Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 72

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 72
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Senate Bill 254—SB 254 Excluded Capital Expenditures."

(in billions)2025202620272028Rate base $47.4 $50.4 $54.3 $57.5 Rate base using range case discussed above$47.2 $49.9 $53.6 $56.5 

Southern California Wildfires and Mudslides

Unprecedented weather conditions in California due to climate change have contributed to wildfires, including those where SCE's equipment has been alleged to be associated with the fire's ignition, that have caused loss of life and substantial damage in SCE's service area, including as recently as January 2025. 

In September 2025, a Continuation Account within the Wildfire Insurance Fund was established under SB 254, described below, to supplement the Initial Account within the Wildfire Insurance Fund by potentially providing up to $18 billion of additional funding for the Wildfire Insurance Fund. Under SB 254, the Initial Account of the Wildfire Insurance Fund will be available for fires ignited before September 19, 2025 (the "SB 254 Effective Date") and the Continuation Account may become available for fires ignited after the SB 254 Effective Date. As described below, the Continuation Account will be funded contingent upon certain conditions. Once all claims under the Initial Account are resolved and no further claims are anticipated, any remaining assets in the Initial Account will be transferred to the Continuation Account. See "—Senate Bill 254" for further information.

In recognition of the need for further action, SB 254 requires the administrator of the Wildfire Insurance Fund to submit to the California legislature and the governor, by April 1, 2026, a report that evaluates and sets forth recommendations on new models or approaches that mitigate damage, accelerate recovery, and responsibly and equitably allocate the burdens from natural catastrophes, including wildfires, across stakeholders, to complement or replace the Wildfire Insurance Fund. 

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Table of Contents

While Edison International and SCE continue to pursue legislative strategies to address California investor-owned utilities' exposure to wildfire-related liabilities, they cannot predict whether or when there will be a comprehensive economy-wide solution mitigating the significant risk faced by California investor-owned utilities related to wildfires.

Eaton Fire 

In January 2025, several wind-driven wildfires impacted portions of SCE's service area, causing loss of life, substantial damage and service outages for SCE customers. One of the largest of these wildfires, the Eaton Fire, ignited in SCE