Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 67

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 67
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 net of recoveries:

•Net earnings of $4 million ($3 million after-tax) recorded in 2025 consisted of $14 million of insurance reimbursements for costs incurred in previous years, partially offset by $10 million of legal expenses, net of expected regulatory recoveries.

•Charges of $124 million ($90 million after-tax) recorded in 2024 for wildfire claims and related legal expenses, net of expected insurance and regulatory recoveries. 

See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

•Charges of $108 million ($78 million after-tax) and $109 million ($78 million after-tax) recorded in 2025 and 2024, respectively, from amortization of SCE's contributions to the Wildfire Insurance Fund. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

•Net charges of $76 million ($39 million after-tax) recorded in 2025, primarily related to the impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision. See "Management Overview—2025 General Rate Case" for further information.

•Severance costs of $44 million ($32 million after-tax), net of expected FERC recovery, recorded in 2024 due to reductions in workforce.

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•Charges of $50 million ($39 million after-tax) recorded in 2025 and $2 million ($2 million after-tax) recorded in 2024, both related to wildfire claims insured by EIS. See "Notes to Condensed Consolidated Financial Statements— Note 12. Commitments and Contingencies" for further information.

See "Results of Operations" for discussion of SCE's and Edison International Parent and Other's results of operations.

2025 General Rate Case

Revenue Requirements

In September 2025, the CPUC approved a final decision on the 2025 GRC, which resulted in a base rate revenue requirement of $9.7 billion in 2025, an increase of $880 million over the adjusted 2024 authorized revenue requirement (see table below for more details). The final decision also authorized adjustment to the post-test years' revenue requirements, allowing the application of an attrition index to operation and maintenance expenses, with the index capped