Company: SCE-PL
Filing Date: 2025-11-17
Form Type: 424B3
Source: 0001193125-25-283973
Chunk: 49

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-17
Form: 424B3
Chunk 49
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mission or distribution facilities, whether those electric transmission or distribution facilities are owned by the consumer, the electrical corporation, or any other party. In addition, under the Wildfire Financing Law, fixed recovery charges
may consist of distribution, connection, disconnection and termination rates and charges and other rates and charges authorized by a financing order.

Effective September 19, 2025, California Senate Bill 254 (“SB 254”) amended the Wildfire Financing Law to, among other things,
permit a large electrical corporation, such as SCE, to file an application for a financing order to recover wildfire costs related to fires ignited between January 1, 2025 and September 19, 2025 through the issuance of recovery bonds, if
such costs have been settled or finally adjudicated and the Wildfire Insurance Fund (created pursuant to AB 1054) has been exhausted. Under SB 254, the CPUC is authorized to approve the issuance of recovery bonds before the large electrical
corporation files an application for the CPUC to determine that the related wildfire costs were “just and reasonable.” However, SB 254 would require the large electrical corporation to credit ratepayers for any costs or expenses
disallowed by the CPUC in a subsequent proceeding. In addition, under SB 254 SCE expects to exclude approximately $2.9 billion of wildfire mitigation capital expenditures approved on or after January 1, 2026, from the equity portion of SCE’s
rate base. SCE can apply for irrevocable orders from the CPUC to finance these expenditures through the issuance of additional recovery bonds, and can recover any prudently incurred financing costs.

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The Financing Order and the Recovery Property The Wildfire Financing Law contains a number of provisions designed to facilitate the securitization of recovery costs, including the following: The Wildfire Financing Law Provides for the Creation of Recovery Property The Wildfire Financing Law authorizes the California commission, through issuance of a financing order, to provide for the creation of recovery property to secure repayment of recovery bonds. Recovery property is defined under the Wildfire Financing Law to include, without limitation, the right, title, and interest of the electrical corporation or its transferee:

| • |     | in and to the fixed recovery charges established pursuant to a financing order, including all rights to obtain                         
 adjustments to the fixed recovery charges in accordance with the provisions of the Wildfire Financing Law and the financing order; and |

| • |     | all revenues, collections, claims, payments,