Company: SCE-PL
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000827052-25-000074
Chunk: 60

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 7
Chunk 60
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 for 2025 – 2028, calculated based on the rate base outlined in the 2025 GRC proposed decision, and incorporating approved CPUC non-GRC projects and programs, and forecasted FERC capital expenditures, as reflected in the 2024 Form 10-K.

(in billions)2025202620272028Rate base as described above$48.5 $51.4 $53.1 $56.3 

SCE cannot predict the revenue requirement the CPUC will ultimately authorize. SCE will continue to recognize revenue based on the 2024 authorized revenue requirement, adjusted to reflect the 2025 CPUC-authorized ROE, until a final GRC decision is issued. The CPUC has approved the establishment of a memorandum account, making the authorized revenue requirement changes effective January 1, 2025. Under the proposed decision, the increase in authorized revenues for January 2025 through September 2025 would be collected over a 24-month period beginning October 1, 2025.

The 2025 GRC proceeding is ongoing, and SCE will file comments on the proposed decision in August 2025. A final decision could result in material changes to the proposed decision.

Cost of Capital Application 

SCE's 2025 CPUC-authorized ROE is 10.33% and weighted average return on rate base is 7.66%. 

On March 20, 2025, SCE filed its application with the CPUC for authority to establish its authorized cost of capital for utility operations for a three-year term beginning in 2026 and to reset the related annual cost of capital adjustment mechanism. In its application, SCE seeks an ROE of 11.75%, a cost of long-term debt of 4.75%, and a cost of preferred equity of 6.95%. 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 8.50% for 2026. If approved, this application would increase SCE's revenue requirement by approximately $382 million compared to the cost of capital currently in rates. In July 2025, the CPUC set a schedule for the 2025 cost of capital proceeding that would result in a proposed decision in the fourth quarter of 2025.

Capital