Company: SCE-PL
Filing Date: 2025-09-08
Form Type: SF-1
Source: 0001193125-25-198426
Chunk: 11

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-09-08
Form: SF-1
Chunk 11
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 challenging such actions. Neither we nor SCE will indemnify you for any changes of law, whether as a result of
Constitutional amendment, legislative enactment or any judicial proceedings.

In addition, the California commission retains the power to
adopt, revise or rescind rules or regulations affecting SCE and may attempt to take actions which could impair the value of the recovery property. Also, true up adjustment filings made with the California commission may be challenged before the
California commission or in court, resulting in delays in implementation of the true-up adjustment. Additionally, subject to any required California commission approval, SCE may establish billing, collection
and posting arrangements with customers which could impact the timing and amount of customer payments.

Also, a municipality or tribal
entity may seek to acquire portions of SCE’s service territory, and may dispute their obligation to pay the fixed recovery charges, or even if obligated to do so, may fail to bill and remit the fixed recovery charges on a timely basis.

Servicing Risks; Natural Disaster Recovery Risks:The collection of fixed recovery charges on a timely and sufficient basis depend upon
the ability of the servicer to accurately forecast customer usage. If the servicer inaccurately forecasts consumption or underestimates customer delinquencies for any reason, there could be a shortfall or material delay in fixed recovery charge
collections. Factors which might cause inaccurate projections of usage or customer delinquencies, include unanticipated weather conditions, rolling blackouts due to capacity constraints, cyber attacks on SCE or CAISO infrastructure, extreme
weather-related incidents (including events caused, or exacerbated, by climate change), such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events, other natural disasters (such as earthquakes), pandemics, such as COVID-19, and other events that cause regional, statewide, national or global disruption. SCE’s ability to collect fixed recovery charges from customers may also be impacted by some of these same factors.

These same natural and man-made disasters may affect SCE’s ability to deliver energy. As the
fixed recovery charge is a consumption-based charge, any unexpected failure to deliver electricity may impact the collection of fixed recovery charges. SCE’s operations could be impacted by severe weather, earthquakes and wildfires. Recent
wildfires have resulted in rolling power shutoffs throughout the State of California. Any disruption in SCE’s ability to deliver energy could cause a delay or reduction in fixed recovery charge collections.

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Servicing of the fixed recovery charges may also be adversely affected by growth in the
number