Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 131

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 131
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 786 297 Increase (decrease) in income tax from:State tax, net of federal tax effect50 18 156 — Property-related(72)(78)(198)(195)Other(19)— (39)(8)Total income tax expense$203 $95 $705 $94 Effective tax rate17.5%12.9%18.8%6.7%The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirement in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.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.Tax DisputesThe tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2021 – 2023, and 2013 – 2018 & 2020 – 2023, respectively.

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Note 9.  Compensation and Benefit Plans

Pension PlansNet periodic pension expense components are:Three months ended September 30,Nine months ended September 30,(in millions)2025202420252024Edison International:Service cost$23 $24 $69 $72 Non-service cost (benefit)Interest cost48 44 144 132 Expected return on plan assets(58)(58)(174)(176)Amortization of net loss11 — 2 2 Regulatory adjustment(8)(5)(23)(15)Total non-service benefit2(17)(19)(51)(57)Total expense$6 $5 $18 $15 SCE:Service cost$23 $24 $69 $72