Company: SCE-PL
Filing Date: 2025-09-08
Form Type: SF-1
Source: 0001193125-25-198426
Chunk: 26

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-09-08
Form: SF-1
Chunk 26
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 nonpayment of other portions of monthly electric utility bills. This inability might reduce the value of your
investment.

RISKS ASSOCIATED WITH THE UNUSUAL NATURE OF THE RECOVERY PROPERTY

Foreclosure of the trustee’s lien on the recovery property for the bonds might not be practical, and acceleration of the bonds before maturity might have little practical effect

Under the Wildfire Financing Law and the indenture, the trustee or the
bondholders have the right to foreclose or otherwise enforce the lien on the recovery property securing the bonds. However, in the event of foreclosure, there is likely to be a limited market, if any, for the recovery property. Therefore,
foreclosure might not be a realistic or practical remedy. Moreover, although principal of the bonds will be due and payable upon acceleration of the bonds before maturity, fixed recovery charges likely would not be accelerated and the nature of our
business will result in principal of the bonds being paid as funds become available. If there is an acceleration of the bonds, all tranches of the bonds will be paid pro rata; therefore, some tranches might be paid earlier than expected and some
tranches might be paid later than expected.

NATURAL DISASTER-RELATED RISK

Severe weather conditions, extended drought and climate change could materially affect SCE’s ability to collect fixed recovery charges

Weather-related incidents, including storms and events caused, or exacerbated, by climate change, such as wildfires,
debris flows, flooding, droughts, high wind events and extreme heat events, and other natural disasters such as earthquakes can disrupt the generation and transmission of electricity, and can seriously damage the infrastructure necessary to deliver
power to SCE’s customers, which, consequently, can affect the collection of fixed recovery charges because such charges are based on consumption.

Climate change has caused, and exacerbated, extreme weather events and wildfires in southern California, and wildfires could cause, among
other things, public safety issues, property damage and operational issues. In addition, the risk of debris flows occurring as a result of rain may be heightened. For example, the wildfire and mudslide events in 2017 and 2018 resulted in, among
other things, loss of life, property damage and loss of service.

Extreme heat events can lead to prolonged widespread outages due to,
among other things, state-wide capacity supply shortages or equipment failure. Extreme weather events can also lead to use of public safety power shutoffs. Weather-related events, such as debris flows and melting of significantly higher than normal