Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 47

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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 from CPUC and FERC customers, and was excluded from insurance recoveries of Edison International.2In the third quarter of 2025, SCE recorded $300 million in losses related to the Eaton Subrogation Settlement, including accrued estimated losses. Of these accrued estimated losses, $5 million was deferred as a FERC regulatory asset, eligible to be included in FERC rates when the losses are paid. As a result, wildfire-related claims reported on SCE's condensed consolidated statements of income was $295 million for the nine months ended September 30, 2025.3For the nine months ended September 30, 2024, EIS incurred $1 million insurance expense. This amount was included in the insurance recoveries of SCE but were excluded from those of Edison International.In total, through September 30, 2025, SCE has recorded estimated losses of $11.4 billion, expected recoveries from insurance and third parties of $2.8 billion, expected recoveries through electric rates of $1.9 billion, and recoveries from customer-funded wildfire self-insurance of $300 million related to the 2017/2018 Wildfire/Mudslide Events, the Other Wildfire Events, and the Eaton Fire. The after-tax net charges to earnings recorded through September 30, 2025, have been $4.6 billion.Recoveries SCE has exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. Expected recoveries from insurance recorded for the Other Wildfire Events are supported by SCE's insurance coverage for multiple policy years. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable.Recovery of SCE's losses realized in connection with the Woolsey Fire and the Other Wildfire Events in excess of available insurance is subject to approval by regulators. The CPUC and FERC may not allow SCE to recover uninsured 

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losses through electric rates, including by requiring refund of amounts recovered, if it is determined that such losses were not prudently incurred. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets in the period it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on the probability of future recovery. While Edison International and SCE may incur material losses in excess of the amounts accrued for certain of the Other Wildfire Events