Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 68

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 68
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fire Insurance Fund expense36 37 1 Depreciation and amortization825 725 (100)Property and other taxes167 154 (13)Total operating expenses3,738 3,408 (330)Operating income794 916 (122)Interest expense(421)(408)(13)Other income, net117 147 (30)Income before income taxes490 655 (165)Income tax expense14 83 69 Net income476 572 (96)Less: Preference stock dividend requirements33 49 16 Net income available to common stock$443 $523 $(80)

Operating Revenue

Higher net operating revenue of $208 million was primarily due to:

•An increase in revenue of $164 million related to net higher expenses that are passed through to customers, which mainly included increases in:

•Operation and maintenance expense of $185 million;

•Depreciation and amortization expense of $60 million;

•Interest expense of $19 million;

•Property and other taxes of $7 million;

offset by decreases in:

•Purchased power and fuel expense of $77 million; and

•Income tax expense of $32 million.

•An increase in revenue of $67 million was due to higher balancing account rate base primarily associated with wildfire mitigation efforts. 

•A decrease in revenue of $19 million was due to the decrease in the authorized rate of return resulting from the cost of capital adjustment mechanism. For more information about the cost of capital adjustment mechanism, see "Management Overview—Cost of Capital" in the 2024 MD&A.

9

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $77 million was primarily due to lower hedging losses (offset in "Operating Revenue" above).

Operation and Maintenance

An increase in operation and maintenance expense of $295 million was primarily due to:

•A net increase of $185 million mainly related to higher previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024. These expenses are passed through to customers and offset in "Operating Revenue" above. 

•A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances. For additional information, see "Liquidity and Capital Resources—SCE—Regulatory Proceedings."

•An increase of $48 million mainly related to higher inspection and maintenance expenses.

Depreciation and Amort