Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 71

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 71
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 Overview—Regulatory Proceedings."

•A charge of $50 million recorded in 2025 related to shareholder-funded wildfire mitigation costs stipulated under the TKM Settlement Agreement. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•An increase of $31 million mainly related to higher inspection and maintenance expenses.

Wildfire-related Claims, Net of Recoveries

A decrease in wildfire-related claims, net of recoveries of $1,969 million was primarily due to:

•A recovery of $1,341 million in claim costs was recorded in 2025 as authorized under the TKM Settlement Agreement.

•A decrease of $490 million related to claim costs for 2017/2018 Wildfire/Mudslide Events recorded in 2024, $27 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $124 million related to claim costs recorded in 2024 for Other Wildfire Events, $7 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $14 million related to insurance reimbursements recorded in 2025 for costs incurred in previous years related to Other Wildfire Events.

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 $140 million was primarily due to higher plant balances, $79 million of which were pass-through costs mainly associated with wildfire mitigation efforts (offset in "Operating Revenue" above). 

Property and Other Taxes

An increase in property and other taxes expense of $25 million was primarily due to higher assessed property values, $16 million of which were pass-through costs mainly associated with wildfire mitigation efforts (offset in "Operating Revenue" above).

Interest Expense

A net decrease in interest expense of $141 million was primarily due to a benefit to interest expense of $171 million related to cost recoveries authorized under the TKM Settlement Agreement, partially offset by $32 million higher pass-through expense mainly associated with wildfire mitigation efforts (offset in "Operating Revenue" above).

Other Income, net

A decrease in other income, net of $54 million was primarily due to lower interest income driven by lower balancing account undercollection balances and lower