Company: SCE-PL
Filing Date: 2025-11-17
Form Type: 424B3
Source: 0001193125-25-283973
Chunk: 58

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-17
Form: 424B3
Chunk 58
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 based on an approach that is consistent with the method currently in place for calculating Municipal DL obligations. SCE’s Municipal DL tariffs provide for calculation of certain nonbypassable charges based on consumption as metered or estimated. Historically, SCE has administered these tariffs by reaching agreement with the Municipal DL customer or the local municipality serving the Municipal DL customer for the payment of one or more lump sums based on a mutually acceptable estimate of the Municipal DL customer’s nonbypassable cost obligations, including obligations similar to the fixed recovery charges. In addition, recent amendments to California law require approval of the California commission to the voluntary or involuntary change in ownership of the assets of an electrical or gas corporation to ownership by a public entity. In the financing order, the California commission also commits, in furtherance of the State pledge, in connection with any Commission proceeding to review the municipalization of SCE facilities by an entity that does not set retail rates subject to the California commission, to establish conditions to the approval of such municipalization transaction by the California commission which would ensure continued payment of Fixed Recovery Charge by placing such conditions on the California commission’s approval of the transaction. See “ Risk Factors—Risks Associated with Potential Judicial, Legislative or Regulatory Actions—It may be difficult to estimate and accurately collect fixed recovery charges from customers who self-generate and who disconnect from SCE ’ s grid ” and “ The Depositor, Seller, Initial Servicer and Sponsor—Municipalization; Municipal Departing Load” in this prospectus. The Financing Order Establishes the Methodology used to Calculate the Fixed Recovery Charges The financing order describes the methodology by which the fixed recovery charges will be calculated and adjusted from time to time by the servicer pursuant to true-upadvice letters submitted with the California commission as described below. Pursuant to the financing order, the fixed recovery charge will be a per kWh charge assessed against each customer as part of each customer’s regular monthly billing. A different fixed recovery charge will be calculated for each customer class (each, a FRC consumer class), based upon the allocation factor assigned to such class in Marginal Cost and Revenue Allocation Settlement Agreement ( allocation factors), as such allocation factors are adjusted for exempted customers (which have no payment responsibility for the fixed recovery charges). The allocations factors, once set at the time of issuance, will remain the same for the life of the bonds, with adjustments for sales changes to collect the revenue requirement, except in the event of a non-standard true-up adjustment. The servicer will determine the fixed recovery charge for each F