Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 85

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 85
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 efforts and utility owned energy storage projects.

•A decrease in revenue of $214 million related to net lower expenses that are passed through to customers, which mainly included decreases in:

•Operation and maintenance expense of $249 million;

•Purchased power and fuel expense of $235 million; 

•Income tax expense of $89 million;

offset by increases in:

•Wildfire-related claims, net of recoveries of $261 million;

•Depreciation and amortization expense of $59 million;

•Interest expense of $23 million;

•Property and other taxes of $10 million;

•Other income, net of $6 million.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $235 million was primarily due to lower energy prices and lower hedging losses (offset in "Operating Revenue" above).

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Operation and Maintenance

A decrease in operation and maintenance expense of $245 million was primarily due to:

•A net decrease of $249 million mainly related to lower previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024 (offset in "Operating Revenue" above). 

•A decrease of $58 million related to recoveries of legal costs under the TKM Settlement Agreement. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

•A decrease of $47 million related to severance costs recorded in 2024 due to workforce reductions.

partially offset by:

•A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances. For additional information, see "Liquidity and Capital Resources—SCE—Regulatory Proceedings."

•A charge of $50 million recorded in 2025 related to shareholder-funded wildfire mitigation costs stipulated under the TKM Settlement Agreement. See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Wildfire-related Claims, Net of Recoveries

A decrease in wildfire-related claims, net of recoveries of $1,674 million was primarily due to:

•A recovery of $1,341 million in claim costs was recorded in 2025 as authorized under the TKM Settlement Agreement.

•A decrease of $490 million related to claim costs for 201