Company: SCE-PL
Filing Date: 2025-11-17
Form Type: 424B3
Source: 0001193125-25-283973
Chunk: 18

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-17
Form: 424B3
Chunk 18
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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 customer’s nonbypassable cost obligations, which include charges similar to the fixed recovery charges. No assurance can be provided that such agreements will be
reached in the future with respect to Municipal DL, and any failure to reach such an agreement could result in litigation or otherwise make it difficult to collect the fixed recovery charges (including any lump sum payment). Please read
“The Depositor, Seller, Initial Servicer and Sponsor—Municipalization; Municipal Departing Load” and “—Successors” in this prospectus. If such agreements relating to Municipal DL are reached,
however, the payments allocable to the fixed recovery charges will constitute recovery property.

The Wildfire Financing Law also
specifies that any successor to an electrical corporation shall perform and satisfy all obligations of the electrical corporation pursuant to the Wildfire Financing Law, including collecting and paying to the bondholders revenues arising with
respect to the recovery property. In the servicing agreement, SCE will covenant to assert in an appropriate forum