Company: SCE-PL
Filing Date: 2025-10-28
Form Type: SF-1/A
Source: 0001193125-25-253849
Chunk: 25

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: SF-1/A
Chunk 25
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 there is an acceleration of the bonds, all tranches of the bonds will be paid pro rata; therefore, some tranches might be paid earlier than expected and some
tranches might be paid later than expected.

NATURAL DISASTER-RELATED RISK

Severe weather conditions, extended drought and climate change could materially affect SCE’s ability to collect fixed recovery charges

Weather-related incidents, including storms and events caused, or exacerbated, by climate change, such as wildfires,
debris flows, flooding, droughts, high wind events and extreme heat events, and other natural disasters such as earthquakes can disrupt the generation and transmission of electricity, and can seriously damage the infrastructure necessary to deliver
power to SCE’s customers, which, consequently, can affect the collection of fixed recovery charges because such charges are based on consumption.

Climate change has caused, and exacerbated, extreme weather events and wildfires in southern California, and wildfires could cause, among
other things, public safety issues, property damage and operational issues. In addition, the risk of debris flows occurring as a result of rain may be heightened. For example, the wildfire and mudslide events in 2017 and 2018 resulted in, among
other things, loss of life, property damage and loss of service.

Extreme heat events can lead to prolonged widespread outages due to,
among other things, state-wide capacity supply shortages or equipment failure. Extreme weather events can also lead to use of public safety power shutoffs. Weather-related events, such as debris flows and melting of significantly higher than normal
snow pack, and earthquakes can cause over-topping or failure at an SCE dam resulting in a rapid release of water that could cause, among other things, public safety issues, property damage and operational issues.

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Weather-related incidents and other natural disasters can lead to lost revenue and increased
expense, including higher maintenance and repair costs, which SCE may not be able to recover from its customers. In addition, these occurrences could lead to significant claims for damages, including for loss of life and property damage, as well as
regulatory penalties and disallowances. These occurrences could materially affect SCE’s business and financial condition, and the inability to restore power to SCE’s customers may temporarily reduce electricity sales, resulting in
reduced or delayed fixed recovery charge collections and possible delays in payment on the bonds.

Specifically, in January 2025, several
wind-driven wildfires impacted portions of SCE’s service area, causing loss of life, substantial damage and service outages for