Company: SCE-PL
Filing Date: 2025-11-24
Form Type: 424B1
Source: 0001193125-25-293755
Chunk: 28

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-24
Form: 424B1
Chunk 28
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 | the bankruptcy court might rule that neither our property interest nor the trustee’s lien extends to fixed                                                                                     
 recovery charges in respect of electricity consumed after the commencement of SCE’s bankruptcy case, with the result that the bonds would represent only general unsecured claims against SCE, |

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| • |     | we and SCE might be relieved of any obligation to make any payments on the bonds during the pendency of the                     
 bankruptcy case and might be relieved of any obligation to pay interest accruing after the commencement of the bankruptcy case, |

| • |     | SCE might be able to alter the terms of the bonds as part of its plan of reorganization, |

| • |     | the bankruptcy court might rule that the fixed recovery charges should be used to pay, or that we should be 
 charged for, a portion of the cost of providing electric service, or                                        |

| • |     | the bankruptcy court might rule that the remedy provisions of the sale agreement are unenforceable, leaving us           
 with an unsecured claim for actual damages against SCE that may be difficult to prove or, if proven, to collect in full. |

Furthermore, if SCE enters bankruptcy proceedings, it might be permitted to stop acting as servicer, and it may be difficult to find a third party to act as servicer. The failure of the servicer to perform its duties or the inability to find a successor servicer might cause payment delays or losses on your investment in the bonds. Also, the mere fact of a servicer or seller bankruptcy proceeding might have an adverse effect on the resale market for the bonds and on the value of the bonds. The sale of the recovery property might be construed as a financing and not a sale in a case of SCE’s bankruptcy which might delay or limit payments on the bonds The Wildfire Financing Law provides that the characterization of a transfer of recovery property as a sale or other absolute transfer will not be affected or impaired by treatment of the transfer as a financing for U.S. federal or state tax purposes or financial reporting purposes. We and SCE will treat the transaction as a sale under applicable law, although for financial reporting and income and franchise tax purposes the transaction is intended to be treated as a financing. In the event of a bankruptcy of SCE, a party in interest in the bankruptcy might assert that the sale of the recovery property to us was a financing transaction and not a “sale or other absolute transfer” and that the treatment of the transaction for financial reporting and tax purposes as a financing and not a sale lends weight