Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 73

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 73
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, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preference shareholders, and the outcome of tax, regulatory and legal matters.

In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, and capital market and bank financings. SCE also has availability under its credit facility and agreements with lenders to issue bilateral unsecured standby letters of credit to fund cash requirements. SCE may issue additional debt for general corporate purposes.

In April 2025, SCE requested approval from the CPUC to securitize $1.6 billion of cost recoveries authorized under the TKM Settlement Agreement and received a proposed decision in July 2025 that, if adopted, would authorize the transaction. For further details, see "Management Overview—Southern California Wildfires and Mudslides." 

During the six months ended June 30, 2025, SCE issued a total of $3.0 billion of first and refunding mortgage bonds. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

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The following table summarizes SCE's current long-term issuer credit ratings and outlook from the major credit rating agencies as of July 24, 2025:

Moody'sFitchS&PCredit RatingBaa1BBBBBBOutlookStableWatch NegativeNegative

SCE's credit ratings may be affected by various factors. These include, but are not limited to, failure by regulators to successfully implement AB 1054 in a consistent and credit-supportive manner, or investigations into wildfire events or associated settlements that result in material utility liability exposure, particularly in the absence of credit-supportive legislative actions, such as modifications to AB 1054 that are supportive of the durability of the Wildfire Insurance Fund. Additionally, a persistent increase in the frequency and severity of wildfires in California may lead the credit rating agencies to reassess SCE's wildfire-related operational risk exposure or believe the Wildfire Insurance Fund is at risk of material depletion. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings or other borrowings. In addition, some of SCE's power procurement contracts and environmental remediation obligations would require SCE to pay related liabilities or post additional collateral if SCE's credit rating were to fall below investment grade.