Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 76

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 76
---
") Program 

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system that has been in service for over 15 years and will soon reach the end of its service life. SCE requested funding through a balancing account of recorded and forecast capital expenditures of approximately $1.1 billion and operations and maintenance expenditures of $239 million. 

2026 FERC Formula Rate Annual Update

In June 2025, SCE provided its preliminary 2026 annual transmission revenue requirement update to interested parties. The update proposes a 2026 transmission revenue requirement of $1.5 billion, which is a $153 million, or 11%, increase from the 2025 annual rates. The increase is primarily due to 2026 rates reflecting recovery of previous undercollections. SCE expects to file its 2026 annual update with the FERC by December 1, 2025, with the proposed rates effective January 1, 2026.

Capital Investment Plan

Utility Owned Storage

As discussed in "Liquidity and Capital Resources—Capital Investment Plan" in the 2024 MD&A, in October 2021, SCE contracted with Ameresco, Inc. ("Ameresco") for the construction of utility owned energy storage projects to be in service by August 1, 2022 at three sites in SCE's service area with an aggregate capacity of 537.5 MW, consisting of a 225 MW project, a 200 MW project, and a 112.5 MW project. The 200 MW and 112.5 MW projects went in service during the third quarter of 2024. While Ameresco has stated that the 225 MW project met the requirements to go in service in May 2025, SCE has objected, and discussions are ongoing between the parties.

Margin and Collateral Deposits

Certain derivative instruments, power and energy procurement contracts, and other contractual arrangements contain collateral requirements. Future collateral requirements may differ from the requirements at June 30, 2025, due to the addition of incremental power and energy procurement contracts with collateral requirements, if any, the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations, and the impact of SCE's credit ratings falling below investment grade.

The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would have been required as of June 30, 2025, if SCE's credit rating had been downgraded to below investment grade as