Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 70

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 70
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2025, SCE updated its costs of long-term debt and preferred equity requests based on updated information. As a result, SCE is seeking an ROE of 11.75%, a cost of long-term debt of 4.71%, and a cost of preferred equity of 6.89%. SCE also seeks to maintain its current authorized capital structure, after CPUC-allowed exclusions, of 52% common equity, 43% long-term debt, and 5% preferred equity. Based on the capital structure and cost factors discussed above, SCE's weighted average return on rate base would be 8.48% for 2026. If approved, this application would increase SCE's revenue requirement in 2026 by approximately $448 million compared to the cost of capital currently in rates. In July 2025, the CPUC set a schedule for the 2026 cost of capital proceeding that would result in a proposed decision in the fourth quarter of 2025.

Capital Program

Capital Expenditures

Total capital expenditures (including accruals) were $4.7 billion and $4.0 billion for the nine months ended September 30, 2025 and 2024, respectively.

SCE's capital expenditure forecast has been updated since the filing of the 2024 Form 10-K to reflect planned CPUC-jurisdictional spending as informed by the 2025 GRC final decision (See "—2025 General Rate Case— Capital Expenditures" for further information) and expected FERC capital expenditures. 

The table below reflects forecast capital expenditures for 2025 – 2028, based on authorized and planned CPUC-jurisdictional spending and current management expectations of FERC-jurisdictional spending. CPUC-jurisdictional spending includes amounts authorized in the 2025 GRC, and other planned non-GRC CPUC capital spending. Forecast expenditures for FERC capital projects are subject to change due to factors such as timeliness of permitting, licensing, regulatory approvals, contractor bids, supply chain issues, and other operational considerations. 

Based on management's judgment of potential capital spending variability informed by historical precedent of previously authorized amounts, potential permitting delays, and other operational considerations, a range case was prepared reflecting reductions to CPUC non-GRC capital expenditures and FERC capital expenditures. 

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Table of Contents

SCE's 2025 – 2028 forecast for major capital expenditures is set forth in the table below:

(in billions)202520262027202