Company: SCE-PL
Filing Date: 2025-11-24
Form Type: 424B1
Source: 0001193125-25-293755
Chunk: 42

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-11-24
Form: 424B1
Chunk 42
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 be entitled to recover fixed recovery charge revenues in                            
 amounts sufficient to pay the principal and interest on the bonds together with all operating expenses, all as the same become due; and |

| • |     | orders that the transfer of the recovery property to us by SCE shall be treated as an absolute transfer of all of                                                                                          
 SCE’s right, title, and interest, as in a true sale, and not as a pledge or other financing, of the recovery property, other than for U.S. federal income tax and state income and franchise tax purposes. |

Please read “ The Recovery Property and the Wildfire Financing Law” and “ SCE’s Financing Order” in this prospectus for more information. The characteristics of recovery property are unlike the characteristics of assets underlying mortgage and other commercial asset-based financings because recovery property is a creature of statute and state regulatory commission proceedings. Because the nature and characteristics of recovery property and many elements of recovery bond financings are set forth in and constrained by the Wildfire Financing Law and the financing order, SCE, as sponsor, does not select the assets to be pledged as collateral in ways common to many traditional asset-based financings. Moreover, the bonds do not contain origination or underwriting elements similar to typical - 39 -

mortgage or other loan transactions involved in other forms of asset-backed securities. The Wildfire Financing Law and the financing order require the imposition on, and collection of fixed recovery charges from, existing and future customers and any other consumers of electricity within SCE’s service territory, as it existed as of the date of the financing order, subject to the exceptions. Please read “ The Recovery Property and the Wildfire Financing Law—Exemptions from Fixed Recovery Charges” in this prospectus. Since the fixed recovery charges are assessed against all such customers and the true-upmechanism adjusts for the impact of consumer defaults, the collectability of the fixed recovery charges is not ultimately dependent upon the credit quality of particular SCE customers, as would be the case in the absence of the true-upadjustment. The review by SCE of the recovery property underlying the bonds has involved a number of discrete steps and elements as described in more detail below. First, SCE has analyzed and applied the Wildfire Financing Law’s requirements for recovering recovery costs and approval of the California commission for the issuance of the financing order and in its proposal with respect to the characteristics of the recovery property to be created pursuant to the financing order. In preparing this proposal, SCE worked with its counsel and its structuring advisor in preparing the application for a