Company: SCE-PL
Filing Date: 2025-09-08
Form Type: SF-1
Source: 0001193125-25-198426
Chunk: 16

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-09-08
Form: SF-1
Chunk 16
---
 might attempt to take actions that could reduce the value of your investment in the bonds

The Wildfire Financing Law provides that a financing order is irrevocable and that the
California commission may not directly or indirectly, by any subsequent action, rescind, alter or amend a financing order or reduce or impair the fixed recovery charges authorized under a financing order, except for the true-up adjustments to the fixed recovery charges. However, the California commission retains the power to adopt, revise or rescind rules or regulations affecting SCE.

For instance, the California commission has adopted and may, from time to time in the future, adopt consumer protection regulations that may
prolong the time it takes to complete the process of disconnecting consumers for nonpayment or completely prevent disconnections in excess of certain set thresholds. Please read “The Depositor, Seller, Initial Servicer and Sponsor—Billing and Collections” and “The Depositor, Seller, Initial Servicer and Sponsor—Disconnection Order” in this prospectus. Similarly, the California commission may prevent disconnections during
extreme weather conditions, such as when temperatures above 100 degrees or below 32 degrees are forecasted based on a 72-hour look-ahead period. Any new or amended regulations or orders from the California
commission might affect the ability of the servicer to disconnect consumers for nonpayment or prevent disconnections in excess of certain regional thresholds, which may ultimately hinder SCE’s ability to collect fixed recovery charges in full,
and on a timely basis, which may in turn negatively impact, the rating of the bonds or their price and, accordingly, the amortization of the recovery bonds and their weighted average lives.

The servicer is required to submit with the California commission, on our behalf, certain adjustments of the fixed recovery charges. Please
read “SCE’s Financing Order— Fixed Recovery Charges—The Financing Order Requires the Servicer to Periodically “True-Up”the Fixed Recovery Charge” and
“The Servicing Agreement—True-UpAdjustment Letters” in this prospectus. Challenges to or delays in the true-up process might adversely affect
the market perception and valuation of the bonds. Also, any litigation, as well as being costly and time-consuming, might materially delay fixed recovery charge collections due to delayed implementation of
true-up adjustments and might result in missing payments or payment delays and lengthened weighted average lives of the bonds.

The servicer may not fulfill its obligations to act on behalf of the bondholders to protect bondholders from actions by the California commission or the State of California,