10-K 0000827052-26-000012 (2026-02-18) vs 10-K 0000827052-25-000022 (2025-02-27)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 6,719 |
13.9% |
| MD&A | Item 7 | 18,690 |
36.3% |
| Legal Proceedings | Item 3 | 1,058 |
22.9% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies | 7,492 |
20.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 297 words changed in this paragraph; it is 32% similar to last year's version.
Edison International believes that California's 2045 goals can be achieved most economically through emissions reductions enabled by clean electricity to serve 100% of retail sales, electrifying approximately 90% of light-duty vehicles, 90% of medium-duty vehicles, 54% of heavy-duty vehicles, 80% of buses and 95% of buildings. Additionally, reducing emissions to near zero in the electric sector hinges on developing clean firm resources to replace natural gas. Clean firm resources, such as next-generation geothermal, small modular reactors, natural gas with carbon capture and storage, and clean hydrogen, produce constant power through any weather conditions or season with little or no greenhouse gas emissions. By 2045, Rising electricity demand across the U.S. economy is projected to increase by at least 80% as compared to 2022 per Edison International's analysis. In SCE’s service area, the increase in a primary force reshaping grid needs and investment planning. SCE projects electricity demand is materializing sooner than expected. SCE’s most recent 10-year load growth forecast has increased to nearly double between 2025 and 2045, driven by 35% compared to its 2022 distribution system plan. The key drivers of this increase are commercial developments, transportation electrification, and new residential housing. housing, and increases in commercial and industrial consumption. These economy-wide trends create broad customer and climate benefits by supporting long-term emissions reduction. Emerging market uncertainties, tighter resource timelines, and rising costs have increased the complexity of long‑term clean energy planning, adding pressure to California's climate goals. Despite this, California has demonstrated strong long-term support of transportation electrification as shown by the approval of SCE's Charge Ready programs and 2022 legislation banning sales of new gas vehicles by 2035. However, electrification. Edison International believes that more state policy support, along with public and private investment, is needed to enable California to reach its 2030 and 2045 GHG reduction targets. Additional policy and regulatory support is also needed to de-risk the development of clean firm resources, adjust planning processes to enable proactive grid build-out, and streamline permitting processes. The current federal administration has declared a national emergency on energy, stressing the need for a reliable, diversified, and affordable supply of energy. The integrity and expansion of energy infrastructure is an immediate and pressing priority. build-
Source: Item 7, 10-K 0000827052-26-000012 vs Item 7, 10-K 0000827052-25-000022
Risk Factors 188 words changed in this paragraph; it is 64% similar to last year's version.
SCE's infrastructure is aging and could pose a risk to system reliability if not sufficiently maintained and expanded to meet load growth and electrification needs. In addition, as described above, natural disasters such as wildfires in SCE's service area can cause significant public safety issues, property damage and operational issues. SCE is engaged in a significant and ongoing infrastructure investment program. This investment program, which includes transmission projects and constructing utility owned storage to mitigate possible state-wide capacity shortages in 2025 and later years, shortages, has inherent operational risks and elevates the need for effective execution in SCE's activities. For example, utility owned storage facilities utilize lithium-ion battery technology that in certain circumstances can and have caused a thermal event that can ignite nearby materials, including other lithium-ion cells particularly when deployed in indoor facilities. SCE's financial condition and results of operations could be materially affected if it is unable to successfully manage these risks as well as the risks inherent in constructing, operating, and maintaining its facilities, the operation of which can be hazardous and important for system reliability. SCE's inherent operating risks include such matters as the risks of human performance; availability of skilled workforce and workforce capabilities; contractor management; data and records accuracy; public opposition to infrastructure projects; delays; environmental remediation and mitigation costs; difficulty in estimating costs or in recovering costs that are above original estimates; system limitations and degradation; unexpected cascading critical system failure; maintaining physical security of workforce and assets; maintaining cybersecurity of data and assets; and delays and interruptions in necessary supplies. For example, SCE's financial condition may be materially affected as a result of safety incidents, delays, permitting violations and violations of regulatory requirements, among other things, caused by SCE's failure to appropriately manage its contractor workforce or from contractual violations by SCE's contractors and the inability for SCE to recover through contractual indemnities or insurance held by the contractor. SCE's financial condition may also be materially affected as a result of data or records inaccuracies, for example, inaccurate records could lead to missing or delayed compliance with SCE's policies and regulatory requirements, and could contribute to safety incidents.
Source: Item 1A, 10-K 0000827052-26-000012 vs Item 1A, 10-K 0000827052-25-000022
Legal Proceedings 81 words changed in this paragraph; it is 73% similar to last year's version.
As of February 20, 2025, SCE was aware of approximately 30 pending unsettled lawsuits representing approximately 70 individual plaintiffs related to the Thomas and Koenigstein Fires and the Montecito Mudslides naming SCE as a defendant. Approximately 10 of the approximately 30 lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. One of the lawsuits was filed as a purported class action. The court has denied class certification in the one lawsuit that was filed as a purported class action and plaintiffs have appealed the denial. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. SCE and certain of the individual plaintiffs in the Thomas and Koenigstein Fire litigation have been pursuing settlements of claims under a mediation program adopted to promote an efficient and orderly settlement process. As of February 20, 2025, 11, 2026, two damages only trials have been set for June May and August 2025 July 2026 for two individual plaintiff households in the TKM litigation.
Source: Item 3, 10-K 0000827052-26-000012 vs Item 3, 10-K 0000827052-25-000022
Accounting Policies 57 words changed in this paragraph; it is 85% similar to last year's version.
Edison International and SCE accounted for the contributions to the Wildfire Insurance Fund similarly to prepaid insurance. No period of coverage was provided in AB 1054, the California Wildfire Legislation, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2024 2025 and 2023, 2024, Edison International and SCE had a $1.9 $1.7 billion and a $2.0 $1.9 billion long-term asset, respectively, as well as a $138 million and $204 million current asset, respectively, asset for both periods, reflected as "Wildfire Insurance Fund contributions" in their consolidated balance sheets for the initial $2.4 billion contribution made during 2019 and the present value of annual contributions SCE committed to make to the Wildfire Insurance Fund, reduced by amortization. At December 31, 2024 2025 and 2023, 2024, long-term liabilities of $363 $274 million and $450 $363 million, respectively, have been reflected in "Other deferred credits and other long-term liabilities" for the present value of unpaid contributions. Contributions were discounted to the present value using US treasury interest rates at the date SCE committed to participate in the Wildfire Insurance Fund. Edison International and SCE reassesses the period of coverage of the fund at least annually in the first quarter each year, and adjustments are applied on a prospective basis. At December 31, 2025, 2024 and 2023, the asset
Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000827052-26-000012 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000827052-25-000022
Every change, by type
Sentences and paragraphs of EIX's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-27.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
The CPUC or the FERC may not allow SCE to recover costs on the basis that such costs were not reasonably or prudently incurred or for other reasons. Further, SCE may incur expenses before the relevant regulatory agency approves the
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
and/or regulatory exposure, all of which could materially affect Edison International’s and SCE's financial condition, operations, and the business reputation of Edison International and SCE.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Such events could result in violations of privacy and other laws, material financial loss to SCE and/or to its customers, loss of confidence in SCE's security risk management, customer dissatisfaction, and significant litigation and/or regulatory exposure, all of which could materially affect Edison International’s and SCE's financial condition, operations, and the business reputation of Edison International and SCE.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
For example, SCE may not be able to effectively implement its WMPs if it experiences unanticipated difficulties relative to permitting delays, sourcing, engaging, and retaining effectively trained contract workers or procuring materials it needs to fulfill its mitigation obligations under the WMPs.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Political changes following the United States presidential election Evolving U.S. and California governmental policies and regulatory initiatives could lead to changes in economic conditions or economic uncertainties in the State of California, United States and globally, including impacts to infrastructure investments, tariffs, taxes, and energy, environmental and social policies.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Weather-related incidents, including storms and events caused, or exacerbated, by climate change, such as wildfires, flooding and debris flows, and other natural disasters such as earthquakes can disrupt the generation and transmission of electricity, and can seriously damage the infrastructure necessary to deliver power to SCE's customers.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
In addition, existing Existing regulations may be revised or re-interpreted and new laws and regulations may be adopted adopted, via the public initiative or legislative process, or become applicable to SCE, or its facilities or operations, in a manner that may have a detrimental effect on SCE's business or result in significant additional costs.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
For more information on AB 1054, the presumption of prudency and the Liability Cap, see "Business—Southern California Wildfires—Recovery of Wildfire-Related Costs—2019 Costs— California Wildfire Legislation."
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Edison International's SCE's inability to borrow funds obtain additional capital from time to time could have a material effect on Edison International's SCE's liquidity and operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
In addition, the factors affecting SCE's business will impact Edison International's ability to obtain financing.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
If there are not no updates in regulations to further support the need for customers to pay their share of transmission and distribution costs and non-bypassable charges, for example through a higher fixed charge, and the demand for electricity reduces so significantly that SCE is no longer effectively able to recover such costs from its customers, SCE's business, financial condition and results of operations will be materially impacted.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
For more information on AB 1054, the California Wildfire Legislation , see "Business—Southern California Wildfires and Mudslides—Recovery of Wildfire-Related Costs—2019 Costs—California Wildfire Legislation."
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The Wildfire Insurance Fund and other provisions of AB 1054 the California Wildfire Legislation may not be sufficient or effectively mitigate the significant risk faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are a substantial cause, which could have a detrimental effect on SCE's business and financial condition.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The effectiveness of AB 1054 the California Wildfire Legislation to mitigate the wildfire-related risk faced by SCE is conditioned in part on the performance of OEIS and various entities formed under AB 1054 and related legislation to, among other things, administer the Wildfire Insurance Fund, approve WMPs, issue safety certifications, oversee and enforce compliance with wildfire safety standards, and develop metrics to reduce risk and measure compliance with risk reduction.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In January and December 2025, the CPUC approved the TKM Settlement Agreement and the Woolsey Settlement Agreement, respectively. As a result, in the year ended 2025, SCE recorded cost recoveries through CPUC electric rates authorized under both the TKM Settlement Agreement and the Woolsey Settlement Agreement. These cost recoveries are reflected either as core earnings or non-core items, as discussed below. This classification is consistent with the original classification when the respective costs were incurred.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
•Net earnings recorded in 2025 related to the TKM Settlement Agreement, including ongoing legal expenses: $1,341 million ($966 million after-tax) of claim costs and $55 million ($40 million after-tax) of legal expenses authorized for recovery, partially offset by shareholder-funded wildfire mitigation expenses of $50 million ($36 million after-tax) and impairment of incremental restoration-related assets of $8 million ($6 million after-tax).
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
•Net earnings recorded in 2025 related to the Woolsey Settlement Agreement, including ongoing legal expenses: $1,603 million ($1,154 million after-tax) of claim costs and $35 million ($25 million after-tax) of legal expenses authorized for recovery, partially offset by impairment of incremental restoration-related assets of $10 million ($7 million after-tax).
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
•Charges of $15 million ($11 million after tax) recorded in 2025 primarily from the shareholder contribution related to SCE's customer-funded self-insurance coverage and legal and other expenses.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Rising electricity demand across the U.S. economy is a primary force reshaping grid needs and investment planning. SCE projects electricity demand to nearly double between 2025 and 2045, driven by transportation electrification, new residential housing, and increases in commercial and industrial consumption. These economy-wide trends create broad customer and climate benefits by supporting long-term emissions reduction. Emerging market uncertainties, tighter resource timelines, and rising costs have increased the complexity of long‑term clean energy planning, adding pressure to California's climate goals. Despite this, California has demonstrated strong long-term support of transportation electrification. Edison International believes that more state policy support, along with public and private investment, is needed to enable California to reach its 2030 and 2045 GHG reduction targets. Additional policy and regulatory support is also needed to de-risk the development of clean firm resources, adjust planning processes to enable proactive grid build-
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
out, and streamline permitting processes. The current federal administration has declared a national emergency on energy, stressing the need for a reliable, diversified, and affordable supply of energy. The integrity and expansion of energy infrastructure is an immediate and pressing priority.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In December 2025, the CPUC issued a final decision on SCE's 2026 – 2028 cost of capital application that set SCE's ROE at 10.03%, and maintained SCE's current authorized capital structure, after CPUC-allowed exclusions, of 52% common equity, 43% long-term debt, and 5% preferred equity. Under the final decision, SCE's 2026 authorized cost of long-term debt and preferred equity are 4.71% and 6.89%, respectively. Based on the approved capital structure and costs, SCE's weighted average return on rate base for 2026 will be 7.59%. Based on the revenue requirement approved in SCE's 2025 GRC, the final decision will decrease SCE's revenue requirement in 2026 by approximately $51 million compared to the previously authorized cost of capital. The decision maintains the existing cost of capital adjustment mechanism. For information on the cost of capital adjustment mechanism, see "Business—SCE—Overview of Ratemaking Process."
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
SCE's capital expenditure forecast has been updated to reflect planned CPUC-jurisdictional spending as informed by the 2025 GRC final decision and expected FERC capital expenditures.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In addition, from 2022 to 2025, CAISO released its annual transmission plans approving projects to be constructed by SCE, with total anticipated capital expenditures of approximately $3 billion, of which approximately $1 billion is included in the table above. As part of its 2025-2026 Transmission Planning Process, CAISO is reassessing certain SCE projects from the 2022-2023 Transmission Plan and plans to provide its recommendation by May 2026.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
SCE's authorized CPUC-jurisdictional rate base is determined through the GRC and other regulatory proceedings. Differences between actual and CPUC-authorized rate base are addressed in subsequent GRCs or other regulatory proceedings. FERC-jurisdictional rate base is determined based on actual capital expenditures.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Reflected below is SCE's weighted average annual rate base for 2025 – 2030, based on the capital expenditure forecasts discussed above. In addition, the table below does not reflect the SB 254 Excluded Capital Expenditures, which SCE plans to recover through the issuance of securitized bonds. For further information, see "Business—Southern California Wildfires— Recovery of Wildfire-Related Costs—California Wildfire Legislation—Excluded Capital Expenditures."
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In 2025, a Continuation Account within the Wildfire Fund was established under SB 254 to supplement the Initial Account within the Wildfire Fund that was established in 2019. In recognition of the need for further action, SB 254 requires the administrator of the Wildfire Fund to submit to the California legislature and the governor, by April 1, 2026, a report that evaluates and sets forth recommendations on new models or approaches that mitigate damage, accelerate recovery, and responsibly and equitably allocate the burdens from natural catastrophes, including wildfires, across stakeholders, to complement or replace the Wildfire Fund. While Edison International and SCE continue to pursue legislative strategies to address California investor-owned utilities' exposure to wildfire-related liabilities, they cannot predict whether or when there will be a comprehensive economy-wide solution mitigating the significant risk faced by California investor-owned utilities related to wildfires.
Read it in 10-K 2026-02-18 at sec.gov ↗
RemovedMD&A
1Charges of $4 million and $6 million related to claims from wildfires ignited prior to July 1, 2023 were included in core earnings in 2023 and 2022, respectively. Core earnings in periods before the third quarter of 2023 have not been recast to exclude these charges.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
•Insurance recovery of $10 million ($7 million after-tax) recorded in 2023, related to settlement of an employment litigation matter. SCE and Edison International settled the matter following an atypical jury award.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
adapting to climate change through system hardening to reduce wildfire risk. In its 2025 GRC, SCE proposed climate adaptation investments to address wildfire and physical risks that could occur by 2030.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
SCE filed its 2025 GRC application with the CPUC in May 2023, for the four-year period of 2025 – 2028. In its application, SCE requested that the CPUC authorize a test year 2025 revenue requirement of approximately $10.3 billion. This represents a $1.9 billion, or 23%, increase over the approximately $8.4 billion 2024 revenue requirement adopted in Track 4, prior to adjustments for updated operations and maintenance escalation rates, the CPUC's decisions to adopt SCE's 2023 - 2025 cost of capital, and the expanded use of customer-funded self-insurance for wildfire-related claims.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In February 2024, intervenors to the 2025 GRC proceeding, including Cal Advocates and The Utility Reform Network ("TURN"), submitted testimony in response to SCE's application. Cal Advocates and TURN recommended reductions to SCE's requests for load growth investments, infrastructure replacement, targeted undergrounding of conductors, and other areas of SCE's application.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Cal Advocates in its testimony proposed a test year 2025 revenue requirement of approximately $9.3 billion, representing an increase of approximately 11% over the 2024 revenue requirement adopted in Track 4, before the adjustments described above. While TURN did not calculate a test year 2025 revenue requirement in connection with its proposals in its testimony, SCE estimates that TURN's proposals would result in a test year 2025 revenue requirement of approximately 12% over the 2024 revenue requirement adopted in Track 4, before the adjustments described above.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In June 2024, following amendments and other revisions to rebuttal testimony, SCE updated its 2025 revenue requirement request to $10.5 billion, and proposed post-test year revenue requirement increases of approximately $670 million, $750 million and $730 million in 2026, 2027, and 2028, respectively. The updated 2025 revenue requirement included a $220 million increase associated with the cost of capital adjustment authorized by the CPUC in a separate proceeding, which was subsequently modified by a CPUC decision in October 2024, as discussed in "—Cost of Capital."
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In July 2024, the CPUC issued a decision approving SCE's request in the 2025 GRC to extend the customer-funded wildfire self-insurance through the 2025 GRC period.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In October 2024, the CPUC approved the establishment of a memorandum account to track changes in the revenue requirement between January 1, 2025, and the implementation date of the final decision. While SCE and certain parties have entered into stipulations to resolve certain contested areas in the 2025 GRC, SCE cannot predict the revenue requirement the CPUC will ultimately authorize or forecast the timing of a final decision. SCE expects to recognize revenue based on the 2024 authorized revenue requirement, adjusted to reflect the 2025 CPUC-authorized ROE as discussed in "—Cost of Capital," until a GRC decision is issued.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
The cost of capital adjustment mechanism set by the CPUC provides for an adjustment to SCE's authorized cost of capital that, when triggered, will impact SCE's results of operations and cash flows. In 2023, the cost of capital adjustment mechanism was triggered and resulted in an increase to SCE's CPUC-authorized ROE from 10.05% to 10.75% effective January 1, 2024. The resulting increase to SCE's 2024 GRC-related revenue requirement was $201 million. The cost of capital adjustment mechanism was not triggered in 2024. In October 2024, the CPUC issued a decision modifying the cost of capital adjustment mechanism that changed the mechanism's adjustment ratio from 50% to 20%. This modification was also applied to the increase that was most recently triggered in 2023, effective on January 1, 2025. As a result, SCE's 2025 CPUC-authorized ROE was adjusted to 10.33%. The decision reduces SCE's updated 2025 GRC-related revenue requirement by approximately $117 million. For further information, see "—2025 General Rate Case." For additional information on cost of capital and the ratemaking process, see "Business—SCE—Overview of Ratemaking Process—CPUC."
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
SCE expects to file its regularly scheduled cost of capital application in March 2025 for rates effective for 2026 – 2028.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In connection with the 2025 GRC, SCE forecasts capital expenditures of $26.6 billion to $31.5 billion for 2025 – 2028. In the absence of a 2025 GRC decision, SCE has developed, and is executing against, a capital expenditure plan that is expected to allow SCE to meet what is ultimately authorized in the 2025 GRC decision while minimizing the associated risk of unauthorized spending.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedMD&A
In April 2024, December 2025, SCE filed its 2024 WMCE Filing, seeking to recover incremental operating and maintenance expenses of $320 $55 million and incremental capital expenditures of $702 $78 million, primarily associated with 2019 – 2023 WCCP capital expenditures recorded in the wildfire risk mitigation balancing account, 2023 operations and maintenance and capital expenditures as well as incremental to amounts authorized in wildfire mitigation accounts and the vegetation management balancing account, storm-related costs associated with certain 2020 2017 – 2022 2021 events recorded in the catastrophic event memorandum account, and certain wildfire liability insurance premium expenses recorded in the wildfire expense memorandum account, which were denied without prejudice in a previous decision. account.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Years ended December 31, Change (in millions) 2025 2024 2023 2022 Issuances of long-term debt, 2025 vs. 2024 Long-term debt issued, net of discount and insurance issuance costs $ 4,593 $ 4,214 $ 3,588 $ 5,032 379 Long-term debt repaid (1,252) (2,201) (2,098) (385) 949 Short-term debt borrowed 410 — 706 — 410 Short-term debt repaid (129) (386) (1,051) (1,543) 257 Commercial paper financing, net (504) 94 963 (406) (598) Preference stock issued, net of issuance cost — 345 542 — (345) Preference stock redeemed (504) (628) — — 124 Capital contributions from Edison International Parent — 500 — 1,400 (500) Payment of common stock dividends to Edison International Parent (2,220) (1,440) (1,400) (1,300) (780) Payment of preference stock dividends (136) (168) (117) (110) 32 Other 11 (16) 49 36 27 Net cash provided by financing activities $ 269 $ 314 $ 1,182 $ 2,724 (45)
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
SCE's credit ratings may be affected if, among other things, regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner, or the Wildfire Insurance Fund is materially depleted, or Additionally, a persistent increase in the frequency and severity of severe wildfires in California leads may lead the credit rating agencies to reassess SCE's wildfire-related operational risk exposure or believe the Wildfire Insurance Fund is at risk of a material depletion.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Edison International and SCE provide disclosures for For material contingencies when there is a reasonable possibility that a loss or an additional loss may be incurred. incurred, Edison International and SCE disclose the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Under the TKM Settlement Agreement, As a result, SCE is authorized to recover 60%, or recorded cost recoveries through CPUC electric rates of approximately $1.6 $2.0 billion, of approximately $2.7 $5.6 billion of losses, consisting of approximately $1.3 $1.6 billion of uninsured claims paid as of May 31, 2024, 2025, and $0.3 $0.4 billion of associated costs, composed of legal and financing costs incurred paid as of May 31, 2024, 2025, and estimated ongoing financing costs.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
If SCE incurs will be reimbursed for losses incurred in excess of $1.0 billion for eligible claims for third-party damages related to the Eaton Fire, SCE will be reimbursed for such losses Fire from the Wildfire Insurance Fund, Initial Account, subject to approval of the fund administrator and the Wildfire Insurance Fund’s Initial Account's claims-paying capacity, initially approximately $21 billion for all three participating utilities. capacity.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Years ended December 31, Change (in millions) 2025 2024 2023 2022 2025 vs. 2024 Net cash provided by used in operating activities $ 5,383 (352) $ 3,681 (369) $ 3,319 17 Net cash provided by financing activities 314 1,182 2,724 302 360 (58) Net cash used in investing activities (5,530) (5,231) (5,557) (6) (6) — Net increase (decrease) decrease in cash, cash equivalents and restricted cash $ 167 (56) $ (368) (15) $ 486 (41)
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
If the CPUC finds that a utility’s SCE's conduct related to the ignition of the Eaton Fire was not prudent, it may nevertheless allow cost recovery in full or in part taking into account factors both within and beyond the utility's SCE's control that may have exacerbated the costs costs, including, for example, winds, humidity, temperature, emergency response, evacuation timing and expenses, including humidity, temperature and winds. availability of firefighting resources.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
An increase A decrease in depreciation and amortization expense other income, net of $74 $46 million was primarily due to an increase of $57 million primarily lower interest income driven by higher plant balances lower balancing account undercollection balances, and $17 $4 million of higher pass-through costs (offset in "Operating Revenue" above).
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
An increase in property and other taxes expense of $54 $42 million was primarily due to an increase of $26 million primarily related to higher assessed property values and $28 values, $11 million of which were pass-through costs mainly associated with wildfire mitigation costs and utility owned energy storage projects (offset in "Operating Revenue" above).
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
At December 31, 2024, 2025, SCE's power and gas trading counterparty credit risk exposure was $110 $3 million, 99.8% 31.7% of which was associated with entities to counterparties with an investment grade rating of A or higher. higher and 67.2% was associated with a CPUC approved electronic broker and exchange platform operating under a rigorous risk management framework.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
An increase in depreciation and amortization expense of $74 $368 million was primarily due to an increase of $57 million primarily driven by higher plant balances and $17 balances, $108 million of which were pass-through costs mainly associated with wildfire mitigation costs and utility owned energy storage projects (offset in "Operating Revenue" above).
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesMD&A
In response to the increase in wildfire activity and faster progression of and increase in damage from wildfires across SCE's service area and throughout California, SCE has incurred wildfire mitigation and wildfire and drought restoration related spending at levels significantly exceeding amounts authorized in SCE's GRCs.
Read it in 10-K 2026-02-18 at sec.gov ↗
