Company: SCE-PL
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000827052-25-000043
Chunk: 63

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 7
Chunk 63
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 of $19 million;

•Interest expense of $13 million; and

•Property and other taxes of $8 million.

Additionally, there was an increase in revenue of $6 million primarily due to $33 million higher balancing account rate base, partially offset by a $20 million decrease in the authorized rate of return resulting from the cost of capital adjustment 

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mechanism. For more information about the cost of capital adjustment mechanism, see "Management Overview—Cost of Capital" in the 2024 MD&A.

Purchased Power and Fuel

An increase in purchased power and fuel costs of $39 million was primarily due to higher purchased power volumes and higher capacity costs, partially offset by hedging activities (offset in "Operating Revenue" above).

Operation and Maintenance

A decrease in operation and maintenance expense of $329 million was primarily due to:

•A net decrease of $305 million related to lower previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024. These expenses are passed through to customers and offset in "Operating Revenue" above. 

•A decrease of $59 million related to recoveries of legal costs under the TKM Settlement Agreement. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•A charge of $50 million recorded in 2025 related to shareholder-funded wildfire mitigation costs stipulated under the TKM Settlement Agreement. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Wildfire-related Claims, Net of Recoveries

A decrease in wildfire-related claims, net of recoveries of $1,969 million was primarily due to:

•A decrease of $1,341 million related to recoveries of claim costs authorized under the TKM Settlement Agreement. 

•A decrease of $490 million related to claim costs for 2017/2018 Wildfire/Mudslide Events recorded in 2024, including $27 million expected for FERC recovery (offset in "Operating Revenue" above). 

•A decrease of $124 million related to claim costs recorded in 2024 for Other Wildfire Events, including $7 million expected for FERC recovery (offset in "Operating Revenue" above). 

•A decrease of $14 million related to insurance reimbursements recorded in 2025 for costs incurred in previous years