Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 144

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 144
---
 gains, net of losses, were $1.7 billion and $1.8 billion at December 31, 2024 and 2023, respectively.The following table summarizes the gains and losses for the trust investments:Years ended December 31,(in millions)202420232022Gross realized gains$326 $323 $150 Gross realized losses(24)(73)(127)Net unrealized (losses) gains for equity securities(19)103 (369)Due to regulatory mechanisms, changes in the assets of the trusts from income or loss items do not materially affect earnings.

Note 11. Regulatory Assets and Liabilities

Included in SCE's regulatory assets and liabilities are regulatory balancing accounts. CPUC-authorized balancing account mechanisms require SCE to refund or recover any differences between forecasted and actual costs. The CPUC has authorized balancing accounts for specified costs or programs such as fuel, purchased power, demand-side management programs, wildfire related costs, nuclear decommissioning and public purpose programs. Certain of these balancing accounts include a return on rate base of 7.87% and 7.44% in 2024 and 2023, respectively. The CPUC authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales.Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts.

96

Table of Contents

Regulatory AssetsSCE's regulatory assets included on the consolidated balance sheets are:December 31,(in millions)20242023Current:Regulatory balancing and memorandum accounts$2,723 $2,502 Other25 22 Total current2,748 2,524 Long-term:Deferred income taxes5,982 5,533 Unamortized investments, net of accumulated amortization115 110 Unamortized losses on reacquired debt88 99 Regulatory balancing and memorandum accounts867 1,257 Environmental remediation222 226 Recovery assets1,512 1,558 Other100 114 Total long-term8,886 8,897 Total regulatory assets$11,634 $11,421 In accordance with the accounting standards applicable to rate-regulated enterprises, SCE defers costs as regulatory assets that are probable of future recovery from customers and has recorded regulatory assets for these incremental costs at December 31, 2024. While SCE believes such costs are probable of future