Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 96

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 96
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 consolidated federal tax returns beginning in 2026. SCE will also be subject to CAMT in 2026.

Under the IRA, SCE generated investment tax credits of approximately $231 million in 2024 related to utility owned storage projects and $29 million in nuclear production tax credits. In the third quarter of 2025, SCE monetized the majority of these credits for $236 million. SCE expects to pass the proceeds, net of transaction fees, back to customers.

The One Big Beautiful Bill Act of 2025

On July 4, 2025, the One Big Beautiful Bill Act of 2025 ("OBBBA") was enacted into law. The OBBBA, among other things, phases out various clean energy credits enacted as part of the IRA. These phase-outs are not expected to impact the investment tax credits related to SCE's utility owned storage projects discussed above under "Edison International Income Taxes—Inflation Reduction Act of 2022." Edison International and SCE are continuing to evaluate the full scope of potential financial impacts, with most of these impacts expected to be passed through to customers under regulated ratemaking requirements.

Historical Cash Flows

SCE

Nine months ended September 30,Change(in millions)20252024Inflow/(Outflow)Net cash provided by operating activities$4,455 $4,037 $418 Net cash provided by financing activities302 188 114 Net cash used in investing activities(4,488)(4,093)(395)Net increase in cash, cash equivalents and restricted cash$269 $132 $137 

Net Cash Provided by Operating Activities

The following table summarizes major categories of net cash for operating activities as provided in more detail in SCE's condensed consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024.

Nine months ended September 30,Change(in millions)20252024Inflow/(Outflow)Net income$3,036 $1,319 Non-cash items13,246 2,173 Subtotal6,282 3,492 2,790 Changes in cash flow resulting from working capital2(304)(834)530 Regulatory assets and liabilities(1,373)1,557 (2,930)Wildfire-related claims3(447)(304)(143)Other noncurrent assets and liabilities4297 126 171 Net cash provided by operating activities$4,455 $4,037