Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 91

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 91
---
 the wildfire expense memorandum account, which were denied without prejudice in a previous decision. 

In March 2025, SCE, Cal Advocates, and Small Business Utility Advocates filed a joint motion seeking approval of a settlement agreement for the WMCE proceeding. The settlement agreement seeks the CPUC's approval to recover $702 million in capital expenditures and $308 million in operation and maintenance expenses. In June 2025, the CPUC issued a final decision adopting the settlement agreement as filed. This resulted in an initial revenue requirement of $314 million, which has been implemented into customer rates over a 12-month period starting October 1, 2025, along with ongoing capital revenue requirement and interest.

NextGen Enterprise Resource Planning ("ERP") Program 

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system that has been in service for over 15 years and will soon reach the end of its service life. SCE requested funding through a balancing account of recorded and forecast capital expenditures of approximately $1.1 billion and operations and maintenance expenditures of $239 million. 

2026 FERC Formula Rate Annual Update

In June 2025, SCE provided its preliminary 2026 annual transmission revenue requirement update to interested parties. The update proposes a 2026 transmission revenue requirement of $1.5 billion, which is a $153 million, or 11%, increase from the 2025 annual rates. The increase is primarily due to 2026 rates reflecting recovery of previous undercollections. SCE expects to file its 2026 annual update with the FERC by December 1, 2025, with the proposed rates effective January 1, 2026.

Capital Investment Plan

Utility Owned Storage

As discussed in "Liquidity and Capital Resources—Capital Investment Plan" in the 2024 MD&A, in October 2021, SCE contracted with Ameresco, Inc. ("Ameresco") for the construction of utility owned energy storage projects to be in service by August 1, 2022 at three sites in SCE's service area with an aggregate capacity of 537.5 MW, consisting of a 225 MW project, a 200 MW project, and a 112.5 MW project. The 200 MW and 112.5 MW projects went in service during the third 

18

Table of Contents

quarter of 2024. While Ameresco has stated that the 225 MW project met the requirements to go in service in