Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 69

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 69
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 retroactive to January 1, 2025. SCE recorded the corresponding year-to-date impact in the third quarter of 2025, resulting in $661 million of increased authorized revenue. Additionally, SCE recorded net charges of $76 million ($39 million after-tax) in the same quarter, primarily due to an $88 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in the final decision, mainly related to the rooftop solar photovoltaic program. This was partially offset by the recognition of a $12 million clean energy subsidy previously received for this program.

The CPUC has approved the establishment of a memorandum account, making the authorized revenue requirement changes effective January 1, 2025. Under the final decision, the increase in authorized revenues of $902 million for January 2025 through September 2025 will be collected over a 24-month period beginning October 1, 2025.

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Table of Contents

Capital Expenditures

The final decision authorized CPUC-jurisdictional capital expenditures of $6.1 billion for 2025. For 2025 – 2028, the decision authorized capital expenditures of approximately $1 billion to support 212 miles of the wildfire mitigation targeted undergrounding ("TUG") program, along with the deployment of 1,653 circuit miles of covered conductors in high fire risk areas. The final decision authorized a two-way Grid Hardening Balancing Account to track the difference between actual TUG costs up to the approved mile limit and the authorized amounts, with spending in excess of 110% of authorized amounts subject to reasonableness review. SCE is also authorized to record incremental TUG costs that exceed the approved scope in the existing Wildfire Mitigation Plan Memorandum Account, with cost recovery subject to reasonableness review. Additionally, the final decision authorized SCE to establish a memorandum account to track and record capital expenditures above the amounts authorized to support SCE's grid readiness for future transportation electrification demand, with cost recovery subject to reasonableness review.

Cost of Capital Application 

SCE's 2025 CPUC-authorized ROE is 10.33% and weighted average return on rate base is 7.66%. 

On March 20, 2025, SCE filed its application with the CPUC for authority to establish its authorized cost of capital for utility operations for a three-year term beginning in 2026 and to reset the related annual cost of capital adjustment mechanism. In August