Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 80

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 80
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UC subsequently extends the non-bypassable charge imposed on customers under AB 1054 until January 1, 2046, the Continuation Account will be funded by a combination of contributions from customers and the three participating investor-owned utilities. 

Upon the CPUC's decision to extend the non-bypassable charge, PG&E's, SCE's, and SDG&E's customers will be required to contribute an aggregate of $9 billion through a dedicated rate component. The dedicated rate component collected from customers will be directly contributed to the Continuation Account or used to support the issuance of up to $9 billion in bonds by the California Department of Water Resources, the proceeds of which would be contributed to the fund. In addition to funding contributions to the Continuation Account, the amount collected from utility customers will pay for, among other things, any interest and financing costs related to any bonds that are issued by the California Department of Water Resources to support the contributions to the fund.

In addition to customer contributions, PG&E, SCE, and SDG&E have agreed, if required, to contribute an aggregate of $300 million annually (SCE's share is $143.6 million) from 2029 through 2045 for a total aggregate contribution of approximately $5.1 billion. In addition, if the administrator determines that the Continuation Account requires additional contributions, PG&E, SCE, and SDG&E will contribute an additional $780 million annually (SCE's share is $373.2 million) over a five-year period for a total aggregate additional contribution of approximately $3.9 billion (the "Contingent Contribution"). If the administrator terminates the Continuation Account prior to the final installment of the Contingent Contribution, one-half of the remaining unpaid installment payments will be credited to customer rates.

SCE's contributions to the Continuation Account are not recoverable through electric rates and will be excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. SCE will also not be entitled to cost recovery for any borrowing costs incurred in connection with its contributions to the Continuation Account.

Liability Cap

Under SB 254, the reimbursement Liability Cap for all fires covered by the Wildfire Insurance Fund is calculated for the year of the fire’s ignition, replacing the previous calculation that used the year of disallowance. Also, a participating utility’s obligation to reimburse the Continuation Account (but not the Initial Account) for disallowed costs will be reduced by its contributions to the Continuation Account.

SB