Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 95

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 95
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 reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information.Allowance for Uncollectible AccountsThe allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California which exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. The increase in the provision of uncollectible accounts and write-offs for the year ended December 31, 2024, is driven primarily by consumer protection programs.

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Table of Contents

The following table sets forth the changes in allowance for uncollectible accounts for SCE:(in millions)CustomersAll othersTotalBalance at December 31, 2021$293 $16 $309 Current period provision for uncollectible accounts1111 11 122 Write-offs, net of recoveries(70)(7)(77)Balance at December 31, 2022$334 $20 $354 Current period provision for uncollectible accounts1109 6 115 Write-offs, net of recoveries(96)(9)(105)Balance at December 31, 2023²$347 $17 $364 Current period provision for uncollectible accounts1278 12 290 Write-offs, net of recoveries(253)(11)(264)Balance at December 31, 2024²$372 $18 $390 1This includes $222 million, $78 million, and $40 million of incremental costs for the years ended December 31, 2024, 2023, and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets.2Approximately $43 million and $4 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of December 31, 2024 and 2023 respectively.InventorySCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost or net realizable value when appropriate.Emission Allowances and Energy CreditsSCE is allocated GHG allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the