Company: SCE-PL
Filing Date: 2025-11-24
Form Type: 424B1
Source: 0001193125-25-293755
Chunk: 46

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-24
Form: 424B1
Chunk 46
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 issued by the CPUC and permits the CPUC to impose an irrevocable, nonbypassable fixed recovery charge on existing and future customers located in the service territory of the electrical
corporation as of the date of the financing order, subject to certain exceptions. Please read “—Exemptions from Fixed Recovery Charges” below and “SCE’s Financing Order” in this prospectus. The
Wildfire Financing Law authorized the fixed recovery charge to recover: (a) recovery costs equal to the principal amount of the recovery bonds and (b) costs of recovering, financing, or refinancing those recovery costs, including the costs
of servicing and retiring the recovery bonds.

The Wildfire Financing Law provides that fixed recovery charges are nonbypassable, meaning
that they are payable by any individual, governmental body, trust, business entity, or nonprofit organization, subject to the exceptions described below, that consumes electricity that has been transmitted or distributed by means of electric
transmission or distribution facilities, whether those electric transmission or distribution facilities are owned by the consumer, the electrical corporation, or any other party. In addition, under the Wildfire Financing Law, fixed recovery charges
may consist of distribution, connection, disconnection and termination rates and charges and other rates and charges authorized by a financing order.

Effective September 19, 2025, California Senate Bill 254 (“SB 254”) amended the Wildfire Financing Law to, among other things,
permit a large electrical corporation, such as SCE, to file an application for a financing order to recover wildfire costs related to fires ignited between January 1, 2025 and September 19, 2025 through the issuance of recovery bonds, if
such costs have been settled or finally adjudicated and the Wildfire Insurance Fund (created pursuant to AB 1054) has been exhausted. Under SB 254, the CPUC is authorized to approve the issuance of recovery bonds before the large electrical
corporation files an application for the CPUC to determine that the related wildfire costs were “just and reasonable.” However, SB 254 would require the large electrical corporation to credit ratepayers for any costs or expenses
disallowed by the CPUC in a subsequent proceeding. In addition, under SB 254 SCE expects to exclude approximately $2.9 billion of wildfire mitigation capital expenditures approved on or after January 1, 2026, from the equity portion of SCE’s
rate base. SCE can apply for irrevocable orders from the CPUC to