Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 18

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 18
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 is primarily due to:

•An increase in CPUC-related revenues of $617 million primarily due to higher revenue authorized in Track 4 and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism. See "Management Overview—Cost of Capital" for more information. 

•An increase in operating revenues of $51 million primarily due to recognition of previously unrecognized return on rate base related to emergency restoration related capital expenditures.

•A net increase in revenues of $604 million related to higher expenses that are passed through to customers. The increase in pass-through revenues is primarily offset by increases in the following:

◦Operation and maintenance expense of $809 million 

◦Depreciation and amortization expense of $111 million

◦Interest expense of $66 million 

◦Property and other taxes of $28 million

These pass-through increases were offset by the decreases in the following: 

◦Purchased power and fuel expense of $277 million 

◦Income tax expense of $134 million

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $277 million, primarily due to lower purchased power and gas prices, partially offset by an increase in purchased power volume and higher losses in hedging activities (offset in "Operating Revenue" above).

Operation and Maintenance

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Table of Contents

An increase in operation and maintenance expense of $993 million is primarily due to: 

•A net increase in expense of $809 million related to operating expenses that are passed through to customers and offset in "Operating Revenue" above. The increase is mainly driven by:

◦$462 million due to higher previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2024 than in 2023. See "Liquidity and Capital Resources—SCE—Regulatory Proceedings" for more information

◦$301 million higher vegetation management expenses

◦$196 million higher public purpose program expenses

◦$144 million higher uncollectible accounts expense

◦$116 million higher transmission access charges 

These increases are partially offset by:

◦$209 million previously deferred wildfire insurance premium authorized for recovery in 2023

◦$195 million lower insurance costs due to SCE's expanded use of customer-funded self-insurance since July 2023

•$90 million higher expenses primarily related to plant maintenance

•$62 million higher wildfire mitigation expenses

•Severance costs of $53 million recorded in 2024 due to current and probable reductions in