Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 83

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 83
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 from implementing the 2025 GRC final decision in the third quarter of 2025, as discussed in "Management Overview—2025 General Rate Case." Of this amount, $70 million had already been recorded in the first two quarters of 2025 as non-GRC balancing account revenue. Following the final decision, 

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this was reclassified as GRC authorized revenue, resulting in a net increase in revenue of $591 million in the third quarter of 2025.

•A net decrease in revenue of $55 million related to net lower expenses that are passed through to customers, which mainly included decreases in:

•Purchased power and fuel expense of $197 million;

•Operation and maintenance expense of $169 million;

•Income tax expense of $14 million;

offset by increases in:

•Wildfire-related claims, net of recoveries of $295 million;

•Depreciation and amortization expense of $17 million;

•Interest expense of $6 million;

•Property and other taxes of $5 million;

•Other income, net of $2 million.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $197 million was primarily due to lower energy prices and lower hedging losses (offset in "Operating Revenue" above).

Operation and Maintenance

A decrease in operation and maintenance expense of $211 million was primarily due to:

•A net decrease of $169 million mainly related to lower previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024 (offset in "Operating Revenue" above).

•A decrease of $54 million mainly related to severance costs recorded in 2024 due to workforce reduction.

Wildfire-related Claims, Net of Recoveries

An increase in wildfire-related claims, net of recoveries of $295 million was due to wildfire claim costs recorded in 2025 for the Eaton Subrogation Settlement. These costs were covered by customer-funded wildfire self-insurance and expected FERC recovery (both offset in "Operating Revenue" above). For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Depreciation and Amortization

An increase in depreciation and amortization expense of $151 million was primarily due to higher plant balances, $17 million of which were pass-through costs mainly associated with utility owned energy storage projects and wildfire mitigation costs (offset in "Operating