Document:

EX-10.1

 Exhibit 10.1 

RECOVERY PROPERTY SERVICING AGREEMENT 

by and between 
 SCE
RECOVERY FUNDING LLC, 
 as Issuer 

and 
 SOUTHERN
CALIFORNIA EDISON COMPANY, 
 as Servicer 

Dated as of February 15, 2022 
  

 TABLE OF CONTENTS 
  

							
	 	  	Page	 
	 Article I DEFINITIONS
	  	 	1	 
			
	 SECTION 1.01
	  	Definitions	  	 	1	 
		
	 Article II APPOINTMENT AND AUTHORIZATION
	  	 	2	 
			
	 SECTION 2.01
	  	Appointment of Servicer; Acceptance of Appointment	  	 	2	 
			
	 SECTION 2.02
	  	Authorization	  	 	2	 
			
	 SECTION 2.03
	  	Dominion and Control Over the Recovery Property	  	 	2	 
		
	 Article III ROLE OF SERVICER
	  	 	3	 
			
	 SECTION 3.01
	  	Duties of Servicer	  	 	3	 
			
	 SECTION 3.02
	  	Servicing and Maintenance Standards	  	 	5	 
			
	 SECTION 3.03
	  	Annual Reports on Compliance with Regulation AB	  	 	6	 
			
	 SECTION 3.04
	  	Annual Report by Independent Registered Public Accountants	  	 	6	 
		
	 Article IV SERVICES RELATED TO TRUE-UP
ADJUSTMENTS
	  	 	7	 
			
	 SECTION 4.01
	  	True-Up Adjustments	  	 	7	 
			
	 SECTION 4.02
	  	Limitation of Liability	  	 	12	 
		
	 Article V THE RECOVERY PROPERTY
	  	 	12	 
			
	 SECTION 5.01
	  	Custody of Recovery Property Records	  	 	12	 
			
	 SECTION 5.02
	  	Duties of Servicer as Custodian	  	 	13	 
			
	 SECTION 5.03
	  	Custodian’s Indemnification	  	 	14	 
			
	 SECTION 5.04
	  	Effective Period and Termination	  	 	14	 
		
	 Article VI THE SERVICER
	  	 	15	 
			
	 SECTION 6.01
	  	Representations and Warranties of Servicer	  	 	15	 
			
	 SECTION 6.02
	  	Indemnities of Servicer; Release of Claims	  	 	16	 
			
	 SECTION 6.03
	  	Merger or Consolidation of, or Assumption of the Obligations of, Servicer	  	 	18	 
			
	 SECTION 6.04
	  	Limitation on Liability of Servicer and Others	  	 	18	 
			
	 SECTION 6.05
	  	SCE Not to Resign as Servicer	  	 	19	 
			
	 SECTION 6.06
	  	Servicing Compensation	  	 	19	 
			
	 SECTION 6.07
	  	Compliance with Applicable Law	  	 	20	 
			
	 SECTION 6.08
	  	Access to Certain Records and Information Regarding Recovery Property	  	 	20	 
			
	 SECTION 6.09
	  	Appointments	  	 	21	 
			
	 SECTION 6.10
	  	No Servicer Advances	  	 	21	 
			
	 SECTION 6.11
	  	Remittances	  	 	21	 
		
	 Article VII SERVICER DEFAULT
	  	 	22	 
			
	 SECTION 7.01
	  	Servicer Default	  	 	22	 

  
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 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	 SECTION 7.02
	  	Appointment of Successor	  	 	24	 
			
	 SECTION 7.03
	  	Waiver of Past Defaults	  	 	24	 
			
	 SECTION 7.04
	  	Notice of Servicer Default	  	 	24	 
		
	 Article VIII MISCELLANEOUS PROVISIONS
	  	 	25	 
			
	 SECTION 8.01
	  	Amendment	  	 	25	 
			
	 SECTION 8.02
	  	Maintenance of Accounts and Records	  	 	26	 
			
	 SECTION 8.03
	  	Notices	  	 	26	 
			
	 SECTION 8.04
	  	Assignment	  	 	27	 
			
	 SECTION 8.05
	  	Limitations on Rights of Others	  	 	27	 
			
	 SECTION 8.06
	  	Severability	  	 	27	 
			
	 SECTION 8.07
	  	Separate Counterparts	  	 	27	 
			
	 SECTION 8.08
	  	Headings	  	 	27	 
			
	 SECTION 8.09
	  	GOVERNING LAW	  	 	27	 
			
	 SECTION 8.10
	  	Assignment to Indenture Trustee	  	 	27	 
			
	 SECTION 8.11
	  	Nonpetition Covenants	  	 	28	 
			
	 SECTION 8.12
	  	Limitation of Liability	  	 	28	 
			
	 SECTION 8.13
	  	Rule 17g-5 Compliance	  	 	28	 

 ANNEXES, SCHEDULES AND EXHIBITS 
  

			
	ANNEX I	  	 -   Servicing Procedures

		
	SCHEDULE 4.01	  	 -   Expected Amortization Schedule

		
	EXHIBIT A	  	 Monthly Servicer’s Certificate

	EXHIBIT B	  	 Semi-Annual Servicer’s Certificate

	EXHIBIT C	  	 Servicer’s Regulation AB Certificate

	EXHIBIT D	  	 Form of Routine [Annual/]Interim True-Up Mechanism Advice Letter

	EXHIBIT E	  	 Form of Other Factor Non-Routine
True-Up Mechanism Advice Letter

	EXHIBIT F	  	 Reconciliation Certificate

  
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 This RECOVERY PROPERTY SERVICING AGREEMENT, dated as of February 15, 2022 (this
“Agreement”), by and between SCE RECOVERY FUNDING LLC, a Delaware limited liability company, as issuer (the “Issuer”), and SOUTHERN CALIFORNIA EDISON COMPANY (“SCE”), a California
corporation, as servicer (the “Servicer”). 
 RECITALS 

WHEREAS, pursuant to the Securitization Law and the Financing Order, SCE, in its capacity as seller (the “Seller”),
and the Issuer are concurrently entering into the Sale Agreement pursuant to which the Seller is selling and the Issuer is purchasing certain Recovery Property created pursuant to the Securitization Law and the Financing Order described therein;

 WHEREAS, in connection with its ownership of the Recovery Property and in order to collect the associated Fixed Recovery Charges,
the Issuer desires to engage the Servicer to carry out the functions described herein and the Servicer desires to be so engaged; 

WHEREAS, the Issuer desires to engage the Servicer to act on its behalf in obtaining Routine Annual
True-Up Adjustments, Routine Interim True-Up Adjustments, Other Factor Non-Routine
True-Up Adjustments and Mandatory Interim True-Up Adjustments from the CPUC and the Servicer desires to be so engaged; 

WHEREAS, the FRC Collections initially will be commingled with other funds collected by the Servicer; 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 

SECTION 1.01 Definitions. 

(a) Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned to them in that certain Indenture
(including Appendix A thereto) dated as of the date hereof between the Issuer and The Bank of New York Mellon Trust Company, N.A., a national banking association, in its capacity as the Indenture Trustee (the “Indenture
Trustee”) and in its separate capacity as a securities intermediary (the “Securities Intermediary”), as the same may be amended, restated, supplemented or otherwise modified from time to time. 

(b) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein. 
  

 (c) The words “hereof,” “herein,” “hereunder” and words of
similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section, Schedule, Exhibit, Annex and Attachment references contained in this Agreement are references to
Sections, Schedules, Exhibits, Annexes and Attachments in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without limitation.” 

(d) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms. 

(e) Non-capitalized terms used herein which are defined in the Utilities Code shall, as the context
requires, have the meanings assigned to such terms in the Utilities Code, but without giving effect to amendments to the Utilities Code after the date hereof which have a material adverse effect on the Issuer or the Holders. 

ARTICLE II 

APPOINTMENT AND AUTHORIZATION 

SECTION 2.01 Appointment of Servicer; Acceptance of Appointment. Subject to Section 6.05 and Article
VII, the Issuer hereby appoints the Servicer, and the Servicer, as an independent contractor, hereby accepts such appointment, to perform the Servicer’s obligations pursuant to this Agreement on behalf of and for the benefit of the Issuer or
any assignee thereof in accordance with the terms of this Agreement and applicable law. This appointment and the Servicer’s acceptance thereof may not be revoked except in accordance with the express terms of this Agreement. 

SECTION 2.02 Authorization. With respect to all or any portion of the Recovery Property, the Servicer shall
be, and hereby is, authorized and empowered by the Issuer to (a) execute and deliver, on behalf of itself and/or the Issuer, as the case may be, any and all instruments, documents or notices, and (b) on behalf of itself and/or the Issuer,
as the case may be, make any filing and participate in proceedings of any kind with any Governmental Authority, including with the CPUC. The Issuer shall execute and deliver to the Servicer such documents as have been prepared by the Servicer for
execution by the Issuer and shall furnish the Servicer with such other documents as may be in the Issuer’s possession, in each case as the Servicer may determine to be necessary or appropriate to enable it to carry out its servicing and
administrative duties hereunder. Upon the Servicer’s written request, the Issuer shall furnish the Servicer with any powers of attorney or other documents necessary or appropriate to enable the Servicer to carry out its duties hereunder. 

SECTION 2.03 Dominion and Control Over the Recovery Property. Notwithstanding any other provision herein, the
Issuer shall have dominion and control over the Recovery Property, and the Servicer, in accordance with the terms hereof, is acting solely as the servicing agent and custodian for the Issuer with respect to the Recovery Property and the Recovery
Property Records. The Servicer shall not take any action that is not authorized by this Agreement, that would contravene the Utilities Code, the CPUC Regulations or the Financing Order, that is not consistent with its customary procedures and
practices, or that shall impair the rights of the Issuer in the Recovery Property, in each case unless such action is required by applicable law or court or regulatory order. 

  
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 ARTICLE III 

ROLE OF SERVICER 

SECTION 3.01 Duties of Servicer. The Servicer, as agent for the Issuer, shall have the following duties: 

(a) Duties of Servicer Generally. The Servicer’s duties in general shall include management, servicing and administration of the
Recovery Property; obtaining meter reads, calculating electric usage, billing, collections and posting of all payments in respect of the Recovery Property; responding to inquiries by Consumers, the CPUC, or any federal, local or other state
governmental authorities with respect to the Recovery Property; delivering Bills to Consumers and ESPs, processing and depositing collections and making periodic remittances pursuant to the Financing Order and each Tariff; furnishing periodic
reports to the Issuer, the Indenture Trustee and the Rating Agencies; and taking action in connection with True-Up Adjustments as set forth herein. Certain of the duties set forth above may be performed by
ESPs pursuant to ESP Service Agreements if such ESPs satisfy the creditworthiness requirements as set forth in SCE’s Electric Rule 22.P., “Credit Requirements.” Anything to the contrary notwithstanding, the duties of the Servicer set
forth in this Servicing Agreement shall be qualified in their entirety by any CPUC Regulations, the Financing Order and the U.S. federal securities laws and the rules and regulations promulgated thereunder, including Regulation AB, as in effect at
the time such duties are to be performed. Without limiting the generality of this Section 3.01(a), in furtherance of the foregoing, the Servicer hereby agrees that it shall also have, and shall comply with, the
duties and responsibilities relating to data acquisition, usage and bill calculation, billing, customer service functions, collections, payment processing and remittance set forth in Annex I hereto, as it may be amended from time to time. For
the avoidance of doubt, the term “usage” when used herein includes references to both kilowatt hour consumption and kilowatt demand. 

(b) Reporting Functions. 

(i) Monthly Servicer’s Certificate. On or before the twenty-fifth calendar day of each month (or if
such day is not a Servicer Business Day, on the immediately preceding Servicer Business Day), the Servicer shall prepare and deliver to the Issuer, the Indenture Trustee and the Rating Agencies a written report substantially in the form of
Exhibit A hereto (a “Monthly Servicer’s Certificate”) setting forth certain information relating to Fixed Recovery Charge Payments received by the Servicer during the Collection Period immediately preceding
such date; provided, however, that for any month in which the Servicer is required to deliver a Servicer’s Certificate pursuant to Section 4.01(c)(ii), the Servicer shall prepare and deliver the
Monthly Servicer’s Certificate no later than the date of delivery of such Servicer’s Certificate. 
 (ii)
Notification of Laws and Regulations. The Servicer shall immediately notify the Issuer, the Indenture Trustee and the Rating Agencies in writing if it becomes aware of any Requirements of Law or CPUC Regulations hereafter promulgated that
have a material adverse effect on the Servicer’s ability to perform its duties under this Agreement. 

  
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 (iii) Other Information. Upon the reasonable request of the Issuer,
the Indenture Trustee or any Rating Agency, the Servicer shall provide to the Issuer, the Indenture Trustee or such Rating Agency, as the case may be, any public financial information in respect of the Servicer, or any material information regarding
the Recovery Property to the extent it is reasonably available to the Servicer, as may be reasonably necessary and permitted by law to enable the Issuer, the Indenture Trustee or the Rating Agencies to monitor the performance by the Servicer
hereunder; provided, however, that any such request by the Indenture Trustee shall not create any obligation for the Indenture Trustee to monitor the performance of the Servicer. In addition, so long as any of the Recovery Bonds are outstanding, the
Servicer shall provide the Issuer and the Indenture Trustee, within a reasonable time after written request therefor, any information available to the Servicer or reasonably obtainable by it that is necessary to calculate the Fixed Recovery Charges
applicable to each FRC Consumer Class. 
 (iv) Preparation of Reports. The Servicer shall prepare and deliver such
additional reports as required under this Agreement, including a copy of each Servicer’s Certificate described in Section 4.01(c)(ii), the annual Servicer’s Regulation AB Certificate described in
Section 3.03, and the Annual Accountant’s Report described in Section 3.04. In addition, the Servicer shall prepare, procure, deliver and/or file, or cause to be prepared, procured, delivered
or filed, any reports, attestations, exhibits, certificates or other documents required to be delivered or filed with the SEC (and/or any other Governmental Authority) by the Issuer or the Depositor under the federal securities or other applicable
laws or in accordance with the Basic Documents, including, but without limiting the generality of foregoing, filing with the SEC, if applicable and required by applicable law, a copy or copies of (i) the Monthly Servicer’s Certificates
described in Section 3.01(b)(i) (under Form 10-D or any other applicable form), (ii) the Servicer’s Certificates described in Section 4.01(c)(ii) (under Form 10-D or any
other applicable form), (iii) the annual statements of compliance, attestation reports and other certificates described in Section 3.03, and (iv) the Annual Accountant’s Report (and any attestation required
under Regulation AB) described in Section 3.04. In addition, the appropriate officer or officers of the Servicer shall (in its separate capacity as Servicer) sign the Depositor’s annual report on Form 10-K (and any
other applicable SEC or other reports, attestations, certifications and other documents), to the extent that the Servicer’s signature is required by, and consistent with, the federal securities laws and/or any other applicable law. 

(v) Allocation and Impact Report; Third-Party Verification. No later than one year after the date of issuance of
Recovery Bonds, the Servicer shall prepare, or cause to be prepared, an allocation and impact report in respect of the use of the proceeds from the sale of the Recovery Property. The allocation and impact report will be published on its website
(currently https://www.edison.com/home/sustainability.html). In addition, the Servicer shall request an assurance report on the allocation of the bonds to Eligible Projects to be provided by a third-party verification firm or auditor within one year
of the issuance of the Recovery Bonds and publish any such assurance report on its website. The failure of the Servicer to prepare or provide the reports referred to in this paragraph shall not constitute a Servicer Default under this Agreement.

  
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 (c) Opinions of Counsel. The Servicer shall deliver to the Issuer and the Indenture
Trustee: 
 (i) promptly after the execution and delivery of this Agreement and of each amendment hereto, an Opinion of
Counsel from external counsel of the Issuer either (A) to the effect that, in the opinion of such counsel, all filings, including filings with the CPUC and the California Secretary of State and all filings pursuant to the UCC, that are
necessary under the UCC and the Securitization Law to perfect or maintain, as applicable, the Liens of the Indenture Trustee in the Recovery Property have been authorized, executed and filed, and reciting the details of such filings or referring to
prior Opinions of Counsel in which such details are given, or (B) to the effect that, in the opinion of such counsel, no such action shall be necessary to preserve, protect and perfect such Liens; and 

(ii) within ninety (90) days after the beginning of each calendar year beginning with the first calendar year beginning
more than three (3) months after the date hereof, an Opinion of Counsel from external counsel of the Issuer, dated as of a date during such ninety (90)-day period, either (A) to the effect that, in
the opinion of such counsel, all filings, including filings with the CPUC and the California Secretary of State and all filings pursuant to the UCC, have been executed and filed that are necessary under the UCC and the Securitization Law to maintain
the Liens of the Indenture Trustee in the Recovery Property, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) to the effect that, in the opinion of such counsel, no such
action shall be necessary to preserve, protect and perfect such Liens. 
 Each Opinion of Counsel referred to in clause (i) or
(ii) above shall specify any action necessary (as of the date of such opinion) to be taken in the following year to perfect or maintain, as applicable, such interest or Lien. 

SECTION 3.02 Servicing and Maintenance Standards. On behalf of the Issuer, the Servicer shall
(a) manage, service, administer and make collections in respect of the Recovery Property with reasonable care and in material compliance with applicable Requirements of Law, including all applicable CPUC Regulations and guidelines, using the
same degree of care and diligence that the Servicer exercises with respect to similar assets for its own account and, if applicable, for others; (b) follow customary standards, policies and procedures for the industry in California in
performing its duties as Servicer; (c) use all reasonable efforts, consistent with its customary servicing procedures, to enforce, and maintain rights in respect of, the Recovery Property and to bill and collect the Fixed Recovery Charges;
(d) comply with all Requirements of Law, including all applicable CPUC Regulations and guidelines, applicable to and binding on it relating to the Recovery Property; (e) file all CPUC notices described in the Securitization Law and file
and maintain the effectiveness of UCC financing statements with respect to the property transferred under the Sale Agreement, and (f) take such other action on behalf of the Issuer to ensure that the Lien of the Indenture Trustee on the
Recovery Bond Collateral remains perfected and of first priority. The Servicer shall follow such customary and usual practices and procedures as it shall deem necessary or advisable in its servicing of all or any portion of the Recovery Property,
which, in the Servicer’s judgment, may include the taking of legal action, at the Issuer’s expense but subject to the priority of payments set forth in Section 8.02(e) of the Indenture. 

  
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 SECTION 3.03 Annual Reports on Compliance with Regulation
AB. 
 (a) The Servicer shall deliver to the Issuer, the Indenture Trustee and the Rating Agencies, on or before the earlier of
(A) March 31 of each year or (B) with respect to each calendar year during which the Depositor’s annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, the date
on which the annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, a certificate from a Responsible Officer of the Servicer (each such certificate, a
“Servicer’s Regulation AB Certificate”) (i) containing, and certifying as to, the statements of compliance required by Item 1123 (or any successor or similar items or rule) of Regulation AB, as then in effect
and (ii) containing, and certifying as to, the statements and assessment of compliance required by Item 1122(a) (or any successor or similar items or rule) of Regulation AB, as then in effect. The Servicer’s Regulation AB Certificates may
be in the form of Exhibit C attached hereto, with such changes as may be required to conform to the applicable securities law. 
 (b)
The Servicer shall use commercially reasonable efforts to obtain from each other party participating in the servicing function any additional certifications as to the statements and assessment required under Item 1122 or Item 1123 of Regulation AB
to the extent required in connection with the filing of the annual report on Form 10-K; provided, however, that a failure to obtain such certifications shall not be a breach of the Servicer’s duties hereunder. The parties
acknowledge that the Indenture Trustee’s certifications shall be limited to the Item 1122 certifications described in Exhibit C attached to the Indenture. 

(c) The initial Servicer, in its capacity as Depositor, shall post on its website and file with or furnish to the SEC, in periodic reports and
other reports as are required from time to time under Section 13 or Section 15(d) of the Exchange Act, the information described in Section 3.07(g) of the Indenture to the extent such information is reasonably
available to the Depositor. Except to the extent permitted by applicable law, the initial Servicer, in its capacity as Depositor, shall not voluntarily suspend or terminate its filing obligations as Depositor with the SEC as described in this
Section 3.03(c). The covenants of the initial Servicer, in its capacity as Depositor, pursuant to this Section 3.03(c) shall survive the resignation, removal or termination of the
initial Servicer as Servicer hereunder. 
 SECTION 3.04 Annual Report by Independent Registered Public
Accountants. 
 (a) The Servicer shall cause a firm of Independent registered public accountants (which may provide other services to the
Servicer or the Seller) to prepare annually, and the Servicer shall deliver annually to the Issuer, the Indenture Trustee and the Rating Agencies on or before the earlier of (A) March 31 of each year, beginning March 31, 2023, or
(B) with respect to each calendar year during which the Depositor’s annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, the date on which the annual report on
Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, a report (the “Annual Accountant’s Report”) regarding the

  
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Servicer’s assessment of compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB during the immediately preceding twelve (12) months ended December 31
(or, in the case of the first Annual Accountant’s Report to be delivered on or before March 31, 2023, the period of time from the date of this Agreement until December 31, 2022), in accordance with paragraph (b) of Rule 13a-18 and Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such report shall be signed by an authorized officer of the Servicer and shall at a minimum address
each of the servicing criteria specified in Exhibit C. In the event that the accounting firm providing such report requires the Indenture Trustee to agree or consent to the procedures performed by such firm, the Issuer shall direct the
Indenture Trustee in writing to so agree; it being understood and agreed that the Indenture Trustee will deliver such letter of agreement or consent in conclusive reliance upon the direction of the Issuer subject to the Indenture Trustee’s
rights, privileges, protections and immunities under the Indenture, and the Indenture Trustee will not make any independent inquiry or investigation as to, and shall have no obligation or liability in respect of the sufficiency, validity or
correctness of such procedures. 
 (b) The Annual Accountant’s Report shall also indicate that the accounting firm providing such report
is independent of the Servicer in accordance with the Rules of the Public Company Accounting Oversight Board, and shall include any attestation report required under Item 1122(b) of Regulation AB (or any successor or similar items or rule), as then
in effect. 
 ARTICLE IV 

SERVICES RELATED TO TRUE-UP ADJUSTMENTS 

SECTION 4.01 True-Up Adjustments. From time to time, until the
Retirement of the Recovery Bonds, the Servicer shall identify the need for True-Up Adjustments and shall take all reasonable action to obtain and implement such True-Up
Adjustments, all in accordance with the following: 
 (a) Expected Amortization Schedule. The Expected Amortization Schedule for the
Recovery Bonds is attached hereto as Schedule 4.01(a). If the Expected Amortization Schedule is revised, the Servicer shall send a copy of such revised Expected Amortization Schedule to the Issuer, the Indenture Trustee and the Rating
Agencies promptly thereafter. 
 (b) True-Up Adjustments. 

(i) Routine Annual True-Up Adjustments and Advice Filings. At least fifty
(50) days prior to each Annual Adjustment Date, the Servicer shall: (A) for each of the First Payment Period and Second Payment Period, update the data and assumptions underlying the calculation of the Fixed Recovery Charges, including
projected electricity consumption for each FRC Consumer Class, Periodic Principal, interest and estimated fees and all other Ongoing Financing Costs, the Weighted Average Days Sales Outstanding and write-offs; (B) determine the Periodic Payment
Requirements and Periodic Billing Requirement for the First Payment Period and Second Payment Period based on such updated data and assumptions and adjusting for (i) FRC Collections and excess funds held to the credit of the General Subaccount
and Excess Funds Subaccount on the Calculation Cut-Off Date and (ii) FRC collections to be collected at the then-current Fixed Recovery 

  
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Charge rates after the Calculation Cut-Off Date; (C) determine the Fixed Recovery Charges to be allocated to each FRC Consumer Class through the
next succeeding Annual Adjustment Date based on such Periodic Billing Requirements and the terms of the Financing Order., including the Cash Flow Model; (D) make all required notice and other filings with the CPUC to reflect the revised Fixed
Recovery Charges, including a Routine Annual True-Up Adjustment Mechanism Advice Letter in the form attached hereto as Exhibit D, and (E) take all reasonable actions and make all reasonable efforts to
effect such Routine Annual True-Up Adjustment and to enforce the provisions of the Securitization Law and the Financing Order. The Servicer shall implement the revised Fixed Recovery Charges, if any, resulting
from such Routine Annual True-Up Adjustment as of the Annual Adjustment Date. 
 (ii)
Routine Interim True-Up Adjustments and Advice Filings. If at any time the Servicer forecasts that FRC Collections will be insufficient to meet the Periodic Payment Requirement during the First Payment
Period or Second Payment Period, the Servicer may: (A) for each of the First Payment Period and Second Payment Period, update the data and assumptions underlying the calculation of the Fixed Recovery Charges, including projected electricity
consumption for each FRC Consumer Class, Periodic Principal, interest and estimated fees and all other Ongoing Financing Costs, the Weighted Average Days Sales Outstanding and write-offs; (B) determine the Periodic Payment Requirements and
Periodic Billing Requirement for the First Payment Period and Second Payment Period based on such updated data and assumptions and adjusting for (i) FRC Collections and excess funds held to the credit of the General Subaccount and Excess Funds
Subaccount on the Calculation Cut-Off Date and (ii) FRC collections to be collected at the then-current Fixed Recovery Charge rates after the Calculation Cut-Off
Date; and (C) based upon such updated data and requirements, project whether existing and projected FRC Collections together with available fund balances in the Excess Funds Subaccount, will be sufficient (x) to make on a timely basis all
scheduled payments of Periodic Principal and interest in respect of each Recovery Bond during such Payment Period, (y) to pay other Ongoing Financing Costs on a timely basis and (z) to maintain the Capital Subaccount at the Required
Capital Level. If the Servicer determines that Fixed Recovery Charges will not be sufficient for such purposes, the Servicer shall, no later than fifty (50) days prior to the proposed effective date of the revised Fixed Recovery Charges
(provided that such effective date shall be on the first calendar day of a month): (1) determine the Fixed Recovery Charges to be allocated to each FRC Consumer Class through the Annual Adjustment Date based on such Periodic Billing Requirement
and the terms of the Financing Order, including the Cash Flow Model; (2) make all required notice and other filings with the CPUC to reflect the revised Fixed Recovery Charges, including a Routine Interim
True-Up Adjustment Mechanism Advice Letter in the form attached hereto as Exhibit D; and (3) take all reasonable actions and make all reasonable efforts to effect such Optional Interim True-Up Adjustment and to enforce the provisions of the Securitization Law and the Financing Order. 

  
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 (iii) Other Factor Non-Routine True-Up Adjustments and Advice Filings. The Servicer may submit an Other Factor Non-Routine True-Up Adjustment to propose revisions
to the logic, structure and components of the Cash Flow Model in the Financing Order. In connection with any Other Factor Non-Routine True-Up Adjustment, the Servicer
will: (A) present a new Cash Flow Model; (B) for each of the First Payment Period and Second Payment Period, update the data and assumptions underlying the calculation of the Fixed Recovery Charges, including projected electricity
consumption for each FRC Consumer Class, Periodic Principal, interest and estimated fees and all other Ongoing Financing Costs, the Weighted Average Days Sales Outstanding and write-offs; (C) recalculate the Fixed Recovery Charges based on the
revisions to Cash Flow Model proposed by the Servicer; (D) file an Other Factor Non-Routine True-Up Mechanism Advice Letter in the form attached hereto as
Exhibit E necessary to begin the billing of such revised Fixed Recovery Charges, which advice letter will provide that neither the proposed revision in the advice letter, nor any modification ordered by the CPUC, will become effective unless
the Rating Agency Condition is satisfied; and (E) take all reasonable actions and make all reasonable efforts to effect such Other Factor Non-Routine True-Up
Adjustment and to enforce the provisions of the Securitization Law and the Financing Order. Any such Other Factor Non-Routine True-Up Adjustment Advice Letter must be
submitted at least ninety (90) days before the effective date (the “Other Factor Non-Routine True-Up Effective Date”) contained in the related
Other Factor Non-Routine True-Up Adjustment Advice Letter. The Servicer shall implement the revised Fixed Recovery Charges, if any, resulting from such Other Factor Non-Routine True-Up Adjustment on the Other Factor Non-Routine True-Up Effective Date, provided
the CPUC will have the opportunity to consider a resolution that adopts, modifies or rejects the proposed revisions to the Cash Flow Model and the public will have an opportunity to review and protest an Other Factor
Non-Routine Adjustment Mechanism Advice Letter in accordance with CPUC procedures, to the extent permitted by Section 850.1(e) of the Securitization Law, and provided further than, in the absence of a
CPUC resolution that adopts, modifies or rejects the revisions proposed in the Other Factor Non-Routine True-Up Mechanism Advice Letter shall go into effect on the Other
Factor Non-Routine True Up Effective Date if such Other Factor Non-Routine True Up Effective Date is at least ninety (90) days after the date of submission of the
related Other Factor Non-Routine True-Up Mechanism Advice Letter. 

(iv) Mandatory Interim Routine True-Up Adjustments and Filings. If there are any
Recovery Bonds Outstanding following the last Scheduled Final Payment Date, within fifty (50) days of the date which is three months, six months, nine months and one year after the last Scheduled Final Payment Date (until all of the Recovery
Bonds are paid in full), the Servicer shall (A) for each of the First Payment Period and Second Payment Period, update the data and assumptions underlying the calculation of the Fixed Recovery Charges, including projected electricity
consumption for each FRC Consumer Class, Periodic Principal, interest and estimated fees and all other Ongoing Financing Costs, the Weighted Average Days Sales Outstanding and write-offs; (B) determine the Periodic Payment Requirements and
Periodic Billing Requirement for the First Payment Period and Second Payment Period based on such updated data and assumptions and adjusting for (i) FRC Collections and excess funds held to the credit of the General Subaccount and Excess Funds
Subaccount on the Calculation Cut-Off Date and (ii) FRC collections to be collected at the then-current Fixed Recovery Charge rates after the Calculation Cut-Off
Date; and (C) based upon such updated data and requirements, forecast whether FRC Collections together with available fund balances in the Excess Funds Subaccount, will be sufficient, (i) to make on a timely basis all scheduled payments of
interest, principal and other 

  
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amounts payable in respect of each Outstanding Tranche of Recovery Bonds during such Calculation Period and (ii) to maintain the Capital Subaccount at the Required Capital Level. If the
Servicer determines that FRC Collections will not be sufficient for such purposes, the Servicer shall, no later than fifteen (15) days prior to the end of each such thirty (30) day period (1) determine the Fixed Recovery Charges to be
allocated to each FRC Consumer Class during the next Calculation Period based on such Periodic Billing Requirement and the terms of the Financing Order, and in doing so the Servicer shall use the method of allocating Fixed Recovery Charges then
in effect; (2) make all required notice and other filings with the CPUC to reflect the revised Fixed Recovery Charges including a Mandatory Interim Routine True-Up Adjustment Mechanism Advice Letter in
the form attached hereto as Exhibit D; and (3) take all reasonable actions and make all reasonable efforts to effect such Interim True-Up Adjustment and to enforce the provisions of the
Securitization Law and the Financing Order. 
 (c) Reports. 

(i) Notification of Advice Letter Filings and True-Up Adjustments. Whenever the
Servicer files an Advice Letter with the CPUC and Notice Parties, the Servicer shall send a copy of such filing or notice (together with a copy of all notices and documents which, in the Servicer’s reasonable judgment, are material to the
adjustments effected by such Advice Letter or notice) to the Issuer, the Indenture Trustee and the Rating Agencies concurrently therewith. If, for any reason any revised Fixed Recovery Charges are not implemented and effective on the applicable date
set forth herein, the Servicer shall notify the Issuer, the Indenture Trustee and each Rating Agency by the end of the second Servicer Business Day after such applicable date. 

(ii) Servicer’s Certificate. Not later than five (5) Servicer Business Days prior to each
Payment Date or Special Payment Date, the Servicer shall deliver a written report substantially in the form of Exhibit B attached hereto (the “Servicer’s Certificate”) to the Issuer, the Indenture Trustee
and the Rating Agencies which shall include all of the following information (to the extent applicable and including any other information so specified in the Series Supplement) as to the Recovery Bonds with respect to such Payment Date or Special
Payment Date or the period since the previous Payment Date, as applicable: 
 (A) the amount of the payment to Holder
allocable to principal, if any; 
 (B) the amount of the payment to Holders allocable to interest; 

(C) the aggregate Outstanding Amount of the Recovery Bonds, before and after giving effect to any payments allocated to
principal reported under clause (A) above; 
 (D) the difference, if any, between the amount
specified in clause (C) above and the Outstanding Amount specified in the Expected Amortization Schedule; 

  
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 (E) any other transfers and payments to be made on such Payment Date or
Special Payment Date, including amounts paid to the Indenture Trustee and to the Servicer; and 
 (F) the amounts on deposit
in the Capital Subaccount and the Excess Funds Subaccount, after giving effect to the foregoing payments. 
 (iii) Reports
to Consumers. 
 (A) After each revised Fixed Recovery Charge has gone into effect pursuant to a True-Up Adjustment, the Servicer shall, to the extent and in the manner and time frame required by the Financing Order and applicable CPUC Regulations, if any, cause to be prepared and delivered to Consumers any
required notices announcing such revised Fixed Recovery Charges. 
 (B) The Servicer shall comply with the requirements of
the Financing Order with respect to the identification of Fixed Recovery Charges on Bills. As provided in the Financing Order, while SCE is implementing changes to its billing system, SCE will include an explanation of the Fixed Recovery Charge in
the “Things You Should Know” portion of each Consumer’s bill and must include information necessary for the Consumer to calculate the Fixed Recovery Charges and a link to the SCE website that will provide additional information. As
provided in the Financing Order, after implementation changes to its billing system, SCE will include the Fixed Recovery Charge, fixed recovery charges relating to the Issuer’s Senior Secured Recovery Bonds, Series 2021-A and fixed recovery charges relating to Additional Recovery Bonds as a single line item for billing and accounting purposes on Consumer’s Bills, which may include charges, authorized in future financing
orders, securing other recovery bonds, and will continue to include an explanation of the Fixed Recovery Charge in the “Things You Should Know” portion of each Consumer’s Bill. 

(C) Except to the extent that applicable CPUC Regulations make the Applicable ESP responsible for such costs, or the Applicable
ESP has otherwise agreed to pay such costs, the Servicer shall pay from its own funds all costs of preparation and delivery incurred in connection with clauses (A) and (B) above, including printing and postage
costs as the same may increase or decrease from time to time. 
 (iv) Reconciliation Certificate. The Servicer shall
provide to the Indenture Trustee within sixty (60) days of each Payment Date, a Reconciliation Certificate in the form of Exhibit H hereto, in accordance with Section 6.11(c) of this Agreement. 

(v) ESP Reports. The Servicer shall provide to the Rating Agencies, upon request, any publicly available reports filed
by the Servicer with the CPUC (or otherwise made publicly available by the Servicer) relating to ESPs and any other non-confidential and non-proprietary information
relating to ESPs reasonably requested by the Rating Agencies to the extent such information is reasonably available to the Servicer. 

  
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 SECTION 4.02 Limitation of Liability. (a) The Issuer
and the Servicer expressly agree and acknowledge that: 
 (i) In connection with any
True-Up Adjustment, the Servicer is acting solely in its capacity as the servicing agent hereunder. 

(ii) Neither the Servicer nor the Issuer nor the Indenture Trustee is responsible in any manner for, and shall have no
liability whatsoever as a result of, any action, decision, ruling or other determination made or not made, or any delay (other than any delay resulting from the Servicer’s failure to make any filings required by
Section 4.01 in a timely and correct manner or any breach by the Servicer of its duties under this Agreement that adversely affects the Recovery Property or the True-Up Adjustments),
by the CPUC in any way related to the Recovery Property or in connection with any True-Up Adjustment, the subject of any filings under Section 4.01, any proposed True-Up Adjustment, or the approval of any revised Fixed Recovery Charges and the scheduled adjustments thereto. 

(iii) Except to the extent the Servicer is liable under Section 6.02, the Servicer shall have no liability whatsoever
relating to the calculation of any revised Fixed Recovery Charges and the scheduled adjustments thereto, including as a result of any inaccuracy of any of the assumptions made in such calculation regarding expected energy usage volume, the Weighted
Average Days Sales Outstanding and write-offs, so long as the Servicer has acted in good faith and has not acted in a grossly negligent manner in connection therewith, nor shall the Servicer have any liability whatsoever as a result of any Person,
including the Bondholders, not receiving any payment, amount or return anticipated or expected or in respect of any Recovery Bond generally, except only to the extent that the same is caused by the Servicer’s gross negligence, willful
misconduct or bad faith. 
 (b) Notwithstanding the foregoing, this Section 4.02 shall not relieve the Servicer of
liability for any misrepresentation by the Servicer under Section 6.01 or for any breach by the Servicer of its other obligations under this Agreement. 

ARTICLE V 
 THE
RECOVERY PROPERTY 
 SECTION 5.01 Custody of Recovery Property Records. To assure uniform quality in
servicing the Recovery Property and to reduce administrative costs, the Issuer hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act as the agent of the Issuer as custodian of any and all documents and
records that the Servicer shall keep on file, in accordance with its customary procedures, relating to the Recovery Property, including copies of the Financing Order, Issuance Advice Letter and Advice Letters relating thereto and all documents filed
with the CPUC in connection with any True-Up Adjustment and computational records relating thereto (collectively, the “Recovery Property Records”), which are hereby constructively delivered to
the Indenture Trustee, as pledgee of the Issuer with respect to all Recovery Property. 

  
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 SECTION 5.02 Duties of Servicer as Custodian. 

(a) Safekeeping. The Servicer shall hold the Recovery Property Records on behalf of the Issuer and maintain such accurate and complete
accounts, records and computer systems pertaining to the Recovery Property Records as shall enable the Issuer and the Indenture Trustee, as applicable, to comply with this Agreement, the Sale Agreement and the Indenture. In performing its duties as
custodian, the Servicer shall act with reasonable care, using that degree of care and diligence that the Servicer exercises with respect to comparable assets that the Servicer services for itself or, if applicable, for others. The Servicer shall
promptly report to the Issuer, the Indenture Trustee and the Rating Agencies any failure on its part to hold the Recovery Property Records and maintain its accounts, records and computer systems as herein provided and promptly take appropriate
action to remedy any such failure. Nothing herein shall be deemed to require an initial review or any periodic review by the Issuer or the Indenture Trustee of the Recovery Property Records. The Servicer’s duties to hold the Recovery Property
Records set forth in this Section 5.02, to the extent the Recovery Property Records have not been previously transferred to a successor Servicer pursuant to Article VII, shall terminate one year and one day
after the earlier of the date on which (i) the Servicer is succeeded by a successor Servicer in accordance with Article VII and (ii) no Recovery Bonds are Outstanding. 

(b) Maintenance of and Access to Records. The Servicer shall maintain the Recovery Property Records at 2244 Walnut Grove Avenue,
Rosemead, California 91770 or at such other office as shall be specified to the Issuer and the Indenture Trustee by written notice at least thirty (30) days prior to any change in location. The Servicer shall make available for inspection,
audit and copying to the Issuer and the Indenture Trustee or their respective duly authorized representatives, attorneys or auditors the Recovery Property Records at such times during normal business hours as the Issuer or the Indenture Trustee
shall reasonably request and which do not unreasonably interfere with the Servicer’s normal operations. Nothing in this Section 5.02(b) shall affect the obligation of the Servicer to observe any applicable law
(including any CPUC Regulation) prohibiting disclosure of information regarding the Consumers, and the failure of the Servicer to provide access to such information as a result of such obligation shall not constitute a breach of this
Section 5.02(b). 
 (c) Release of Documents. Upon instruction from the Indenture Trustee in
accordance with the Indenture, the Servicer shall release any Recovery Property Records to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place or places as the
Indenture Trustee may designate, as soon as practicable. Nothing in this Section 5.02(c) shall affect the obligation of the Servicer to observe any applicable law (including any CPUC Regulation) prohibiting
disclosure of information regarding the Consumers, and the failure of the Servicer to provide access to such information as a result of such obligation shall not constitute a breach of this Section 5.02(c). 

(d) Defending Recovery Property Against Claims. The Servicer agrees to take such legal or administrative actions, including defending
against or instituting and pursuing legal actions and appearing or testifying at hearings or similar proceedings, as may be reasonably necessary (i) to block or overturn any attempts to cause a repeal, modification or supplement to the Statute
or the Financing Order or the rights of holders of Recovery Property by legislative enactment, voter initiative or constitutional amendment that would be materially adverse to Bondholders and (ii) to compel performance by the CPUC or the State
of California of any of their obligations or duties under the Securitization Law, the Financing Order or any Advice Letter. The 

  
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costs of any such action shall be payable from FRC Collections as an Operating Expense in accordance with the priorities set forth in Section 8.02(d) of the Indenture. The Servicer shall
have no obligations under this paragraph if it is not being reimbursed on a current basis for its costs and expenses in taking such actions, and shall not be required to advance its own funds to satisfy its obligations hereunder. 

(e) Seeking to Prevent Expansions of Exemptions. The Servicer agrees to take such legal or administrative actions, including defending
against or instituting and pursuing legal actions and appearing or testifying at hearings or similar proceedings, as may be reasonably necessary to attempt to prevent the granting by the State of California or the CPUC, after the Closing Date, of
any material exemptions from the obligation to pay Fixed Recovery Charges that are not expressly provided for in the Securitization Law and that violate the State Pledge or any other obligations of the State of California or the CPUC under the
Securitization Law or the Financing Order, including any failure of the CPUC to require any municipal entity which acquires any portion of the service territory of SCE to impose, collect and remit the Fixed Recovery Charges. The Servicer shall have
no obligations under this paragraph if it is not being reimbursed on a current basis for its costs and expenses in taking such actions, and shall not be required to advance its own funds to satisfy its obligations hereunder. 

SECTION 5.03 Custodian’s Indemnification. (a) The Servicer as custodian shall
indemnify the Issuer, any Independent Manager and the Indenture Trustee (for itself and for the benefit of the Holders) and each of their respective officers, directors, employees and agents for, and defend and hold harmless each such Person from
and against, any and all liabilities, obligations, losses, damages, payments and claims, and reasonable costs or expenses, of any kind whatsoever (collectively, “Indemnified Losses”) that may be imposed on, incurred by or asserted
against each such Person as the result of any grossly negligent act or omission in any way relating to the maintenance and custody by the Servicer, as custodian, of the Recovery Property Records; provided, however, that the Servicer
shall not be liable for any portion of any such amount resulting from the willful misconduct, bad faith or negligence of the Issuer, any Independent Manager or the Indenture Trustee, as the case may be. 

(b) Indemnification under this Section 5.03 shall survive resignation or removal of the Indenture Trustee or any
Independent Manager and shall include reasonable out-of-pocket fees and expenses of investigation and litigation (including reasonable attorney’s fees and expenses
and reasonable fees, out-of-pocket expenses and costs incurred in connection with any action, claim or suit brought to enforce the Indenture Trustee’s right to
indemnification). 
 SECTION 5.04 Effective Period and Termination. The Servicer’s appointment as
custodian shall become effective as of the Closing Date and shall continue in full force and effect until terminated pursuant to this Section 5.04. If the Servicer shall resign as Servicer in accordance with
Section 6.05 of this Agreement or if all of the rights and obligations of the Servicer shall have been terminated under Section 7.01, the appointment of the Servicer as custodian shall be terminated effective as of the
date on which the termination or resignation of the Servicer is effective. Additionally, if not sooner terminated as provided above, the Servicer’s obligations as custodian shall terminate one year and one day after the date on which no
Recovery Bonds are Outstanding. 

  
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 ARTICLE VI 

THE SERVICER 

SECTION 6.01 Representations and Warranties of Servicer. The Servicer makes the following representations and
warranties, as of the Closing Date, and as of such other dates as expressly provided in this Section 6.01, on which the Issuer and the Indenture Trustee are deemed to have relied in entering into this Agreement relating to
the servicing of the Recovery Property. The representations and warranties shall survive the execution and delivery of this Agreement, the sale of any Recovery Property and the pledge thereof to the Indenture Trustee pursuant to the Indenture. 

(a) Organization and Good Standing. The Servicer is duly organized and validly existing and is in good standing under the laws of the
State of California, with the requisite corporate or other power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted and to execute, deliver and carry out
the terms of this Agreement, and had at all relevant times, and has, the requisite power, authority and legal right to service the Recovery Property and to hold the Recovery Property Records as custodian. 

(b) Due Qualification. The Servicer is duly qualified to do business and is in good standing, and has obtained all necessary licenses
and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the Recovery Property as required by this Agreement) shall require such qualifications, licenses or approvals
(except where the failure to so qualify would not be reasonably likely to have a material adverse effect on the Servicer’s business, operations, assets, revenues or properties or to its servicing of the Recovery Property). 

(c) Power and Authority. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on
the part of the Servicer under its organizational or governing documents and laws. 
 (d) Binding Obligation. This Agreement
constitutes a legal, valid and binding obligation of the Servicer enforceable against the Servicer in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally from time to time in effect and to general principles of equity (including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding
in equity or at law. 
 (e) No Violation. The consummation by the Servicer of the transactions contemplated by this Agreement and the
fulfillment by the Servicer of the terms hereof shall not conflict with, result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a material default under, the articles of incorporation or
bylaws of the Servicer, or any indenture, material agreement or other instrument to which the Servicer is a party or by which it or any of its property is bound; nor result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument other than the Basic Documents or any lien created pursuant to the Securitization Law; nor violate any existing law or any order, rule or regulation applicable to the
Servicer of any court or of any Federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or its properties. 

  
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 (f) No Proceedings. There are no proceedings pending and, to the Servicer’s
knowledge, there are no proceedings threatened and, to the Servicer’s knowledge, there are no investigations pending or threatened, before any Governmental Authority having jurisdiction over the Servicer or its properties involving or relating
to the Servicer or the Issuer or, to the Servicer’s knowledge, any other Person: (i) asserting the invalidity of this Agreement or any of the other Basic Documents, (ii) seeking to prevent the issuance of the Recovery Bonds or the
consummation of any of the transactions contemplated by this Agreement or any of the other Basic Documents, (iii) seeking any determination or ruling that could reasonably be expected to materially and adversely affect the performance by the
Servicer of its obligations under, or the validity or enforceability of, this Agreement, any of the other Basic Documents or the Recovery Bonds or (iv) seeking to adversely affect the federal income tax or state income or franchise tax
classification of the Recovery Bonds as debt. 
 (g) Approvals. No approval, authorization, consent, order or other action of, or
filing with, any court, Federal or state regulatory body, administrative agency or other governmental instrumentality is required in connection with the execution and delivery by the Servicer of this Agreement, the performance by the Servicer of the
transactions contemplated hereby or the fulfillment by the Servicer of the terms hereof, except those that have been obtained or made and those that the Servicer is required to make in the future pursuant to Article IV hereof. 

(h) Reports and Certificates. Each report and certificate delivered in connection with the Issuance Advice Letter or delivered in
connection with any Advice Letter made to the CPUC by the Issuer with respect to the Fixed Recovery Charges or True-Up Adjustments will constitute a representation and warranty by the Servicer that each such
report or certificate, as the case may be, is true and correct in all material respects; provided, however, that to the extent any such report or certificate is based in part upon or contains assumptions, forecasts or other predictions
of future events, the representation and warranty of the Servicer with respect thereto will be limited to the representation and warranty that such assumptions, forecasts or other predictions of future events are reasonable based upon historical
performance (and facts known to the Servicer on the date such report or certificate is delivered). 
 SECTION 6.02
Indemnities of Servicer; Release of Claims. (a) The Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Servicer under this Agreement. 

(b) The Servicer shall indemnify the Issuer, the Indenture Trustee (for itself and for the benefit of the Holders) and the Independent Manager
and each of their respective trustees, officers, directors, employees and agents (each, an “Indemnified Person”), for, and defend and hold harmless each such Person from and against, any and all Indemnified Losses imposed on,
incurred by or asserted against any such Person as a result of (i) the Servicer’s willful misconduct, bad faith or gross negligence in the performance of, or reckless disregard of, its duties or observance of its covenants under this
Agreement or (ii) the Servicer’s material breach of any of its representations or warranties that results in a Servicer Default under this Agreement, except to the extent of Indemnified Losses either resulting from the willful misconduct,
bad faith or gross negligence of such Person seeking indemnification hereunder or resulting from a material breach of a representation or warranty made by such Person seeking indemnification hereunder in any of the Basic Documents that gives rise to
the Servicer’s breach. 

  
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 (c) For purposes of Section 6.02(b), in the event of the
termination of the rights and obligations of SCE (or any successor thereto pursuant to Section 6.03) as Servicer pursuant to Section 7.01, or a resignation by such Servicer pursuant to this Agreement, such Servicer
shall be deemed to be the Servicer pending appointment of a successor Servicer pursuant to Section 7.02. 
 (d)
Indemnification under this Section 6.02 shall survive any repeal of, modification of, or supplement to, or judicial invalidation of, the Securitization Law or the Financing Order and shall survive the resignation or removal
of the Indenture Trustee or any Independent Manager or the termination of this Agreement and shall include reasonable out-of-pocket fees and expenses of investigation
and litigation (including reasonable attorney’s fees and expenses and the reasonable fees, out-of-pocket expenses and costs incurred in connection with any action,
claim or suit brought to enforce the Indenture Trustee’s right to indemnification). 
 (e) Except to the extent expressly provided in
this Agreement or the other Basic Documents (including the Servicer’s claims with respect to the Servicing Fee, reimbursement for any Excess Remittance, reimbursement for costs incurred pursuant to Section 5.02(d) and
the payment of the purchase price of Recovery Property), the Servicer hereby releases and discharges the Issuer, any Independent Manager and the Indenture Trustee, and each of their respective officers, directors and agents (collectively, the
“Released Parties”) from any and all actions, claims and demands whatsoever, whenever arising, which the Servicer, in its capacity as Servicer or otherwise, shall or may have against any such Person relating to the Recovery Property
or the Servicer’s activities with respect thereto other than any actions, claims and demands arising out of the willful misconduct, bad faith or gross negligence of the Released Parties. 

(f) Promptly after receipt by an Indemnified Person of notice (or, in the case of the Indenture Trustee, receipt of notice by a Responsible
Officer only) of the commencement of any action, proceeding or investigation, such Indemnified Person shall, if a claim in respect thereof is to be made against the Servicer under this Section 6.02, notify the Servicer in
writing of the commencement thereof. Failure by an Indemnified Person to so notify the Servicer shall relieve the Servicer from the obligation to indemnify and hold harmless such Indemnified Person under this Section 6.02
only to the extent that the Servicer suffers actual prejudice as a result of such failure. With respect to any action, proceeding or investigation brought by a third party for which indemnification may be sought under this
Section 6.02, the Servicer shall be entitled to conduct and control, at its expense and with counsel of its choosing that is reasonably satisfactory to such Indemnified Person, the defense of any such action, proceeding or
investigation (in which case the Servicer shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person except as set forth below); provided that the Indemnified Person shall have the right
to participate in such action, proceeding or investigation through counsel chosen by it and at its own expense. 

  
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 (g) Notwithstanding the Servicer’s election to assume the defense of any action,
proceeding or investigation, the Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Servicer shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the defendants in
any such action include both the Indemnified Person and the Servicer and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or additional to those available to the
Servicer, (ii) the Servicer shall not have employed counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the institution of such action, (iii) the Servicer
shall authorize the Indemnified Person to employ separate counsel at the expense of the Servicer or (iv) in the case of the Indenture Trustee, such action exposes the Indenture Trustee to a material risk of criminal liability or forfeiture or a
Servicer Default has occurred and is continuing. Notwithstanding the foregoing, the Servicer shall not be obligated to pay for the fees, costs and expenses of more than one separate counsel for the Indemnified Persons other than one local counsel,
if appropriate. The Servicer will not, without the prior written consent of the Indemnified Person, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification may be sought under this Section 6.02 (whether or not the Indemnified Person is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of
the Indemnified Person from all liability arising out of such claim, action, suit or proceeding. 
 SECTION 6.03
Merger or Consolidation of, or Assumption of the Obligations of, Servicer. Any Person (a) into which the Servicer may be merged or consolidated and that succeeds to all or substantially all of the electric distribution business of the
Servicer, (b) that results from the division of the Servicer into two or more entities and succeeds to all or substantially all of the electric distribution business of the Servicer, (c) that may result from any merger or consolidation to
which the Servicer shall be a party and succeeds to all or substantially all of the electric distribution business of the Servicer, or (d) that may otherwise succeed to all or substantially all of the electric distribution business of the
Servicer, shall be the successor to the Servicer under this Agreement; provided, however, that (i) such successor must execute an agreement of assumption to perform every obligation of the Servicer hereunder, (ii) immediately after giving
effect to such transaction, no Servicer Default and no event that, after notice or lapse of time, or both, would become a Servicer Default shall have occurred and be continuing, (iii) the Servicer shall have delivered to the Issuer, the
Indenture Trustee and the Rating Agencies an Officers’ Certificate and an Opinion of Counsel each stating that such consolidation, merger or succession and such agreement of assumption complies with this Section and that all conditions
precedent provided for in this Agreement relating to such transaction have been complied with and (iv) prior written notice shall have been delivered to the Rating Agencies. Notwithstanding anything herein to the contrary, the execution of the
foregoing agreement of assumption and compliance with clauses (i) and (ii) above shall be conditions to the consummation of the transactions referred to in clauses (a), (b), (c) and (d) above. If all the conditions to any such assumption
are met, then the prior Servicer will automatically be released from all of its obligations under this Agreement, other than those that specifically survive a termination of this Agreement. 

SECTION 6.04 Limitation on Liability of Servicer and Others. Neither the Servicer nor any of the directors or
officers or employees or agents of the Servicer shall be liable to the Issuer, the Indenture Trustee, the Bondholders or any other Person, except as provided under this Agreement, for any action taken or for refraining from the taking of any action
pursuant to this Agreement or for good faith errors in judgment; provided, however, that this provision shall not 

  
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protect the Servicer or any such person against any liability that would otherwise be imposed by reason of willful misconduct, bad faith or gross negligence in the performance of duties or by
reason of reckless disregard of obligations and duties under this Agreement. The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person, respecting any matters arising under this Agreement. 
 Except as provided in this Agreement,
the Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be related to or incidental to its duties to service the Recovery Property in accordance with this Agreement, and that in its opinion
may involve it in any expense or liability; provided, however, that the Servicer may, in respect of any Proceeding, undertake any action that it is not specifically identified in this Agreement as a duty of the Servicer but that the Servicer
reasonably determines is necessary or desirable in order to protect the rights and duties of the Issuer or the Indenture Trustee under this Agreement and the interests of the Holders and Consumers under this Agreement. The Servicer’s costs and
expenses incurred in connection with any such proceeding shall be payable from FRC Collections as an Operating Expense (and shall not be deemed to constitute a portion of the Servicing Fee) in accordance with the Indenture. The Servicer shall have
no obligations under this paragraph if it is not being reimbursed on a current basis for its costs and expenses in taking such actions, and shall not be required to advance its own funds to satisfy its obligations hereunder. 

SECTION 6.05 SCE Not to Resign as Servicer. Subject to the provisions of Section 6.03, SCE shall not
resign from the obligations and duties hereby imposed on it as Servicer under this Agreement except upon either (a) a determination by SCE that the performance of its duties under this Agreement shall no longer be permissible under applicable
law or (b) satisfaction of the following: (i) the Rating Agency Condition shall have been satisfied and (ii) the CPUC shall have approved such resignation. Notice of any such determination permitting the resignation of SCE pursuant to
clause (a) shall be communicated to the Issuer, the Indenture Trustee and the Rating Agencies at the earliest practicable time (and, if such communication is not in writing, shall be confirmed in writing at the earliest practicable time) and
any such determination shall be evidenced by an Opinion of Counsel to such effect delivered to the Issuer and the Indenture Trustee, with a copy to the CPUC, concurrently with or promptly after such notice. No such resignation shall become effective
until a successor Servicer shall have assumed the responsibilities and obligations of SCE in accordance with Section 7.02. No such resignation shall become effective until a successor Servicer shall have assumed the responsibilities and
obligations of SCE in accordance with Section 7.02. 
 SECTION 6.06 Servicing
Compensation. (a) In consideration for its services hereunder, until the Retirement of the Recovery Bonds, the Servicer shall receive an annual fee (the “Servicing Fee”) in an amount equal to (i) $266,633 per annum for
so long as SCE or an Affiliate of SCE is the Servicer or (ii) if SCE or any of its Affiliates is not the Servicer, an amount agreed upon by the Successor Servicer and the Indenture Trustee, provided that such fee must be approved by the
CPUC, plus, in either case, reasonable out-of-pocket expenses to cover the Servicer’s incremental costs and expenses in servicing the Recovery Bond. The Servicing
Fee owing shall be calculated based on the initial principal amount of the Recovery Bonds and shall be paid semi-annually with half of the Servicing Fee being paid on each Payment Date (provided that the first payment may be adjusted for an longer
or shorter first Payment Period). The Servicer 

  
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also shall be entitled to retain as additional compensation (i) any interest earnings on Fixed Recovery Charge Payments received by the Servicer and invested by the Servicer during each
Collection Period prior to remittance to the Collection Account and (ii) all late payment charges, if any, collected from Consumers or ESPs; provided, however, that if the Servicer has failed to remit the Daily Remittance to the
General Subaccount of any Collection Account on the Servicer Business Day that such payment is to be made pursuant to Section 6.11 on more than three (3) occasions during the period that the Recovery Bonds are
outstanding, then thereafter the Servicer will be required to pay to the Indenture Trustee interest on each Daily Remittance accrued at the Federal Funds Rate from the Servicer Business Day on which such Daily Remittance was required to be made to
the date that such Daily Remittance is actually made. 
 (b) The Servicing Fee set forth in Section 6.06(a) shall
be paid to the Servicer by the Indenture Trustee, on each Payment Date in accordance with the priorities set forth in Section 8.02(e) of the Indenture, by wire transfer of immediately available funds from the Collection
Account to an account designated by the Servicer. Any portion of the Servicing Fee not paid on any such date should be added to the Servicing Fee payable on the subsequent Payment Date. In no event shall the Indenture Trustee be liable for the
payment of any Servicing Fee or other amounts specified in this Section 6.06; provided that this Section 6.06 does not relieve the Indenture Trustee of any duties it has to allocate funds
for payment for such fees under Section 8.02 of the Indenture. 
 (c) The foregoing Servicing Fees constitute a
fair and reasonable price for the obligations to be performed by the Servicer. Such Servicing Fee shall be determined without regard to the income of the Issuer, shall not be deemed to constitute distributions to the recipient of any profit, loss or
capital of the Issuer and shall be considered an Operating Expense of the Issuer subject to the limitations on such expenses set forth in the Financing Order. 

SECTION 6.07 Compliance with Applicable Law. The Servicer covenants and agrees, in servicing the Recovery
Property, to comply in all material respects with all laws applicable to, and binding upon, the Servicer and relating to the Recovery Property the noncompliance with which would have a material adverse effect on the value of the Recovery Property;
provided, however, that the foregoing is not intended to, and shall not, impose any liability on the Servicer for noncompliance with any Requirement of Law that the Servicer is contesting in good faith in accordance with its customary
standards and procedures. 
 SECTION 6.08 Access to Certain Records and Information Regarding Recovery
Property. The Servicer shall provide to the Indenture Trustee access to the Recovery Property Records as is reasonably required for the Indenture Trustee to perform its duties and obligations under the Indenture and the other Basic Documents,
and shall provide access to such records to the Holders as required by applicable law. Access shall be afforded without charge, but only upon reasonable request and during normal business hours at the respective offices of the Servicer. Nothing in
this Section 6.08 shall affect the obligation of the Servicer to observe any applicable law (including any CPUC Regulation) prohibiting disclosure of information regarding the Consumers, and the failure of the Servicer to
provide access to such information as a result of such obligation shall not constitute a breach of this Section 6.08. 

  
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 SECTION 6.09 Appointments. The Servicer may at any time
appoint any Person to perform all or any portion of its obligations as Servicer hereunder; provided, however, that, unless such Person is an Affiliate of SCE, the Rating Agency Condition shall have been satisfied in connection
therewith; provided further that the Servicer shall remain obligated and be liable under this Agreement for the servicing and administering of the Recovery Property in accordance with the provisions hereof without diminution of such
obligation and liability by virtue of the appointment of such Person and to the same extent and under the same terms and conditions as if the Servicer alone were servicing and administering the Recovery Property. The fees and expenses of any such
Person shall be as agreed between the Servicer and such Person from time to time and none of the Issuer, the Indenture Trustee, the Holders or any other Person shall have any responsibility therefor or right or claim thereto. Any such appointment
shall not constitute a Servicer resignation under Section 6.05. 
 SECTION 6.10 No
Servicer Advances. The Servicer shall not make any advances of interest on or principal of the Recovery Bonds. 

SECTION 6.11 Remittances. (a) On each Servicer Business Day, commencing
twenty-two (22) days after the Billing Commencement Date, the Servicer shall remit to the General Subaccount of the Collection Account the total Estimated FRC Collections estimated to have been received
by the Servicer from or on behalf of Consumers on such Servicer Business Day in respect of all previously billed Fixed Recovery Charges (the “Daily Remittance”), which Daily Remittance shall be calculated according to the procedures
set forth in Annex I and shall be remitted as soon as reasonably practicable but in no event later than the second Servicer Business Day after such payments are estimated to have been received. Prior to each remittance to the General
Subaccount of the Collection Account pursuant to this Section 6.11, the Servicer shall provide written notice to the Indenture Trustee of each such remittance (including the exact dollar amount to be remitted). The Servicer
shall also, promptly upon receipt, remit to the Collection Account any other proceeds of the Recovery Bond Collateral which it may receive from time to time. 

(b) The Servicer agrees and acknowledges that it holds all Fixed Recovery Charge Payments collected by it and any other proceeds for the Fixed
Recovery Charge Payments received by it for the benefit of the Indenture Trustee and the Holders and that all such amounts will be remitted by the Servicer in accordance with this Section 6.11 without any surcharge, fee,
offset, charge or other deduction except (i) as set forth in clause (c) below and (ii) for late fees permitted by Section 6.06. The Servicer further agrees not to make any claim to reduce
its obligation to remit all Fixed Recovery Charge Payments collected by it in accordance with this Agreement except (i) as set forth in clause (c) below and (ii) for late fees permitted by
Section 6.06. 
 (c) Not less than semi-annually (except in the case of the first reconciliation after the first
Payment Date, which will be longer than six months), the Servicer will compare Actual FRC Collections to the Estimated FRC Collections that have been remitted to the Indenture Trustee. Such reconciliation will be conducted within sixty
(60) days of each Payment Date and reflected in a Reconciliation Certificate delivered to the Indenture Trustee in the form attached hereto as Exhibit H. The Servicer shall calculate the amount of any Remittance Shortfall or Excess
Remittance for the immediately preceding Reconciliation Period, and (A) if a Remittance Shortfall exists, the Servicer shall make a supplemental remittance, to the General Subaccount of the Collection Account within ten (10) days, or
(B) if an Excess Remittance exists, the Servicer will 

  
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reduce the Daily Remittance(s) commencing the next month following the date the Reconciliation Certificate is delivered to the Indenture Trustee and continuing until the Excess Remittance is
eliminated. If there is a Remittance Shortfall, the amount which the Servicer remits to the General Subaccount of the Collection Account on the relevant date set forth above shall be increased by the amount of such Remittance Shortfall, such
increase coming from the Servicer’s own funds. The Servicer acknowledges and agrees that the Issuer is the owner of and has the legal right to all Fixed Recovery Charges received by the Servicer, and that the daily and reconciliation
calculations and remittances permitted by this Servicing Agreement, which are based upon estimates of the Fixed Recovery Charges received by the Servicer, is made for convenience and cost effectiveness given the current billing system of the
Servicer. The Servicer agrees that in the event any Servicer Default hereunder or if otherwise required or permitted, as provided in Section 6(e)(ii) of Annex I, the Servicer, upon demand of the Indenture Trustee, will
promptly, but not later than 60 days follow such request, provide to the Indenture Trustee a reconciliation of actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer. 

(d) Unless otherwise directed to do so by the Issuer, the Servicer shall be responsible for selecting Eligible Investments in which the funds
in each Collection Account shall be invested pursuant to Section 8.03 of the Indenture. 
 ARTICLE VII

 SERVICER DEFAULT 

SECTION 7.01 Servicer Default. If any one or more of the following events (each, a “Servicer
Default”) shall occur and be continuing: 
 (a) any failure by the Servicer to remit to the Collection Account on behalf of the
Issuer any required remittance that shall continue unremedied for a period of five (5) Business Days after written notice of such failure is received by the Servicer from the Issuer or the Indenture Trustee or after discovery of such failure by
an officer of the Servicer; or 
 (b) any failure on the part of the Servicer or, so long as the Servicer is SCE or an Affiliate thereof, any
failure on the part of SCE, as the case may be, duly to observe or to perform in any material respect any covenants or agreements of the Servicer or SCE, as the case may be, set forth in this Agreement (other than as provided in
clause (a) of this Section 7.01) or any other Basic Document to which it is a party, which failure shall (i) materially and adversely affect the rights of the Holders and (ii) continue
unremedied for a period of sixty (60) days after the date on which (A) written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer or SCE, as the case may be, by the Issuer (with a copy to the
Indenture Trustee) or to the Servicer or SCE, as the case may be, by the Indenture Trustee or (B) such failure is discovered by an officer of the Servicer; or 

(c) any failure by the Servicer duly to perform its obligations under Section 4.01(b) of this Agreement in the
time and manner set forth therein, which failure continues unremedied for a period of five (5) Business Days; or 

  
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 (d) any representation or warranty made by the Servicer in this Agreement or any Basic
Document shall prove to have been incorrect in a material respect when made, which has a material adverse effect on the Holders and which material adverse effect continues unremedied for a period of sixty (60) days after the date on which
(A) written notice thereof, requiring the same to be remedied, shall have been delivered to the Servicer (with a copy to the Indenture Trustee) by the Issuer or the Indenture Trustee or (B) such failure is discovered by an officer of the
Servicer; or 
 (e) an Insolvency Event occurs with respect to the Servicer or SCE; 

then, and in each and every case, so long as the Servicer Default shall not have been remedied, either the Indenture Trustee, or the Holders of Recovery Bonds
evidencing not less than a majority of the Outstanding Amount of the Recovery Bonds, by notice then given in writing to the Servicer (and to the Indenture Trustee if given by the Bondholders) (a “Termination Notice”) may terminate
all the rights and obligations of the Servicer, subject to compliance with Section 7.02. In addition, upon a Servicer Default described in Section 7.01(a), each of the following shall be entitled to apply to the CPUC for sequestration and
payment of revenues arising with respect to the Recovery Property: (i) the holders of any Recovery Bonds and any Indenture Trustee or representative thereof as beneficiaries of any statutory or other Lien permitted by the Securitization Law;
(ii) the Issuer or its assignees; or (iii) pledgees or transferees, including transferees under Section 850.4 of the Securitization Law, of the Recovery Property. On or after the receipt by the Servicer of a Termination Notice, all
authority and power of the Servicer under this Agreement, whether with respect to the Recovery Bonds, the Recovery Property, the Fixed Recovery Charges or otherwise, shall, without further action, pass to and be vested in such successor Servicer as
may be appointed under Section 7.02; and, without limitation, the Indenture Trustee is hereby authorized and empowered to execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such Termination Notice, whether
to complete the transfer of the Recovery Property Records and related documents, or otherwise. The predecessor Servicer shall cooperate with the successor Servicer, the Issuer and the Indenture Trustee in effecting the termination of the
responsibilities and rights of the predecessor Servicer under this Agreement, including the transfer to the successor Servicer for administration by it of all Recovery Property Records and all cash amounts that shall at the time be held by the
predecessor Servicer for remittance, or shall thereafter be received by it with respect to the Recovery Property or the Fixed Recovery Charges. As soon as practicable after receipt by the Servicer of such Termination Notice, the Servicer shall
deliver the Recovery Property Records to the successor Servicer. In case a successor Servicer is appointed as a result of a Servicer Default, all reasonable costs and expenses (including reasonable attorney’s fees and expenses) incurred in
connection with transferring the Recovery Property Records to the successor Servicer and amending this Agreement to reflect such succession as Servicer pursuant to this Section shall be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses. Termination of SCE as Servicer shall not terminate SCE’ rights or obligations under the Sale Agreement (except rights thereunder deriving from its rights as the Servicer hereunder). 

  
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 SECTION 7.02 Appointment of Successor. 

(a) Upon the Servicer’s receipt of a Termination Notice pursuant to Section 7.01 or the Servicer’s resignation or removal in
accordance with the terms of this Agreement, the predecessor Servicer shall continue to perform its functions as Servicer under this Agreement, and shall be entitled to receive the requisite portion of the Servicing Fee, until a successor Servicer
shall have assumed in writing the obligations of the Servicer hereunder as described below. In the event of the Servicer’s termination, removal or resignation hereunder, the Issuer shall appoint a successor Servicer with the Indenture
Trustee’s prior written consent thereto (which consent shall not be unreasonably withheld) and the written approval of the CPUC, and the successor Servicer shall accept its appointment by a written assumption in form acceptable to the Issuer
and the Indenture Trustee. If within 30 days after the delivery of the Termination Notice, the Issuer shall not have obtained such a new Servicer, the Indenture Trustee may petition the CPUC or a court of competent jurisdiction to appoint a
successor Servicer under this Agreement. A Person shall qualify as a successor Servicer only if (i) such Person is permitted under CPUC Regulations to perform the duties of the Servicer, (ii) the Rating Agency Condition shall have been
satisfied and (iii) such Person enters into a servicing agreement with the Issuer having substantially the same provisions as this Agreement. In no event shall the Indenture Trustee be liable for its or the Issuer’s appointment of a
successor Servicer. The Indenture Trustee’s expenses incurred under this Section 7.02(a) shall be at the sole expense of the Issuer and payable from the Collection Account as provided in Section 8.02 of the
Indenture 
 (b) Upon appointment, the successor Servicer shall be the successor in all respects to the predecessor Servicer and shall be
subject to all the responsibilities, duties and liabilities arising thereafter relating thereto placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights granted to the predecessor Servicer by the terms and
provisions of this Agreement. 
 SECTION 7.03 Waiver of Past Defaults. The Holders of Recovery Bonds
evidencing not less than a majority of the Outstanding Amount of the Recovery Bonds of each Series may, on behalf of all Bondholders of that respective Series, direct the Indenture Trustee to waive in writing any default by the Servicer in the
performance of its obligations hereunder and its consequences, except a default in making any required remittances to the Indenture Trustee for deposit to the Collection Account in accordance with this Agreement. Upon any such waiver of a past
default, such default shall cease to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default or impair any right
consequent thereto. 
 SECTION 7.04 Notice of Servicer Default. The Servicer shall deliver to the Issuer,
the Indenture Trustee, the CPUC and the Rating Agencies, promptly after having obtained knowledge thereof, but in no event later than five (5) Business Days thereafter, written notice of any event which with the giving of notice or lapse of
time, or both, would become a Servicer Default under Section 7.01. 

  
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 ARTICLE VIII 

MISCELLANEOUS PROVISIONS 

SECTION 8.01 Amendment. (a) This Agreement may be amended in writing by the Servicer and the Issuer with
five Business Days’ prior written notice given to the Rating Agencies and the prior written consent of the Indenture Trustee, but without the consent of any of the Bondholders, (i) to cure any ambiguity, to correct or supplement any
provisions in this Agreement, (ii) to add additional Recovery Property under this Agreement or (iii) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Agreement or of
modifying in any manner the rights of the Bondholders; provided, however, that any such amendment pursuant to clause (iii) shall not, as evidenced by an Officer’s Certificate delivered to the Issuer and the Indenture Trustee, adversely
affect in any material respect the interests of any Bondholder. For purposes of this paragraph (a), any amendment that increases the Servicing Fee payable to a successor Servicer shall not be treated as adversely affecting the interests of any
Bondholder so long as the Servicing Fee is within the range approved in the Financing Order. 
 (b) This Agreement may also be amended in
writing from time to time by the Servicer and the Issuer with prior written notice given to the Rating Agencies and the prior written consent of the Indenture Trustee and the prior written consent of the Holders of Recovery Bonds evidencing not less
than a majority of the Outstanding Amount of the Recovery Bonds of each Series affected by any such amendment, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Bondholders of such Series; provided, however, that no such amendment shall (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, FRC Collections or (ii) reduce
the aforesaid percentage of the Outstanding Amount of any Series of Recovery Bonds, the Holders of which are required to consent to any such amendment, without the consent of the Holders of all the outstanding Bonds of each such Series. 

Promptly after the execution of any such amendment and the requisite consents, the Issuer shall furnish written notification of the substance
of such amendment to the Indenture Trustee and each of the Rating Agencies. 
 It shall not be necessary for the consent of Recovery
Bondholders pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. 

(c) Prior to the execution of any amendment to this Agreement, the Issuer and the Indenture Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel of external counsel stating that such amendment is authorized or permitted by this Agreement and that all conditions precedent have been satisfied and upon the Opinion of Counsel from external counsel
referred to in Section 3.01(c)(i). The Issuer and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment which affects their own rights, duties, indemnities or immunities under this
Agreement or otherwise. 
 (d) Notwithstanding Sections 8.01(a) or 8.01(b), or anything to the contrary in this Agreement, the Servicer and
the Issuer may amend Annex I to this Agreement in writing with prior written notice given to the Indenture Trustee, the CPUC and the Rating Agencies, but without the consent of the Indenture Trustee, the CPUC, any Rating Agency or any
Bondholder, solely to address changes to the Servicer’s method of calculating Fixed Recovery Charge Payments received as a result of changes to the Servicer’s current computerized customer information system or to address the manner of
presenting Fixed Recovery Charges on the Bills of Consumers; provided that any such amendment shall not have or cause a material adverse effect on the Bondholders. 

  
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 SECTION 8.02 Maintenance of Accounts and Records.
(a) The Servicer shall maintain accounts and records as to the Recovery Property accurately and in accordance with its standard accounting procedures and in sufficient detail to permit reconciliation between Fixed Recovery Charge Payments
received by the Servicer and FRC Collections from time to time deposited in the Collection Account. 
 (b) The Servicer shall permit the
Indenture Trustee and its agents at any time during normal business hours, upon reasonable notice to the Servicer and to the extent it does not unreasonably interfere with the Servicer’s normal operations, to inspect, audit and make copies of
and abstracts from the Servicer’s records regarding the Recovery Property and the Fixed Recovery Charges. Nothing in this Section 8.02(b) shall affect the obligation of the Servicer to observe any applicable law
(including any CPUC Regulation) prohibiting disclosure of information regarding the Consumers, and the failure of the Servicer to provide access to such information as a result of such obligation shall not constitute a breach of this
Section 8.02(b). 
 SECTION 8.03 Notices. Unless otherwise specifically provided
herein, all notices, directions, consents and waivers required under the terms and provisions of this Agreement shall be in writing and shall be effective (i) upon receipt when sent through the mails, registered or certified mail, return
receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (ii) upon receipt when sent by an overnight courier, (iii) on the date personally delivered to an authorized
officer of the party to which sent or (iv) on the date transmitted by facsimile or other electronic transmission with a confirmation of receipt in all cases, addressed as follows: 

(a) in the case of the Servicer, to SCE, at 2244 Walnut Grove Avenue, P.O. Box 800, Rosemead, California 91770, Attention: Bill Pang, Senior
Manager, Telephone: (626) 302-1212, Email: bill.pang@sce.com; 
 (b) in the case of the Issuer, to
SCE Recovery Funding LLC at 2244 Walnut Grove Avenue, P.O. Box 5407, Rosemead, California 91770, Attention: Natalia Woodward, Telephone: (626) 302-7255, Email: Natalia.l.woodward@sce.com; 

(c) in the case of the Indenture Trustee, to the Corporate Trust Office; 

(d) in the case of the CPUC, to California Public Utilities Commission at 505 Van Ness Avenue, San Francisco, California, 94102, Attention:
General Counsel, Telephone: (415) 703-2782, Facsimile: (415) 703-1758; 

(e) in the case of Moody’s, to Moody’s Investors Service, Inc., ABS/RMBS Monitoring Department, 25th Floor, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, Email: ServicerReports@moodys.com (all such notices to be delivered to Moody’s in writing by email); 

(f) in the case of Standard & Poor’s, to Standard & Poor’s Ratings Group, Inc., Structured Credit Surveillance, 55
Water Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be delivered to Standard & Poor’s in writing by email); and 

  
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 (g) as to each of the foregoing, at such other address as shall be designated by written
notice to the other parties. 
 SECTION 8.04 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Section 6.03 and as provided in the provisions of this Agreement concerning the resignation of the Servicer, this Agreement may not be assigned by the Servicer. 

SECTION 8.05 Limitations on Rights of Others. The provisions of this Agreement are solely for the benefit of
the Servicer and the Issuer and, to the extent provided herein or in the Basic Documents, Consumers, the Indenture Trustee and the Holders, and the other Persons expressly referred to herein, and such Persons shall have the right to enforce the
relevant provisions of this Agreement. Nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Recovery Property or Recovery Bond Collateral or under
or in respect of this Agreement or any covenants, conditions or provisions contained herein. 
 SECTION 8.06
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remainder of
such provision (if any) or the remaining provisions hereof (unless such a construction shall be unreasonable), and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. 
 SECTION 8.07 Separate Counterparts. This Agreement may be executed by the parties hereto
in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

SECTION 8.08 Headings. The headings of the various Articles and Sections herein are for convenience of
reference only and shall not define or limit any of the terms or provisions hereof. 
 SECTION 8.09 GOVERNING
LAW. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws. 
 SECTION 8.10 Assignment to Indenture
Trustee. (a) The Servicer hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security interest by the Issuer to the Indenture Trustee for the benefit of the Secured Parties pursuant to the Indenture of any
or all of the Issuer’s rights hereunder and (b) in no event shall the Indenture Trustee have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the
certificates delivered pursuant hereto, as to all of which any recourse shall be had solely to the assets of the Issuer subject to the availability of funds therefor under Section 8.02 of the Indenture. 

  
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 SECTION 8.11 Nonpetition Covenants. Notwithstanding any
prior termination of this Agreement or the Indenture, but subject to the CPUC’s right to order the sequestration and payment of revenues arising with respect to the Recovery Property notwithstanding any bankruptcy, reorganization or other
insolvency proceedings with respect to the debtor, pledgor or transferor of the Recovery Property pursuant to Section 850.2(e) and (g) of the Securitization Act, the Servicer shall not, prior to the date that is one year and one day after
the termination of all indentures for all series of recovery bonds issued by the Issuer, acquiesce, petition or otherwise invoke or cause the Issuer to invoke the process of any court or governmental authority for the purpose of commencing or
sustaining a case against the Issuer under any Federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of
the property of the Issuer or ordering the winding up or liquidation of the affairs of the Issuer. 
 SECTION 8.12
Limitation of Liability. It is expressly understood and agreed by the parties hereto that this Agreement is executed and delivered by the Indenture Trustee, not individually or personally but solely as Indenture Trustee in the exercise of the
powers and authority conferred and vested in it, and that the Indenture Trustee, in acting hereunder, is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Indenture. 

SECTION 8.13 Rule 17g-5 Compliance. The Servicer agrees that any
notice, report, request for satisfaction of the Rating Agency Condition, document or other information provided by the Servicer to any Rating Agency under this Agreement or any other Basic Document to which it is a party for the purpose of
determining the initial credit rating of the Recovery Bonds or undertaking credit rating surveillance of the Recovery Bonds with any Rating Agency, or satisfy the Rating Agency Condition, shall be substantially concurrently posted by the Servicer on
the 17g-5 Website. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective officers as of the date first above written. 
  

					
	ISSUER:
	
	SCE RECOVERY FUNDING LLC,
	a Delaware limited liability company
		
	By:	 	              

		 	Name:	 	
		 	Title:	 	
		 		 	
	
	SERVICER:
	
	SOUTHERN CALIFORNIA EDISON
	COMPANY,
	a California corporation
		
	By:	 	              

		 	Name:	 	
		 	Title:	 	

  

					
	ACKNOWLEDGED AND ACCEPTED:
	
	THE BANK OF NEW YORK MELLON
	TRUST COMPANY, N.A.,
	as Indenture Trustee
		
	By:	 	
                 

		 	Name:	 	
		 	Title:	 	

 Signature Page to 

Recovery Property Servicing Agreement 

 ANNEX I 

SERVICING PROCEDURES 
 The Servicer agrees
to comply with the following servicing procedures: 
 SECTION 1. DEFINITIONS. 

(a) Capitalized terms used but not otherwise defined herein shall have the meanings specified in the Recovery Property Servicing Agreement (the
“Agreement”) to which this Annex I is attached. 
 (b) Whenever used in this Annex I, the
following words and phrases shall have the following meanings: 
 “Applicable MDMA” means with respect to each Consumer,
the meter data management agent providing meter reading services for that Consumer’s account. 
 “Billed FRCs” means
the amounts of Fixed Recovery Charges billed by the Servicer, whether billed directly to Consumers by the Servicer or indirectly through ESPs. 

“Consolidated ESP Billing” means the billing procedures pursuant to which an ESP will be responsible for billing and
collecting all charges to Consumers served by such ESP, including the Fixed Recovery Charges, and will become obligated to the Servicer for such Billed FRC Revenues, all in accordance with applicable CPUC Regulations. Unless the context indicates
otherwise, the term Consolidated ESP Billing includes Full Consolidated ESP Billing. 
 “Full Consolidated ESP Billing”
means the billing procedures pursuant to which an ESP performs the same tasks it would perform under Consolidated ESP Billing and, in addition, calculates all utility charges to Consumers it serves, including the Fixed Recovery Charges, from
specific cents per kilowatt hour rates provided by the Servicer. 
 “Servicer Policies and Practices” means, with respect
to the Servicer’s duties under this Annex I, the policies and practices of the Servicer applicable to such duties that the Servicer follows with respect to comparable assets that it services for itself and, if applicable, others. 

SECTION 2. DATA ACQUISITION. 

(a) Installation and Maintenance of Meters. Except to the extent that a ESP is responsible for such services pursuant to an ESP
Agreement, the Servicer shall use its best efforts to cause to be installed, replaced and maintained meters in such places and in such condition as will enable the Servicer to obtain usage measurements for each Consumer at least once every Billing
Period. If Consumers are billed by entities other than the Servicer or an ESP, the Servicer shall request these other entities to bill those Consumers for the Fixed Recovery Charge and to remit the Fixed Recover Charge Revenues to the Servicer on
behalf of those Consumers. The Servicer shall have no other responsibility to bill or collect Fixed Recovery Charges from or in respect of Consumers billed by entities other than ESPs. 

  
 Annex I-1 

 (b) Meter Reading. At least once each Billing Period, the Servicer shall obtain usage
measurements from the Applicable MDMA for each Consumer; provided, however, that the Servicer may estimate any Consumer’s usage determined in accordance with applicable CPUC Regulations and Servicer Policies and Practices; and,
provided, further, that the Servicer may obtain usage measurements from the Applicable ESP for Consumers receiving services from such ESP if the respective ESP Service Agreement so provides. 

(c) Cost of Metering. The Issuer shall not be obligated to pay any costs associated with the routine metering duties set forth in this
Section 2, including the costs of installing, replacing and maintaining meters, nor shall the Issuer be entitled to any credit against the Servicing Fee for any cost savings realized by the Servicer or any ESP as a result
of new metering and/or billing technologies. 
 SECTION 3. Usage and Bill Calculation. 

The Servicer (a) shall obtain a calculation of each Consumer’s usage (which may be based on data obtained from such Consumer’s
meter read or on usage estimates determined in accordance with the Servicer Policies and Practices and applicable CPUC Regulations) at least once each Billing Period and shall determine therefrom each Consumer’s individual Fixed Recovery Charge
to be included on such Consumer’s Bill; provided, however provided, however, that in the case of Consumers served by an ESP under Full Consolidated ESP Billing, the Applicable ESP, rather than the Servicer, shall determine such
Consumers’ total Fixed Recovery Charges to be included on such Consumers’ Bills based on specific Fixed Recovery Charges (cents per kilowatt hour rates) provided by the Servicer, and the Servicer shall deliver to the Applicable ESPs such
specific cents per kilowatt hour rates as are necessary for the Applicable ESPs to calculate such Consumers’ respective Fixed Recovery Charges as such charges may change from time to time pursuant to the
True-Up Adjustments. 
 SECTION 4. BILLING. 

The Servicer shall implement the Fixed Recovery Charges as of the Billing Commencement Date and shall thereafter bill each Consumer or the
Applicable ESP, for the respective Consumer’s outstanding current and past due Fixed Recovery Charges accruing through the date on which the Fixed Recovery Charges may no longer be billed under the Tariff, all in accordance with the following:

 (a) Frequency of Bills; Billing Practices. In accordance with the Servicer’s then-existing Servicer Policies and Practices for
its own charges, as such Servicer Policies and Practices may be modified from time to time, the Servicer shall generate and issue a Bill to each Consumer, or, in the case of a Consumer subject to Consolidated ESP Billing, to the Applicable ESP, for
such Consumers’ Fixed Recovery Charges once every applicable Billing Period, at the same time, with the same frequency and on the same Bill as that containing the Servicer’s own charges to such Consumers or ESPs, as the case may be. In the
event that the Servicer makes any material modification to its Servicer Policies and Practices for its own charges, it shall notify the Issuer, the Indenture Trustee, the CPUC and the Rating Agencies as soon as practicable, and in no event later
than 60 Business Days after such modification goes into effect; provided, however, that the Servicer may not make any modification that will materially adversely affect the Bondholders. 

  
 Annex I-2 

 (b) Format. The Servicer shall conform to such requirements regarding the format,
structure and text of Bills delivered to Consumers and ESPs as this Agreement, the Financing Order, the Securitization Law and applicable CPUC Regulations shall from time to time prescribe. To the extent that Bill format, structure and text are not
prescribed by the this Agreement, the Financing Order, the Securitization Law or by applicable CPUC Regulations, the Servicer shall determine the format, structure and text of all Bills in accordance with its reasonable business judgment, its
Servicer Policies and Practices with respect to its own charges and prevailing industry standards. 
 (c) Delivery. The Servicer shall
deliver all Bills issued by it (i) by United States mail in such class or classes as are consistent with the Servicer Policies and Practices followed by the Servicer with respect to its own charges to its Consumers or (ii) by any other
means, whether electronic or otherwise, that the Servicer may from time to time use to present its own charges to its Consumers. In the case of Consumers that are subject to Consolidated ESP Billing, the Servicer shall deliver all Bills or charges
to the Applicable ESPs by such means as are mutually agreed upon by the Servicer and the Applicable ESP and are consistent with CPUC Regulations. The Servicer or an ESP, as applicable, shall pay from its own funds all costs of issuance and delivery
of all Bills, including but not limited to printing and postage costs as the same may increase or decrease from time to time. 
 SECTION
5. CUSTOMER SERVICE FUNCTIONS. 
 The Servicer shall handle all Consumer inquiries and other Consumer service matters according to
the same procedures it uses to service Consumers with respect to its own charges. 
 SECTION 6. COLLECTIONS; PAYMENT PROCESSING;
REMITTANCE. 
 (a) Collection Efforts, Policies, Procedures. 

(i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and
shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: 
  

	 	(A)	 The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC
Regulations and Servicer Policies and Practices. 

  

	 	(B)	 The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with
applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement,
and the Issuer shall have no right to share in the same. 

  

	 	(C)	 The Servicer shall deliver oral and written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. 

  
 Annex I-3 

	 	(D)	 The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing
in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision 97-10-087, as it may be amended or modified from time to time, and applicable CPUC
Regulations and Servicer Policies and Practices. 

  

	 	(E)	 The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and
Servicer Policies and Practices. 

  

	 	(F)	 In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal
and written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. 

  

	 	(G)	 The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance
with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. 

  

	 	(H)	 The Servicer may employ the assistance of collection agents to collect any
past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. 

 

	 	(I)	 The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the
Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I. 

(ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any,
and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with
respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable
law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. 

(iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it
accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC
Regulations. 

  
 Annex I-4 

 (b) Payment Processing; Allocation; Priority of Payments. 

(i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all
payments shall be posted no later than three (3) Business Days after receipt. 
 (ii) Subject to clause (iii)
below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. 

(iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as
follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late
fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty
payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. 
 (iv)
The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due. 

(c) Accounts; Records. 

The Servicer shall maintain accounts and records as to the Recovery Property accurately and in accordance with its standard accounting
procedures and in sufficient detail (i) to permit reconciliation between payments or recoveries with respect to the Recovery Property and the amounts from time to time remitted to the Collection Account in respect of the Recovery Property and
(ii) to permit the FRC Collections held by the Servicer to be accounted for separately from the funds with which they may be commingled, so that the dollar amounts of FRC Collections commingled with the Servicer’s funds may be properly
identified and traced. 
 (d) Investment of Fixed Recovery Charge Payments Received. 

Prior to each Daily Remittance, the Servicer may invest Fixed Recovery Charge Payments received at its own risk and (except as required by
applicable CPUC Regulations) for its own benefit. So long as the Servicer complies with its obligations under Section 6(c) neither such investments nor such funds shall be required to be segregated from the other investment and funds of the
Servicer. 
 (e) Calculation of Daily Remittance. 

(i) For purposes of calculating the Daily Remittance, the Servicer shall, on each Servicer Business Day, estimate FRC Collections based on the
daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs, which resulting estimate shall constitute the amount of Estimated FRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c)
of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of
Actual FRC Collections for the 

  
 Annex I-5 

 
immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes of such
calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation
Certificate in substantially the form appended to the Agreement as Exhibit H. 
 (ii) The Servicer and the Issuer acknowledge that, as
contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of
calculating the Fixed Recovery Charge Payments estimated to have been received by the Servicer during each Reconciliation Period as set forth in this Annex I. Should these changes to the computerized customer information system become
functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections to have been received in light of the capabilities of such new system and shall
amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the
Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the
Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days
after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. 

(iii) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in
procedures used to calculate the Estimated FRC Collections pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (ii) above, in a manner reasonably
intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures. 

(f) Remittances. 
 (i)
The Issuer shall cause to be established the Collection Account in the name of the Indenture Trustee in accordance with the Indenture. 

(ii) The Servicer shall make remittances to the Collection Account in accordance with Section 6.11 of the Agreement.

 (iii) In the event of any change of account or change of institution affecting any Collection Account, the Issuer shall provide written
notice thereof to the Servicer and the Rating Agencies not later than five (5) Business Days from the effective date of such change. 
  

  
 Annex I-6 

 SCHEDULE 4.01(a) 

EXPECTED AMORTIZATION SCHEDULE 
  

													
	 Semi-Annual Payment Date
	  	Tranche A-1
Balance	 	    	Tranche A-2
Balance	 	    	Tranche A-3
Balance	 
	 Closing Date
	  	$	100,000,000	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2022
	  	$	95,905,806	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2023
	  	$	87,870,009	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2023
	  	$	79,754,778	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2024
	  	$	71,559,327	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2024
	  	$	63,282,865	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2025
	  	$	54,924,589	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2025
	  	$	46,483,693	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2026
	  	$	37,959,358	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2026
	  	$	29,350,759	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2027
	  	$	20,657,065	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2027
	  	$	11,877,434	 	    	$	305,000,000	 	    	$	128,265,000	 
	   5/15/2028
	  	$	3,011,016	 	    	$	305,000,000	 	    	$	128,265,000	 
	 11/15/2028
	  	$	0	 	    	$	299,056,954	 	    	$	128,265,000	 
	   5/15/2029
	  	$	0	 	    	$	289,985,675	 	    	$	128,265,000	 
	 11/15/2029
	  	$	0	 	    	$	280,780,913	 	    	$	128,265,000	 
	   5/15/2030
	  	$	0	 	    	$	271,440,703	 	    	$	128,265,000	 
	 11/15/2030
	  	$	0	 	    	$	261,963,051	 	    	$	128,265,000	 
	   5/15/2031
	  	$	0	 	    	$	252,345,936	 	    	$	128,265,000	 
	 11/15/2031
	  	$	0	 	    	$	242,587,305	 	    	$	128,265,000	 
	   5/15/2032
	  	$	0	 	    	$	232,685,076	 	    	$	128,265,000	 
	 11/15/2032
	  	$	0	 	    	$	222,637,136	 	    	$	128,265,000	 
	   5/15/2033
	  	$	0	 	    	$	212,441,340	 	    	$	128,265,000	 
	 11/15/2033
	  	$	0	 	    	$	202,095,513	 	    	$	128,265,000	 
	   5/15/2034
	  	$	0	 	    	$	191,597,447	 	    	$	128,265,000	 
	 11/15/2034
	  	$	0	 	    	$	180,944,902	 	    	$	128,265,000	 
	   5/15/2035
	  	$	0	 	    	$	170,135,605	 	    	$	128,265,000	 
	 11/15/2035
	  	$	0	 	    	$	159,167,249	 	    	$	128,265,000	 
	   5/15/2036
	  	$	0	 	    	$	148,037,493	 	    	$	128,265,000	 
	 11/15/2036
	  	$	0	 	    	$	136,743,964	 	    	$	128,265,000	 
	   5/15/2037
	  	$	0	 	    	$	125,284,250	 	    	$	128,265,000	 
	 11/15/2037
	  	$	0	 	    	$	113,655,906	 	    	$	128,265,000	 
	   5/15/2038
	  	$	0	 	    	$	101,856,451	 	    	$	128,265,000	 
	 11/15/2038
	  	$	0	 	    	$	89,883,368	 	    	$	128,265,000	 
	   5/15/2039
	  	$	0	 	    	$	77,734,100	 	    	$	128,265,000	 
	 11/15/2039
	  	$	0	 	    	$	65,406,056	 	    	$	128,265,000	 
	   5/15/2040
	  	$	0	 	    	$	52,896,605	 	    	$	128,265,000	 
	 11/15/2040
	  	$	0	 	    	$	40,203,077	 	    	$	128,265,000	 
	   5/15/2041
	  	$	0	 	    	$	27,322,764	 	    	$	128,265,000	 
	 11/15/2041
	  	$	0	 	    	$	14,252,917	 	    	$	128,265,000	 
	   5/15/2042
	  	$	0	 	    	$	990,747	 	    	$	128,265,000	 
	 11/15/2042
	  	$	0	 	    	$	0	 	    	$	115,798,425	 
	   5/15/2043
	  	$	0	 	    	$	0	 	    	$	102,124,565	 
	 11/15/2043
	  	$	0	 	    	$	0	 	    	$	88,229,188	 
	   5/15/2044
	  	$	0	 	    	$	0	 	    	$	74,108,707	 
	 11/15/2044
	  	$	0	 	    	$	0	 	    	$	59,759,473	 
	   5/15/2045
	  	$	0	 	    	$	0	 	    	$	45,177,782	 
	 11/15/2045
	  	$	0	 	    	$	0	 	    	$	30,359,868	 
	   5/15/2046
	  	$	0	 	    	$	0	 	    	$	15,301,904	 
	 11/15/2046
	  	$	0	 	    	$	0	 	    	$	0	 

  
 Schedule 4.01(a)-1 

 EXHIBIT A 

MONTHLY SERVICER’S CERTIFICATE 

See Attached. 

  
 Exhibit A-1 

 Remittance Dates 

MONTHLY SERVICER’S CERTIFICATE 

Dated as of                 , 20

Reference is hereby made to the Recovery Property Servicing Agreement, dated as of February 15, 2022 (the “Servicing
Agreement”) between Southern California Edison Company, a California corporation, as Servicer (the “Servicer”), and SCE Recovery Funding LLC, a Delaware limited liability company, as Issuer (the “Issuer”).
Capitalized terms used but not defined herein shall have the respective meanings specified in the Servicing Agreement. 
 Pursuant to
Section 3.01(b) of the Servicing Agreement the Servicer does hereby certify as follows: 
 Collection Period: 

Remittance Dates: 
  

									
	Total	  	a. FRCs in Effect	  	b. FRCs Billed1	  	c. Estimated FRC Collections Deemed Received2	  	d. Estimated FRC Collections Remitted3

 [Signature Page Follows] 

 

	1 	 Fixed Recovery Charges billed during Collection Period. 

	2 	 Estimated Fixed Recovery Charges deemed collected during Collection Period (i.e., Fixed Recovery Charges
collected based upon Weighted Average Days Sales Outstanding and write-offs. 

	3 	 Estimated Fixed Recovery Charges remitted during Collection Period (i.e., Estimated Fixed Recovery Chagres
remitted within two Servicer Business Days of deemed collection date). 

  
 Exhibit A-2 

 IN WITNESS HEREOF, the undersigned has duly executed and delivered this Monthly
Servicer’s Certificate as of the date first above written. 
  

					
	SERVICER:
	
	SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation
		
	By:	 	  

		 	Name:	 	  

		 	Title:	 	Treasurer

 Signature Page to Monthly Servicer’s Certificate 

 EXHIBIT B 

FORM OF SEMI-ANNUAL SERVICER’S CERTIFICATE 

See Attached. 

  
 EXHIBIT B-1 

 SEMI-ANNUAL SERVICER’S CERTIFICATE 

Dated as of                 , 20    

 Pursuant to Section 4.01(c)(ii) of the Recovery Property Servicing Agreement, dated as of February 15, 2022
(the “Servicing Agreement”), between, SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation, as Servicer and SCE RECOVERY FUNDING LLC, as Issuer, the Servicer does hereby certify, for the
                , 20 Payment Date (the “Current Payment Date”), as follows: 

Capitalized terms used herein have their respective meanings as set forth in the Indenture. References herein to certain sections and
subsections are references to the respective sections of the Servicing Agreement or the Indenture, as the context indicates. 
  

							
	 Collection_____ to _____

Periods:

	
	 Payment Date:______________

		
	1.	  	 Collections Allocable and Aggregate Amounts Available for the Current Payment
Date:

  

							
		  	Fixed Recovery Charge Remittances	  	
		  	a.	  	Estimated Fixed Recovery Charges Remitted for __________Collection Period1	  	$________
		  	b.	  	Estimated Fixed Recovery Charges Remitted for __________ Collection Period	  	$________
		  	c.	  	Estimated Fixed Recovery Charges Remitted for __________ Collection Period	  	$________
		  	d.	  	Estimated Fixed Recovery Charges Remitted for __________ Collection Period	  	$________
		  	e.	  	Estimated Fixed Recovery Charges Remitted for __________ Collection Period	  	$________
		  	f.	  	Estimated Fixed Recovery Charges Remitted for __________ Collection Period2	  	$________
	i.	  	Total Estimated Fixed Recovery Charge Remittances	  	$________
	ii	  	Investment Earnings on Collection Account	  	
		  		  	iii. Investment Earnings on Capital Subaccount	  	$________
		  		  	iv. Investment Earnings on Excess Funds Subaccount	  	$________
		  		  	v. Investment Earnings on General Subaccount	  	$________
	vi.	  	General Subaccount Balance (sum of i through v above)	  	$________
	vii.	  	Excess Funds Subaccount Balance as of Prior Payment Date	  	$________
	viii.	  	Capital Subaccount Balance as of Prior Payment Date	  	$________
	ix.	  	Collection Account Balance (sum of vi through viii above)	  	$________
			
	2.	  	Outstanding Amounts as of Prior Payment Date:	  	
	i.	  	Tranche A-1 Outstanding Amount	  	$________
	ii.	  	Tranche A-2 Outstanding Amount	  	$________

  
  

 

	1 	 Includes amounts calculated for the Reconciliation Period for the prior Collection Period, which was settled in
[month-date]. Based upon Estimated Fixed Recovery Charges remitted during Collection Period (i.e., Estimated Fixed Recovery Charges remitted within two Servicer Business Days of deemed collection date). 

	2 	 Does not include reconciliation amounts calculated for the Reconciliation Period for such Collection Period,
which will be settled in the month following such Collection Period 

  
 EXHIBIT B-2 

							
	 iii.
	  	Tranche A-3 Outstanding Amount	  			
	 iv.
	  	 Aggregate Outstanding Amount of all Tranches of Recovery Bonds:
	  	$	________	 
	 3.
	  	 Required Funding/Payments as of Current Payment Date:
	  	$	________	 
		
		  	 
	Principal
Due	 
 
	 i.
	  	Tranche A-1	  	$	________	 
	 ii.
	  	Tranche A-2	  	$	________	 
	 iii.
	  	Tranche A-3	  			
			
	 iv.
	  	 For all Tranches of Recovery Bonds:
	  	$	________	 

  

									
	 Interest
 Tranche
	  	 Interest
Rate
	  	 Days in Interest
Period1
	  	 Principal
Balance
	  	 Interest Due

	 v.
	  	Tranche A-1	  		  		  	$__________
	 vi.
	  	Tranche A-2	  		  		  	$__________
	 vii.
	  	Tranche A-3	  		  		  	$__________
	 viii.
	  	For all Tranches of Recovery Bonds:	  	$__________
					
	 	  	 	  	 	  	 Required Level
	  	 Funding
Required

	  
 ix. Capital
Subaccount
	  		  	

					
	 4.
	  	Allocation of Remittances as of Current Payment Date Pursuant to 8.02(e) of Indenture
			
	 i.
	  	Indenture Trustee Fees and Expenses; Indemnity Amounts2	  	$___________
	 ii.
	  	Servicing Fee	  	$___________
	 iii.
	  	Administration Fee	  	$___________
	 iv.
	  	Other Ongoing Financing Costs	  	$___________
	 v.
	  	Semi-Annual Interest (including any past-due for prior periods)	  	$___________
	 vi.
	  	Return on SCE Capital Contribution and any remittance of unpaid upfront financing costs	  	

  

									
	 	  	 Tranche
	  	 Aggregate
	  	 Per $1000 of Original

Principal Amount
	  	 

                    

	1.	  	Tranche A-1 Interest Payment	  	$___________	  	$________________	  	
	2.	  	Tranche A-2 Interest Payment	  	$___________	  	$________________	  	
	3.	  	Tranche A-3 Interest Payment	  	$___________	  	$________________	  	
	 1. On 30/360 day basis for
initial payment date; otherwise use one-half of annual rate.
 2. Subject to $200,000 cap per annum
	  	

  

							
	 vii.
	  	 Principal Due and Payable as a Result of an Event of Default or on Final Maturity Date
	  	$	_______	 

  
 EXHIBIT B-3 

							
	 Tranche
	  	 	  	 Aggregate
	  	 Per $1000 of Original

Principal Amount

	 1.
	  	Tranche A-1 Principal Payment	  	$___________	  	$________________
	 2.
	  	Tranche A-2 Principal Payment	  	$___________	  	$________________
	 3.
	  	Tranche A-3 Principal Payment	  	$___________	  	$________________
	 viii.
	  	 Semi-Annual Principal
	  	$_______
	 ix.
	  	 Deposit to Excess Funds Subaccount
	  	$_______
	 x
	  	 Released to Issuer upon Retirement of all Notes
	  	$_______
	 xi.
	  	 Aggregate Remittances as of Current Payment Date
	  	$_______

  

			
	 5.
	  	 Subaccount Withdrawals as of Current Payment (if applicable, pursuant to Section 8.02(e)
of Indenture:

  

							
	 i.
	  	 Excess Funds Subaccount
	  	$	________	 
	 ii.
	  	 Capital Subaccount
	  	$	________	 
	 iii.
	  	 Total Withdrawals
	  	$	________	 

  

			
	 6.
	  	Outstanding Amount and Collection Account Balance as of Current Payment Date (after giving effect to payments to be made on such Payment Date):

  

							
	 i.
	  	Tranche A-1	  	$	________	 
	 ii.
	  	Tranche A-2	  	$	________	 
	 ii.
	  	Tranche A-3	  	$	________	 
	 iv.
	  	 Aggregate Outstanding Amount of all Tranches of Recovery Bonds:
	  	$	________	 
	 v.
	  	 Excess Funds Subaccount Balance
	  			
	 vi.
	  	 Capital Subaccount Balance
	  	$	________	 
	 vii.
	  	 Aggregate Collection Account Balance
	  	$	________	 

  

			
	 7.
	  	 Shortfalls in Interest and Principal Payments as of Current Payment Date

  

					
	 i.
	  	 Semi-annual Interest
	  	
	 	  	Tranche A-1 Interest Payment	  	$________
	 	  	Tranche A-2 Interest Payment	  	$________
	 	  	Tranche A-3 Interest Payment	  	$________
	 ii.
	  	 Semi-annual Principal
	  	
	 	  	Tranche A-1 Principal Payment	  	$________
	 	  	Tranche A-2 Principal Payment	  	$________
	 	  	Tranche A-3 Principal Payment	  	$________

  

			
	 8.
	  	 Shortfalls in Required Subaccount Levels as of Current Payment Date

  

			
	 iii.
	  	 Capital Subaccount

  

  
 EXHIBIT B-4 

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Semi-Annual
Servicer’s Certificate as of the date first above written. 
  

			
	 SERVICER:

	
	SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation
		
	 By:
	 	  

		 	 Name:

		 	 Title:

 Signature Page to Semi-Annual Servicer’s Certificate 

 

 EXHIBIT C 

SERVICER’S REGULATION AB CERTIFICATE 

The undersigned hereby certifies that he/she is the duly elected and acting [__________] of SOUTHERN CALIFORNIA EDISON
COMPANY, a California corporation, as servicer (the “Servicer”) under the Recovery Property Servicing Agreement dated as of February 15, 2022 (the “Servicing Agreement”) between the Servicer and SCE Recovery
Funding LLC (the “Issuer”) and further that: 
 1. The undersigned (a) is responsible under Item 1122(a) of Regulation
AB for assessing the Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”) and (b) a review of the Servicer’s activities during the Assessment Period
(defined below) and its performance under the Servicing Agreement has been made under the supervision of the undersigned in accordance with Item 1123 of Regulation AB. 

2. With respect to each of the Servicing Criteria, the undersigned has made the following assessment of the Servicing Criteria in accordance
with Item 1122(d) of Regulation AB, with such discussion regarding the performance of such Servicing Criteria during the fiscal year covered by the Depositor’s annual report on Form 10-K Report (such
fiscal year, the “Assessment Period”): 
  

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
	 	  	General Servicing Considerations	  	 
			
	1122(d)(1)(i)	  	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	  	Applicable; assessment below.
			
	1122(d)(1)(ii)	  	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	  	Not applicable; no servicing activities were outsourced.
			
	1122(d)(1)(iii)	  	Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.	  	Not applicable; documents do not provide for a back-up servicer.

  
 EXHIBIT C-1 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
	1122(d)(1)(iv)	  	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of
the transaction agreements.	  	Not applicable; CPUC rules impose credit standards on retail electric providers who handle customer collections and govern performance requirements of utilities.
			
	1122(d)(1)(v)	  	Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.	  	Applicable
			
		  	Cash Collection and Administration	  	
			
	1122(d)(2)(i)	  	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days of receipt, or such other number of days specified in the transaction
agreements.	  	Applicable
			
	1122(d)(2)(ii)	  	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	  	Applicable
			
	1122(d)(2)(iii)	  	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	  	Not applicable; no advances by the Servicer are permitted under the transaction agreements.
			
	1122(d)(2)(iv)	  	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the
transaction agreements.	  	Applicable, but no current assessment is required since transaction accounts are maintained by and in the name of the Indenture Trustee.

  
 EXHIBIT C-2 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
			
	1122(d)(2)(v)	  	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a
foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	  	Applicable, but no current assessment required; all “custodial accounts” are maintained by the Indenture Trustee.
			
	1122(d)(2)(vi)	  	Unissued checks are safeguarded so as to prevent unauthorized access.	  	Not applicable; all transfers made by wire transfer.
			
	1122(d)(2)(vii)	  	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations (A) are mathematically accurate;
(B) are prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) are reviewed and approved by someone other than the person who prepared the
reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	  	Applicable; assessment below.

  
 EXHIBIT C-3 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
			
		  	Investor Remittances and Reporting	  	
			
	1122(d)(3)(i)	  	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in
accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by
its rules and regulations; and (D) agree with investors’ or the Indenture Trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.	  	Applicable; assessment below.
			
	1122(d)(3)(ii)	  	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	  	Not applicable; investor records maintained by Indenture Trustee.
			
	1122(d)(3)(iii)	  	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	  	Applicable
			
	1122(d)(3)(iv)	  	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	  	Applicable; assessment below.
			
		  	Pool Asset Administration	  	
			
	1122(d)(4)(i)	  	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	  	Applicable; assessment below.
			
	1122(d)(4)(ii)	  	Pool assets and related documents are safeguarded as required by the transaction agreements.	  	Applicable; assessment below.
			
	1122(d)(4)(iii)	  	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	  	Not applicable; no removals or substitutions of recovery property are contemplated or allowed under the transaction documents.

  
 EXHIBIT C-4 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
			
	1122(d)(4)(iv)	  	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number
of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.	  	Applicable; assessment below.
			
	1122(d)(4)(v)	  	The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	  	Not applicable; because underlying obligation (fixed recovery charge) is not an interest bearing instrument.
			
	1122(d)(4)(vi)	  	Changes with respect to the terms or status of an obligor’s pool asset (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with
the transaction agreements and related pool asset documents.	  	Applicable; assessment below
			
	1122(d)(4)(vii)	  	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or
other requirements established by the transaction agreements.	  	Applicable; limited assessment below. Servicer actions governed by CPUC regulations.
			
	1122(d)(4)(viii)	  	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period
specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g.,
illness or unemployment).	  	Applicable, but does not require assessment since no explicit documentation requirement with respect to delinquent accounts are imposed under the transactional documents due to availability of
“true-up” mechanism.

  
 EXHIBIT C-5 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
	1122(d)(4)(ix)	  	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	  	Not applicable; fixed recovery charges are not interest bearing instruments.
			
	1122(d)(4)(x)	  	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the
transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full
repayment of the related pool asset, or such other number of days specified in the transaction agreements.	  	Applicable; Servicer maintains ESP deposit accounts in accordance with CPUC rules and regulations.
			
	1122(d)(4)(xi)	  	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support
has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	  	Not applicable; Servicer does not make payments on behalf of obligors.
			
	1122(d)(4)(xii)	  	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or
omission.	  	Not applicable; Servicer cannot make advances of its own funds on behalf of customers under the transaction documents.

  
 EXHIBIT C-6 

					
	 	  	 Servicing Criteria
	  	 Applicable

Servicing Criteria

	 Reference
	  	 Criteria
	  	 
	1122(d)(4)(xiii)	  	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	  	Not applicable; Servicer cannot make advances of its own funds on behalf of customers to pay principal or interest on the bonds.
			
	1122(d)(4)(xiv)	  	Delinquencies, charge-offs and uncollectable accounts are recognized and recorded in accordance with the transaction agreements.	  	Applicable; assessment below.
			
	1122(d)(4)(xv)	  	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	  	Not applicable; no external enhancement is required under the transaction documents.

 3. To the best of the undersigned’s knowledge, based on such review, the Servicer is in compliance in all
material respects with the applicable Servicing Criteria set forth above as of and for the period ending the end of the fiscal year covered by the Depositor’s annual report on Form 10-K[, except with
respect to the matters identified in the list of Servicer Defaults contained in Annex A attached hereto (if any) and as otherwise set forth below:].6 

4. A registered public accounting firm has issued an attestation report on the undersigned’s assessment of compliance with the applicable
Servicing Criteria set forth above as of and for the period ending the end of the fiscal year covered by the Depositor’s annual report on Form 10-K. 

[Signature Page Follows] 

 

	6 	 If the Servicer is not in compliance in all material respects with the Servicing Criteria, include description
of any material instance of noncompliance. 

  
 EXHIBIT C-7 

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this
Servicer’s Regulation AB Certificate as of the date first above written. 
  

			
	SERVICER:
	
	SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation
		
	By:	 	  

		 	Name:                                     
                                         
    
		 	Title:                                     
                                         
      

  

 ANNEX A 

LIST OF SERVICER DEFAULTS 

The following Servicer Defaults, or events which with the giving of notice, the lapse of time, or both, would become Servicer Defaults known
to the undersigned occurred during the year ended [__________]: 
  

			
	 Nature of Default
	  	 Status

  
 Annex A-1 

 EXHIBIT D 

FORM OF ROUTINE [ANNUAL][INTERIM][MANDATORY INTERIM] TRUE-UP MECHANISM ADVICE LETTER 

[date] 
 Application
________-E 
 (Southern California Edison Company ID U338E) 

Public Utilities Commission of the State of California 
  

	Subject:	 Routine [Annual] [Interim] Advice Filing for Fixed Recovery Charges
True-up Mechanism 

 Pursuant to California Public Utilities Commission (CPUC) Decision (D.) 21-10-025 (Decision), Southern California Edison Company (SCE), as servicer of the Senior Secured Recovery Bonds, Series 2022-A (Recovery Bonds) and on behalf of the Special
Purpose Entity, hereby applies for adjustment to the Fixed Recovery Charge for Series 2022-A, Tranche(s) A-1, A-2 and A-3 of the Recovery Bonds. 

Purpose: 
 This filing establishes revised Fixed
Recovery Charges for rate schedules for Consumers, as set forth in D. 21-10-025. 

Background: 
 In D.
21-10-025, the CPUC granted SCE authority to issue Recovery Bonds to finance certain costs and expenses related to catastrophic wildfires, including fire risk mitigation
capital expenditures identified in subdivision (e) of Section 8386.3 of the Public Utilities Code, and associated financing costs. 
 Recovery
Bonds are securities that are backed by the cash flows generated by a specific asset that has been be sold by SCE to a Special Purpose Entity that issued the Recovery Bonds secured by this asset. The asset sold is Recovery Property, a current
property right that was created by Article 5.8 as the right, title and interest in and to all (i) Fixed Recovery Charges established pursuant to the Financing Order, including all rights to obtain adjustments, and (ii) revenues,
collections, claims, payments, monies, or proceeds of or arising from the Fixed Recovery Charges that will cover debt service and all Ongoing Financing Cost, including any draws on the capital subaccount, as authorized in D. 21-10-025. 
 In D. 21-10-025, the CPUC authorized SCE to submit Routine True-up Mechanism Advice Letters at least annually, before each January 1 and more frequently as permitted in
the Financing Order and deemed necessary by the servicer. These filings are intended to ensure that the actual revenues collected under the Fixed Recovery Charges will be sufficient to make all scheduled payments of

  
 D-1 

 
Recovery Bond principal and interest as well as to pay all other Ongoing Financing Costs on a timely basis during each of the two payment periods following the date of adjustment. The first
payment period means the period commencing on an adjustment date and ending (and including) the first Payment Date following the adjustment (the “First Payment Period”); the second payment period means the period commencing on the day
following the first Payment Date and ending (and including) the next Payment Date (the “Second Payment Period”). Routine True-up Mechanism Advice Letter filings are those where SCE uses the cost
allocation and rate design methodology and Fixed Recovery Charge and cash flow method (collectively, the “adjustment mechanism”) found reasonable by the CPUC in D.
21-10-025 to revise existing Fixed Recovery Charges. 
 Using the adjustment
mechanism approved by the CPUC in D. 21-10-025, this filing modifies the variables used in the Fixed Recovery Charge calculations and provides the resulting modified
Fixed Recovery Charges. 
 Table 1 shows estimated Ongoing Financing Costs for the next two payment periods to be recovered through Fixed Recovery Charges
in accordance with the Financing Order. 
  

									
	TABLE 1: Estimated Ongoing Financing Costs	  

	 	  	First Payment
Period	 	  	Second
Payment Period	 
	 Servicing Fee (SCE as Servicer) ($266,633 per annum)
	  	$	     	 	  	$	     	 
	 Administration Fee
	  				  			
	 Accounting Fees and Expenses
	  				  			
	 Legal Fees and Expenses
	  				  			
	 Rating Agency Surveillance Fees
	  				  			
	 Trustee Fees and Expenses
	  				  			
	 Independent Director Fees
	  				  			
	 Printing / EDGARizing Expenses
	  				  			
	 Return on Equity and any remittance of unpaid financing costs
	  				  			
	 Miscellaneous Fees and Expenses
	  				  			
	 Deposit to the Capital Subaccount (if any)
	  				  			
	 TOTAL ONGOING FINANCING COSTS (with SCE as Servicer)
	  	$	 	 	  	$	 	 
	 Ongoing Servicers Fee (Third Party as Servicer)
	  				  			
	 TOTAL ONGOING FINANCING COSTS (Third Party as Servicer)
	  	$	 	 	  	$	 	 

 Table 2 shows assumptions for each of the variables used in calculating the Fixed Recovery Charges. 

  
 D-2 

									
	TABLE 2: Input Values For Fixed Recovery Charges	  

	 	  	Period 1	 	  	Period 2	 
	 Allocation Factors for each FRC Consumer Class (see Exhibit 3)
	  				  			
	 Projected MWh sales for each FRC Consumer Class for payment period (See Exhibit 3)
	  				  			
	 Percent of Consumers’ revenue written off
	  				  			
	 Average Days Sales Outstanding
	  				  			
	 Ongoing Financing Costs for the applicable payment period (See Table 1 above)
	  				  			
	 Balance of Collection Account (Net of Capital Subaccount)(As of / , which is the Calculation Cut-off Date)
	  				  	 	N/A	 
	 Recovery Bond Principal
	  				  			
	 Recovery Bond Interest
	  				  			
	 Periodic Payment Requirement (See Exhibit 2)
	  				  			
	 Periodic Billing Requirement (See Exhibit 3)
	  				  			

 Table 3 shows the revised Fixed Recovery Charges to be effective for Consumers. The Fixed Recovery Charge calculations are
shown in Exhibit 3. 
  

					
	TABLE 3: Fixed Recovery Charges
	 Rate Group
	  	 Fixed Recovery Charges
	  	¢/kWh
	 Residential Domestic
	  	Non-CARE	  	
	 Residential Domestic
	  	FERA	  	
	 Res/Dom Income Qualified
	  	CARE	  	
	 Small C&I (<20kW)
	  	GS-1	  	
	 Traffic Control
	  	TC-1	  	
	 Medium C&I (20 kW – 200 kW)
	  	GS-2	  	
	 Medium C&I (200 kW – 500 kW)
	  	GS-3	  	
	 Large C&I (Sec) includes standby customers
	  	Tou-8-Sec	  	
	 Large C&I (Pri) includes standby customers
	  	Tou-8-Pri	  	
	 Large C&I (Sub) includes standby customers
	  	Tou-8-Sub	  	
	 Small AG& Pump (< 200 kw)
	  	AG&P < 200 KW	  	
	 Large Ag& Pump (≥ 200 kw)
	  	AG&P >= 200 KW	  	
	 Street/Area Lighting
	  	Street Light System	  	

 Proposed Tariff Changes: 

[If Fixed Recovery Charge rate change is being implemented as a standalone rate change]: Attachment A provides all applicable tariff sheets reflecting the
revised Fixed Recovery Charges shown in Table 3. 
 [If Fixed Recovery Charge rate change is being consolidated with other rate changes]: SCE will
submit all tariff sheets reflecting the revised Fixed Recovery Charges shown in Table 3 in the consolidated revenue requirement and rate change advice letter for rates effective in [date]. 

  
 D-3 

 Effective Date7: 

[If annual Routine True-Up Mechanism Advice Letter] 

In accordance with D. 21-10-025, Routine
True-Up Mechanism Advice Letters for required annual Fixed Recovery Charge adjustments shall be submitted at least 50 days before [insert the FRC Annual Adjustment Date] and these adjustments to Fixed Recovery
Charges shall be effective on [insert the FRC Annual Adjustment Date]. No CPUC resolution is required. Therefore, these Fixed Recovery Charges shall be effective [insert the FRC Annual Adjustment Date] through until they are changed by the next
annual Routine True-Up Mechanism Advice Letters or, if earlier by a Routine Interim True-Up Mechanism or Other Factor Non-Routine
True-Up Mechanism adjustment. 
 [If Routine Interim True-Up Mechanism
Advice Letter]
 In accordance with D. 21-10-025, Routine Interim True-Up Mechanism Advice Letters for interim Fixed Recovery Charge adjustments shall be submitted at least 50 days before the proposed effective day of the adjustment, which shall be the first day of a
month. No CPUC resolution is required. Therefore, these Fixed Recovery Charges shall be effective until they are changed by the next annual Routine True-Up Mechanism Advice Letters or, if earlier by a
Routine Interim True-Up Mechanism or Other Factor Non-Routine True-Up Mechanism adjustment. 

Description of Exhibits: 
 Exhibit 1 to this advice
filing presents the revised principal amortization schedule for the Recovery Bonds. 
 Exhibit 2 presents the revised Periodic Payment Requirements related
to the Recovery Bonds for the two payment periods following the adjustment date. These Periodic Payment Requirements will be adjusted based upon the Cash Flow Model to determine the Periodic Billing Requirement, as shown in Exhibit 3. 

Exhibit 3 presents the revised Fixed Recovery Charge calculations. 

Notice: 
 In accordance with General Order 96-B Section 4.4, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list. Address changes should be directed to [_____] at [_____]. Advice letter
filings can also be accessed electronically at: https://www.sce.com/regulatory/advice-letters. 
 Attachments 

cc:     Service List for A. 21-06-016. 

 

	7 	 Mandatory Semi-Annual Routine True-Up Mechanism Advice Letters may be
submitted if included by SCE in the Issuance Advice Letter. 

  
 D-4 

 Exhibit 1 

Revised Principal Amortization 

  
 D-5 

 Exhibit 2 

Periodic Payment Requirements 

The total amount payable to the owner of the Recovery Property, or its assignee(s), pursuant to this advice letter is a $533,265,000 principal
amount, plus interest on such principal amount, plus Ongoing Financing Costs, to be obtained from Fixed Recovery Charges calculated in accordance with D. 21-10-025. 

The Fixed Recovery Charges shall be adjusted from time to time, at least annually, via the Routine
True-Up Mechanism Advice Letter and Other Factor Non-Routine True-Up Mechanism Advice Letter in accordance with D. 21-10-025 
 The following amounts are scheduled to be paid by the
Indenture Trustee from Fixed Recovery Charges it has received during the payment period. These payment amounts include principal plus interest and plus other Ongoing Financing Costs. 

 

													
	 Payment Period
	  	Recovery Bond
Payments	 	  	Ongoing Financing
Costs (See Table 1)	 	  	Periodic Payment
Requirement	 
	 First Payment Period
	  	$	 	 	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Second Payment Period
	  	$	 	 	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  
 D-6 

 Exhibit 3 

Fixed Recovery Charge Calculations 

  
 Exhibit D-1 

 EXHIBIT E 

FORM OF OTHER FACTOR NON-ROUTINE TRUE-UP MECHANISM ADVICE
LETTER 
 [date] 
 Application ________-E 
 (Southern California Edison Company ID U338E) 

Public Utilities Commission of the State of California 

Subject: Other Factor Non-Routine True-Up Mechanism Advice
Letter 
 Pursuant to California Public Utilities Commission (CPUC) Decision (D.)
21-10-025 (Decision), Southern California Edison Company (SCE), as servicer of the Senior Secured Recovery Bonds, Series 2022-A (Recovery Bonds) and on behalf of the
Special Purpose Entity, hereby applies for adjustment to the Fixed Recovery Charge for Series 2022-A, Tranche(s) A-1, A-2 and A-3 of the Recovery Bonds. 

Purpose 
 This filing establishes revised Fixed Recovery
Charges for rate schedules for Consumers, as set forth in D. 21-10-025. 

Background 
 In D. 21-10-025, the CPUC granted SCE authority to issue Recovery Bonds to finance certain costs and expenses related to catastrophic wildfires, including fire risk mitigation capital expenditures identified in
subdivision (e) of Section 8386.3 of the Public Utilities Code, and associated financing costs. 
 Recovery Bonds are securities that are backed
by the cash flows generated by a specific asset that will be sold by SCE to a Special Purpose Entity that issued the Recovery Bonds secured by this asset. The asset sold is Recovery Property, a current property right that was created by
Article 5.8 as the right, title and interest in and to all (i) Fixed Recovery Charges established pursuant to the Financing Order, including all rights to obtain adjustments, and (ii) revenues, collections, claims, payments, monies,
or proceeds of or arising from the Fixed Recovery Charges that will cover debt service and all related Recovery Bond costs. 
 In D. 21-10-025, the CPUC authorized SCE to submit Other Factor Non-Routine True-up Mechanism Advice
Letters to propose revisions to the logic, structure and components of the cash flow model adopted by the Financing Order. These filings are intended to ensure that the actual revenues collected under the Fixed Recovery Charges will be sufficient to
make all scheduled payments of Recovery Bond principal, interest, and other Ongoing Financing Costs on a timely basis during the current or next succeeding payment period, including the replenishment of any draws upon the capital subaccount. Other
Factor Non-Routine True-up Mechanism Advice Letter filings are those where SCE uses the method found reasonable by the CPUC in D. 21-10-025 to revise existing Fixed Recovery Charges. 

  
 E-1 

 Using the cash flow model attached to this Other Factor Non-Routine True-Up Mechanism Advice Letter as Exhibit 1, this filing modifies the logic, structure and/or variables used in the Fixed Recovery Charge calculations and provides the resulting modified Fixed Recovery Charges.

 Table 1 shows estimated Ongoing Financing Costs for the next two payment periods to be recovered through Fixed Recovery Charges in accordance with the
Financing Order. 
  

									
	 TABLE 1: Estimated Ongoing
Financing Costs
	 
	 	  	First Payment
Period	 	  	Second
Payment Period	 
	 Servicing Fee (SCE as Servicer) ($ per annum)
	  	$	 	 	  	$	 	 
	 Administration Fee
	  				  			
	 Accounting Fees and Expenses
	  				  			
	 Legal Fees and Expenses
	  				  			
	 Rating Agency Surveillance Fees
	  				  			
	 Trustee Fees and Expenses
	  				  			
	 Independent Director Fees
	  				  			
	 Printing / EDGARizing Expenses
	  				  			
	 Return on Equity
	  				  			
	 Miscellaneous Fees and Expenses
	  				  			
	 Deposit to the Capital Subaccount (if any)
	  				  			
	 TOTAL ONGOING FINANCING COSTS (with SCE as Servicer)
	  	$	 	 	  	$	 	 
	 Ongoing Servicers Fee (Third Party as Servicer)
	  				  			
	 TOTAL ONGOING FINANCING COSTS (Third Party as Servicer)
	  	$	 	 	  	$	 	 

 Table 2 shows assumptions for each of the variables used in calculating the Fixed Recovery Charges for the payment period.
Exhibit 1 shows the revised payment schedule shows the revised payment schedule. 

  
 E-2 

					
	 TABLE 2: Input Values For
Fixed Recovery Charges

	 	  	First
Payment
Period	  	Second
Payment
Period
	Allocation Factors for each FRC Consumer Class (see Exhibit 3)	  		  	
	Projected kWh sales for each FRC Consumer Class for payment period (See Exhibit 3)	  		  	
	Percent of Consumers’ revenue written off	  		  	
	Average Days Sales Outstanding	  		  	
	Ongoing Financing Costs for the applicable payment period (See Table 1 above)	  		  	
	Balance of Collection Account (Net of Capital Subaccount)(As of / , which is the Calculation Cut-off Date)	  		  	N/A
	Recovery Bond Principal	  		  	
	Recovery Bond Interest	  		  	
	Periodic Payment Requirement (See Exhibit 3)	  		  	
	Periodic Billing Requirement (See Exhibit 4)	  		  	

 Table 3 shows the revised Fixed Recovery Charges calculated for Consumers. The Fixed Recovery Charge calculations are shown in
Exhibit 3. 
  

									
	 TABLE 3: Fixed Recovery Charges for Period Ending
[________________]
	 
	 FRC Consumer Class
	  				  	¢	/kWh	 
	Residential Domestic	  	 	Non-CARE	 	  			
	Residential Domestic	  	 	FERA	 	  			
	Res/Dom Income Qualified	  	 	CARE	 	  			
	Small C&I (<20kW)	  	 	GS-1	 	  			
	Traffic Control	  	 	TC-1	 	  			
	Medium C&I (20 kW – 200 kW)	  	 	GS-2	 	  			
	Medium C&I (200 kW – 500 kW)	  	 	GS-3	 	  			
	Large C&I (Sec) includes standby customers	  	 	Tou-8-Sec	 	  			
	Large C&I (Pri) includes standby customers	  	 	Tou-8-Pri	 	  			
	Large C&I (Sub) includes standby customers	  	 	Tou-8-Sub	 	  			
	Small AG& Pump (< 200 kw)	  	 	AG&P < 200 KW	 	  			
	Large Ag& Pump (≥ 200 kw)	  	 	AG&P >= 200 KW	 	  			
	Street/Area Lighting	  	 	Street Light System	 	  			

 Proposed Tariff Changes: 

[If Fixed Recovery Charge rate change is being implemented as a standalone rate change]: Attachment A provides all applicable tariff sheets reflecting
the revised Fixed Recovery Charges shown in Table 3. 
 [If Fixed Recovery Charge rate change is being consolidated with other rate changes]: SCE will
submit all tariff sheets reflecting the revised Fixed Recovery Charges shown in Table 3 in the consolidated revenue requirement and rate change advice letter for rates effective in [date]. 

  
 E-3 

 Effective Date 

In accordance with D. 21-10-025, Other Factor
Non-Routine True-Up Mechanism Advice Letter for Fixed Recovery Charge adjustments shall be submitted at least 90 days prior to the effective date proposed therein. The
proposed effective date in this Other Factor Non-Routine True-Up Mechanism Advice Letter is [Effective Date]. Absent a CPUC resolution that adopts, modifies, or rejects
the proposed in this Other Factor Non-Routine True-Up Mechanism Advice Letter, it shall become effective on the [Effective Date], provided the public will have an
opportunity to review and protest an Other Factor Non-Routine True-Up Mechanism Advice Letter in accordance with CPUC procedures to the extent allowed by
Section 850.1(e) of the Public Utilities Code. 
 Description of Exhibits 

Exhibit 1 to this advice filing presents the new cash flow model for the Fixed Recovery Charges. 

Exhibit 2 to this advice filing presents the revised debt service schedule for the Recovery Bonds. 

Exhibit 3 to this advice filing presents the revised Periodic Payment Requirements and Fixed Recovery Charge Revenue Projections, based upon the new cash flow
model. 
 Exhibit 4 to this advice filing presents the revised Fixed Recovery Charge calculations. 

Notice 
 In accordance with General Order 96-B Section 4.4, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list. Address changes should be directed to [_____] at [_____]. Advice letter
filings can also be accessed electronically at: https://www.sce.com/regulatory/advice-letters 
 Attachments 

cc:     Service List for A. 21-06-016. 

  
 E-4 

 Exhibit 1 

New Cash Flow Model Description for the Fixed Recovery Charges 

  
 E-5 

 Exhibit 2 

Revised Principal Amortization 

  
 E-6 

 Exhibit 3 

Revised Periodic Payment Requirements and Fixed Recovery Charge Revenue Projections 

The total amount payable to the owner of the Recovery Property, or its assignee(s), pursuant to this issuance advice letter is a $533,265,000
principal amount, plus interest on such principal amount, plus Ongoing Financing Costs, to be obtained from Fixed Recovery Charges calculated in accordance with D.
21-10-025. 
 The Fixed Recovery Charges shall be adjusted
from time to time, at least annually, via the Routine True-Up Mechanism Advice Letter and Other Factor Non-Routine True-Up
Mechanism Advice Letter in accordance with D. 21-10-025 

[The following amounts are scheduled to be paid by the Indenture Trustee from Fixed Recovery Charges it has received during the payment
period. These payment amounts include principal plus interest and plus other Ongoing Financing Costs.] 
  

													
	 Payment Period
	  	Recovery Bond
Payments (See
Exhibit 1)	 	  	Ongoing Financing
Costs (See Table 1)	 	  	Periodic Payment
Requirement	 
	 First Payment Period
	  	$	 	 	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Second Payment Period
	  	$	 	 	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  
 E-7 

 Exhibit 4 

Fixed Recovery Charge Calculations 

  
 E-8 

 EXHIBIT F 

RECONCILIATION CERTIFICATE 

Dated as of [____], 20[__] 

Reference is hereby made to the Recovery Property Servicing Agreement, dated as of February 15, 2022 (the “Servicing
Agreement”) between Southern California Edison Company, a California corporation, as Servicer (the “Servicer”), and SCE Recovery Funding LLC, a Delaware limited liability company, as Issuer (the “Issuer”).
Capitalized terms used but not defined herein shall have the respective meanings specified in the Servicing Agreement. 
 Pursuant to
Section 4.01(c)(iv) of the Servicing Agreement the Servicer does hereby certify as follows: 
 Reconciliation Period:
[Applicable Period] 
  

							
	Total	  	 a. Estimated FRC Collections Received
 Total
($)
	  	b. Actual Fixed Recovery Charge Payments Received ($)	  	c. (Remittance Shortfall) or Excess Remittance for this Reconciliation Period ($)1

  

	
	d. Daily remittances previously made by the Servicer to the Collection Account in respect of this Reconciliation Period (a):
	
	e. If (a>b), (c) equals net amount due to the Servicer from the Collection Amount:
	
	f. If (b>a), (c) equals net amount due from the Servicer to the Collection Amount:

  

	
	 Inputs for Reconciliation Period

a. Average Days Sales Outstanding

b. Write-offs:

 [Signature Page Follows] 

 

	1 	 A Remittance Shortfall will be expressed as a negative number. Excess Remittance will be expressed as a
positive number 

  
 Exhibit F-1 

 IN WITNESS HEREOF, the undersigned has duly executed and delivered this
Reconciliation Certificate as of the date first above written. 
  

					
	SERVICER:
	
	 SOUTHERN CALIFORNIA EDISON COMPANY,

a California corporation

		
	By:	 	
                 

		 	Name:	 	              

		 	Title:	 	Treasurer

  

  
 Exhibit F-2EX-10.2

 Exhibit 10.2 

RECOVERY PROPERTY PURCHASE AND SALE AGREEMENT 

by and between 
 SCE
RECOVERY FUNDING LLC, 
 as Issuer 

and 
 SOUTHERN
CALIFORNIA EDISON COMPANY, 
 as Seller 

Dated as of February 15, 2022 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE I	  

	
	DEFINITIONS	  

			
	 SECTION 1.01
	 	Definitions	  	 	1	 
	 SECTION 1.02
	 	Other Definitional Provisions	  	 	2	 
	
	ARTICLE II	  

	
	CONVEYANCE OF RECOVERY PROPERTY	  

			
	 SECTION 2.01
	 	Conveyance of Recovery Property	  	 	2	 
	 SECTION 2.02
	 	Conditions to Sale of Recovery Property	  	 	3	 
	
	ARTICLE III	  

	
	REPRESENTATIONS AND WARRANTIES OF SELLER	  

			
	 SECTION 3.01
	 	Organization and Good Standing	  	 	4	 
	 SECTION 3.02
	 	Due Qualification	  	 	5	 
	 SECTION 3.03
	 	Power and Authority	  	 	5	 
	 SECTION 3.04
	 	Binding Obligation	  	 	5	 
	 SECTION 3.05
	 	No Violation	  	 	5	 
	 SECTION 3.06
	 	No Proceedings	  	 	5	 
	 SECTION 3.07
	 	Consents and Approvals	  	 	6	 
	 SECTION 3.08
	 	The Recovery Property	  	 	6	 
	 SECTION 3.09
	 	Change in Law	  	 	9	 
	 SECTION 3.10
	 	Limitations on Representations and Warranties	  	 	9	 
	
	ARTICLE IV	  

	
	COVENANTS OF THE SELLER	  

			
	 SECTION 4.01
	 	Existence	  	 	9	 
	 SECTION 4.02
	 	No Liens	  	 	9	 
	 SECTION 4.03
	 	Delivery of Collections; Sale of Certain Assets	  	 	10	 
	 SECTION 4.04
	 	Notice of Liens	  	 	10	 
	 SECTION 4.05
	 	Compliance with Law	  	 	10	 
	 SECTION 4.06
	 	Covenants Related to Recovery Bonds and Recovery Property	  	 	10	 
	 SECTION 4.07
	 	Protection of Title	  	 	12	 
	 SECTION 4.08
	 	Nonpetition Covenants	  	 	12	 

  
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	 SECTION 4.09
	 	Taxes	  	 	12	 
	 SECTION 4.10
	 	Notice of Breach to Rating Agencies, Etc.	  	 	12	 
	 SECTION 4.11
	 	Use of Proceeds	  	 	13	 
	 SECTION 4.12
	 	Further Assurances	  	 	13	 
	
	ARTICLE V	  

	
	THE SELLER	  

			
	 SECTION 5.01
	 	Liability of Seller; Indemnities	  	 	13	 
	 SECTION 5.02
	 	Merger, Conversion or Consolidation of, or Assumption of the Obligations of, Seller	  	 	14	 
	 SECTION 5.03
	 	Limitation on Liability of Seller and Others	  	 	14	 
	
	ARTICLE VI	  

	
	MISCELLANEOUS PROVISIONS	  

			
	 SECTION 6.01
	 	Amendment	  	 	14	 
	 SECTION 6.02
	 	Notices	  	 	15	 
	 SECTION 6.03
	 	Assignment	  	 	16	 
	 SECTION 6.04
	 	Limitations on Rights of Third Parties	  	 	16	 
	 SECTION 6.05
	 	Severability	  	 	16	 
	 SECTION 6.06
	 	Separate Counterparts	  	 	16	 
	 SECTION 6.07
	 	Headings	  	 	16	 
	 SECTION 6.08
	 	Governing Law	  	 	16	 
	 SECTION 6.09
	 	Assignment to Indenture Trustee	  	 	16	 
	 SECTION 6.10
	 	Limitation of Liability	  	 	16	 
	 SECTION 6.11
	 	Waivers	  	 	17	 

  
 - ii - 

 This RECOVERY PROPERTY PURCHASE AND SALE AGREEMENT, dated as of February 15,
2022 (this “Agreement”), is between SCE RECOVERY FUNDING LLC, a Delaware limited liability company (the “Issuer”), and SOUTHERN CALIFORNIA EDISON COMPANY, a California corporation (together with its successors in
interest to the extent permitted hereunder, the “Seller”). 
 RECITALS 

WHEREAS, the Issuer desires to purchase the Recovery Property created pursuant to the Wildfire Financing Law and the Financing Order
and as further described in the Issuance Advice Letter; 
 WHEREAS, the Seller is willing to sell its rights and interests in and to
the Recovery Property to the Issuer whereupon such rights and interests will become the Recovery Property; 
 WHEREAS, the Issuer, in
order to finance the purchase of the Recovery Property, will enter into that certain Indenture, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”) between the
Issuer and The Bank of New York Mellon Trust Company, N.A., a national banking association, in its capacity as Indenture Trustee (the “Indenture Trustee”) and in its separate capacity as a securities intermediary (the
“Securities Intermediary”), and issue the Recovery Bonds thereunder and under the Series Supplement (as defined in the Indenture); and 

WHEREAS, the Issuer, to secure its obligations under the Recovery Bonds and the Indenture, will pledge, among other things, all right,
title and interest of the Issuer in and to the Recovery Property and this Agreement to the Indenture Trustee for the benefit of the Secured Parties. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 

SECTION 1.01 Definitions. (a) Unless otherwise defined herein, capitalized terms used herein shall have
the meanings specified in the Indenture (including Appendix A attached thereto). 
 (b) Whenever used in this Agreement, the following words
and phrases shall have the following meanings: 
 “Financing Order” means the order of the CPUC, D. 21-10-025, issued on October 26, 2021, which became effective on October 21, 2021, as amended by Decision 21-12-020, dated December 7, 2021. 

  
 - 1 - 

 “Fixed Recovery Charges” means the Fixed Recovery Charges authorized to be
imposed and collected pursuant to the Financing Order and the Issuance Advice Letter. 
 “Issuance Advice Letter” means the
Issuance Advice Letter submitted with the CPUC pursuant to the Wildfire Financing Law and the Financing Order with respect to the Recovery Bonds. 

“Recovery Property” means the “recovery property” as defined in Section 850(a)(11) of the Wildfire Financing
Law that is authorized and created pursuant to the Financing Order, being all right, title and interest of SCE: (i) in and to Fixed Recovery Charges in the amounts authorized to be imposed and collected under the Financing Order and the
Issuance Advice Letter, including all rights to obtain adjustments to Fixed Recovery Charges in accordance with Wildfire Financing Law, the Financing Order, and the Issuance Advice Letter and (ii) all revenues, collections, claims, payments,
moneys, or proceeds of or arising from the Fixed Recovery Charges. 
 “Tariff” means the rate tariff submitted with the
CPUC as the Issuance Advice Letter delivered pursuant to the Financing Order to evidence the Fixed Recovery Charges, as amended. 

SECTION 1.02 Other Definitional Provisions. 

(a) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein. 
 (b) The words “hereof,” “herein,” “hereunder” and words of
similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section, Schedule and Exhibit references contained in this Agreement are references to Sections, Schedules
and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without limitation”. 

(c) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms. 

ARTICLE II 

CONVEYANCE OF RECOVERY PROPERTY 

SECTION 2.01 Conveyance of Recovery Property. (a) In consideration of the Issuer’s payment to the
Seller of $525,427,282, subject to the conditions specified in Section 2.02, the Seller does hereby irrevocably sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse except as otherwise set forth herein,
all right, title and interest of the Seller in and to the Recovery Property (such sale, transfer, assignment, set over and conveyance of the Recovery Property includes, to the fullest extent permitted by the Wildfire Financing Law, the assignment of
all revenues, collections, claims, rights, payments, money or proceeds of or arising from the Fixed Recovery Charges and the Tariff evidencing such charges. Such sale, transfer, assignment, set over and conveyance is hereby expressly stated to be a
sale and, pursuant to Section 850.4(a) of the Wildfire Financing Law, shall be treated as an absolute transfer of all of the Seller’s right, title and interest (as in a true sale), and not as a pledge or other financing, of the Recovery
Property. 

  
 - 2 - 

 
This is the statement referred to in Section 850.4(a) of the Wildfire Financing Law. If such sale, transfer, assignment, set over and conveyance is held not to be a true sale as contemplated
by Section 850.4(a) of the Wildfire Financing Law, then such sale, transfer, assignment, set over and conveyance shall be treated as the grant of a security interest in the Recovery Property and the Seller hereby grants to the Issuer a security
interest in the Recovery Property and the proceeds thereof to secure its obligations hereunder. 
 (b) Subject to
Section 2.02, the Issuer does hereby purchase the Recovery Property from the Seller for the consideration set forth in Section 2.01(a). 

SECTION 2.02 Conditions to Sale of Recovery Property. The obligation of the Issuer to purchase Recovery
Property on the Closing Date shall be subject to the satisfaction of each of the following conditions: 
 (a) on or prior to the Closing
Date, the Seller must duly execute and deliver this Agreement to the Issuer; 
 (b) on or prior to the Closing Date, the Seller shall have
received the Financing Order creating the Recovery Property; 
 (c) on or prior to the Closing Date, the Seller must have submitted the
Issuance Advice Letter with the CPUC, and such letter must be effective; 
 (d) as of the Closing Date, the Seller is not insolvent and will
not have been made insolvent by such sale and the Seller is not aware of any pending insolvency with respect to itself; 
 (e) as of the
Closing Date, the representations and warranties of the Seller set forth in this Agreement shall be true and correct with the same force and effect as if made on the Closing Date (except to the extent that they relate to an earlier date); on and as
of the Closing Date no breach of any covenant or agreement of the Seller contained in this Agreement has occurred and is continuing; and no Servicer Default shall have occurred and be continuing; 

(f) as of the Closing Date, (i) the Issuer shall have sufficient funds available to pay the purchase price for the Recovery Property to be
conveyed on such date and (ii) all conditions to the issuance of the Recovery Bonds intended to provide such funds set forth in the Indenture shall have been satisfied or waived; 

(g) on or prior to the Closing Date, the Seller shall have taken all action required to transfer to the Issuer ownership of the Recovery
Property to be conveyed on such date, free and clear of all Liens other than Liens created by the Issuer pursuant to the Basic Documents and to perfect such transfer, including, without limitation, filing any statements or filings under the Wildfire
Financing Law or the UCC; and the Issuer or the Servicer, on behalf of the Issuer, shall have taken any action required for the Issuer to grant the Indenture Trustee a first priority perfected security interest in the Recovery Bond Collateral and
maintain such security interest as of such date; 

  
 - 3 - 

 (h) the Seller shall have received and delivered to the Issuer and the Indenture Trustee an
opinion or opinions of outside tax counsel (as selected by the Seller, and in form and substance reasonably satisfactory to the Issuer and the Underwriters) to the effect that (i) the Issuer will not be subject to United States federal income
tax as an entity separate from its sole owner and that the Recovery Bonds will be treated as debt of the Issuer’s sole owner for United States federal income tax purposes, and (ii) the issuance of the Recovery Bonds will not result in
gross income to the Seller. The opinion of outside tax counsel described above may, if the Seller so chooses, be conditioned on the receipt by the Seller of one or more letter rulings from the Internal Revenue Service (unless the Internal Revenue
Service has announced that it will not rule on the issues described in this paragraph) and in rendering such opinion outside tax counsel shall be entitled to rely on the rulings contained in such ruling letters and to rely on the representations
made, and information supplied, to the Internal Revenue Service in connection with such letter rulings; 
 (i) on and as of the Closing
Date, each of the LLC Agreement, the Servicing Agreement, this Agreement, the Indenture, the Financing Order, the Tariff and the Wildfire Financing Law shall be in full force and effect; and 

(j) the Seller shall have delivered to the Indenture Trustee and the Issuer an Officers’ Certificate confirming the satisfaction of each
condition precedent specified in this Section 2.02. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SELLER 

Subject to Section 3.10, the Seller makes the following representations and warranties, as of the Closing Date, and
the Seller acknowledges that the Issuer has relied thereon in acquiring the Recovery Property. The representations and warranties shall survive the sale and transfer of Recovery Property to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture. The Seller agrees that (i) the Issuer may assign the right to enforce the following representations and warranties to the Indenture Trustee and (ii) the representations and warranties inure to the benefit of the
Issuer and the Indenture Trustee. 
 SECTION 3.01 Organization and Good Standing. 

(a) The Seller is duly organized and validly existing and in good standing under the laws of the State of California, with requisite corporate
power and authority to own its properties as owned on the Closing Date and to conduct its business as conducted by it on the Closing Date, to obtain the Financing Order and to own, sell and transfer Recovery Property and to execute, deliver and
perform the terms of this Agreement. 
 (b) After giving effect to the sale of the Recovery Property under this Agreement, the Seller:
(i) is solvent and expects to remain solvent, (ii) is adequately capitalized to conduct its business and affairs considering its size and the nature of its business and intended purposes, (iii) is not engaged and does not expect to
engage in a business for which its remaining property represents an unreasonably small capital, (iv) reasonably believes that it will be able to pay its debts as they become due and (v) is able to pay its debts as they mature and does not
intend to incur, nor does it believe that it will incur, indebtedness that it will not be able to repay at its maturity. 

  
 - 4 - 

 SECTION 3.02 Due Qualification. The Seller is duly
qualified to do business and is in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require such qualifications, licenses or
approvals (except where the failure to so qualify or obtain such licenses and approvals would not be reasonably likely to have a material adverse effect on the Seller’s business, operations, assets, revenues or properties). 

SECTION 3.03 Power and Authority. The Seller has the requisite corporate or other power and authority to
execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of the Seller under its organizational or governing documents
and laws. 
 SECTION 3.04 Binding Obligation. This Agreement constitutes a legal, valid and binding
obligation of the Seller enforceable against it in accordance with its terms, subject to applicable insolvency, reorganization, moratorium, fraudulent transfer and other laws relating to or affecting creditors’ or secured parties’ rights
generally from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law. 

SECTION 3.05 No Violation. The consummation by the Seller of the transactions contemplated by this Agreement
(a) do not conflict with the organizational documents of the Seller or any indenture or other agreement or instrument to which the Seller is a party or by which it is bound, nor will consummation by the Seller of the transactions contemplated
hereunder result in the creation or imposition of any Lien upon its properties pursuant to the terms of such indenture, agreement or other instrument (other than any that may be granted under the Basic Documents or the Lien arising under
Section 850.3(g) of the Wildfire Financing Law, the Financing Order and the Issuance Advice Letter) or violate any existing law or any existing order, rule or regulation applicable to the Seller (b) and is consistent with the Wildfire
Financing Law and the Financing Order. 
 SECTION 3.06 No Proceedings. 

(a) There are no proceedings pending and, to the Seller’s knowledge, there are no proceedings threatened and, to the Seller’s
knowledge, there are no investigations pending or threatened, before any Governmental Authority having jurisdiction over the Seller or its properties involving or relating to the Seller or the Issuer or, to the Seller’s knowledge, any other
Person: (b) asserting the invalidity of the Wildfire Financing Law, the Financing Order, the Issuance Advice Letter, this Agreement, any of the other Basic Documents or the Recovery Bonds, (c) seeking to prevent the issuance of the
Recovery Bonds or the consummation of any of the transactions contemplated by this Agreement or any of the other Basic Documents, (d) seeking any determination or ruling that could reasonably be expected to materially and adversely affect the
performance by the Seller of its obligations under, or the validity or enforceability of the Wildfire Financing Law, the Financing Order, the Issuance Advice Letter, this Agreement, any of the other Basic Documents or the Recovery Bonds or
(e) seeking to adversely affect the federal income tax or state income or franchise tax classification of the Recovery Bonds as debt. 

  
 - 5 - 

 (b) There is no order by any court or regulatory agency providing for the revocation,
alteration, limitation or other impairment of the Wildfire Financing Law, the Financing Order, the Issuance Advice Letter, the Recovery Property or the Fixed Recovery Charges or any rights arising under any of them or that seeks to enjoin the
performance of any obligations under the Financing Order. 
 SECTION 3.07 Consents and Approvals. 

(a) The Seller submitted its written consent to the terms and conditions to the Financing Order on October 28, 2021, as required by
Section 850.1(d) of the Wildfire Financing Law. 
 (b) No governmental approvals, authorizations, consents, orders or other actions or
filings, other than filings under the Wildfire Financing Law, are required for the Seller to execute, deliver and perform its obligations under this Agreement except those which have been obtained or made or are required to be made by the Seller in
the future pursuant to this Agreement. 
 SECTION 3.08 The Recovery Property. 

(a) Information. Subject to subsection (f) below, at the Closing Date, all written information, as amended or
supplemented from time to time, provided by the Seller to the Issuer with respect to the Recovery Property is true and correct in all material respects. 

(b) Title. It is the intention of the parties hereto that (other than for federal income tax purposes and, to the extent consistent with
applicable state tax law, state income and franchise tax purposes) the transfers and assignments herein contemplated each constitute a sale and absolute transfer of the Recovery Property from the Seller to the Issuer and that no interest in, or
right or title to, the Recovery Property shall be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. No portion of the Recovery Property has been sold, transferred,
assigned or pledged or otherwise conveyed by the Seller to any Person other than the Issuer, and no security agreement, financing statement or equivalent security or lien instrument listing the Seller as debtor covering all or any part of the
Recovery Property is on file or of record in any jurisdiction, except such as may have been filed, recorded or made in favor of the Issuer or the Indenture Trustee in connection with the Basic Documents. The Seller has not authorized the filing of
and is not aware (after due inquiry) of any financing statement against it that includes a description of collateral including the Recovery Property other than any financing statement filed, recorded or made in favor of the Issuer or the Indenture
Trustee in connection with the Basic Documents. The Seller is not aware (after due inquiry) of any judgment or tax lien filings against either the Seller or the Issuer. At the Closing Date, immediately prior to the sale of the Recovery Property
hereunder, the Seller is the original and the sole owner of the Recovery Property free and clear of all Liens and rights of any other Person, and no offsets, defenses or counterclaims exist or have been asserted with respect thereto. 

(c) Transfer Filings. On the Closing Date, immediately upon the sale under this Agreement, the Recovery Property transferred on the
Closing Date shall be validly transferred and sold to the Issuer, the Issuer shall own all such Recovery Property, free and clear of all Liens, except for the Lien arising under Section 850.3(g) of the Wildfire Financing Law, the Financing
Order and the Issuance Advice Letter, and all filings (including filings with the Secretary of State of California under the Wildfire Financing Law) necessary in any jurisdiction to give the Issuer a perfected ownership interest in the Recovery
Property shall have been made. 

  
 - 6 - 

 (d) Financing Order, Issuance Advice Letter and Tariff; Other Approvals. Under the
laws of the State of California (including the Wildfire Financing Law) and the United States in effect on the Closing Date: (i) the Financing Order and the Issuance Advice Letter pursuant to which the rights and the interests of the Seller have
been created, including the right to impose, collect and receive the Fixed Recovery Charges and the interest in and to the Recovery Property is in full force and effect, and the Seller has validly and irrevocably consented to the terms of the
Financing Order, (ii) as of the Closing Date, subject to the limitations set forth in Sections 850.1(g) of the Wildfire Financing Law, the Recovery Bonds are entitled to the protection provided in the first sentence of Section 850.1(e) and
the first sentence of Section 850.2(f) of the Wildfire Financing Law, (iii) as of the Closing Date, the Tariff has been submitted with the CPUC in accordance with the Financing Order, (iv) the process by which the Financing Order was
approved and the Financing Order, the Issuance Advice Letter and the Tariff comply with all applicable laws and regulations, (v) the Issuance Advice Letter has been submitted and the Tariff has been submitted in accordance with the Financing
Order, (vi) no other approval, authorization, consent, order or other action of, or filing with any governmental authority is required on the part of the Seller in connection with the creation of the Recovery Property, except those that have
been obtained or made, and (vii) under the “contract clause” of the U.S. Constitution and the “contract clause” of the California Constitution, Holders of the Recovery Bonds could, absent a demonstration by the State of
California that such action is necessary to further a significant and legitimate public purpose, successfully challenge the constitutionality of any legislative action that limits, alters, impairs or reduces the value of the recovery property or the
fixed recovery charges so as to impair (a) the terms of the indenture or the bonds or (b) the rights and remedies of the bondholders determined by such court to limit, alter, impair or reduce the value of the recovery property or the fixed
recovery charges prior to the time that the bonds are fully paid and discharged. 
 (e) State Action. Under the Wildfire Financing
Law, the State of California has pledged that it will not take or permit any action that would impair the value of the Recovery Property transferred on such date, or, except as permitted by Section 850.1(g) of the Wildfire Financing Law,
reduce, alter or impair the Fixed Recovery Charges relating to the Recovery Property until the principal, interest and premium and any other charges incurred and contracts to be performed in connection with the Recovery Bonds relating to the
Recovery Property have been paid and performed in full. Under the laws of the State of California and the United States, any law enacted by the State of California, whether by legislation or voter initiative, that repeals or amends the Wildfire
Financing Law or take any other action in contravention of the State pledge would constitute a “taking,” for which just compensation must be paid, if, for a public use, either the law (a) constituted a permanent appropriation of a
substantial property interest of the bondholders in the recovery property or denied all economically productive use of the Recovery Property; (b) destroyed the recovery property other than in response to emergency conditions; or
(c) substantially reduced, altered or impaired the value of the recovery property so as to unduly interfere with the reasonable expectations of the bondholders arising from their investments in the Recovery Bonds. There is no assurance,
however, that, even if a court were to award just compensation it would be sufficient to pay the full amount of principal and interest on the Recovery Bonds. 

  
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 (f) Assumptions. On the Closing Date, based upon the information available to the
Seller on such date, the assumptions used in calculating the Fixed Recovery Charges are reasonable and are made in good faith. Notwithstanding the foregoing, the Seller makes no representation or warranty, express or implied, that amounts actually
collected arising from those Fixed Recovery Charges will in fact be sufficient to meet the payment obligations on the related Recovery Bonds or that the assumptions used in calculating such Fixed Recovery Charges will in fact be realized. 

(g) Creation of Recovery Property. Upon the filing of the Issuance Advice Letter with respect to the Recovery Property pursuant to the
Financing Order: (i) the related rights and interests of the Seller under the Financing Order, including the right to impose, collect and receive the Fixed Recovery Charges established pursuant to the Financing Order, will become Recovery
Property, (ii) the Recovery Property will constitute a current property right, (iii) the Recovery Property will include the right, title and interest of the Seller to the Tariff imposing the Fixed Recovery Charges, and the right to obtain
periodic true-up adjustments of the Fixed Recovery Charges, (iv) the owner of the Recovery Property will be legally entitled to bill Fixed Recovery Charges and collect payments in respect of the Fixed
Recovery Charges in the aggregate amount sufficient to pay or fund, in accordance with the Indenture, the principal of the Recovery Bonds, all interest thereon, and all other Ongoing Financing Costs, and (v) the Recovery Property will not be
subject to any Lien, except for the lien arising under Section 850.3(g) of the Wildfire Financing Law, the Financing Order and the Issuance Advice Letter. 

(h) Nature of Representations and Warranties. The representations and warranties set forth in this
Section 3.08, insofar as they involve conclusions of law, are made not on the basis that the Seller purports to be a legal expert or to be rendering legal advice, but rather to reflect the parties’ good faith
understanding of the legal basis on which the parties are entering into this Agreement and the other Basic Documents and the basis on which the Holders are purchasing the Recovery Bonds, and to reflect the parties’ agreement that, if such
understanding turns out to be incorrect or inaccurate, the Seller will be obligated to indemnify the Issuer and its permitted assigns (to the extent required by and in accordance with Section 5.01), and that the Issuer and
its permitted assigns will be entitled to enforce any rights and remedies under the Basic Documents, on account of such inaccuracy to the same extent as if the Seller had breached any other representations or warranties hereunder. 

(i) Under existing law as of the Closing Date, Holders will not be responsible for, nor will payments to Holders be reduced by, any sales tax,
gross receipts tax, general corporation tax, single business tax, personal property tax, privilege tax, franchise or license tax, or other tax imposed on the Seller or the Issuer as a result of the sale and assignment of the Recovery Property by the
Seller to the Issuer, the acquisition of the Recovery Property by the Issuer or the issuance and sale by the Issuer of the Recovery Bonds, other than withholding of taxes applicable to Recovery Bond payments and any taxes imposed as a result of a
failure of the Issuer or the Seller to properly withhold or remit taxes imposed with respect to payments on any Recovery Bond. 
 (j)
Prospectus. As of the date hereof, the information describing the Seller under the caption “The Depositor, Seller, Initial Servicer and Sponsor” in the prospectus dated February 8, 2022 relating to the Bonds is true and correct
in all material respects. 

  
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 (k) No Court Order. There is no order by any court providing for the revocation,
alteration, limitation or other impairment of the Wildfire Financing Law, the Financing Order, the Issuance Advice Letter, the Recovery Property or the Fixed Recovery Charges or any rights arising under any of them or that seeks to enjoin the
performance of any obligations under the Financing Order. 
 (l) Survival of Representations and Warranties The representations and
warranties set forth in this Section 3.08 shall survive the execution and delivery of this Agreement and may not be waived by any party hereto except pursuant to a written agreement executed in accordance with Article
VI and as to which the Rating Agency Condition has been satisfied. 
 SECTION 3.09 Change in Law. The
representations and warranties in this Agreement speak as of the Closing Date. Any change in the law by legislative enactment, constitutional amendment or voter initiative that renders untrue any of the representations or warranties in this
Agreement will not constitute a breach under this Agreement. 
 SECTION 3.10 Limitations on Representations and
Warranties. Without prejudice to any of the other rights of the parties, the Seller will not be in breach of any representation or warranty, as a result of a change in law by means of any legislative enactment, constitutional amendment or voter
initiative. THE SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, THAT BILLED FRCS WILL BE ACTUALLY COLLECTED FROM CONSUMERS. 

ARTICLE IV 

COVENANTS OF THE SELLER 

SECTION 4.01 Existence. Subject to Section 5.02, so long as any of the Recovery Bonds are Outstanding,
the Seller (a) will keep in full force and effect its existence and remain in good standing under the laws of the jurisdiction of its organization, (b) will obtain and preserve its qualification to do business, in each case to the extent
that in each such jurisdiction such existence or qualification is or shall be necessary to protect the validity and enforceability of this Agreement, the other Basic Documents to which the Seller is a party and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the transactions contemplated hereby or to the extent necessary for the Seller to perform its obligations hereunder or thereunder and (c) will continue to operate its
distribution system to provide service to its customers. 
 SECTION 4.02 No Liens. Except for the
conveyances hereunder or any Lien under or in accordance with Section 850.3(g) of the Wildfire Financing Law in favor of the Indenture Trustee for the benefit of the Holders and any Lien that may be granted under the Basic Documents, the Seller
will not sell, pledge, assign or transfer, or grant, create, incur, assume or suffer to exist any Lien on, any of the Recovery Property, or any interest therein, and the Seller shall defend the right, title and interest of the Issuer and the
Indenture Trustee, on behalf of the Secured Parties, in, to and under the Recovery Property against all claims of third parties claiming through or under the Seller. SCE, in its capacity as Seller, will not at any time assert any Lien against, or
with respect to, any of the Recovery Property. 

  
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 SECTION 4.03 Delivery of Collections; Sale of Certain
Assets. 
 (a) In the event that the Seller receives any FRC Collections or other payments in respect of the Fixed Recovery Charges or
the proceeds thereof other than in its capacity as the Servicer, the Seller agrees to pay to the Servicer, on behalf of the Issuer, all payments received by it in respect thereof as soon as practicable after receipt thereof. Prior to such remittance
to the Servicer by the Seller, the Seller agrees that such amounts are held by it in trust for the Issuer and the Indenture Trustee. 
 (b)
If the Seller becomes a party to any future trade receivables purchase and sale arrangement or similar arrangement under which it sells all or any portion of its accounts receivables, the Seller and the other parties to such arrangement shall enter
into an intercreditor agreement in connection therewith and the terms of the documentation evidencing such trade receivables purchase and sale arrangement or similar arrangement shall expressly exclude Fixed Recovery Charges from any receivables
pledged or sold under such arrangement. 
 (c) If the Seller enters into a sale agreement selling to any other Affiliate property consisting
of nonbypassable charges payable by Customers comparable to those sold by the seller pursuant to the sale agreement, the Rating Agency Condition shall be satisfied with respect to the Recovery Bonds prior to or coincident with such sale. 

SECTION 4.04 Notice of Liens. The Seller shall notify the Issuer and the Indenture Trustee promptly after
becoming aware of any Lien on any of the Recovery Property, other than the conveyances hereunder, any Lien under the Basic Documents or any Lien under or in accordance with Section 850.3(g) of the Wildfire Financing Law created in favor of the
Indenture Trustee for the benefit of the Holders. 
 SECTION 4.05 Compliance with Law. The Seller hereby
agrees to comply with its organizational or governing documents and all laws, treaties, rules, regulations and determinations of any Governmental Authority applicable to it, except to the extent that failure to so comply would not materially
adversely affect the Issuer’s or the Indenture Trustee’s interests in the Recovery Property or under any of the other Basic Documents to which the Seller is party or the Seller’s performance of its obligations hereunder or under any
of the other Basic Documents to which it is party. 
 SECTION 4.06 Covenants Related to Recovery Bonds and
Recovery Property. 
 (a) So long as any of the Recovery Bonds are outstanding, the Seller shall treat the Recovery Property as the
Issuer’s property for all purposes other than financial reporting, state or federal regulatory or tax purposes, and treat the Recovery Bonds as debt for all purposes and specifically as debt of the Issuer, other than for financial reporting,
state or federal regulatory or tax purposes 
 (b) Solely for the purposes of federal taxes and, to the extent consistent with applicable
state, local and other tax law, for purposes of state, local and other taxes, so long as any of the Recovery Bonds are outstanding, the Seller agrees to treat the Recovery Bonds as indebtedness of the Seller (as the sole owner of the Issuer) secured
by the Recovery Bond Collateral unless otherwise required by appropriate taxing authorities. 

  
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 (c) So long as any of the Recovery Bonds are outstanding, the Seller shall disclose in its
financial statements that the Issuer and not the Seller is the owner of the Transition Property and that the assets of the Issuer are not available to pay creditors of the Seller or its Affiliates (other than the Issuer). 

(d) So long as any of the Recovery Bonds are outstanding, the Seller shall not own or purchase any Recovery Bonds. 

(e) So long as the Recovery Bonds are outstanding, the Seller shall disclose the effects of all transactions between the Seller and the Issuer
in accordance with generally accepted accounting principles. 
 (f) The Seller agrees that upon the sale by the Seller of the Recovery
Property to the Issuer pursuant to this Agreement, (i) to the fullest extent permitted by law, the Issuer shall have all of the rights originally held by the Seller with respect to such Recovery Property, including the right to exercise any and
all rights and remedies to collect any amounts payable by any Consumer in respect of such Recovery Property, notwithstanding any objection or direction to the contrary by the Seller and (ii) any payment by any Consumer to the Issuer shall
discharge such Consumer’s obligations in respect of such Recovery Property to the extent of such payment, notwithstanding any objection or direction to the contrary by the Seller. 

(g) So long as any of the Recovery Bonds are outstanding, (i) in all proceedings relating directly or indirectly to the Recovery Property,
the Seller shall affirmatively certify and confirm that it has sold all of its rights and interests in and to such property (other than for financial reporting or tax purposes), (ii) the Seller shall not make any statement or reference in respect of
the Recovery Property that is inconsistent with the ownership interest of the Issuer (other than for financial reporting or tax purposes), (iii) the Seller shall not take any action in respect of the Recovery Property except solely in its capacity
as Servicer pursuant to the Servicing Agreement or as otherwise contemplated by the Basic Documents, and (iv) neither the Seller nor the Issuer shall take any action, file any tax return, or make any election inconsistent with the treatment of
the Issuer, for purposes of federal taxes and, to the extent consistent with applicable state, local and other tax law, for purposes of state, local and other taxes, as a disregarded entity that is not separate from the Seller (or, if relevant, from
another sole owner of the Issuer). 
 (h) The Seller agrees not to withdraw the submission of the Issuance Advice Letter with the CPUC. 

(i) The Seller shall make all reasonable efforts to keep each Tariff that relates to the Recovery Property in full force and effect. 

(j) Promptly after obtaining knowledge of any breach in any material respect of its representations and warranties in this Agreement, the
Seller shall notify the Issuer and the Rating Agencies of the breach. 
 (k) The Seller shall use the proceeds of the sale of the Recovery
Property in accordance with the Financing Order and the Wildfire Financing Law. 

  
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 (l) Upon the request of the Issuer, the Seller shall execute and deliver such further
instruments and do such further acts as may be necessary to carry out the provisions and purposes of this Agreement. 
 (m) The Seller shall
not permit the issuance of any Additional Recovery Bonds by any issuing entity other than the Issuer, unless the Rating Agency Condition with respect to the Recovery Bonds is satisfied. 

SECTION 4.07 Protection of Title. The Seller shall execute and file the filings required by law to perfect
and continue the perfection of the interests of the Issuer in the Recovery Property. The Seller also agrees to take those legal or administrative actions that may be reasonably necessary (i) to protect the Issuer and Secured Parties from
claims, state actions or other actions or proceedings of third parties which, if successfully pursued, would result in a breach of any representation or warranty of the Seller set forth in Article III, and the costs of any such actions or
proceedings will be paid by the Seller and (ii) to block or overturn any attempts to cause a repeal of, modification of or supplement to the Wildfire Financing Law, the Financing Order, the Issuance Advice Letter or the rights of Holders by
legislative enactment or constitutional amendment that would be materially adverse to the Issuer or the Secured Parties or which would otherwise cause an impairment of the rights of the Issuer or the Secured Parties. The costs of any such actions or
proceedings will be payable by the Seller. 
 SECTION 4.08 Nonpetition Covenants. Notwithstanding
any prior termination of this Agreement or the Indenture, the Seller shall not, prior to the date which is one year and one day after the termination of the Indenture and payment in full of the Recovery Bonds or any other amounts owed under the
Indenture, petition or otherwise invoke or cause the Issuer to invoke the process of any Government Authority for the purpose of commencing or sustaining an involuntary case against the Issuer under any federal or state bankruptcy, insolvency or
similar law, appointing a receiver, liquidator, assignee, Indenture Trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of the property of the Issuer, or ordering the winding up or liquidation of the
affairs of the Issuer. 
 SECTION 4.09 Taxes. So long as any of the Recovery Bonds are outstanding, the
Seller shall, and shall cause each of its subsidiaries to, pay all taxes, assessments and governmental charges imposed upon it or any of its properties or assets or with respect to any of its franchises, business, income or property before any
penalty accrues thereon if the failure to pay any such taxes, assessments and governmental charges would, after any applicable grace periods, notices or other similar requirements, result in a Lien on the Recovery Property; provided that no such tax
need be paid if the Seller or one of its Affiliates is contesting the same in good faith by appropriate proceedings promptly instituted and diligently conducted and if the Seller or such Affiliate has established appropriate reserves as shall be
required in conformity with generally accepted accounting principles. 
 SECTION 4.10 Notice of Breach to
Rating Agencies, Etc. Promptly after obtaining knowledge thereof, in the event of a breach in any material respect (without regard to any materiality qualifier contained in such representation, warranty or covenant) of any of the Seller’s
representations, warranties or covenants contained herein, the Seller shall promptly notify the Issuer, the Indenture Trustee, and the Rating Agencies of such breach. For the avoidance of doubt, any breach which would adversely affect scheduled
payments on the Bonds will be deemed to be a material breach for purposes of this Section 4.10. 

  
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 SECTION 4.11 Use of Proceeds. The Seller shall use the
proceeds of the sale of the Recovery Property in accordance with the Financing Order and the Wildfire Financing Law. 

SECTION 4.12 Further Assurances. Upon the request of the Issuer, the Seller shall execute and deliver such
further instruments and do such further acts as may be reasonably necessary to carry out more effectually the provisions and purposes of this Agreement. 

ARTICLE V 
 THE
SELLER 
 SECTION 5.01 Liability of Seller; Indemnities. 

(a) The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this
Agreement. 
 (b) The Seller shall indemnify the Issuer and the Indenture Trustee (for itself, for the benefit of the Holders) and each of
the Issuer’s and the Indenture Trustee’s respective officers, directors, members, employees and agents and defend and hold harmless each such person from and against (i) any and all amounts of principal of and interest on the Recovery
Bonds not paid when due or when scheduled to be paid in accordance with their terms, (ii) any other amounts payable to any Person in connection with the Recovery Bonds or in connection with the Recovery Property, including but not limited to
Indenture Trustee’s fees and expenses, that are not paid when due or when scheduled to be paid pursuant to the Indenture, (iii) the amount of any other deposits to the Collection Account required to have been made in accordance with the
terms of the Basic Documents and retained in the Capital Subaccount, or in the Excess Funds Subaccount or released to the Issuer free of the lien of the Indenture, which are not made when so required, (v) any reasonable costs and expenses
incurred by such Person that are not recoverable pursuant to the Indenture and (vi) any taxes payable by Holders resulting in a breach of Section 3.08(i), in each case to the extent resulting from the Seller’s breach of any of its
representations, warranties or covenants contained in this Agreement, except to the extent of losses either resulting from the willful misconduct, bad faith or gross negligence of such indemnified Persons or resulting from a breach of representation
or warranty made by such indemnified Persons in the Indenture or any other document that gives rise to the Seller’s breach. Indemnification under this paragraph shall survive the resignation or removal of the Indenture Trustee. 

(c) Notwithstanding Section 5.01(b) above, the Seller shall not be liable for any loss, damages, liability, obligation, claim, action,
suit or payment resulting solely from a downgrade in the ratings on the Recovery Bonds or for any consequential damages, including any loss of market value of the Recovery Bonds resulting from any default or any downgrade of the ratings of the
Recovery Bonds. 
 (d) The indemnities described in this Section will survive the termination of this Agreement and include reasonable fees
and expenses of investigation and litigation, including reasonable attorneys’ fees and expenses. The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this Agreement.

  
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 SECTION 5.02 Merger, Conversion or Consolidation of, or
Assumption of the Obligations of, Seller. Any Person (a) into which the Seller may be merged, converted or consolidated and that succeeds to all or substantially all of the electric distribution business of the Seller, (b) that results
from the division of the Seller into two or more Persons and succeeds that to all or substantially all of the electric distribution business of the Seller, (c) that results from any merger or consolidation to which the Seller shall be a party
and that succeeds to all or substantially all of the electric distribution business of the Seller, (d) that succeeds to the properties and assets of the Seller substantially as a whole, or succeeds to all or substantially all of the electric
distribution business of the Seller, or (e) that otherwise succeeds to all or substantially all of the electric distribution business of the Seller, shall be the successor to the Seller under this Agreement without further act on the part of
any of the parties to this Agreement; provided, further, that (i) immediately after giving effect to any transaction referred to above, no representation or warranty made by the Seller pursuant to Article III shall have been breached and, to
the extent the Seller is the Servicer, no default under the Servicing Agreement, and no event, that after notice or lapse of time, or both, would become a default under the Servicing Agreement will have occurred and be continuing, (ii) the
successor to the Seller must execute an agreement of assumption to perform every obligation of the Seller under this Agreement, (iii) the Rating Agencies shall have received prior written notice of such transaction, and (iv) the Seller
shall have delivered to the Issuer and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation, merger or succession and such agreement of assumption comply with this Section and that all
conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with. 

SECTION 5.03 Limitation on Liability of Seller and Others. The Seller and any director, officer, employee or
agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person, respecting any matters arising hereunder. Subject to Section 4.07, the Seller
shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its obligations under this Agreement, and that in its opinion may involve it in any expense or liability. 

ARTICLE VI 

MISCELLANEOUS PROVISIONS 

SECTION 6.01 Amendment. This Agreement may be amended by the Seller and the Issuer with the prior written
consent of the Indenture Trustee, but without the consent of any of the Holders (i) to cure any ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Holders; provided, however, that such action shall not, as evidenced by an Officer’s Certificate delivered to the Issuer and the Indenture
Trustee, adversely affect in any material respect the interests of any Holder or (ii) to conform the provisions hereof to the description of this Agreement in the Prospectus. In addition, any amendment will not be effective unless the Rating
Agency Condition is satisfied. 

  
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 In addition, this Agreement may be amended in writing by the Seller and the Issuer with
(i) the prior written consent of the Indenture Trustee, (ii) the satisfaction of the Rating Agency Condition, and (iii) if any amendment would adversely affect in any material respect the interest of any Holder of the Bonds, the
consent of a majority of the Holders of each affected Tranche of Bonds. In determining whether a majority of Holders have consented, Bonds owned by the Issuer, Seller or any Affiliate of the Issuer or Seller shall be disregarded, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any such consent, the Indenture Trustee shall only be required to disregard any Bonds it actually knows to be so owned. Promptly after the execution of any such amendment
or consent, the Issuer shall furnish copies of such amendment or consent to each of the Rating Agencies. 
 It shall not be necessary for
the consent of Holders pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. 

Prior to the execution of any amendment to this Agreement, the Issuer and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel from external counsel of the Seller stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent have been satisfied and the Opinion of Counsel referred to in
Section 3.01(c)(i) of the Servicing Agreement. The Issuer and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment which affects the Indenture Trustee’s own rights, duties or immunities under this
Agreement or otherwise. 
 SECTION 6.02 Notices. All demands, notices and communications upon or to the
Seller, the Issuer, the Indenture Trustee or the Rating Agencies under this Agreement shall be sufficiently given for all purposes hereunder if in writing, and delivered personally, sent by documented delivery service or, to the extent receipt is
confirmed telephonically, sent by electronic transmission: 
 (a) in the case of the Seller, to Southern California Edison Company, at 2244
Walnut Grove Avenue, P.O. Box 800, Rosemead, California 91770, Attention: Bill Pang, Telephone: (626) 302-1212, Email: bill.pang@sce.com; 

(b) in the case of the Issuer, to SCE Recovery Funding LLC at 2244 Walnut Grove Avenue, P.O. Box 5407, Rosemead, California 91770, Attention:
Natalia Woodward, Telephone: (626) 302-7255, Email: Natalia.l.woodward@sce.com; 
 (c) in the case of
the Indenture Trustee, to the Corporate Trust Office; 
 (d) in the case of Moody’s, to Moody’s Investors Service, Inc., ABS/RMBS
Monitoring Department, 25th Floor, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, Email: ServicerReports@moodys.com (all such notices to be delivered to Moody’s in
writing by email); 
 (e) in the case of Standard & Poor’s, to Standard & Poor’s Ratings Group, Inc., Structured
Credit Surveillance, 55 Water Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be delivered to Standard & Poor’s in writing
by email); and 

  
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 (f) as to each of the foregoing, at such other address as shall be designated by written
notice to the other parties. 
 SECTION 6.03 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Section 5.02, this Agreement may not be assigned by the Seller. 

SECTION 6.04 Limitations on Rights of Third Parties. The provisions of this Agreement are solely for the
benefit of the Seller, the Issuer, the Indenture Trustee (for the benefit of the Secured Parties) and the other Persons expressly referred to herein, and such Persons shall have the right to enforce the relevant provisions of this Agreement. Nothing
in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Recovery Property or under or in respect of this Agreement or any covenants, conditions or provisions
contained herein. 
 SECTION 6.05 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remainder of such provision (if any) or the remaining provisions hereof (unless such
construction shall be unreasonable), and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

SECTION 6.06 Separate Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

SECTION 6.07 Headings. The headings of the various Articles and Sections herein are for convenience of
reference only and shall not define or limit any of the terms or provisions hereof. 
 SECTION 6.08 Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 SECTION 6.09 Assignment to Indenture
Trustee. The Seller hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security interest by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the Secured Parties of all right, title
and interest of the Issuer in, to and under this Agreement, the Recovery Property and the proceeds thereof and the assignment of any or all of the Issuer’s rights hereunder to the Indenture Trustee for the benefit of the Secured Parties. For
the avoidance of doubt, the Indenture Trustee is a third-party beneficiary of this Agreement and is entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party hereto. 

SECTION 6.10 Limitation of Liability. It is expressly understood and agreed by the parties hereto that this
Agreement is executed and delivered by the Indenture Trustee, not individually or personally but solely as Indenture Trustee on behalf of the Secured Parties, in the exercise of the powers and authority conferred and vested in it. The Indenture
Trustee in acting hereunder is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Indenture. 

  
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 SECTION 6.11 Waivers. Any term or provision of this
Agreement may be waived, or the time for its performance may be extended, by the party or parties entitled to the benefit thereof; provided, however, that no such waiver delivered by the Issuer shall be effective unless the Indenture
Trustee has given its prior written consent thereto. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an authorized representative of such party. The
failure of any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party
thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 

[Signature Page Follows] 

  
 - 17 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective officers as of the day and year first above written. 
  

					
	ISSUER:
	
	 SCE RECOVERY FUNDING LLC,
 a
Delaware limited liability company

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
		 		 	
	
	SELLER:
	
	 SOUTHERN CALIFORNIA EDISON COMPANY,

a California Corporation

		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

					
	ACKNOWLEDGED AND ACCEPTED:
	
	THE BANK OF NEW YORK MELLON
	    TRUST COMPANY, N.A.,
	
	as Indenture Trustee
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 Signature Page to 

Recovery Property Purchase and Sale Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00339-of-00352.parquet"}]]