Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 144

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 144
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 2027.SCE's internal review into the facts and circumstances of the Eaton Fire is complex and ongoing. SCE's review includes ongoing inspections of its facilities and records and of third-party information and testing. While SCE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, concerning circumstantial evidence suggests that a de‑energized idle SCE transmission facility in the preliminary area of origin may have been associated with the ignition of the fire. Additionally, while SCE has not determined the mechanism of ignition of the Eaton Fire, it is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment could be found to have been associated with the ignition of the Eaton Fire and is pursuing settlement of claims through its Wildfire Recovery Compensation Program.In September 2025, SCE entered into an agreement (the "Eaton Subrogation Settlement") with an insurance claimant in the Eaton Fire litigation (the "Subrogation Claimant"), under which SCE agreed to pay the Subrogation Claimant $0.52 for each dollar in claims paid or to be paid by the Subrogation Claimant to its policy holders, up to an agreed upon cap. The Subrogation Claimant had paid its policy holders an aggregate of approximately $500 million as of July 31, 2025. No admission of wrongdoing or liability was made in reaching the Eaton Subrogation Settlement, and the Subrogation Claimant agreed to release SCE and Edison International from all claims and potential claims related to or arising from the Eaton Fire. In the third quarter of 2025, SCE recorded $300 million in losses related to the Eaton Subrogation Settlement and will record additional amounts as they become estimable. In the third quarter of 2025, Edison International and SCE 

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also recorded expected recoveries from customer-funded wildfire self-insurance of $279 million and expected recoveries through FERC electric rates of $21 million related to the Eaton Subrogation Settlement.In light of pending litigation, it is probable that Edison International and SCE will incur additional material losses in connection with the Eaton Fire. SCE expects to launch its Wildfire Recovery Compensation Program in the fall of 2025. Given SCE's ongoing review into the cause of the Eaton Fire and, among other things, the complexities associated with estimating damages, uncertainties related to the sufficiency of insurance held by plaintiffs and uncertainties related to litigation processes and participation in the Wildfire Recovery Compensation