Company: SCE-PL
Filing Date: 2025-11-24
Form Type: 424B1
Source: 0001193125-25-293755
Chunk: 9

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-24
Form: 424B1
Chunk 9
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 Risks; Natural Disaster Recovery Risks:The collection of fixed recovery charges on a timely and sufficient basis depend upon
the ability of the servicer to accurately forecast customer usage. If the servicer inaccurately forecasts consumption or underestimates customer delinquencies for any reason, there could be a shortfall or material delay in fixed recovery charge
collections. Factors which might cause inaccurate projections of usage or customer delinquencies, include unanticipated weather conditions, rolling blackouts due to capacity constraints, cyber attacks on SCE or CAISO infrastructure, extreme
weather-related incidents (including events caused, or exacerbated, by climate change), such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events, other natural disasters (such as earthquakes), pandemics, such as COVID-19, and other events that cause regional, statewide, national or global disruption. SCE’s ability to collect fixed recovery charges from customers may also be impacted by some of these same factors.

These same natural and man-made disasters may affect SCE’s ability to deliver energy. As the
fixed recovery charge is a consumption-based charge, any unexpected failure to deliver electricity may impact the collection of fixed recovery charges. SCE’s operations could be impacted by severe weather, earthquakes and wildfires. Recent
wildfires have resulted in rolling power shutoffs throughout the State of California. Any disruption in SCE’s ability to deliver energy could cause a delay or reduction in fixed recovery charge collections.

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Servicing of the fixed recovery charges may also be adversely affected by growth in the
number of ESPs which elect to bill and collect the charge and who fail to do so promptly or completely.

It may be difficult for us to
find a replacement servicer should SCE default in its obligations. Assuming we can obtain a successive servicer, the successor servicer may be less effective in servicing the charges, potentially resulting in a delay in collections, and will be more
costly.

Risks Associated with the Unusual Nature of Recovery Property:The unusual nature of the recovery property makes it
unlikely that, in the event of a default, the recovery property could be sold. Although the bonds may be accelerated in the event of a default, as a practical matter, the fixed recovery charges would likely not be accelerated.

Risks Associated with the Potential Bankruptcy of the Seller or the Servicer:In the event of a bankruptcy by SCE, the investor may
experience a delay in payment or a default on payment of the bonds due to various factors, including the comingling of fixed