Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 97

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 97
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$418 

1Non-cash items include depreciation and amortization, equity allowance for funds used during construction, impairment, deferred income taxes, Wildfire Insurance Fund amortization expenses, and other.

2Changes in working capital items include receivables, inventory, accounts payable, tax receivables and payables, derivative assets and liabilities, and other current assets and liabilities.

3The amount in 2025 represents payments of $208 million for 2017/2018 Wildfire/Mudslide Events, $335 million for Other Wildfire Events, and $225 million for Eaton Fire, partially offset by an increase in wildfire estimated losses of $321 million. The amount in 

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2024 represents payments of $636 million for 2017/2018 Wildfire/Mudslide Events and $342 million for Other Wildfire Events, partially offset by an increase in wildfire estimated losses of $674 million.

4Includes nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information. The 2025 amount includes $236 million in cash proceeds primarily from the monetization of investment tax credits related to utility owned storage projects, which SCE expects to flow through to customers. The 2024 amount also includes cash received from customers to fund certain construction projects and cash received from certain state incentive programs to pass through to customers. 

Net cash provided by operating activities was impacted by the following:

Net income and non-cash items increased by $2.8 billion primarily due to net earnings recorded in 2025 from approximately $1.6 billion cost recoveries authorized under the TKM Settlement Agreement (which offset in the regulatory assets and liabilities changes discussed below), higher revenue from the 2025 GRC final decision, and a benefit to interest expense related to cost recoveries authorized under the TKM Settlement Agreement, partially offset by the net impact of wildfire related regulatory decisions received in the second quarter of 2025.

The net outflows in cash resulting from working capital was $304 million and $834 million during the nine months ended September 30, 2025 and 2024, respectively. Net cash outflows in both 2025 and 2024 were primarily due to the increases in customer receivables and unbilled revenue, partially offset by higher energy payables, in both years, driven by higher energy usage during the summer months. The lower net cash outflow in 2025 compared to 2024 was mainly due to cash collected from the sale of renewable energy