Company: SCE-PL
Filing Date: 2025-09-08
Form Type: SF-1
Source: 0001193125-25-198426
Chunk: 27

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-09-08
Form: SF-1
Chunk 27
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snow pack, and earthquakes can cause over-topping or failure at an SCE dam resulting in a rapid release of water that could cause, among other things, public safety issues, property damage and operational issues.

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Weather-related incidents and other natural disasters can lead to lost revenue and increased
expense, including higher maintenance and repair costs, which SCE may not be able to recover from its customers. In addition, these occurrences could lead to significant claims for damages, including for loss of life and property damage, as well as
regulatory penalties and disallowances. These occurrences could materially affect SCE’s business and financial condition, and the inability to restore power to SCE’s customers may temporarily reduce electricity sales, resulting in
reduced or delayed fixed recovery charge collections and possible delays in payment on the bonds.

Specifically, in January 2025, several
wind-driven wildfires impacted portions of SCE’s service area, causing loss of life, substantial damage and service outages for SCE customers. One of the largest of these wildfires, the Eaton Fire, ignited in SCE’s service area in Los
Angeles County and spread under conditions of an extreme Santa Ana windstorm. Previous wildfires, including the Eaton Fire and future wildfires could lead to significant losses which may materially impact SCE and Edison International. In addition,
the Wildfire Insurance Fund created by AB 1054 and other provisions of AB 1054 may not be sufficient or effectively mitigate the significant risk faced by California investor-owned utilities related to liability for damages arising from catastrophic
wildfires where utility facilities are a substantial cause which could have a detrimental effect on SCE’s business and financial condition, which could impact its ability to restore power to customers, resulting in reduced or delayed fixed
recovery charge collections and possible delays in payment on the bonds.

In addition, weather-related incidents and natural disasters
could lead to legislative action adverse to the bondholders taken in response to such events, and such legislation, if challenged as a violation of the State pledge, might be defended on the basis of public necessity. Please read “Risk Factors—Risks Associated with Potential Judicial, Legislative or Regulatory Actions—Future state legislative action, including a voter initiative, might attempt to reduce the value of your investment in the bonds” in this
prospectus.

RISKS ASSOCIATED WITH POTENTIAL BANKRUPTCY PROCEEDINGS OF THE SELLER OR THE SERVICER

For a more detailed discussion of the following bankruptcy risks, please read “How a Bankruptcy May Affect Your Investment