Company: SCE-PL
Filing Date: 2025-11-24
Form Type: 424B1
Source: 0001193125-25-293755
Chunk: 15

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-24
Form: 424B1
Chunk 15
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 acquire portions of SCE’s electric facilities and/or serve the load of customers within their jurisdictional areas and avoid or reduce the affected customers’ payment of the fixed recovery charges

California law authorizes certain local municipalities to seek to acquire portions of SCE’s electric facilities through the power of
eminent domain for use as part of municipally-owned utility systems and serve customers with those facilities. Additionally, local municipalities may extend their own facilities to take over service of

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customers located within their jurisdictional areas, which may overlap with SCE’s service territory. Moreover, tribal governments may operate their own utilities and, from time to time, may
assert the right to acquire SCE’s facilities located within the borders of tribal land through the power of eminent domain. These circumstances involve what is referred to under existing tariffs as municipal departing load (Municipal DL), where the affected customers are no longer interconnected with SCE’s electric facilities. The last tribal annexation occurred in 2017 and involved 25 consumers and the last municipal annexation occurred in 2022 and involved three
consumers; in each case the departing consumers were primarily residential consumers. As the date of this prospectus, we are not aware of any tribe that is actively seeking or has notified SCE of an intention to acquire portions of SCE’s
electric distribution system and of only one local municipality that has notified SCE of an intention to acquire a limited number of accounts in their municipal service area and nearby unincorporated areas.

As required by the Wildfire Financing Law, the financing order provides that the fixed recovery charges must be paid by all existing and
future customers within SCE’s service territory as it existed as of the date of the financing order, except exempted customers. The financing order provides that consumers that no longer take transmission and distribution retail service
(including Municipal DL customers) or that otherwise depart or reduce SCE service after the date of the financing order, or that meet relevant criteria in the applicable tariff, will be treated as departing load customers (DL customers). DL
customers, including Municipal DL customers, are required to pay the fixed recovery charge based on approaches that are consistent with the methods in place for other nonbypassable charges. SCE’s DL tariffs provide for calculation of certain
nonbypassable charges based on consumption as metered or estimated. SCE has administered Municipal DL tariffs by reaching an agreement with the Municipal DL customer or the local municipality serving the Municipal DL customer for the payment of one
or more lump sums based on a mutually acceptable estimate of the Municipal DL