Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 145

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 145
---
 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 recovered over the original amortization period of the reacquired debt over periods ranging from 10 to 40 years or the life of the new issuance if the debt is refunded or refinanced.SCE's regulatory assets related to environmental remediation represent a portion of the costs incurred at certain sites that SCE is allowed to recover through customer rates. See "Environmental Remediation" discussed in Note 12.Recovery assets represent the balance associated with the Recovery Property and prudently incurred financing costs securitized with issuance of the associated bond. The recovery period is until 2047, when the bonds and interest are paid in full. For further details, see Note 3.

97

Table of Contents

Regulatory LiabilitiesSCE's regulatory liabilities included on the consolidated balance sheets are:December 31,(in millions)20242023Current:Regulatory balancing and memorandum accounts$1,144 $704 Energy derivatives165 16 Other38 43 Total current1,347 763 Long-term:Costs of removal2,520 2,635 Deferred income taxes2,163 2,211 Recoveries in excess of ARO liabilities1,748 1,498 Regulatory balancing and memorandum accounts2,023 1,395 Pension and other postretirement benefits1,690 1,664 Other15 17 Total long-term10,159 9