Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 114

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 114
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2025 and 2024, respectively, 9,346,533 and 2,040,879 shares of common stock for the nine months ended September 30, 2025 and 2024, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.Revenue RecognitionRevenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period.Regulatory Proceedings2025 General Rate CaseSCE accounts for regulatory decisions in the period in which they are received and, accordingly, recorded the impact of the 2025 GRC final decision in the third quarter of 2025. In the absence of a final GRC decision, SCE recognized revenue in the first and second quarters of 2025 based on the 2024 authorized revenue requirement. The final decision received in September 2025 authorized a base revenue requirement of $9.7 billion for 2025, an increase of $1.1 billion over the revenue requirements authorized for 2024. The CPUC has approved the establishment of a memorandum account, making the authorized revenue requirement changes effective January 1, 2025. Under the final decision, the increase in authorized revenues of $902 million for January 2025 through September 2025 will be collected over a 24-month period beginning October 1, 2025.FERC 2025 Formula Rate UpdateIn November 2024, SCE filed its 2025 annual transmission revenue requirement update with the FERC, with rates effective January 1, 2025. The update reflects a 2025 transmission revenue requirement of $1.3 billion, which is a $220 million, or 20%, increase from the 2024 annual revenue requirement. The lower revenue in 2024 was due to a return of prior year 

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overcollections. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first nine months of 2025 based on the FERC 2025 annual update rate, subject to refund.Impairment of Long-Lived AssetsIn September 2025, the CPUC issued a final decision in SCE's 2025 GRC proceeding. As a result of the decision, SCE recorded an $88 million impairment of utility property, plant