Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 86

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 86
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7/2018 Wildfire/Mudslide Events recorded in 2024, $27 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $124 million related to claim costs recorded in 2024 for Other Wildfire Events, $7 million of which was expected to be recovered through FERC rates (offset in "Operating Revenue" above).

•A decrease of $14 million related to insurance reimbursements recorded in 2025 for costs incurred in previous years related to Other Wildfire Events.

partially offset by:

•An increase of $295 million related to wildfire claim costs recorded in 2025 for the Eaton Subrogation Settlement. These costs were covered by customer-funded wildfire self-insurance and expected FERC recovery (both offset in "Operating Revenue" above). 

For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Depreciation and Amortization

An increase in depreciation and amortization expense of $291 million was primarily due to higher plant balances, $59 million of which were pass-through costs mainly associated with utility owned energy storage projects and wildfire mitigation costs (offset in "Operating Revenue" above). 

Property and Other Taxes

An increase in property and other taxes expense of $18 million was primarily due to higher assessed property values, $10 million of which were pass-through costs mainly associated with utility owned energy storage projects and wildfire mitigation costs (offset in "Operating Revenue" above).

Asset Impairment

Charges of $96 million recorded in 2025 primarily related to an $88 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision. See "Management Overview—2025 General Rate Case" for further information.

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Interest Expense

A net decrease in interest expense of $141 million was primarily due to a $171 million benefit related to cost recoveries authorized under the TKM Settlement Agreement, partially offset by higher interest expense from higher borrowings, $23 million of which was pass-through expense mainly associated with wildfire mitigation efforts and utility owned energy storage projects (offset in "Operating Revenue" above).

Other Income, net

A decrease in other income, net of $61 million was primarily due to lower interest income driven by lower balancing account undercollection balances, and $6