Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 66

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 66
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41 million of higher core loss and $37 million of higher non-core loss.

As discussed in the 2024 Form 10-K, the CPUC approved the TKM Settlement Agreement in January 2025. As a result, in the first nine months of 2025, SCE recorded cost recoveries through CPUC electric rates authorized under the TKM Settlement Agreement. These cost recoveries are reflected either as core earnings or non-core items, as discussed below. This classification is consistent with the original classification when the respective costs were incurred.

The increase in SCE's core earnings for the three months ended September 30, 2025 from the same period in 2024 was primarily due to higher revenue from the 2025 GRC final decision. The increase in SCE's core earnings for the nine months ended September 30, 2025, from the same period in 2024, was primarily due to higher revenue from the 2025 GRC final decision, a benefit to interest expense related to cost recoveries authorized under the TKM Settlement Agreement, partially offset by the net impact of wildfire-related regulatory decisions received in the second quarter of 2025 and 2024. The increase in Edison International Parent and Other's core loss for the three and nine months ended September 30, 2025, was primarily due to higher interest expense.

Consolidated non-core items for the nine months ended September 30, 2025 and 2024 for Edison International included:

•2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries:

•Net earnings recorded in 2025 related to the TKM Settlement Agreement, including ongoing activities: $1,341 million ($966 million after-tax) of claim costs and $58 million ($42 million after-tax) of legal expenses authorized for recovery, partially offset by shareholder-funded wildfire mitigation expenses of $50 million ($36 million after-tax) and impairment of incremental restoration-related assets of $8 million ($6 million after-tax). 

•Charges of $7 million ($5 million after-tax) recorded in 2025, and $485 million ($349 million after-tax) recorded in 2024, both related to claim costs and related legal expenses, net of expected regulatory recoveries. 

See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

•Other Wildfire Events claims and expenses,