Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 652

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 652
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 and 7.44% in 2024 and 2023, respectively. The CPUC authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales.Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts.

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Table of Contents

Regulatory AssetsSCE's regulatory assets included on the consolidated balance sheets are:December 31,(in millions)20242023Current:Regulatory balancing and memorandum accounts$2,723 $2,502 Other25 22 Total current2,748 2,524 Long-term:Deferred income taxes5,982 5,533 Unamortized investments, net of accumulated amortization115 110 Unamortized losses on reacquired debt88 99 Regulatory balancing and memorandum accounts867 1,257 Environmental remediation222 226 Recovery assets1,512 1,558 Other100 114 Total long-term8,886 8,897 Total regulatory assets$11,634 $11,421 In accordance with the accounting standards applicable to rate-regulated enterprises, SCE defers costs as regulatory assets that are probable of future recovery from customers and has recorded regulatory assets for these incremental costs at December 31, 2024. While SCE believes such costs are probable of future recovery, there is no assurance that SCE will collect all amounts currently deferred as regulatory assets.SCE's regulatory assets related to deferred income taxes represent tax benefits passed through to customers. The CPUC requires SCE to flow through certain deferred income tax benefits to customers by reducing electricity rates, thereby deferring recovery of such amounts to future periods. Based on current regulatory ratemaking and income tax laws, SCE expects to recover its regulatory assets related to deferred income taxes over the life of the assets that give rise to the accumulated deferred income taxes, approximately from 1 to 60 years. For further information, see Note 8.SCE has long-term unamortized investments which include nuclear assets related to Palo Verde and the beyond the meter program. Nuclear assets related to Palo Verde and the beyond the meter program are expected to be recovered by 2046 and 2031, respectively, and both earned returns of 7.87% and 7.44% in 2024 and 2023, respectively.SCE's net regulatory asset related to its unamortized losses on reacquired debt will be