT COVERS 02:30:22.279 --> 02:30:23.748 align:middle line:85% position:50% size:78% EVERYTHING THAT'S OUT THERE. PG 02:30:23.814 --> 02:30:25.449 align:middle line:85% position:50% size:75% AND E HAS TO DO THE WORK. THEY 02:30:25.516 --> 02:30:27.351 align:middle line:85% position:50% size:80% HAVE THEIR TEAMS TO DO THE WORK, 02:30:27.418 --> 02:30:28.686 align:middle line:85% position:50% size:70% WHATEVER ELSE. IT'S IT'S ALL 02:30:28.753 --> 02:30:30.121 align:middle line:85% position:50% size:45% DEPENDENT ON THAT. 02:30:30.187 --> 02:30:31.222 align:middle line:85% position:50% size:68% CONTRACTUALLY, THERE MAY BE 02:30:31.288 --> 02:30:31.922 align:middle line:85% position:50% size:60% DIFFERENCES AS WELL. AND 02:30:31.989 --> 02:30:33.691 align:middle line:85% position:50% size:75% THERE'S 68 DIFFERENT PROJECTS. 02:30:33.758 --> 02:30:34.892 align:middle line:85% position:50% size:63% SO I DON'T WANT TO GO ANY 02:30:34.959 --> 02:30:36.694 align:middle line:85% position:50% size:70% FURTHER THAN THAT. SO THERE, 02:30:36.761 --> 02:30:38.763 align:middle line:85% position:50% size:78% THERE ARE, YOU KNOW, COSTS THAT 02:30:38.829 --> 02:30:41.999 align:middle line:85% position:50% size:70% WILL BE PAID BY THE, BY THE, 02:30:42.066 --> 02:30:44.935 align:middle line:85% position:50% size:73% THE GENERATOR OR THE BATTERY. 02:30:45.002 --> 02:30:47.004 align:middle line:85% position:50% size:73% BUT THE POINT IS THEY HAVE TO 02:30:47.071 --> 02:30:48.172 align:middle line:85% position:50% size:75% DO THE WORK. THERE IS MONEY UP 02:30:48.239 --> 02:30:50.107 align:middle line:85% position:50% size:73% FRONT THAT THEY NEED TO SPEND 02:30:50.174 --> 02:30:51.776 align:middle line:85% position:50% size:68% PROBABLY ON THE REST OF THE 02:30:51.842 --> 02:30:52.810 align:middle line:85% position:50% size:58% DISTRIBUTION NETWORK OR 02:30:52.877 --> 02:30:56.113 align:middle line:85% position:50% size:68% WHATEVER THAT MY, MY MEMBER 02:30:56.180 --> 02:30:58.649 align:middle line:85% position:50% size:78% COMPANIES MAY BE DEVELOPING. SO 02:30:58.716 --> 02:31:00.684 align:middle line:85% position:50% size:73% IT'S NOT JUST THAT PLANT, BUT 02:31:00.751 --> 02:31:03.187 align:middle line:85% position:50% size:70% THE LINES THAT FEED INTO IT. 02:31:03.254 --> 02:31:09.727 align:middle line:85% position:50% size:60% AND SO, I MEAN, YOU. YOU 02:31:09.794 --> 02:31:13.297 align:middle line:85% position:50% size:63% MENTIONED MR. DUNMEYER, A 02:31:13.364 --> 02:31:14.365 align:middle line:85% position:50% size:60% NUMBER OF THINGS, RIGHT? 02:31:14.432 --> 02:31:15.566 align:middle line:85% position:50% size:68% AFFORDABLE HOUSING, LIKE WE 02:31:15.633 --> 02:31:17.635 align:middle line:85% position:50% size:68% HAVE AS A LEGISLATURE, HAVE 02:31:17.701 --> 02:31:20.905 align:middle line:85% position:50% size:65% DONE A LOT OF WORK TO MAKE 02:31:20.971 --> 02:31:23.040 align:middle line:85% position:50% size:70% HOUSING STREAMLINED AND MORE 02:31:23.107 --> 02:31:24.442 align:middle line:85% position:50% size:75% AFFORDABLE AND REMOVE RED TAPE 02:31:24.508 --> 02:31:25.910 align:middle line:85% position:50% size:65% AND ALL OF THESE THINGS TO 02:31:25.976 --> 02:31:27.344 align:middle line:85% position:50% size:68% ADDRESS OUR HOUSING CRISIS, 02:31:27.411 --> 02:31:29.146 align:middle line:85% position:50% size:60% RIGHT? SO NOT HOOKING UP 02:31:29.213 --> 02:31:30.281 align:middle line:85% position:50% size:53% HOUSING DEVELOPMENTS, 02:31:30.347 --> 02:31:32.016 align:middle line:85% position:50% size:78% AFFORDABLE HOUSING DEVELOPMENTS 02:31:32.082 --> 02:31:35.653 align:middle line:85% position:50% size:78% IN MY COLLEAGUE'S DISTRICT, FOR 02:31:35.719 --> 02:31:36.754 align:middle line:85% position:50% size:55% EXAMPLE, OR ANY OF OUR 02:31:36.821 --> 02:31:38.556 align:middle line:85% position:50% size:58% DISTRICTS IS INCREDIBLY 02:31:38.622 --> 02:31:40.357 align:middle line:85% position:50% size:78% PROBLEMATIC NOT HOOKING UP. YOU 02:31:40.424 --> 02:31:42.626 align:middle line:85% position:50% size:73% KNOW, THERE'S A HUGE PRIORITY 02:31:42.693 --> 02:31:45.396 align:middle line:85% position:50% size:73% AROUND ENERGIZATION AND BEING 02:31:45.463 --> 02:31:47.164 align:middle line:85% position:50% size:75% ABLE TO MEET THE DEMAND AROUND 02:31:47.231 --> 02:31:49.066 align:middle line:85% position:50% size:75% ELECTRIC VEHICLES, NOT HOOKING 02:31:49.133 --> 02:31:51.836 align:middle line:85% position:50% size:55% UP THOSE IS INCREDIBLY 02:31:51.902 --> 02:31:53.637 align:middle line:85% position:50% size:78% PROBLEMATIC THINGS THAT WE HAVE 02:31:53.704 --> 02:31:55.973 align:middle line:85% position:50% size:78% AS A STATE INVESTED IN CREATING 02:31:56.040 --> 02:31:57.007 align:middle line:85% position:50% size:73% THAT INFRASTRUCTURE. AND THEN 02:31:57.074 --> 02:31:58.509 align:middle line:85% position:50% size:68% THEY CANNOT BE CREATED, YOU 02:31:58.576 --> 02:32:01.912 align:middle line:85% position:50% size:73% KNOW, CONNECTED. AND IT SEEMS 02:32:01.979 --> 02:32:03.380 align:middle line:85% position:50% size:70% AND CORRECT ME IF I'M WRONG, 02:32:03.447 --> 02:32:07.685 align:middle line:85% position:50% size:78% BUT IT ALSO IT, IT DOESN'T MAKE 02:32:07.751 --> 02:32:11.288 align:middle line:85% position:50% size:75% SENSE TO ME THAT YOU WOULD NOT 02:32:11.355 --> 02:32:13.123 align:middle line:85% position:50% size:80% CONNECT HOUSING WHEN THAT'S NEW, 02:32:13.190 --> 02:32:14.225 align:middle line:85% position:50% size:75% THAT'S NEW RATEPAYERS FOR YOU. 02:32:14.291 --> 02:32:16.393 align:middle line:85% position:50% size:78% THAT'S NEW CUSTOMERS, RIGHT? SO 02:32:16.460 --> 02:32:18.896 align:middle line:85% position:50% size:78% THAT'S MONEY THAT'S GOING TO BE 02:32:18.963 --> 02:32:20.998 align:middle line:85% position:50% size:75% KEEP FLOWING INTO THE P, G AND 02:32:21.065 --> 02:32:26.770 align:middle line:85% position:50% size:78% E BANK ACCOUNT. AND SO HOW DOES 02:32:26.837 --> 02:32:28.672 align:middle line:85% position:50% size:70% HOW DOES THAT MATH WORK WHEN 02:32:28.739 --> 02:32:30.841 align:middle line:85% position:50% size:75% YOU'RE DECIDING NOT TO CONNECT 02:32:30.908 --> 02:32:34.778 align:middle line:85% position:50% size:75% A NEW CUSTOMERS AND, YOU KNOW, 02:32:34.845 --> 02:32:36.847 align:middle line:85% position:50% size:75% AND HOW ARE THE DECISIONS MADE 02:32:36.914 --> 02:32:39.350 align:middle line:85% position:50% size:60% ABOUT WHAT IS NOT FUNDED 02:32:39.416 --> 02:32:41.018 align:middle line:85% position:50% size:78% BECAUSE, OR WHAT, WHAT PROJECTS 02:32:41.085 --> 02:32:42.052 align:middle line:85% position:50% size:73% ARE NOT CONNECTED UP? BECAUSE 02:32:42.119 --> 02:32:43.654 align:middle line:85% position:50% size:73% IT SEEMS LIKE IT'S, YOU KNOW, 02:32:43.721 --> 02:32:46.624 align:middle line:85% position:50% size:78% NEW CUSTOMERS, RENEWABLE ENERGY 02:32:46.690 --> 02:32:49.827 align:middle line:85% position:50% size:60% PROJECTS, LARGE CAPACITY 02:32:49.894 --> 02:32:53.430 align:middle line:85% position:50% size:60% PROJECTS, AND THEN OTHER 02:32:53.497 --> 02:32:54.865 align:middle line:85% position:50% size:68% PROJECTS ARE MOVING FORWARD 02:32:54.932 --> 02:32:56.166 align:middle line:85% position:50% size:63% AROUND CAPITAL INVESTMENT 02:32:56.233 --> 02:32:57.201 align:middle line:85% position:50% size:75% PROJECTS WHERE YOU'RE GOING TO 02:32:57.268 --> 02:32:59.904 align:middle line:85% position:50% size:70% MAKE IT A BIG RETURN. RIGHT. 02:32:59.970 --> 02:33:02.673 align:middle line:85% position:50% size:75% AND SO HOW DID YOU DECIDE WHAT 02:33:02.740 --> 02:33:04.174 align:middle line:85% position:50% size:68% WAS GOING TO GO FORWARD AND 02:33:04.241 --> 02:33:07.678 align:middle line:85% position:50% size:68% WHAT WAS NOT? THANK YOU FOR 02:33:07.745 --> 02:33:09.446 align:middle line:85% position:50% size:70% THAT QUESTION. AND I, I JUST 02:33:09.513 --> 02:33:10.648 align:middle line:85% position:50% size:75% WILL START BY SAYING AGAIN, WE 02:33:10.714 --> 02:33:12.483 align:middle line:85% position:50% size:78% WOULD REALLY LIKE TO DO ALL THE 02:33:12.550 --> 02:33:16.720 align:middle line:85% position:50% size:73% WORK. AND WE DIDN'T. I WISH I 02:33:16.787 --> 02:33:18.188 align:middle line:85% position:50% size:70% COULD CONVEY IT MORE, BUT WE 02:33:18.255 --> 02:33:20.157 align:middle line:85% position:50% size:78% REALLY WOULD LOVE TO DO IT ALL. 02:33:20.224 --> 02:33:21.325 align:middle line:85% position:50% size:70% AND WE KNOW THESE ARE REALLY 02:33:21.392 --> 02:33:22.359 align:middle line:85% position:50% size:70% HARD DECISIONS AND HAVE REAL 02:33:22.426 --> 02:33:24.929 align:middle line:85% position:50% size:75% IMPACTS ON ON REAL PEOPLE. BUT 02:33:24.995 --> 02:33:27.464 align:middle line:85% position:50% size:73% I APPRECIATE MR. DỰ COMMENTS. 02:33:27.531 --> 02:33:28.599 align:middle line:85% position:50% size:60% WHEN WE ARE LOOKING AT A 02:33:28.666 --> 02:33:30.401 align:middle line:85% position:50% size:53% PORTFOLIO OF WORK, WE 02:33:30.467 --> 02:33:31.902 align:middle line:85% position:50% size:78% ABSOLUTELY CANNOT COMPROMISE ON 02:33:31.969 --> 02:33:33.003 align:middle line:85% position:50% size:70% SAFETY. WE ARE GOING TO MEET 02:33:33.070 --> 02:33:34.204 align:middle line:85% position:50% size:73% OUR SAFETY COMMITMENTS AND DO 02:33:34.271 --> 02:33:35.973 align:middle line:85% position:50% size:70% THE WORK THAT NEEDS TO DO TO 02:33:36.040 --> 02:33:37.374 align:middle line:85% position:50% size:68% KEEP THINGS SAFE. AND WE'RE 02:33:37.441 --> 02:33:38.976 align:middle line:85% position:50% size:55% ALSO GOING TO FOCUS ON 02:33:39.043 --> 02:33:40.611 align:middle line:85% position:50% size:78% COMPLIANCE AND WHAT IS REQUIRED 02:33:40.678 --> 02:33:42.646 align:middle line:85% position:50% size:78% FROM A COMPLIANCE LEVEL. AND SO 02:33:42.713 --> 02:33:44.448 align:middle line:85% position:50% size:70% IF YOU WORK DOWN SORT OF THE 02:33:44.515 --> 02:33:46.550 align:middle line:85% position:50% size:75% MUST DO'S AND THEN THINK ABOUT 02:33:46.617 --> 02:33:47.985 align:middle line:85% position:50% size:60% OTHER WORK THAT'S IN THE 02:33:48.052 --> 02:33:49.587 align:middle line:85% position:50% size:70% PORTFOLIO AND WHAT, WHILE IT 02:33:49.653 --> 02:33:51.422 align:middle line:85% position:50% size:70% MAY BE HARD, WHAT ARE THINGS 02:33:51.488 --> 02:33:53.390 align:middle line:85% position:50% size:70% THAT CAN BE DEFERRED WITHOUT 02:33:53.457 --> 02:33:55.159 align:middle line:85% position:50% size:70% COMPROMISING SAFETY? THEY'RE 02:33:55.225 --> 02:33:56.627 align:middle line:85% position:50% size:75% HARD CONVERSATIONS INTERNALLY, 02:33:56.694 --> 02:33:58.062 align:middle line:85% position:50% size:65% BUT THAT IS THE WORK WE'RE 02:33:58.128 --> 02:33:59.930 align:middle line:85% position:50% size:68% DOING TO MAKE SURE WE DON'T 02:33:59.997 --> 02:34:00.965 align:middle line:85% position:50% size:78% COMPROMISE THE FIRST TWO GOALS. 02:34:01.031 --> 02:34:03.500 align:middle line:85% position:50% size:70% AND HOPEFULLY, YOU KNOW, THE 02:34:03.567 --> 02:34:05.769 align:middle line:85% position:50% size:75% DEFERRALS CAN TURN INTO ACTION 02:34:05.836 --> 02:34:07.638 align:middle line:85% position:50% size:75% AND WORK OVER TIME. AND WE CAN 02:34:07.705 --> 02:34:08.806 align:middle line:85% position:50% size:63% GET BACK TO SOME OF THESE 02:34:08.872 --> 02:34:09.974 align:middle line:85% position:50% size:78% METRICS THAT WE'VE BEEN TALKING 02:34:10.040 --> 02:34:11.642 align:middle line:85% position:50% size:60% ABOUT IN TERMS OF TIMELY 02:34:11.709 --> 02:34:12.676 align:middle line:85% position:50% size:68% CONNECTIONS AND MEETING THE 02:34:12.743 --> 02:34:13.944 align:middle line:85% position:50% size:58% NEEDS OF, OF ALL OF OUR 02:34:14.011 --> 02:34:15.679 align:middle line:85% position:50% size:75% CUSTOMERS. AND IT'S AND YOU'RE 02:34:15.746 --> 02:34:17.915 align:middle line:85% position:50% size:68% NOT ABLE TO DO THIS BECAUSE 02:34:17.982 --> 02:34:19.316 align:middle line:85% position:50% size:78% YOU'RE SAYING BECAUSE BORROWING 02:34:19.383 --> 02:34:20.851 align:middle line:85% position:50% size:73% COSTS HAVE INCREASED, BECAUSE 02:34:20.918 --> 02:34:25.122 align:middle line:85% position:50% size:78% YOU CAN'T FINANCE THE WORK. AND 02:34:25.189 --> 02:34:26.557 align:middle line:85% position:50% size:78% IS THERE ANY WAY ARE YOU HAVING 02:34:26.624 --> 02:34:28.759 align:middle line:85% position:50% size:78% TO DEMONSTRATE THAT TO THE CPUC 02:34:28.826 --> 02:34:30.127 align:middle line:85% position:50% size:65% OR IS THERE ANY WAY YOU'RE 02:34:30.194 --> 02:34:33.731 align:middle line:85% position:50% size:73% BEING TRANSPARENT IN IN THAT? 02:34:33.797 --> 02:34:35.933 align:middle line:85% position:50% size:70% SO FIRST, YES, YOU KNOW, THE 02:34:36.000 --> 02:34:38.702 align:middle line:85% position:50% size:70% THE IMPETUS FOR HAVING TO DO 02:34:38.769 --> 02:34:41.772 align:middle line:85% position:50% size:75% THIS IS OUR THE COSTS ARE JUST 02:34:41.839 --> 02:34:43.674 align:middle line:85% position:50% size:78% TOO HIGH TO DO THIS QUANTITY OF 02:34:43.741 --> 02:34:44.875 align:middle line:85% position:50% size:65% WORK FOR CUSTOMERS AT THIS 02:34:44.942 --> 02:34:46.710 align:middle line:85% position:50% size:70% LEVEL. AND THERE ARE ALSO WE 02:34:46.777 --> 02:34:48.412 align:middle line:85% position:50% size:70% HAVE CONCERNS JUST GIVEN THE 02:34:48.479 --> 02:34:50.648 align:middle line:85% position:50% size:65% RISK PROFILE RIGHT NOW AND 02:34:50.714 --> 02:34:52.483 align:middle line:85% position:50% size:75% UNCERTAINTY ON WHETHER SOME OF 02:34:52.549 --> 02:34:53.550 align:middle line:85% position:50% size:73% THESE FUNDAMENTAL ISSUES WILL 02:34:53.617 --> 02:34:56.420 align:middle line:85% position:50% size:63% BE ADDRESSED IN THE. JUST 02:34:56.487 --> 02:34:58.589 align:middle line:85% position:50% size:63% CONTINUING TO RELY ON THE 02:34:58.656 --> 02:34:59.990 align:middle line:85% position:50% size:75% CAPITAL MARKETS AT THIS LEVEL. 02:35:00.057 --> 02:35:01.458 align:middle line:85% position:50% size:70% WE'VE HEARD FROM SOME OF THE 02:35:01.525 --> 02:35:03.127 align:middle line:85% position:50% size:70% OTHER PANELISTS THAT AT SOME 02:35:03.193 --> 02:35:04.328 align:middle line:85% position:50% size:75% POINT, ACTUALLY EVEN ACCESSING 02:35:04.395 --> 02:35:05.796 align:middle line:85% position:50% size:70% CAPITAL CAN BE A CONSTRAINT. 02:35:05.863 --> 02:35:08.966 align:middle line:85% position:50% size:70% AND SO THOSE ARE THE SORT OF 02:35:09.033 --> 02:35:11.201 align:middle line:85% position:50% size:78% REASONS WE'VE SORT OF COME HERE 02:35:11.268 --> 02:35:13.303 align:middle line:85% position:50% size:73% IN TERMS OF VISIBILITY TO THE 02:35:13.370 --> 02:35:16.573 align:middle line:85% position:50% size:70% CPUC. WE DO HAVE A NUMBER OF 02:35:16.640 --> 02:35:18.008 align:middle line:85% position:50% size:73% EXISTING REPORTING MECHANISMS 02:35:18.075 --> 02:35:20.878 align:middle line:85% position:50% size:70% WHERE WE WILL BE SHOWING OUR 02:35:20.944 --> 02:35:23.447 align:middle line:85% position:50% size:73% REGULATOR THE IMPLICATIONS OF 02:35:23.514 --> 02:35:26.316 align:middle line:85% position:50% size:73% OF OUR WORK IN. 27 GENERALLY, 02:35:26.383 --> 02:35:28.085 align:middle line:85% position:50% size:75% INCLUDING IMPLICATIONS OF THIS 02:35:28.152 --> 02:35:30.054 align:middle line:85% position:50% size:75% DEFERRAL. I CAN JUST MENTION A 02:35:30.120 --> 02:35:32.856 align:middle line:85% position:50% size:78% FEW OF THEM HERE. FIRST IS THAT 02:35:32.923 --> 02:35:35.693 align:middle line:85% position:50% size:78% WE HAVE AN ANNUAL RISK SPENDING 02:35:35.759 --> 02:35:37.895 align:middle line:85% position:50% size:78% ACCOUNTABILITY REPORT, WHERE WE 02:35:37.961 --> 02:35:39.663 align:middle line:85% position:50% size:73% GO TO THE COMMISSION AND SHOW 02:35:39.730 --> 02:35:41.765 align:middle line:85% position:50% size:78% WHAT AUTHORIZED GRC WORK WAS IN 02:35:41.832 --> 02:35:43.434 align:middle line:85% position:50% size:73% THE PRIOR YEAR, AND THEN WHAT 02:35:43.500 --> 02:35:45.736 align:middle line:85% position:50% size:73% WE ACTUALLY SPENT. AND SO OUR 02:35:45.803 --> 02:35:48.605 align:middle line:85% position:50% size:78% 27 WORK WILL BE SHARED WITH THE 02:35:48.672 --> 02:35:50.441 align:middle line:85% position:50% size:73% COMMISSION IN 2028 UNDER THAT 02:35:50.507 --> 02:35:53.010 align:middle line:85% position:50% size:73% EXISTING PROCESS. AND THEN WE 02:35:53.077 --> 02:35:54.078 align:middle line:85% position:50% size:55% HAVE A NUMBER OF OTHER 02:35:54.144 --> 02:35:55.779 align:middle line:85% position:50% size:70% REPORTING MECHANISMS WE USE, 02:35:55.846 --> 02:35:57.247 align:middle line:85% position:50% size:75% ESPECIALLY ON THE SAFETY SIDE, 02:35:57.314 --> 02:35:58.716 align:middle line:85% position:50% size:60% BOTH AROUND OUR WILDFIRE 02:35:58.782 --> 02:36:00.918 align:middle line:85% position:50% size:78% MITIGATION PLAN COMPLIANCE, AND 02:36:00.984 --> 02:36:03.420 align:middle line:85% position:50% size:78% THEN OUR SAFETY AND OPERATIONAL 02:36:03.487 --> 02:36:05.189 align:middle line:85% position:50% size:75% METRICS OR REPORTING, WHICH IS 02:36:05.255 --> 02:36:06.590 align:middle line:85% position:50% size:70% DONE AT THE END OF MARCH AND 02:36:06.657 --> 02:36:07.791 align:middle line:85% position:50% size:70% END OF SEPTEMBER EVERY YEAR. 02:36:07.858 --> 02:36:10.961 align:middle line:85% position:50% size:73% AND SO WE WILL CONTINUE TO BE 02:36:11.028 --> 02:36:13.097 align:middle line:85% position:50% size:68% TRANSPARENT ABOUT HOW THOSE 02:36:13.163 --> 02:36:15.966 align:middle line:85% position:50% size:78% METRICS ARE PERFORMING AND KEEP 02:36:16.033 --> 02:36:17.401 align:middle line:85% position:50% size:75% SAFETY AS OUR GUIDING LIGHT IN 02:36:17.468 --> 02:36:18.202 align:middle line:85% position:50% size:63% APPROACHING SOME OF THESE 02:36:18.268 --> 02:36:21.338 align:middle line:85% position:50% size:70% DIFFICULT DECISIONS. AND CAN 02:36:21.405 --> 02:36:23.941 align:middle line:85% position:50% size:68% YOU TALK A LITTLE BIT ABOUT 02:36:24.007 --> 02:36:26.043 align:middle line:85% position:50% size:70% YOUR OBLIGATION TO SERVE AND 02:36:26.110 --> 02:36:28.312 align:middle line:85% position:50% size:73% HOW THAT'S IMPACTED BY MAKING 02:36:28.378 --> 02:36:30.748 align:middle line:85% position:50% size:78% THE DECISIONS NOT TO SERVE SOME 02:36:30.814 --> 02:36:37.654 align:middle line:85% position:50% size:78% PEOPLE? I I'M NOT A LAWYER, BUT 02:36:37.721 --> 02:36:39.323 align:middle line:85% position:50% size:65% AT ITS CORE, OBLIGATION TO 02:36:39.389 --> 02:36:41.592 align:middle line:85% position:50% size:78% SERVE IS ABOUT MAKING SURE THAT 02:36:41.658 --> 02:36:44.061 align:middle line:85% position:50% size:75% WE ARE THERE TO SAFELY PROVIDE 02:36:44.128 --> 02:36:47.264 align:middle line:85% position:50% size:55% RELIABLE POWER FOR OUR 02:36:47.331 --> 02:36:49.233 align:middle line:85% position:50% size:78% CUSTOMERS IN THE STATE. THERE'S 02:36:49.299 --> 02:36:51.068 align:middle line:85% position:50% size:60% A LOT OF WORK WE DO THAT 02:36:51.135 --> 02:36:53.036 align:middle line:85% position:50% size:70% DOESN'T FALL IN THAT SORT OF 02:36:53.103 --> 02:36:55.205 align:middle line:85% position:50% size:73% SOMEWHAT NARROW OBLIGATION OF 02:36:55.272 --> 02:36:57.374 align:middle line:85% position:50% size:70% THE UTILITIES EXISTENCE, AND 02:36:57.441 --> 02:36:59.576 align:middle line:85% position:50% size:73% THAT CAN INCLUDE ENABLING THE 02:36:59.643 --> 02:37:00.944 align:middle line:85% position:50% size:75% STATE'S DECARBONIZATION GOALS, 02:37:01.011 --> 02:37:03.514 align:middle line:85% position:50% size:80% WHICH WE ARE SO DELIGHTED TO DO. 02:37:03.580 --> 02:37:05.649 align:middle line:85% position:50% size:65% BUT THAT IS AN AREA WHERE, 02:37:05.716 --> 02:37:07.151 align:middle line:85% position:50% size:73% WHILE PAINFUL, IF IT NEEDS TO 02:37:07.217 --> 02:37:08.152 align:middle line:85% position:50% size:63% STRETCH OUT OVER A LONGER 02:37:08.218 --> 02:37:09.686 align:middle line:85% position:50% size:65% PERIOD OF TIME, THAT'S NOT 02:37:09.753 --> 02:37:11.088 align:middle line:85% position:50% size:58% GOING TO COMPROMISE THE 02:37:11.155 --> 02:37:12.523 align:middle line:85% position:50% size:68% OBLIGATION TO SERVE IN CORE 02:37:12.589 --> 02:37:13.624 align:middle line:85% position:50% size:78% DELIVERY, TO MAKE SURE THAT OUR 02:37:13.690 --> 02:37:15.092 align:middle line:85% position:50% size:68% CUSTOMERS ARE SAFE AND THAT 02:37:15.159 --> 02:37:16.460 align:middle line:85% position:50% size:78% THEIR LIGHTS ARE ON AND THE GAS 02:37:16.527 --> 02:37:21.632 align:middle line:85% position:50% size:75% IS FLOWING. AND AGAIN, I THINK 02:37:21.698 --> 02:37:23.300 align:middle line:85% position:50% size:68% IT COMES BACK TO JUST THESE 02:37:23.367 --> 02:37:24.501 align:middle line:85% position:50% size:78% DIFFICULT DECISIONS, BUT TRYING 02:37:24.568 --> 02:37:26.236 align:middle line:85% position:50% size:78% TO ENSURE THAT GUIDING LIGHT OF 02:37:26.303 --> 02:37:27.437 align:middle line:85% position:50% size:78% MAKING SURE OUR CORE OPERATIONS 02:37:27.504 --> 02:37:29.406 align:middle line:85% position:50% size:78% ARE CONTINUING. BUT THEN WE ARE 02:37:29.473 --> 02:37:30.874 align:middle line:85% position:50% size:63% THINKING WITH THINGS LIKE 02:37:30.941 --> 02:37:32.309 align:middle line:85% position:50% size:75% AFFORDABILITY IN MIND, WHAT IS 02:37:32.376 --> 02:37:34.077 align:middle line:85% position:50% size:75% THE RIGHT WAY TO APPROACH THIS 02:37:34.144 --> 02:37:35.913 align:middle line:85% position:50% size:73% WORK, GIVEN THE STATUS QUO IN 02:37:35.979 --> 02:37:39.383 align:middle line:85% position:50% size:78% CALIFORNIA TODAY? AND I MEAN, I 02:37:39.449 --> 02:37:40.918 align:middle line:85% position:50% size:75% STILL IT STILL DOES NOT SQUARE 02:37:40.984 --> 02:37:44.855 align:middle line:85% position:50% size:75% WITH ME. IF, YOU KNOW, I KNOW, 02:37:44.922 --> 02:37:48.158 align:middle line:85% position:50% size:73% YOU KNOW, BATTERY STORAGE, EV 02:37:48.225 --> 02:37:49.459 align:middle line:85% position:50% size:78% CHARGERS, HOUSING DEVELOPMENTS, 02:37:49.526 --> 02:37:51.762 align:middle line:85% position:50% size:78% LIKE THEY ARE ALL PAYING YOU TO 02:37:51.829 --> 02:37:56.233 align:middle line:85% position:50% size:78% HOOK THEM UP. AND SO IF THEY'RE 02:37:56.300 --> 02:37:57.668 align:middle line:85% position:50% size:65% PAYING YOU FOR THE COST OF 02:37:57.734 --> 02:37:58.869 align:middle line:85% position:50% size:78% DOING IT, BUT YOU'RE SAYING YOU 02:37:58.936 --> 02:38:02.873 align:middle line:85% position:50% size:70% CAN'T AFFORD TO DO IT. MAYBE 02:38:02.940 --> 02:38:07.578 align:middle line:85% position:50% size:75% I'LL. TRY TO DESCRIBE, I THINK 02:38:07.644 --> 02:38:08.712 align:middle line:85% position:50% size:73% EXECUTIVE DIRECTOR TESFAI AND 02:38:08.779 --> 02:38:11.215 align:middle line:85% position:50% size:55% HER MATERIALS HAD SOME 02:38:11.281 --> 02:38:13.283 align:middle line:85% position:50% size:78% ILLUSTRATIONS, BUT TO TAKE NEXT 02:38:13.350 --> 02:38:14.785 align:middle line:85% position:50% size:73% YEAR AS AN EXAMPLE. SO WE ARE 02:38:14.852 --> 02:38:17.654 align:middle line:85% position:50% size:70% GOING TO DO $11.4 BILLION OF 02:38:17.721 --> 02:38:19.089 align:middle line:85% position:50% size:65% CAPITAL INVESTMENTS IN OUR 02:38:19.156 --> 02:38:22.726 align:middle line:85% position:50% size:70% SERVICE TERRITORY. CUSTOMERS 02:38:22.793 --> 02:38:24.862 align:middle line:85% position:50% size:70% WON'T PAY $11.4 BILLION NEXT 02:38:24.928 --> 02:38:26.296 align:middle line:85% position:50% size:65% YEAR, SO THEY WILL GET THE 02:38:26.363 --> 02:38:28.165 align:middle line:85% position:50% size:70% BENEFIT OF THOSE ASSETS, BUT 02:38:28.232 --> 02:38:29.666 align:middle line:85% position:50% size:73% THEY WILL GET TO PAY FOR THEM 02:38:29.733 --> 02:38:30.868 align:middle line:85% position:50% size:73% OVER THE DECADES THAT THEY'RE 02:38:30.934 --> 02:38:32.502 align:middle line:85% position:50% size:60% IN SERVICE. IT'S A GREAT 02:38:32.569 --> 02:38:35.639 align:middle line:85% position:50% size:75% CUSTOMER BENEFIT TO BE ABLE TO 02:38:35.706 --> 02:38:37.274 align:middle line:85% position:50% size:75% GET THE INVESTMENT BUT NOT PAY 02:38:37.341 --> 02:38:39.610 align:middle line:85% position:50% size:73% FOR IT UPFRONT. THE CHALLENGE 02:38:39.676 --> 02:38:41.011 align:middle line:85% position:50% size:68% IS ACTUALLY FOR FOR SOMEONE 02:38:41.078 --> 02:38:42.813 align:middle line:85% position:50% size:60% LIKE ME AS THE CORPORATE 02:38:42.880 --> 02:38:44.748 align:middle line:85% position:50% size:60% TREASURER, BECAUSE $11.4 02:38:44.815 --> 02:38:46.116 align:middle line:85% position:50% size:68% BILLION IS LEAVING OUR BANK 02:38:46.183 --> 02:38:47.251 align:middle line:85% position:50% size:65% ACCOUNTS NEXT YEAR, WE ARE 02:38:47.317 --> 02:38:48.819 align:middle line:85% position:50% size:65% GOING TO BUY THE EQUIPMENT 02:38:48.886 --> 02:38:49.987 align:middle line:85% position:50% size:75% THAT'S NEEDED. WE ARE GOING TO 02:38:50.053 --> 02:38:51.822 align:middle line:85% position:50% size:70% PAY THE PEOPLE WHO ARE DOING 02:38:51.889 --> 02:38:55.125 align:middle line:85% position:50% size:78% THE WORK. AND SO THERE IS A BIG 02:38:55.192 --> 02:38:58.695 align:middle line:85% position:50% size:78% GAP IN $11.4 BILLION GOING OUT. 02:38:58.762 --> 02:38:59.796 align:middle line:85% position:50% size:73% AND WHAT WE'RE ACTUALLY GOING 02:38:59.863 --> 02:39:01.565 align:middle line:85% position:50% size:60% TO COLLECT IN RATES, THE 02:39:01.632 --> 02:39:03.000 align:middle line:85% position:50% size:78% FINANCIAL TERM FOR THAT IS FREE 02:39:03.066 --> 02:39:04.801 align:middle line:85% position:50% size:68% CASH FLOW NEGATIVE. IT JUST 02:39:04.868 --> 02:39:08.372 align:middle line:85% position:50% size:68% MEANS. AS A STARTING POINT, 02:39:08.438 --> 02:39:09.506 align:middle line:85% position:50% size:70% YOU'RE GOING TO END THE YEAR 02:39:09.573 --> 02:39:10.607 align:middle line:85% position:50% size:60% WITH LESS MONEY THAN YOU 02:39:10.674 --> 02:39:14.144 align:middle line:85% position:50% size:75% STARTED. THE WAY WE SOLVE THAT 02:39:14.211 --> 02:39:15.846 align:middle line:85% position:50% size:75% AND SORT OF SQUARE THAT CIRCLE 02:39:15.913 --> 02:39:17.180 align:middle line:85% position:50% size:75% IS THROUGH THE CAPITAL MARKETS 02:39:17.247 --> 02:39:19.149 align:middle line:85% position:50% size:68% THAT WE GO OUT AND WE RAISE 02:39:19.216 --> 02:39:20.284 align:middle line:85% position:50% size:60% BILLIONS OF DOLLARS FROM 02:39:20.350 --> 02:39:21.752 align:middle line:85% position:50% size:73% INVESTORS TO SAY, PLEASE COME 02:39:21.818 --> 02:39:22.786 align:middle line:85% position:50% size:65% INVEST IN CALIFORNIA, COME 02:39:22.853 --> 02:39:24.955 align:middle line:85% position:50% size:75% INVEST IN THESE ASSETS. AND WE 02:39:25.022 --> 02:39:26.823 align:middle line:85% position:50% size:73% ARE COMPETING CONSTANTLY WITH 02:39:26.890 --> 02:39:28.625 align:middle line:85% position:50% size:78% OTHER STATES TO SAY, COME HERE, 02:39:28.692 --> 02:39:29.960 align:middle line:85% position:50% size:65% GIVE US YOUR CAPITAL, HELP 02:39:30.027 --> 02:39:34.665 align:middle line:85% position:50% size:80% SOLVE THIS INVESTMENT HOLE. AND. 02:39:34.731 --> 02:39:35.866 align:middle line:85% position:50% size:70% THAT'S, I THINK, THE CORE OF 02:39:35.933 --> 02:39:36.967 align:middle line:85% position:50% size:60% SOME OF THE ISSUES WE'RE 02:39:37.034 --> 02:39:38.735 align:middle line:85% position:50% size:75% TALKING ABOUT HERE TODAY IS IF 02:39:38.802 --> 02:39:39.803 align:middle line:85% position:50% size:70% INVESTORS DON'T WANT TO COME 02:39:39.870 --> 02:39:41.705 align:middle line:85% position:50% size:73% BECAUSE THEY DON'T VIEW IT AS 02:39:41.772 --> 02:39:42.806 align:middle line:85% position:50% size:75% AN ATTRACTIVE PROFILE RELATIVE 02:39:42.873 --> 02:39:43.840 align:middle line:85% position:50% size:63% TO THE RISK THEY WOULD BE 02:39:43.907 --> 02:39:45.509 align:middle line:85% position:50% size:65% TAKING ON, THAT'S GOING TO 02:39:45.575 --> 02:39:46.810 align:middle line:85% position:50% size:65% IMPEDE OUR ABILITY TO HAVE 02:39:46.877 --> 02:39:48.345 align:middle line:85% position:50% size:70% ENOUGH MONEY TO DO DO WHAT'S 02:39:48.412 --> 02:39:52.015 align:middle line:85% position:50% size:75% NEEDED TO BE DONE. YEAH. AND I 02:39:52.082 --> 02:39:55.552 align:middle line:85% position:50% size:75% GUESS MY FINAL COMMENT IS JUST 02:39:55.619 --> 02:39:57.754 align:middle line:85% position:50% size:78% THE CHALLENGE WITH THAT, RIGHT? 02:39:57.821 --> 02:39:59.156 align:middle line:85% position:50% size:58% THE CHALLENGE WITH THIS 02:39:59.222 --> 02:40:02.859 align:middle line:85% position:50% size:75% SCENARIO IS THAT. WHAT IS GOOD 02:40:02.926 --> 02:40:04.594 align:middle line:85% position:50% size:50% FOR INVESTORS IS NOT 02:40:04.661 --> 02:40:07.464 align:middle line:85% position:50% size:75% NECESSARILY GOOD FOR CUSTOMERS 02:40:07.531 --> 02:40:11.068 align:middle line:85% position:50% size:73% IN SOME INSTANCES, RIGHT. OR, 02:40:11.134 --> 02:40:13.570 align:middle line:85% position:50% size:73% YOU KNOW, OR FOR CALIFORNIANS 02:40:13.637 --> 02:40:17.507 align:middle line:85% position:50% size:70% BECAUSE. OBVIOUSLY, ALL, YOU 02:40:17.574 --> 02:40:18.742 align:middle line:85% position:50% size:68% KNOW, LEAVING ASIDE ALL THE 02:40:18.809 --> 02:40:19.843 align:middle line:85% position:50% size:63% THINGS THAT ARE NOT BEING 02:40:19.910 --> 02:40:22.546 align:middle line:85% position:50% size:65% HOOKED UP, THE HOUSING AND 02:40:22.612 --> 02:40:24.047 align:middle line:85% position:50% size:78% ENERGIZATION AND, YOU KNOW, ALL 02:40:24.114 --> 02:40:29.519 align:middle line:85% position:50% size:75% THE PROJECTS, BUT. BUT THERE'S 02:40:29.586 --> 02:40:33.724 align:middle line:85% position:50% size:55% THIS CONFLICT THAT THE 02:40:33.790 --> 02:40:35.525 align:middle line:85% position:50% size:68% UTILITIES, YOU KNOW, HAVE A 02:40:35.592 --> 02:40:38.061 align:middle line:85% position:50% size:75% HUGE INCENTIVE TO MAKE AS MUCH 02:40:38.128 --> 02:40:40.197 align:middle line:85% position:50% size:70% OF THE PROFIT THAT THEY CAN, 02:40:40.263 --> 02:40:41.698 align:middle line:85% position:50% size:73% OPPORTUNITIES FOR PROFIT THAT 02:40:41.765 --> 02:40:44.935 align:middle line:85% position:50% size:68% THEY CAN. AND IT HELPS WITH 02:40:45.002 --> 02:40:47.437 align:middle line:85% position:50% size:68% YOUR ENERGY RATING OR YOUR, 02:40:47.504 --> 02:40:52.876 align:middle line:85% position:50% size:78% YOUR. YOUR BOND RATING OR YOUR, 02:40:52.943 --> 02:40:53.977 align:middle line:85% position:50% size:80% WHAT'S IT CALLED? CREDIT RATING. 02:40:54.044 --> 02:40:55.345 align:middle line:85% position:50% size:78% CREDIT RATING. THANK YOU. OH MY 02:40:55.412 --> 02:40:57.514 align:middle line:85% position:50% size:78% GOD, THE WHOLE POINT OF TODAY'S 02:40:57.581 --> 02:41:00.384 align:middle line:85% position:50% size:60% CONVERSATION AND ALL THE 02:41:00.450 --> 02:41:03.954 align:middle line:85% position:50% size:75% RATINGS AND BUT, YOU KNOW, BUT 02:41:04.021 --> 02:41:07.190 align:middle line:85% position:50% size:70% AT THE SAME TIME, THAT'S NOT 02:41:07.257 --> 02:41:09.760 align:middle line:85% position:50% size:63% LIKE THAT MEANS THAT IT'S 02:41:09.826 --> 02:41:11.561 align:middle line:85% position:50% size:68% COSTING PEOPLE MORE, RIGHT? 02:41:11.628 --> 02:41:13.764 align:middle line:85% position:50% size:78% THAT MEANS THAT THE BILLS GO UP 02:41:13.830 --> 02:41:15.899 align:middle line:85% position:50% size:68% HIGHER. THAT MEANS THAT THE 02:41:15.966 --> 02:41:17.300 align:middle line:85% position:50% size:75% RATEPAYERS ARE PAYING MORE. SO 02:41:17.367 --> 02:41:19.102 align:middle line:85% position:50% size:78% WHILE WE'RE TALKING ABOUT SOLAR 02:41:19.169 --> 02:41:24.141 align:middle line:85% position:50% size:73% GOING DOWN TO $0.03. IT'S AND 02:41:24.207 --> 02:41:25.575 align:middle line:85% position:50% size:78% BUT THEIR BILLS ARE STILL GOING 02:41:25.642 --> 02:41:28.078 align:middle line:85% position:50% size:80% UP FASTER THAN INFLATION. RIGHT. 02:41:28.145 --> 02:41:30.981 align:middle line:85% position:50% size:75% AND SO THERE'S A REAL CONFLICT 02:41:31.048 --> 02:41:34.217 align:middle line:85% position:50% size:73% HERE THAT, YOU KNOW, THAT OUR 02:41:34.284 --> 02:41:36.386 align:middle line:85% position:50% size:70% CHAIR IS GOING TO LEAD US TO 02:41:36.453 --> 02:41:38.155 align:middle line:85% position:50% size:73% SOLVE VERY ELOQUENTLY, AS SHE 02:41:38.221 --> 02:41:42.492 align:middle line:85% position:50% size:60% ALWAYS DOES. BUT IT'S IT 02:41:42.559 --> 02:41:45.028 align:middle line:85% position:50% size:70% CREATES SUCH A IT IT JUST IS 02:41:45.095 --> 02:41:46.863 align:middle line:85% position:50% size:73% THIS ONGOING CONFLICT THAT IS 02:41:46.930 --> 02:41:48.098 align:middle line:85% position:50% size:75% REALLY DIFFICULT TO FIGURE OUT 02:41:48.165 --> 02:41:49.599 align:middle line:85% position:50% size:75% THE RIGHT BALANCE TO MAKE SURE 02:41:49.666 --> 02:41:51.001 align:middle line:85% position:50% size:75% THAT PEOPLE WHO ARE STRUGGLING 02:41:51.068 --> 02:41:52.536 align:middle line:85% position:50% size:68% TO PAY THEIR BILLS HAVE THE 02:41:52.602 --> 02:41:54.071 align:middle line:85% position:50% size:75% SUPPORT THAT THEY NEED. AS YOU 02:41:54.137 --> 02:41:56.073 align:middle line:85% position:50% size:60% KNOW, ALL OF THESE OTHER 02:41:56.139 --> 02:41:59.076 align:middle line:85% position:50% size:80% ELEMENTS GET GET SOLVED AS WELL. 02:41:59.142 --> 02:42:01.111 align:middle line:85% position:50% size:75% THANK YOU. AND I ACTUALLY HAVE 02:42:01.178 --> 02:42:02.646 align:middle line:85% position:50% size:65% A FOLLOW UP QUESTION, MISS 02:42:02.712 --> 02:42:04.514 align:middle line:85% position:50% size:68% BECKER. SO AS WE ARE, AS WE 02:42:04.581 --> 02:42:05.882 align:middle line:85% position:50% size:65% SAID, ON THE CUSP OF THESE 02:42:05.949 --> 02:42:07.717 align:middle line:85% position:50% size:78% TRULY GENERATIONAL INVESTMENTS, 02:42:07.784 --> 02:42:09.086 align:middle line:85% position:50% size:70% PARTICULARLY IN TRANSMISSION 02:42:09.152 --> 02:42:13.223 align:middle line:85% position:50% size:68% INFRASTRUCTURE, I THINK YOU 02:42:13.290 --> 02:42:15.959 align:middle line:85% position:50% size:65% SAID IN YOUR OR IN IN MISS 02:42:16.026 --> 02:42:17.828 align:middle line:85% position:50% size:73% PUPPY'S RESPONSE TO MY LETTER 02:42:17.894 --> 02:42:19.162 align:middle line:85% position:50% size:60% ASKING ABOUT SOME OF THE 02:42:19.229 --> 02:42:21.431 align:middle line:85% position:50% size:63% DETAILS OF THE $2 BILLION 02:42:21.498 --> 02:42:22.866 align:middle line:85% position:50% size:78% DEFERRAL, I THINK YOU SAID IT'S 02:42:22.933 --> 02:42:25.001 align:middle line:85% position:50% size:68% ABOUT 65% OF IT IS ACTUALLY 02:42:25.068 --> 02:42:27.170 align:middle line:85% position:50% size:78% TRANSMISSION PROJECTS. CORRECT. 02:42:27.237 --> 02:42:29.673 align:middle line:85% position:50% size:63% GIVEN THIS CHALLENGE WITH 02:42:29.739 --> 02:42:31.475 align:middle line:85% position:50% size:75% INVESTABILITY AND FINANCING OF 02:42:31.541 --> 02:42:33.977 align:middle line:85% position:50% size:78% THESE ENORMOUS PROJECTS AND THE 02:42:34.044 --> 02:42:35.378 align:middle line:85% position:50% size:65% BILLIONS OF DOLLARS THAT'S 02:42:35.445 --> 02:42:37.013 align:middle line:85% position:50% size:68% REQUIRED, DO YOU THINK THAT 02:42:37.080 --> 02:42:39.015 align:middle line:85% position:50% size:78% THAT CREATES A REAL OPPORTUNITY 02:42:39.082 --> 02:42:40.817 align:middle line:85% position:50% size:70% FOR MORE PUBLIC FINANCING OF 02:42:40.884 --> 02:42:42.986 align:middle line:85% position:50% size:78% TRANSMISSION INFRASTRUCTURE? AS 02:42:43.053 --> 02:42:45.188 align:middle line:85% position:50% size:78% YOU MAY KNOW, WE PASSED AS PART 02:42:45.255 --> 02:42:47.324 align:middle line:85% position:50% size:73% OF SB 250. IT WAS INCLUDED IN 02:42:47.390 --> 02:42:50.527 align:middle line:85% position:50% size:55% SB 254. WE CREATED THE 02:42:50.594 --> 02:42:52.729 align:middle line:85% position:50% size:78% TRANSMISSION ACCELERATOR, WHICH 02:42:52.796 --> 02:42:55.932 align:middle line:85% position:50% size:73% CURRENTLY APPLIES JUST TO THE 02:42:55.999 --> 02:42:57.033 align:middle line:85% position:50% size:60% COMPETITIVE TRANSMISSION 02:42:57.100 --> 02:42:59.903 align:middle line:85% position:50% size:73% PROJECTS AT CAISO TO A LITTLE 02:42:59.970 --> 02:43:01.304 align:middle line:85% position:50% size:75% SLICE OF THEM. I THINK THERE'S 02:43:01.371 --> 02:43:02.339 align:middle line:85% position:50% size:68% AN OPPORTUNITY FOR US TO DO 02:43:02.405 --> 02:43:04.174 align:middle line:85% position:50% size:60% MORE. IT STRIKES ME THAT 02:43:04.241 --> 02:43:05.375 align:middle line:85% position:50% size:78% PERHAPS THAT IS PART OF THE WAY 02:43:05.442 --> 02:43:07.277 align:middle line:85% position:50% size:78% THAT WE SQUARE THIS CIRCLE. I'D 02:43:07.344 --> 02:43:11.815 align:middle line:85% position:50% size:75% LOVE YOUR REACTIONS TO THAT. I 02:43:11.882 --> 02:43:13.016 align:middle line:85% position:50% size:65% DON'T I DON'T KNOW ALL THE 02:43:13.083 --> 02:43:15.485 align:middle line:85% position:50% size:73% DETAILS OF THAT PROPOSAL, BUT 02:43:15.552 --> 02:43:16.786 align:middle line:85% position:50% size:68% AS A STARTING POINT, WHAT I 02:43:16.853 --> 02:43:20.023 align:middle line:85% position:50% size:60% WOULD SAY IS WE VIEW THE 02:43:20.090 --> 02:43:22.225 align:middle line:85% position:50% size:75% BIGGEST LEVER ON BEING ABLE TO 02:43:22.292 --> 02:43:24.394 align:middle line:85% position:50% size:60% REDUCE COSTS AND DO THIS 02:43:24.461 --> 02:43:25.795 align:middle line:85% position:50% size:73% TREMENDOUS AMOUNT OF WORK IS, 02:43:25.862 --> 02:43:28.331 align:middle line:85% position:50% size:78% IS THROUGH WILDFIRE REFORM. AND 02:43:28.398 --> 02:43:29.766 align:middle line:85% position:50% size:73% A LOT OF THE CHALLENGES WE'RE 02:43:29.833 --> 02:43:31.568 align:middle line:85% position:50% size:68% TALKING ABOUT TODAY ARE THE 02:43:31.635 --> 02:43:34.137 align:middle line:85% position:50% size:73% ABSENCE OF WILDFIRE REFORM. I 02:43:34.204 --> 02:43:36.306 align:middle line:85% position:50% size:78% DO QUESTION A LITTLE. YOU KNOW, 02:43:36.373 --> 02:43:38.375 align:middle line:85% position:50% size:60% IF THERE ISN'T A DURABLE 02:43:38.441 --> 02:43:39.676 align:middle line:85% position:50% size:65% FRAMEWORK AROUND WILDFIRE, 02:43:39.743 --> 02:43:41.278 align:middle line:85% position:50% size:73% WHETHER A PUBLIC ENTITY WOULD 02:43:41.344 --> 02:43:42.746 align:middle line:85% position:50% size:68% WANT TO BE TAKING THAT RISK 02:43:42.812 --> 02:43:47.751 align:middle line:85% position:50% size:63% EITHER. AND SO IT FEELS A 02:43:47.817 --> 02:43:49.452 align:middle line:85% position:50% size:70% LITTLE ADJACENT, I GUESS, TO 02:43:49.519 --> 02:43:50.754 align:middle line:85% position:50% size:78% THE CRUX OF THE ISSUE, WHICH IS 02:43:50.820 --> 02:43:52.522 align:middle line:85% position:50% size:73% HOW ARE WE ADDRESSING SORT OF 02:43:52.589 --> 02:43:53.924 align:middle line:85% position:50% size:73% THE UNLIMITED EXPOSURE IN THE 02:43:53.990 --> 02:43:56.793 align:middle line:85% position:50% size:70% STATE? BUT MORE GENERALLY, I 02:43:56.860 --> 02:43:57.961 align:middle line:85% position:50% size:70% GUESS WHAT I WOULD SAY IS WE 02:43:58.028 --> 02:43:59.863 align:middle line:85% position:50% size:73% REALLY BELIEVE WE ARE HERE TO 02:43:59.930 --> 02:44:01.865 align:middle line:85% position:50% size:75% DO THE RIGHT WORK AND TO DO IT 02:44:01.932 --> 02:44:03.934 align:middle line:85% position:50% size:75% ON TIME AND TO DO IT AT LOWEST 02:44:04.000 --> 02:44:05.101 align:middle line:85% position:50% size:70% COST IF WE CAN BE INVESTMENT 02:44:05.168 --> 02:44:06.903 align:middle line:85% position:50% size:68% GRADE. AND SO WE WOULD LOVE 02:44:06.970 --> 02:44:10.106 align:middle line:85% position:50% size:78% THAT OPPORTUNITY IF WE'RE ABLE. 02:44:10.173 --> 02:44:11.241 align:middle line:85% position:50% size:68% THANK YOU. ANYONE ELSE HAVE 02:44:11.308 --> 02:44:14.077 align:middle line:85% position:50% size:70% COMMENTS ON THAT, MR. VALERO 02:44:14.144 --> 02:44:15.845 align:middle line:85% position:50% size:75% YEAH, I GUESS I WOULD JUST SAY 02:44:15.912 --> 02:44:17.981 align:middle line:85% position:50% size:73% ONE THING BECAUSE WE PUBLICLY 02:44:18.048 --> 02:44:21.017 align:middle line:85% position:50% size:70% FINANCE TRANSMISSION IN SOME 02:44:21.084 --> 02:44:22.118 align:middle line:85% position:50% size:75% WAYS, IT ALMOST DOESN'T MATTER 02:44:22.185 --> 02:44:23.787 align:middle line:85% position:50% size:73% WHAT BUSINESS MODEL YOU HAVE. 02:44:23.853 --> 02:44:25.922 align:middle line:85% position:50% size:73% IF WE DON'T GET WILDFIRE RISK 02:44:25.989 --> 02:44:27.757 align:middle line:85% position:50% size:75% AND THE LIABILITIES ASSOCIATED 02:44:27.824 --> 02:44:29.526 align:middle line:85% position:50% size:65% WITH WITH IT UNDER CONTROL 02:44:29.593 --> 02:44:31.394 align:middle line:85% position:50% size:68% BECAUSE WE ALREADY PUBLICLY 02:44:31.461 --> 02:44:33.530 align:middle line:85% position:50% size:73% FINANCED TRANSMISSION. AND SO 02:44:33.597 --> 02:44:35.332 align:middle line:85% position:50% size:73% IT ALMOST DOESN'T MATTER. THE 02:44:35.398 --> 02:44:39.603 align:middle line:85% position:50% size:78% BUSINESS MODEL IOUPOU WITH THIS 02:44:39.669 --> 02:44:42.906 align:middle line:85% position:50% size:70% EXISTENTIAL CRISIS. AND YES, 02:44:42.973 --> 02:44:44.341 align:middle line:85% position:50% size:78% UNDERSTOOD. AND I THINK I WOULD 02:44:44.407 --> 02:44:45.942 align:middle line:85% position:50% size:78% NOT I WOULD NOT PROFFER THAT AS 02:44:46.009 --> 02:44:48.578 align:middle line:85% position:50% size:75% AN ALTERNATIVE, MORE OF A YES. 02:44:48.645 --> 02:44:52.249 align:middle line:85% position:50% size:73% AND BECAUSE AGAIN, WHAT WE'RE 02:44:52.315 --> 02:44:54.017 align:middle line:85% position:50% size:78% GIVEN THAT OUR OUR CORE GOAL IS 02:44:54.084 --> 02:44:56.186 align:middle line:85% position:50% size:78% BOTH TO ENSURE THE STABILITY OF 02:44:56.253 --> 02:44:59.489 align:middle line:85% position:50% size:73% BOTH OUR USE AND OUR IOUS, AS 02:44:59.556 --> 02:45:01.191 align:middle line:85% position:50% size:65% WELL AS ENSURE THAT WE CAN 02:45:01.258 --> 02:45:02.525 align:middle line:85% position:50% size:78% DELIVER SERVICE TO CALIFORNIANS 02:45:02.592 --> 02:45:04.761 align:middle line:85% position:50% size:70% AT THE LOWEST POSSIBLE COST. 02:45:04.828 --> 02:45:06.429 align:middle line:85% position:50% size:73% BUT YES, WE'LL WE'LL CONTINUE 02:45:06.496 --> 02:45:08.064 align:middle line:85% position:50% size:70% TO DIG INTO THAT IN SEPARATE 02:45:08.131 --> 02:45:11.301 align:middle line:85% position:50% size:73% HEARINGS. ALL RIGHT. YES. MR. 02:45:11.368 --> 02:45:14.204 align:middle line:85% position:50% size:78% TONY, ONE THING I'D LIKE TO ASK 02:45:14.271 --> 02:45:17.407 align:middle line:85% position:50% size:78% POLICY MAKERS TO THINK ABOUT IS 02:45:17.474 --> 02:45:23.580 align:middle line:85% position:50% size:68% HOW ARE COSTS ALLOCATED? SO 02:45:23.647 --> 02:45:26.383 align:middle line:85% position:50% size:75% RIGHT NOW WE HAVE A RATE PAYER 02:45:26.449 --> 02:45:28.551 align:middle line:85% position:50% size:60% SYSTEM. WHEN WE WHEN THE 02:45:28.618 --> 02:45:30.053 align:middle line:85% position:50% size:63% WILDFIRE COSTS ARE ON THE 02:45:30.120 --> 02:45:32.889 align:middle line:85% position:50% size:65% RATEPAYER BILLS, IT'S VERY 02:45:32.956 --> 02:45:35.058 align:middle line:85% position:50% size:63% REGRESSIVE BECAUSE IT'S A 02:45:35.125 --> 02:45:37.594 align:middle line:85% position:50% size:75% CONSUMPTION TAX. AND THE THING 02:45:37.661 --> 02:45:39.462 align:middle line:85% position:50% size:75% ABOUT CONSUMPTION TAX, THERE'S 02:45:39.529 --> 02:45:42.232 align:middle line:85% position:50% size:75% A REASON WHY GROCERIES HAVE NO 02:45:42.299 --> 02:45:45.302 align:middle line:85% position:50% size:75% SALES TAX. IT IS A RECOGNITION 02:45:45.368 --> 02:45:48.038 align:middle line:85% position:50% size:78% BY THE STATE THAT GROCERIES AND 02:45:48.104 --> 02:45:51.274 align:middle line:85% position:50% size:68% FOOD ARE A NECESSITY. OKAY. 02:45:51.341 --> 02:45:53.410 align:middle line:85% position:50% size:65% NECESSITY OF LIFE. I WOULD 02:45:53.476 --> 02:45:55.912 align:middle line:85% position:50% size:73% SUGGEST THAT ELECTRICITY IS A 02:45:55.979 --> 02:46:02.052 align:middle line:85% position:50% size:78% NECESSITY OF LIFE AND THAT. ONE 02:46:02.118 --> 02:46:04.220 align:middle line:85% position:50% size:75% THING I KNOW ABOUT ELECTRICITY 02:46:04.287 --> 02:46:07.090 align:middle line:85% position:50% size:70% BILLS IS THAT THE LOWER YOUR 02:46:07.157 --> 02:46:09.926 align:middle line:85% position:50% size:70% HOUSEHOLD INCOME, THE HIGHER 02:46:09.993 --> 02:46:13.229 align:middle line:85% position:50% size:75% PERCENT OF YOUR INCOME YOU PAY 02:46:13.296 --> 02:46:14.998 align:middle line:85% position:50% size:70% FOR YOUR MONTHLY ELECTRICITY 02:46:15.065 --> 02:46:17.500 align:middle line:85% position:50% size:75% BILL. OKAY. THAT'S JUST HOW IT 02:46:17.567 --> 02:46:22.172 align:middle line:85% position:50% size:55% IS. IF YOU LOOK AT THE 02:46:22.238 --> 02:46:25.475 align:middle line:85% position:50% size:73% CALIFORNIA INCOME TAX SYSTEM, 02:46:25.542 --> 02:46:29.746 align:middle line:85% position:50% size:78% THE LOWER YOUR INCOME, THE LESS 02:46:29.813 --> 02:46:31.147 align:middle line:85% position:50% size:75% YOU'RE IN A LOWER TAX BRACKET. 02:46:31.214 --> 02:46:33.383 align:middle line:85% position:50% size:70% AND IN FACT, THE HIGHER YOUR 02:46:33.450 --> 02:46:35.919 align:middle line:85% position:50% size:70% INCOME YOU'RE IN, THE HIGHER 02:46:35.985 --> 02:46:38.054 align:middle line:85% position:50% size:73% YOUR BRACKET IS. AND IN FACT, 02:46:38.121 --> 02:46:42.025 align:middle line:85% position:50% size:55% IF YOU'RE A LOW INCOME 02:46:42.092 --> 02:46:44.160 align:middle line:85% position:50% size:70% HOUSEHOLD WITH CHILDREN, YOU 02:46:44.227 --> 02:46:45.995 align:middle line:85% position:50% size:65% MAY QUALIFY FOR THE EARNED 02:46:46.062 --> 02:46:47.764 align:middle line:85% position:50% size:75% INCOME TAX CREDIT. YOU MAY PAY 02:46:47.831 --> 02:46:50.300 align:middle line:85% position:50% size:78% A NEGATIVE INCOME TAX, IN FACT. 02:46:50.367 --> 02:46:54.270 align:middle line:85% position:50% size:78% OKAY. AND I JUST WOULD LIKE YOU 02:46:54.337 --> 02:46:56.740 align:middle line:85% position:50% size:68% TO THINK ABOUT WHAT IS MOST 02:46:56.806 --> 02:46:58.942 align:middle line:85% position:50% size:78% EQUITABLE. AND I'D SUGGEST THAT 02:46:59.008 --> 02:47:02.879 align:middle line:85% position:50% size:78% WE START THINKING ABOUT PART OF 02:47:02.946 --> 02:47:05.048 align:middle line:85% position:50% size:73% EQUITY IS ABILITY TO PAY. AND 02:47:05.115 --> 02:47:07.350 align:middle line:85% position:50% size:70% THAT'S WHY I WOULD ENCOURAGE 02:47:07.417 --> 02:47:09.753 align:middle line:85% position:50% size:63% YOU TO LOOK HARDER AT THE 02:47:09.819 --> 02:47:11.521 align:middle line:85% position:50% size:68% INCOME TAX SYSTEM, WHICH IS 02:47:11.588 --> 02:47:12.922 align:middle line:85% position:50% size:75% HAVING THE STATE, YOU KNOW, BE 02:47:12.989 --> 02:47:15.592 align:middle line:85% position:50% size:78% THE INSURER OF LAST RESORT. AND 02:47:15.658 --> 02:47:17.394 align:middle line:85% position:50% size:75% IF IT MEANS THAT MAYBE THERE'S 02:47:17.460 --> 02:47:19.095 align:middle line:85% position:50% size:63% A CERTAIN PORTION OF HIGH 02:47:19.162 --> 02:47:20.897 align:middle line:85% position:50% size:75% INCOME EARNERS THAT CAN PUT IN 02:47:20.964 --> 02:47:23.032 align:middle line:85% position:50% size:68% JUST A LITTLE BIT MORE THAT 02:47:23.099 --> 02:47:24.567 align:middle line:85% position:50% size:78% THAT'S SOMETHING, YOU KNOW, FOR 02:47:24.634 --> 02:47:29.139 align:middle line:85% position:50% size:65% THE FOR THE PUBLIC GOOD TO 02:47:29.205 --> 02:47:30.974 align:middle line:85% position:50% size:75% PROVIDE SOME RATEPAYER RELIEF, 02:47:31.040 --> 02:47:32.742 align:middle line:85% position:50% size:65% PARTICULARLY FOR THE LOWER 02:47:32.809 --> 02:47:35.678 align:middle line:85% position:50% size:63% INCOME HOUSEHOLDS. THAT'S 02:47:35.745 --> 02:47:36.780 align:middle line:85% position:50% size:63% SOMETHING I'D LIKE YOU TO 02:47:36.846 --> 02:47:40.316 align:middle line:85% position:50% size:78% CONSIDER. THANK YOU. THANK YOU. 02:47:40.383 --> 02:47:41.751 align:middle line:85% position:50% size:63% ALL RIGHT. LOOKS LIKE MR. 02:47:41.818 --> 02:47:43.620 align:middle line:85% position:50% size:78% SMARTY JONES HAS AN ADDITIONAL. 02:47:43.686 --> 02:47:45.455 align:middle line:85% position:50% size:78% YEAH. THANK YOU. AND JUST FOR A 02:47:45.522 --> 02:47:46.756 align:middle line:85% position:50% size:65% LITTLE BIT OF QUICK, QUICK 02:47:46.823 --> 02:47:49.359 align:middle line:85% position:50% size:68% CLARITY, MISS BECKER TALKED 02:47:49.426 --> 02:47:50.894 align:middle line:85% position:50% size:68% ABOUT THE SORT OF LONG TERM 02:47:50.960 --> 02:47:53.563 align:middle line:85% position:50% size:75% CLEAN ENERGY PLAN THAT WE HAVE 02:47:53.630 --> 02:47:54.697 align:middle line:85% position:50% size:60% HERE. AND I'M NOT REALLY 02:47:54.764 --> 02:47:55.732 align:middle line:85% position:50% size:68% TALKING ABOUT THAT. WHAT IS 02:47:55.799 --> 02:47:57.200 align:middle line:85% position:50% size:75% HAPPENING IN 2045? I'M TALKING 02:47:57.267 --> 02:47:58.301 align:middle line:85% position:50% size:70% ABOUT WHAT'S HAPPENING RIGHT 02:47:58.368 --> 02:48:01.571 align:middle line:85% position:50% size:65% NOW. AND WE HAVE PRIMARILY 02:48:01.638 --> 02:48:02.672 align:middle line:85% position:50% size:73% STORAGE, BUT THERE'S A LOT OF 02:48:02.739 --> 02:48:04.174 align:middle line:85% position:50% size:70% THINGS COMING ONLINE TO MEET 02:48:04.240 --> 02:48:05.575 align:middle line:85% position:50% size:70% OUR RELIABILITY NEEDS IN THE 02:48:05.642 --> 02:48:08.044 align:middle line:85% position:50% size:78% SHORT TERM. AND SO FOR US, THIS 02:48:08.111 --> 02:48:09.913 align:middle line:85% position:50% size:75% IS LIKE IMMEDIATE, WE HAVE GOT 02:48:09.979 --> 02:48:11.681 align:middle line:85% position:50% size:63% THE SAME PROBLEM THAT THE 02:48:11.748 --> 02:48:12.649 align:middle line:85% position:50% size:55% BUILDERS HAVE WITH THE 02:48:12.715 --> 02:48:13.683 align:middle line:85% position:50% size:63% STANDPOINT THAT WE BOUGHT 02:48:13.750 --> 02:48:14.984 align:middle line:85% position:50% size:70% EQUIPMENT. PEOPLE ARE MOVING 02:48:15.051 --> 02:48:17.053 align:middle line:85% position:50% size:75% EARTH, WHATEVER ELSE. WE DON'T 02:48:17.120 --> 02:48:20.657 align:middle line:85% position:50% size:70% KNOW IF 2027 DOESN'T GO INTO 02:48:20.723 --> 02:48:22.959 align:middle line:85% position:50% size:70% 2028, 2029, WHATEVER. NOBODY 02:48:23.026 --> 02:48:24.627 align:middle line:85% position:50% size:75% KNOWS WHAT THAT'S WHAT'S GOING 02:48:24.694 --> 02:48:25.862 align:middle line:85% position:50% size:75% ON. SO THE POINT IS, THERE'S A 02:48:25.929 --> 02:48:27.630 align:middle line:85% position:50% size:75% GREAT DEAL OF UNCERTAINTY HERE 02:48:27.697 --> 02:48:28.631 align:middle line:85% position:50% size:55% THAT'S GOING TO REALLY 02:48:28.698 --> 02:48:29.766 align:middle line:85% position:50% size:78% UNDERMINE THE ABILITY OF PEOPLE 02:48:29.833 --> 02:48:31.835 align:middle line:85% position:50% size:78% TO INVEST MONEY IN ALL OF THOSE 02:48:31.901 --> 02:48:33.603 align:middle line:85% position:50% size:70% TYPES OF TECHNOLOGIES. AND I 02:48:33.670 --> 02:48:35.839 align:middle line:85% position:50% size:75% THINK THE ONE, YOU KNOW, THING 02:48:35.905 --> 02:48:37.173 align:middle line:85% position:50% size:73% THAT EVERYBODY HAS AGREED TO, 02:48:37.240 --> 02:48:38.374 align:middle line:85% position:50% size:75% AND I DON'T WANT TO BE MACABRE 02:48:38.441 --> 02:48:40.276 align:middle line:85% position:50% size:68% ON THIS, BUT WE'VE NO ONE'S 02:48:40.343 --> 02:48:41.511 align:middle line:85% position:50% size:73% MENTIONED THE WORD BANKRUPTCY 02:48:41.578 --> 02:48:43.279 align:middle line:85% position:50% size:65% BEFORE. WE'RE LIKE ONE BAD 02:48:43.346 --> 02:48:44.881 align:middle line:85% position:50% size:80% WILDFIRE AWAY FROM THAT. I MEAN, 02:48:44.948 --> 02:48:46.683 align:middle line:85% position:50% size:78% THAT'S THE REALITY. NO ONE EVER 02:48:46.749 --> 02:48:47.817 align:middle line:85% position:50% size:73% PLANNED FOR THEM. WE'VE LIVED 02:48:47.884 --> 02:48:49.085 align:middle line:85% position:50% size:65% THROUGH TWO OF THEM. WE'VE 02:48:49.152 --> 02:48:50.553 align:middle line:85% position:50% size:58% AVOIDED ONE IN SOUTHERN 02:48:50.620 --> 02:48:53.356 align:middle line:85% position:50% size:75% CALIFORNIA IN 2001. BUT THAT'S 02:48:53.423 --> 02:48:55.258 align:middle line:85% position:50% size:73% THAT'S AT THE HEART OF IT. SO 02:48:55.325 --> 02:48:57.093 align:middle line:85% position:50% size:78% WE NEED TO FIX THIS PROBLEM AND 02:48:57.160 --> 02:48:58.828 align:middle line:85% position:50% size:65% IT NEEDS NOBODY PLANNED ON 02:48:58.895 --> 02:49:00.263 align:middle line:85% position:50% size:68% THOSE EVENTS OCCURRING. BUT 02:49:00.330 --> 02:49:02.732 align:middle line:85% position:50% size:70% THEY DID. AND WE NEED TO FIX 02:49:02.799 --> 02:49:07.270 align:middle line:85% position:50% size:75% THIS ISSUE NOW. SO I APOLOGIZE 02:49:07.337 --> 02:49:09.606 align:middle line:85% position:50% size:70% FOR GOING ON TOO LONG, BUT I 02:49:09.672 --> 02:49:11.307 align:middle line:85% position:50% size:78% THOUGHT THAT NEEDED TO BE SAID. 02:49:11.374 --> 02:49:13.510 align:middle line:85% position:50% size:75% THANK YOU. DID YOU WANT TO SAY 02:49:13.576 --> 02:49:15.345 align:middle line:85% position:50% size:70% SOMETHING, MR. ROTHWELL? NO. 02:49:15.411 --> 02:49:17.146 align:middle line:85% position:50% size:70% OKAY. NO, I WOULD JUST ECHO. 02:49:17.213 --> 02:49:20.049 align:middle line:85% position:50% size:68% ECHO WHAT? MR. YES, INDEED. 02:49:20.116 --> 02:49:21.818 align:middle line:85% position:50% size:65% WELL, SEEING NO ADDITIONAL 02:49:21.885 --> 02:49:23.987 align:middle line:85% position:50% size:65% QUESTIONS OR COMMENTS FROM 02:49:24.053 --> 02:49:25.855 align:middle line:85% position:50% size:73% MEMBERS, I WOULD SAY. I THINK 02:49:25.922 --> 02:49:27.624 align:middle line:85% position:50% size:75% THAT'S AN EXCELLENT. WE'LL LET 02:49:27.690 --> 02:49:29.392 align:middle line:85% position:50% size:65% THAT BE THE LAST WORD. MR. 02:49:29.459 --> 02:49:31.928 align:middle line:85% position:50% size:65% SMARTY JONES. I THINK THAT 02:49:31.995 --> 02:49:33.062 align:middle line:85% position:50% size:73% CERTAINLY. ONE THING THAT HAS 02:49:33.129 --> 02:49:34.430 align:middle line:85% position:50% size:70% BEEN VERY CLEAR FROM TODAY'S 02:49:34.497 --> 02:49:36.266 align:middle line:85% position:50% size:73% DISCUSSION IS THAT THE STAKES 02:49:36.332 --> 02:49:38.401 align:middle line:85% position:50% size:68% FOR CALIFORNIA COULD NOT BE 02:49:38.468 --> 02:49:40.904 align:middle line:85% position:50% size:75% HIGHER, AND THAT THE CRISIS IS 02:49:40.970 --> 02:49:43.806 align:middle line:85% position:50% size:75% NOT. IN SIX MONTHS. THE CRISIS 02:49:43.873 --> 02:49:45.275 align:middle line:85% position:50% size:73% IS UNFOLDING RIGHT NOW BEFORE 02:49:45.341 --> 02:49:47.777 align:middle line:85% position:50% size:73% OUR EYES, WHICH IS INDEED WHY 02:49:47.844 --> 02:49:50.647 align:middle line:85% position:50% size:75% WE ARE HERE ON A WEDNESDAY AND 02:49:50.713 --> 02:49:53.583 align:middle line:85% position:50% size:73% THURSDAY IN NOVEMBER. SO WITH 02:49:53.650 --> 02:49:55.184 align:middle line:85% position:50% size:63% THAT, I REALLY DO WANT TO 02:49:55.251 --> 02:49:56.286 align:middle line:85% position:50% size:75% GENUINELY THANK ALL OF YOU ALL 02:49:56.352 --> 02:49:58.187 align:middle line:85% position:50% size:73% FOR BEING HERE AND BEING PART 02:49:58.254 --> 02:49:59.155 align:middle line:85% position:50% size:65% OF TODAY'S CONVERSATION. I 02:49:59.222 --> 02:50:00.690 align:middle line:85% position:50% size:75% REALLY, REALLY APPRECIATED THE 02:50:00.757 --> 02:50:03.226 align:middle line:85% position:50% size:75% DISCUSSION AND APPRECIATE YOUR 02:50:03.293 --> 02:50:04.994 align:middle line:85% position:50% size:75% INSIGHTS AND PERSPECTIVES, AND 02:50:05.061 --> 02:50:06.896 align:middle line:85% position:50% size:73% LOOK FORWARD TO CONTINUING TO 02:50:06.963 --> 02:50:08.865 align:middle line:85% position:50% size:68% WORK WITH YOU AS WE LOOK TO 02:50:08.932 --> 02:50:11.200 align:middle line:85% position:50% size:68% ADDRESS A CHALLENGE THAT IS 02:50:11.267 --> 02:50:12.936 align:middle line:85% position:50% size:70% BOTH ENORMOUS AND ENORMOUSLY 02:50:13.002 --> 02:50:14.737 align:middle line:85% position:50% size:65% IMPORTANT FOR THE STATE OF 02:50:14.804 --> 02:50:15.872 align:middle line:85% position:50% size:68% CALIFORNIA. SO THANK YOU SO 02:50:15.939 --> 02:50:16.973 align:middle line:85% position:50% size:70% MUCH. AND WE'RE GOING TO GO. 02:50:17.040 --> 02:50:18.775 align:middle line:85% position:50% size:68% YOU'RE WELCOME TO STAY, BUT 02:50:18.841 --> 02:50:19.876 align:middle line:85% position:50% size:70% YOU'RE ALSO WELCOME TO CLEAR 02:50:19.943 --> 02:50:20.977 align:middle line:85% position:50% size:70% OUT. WE'RE GOING TO GO AHEAD 02:50:21.044 --> 02:50:22.912 align:middle line:85% position:50% size:63% AND OPEN IT UP FOR PUBLIC 02:50:22.979 --> 02:50:24.581 align:middle line:85% position:50% size:78% COMMENT. ALL RIGHT. IF YOU WANT 02:50:24.647 --> 02:50:26.249 align:middle line:85% position:50% size:75% TO PROVIDE PUBLIC COMMENT, YOU 02:50:26.316 --> 02:50:27.717 align:middle line:85% position:50% size:75% CAN APPROACH THE MICROPHONE AT 02:50:27.784 --> 02:50:32.055 align:middle line:85% position:50% size:73% THIS TIME. AND WE'RE GOING TO 02:50:32.121 --> 02:50:33.356 align:middle line:85% position:50% size:73% GIVE EACH WITNESS TWO MINUTES 02:50:33.423 --> 02:50:34.924 align:middle line:85% position:50% size:68% TO SPEAK. AND IF YOU CAN GO 02:50:34.991 --> 02:50:37.193 align:middle line:85% position:50% size:78% AHEAD AND JUST FIRST STATE YOUR 02:50:37.260 --> 02:50:38.861 align:middle line:85% position:50% size:70% NAME AND ORGANIZATION BEFORE 02:50:38.928 --> 02:50:42.432 align:middle line:85% position:50% size:75% YOU OFFER US YOUR PERSPECTIVE. 02:50:42.498 --> 02:50:43.967 align:middle line:85% position:50% size:75% WELCOME. GOOD AFTERNOON, MADAM 02:50:44.033 --> 02:50:45.335 align:middle line:85% position:50% size:70% CHAIR. ALEX JACKSON WITH THE 02:50:45.401 --> 02:50:46.803 align:middle line:85% position:50% size:50% AMERICAN CLEAN POWER 02:50:46.869 --> 02:50:47.804 align:middle line:85% position:50% size:65% ASSOCIATION. WE'RE A TRADE 02:50:47.870 --> 02:50:49.305 align:middle line:85% position:50% size:75% GROUP REPRESENTING LARGE SCALE 02:50:49.372 --> 02:50:50.807 align:middle line:85% position:50% size:70% RENEWABLE ENERGY DEVELOPERS, 02:50:50.873 --> 02:50:52.208 align:middle line:85% position:50% size:70% MANY OF WHOM RECEIVED ONE OF 02:50:52.275 --> 02:50:53.810 align:middle line:85% position:50% size:68% THE RECENT DEFERRAL NOTICES 02:50:53.876 --> 02:50:55.812 align:middle line:85% position:50% size:70% THAT PG AND E SENT OUT. SO I 02:50:55.878 --> 02:50:57.213 align:middle line:85% position:50% size:65% JUST WANT TO BE HEARD VERY 02:50:57.280 --> 02:50:59.082 align:middle line:85% position:50% size:63% CLEARLY THAT WE ARE FULLY 02:50:59.148 --> 02:51:00.617 align:middle line:85% position:50% size:78% SUPPORTIVE OF LIABILITY REFORM. 02:51:00.683 --> 02:51:02.485 align:middle line:85% position:50% size:78% THIS IS A CLEAN ENERGY ISSUE. I 02:51:02.552 --> 02:51:03.686 align:middle line:85% position:50% size:70% AGREE IT'S LARGER THAN THAT. 02:51:03.753 --> 02:51:05.188 align:middle line:85% position:50% size:75% THIS IS AN ECONOMY WIDE ISSUE, 02:51:05.254 --> 02:51:06.589 align:middle line:85% position:50% size:55% BUT THIS IS ABSOLUTELY 02:51:06.656 --> 02:51:08.925 align:middle line:85% position:50% size:73% ESSENTIAL. WE CANNOT CONTINUE 02:51:08.992 --> 02:51:10.927 align:middle line:85% position:50% size:75% TO PILE THESE COSTS ON UTILITY 02:51:10.994 --> 02:51:13.129 align:middle line:85% position:50% size:78% SHAREHOLDERS AND RATEPAYERS FOR 02:51:13.196 --> 02:51:14.530 align:middle line:85% position:50% size:75% FACTORS THAT MANY OF WHICH ARE 02:51:14.597 --> 02:51:15.765 align:middle line:85% position:50% size:73% BEYOND THE UTILITY'S CONTROL, 02:51:15.832 --> 02:51:16.733 align:middle line:85% position:50% size:68% IN TERMS OF WHAT'S ACTUALLY 02:51:16.799 --> 02:51:18.468 align:middle line:85% position:50% size:80% DRIVING THE COST OF THESE FIRES. 02:51:18.534 --> 02:51:19.969 align:middle line:85% position:50% size:78% AND REMEMBER THAT CALIFORNIA IS 02:51:20.036 --> 02:51:21.671 align:middle line:85% position:50% size:70% AN OUTLIER HERE. I KNOW THAT 02:51:21.738 --> 02:51:22.839 align:middle line:85% position:50% size:68% THERE ARE HARD CHOICES, BUT 02:51:22.905 --> 02:51:23.906 align:middle line:85% position:50% size:75% REALLY THE BURDEN SHOULD BE ON 02:51:23.973 --> 02:51:25.742 align:middle line:85% position:50% size:75% THOSE TRYING TO DEFEND WHAT IS 02:51:25.808 --> 02:51:26.843 align:middle line:85% position:50% size:78% AN INDEFENSIBLE STATUS QUO. BUT 02:51:26.909 --> 02:51:28.678 align:middle line:85% position:50% size:75% TO YOUR POINT, MADAM CHAIR, WE 02:51:28.745 --> 02:51:29.912 align:middle line:85% position:50% size:73% DO HAVE TO THINK ABOUT HOW TO 02:51:29.979 --> 02:51:31.848 align:middle line:85% position:50% size:73% WALK AND CHEW GUM AT THE SAME 02:51:31.914 --> 02:51:33.716 align:middle line:85% position:50% size:70% TIME, BECAUSE WE MAY BE IN A 02:51:33.783 --> 02:51:35.718 align:middle line:85% position:50% size:73% LAND OF PLAN B'S. AND I THINK 02:51:35.785 --> 02:51:36.886 align:middle line:85% position:50% size:78% IT IS CONCERNING THAT RIGHT NOW 02:51:36.953 --> 02:51:38.688 align:middle line:85% position:50% size:73% WE'RE SEEING ONE OF OUR MAJOR 02:51:38.755 --> 02:51:39.856 align:middle line:85% position:50% size:70% IOUS, WHO ARE THE DEVELOPERS 02:51:39.922 --> 02:51:40.790 align:middle line:85% position:50% size:50% AND FINANCERS OF OUR 02:51:40.857 --> 02:51:42.592 align:middle line:85% position:50% size:70% TRANSMISSION SYSTEM, KIND OF 02:51:42.659 --> 02:51:43.660 align:middle line:85% position:50% size:75% SCATTERSHOT, SENDING OUT THESE 02:51:43.726 --> 02:51:45.461 align:middle line:85% position:50% size:80% NOTICES WITH VERY LITTLE NOTICE, 02:51:45.528 --> 02:51:46.696 align:middle line:85% position:50% size:75% UNDERSTANDING OF WHAT CRITERIA 02:51:46.763 --> 02:51:48.197 align:middle line:85% position:50% size:68% ARE BEHIND THEM, BECAUSE WE 02:51:48.264 --> 02:51:49.699 align:middle line:85% position:50% size:73% HAVE REAL STAKES AND MONEY ON 02:51:49.766 --> 02:51:51.601 align:middle line:85% position:50% size:80% THE LINE. AS MY COLLEAGUE NOTED, 02:51:51.668 --> 02:51:53.569 align:middle line:85% position:50% size:75% WE HAVE TO HIT A 2030 TIMELINE 02:51:53.636 --> 02:51:54.904 align:middle line:85% position:50% size:78% FOR CLEAN ENERGY PROJECTS TO BE 02:51:54.971 --> 02:51:56.272 align:middle line:85% position:50% size:70% PLACED IN SERVICE TO QUALIFY 02:51:56.339 --> 02:51:57.607 align:middle line:85% position:50% size:73% FOR FEDERAL TAX CREDITS, SOME 02:51:57.674 --> 02:51:58.808 align:middle line:85% position:50% size:65% OF WHICH, DEPENDING ON THE 02:51:58.875 --> 02:52:00.009 align:middle line:85% position:50% size:75% LOCATION, COULD OFFSET HALF OF 02:52:00.076 --> 02:52:01.978 align:middle line:85% position:50% size:75% THE COST OF THE PROJECT. IT IS 02:52:02.045 --> 02:52:03.212 align:middle line:85% position:50% size:68% ESSENTIAL WE DON'T LOSE THE 02:52:03.279 --> 02:52:04.981 align:middle line:85% position:50% size:73% BALL ON THOSE, SO I WOULD ASK 02:52:05.048 --> 02:52:06.716 align:middle line:85% position:50% size:68% THIS COMMITTEE TO REALLY BE 02:52:06.783 --> 02:52:08.184 align:middle line:85% position:50% size:68% FIRM IN ITS OVERSIGHT ROLE, 02:52:08.251 --> 02:52:09.619 align:middle line:85% position:50% size:78% PROVIDE DIRECTION TO THE PUBLIC 02:52:09.686 --> 02:52:11.754 align:middle line:85% position:50% size:75% UTILITIES COMMISSION, MAXIMIZE 02:52:11.821 --> 02:52:12.855 align:middle line:85% position:50% size:58% OPPORTUNITIES FOR OTHER 02:52:12.922 --> 02:52:14.323 align:middle line:85% position:50% size:78% ENTITIES TO DO THE WORK THROUGH 02:52:14.390 --> 02:52:15.391 align:middle line:85% position:50% size:58% MECHANISMS LIKE A BUILD 02:52:15.458 --> 02:52:17.060 align:middle line:85% position:50% size:75% TRANSFER AGREEMENT, SO THAT WE 02:52:17.126 --> 02:52:19.362 align:middle line:85% position:50% size:78% HAVE A CONTINGENCY PLAN. BUT TO 02:52:19.429 --> 02:52:20.797 align:middle line:85% position:50% size:68% BE CLEAR, PLAN A, LET'S GET 02:52:20.863 --> 02:52:23.299 align:middle line:85% position:50% size:73% LIABILITY DONE. THANKS. THANK 02:52:23.366 --> 02:52:26.969 align:middle line:85% position:50% size:65% YOU. GOOD AFTERNOON, MADAM 02:52:27.036 --> 02:52:28.705 align:middle line:85% position:50% size:70% CHAIR AND MEMBERS. THANK YOU 02:52:28.771 --> 02:52:29.706 align:middle line:85% position:50% size:70% PARTICULARLY TO MADAM CHAIR, 02:52:29.772 --> 02:52:31.574 align:middle line:85% position:50% size:65% FOR YOUR DILIGENCE ON THIS 02:52:31.641 --> 02:52:33.376 align:middle line:85% position:50% size:70% SUBJECT AND TO THE COMMITTEE 02:52:33.443 --> 02:52:35.211 align:middle line:85% position:50% size:68% STAFF'S. YET AGAIN, ANOTHER 02:52:35.278 --> 02:52:36.979 align:middle line:85% position:50% size:70% WELL ARTICULATED REPORT. I'M 02:52:37.046 --> 02:52:39.148 align:middle line:85% position:50% size:73% HERE ON BEHALF OF NRDC ACTION 02:52:39.215 --> 02:52:41.250 align:middle line:85% position:50% size:78% FUND, AND WE ARE CONCERNED THAT 02:52:41.317 --> 02:52:43.252 align:middle line:85% position:50% size:75% THE STRICT LIABILITY FRAMEWORK 02:52:43.319 --> 02:52:44.921 align:middle line:85% position:50% size:68% MAKES IT MORE EXPENSIVE FOR 02:52:44.987 --> 02:52:46.289 align:middle line:85% position:50% size:73% UTILITIES TO ACCESS THE MONEY 02:52:46.355 --> 02:52:47.790 align:middle line:85% position:50% size:45% NECESSARY TO BUILD 02:52:47.857 --> 02:52:48.825 align:middle line:85% position:50% size:68% INFRASTRUCTURE, AND IT ALSO 02:52:48.891 --> 02:52:50.259 align:middle line:85% position:50% size:65% MAKES IT MORE EXPENSIVE TO 02:52:50.326 --> 02:52:52.061 align:middle line:85% position:50% size:68% TRANSITION OUR ECONOMY INTO 02:52:52.128 --> 02:52:53.563 align:middle line:85% position:50% size:58% CLEAN ENERGY AND DELAYS 02:52:53.629 --> 02:52:54.597 align:middle line:85% position:50% size:50% CONSTRUCTION FOR THE 02:52:54.664 --> 02:52:56.432 align:middle line:85% position:50% size:68% DISTRIBUTION AND TRANSITION 02:52:56.499 --> 02:52:58.601 align:middle line:85% position:50% size:65% THAT WE NEED TO POWER EVS, 02:52:58.668 --> 02:53:01.070 align:middle line:85% position:50% size:60% BUILDINGS AND INDUSTRIAL 02:53:01.137 --> 02:53:02.905 align:middle line:85% position:50% size:63% EQUIPMENT. THE STATUS QUO 02:53:02.972 --> 02:53:05.007 align:middle line:85% position:50% size:70% INCENTIVIZES AN OVERSPEND ON 02:53:05.074 --> 02:53:06.476 align:middle line:85% position:50% size:75% WILDFIRE PREVENTION TO PROTECT 02:53:06.542 --> 02:53:07.710 align:middle line:85% position:50% size:78% SHAREHOLDERS, EVEN IF THE SPEND 02:53:07.777 --> 02:53:09.345 align:middle line:85% position:50% size:73% IS LESS COST EFFECTIVE, WHICH 02:53:09.412 --> 02:53:11.180 align:middle line:85% position:50% size:68% COMES AT THE EXPENSE OF THE 02:53:11.247 --> 02:53:13.282 align:middle line:85% position:50% size:75% UTILITY'S CORE FUNCTION. THESE 02:53:13.349 --> 02:53:15.151 align:middle line:85% position:50% size:73% INCENTIVES MUST BE REBALANCED 02:53:15.218 --> 02:53:17.286 align:middle line:85% position:50% size:55% TO PROTECT ELECTRICITY 02:53:17.353 --> 02:53:18.354 align:middle line:85% position:50% size:70% CUSTOMERS AND TO KEEPING THE 02:53:18.421 --> 02:53:19.789 align:middle line:85% position:50% size:73% GRID SAFE. THANK YOU FOR YOUR 02:53:19.856 --> 02:53:25.595 align:middle line:85% position:50% size:68% TIME. THANK YOU. THANK YOU, 02:53:25.661 --> 02:53:26.996 align:middle line:85% position:50% size:73% MADAM CHAIR AND MEMBERS. WILL 02:53:27.063 --> 02:53:28.231 align:middle line:85% position:50% size:68% DAILEY, ON BEHALF OF AURORA 02:53:28.297 --> 02:53:29.665 align:middle line:85% position:50% size:78% TECH WILDFIRE SATELLITE COMPANY 02:53:29.732 --> 02:53:31.000 align:middle line:85% position:50% size:78% THAT DETECTS AND MONITORS FIRES 02:53:31.067 --> 02:53:33.002 align:middle line:85% position:50% size:68% FROM SPACE. WE PARTNER WITH 02:53:33.069 --> 02:53:34.537 align:middle line:85% position:50% size:73% FIRE DEPARTMENTS SUCH AS L.A. 02:53:34.604 --> 02:53:36.773 align:middle line:85% position:50% size:78% COUNTY AND ACROSS IOUS AND IOUS 02:53:36.839 --> 02:53:38.174 align:middle line:85% position:50% size:63% ACROSS THE UNITED STATES, 02:53:38.241 --> 02:53:38.908 align:middle line:85% position:50% size:63% INCLUDING THROUGH ONGOING 02:53:38.975 --> 02:53:40.777 align:middle line:85% position:50% size:60% PILOTS IN CALIFORNIA FOR 02:53:40.843 --> 02:53:42.145 align:middle line:85% position:50% size:73% TODAY'S FINANCING DISCUSSION. 02:53:42.211 --> 02:53:43.913 align:middle line:85% position:50% size:65% OUR POINT IS SIMPLE BETTER 02:53:43.980 --> 02:53:45.148 align:middle line:85% position:50% size:75% INFORMATION CAN HELP UTILITIES 02:53:45.214 --> 02:53:46.449 align:middle line:85% position:50% size:55% MAKE BETTER USE OF THE 02:53:46.516 --> 02:53:49.652 align:middle line:85% position:50% size:70% RESOURCES THEY ALREADY HAVE. 02:53:49.719 --> 02:53:51.154 align:middle line:85% position:50% size:65% OUR SATELLITES HELP LOCATE 02:53:51.220 --> 02:53:52.288 align:middle line:85% position:50% size:78% FIRES, TRACK THEIR DEVELOPMENT, 02:53:52.355 --> 02:53:53.289 align:middle line:85% position:50% size:65% AND FORECAST WHERE THEY'RE 02:53:53.356 --> 02:53:54.724 align:middle line:85% position:50% size:73% HEADING, GIVING UTILITIES AND 02:53:54.791 --> 02:53:55.858 align:middle line:85% position:50% size:78% RESPONDERS A CLEARER PICTURE OF 02:53:55.925 --> 02:53:56.926 align:middle line:85% position:50% size:53% WHICH COMMUNITIES AND 02:53:56.993 --> 02:53:58.694 align:middle line:85% position:50% size:75% INFRASTRUCTURE ARE THREATENED. 02:53:58.761 --> 02:54:00.496 align:middle line:85% position:50% size:75% THE CALIFORNIA PILOTS OFFER AN 02:54:00.563 --> 02:54:01.230 align:middle line:85% position:50% size:55% OPPORTUNITY TO MEASURE 02:54:01.297 --> 02:54:03.032 align:middle line:85% position:50% size:63% DETECTION, SPEED TRACKING 02:54:03.099 --> 02:54:04.100 align:middle line:85% position:50% size:63% ACCURACY AND WHETHER THAT 02:54:04.167 --> 02:54:05.134 align:middle line:85% position:50% size:73% INFORMATION IMPROVES RESPONSE 02:54:05.201 --> 02:54:06.602 align:middle line:85% position:50% size:70% AND DECISIONS ABOUT SHUTTING 02:54:06.669 --> 02:54:09.839 align:middle line:85% position:50% size:73% OFF OR RESTORING POWER. WE'RE 02:54:09.906 --> 02:54:11.440 align:middle line:85% position:50% size:78% WELCOME TO SHARE. WE'RE WELCOME 02:54:11.507 --> 02:54:13.576 align:middle line:85% position:50% size:75% TO SHARE WHAT WE LEARN. SORRY. 02:54:13.643 --> 02:54:15.278 align:middle line:85% position:50% size:73% WE WELCOME SHARING WHAT WE'RE 02:54:15.344 --> 02:54:16.712 align:middle line:85% position:50% size:78% LEARNING. SO FUTURE INVESTMENTS 02:54:16.779 --> 02:54:18.181 align:middle line:85% position:50% size:70% ARE GROUNDED IN DEMONSTRATED 02:54:18.247 --> 02:54:19.215 align:middle line:85% position:50% size:63% PERFORMANCE AND VALUE FOR 02:54:19.282 --> 02:54:23.119 align:middle line:85% position:50% size:80% CUSTOMERS. THANK YOU. THANK YOU, 02:54:23.186 --> 02:54:24.220 align:middle line:85% position:50% size:70% MADAM CHAIR AND MEMBERS ALEX 02:54:24.287 --> 02:54:25.321 align:middle line:85% position:50% size:60% TORRES HERE ON BEHALF OF 02:54:25.388 --> 02:54:26.789 align:middle line:85% position:50% size:78% PERIMETER SOLUTIONS, WE ARE CAL 02:54:26.856 --> 02:54:28.591 align:middle line:85% position:50% size:65% FIRE'S AERIAL FIREFIGHTING 02:54:28.658 --> 02:54:30.693 align:middle line:85% position:50% size:75% RETARDANT PARTNER. I THINK MR. 02:54:30.760 --> 02:54:32.161 align:middle line:85% position:50% size:78% DUNMORE DID A GREAT JOB TALKING 02:54:32.228 --> 02:54:33.129 align:middle line:85% position:50% size:55% ABOUT THE NEED TO HAVE 02:54:33.196 --> 02:54:34.030 align:middle line:85% position:50% size:68% COMPREHENSIVE CONVERSATIONS 02:54:34.096 --> 02:54:35.832 align:middle line:85% position:50% size:78% AROUND THIS. AND SO MUCH OF THE 02:54:35.898 --> 02:54:37.266 align:middle line:85% position:50% size:73% AFFORDABILITY CONVERSATION IS 02:54:37.333 --> 02:54:38.301 align:middle line:85% position:50% size:65% GROUNDED IN OUR ABILITY TO 02:54:38.367 --> 02:54:40.603 align:middle line:85% position:50% size:78% REDUCE WILDFIRE RISK. SO I WANT 02:54:40.670 --> 02:54:42.271 align:middle line:85% position:50% size:73% TO SHARE A LITTLE BIT ABOUT A 02:54:42.338 --> 02:54:44.106 align:middle line:85% position:50% size:78% FEW QUICK REGIONAL CASE STUDIES 02:54:44.173 --> 02:54:45.942 align:middle line:85% position:50% size:73% THAT WE THINK OFFER PRACTICAL 02:54:46.008 --> 02:54:46.943 align:middle line:85% position:50% size:78% EXAMPLES AROUND THIS DISCUSSION 02:54:47.009 --> 02:54:48.644 align:middle line:85% position:50% size:63% AROUND PROTECTING UTILITY 02:54:48.711 --> 02:54:50.780 align:middle line:85% position:50% size:58% INFRASTRUCTURE. THE RED 02:54:50.847 --> 02:54:51.547 align:middle line:85% position:50% size:68% RETARDANT IS THE SAME STUFF 02:54:51.614 --> 02:54:53.216 align:middle line:85% position:50% size:75% THAT COMES OUT OF THE CAL FIRE 02:54:53.282 --> 02:54:54.717 align:middle line:85% position:50% size:70% SAU MADE HERE IN CALIFORNIA, 02:54:54.784 --> 02:54:56.152 align:middle line:85% position:50% size:75% BUT THE SAME BASIC FORMULATION 02:54:56.219 --> 02:54:57.620 align:middle line:85% position:50% size:78% CAN BE APPLIED ON THE GROUND TO 02:54:57.687 --> 02:54:59.522 align:middle line:85% position:50% size:65% REDUCE IGNITION. SAN DIEGO 02:54:59.589 --> 02:55:00.857 align:middle line:85% position:50% size:60% COUNTY HAS BEEN PILOTING 02:55:00.923 --> 02:55:02.458 align:middle line:85% position:50% size:73% PILOTING THIS UP TO 200 MILES 02:55:02.525 --> 02:55:04.460 align:middle line:85% position:50% size:78% OF HIGH RISK ROADWAY, INCLUDING 02:55:04.527 --> 02:55:05.528 align:middle line:85% position:50% size:70% EVACUATIONS. MR. HERBERT WAS 02:55:05.595 --> 02:55:06.529 align:middle line:85% position:50% size:60% HERE EARLIER. WE'VE BEEN 02:55:06.596 --> 02:55:07.663 align:middle line:85% position:50% size:68% WORKING WITH THE ROSE BOWL. 02:55:07.730 --> 02:55:08.831 align:middle line:85% position:50% size:78% THEY WERE BRUSH FIRE IGNITIONS, 02:55:08.898 --> 02:55:09.866 align:middle line:85% position:50% size:70% AND SINCE WE'VE BEEN WORKING 02:55:09.932 --> 02:55:11.601 align:middle line:85% position:50% size:73% WITH THEM, THERE HAVE BEEN NO 02:55:11.667 --> 02:55:13.870 align:middle line:85% position:50% size:78% IGNITIONS AROUND THE ROSE BOWL. 02:55:13.936 --> 02:55:15.671 align:middle line:85% position:50% size:73% ANOTHER EXAMPLE THAT WE THINK 02:55:15.738 --> 02:55:17.039 align:middle line:85% position:50% size:75% IS NOT QUITE ON THE PREVENTION 02:55:17.106 --> 02:55:18.474 align:middle line:85% position:50% size:75% SIDE, BUT HAS TO DO WITH QUICK 02:55:18.541 --> 02:55:19.675 align:middle line:85% position:50% size:70% RESPONSE AND SUPPRESSION, IS 02:55:19.742 --> 02:55:21.077 align:middle line:85% position:50% size:73% THE SOUTHERN CALIFORNIA QUICK 02:55:21.143 --> 02:55:21.878 align:middle line:85% position:50% size:70% REACTION FORCE, WHICH YOU'RE 02:55:21.944 --> 02:55:23.913 align:middle line:85% position:50% size:78% WELL AWARE OF, MADAM CHAIR, AND 02:55:23.980 --> 02:55:26.048 align:middle line:85% position:50% size:75% YOUR YOUR LEADERSHIP ON AB 275 02:55:26.115 --> 02:55:26.949 align:middle line:85% position:50% size:73% EXPLORED HOW WE CAN TAKE THAT 02:55:27.016 --> 02:55:28.918 align:middle line:85% position:50% size:63% TO A STATEWIDE MODEL THAT 02:55:28.985 --> 02:55:31.053 align:middle line:85% position:50% size:70% BUNDLED UTILITY FUNDING WITH 02:55:31.120 --> 02:55:33.623 align:middle line:85% position:50% size:78% COUNTY FIRE DEPARTMENTS, MOBILE 02:55:33.689 --> 02:55:34.824 align:middle line:85% position:50% size:78% RETARDANT BASES TO PUT TOGETHER 02:55:34.891 --> 02:55:36.392 align:middle line:85% position:50% size:75% A FRAMEWORK THAT COULD RESPOND 02:55:36.459 --> 02:55:37.727 align:middle line:85% position:50% size:68% TO FIRES EXTREMELY QUICKLY. 02:55:37.793 --> 02:55:39.729 align:middle line:85% position:50% size:75% WHEN THEY DO ARISE, AS IN MANY 02:55:39.795 --> 02:55:41.264 align:middle line:85% position:50% size:68% CASES, THEY WILL INEVITABLY 02:55:41.330 --> 02:55:42.899 align:middle line:85% position:50% size:78% ARISE. BUT WE DO NEED TO FIGURE 02:55:42.965 --> 02:55:44.433 align:middle line:85% position:50% size:68% OUT HOW WE TURN SMALL BRUSH 02:55:44.500 --> 02:55:46.569 align:middle line:85% position:50% size:70% FIRES. WE PUT THOSE OUT WITH 02:55:46.636 --> 02:55:47.670 align:middle line:85% position:50% size:65% RESOURCES TO SCALE SO THEY 02:55:47.737 --> 02:55:49.105 align:middle line:85% position:50% size:63% DON'T BECOME CATASTROPHIC 02:55:49.171 --> 02:55:50.840 align:middle line:85% position:50% size:75% WILDFIRES. AND SO AS YOU WEIGH 02:55:50.907 --> 02:55:51.874 align:middle line:85% position:50% size:68% THESE FINANCING OPTIONS AND 02:55:51.941 --> 02:55:53.442 align:middle line:85% position:50% size:75% THESE QUESTIONS, WE HOPE THESE 02:55:53.509 --> 02:55:54.510 align:middle line:85% position:50% size:65% REGIONAL EXAMPLES CAN HELP 02:55:54.577 --> 02:55:56.345 align:middle line:85% position:50% size:73% INFORM THE CONVERSATION ABOUT 02:55:56.412 --> 02:55:58.147 align:middle line:85% position:50% size:63% MITIGATION AROUND UTILITY 02:55:58.214 --> 02:55:58.881 align:middle line:85% position:50% size:50% INFRASTRUCTURE, GRID 02:55:58.948 --> 02:55:59.548 align:middle line:85% position:50% size:60% IMPROVEMENTS, VEGETATION 02:55:59.615 --> 02:56:00.583 align:middle line:85% position:50% size:70% MANAGEMENT PRESCRIBED BURNS, 02:56:00.650 --> 02:56:02.285 align:middle line:85% position:50% size:78% WHAT TOOLS HELP US GET THE MOST 02:56:02.351 --> 02:56:03.886 align:middle line:85% position:50% size:70% RETURN ON INVESTMENT FOR THE 02:56:03.953 --> 02:56:04.987 align:middle line:85% position:50% size:68% TAXPAYER TO WHERE WE'RE NOT 02:56:05.054 --> 02:56:06.756 align:middle line:85% position:50% size:70% HAVING TO HAVE AS MANY TOUGH 02:56:06.822 --> 02:56:07.790 align:middle line:85% position:50% size:63% CONVERSATIONS ON HOW THAT 02:56:07.857 --> 02:56:08.925 align:middle line:85% position:50% size:70% TRICKLES DOWN TO RATEPAYERS, 02:56:08.991 --> 02:56:10.393 align:middle line:85% position:50% size:68% BUT LOOK FORWARD TO BEING A 02:56:10.459 --> 02:56:11.327 align:middle line:85% position:50% size:78% PARTNER FOR THOSE CONVERSATIONS 02:56:11.394 --> 02:56:16.799 align:middle line:85% position:50% size:75% TO COME. THANK YOU, THANK YOU. 02:56:16.866 --> 02:56:18.334 align:middle line:85% position:50% size:78% THANK YOU, MADAM CHAIR. ANTHONY 02:56:18.401 --> 02:56:19.368 align:middle line:85% position:50% size:63% TANNEHILL WITH CALIFORNIA 02:56:19.435 --> 02:56:22.605 align:middle line:85% position:50% size:75% SPECIAL DISTRICTS ASSOCIATION, 02:56:22.672 --> 02:56:24.040 align:middle line:85% position:50% size:68% REALLY GRATEFUL FOR ALL THE 02:56:24.106 --> 02:56:25.708 align:middle line:85% position:50% size:75% WORK THE COMMITTEE HAS PUT IN. 02:56:25.775 --> 02:56:28.311 align:middle line:85% position:50% size:75% AND TO THE PRESENTERS TODAY, I 02:56:28.377 --> 02:56:31.580 align:middle line:85% position:50% size:70% JUST WANT TO SPEAK TO, AS WE 02:56:31.647 --> 02:56:33.416 align:middle line:85% position:50% size:78% YOU MOVE FORWARD TRYING TO FIND 02:56:33.482 --> 02:56:35.151 align:middle line:85% position:50% size:75% SOLUTIONS THAT THOSE SOLUTIONS 02:56:35.217 --> 02:56:37.053 align:middle line:85% position:50% size:73% DON'T SHIFT THE THE BURDEN OR 02:56:37.119 --> 02:56:39.155 align:middle line:85% position:50% size:63% THE LIABILITY ON TO OTHER 02:56:39.221 --> 02:56:42.358 align:middle line:85% position:50% size:73% PUBLIC AGENCIES THAT ARE ALSO 02:56:42.425 --> 02:56:44.327 align:middle line:85% position:50% size:78% IMPORTANT FOR HOMES TO BE BUILT 02:56:44.393 --> 02:56:46.362 align:middle line:85% position:50% size:73% TO BE FINISHED SO THAT PEOPLE 02:56:46.429 --> 02:56:48.497 align:middle line:85% position:50% size:73% CAN RECOVER AND MOVE BACK IN. 02:56:48.564 --> 02:56:50.700 align:middle line:85% position:50% size:65% THIS CAN TAKE THE SHAPE OF 02:56:50.766 --> 02:56:52.835 align:middle line:85% position:50% size:70% DIMINUTION OF VALUE OR LOSS, 02:56:52.902 --> 02:56:54.270 align:middle line:85% position:50% size:63% PROPERTY TAXES. WHEN THAT 02:56:54.337 --> 02:56:57.139 align:middle line:85% position:50% size:70% COMMUNITIES STILL NEEDING TO 02:56:57.206 --> 02:56:59.675 align:middle line:85% position:50% size:68% REBUILD. THERE'S TALK ABOUT 02:56:59.742 --> 02:57:00.676 align:middle line:85% position:50% size:63% SUBROGATION, WHICH I KNOW 02:57:00.743 --> 02:57:05.081 align:middle line:85% position:50% size:75% YOU'LL BE REVISITING TOMORROW, 02:57:05.147 --> 02:57:07.249 align:middle line:85% position:50% size:73% OR THE COSTS OF THESE SMALLER 02:57:07.316 --> 02:57:09.752 align:middle line:85% position:50% size:78% PUBLIC AGENCIES JUST RESPONDING 02:57:09.819 --> 02:57:11.654 align:middle line:85% position:50% size:73% TO THE EVENT IN REAL TIME AND 02:57:11.721 --> 02:57:14.423 align:middle line:85% position:50% size:68% THE RECOVERY AFTERWARDS. SO 02:57:14.490 --> 02:57:16.192 align:middle line:85% position:50% size:75% GRATEFUL FOR YOUR TIME AND THE 02:57:16.258 --> 02:57:17.026 align:middle line:85% position:50% size:75% OPPORTUNITY TO SHARE THAT WITH 02:57:17.093 --> 02:57:19.495 align:middle line:85% position:50% size:68% YOU, AND THAT WE KEEP THOSE 02:57:19.562 --> 02:57:20.896 align:middle line:85% position:50% size:55% ESSENTIAL SERVICES AND 02:57:20.963 --> 02:57:22.365 align:middle line:85% position:50% size:75% INFRASTRUCTURE ALSO IN MIND AS 02:57:22.431 --> 02:57:24.233 align:middle line:85% position:50% size:78% WE MOVE FORWARD. THANK YOU VERY 02:57:24.300 --> 02:57:27.770 align:middle line:85% position:50% size:80% MUCH. THANK YOU. GOOD AFTERNOON, 02:57:27.837 --> 02:57:28.838 align:middle line:85% position:50% size:70% CHAIR AND MEMBERS. THANK YOU 02:57:28.904 --> 02:57:30.606 align:middle line:85% position:50% size:73% VERY MUCH. KIM STONE OF STONE 02:57:30.673 --> 02:57:32.742 align:middle line:85% position:50% size:75% ADVOCACY ON BEHALF OF CONSUMER 02:57:32.808 --> 02:57:33.909 align:middle line:85% position:50% size:63% WATCHDOG JAMIE COURT. THE 02:57:33.976 --> 02:57:35.344 align:middle line:85% position:50% size:78% PRESIDENT OF CONSUMER WATCHDOG, 02:57:35.411 --> 02:57:38.614 align:middle line:85% position:50% size:63% HAS A STATEMENT. A CAP ON 02:57:38.681 --> 02:57:39.982 align:middle line:85% position:50% size:65% SHAREHOLDERS LIABILITY FOR 02:57:40.049 --> 02:57:41.050 align:middle line:85% position:50% size:65% FIRES THE UTILITIES CAUSED 02:57:41.117 --> 02:57:42.852 align:middle line:85% position:50% size:75% THROUGH NEGLIGENCE IS WHAT THE 02:57:42.918 --> 02:57:45.054 align:middle line:85% position:50% size:78% UTILITIES WANT. AND THAT CAP ON 02:57:45.121 --> 02:57:46.489 align:middle line:85% position:50% size:73% SHAREHOLDER LIABILITY MEANS A 02:57:46.555 --> 02:57:48.257 align:middle line:85% position:50% size:75% BIGGER BILL FOR RATEPAYERS AND 02:57:48.324 --> 02:57:50.493 align:middle line:85% position:50% size:68% FEWER BENEFITS FOR WILDFIRE 02:57:50.559 --> 02:57:52.261 align:middle line:85% position:50% size:73% SURVIVORS. WHEN THE UTILITIES 02:57:52.328 --> 02:57:53.729 align:middle line:85% position:50% size:73% CAUSE FIRES THROUGH THEIR OWN 02:57:53.796 --> 02:57:54.397 align:middle line:85% position:50% size:70% NEGLIGENCE, THEY NEED TO PAY 02:57:54.463 --> 02:57:56.165 align:middle line:85% position:50% size:60% FOR THE DAMAGE, NOT ONLY 02:57:56.232 --> 02:57:57.299 align:middle line:85% position:50% size:68% BECAUSE IT'S FAIR, BUT ALSO 02:57:57.366 --> 02:57:58.768 align:middle line:85% position:50% size:78% BECAUSE IT CREATES MORAL HAZARD 02:57:58.834 --> 02:58:02.004 align:middle line:85% position:50% size:78% IF THEY DON'T, AND THE ISSUE OF 02:58:02.071 --> 02:58:03.506 align:middle line:85% position:50% size:78% INTERCONNECTIONS AND HOOKUPS PG 02:58:03.572 --> 02:58:05.474 align:middle line:85% position:50% size:75% AND E HAS A DUTY TO SERVE, AND 02:58:05.541 --> 02:58:07.009 align:middle line:85% position:50% size:63% THAT DUTY INCLUDES MAKING 02:58:07.076 --> 02:58:09.178 align:middle line:85% position:50% size:48% TIMELY CONSTRUCTION 02:58:09.245 --> 02:58:10.613 align:middle line:85% position:50% size:63% INTERCONNECTIONS THAT THE 02:58:10.679 --> 02:58:11.814 align:middle line:85% position:50% size:75% CONSTRUCTION CUSTOMERS LARGELY 02:58:11.881 --> 02:58:14.250 align:middle line:85% position:50% size:78% PAY FOR THEMSELVES. IF PG AND E 02:58:14.316 --> 02:58:15.618 align:middle line:85% position:50% size:60% MAKES CUSTOMERS WAIT SIX 02:58:15.684 --> 02:58:17.086 align:middle line:85% position:50% size:70% ADDITIONAL MONTHS AS IT SAID 02:58:17.153 --> 02:58:18.454 align:middle line:85% position:50% size:50% THEY COULD, IT COULD 02:58:18.521 --> 02:58:19.989 align:middle line:85% position:50% size:70% POTENTIALLY BE VIOLATING ITS 02:58:20.056 --> 02:58:22.158 align:middle line:85% position:50% size:78% DUTY TO SERVE. THAT WOULD MEAN, 02:58:22.224 --> 02:58:24.226 align:middle line:85% position:50% size:75% UNDER PUC PRECEDENT, THAT THEY 02:58:24.293 --> 02:58:26.028 align:middle line:85% position:50% size:70% WOULD NOT THEN BE ALLOWED TO 02:58:26.095 --> 02:58:27.863 align:middle line:85% position:50% size:75% UPSTREAM DIVIDENDS BACK TO THE 02:58:27.930 --> 02:58:28.998 align:middle line:85% position:50% size:60% HOLDING COMPANY, AND THE 02:58:29.065 --> 02:58:30.032 align:middle line:85% position:50% size:73% HOLDING COMPANY WOULD HAVE TO 02:58:30.099 --> 02:58:32.902 align:middle line:85% position:50% size:60% FINANCE THE SERVICES. IF 02:58:32.968 --> 02:58:35.104 align:middle line:85% position:50% size:75% THERE'S A FOUR MONTH DELAY NOW 02:58:35.171 --> 02:58:38.307 align:middle line:85% position:50% size:70% AND AND AN ADDITIONAL 1 TO 6 02:58:38.374 --> 02:58:39.742 align:middle line:85% position:50% size:68% MONTHS DELAY, THAT WOULD GO 02:58:39.809 --> 02:58:43.012 align:middle line:85% position:50% size:78% BEYOND WHAT THE PUC HAS SAID AS 02:58:43.079 --> 02:58:46.949 align:middle line:85% position:50% size:70% A ACCEPTABLE DELAY, AND THEY 02:58:47.016 --> 02:58:48.684 align:middle line:85% position:50% size:73% WOULD BE AT RISK OF NOT BEING 02:58:48.751 --> 02:58:50.219 align:middle line:85% position:50% size:73% ABLE TO ISSUE DIVIDENDS. THIS 02:58:50.286 --> 02:58:52.388 align:middle line:85% position:50% size:75% IS PURE BAILOUT BLACKMAIL, AND 02:58:52.455 --> 02:58:54.390 align:middle line:85% position:50% size:78% CALIFORNIANS IN THE LEGISLATURE 02:58:54.457 --> 02:58:55.324 align:middle line:85% position:50% size:70% SHOULDN'T FALL FOR IT. THANK 02:58:55.391 --> 02:58:59.628 align:middle line:85% position:50% size:78% YOU, THANK YOU. GOOD AFTERNOON, 02:58:59.695 --> 02:59:00.796 align:middle line:85% position:50% size:78% CHAIR AND MEMBERS SARAH BRENNAN 02:59:00.863 --> 02:59:01.931 align:middle line:85% position:50% size:63% WITH THE WHITMAN GROUP ON 02:59:01.997 --> 02:59:03.466 align:middle line:85% position:50% size:63% BEHALF OF EXTREME WEATHER 02:59:03.532 --> 02:59:04.633 align:middle line:85% position:50% size:63% SURVIVORS. AT LAST WEEK'S 02:59:04.700 --> 02:59:06.035 align:middle line:85% position:50% size:70% OVERSIGHT HEARING ON UTILITY 02:59:06.102 --> 02:59:08.170 align:middle line:85% position:50% size:70% WILDFIRE SAFETY, MANY VOICES 02:59:08.237 --> 02:59:09.839 align:middle line:85% position:50% size:70% SEEM TO AGREE ON THE ROOT OF 02:59:09.905 --> 02:59:10.940 align:middle line:85% position:50% size:68% THE PROBLEM THE OFFICE, THE 02:59:11.006 --> 02:59:12.508 align:middle line:85% position:50% size:78% OFFICE OF ENERGY INFRASTRUCTURE 02:59:12.575 --> 02:59:14.009 align:middle line:85% position:50% size:78% SAFETY SAID THAT WEATHER DRIVEN 02:59:14.076 --> 02:59:15.411 align:middle line:85% position:50% size:63% RISK IS RISING BECAUSE OF 02:59:15.478 --> 02:59:16.412 align:middle line:85% position:50% size:75% CLIMATE CHANGE, AND THAT WE'RE 02:59:16.479 --> 02:59:19.081 align:middle line:85% position:50% size:75% IN A RACE TO KEEP UP. THE P. A 02:59:19.148 --> 02:59:20.182 align:middle line:85% position:50% size:63% POINTED OUT THAT THE SAME 02:59:20.249 --> 02:59:21.283 align:middle line:85% position:50% size:75% EQUIPMENT HAS BEEN ON OUR GRID 02:59:21.350 --> 02:59:22.651 align:middle line:85% position:50% size:73% FOR DECADES, YET CATASTROPHIC 02:59:22.718 --> 02:59:24.787 align:middle line:85% position:50% size:78% FIRES HAVE LARGELY OR LARGELY A 02:59:24.854 --> 02:59:26.889 align:middle line:85% position:50% size:80% PHENOMENON OF THE LAST 20 YEARS. 02:59:26.956 --> 02:59:28.357 align:middle line:85% position:50% size:70% TURKEY'S PUBLIC UTILITY SAID 02:59:28.424 --> 02:59:29.792 align:middle line:85% position:50% size:73% PLAINLY THAT IT IS PAYING THE 02:59:29.859 --> 02:59:31.026 align:middle line:85% position:50% size:78% SOCIETAL COST OF CLIMATE CHANGE 02:59:31.093 --> 02:59:32.628 align:middle line:85% position:50% size:70% AND ITS CRUSHING RATES. THIS 02:59:32.695 --> 02:59:34.430 align:middle line:85% position:50% size:75% PROBLEM IS GOING TO GET WORSE. 02:59:34.497 --> 02:59:35.931 align:middle line:85% position:50% size:68% TODAY, YOU'RE EXAMINING THE 02:59:35.998 --> 02:59:37.366 align:middle line:85% position:50% size:78% FINANCIAL STRAIN OF THE CLIMATE 02:59:37.433 --> 02:59:39.101 align:middle line:85% position:50% size:75% CRISIS IS PUTTING ON UTILITIES 02:59:39.168 --> 02:59:40.936 align:middle line:85% position:50% size:80% AND CALIFORNIANS AT EVERY LEVEL. 02:59:41.003 --> 02:59:42.738 align:middle line:85% position:50% size:70% YET WE HAVE NOT EXAMINED THE 02:59:42.805 --> 02:59:44.206 align:middle line:85% position:50% size:73% KNOWING ROLE THAT OIL AND GAS 02:59:44.273 --> 02:59:45.608 align:middle line:85% position:50% size:65% INDUSTRY PLAYED IN DRIVING 02:59:45.674 --> 02:59:47.810 align:middle line:85% position:50% size:73% CLIMATE CHANGE, OR THE FISCAL 02:59:47.877 --> 02:59:48.811 align:middle line:85% position:50% size:73% RESPONSIBILITY THAT IT SHOULD 02:59:48.878 --> 02:59:51.480 align:middle line:85% position:50% size:73% BEAR IN THIS EQUATION. THE SB 02:59:51.547 --> 02:59:53.249 align:middle line:85% position:50% size:75% 254 STUDY FOUND THAT WHILE THE 02:59:53.315 --> 02:59:55.084 align:middle line:85% position:50% size:70% WILDFIRE FUND NEEDS ABOUT 36 02:59:55.151 --> 02:59:56.485 align:middle line:85% position:50% size:78% BILLION TO STAY SOLVENT FOR THE 02:59:56.552 --> 02:59:59.321 align:middle line:85% position:50% size:73% NEXT 20 YEARS, RATEPAYERS AND 02:59:59.388 --> 03:00:00.923 align:middle line:85% position:50% size:68% POLICYHOLDERS CANNOT CANNOT 03:00:00.990 --> 03:00:02.158 align:middle line:85% position:50% size:55% FILL THAT GAP. ANOTHER 03:00:02.224 --> 03:00:03.359 align:middle line:85% position:50% size:73% CONTRIBUTOR IS NEEDED TO COME 03:00:03.425 --> 03:00:05.127 align:middle line:85% position:50% size:70% TO THE TABLE IN A MEANINGFUL 03:00:05.194 --> 03:00:06.762 align:middle line:85% position:50% size:75% WAY. WE URGE THIS COMMITTEE TO 03:00:06.829 --> 03:00:07.963 align:middle line:85% position:50% size:53% MAKE THAT PART OF THE 03:00:08.030 --> 03:00:09.698 align:middle line:85% position:50% size:75% CONVERSATION. THANK YOU, THANK 03:00:09.765 --> 03:00:14.036 align:middle line:85% position:50% size:65% YOU. GOOD AFTERNOON, MADAM 03:00:14.103 --> 03:00:16.639 align:middle line:85% position:50% size:78% CHAIR AND MEMBERS, ON BEHALF OF 03:00:16.705 --> 03:00:17.673 align:middle line:85% position:50% size:68% THE CALIFORNIA COALITION OF 03:00:17.740 --> 03:00:19.141 align:middle line:85% position:50% size:70% LARGE ENERGY USERS, I WASN'T 03:00:19.208 --> 03:00:20.242 align:middle line:85% position:50% size:68% REALLY PLANNING ON SPEAKING 03:00:20.309 --> 03:00:21.911 align:middle line:85% position:50% size:75% TODAY, BUT THIS CAME UP ON THE 03:00:21.977 --> 03:00:24.513 align:middle line:85% position:50% size:75% DELAYS FOR ENERGIZATION. AND A 03:00:24.580 --> 03:00:25.948 align:middle line:85% position:50% size:65% LOT OF TIMES THE DELAYS IN 03:00:26.015 --> 03:00:27.383 align:middle line:85% position:50% size:70% ENERGIZATION ARE DUE TO JUST 03:00:27.449 --> 03:00:28.884 align:middle line:85% position:50% size:58% GRID CAPACITY NOT BEING 03:00:28.951 --> 03:00:30.286 align:middle line:85% position:50% size:73% SUFFICIENT IN A GIVEN AREA TO 03:00:30.352 --> 03:00:31.787 align:middle line:85% position:50% size:73% SERVE THE LOAD THAT IS TRYING 03:00:31.854 --> 03:00:32.821 align:middle line:85% position:50% size:53% TO INTERCONNECT THEIR 03:00:32.888 --> 03:00:34.223 align:middle line:85% position:50% size:58% CONSTRAINTS UPSTREAM IN 03:00:34.290 --> 03:00:34.990 align:middle line:85% position:50% size:53% TRANSMISSION OR LOCAL 03:00:35.057 --> 03:00:36.292 align:middle line:85% position:50% size:70% CONSTRAINTS CAN LEAD TO THIS 03:00:36.358 --> 03:00:37.860 align:middle line:85% position:50% size:65% KIND OF ISSUE. IT WOULD BE 03:00:37.927 --> 03:00:39.962 align:middle line:85% position:50% size:58% REALLY HELPFUL TO ALLOW 03:00:40.029 --> 03:00:41.030 align:middle line:85% position:50% size:65% CUSTOMERS TO JUST PUT SOME 03:00:41.096 --> 03:00:43.265 align:middle line:85% position:50% size:78% BATTERIES AND SOLAR ON SITE AND 03:00:43.332 --> 03:00:45.067 align:middle line:85% position:50% size:78% REDUCE THEIR PEAK, REDUCE THEIR 03:00:45.134 --> 03:00:46.468 align:middle line:85% position:50% size:68% OVERALL NEED, AND COMMIT TO 03:00:46.535 --> 03:00:47.937 align:middle line:85% position:50% size:78% NEVER TAKING MORE THAN, I DON'T 03:00:48.003 --> 03:00:50.005 align:middle line:85% position:50% size:78% KNOW, LIKE 70% OF THEIR LOAD SO 03:00:50.072 --> 03:00:51.507 align:middle line:85% position:50% size:78% THAT THEY CAN BE INTERCONNECTED 03:00:51.574 --> 03:00:52.942 align:middle line:85% position:50% size:70% FASTER. AND THAT'S SOMETHING 03:00:53.008 --> 03:00:53.976 align:middle line:85% position:50% size:60% THAT THE LEGISLATURE CAN 03:00:54.043 --> 03:00:55.344 align:middle line:85% position:50% size:75% EXPLORE AND THAT WE WOULD LOVE 03:00:55.411 --> 03:00:56.645 align:middle line:85% position:50% size:78% TO HAVE A CONVERSATION WITH YOU 03:00:56.712 --> 03:00:58.347 align:middle line:85% position:50% size:75% OVER THE NEXT YEAR. THANK YOU, 03:00:58.414 --> 03:01:01.951 align:middle line:85% position:50% size:68% THANK YOU. THANK YOU, MADAM 03:01:02.017 --> 03:01:03.319 align:middle line:85% position:50% size:73% CHAIR AND MEMBERS. MY NAME IS 03:01:03.385 --> 03:01:05.254 align:middle line:85% position:50% size:78% DAN JACOBSON, SENIOR ADVISOR TO 03:01:05.321 --> 03:01:07.022 align:middle line:85% position:50% size:65% ENVIRONMENT CALIFORNIA. WE 03:01:07.089 --> 03:01:09.124 align:middle line:85% position:50% size:65% SPONSORED SB 106. AND YOU, 03:01:09.191 --> 03:01:11.026 align:middle line:85% position:50% size:78% MADAM CHAIR, WERE THE AUTHOR OF 03:01:11.093 --> 03:01:13.829 align:middle line:85% position:50% size:65% AB 2779. SO I WANT TO TALK 03:01:13.896 --> 03:01:15.431 align:middle line:85% position:50% size:70% ABOUT A PIECE OF THE PROBLEM 03:01:15.497 --> 03:01:16.665 align:middle line:85% position:50% size:75% THAT WE CAN START FIXING RIGHT 03:01:16.732 --> 03:01:18.167 align:middle line:85% position:50% size:73% NOW IN YOUR BACKGROUND PAPER, 03:01:18.234 --> 03:01:19.969 align:middle line:85% position:50% size:78% WHICH WAS GREAT, MAKES THE MATH 03:01:20.035 --> 03:01:22.838 align:middle line:85% position:50% size:78% REALLY EASY TO UNDERSTAND IF WE 03:01:22.905 --> 03:01:24.873 align:middle line:85% position:50% size:75% HAVE TO, IF WE NEED $1 BILLION 03:01:24.940 --> 03:01:27.509 align:middle line:85% position:50% size:70% TO BUILD A PROJECT, IT COSTS 03:01:27.576 --> 03:01:28.978 align:middle line:85% position:50% size:75% $2.9 BILLION TO PAY THAT BACK, 03:01:29.044 --> 03:01:31.447 align:middle line:85% position:50% size:70% WHICH $1 BILLION IS GOING TO 03:01:31.513 --> 03:01:33.282 align:middle line:85% position:50% size:60% THE SHAREHOLDERS. SO THE 03:01:33.349 --> 03:01:34.717 align:middle line:85% position:50% size:75% PROJECTS THAT WE DON'T HAVE TO 03:01:34.783 --> 03:01:35.851 align:middle line:85% position:50% size:68% BUILD ARE THE PROJECTS THAT 03:01:35.918 --> 03:01:37.419 align:middle line:85% position:50% size:75% REALLY MAKE THE MOST AMOUNT OF 03:01:37.486 --> 03:01:39.421 align:middle line:85% position:50% size:73% SENSE FOR US AND WHAT WE SAW, 03:01:39.488 --> 03:01:41.624 align:middle line:85% position:50% size:73% AND THE ADVANCED TRANSMISSION 03:01:41.690 --> 03:01:42.358 align:middle line:85% position:50% size:73% TECHNOLOGIES, OR THE JETS, AS 03:01:42.424 --> 03:01:43.792 align:middle line:85% position:50% size:75% THEY'RE OFTEN REFERRED TO, ARE 03:01:43.859 --> 03:01:45.261 align:middle line:85% position:50% size:75% SOME OF THE THINGS THAT WE CAN 03:01:45.327 --> 03:01:46.595 align:middle line:85% position:50% size:73% START TO IMPLEMENT RIGHT NOW. 03:01:46.662 --> 03:01:49.231 align:middle line:85% position:50% size:70% THE SB 1006 REPORT THAT CAME 03:01:49.298 --> 03:01:51.667 align:middle line:85% position:50% size:73% OUT EARLIER THIS YEAR, WE SAW 03:01:51.734 --> 03:01:53.435 align:middle line:85% position:50% size:75% THAT THE IOUS WANTED TO INVEST 03:01:53.502 --> 03:01:55.237 align:middle line:85% position:50% size:70% MONEY IN BOTH GRID ENHANCING 03:01:55.304 --> 03:01:56.672 align:middle line:85% position:50% size:63% TECHNOLOGIES AND ADVANCED 03:01:56.739 --> 03:01:58.140 align:middle line:85% position:50% size:73% CONDUCTORS. UNFORTUNATELY, AT 03:01:58.207 --> 03:01:59.775 align:middle line:85% position:50% size:68% ONE OF THE RATE HEARINGS IN 03:01:59.842 --> 03:02:01.010 align:middle line:85% position:50% size:68% FRONT OF THE PUC, THEY WERE 03:02:01.076 --> 03:02:02.811 align:middle line:85% position:50% size:60% ENCOURAGED TO DO A PILOT 03:02:02.878 --> 03:02:04.013 align:middle line:85% position:50% size:70% PROGRAM. NOW A PILOT PROGRAM 03:02:04.079 --> 03:02:05.281 align:middle line:85% position:50% size:70% FOR TECHNOLOGY THAT HAS BEEN 03:02:05.347 --> 03:02:06.415 align:middle line:85% position:50% size:68% AROUND FOR TEN YEARS REALLY 03:02:06.482 --> 03:02:08.017 align:middle line:85% position:50% size:68% MAKES NO SENSE. SO HOW DOES 03:02:08.083 --> 03:02:09.318 align:middle line:85% position:50% size:68% THIS FIT IN WITH WHAT WE'RE 03:02:09.385 --> 03:02:11.086 align:middle line:85% position:50% size:68% TALKING ABOUT TODAY? ONE IS 03:02:11.153 --> 03:02:12.221 align:middle line:85% position:50% size:68% THAT THE LESS MONEY THAT WE 03:02:12.288 --> 03:02:14.089 align:middle line:85% position:50% size:68% NEED TO BORROW IS, THE LESS 03:02:14.156 --> 03:02:15.224 align:middle line:85% position:50% size:68% MONEY THAT WE NEED TO RAISE 03:02:15.291 --> 03:02:17.126 align:middle line:85% position:50% size:70% THAT WE NEED TO PUT ONTO THE 03:02:17.192 --> 03:02:18.260 align:middle line:85% position:50% size:73% RATEPAYERS. TWO IS THAT THESE 03:02:18.327 --> 03:02:19.762 align:middle line:85% position:50% size:63% TECHNOLOGIES HELP US MOVE 03:02:19.828 --> 03:02:21.497 align:middle line:85% position:50% size:75% ELECTRICITY AROUND FASTER, AND 03:02:21.563 --> 03:02:23.299 align:middle line:85% position:50% size:75% THREE IS THAT THEY CAN HELP US 03:02:23.365 --> 03:02:24.933 align:middle line:85% position:50% size:70% REDUCE THE RISK OF WILDFIRE. 03:02:25.000 --> 03:02:26.802 align:middle line:85% position:50% size:73% NOW, I WANT TO BE CLEAR, THEY 03:02:26.869 --> 03:02:27.903 align:middle line:85% position:50% size:78% DON'T SOLVE THAT PROBLEM IN THE 03:02:27.970 --> 03:02:29.004 align:middle line:85% position:50% size:60% ISSUES THAT YOU GUYS ARE 03:02:29.071 --> 03:02:30.806 align:middle line:85% position:50% size:68% TALKING ABOUT HERE ARE MUCH 03:02:30.873 --> 03:02:31.940 align:middle line:85% position:50% size:73% GREATER. BUT THIS IS A SIMPLE 03:02:32.007 --> 03:02:33.809 align:middle line:85% position:50% size:73% SOLUTION THAT WE CAN TAKE AND 03:02:33.876 --> 03:02:34.943 align:middle line:85% position:50% size:78% WE CAN IMPLEMENT RIGHT NOW. AND 03:02:35.010 --> 03:02:36.879 align:middle line:85% position:50% size:73% SO A COUPLE OF THINGS I'D ASK 03:02:36.945 --> 03:02:38.013 align:middle line:85% position:50% size:75% THE COMMITTEE TO LOOK AT FIRST 03:02:38.080 --> 03:02:39.782 align:middle line:85% position:50% size:55% IS THAT WE REQUIRE THE 03:02:39.848 --> 03:02:40.949 align:middle line:85% position:50% size:78% UTILITIES TO TAKE SOME OF THESE 03:02:41.016 --> 03:02:42.785 align:middle line:85% position:50% size:75% PROJECTS ALL THE WAY TO SCALE, 03:02:42.851 --> 03:02:44.987 align:middle line:85% position:50% size:73% AND TWO IS TO ASK THE PUC AND 03:02:45.054 --> 03:02:47.222 align:middle line:85% position:50% size:78% THE CAISO TO SAY, WAIT, INSTEAD 03:02:47.289 --> 03:02:48.891 align:middle line:85% position:50% size:68% OF JUST APPROVING THESE NEW 03:02:48.957 --> 03:02:50.125 align:middle line:85% position:50% size:78% TRANSMISSION PROJECTS AND THESE 03:02:50.192 --> 03:02:51.860 align:middle line:85% position:50% size:75% NEW DISTRIBUTION PROJECTS, CAN 03:02:51.927 --> 03:02:53.929 align:middle line:85% position:50% size:73% WE DO A SIDE BY SIDE ANALYSIS 03:02:53.996 --> 03:02:55.431 align:middle line:85% position:50% size:78% OF THE MONEY THAT WE WOULD SAVE 03:02:55.497 --> 03:02:57.132 align:middle line:85% position:50% size:48% IF WE USE THESE NEW 03:02:57.199 --> 03:02:58.967 align:middle line:85% position:50% size:70% TECHNOLOGIES? THANK YOU VERY 03:02:59.034 --> 03:03:02.871 align:middle line:85% position:50% size:80% MUCH. THANK YOU. GOOD AFTERNOON, 03:03:02.938 --> 03:03:05.107 align:middle line:85% position:50% size:78% CHAIR PETRIE-NORRIS AND MEMBER. 03:03:05.174 --> 03:03:07.609 align:middle line:85% position:50% size:78% REALLY EXCELLENT HEARING TODAY. 03:03:07.676 --> 03:03:08.677 align:middle line:85% position:50% size:63% OBVIOUSLY, THIS IS A VERY 03:03:08.744 --> 03:03:10.145 align:middle line:85% position:50% size:73% IMPORTANT ISSUE. I WOULD LIKE 03:03:10.212 --> 03:03:11.847 align:middle line:85% position:50% size:73% TO ADD TO THE CHORUS OF KUDOS 03:03:11.914 --> 03:03:12.915 align:middle line:85% position:50% size:70% ON THE BACKGROUND PAPER. YOU 03:03:12.981 --> 03:03:14.750 align:middle line:85% position:50% size:80% GUYS DID AN EXCELLENT JOB THERE. 03:03:14.817 --> 03:03:16.151 align:middle line:85% position:50% size:70% YOU KNOW, I THINK WHAT TODAY 03:03:16.218 --> 03:03:17.386 align:middle line:85% position:50% size:78% HIGHLIGHTS IS THAT WE'RE ASKING 03:03:17.453 --> 03:03:19.455 align:middle line:85% position:50% size:80% OUR ELECTRIC SYSTEM TO DO A LOT, 03:03:19.521 --> 03:03:21.223 align:middle line:85% position:50% size:75% RIGHT? IT NEEDS TO SUPPORT NEW 03:03:21.290 --> 03:03:23.058 align:middle line:85% position:50% size:63% HOUSING, ECONOMIC GROWTH, 03:03:23.125 --> 03:03:24.827 align:middle line:85% position:50% size:60% ADVANCE ELECTRIFICATION, 03:03:24.893 --> 03:03:26.362 align:middle line:85% position:50% size:75% STRENGTHEN WILDFIRE SAFETY AND 03:03:26.428 --> 03:03:27.796 align:middle line:85% position:50% size:73% KEEP SERVICE AFFORDABLE, SAFE 03:03:27.863 --> 03:03:30.999 align:middle line:85% position:50% size:73% AND RELIABLE. THOSE GOALS CAN 03:03:31.066 --> 03:03:32.801 align:middle line:85% position:50% size:73% CREATE COMPETING DEMANDS, AND 03:03:32.868 --> 03:03:34.570 align:middle line:85% position:50% size:58% ACHIEVING THEM REQUIRES 03:03:34.636 --> 03:03:35.270 align:middle line:85% position:50% size:68% SUBSTANTIAL INVESTMENTS AND 03:03:35.337 --> 03:03:36.805 align:middle line:85% position:50% size:68% GREATER CONSISTENCY BETWEEN 03:03:36.872 --> 03:03:38.574 align:middle line:85% position:50% size:78% WHAT STATE POLICY REQUIRES, HOW 03:03:38.640 --> 03:03:40.743 align:middle line:85% position:50% size:78% WE FIND FINANCE IT, AND WHAT WE 03:03:40.809 --> 03:03:42.845 align:middle line:85% position:50% size:65% EXPECT CUSTOMERS TO PAY. A 03:03:42.911 --> 03:03:45.013 align:middle line:85% position:50% size:75% BACKGROUNDER DESCRIBES ROUGHLY 03:03:45.080 --> 03:03:46.482 align:middle line:85% position:50% size:78% $125 BILLION IN PLANNED UTILITY 03:03:46.548 --> 03:03:47.516 align:middle line:85% position:50% size:73% INVESTMENT OVER THE NEXT FIVE 03:03:47.583 --> 03:03:49.385 align:middle line:85% position:50% size:73% YEARS. FOR BUSINESSES. THAT'S 03:03:49.451 --> 03:03:50.419 align:middle line:85% position:50% size:58% INFRASTRUCTURE THAT CAN 03:03:50.486 --> 03:03:51.487 align:middle line:85% position:50% size:75% DETERMINE WHETHER AN EXPANSION 03:03:51.553 --> 03:03:53.455 align:middle line:85% position:50% size:78% MOVES FORWARD OR A NEW FACILITY 03:03:53.522 --> 03:03:55.391 align:middle line:85% position:50% size:65% CAN OPEN FOR CUSTOMERS. IT 03:03:55.457 --> 03:03:56.992 align:middle line:85% position:50% size:78% REPRESENTS COSTS THAT THEY WILL 03:03:57.059 --> 03:03:59.094 align:middle line:85% position:50% size:53% PAY OVER DECADES. THE 03:03:59.161 --> 03:04:00.129 align:middle line:85% position:50% size:70% ACCUMULATION OF STATE POLICY 03:04:00.195 --> 03:04:01.897 align:middle line:85% position:50% size:70% COSTS ON RATEPAYER BILLS HAS 03:04:01.964 --> 03:04:04.099 align:middle line:85% position:50% size:70% CONTRIBUTED SIGNIFICANTLY TO 03:04:04.166 --> 03:04:05.567 align:middle line:85% position:50% size:65% CALIFORNIA'S AFFORDABILITY 03:04:05.634 --> 03:04:06.835 align:middle line:85% position:50% size:75% CHALLENGE. BLUE SKY CONSULTING 03:04:06.902 --> 03:04:08.737 align:middle line:85% position:50% size:55% GROUP HAS ANALYZED HOW 03:04:08.804 --> 03:04:09.838 align:middle line:85% position:50% size:75% RATEPAYER BILLS AND FOUND THAT 03:04:09.905 --> 03:04:12.408 align:middle line:85% position:50% size:58% NEARLY 30% OF A TYPICAL 03:04:12.474 --> 03:04:14.877 align:middle line:85% position:50% size:58% RESIDENTIAL IOU BILL IS 03:04:14.943 --> 03:04:16.311 align:middle line:85% position:50% size:70% ATTRIBUTABLE TO STATE POLICY 03:04:16.378 --> 03:04:17.379 align:middle line:85% position:50% size:60% RELATED COSTS, INCLUDING 03:04:17.446 --> 03:04:19.548 align:middle line:85% position:50% size:75% WILDFIRE SPEND. WE APPRECIATED 03:04:19.615 --> 03:04:20.983 align:middle line:85% position:50% size:65% TODAY'S HEARING BECAUSE WE 03:04:21.049 --> 03:04:22.818 align:middle line:85% position:50% size:73% SHOULD BE REGULARLY EXAMINING 03:04:22.885 --> 03:04:24.987 align:middle line:85% position:50% size:65% WHETHER THESE REQUIREMENTS 03:04:25.053 --> 03:04:27.122 align:middle line:85% position:50% size:78% REMAIN COST EFFECTIVE, HOW THEY 03:04:27.189 --> 03:04:28.924 align:middle line:85% position:50% size:68% INTERACT, AND WHETHER COSTS 03:04:28.991 --> 03:04:30.759 align:middle line:85% position:50% size:63% SERVING BROADER STATEWIDE 03:04:30.826 --> 03:04:32.161 align:middle line:85% position:50% size:68% PRIORITIES SHOULD BE FUNDED 03:04:32.227 --> 03:04:34.329 align:middle line:85% position:50% size:78% ENTIRELY THROUGH RATES. WE ALSO 03:04:34.396 --> 03:04:35.798 align:middle line:85% position:50% size:48% CANNOT EVALUATE THE 03:04:35.864 --> 03:04:37.566 align:middle line:85% position:50% size:75% AFFORDABILITY OF AN INVESTMENT 03:04:37.633 --> 03:04:38.634 align:middle line:85% position:50% size:78% REQUIREMENT SEPARATELY FROM THE 03:04:38.700 --> 03:04:39.668 align:middle line:85% position:50% size:55% CONDITIONS UNDER WHICH 03:04:39.735 --> 03:04:41.870 align:middle line:85% position:50% size:65% UTILITIES MUST FINANCE IT, 03:04:41.937 --> 03:04:44.072 align:middle line:85% position:50% size:73% POLICY UNCERTAINTY AND HIGHER 03:04:44.139 --> 03:04:45.474 align:middle line:85% position:50% size:60% FINANCING COSTS INCREASE 03:04:45.541 --> 03:04:47.609 align:middle line:85% position:50% size:70% CUSTOMER BILLS AND DELAY THE 03:04:47.676 --> 03:04:48.610 align:middle line:85% position:50% size:75% INFRASTRUCTURE OUR OTHER GOALS 03:04:48.677 --> 03:04:50.546 align:middle line:85% position:50% size:55% DEPEND ON. WE URGE THE 03:04:50.612 --> 03:04:51.947 align:middle line:85% position:50% size:50% LEGISLATURE TO ALIGN 03:04:52.014 --> 03:04:53.348 align:middle line:85% position:50% size:75% CALIFORNIA'S POLICY AMBITIONS, 03:04:53.415 --> 03:04:54.516 align:middle line:85% position:50% size:68% INVESTMENT REQUIREMENTS AND 03:04:54.583 --> 03:04:55.884 align:middle line:85% position:50% size:70% AFFORDABILITY COMMITMENTS SO 03:04:55.951 --> 03:04:57.719 align:middle line:85% position:50% size:68% BUSINESSES AND FAMILIES CAN 03:04:57.786 --> 03:05:00.155 align:middle line:85% position:50% size:70% SUCCEED IN CALIFORNIA. THANK 03:05:00.222 --> 03:05:04.927 align:middle line:85% position:50% size:73% YOU, THANK YOU. HI THERE. I'M 03:05:04.993 --> 03:05:06.395 align:middle line:85% position:50% size:73% TINA AND I'M WITH THE UTILITY 03:05:06.462 --> 03:05:08.530 align:middle line:85% position:50% size:78% WILDFIRE SURVIVORS COALITION. I 03:05:08.597 --> 03:05:10.399 align:middle line:85% position:50% size:73% WAS HERE A FEW MONTHS AGO FOR 03:05:10.466 --> 03:05:13.202 align:middle line:85% position:50% size:75% AN INFORMATIONAL HEARING ON SB 03:05:13.268 --> 03:05:15.370 align:middle line:85% position:50% size:65% 254. AND BACK THEN, IT WAS 03:05:15.437 --> 03:05:16.839 align:middle line:85% position:50% size:58% MENTIONED THAT PGE PAYS 03:05:16.905 --> 03:05:19.675 align:middle line:85% position:50% size:75% BILLIONS IN LITIGATION. SO WHY 03:05:19.741 --> 03:05:21.443 align:middle line:85% position:50% size:65% DO WE CONTINUE TO ACCEPT A 03:05:21.510 --> 03:05:23.278 align:middle line:85% position:50% size:50% SYSTEM WHERE UTILITY 03:05:23.345 --> 03:05:24.413 align:middle line:85% position:50% size:78% CORPORATIONS CAN SPEND ENORMOUS 03:05:24.480 --> 03:05:26.548 align:middle line:85% position:50% size:73% AMOUNTS OF MONEY FIGHTING THE 03:05:26.615 --> 03:05:27.583 align:middle line:85% position:50% size:68% RESPONSIBILITIES, YET WE'RE 03:05:27.649 --> 03:05:28.851 align:middle line:85% position:50% size:78% STILL DISCUSSING HOW TO PROTECT 03:05:28.917 --> 03:05:32.621 align:middle line:85% position:50% size:73% THEIR FINANCIAL INTERESTS. AB 03:05:32.688 --> 03:05:35.491 align:middle line:85% position:50% size:75% 2700 MATTERS BECAUSE IT'S MUCH 03:05:35.557 --> 03:05:37.726 align:middle line:85% position:50% size:50% BIGGER THAN SURVIVOR 03:05:37.793 --> 03:05:39.127 align:middle line:85% position:50% size:78% COMPENSATION. IT'S ABOUT ALL OF 03:05:39.194 --> 03:05:41.263 align:middle line:85% position:50% size:65% US GETTING OUR POWER BACK. 03:05:41.330 --> 03:05:42.764 align:middle line:85% position:50% size:65% LEGISLATION HAS THIS GREAT 03:05:42.831 --> 03:05:44.566 align:middle line:85% position:50% size:43% CHANCE TO RESTORE 03:05:44.633 --> 03:05:45.634 align:middle line:85% position:50% size:68% ACCOUNTABILITY AND CHANGE A 03:05:45.701 --> 03:05:47.002 align:middle line:85% position:50% size:60% SYSTEM IN WHICH POWERFUL 03:05:47.069 --> 03:05:48.504 align:middle line:85% position:50% size:63% UTILITY CORPORATIONS HAVE 03:05:48.570 --> 03:05:50.339 align:middle line:85% position:50% size:58% ENORMOUS INFLUENCE OVER 03:05:50.405 --> 03:05:52.474 align:middle line:85% position:50% size:73% DECISIONS THAT AFFECT US ALL. 03:05:52.541 --> 03:05:54.209 align:middle line:85% position:50% size:70% MY ASK IS THAT IF THERE IS A 03:05:54.276 --> 03:05:56.345 align:middle line:85% position:50% size:60% SPECIAL SESSION THAT YOU 03:05:56.411 --> 03:05:58.780 align:middle line:85% position:50% size:75% CONSIDER THIS. HOW MUCH IS PGD 03:05:58.847 --> 03:06:00.148 align:middle line:85% position:50% size:75% WILLING TO SPEND ON LAWYERS TO 03:06:00.215 --> 03:06:01.984 align:middle line:85% position:50% size:60% AVOID COMPENSATING THEIR 03:06:02.050 --> 03:06:03.452 align:middle line:85% position:50% size:78% VICTIMS? BECAUSE THIS IS ALWAYS 03:06:03.519 --> 03:06:05.254 align:middle line:85% position:50% size:75% ALL ABOUT THE MONEY. THANK YOU 03:06:05.320 --> 03:06:11.326 align:middle line:85% position:50% size:60% SO MUCH. THANK YOU. GOOD 03:06:11.393 --> 03:06:12.794 align:middle line:85% position:50% size:78% AFTERNOON, CHAIR AND MEMBER. MY 03:06:12.861 --> 03:06:14.096 align:middle line:85% position:50% size:63% NAME IS BROOKE ROSE AND I 03:06:14.162 --> 03:06:15.030 align:middle line:85% position:50% size:55% REPRESENT THE WILDFIRE 03:06:15.097 --> 03:06:16.398 align:middle line:85% position:50% size:55% SOLUTIONS COALITION, A 03:06:16.465 --> 03:06:17.799 align:middle line:85% position:50% size:73% MULTI-SECTOR ALLIANCE OF OVER 03:06:17.866 --> 03:06:20.002 align:middle line:85% position:50% size:68% 95 ORGANIZATIONS ALL ACROSS 03:06:20.068 --> 03:06:21.103 align:middle line:85% position:50% size:68% CALIFORNIA WORKING TO SCALE 03:06:21.169 --> 03:06:22.471 align:middle line:85% position:50% size:78% FUNDING FOR WILDFIRE MITIGATION 03:06:22.538 --> 03:06:24.673 align:middle line:85% position:50% size:78% FROM STATE, LOCAL, FEDERAL, AND 03:06:24.740 --> 03:06:26.842 align:middle line:85% position:50% size:58% PRIVATE SOURCES. AS THE 03:06:26.909 --> 03:06:28.210 align:middle line:85% position:50% size:75% LEGISLATURE CONSIDERS WILDFIRE 03:06:28.277 --> 03:06:29.878 align:middle line:85% position:50% size:78% RISK AND LIABILITY, WE URGE YOU 03:06:29.945 --> 03:06:31.346 align:middle line:85% position:50% size:63% TO REMEMBER THAT THE MOST 03:06:31.413 --> 03:06:32.581 align:middle line:85% position:50% size:68% EFFECTIVE WAY TO REDUCE THE 03:06:32.648 --> 03:06:34.316 align:middle line:85% position:50% size:60% OVERALL COST OF WILDFIRE 03:06:34.383 --> 03:06:35.817 align:middle line:85% position:50% size:75% DISASTERS IS TO REDUCE RISK IN 03:06:35.884 --> 03:06:38.020 align:middle line:85% position:50% size:78% OUR LANDSCAPES AND COMMUNITIES. 03:06:38.086 --> 03:06:40.122 align:middle line:85% position:50% size:58% AS THE LOVELY COMMITTEE 03:06:40.188 --> 03:06:41.557 align:middle line:85% position:50% size:65% BACKGROUND DOCUMENT NOTES, 03:06:41.623 --> 03:06:43.058 align:middle line:85% position:50% size:68% SHIFTING LIABILITY DOES NOT 03:06:43.125 --> 03:06:45.193 align:middle line:85% position:50% size:78% ELIMINATE RISK OR ITS COSTS. WE 03:06:45.260 --> 03:06:47.029 align:middle line:85% position:50% size:70% ECHO COMMENTS FROM CPUC, PG, 03:06:47.095 --> 03:06:48.797 align:middle line:85% position:50% size:73% AND E AND THE OTHER PANELISTS 03:06:48.864 --> 03:06:50.599 align:middle line:85% position:50% size:78% THAT THE STATUS QUO OF WILDFIRE 03:06:50.666 --> 03:06:52.801 align:middle line:85% position:50% size:63% RISK IS UNSUSTAINABLE FOR 03:06:52.868 --> 03:06:54.536 align:middle line:85% position:50% size:70% CALIFORNIA. THERE ARE PROVEN 03:06:54.603 --> 03:06:55.737 align:middle line:85% position:50% size:70% WILDFIRE SOLUTIONS TO REDUCE 03:06:55.804 --> 03:06:57.472 align:middle line:85% position:50% size:68% THE RISK RATHER THAN MERELY 03:06:57.539 --> 03:06:58.840 align:middle line:85% position:50% size:58% SHIFTING IT, MITIGATING 03:06:58.907 --> 03:06:59.942 align:middle line:85% position:50% size:63% WILDFIRE RISK THROUGH THE 03:07:00.008 --> 03:07:01.009 align:middle line:85% position:50% size:68% SOLUTIONS IN THE GOVERNOR'S 03:07:01.076 --> 03:07:02.044 align:middle line:85% position:50% size:55% WILDFIRE AND LANDSCAPE 03:07:02.110 --> 03:07:03.946 align:middle line:85% position:50% size:63% RESILIENCE ACTION PLAN IS 03:07:04.012 --> 03:07:05.314 align:middle line:85% position:50% size:73% NECESSARY TO MANAGE COSTS FOR 03:07:05.380 --> 03:07:06.782 align:middle line:85% position:50% size:68% CALIFORNIA'S RATEPAYERS. WE 03:07:06.848 --> 03:07:07.849 align:middle line:85% position:50% size:70% URGE THE LEGISLATURE TO FUND 03:07:07.916 --> 03:07:11.086 align:middle line:85% position:50% size:68% THESE SOLUTIONS. THANK YOU, 03:07:11.153 --> 03:07:15.023 align:middle line:85% position:50% size:75% THANK YOU. MADAM CHAIR, MEMBER 03:07:15.090 --> 03:07:17.559 align:middle line:85% position:50% size:65% LEE AND PRICE REPRESENTING 03:07:17.626 --> 03:07:20.462 align:middle line:85% position:50% size:73% CONSUMER ATTORNEYS. IT'S BEEN 03:07:20.529 --> 03:07:22.030 align:middle line:85% position:50% size:73% REALLY ENLIGHTENING LISTENING 03:07:22.097 --> 03:07:23.732 align:middle line:85% position:50% size:63% TO THE TWO PANELS SO FAR. 03:07:23.799 --> 03:07:26.635 align:middle line:85% position:50% size:78% LOOKING FORWARD TO TOMORROW. WE 03:07:26.702 --> 03:07:27.603 align:middle line:85% position:50% size:65% APPRECIATE THAT YOUR FIRST 03:07:27.669 --> 03:07:29.404 align:middle line:85% position:50% size:80% PANEL DID TALK ABOUT MITIGATION, 03:07:29.471 --> 03:07:31.607 align:middle line:85% position:50% size:75% HOW TO AVOID THE RISK, BECAUSE 03:07:31.673 --> 03:07:34.176 align:middle line:85% position:50% size:73% AS THE PRIOR COMMENT WAS JUST 03:07:34.242 --> 03:07:36.178 align:middle line:85% position:50% size:73% MADE, WHEN WE'RE HEARING, YOU 03:07:36.244 --> 03:07:38.146 align:middle line:85% position:50% size:78% KNOW, FROM THIS PANEL, THE RISK 03:07:38.213 --> 03:07:41.316 align:middle line:85% position:50% size:75% OF LIABILITY IS WHAT'S DRIVING 03:07:41.383 --> 03:07:43.852 align:middle line:85% position:50% size:78% THIS URGENCY. IT DOES FEEL LIKE 03:07:43.919 --> 03:07:44.886 align:middle line:85% position:50% size:75% WE'RE KIND OF PUTTING THE CART 03:07:44.953 --> 03:07:46.455 align:middle line:85% position:50% size:70% BEFORE THE HORSE, BECAUSE WE 03:07:46.521 --> 03:07:51.059 align:middle line:85% position:50% size:75% REALLY NEED TO BE INVESTING IN 03:07:51.126 --> 03:07:53.962 align:middle line:85% position:50% size:70% A TWO THINGS. WE NEED A GOOD 03:07:54.029 --> 03:07:56.431 align:middle line:85% position:50% size:75% INDEPENDENT FISCAL AUDIT SO WE 03:07:56.498 --> 03:07:58.967 align:middle line:85% position:50% size:78% UNDERSTAND HOW THEIR MONIES ARE 03:07:59.034 --> 03:08:00.769 align:middle line:85% position:50% size:73% BEING INVESTED, WHAT THEY ARE 03:08:00.836 --> 03:08:02.938 align:middle line:85% position:50% size:63% DOING TO MITIGATE AGAINST 03:08:03.005 --> 03:08:06.174 align:middle line:85% position:50% size:73% FUTURE FIRES, AND SECONDLY, A 03:08:06.241 --> 03:08:07.676 align:middle line:85% position:50% size:68% INDEPENDENT SAFETY AUDIT SO 03:08:07.743 --> 03:08:10.112 align:middle line:85% position:50% size:70% THAT WE CAN UNDERSTAND WHERE 03:08:10.178 --> 03:08:11.613 align:middle line:85% position:50% size:70% THEY ARE MAKING INVESTMENTS. 03:08:11.680 --> 03:08:13.215 align:middle line:85% position:50% size:78% ARE THEY THE RIGHT INVESTMENTS? 03:08:13.281 --> 03:08:14.383 align:middle line:85% position:50% size:70% WE'VE HEARD FROM A NUMBER OF 03:08:14.449 --> 03:08:15.684 align:middle line:85% position:50% size:73% PEOPLE HERE IN PUBLIC COMMENT 03:08:15.751 --> 03:08:17.419 align:middle line:85% position:50% size:78% ABOUT DIFFERENT STRATEGIES THAT 03:08:17.486 --> 03:08:18.854 align:middle line:85% position:50% size:73% AREN'T NECESSARILY THOSE THAT 03:08:18.920 --> 03:08:20.589 align:middle line:85% position:50% size:68% LEAD TO AN INCREASED BOTTOM 03:08:20.656 --> 03:08:22.024 align:middle line:85% position:50% size:68% LINE, BUT REALLY COULD HELP 03:08:22.090 --> 03:08:24.159 align:middle line:85% position:50% size:73% AVOID FIRES. AND I THINK THAT 03:08:24.226 --> 03:08:25.961 align:middle line:85% position:50% size:70% THAT'S PROBABLY THE GREATEST 03:08:26.028 --> 03:08:27.429 align:middle line:85% position:50% size:68% INTEREST WE ALL HAVE, IS TO 03:08:27.496 --> 03:08:28.864 align:middle line:85% position:50% size:78% AVOID HAVING THESE FIRES IN THE 03:08:28.930 --> 03:08:30.999 align:middle line:85% position:50% size:78% FIRST PLACE. AND SO I HOPE THIS 03:08:31.066 --> 03:08:33.168 align:middle line:85% position:50% size:63% IS JUST THE FIRST STEP IN 03:08:33.235 --> 03:08:35.003 align:middle line:85% position:50% size:78% TRYING TO PEEL BACK THE CURTAIN 03:08:35.070 --> 03:08:36.772 align:middle line:85% position:50% size:60% AND UNDERSTANDING WHAT'S 03:08:36.838 --> 03:08:38.940 align:middle line:85% position:50% size:68% HAPPENING ACTUALLY AT THESE 03:08:39.007 --> 03:08:40.042 align:middle line:85% position:50% size:73% UTILITIES AND HOW THEIR MONEY 03:08:40.108 --> 03:08:42.944 align:middle line:85% position:50% size:65% IS BEING SPENT. THANK YOU. 03:08:43.011 --> 03:08:44.746 align:middle line:85% position:50% size:68% THANK YOU SO MUCH. AND THAT 03:08:44.813 --> 03:08:45.814 align:middle line:85% position:50% size:78% CONCLUDES OUR PUBLIC COMMENT. I 03:08:45.881 --> 03:08:47.549 align:middle line:85% position:50% size:73% WANT TO THANK ONCE AGAIN, ALL 03:08:47.616 --> 03:08:49.785 align:middle line:85% position:50% size:78% OF OUR PANELISTS FOR JOINING US 03:08:49.851 --> 03:08:51.853 align:middle line:85% position:50% size:75% TODAY. AND ONCE AGAIN, JUST TO 03:08:51.920 --> 03:08:54.389 align:middle line:85% position:50% size:65% PUT TODAY'S HEARING IN THE 03:08:54.456 --> 03:08:55.857 align:middle line:85% position:50% size:78% CONTEXT OF THE HEARINGS THAT WE 03:08:55.924 --> 03:08:57.626 align:middle line:85% position:50% size:78% HAVE BEEN CONDUCTING THIS FALL. 03:08:57.693 --> 03:08:59.161 align:middle line:85% position:50% size:73% OUR HEARING LAST WEEK WAS ALL 03:08:59.227 --> 03:09:01.930 align:middle line:85% position:50% size:80% ABOUT MITIGATION AND PREVENTION. 03:09:01.997 --> 03:09:04.866 align:middle line:85% position:50% size:68% FIRE PREVENTION AND SAFETY. 03:09:04.933 --> 03:09:06.668 align:middle line:85% position:50% size:65% TODAY'S HEARING WAS REALLY 03:09:06.735 --> 03:09:08.804 align:middle line:85% position:50% size:75% ABOUT THE MONEY AND HOW WE ARE 03:09:08.870 --> 03:09:11.673 align:middle line:85% position:50% size:80% PAYING FOR THIS AS CALIFORNIANS. 03:09:11.740 --> 03:09:13.075 align:middle line:85% position:50% size:70% TOMORROW'S HEARING WILL BE A 03:09:13.141 --> 03:09:14.943 align:middle line:85% position:50% size:55% JOINT HEARING WITH OUR 03:09:15.010 --> 03:09:16.011 align:middle line:85% position:50% size:68% COLLEAGUES IN THE INSURANCE 03:09:16.078 --> 03:09:18.080 align:middle line:85% position:50% size:73% COMMITTEE. SO LOOK FORWARD TO 03:09:18.146 --> 03:09:19.314 align:middle line:85% position:50% size:75% SEEING YOU FOR THE SECOND PART 03:09:19.381 --> 03:09:21.083 align:middle line:85% position:50% size:73% OF THIS WEEK'S DOUBLE HEADER. 03:09:21.149 --> 03:09:24.086 align:middle line:85% position:50% size:65% WITH THAT, THIS HEARING IS 03:09:24.152 --> 03:09:39.167 align:middle line:85% position:50% size:25% ADJOURNED.