Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 20

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 20
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-tax income. See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate.

2023 vs 2022

Operating Revenue

An increase in operating revenue of $897 million is primarily due to:

•A net decrease in revenues of $1,231 million related to lower expenses that are passed through to customers. The decrease in pass-through revenues are offset by decreases in the following:

◦Purchased power and fuel expense of $889 million

◦Operation and maintenance expense of $482 million 

◦Wildfire-related claims, net of insurance recoveries of $37 million

These pass-through decreases are partially offset by increases in the following: 

◦Income tax expense of $43 million

◦Interest expense of $39 million

◦Property and other taxes of $38 million

◦Other income, net, of $37 million

◦Depreciation and amortization expense of $17 million

•An increase in CPUC-related revenues of $320 million primarily due to the escalation mechanism set forth in the 2021 GRC decision.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $889 million, primarily lower prices and volumes for both purchased power and gas, partially offset by hedging activities (offset in "Operating Revenue" above).

Operation and Maintenance

A decrease in operation and maintenance expense of $588 million is primarily due to: 

•A net decrease in expense of $482 million related to the operating expenses that are passed through to customers and offset in "Operating Revenue" above. The decrease is mainly driven by:

◦$463 million due to lower previously deferred wildfire mitigation and emergency restoration costs authorized for recovery in 2023 than in 2022

◦$218 million lower insurance costs due to SCE's expanded use of customer-funded self-insurance since July 2023 

◦$79 million lower uncollectible accounts expense primarily due to the recognition of $109 million previously deferred uncollectible accounts expense in 2022

◦$56 million lower transmission access charges

The decreases are partially offset by:

◦$209 million previously deferred wildfire insurance premium authorized for recovery in 2023

◦$125 million higher public purpose program expenses

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Table of Contents

•The 2022 charges of $95 million related to the CPUC's decision on SCE's Upstream Lighting Program, consisting of $76 million in disallowed