Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 70

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 70
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, net228 282 (54)Income before income taxes2,579 677 1,902 Income tax expense (benefit)502 (1)(503)Net income2,077 678 1,399 Less: Preference stock dividend requirements67 90 23 Net income available to common stock$2,010 $588 $1,422 

Operating Revenue

Lower operating revenue of $54 million was primarily due to:

•A decrease in revenue of $104 million related to net lower expenses that are passed through to customers, which mainly included decreases in:

•Operation and maintenance expense of $119 million;

•Income tax benefits of $43 million;

•Purchased power and fuel expense of $38 million; 

•Wildfire-related claims, net of recoveries of $35 million;

offset by increases in:

•Depreciation and amortization expense of $79 million;

•Interest expense of $32 million;

•Property and other taxes of $16 million; and

•Other income, net of $4 million.

•An increase in revenue of $100 million was due to higher balancing account rate base primarily associated with wildfire mitigation efforts.

•A decrease in revenue of $39 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.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $38 million was primarily due to lower hedging losses (offset in "Operating Revenue" above).

11

Operation and Maintenance

A decrease in operation and maintenance expense of $34 million was primarily due to:

•A net decrease of $119 million mainly related to lower 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 decrease of $58 million related to recoveries of legal costs under the TKM Settlement Agreement, including ongoing activities after the initial implementation. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•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 "Management