--- ticker: EIX company: Edison International filing_type: 10-K year_current: 2025 year_prior: 2024 risks_added: 32 risks_removed: 65 risks_modified: 36 risks_unchanged: 22 source: SEC EDGAR url: https://riskdiff.com/eix/2025-vs-2024/ markdown_url: https://riskdiff.com/eix/2025-vs-2024/index.md generated: 2026-06-01 --- # Edison International: 10-K Risk Factor Changes 2025 vs 2024 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 32 | | Risks removed | 65 | | Risks modified | 36 | | Unchanged | 22 | --- ## New in Current Filing: RISKS RELATING TO EDISON INTERNATIONAL Edison International's liquidity and ability to pay dividends depends on its ability to borrow funds, access to bank and capital markets, monetization of tax benefits held by Edison International, and SCE's ability to pay dividends and tax allocation payments to Edison International. Edison International is a holding company and, as such, it has no material operations of its own. Edison International's ability to meet its financial obligations, make investments, and to pay dividends on its common stock is primarily dependent on the earnings and cash flows of SCE and SCE's ability to make upstream distributions. If SCE does not make upstream distributions to Edison International and Edison International is unable to access the bank and capital markets on reasonable terms, Edison International may be unable to continue to pay dividends to its shareholders or meet its financial obligations. Prior to paying dividends to Edison International, SCE has financial and regulatory obligations that must be satisfied, including, among others, debt service and preference stock dividends. Further, Edison International and SCE cannot pay dividends if California law requirements for the declaration of dividends are not met. For information on CPUC and California law requirements related to the declaration of dividends, see "Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies - SCE Dividends." SCE may also owe tax-allocation payments to Edison International under applicable tax-allocation agreements. Edison International's ability to obtain financing, as well as its ability to refinance debt and make scheduled payments of principal and interest, are dependent on numerous factors, including its levels of indebtedness, maintenance of acceptable credit ratings, financial performance, liquidity and cash flow, and other market conditions. In addition, the factors affecting 34 34 34 Table of Contents Table of Contents SCE's business will impact Edison International's ability to obtain financing. Edison International's inability to borrow funds from time to time could have a material effect on Edison International's liquidity and operations. See "Risks Relating to Southern California Edison Company" below for further discussion. --- ## New in Current Filing: SCE's financial results depend upon its ability to recover its costs and to earn a reasonable rate of return on capital investments in a timely manner from its customers through regulated rates. SCE's ongoing financial results depend on its ability to recover its costs from its customers, including the costs of electricity purchased for its customers, through the rates it charges its customers as approved by the CPUC and FERC. SCE's financial results also depend on its ability to earn a reasonable return on capital, including long-term debt and equity. SCE's ability to recover its costs and earn a reasonable rate of return can be affected by many factors, including the time lag between when costs are incurred and when those costs are recovered in customers' rates and differences between the forecast or authorized costs embedded in rates (which are set on a prospective basis) and the amount of actual costs incurred. 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 recovery of such costs. For example, SCE has incurred, and expects to further incur, wildfire mitigation expenses before it is clear whether such costs will be recoverable from customers. Also, the CPUC may deny recovery of costs incurred by SCE, including uninsured wildfire-related costs, if the CPUC determines that SCE was not prudent. For further information on recovery of uninsured wildfire-related costs see "Business - Southern California Wildfires - Recovery of Wildfire-Related Costs" and "Management Overview - Southern California Wildfires and Mudslides" in the MD&A. In addition, while SCE supports California's environmental goals, it may be prevented from fully executing on its strategy to support such goals by regulatory delay or lack of approval of cost-recovery for the costs of such strategic actions and electrification programs from the relevant regulatory agencies, including as a result of customer affordability concerns. For example, the CPUC issued a decision denying SCE's Building Electrification Program Application, citing, among other things, a desire to avoid increasing rates. SCE's CPUC authorized return on investment is established by multiplying an authorized rate of return, determined by the CPUC in standalone cost of capital proceedings, by SCE's authorized CPUC rate base. SCE's CPUC-authorized cost of capital is subject to potential adjustment should interest rates move substantially in years between cost of capital proceedings. SCE's authorized return on its transmission assets is established by multiplying an authorized rate of return, determined by the FERC, by SCE's transmission rate base. For further information see "Business - SCE - Overview of Ratemaking Process." SCE's capital investment plan, increasing procurement of renewable power and energy storage, inflation, commodity price volatility, increasing self-generation, load departures to CCAs or Electric Service Providers, and increasing environmental regulations, among other things, collectively place continuing upward pressure on customer rates. As customer rates increase, the CPUC may face greater pressure to approve lesser amounts in SCE's ratemaking or cost recovery proceedings. To relieve some of this upward rate pressure, the CPUC may authorize lower revenues, or increase the period over which SCE is allowed to recover amounts, or disallow the recovery of SCE's cost which could impact SCE's ability to recover its operating costs timely or at all. If SCE is unable to obtain a sufficient rate increase or modify its rate design to recover its costs and an adequate return on capital in rates in a timely manner, its financial condition and results of operations could be materially affected. --- ## New in Current Filing: SCE's financial condition and results of operations could be materially affected if it is unable to successfully manage the risks inherent in constructing, operating, and maintaining its facilities and workforce. 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, 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 38 38 38 Table of Contents Table of Contents 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, maintaining physical security of workforce and assets, maintaining cybersecurity of data and assets, and delays and interruptions in necessary supplies, including key components necessary for the timely construction of utility owned storage. 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. SCE's financial condition and results of operations could also be materially affected if SCE is unable to attract, train and retain a qualified workforce, and provide safe working conditions for its workforce, including its operations and management personnel. Constrained labor market in California and nationally and SCE's relations with its unionized workforce also impact SCE's ability to maintain its workforce. For example, the increased electrification efforts in California and nationally have led to greater competition for certain skilled workers. --- ## New in Current Filing: Consolidated Statements of IncomeEdison International Years ended December 31,(in millions, except per-share amounts)202420232022Operating revenue$17,599 $16,338 $17,220 Purchased power and fuel5,209 5,486 6,375 Operation and maintenance5,172 4,138 4,724 Wildfire-related claims, net of insurance recoveries652 667 1,313 Wildfire Insurance Fund expense146 213 214 Depreciation and amortization2,866 2,635 2,561 Property and other taxes624 571 501 Impairment, net of other operating income - 1 49 Total operating expenses14,669 13,711 15,737 Operating income2,930 2,627 1,483 Interest expense(1,869)(1,612)(1,169)Other income, net502 500 348 Income before income taxes1,563 1,515 662 Income tax expense (benefit)17 108 (162)Net income1,546 1,407 824 Less: Preference stock dividend requirements of SCE175 123 107 Preferred stock dividend requirements of Edison International87 87 105 Net income available to Edison International common shareholders1,284 1,197 612 Basic earnings per share:Weighted average shares of common stock outstanding386383381Basic earnings per common share available to Edison International common shareholders$3.33$3.12$1.61Diluted earnings per share:Weighted average shares of common stock outstanding, including effect of dilutive securities388385383Diluted earnings per common share available to Edison International common shareholders$3.31$3.11$1.60 The accompanying notes are an integral part of these consolidated financial statements. 49 49 49 Table of Contents Table of Contents --- ## New in Current Filing: Consolidated Statements of IncomeSouthern California Edison Company Years ended December 31,(in millions)202420232022Operating revenue$17,547 $16,275 $17,172 Purchased power and fuel5,209 5,486 6,375 Operation and maintenance5,064 4,071 4,659 Wildfire-related claims, net of insurance recoveries647 665 1,305 Wildfire Insurance Fund expense146 213 214 Depreciation and amortization2,865 2,633 2,559 Property and other taxes620 566 497 Impairment, net of other operating income - 1 50 Total operating expenses14,551 13,635 15,659 Operating income2,996 2,640 1,513 Interest expense(1,575)(1,356)(1,005)Other income, net493 497 337 Income before income taxes1,914 1,781 845 Income tax expense (benefit)120 184 (109)Net income1,794 1,597 954 Less: Preference stock dividend requirements175 123 107 Net income available for common stock$1,619 $1,474 $847 The accompanying notes are an integral part of these consolidated financial statements. --- ## New in Current Filing: Segment Information The President and Chief Executive Officer ("CEO") of Edison International, as the chief operating decision maker ("CODM"), assesses Edison International's performance and allocates resources based on its net income. This measure is reported as "Net income attributable to Edison International common shareholders" on Edison International's consolidated statements of income. The President and CEO of SCE, as its CODM, evaluates SCE's performance and allocates resources based on "Net income available for common stock" reported on SCE's consolidated statements of income. These net income measures are used by the Edison International and SCE CODMs to compare earnings from period to period and facilitate their respective assessment of performance of Edison International and SCE. The CODMs also use core earnings (loss) for financial planning and for additional analyses of performance. Core earnings (loss) is a non-GAAP financial measure which is defined as earnings attributable to shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Edison International's and SCE's significant segment expenses agree to those disclosed in the consolidated statements of income. The measures of Edison International's and SCE's segment assets are reported on Edison International's and SCE's consolidated balance sheets, respectively, as total assets. 61 61 61 Table of Contents Table of Contents --- ## New in Current Filing: Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California which exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. The increase in the provision of uncollectible accounts and write-offs for the year ended December 31, 2024, is driven primarily by consumer protection programs. 62 62 62 Table of Contents Table of Contents The following table sets forth the changes in allowance for uncollectible accounts for SCE: (in millions)CustomersAll othersTotalBalance at December 31, 2021$293 $16 $309 Current period provision for uncollectible accounts1111 11 122 Write-offs, net of recoveries(70)(7)(77)Balance at December 31, 2022$334 $20 $354 Current period provision for uncollectible accounts1109 6 115 Write-offs, net of recoveries(96)(9)(105)Balance at December 31, 2023²$347 $17 $364 Current period provision for uncollectible accounts1278 12 290 Write-offs, net of recoveries(253)(11)(264)Balance at December 31, 2024²$372 $18 $390 Current period provision for uncollectible accounts1 Current period provision for uncollectible accounts1 Current period provision for uncollectible accounts1 1This includes $222 million, $78 million, and $40 million of incremental costs for the years ended December 31, 2024, 2023, and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. 2Approximately $43 million and $4 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of December 31, 2024 and 2023 respectively. Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost or net realizable value when appropriate. --- ## New in Current Filing: Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate. Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes, and a reasonable estimate of the disallowance amount can be made. Upon approval of the TKM Settlement Agreement, SCE will record an impairment charge of approximately $10 million in the first quarter of 2025. For further information on the TKM Settlement Agreement, see "Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." --- ## New in Current Filing: Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from the differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Interest income, interest expense, and penalties associated with income taxes are generally reflected in "Income tax expense (benefit)" on the consolidated statements of income. Investment tax credits are generally deferred and amortized to income tax expense over the lives of the related properties. The scope of projects eligible for investment tax credits was expanded in 2023 to include standalone energy storage projects. The Inflation Reduction Act provided an election that permits investment tax credits related to standalone energy storage projects to be returned to utility customers over a period that is shorter than the life of the related property. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. 70 70 70 Table of Contents Table of Contents Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. --- ## New in Current Filing: Severance Costs Severance costs are recorded when it is probable that employees will be entitled to benefits under an existing plan and the amount can be reasonably estimated. As a result of current and probable reductions in workforce, SCE recorded estimated severance costs of $53 million for the year ended December 31, 2024. Severance costs are included in "Operation and maintenance" on the consolidated statements of income. The severance costs are partially offset by $3 million expected FERC recovery, which is recorded in "Operating Revenue" on the consolidated statements of income. --- ## New in Current Filing: Capitalized Software Costs SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over their useful lives, primarily 5 and 7 year lives, commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.5 billion and $2.1 billion at December 31, 2024 and 2023, respectively, and accumulated amortization was $1.1 billion and $0.9 billion, at December 31, 2024 and 2023, respectively. Amortization expense for capitalized software was $416 million, $358 million, and $344 million in 2024, 2023, and 2022, respectively. At December 31, 2024, amortization expense is estimated to be $428 million, $371 million, $288 million, $186 million, and $72 million for 2025 through 2029, respectively. 71 71 71 Table of Contents Table of Contents --- ## New in Current Filing: Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: December 31, 2024December 31, 2023(in millions)CarryingValue1FairValue2CarryingValue1FairValue2Edison International$35,583 $33,160 $33,013 $31,315 SCE30,515 27,994 28,494 26,712 Carrying Value1 Fair Value2 Carrying Value1 Fair Value2 1Carrying value is net of debt issuance costs. 2The fair value of long-term debt is classified as Level 2. --- ## New in Current Filing: Long-Term Debt The following table summarizes long-term debt (rates and terms are as of December 31, 2024) of Edison International and SCE: December 31,(in millions)20242023Edison International Parent and Other:Debentures and notes:2025 - 2054 (4.125% to 8.125%)$5,100 $4,550 Current portion of long-term debt(800)(500)Unamortized debt discount/premium and issuance costs, net(32)(31)Total Edison International Parent and Other4,268 4,019 SCE:First and refunding mortgage bonds:2025 - 2053 (1.20% to 6.05%)27,400 24,700 Pollution-control bonds:2028 - 2035 (1.45% to 4.50%)752 752 Debentures and notes:2029 - 2053 (5.06% to 6.65%)306 306 Senior secured recovery bonds1:2028 - 2047 (0.86% to 5.11%)1,532 1,579 Other long-term debt2706 1,322 Current portion of long-term debt(1,249)(2,197)Unamortized debt discount/premium and issuance costs, net(181)(165)Total SCE29,266 26,297 Total Edison International$33,534 $30,316 2025 - 2054 (4.125% to 8.125%) 2025 - 2053 (1.20% to 6.05%) 2028 - 2035 (1.45% to 4.50%) 2029 - 2053 (5.06% to 6.65%) Senior secured recovery bonds1: 2028 - 2047 (0.86% to 5.11%) Other long-term debt2 1The senior secured recovery bonds are payable only from and secured by the Recovery Property at SCE Recovery Funding LLC, and do not constitute a debt or other legal obligation of, or interest in, SCE or any of its affiliates, except for SCE Recovery Funding LLC. For further details, see Note 3. 2Subsequent to December 31, 2024 and 2023, SCE issued first and refunding mortgage bonds which were used to partially pay down its commercial paper balance. As a result, SCE included the paydown amount of $706 million and $722 million in other long-term debt at December 31, 2024 and 2023, respectively. The 2023 amount also includes a $600 million term loan with an interest rate of adjusted term secured overnight financing rate ("SOFR") plus 0.90% that matured in 2024. Edison International and SCE long-term debt maturities over the next five years are as follows: 76 76 76 Table of Contents Table of Contents (in millions)EdisonInternationalSCE2025$2,049 $1,249 20261,900 1,900 20272,501 1,901 20282,942 1,792 20293,363 2,313 --- ## New in Current Filing: Debt Financing Subsequent to December 31, 2024 In January 2025, SCE issued $850 million of 5.45% first and refunding mortgage bonds due in 2035 and $650 million of 5.90% first and refunding mortgage bonds due in 2055. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. --- ## New in Current Filing: Liens and Security Interests Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio to be less than or equal to 0.65 to 1. At December 31, 2024, SCE's debt to total capitalization ratio was 0.58 to 1 and was in compliance with all other financial covenants that affect access to capital. Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.70 to 1. At December 31, 2024, Edison International consolidated debt to total capitalization ratio was 0.65 to 1. --- ## New in Current Filing: Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at December 31, 2024: (in millions, except for rates)BorrowerTermination DateSOFR plus (bps)CommitmentOutstanding borrowingsOutstanding letters of creditAmount availableEdison International Parent1, 3May 2028128$1,500 $445 $ - $1,055 SCE2, 3May 20281083,350 1,260 6 2,084 Total Edison International$4,850 $1,705 $6 $3,139 Edison International Parent1, 3 SCE2, 3 1At December 31, 2024 and 2023, Edison International Parent had $444 million and $246 million outstanding commercial paper, net of discount of $1 million and zero, at a weighted-average interest rate of 4.86% and 5.82%, respectively. 2At December 31, 2024 and 2023, SCE had $1,259 million and $1,554 million outstanding commercial paper, net of discount of $1 million and $4 million, at a weighted-average interest rate of 4.95% and 5.82%, respectively. This includes $706 million and $722 million, at December 31, 2024 and 2023, respectively, outstanding commercial paper reclassified from "Short-term debt" to "Long-term debt" on the consolidated balance sheets, due to subsequent debt refinancing. 3 The aggregate maximum principal amount under the Edison International Parent and SCE revolving credit facilities may be increased up to $2.0 billion and $4.0 billion, respectively, provided that additional lender commitments are obtained. In May 2024, Edison International Parent and SCE amended their credit facilities to extend the maturity date to May 2028, with additional one-year extension options. --- ## New in Current Filing: Uncommitted Letters of Credit SCE has agreements with certain lenders for bilateral unsecured standby letters of credit ("SBLC") with a total capacity of $625 million that is uncommitted and supported by reimbursement agreements. The SBLCs are not subject to any collateral or security requirements. At December 31, 2024, SCE had $118 million in standby letters of credit outstanding under these agreements, which expire between January and December 2025. The unused capacity under these agreements was $507 million. --- ## New in Current Filing: Note 6. Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk resulting from SCE's electricity and natural gas procurement activities. The risks of fluctuating commodity prices are managed in part by entering into forward commodity transactions, including options, swaps, and futures. To mitigate credit risk from counterparties in the event of 77 77 77 Table of Contents Table of Contents nonperformance, master netting agreements are used whenever possible, and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The fair value of these derivative contracts and any related collateral were immaterial as of December 31, 2024 and 2023. SCE presents its derivative assets and liabilities, recorded at fair value, on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: December 31, 2024(in millions)Derivative AssetsShort-Term1Derivative LiabilitiesShort-Term2Commodity derivative contractsGross amounts recognized$213 $47 Gross amounts offset in the consolidated balance sheets(1)(1)Cash collateral posted - (46)Net amounts presented in the consolidated balance sheets$212 $ - Derivative Assets Short-Term1 Derivative Liabilities Short-Term2 December 31, 2023(in millions)Derivative AssetsShort-Term1Derivative LiabilitiesShort-Term2Commodity derivative contractsGross amounts recognized$94 $77 Gross amounts offset in the consolidated balance sheets(3)(3)Cash collateral posted - (74)Net amounts presented in the consolidated balance sheets$91 $ - Derivative Assets Short-Term1 Derivative Liabilities Short-Term2 1Included in "Other current assets" on SCE's consolidated balance sheets. 2Included in "Other current liabilities" on SCE's consolidated balance sheets. 2 At December 31, 2024, SCE posted $74 million of cash collateral, of which $46 million was offset against derivative liabilities and $28 million was reflected in "Other current assets" on the consolidated balance sheets. --- ## New in Current Filing: Financial Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and unrealized gains and losses as regulatory assets or liabilities. Both realized and unrealized gains and losses are expected to be recovered from customers and therefore do not affect earnings. Cash flows from derivative activities, including cash collateral, are reported in cash flows from operating activities in SCE's consolidated statements of cash flows. The following table summarizes the gains/(losses) of SCE's economic hedging activity: Years ended December 31,(in millions)202420232022Realized$(409)$(14)$178 Unrealized149 (322)310 78 78 78 Table of Contents Table of Contents --- ## New in Current Filing: Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE's economic hedging activities: Economic HedgesUnit ofMeasureDecember 31,Commodity20242023Electricity options, swaps and forwardsGigawatt hours3,2953,494Natural gas options, swaps and forwardsBillion cubic feet431Congestion revenue rightsGigawatt hours8,14135,011 --- ## New in Current Filing: Note 7. Revenue The following table is a summary of SCE's revenue:Years ended December 31,(in millions)202420232022Revenue from contracts with customers Commercial$8,000 $7,333 $7,028 Residential7,060 6,421 6,707 Other3,335 3,266 3,025 Total revenue from contracts with customer118,395 17,020 16,760 Alternative revenue program and other2(848)(745)412 Total operating revenue$17,547 $16,275 $17,172 Total revenue from contracts with customer1 Alternative revenue program and other2 1At December 31, 2024 and 2023, SCE's receivables related to contracts from customers were $2.9 billion and $2.5 billion, which included accrued unbilled revenue of $845 million and $741 million, respectively. 2Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues. --- ## New in Current Filing: Deferred Revenue As of December 31, 2024, SCE has deferred revenue of $354 million related to the sale of the use of transfer capability of West of Devers transmission line, of which $13 million and $341 million are included in "Other current liabilities" and "Other deferred credits and other long-term liabilities," respectively, on SCE's consolidated balance sheets. The deferred revenue is amortized straight-line over a period of 30 years starting 2021. --- ## New in Current Filing: Current and Deferred Taxes The components of income tax expense (benefit) by location of taxing jurisdiction are: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Current:Federal$1 $ - $2 $3 $ - $ - State7 - 13 48 5 2 8 - 15 51 5 2 Deferred:Federal59 101 (103)118 149 (44)State(50)7 (74)(49)30 (67)9 108 (177)69 179 (111)Total$17 $108 $(162)$120 $184 $(109) 79 79 79 Table of Contents Table of Contents The components of net accumulated deferred income tax liability are: Edison InternationalSCEDecember 31,(in millions)2024202320242023Deferred tax assets:Property$943 $894 $929 $877 Wildfire-related1254 356 251 354 Nuclear decommissioning trust assets in excess of nuclear ARO liability373 380 373 380 Loss and credit carryforwards23,703 3,486 2,242 2,103 Regulatory balances610 626 610 626 Pension and postretirement benefits other than pensions, net117 127 21 25 Leases335 345 335 345 Other177 159 167 147 Sub-total6,512 6,373 4,928 4,857 Less: valuation allowance317 17 - - Total6,495 6,356 4,928 4,857 Deferred tax liabilities:Property11,220 10,627 11,202 10,611 Regulatory balances1,299 1,450 1,299 1,450 Nuclear decommissioning trust assets373 380 373 380 Leases335 345 335 345 Other187 187 155 158 Total13,414 12,989 13,364 12,944 Accumulated deferred income tax liability, net4$6,919 $6,633 $8,436 $8,087 Wildfire-related1 Loss and credit carryforwards2 Less: valuation allowance3 Accumulated deferred income tax liability, net4 1Relates to estimated losses accrual for wildfire-related claims, net of expected recoveries from insurance and FERC customers, and contributions to the Wildfire Insurance Fund. For further information, see Note 12 and Note 1. 2As of December 31, 2024, unrecognized tax benefits of $397 million and $327 million for Edison International and SCE, respectively, are presented net against the deferred tax asset for the loss and tax credit carryforwards. As of December 31, 2023, the unrecognized tax benefits netted against deferred tax assets and tax credit carryforwards were $363 million and $299 million for Edison International and SCE, respectively. 3As of December 31, 2024 and 2023, Edison International has recorded $17 million valuation allowance on deferred tax assets. The $17 million valuation allowance is related to non-California state net operating loss carryforwards which are expected to expire before being utilized. 4Included in "Deferred income taxes and credits" on the consolidated balance sheets. 80 80 80 Table of Contents Table of Contents --- ## New in Current Filing: Net Operating Loss and Tax Credit Carryforwards The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison InternationalSCEDecember 31, 2024(in millions)LossCarryforwardsCreditCarryforwardsLossCarryforwardsCreditCarryforwardsExpire in 2025$7 $ - $7 $ - Expire between 2026 to 202928 - 12 - Expire between 2030 to 20441,719 699 786 290 No expiration date11,623 24 1,448 26 Total$3,377 $723 $2,253 $316 No expiration date1 1Under the Tax Cut and Jobs Act signed into law on December 22, 2017 ("Tax Reform"), net operating losses generated after December 31, 2017 can carryforward indefinitely. Edison International consolidates for federal income tax purposes, but not for financial accounting purposes, a group of wind projects referred to as Capistrano Wind. The amount of net operating loss and tax credit carryforwards recognized as part of deferred income taxes includes $107 million and $106 million related to Capistrano Wind for 2024 and 2023, respectively. The tax attributes not utilized as of December 31, 2024 will be available for the Edison International consolidated group to utilize in the future. When the remaining Capistrano tax attributes are used in the future by Edison International, payments will be made to those entities under a tax allocation agreement. Under the tax allocation agreement, Edison International has recorded a corresponding liability as part of other long-term liabilities related to its obligation to make payments to Capistrano Wind when these tax benefits are realized. --- ## New in Current Filing: Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Income from operations before income taxes$1,563 $1,515 $662 $1,914 $1,781 $845 Provision for income tax at federal statutory rate of 21%328 318 139 402 374 177 (Decrease) increase in income tax from:State tax, net of federal income tax effect(24)3 (70) - 23 (57)Property-related(279)(205)(219)(279)(205)(219)Corporate-owned life insurance cash surrender value(9)(8)(9)(9)(8)(9)Other1 - (3)6 - (1)Total income tax expense (benefit)$17 $108 $(162)$120 $184 $(109)Effective tax rate1.1 %7.1 %(24.5)%6.3 %10.3 %(12.9)% Provision for income tax at federal statutory rate of 21% The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11. In the third quarter of 2024, SCE generated an investment tax credit of approximately $231 million, primarily from 200MW and 112.5MW utility owned storage projects. The tax benefits associated with these credits will be recognized and returned to customers as the credits are utilized. 81 81 81 Table of Contents Table of Contents Under the Inflation Reduction Act of 2022, 15% corporate alternative minimum tax ("CAMT") is imposed on corporations with average adjusted financial statement income exceeding $1.0 billion over a specified 3-year period. Both Edison International and SCE are not subject to CAMT in 2024. --- ## New in Current Filing: Accounting for Uncertainty in Income Taxes Authoritative guidance related to accounting for uncertainty in income taxes requires an enterprise to recognize, in its financial statements, the best estimate of the impact of a tax position by determining if the weight of available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained upon examination. The guidance requires the disclosure of all unrecognized tax benefits, which includes both the reserves recorded for tax positions on filed tax returns and the unrecognized portion of affirmative claims. --- ## New in Current Filing: Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits: Edison InternationalSCE(in millions)202420232022202420232022Balance at January 1,$430 $646 $613 $418 $374 $340 Tax positions taken during the current year:Increases66 65 54 66 65 54 Tax positions taken during a prior year:Increases1 13 - - 4 - Decreases1(34)(294)(21)(27)(25)(20)Balance at December 31,$463 $430 $646 $457 $418 $374 Decreases1 1The Edison International decrease in 2023 was mainly related to a write-off of a reserve for a claim related to the Edison Mission Energy bankruptcy. 1 As of December 31, 2024, if recognized, $72 million of unrecognized tax benefits would impact Edison International's effective tax rate and $66 million of the unrecognized tax benefits would impact SCE's effective tax rate. --- ## New in Current Filing: Tax Disputes Tax years that remain open for examination by the Internal Revenue Service and Franchise Tax Board are 2021 - 2023 and 2013 - 2018 & 2020 - 2023, respectively. --- ## New in Current Filing: Accrued Interest and Penalties The total amount of accrued interest and penalties related to income tax liabilities are: Edison InternationalSCEDecember 31,(in millions)2024202320242023Accrued interest and penalties$ - $ - $36 $28 The net after-tax interest and penalties recognized in income tax (benefit) expense are: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Net after-tax interest and penalties tax expense$ - $ - $ - $7$4$2 82 82 82 Table of Contents Table of Contents --- ## New in Current Filing: Employee Savings Plan The 401(k) defined contribution savings plan is designed to supplement employees' retirement income. The employer contributions were as follows: EdisonInternationalSCE(in millions)Years ended December 31,2024$136 $134 2023121 119 2022103 101 --- ## New in Current Filing: Pension Plans and Postretirement Benefits Other Than Pensions Pension Plans Noncontributory defined benefit pension plans (some with cash balance features) cover most employees meeting minimum service requirements. Employees hired by the participating companies on or after December 31, 2017 are no longer eligible to participate in the pension plan. In lieu of that, an additional non-contributory employer contribution is deposited into the Edison 401(k) Savings Plan. SCE recognizes pension expense for its nonexecutive plan as calculated by the actuarial method used for ratemaking. The expected contributions (all by the employer) for Edison International and SCE are approximately $44 million and $15 million, respectively, for the year ending December 31, 2025. The majority of annual contributions made by SCE to its pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. The funded position of Edison International's pension is sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's pension are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, unrealized losses equal to the unfunded status are recorded to a regulatory asset and unrealized gains equal to the funded status are recorded to a regulatory liability. See Note 11 for further information. 83 83 83 Table of Contents Table of Contents Information on pension plan assets and benefit obligations is shown below. Edison InternationalSCEYears ended December 31,(in millions)2024202320242023Change in projected benefit obligationProjected benefit obligation at beginning of year$3,647 $3,524 $3,278 $3,159 Service cost103 101 99 97 Interest cost175 180 157 162 Actuarial (gain) loss(59)96 (47)82 Benefits paid(230)(254)(198)(222)Projected benefit obligation at end of year$3,636 $3,647 $3,289 $3,278 Change in plan assetsFair value of plan assets at beginning of year$3,609 $3,462 $3,415 $3,275 Actual return on plan assets192 369 182 349 Employer contributions37 32 17 13 Benefits paid(230)(254)(198)(222)Fair value of plan assets at end of year3,608 3,609 3,416 3,415 (Underfunded)/Overfunded status at end of year$(28)$(38)$127 $137 Amounts recognized in the consolidated balance sheets consist of 1:Long-term assets$166 $169 $137 $149 Current liabilities(27)(30)(1)(2)Long-term liabilities(167)(177)(9)(10)$(28)$(38)$127 $137 Amounts recognized in accumulated other comprehensive loss consist of:Net loss$8 $21 $13 $8 Amounts recognized as a regulatory liability(146)(159)(133)(159)Accumulated benefit obligation at end of year$3,508 $3,495 $3,172 $3,136 Pension plans with plan assets in excess of an accumulated benefit obligation:Projected benefit obligation3,636 3,647 3,289 3,278 Accumulated benefit obligation3,508 3,495 3,172 3,136 Fair value of plan assets3,608 3,609 3,416 3,415 Weighted average assumptions used to determine obligations at end of year:Discount rate5.56%5.04%5.56%5.04%Rate of compensation increase4.00%4.00%4.00%4.00% Amounts recognized in the consolidated balance sheets consist of 1: Net loss 1The SCE liability excludes a long-term payable due to Edison International Parent of $88 million and $94 million at December 31, 2024 and 2023, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. 1 For Edison International and SCE, respectively, the 2024 actuarial gains are primarily related to $159 million and $146 million from an increase of 52 basis points in the discount rate (from 5.04% as of December 31, 2023 to 5.56% as of December 31, 2024). For Edison International and SCE, respectively, the 2023 actuarial losses are primarily related to $96 million and $92 million in losses from a decrease of 32 basis points in the discount rate (from 5.36% as of December 31, 2022 to 5.04% as of December 31, 2023). 84 84 84 Table of Contents Table of Contents Net periodic pension expense components are: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Service cost$103 $101 $120 $101 $99 $118 Non-service cost (benefit)Interest cost175 180 111 162 166 101 Expected return on plan assets(232)(214)(227)(219)(202)(215)Settlement costs - - 4 - - 4 Amortization of prior service cost - - - - - - Amortization of net loss4 3 5 2 2 2 Regulatory adjustment(23)(47)6 (22)(47)6 Total non-service benefit1(76)(78)(101)(77)(81)(102)Total expense$27 $23 $19 $24 $18 $16 Total non-service benefit1 1Included in "Other income" on Edison International's and SCE's consolidated income statements. For further details, see Note 16. Other changes in pension plan assets and benefit obligations recognized in other comprehensive income: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Net (gain) loss$(9)$6 $(45)$(2)$6 $(24)Settlement charges - - (4) - - (4)Amortization of net gain(4)(2)(8)(2)(2)(5)Total (gain) loss recognized in other comprehensive income(13)4 (57)(4)4 (33)Total recognized in expense and other comprehensive income$14 $27 $(38)$20 $22 $(17) In accordance with authoritative guidance on rate-regulated enterprises, SCE records amortization of net gains and losses into regulatory assets and liabilities instead of charges and credits to other comprehensive income for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. Edison International and SCE used the following weighted average assumptions to determine pension expense: Years ended December 31,202420232022Discount rate5.04 %5.36 %2.75 %Rate of compensation increase4.00 %4.00 %4.00 %Expected long-term return on plan assets6.75 %6.50 %5.50 %Interest crediting rate for cash balance account1:Starting rate5.54 %5.86 %3.12 %Ultimate rate5.54 %5.86 %4.50 %Year ultimate rate is reached202420232026 Interest crediting rate for cash balance account1: 1Edison International and SCE were using a graduated assumption for interest crediting rate for cash balance account, where current interest rate gradually increased to an ultimate rate at a certain year. Starting 2023, Edison International and SCE changed to use single interest crediting rate assumption to determine the pension expense for cash balance account. 85 85 85 Table of Contents Table of Contents The following benefit payments, which reflect service rendered and expected future service, are expected to be paid: (in millions)EdisonInternationalSCE2025$332$29120263443012027338304202833229920293242942030 - 20341,4961,370 PBOP(s) Employees hired prior to December 31, 2017 who retire at or after age 55 with at least 10 years of service may be eligible for postretirement healthcare benefits. Eligibility for a company contribution toward the cost of these benefits in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Employees hired on or after December 31, 2017 are no longer eligible for retiree healthcare benefits. In lieu of those benefits, Edison International will provide a health reimbursement account of $200 per month available only after meeting certain age and service year requirements. Under the terms of the Edison International Welfare Benefit Plan ("PBOP Plan"), each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of PBOP Plan benefits with respect to its employees and former employees that exceed the participants' share of contributions. A participating employer may terminate the PBOP Plan benefits with respect to its employees and former employees, as may SCE (as PBOP Plan sponsor), and, accordingly, the participants' PBOP Plan benefits are not vested benefits. There are no expected contributions for PBOP benefits for the year ended December 31, 2025. Annual contributions related to SCE employees made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans. SCE has three voluntary employees' beneficiary association trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE and its subsidiaries. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently recover the remaining amounts in the VEBA Trusts. Participants of the PBOP Plan do not have a beneficial interest in the VEBA Trusts. The VEBA Trust assets are sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's other postretirement benefits are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, the funded status is offset by a regulatory liability. 86 86 86 Table of Contents Table of Contents Information on PBOP Plan assets and benefit obligations is shown below: Edison InternationalSCEYears ended December 31,(in millions)2024202320242023Change in benefit obligationBenefit obligation at beginning of year$773 $1,331 $769 $1,323 Service cost14 20 14 20 Interest cost38 67 38 67 Change in plan provisions23 - 23 - Actuarial gain(34)(567)(34)(563)Plan participants' contributions26 28 26 28 Benefits paid(99)(106)(99)(106)Benefit obligation at end of year$741 $773 $737 $769 Change in plan assetsFair value of plan assets at beginning of year$2,275 $2,187 $2,275 $2,187 Actual return on assets78 162 78 162 Employer contributions1 4 1 4 Plan participants' contributions26 28 26 28 Benefits paid(99)(106)(99)(106)Fair value of plan assets at end of year2,281 2,275 2,281 2,275 Overfunded status at end of year$1,540 $1,502 $1,544 $1,506 Amounts recognized in the consolidated balance sheets consist of:Long-term assets$1,544 $1,506 $1,544 $1,506 Current liabilities(1) - - - Long-term liabilities(3)(4) - - $1,540 $1,502 $1,544 $1,506 Amounts recognized in accumulated other comprehensive loss consist of:Net gain$(4)$(5)$ - $ - Amounts recognized as a regulatory liability(1,544)(1,505)(1,544)(1,505)Weighted average assumptions used to determine obligations at end of year:Discount rate5.60 %5.06 %5.60 %5.06 %Assumed health care cost trend rates:Rate assumed for following year6.25 %6.50 %6.25 %6.50 %Ultimate rate5.00 %5.00 %5.00 %5.00 %Year ultimate rate reached2029202920292029 For both Edison International and SCE, the 2024 actuarial gains are primarily related to $41 million in gains from the change in discount rate. For Edison International and SCE, the 2023 actuarial gains are primarily related to $553 million and $550 million in gains from the change in postretirement medical carrier and retiree medical delivery mechanism effective in 2024, respectively. 87 87 87 Table of Contents Table of Contents Net periodic PBOP expense components are: Edison InternationalSCEYears ended December 31,(in millions)202420232022202420232022Service cost$14 $20 $34 $14 $20 $34 Non-service cost (benefit)Interest cost38 67 56 38 67 55 Expected return on plan assets(113)(107)(97)(113)(107)(97)Amortization of prior service cost(1)(1)(2)(1)(1)(2)Amortization of net gain(95)(50)(45)(95)(50)(45)Regulatory adjustment157 71 55 157 71 55 Total non-service benefit1(14)(20)(33)(14)(20)(34)Total expense$ - $ - $1 $ - $ - $ - Total non-service benefit1 1Included in "Other income" on Edison International's and SCE's consolidated income statements. For further details, see Note 16. In accordance with authoritative guidance on rate-regulated enterprises, SCE records amortization of net gains and losses to regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. Edison International and SCE used the following weighted average assumptions to determine PBOP expense: Years ended December 31,202420232022Discount rate5.06%5.43%2.95%Expected long-term return on plan assets4.88%5.00%3.50%Assumed health care cost trend rates:Current year6.50%6.75%6.25%Ultimate rate5.00%5.00%5.00%Year ultimate rate reached202920292029 The following benefit payments (net of plan participants' contributions) are expected to be paid: (in millions)EdisonInternationalSCE2025$49 $48 202650 50 202754 54 202855 54 202955 55 2030 - 2034282 281 --- ## New in Current Filing: Plan Assets Description of Pension and Postretirement Benefits Other than Pensions Investment Strategies The investment of plan assets is overseen by a fiduciary investment committee. Plan assets are invested using a combination of asset classes and may have active and passive investment strategies within asset classes. Target allocations for 2024 pension plan assets were 17.3% for U.S. equities, 9.7% for non-U.S. equities, 55% for fixed income and 18% for opportunistic and/or alternative investments. Target allocations for 2024 PBOP plan assets (except for Represented VEBA which is 95% for fixed income and 5% for U.S. and non-U.S. equities) are 29% for U.S. and non-U.S. equities, 65% for fixed income and 6% for opportunistic and/or alternative investments. Edison International employs multiple investment management firms. Investment managers within each asset class cover a range of investment styles and approaches. Risk is managed through diversification among multiple asset classes, managers, styles and securities. Plan asset classes and 88 88 88 Table of Contents Table of Contents individual manager performances are measured against targets. Edison International also monitors the stability of its investment managers' organizations. Allowable investment types under CPUC investment guidelines include: •United States equities: common and preferred stocks of large, medium, and small companies which are predominantly United States-based. •Non-United States equities: equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies. •Fixed income: fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade. •Opportunistic, alternative and other investments: Opportunistic investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. Alternative investments are limited partnerships that invest in non-publicly traded entities. Other investments are diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid or illiquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. Asset class portfolio weights are permitted to range within plus or minus 5%. Where approved by the fiduciary investment committee, futures contracts are used for portfolio rebalancing and to reallocate portfolio cash positions. Where authorized, a few of the plans' investment managers employ limited use of derivatives, including futures contracts, options, options on futures and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. Derivatives are not used to leverage the plans or any portfolios. Determination of the Expected Long-Term Rate of Return on Assets The overall expected long-term rate of return on assets assumption is based on the long-term target asset allocation for plan assets and capital markets return forecasts for asset classes employed. A portion of the PBOP trust asset returns is subject to taxation, so the expected long-term rate of return for these assets is determined on an after-tax basis. Capital Markets Return Forecasts Edison International's capital markets return forecast methodologies primarily use a combination of historical market data, current market conditions, proprietary forecasting expertise, complex models to develop asset class return forecasts, and a building block approach. The forecasts are developed using variables such as real risk-free interest, inflation and asset class specific risk premiums. For equities, the risk premium is based on an implied average equity risk premium of 4% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 3% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based on a comprehensive modeling of credit spreads. Fair Value of Plan Assets The PBOP Plan and the Southern California Edison Company Retirement Plan Trust assets include investments in equity securities, U.S. treasury securities, other fixed-income securities, common/collective funds, mutual funds, other investment entities, foreign exchange and interest rate contracts, and partnership/joint ventures. Equity securities, U.S. treasury securities, and mutual and money market funds are classified as Level 1 as fair value is determined by observable, unadjusted quoted market prices in active or highly liquid and transparent markets. The fair value of the underlying investments in equity mutual funds are based on stock-exchange prices. The fair value of the underlying investments in fixed-income mutual funds and other fixed income securities including municipal bonds are based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers, and relevant credit information. Foreign exchange and interest rate contracts are classified as Level 2 because the values are based on observable prices but are not traded on an exchange. Futures contracts trade on an exchange and therefore are classified as Level 1. No investment is classified as Level 3 as of December 31, 2024 and 2023. Common/collective funds and partnerships are measured at fair value using the net asset value per share ("NAV") and have not been classified in the fair value hierarchy. Other investment entities are valued similarly to common/collective funds and are therefore classified as NAV. The Level 1 registered investment companies are either mutual or money market funds. The remaining funds in this category are readily redeemable and classified as NAV and are discussed further in the below pension plan trust investments table's note 8. --- ## No Match in Current: There are inherent risks associated with owning and decommissioning nuclear power generation facilities and obtaining cost reimbursement, including, among other things, insufficiency of nuclear decommissioning trust funds, costs exceeding current estimates, execution risks, potential harmful effects on the environment and human health and the hazards of storage, handling and disposal of radioactive materials. Existing insurance and ratemaking arrangements may not protect SCE fully against losses from a nuclear incident. *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* SCE funds decommissioning costs with assets that are currently held in nuclear decommissioning trusts. Based upon the financial performance of the nuclear decommissioning trust fund investments, as well as the resolution of a number of other uncertainties, assumptions and estimates, additional contributions to the nuclear decommissioning trust's funds may be required. If additional contributions to the nuclear decommissioning trust funds become necessary, recovery of any such additional funds through electric rates is subject to the CPUC's review and approval. The costs of decommissioning San Onofre are subject to reasonableness reviews by the CPUC. These costs may not be recoverable through regulatory processes or otherwise unless SCE can establish that the costs were reasonably incurred. In addition, SCE faces inherent execution risks including such matters as the risks of human performance, workforce capabilities, public opposition, permitting delays, and governmental approvals. Decommissioning costs ultimately incurred could exceed the current estimates and cost increases resulting from contractual disputes, delays in performance by the contractor, elevated levels of inflation, or permitting delays, among other things, could cause SCE to materially overrun current decommissioning cost estimates and could materially impact the sufficiency of trust funds. See "Liquidity and Capital Resources - SCE - Decommissioning of San Onofre" in the MD&A. Even though San Onofre is being decommissioned, the presence of spent nuclear fuel still poses a potential risk of a nuclear incident. Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $16.2 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available of $450 million per site. In the case of San Onofre, the balance is covered by a U.S. Government indemnity. In the case of Palo Verde, the balance is covered by a loss sharing program among nuclear reactor licensees. There is no assurance that the CPUC would allow SCE to recover the required contribution made pursuant to this loss sharing program in the case of one or more nuclear incidents with claims that exceeded $450 million at a nuclear reactor which is participating in the program. If this public liability limit of $16.2 billion is insufficient, federal law contemplates that additional funds may be appropriated by Congress. There can be no assurance of SCE's ability to recover uninsured costs in the event the additional federal appropriations are insufficient. For more information on nuclear insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Nuclear Insurance." 46 46 Table of ContentsSCE's distribution of water and propane gas on Catalina Island involves inherent risks of damage to private property and the environment and injury to employees and the general public.SCE owns and operates the water distribution system that serves Catalina Island, California and a propane gas distribution system that serves the City of Avalon on Catalina Island, California. Production, storage, treatment and distribution of water for human use and the transportation, storage, distribution and use of gas can be hazardous, and can cause damage to private property and the environment and injury to employees and the general public if equipment fails or does not perform as anticipated. For example, the risks of operating a water distribution system include the potential for burst pipes and water contamination and the risks of operating gas distribution system include the potential for gas leaks, fire or explosion. The risks related to SCE's operation of its water and gas distribution systems may be exacerbated due to aging infrastructure. SCE has, in the past, requested that the CPUC allow SCE to include certain water system costs in electric rates and may make similar requests for the water and gas systems in the future. If such requests are denied, significant costs may not be recoverable from customers. In addition, SCE may have to pay fines, penalties and remediation costs if it does not comply with laws and regulations in the operation of the water and gas distribution systems. An inability to recover costs associated with any such damages or injuries or any fines, penalties or remediation costs, from insurance or through electric rates, could materially affect SCE's business, financial condition and results of operations.Financing RisksAs a capital-intensive company, SCE relies on access to the capital markets. If SCE were unable to access the capital markets or the cost of financing were to substantially increase, its liquidity and operations could be materially affected.SCE regularly accesses the capital markets to finance its activities and is expected to do so by its regulators as part of its obligation to serve as a regulated utility. SCE needs substantial capital for its ongoing infrastructure investment program and for financing wildfire related losses. SCE's ability to obtain financing, as well as its ability to refinance debt and make scheduled payments of principal and interest, are dependent on numerous factors, including SCE's levels of indebtedness, maintenance of acceptable credit ratings, financial performance, liquidity and cash flow, increases in interest rates and credit spreads due to inflationary pressures, and other market conditions. In addition, the actions of other California investor-owned utilities and legal, regulatory and legislative decisions impacting investor-owned utilities can affect market conditions and therefore, SCE's ability to obtain financing. SCE's inability to obtain additional capital from time to time could have a material effect on SCE's liquidity and operations.Competitive and Market RisksIf SCE is unable to operate efficiently and to effectively and timely respond to the changes that the electricity industry is undergoing, as a result of increased load requirements, competition, technological advances, and changes to the regulatory environment, SCE's business model, financial condition and results of operations could be materially impacted.SCE's ability to efficiently operate and implement process changes has a direct impact on its ability to execute its strategy, its customer rates and affordability of electricity. Even if SCE's costs are recoverable, the necessary costs of operations and investments supporting safety, reliability, resilience and being ready to meet California's clean energy goals will negatively impact the affordability of SCE's customer rates, may cause reputational harm and cause increased load departures.Customers and third parties are increasingly deploying DERs, such as solar generation, energy storage, energy efficiency and demand response technologies. California's environmental policy objectives are accelerating the pace and scope of industry change. This change will require modernization of the electric distribution grid to, among other things, 47 Table of Contents Table of Contents Table of Contents SCE's distribution of water and propane gas on Catalina Island involves inherent risks of damage to private property and the environment and injury to employees and the general public.SCE owns and operates the water distribution system that serves Catalina Island, California and a propane gas distribution system that serves the City of Avalon on Catalina Island, California. Production, storage, treatment and distribution of water for human use and the transportation, storage, distribution and use of gas can be hazardous, and can cause damage to private property and the environment and injury to employees and the general public if equipment fails or does not perform as anticipated. For example, the risks of operating a water distribution system include the potential for burst pipes and water contamination and the risks of operating gas distribution system include the potential for gas leaks, fire or explosion. The risks related to SCE's operation of its water and gas distribution systems may be exacerbated due to aging infrastructure. SCE has, in the past, requested that the CPUC allow SCE to include certain water system costs in electric rates and may make similar requests for the water and gas systems in the future. If such requests are denied, significant costs may not be recoverable from customers. In addition, SCE may have to pay fines, penalties and remediation costs if it does not comply with laws and regulations in the operation of the water and gas distribution systems. An inability to recover costs associated with any such damages or injuries or any fines, penalties or remediation costs, from insurance or through electric rates, could materially affect SCE's business, financial condition and results of operations.Financing RisksAs a capital-intensive company, SCE relies on access to the capital markets. If SCE were unable to access the capital markets or the cost of financing were to substantially increase, its liquidity and operations could be materially affected.SCE regularly accesses the capital markets to finance its activities and is expected to do so by its regulators as part of its obligation to serve as a regulated utility. SCE needs substantial capital for its ongoing infrastructure investment program and for financing wildfire related losses. SCE's ability to obtain financing, as well as its ability to refinance debt and make scheduled payments of principal and interest, are dependent on numerous factors, including SCE's levels of indebtedness, maintenance of acceptable credit ratings, financial performance, liquidity and cash flow, increases in interest rates and credit spreads due to inflationary pressures, and other market conditions. In addition, the actions of other California investor-owned utilities and legal, regulatory and legislative decisions impacting investor-owned utilities can affect market conditions and therefore, SCE's ability to obtain financing. SCE's inability to obtain additional capital from time to time could have a material effect on SCE's liquidity and operations.Competitive and Market RisksIf SCE is unable to operate efficiently and to effectively and timely respond to the changes that the electricity industry is undergoing, as a result of increased load requirements, competition, technological advances, and changes to the regulatory environment, SCE's business model, financial condition and results of operations could be materially impacted.SCE's ability to efficiently operate and implement process changes has a direct impact on its ability to execute its strategy, its customer rates and affordability of electricity. Even if SCE's costs are recoverable, the necessary costs of operations and investments supporting safety, reliability, resilience and being ready to meet California's clean energy goals will negatively impact the affordability of SCE's customer rates, may cause reputational harm and cause increased load departures.Customers and third parties are increasingly deploying DERs, such as solar generation, energy storage, energy efficiency and demand response technologies. California's environmental policy objectives are accelerating the pace and scope of industry change. This change will require modernization of the electric distribution grid to, among other things, --- ## No Match in Current: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 50 50 Table of Contents​Report of Independent Registered Public Accounting Firm​To the Board of Directors and Shareholders of Edison International​Opinions on the Financial Statements and Internal Control over Financial ReportingWe have audited the accompanying consolidated balance sheets of Edison International and its subsidiaries (the "Company") as of December 31, 2023 and 2022, and the related consolidated statements of income, of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and schedule of condensed financial information of parent as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 appearing under Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.​Basis for OpinionsThe Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.​Definition and Limitations of Internal Control over Financial ReportingA company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies 51 Table of Contents Table of Contents Table of Contents ​Report of Independent Registered Public Accounting Firm​To the Board of Directors and Shareholders of Edison International​Opinions on the Financial Statements and Internal Control over Financial ReportingWe have audited the accompanying consolidated balance sheets of Edison International and its subsidiaries (the "Company") as of December 31, 2023 and 2022, and the related consolidated statements of income, of comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes and schedule of condensed financial information of parent as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 appearing under Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.​Basis for OpinionsThe Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.​Definition and Limitations of Internal Control over Financial ReportingA company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies ​ --- ## No Match in Current: CONSOLIDATED FINANCIAL STATEMENTS *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: Operating revenue *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 16,338 ​ $ 17,220 ​ $ 14,905 Purchased power and fuel ​ 5,486 ​ 6,375 ​ 5,540 Operation and maintenance ​ 4,138 ​ 4,724 ​ 3,645 Wildfire-related claims, net of insurance recoveries ​ 667 ​ 1,313 ​ 1,276 Wildfire Insurance Fund expense ​ 213 ​ 214 ​ 215 Depreciation and amortization ​ 2,635 ​ 2,561 ​ 2,218 Property and other taxes ​ 571 ​ 501 ​ 465 Impairment, net of other operating income ​ 1 ​ 49 ​ 69 --- ## No Match in Current: Operating income *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 2,627 ​ 1,483 ​ 1,477 Interest expense ​ (1,612) ​ (1,169) ​ (925) Other income, net ​ 500 ​ 348 ​ 237 --- ## No Match in Current: Income before income taxes *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 1,515 ​ 662 ​ 789 Income tax expense (benefit) ​ 108 ​ (162) ​ (136) Net income ​ 1,407 ​ 824 ​ 925 Less: Preference stock dividend requirements of SCE ​ 123 ​ 107 ​ 106 Preferred stock dividend requirements of Edison International ​ ​ 87 ​ ​ 105 ​ ​ 60 --- ## No Match in Current: Basic earnings per share: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Weighted average shares of common stock outstanding ​ 383 ​ 381 ​ 380 --- ## No Match in Current: Diluted earnings per share: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Weighted average shares of common stock outstanding, including effect of dilutive securities ​ 385 ​ 383 ​ 380 --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: Comprehensive income *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 1,409 ​ 867 ​ 940 Less: Comprehensive income attributable to noncontrolling interests ​ 123 ​ 107 ​ 106 --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: Total current assets *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 6,811 ​ 7,070 Nuclear decommissioning trusts ​ 4,173 ​ 3,948 Other investments ​ 54 ​ 55 --- ## No Match in Current: Total investments *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 4,227 ​ 4,003 Utility property, plant and equipment, less accumulated depreciation and amortization of $12,910 and $12,260 at respective dates ​ 55,877 ​ 53,274 Nonutility property, plant and equipment, less accumulated depreciation of $114 and $106 at respective dates ​ 207 ​ 212 --- ## No Match in Current: Total property, plant and equipment *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 56,084 ​ 53,486 Regulatory assets (include $1,558 and $834 related to Variable Interest Entities "VIEs" at respective dates) ​ 8,897 ​ 8,181 Wildfire Insurance Fund contributions ​ 1,951 ​ 2,155 Operating lease right-of-use assets ​ 1,221 ​ 1,442 Long-term insurance receivables ​ ​ 501 ​ ​ 465 Other long-term assets ​ 2,066 ​ 1,239 --- ## No Match in Current: Total assets *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 81,758 ​ $ 78,041 ​ The accompanying notes are an integral part of these consolidated financial statements.60 The accompanying notes are an integral part of these consolidated financial statements. 60 Table of Contents​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions, except share amounts)​2023 2022LIABILITIES AND EQUITY ​ ​ Short-term debt​$ 1,077​$ 2,015Current portion of long-term debt​ 2,697​ 2,614Accounts payable​ 1,983​ 2,359Wildfire-related claims​​ 30​​ 121Customer deposits​ 177​ 167Regulatory liabilities​ 763​ 964Current portion of operating lease liabilities​ 120​ 506Other current liabilities​ 1,751​ 1,601Total current liabilities​ 8,598​ 10,347Long-term debt (include $1,515 and $809 related to VIEs at respective dates)​ 30,316​ 27,025Deferred income taxes and credits​ 6,672​ 6,149Pensions and benefits​ 415​ 422Asset retirement obligations​ 2,666​ 2,754Regulatory liabilities​ 9,420​ 8,211Operating lease liabilities​ 1,101​ 936Wildfire-related claims​ 1,368​ 1,687Other deferred credits and other long-term liabilities​ 3,258​ 2,988Total deferred credits and other liabilities​ 24,900​ 23,147Total liabilities​ 63,814​ 60,519Commitments and contingencies (Note 12)​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates)​​ 1,673​​ 1,978Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates)​ 6,338​ 6,200Accumulated other comprehensive loss​ (9)​ (11)Retained earnings​ 7,499​ 7,454Total Edison International's shareholders' equity​ 15,501​ 15,621Noncontrolling interests - preference stock of SCE​ 2,443​ 1,901Total equity​ 17,944​ 17,522Total liabilities and equity​$ 81,758​$ 78,041​​The accompanying notes are an integral part of these consolidated financial statements.61 Table of Contents Table of Contents Table of Contents ​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions, except share amounts)​2023 2022LIABILITIES AND EQUITY ​ ​ Short-term debt​$ 1,077​$ 2,015Current portion of long-term debt​ 2,697​ 2,614Accounts payable​ 1,983​ 2,359Wildfire-related claims​​ 30​​ 121Customer deposits​ 177​ 167Regulatory liabilities​ 763​ 964Current portion of operating lease liabilities​ 120​ 506Other current liabilities​ 1,751​ 1,601Total current liabilities​ 8,598​ 10,347Long-term debt (include $1,515 and $809 related to VIEs at respective dates)​ 30,316​ 27,025Deferred income taxes and credits​ 6,672​ 6,149Pensions and benefits​ 415​ 422Asset retirement obligations​ 2,666​ 2,754Regulatory liabilities​ 9,420​ 8,211Operating lease liabilities​ 1,101​ 936Wildfire-related claims​ 1,368​ 1,687Other deferred credits and other long-term liabilities​ 3,258​ 2,988Total deferred credits and other liabilities​ 24,900​ 23,147Total liabilities​ 63,814​ 60,519Commitments and contingencies (Note 12)​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates)​​ 1,673​​ 1,978Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates)​ 6,338​ 6,200Accumulated other comprehensive loss​ (9)​ (11)Retained earnings​ 7,499​ 7,454Total Edison International's shareholders' equity​ 15,501​ 15,621Noncontrolling interests - preference stock of SCE​ 2,443​ 1,901Total equity​ 17,944​ 17,522Total liabilities and equity​$ 81,758​$ 78,041​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: LIABILITIES AND EQUITY *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ Short-term debt ​ $ 1,077 ​ $ 2,015 Current portion of long-term debt ​ 2,697 ​ 2,614 Accounts payable ​ 1,983 ​ 2,359 Wildfire-related claims ​ ​ 30 ​ ​ 121 Customer deposits ​ 177 ​ 167 Regulatory liabilities ​ 763 ​ 964 Current portion of operating lease liabilities ​ 120 ​ 506 Other current liabilities ​ 1,751 ​ 1,601 --- ## No Match in Current: Long-term debt (include $1,515 and $809 related to VIEs at respective dates) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 30,316 ​ 27,025 Deferred income taxes and credits ​ 6,672 ​ 6,149 Pensions and benefits ​ 415 ​ 422 Asset retirement obligations ​ 2,666 ​ 2,754 Regulatory liabilities ​ 9,420 ​ 8,211 Operating lease liabilities ​ 1,101 ​ 936 Wildfire-related claims ​ 1,368 ​ 1,687 Other deferred credits and other long-term liabilities ​ 3,258 ​ 2,988 --- ## No Match in Current: Total Edison International's shareholders' equity *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 15,501 ​ 15,621 Noncontrolling interests - preference stock of SCE ​ 2,443 ​ 1,901 --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: Cash flows from operating activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Net income ​ $ 1,407 ​ $ 824 ​ $ 925 Adjustments to reconcile to net cash provided by operating activities: ​ ​ ​ ​ ​ Depreciation and amortization ​ 2,721 ​ 2,633 ​ 2,288 Allowance for equity during construction ​ (157) ​ (137) ​ (118) Impairment and other expense ​ 1 ​ 54 ​ 71 Deferred income taxes ​ 108 ​ (177) ​ 43 Wildfire Insurance Fund amortization expense ​ 213 ​ 214 ​ 215 Other ​ 57 ​ 75 ​ 38 Nuclear decommissioning trusts ​ (180) ​ (123) ​ (256) Proceeds from Morongo Transmission LLC ​ ​ - ​ ​ - ​ ​ 400 Contributions to Wildfire Insurance Fund ​ (95) ​ (95) ​ (95) Changes in operating assets and liabilities: ​ ​ ​ ​ ​ Receivables ​ (349) ​ (252) ​ (514) Inventory ​ (63) ​ (58) ​ (21) Accounts payable ​ (408) ​ 367 ​ 138 Tax receivables and payables ​ 9 ​ 18 ​ 13 Other current assets and liabilities ​ 185 ​ 207 ​ (321) Derivative assets and liabilities, net ​ ​ (174) ​ ​ 115 ​ ​ (12) Regulatory assets and liabilities, net ​ 576 ​ (51) ​ (720) Wildfire-related insurance receivable ​ (36) ​ (390) ​ 708 Wildfire-related claims ​ (410) ​ (56) ​ (2,648) Other noncurrent assets and liabilities ​ (4) ​ 48 ​ (123) --- ## No Match in Current: Cash flows from financing activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years ​ 5,121 ​ 5,971 ​ 5,412 Long-term debt repaid ​ (2,498) ​ (1,085) ​ (1,037) Short-term debt issued ​ 1,076 ​ 1,000 ​ 2,654 Short-term debt repaid ​ (2,407) ​ (1,543) ​ (2,255) Common stock issued ​ 20 ​ 13 ​ 32 Preferred and preference stock issued, net of issuance cost ​ 542 ​ - ​ 1,977 Preferred stock repurchased ​ (289) ​ - ​ - Commercial paper borrowing (repayments), net ​ 1,102 ​ (317) ​ (254) Dividends and distribution to noncontrolling interests ​ (117) ​ (110) ​ (106) Common stock dividends paid ​ (1,112) ​ (1,050) ​ (988) Preferred stock dividends paid ​ ​ (108) ​ ​ (99) ​ ​ (35) Other ​ 117 ​ 101 ​ 45 --- ## No Match in Current: Cash flows from investing activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Capital expenditures ​ (5,448) ​ (5,778) ​ (5,505) Proceeds from sale of nuclear decommissioning trust investments ​ 4,597 ​ 4,177 ​ 3,961 Purchases of nuclear decommissioning trust investments ​ (4,417) ​ (4,054) ​ (3,705) Other ​ 35 ​ 81 ​ 98 --- ## No Match in Current: Net (decrease) increase in cash, cash equivalents and restricted cash *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ (385) ​ 523 ​ 305 Cash, cash equivalents and restricted cash at beginning of year ​ 917 ​ 394 ​ 89 --- ## No Match in Current: Edison International *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 --- ## No Match in Current: Balance at December 31, 2020 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* $ - ​ $ 5,962 ​ $ (69) ​ $ 8,155 ​ $ 14,048 ​ $ 1,901 ​ $ 15,949 Net income ​ ​ - ​ - ​ - ​ 819 ​ 819 ​ 106 ​ 925 Other comprehensive income ​ ​ - ​ - ​ 15 ​ - ​ 15 ​ - ​ 15 Common stock issued ​ ​ - ​ 71 ​ - ​ - ​ ​ 71 ​ - ​ ​ 71 Preferred stock issued, net ​ ​ 1,977 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,977 ​ ​ - ​ ​ 1,977 Common stock dividends declared ($2.6875 per share) ​ ​ - ​ - ​ - ​ (1,021) ​ (1,021) ​ - ​ (1,021) Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (60) ​ ​ (60) ​ ​ - ​ ​ (60) Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (106) ​ (106) Noncash stock-based compensation ​ ​ - ​ 38 ​ - ​ 1 ​ 39 ​ - ​ 39 --- ## No Match in Current: Balance at December 31, 2021 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,977 ​ $ 6,071 ​ $ (54) ​ $ 7,894 ​ $ 15,888 ​ $ 1,901 ​ $ 17,789 Net income ​ ​ - ​ - ​ - ​ 717 ​ 717 ​ 107 ​ 824 Other comprehensive income ​ ​ - ​ - ​ 43 ​ - ​ 43 ​ - ​ 43 Common stock issued ​ ​ - ​ 87 ​ - ​ - ​ 87 ​ - ​ 87 Common stock dividends declared ($2.8375 per share) ​ ​ - ​ - ​ - ​ (1,083) ​ (1,083) ​ - ​ (1,083) Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (74) ​ ​ (74) ​ ​ - ​ ​ (74) Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (107) ​ (107) Noncash stock-based compensation ​ ​ - ​ 42 ​ - ​ - ​ 42 ​ - ​ 42 Other ​ ​ 1 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1 ​ ​ - ​ ​ 1 --- ## No Match in Current: Balance at December 31, 2022 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,978 ​ $ 6,200 ​ $ (11) ​ $ 7,454 ​ $ 15,621 ​ $ 1,901 ​ $ 17,522 Net income ​ ​ - ​ - ​ - ​ 1,284 ​ 1,284 ​ 123 ​ 1,407 Other comprehensive income ​ ​ - ​ - ​ 2 ​ - ​ 2 ​ - ​ 2 Common stock issued ​ ​ - ​ 92 ​ - ​ - ​ 92 ​ - ​ 92 Common stock dividends declared ($2.9925 per share) ​ ​ - ​ - ​ - ​ (1,147) ​ (1,147) ​ - ​ (1,147) Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (108) ​ ​ (108) ​ ​ - ​ ​ (108) Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (123) ​ (123) Noncash stock-based compensation ​ ​ - ​ 46 ​ - ​ - ​ 46 ​ - ​ 46 Preference stock issued, net of issuance cost ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 542 ​ ​ 542 Preferred stock repurchased ​ ​ (305) ​ ​ - ​ ​ - ​ ​ 16 ​ ​ (289) ​ ​ - ​ ​ (289) --- ## No Match in Current: Balance at December 31, 2023 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,673 ​ $ 6,338 ​ $ (9) ​ $ 7,499 ​ $ 15,501 ​ $ 2,443 ​ $ 17,944 ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements.63 The accompanying notes are an integral part of these consolidated financial statements. 63 Table of Contents​​​​​​​​​​(This page has been left blank intentionally.)​64 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​(This page has been left blank intentionally.)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (This page has been left blank intentionally.) ​ 64 64 Table of Contents​​​​​​​​​​​​​​Consolidated Statements of IncomeSouthern California Edison Company​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) 2023 2022 2021Operating revenue​$ 16,275​$ 17,172​$ 14,874Purchased power and fuel​ 5,486​ 6,375​ 5,540Operation and maintenance​ 4,071​ 4,659​ 3,588Wildfire-related claims, net of insurance recoveries​ 665​ 1,305​ 1,276Wildfire Insurance Fund expense​ 213​ 214​ 215Depreciation and amortization​ 2,633​ 2,559​ 2,216Property and other taxes​ 566​ 497​ 462Impairment, net of other operating income​ 1​ 50​ 67Total operating expenses​ 13,635​ 15,659​ 13,364Operating income​ 2,640​ 1,513​ 1,510Interest expense​ (1,356)​ (1,005)​ (791)Other income, net​ 497​ 337​ 233Income before income taxes​ 1,781​ 845​ 952Income tax expense (benefit) ​ 184​ (109)​ 17Net income​ 1,597​ 954​ 935Less: Preference stock dividend requirements​ 123​ 107​ 106Net income available for common stock​$ 1,474​$ 847​$ 829​​​​​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,597​$ 954​$ 935Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (4)​ 24​ 9Other comprehensive (loss) income, net of tax​ (4)​ 24​ 9Comprehensive income​$ 1,593​$ 978​$ 944​​​​The accompanying notes are an integral part of these consolidated financial statements.65 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​Consolidated Statements of IncomeSouthern California Edison Company​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) 2023 2022 2021Operating revenue​$ 16,275​$ 17,172​$ 14,874Purchased power and fuel​ 5,486​ 6,375​ 5,540Operation and maintenance​ 4,071​ 4,659​ 3,588Wildfire-related claims, net of insurance recoveries​ 665​ 1,305​ 1,276Wildfire Insurance Fund expense​ 213​ 214​ 215Depreciation and amortization​ 2,633​ 2,559​ 2,216Property and other taxes​ 566​ 497​ 462Impairment, net of other operating income​ 1​ 50​ 67Total operating expenses​ 13,635​ 15,659​ 13,364Operating income​ 2,640​ 1,513​ 1,510Interest expense​ (1,356)​ (1,005)​ (791)Other income, net​ 497​ 337​ 233Income before income taxes​ 1,781​ 845​ 952Income tax expense (benefit) ​ 184​ (109)​ 17Net income​ 1,597​ 954​ 935Less: Preference stock dividend requirements​ 123​ 107​ 106Net income available for common stock​$ 1,474​$ 847​$ 829​​​​​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,597​$ 954​$ 935Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (4)​ 24​ 9Other comprehensive (loss) income, net of tax​ (4)​ 24​ 9Comprehensive income​$ 1,593​$ 978​$ 944​​​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Southern California Edison Company *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 2022 2021 --- ## No Match in Current: Operating revenue *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 16,338 ​ $ 17,220 ​ $ 14,905 Purchased power and fuel ​ 5,486 ​ 6,375 ​ 5,540 Operation and maintenance ​ 4,138 ​ 4,724 ​ 3,645 Wildfire-related claims, net of insurance recoveries ​ 667 ​ 1,313 ​ 1,276 Wildfire Insurance Fund expense ​ 213 ​ 214 ​ 215 Depreciation and amortization ​ 2,635 ​ 2,561 ​ 2,218 Property and other taxes ​ 571 ​ 501 ​ 465 Impairment, net of other operating income ​ 1 ​ 49 ​ 69 --- ## No Match in Current: Operating income *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 2,627 ​ 1,483 ​ 1,477 Interest expense ​ (1,612) ​ (1,169) ​ (925) Other income, net ​ 500 ​ 348 ​ 237 --- ## No Match in Current: Income before income taxes *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 1,515 ​ 662 ​ 789 Income tax expense (benefit) ​ 108 ​ (162) ​ (136) Net income ​ 1,407 ​ 824 ​ 925 Less: Preference stock dividend requirements of SCE ​ 123 ​ 107 ​ 106 Preferred stock dividend requirements of Edison International ​ ​ 87 ​ ​ 105 ​ ​ 60 --- ## No Match in Current: Net income available for common stock *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,474 ​ $ 847 ​ $ 829 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Southern California Edison Company *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 2022 2021 --- ## No Match in Current: Total current assets *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 6,811 ​ 7,070 Nuclear decommissioning trusts ​ 4,173 ​ 3,948 Other investments ​ 54 ​ 55 --- ## No Match in Current: Total investments *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 4,227 ​ 4,003 Utility property, plant and equipment, less accumulated depreciation and amortization of $12,910 and $12,260 at respective dates ​ 55,877 ​ 53,274 Nonutility property, plant and equipment, less accumulated depreciation of $114 and $106 at respective dates ​ 207 ​ 212 --- ## No Match in Current: Total property, plant and equipment *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 56,084 ​ 53,486 Regulatory assets (include $1,558 and $834 related to Variable Interest Entities "VIEs" at respective dates) ​ 8,897 ​ 8,181 Wildfire Insurance Fund contributions ​ 1,951 ​ 2,155 Operating lease right-of-use assets ​ 1,221 ​ 1,442 Long-term insurance receivables ​ ​ 501 ​ ​ 465 Other long-term assets ​ 2,066 ​ 1,239 --- ## No Match in Current: Total assets *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 81,758 ​ $ 78,041 ​ The accompanying notes are an integral part of these consolidated financial statements.60 The accompanying notes are an integral part of these consolidated financial statements. 60 Table of Contents​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions, except share amounts)​2023 2022LIABILITIES AND EQUITY ​ ​ Short-term debt​$ 1,077​$ 2,015Current portion of long-term debt​ 2,697​ 2,614Accounts payable​ 1,983​ 2,359Wildfire-related claims​​ 30​​ 121Customer deposits​ 177​ 167Regulatory liabilities​ 763​ 964Current portion of operating lease liabilities​ 120​ 506Other current liabilities​ 1,751​ 1,601Total current liabilities​ 8,598​ 10,347Long-term debt (include $1,515 and $809 related to VIEs at respective dates)​ 30,316​ 27,025Deferred income taxes and credits​ 6,672​ 6,149Pensions and benefits​ 415​ 422Asset retirement obligations​ 2,666​ 2,754Regulatory liabilities​ 9,420​ 8,211Operating lease liabilities​ 1,101​ 936Wildfire-related claims​ 1,368​ 1,687Other deferred credits and other long-term liabilities​ 3,258​ 2,988Total deferred credits and other liabilities​ 24,900​ 23,147Total liabilities​ 63,814​ 60,519Commitments and contingencies (Note 12)​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates)​​ 1,673​​ 1,978Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates)​ 6,338​ 6,200Accumulated other comprehensive loss​ (9)​ (11)Retained earnings​ 7,499​ 7,454Total Edison International's shareholders' equity​ 15,501​ 15,621Noncontrolling interests - preference stock of SCE​ 2,443​ 1,901Total equity​ 17,944​ 17,522Total liabilities and equity​$ 81,758​$ 78,041​​The accompanying notes are an integral part of these consolidated financial statements.61 Table of Contents Table of Contents Table of Contents ​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions, except share amounts)​2023 2022LIABILITIES AND EQUITY ​ ​ Short-term debt​$ 1,077​$ 2,015Current portion of long-term debt​ 2,697​ 2,614Accounts payable​ 1,983​ 2,359Wildfire-related claims​​ 30​​ 121Customer deposits​ 177​ 167Regulatory liabilities​ 763​ 964Current portion of operating lease liabilities​ 120​ 506Other current liabilities​ 1,751​ 1,601Total current liabilities​ 8,598​ 10,347Long-term debt (include $1,515 and $809 related to VIEs at respective dates)​ 30,316​ 27,025Deferred income taxes and credits​ 6,672​ 6,149Pensions and benefits​ 415​ 422Asset retirement obligations​ 2,666​ 2,754Regulatory liabilities​ 9,420​ 8,211Operating lease liabilities​ 1,101​ 936Wildfire-related claims​ 1,368​ 1,687Other deferred credits and other long-term liabilities​ 3,258​ 2,988Total deferred credits and other liabilities​ 24,900​ 23,147Total liabilities​ 63,814​ 60,519Commitments and contingencies (Note 12)​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates)​​ 1,673​​ 1,978Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates)​ 6,338​ 6,200Accumulated other comprehensive loss​ (9)​ (11)Retained earnings​ 7,499​ 7,454Total Edison International's shareholders' equity​ 15,501​ 15,621Noncontrolling interests - preference stock of SCE​ 2,443​ 1,901Total equity​ 17,944​ 17,522Total liabilities and equity​$ 81,758​$ 78,041​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Southern California Edison Company *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 2022 2021 --- ## No Match in Current: LIABILITIES AND EQUITY *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ Short-term debt ​ $ 1,077 ​ $ 2,015 Current portion of long-term debt ​ 2,697 ​ 2,614 Accounts payable ​ 1,983 ​ 2,359 Wildfire-related claims ​ ​ 30 ​ ​ 121 Customer deposits ​ 177 ​ 167 Regulatory liabilities ​ 763 ​ 964 Current portion of operating lease liabilities ​ 120 ​ 506 Other current liabilities ​ 1,751 ​ 1,601 --- ## No Match in Current: Long-term debt (include $1,515 and $809 related to VIEs at respective dates) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 30,316 ​ 27,025 Deferred income taxes and credits ​ 6,672 ​ 6,149 Pensions and benefits ​ 415 ​ 422 Asset retirement obligations ​ 2,666 ​ 2,754 Regulatory liabilities ​ 9,420 ​ 8,211 Operating lease liabilities ​ 1,101 ​ 936 Wildfire-related claims ​ 1,368 ​ 1,687 Other deferred credits and other long-term liabilities ​ 3,258 ​ 2,988 --- ## No Match in Current: Total liabilities *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ 63,814 ​ 60,519 Commitments and contingencies (Note 12) ​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates) Series A outstanding ​ ​ 1,673 ​ ​ 1,978 Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates) issued outstanding ​ 6,338 ​ 6,200 Accumulated other comprehensive loss ​ (9) ​ (11) Retained earnings ​ 7,499 ​ 7,454 --- ## No Match in Current: Southern California Edison Company *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 2022 2021 --- ## No Match in Current: Cash flows from operating activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Net income ​ $ 1,407 ​ $ 824 ​ $ 925 Adjustments to reconcile to net cash provided by operating activities: ​ ​ ​ ​ ​ Depreciation and amortization ​ 2,721 ​ 2,633 ​ 2,288 Allowance for equity during construction ​ (157) ​ (137) ​ (118) Impairment and other expense ​ 1 ​ 54 ​ 71 Deferred income taxes ​ 108 ​ (177) ​ 43 Wildfire Insurance Fund amortization expense ​ 213 ​ 214 ​ 215 Other ​ 57 ​ 75 ​ 38 Nuclear decommissioning trusts ​ (180) ​ (123) ​ (256) Proceeds from Morongo Transmission LLC ​ ​ - ​ ​ - ​ ​ 400 Contributions to Wildfire Insurance Fund ​ (95) ​ (95) ​ (95) Changes in operating assets and liabilities: ​ ​ ​ ​ ​ Receivables ​ (349) ​ (252) ​ (514) Inventory ​ (63) ​ (58) ​ (21) Accounts payable ​ (408) ​ 367 ​ 138 Tax receivables and payables ​ 9 ​ 18 ​ 13 Other current assets and liabilities ​ 185 ​ 207 ​ (321) Derivative assets and liabilities, net ​ ​ (174) ​ ​ 115 ​ ​ (12) Regulatory assets and liabilities, net ​ 576 ​ (51) ​ (720) Wildfire-related insurance receivable ​ (36) ​ (390) ​ 708 Wildfire-related claims ​ (410) ​ (56) ​ (2,648) Other noncurrent assets and liabilities ​ (4) ​ 48 ​ (123) --- ## No Match in Current: Cash flows from financing activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years ​ 5,121 ​ 5,971 ​ 5,412 Long-term debt repaid ​ (2,498) ​ (1,085) ​ (1,037) Short-term debt issued ​ 1,076 ​ 1,000 ​ 2,654 Short-term debt repaid ​ (2,407) ​ (1,543) ​ (2,255) Common stock issued ​ 20 ​ 13 ​ 32 Preferred and preference stock issued, net of issuance cost ​ 542 ​ - ​ 1,977 Preferred stock repurchased ​ (289) ​ - ​ - Commercial paper borrowing (repayments), net ​ 1,102 ​ (317) ​ (254) Dividends and distribution to noncontrolling interests ​ (117) ​ (110) ​ (106) Common stock dividends paid ​ (1,112) ​ (1,050) ​ (988) Preferred stock dividends paid ​ ​ (108) ​ ​ (99) ​ ​ (35) Other ​ 117 ​ 101 ​ 45 --- ## No Match in Current: Cash flows from investing activities: *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ Capital expenditures ​ (5,448) ​ (5,778) ​ (5,505) Proceeds from sale of nuclear decommissioning trust investments ​ 4,597 ​ 4,177 ​ 3,961 Purchases of nuclear decommissioning trust investments ​ (4,417) ​ (4,054) ​ (3,705) Other ​ 35 ​ 81 ​ 98 --- ## No Match in Current: Net (decrease) increase in cash and cash equivalents *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ (368) ​ 486 ​ 224 Cash, cash equivalents and restricted cash at beginning of year ​ 766 ​ 280 ​ 56 --- ## No Match in Current: Southern California Edison Company *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 2022 2021 --- ## No Match in Current: Balance at December 31, 2020 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* $ - ​ $ 5,962 ​ $ (69) ​ $ 8,155 ​ $ 14,048 ​ $ 1,901 ​ $ 15,949 Net income ​ ​ - ​ - ​ - ​ 819 ​ 819 ​ 106 ​ 925 Other comprehensive income ​ ​ - ​ - ​ 15 ​ - ​ 15 ​ - ​ 15 Common stock issued ​ ​ - ​ 71 ​ - ​ - ​ ​ 71 ​ - ​ ​ 71 Preferred stock issued, net ​ ​ 1,977 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,977 ​ ​ - ​ ​ 1,977 Common stock dividends declared ($2.6875 per share) ​ ​ - ​ - ​ - ​ (1,021) ​ (1,021) ​ - ​ (1,021) Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (60) ​ ​ (60) ​ ​ - ​ ​ (60) Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (106) ​ (106) Noncash stock-based compensation ​ ​ - ​ 38 ​ - ​ 1 ​ 39 ​ - ​ 39 --- ## No Match in Current: Balance at December 31, 2021 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,977 ​ $ 6,071 ​ $ (54) ​ $ 7,894 ​ $ 15,888 ​ $ 1,901 ​ $ 17,789 Net income ​ ​ - ​ - ​ - ​ 717 ​ 717 ​ 107 ​ 824 Other comprehensive income ​ ​ - ​ - ​ 43 ​ - ​ 43 ​ - ​ 43 Common stock issued ​ ​ - ​ 87 ​ - ​ - ​ 87 ​ - ​ 87 Common stock dividends declared ($2.8375 per share) ​ ​ - ​ - ​ - ​ (1,083) ​ (1,083) ​ - ​ (1,083) Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (74) ​ ​ (74) ​ ​ - ​ ​ (74) Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (107) ​ (107) Noncash stock-based compensation ​ ​ - ​ 42 ​ - ​ - ​ 42 ​ - ​ 42 Other ​ ​ 1 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1 ​ ​ - ​ ​ 1 --- ## No Match in Current: Balance at December 31, 2022 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,978 ​ $ 6,200 ​ $ (11) ​ $ 7,454 ​ $ 15,621 ​ $ 1,901 ​ $ 17,522 Net income ​ ​ - ​ - ​ - ​ 1,284 ​ 1,284 ​ 123 ​ 1,407 Other comprehensive income ​ ​ - ​ - ​ 2 ​ - ​ 2 ​ - ​ 2 Common stock issued ​ ​ - ​ 92 ​ - ​ - ​ 92 ​ - ​ 92 Common stock dividends declared ($2.9925 per share) ​ ​ - ​ - ​ - ​ (1,147) ​ (1,147) ​ - ​ (1,147) Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (108) ​ ​ (108) ​ ​ - ​ ​ (108) Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (123) ​ (123) Noncash stock-based compensation ​ ​ - ​ 46 ​ - ​ - ​ 46 ​ - ​ 46 Preference stock issued, net of issuance cost ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 542 ​ ​ 542 Preferred stock repurchased ​ ​ (305) ​ ​ - ​ ​ - ​ ​ 16 ​ ​ (289) ​ ​ - ​ ​ (289) --- ## No Match in Current: Balance at December 31, 2023 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,673 ​ $ 6,338 ​ $ (9) ​ $ 7,499 ​ $ 15,501 ​ $ 2,443 ​ $ 17,944 ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements.63 The accompanying notes are an integral part of these consolidated financial statements. 63 Table of Contents​​​​​​​​​​(This page has been left blank intentionally.)​64 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​(This page has been left blank intentionally.)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (This page has been left blank intentionally.) ​ 64 64 Table of Contents​​​​​​​​​​​​​​Consolidated Statements of IncomeSouthern California Edison Company​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) 2023 2022 2021Operating revenue​$ 16,275​$ 17,172​$ 14,874Purchased power and fuel​ 5,486​ 6,375​ 5,540Operation and maintenance​ 4,071​ 4,659​ 3,588Wildfire-related claims, net of insurance recoveries​ 665​ 1,305​ 1,276Wildfire Insurance Fund expense​ 213​ 214​ 215Depreciation and amortization​ 2,633​ 2,559​ 2,216Property and other taxes​ 566​ 497​ 462Impairment, net of other operating income​ 1​ 50​ 67Total operating expenses​ 13,635​ 15,659​ 13,364Operating income​ 2,640​ 1,513​ 1,510Interest expense​ (1,356)​ (1,005)​ (791)Other income, net​ 497​ 337​ 233Income before income taxes​ 1,781​ 845​ 952Income tax expense (benefit) ​ 184​ (109)​ 17Net income​ 1,597​ 954​ 935Less: Preference stock dividend requirements​ 123​ 107​ 106Net income available for common stock​$ 1,474​$ 847​$ 829​​​​​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,597​$ 954​$ 935Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (4)​ 24​ 9Other comprehensive (loss) income, net of tax​ (4)​ 24​ 9Comprehensive income​$ 1,593​$ 978​$ 944​​​​The accompanying notes are an integral part of these consolidated financial statements.65 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​Consolidated Statements of IncomeSouthern California Edison Company​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) 2023 2022 2021Operating revenue​$ 16,275​$ 17,172​$ 14,874Purchased power and fuel​ 5,486​ 6,375​ 5,540Operation and maintenance​ 4,071​ 4,659​ 3,588Wildfire-related claims, net of insurance recoveries​ 665​ 1,305​ 1,276Wildfire Insurance Fund expense​ 213​ 214​ 215Depreciation and amortization​ 2,633​ 2,559​ 2,216Property and other taxes​ 566​ 497​ 462Impairment, net of other operating income​ 1​ 50​ 67Total operating expenses​ 13,635​ 15,659​ 13,364Operating income​ 2,640​ 1,513​ 1,510Interest expense​ (1,356)​ (1,005)​ (791)Other income, net​ 497​ 337​ 233Income before income taxes​ 1,781​ 845​ 952Income tax expense (benefit) ​ 184​ (109)​ 17Net income​ 1,597​ 954​ 935Less: Preference stock dividend requirements​ 123​ 107​ 106Net income available for common stock​$ 1,474​$ 847​$ 829​​​​​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,597​$ 954​$ 935Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (4)​ 24​ 9Other comprehensive (loss) income, net of tax​ (4)​ 24​ 9Comprehensive income​$ 1,593​$ 978​$ 944​​​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ --- ## No Match in Current: Balance at December 31, 2020 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* $ - ​ $ 5,962 ​ $ (69) ​ $ 8,155 ​ $ 14,048 ​ $ 1,901 ​ $ 15,949 Net income ​ ​ - ​ - ​ - ​ 819 ​ 819 ​ 106 ​ 925 Other comprehensive income ​ ​ - ​ - ​ 15 ​ - ​ 15 ​ - ​ 15 Common stock issued ​ ​ - ​ 71 ​ - ​ - ​ ​ 71 ​ - ​ ​ 71 Preferred stock issued, net ​ ​ 1,977 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,977 ​ ​ - ​ ​ 1,977 Common stock dividends declared ($2.6875 per share) ​ ​ - ​ - ​ - ​ (1,021) ​ (1,021) ​ - ​ (1,021) Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (60) ​ ​ (60) ​ ​ - ​ ​ (60) Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (106) ​ (106) Noncash stock-based compensation ​ ​ - ​ 38 ​ - ​ 1 ​ 39 ​ - ​ 39 --- ## No Match in Current: Balance at December 31, 2021 *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 1,977 ​ $ 6,071 ​ $ (54) ​ $ 7,894 ​ $ 15,888 ​ $ 1,901 ​ $ 17,789 Net income ​ ​ - ​ - ​ - ​ 717 ​ 717 ​ 107 ​ 824 Other comprehensive income ​ ​ - ​ - ​ 43 ​ - ​ 43 ​ - ​ 43 Common stock issued ​ ​ - ​ 87 ​ - ​ - ​ 87 ​ - ​ 87 Common stock dividends declared ($2.8375 per share) ​ ​ - ​ - ​ - ​ (1,083) ​ (1,083) ​ - ​ (1,083) Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B) ​ ​ - ​ ​ - ​ ​ - ​ ​ (74) ​ ​ (74) ​ ​ - ​ ​ (74) Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) ​ ​ - ​ - ​ - ​ - ​ - ​ (107) ​ (107) Noncash stock-based compensation ​ ​ - ​ 42 ​ - ​ - ​ 42 ​ - ​ 42 Other ​ ​ 1 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1 ​ ​ - ​ ​ 1 --- ## No Match in Current: Balance at December 31, 2022² *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 334 $ 20 ​ $ 354 Current period provision for uncollectible accounts1 ​ ​ 109 ​ ​ 6 ​ ​ 115 Write-offs, net of recoveries ​ (96) ​ (9) ​ (105) --- ## No Match in Current: Balance at December 31, 2023² *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* ​ $ 347 $ 17 ​ $ 364 Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost. Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the second quarter of 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million ($9 million after-tax). Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also expensed in the period. --- ## No Match in Current: Emission Allowances and Energy Credits *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $128 million and $87 million at December 31, 2023 and 2022, respectively. GHG emission obligations were $117 million and $55 million at December 31, 2023 and 2022, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible 72 72 Table of Contentscustomers. SCE's net proceeds from the sale of these LCFS credits were $248 million and $218 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2023 and 2022, respectively.Property, Plant and EquipmentSCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, employee benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs.Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows:​​​​​​ ​​Weighted Average ​ Estimated Useful Lives Useful LivesGeneration plant​10 years to 54 years​39 yearsDistribution plant 20 years to 67 years​50 yearsTransmission plant 30 years to 65 years​54 yearsGeneral plant and other 5 years to 60 years​20 years​Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.5 billion, $2.5 billion and $2.0 billion for 2023, 2022 and 2021, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 4.1%, 4.2% and 3.7% for 2023, 2022 and 2021, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information.Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method.Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $157 million, $137 million and $118 million in 2023, 2022 and 2021, respectively, and is reflected in "Other income" on the consolidated statements of income. AFUDC debt was $74 million, $53 million and $50 million in 2023, 2022 and 2021, respectively and is reflected as a reduction of "Interest expense" on the consolidated statements of income.Major MaintenanceMajor maintenance costs for SCE's facilities and equipment are expensed as incurred.Impairment of Long-Lived AssetsImpairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate.73 Table of Contents Table of Contents Table of Contents customers. SCE's net proceeds from the sale of these LCFS credits were $248 million and $218 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2023 and 2022, respectively.Property, Plant and EquipmentSCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, employee benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs.Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows:​​​​​​ ​​Weighted Average ​ Estimated Useful Lives Useful LivesGeneration plant​10 years to 54 years​39 yearsDistribution plant 20 years to 67 years​50 yearsTransmission plant 30 years to 65 years​54 yearsGeneral plant and other 5 years to 60 years​20 years​Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.5 billion, $2.5 billion and $2.0 billion for 2023, 2022 and 2021, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 4.1%, 4.2% and 3.7% for 2023, 2022 and 2021, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information.Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method.Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $157 million, $137 million and $118 million in 2023, 2022 and 2021, respectively, and is reflected in "Other income" on the consolidated statements of income. AFUDC debt was $74 million, $53 million and $50 million in 2023, 2022 and 2021, respectively and is reflected as a reduction of "Interest expense" on the consolidated statements of income.Major MaintenanceMajor maintenance costs for SCE's facilities and equipment are expensed as incurred.Impairment of Long-Lived AssetsImpairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate. customers. SCE's net proceeds from the sale of these LCFS credits were $248 million and $218 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2023 and 2022, respectively. --- ## No Match in Current: Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054") *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 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, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2023 and 2022, Edison International and SCE had a $2.0 billion and a $2.2 billion long-term asset, respectively, as well as a $204 million current asset for both years, 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, 2023 and 2022, long-term liabilities of $450 million and $536 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. In 2023 and 2022, the asset was amortized based on an estimated period of coverage of 15 years. All expenses related to the contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using nine years (2014 - 2022) of available historical data in 2023 and eight years (2014 - 2021) of available historical data in 2022. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, Pacific Gas & Electric Company ("PG&E"), and San Diego Gas & Electric ("SDG&E") against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. Edison International and SCE reassesses the period of coverage of the fund at least annually in January each year, or upon claims being made from the fund for catastrophic wildfires. Based on information available in January of 2024 regarding catastrophic wildfires during 2023, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. After incorporating 2023 expected losses into the historical data for the Monte Carlo simulations by using ten years of historical data (2014 - 2023), SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund is expected to increase to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund. Edison International and SCE will assess the Wildfire Insurance Fund contribution assets for impairment in the event that a participating utility's electrical equipment is found to be the substantial cause of a catastrophic wildfire, based on 74 74 Table of Contentsthe ability of SCE to benefit from the coverage provided by the Wildfire Insurance Fund in an amount equal to the recorded assets.Nuclear Decommissioning and Asset Retirement ObligationsThe fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset.SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities.The following table summarizes the changes in SCE's ARO liability:​​​​​​​​ December 31, (in millions) 2023 2022Beginning balance​$ 2,754​$ 2,772Accretion1​ 144​ 143Revisions​ (3)​ 28Liabilities settled​ (229)​ (189)Ending balance​$ 2,666​$ 2,7541An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting.AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates.The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.2 billion as of December 31, 2023. The liability to decommission SCE's nuclear power facilities is based on a 2020 decommissioning study, filed as part of the 2021 NDCTP, for San Onofre Unit 1, 2 and 3 and a 2019 decommissioning study for Palo Verde, with revisions to the cost estimate in 2020. SCE records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11.Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") 1 was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In August 2020, SCE commenced, and is currently conducting, major decommissioning activities in accordance with the terms of the Coastal Developmental Permit for San Onofre Units 2 and 3. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Amortization of the ARO asset (included within the 75 Table of Contents Table of Contents Table of Contents the ability of SCE to benefit from the coverage provided by the Wildfire Insurance Fund in an amount equal to the recorded assets.Nuclear Decommissioning and Asset Retirement ObligationsThe fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset.SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities.The following table summarizes the changes in SCE's ARO liability:​​​​​​​​ December 31, (in millions) 2023 2022Beginning balance​$ 2,754​$ 2,772Accretion1​ 144​ 143Revisions​ (3)​ 28Liabilities settled​ (229)​ (189)Ending balance​$ 2,666​$ 2,7541An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting.AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates.The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.2 billion as of December 31, 2023. The liability to decommission SCE's nuclear power facilities is based on a 2020 decommissioning study, filed as part of the 2021 NDCTP, for San Onofre Unit 1, 2 and 3 and a 2019 decommissioning study for Palo Verde, with revisions to the cost estimate in 2020. SCE records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11.Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") 1 was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In August 2020, SCE commenced, and is currently conducting, major decommissioning activities in accordance with the terms of the Coastal Developmental Permit for San Onofre Units 2 and 3. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Amortization of the ARO asset (included within the the ability of SCE to benefit from the coverage provided by the Wildfire Insurance Fund in an amount equal to the recorded assets. --- ## No Match in Current: SCE Dividends *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* CPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders. --- ## No Match in Current: allowed by CPUC, including the impact of SCE's contributions to the Wildfire Insurance Fund under AB 1054. *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In August 2023, the CPUC issued a decision on SCE's application to the CPUC for an extension of the waiver of compliance with its equity ratio requirement that allows SCE to exclude from its equity ratio calculations (i) net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events and (ii) debt issued for the purpose of paying claims, and associated expenses, related to the 2017/2018 Wildfire/Mudslide Events up to an amount equal to the net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events. Under the decision, effective as of the beginning of the new cost of capital cycle on January 1, 2023, the CPUC also authorized SCE to exclude from its equity ratio calculations debt that exceeds the net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events due to the timing difference between the wildfire claims payment and the realization of the cash tax benefits. The temporary exclusion will lapse on August 31, 2025 or when determinations regarding cost recovery for the 2017/2018 Wildfire/Mudslide Events are made, whichever comes earlier. If the CPUC has not made determinations regarding cost recovery by August 31, 2025, SCE is permitted to file another application for a waiver of compliance with its equity ratio requirement. While the exclusion is in place, SCE is required to notify the CPUC if an adverse financial event reduces SCE's spot equity ratio by more than one percent from the level most recently filed with the CPUC in the proceeding. The last spot equity ratio SCE filed with the CPUC in the proceeding did not exclude the then $1.8 billion net charge and was 45.2% as of December 31, 2018 (at the time the common equity component of SCE's CPUC authorized capital structure was required to remain at or above 48% on a weighted average basis over the applicable 37-month period). SCE's spot equity ratio on December 31, 2018 would have been 48.7% had the $1.8 billion net charge at December 31, 2018 been excluded, therefore SCE will notify the CPUC if its spot ratio drops below 47.7% in any quarter. For further information, see "Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." 37-month --- ## No Match in Current: SCE monitors its compliance with the CPUC's equity ratio requirement based on the weighted average of the common equity component of SCE's CPUC authorized capital structure over the Capital Structure Compliance Period using its actual capital structure from the beginning of the Capital Structure Compliance Period through the reporting date together with forecasted performance and expected financing activities for the remainder of the Capital Structure Compliance Period. SCE expects to be compliant with its CPUC authorized capital structure at the end of the Capital Structure Compliance Period. *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* SCE's ability to declare and pay common dividends may be restricted under the terms of its outstanding series of preference stock. For further information see Note 14. As a California corporation, SCE's ability to pay dividends is also governed by the California General Corporation Law. California law requires that for a dividend to be declared: (a) retained earnings must equal or exceed the proposed dividend, or (b) immediately after the dividend is made, the value of the corporation's assets must exceed the value of its liabilities plus amounts required to be paid, if any, in order to liquidate stock senior to the shares receiving the dividend. Additionally, a California corporation may not declare a dividend if it is, or as a result of the dividend would be, likely to be unable to meet its liabilities as they mature. Prior to declaring dividends, SCE's Board of Directors evaluates available information, including when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met. On February 22, 2024, SCE declared a dividend to Edison International of $360 million. The timing and amount of future dividends are also dependent on a number of other factors including SCE's requirements to fund other obligations and capital expenditures, and its ability to access the capital markets and generate operating cash flows and earnings. If SCE incurs significant costs related to catastrophic wildfires and is unable to recover such costs through insurance, the Wildfire Insurance Fund (for fires after July 12, 2019), or from customers or is unable to access capital markets on reasonable terms, SCE may be limited in its ability to pay future dividends to Edison International and its preference shareholders. 80 80 Table of ContentsEdison International Dividend In December 2023, Edison International declared a 5.8% increase to the annual dividend rate from $2.95 per share to $3.12 per share. On February 22, 2024, Edison International declared a dividend of $0.78 per share to be paid on April 30, 2024. Edison International intends to maintain its target payout ratio of 45% - 55% of SCE's core earnings.Earnings Per ShareEdison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 9 and Note 14 for further information.EPS attributable to Edison International common shareholders was computed as follows:​​​​​​​​​​​​Years ended December 31, (in millions, except per-share amounts)​2023 2022 2021Basic earnings per share:​​​​​​​ ​Net income attributable to common shareholders​$ 1,197​$ 612​$ 759Net income available to common shareholders​$ 1,197​$ 612​$ 759Weighted average common shares outstanding​​ 383​​ 381​​ 380Basic earnings per share​$ 3.12​$ 1.61​$ 2.00Diluted earnings per share:​​​​​ ​​ Net income attributable to common shareholders​$ 1,197​$ 612​$ 759Net income available to common shareholders​$ 1,197​$ 612​$ 759Income impact of assumed conversions​​ 1​​ 1​​ 1Net income available to common shareholders and assumed conversions​$ 1,198​$ 613​$ 760Weighted average common shares outstanding​​ 383​​ 381​​ 380Incremental shares from assumed conversions​​ 2​​ 2​​ - Adjusted weighted average shares - diluted​​ 385​​ 383​​ 380Diluted earnings per share​$ 3.11​$ 1.60​$ 2.00​In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 3,771,766, 5,839,549 and 10,239,501, of common stock for the years ended December 31, 2023, 2022 and 2021, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.Income TaxesEdison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from the differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets.Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Interest income, interest expense, and penalties associated with income taxes are generally reflected in "Income tax expense (benefit)" on the consolidated statements of income.Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its 81 Table of Contents Table of Contents Table of Contents Edison International Dividend In December 2023, Edison International declared a 5.8% increase to the annual dividend rate from $2.95 per share to $3.12 per share. On February 22, 2024, Edison International declared a dividend of $0.78 per share to be paid on April 30, 2024. Edison International intends to maintain its target payout ratio of 45% - 55% of SCE's core earnings.Earnings Per ShareEdison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 9 and Note 14 for further information.EPS attributable to Edison International common shareholders was computed as follows:​​​​​​​​​​​​Years ended December 31, (in millions, except per-share amounts)​2023 2022 2021Basic earnings per share:​​​​​​​ ​Net income attributable to common shareholders​$ 1,197​$ 612​$ 759Net income available to common shareholders​$ 1,197​$ 612​$ 759Weighted average common shares outstanding​​ 383​​ 381​​ 380Basic earnings per share​$ 3.12​$ 1.61​$ 2.00Diluted earnings per share:​​​​​ ​​ Net income attributable to common shareholders​$ 1,197​$ 612​$ 759Net income available to common shareholders​$ 1,197​$ 612​$ 759Income impact of assumed conversions​​ 1​​ 1​​ 1Net income available to common shareholders and assumed conversions​$ 1,198​$ 613​$ 760Weighted average common shares outstanding​​ 383​​ 381​​ 380Incremental shares from assumed conversions​​ 2​​ 2​​ - Adjusted weighted average shares - diluted​​ 385​​ 383​​ 380Diluted earnings per share​$ 3.11​$ 1.60​$ 2.00​In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 3,771,766, 5,839,549 and 10,239,501, of common stock for the years ended December 31, 2023, 2022 and 2021, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.Income TaxesEdison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from the differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets.Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Interest income, interest expense, and penalties associated with income taxes are generally reflected in "Income tax expense (benefit)" on the consolidated statements of income.Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its --- ## No Match in Current: Income Taxes *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from the differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Interest income, interest expense, and penalties associated with income taxes are generally reflected in "Income tax expense (benefit)" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its 81 81 Table of Contentssubsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis.New Accounting GuidanceAccounting Guidance AdoptedNo material accounting standards were adopted in 2023. Accounting Guidance Not Yet AdoptedIn November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. The guidance will be effective for annual disclosures for the year ended December 31, 2024 and subsequent interim periods with early adoption permitted. The guidance is applied retrospectively to all periods presented in the financial statements. Edison International and SCE have one reportable segment and are currently evaluating the impact of any increased segment disclosures. In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance.Note 2.Property, Plant and EquipmentSCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following:​​​​​​​​ December 31, (in millions) 2023 2022Distribution​$ 34,573​$ 32,754Transmission​ 18,526​ 18,106Generation​ 3,593​ 3,880General plant and other​ 6,383​ 6,121Accumulated depreciation​ (12,910)​ (12,260)​​ 50,165​ 48,601Construction work in progress​ 5,590​ 4,551Nuclear fuel, at amortized cost​ 122​ 122Total utility property, plant and equipment​$ 55,877​$ 53,274​Capitalized Software CostsSCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over their useful lives, primarily 5 and 7 year lives, commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.1 billion and $2.0 billion at December 31, 2023 and 2022, and accumulated amortization was $0.9 billion and $0.7 billion, at December 31, 2023 and 2022, respectively. Amortization expense for capitalized software was $358 million, $344 million and $311 million in 2023, 2022 and 2021, respectively. At December 31, 2023, amortization expense is estimated to be $359 million, $317 million, $253 million, $168 million and $61 million for 2024 through 2028, respectively.82 Table of Contents Table of Contents Table of Contents subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis.New Accounting GuidanceAccounting Guidance AdoptedNo material accounting standards were adopted in 2023. Accounting Guidance Not Yet AdoptedIn November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. The guidance will be effective for annual disclosures for the year ended December 31, 2024 and subsequent interim periods with early adoption permitted. The guidance is applied retrospectively to all periods presented in the financial statements. Edison International and SCE have one reportable segment and are currently evaluating the impact of any increased segment disclosures. In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance.Note 2.Property, Plant and EquipmentSCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following:​​​​​​​​ December 31, (in millions) 2023 2022Distribution​$ 34,573​$ 32,754Transmission​ 18,526​ 18,106Generation​ 3,593​ 3,880General plant and other​ 6,383​ 6,121Accumulated depreciation​ (12,910)​ (12,260)​​ 50,165​ 48,601Construction work in progress​ 5,590​ 4,551Nuclear fuel, at amortized cost​ 122​ 122Total utility property, plant and equipment​$ 55,877​$ 53,274​Capitalized Software CostsSCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over their useful lives, primarily 5 and 7 year lives, commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.1 billion and $2.0 billion at December 31, 2023 and 2022, and accumulated amortization was $0.9 billion and $0.7 billion, at December 31, 2023 and 2022, respectively. Amortization expense for capitalized software was $358 million, $344 million and $311 million in 2023, 2022 and 2021, respectively. At December 31, 2023, amortization expense is estimated to be $359 million, $317 million, $253 million, $168 million and $61 million for 2024 through 2028, respectively. subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. --- ## No Match in Current: Variable Interest in VIEs that are not Consolidated *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Power Purchase Agreements SCE has PPAs that are classified as variable interests in VIEs, including agreements through which SCE provides the natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that, upon the seller's election, include the purchase of energy at fixed prices. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants, which SCE does not perform. As of the balance sheet date, the carrying amount of assets and liabilities included in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated, result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 12. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 3,343 megawatts ("MW") and 3,907 MW at December 31, 2023 and 2022, respectively, and the amounts that SCE paid to these projects were $528 million and $608 million for the years ended December 31, 2023 and 2022, respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII were utilized in 2013, 2014, 2015, 2016, 2017 and 2023, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, 5.00% and 7.50% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, Series L and Series M Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series G, Series H, Series J, Series K, Series L and Series M Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, Series L or Series M Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 14 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments 84 84 Table of Contentson the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock.The Trust VII balance sheet as of December 31, 2023, consisted of investments of $550 million in the Series M Preference Stock, $550 million of trust securities and $10,000 of common stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of December 31, 2023 and 2022, consisted of investments of $220 million, $275 million, $325 million, $300 million and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $220 million, $275 million, $325 million, $300 million and $475 million of trust securities, respectively, and $10,000 each of common stock.The following table provides a summary of the trusts' income statements:​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI Trust VII2023​​​​​​​​​​​​​ ​​ ​Dividend income​$ 11​$ 16​$ 17​$ 16​$ 24​$ 4Dividend distributions​ 11​ 16​ 17​ 16​ 24​ 42022​ ​ ​ ​ ​ ​ Dividend income​$ 11​$ 16​$ 17​$ 16​$ 24​$ - Dividend distributions​ 11​ 16​ 17​ 16​ 24​ - 2021​ ​ ​ ​ ​ ​ Dividend income​$ 20​$ 16​$ 17​$ 16​$ 24​$ - Dividend distributions​ 20​ 16​ 17​ 16​ 24​ - ​​Note 4.Fair Value MeasurementsRecurring Fair Value MeasurementsFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2023 and 2022, nonperformance risk was not material for Edison International and SCE.Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value.Level 1 - The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds.Level 2 - Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter commodity derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument.The fair value of SCE's over-the-counter commodity derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing 85 Table of Contents Table of Contents Table of Contents on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock.The Trust VII balance sheet as of December 31, 2023, consisted of investments of $550 million in the Series M Preference Stock, $550 million of trust securities and $10,000 of common stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of December 31, 2023 and 2022, consisted of investments of $220 million, $275 million, $325 million, $300 million and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $220 million, $275 million, $325 million, $300 million and $475 million of trust securities, respectively, and $10,000 each of common stock.The following table provides a summary of the trusts' income statements:​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI Trust VII2023​​​​​​​​​​​​​ ​​ ​Dividend income​$ 11​$ 16​$ 17​$ 16​$ 24​$ 4Dividend distributions​ 11​ 16​ 17​ 16​ 24​ 42022​ ​ ​ ​ ​ ​ Dividend income​$ 11​$ 16​$ 17​$ 16​$ 24​$ - Dividend distributions​ 11​ 16​ 17​ 16​ 24​ - 2021​ ​ ​ ​ ​ ​ Dividend income​$ 20​$ 16​$ 17​$ 16​$ 24​$ - Dividend distributions​ 20​ 16​ 17​ 16​ 24​ - ​​Note 4.Fair Value MeasurementsRecurring Fair Value MeasurementsFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2023 and 2022, nonperformance risk was not material for Edison International and SCE.Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value.Level 1 - The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds.Level 2 - Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter commodity derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument.The fair value of SCE's over-the-counter commodity derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust VII balance sheet as of December 31, 2023, consisted of investments of $550 million in the Series M Preference Stock, $550 million of trust securities and $10,000 of common stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of December 31, 2023 and 2022, consisted of investments of $220 million, $275 million, $325 million, $300 million and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $220 million, $275 million, $325 million, $300 million and $475 million of trust securities, respectively, and $10,000 each of common stock. The following table provides a summary of the trusts' income statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI Trust VII 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividend income ​ $ 11 ​ $ 16 ​ $ 17 ​ $ 16 ​ $ 24 ​ $ 4 Dividend distributions ​ 11 ​ 16 ​ 17 ​ 16 ​ 24 ​ 4 2022 ​ ​ ​ ​ ​ ​ Dividend income ​ $ 11 ​ $ 16 ​ $ 17 ​ $ 16 ​ $ 24 ​ $ - Dividend distributions ​ 11 ​ 16 ​ 17 ​ 16 ​ 24 ​ - 2021 ​ ​ ​ ​ ​ ​ Dividend income ​ $ 20 ​ $ 16 ​ $ 17 ​ $ 16 ​ $ 24 ​ $ - Dividend distributions ​ 20 ​ 16 ​ 17 ​ 16 ​ 24 ​ - ​ ​ --- ## Modified: SCE's insurance coverage for wildfires may not be sufficient. **Key changes:** - Reworded sentence: "For losses associated with claims occurring before the authorization of SCE's CPUC-authorized customer-funded self-insurance program, no assurance can be given that losses will not exceed the limits of SCE's or its contractors' insurance coverage." **Prior (2024):** SCE may not be able to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) in electric rates. Additionally, SCE's contractors may experience coverage reductions and/or increased wildfire insurance costs in future years. No assurance can be given that losses will not exceed the limits of SCE's or its contractors' insurance coverage. Losses which are not fully insured or cannot be recovered from contractors, through the Wildfire Insurance Fund or electric rates could materially affect Edison International's and SCE's financial condition and results of operations. For more information on wildfire insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." **Current (2025):** SCE may not be able to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) in electric rates. Additionally, SCE's contractors may experience coverage reductions and/or increased wildfire insurance costs in future years. For losses associated with claims occurring before the authorization of SCE's CPUC-authorized customer-funded self-insurance program, no assurance can be given that losses will not exceed the limits of SCE's or its contractors' insurance coverage. Losses which are not fully insured or cannot be recovered from contractors, through the Wildfire Insurance Fund or electric rates, including any such losses that exceed funds available through the Wildfire Insurance Fund and are ultimately not authorized to be recovered through rates, could materially affect Edison International's and SCE's financial condition and results of operations. For more information on wildfire insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." --- ## Modified: As a capital-intensive company, SCE relies on access to the bank and capital markets. If SCE were unable to access these markets or the cost of financing were to substantially increase, its liquidity and operations could be materially affected. **Key changes:** - Reworded sentence: "SCE regularly accesses the bank and capital markets to finance its activities and is expected to do so by its regulators as part of its obligation to serve its customers." **Prior (2024):** SCE regularly accesses the capital markets to finance its activities and is expected to do so by its regulators as part of its obligation to serve as a regulated utility. SCE needs substantial capital for its ongoing infrastructure investment program and for financing wildfire related losses. SCE's ability to obtain financing, as well as its ability to refinance debt and make scheduled payments of principal and interest, are dependent on numerous factors, including SCE's levels of indebtedness, maintenance of acceptable credit ratings, financial performance, liquidity and cash flow, increases in interest rates and credit spreads due to inflationary pressures, and other market conditions. In addition, the actions of other California investor-owned utilities and legal, regulatory and legislative decisions impacting investor-owned utilities can affect market conditions and therefore, SCE's ability to obtain financing. SCE's inability to obtain additional capital from time to time could have a material effect on SCE's liquidity and operations. **Current (2025):** SCE regularly accesses the bank and capital markets to finance its activities and is expected to do so by its regulators as part of its obligation to serve its customers. SCE needs substantial capital for its ongoing infrastructure investment program and for financing wildfire related losses. SCE's ability to obtain financing, as well as its ability to refinance debt and make scheduled payments of principal and interest, are dependent on numerous factors, including SCE's levels of indebtedness, maintenance of acceptable credit ratings, financial performance, liquidity and cash flow, increases in interest rates and credit spreads due to inflationary pressures, and other market conditions. In addition, the actions of other California investor-owned utilities and legal, regulatory and legislative decisions impacting investor-owned utilities can affect market conditions and therefore, SCE's ability to obtain financing. SCE's inability to obtain additional capital from time to time could have a material effect on SCE's liquidity and operations. --- ## Modified: New Accounting Guidance **Key changes:** - Reworded sentence: "Accounting Guidance Adopted In November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments." - Reworded sentence: "Edison International and SCE each have one reportable segment, and have adopted this guidance for the year ended December 31, 2024." - Reworded sentence: "The guidance is effective for annual periods after January 1, 2025 with early adoption permitted." - Added sentence: "In November 2024, the FASB issued an accounting standards update requiring public entities to provide disaggregated disclosure of income statement expenses." - Added sentence: "The guidance does not change the expense captions an entity presents on the face of the income statement, rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements." **Prior (2024):** Accounting Guidance Adopted No material accounting standards were adopted in 2023. Accounting Guidance Not Yet Adopted In November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. The guidance will be effective for annual disclosures for the year ended December 31, 2024 and subsequent interim periods with early adoption permitted. The guidance is applied retrospectively to all periods presented in the financial statements. Edison International and SCE have one reportable segment and are currently evaluating the impact of any increased segment disclosures. In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance. **Current (2025):** Accounting Guidance Adopted In November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. Edison International and SCE each have one reportable segment, and have adopted this guidance for the year ended December 31, 2024. See "Segment Information" above for further information. Accounting Guidance Not Yet Adopted In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective for annual periods after January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance. In November 2024, the FASB issued an accounting standards update requiring public entities to provide disaggregated disclosure of income statement expenses. The guidance does not change the expense captions an entity presents on the face of the income statement, rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The guidance is effective for annual disclosure for the year ended December 31, 2027 and subsequent interim periods with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance. --- ## Modified: Nuclear Decommissioning and Asset Retirement Obligations **Key changes:** - Reworded sentence: "The fair value of a liability for an ARO is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement." - Reworded sentence: "The following table summarizes the changes in SCE's ARO liability: December 31,(in millions)20242023Beginning balance$2,666 $2,754 Accretion1137 144 Revisions(2)(3)Liabilities settled(221)(229)Ending balance$2,580 $2,666 Accretion1 1An ARO represents the present value of a future obligation." - Reworded sentence: "In August 2020, SCE commenced, and is currently conducting major decommissioning activities in accordance with the terms of the Coastal Developmental Permit for San Onofre Units 2 and 3." - Reworded sentence: "SCE estimates annual after-tax earnings on the decommissioning funds of 3.6% to 5.7% dependent on asset class." - Removed sentence: "Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings." **Prior (2024):** The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (in millions) 2023 2022 Beginning balance ​ $ 2,754 ​ $ 2,772 Accretion1 ​ 144 ​ 143 Revisions ​ (3) ​ 28 Liabilities settled ​ (229) ​ (189) Ending balance ​ $ 2,666 ​ $ 2,754 AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.2 billion as of December 31, 2023. The liability to decommission SCE's nuclear power facilities is based on a 2020 decommissioning study, filed as part of the 2021 NDCTP, for San Onofre Unit 1, 2 and 3 and a 2019 decommissioning study for Palo Verde, with revisions to the cost estimate in 2020. SCE records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11. Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") 1 was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In August 2020, SCE commenced, and is currently conducting, major decommissioning activities in accordance with the terms of the Coastal Developmental Permit for San Onofre Units 2 and 3. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Amortization of the ARO asset (included within the 75 75 Table of Contentsunamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings.SCE has collected in rates amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities.Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $6.1 billion through 2080 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.2% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 3.1% to 6.1% dependent on asset class. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information.Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively.Deferred Financing CostsDebt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized over the life of each debt issue. These deferred amounts are recorded as an offset to long-term debt. See Note 5 for further details. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt, or if refinanced, the life of the new debt. The unamortized losses on reacquired debt are reflected as long-term "Regulatory assets" in the consolidated balance sheets. See Note 11 for further details.Amortization of deferred financing costs charged to interest expense is as follows:​​​​​​​​​​​​​​​​​​​​ Edison International SCE​​Years ended December 31, (in millions) 2023 2022 2021 2023 2022 2021Amortization of deferred financing costs charged to interest expense​$ 39​$ 37​$ 34​$ 32​$ 31​$ 29​Revenue RecognitionRevenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period.76 Table of Contents Table of Contents Table of Contents unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings.SCE has collected in rates amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities.Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $6.1 billion through 2080 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.2% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 3.1% to 6.1% dependent on asset class. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information.Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively.Deferred Financing CostsDebt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized over the life of each debt issue. These deferred amounts are recorded as an offset to long-term debt. See Note 5 for further details. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt, or if refinanced, the life of the new debt. The unamortized losses on reacquired debt are reflected as long-term "Regulatory assets" in the consolidated balance sheets. See Note 11 for further details.Amortization of deferred financing costs charged to interest expense is as follows:​​​​​​​​​​​​​​​​​​​​ Edison International SCE​​Years ended December 31, (in millions) 2023 2022 2021 2023 2022 2021Amortization of deferred financing costs charged to interest expense​$ 39​$ 37​$ 34​$ 32​$ 31​$ 29​Revenue RecognitionRevenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $6.1 billion through 2080 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.2% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 3.1% to 6.1% dependent on asset class. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. **Current (2025):** The fair value of a liability for an ARO is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: December 31,(in millions)20242023Beginning balance$2,666 $2,754 Accretion1137 144 Revisions(2)(3)Liabilities settled(221)(229)Ending balance$2,580 $2,666 Accretion1 1An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each NDCTP conducted before the CPUC. ARO are revised when updated site-specific decommissioning cost estimates are available. The ARO for decommissioning SCE's San Onofre and Palo Verde nuclear power facilities was $2.1 billion as of December 31, 2024. The liability to decommission SCE's nuclear power facilities is based on a 2024 decommissioning study, filed as part of the 2024 NDCTP, for San Onofre Unit 1, 2, and 3 and a 2023 decommissioning study for Palo Verde. Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") 1 was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In August 2020, SCE commenced, and is currently conducting major decommissioning activities in accordance with the terms of the Coastal Developmental Permit for San Onofre Units 2 and 3. 65 65 65 Table of Contents Table of Contents Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Through the ratemaking process, SCE has substantially collected in rates, as a component of depreciation expense, all amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as ARO regulatory liabilities. See Note 11 for further information. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.6 billion through 2098 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.1% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 3.6% to 5.7% dependent on asset class. If the estimated costs increase, the assumed return on trust assets is not earned, or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. --- ## Modified: Earnings Per Share **Key changes:** - Reworded sentence: "EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31,(in millions, except per-share amounts)202420232022Basic earnings per share:Net income available to common shareholders$1,284 $1,197 $612 Weighted average common shares outstanding386 383 381 Basic earnings per share$3.33 $3.12 $1.61 Diluted earnings per share:Net income available to common shareholders$1,284 $1,197 $612 Income impact of assumed conversions1 1 1 Net income available to common shareholders and assumed conversions$1,285 $1,198 $613 Weighted average common shares outstanding386 383 381 Incremental shares from assumed conversions2 2 2 Adjusted weighted average shares - diluted388 385 383 Diluted earnings per share$3.31 $3.11 $1.60 In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation." **Prior (2024):** Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 9 and Note 14 for further information. EPS attributable to Edison International common shareholders was computed as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions, except per-share amounts) ​ 2023 2022 2021 Basic earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to common shareholders ​ $ 1,197 ​ $ 612 ​ $ 759 Net income available to common shareholders ​ $ 1,197 ​ $ 612 ​ $ 759 Weighted average common shares outstanding ​ ​ 383 ​ ​ 381 ​ ​ 380 Basic earnings per share ​ $ 3.12 ​ $ 1.61 ​ $ 2.00 Diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ Net income attributable to common shareholders ​ $ 1,197 ​ $ 612 ​ $ 759 Net income available to common shareholders ​ $ 1,197 ​ $ 612 ​ $ 759 Income impact of assumed conversions ​ ​ 1 ​ ​ 1 ​ ​ 1 Net income available to common shareholders and assumed conversions ​ $ 1,198 ​ $ 613 ​ $ 760 Weighted average common shares outstanding ​ ​ 383 ​ ​ 381 ​ ​ 380 Incremental shares from assumed conversions ​ ​ 2 ​ ​ 2 ​ ​ - Adjusted weighted average shares - diluted ​ ​ 385 ​ ​ 383 ​ ​ 380 Diluted earnings per share ​ $ 3.11 ​ $ 1.60 ​ $ 2.00 ​ In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 3,771,766, 5,839,549 and 10,239,501, of common stock for the years ended December 31, 2023, 2022 and 2021, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. **Current (2025):** Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 9 and Note 14 for further information. EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31,(in millions, except per-share amounts)202420232022Basic earnings per share:Net income available to common shareholders$1,284 $1,197 $612 Weighted average common shares outstanding386 383 381 Basic earnings per share$3.33 $3.12 $1.61 Diluted earnings per share:Net income available to common shareholders$1,284 $1,197 $612 Income impact of assumed conversions1 1 1 Net income available to common shareholders and assumed conversions$1,285 $1,198 $613 Weighted average common shares outstanding386 383 381 Incremental shares from assumed conversions2 2 2 Adjusted weighted average shares - diluted388 385 383 Diluted earnings per share$3.31 $3.11 $1.60 In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 1,533,982, 3,771,766, and 5,839,549 of common stock for the years ended December 31, 2024, 2023, and 2022, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. --- ## Modified: Note 3. Variable Interest Entities **Key changes:** - Reworded sentence: "A VIE is defined as a legal entity that meets any of the following conditions: (1) the total equity investment at risk is not sufficient to fund the entity's activities without additional subordinated financial support, (2) the equity holders as a group, lack any of the following characteristics: the power to direct activities that most significantly impact the entity's economic performance, substantive voting rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity." - Removed sentence: "Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements." **Prior (2024):** A VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. **Current (2025):** A VIE is defined as a legal entity that meets any of the following conditions: (1) the total equity investment at risk is not sufficient to fund the entity's activities without additional subordinated financial support, (2) the equity holders as a group, lack any of the following characteristics: the power to direct activities that most significantly impact the entity's economic performance, substantive voting rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. --- ## Modified: Revenue Recognition **Key changes:** - Removed sentence: "76 76 Table of ContentsSCE's Revenue from Contracts with CustomersProvision of ElectricitySCE principally generates revenue through supplying and delivering electricity to its customers." - Removed sentence: "Rates charged to customers are based on tariff rates, approved by the CPUC and FERC." - Removed sentence: "Starting with SCE's 2021 GRC, revenue is authorized through quadrennial GRC proceedings, which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base." - Removed sentence: "The CPUC sets an annual revenue requirement for the base year and the remaining three years are set by a methodology established in the GRC proceeding." - Removed sentence: "As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other activities.Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base." **Prior (2024):** Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. 76 76 Table of ContentsSCE's Revenue from Contracts with CustomersProvision of ElectricitySCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Starting with SCE's 2021 GRC, revenue is authorized through quadrennial GRC proceedings, which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining three years are set by a methodology established in the GRC proceeding. As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other activities.Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually.For SCE's electricity sales for both residential and non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity.Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis.CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue.Sales and Use TaxesSCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. SCE's franchise fees billed to customers were $168 million, $172 million and $147 million for the years ended December 31, 2023, 2022 and 2021, respectively. When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue.SCE's Alternative Revenue ProgramsThe CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors or provide for additional billings if the utility achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs of certain capital and operations and maintenance activities, costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs, and earn a reasonable return. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred, or at the time when specific events permitting billing of the additional revenues have been completed. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period.77 Table of Contents Table of Contents Table of Contents SCE's Revenue from Contracts with CustomersProvision of ElectricitySCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Starting with SCE's 2021 GRC, revenue is authorized through quadrennial GRC proceedings, which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining three years are set by a methodology established in the GRC proceeding. As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other activities.Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually.For SCE's electricity sales for both residential and non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity.Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis.CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue.Sales and Use TaxesSCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. SCE's franchise fees billed to customers were $168 million, $172 million and $147 million for the years ended December 31, 2023, 2022 and 2021, respectively. When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue.SCE's Alternative Revenue ProgramsThe CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors or provide for additional billings if the utility achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs of certain capital and operations and maintenance activities, costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs, and earn a reasonable return. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred, or at the time when specific events permitting billing of the additional revenues have been completed. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period. SCE's Revenue from Contracts with Customers Provision of Electricity SCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Starting with SCE's 2021 GRC, revenue is authorized through quadrennial GRC proceedings, which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining three years are set by a methodology established in the GRC proceeding. As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other activities. Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually. For SCE's electricity sales for both residential and non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity. Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue. Sales and Use Taxes SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. SCE's franchise fees billed to customers were $168 million, $172 million and $147 million for the years ended December 31, 2023, 2022 and 2021, respectively. When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. SCE's Alternative Revenue Programs The CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors or provide for additional billings if the utility achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs of certain capital and operations and maintenance activities, costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs, and earn a reasonable return. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred, or at the time when specific events permitting billing of the additional revenues have been completed. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period. 77 77 Table of ContentsPower Purchase AgreementsSCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE is required to consolidate the VIE. None of SCE's PPAs resulted in consolidation at December 31, 2023 and 2022. See Note 3 for further discussion of PPAs that are considered variable interests.A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 and Note 13 for further discussion of SCE's PPAs. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets, unless the PPA is eligible for an election to designate as a normal purchase or sale, which is accounted for on an accrual basis as an executory contract. PPAs that do not meet the above classifications are accounted for on an accrual basis.Derivative InstrumentsSCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business.Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment.Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments.LeasesA lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the asset and has the right to direct the use. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets where each component is separately accounted for, SCE accounts for lease and non-lease components as a single lease component. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. SCE calculates and uses the rate implicit in the lease if the information is readily available or if not available, SCE uses its incremental borrowing rate in determining the present value of lease payments. Incremental borrowing rates are comprised of underlying risk-free rates and secured credit spreads relative to first mortgage bonds with like tenors of lease term durations. Lease right-of-use ("ROU") assets are based on the liability, subject to adjustments, such as lease incentives. The ROU assets also include any lease payments made at or before the commencement date. SCE excludes variable lease payments in measuring lease assets and lease liabilities. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. SCE elected to exclude from the balance sheet short-term leases of one year or less.SCE enters into power purchase agreements that may contain leases. This occurs when a power purchase agreement designates a specific power plant, SCE obtains substantially all of the economic benefits from the use of the plant and has the right to direct the use of the plant. SCE also enters into a number of agreements to lease property and equipment 78 Table of Contents Table of Contents Table of Contents Power Purchase AgreementsSCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE is required to consolidate the VIE. None of SCE's PPAs resulted in consolidation at December 31, 2023 and 2022. See Note 3 for further discussion of PPAs that are considered variable interests.A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 and Note 13 for further discussion of SCE's PPAs. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets, unless the PPA is eligible for an election to designate as a normal purchase or sale, which is accounted for on an accrual basis as an executory contract. PPAs that do not meet the above classifications are accounted for on an accrual basis.Derivative InstrumentsSCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business.Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment.Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments.LeasesA lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the asset and has the right to direct the use. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets where each component is separately accounted for, SCE accounts for lease and non-lease components as a single lease component. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. SCE calculates and uses the rate implicit in the lease if the information is readily available or if not available, SCE uses its incremental borrowing rate in determining the present value of lease payments. Incremental borrowing rates are comprised of underlying risk-free rates and secured credit spreads relative to first mortgage bonds with like tenors of lease term durations. Lease right-of-use ("ROU") assets are based on the liability, subject to adjustments, such as lease incentives. The ROU assets also include any lease payments made at or before the commencement date. SCE excludes variable lease payments in measuring lease assets and lease liabilities. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. SCE elected to exclude from the balance sheet short-term leases of one year or less.SCE enters into power purchase agreements that may contain leases. This occurs when a power purchase agreement designates a specific power plant, SCE obtains substantially all of the economic benefits from the use of the plant and has the right to direct the use of the plant. SCE also enters into a number of agreements to lease property and equipment **Current (2025):** Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. SCE's Revenue from Contracts with Customers Provision of Electricity SCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Starting with SCE's 2021 GRC, revenue is authorized through quadrennial GRC proceedings, which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining three years are set by a methodology established in the GRC proceeding. As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other activities. 66 66 66 Table of Contents Table of Contents Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually. For SCE's electricity sales for both residential and non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity. Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE has the opportunity to receive revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue. Sales and Use Taxes SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. SCE's franchise fees billed to customers were $183 million, $168 million, and $172 million for the years ended December 31, 2024, 2023, and 2022, respectively. When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. SCE's Alternative Revenue Programs The CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors or provide for additional billings if the utility achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs of certain capital and operations and maintenance activities, costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs, and earn a reasonable return. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred, or at the time when specific events permitting billing of the additional revenues have been completed. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period. --- ## Modified: Property, Plant and Equipment **Key changes:** - Reworded sentence: "Estimated useful lives authorized by the CPUC in the 2021 GRC and weighted average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful LivesWeighted AverageUseful LivesGeneration plant10 years to 54 years39 yearsDistribution plant20 years to 67 years50 yearsTransmission plant30 years to 65 years53 yearsGeneral plant and other5 years to 60 years19 years 10 years to 54 years 20 years to 67 years 30 years to 65 years 5 years to 60 years 63 63 63 Table of Contents Table of Contents Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis." - Reworded sentence: "Nuclear fuel for Palo Verde is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures." - Reworded sentence: "Equity AFUDC represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress." **Prior (2024):** SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, employee benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ Estimated Useful Lives Useful Lives Generation plant ​ 10 years to 54 years ​ 39 years Distribution plant 20 years to 67 years ​ 50 years Transmission plant 30 years to 65 years ​ 54 years General plant and other 5 years to 60 years ​ 20 years ​ Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.5 billion, $2.5 billion and $2.0 billion for 2023, 2022 and 2021, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 4.1%, 4.2% and 3.7% for 2023, 2022 and 2021, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $157 million, $137 million and $118 million in 2023, 2022 and 2021, respectively, and is reflected in "Other income" on the consolidated statements of income. AFUDC debt was $74 million, $53 million and $50 million in 2023, 2022 and 2021, respectively and is reflected as a reduction of "Interest expense" on the consolidated statements of income. Major Maintenance Major maintenance costs for SCE's facilities and equipment are expensed as incurred. **Current (2025):** SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, employee benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives authorized by the CPUC in the 2021 GRC and weighted average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful LivesWeighted AverageUseful LivesGeneration plant10 years to 54 years39 yearsDistribution plant20 years to 67 years50 yearsTransmission plant30 years to 65 years53 yearsGeneral plant and other5 years to 60 years19 years 10 years to 54 years 20 years to 67 years 30 years to 65 years 5 years to 60 years 63 63 63 Table of Contents Table of Contents Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.8 billion, $2.5 billion and $2.5 billion for 2024, 2023 and 2022, respectively. Depreciation expense stated as a percentage of average original cost of depreciable utility plant was, on a composite basis, 4.3%, 4.1% and 4.2% for 2024, 2023 and 2022, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information. Nuclear fuel for Palo Verde is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. Equity AFUDC represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. The following table summarizes SCE's AFUDC related to debt and equity: Years ended December 31,(in millions)202420232022Debt AFUDC1$82 $74 $53 Equity AFUDC2187 157 137 Debt AFUDC1 Equity AFUDC2 1Reflected as a reduction of "Interest expense" on the consolidated statements of income. 2Reflected in "Other income" on the consolidated statements of income. Major Maintenance Major maintenance costs for SCE's facilities and equipment are expensed as incurred. --- ## Modified: Cash, Cash Equivalents and Restricted Cash **Key changes:** - Reworded sentence: "The cash equivalents were as follows: Edison InternationalSCEDecember 31,(in millions)2024202320242023Money market funds$101 $199 $ - $78 Cash is temporarily invested until required for check clearing." - Reworded sentence: "The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: December 31,(in millions)20242023Edison International:Cash and cash equivalents$193 $345 Short-term restricted cash140 35 Long-term restricted cash2451 152 Total cash, cash equivalents and restricted cash$684 $532 SCE:Cash and cash equivalents$78 $214 Short-term restricted cash136 33 Long-term restricted cash2451 151 Total cash, cash equivalents and restricted cash$565 $398 Short-term restricted cash1 Short-term restricted cash1 Short-term restricted cash 1 Long-term restricted cash2 Long-term restricted cash2 Long-term restricted cash 2 Short-term restricted cash1 Short-term restricted cash1 Short-term restricted cash 1 Long-term restricted cash2 Long-term restricted cash2 Long-term restricted cash 2 1Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets." **Prior (2024):** Cash equivalents consist of investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: ​ 70 70 Table of Contents​​​​​​​​​​​​​​ Edison International​SCE​​December 31, (in millions) 2023 2022 2023 2022Money market funds​$ 199​$ 784​$ 78​$ 647​Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period.The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:​​​​​​​​​December 31, (in millions) 2023 2022Edison International:​ ​​ ​Cash and cash equivalents​$ 345​$ 914Short-term restricted cash1​ 35​ 3Long-term restricted cash2​​ 152​​ - Total cash, cash equivalents and restricted cash​$ 532​$ 917SCE:​ ​​ ​Cash and cash equivalents​$ 214​$ 766Short-term restricted cash1​ 33​ - Long-term restricted cash2​​ 151​​ - Total cash, cash equivalents and restricted cash​$ 398​$ 7661Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.2The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information.Allowance for Uncollectible AccountsThe allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. 71 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​ Edison International​SCE​​December 31, (in millions) 2023 2022 2023 2022Money market funds​$ 199​$ 784​$ 78​$ 647​Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period.The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:​​​​​​​​​December 31, (in millions) 2023 2022Edison International:​ ​​ ​Cash and cash equivalents​$ 345​$ 914Short-term restricted cash1​ 35​ 3Long-term restricted cash2​​ 152​​ - Total cash, cash equivalents and restricted cash​$ 532​$ 917SCE:​ ​​ ​Cash and cash equivalents​$ 214​$ 766Short-term restricted cash1​ 33​ - Long-term restricted cash2​​ 151​​ - Total cash, cash equivalents and restricted cash​$ 398​$ 7661Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.2The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information.Allowance for Uncollectible AccountsThe allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Edison International ​ SCE ​ ​ December 31, (in millions) 2023 2022 2023 2022 Money market funds ​ $ 199 ​ $ 784 ​ $ 78 ​ $ 647 ​ Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (in millions) 2023 2022 Edison International: ​ ​ ​ ​ Cash and cash equivalents ​ $ 345 ​ $ 914 Short-term restricted cash1 Short-term restricted cash ​ 35 ​ 3 Long-term restricted cash2 Long-term restricted cash ​ ​ 152 ​ ​ - Total cash, cash equivalents and restricted cash ​ $ 532 ​ $ 917 SCE: ​ ​ ​ ​ Cash and cash equivalents ​ $ 214 ​ $ 766 Short-term restricted cash1 Short-term restricted cash ​ 33 ​ - Long-term restricted cash2 Long-term restricted cash ​ ​ 151 ​ ​ - Total cash, cash equivalents and restricted cash ​ $ 398 ​ $ 766 **Current (2025):** Cash equivalents consist of investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: Edison InternationalSCEDecember 31,(in millions)2024202320242023Money market funds$101 $199 $ - $78 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: December 31,(in millions)20242023Edison International:Cash and cash equivalents$193 $345 Short-term restricted cash140 35 Long-term restricted cash2451 152 Total cash, cash equivalents and restricted cash$684 $532 SCE:Cash and cash equivalents$78 $214 Short-term restricted cash136 33 Long-term restricted cash2451 151 Total cash, cash equivalents and restricted cash$565 $398 Short-term restricted cash1 Short-term restricted cash1 Short-term restricted cash 1 Long-term restricted cash2 Long-term restricted cash2 Long-term restricted cash 2 Short-term restricted cash1 Short-term restricted cash1 Short-term restricted cash 1 Long-term restricted cash2 Long-term restricted cash2 Long-term restricted cash 2 1Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information. --- ## Modified: There are inherent risks associated with owning and decommissioning nuclear power generation facilities and obtaining cost reimbursement, including, among other things, insufficiency of nuclear decommissioning trust funds, costs exceeding current estimates, execution risks, potential harmful effects on the environment and human health and the hazards of storage, handling and disposal of radioactive materials. Existing insurance and ratemaking arrangements may not protect SCE fully against losses from a nuclear incident. **Key changes:** - Reworded sentence: "SCE funds decommissioning costs with assets that are currently held in nuclear decommissioning trusts." - Reworded sentence: "If additional contributions to the nuclear decommissioning trust funds become necessary, recovery of any such additional funds through electric rates is subject to the CPUC's review and approval." - Reworded sentence: "Decommissioning costs ultimately incurred could exceed the current estimates and cost increases resulting from contractual disputes, delays in performance by DCG, elevated levels of inflation, or permitting delays, among other things, could cause SCE to materially overrun current decommissioning cost estimates and could materially impact the sufficiency of trust funds." - Reworded sentence: "There is no assurance that the CPUC would allow SCE to recover the required contribution made pursuant to this loss sharing program in the case of one or more nuclear incidents with claims that exceeded $500 million at a nuclear reactor which is participating in the program." **Prior (2024):** SCE's infrastructure is aging and could pose a risk to system reliability. SCE is also constructing utility owned storage to mitigate possible state-wide capacity shortages in 2024 and later years, and any delays in construction may result in those facilities being unavailable to reduce the impact of any capacity shortages in summer 2024. In addition, as described above, wildfires in SCE's service territory can cause significant public safety issues, property damage and operational issues. In order to mitigate these risks and execute on its strategy, SCE is engaged in a significant and ongoing infrastructure investment program. This investment program, which includes transmission projects, has inherent operational risks and elevates the need for effective execution in SCE's activities. 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, maintaining physical security of workforce and assets, maintaining cybersecurity of data and assets, and delays and interruptions in necessary supplies, including key components necessary for the timely construction of utility owned storage. 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. SCE's financial condition and results of operations could also be materially affected if SCE is unable to attract, train and retain a qualified workforce, including due to the constrained labor market in California and nationally and SCE's relations with its unionized workforce. For example, the increased electrification efforts in California and nationally have led to greater competition for certain skilled workers. 45 45 Table of ContentsThere are inherent risks associated with owning and decommissioning nuclear power generation facilities and obtaining cost reimbursement, including, among other things, insufficiency of nuclear decommissioning trust funds, costs exceeding current estimates, execution risks, potential harmful effects on the environment and human health and the hazards of storage, handling and disposal of radioactive materials. Existing insurance and ratemaking arrangements may not protect SCE fully against losses from a nuclear incident.SCE funds decommissioning costs with assets that are currently held in nuclear decommissioning trusts. Based upon the financial performance of the nuclear decommissioning trust fund investments, as well as the resolution of a number of other uncertainties, assumptions and estimates, additional contributions to the nuclear decommissioning trust's funds may be required. If additional contributions to the nuclear decommissioning trust funds become necessary, recovery of any such additional funds through electric rates is subject to the CPUC's review and approval.The costs of decommissioning San Onofre are subject to reasonableness reviews by the CPUC. These costs may not be recoverable through regulatory processes or otherwise unless SCE can establish that the costs were reasonably incurred. In addition, SCE faces inherent execution risks including such matters as the risks of human performance, workforce capabilities, public opposition, permitting delays, and governmental approvals. Decommissioning costs ultimately incurred could exceed the current estimates and cost increases resulting from contractual disputes, delays in performance by the contractor, elevated levels of inflation, or permitting delays, among other things, could cause SCE to materially overrun current decommissioning cost estimates and could materially impact the sufficiency of trust funds. See "Liquidity and Capital Resources - SCE - Decommissioning of San Onofre" in the MD&A.Even though San Onofre is being decommissioned, the presence of spent nuclear fuel still poses a potential risk of a nuclear incident. Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $16.2 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available of $450 million per site. In the case of San Onofre, the balance is covered by a U.S. Government indemnity. In the case of Palo Verde, the balance is covered by a loss sharing program among nuclear reactor licensees. There is no assurance that the CPUC would allow SCE to recover the required contribution made pursuant to this loss sharing program in the case of one or more nuclear incidents with claims that exceeded $450 million at a nuclear reactor which is participating in the program. If this public liability limit of $16.2 billion is insufficient, federal law contemplates that additional funds may be appropriated by Congress. There can be no assurance of SCE's ability to recover uninsured costs in the event the additional federal appropriations are insufficient. For more information on nuclear insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Nuclear Insurance."46 Table of Contents Table of Contents Table of Contents There are inherent risks associated with owning and decommissioning nuclear power generation facilities and obtaining cost reimbursement, including, among other things, insufficiency of nuclear decommissioning trust funds, costs exceeding current estimates, execution risks, potential harmful effects on the environment and human health and the hazards of storage, handling and disposal of radioactive materials. Existing insurance and ratemaking arrangements may not protect SCE fully against losses from a nuclear incident.SCE funds decommissioning costs with assets that are currently held in nuclear decommissioning trusts. Based upon the financial performance of the nuclear decommissioning trust fund investments, as well as the resolution of a number of other uncertainties, assumptions and estimates, additional contributions to the nuclear decommissioning trust's funds may be required. If additional contributions to the nuclear decommissioning trust funds become necessary, recovery of any such additional funds through electric rates is subject to the CPUC's review and approval.The costs of decommissioning San Onofre are subject to reasonableness reviews by the CPUC. These costs may not be recoverable through regulatory processes or otherwise unless SCE can establish that the costs were reasonably incurred. In addition, SCE faces inherent execution risks including such matters as the risks of human performance, workforce capabilities, public opposition, permitting delays, and governmental approvals. Decommissioning costs ultimately incurred could exceed the current estimates and cost increases resulting from contractual disputes, delays in performance by the contractor, elevated levels of inflation, or permitting delays, among other things, could cause SCE to materially overrun current decommissioning cost estimates and could materially impact the sufficiency of trust funds. See "Liquidity and Capital Resources - SCE - Decommissioning of San Onofre" in the MD&A.Even though San Onofre is being decommissioned, the presence of spent nuclear fuel still poses a potential risk of a nuclear incident. Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $16.2 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available of $450 million per site. In the case of San Onofre, the balance is covered by a U.S. Government indemnity. In the case of Palo Verde, the balance is covered by a loss sharing program among nuclear reactor licensees. There is no assurance that the CPUC would allow SCE to recover the required contribution made pursuant to this loss sharing program in the case of one or more nuclear incidents with claims that exceeded $450 million at a nuclear reactor which is participating in the program. If this public liability limit of $16.2 billion is insufficient, federal law contemplates that additional funds may be appropriated by Congress. There can be no assurance of SCE's ability to recover uninsured costs in the event the additional federal appropriations are insufficient. For more information on nuclear insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Nuclear Insurance." **Current (2025):** SCE funds decommissioning costs with assets that are currently held in nuclear decommissioning trusts. Based upon the financial performance of the nuclear decommissioning trust fund investments, as well as the resolution of a number of other uncertainties, assumptions and estimates, additional contributions to the nuclear decommissioning trust's funds may be required. If additional contributions to the nuclear decommissioning trust funds become necessary, recovery of any such additional funds through electric rates is subject to the CPUC's review and approval. The costs of decommissioning San Onofre are subject to reasonableness reviews by the CPUC. These costs may not be recoverable through regulatory processes or otherwise unless SCE can establish that the costs were reasonably incurred. In addition, SCE faces inherent execution risks including such matters as the risks of human performance, workforce capabilities, public opposition, permitting delays, and governmental approvals. Decommissioning costs ultimately incurred could exceed the current estimates and cost increases resulting from contractual disputes, delays in performance by DCG, elevated levels of inflation, or permitting delays, among other things, could cause SCE to materially overrun current decommissioning cost estimates and could materially impact the sufficiency of trust funds. See "Liquidity and Capital Resources - SCE - Decommissioning of San Onofre" in the MD&A. Even though San Onofre is being decommissioned, the presence of spent nuclear fuel still poses a potential risk of a nuclear incident. Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $16.3 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available of $500 million per site. In the case of San Onofre, the balance is covered by a U.S. Government indemnity. In the case of Palo Verde, the balance is covered by a loss sharing program among nuclear reactor licensees. There is no assurance that the CPUC would allow SCE to recover the required contribution made pursuant to this loss sharing program in the case of one or more nuclear incidents with claims that exceeded $500 million at a nuclear reactor which is participating in the program. If this public liability limit of $16.3 billion is insufficient, federal law contemplates that additional funds may be appropriated by Congress. There can be no assurance of SCE's ability to recover uninsured costs in the event the additional federal appropriations are insufficient. For more information on nuclear insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Nuclear Insurance." --- ## Modified: SCE's security program cannot prevent all attacks or incidents **Key changes:** - Reworded sentence: "SCE's systems have experienced, and will continue to face, cyber and physical security events involving malicious code, unauthorized access attempts, vandalism and other illicit activities." **Prior (2024):** SCE's systems have experienced, and will continue to face, cyber and physical security events involving vandalism, malicious code, unauthorized access attempts, and other illicit activities. No security program can completely shield its 48 48 Table of Contentssystems, infrastructure, and data from attacks, intrusions, or other catastrophic events that could result in their failure or reduced functionality. There is no guarantee that SCE's security program, including prevention, detection, mitigation, and remediation of risks, will prevent all future cyber and physical security incidents that could materially impact its operations or financial condition.SCE is not able to anticipate and prevent all physical and cyber attacks or information security breaches, and its investments in security resources, talent, and business practices may not be effective against all threat actors, particularly nation-state actors. Voluntary cybersecurity guidelines and practices cannot be applied to all businesses equally due to system capability, complexity, and resources for implementation. SCE's security tools and controls, including those supporting configuration management, identity and access management, network segmentation, and boundary defenses, may not fully protect against unauthorized access from internal and external threats. SCE's current security controls and defenses may also not protect against insider threats, including deliberate and unintentional actions (e.g., human error) and other emerging cybersecurity risks created by artificial intelligence, quantum computing, cyber skills shortages, and regulatory constraints. SCE's security program is prioritized based on known risks, available resources, and regulatory requirements, and therefore all SCE assets are not equally protected. For example, not all of SCE's information technology assets are inventoried, which could result in unmitigated vulnerabilities or slow the detection, investigation, and recovery of an incident. Known vulnerabilities in SCE's information technology and operational technology environments may not be remediated before an adversary could discover or exploit them. Attackers can also exploit new, unknown vulnerabilities (e.g., zero day) and vulnerabilities where a patch or other remediation measure is not yet available. SCE's transition to a more network-connected grid and increased deployment of new technologies increases the number of systems adversaries can targetSCE's operations require the continuous availability and deployment of critical information and operational technology systems, sensitive customer and employee data and infrastructure information, all of which are targets for malicious actors. New cyber and physical threats arise as SCE moves to an increasingly digital electric grid. For example, SCE's grid modernization efforts and the transition to a more connected grid, including the integration of new technologies and increased networking of operational technology assets such as substations, increases the threat surface and potential vulnerabilities that an adversary can target. As new systems are developed or procured by SCE, software development practices may not comprehensively prevent the introduction of new software vulnerabilities. Additionally, certain existing or legacy information technology, operational technology, and communications infrastructure use less secure protocols or configurations.Vendors and other third parties may be used to target and attack SCESCE interacts with a wide array of third parties and depends on vendors to provide it with products and services. Malicious actors may attack vendors to disrupt the services they provide to SCE, or to use those vendors as a conduit to attack SCE. SCE system data and architecture are also disclosed, either voluntarily or by mandate, to third parties and the public by regulators, employees, contractors, and vendors. This system data may be used by malicious actors to understand SCE's systems to prepare for a cyber or physical attack.The products and services provided by SCE's vendors may contain vulnerabilities or otherwise not adhere to SCE's enterprise cybersecurity standards (e.g., lack of encryption). Additionally, SCE's operational technology vendors have increasingly been targeted by threat actors. A compromise of equipment and/or exfiltration of SCE data, whether by physical or by electronic means, could result in loss or changes to confidential or sensitive information and interruption of business processes. For example, compromises to widely-used products and services such as MOVEit affected the supply chains of many industries, including companies in SCE's supply chain. While SCE vendors have experienced cybersecurity incidents, such incidents have not, to SCE's knowledge, resulted in a material impact to SCE to date.49 Table of Contents Table of Contents Table of Contents systems, infrastructure, and data from attacks, intrusions, or other catastrophic events that could result in their failure or reduced functionality. There is no guarantee that SCE's security program, including prevention, detection, mitigation, and remediation of risks, will prevent all future cyber and physical security incidents that could materially impact its operations or financial condition.SCE is not able to anticipate and prevent all physical and cyber attacks or information security breaches, and its investments in security resources, talent, and business practices may not be effective against all threat actors, particularly nation-state actors. Voluntary cybersecurity guidelines and practices cannot be applied to all businesses equally due to system capability, complexity, and resources for implementation. SCE's security tools and controls, including those supporting configuration management, identity and access management, network segmentation, and boundary defenses, may not fully protect against unauthorized access from internal and external threats. SCE's current security controls and defenses may also not protect against insider threats, including deliberate and unintentional actions (e.g., human error) and other emerging cybersecurity risks created by artificial intelligence, quantum computing, cyber skills shortages, and regulatory constraints. SCE's security program is prioritized based on known risks, available resources, and regulatory requirements, and therefore all SCE assets are not equally protected. For example, not all of SCE's information technology assets are inventoried, which could result in unmitigated vulnerabilities or slow the detection, investigation, and recovery of an incident. Known vulnerabilities in SCE's information technology and operational technology environments may not be remediated before an adversary could discover or exploit them. Attackers can also exploit new, unknown vulnerabilities (e.g., zero day) and vulnerabilities where a patch or other remediation measure is not yet available. SCE's transition to a more network-connected grid and increased deployment of new technologies increases the number of systems adversaries can targetSCE's operations require the continuous availability and deployment of critical information and operational technology systems, sensitive customer and employee data and infrastructure information, all of which are targets for malicious actors. New cyber and physical threats arise as SCE moves to an increasingly digital electric grid. For example, SCE's grid modernization efforts and the transition to a more connected grid, including the integration of new technologies and increased networking of operational technology assets such as substations, increases the threat surface and potential vulnerabilities that an adversary can target. As new systems are developed or procured by SCE, software development practices may not comprehensively prevent the introduction of new software vulnerabilities. Additionally, certain existing or legacy information technology, operational technology, and communications infrastructure use less secure protocols or configurations.Vendors and other third parties may be used to target and attack SCESCE interacts with a wide array of third parties and depends on vendors to provide it with products and services. Malicious actors may attack vendors to disrupt the services they provide to SCE, or to use those vendors as a conduit to attack SCE. SCE system data and architecture are also disclosed, either voluntarily or by mandate, to third parties and the public by regulators, employees, contractors, and vendors. This system data may be used by malicious actors to understand SCE's systems to prepare for a cyber or physical attack.The products and services provided by SCE's vendors may contain vulnerabilities or otherwise not adhere to SCE's enterprise cybersecurity standards (e.g., lack of encryption). Additionally, SCE's operational technology vendors have increasingly been targeted by threat actors. A compromise of equipment and/or exfiltration of SCE data, whether by physical or by electronic means, could result in loss or changes to confidential or sensitive information and interruption of business processes. For example, compromises to widely-used products and services such as MOVEit affected the supply chains of many industries, including companies in SCE's supply chain. While SCE vendors have experienced cybersecurity incidents, such incidents have not, to SCE's knowledge, resulted in a material impact to SCE to date. systems, infrastructure, and data from attacks, intrusions, or other catastrophic events that could result in their failure or reduced functionality. There is no guarantee that SCE's security program, including prevention, detection, mitigation, and remediation of risks, will prevent all future cyber and physical security incidents that could materially impact its operations or financial condition. SCE is not able to anticipate and prevent all physical and cyber attacks or information security breaches, and its investments in security resources, talent, and business practices may not be effective against all threat actors, particularly nation-state actors. Voluntary cybersecurity guidelines and practices cannot be applied to all businesses equally due to system capability, complexity, and resources for implementation. SCE's security tools and controls, including those supporting configuration management, identity and access management, network segmentation, and boundary defenses, may not fully protect against unauthorized access from internal and external threats. SCE's current security controls and defenses may also not protect against insider threats, including deliberate and unintentional actions (e.g., human error) and other emerging cybersecurity risks created by artificial intelligence, quantum computing, cyber skills shortages, and regulatory constraints. SCE's security program is prioritized based on known risks, available resources, and regulatory requirements, and therefore all SCE assets are not equally protected. For example, not all of SCE's information technology assets are inventoried, which could result in unmitigated vulnerabilities or slow the detection, investigation, and recovery of an incident. Known vulnerabilities in SCE's information technology and operational technology environments may not be remediated before an adversary could discover or exploit them. Attackers can also exploit new, unknown vulnerabilities (e.g., zero day) and vulnerabilities where a patch or other remediation measure is not yet available. **Current (2025):** SCE's systems have experienced, and will continue to face, cyber and physical security events involving malicious code, unauthorized access attempts, vandalism and other illicit activities. No security program can completely shield its systems, infrastructure, and data from attacks, intrusions, or other catastrophic events that could result in their failure or reduced functionality. There is no guarantee that SCE's security program, including prevention, detection, mitigation, and remediation of risks, will prevent all future cyber and physical security incidents that could materially impact its operations or financial condition. SCE is not able to anticipate and prevent all physical and cyber attacks or information security breaches, and its investments in security resources, talent, and business practices may not be effective against all threat actors, particularly nation-state actors. Voluntary cybersecurity guidelines and practices cannot be applied to all businesses equally due to system capability, complexity, and resources for implementation. SCE's security tools and controls, including those supporting configuration management, identity and access management, network segmentation, and boundary defenses, may not fully protect against unauthorized access from internal and external threats. SCE's current security controls and defenses may also not protect against insider threats, including deliberate and unintentional actions (e.g., human error) and other emerging cybersecurity risks created by artificial intelligence, quantum computing, cyber skills shortages, and regulatory constraints. SCE's security program is prioritized based on known risks, available resources, and regulatory requirements, and therefore all SCE assets are not equally protected. For example, not all of SCE's information technology assets are inventoried, which could result in unmitigated vulnerabilities or slow the detection, investigation, and recovery of an incident. Known vulnerabilities in SCE's information technology and operational technology environments may not be remediated before an adversary could discover or exploit them. Attackers can also exploit new, unknown vulnerabilities (e.g., zero day) and vulnerabilities where a patch or other remediation measure is not yet available. --- ## Modified: Consolidated Statements of Changes in EquityEdison International **Key changes:** - Reworded sentence: "Equity Attributable to Edison International ShareholdersNoncontrollingInterests(in millions, except per share amounts)PreferredStockCommonStockAccumulatedOtherComprehensiveLossRetainedEarningsSubtotalPreferenceStockTotalEquityBalance at December 31, 2021$1,977 $6,071 $(54)$7,894 $15,888 $1,901 $17,789 Net income - - - 717 717 107 824 Other comprehensive income - - 43 - 43 - 43 Common stock issued - 87 - - 87 - 87 Common stock dividends declared ($2.8375 per share) - - - (1,083)(1,083) - (1,083)Preferred stock dividend accrued ($53.75 per share for Series A and $42.08333 per share for Series B) - - - (74)(74) - (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) - - - - - (107)(107)Noncash stock-based compensation - 42 - - 42 - 42 Other1 - - - 1 - 1 Balance at December 31, 20221,978 6,200 (11)7,454 15,621 1,901 17,522 Net income - - - 1,284 1,284 123 1,407 Other comprehensive income - - 2 - 2 - 2 Common stock issued - 92 - - 92 - 92 Common stock dividends declared ($2.9925 per share) - - - (1,147)(1,147) - (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) - - - (108)(108) - (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock) - - - - - (123)(123)Noncash stock-based compensation - 46 - - 46 - 46 Preference stock issued, net of issuance cost - - - - - 542 542 Preferred stock repurchased(305) - - 16 (289) - (289)Balance at December 31, 20231,673 6,338 (9)7,499 15,501 2,443 17,944 Net income - - - 1,371 1,371 175 1,546 Other comprehensive income - - 9 - 9 - 9 Common stock issued - 158 - - 158 - 158 Common stock repurchased - (200) - - (200) - (200)Common stock dividends declared ($3.1675 per share) - - - (1,221)(1,221) - (1,221)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) - - - (88)(88) - (88)Dividends to noncontrolling interests ($24.418 - $199.479 per share for preference stock) - - - 6 6 (160)(154)Noncash stock-based compensation - 57 - - 57 - 57 Preference stock issued, net of issuance cost - - - - - 345 345 Preference stock redeemed - - - - - (628)(628)Preferred stock repurchased(28) - - - (28) - (28)Balance at December 31, 2024$1,645 $6,353 $ - $7,567 $15,565 $2,175 $17,740 The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 532 ​ $ 917 ​ $ 394 ​ The accompanying notes are an integral part of these consolidated financial statements.62 The accompanying notes are an integral part of these consolidated financial statements. 62 Table of Contents​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Consolidated Statements of Changes in Equity​​​​​​​Edison International​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Noncontrolling​​​​ Equity Attributable to Edison International Shareholders Interests​​​​​​​​​​​Accumulated ​​​​​​​​​​​​​​​​​​​Other ​​​​​​​​​​​​​Preferred​Common ​Comprehensive​Retained ​​​​Preference ​Total (in millions, except per share amounts)​Stock​Stock​Loss​Earnings​Subtotal​Stock​EquityBalance at December 31, 2020 $ - ​$ 5,962​$ (69)​$ 8,155​$ 14,048​$ 1,901​$ 15,949Net income​​ - ​ - ​ - ​ 819​ 819​ 106​ 925Other comprehensive income​​ - ​ - ​ 15​ - ​ 15​ - ​ 15Common stock issued​​ - ​ 71​ - ​ - ​​ 71​ - ​​ 71Preferred stock issued, net ​​ 1,977​​ - ​​ - ​​ - ​​ 1,977​​ - ​​ 1,977Common stock dividends declared ($2.6875 per share)​​ - ​ - ​ - ​ (1,021)​ (1,021)​ - ​ (1,021)Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B)​​ - ​​ - ​​ - ​​ (60)​​ (60)​​ - ​​ (60)Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (106)​ (106)Noncash stock-based compensation​​ - ​ 38​ - ​ 1​ 39​ - ​ 39Balance at December 31, 2021​$ 1,977​$ 6,071​$ (54)​$ 7,894​$ 15,888​$ 1,901​$ 17,789Net income​​ - ​ - ​ - ​ 717​ 717​ 107​ 824Other comprehensive income​​ - ​ - ​ 43​ - ​ 43​ - ​ 43Common stock issued​​ - ​ 87​ - ​ - ​ 87​ - ​ 87Common stock dividends declared ($2.8375 per share)​​ - ​ - ​ - ​ (1,083)​ (1,083)​ - ​ (1,083)Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B)​​ - ​​ - ​​ - ​​ (74)​​ (74)​​ - ​​ (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (107)​ (107)Noncash stock-based compensation​​ - ​ 42​ - ​ - ​ 42​ - ​ 42Other​​ 1​​ - ​​ - ​​ - ​​ 1​​ - ​​ 1Balance at December 31, 2022​$ 1,978​$ 6,200​$ (11)​$ 7,454​$ 15,621​$ 1,901​$ 17,522Net income​​ - ​ - ​ - ​ 1,284​ 1,284​ 123​ 1,407Other comprehensive income​​ - ​ - ​ 2​ - ​ 2​ - ​ 2Common stock issued​​ - ​ 92​ - ​ - ​ 92​ - ​ 92Common stock dividends declared ($2.9925 per share)​​ - ​ - ​ - ​ (1,147)​ (1,147)​ - ​ (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B)​​ - ​​ - ​​ - ​​ (108)​​ (108)​​ - ​​ (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (123)​ (123)Noncash stock-based compensation​​ - ​ 46​ - ​ - ​ 46​ - ​ 46Preference stock issued, net of issuance cost​​ - ​​ - ​​ - ​​ - ​​ - ​​ 542​​ 542Preferred stock repurchased​​ (305)​​ - ​​ - ​​ 16​​ (289)​​ - ​​ (289)Balance at December 31, 2023​$ 1,673​$ 6,338​$ (9)​$ 7,499​$ 15,501​$ 2,443​$ 17,944​​​The accompanying notes are an integral part of these consolidated financial statements.63 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Consolidated Statements of Changes in Equity​​​​​​​Edison International​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Noncontrolling​​​​ Equity Attributable to Edison International Shareholders Interests​​​​​​​​​​​Accumulated ​​​​​​​​​​​​​​​​​​​Other ​​​​​​​​​​​​​Preferred​Common ​Comprehensive​Retained ​​​​Preference ​Total (in millions, except per share amounts)​Stock​Stock​Loss​Earnings​Subtotal​Stock​EquityBalance at December 31, 2020 $ - ​$ 5,962​$ (69)​$ 8,155​$ 14,048​$ 1,901​$ 15,949Net income​​ - ​ - ​ - ​ 819​ 819​ 106​ 925Other comprehensive income​​ - ​ - ​ 15​ - ​ 15​ - ​ 15Common stock issued​​ - ​ 71​ - ​ - ​​ 71​ - ​​ 71Preferred stock issued, net ​​ 1,977​​ - ​​ - ​​ - ​​ 1,977​​ - ​​ 1,977Common stock dividends declared ($2.6875 per share)​​ - ​ - ​ - ​ (1,021)​ (1,021)​ - ​ (1,021)Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B)​​ - ​​ - ​​ - ​​ (60)​​ (60)​​ - ​​ (60)Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (106)​ (106)Noncash stock-based compensation​​ - ​ 38​ - ​ 1​ 39​ - ​ 39Balance at December 31, 2021​$ 1,977​$ 6,071​$ (54)​$ 7,894​$ 15,888​$ 1,901​$ 17,789Net income​​ - ​ - ​ - ​ 717​ 717​ 107​ 824Other comprehensive income​​ - ​ - ​ 43​ - ​ 43​ - ​ 43Common stock issued​​ - ​ 87​ - ​ - ​ 87​ - ​ 87Common stock dividends declared ($2.8375 per share)​​ - ​ - ​ - ​ (1,083)​ (1,083)​ - ​ (1,083)Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B)​​ - ​​ - ​​ - ​​ (74)​​ (74)​​ - ​​ (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (107)​ (107)Noncash stock-based compensation​​ - ​ 42​ - ​ - ​ 42​ - ​ 42Other​​ 1​​ - ​​ - ​​ - ​​ 1​​ - ​​ 1Balance at December 31, 2022​$ 1,978​$ 6,200​$ (11)​$ 7,454​$ 15,621​$ 1,901​$ 17,522Net income​​ - ​ - ​ - ​ 1,284​ 1,284​ 123​ 1,407Other comprehensive income​​ - ​ - ​ 2​ - ​ 2​ - ​ 2Common stock issued​​ - ​ 92​ - ​ - ​ 92​ - ​ 92Common stock dividends declared ($2.9925 per share)​​ - ​ - ​ - ​ (1,147)​ (1,147)​ - ​ (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B)​​ - ​​ - ​​ - ​​ (108)​​ (108)​​ - ​​ (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (123)​ (123)Noncash stock-based compensation​​ - ​ 46​ - ​ - ​ 46​ - ​ 46Preference stock issued, net of issuance cost​​ - ​​ - ​​ - ​​ - ​​ - ​​ 542​​ 542Preferred stock repurchased​​ (305)​​ - ​​ - ​​ 16​​ (289)​​ - ​​ (289)Balance at December 31, 2023​$ 1,673​$ 6,338​$ (9)​$ 7,499​$ 15,501​$ 2,443​$ 17,944​​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** Equity Attributable to Edison International ShareholdersNoncontrollingInterests(in millions, except per share amounts)PreferredStockCommonStockAccumulatedOtherComprehensiveLossRetainedEarningsSubtotalPreferenceStockTotalEquityBalance at December 31, 2021$1,977 $6,071 $(54)$7,894 $15,888 $1,901 $17,789 Net income - - - 717 717 107 824 Other comprehensive income - - 43 - 43 - 43 Common stock issued - 87 - - 87 - 87 Common stock dividends declared ($2.8375 per share) - - - (1,083)(1,083) - (1,083)Preferred stock dividend accrued ($53.75 per share for Series A and $42.08333 per share for Series B) - - - (74)(74) - (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) - - - - - (107)(107)Noncash stock-based compensation - 42 - - 42 - 42 Other1 - - - 1 - 1 Balance at December 31, 20221,978 6,200 (11)7,454 15,621 1,901 17,522 Net income - - - 1,284 1,284 123 1,407 Other comprehensive income - - 2 - 2 - 2 Common stock issued - 92 - - 92 - 92 Common stock dividends declared ($2.9925 per share) - - - (1,147)(1,147) - (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) - - - (108)(108) - (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock) - - - - - (123)(123)Noncash stock-based compensation - 46 - - 46 - 46 Preference stock issued, net of issuance cost - - - - - 542 542 Preferred stock repurchased(305) - - 16 (289) - (289)Balance at December 31, 20231,673 6,338 (9)7,499 15,501 2,443 17,944 Net income - - - 1,371 1,371 175 1,546 Other comprehensive income - - 9 - 9 - 9 Common stock issued - 158 - - 158 - 158 Common stock repurchased - (200) - - (200) - (200)Common stock dividends declared ($3.1675 per share) - - - (1,221)(1,221) - (1,221)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) - - - (88)(88) - (88)Dividends to noncontrolling interests ($24.418 - $199.479 per share for preference stock) - - - 6 6 (160)(154)Noncash stock-based compensation - 57 - - 57 - 57 Preference stock issued, net of issuance cost - - - - - 345 345 Preference stock redeemed - - - - - (628)(628)Preferred stock repurchased(28) - - - (28) - (28)Balance at December 31, 2024$1,645 $6,353 $ - $7,567 $15,565 $2,175 $17,740 The accompanying notes are an integral part of these consolidated financial statements. Common stock dividends declared ($2.8375 per share) Preferred stock dividend accrued ($53.75 per share for Series A and $42.08333 per share for Series B) Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock) Common stock dividends declared ($2.9925 per share) Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock) Common stock dividends declared ($3.1675 per share) Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B) Dividends to noncontrolling interests ($24.418 - $199.479 per share for preference stock) 54 54 54 Table of Contents Table of Contents (This page has been left blank intentionally.) 55 55 55 Table of Contents Table of Contents --- ## Modified: Recurring Fair Value Measurements **Key changes:** - Reworded sentence: "As of December 31, 2024 and 2023, nonperformance risk was not material for Edison International or SCE." - Reworded sentence: "Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates." - Reworded sentence: "Level 3 - This level consists of CRRs, which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices)." - Reworded sentence: "Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted 73 73 73 Table of Contents Table of Contents when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts." - Reworded sentence: "SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: December 31, 2024(in millions)Level 1Level 2Level 3NettingandCollateral1TotalAssets at fair valueDerivative contracts$ - $1 $212 $(1)$212 Other - 22 - - 22 Nuclear decommissioning trusts:Stocks21,631 - - - 1,631 Fixed Income3975 1,618 - - 2,593 Short-term investments, primarily cash equivalents128 39 - - 167 Subtotal of nuclear decommissioning trusts42,734 1,657 - - 4,391 Total assets2,734 1,680 212 (1)4,625 Liabilities at fair valueDerivative contracts - 47 - (47) - Total liabilities - 47 - (47) - Net assets$2,734 $1,633 $212 $46 $4,625 Netting and Collateral1 Stocks2 Fixed Income3 Subtotal of nuclear decommissioning trusts4 December 31, 2023(in millions)Level 1Level 2Level 3NettingandCollateral1TotalAssets at fair valueDerivative contracts$ - $3 $91 $(3)$91 Money market funds and other78 22 - - 100 Nuclear decommissioning trusts:Stocks21,658 - - - 1,658 Fixed Income3923 1,421 - - 2,344 Short-term investments, primarily cash equivalents169 104 - - 273 Subtotal of nuclear decommissioning trusts42,750 1,525 - - 4,275 Total assets2,828 1,550 91 (3)4,466 Liabilities at fair valueDerivative contracts - 77 - (77) - Total liabilities - 77 - (77) - Net assets$2,828 $1,473 $91 $74 $4,466 Netting and Collateral1 Stocks2 Fixed Income3 Subtotal of nuclear decommissioning trusts4 1Represents the netting of assets and liabilities under master netting agreements and cash collateral." **Prior (2024):** Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2023 and 2022, nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 - The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds. Level 2 - Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter commodity derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter commodity derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing 85 85 Table of Contentsmodels include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.Level 3 - This level includes congestion revenue rights ("CRRs"), which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. Edison International Parent and Other does not have any Level 3 assets and liabilities.Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.SCEThe following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:​​​​​​​​​​​​​​​​​​ December 31, 2023​​​​​​​​​​​Netting​​​​​​​​​​​​​​ and ​​ (in millions) Level 1 Level 2 Level 3 Collateral1 TotalAssets at fair value​​​​​​​​​​​​​​​Derivative contracts​$ - ​$ 3​$ 91​$ (3)​$ 91Money market funds and other​ 78​​ 22​​ - ​​ - ​ 100Nuclear decommissioning trusts:​ ​​​​​​​​​​ ​​Stocks2​ 1,658​​ - ​​ - ​​ - ​ 1,658Fixed Income3​ 923​​ 1,421​​ - ​​ - ​ 2,344Short-term investments, primarily cash equivalents​ 169​​ 104​​ - ​​ - ​ 273Subtotal of nuclear decommissioning trusts4​ 2,750​ 1,525​ - ​ - ​ 4,275Total assets​ 2,828​ 1,550​ 91​ (3) ​ 4,466Liabilities at fair value​ ​ ​ ​ ​ Derivative contracts​ - ​​ 77​​ - ​​ (77) ​ - Total liabilities​ - ​ 77​ - ​ (77) ​ - Net assets ​$ 2,828​$ 1,473​$ 91​$ 74​$ 4,466​86 Table of Contents Table of Contents Table of Contents models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.Level 3 - This level includes congestion revenue rights ("CRRs"), which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. Edison International Parent and Other does not have any Level 3 assets and liabilities.Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.SCEThe following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:​​​​​​​​​​​​​​​​​​ December 31, 2023​​​​​​​​​​​Netting​​​​​​​​​​​​​​ and ​​ (in millions) Level 1 Level 2 Level 3 Collateral1 TotalAssets at fair value​​​​​​​​​​​​​​​Derivative contracts​$ - ​$ 3​$ 91​$ (3)​$ 91Money market funds and other​ 78​​ 22​​ - ​​ - ​ 100Nuclear decommissioning trusts:​ ​​​​​​​​​​ ​​Stocks2​ 1,658​​ - ​​ - ​​ - ​ 1,658Fixed Income3​ 923​​ 1,421​​ - ​​ - ​ 2,344Short-term investments, primarily cash equivalents​ 169​​ 104​​ - ​​ - ​ 273Subtotal of nuclear decommissioning trusts4​ 2,750​ 1,525​ - ​ - ​ 4,275Total assets​ 2,828​ 1,550​ 91​ (3) ​ 4,466Liabilities at fair value​ ​ ​ ​ ​ Derivative contracts​ - ​​ 77​​ - ​​ (77) ​ - Total liabilities​ - ​ 77​ - ​ (77) ​ - Net assets ​$ 2,828​$ 1,473​$ 91​$ 74​$ 4,466​ models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 - This level includes congestion revenue rights ("CRRs"), which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Netting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and ​ ​ (in millions) Level 1 Level 2 Level 3 Collateral1 Total Assets at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative contracts ​ $ - ​ $ 3 ​ $ 91 ​ $ (3) ​ $ 91 Money market funds and other ​ 78 ​ ​ 22 ​ ​ - ​ ​ - ​ 100 Nuclear decommissioning trusts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stocks2 ​ 1,658 ​ ​ - ​ ​ - ​ ​ - ​ 1,658 Fixed Income3 ​ 923 ​ ​ 1,421 ​ ​ - ​ ​ - ​ 2,344 Short-term investments, primarily cash equivalents ​ 169 ​ ​ 104 ​ ​ - ​ ​ - ​ 273 Subtotal of nuclear decommissioning trusts4 ​ 2,750 ​ 1,525 ​ - ​ - ​ 4,275 Total assets ​ 2,828 ​ 1,550 ​ 91 ​ (3) ​ 4,466 Liabilities at fair value ​ ​ ​ ​ ​ Derivative contracts ​ - ​ ​ 77 ​ ​ - ​ ​ (77) ​ - Total liabilities ​ - ​ 77 ​ - ​ (77) ​ - Net assets ​ $ 2,828 ​ $ 1,473 ​ $ 91 ​ $ 74 ​ $ 4,466 ​ 86 86 Table of Contents​​​​​​​​​​​​​​​​​ December 31, 2022​​​​​​​​​​​Netting​​​​​​​​​​​​​​ and ​​ (in millions) Level 1 Level 2 Level 3 Collateral1 ​TotalAssets at fair value​​​​​​​​​​​​​​​Derivative contracts​$ - ​$ 392​$ 67​$ (218)​$ 241Money market funds and other​ 647​ 22​ - ​ - ​ 669Nuclear decommissioning trusts:​ ​ ​ ​ ​ Stocks2​ 1,610​ - ​ - ​ - ​ 1,610Fixed Income3​ 941​ 1,281​ - ​ - ​ 2,222Short-term investments, primarily cash equivalents​ 137​ 64​ - ​ - ​ 201Subtotal of nuclear decommissioning trusts4​ 2,688​ 1,345​ - ​ - ​ 4,033Total assets​ 3,335​ 1,759​ 67​ (218)​ 4,943Liabilities at fair value​ ​ ​ ​ ​ Derivative contracts​ - ​ 116​ 4​ (119)​ 1Total liabilities​ - ​ 116​ 4​ (119)​ 1Net assets​$ 3,335​$ 1,643​$ 63​$ (99)​$ 4,9421Represents the netting of assets and liabilities under master netting agreements and cash collateral.2Approximately 75% and 74% of SCE's equity investments were in companies located in the United States at December 31, 2023 and 2022, respectively.3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $106 million and $49 million at December 31, 2023 and 2022, respectively.4Excludes net payables of $102 million and $85 million at December 31, 2023 and 2022, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.SCE Fair Value of Level 3The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:​​​​​​​Years ended December 31, (in millions)2023​2022Fair value of net assets at beginning of period$ 63​$ 44Sales​ (1)​​ (8)Settlements (40)​ (54)Total realized/unrealized gains1 69​ 81Fair value of net assets at end of period$ 91​$ 631Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.There were no material transfers into or out of Level 3 during 2023 and 2022.The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:​​​​​​​​​​​​​​​ Fair Value​Significant​​​Weighted​​(in millions)​ Unobservable​Range​Average​ Assets Liabilities Input (per MWh) (per MWh)Congestion revenue rights​ ​​ ​​ ​ ​ ​December 31, 2023​$ 91​$ - CAISO CRR auction prices $(6.44) - $16,574.36​$ 2.74December 31, 2022​ 67​ 4 CAISO CRR auction prices (7.91) - 3,856.67​​ 1.64​87 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​​​​ December 31, 2022​​​​​​​​​​​Netting​​​​​​​​​​​​​​ and ​​ (in millions) Level 1 Level 2 Level 3 Collateral1 ​TotalAssets at fair value​​​​​​​​​​​​​​​Derivative contracts​$ - ​$ 392​$ 67​$ (218)​$ 241Money market funds and other​ 647​ 22​ - ​ - ​ 669Nuclear decommissioning trusts:​ ​ ​ ​ ​ Stocks2​ 1,610​ - ​ - ​ - ​ 1,610Fixed Income3​ 941​ 1,281​ - ​ - ​ 2,222Short-term investments, primarily cash equivalents​ 137​ 64​ - ​ - ​ 201Subtotal of nuclear decommissioning trusts4​ 2,688​ 1,345​ - ​ - ​ 4,033Total assets​ 3,335​ 1,759​ 67​ (218)​ 4,943Liabilities at fair value​ ​ ​ ​ ​ Derivative contracts​ - ​ 116​ 4​ (119)​ 1Total liabilities​ - ​ 116​ 4​ (119)​ 1Net assets​$ 3,335​$ 1,643​$ 63​$ (99)​$ 4,9421Represents the netting of assets and liabilities under master netting agreements and cash collateral.2Approximately 75% and 74% of SCE's equity investments were in companies located in the United States at December 31, 2023 and 2022, respectively.3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $106 million and $49 million at December 31, 2023 and 2022, respectively.4Excludes net payables of $102 million and $85 million at December 31, 2023 and 2022, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.SCE Fair Value of Level 3The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:​​​​​​​Years ended December 31, (in millions)2023​2022Fair value of net assets at beginning of period$ 63​$ 44Sales​ (1)​​ (8)Settlements (40)​ (54)Total realized/unrealized gains1 69​ 81Fair value of net assets at end of period$ 91​$ 631Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.There were no material transfers into or out of Level 3 during 2023 and 2022.The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:​​​​​​​​​​​​​​​ Fair Value​Significant​​​Weighted​​(in millions)​ Unobservable​Range​Average​ Assets Liabilities Input (per MWh) (per MWh)Congestion revenue rights​ ​​ ​​ ​ ​ ​December 31, 2023​$ 91​$ - CAISO CRR auction prices $(6.44) - $16,574.36​$ 2.74December 31, 2022​ 67​ 4 CAISO CRR auction prices (7.91) - 3,856.67​​ 1.64​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Netting ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ and ​ ​ (in millions) Level 1 Level 2 Level 3 Collateral1 ​ Total Assets at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative contracts ​ $ - ​ $ 392 ​ $ 67 ​ $ (218) ​ $ 241 Money market funds and other ​ 647 ​ 22 ​ - ​ - ​ 669 Nuclear decommissioning trusts: ​ ​ ​ ​ ​ Stocks2 ​ 1,610 ​ - ​ - ​ - ​ 1,610 Fixed Income3 ​ 941 ​ 1,281 ​ - ​ - ​ 2,222 Short-term investments, primarily cash equivalents ​ 137 ​ 64 ​ - ​ - ​ 201 Subtotal of nuclear decommissioning trusts4 ​ 2,688 ​ 1,345 ​ - ​ - ​ 4,033 Total assets ​ 3,335 ​ 1,759 ​ 67 ​ (218) ​ 4,943 Liabilities at fair value ​ ​ ​ ​ ​ Derivative contracts ​ - ​ 116 ​ 4 ​ (119) ​ 1 Total liabilities ​ - ​ 116 ​ 4 ​ (119) ​ 1 Net assets ​ $ 3,335 ​ $ 1,643 ​ $ 63 ​ $ (99) ​ $ 4,942 SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) 2023 ​ 2022 Fair value of net assets at beginning of period $ 63 ​ $ 44 Sales ​ (1) ​ ​ (8) Settlements (40) ​ (54) Total realized/unrealized gains1 69 ​ 81 Fair value of net assets at end of period $ 91 ​ $ 63 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. There were no material transfers into or out of Level 3 during 2023 and 2022. The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Significant ​ ​ ​ Weighted ​ ​ (in millions) ​ Unobservable ​ Range ​ Average ​ Assets Liabilities Input (per MWh) (per MWh) Congestion revenue rights ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ $ 91 ​ $ - CAISO CRR auction prices $(6.44) - $16,574.36 ​ $ 2.74 December 31, 2022 ​ 67 ​ 4 CAISO CRR auction prices (7.91) - 3,856.67 ​ ​ 1.64 ​ 87 87 **Current (2025):** Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2024 and 2023, nonperformance risk was not material for Edison International or SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 - The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds. Level 2 - Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter commodity derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter commodity derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 - This level consists of CRRs, which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted 73 73 73 Table of Contents Table of Contents when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: December 31, 2024(in millions)Level 1Level 2Level 3NettingandCollateral1TotalAssets at fair valueDerivative contracts$ - $1 $212 $(1)$212 Other - 22 - - 22 Nuclear decommissioning trusts:Stocks21,631 - - - 1,631 Fixed Income3975 1,618 - - 2,593 Short-term investments, primarily cash equivalents128 39 - - 167 Subtotal of nuclear decommissioning trusts42,734 1,657 - - 4,391 Total assets2,734 1,680 212 (1)4,625 Liabilities at fair valueDerivative contracts - 47 - (47) - Total liabilities - 47 - (47) - Net assets$2,734 $1,633 $212 $46 $4,625 Netting and Collateral1 Stocks2 Fixed Income3 Subtotal of nuclear decommissioning trusts4 December 31, 2023(in millions)Level 1Level 2Level 3NettingandCollateral1TotalAssets at fair valueDerivative contracts$ - $3 $91 $(3)$91 Money market funds and other78 22 - - 100 Nuclear decommissioning trusts:Stocks21,658 - - - 1,658 Fixed Income3923 1,421 - - 2,344 Short-term investments, primarily cash equivalents169 104 - - 273 Subtotal of nuclear decommissioning trusts42,750 1,525 - - 4,275 Total assets2,828 1,550 91 (3)4,466 Liabilities at fair valueDerivative contracts - 77 - (77) - Total liabilities - 77 - (77) - Net assets$2,828 $1,473 $91 $74 $4,466 Netting and Collateral1 Stocks2 Fixed Income3 Subtotal of nuclear decommissioning trusts4 1Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2Approximately 75% of SCE's equity investments were in companies located in the United States at December 31, 2024 and 2023. 3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $94 million and $106 million at December 31, 2024 and 2023, respectively. 4Excludes net payables of $105 million and $102 million at December 31, 2024 and 2023, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. 74 74 74 Table of Contents Table of Contents SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Years ended December 31,(in millions)20242023Fair value of net assets at beginning of period$91 $63 Sales(1)(1)Settlements14 (40)Total realized/unrealized gains, net of losses1108 69 Fair value of net assets at end of period$212 $91 Total realized/unrealized gains, net of losses1 1Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. There were no material transfers into or out of Level 3 during 2024 and 2023. The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 CRR assets and liabilities: Fair Value(in millions)SignificantUnobservableInputRange(per MWh)WeightedAverage(per MWh)AssetsLiabilitiesDecember 31, 2024$212$ - CAISO CRR auction prices$(4.64) - $50,048.16$27.20December 31, 202391 - CAISO CRR auction prices(6.44) - 16,574.362.74 $(4.64) - $50,048.16 (6.44) - 16,574.36 Level 3 Fair Value Uncertainty For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value, respectively. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information. There are no securities classified as Level 3 in the nuclear decommissioning trusts. SCE's investment policies and CPUC requirements place limitations on the types and investment grade ratings of the securities that may be held by the nuclear decommissioning trust funds. These policies restrict the trust from holding alternative investments and limit the trust funds' exposures to investments in highly illiquid markets. With respect to equity and fixed income securities, the trustee obtains prices from third-party pricing services which SCE is able to independently corroborate as described below. The trustee monitors prices supplied by pricing services, including reviewing prices against defined parameters' tolerances and performs research and resolves variances beyond the set parameters. SCE corroborates the fair values of securities by comparison to other market-based price sources obtained by SCE's investment managers. Differences outside established thresholds are followed-up with the trustee and resolved. For each reporting period, SCE reviews the trustee determined fair value hierarchy and overrides the trustee level classification when appropriate. See Note 10 for more information on nuclear decommissioning trusts. Edison International Parent and Other Edison International Parent and Other assets measured at fair value and classified as Level 1 consisted of money market funds of $101 million and $121 million at December 31, 2024 and 2023, respectively. Assets measured at fair value and classified as Level 2 were immaterial at December 31, 2024 and 2023. There were no securities classified as Level 3 for Edison International Parent and Other at December 31, 2024 and 2023. 75 75 75 Table of Contents Table of Contents --- ## Modified: If SCE is unable to operate efficiently and to effectively and timely respond to the changes that the electricity industry is undergoing, as a result of increased load requirements, competition, technological advances, and changes to the regulatory environment, SCE's business model, financial condition and results of operations could be materially impacted. **Key changes:** - Reworded sentence: "This change will require modernization of the electric distribution grid to, among other things, accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs." - Reworded sentence: "For example, some customers in California who generate their own power are not currently required to pay all transmission and distribution charges and non-bypassable charges, subject to limitations, which results in increased costs for other customers." - Reworded sentence: "See "Business - SCE - Competition." 40 40 40 Table of Contents Table of Contents" **Prior (2024):** SCE's ability to efficiently operate and implement process changes has a direct impact on its ability to execute its strategy, its customer rates and affordability of electricity. Even if SCE's costs are recoverable, the necessary costs of operations and investments supporting safety, reliability, resilience and being ready to meet California's clean energy goals will negatively impact the affordability of SCE's customer rates, may cause reputational harm and cause increased load departures. Customers and third parties are increasingly deploying DERs, such as solar generation, energy storage, energy efficiency and demand response technologies. California's environmental policy objectives are accelerating the pace and scope of industry change. This change will require modernization of the electric distribution grid to, among other things, 47 47 Table of Contentsaccommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and electric vehicle infrastructure. If SCE is unable to operate efficiently and adapt to these changes, its business model, its ability to execute on its strategy, and ultimately its financial condition and results of operations could be materially impacted.Customer-owned generation and load departures to CCAs or Electric Service Providers each reduce the amount of electricity that customers purchase from utilities and have the effect of increasing utility rates unless customer rates are designed to allocate the costs of the distribution grid across all customers that benefit from its use. For example, some customers in California who generate their own power are not currently required to pay all transmission and distribution charges and non-bypassable charges, subject to limitations, which results in increased costs for those customers who do not own their generation. If regulations aren't changed such that customers pay their share of transmission and distribution costs and non-bypassable charges, for example through a 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.In addition, the FERC has opened transmission development to competition from independent developers, allowing such developers to compete with incumbent utilities for the construction and operation of transmission facilities. For more information. See "Business - SCE - Competition."RISKS RELATING TO EDISON INTERNATIONAL AND SOUTHERN CALIFORNIA EDISON COMPANYCybersecurity and Physical Security RisksSuccessful attacks on SCE information and operational technology systems and infrastructure could have a material impact on SCE's operations or financial condition Edison International and SCE systems are targets for physical and cyber attacks. Regulators such as NERC and U.S. Government agencies, including the Departments of Defense, Homeland Security, and Energy, have increasingly stressed that threat sources continue to seek to identify and exploit vulnerabilities in the U.S. national electric grid and other critical energy infrastructures, and that such attacks and disruptions, both physical and cyber, are highly sophisticated and dynamic. Several U.S. Government agencies have highlighted the increasing risks related to physical and cybersecurity attacks, including ransomware attacks, related to the electric sector, including its supply chain, and that the risks may escalate during periods of heightened geopolitical tensions.SCE requires the uninterrupted use of sophisticated information and operational technology systems and infrastructure to monitor and operate the electric grid. In the regular course of SCE's business, it also handles a range of sensitive infrastructure, security, employee, customer, and business systems information. If SCE's information technology and operational technology systems' security were to be compromised by physical or electronic means or a critical system or technology failure were to occur without timely recovery, including failure of new technology to be implemented as designed, SCE could be unable to fulfill critical business functions and/or sensitive information could be misappropriated or compromised. 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.SCE's security program cannot prevent all attacks SCE's systems have experienced, and will continue to face, cyber and physical security events involving vandalism, malicious code, unauthorized access attempts, and other illicit activities. No security program can completely shield its 48 Table of Contents Table of Contents Table of Contents accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and electric vehicle infrastructure. If SCE is unable to operate efficiently and adapt to these changes, its business model, its ability to execute on its strategy, and ultimately its financial condition and results of operations could be materially impacted.Customer-owned generation and load departures to CCAs or Electric Service Providers each reduce the amount of electricity that customers purchase from utilities and have the effect of increasing utility rates unless customer rates are designed to allocate the costs of the distribution grid across all customers that benefit from its use. For example, some customers in California who generate their own power are not currently required to pay all transmission and distribution charges and non-bypassable charges, subject to limitations, which results in increased costs for those customers who do not own their generation. If regulations aren't changed such that customers pay their share of transmission and distribution costs and non-bypassable charges, for example through a 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.In addition, the FERC has opened transmission development to competition from independent developers, allowing such developers to compete with incumbent utilities for the construction and operation of transmission facilities. For more information. See "Business - SCE - Competition."RISKS RELATING TO EDISON INTERNATIONAL AND SOUTHERN CALIFORNIA EDISON COMPANYCybersecurity and Physical Security RisksSuccessful attacks on SCE information and operational technology systems and infrastructure could have a material impact on SCE's operations or financial condition Edison International and SCE systems are targets for physical and cyber attacks. Regulators such as NERC and U.S. Government agencies, including the Departments of Defense, Homeland Security, and Energy, have increasingly stressed that threat sources continue to seek to identify and exploit vulnerabilities in the U.S. national electric grid and other critical energy infrastructures, and that such attacks and disruptions, both physical and cyber, are highly sophisticated and dynamic. Several U.S. Government agencies have highlighted the increasing risks related to physical and cybersecurity attacks, including ransomware attacks, related to the electric sector, including its supply chain, and that the risks may escalate during periods of heightened geopolitical tensions.SCE requires the uninterrupted use of sophisticated information and operational technology systems and infrastructure to monitor and operate the electric grid. In the regular course of SCE's business, it also handles a range of sensitive infrastructure, security, employee, customer, and business systems information. If SCE's information technology and operational technology systems' security were to be compromised by physical or electronic means or a critical system or technology failure were to occur without timely recovery, including failure of new technology to be implemented as designed, SCE could be unable to fulfill critical business functions and/or sensitive information could be misappropriated or compromised. 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.SCE's security program cannot prevent all attacks SCE's systems have experienced, and will continue to face, cyber and physical security events involving vandalism, malicious code, unauthorized access attempts, and other illicit activities. No security program can completely shield its accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and electric vehicle infrastructure. If SCE is unable to operate efficiently and adapt to these changes, its business model, its ability to execute on its strategy, and ultimately its financial condition and results of operations could be materially impacted. Customer-owned generation and load departures to CCAs or Electric Service Providers each reduce the amount of electricity that customers purchase from utilities and have the effect of increasing utility rates unless customer rates are designed to allocate the costs of the distribution grid across all customers that benefit from its use. For example, some customers in California who generate their own power are not currently required to pay all transmission and distribution charges and non-bypassable charges, subject to limitations, which results in increased costs for those customers who do not own their generation. If regulations aren't changed such that customers pay their share of transmission and distribution costs and non-bypassable charges, for example through a 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. In addition, the FERC has opened transmission development to competition from independent developers, allowing such developers to compete with incumbent utilities for the construction and operation of transmission facilities. For more information. See "Business - SCE - Competition." **Current (2025):** SCE's ability to efficiently operate and implement process changes has a direct impact on its ability to execute its strategy, its customer rates and affordability of electricity. Even if SCE's costs are recoverable, the necessary costs of operations and investments supporting safety, reliability, resilience and being ready to meet California's clean energy goals will negatively impact the affordability of SCE's customer rates, may cause reputational harm and cause increased load departures. Customers and third parties are increasingly deploying DERs, such as solar generation, energy storage, energy efficiency and demand response technologies. California's environmental policy objectives are accelerating the pace and scope of industry change. This change will require modernization of the electric distribution grid to, among other things, accommodate two-way flows of electricity and increase the grid's capacity to interconnect DERs. In addition, enabling California's clean energy economy goals will require sustained investments in grid modernization, renewable integration projects, energy efficiency programs, energy storage options and electric vehicle infrastructure. If SCE is unable to operate efficiently and adapt to these changes, its business model, its ability to execute on its strategy, and ultimately its financial condition and results of operations could be materially impacted. Customer-owned generation and load departures to CCAs or Electric Service Providers each reduce the amount of electricity that customers purchase from utilities and have the effect of increasing utility rates unless customer rates are designed to allocate the costs of the distribution grid across all customers that benefit from its use. For example, some customers in California who generate their own power are not currently required to pay all transmission and distribution charges and non-bypassable charges, subject to limitations, which results in increased costs for other customers. If there are not updates in regulations to further support the need for customers 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. In addition, the FERC has opened transmission development to competition from independent developers, allowing such developers to compete with incumbent utilities for the construction and operation of transmission facilities. For more information. See "Business - SCE - Competition." 40 40 40 Table of Contents Table of Contents --- ## Modified: Edison International Dividend **Key changes:** - Reworded sentence: "Edison International's ability to declare and pay common dividends may be restricted under the terms of its outstanding preferred stock." **Prior (2024):** In December 2023, Edison International declared a 5.8% increase to the annual dividend rate from $2.95 per share to $3.12 per share. On February 22, 2024, Edison International declared a dividend of $0.78 per share to be paid on April 30, 2024. Edison International intends to maintain its target payout ratio of 45% - 55% of SCE's core earnings. **Current (2025):** Edison International's ability to declare and pay common dividends may be restricted under the terms of its outstanding preferred stock. For further information see Note 14. In December 2024, Edison International declared a 6.1% increase to the annual dividend rate from $3.12 per share to $3.31 per share. On February 27, 2025, Edison International declared a dividend of $0.8275 per share to be paid on April 30, 2025. Edison International intends to maintain its target payout ratio of 45% - 55% of SCE's core earnings. --- ## Modified: Jointly Owned Utility Projects **Key changes:** - Reworded sentence: "The following is SCE's investment in each asset as of December 31, 2024: (in millions)Plant inServiceConstructionWork inProgressAccumulatedDepreciationNuclear Fuel(at amortized cost)TotalOwnershipInterestTransmission systems:Eldorado$448 $40 $(71)$ - $417 71 %Pacific Intertie356 8 (121) - 243 50 %Generating station:Palo Verde (nuclear)2,249 62 (1,694)124 741 16 %Total$3,053 $110 $(1,886)$124 $1,401 In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies." **Prior (2024):** SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. The following is SCE's investment in each asset as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Construction ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Plant in Work in Accumulated Nuclear Fuel ​ Ownership (in millions) ​ Service ​ Progress ​ Depreciation ​ (at amortized cost) ​ Total ​ Interest Transmission systems: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Eldorado ​ $ 355 ​ $ 123 ​ $ (63) ​ $ - ​ $ 415 ​ 76 % Pacific Intertie ​ 356 ​ 3 ​ (90) ​ - ​ 269 50 % Generating station: ​ ​ ​ ​ ​ ​ ​ Palo Verde (nuclear) ​ 2,211 ​ 58 ​ (1,670) ​ 122 ​ 721 16 % Total ​ $ 2,922 ​ $ 184 ​ $ (1,823) ​ $ 122 ​ $ 1,405 ​ ​ In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies. **Current (2025):** SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. The following is SCE's investment in each asset as of December 31, 2024: (in millions)Plant inServiceConstructionWork inProgressAccumulatedDepreciationNuclear Fuel(at amortized cost)TotalOwnershipInterestTransmission systems:Eldorado$448 $40 $(71)$ - $417 71 %Pacific Intertie356 8 (121) - 243 50 %Generating station:Palo Verde (nuclear)2,249 62 (1,694)124 741 16 %Total$3,053 $110 $(1,886)$124 $1,401 In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies. --- ## Modified: The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to SCE's workforce and the general public. **Key changes:** - Reworded sentence: "In addition, the risks associated with the operation of transmission and distribution assets and power generation and storage facilities include public and workforce safety issues and the risk of utility assets causing or contributing to wildfires." **Prior (2024):** Electricity poses hazards for SCE's workforce and the general public should they come in contact with electrical current or equipment, including through energized downed power lines or if equipment malfunctions. In addition, the risks 44 44 Table of Contentsassociated with the operation of transmission and distribution assets and power generation and storage facilities include public and workforce safety issues and the risk of utility assets causing or contributing to wildfires.Injuries and property damage caused by such events can subject SCE to liability that, despite the existence of insurance coverage, can be significant. In addition, SCE may be held responsible for the actions of its contractors and from time to time, SCE is named as a party in legal proceedings involving claims related to its contractors and their employees. No assurance can be given that future losses will not exceed the limits of SCE's or its contractors' insurance coverage. Litigation and other legal processes are subject to inherent uncertainties, including, costs of litigation, unpredictable court or jury decisions, and the differing laws and sentiments regarding damage awards in regions where SCE operates. The CPUC has increased its focus on public safety with an emphasis on heightened compliance with construction and operating standards and the potential for penalties being imposed on utilities. Additionally, the CPUC has delegated to its staff the authority to issue citations to electric utilities, which can impose fines of up to $100,000 per violation per day (capped at a maximum of $8 million), pursuant to the CPUC's jurisdiction for violations of safety rules found in statutes, regulations, and the CPUC's General Orders. The CPUC also can issue fines greater than $8 million outside of the citation program. Such penalties and liabilities could be significant and materially affect SCE's liquidity and results of operations. SCE's financial condition and results of operations could be materially affected if it is unable to successfully manage the risks inherent in constructing, operating, and maintaining its facilities and workforce.SCE's infrastructure is aging and could pose a risk to system reliability. SCE is also constructing utility owned storage to mitigate possible state-wide capacity shortages in 2024 and later years, and any delays in construction may result in those facilities being unavailable to reduce the impact of any capacity shortages in summer 2024. In addition, as described above, wildfires in SCE's service territory can cause significant public safety issues, property damage and operational issues.In order to mitigate these risks and execute on its strategy, SCE is engaged in a significant and ongoing infrastructure investment program. This investment program, which includes transmission projects, has inherent operational risks and elevates the need for effective execution in SCE's activities. 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, maintaining physical security of workforce and assets, maintaining cybersecurity of data and assets, and delays and interruptions in necessary supplies, including key components necessary for the timely construction of utility owned storage. 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. SCE's financial condition and results of operations could also be materially affected if SCE is unable to attract, train and retain a qualified workforce, including due to the constrained labor market in California and nationally and SCE's relations with its unionized workforce. For example, the increased electrification efforts in California and nationally have led to greater competition for certain skilled workers. 45 Table of Contents Table of Contents Table of Contents associated with the operation of transmission and distribution assets and power generation and storage facilities include public and workforce safety issues and the risk of utility assets causing or contributing to wildfires.Injuries and property damage caused by such events can subject SCE to liability that, despite the existence of insurance coverage, can be significant. In addition, SCE may be held responsible for the actions of its contractors and from time to time, SCE is named as a party in legal proceedings involving claims related to its contractors and their employees. No assurance can be given that future losses will not exceed the limits of SCE's or its contractors' insurance coverage. Litigation and other legal processes are subject to inherent uncertainties, including, costs of litigation, unpredictable court or jury decisions, and the differing laws and sentiments regarding damage awards in regions where SCE operates. The CPUC has increased its focus on public safety with an emphasis on heightened compliance with construction and operating standards and the potential for penalties being imposed on utilities. Additionally, the CPUC has delegated to its staff the authority to issue citations to electric utilities, which can impose fines of up to $100,000 per violation per day (capped at a maximum of $8 million), pursuant to the CPUC's jurisdiction for violations of safety rules found in statutes, regulations, and the CPUC's General Orders. The CPUC also can issue fines greater than $8 million outside of the citation program. Such penalties and liabilities could be significant and materially affect SCE's liquidity and results of operations. SCE's financial condition and results of operations could be materially affected if it is unable to successfully manage the risks inherent in constructing, operating, and maintaining its facilities and workforce.SCE's infrastructure is aging and could pose a risk to system reliability. SCE is also constructing utility owned storage to mitigate possible state-wide capacity shortages in 2024 and later years, and any delays in construction may result in those facilities being unavailable to reduce the impact of any capacity shortages in summer 2024. In addition, as described above, wildfires in SCE's service territory can cause significant public safety issues, property damage and operational issues.In order to mitigate these risks and execute on its strategy, SCE is engaged in a significant and ongoing infrastructure investment program. This investment program, which includes transmission projects, has inherent operational risks and elevates the need for effective execution in SCE's activities. 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, maintaining physical security of workforce and assets, maintaining cybersecurity of data and assets, and delays and interruptions in necessary supplies, including key components necessary for the timely construction of utility owned storage. 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. SCE's financial condition and results of operations could also be materially affected if SCE is unable to attract, train and retain a qualified workforce, including due to the constrained labor market in California and nationally and SCE's relations with its unionized workforce. For example, the increased electrification efforts in California and nationally have led to greater competition for certain skilled workers. associated with the operation of transmission and distribution assets and power generation and storage facilities include public and workforce safety issues and the risk of utility assets causing or contributing to wildfires. Injuries and property damage caused by such events can subject SCE to liability that, despite the existence of insurance coverage, can be significant. In addition, SCE may be held responsible for the actions of its contractors and from time to time, SCE is named as a party in legal proceedings involving claims related to its contractors and their employees. No assurance can be given that future losses will not exceed the limits of SCE's or its contractors' insurance coverage. Litigation and other legal processes are subject to inherent uncertainties, including, costs of litigation, unpredictable court or jury decisions, and the differing laws and sentiments regarding damage awards in regions where SCE operates. The CPUC has increased its focus on public safety with an emphasis on heightened compliance with construction and operating standards and the potential for penalties being imposed on utilities. Additionally, the CPUC has delegated to its staff the authority to issue citations to electric utilities, which can impose fines of up to $100,000 per violation per day (capped at a maximum of $8 million), pursuant to the CPUC's jurisdiction for violations of safety rules found in statutes, regulations, and the CPUC's General Orders. The CPUC also can issue fines greater than $8 million outside of the citation program. Such penalties and liabilities could be significant and materially affect SCE's liquidity and results of operations. **Current (2025):** Electricity poses hazards for SCE's workforce and the general public should they come in contact with electrical current or equipment, including through energized downed power lines or if equipment malfunctions. In addition, the risks associated with the operation of transmission and distribution assets and power generation and storage facilities include public and workforce safety issues and the risk of utility assets causing or contributing to wildfires. Injuries and property damage caused by such events can subject SCE to liability that, despite the existence of insurance coverage, can be significant. In addition, SCE may be held responsible for the actions of its contractors and from time to time, SCE is named as a party in legal proceedings involving claims related to its contractors and their employees. No assurance can be given that future losses will not exceed the limits of SCE's or its contractors' insurance coverage. Litigation and other legal processes are subject to inherent uncertainties, including, costs of litigation, unpredictable court or jury decisions, and the differing laws and sentiments regarding damage awards in regions where SCE operates. The CPUC has increased its focus on public safety with an emphasis on heightened compliance with construction and operating standards and the potential for penalties being imposed on utilities. Additionally, the CPUC has delegated to its staff the authority to issue citations to electric utilities, which can impose fines of up to $100,000 per violation per day (capped at a maximum of $8 million), pursuant to the CPUC's jurisdiction for violations of safety rules found in statutes, regulations, and the CPUC's General Orders. The CPUC also can issue fines greater than $8 million outside of the citation program. Such penalties and liabilities could be significant and materially affect SCE's liquidity and results of operations. --- ## Modified: Consolidated Statements of Changes in EquitySouthern California Edison Company **Key changes:** - Reworded sentence: "(in millions, except per share amounts)PreferenceStockCommonStockAdditionalPaid-inCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalEquityBalance at December 31, 2021$1,945 $2,168 $7,033 $(32)$8,721 $19,835 Net income - - - - 954 954 Other comprehensive income - - - 24 - 24 Capital contribution from Edison International Parent - - 1,400 - - 1,400 Dividends declared on common stock ($3.0468 per share) - - - - (1,325)(1,325)Dividends declared on preference stock ($65.1098 - $143.75 per share) - - - - (107)(107)Stock-based compensation - - (14) - - (14)Noncash stock-based compensation - - 22 - - 22 Balance at December 31, 2022$1,945 $2,168 $8,441 $(8)$8,243 $20,789 Net income - - - - 1,597 1,597 Other comprehensive income - - - (4) - (4)Dividends declared on common stock ($3.2422 per share) - - - - (1,410)(1,410)Dividends declared on preference stock ($96.823 - $143.75 per share) - - - - (123)(123)Stock-based compensation - - (13) - - (13)Noncash stock-based compensation - - 26 - - 26 Preference stock issued550 - (8) - - 542Balance at December 31, 2023$2,495 $2,168 $8,446 $(12)$8,307 $21,404 Net income - - - - 1,794 1,794 Other comprehensive income - - - 3 - 3 Capital contribution from Edison International Parent - - 500 - - 500 Dividends declared on common stock ($3.4722 per share) - - - - (1,510)(1,510)Dividends declared on preference stock ($24.418 - $199.479 per share) - - - - (154)(154)Stock-based compensation - - (35) - - (35)Noncash stock-based compensation - - 32 - - 32 Preference stock issued350 - (5) - - 345 Preference stock redeemed(625) - 12 - (15)(628)Balance at December 31, 2024$2,220 $2,168 $8,950 $(9)$8,422 $21,751 Dividends declared on common stock ($3.0468 per share) Dividends declared on preference stock ($65.1098 - $143.75 per share) Dividends declared on common stock ($3.2422 per share) Dividends declared on preference stock ($96.823 - $143.75 per share) Dividends declared on common stock ($3.4722 per share) Dividends declared on preference stock ($24.418 - $199.479 per share) The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 532 ​ $ 917 ​ $ 394 ​ The accompanying notes are an integral part of these consolidated financial statements.62 The accompanying notes are an integral part of these consolidated financial statements. 62 Table of Contents​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Consolidated Statements of Changes in Equity​​​​​​​Edison International​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Noncontrolling​​​​ Equity Attributable to Edison International Shareholders Interests​​​​​​​​​​​Accumulated ​​​​​​​​​​​​​​​​​​​Other ​​​​​​​​​​​​​Preferred​Common ​Comprehensive​Retained ​​​​Preference ​Total (in millions, except per share amounts)​Stock​Stock​Loss​Earnings​Subtotal​Stock​EquityBalance at December 31, 2020 $ - ​$ 5,962​$ (69)​$ 8,155​$ 14,048​$ 1,901​$ 15,949Net income​​ - ​ - ​ - ​ 819​ 819​ 106​ 925Other comprehensive income​​ - ​ - ​ 15​ - ​ 15​ - ​ 15Common stock issued​​ - ​ 71​ - ​ - ​​ 71​ - ​​ 71Preferred stock issued, net ​​ 1,977​​ - ​​ - ​​ - ​​ 1,977​​ - ​​ 1,977Common stock dividends declared ($2.6875 per share)​​ - ​ - ​ - ​ (1,021)​ (1,021)​ - ​ (1,021)Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B)​​ - ​​ - ​​ - ​​ (60)​​ (60)​​ - ​​ (60)Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (106)​ (106)Noncash stock-based compensation​​ - ​ 38​ - ​ 1​ 39​ - ​ 39Balance at December 31, 2021​$ 1,977​$ 6,071​$ (54)​$ 7,894​$ 15,888​$ 1,901​$ 17,789Net income​​ - ​ - ​ - ​ 717​ 717​ 107​ 824Other comprehensive income​​ - ​ - ​ 43​ - ​ 43​ - ​ 43Common stock issued​​ - ​ 87​ - ​ - ​ 87​ - ​ 87Common stock dividends declared ($2.8375 per share)​​ - ​ - ​ - ​ (1,083)​ (1,083)​ - ​ (1,083)Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B)​​ - ​​ - ​​ - ​​ (74)​​ (74)​​ - ​​ (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (107)​ (107)Noncash stock-based compensation​​ - ​ 42​ - ​ - ​ 42​ - ​ 42Other​​ 1​​ - ​​ - ​​ - ​​ 1​​ - ​​ 1Balance at December 31, 2022​$ 1,978​$ 6,200​$ (11)​$ 7,454​$ 15,621​$ 1,901​$ 17,522Net income​​ - ​ - ​ - ​ 1,284​ 1,284​ 123​ 1,407Other comprehensive income​​ - ​ - ​ 2​ - ​ 2​ - ​ 2Common stock issued​​ - ​ 92​ - ​ - ​ 92​ - ​ 92Common stock dividends declared ($2.9925 per share)​​ - ​ - ​ - ​ (1,147)​ (1,147)​ - ​ (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B)​​ - ​​ - ​​ - ​​ (108)​​ (108)​​ - ​​ (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (123)​ (123)Noncash stock-based compensation​​ - ​ 46​ - ​ - ​ 46​ - ​ 46Preference stock issued, net of issuance cost​​ - ​​ - ​​ - ​​ - ​​ - ​​ 542​​ 542Preferred stock repurchased​​ (305)​​ - ​​ - ​​ 16​​ (289)​​ - ​​ (289)Balance at December 31, 2023​$ 1,673​$ 6,338​$ (9)​$ 7,499​$ 15,501​$ 2,443​$ 17,944​​​The accompanying notes are an integral part of these consolidated financial statements.63 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Consolidated Statements of Changes in Equity​​​​​​​Edison International​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Noncontrolling​​​​ Equity Attributable to Edison International Shareholders Interests​​​​​​​​​​​Accumulated ​​​​​​​​​​​​​​​​​​​Other ​​​​​​​​​​​​​Preferred​Common ​Comprehensive​Retained ​​​​Preference ​Total (in millions, except per share amounts)​Stock​Stock​Loss​Earnings​Subtotal​Stock​EquityBalance at December 31, 2020 $ - ​$ 5,962​$ (69)​$ 8,155​$ 14,048​$ 1,901​$ 15,949Net income​​ - ​ - ​ - ​ 819​ 819​ 106​ 925Other comprehensive income​​ - ​ - ​ 15​ - ​ 15​ - ​ 15Common stock issued​​ - ​ 71​ - ​ - ​​ 71​ - ​​ 71Preferred stock issued, net ​​ 1,977​​ - ​​ - ​​ - ​​ 1,977​​ - ​​ 1,977Common stock dividends declared ($2.6875 per share)​​ - ​ - ​ - ​ (1,021)​ (1,021)​ - ​ (1,021)Preferred stock dividend accrued ($43.5972 per share for Series A and $6.8056 per share for Series B)​​ - ​​ - ​​ - ​​ (60)​​ (60)​​ - ​​ (60)Dividends to noncontrolling interests ($62.50 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (106)​ (106)Noncash stock-based compensation​​ - ​ 38​ - ​ 1​ 39​ - ​ 39Balance at December 31, 2021​$ 1,977​$ 6,071​$ (54)​$ 7,894​$ 15,888​$ 1,901​$ 17,789Net income​​ - ​ - ​ - ​ 717​ 717​ 107​ 824Other comprehensive income​​ - ​ - ​ 43​ - ​ 43​ - ​ 43Common stock issued​​ - ​ 87​ - ​ - ​ 87​ - ​ 87Common stock dividends declared ($2.8375 per share)​​ - ​ - ​ - ​ (1,083)​ (1,083)​ - ​ (1,083)Preferred stock dividend declared ($53.75 per share for Series A and $42.08333 per share for Series B)​​ - ​​ - ​​ - ​​ (74)​​ (74)​​ - ​​ (74)Dividends to noncontrolling interests ($65.1098 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (107)​ (107)Noncash stock-based compensation​​ - ​ 42​ - ​ - ​ 42​ - ​ 42Other​​ 1​​ - ​​ - ​​ - ​​ 1​​ - ​​ 1Balance at December 31, 2022​$ 1,978​$ 6,200​$ (11)​$ 7,454​$ 15,621​$ 1,901​$ 17,522Net income​​ - ​ - ​ - ​ 1,284​ 1,284​ 123​ 1,407Other comprehensive income​​ - ​ - ​ 2​ - ​ 2​ - ​ 2Common stock issued​​ - ​ 92​ - ​ - ​ 92​ - ​ 92Common stock dividends declared ($2.9925 per share)​​ - ​ - ​ - ​ (1,147)​ (1,147)​ - ​ (1,147)Preferred stock dividend declared ($53.75 per share for Series A and $50.00 per share for Series B)​​ - ​​ - ​​ - ​​ (108)​​ (108)​​ - ​​ (108)Dividends to noncontrolling interests ($96.823 - $143.75 per share for preference stock)​​ - ​ - ​ - ​ - ​ - ​ (123)​ (123)Noncash stock-based compensation​​ - ​ 46​ - ​ - ​ 46​ - ​ 46Preference stock issued, net of issuance cost​​ - ​​ - ​​ - ​​ - ​​ - ​​ 542​​ 542Preferred stock repurchased​​ (305)​​ - ​​ - ​​ 16​​ (289)​​ - ​​ (289)Balance at December 31, 2023​$ 1,673​$ 6,338​$ (9)​$ 7,499​$ 15,501​$ 2,443​$ 17,944​​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** (in millions, except per share amounts)PreferenceStockCommonStockAdditionalPaid-inCapitalAccumulatedOtherComprehensiveLossRetainedEarningsTotalEquityBalance at December 31, 2021$1,945 $2,168 $7,033 $(32)$8,721 $19,835 Net income - - - - 954 954 Other comprehensive income - - - 24 - 24 Capital contribution from Edison International Parent - - 1,400 - - 1,400 Dividends declared on common stock ($3.0468 per share) - - - - (1,325)(1,325)Dividends declared on preference stock ($65.1098 - $143.75 per share) - - - - (107)(107)Stock-based compensation - - (14) - - (14)Noncash stock-based compensation - - 22 - - 22 Balance at December 31, 2022$1,945 $2,168 $8,441 $(8)$8,243 $20,789 Net income - - - - 1,597 1,597 Other comprehensive income - - - (4) - (4)Dividends declared on common stock ($3.2422 per share) - - - - (1,410)(1,410)Dividends declared on preference stock ($96.823 - $143.75 per share) - - - - (123)(123)Stock-based compensation - - (13) - - (13)Noncash stock-based compensation - - 26 - - 26 Preference stock issued550 - (8) - - 542Balance at December 31, 2023$2,495 $2,168 $8,446 $(12)$8,307 $21,404 Net income - - - - 1,794 1,794 Other comprehensive income - - - 3 - 3 Capital contribution from Edison International Parent - - 500 - - 500 Dividends declared on common stock ($3.4722 per share) - - - - (1,510)(1,510)Dividends declared on preference stock ($24.418 - $199.479 per share) - - - - (154)(154)Stock-based compensation - - (35) - - (35)Noncash stock-based compensation - - 32 - - 32 Preference stock issued350 - (5) - - 345 Preference stock redeemed(625) - 12 - (15)(628)Balance at December 31, 2024$2,220 $2,168 $8,950 $(9)$8,422 $21,751 Dividends declared on common stock ($3.0468 per share) Dividends declared on preference stock ($65.1098 - $143.75 per share) Dividends declared on common stock ($3.2422 per share) Dividends declared on preference stock ($96.823 - $143.75 per share) Dividends declared on common stock ($3.4722 per share) Dividends declared on preference stock ($24.418 - $199.479 per share) The accompanying notes are an integral part of these consolidated financial statements. 60 60 60 Table of Contents Table of Contents --- ## Modified: SCE is subject to extensive regulation and the risk of adverse regulatory and legislative decisions, delays in regulatory or legislative decisions, and changes in applicable regulations or legislation. **Key changes:** - Reworded sentence: "Should SCE be unsuccessful in obtaining necessary licenses or permits or should these regulatory authorities initiate any investigations or enforcement actions or impose fines, penalties or disallowances on SCE, SCE may be prevented from executing its strategy and its 35 35 35 Table of Contents Table of Contents business could be materially affected." - Reworded sentence: "The Wildfire Insurance Fund and other provisions of AB 1054 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." **Prior (2024):** SCE operates in a highly regulated environment. SCE's business is subject to extensive federal, state and local energy, environmental and other laws and regulations. Among other things, the CPUC regulates SCE's retail rates and capital structure, and the FERC regulates SCE's wholesale rates and capital structure. The NRC regulates the decommissioning of San Onofre in addition to the local and state agencies that require permits. The construction, planning, siting and operation of SCE's power plants, energy storage projects, and transmission lines in California are also subject to regulation by the CPUC and other local, state and federal agencies. SCE must periodically apply for licenses and permits from these various regulatory authorities, including environmental regulatory authorities, and must abide by their respective rules, regulations and orders. Should SCE be unsuccessful in obtaining necessary licenses or permits or should these regulatory authorities initiate any investigations or enforcement actions or impose fines, penalties or disallowances on SCE, SCE may be prevented from executing its strategy and its business could be materially affected. The process of obtaining licenses and permits from regulatory authorities may be delayed or defeated by opponents and such delay or defeat could have a material effect on SCE's business. The Wildfire Insurance Fund and other provisions of AB 1054 not effectively mitigating 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, could have a detrimental effect on SCE's business and financial condition. The effectiveness of AB 1054 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 41 41 Table of Contentsstandards, and develop metrics to reduce risk and measure compliance with risk reduction. In addition, CPUC approval is required to recover the costs SCE is incurring to strengthen its wildfire mitigation and prevention efforts described in SCE's WMPs. See "Business - Southern California Wildfires" and "Liquidity and Capital Resources - SCE - Regulatory Proceedings - Wildfire Related Regulatory Proceedings" in the MD&A.In addition, existing regulations may be revised or re-interpreted and new laws and regulations may be adopted 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. In addition, regulations adopted via the public initiative or legislative process may apply 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.SCE's energy procurement activities are subject to regulatory and market risks that could materially affect its financial condition and liquidity.SCE obtains energy, capacity, environmental credits and ancillary services needed to serve its customers from its own generating plants and through contracts with energy producers and sellers. California law and CPUC decisions allow SCE to recover, through the rates it is allowed to charge its customers, reasonable procurement costs incurred in compliance with an approved procurement plan. Nonetheless, SCE's cash flows remain subject to volatility primarily resulting from changes in commodity prices, including as a result of gas supply constraints. Additionally, significant and prolonged gas use restrictions may adversely impact the reliability of the electric grid if critical generation resources are limited in their operations. For further information, see "Business - SCE - Purchased Power and Fuel Supply." SCE is also subject to the risks of unfavorable or untimely CPUC decisions about the compliance with SCE's procurement plan and the reasonableness of certain procurement-related costs.SCE may not be able to hedge its risk for commodities on economic terms or fully recover the costs of hedges through the rates it is allowed to charge its customers, which could materially affect SCE's liquidity and results of operations, see "Market Risk Exposures" in the MD&A.Operating RisksDamage claims against SCE for wildfire-related losses may materially affect SCE's financial condition and results of operations.Prolonged drought conditions and shifting weather patterns in California resulting from climate change as well as, among other things, buildup of dry vegetation in areas severely impacted by years of historic drought and lack of adequate clearing of hazardous fuels by responsible parties have increased the duration of the wildfire season and the risk of severe wildfire events.Severe wildfires and increased urban development in high fire risk areas in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of utility practices and/or the failure of electric and other utility equipment. Catastrophic wildfires can occur in SCE's service territory even if SCE effectively implements its WMPs. California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale generally stated by these courts for applying this theory to investor-owned utilities is that property losses resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement. However, in November 2017, the CPUC issued a decision denying an investor-owned utility's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that the investor-owned utility did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. An inability to recover uninsured wildfire-related costs could materially affect SCE's business, financial condition and results of operations. For example, if SCE is unable 42 Table of Contents Table of Contents Table of Contents standards, and develop metrics to reduce risk and measure compliance with risk reduction. In addition, CPUC approval is required to recover the costs SCE is incurring to strengthen its wildfire mitigation and prevention efforts described in SCE's WMPs. See "Business - Southern California Wildfires" and "Liquidity and Capital Resources - SCE - Regulatory Proceedings - Wildfire Related Regulatory Proceedings" in the MD&A.In addition, existing regulations may be revised or re-interpreted and new laws and regulations may be adopted 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. In addition, regulations adopted via the public initiative or legislative process may apply 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.SCE's energy procurement activities are subject to regulatory and market risks that could materially affect its financial condition and liquidity.SCE obtains energy, capacity, environmental credits and ancillary services needed to serve its customers from its own generating plants and through contracts with energy producers and sellers. California law and CPUC decisions allow SCE to recover, through the rates it is allowed to charge its customers, reasonable procurement costs incurred in compliance with an approved procurement plan. Nonetheless, SCE's cash flows remain subject to volatility primarily resulting from changes in commodity prices, including as a result of gas supply constraints. Additionally, significant and prolonged gas use restrictions may adversely impact the reliability of the electric grid if critical generation resources are limited in their operations. For further information, see "Business - SCE - Purchased Power and Fuel Supply." SCE is also subject to the risks of unfavorable or untimely CPUC decisions about the compliance with SCE's procurement plan and the reasonableness of certain procurement-related costs.SCE may not be able to hedge its risk for commodities on economic terms or fully recover the costs of hedges through the rates it is allowed to charge its customers, which could materially affect SCE's liquidity and results of operations, see "Market Risk Exposures" in the MD&A.Operating RisksDamage claims against SCE for wildfire-related losses may materially affect SCE's financial condition and results of operations.Prolonged drought conditions and shifting weather patterns in California resulting from climate change as well as, among other things, buildup of dry vegetation in areas severely impacted by years of historic drought and lack of adequate clearing of hazardous fuels by responsible parties have increased the duration of the wildfire season and the risk of severe wildfire events.Severe wildfires and increased urban development in high fire risk areas in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of utility practices and/or the failure of electric and other utility equipment. Catastrophic wildfires can occur in SCE's service territory even if SCE effectively implements its WMPs. California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale generally stated by these courts for applying this theory to investor-owned utilities is that property losses resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement. However, in November 2017, the CPUC issued a decision denying an investor-owned utility's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that the investor-owned utility did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. An inability to recover uninsured wildfire-related costs could materially affect SCE's business, financial condition and results of operations. For example, if SCE is unable standards, and develop metrics to reduce risk and measure compliance with risk reduction. In addition, CPUC approval is required to recover the costs SCE is incurring to strengthen its wildfire mitigation and prevention efforts described in SCE's WMPs. See "Business - Southern California Wildfires" and "Liquidity and Capital Resources - SCE - Regulatory Proceedings - Wildfire Related Regulatory Proceedings" in the MD&A. In addition, existing regulations may be revised or re-interpreted and new laws and regulations may be adopted 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. In addition, regulations adopted via the public initiative or legislative process may apply 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. **Current (2025):** SCE operates in a highly regulated environment. SCE's business is subject to extensive federal, state and local energy, environmental and other laws and regulations. Among other things, the CPUC regulates SCE's retail rates and capital structure, and the FERC regulates SCE's wholesale rates and capital structure. The NRC regulates the decommissioning of San Onofre in addition to the local and state agencies that require permits. The construction, planning, siting and operation of SCE's power plants, energy storage projects, and transmission lines in California are also subject to regulation by the CPUC and other local, state and federal agencies. SCE must periodically apply for licenses and permits from these various regulatory authorities, including environmental regulatory authorities, and must abide by their respective rules, regulations and orders. Should SCE be unsuccessful in obtaining necessary licenses or permits or should these regulatory authorities initiate any investigations or enforcement actions or impose fines, penalties or disallowances on SCE, SCE may be prevented from executing its strategy and its 35 35 35 Table of Contents Table of Contents business could be materially affected. The process of obtaining licenses and permits from regulatory authorities may be delayed or defeated by opponents and such delay or defeat could have a material effect on SCE's business. The Wildfire Insurance Fund and other provisions of AB 1054 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. The effectiveness of AB 1054 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. In addition, CPUC approval is required to recover the costs SCE is incurring to strengthen its wildfire mitigation and prevention efforts described in SCE's WMPs. See "Business - Southern California Wildfires" and "Liquidity and Capital Resources - SCE - Regulatory Proceedings - Wildfire Related Regulatory Proceedings" in the MD&A. In addition, existing regulations may be revised or re-interpreted and new laws and regulations may be adopted 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. In addition, regulations adopted via the public initiative or legislative process may apply 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. --- ## Modified: Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054") **Key changes:** - Reworded sentence: "Edison International and SCE accounted for the contributions to the Wildfire Insurance Fund similarly to prepaid insurance." - Reworded sentence: "At December 31, 2024 and 2023, Edison International and SCE had a $1.9 billion and a $2.0 billion long-term asset, respectively, as well as a $138 million and $204 million current asset, respectively, 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." - Reworded sentence: "In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using ten years (2014 - 2023) of available historical data in 2024, nine years (2014 - 2022) of available historical data in 2023, and eight years (2014 - 2021) of available historical data in 2022." - Reworded sentence: "These inputs are most affected by the historical data used in estimating expected losses." **Prior (2024):** Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate. 73 73 Table of ContentsAccounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the disallowance amount can be made.In September 2022, the CPUC approved the settlement agreement between SCE and The Utility Reform Network for SCE's Customer Service Re-platform proceeding filed in 2021 for expenditures incurred through April 2021. As a result of the settlement agreement, SCE recorded a $47 million ($34 million after-tax) impairment of property, plant and equipment, reflected in "Impairment, net of other operating income" in the consolidated statements of income.In August 2021, as a result of adoption of the 2021 GRC, SCE recorded $79 million ($47 million after-tax) in impairment charges related to disallowed capital expenditures of pole replacements the CPUC determined were performed prematurely in 2021. The impairment is included in "Impairment, net of other operating income" in the consolidated statements of income.Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054")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, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2023 and 2022, Edison International and SCE had a $2.0 billion and a $2.2 billion long-term asset, respectively, as well as a $204 million current asset for both years, 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, 2023 and 2022, long-term liabilities of $450 million and $536 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.In 2023 and 2022, the asset was amortized based on an estimated period of coverage of 15 years. All expenses related to the contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using nine years (2014 - 2022) of available historical data in 2023 and eight years (2014 - 2021) of available historical data in 2022. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, Pacific Gas & Electric Company ("PG&E"), and San Diego Gas & Electric ("SDG&E") against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. Edison International and SCE reassesses the period of coverage of the fund at least annually in January each year, or upon claims being made from the fund for catastrophic wildfires. Based on information available in January of 2024 regarding catastrophic wildfires during 2023, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. After incorporating 2023 expected losses into the historical data for the Monte Carlo simulations by using ten years of historical data (2014 - 2023), SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund is expected to increase to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund.Edison International and SCE will assess the Wildfire Insurance Fund contribution assets for impairment in the event that a participating utility's electrical equipment is found to be the substantial cause of a catastrophic wildfire, based on 74 Table of Contents Table of Contents Table of Contents Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the disallowance amount can be made.In September 2022, the CPUC approved the settlement agreement between SCE and The Utility Reform Network for SCE's Customer Service Re-platform proceeding filed in 2021 for expenditures incurred through April 2021. As a result of the settlement agreement, SCE recorded a $47 million ($34 million after-tax) impairment of property, plant and equipment, reflected in "Impairment, net of other operating income" in the consolidated statements of income.In August 2021, as a result of adoption of the 2021 GRC, SCE recorded $79 million ($47 million after-tax) in impairment charges related to disallowed capital expenditures of pole replacements the CPUC determined were performed prematurely in 2021. The impairment is included in "Impairment, net of other operating income" in the consolidated statements of income.Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054")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, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2023 and 2022, Edison International and SCE had a $2.0 billion and a $2.2 billion long-term asset, respectively, as well as a $204 million current asset for both years, 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, 2023 and 2022, long-term liabilities of $450 million and $536 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.In 2023 and 2022, the asset was amortized based on an estimated period of coverage of 15 years. All expenses related to the contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using nine years (2014 - 2022) of available historical data in 2023 and eight years (2014 - 2021) of available historical data in 2022. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, Pacific Gas & Electric Company ("PG&E"), and San Diego Gas & Electric ("SDG&E") against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. Edison International and SCE reassesses the period of coverage of the fund at least annually in January each year, or upon claims being made from the fund for catastrophic wildfires. Based on information available in January of 2024 regarding catastrophic wildfires during 2023, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. After incorporating 2023 expected losses into the historical data for the Monte Carlo simulations by using ten years of historical data (2014 - 2023), SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund is expected to increase to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund.Edison International and SCE will assess the Wildfire Insurance Fund contribution assets for impairment in the event that a participating utility's electrical equipment is found to be the substantial cause of a catastrophic wildfire, based on Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the disallowance amount can be made. In September 2022, the CPUC approved the settlement agreement between SCE and The Utility Reform Network for SCE's Customer Service Re-platform proceeding filed in 2021 for expenditures incurred through April 2021. As a result of the settlement agreement, SCE recorded a $47 million ($34 million after-tax) impairment of property, plant and equipment, reflected in "Impairment, net of other operating income" in the consolidated statements of income. In August 2021, as a result of adoption of the 2021 GRC, SCE recorded $79 million ($47 million after-tax) in impairment charges related to disallowed capital expenditures of pole replacements the CPUC determined were performed prematurely in 2021. The impairment is included in "Impairment, net of other operating income" in the consolidated statements of income. **Current (2025):** 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, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2024 and 2023, Edison International and SCE had a $1.9 billion and a $2.0 billion long-term asset, respectively, as well as a $138 million and $204 million current asset, respectively, 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 and 2023, long-term liabilities of $363 million and $450 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, 2024, 2023 and 2022, the asset was amortized based on an estimated period of coverage of 20 years, 15 years, and 15 years, respectively. All expenses related to the 64 64 64 Table of Contents Table of Contents contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using ten years (2014 - 2023) of available historical data in 2024, nine years (2014 - 2022) of available historical data in 2023, and eight years (2014 - 2021) of available historical data in 2022. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, PG&E, and SDG&E against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. These inputs are most affected by the historical data used in estimating expected losses. There were fires in the service area of SCE, PG&E and SDG&E since the inception of the Wildfire Insurance Fund, including fires for which the cause is unknown, which may in the future be determined to be covered by the Wildfire Insurance Fund and have not been reflected or estimated in this analysis will be included in this analysis at that time. As of the date of this filing, SCE is continuing to perform its annual assessment for 2025 to reassess its estimate of the life of the Wildfire Insurance Fund. Edison International and SCE assess the Wildfire Insurance Fund contribution assets for impairment each reporting period. An impairment will be recorded if the recorded asset exceeds SCE's ability to benefit from the remaining coverage provided by the Wildfire Insurance Fund. --- ## Modified: Damage claims against SCE for wildfire-related losses may materially affect SCE's financial condition and results of operations. **Key changes:** - Reworded sentence: "Severe wildfires and urban development in and near high fire risk areas in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of utility practices and/or the failure of electric and other utility equipment." - Removed sentence: "The rationale generally stated by these courts for applying this theory to investor-owned utilities is that property losses resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement." - Removed sentence: "However, in November 2017, the CPUC issued a decision denying an investor-owned utility's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that the investor-owned utility did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires." - Reworded sentence: "For example, if SCE is unable to, or believes that it may be unable to, recover damages related to catastrophic wildfires through insurance, the Wildfire Insurance Fund (which is only available for fires ignited after July 12, 2019) or electric rates, or access the bank and capital markets on reasonable terms, SCE may not have sufficient cash or equity to pay dividends or may be restricted from declaring such dividends because it does not meet CPUC or California law requirements related to the declaration of dividends." - Reworded sentence: "Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." 36 36 36 Table of Contents Table of Contents Edison International's and SCE's costs of accessing capital markets has increased due to the risks associated with wildfires in Southern California." **Prior (2024):** Prolonged drought conditions and shifting weather patterns in California resulting from climate change as well as, among other things, buildup of dry vegetation in areas severely impacted by years of historic drought and lack of adequate clearing of hazardous fuels by responsible parties have increased the duration of the wildfire season and the risk of severe wildfire events. Severe wildfires and increased urban development in high fire risk areas in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of utility practices and/or the failure of electric and other utility equipment. Catastrophic wildfires can occur in SCE's service territory even if SCE effectively implements its WMPs. California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale generally stated by these courts for applying this theory to investor-owned utilities is that property losses resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement. However, in November 2017, the CPUC issued a decision denying an investor-owned utility's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that the investor-owned utility did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. An inability to recover uninsured wildfire-related costs could materially affect SCE's business, financial condition and results of operations. For example, if SCE is unable 42 42 Table of Contentsto, or believes that it may be unable to, recover damages related to catastrophic wildfires through insurance, the Wildfire Insurance Fund (which is only available for fires ignited after July 12, 2019) or electric rates, or access the bank and capital markets on reasonable terms, SCE may not have sufficient cash or equity to pay dividends or may be restricted from declaring such dividends because it does not meet CPUC or California law requirements related to the declaration of dividends. For information on the California law requirements on the declaration of dividends, see "Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies - SCE Dividends." Also see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."Edison International's and SCE's costs of accessing capital markets has increased due to the risks associated with wildfires in Southern California. Edison International's and SCE's access to the bank and capital markets could also be constrained and/or the costs of accessing those markets could increase further as a result of wildfire risk, including if Edison International's and/or SCE's credit ratings are downgraded or placed on negative watch due to concerns about Edison International and/or SCE's financial health as a result of wildfires.SCE's insurance coverage for wildfires may not be sufficient.SCE may not be able to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) in electric rates. Additionally, SCE's contractors may experience coverage reductions and/or increased wildfire insurance costs in future years. No assurance can be given that losses will not exceed the limits of SCE's or its contractors' insurance coverage. Losses which are not fully insured or cannot be recovered from contractors, through the Wildfire Insurance Fund or electric rates could materially affect Edison International's and SCE's financial condition and results of operations. For more information on wildfire insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." SCE may not effectively implement its wildfire mitigation plans.SCE will face a higher likelihood of catastrophic wildfires in its service territory if it cannot effectively implement its WMPs. For example, SCE may not be able to effectively implement its WMPs if it experiences unanticipated difficulties relative to sourcing, engaging, and retaining effectively trained contract workers or procuring materials it needs to fulfill its mitigation obligations under the WMPs. In addition, if SCE does not have an approved WMP, SCE will not be issued a safety certification from the CPUC and will consequently not benefit from the presumption of prudency or the AB 1054 Liability Cap.The CPUC may assess penalties on SCE if it finds that SCE has failed to substantially comply with its WMP. In addition, SCE may be subject to mandated changes to, or restrictions on, its operational wildfire mitigation practices or be subject to regulatory fines and penalties or claims for damages and reputational harm if SCE does not execute its wildfire mitigation practices in compliance with applicable rules and regulations. SCE's wildfire mitigation practices include PSPS and using fast-curve settings. In addition, SCE has been and may be further subject to regulatory fines and penalties or claims for damages and reputational harm if it is determined that SCE has placed excessive or unreasonable reliance on PSPS or has failed to maintain compliance with notification and post event reporting requirements related to PSPS.SCE establishes the criteria under which it implements PSPS in its territory. To the extent SCE's criteria for implementing PSPS are not sufficient to mitigate the risk of wildfires during high wind events, SCE does not fully implement PSPS when criteria are met due to other overriding conditions or SCE's regulators or others mandate changes to, or restrictions on, its criteria or other operational PSPS practices, SCE will face a higher likelihood of catastrophic wildfires in its territory during high wind events. Similarly, if SCE is prohibited by the CPUC from implementing its desired fast-curve settings, SCE will face a higher likelihood of catastrophic wildfires in its territory.43 Table of Contents Table of Contents Table of Contents to, or believes that it may be unable to, recover damages related to catastrophic wildfires through insurance, the Wildfire Insurance Fund (which is only available for fires ignited after July 12, 2019) or electric rates, or access the bank and capital markets on reasonable terms, SCE may not have sufficient cash or equity to pay dividends or may be restricted from declaring such dividends because it does not meet CPUC or California law requirements related to the declaration of dividends. For information on the California law requirements on the declaration of dividends, see "Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies - SCE Dividends." Also see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."Edison International's and SCE's costs of accessing capital markets has increased due to the risks associated with wildfires in Southern California. Edison International's and SCE's access to the bank and capital markets could also be constrained and/or the costs of accessing those markets could increase further as a result of wildfire risk, including if Edison International's and/or SCE's credit ratings are downgraded or placed on negative watch due to concerns about Edison International and/or SCE's financial health as a result of wildfires.SCE's insurance coverage for wildfires may not be sufficient.SCE may not be able to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) in electric rates. Additionally, SCE's contractors may experience coverage reductions and/or increased wildfire insurance costs in future years. No assurance can be given that losses will not exceed the limits of SCE's or its contractors' insurance coverage. Losses which are not fully insured or cannot be recovered from contractors, through the Wildfire Insurance Fund or electric rates could materially affect Edison International's and SCE's financial condition and results of operations. For more information on wildfire insurance risk, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." SCE may not effectively implement its wildfire mitigation plans.SCE will face a higher likelihood of catastrophic wildfires in its service territory if it cannot effectively implement its WMPs. For example, SCE may not be able to effectively implement its WMPs if it experiences unanticipated difficulties relative to sourcing, engaging, and retaining effectively trained contract workers or procuring materials it needs to fulfill its mitigation obligations under the WMPs. In addition, if SCE does not have an approved WMP, SCE will not be issued a safety certification from the CPUC and will consequently not benefit from the presumption of prudency or the AB 1054 Liability Cap.The CPUC may assess penalties on SCE if it finds that SCE has failed to substantially comply with its WMP. In addition, SCE may be subject to mandated changes to, or restrictions on, its operational wildfire mitigation practices or be subject to regulatory fines and penalties or claims for damages and reputational harm if SCE does not execute its wildfire mitigation practices in compliance with applicable rules and regulations. SCE's wildfire mitigation practices include PSPS and using fast-curve settings. In addition, SCE has been and may be further subject to regulatory fines and penalties or claims for damages and reputational harm if it is determined that SCE has placed excessive or unreasonable reliance on PSPS or has failed to maintain compliance with notification and post event reporting requirements related to PSPS.SCE establishes the criteria under which it implements PSPS in its territory. To the extent SCE's criteria for implementing PSPS are not sufficient to mitigate the risk of wildfires during high wind events, SCE does not fully implement PSPS when criteria are met due to other overriding conditions or SCE's regulators or others mandate changes to, or restrictions on, its criteria or other operational PSPS practices, SCE will face a higher likelihood of catastrophic wildfires in its territory during high wind events. Similarly, if SCE is prohibited by the CPUC from implementing its desired fast-curve settings, SCE will face a higher likelihood of catastrophic wildfires in its territory. to, or believes that it may be unable to, recover damages related to catastrophic wildfires through insurance, the Wildfire Insurance Fund (which is only available for fires ignited after July 12, 2019) or electric rates, or access the bank and capital markets on reasonable terms, SCE may not have sufficient cash or equity to pay dividends or may be restricted from declaring such dividends because it does not meet CPUC or California law requirements related to the declaration of dividends. For information on the California law requirements on the declaration of dividends, see "Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies - SCE Dividends." Also see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." Edison International's and SCE's costs of accessing capital markets has increased due to the risks associated with wildfires in Southern California. Edison International's and SCE's access to the bank and capital markets could also be constrained and/or the costs of accessing those markets could increase further as a result of wildfire risk, including if Edison International's and/or SCE's credit ratings are downgraded or placed on negative watch due to concerns about Edison International and/or SCE's financial health as a result of wildfires. **Current (2025):** Prolonged drought conditions and shifting weather patterns in California resulting from climate change as well as, among other things, buildup of dry vegetation in areas severely impacted by years of historic drought and lack of adequate clearing of hazardous fuels by responsible parties have increased the duration of the wildfire season and the risk of severe wildfire events. Severe wildfires and urban development in and near high fire risk areas in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of utility practices and/or the failure of electric and other utility equipment. Catastrophic wildfires can occur in SCE's service area even if SCE effectively implements its WMPs. California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. An inability to recover uninsured wildfire-related costs could materially affect SCE's business, financial condition and results of operations. For example, if SCE is unable to, or believes that it may be unable to, recover damages related to catastrophic wildfires through insurance, the Wildfire Insurance Fund (which is only available for fires ignited after July 12, 2019) or electric rates, or access the bank and capital markets on reasonable terms, SCE may not have sufficient cash or equity to pay dividends or may be restricted from declaring such dividends because it does not meet CPUC or California law requirements related to the declaration of dividends. For information on the California law requirements on the declaration of dividends, see "Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies - SCE Dividends." Also see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides." 36 36 36 Table of Contents Table of Contents Edison International's and SCE's costs of accessing capital markets has increased due to the risks associated with wildfires in Southern California. Edison International's and SCE's access to the bank and capital markets could also be constrained and/or the costs of accessing those markets could increase further as a result of wildfire risk, including if Edison International's and/or SCE's credit ratings are downgraded or placed on negative watch due to concerns about Edison International and/or SCE's financial health as a result of wildfires. --- ## Modified: Note 2. Property, Plant and Equipment **Key changes:** - Reworded sentence: "SCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31,(in millions)20242023Distribution$37,093 $34,573 Transmission19,189 18,526 Generation4,217 3,593 General plant and other7,046 6,383 Accumulated depreciation(14,207)(12,910)53,338 50,165 Construction work in progress5,585 5,590 Nuclear fuel, at amortized cost124 122 Total utility property, plant and equipment$59,047 $55,877" **Prior (2024):** SCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (in millions) 2023 2022 Distribution ​ $ 34,573 ​ $ 32,754 Transmission ​ 18,526 ​ 18,106 Generation ​ 3,593 ​ 3,880 General plant and other ​ 6,383 ​ 6,121 Accumulated depreciation ​ (12,910) ​ (12,260) ​ ​ 50,165 ​ 48,601 Construction work in progress ​ 5,590 ​ 4,551 Nuclear fuel, at amortized cost ​ 122 ​ 122 Total utility property, plant and equipment ​ $ 55,877 ​ $ 53,274 ​ **Current (2025):** SCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31,(in millions)20242023Distribution$37,093 $34,573 Transmission19,189 18,526 Generation4,217 3,593 General plant and other7,046 6,383 Accumulated depreciation(14,207)(12,910)53,338 50,165 Construction work in progress5,585 5,590 Nuclear fuel, at amortized cost124 122 Total utility property, plant and equipment$59,047 $55,877 --- ## Modified: Consolidated Statements of Comprehensive Income **Key changes:** - Reworded sentence: "Years ended December 31,(in millions)202420232022Net income$1,794 $1,597 $954 Other comprehensive income (loss), net of tax:Pension and postretirement benefits other than pensions3 (4)24 Other comprehensive income (loss), net of tax3 (4)24 Comprehensive income$1,797 $1,593 $978 The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, (in millions) ​ 2023 2022 2021 Net income ​ $ 1,597 ​ $ 954 ​ $ 935 Other comprehensive (loss) income, net of tax: ​ ​ ​ Pension and postretirement benefits other than pensions ​ (4) ​ 24 ​ 9 **Current (2025):** Years ended December 31,(in millions)202420232022Net income$1,794 $1,597 $954 Other comprehensive income (loss), net of tax:Pension and postretirement benefits other than pensions3 (4)24 Other comprehensive income (loss), net of tax3 (4)24 Comprehensive income$1,797 $1,593 $978 The accompanying notes are an integral part of these consolidated financial statements. 56 56 56 Table of Contents Table of Contents --- ## Modified: Consolidated Statements of Cash FlowsEdison International **Key changes:** - Reworded sentence: "Years ended December 31,(in millions)202420232022Cash flows from operating activities:Net income$1,546 $1,407 $824 Adjustments to reconcile to net cash provided by operating activities:Depreciation and amortization2,939 2,721 2,633 Allowance for equity during construction(187)(157)(137)Impairment, net of other operating income - 1 49 Deferred income taxes9 108 (177)Wildfire Insurance Fund amortization expense146 213 214 Other81 57 80 Nuclear decommissioning trusts(174)(180)(123)Contributions to Wildfire Insurance Fund(95)(95)(95)Changes in operating assets and liabilities:Receivables(278)(349)(252)Inventory(14)(63)(58)Accounts payable53 (408)367 Tax receivables and payables(43)9 18 Other current assets and liabilities(42)185 207 Derivative assets and liabilities, net28 (174)115 Regulatory assets and liabilities, net1,219 576 (51)Wildfire-related insurance receivable83 (36)(390)Wildfire-related claims(397)(410)(56)Other noncurrent assets and liabilities140 (4)48 Net cash provided by operating activities5,014 3,401 3,216 Cash flows from financing activities:Long-term debt issued, net of discount and issuance costs of $44, $54, and $62 for the respective years5,256 5,121 5,971 Long-term debt repaid(2,701)(2,498)(1,085)Short-term debt issued - 1,076 1,000 Short-term debt repaid(401)(2,407)(1,543)Common stock repurchased(200) - - Preferred and preference stock issued, net of issuance cost345 542 - Preferred and preference stock repurchased and redeemed(656)(289) - Commercial paper borrowing (repayments), net308 1,102 (317)Dividends and distribution to noncontrolling interests(168)(117)(110)Common stock dividends paid(1,198)(1,112)(1,050)Preferred stock dividends paid(88)(108)(99)Other177 137 114 Net cash provided by financing activities674 1,447 2,881 Cash flows from investing activities:Capital expenditures(5,707)(5,448)(5,778)Proceeds from sale of nuclear decommissioning trust investments5,019 4,597 4,177 Purchases of nuclear decommissioning trust investments(4,898)(4,417)(4,054)Other50 35 81 Net cash used in investing activities(5,536)(5,233)(5,574)Net increase (decrease) in cash, cash equivalents and restricted cash152 (385)523 Cash, cash equivalents and restricted cash at beginning of year532 917 394 Cash, cash equivalents and restricted cash at end of year$684 $532 $917 Long-term debt issued, net of discount and issuance costs of $44, $54, and $62 for the respective years The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 81,758 ​ $ 78,041 ​ ​ The accompanying notes are an integral part of these consolidated financial statements.61 The accompanying notes are an integral part of these consolidated financial statements. 61 Table of Contents​​​​​​​​​​​​​​Consolidated Statements of Cash Flows​Edison International​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Cash flows from operating activities: ​ ​ ​ Net income​$ 1,407​$ 824​$ 925Adjustments to reconcile to net cash provided by operating activities:​ ​​ ​​ Depreciation and amortization​ 2,721​ 2,633​ 2,288Allowance for equity during construction​ (157)​ (137)​ (118)Impairment and other expense​ 1​ 54​ 71Deferred income taxes ​ 108​ (177)​ 43Wildfire Insurance Fund amortization expense​ 213​ 214​ 215Other​ 57​ 75​ 38Nuclear decommissioning trusts​ (180)​ (123)​ (256)Proceeds from Morongo Transmission LLC​​ - ​​ - ​​ 400Contributions to Wildfire Insurance Fund​ (95)​ (95)​ (95)Changes in operating assets and liabilities:​ ​​ ​​ Receivables​ (349)​ (252)​ (514)Inventory​ (63)​ (58)​ (21)Accounts payable​ (408)​ 367​ 138Tax receivables and payables​ 9​ 18​ 13Other current assets and liabilities​ 185​ 207​ (321)Derivative assets and liabilities, net​​ (174)​​ 115​​ (12)Regulatory assets and liabilities, net​ 576​ (51)​ (720)Wildfire-related insurance receivable​ (36)​ (390)​ 708Wildfire-related claims​ (410)​ (56)​ (2,648)Other noncurrent assets and liabilities​ (4)​ 48​ (123)Net cash provided by operating activities​ 3,401​ 3,216​ 11Cash flows from financing activities:​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years​ 5,121​ 5,971​ 5,412Long-term debt repaid ​ (2,498)​ (1,085)​ (1,037)Short-term debt issued​ 1,076​ 1,000​ 2,654Short-term debt repaid​ (2,407)​ (1,543)​ (2,255)Common stock issued​ 20​ 13​ 32Preferred and preference stock issued, net of issuance cost​ 542​ - ​ 1,977Preferred stock repurchased​ (289)​ - ​ - Commercial paper borrowing (repayments), net​ 1,102​ (317)​ (254)Dividends and distribution to noncontrolling interests​ (117)​ (110)​ (106)Common stock dividends paid​ (1,112)​ (1,050)​ (988)Preferred stock dividends paid​​ (108)​​ (99)​​ (35)Other​ 117​ 101​ 45Net cash provided by financing activities​ 1,447​ 2,881​ 5,445Cash flows from investing activities:​ ​ ​ Capital expenditures​ (5,448)​ (5,778)​ (5,505)Proceeds from sale of nuclear decommissioning trust investments​ 4,597​ 4,177​ 3,961Purchases of nuclear decommissioning trust investments​ (4,417)​ (4,054)​ (3,705)Other​ 35​ 81​ 98Net cash used in investing activities​ (5,233)​ (5,574)​ (5,151)Net (decrease) increase in cash, cash equivalents and restricted cash​ (385)​ 523​ 305Cash, cash equivalents and restricted cash at beginning of year​ 917​ 394​ 89Cash, cash equivalents and restricted cash at end of year​$ 532​$ 917​$ 394​The accompanying notes are an integral part of these consolidated financial statements.62 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​Consolidated Statements of Cash Flows​Edison International​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Cash flows from operating activities: ​ ​ ​ Net income​$ 1,407​$ 824​$ 925Adjustments to reconcile to net cash provided by operating activities:​ ​​ ​​ Depreciation and amortization​ 2,721​ 2,633​ 2,288Allowance for equity during construction​ (157)​ (137)​ (118)Impairment and other expense​ 1​ 54​ 71Deferred income taxes ​ 108​ (177)​ 43Wildfire Insurance Fund amortization expense​ 213​ 214​ 215Other​ 57​ 75​ 38Nuclear decommissioning trusts​ (180)​ (123)​ (256)Proceeds from Morongo Transmission LLC​​ - ​​ - ​​ 400Contributions to Wildfire Insurance Fund​ (95)​ (95)​ (95)Changes in operating assets and liabilities:​ ​​ ​​ Receivables​ (349)​ (252)​ (514)Inventory​ (63)​ (58)​ (21)Accounts payable​ (408)​ 367​ 138Tax receivables and payables​ 9​ 18​ 13Other current assets and liabilities​ 185​ 207​ (321)Derivative assets and liabilities, net​​ (174)​​ 115​​ (12)Regulatory assets and liabilities, net​ 576​ (51)​ (720)Wildfire-related insurance receivable​ (36)​ (390)​ 708Wildfire-related claims​ (410)​ (56)​ (2,648)Other noncurrent assets and liabilities​ (4)​ 48​ (123)Net cash provided by operating activities​ 3,401​ 3,216​ 11Cash flows from financing activities:​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years​ 5,121​ 5,971​ 5,412Long-term debt repaid ​ (2,498)​ (1,085)​ (1,037)Short-term debt issued​ 1,076​ 1,000​ 2,654Short-term debt repaid​ (2,407)​ (1,543)​ (2,255)Common stock issued​ 20​ 13​ 32Preferred and preference stock issued, net of issuance cost​ 542​ - ​ 1,977Preferred stock repurchased​ (289)​ - ​ - Commercial paper borrowing (repayments), net​ 1,102​ (317)​ (254)Dividends and distribution to noncontrolling interests​ (117)​ (110)​ (106)Common stock dividends paid​ (1,112)​ (1,050)​ (988)Preferred stock dividends paid​​ (108)​​ (99)​​ (35)Other​ 117​ 101​ 45Net cash provided by financing activities​ 1,447​ 2,881​ 5,445Cash flows from investing activities:​ ​ ​ Capital expenditures​ (5,448)​ (5,778)​ (5,505)Proceeds from sale of nuclear decommissioning trust investments​ 4,597​ 4,177​ 3,961Purchases of nuclear decommissioning trust investments​ (4,417)​ (4,054)​ (3,705)Other​ 35​ 81​ 98Net cash used in investing activities​ (5,233)​ (5,574)​ (5,151)Net (decrease) increase in cash, cash equivalents and restricted cash​ (385)​ 523​ 305Cash, cash equivalents and restricted cash at beginning of year​ 917​ 394​ 89Cash, cash equivalents and restricted cash at end of year​$ 532​$ 917​$ 394​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** Years ended December 31,(in millions)202420232022Cash flows from operating activities:Net income$1,546 $1,407 $824 Adjustments to reconcile to net cash provided by operating activities:Depreciation and amortization2,939 2,721 2,633 Allowance for equity during construction(187)(157)(137)Impairment, net of other operating income - 1 49 Deferred income taxes9 108 (177)Wildfire Insurance Fund amortization expense146 213 214 Other81 57 80 Nuclear decommissioning trusts(174)(180)(123)Contributions to Wildfire Insurance Fund(95)(95)(95)Changes in operating assets and liabilities:Receivables(278)(349)(252)Inventory(14)(63)(58)Accounts payable53 (408)367 Tax receivables and payables(43)9 18 Other current assets and liabilities(42)185 207 Derivative assets and liabilities, net28 (174)115 Regulatory assets and liabilities, net1,219 576 (51)Wildfire-related insurance receivable83 (36)(390)Wildfire-related claims(397)(410)(56)Other noncurrent assets and liabilities140 (4)48 Net cash provided by operating activities5,014 3,401 3,216 Cash flows from financing activities:Long-term debt issued, net of discount and issuance costs of $44, $54, and $62 for the respective years5,256 5,121 5,971 Long-term debt repaid(2,701)(2,498)(1,085)Short-term debt issued - 1,076 1,000 Short-term debt repaid(401)(2,407)(1,543)Common stock repurchased(200) - - Preferred and preference stock issued, net of issuance cost345 542 - Preferred and preference stock repurchased and redeemed(656)(289) - Commercial paper borrowing (repayments), net308 1,102 (317)Dividends and distribution to noncontrolling interests(168)(117)(110)Common stock dividends paid(1,198)(1,112)(1,050)Preferred stock dividends paid(88)(108)(99)Other177 137 114 Net cash provided by financing activities674 1,447 2,881 Cash flows from investing activities:Capital expenditures(5,707)(5,448)(5,778)Proceeds from sale of nuclear decommissioning trust investments5,019 4,597 4,177 Purchases of nuclear decommissioning trust investments(4,898)(4,417)(4,054)Other50 35 81 Net cash used in investing activities(5,536)(5,233)(5,574)Net increase (decrease) in cash, cash equivalents and restricted cash152 (385)523 Cash, cash equivalents and restricted cash at beginning of year532 917 394 Cash, cash equivalents and restricted cash at end of year$684 $532 $917 Long-term debt issued, net of discount and issuance costs of $44, $54, and $62 for the respective years The accompanying notes are an integral part of these consolidated financial statements. 53 53 53 Table of Contents Table of Contents --- ## Modified: Emission Allowances and Energy Credits **Key changes:** - Reworded sentence: "SCE is allocated GHG allowances annually which it is then required to sell into quarterly auctions." - Reworded sentence: "SCE had GHG allowances held for use of $66 million and $128 million at December 31, 2024 and 2023, respectively." **Prior (2024):** The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. 71 71 Table of ContentsThe following table sets forth the changes in allowance for uncollectible accounts for SCE:​​​​​​​​​​(in millions)​Customers​All others​TotalBalance at December 31, 2020 $ 175 $ 13​$ 188Current period provision for uncollectible accounts1​​124​​11​​ 135Write-offs, net of recoveries​ (6)​ (8)​ (14)Balance at December 31, 2021 $ 293 $ 16​$ 309Current period provision for uncollectible accounts1​​111​​ 11​​ 122Write-offs, net of recoveries​ (70)​ (7)​ (77)Balance at December 31, 2022²​$ 334 $ 20​$ 354Current period provision for uncollectible accounts1​​ 109​​ 6​​ 115Write-offs, net of recoveries​ (96)​ (9)​ (105)Balance at December 31, 2023²​$ 347 $ 17​$ 3641This includes $78 million, $40 million and $91 million of incremental costs for the years ended December 31, 2023, 2022 and 2021, respectively, which were probable of recovery from customers and recorded as regulatory assets.2Approximately $4 million and $7 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively.InventorySCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost.Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the second quarter of 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million ($9 million after-tax). Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also expensed in the period.Emission Allowances and Energy CreditsSCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $128 million and $87 million at December 31, 2023 and 2022, respectively. GHG emission obligations were $117 million and $55 million at December 31, 2023 and 2022, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets.SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible 72 Table of Contents Table of Contents Table of Contents The following table sets forth the changes in allowance for uncollectible accounts for SCE:​​​​​​​​​​(in millions)​Customers​All others​TotalBalance at December 31, 2020 $ 175 $ 13​$ 188Current period provision for uncollectible accounts1​​124​​11​​ 135Write-offs, net of recoveries​ (6)​ (8)​ (14)Balance at December 31, 2021 $ 293 $ 16​$ 309Current period provision for uncollectible accounts1​​111​​ 11​​ 122Write-offs, net of recoveries​ (70)​ (7)​ (77)Balance at December 31, 2022²​$ 334 $ 20​$ 354Current period provision for uncollectible accounts1​​ 109​​ 6​​ 115Write-offs, net of recoveries​ (96)​ (9)​ (105)Balance at December 31, 2023²​$ 347 $ 17​$ 3641This includes $78 million, $40 million and $91 million of incremental costs for the years ended December 31, 2023, 2022 and 2021, respectively, which were probable of recovery from customers and recorded as regulatory assets.2Approximately $4 million and $7 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively.InventorySCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost.Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the second quarter of 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million ($9 million after-tax). Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also expensed in the period.Emission Allowances and Energy CreditsSCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $128 million and $87 million at December 31, 2023 and 2022, respectively. GHG emission obligations were $117 million and $55 million at December 31, 2023 and 2022, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets.SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible The following table sets forth the changes in allowance for uncollectible accounts for SCE: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in millions) ​ Customers ​ All others ​ Total **Current (2025):** SCE is allocated GHG allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $66 million and $128 million at December 31, 2024 and 2023, respectively. GHG emission obligations were $22 million and $117 million at December 31, 2024 and 2023, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible customers. SCE's net proceeds from the sale of these LCFS credits were $243 million and $248 million at December 31, 2024 and 2023, respectively. LCFS credits are classified as "Regulatory liabilities" on the consolidated balance sheets. --- ## Modified: Definition and Limitations of Internal Control over Financial Reporting **Key changes:** - Reworded sentence: "A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements." **Prior (2024):** A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies 51 51 Table of Contentsand procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.​Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Wildfire-Related Claims - 2017/2018 Wildfire/Mudslide EventsAs described in Note 12 to the consolidated financial statements, the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (collectively, the "2017/2018 Wildfire/Mudslide Events") within the Company's service territory caused loss of life, substantial damage to both residential and business properties, and service outages for the Company's customers. Numerous claims related to wildfire events have been initiated against the Company. The Company has incurred material losses in connection with the 2017/2018 Wildfire/Mudslide Events. As disclosed by management, management records loss contingencies when it determines that the outcome of future events is probable of occurring and when the amount of the loss can be reasonably estimated. As of December 31, 2023, the Company had paid $8.7 billion under executed settlements, had $78 million to be paid under executed settlements, including $62 million to be paid under the Safety and Enforcement Division agreement, and had $637 million of estimated losses for remaining alleged and potential claims reflected on its consolidated balance sheets related to the 2017/2018 Wildfire/Mudslide Events. As of the same date, the Company had assets for expected recoveries through Federal Energy Regulatory Commission (FERC) electric rates of $37 million on its consolidated balance sheets and had exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. Each reporting period, management reviews the Company's loss estimates for remaining alleged and potential claims related to wildfire events. The process for estimating losses associated with alleged and potential wildfire related claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including, but not limited to: estimates of known and expected claims by third parties based on currently available information, opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, and prior experience litigating and settling wildfire litigation claims. As additional information becomes available, management's estimates and assumptions regarding the causes and financial impact of wildfire events may change. For the year ended December 31, 2023 management recorded charges for wildfire claims of $630 million and expected revenue from FERC customers of $37 million. The resulting pre-tax charge to earnings was $593 million ($428 million after-tax). The principal considerations for our determination that performing procedures relating to the wildfire-related claims from the 2017/2018 Wildfire/Mudslide Events is a critical audit matter are (i) the significant judgment by management when determining whether the outcome of future events is probable of occurring and whether the amount of the loss can be reasonably estimated as well as in estimating losses associated with alleged and potential claims related to wildfire events and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to estimates of known and expected claims by third parties based on 52 Table of Contents Table of Contents Table of Contents and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.​Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Wildfire-Related Claims - 2017/2018 Wildfire/Mudslide EventsAs described in Note 12 to the consolidated financial statements, the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (collectively, the "2017/2018 Wildfire/Mudslide Events") within the Company's service territory caused loss of life, substantial damage to both residential and business properties, and service outages for the Company's customers. Numerous claims related to wildfire events have been initiated against the Company. The Company has incurred material losses in connection with the 2017/2018 Wildfire/Mudslide Events. As disclosed by management, management records loss contingencies when it determines that the outcome of future events is probable of occurring and when the amount of the loss can be reasonably estimated. As of December 31, 2023, the Company had paid $8.7 billion under executed settlements, had $78 million to be paid under executed settlements, including $62 million to be paid under the Safety and Enforcement Division agreement, and had $637 million of estimated losses for remaining alleged and potential claims reflected on its consolidated balance sheets related to the 2017/2018 Wildfire/Mudslide Events. As of the same date, the Company had assets for expected recoveries through Federal Energy Regulatory Commission (FERC) electric rates of $37 million on its consolidated balance sheets and had exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. Each reporting period, management reviews the Company's loss estimates for remaining alleged and potential claims related to wildfire events. The process for estimating losses associated with alleged and potential wildfire related claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including, but not limited to: estimates of known and expected claims by third parties based on currently available information, opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, and prior experience litigating and settling wildfire litigation claims. As additional information becomes available, management's estimates and assumptions regarding the causes and financial impact of wildfire events may change. For the year ended December 31, 2023 management recorded charges for wildfire claims of $630 million and expected revenue from FERC customers of $37 million. The resulting pre-tax charge to earnings was $593 million ($428 million after-tax). The principal considerations for our determination that performing procedures relating to the wildfire-related claims from the 2017/2018 Wildfire/Mudslide Events is a critical audit matter are (i) the significant judgment by management when determining whether the outcome of future events is probable of occurring and whether the amount of the loss can be reasonably estimated as well as in estimating losses associated with alleged and potential claims related to wildfire events and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to estimates of known and expected claims by third parties based on and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ **Current (2025):** A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. 43 43 43 Table of Contents Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. --- ## Modified: Derivative Instruments **Key changes:** - Reworded sentence: "67 67 67 Table of Contents Table of Contents Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets." - Reworded sentence: "SCE also enters into a number of agreements to lease property and equipment in the normal course of business, primarily related to vehicles, office space and other equipment." - Reworded sentence: "Edison International Parent and Other's leases primarily relate to Trio, which are immaterial to Edison International." **Prior (2024):** SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the asset and has the right to direct the use. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets where each component is separately accounted for, SCE accounts for lease and non-lease components as a single lease component. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. SCE calculates and uses the rate implicit in the lease if the information is readily available or if not available, SCE uses its incremental borrowing rate in determining the present value of lease payments. Incremental borrowing rates are comprised of underlying risk-free rates and secured credit spreads relative to first mortgage bonds with like tenors of lease term durations. Lease right-of-use ("ROU") assets are based on the liability, subject to adjustments, such as lease incentives. The ROU assets also include any lease payments made at or before the commencement date. SCE excludes variable lease payments in measuring lease assets and lease liabilities. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. SCE elected to exclude from the balance sheet short-term leases of one year or less. SCE enters into power purchase agreements that may contain leases. This occurs when a power purchase agreement designates a specific power plant, SCE obtains substantially all of the economic benefits from the use of the plant and has the right to direct the use of the plant. SCE also enters into a number of agreements to lease property and equipment 78 78 Table of Contentsin the normal course of business, primarily related to vehicles, office space and other equipment. See Note 13 for further information on leases.Edison International Parent and Other's leases primarily relate to Edison Energy, which are immaterial to Edison International.Stock-Based CompensationStock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. For equity awards that are settled in common stock, Edison International either issues new common stock, or uses a third party to purchase shares from the market and deliver such shares for the settlement of the awards. Stock options, performance shares, deferred stock units and restricted stock units are settled in common stock. For awards that are otherwise settled entirely in common stock, Edison International substitutes cash awards to the extent necessary to satisfy applicable tax withholding obligations or government levies.Stock-based compensation expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period based on estimated fair values. For equity awards paid in common stock, fair value is determined at the grant date. For equity awards that have market conditions defined in the grants, expense is recognized based on grant date fair value if the requisite service period is fulfilled. However, with respect to the portion of the performance shares payable in common stock that are subject to financial performance conditions defined in the grants, the number of performance shares expected to be earned is subject to revision and updated at each reporting period, with a related adjustment to compensation expense.For awards granted to retirement-eligible participants, stock compensation expense is recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expense is recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. Share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. See Note 9 for further information.Employee Stock Purchase PlanThe Edison International Employee Stock Purchase Plan ("ESPP"), effective beginning July 2021, allows eligible employees to make purchases of Edison International's common stock. The maximum aggregate numbers of shares that may be issued under the ESPP is 3,000,000 shares. Eligible employees may authorize payroll deductions of between 1% and 10% of their compensation, up to a maximum of $25,000, to purchase shares of common stock at 97% of the market price on the last day of each six months offering period. The ESPP is considered noncompensatory and stock issuances under the ESPP are recorded directly in equity.SCE DividendsCPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders.The common equity component of SCE's CPUC authorized capital structure is 52% on a weighted average basis over the January 1, 2023 to December 31, 2025 compliance period ("Capital Structure Compliance Period"). The CPUC authorized capital structure differs from the capital structure calculated based on GAAP due to certain exclusions 79 Table of Contents Table of Contents Table of Contents in the normal course of business, primarily related to vehicles, office space and other equipment. See Note 13 for further information on leases.Edison International Parent and Other's leases primarily relate to Edison Energy, which are immaterial to Edison International.Stock-Based CompensationStock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. For equity awards that are settled in common stock, Edison International either issues new common stock, or uses a third party to purchase shares from the market and deliver such shares for the settlement of the awards. Stock options, performance shares, deferred stock units and restricted stock units are settled in common stock. For awards that are otherwise settled entirely in common stock, Edison International substitutes cash awards to the extent necessary to satisfy applicable tax withholding obligations or government levies.Stock-based compensation expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period based on estimated fair values. For equity awards paid in common stock, fair value is determined at the grant date. For equity awards that have market conditions defined in the grants, expense is recognized based on grant date fair value if the requisite service period is fulfilled. However, with respect to the portion of the performance shares payable in common stock that are subject to financial performance conditions defined in the grants, the number of performance shares expected to be earned is subject to revision and updated at each reporting period, with a related adjustment to compensation expense.For awards granted to retirement-eligible participants, stock compensation expense is recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expense is recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. Share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. See Note 9 for further information.Employee Stock Purchase PlanThe Edison International Employee Stock Purchase Plan ("ESPP"), effective beginning July 2021, allows eligible employees to make purchases of Edison International's common stock. The maximum aggregate numbers of shares that may be issued under the ESPP is 3,000,000 shares. Eligible employees may authorize payroll deductions of between 1% and 10% of their compensation, up to a maximum of $25,000, to purchase shares of common stock at 97% of the market price on the last day of each six months offering period. The ESPP is considered noncompensatory and stock issuances under the ESPP are recorded directly in equity.SCE DividendsCPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders.The common equity component of SCE's CPUC authorized capital structure is 52% on a weighted average basis over the January 1, 2023 to December 31, 2025 compliance period ("Capital Structure Compliance Period"). The CPUC authorized capital structure differs from the capital structure calculated based on GAAP due to certain exclusions in the normal course of business, primarily related to vehicles, office space and other equipment. See Note 13 for further information on leases. Edison International Parent and Other's leases primarily relate to Edison Energy, which are immaterial to Edison International. **Current (2025):** SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. 67 67 67 Table of Contents Table of Contents Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the asset and has the right to direct the use. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets where each component is separately accounted for, SCE accounts for lease and non-lease components as a single lease component. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. SCE calculates and uses the rate implicit in the lease if the information is readily available or if not available, SCE uses its incremental borrowing rate in determining the present value of lease payments. Incremental borrowing rates are comprised of underlying risk-free rates and secured credit spreads relative to first mortgage bonds with like tenors of lease term durations. Lease right-of-use ("ROU") assets are based on the liability, subject to adjustments, such as lease incentives. The ROU assets also include any lease payments made at or before the commencement date. SCE excludes variable lease payments in measuring lease assets and lease liabilities. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. SCE elected to exclude from the balance sheet short-term leases of one year or less. SCE enters into power purchase agreements that may contain leases. This occurs when a power purchase agreement designates a specific power plant, SCE obtains substantially all of the economic benefits from the use of the plant and has the right to direct the use of the plant. SCE also enters into a number of agreements to lease property and equipment in the normal course of business, primarily related to vehicles, office space and other equipment. See Note 13 for further information on leases. Edison International Parent and Other's leases primarily relate to Trio, which are immaterial to Edison International. --- ## Modified: Variable Interest in VIEs that are Consolidated **Key changes:** - Reworded sentence: "SCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary of SCE, formed for the purpose of issuing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures." - Reworded sentence: "For further details, see Note 5." **Prior (2024):** SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over their useful lives, primarily 5 and 7 year lives, commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.1 billion and $2.0 billion at December 31, 2023 and 2022, and accumulated amortization was $0.9 billion and $0.7 billion, at December 31, 2023 and 2022, respectively. Amortization expense for capitalized software was $358 million, $344 million and $311 million in 2023, 2022 and 2021, respectively. At December 31, 2023, amortization expense is estimated to be $359 million, $317 million, $253 million, $168 million and $61 million for 2024 through 2028, respectively. 5 82 82 Table of ContentsJointly Owned Utility ProjectsSCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income.The following is SCE's investment in each asset as of December 31, 2023:​​​​​​​​​​​​​​​​​​​​​​​​Construction​​​​​​​​​​​​​ Plant in Work in Accumulated Nuclear Fuel ​ Ownership (in millions) ​ Service ​Progress ​Depreciation ​ (at amortized cost) ​Total ​Interest Transmission systems:​ ​​ ​​ ​​ ​​ ​​ Eldorado​$ 355​$ 123​$ (63)​$ - ​$ 415​ 76%Pacific Intertie ​ 356 ​ 3 ​ (90) ​ - ​ 269 50%Generating station: ​ ​ ​ ​ ​​ ​Palo Verde (nuclear) ​ 2,211 ​ 58 ​ (1,670) ​ 122 ​ 721 16%Total​$ 2,922​$ 184​$ (1,823)​$ 122​$ 1,405 ​​In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies.Note 3.Variable Interest EntitiesA VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements.Variable Interest in VIEs that are ConsolidatedSCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE. SCE Recovery Funding LLC is a VIE and SCE is the primary beneficiary. SCE Recovery Funding LLC was formed in 2021 for the purpose of issuing and servicing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures.SCE Recovery Funding LLC has issued a total of $1.6 billion of securitized bonds. The proceeds were used to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service territory ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures, until the bonds are paid in full, and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5.The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets.​83 Table of Contents Table of Contents Table of Contents Jointly Owned Utility ProjectsSCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income.The following is SCE's investment in each asset as of December 31, 2023:​​​​​​​​​​​​​​​​​​​​​​​​Construction​​​​​​​​​​​​​ Plant in Work in Accumulated Nuclear Fuel ​ Ownership (in millions) ​ Service ​Progress ​Depreciation ​ (at amortized cost) ​Total ​Interest Transmission systems:​ ​​ ​​ ​​ ​​ ​​ Eldorado​$ 355​$ 123​$ (63)​$ - ​$ 415​ 76%Pacific Intertie ​ 356 ​ 3 ​ (90) ​ - ​ 269 50%Generating station: ​ ​ ​ ​ ​​ ​Palo Verde (nuclear) ​ 2,211 ​ 58 ​ (1,670) ​ 122 ​ 721 16%Total​$ 2,922​$ 184​$ (1,823)​$ 122​$ 1,405 ​​In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies.Note 3.Variable Interest EntitiesA VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements.Variable Interest in VIEs that are ConsolidatedSCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE. SCE Recovery Funding LLC is a VIE and SCE is the primary beneficiary. SCE Recovery Funding LLC was formed in 2021 for the purpose of issuing and servicing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures.SCE Recovery Funding LLC has issued a total of $1.6 billion of securitized bonds. The proceeds were used to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service territory ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures, until the bonds are paid in full, and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5.The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets.​ **Current (2025):** SCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary of SCE, formed for the purpose of issuing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures. This entity is a VIE because its equity investment is insufficient to support its operations. The most significant activity of SCE Recovery Funding LLC is to service the securitized bonds according to the decisions made by SCE. Therefore, SCE is determined to be the primary beneficiary and consolidates SCE Recovery Funding LLC. SCE Recovery Funding LLC issued a total of $1.6 billion of securitized bonds. The proceeds were used to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service area ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures, until the bonds are paid in full, and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5. The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets. December 31,(in millions)20242023Other current assets$49 $53 Regulatory assets: non-current1,512 1,558 Regulatory liabilities: current30 34 Current portion of long-term debt149 47 Other current liabilities6 6 Long-term debt11,468 1,515 Current portion of long-term debt1 Long-term debt1 72 72 72 Table of Contents Table of Contents 1The bondholders have no recourse to SCE. The long-term debt balance is net of unamortized debt issuance costs. --- ## Modified: Consolidated Balance SheetsEdison International **Key changes:** - Reworded sentence: "December 31,(in millions, except share amounts)20242023LIABILITIES AND EQUITYShort-term debt$998 $1,077 Current portion of long-term debt2,049 2,697 Accounts payable2,000 1,983 Wildfire-related claims60 30 Accrued interest422 390 Regulatory liabilities1,347 763 Current portion of operating lease liabilities124 120 Other current liabilities1,439 1,538 Total current liabilities8,439 8,598 Long-term debt (include $1,468 and $1,515 related to a VIE at respective dates)33,534 30,316 Deferred income taxes and credits7,180 6,672 Pensions and benefits384 415 Asset retirement obligations2,580 2,666 Regulatory liabilities10,159 9,420 Operating lease liabilities1,056 1,101 Wildfire-related claims941 1,368 Other deferred credits and other long-term liabilities3,566 3,258 Total deferred credits and other liabilities25,866 24,900 Total liabilities67,839 63,814 Commitments and contingencies (Note 12)Preferred stock (50,000,000 shares authorized; 1,159,317 shares of Series A and 503,454 and 532,454 shares of Series B issued and outstanding at respective dates)1,645 1,673 Common stock, no par value (800,000,000 shares authorized; 384,784,719 and 383,924,912 shares issued and outstanding at respective dates)6,353 6,338 Accumulated other comprehensive loss - (9)Retained earnings7,567 7,499 Total Edison International's shareholders' equity15,565 15,501 Noncontrolling interests - preference stock of SCE2,175 2,443 Total equity17,740 17,944 Total liabilities and equity$85,579 $81,758 Long-term debt (include $1,468 and $1,515 related to a VIE at respective dates) Preferred stock (50,000,000 shares authorized; 1,159,317 shares of Series A and 503,454 and 532,454 shares of Series B issued and outstanding at respective dates) Common stock, no par value (800,000,000 shares authorized; 384,784,719 and 383,924,912 shares issued and outstanding at respective dates) The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ 63,814 ​ 60,519 Commitments and contingencies (Note 12) ​ ​ Preferred stock (50,000,000 shares authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454 and 750,000 shares of Series B issued and outstanding at respective dates) Series A outstanding ​ ​ 1,673 ​ ​ 1,978 Common stock, no par value (800,000,000 shares authorized; 383,924,912 and 382,208,498 shares issued and outstanding at respective dates) issued outstanding ​ 6,338 ​ 6,200 Accumulated other comprehensive loss ​ (9) ​ (11) Retained earnings ​ 7,499 ​ 7,454 **Current (2025):** December 31,(in millions)20242023ASSETSCash and cash equivalents$193 $345 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates2,169 2,016 Accrued unbilled revenue848 742 Inventory538 527 Prepaid expenses103 112 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets418 341 Total current assets7,155 6,811 Nuclear decommissioning trusts4,286 4,173 Other investments57 54 Total investments4,343 4,227 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates207 207 Total property, plant and equipment59,254 56,084 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,180 1,221 Long-term insurance receivables418 501 Other long-term assets2,403 2,062 Total other assets14,827 14,636 Total assets$85,579 $81,758 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates) The accompanying notes are an integral part of these consolidated financial statements. 51 51 51 Table of Contents Table of Contents --- ## Modified: SCE may not effectively implement its wildfire mitigation plans. **Key changes:** - Reworded sentence: "SCE will face a higher likelihood of catastrophic wildfires in its service area if it cannot effectively implement its WMPs." - Reworded sentence: "For information regarding SCE's PSPS activities and related fines, see "Business - Southern California Wildfires - Public Safety Power Shutoff." SCE establishes the criteria under which it implements PSPS in its service area." **Prior (2024):** SCE will face a higher likelihood of catastrophic wildfires in its service territory if it cannot effectively implement its WMPs. For example, SCE may not be able to effectively implement its WMPs if it experiences unanticipated difficulties relative to sourcing, engaging, and retaining effectively trained contract workers or procuring materials it needs to fulfill its mitigation obligations under the WMPs. In addition, if SCE does not have an approved WMP, SCE will not be issued a safety certification from the CPUC and will consequently not benefit from the presumption of prudency or the AB 1054 Liability Cap. The CPUC may assess penalties on SCE if it finds that SCE has failed to substantially comply with its WMP. In addition, SCE may be subject to mandated changes to, or restrictions on, its operational wildfire mitigation practices or be subject to regulatory fines and penalties or claims for damages and reputational harm if SCE does not execute its wildfire mitigation practices in compliance with applicable rules and regulations. SCE's wildfire mitigation practices include PSPS and using fast-curve settings. In addition, SCE has been and may be further subject to regulatory fines and penalties or claims for damages and reputational harm if it is determined that SCE has placed excessive or unreasonable reliance on PSPS or has failed to maintain compliance with notification and post event reporting requirements related to PSPS. SCE establishes the criteria under which it implements PSPS in its territory. To the extent SCE's criteria for implementing PSPS are not sufficient to mitigate the risk of wildfires during high wind events, SCE does not fully implement PSPS when criteria are met due to other overriding conditions or SCE's regulators or others mandate changes to, or restrictions on, its criteria or other operational PSPS practices, SCE will face a higher likelihood of catastrophic wildfires in its territory during high wind events. Similarly, if SCE is prohibited by the CPUC from implementing its desired fast-curve settings, SCE will face a higher likelihood of catastrophic wildfires in its territory. 43 43 Table of ContentsFor more information on AB 1054, see "Business - Southern California Wildfires - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation."SCE will not benefit from all of the features of AB 1054 if the Wildfire Insurance Fund is exhausted.Catastrophic wildfires could rapidly exhaust the Wildfire Insurance Fund and SCE will not be reimbursed by the Wildfire Insurance Fund or benefit from the AB 1054 Liability Cap if the fund has been exhausted as a result of damage claims previously incurred by SCE or the other participating utilities.For more information on AB 1054, see "Business - Southern California Wildfires and Mudslides - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation."Climate change exacerbated weather-related incidents and other natural disasters could materially affect SCE's financial condition and results of operations.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. The impacts of climate change continue to evolve and remain dynamic and unpredictable. Climate change has caused, and exacerbated, extreme weather events and wildfires in southern California, and wildfires could cause, among other things, public safety issues, property damage and operational issues. In addition, the risk of flooding and debris flows occurring as a result of rain may be heightened. For example, the 2017/2018 Wildfire/Mudslide Events resulted in, among other things, loss of life, property damage and loss of service. For more information on the impact of the 2017/2018 Wildfire/Mudslide Events and Post-2018 Wildfires on SCE and Edison International, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."Extreme heat events have and can continue to lead to prolonged widespread outages due to, among other things, state-wide capacity supply shortages or equipment failure. Extreme weather events can also lead to use of PSPS. Weather-related events, such as debris flows, flooding and melting of a significantly higher than normal snowpack, and earthquakes can cause over-topping or failure at an SCE dam resulting in a rapid release of water that could cause, among other things, public safety issues, property damage and operational issues.Weather-related incidents and other natural disasters can lead to lost revenue and increased expense, including higher maintenance and repair costs, which SCE may not be able to recover from its customers. These incidents can also result in regulatory penalties and disallowances, particularly if SCE encounters difficulties in restoring power to its customers on a timely basis or if fire-related losses are found to be the result of utility practices and/or the failure of electric and other utility equipment. In addition, these occurrences could lead to significant claims for damages, including for loss of life and property damage. These occurrences could materially affect SCE's business, financial condition and results of operations, and the inability to restore power to SCE's customers could also materially damage the business reputation of SCE and Edison International.For additional information related to climate related risks, see "Business - Environmental Considerations - Environmental Risks."The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to SCE's workforce and the general public.Electricity poses hazards for SCE's workforce and the general public should they come in contact with electrical current or equipment, including through energized downed power lines or if equipment malfunctions. In addition, the risks 44 Table of Contents Table of Contents Table of Contents For more information on AB 1054, see "Business - Southern California Wildfires - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation."SCE will not benefit from all of the features of AB 1054 if the Wildfire Insurance Fund is exhausted.Catastrophic wildfires could rapidly exhaust the Wildfire Insurance Fund and SCE will not be reimbursed by the Wildfire Insurance Fund or benefit from the AB 1054 Liability Cap if the fund has been exhausted as a result of damage claims previously incurred by SCE or the other participating utilities.For more information on AB 1054, see "Business - Southern California Wildfires and Mudslides - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation."Climate change exacerbated weather-related incidents and other natural disasters could materially affect SCE's financial condition and results of operations.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. The impacts of climate change continue to evolve and remain dynamic and unpredictable. Climate change has caused, and exacerbated, extreme weather events and wildfires in southern California, and wildfires could cause, among other things, public safety issues, property damage and operational issues. In addition, the risk of flooding and debris flows occurring as a result of rain may be heightened. For example, the 2017/2018 Wildfire/Mudslide Events resulted in, among other things, loss of life, property damage and loss of service. For more information on the impact of the 2017/2018 Wildfire/Mudslide Events and Post-2018 Wildfires on SCE and Edison International, see "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."Extreme heat events have and can continue to lead to prolonged widespread outages due to, among other things, state-wide capacity supply shortages or equipment failure. Extreme weather events can also lead to use of PSPS. Weather-related events, such as debris flows, flooding and melting of a significantly higher than normal snowpack, and earthquakes can cause over-topping or failure at an SCE dam resulting in a rapid release of water that could cause, among other things, public safety issues, property damage and operational issues.Weather-related incidents and other natural disasters can lead to lost revenue and increased expense, including higher maintenance and repair costs, which SCE may not be able to recover from its customers. These incidents can also result in regulatory penalties and disallowances, particularly if SCE encounters difficulties in restoring power to its customers on a timely basis or if fire-related losses are found to be the result of utility practices and/or the failure of electric and other utility equipment. In addition, these occurrences could lead to significant claims for damages, including for loss of life and property damage. These occurrences could materially affect SCE's business, financial condition and results of operations, and the inability to restore power to SCE's customers could also materially damage the business reputation of SCE and Edison International.For additional information related to climate related risks, see "Business - Environmental Considerations - Environmental Risks."The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to SCE's workforce and the general public.Electricity poses hazards for SCE's workforce and the general public should they come in contact with electrical current or equipment, including through energized downed power lines or if equipment malfunctions. In addition, the risks For more information on AB 1054, see "Business - Southern California Wildfires - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation." **Current (2025):** SCE will face a higher likelihood of catastrophic wildfires in its service area if it cannot effectively implement its WMPs. 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. In addition, if SCE does not have an approved WMP, SCE will not be issued a safety certification from the CPUC and will consequently not benefit from the presumption of prudency or the AB 1054 Liability Cap. The CPUC may assess penalties on SCE if it finds that SCE has failed to substantially comply with its WMP. In addition, SCE may be subject to mandated changes to, or restrictions on, its operational wildfire mitigation practices or be subject to regulatory fines and penalties or claims for damages and reputational harm if SCE does not execute its wildfire mitigation practices in compliance with applicable rules and regulations. SCE's wildfire mitigation practices include PSPS and using fast-curve settings. In addition, SCE has been and may be further subject to regulatory fines and penalties or claims for damages and reputational harm if it is determined that SCE has placed excessive or unreasonable reliance on PSPS or has failed to maintain compliance with notification and post event reporting requirements related to PSPS. For information regarding SCE's PSPS activities and related fines, see "Business - Southern California Wildfires - Public Safety Power Shutoff." SCE establishes the criteria under which it implements PSPS in its service area. To the extent SCE's criteria for implementing PSPS are not sufficient to mitigate the risk of wildfires during high wind events, SCE does not fully implement PSPS when criteria are met due to other overriding conditions or SCE's regulators or others mandate changes to, or restrictions on, its criteria or other operational PSPS practices, SCE will face a higher likelihood of catastrophic wildfires in its service area during high wind events. Similarly, if SCE is prohibited by the CPUC from implementing its desired fast-curve settings, SCE will face a higher likelihood of catastrophic wildfires in its service area. For more information on AB 1054, see "Business - Southern California Wildfires - Recovery of Wildfire-Related Costs - 2019 Wildfire Legislation." --- ## Modified: Variable Interest in VIEs that are not Consolidated **Key changes:** - Reworded sentence: "Power Purchase Agreements SCE has certain PPAs where the counterparty entities meet one or both of the VIE conditions discussed above and in which SCE has variable interests, including: agreements through which SCE provides natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that allow purchase of energy at fixed prices upon the seller's election." - Reworded sentence: "The aggregate contracted capacity dedicated to SCE from these VIE projects was 5,200 MW and 3,343 MW at December 31, 2024 and 2023, respectively, and the amounts that SCE paid to these projects were $778 million and $528 million for the years ended December 31, 2024 and 2023, respectively." **Prior (2024):** SCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE. SCE Recovery Funding LLC is a VIE and SCE is the primary beneficiary. SCE Recovery Funding LLC was formed in 2021 for the purpose of issuing and servicing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures. SCE Recovery Funding LLC has issued a total of $1.6 billion of securitized bonds. The proceeds were used to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service territory ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures, until the bonds are paid in full, and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5. The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets. ​ 83 83 Table of Contents​​​​​​​December 31, (in millions)2023​2022Other current assets$ 53​$ 45Regulatory assets: non-current​ 1,558​​ 834Regulatory liabilities: current​ 34​​ 33Current portion of long-term debt1​ 47​​ 29Other current liabilities​ 6​​ 4Long-term debt1 1,515​​ 8091The bondholders have no recourse to SCE. The long-term debt balance is net of unamortized debt issuance costs.Variable Interest in VIEs that are not ConsolidatedPower Purchase AgreementsSCE has PPAs that are classified as variable interests in VIEs, including agreements through which SCE provides the natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that, upon the seller's election, include the purchase of energy at fixed prices. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants, which SCE does not perform. As of the balance sheet date, the carrying amount of assets and liabilities included in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated, result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 12. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 3,343 megawatts ("MW") and 3,907 MW at December 31, 2023 and 2022, respectively, and the amounts that SCE paid to these projects were $528 million and $608 million for the years ended December 31, 2023 and 2022, respectively. These amounts are recoverable in customer rates, subject to reasonableness review.Unconsolidated Trusts of SCESCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII were utilized in 2013, 2014, 2015, 2016, 2017 and 2023, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, 5.00% and 7.50% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, Series L and Series M Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities.The Series G, Series H, Series J, Series K, Series L and Series M Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, Series L or Series M Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 14 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments 84 Table of Contents Table of Contents Table of Contents ​​​​​​​December 31, (in millions)2023​2022Other current assets$ 53​$ 45Regulatory assets: non-current​ 1,558​​ 834Regulatory liabilities: current​ 34​​ 33Current portion of long-term debt1​ 47​​ 29Other current liabilities​ 6​​ 4Long-term debt1 1,515​​ 8091The bondholders have no recourse to SCE. The long-term debt balance is net of unamortized debt issuance costs.Variable Interest in VIEs that are not ConsolidatedPower Purchase AgreementsSCE has PPAs that are classified as variable interests in VIEs, including agreements through which SCE provides the natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that, upon the seller's election, include the purchase of energy at fixed prices. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants, which SCE does not perform. As of the balance sheet date, the carrying amount of assets and liabilities included in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated, result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 12. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 3,343 megawatts ("MW") and 3,907 MW at December 31, 2023 and 2022, respectively, and the amounts that SCE paid to these projects were $528 million and $608 million for the years ended December 31, 2023 and 2022, respectively. These amounts are recoverable in customer rates, subject to reasonableness review.Unconsolidated Trusts of SCESCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII were utilized in 2013, 2014, 2015, 2016, 2017 and 2023, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, 5.00% and 7.50% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V, Trust VI and Trust VII issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, Series L and Series M Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities.The Series G, Series H, Series J, Series K, Series L and Series M Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, Series L or Series M Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 14 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (in millions) 2023 ​ 2022 Other current assets $ 53 ​ $ 45 Regulatory assets: non-current ​ 1,558 ​ ​ 834 Regulatory liabilities: current ​ 34 ​ ​ 33 Current portion of long-term debt1 ​ 47 ​ ​ 29 Other current liabilities ​ 6 ​ ​ 4 Long-term debt1 1,515 ​ ​ 809 **Current (2025):** Power Purchase Agreements SCE has certain PPAs where the counterparty entities meet one or both of the VIE conditions discussed above and in which SCE has variable interests, including: agreements through which SCE provides natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that allow purchase of energy at fixed prices upon the seller's election. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is typically the operation and maintenance of the power plants, which SCE does not perform. Therefore, SCE has concluded that it is not the primary beneficiary of any of these VIEs because it does not control the commercial and operating activities that most significantly impact the economic performance of these entities. As of the balance sheet date, the carrying amount of assets and liabilities included in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated, result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 12. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 5,200 MW and 3,343 MW at December 31, 2024 and 2023, respectively, and the amounts that SCE paid to these projects were $778 million and $528 million for the years ended December 31, 2024 and 2023, respectively. These amounts are recoverable in customer rates, subject to a reasonableness review. --- ## Modified: Consolidated Balance SheetsSouthern California Edison Company **Key changes:** - Reworded sentence: "December 31,(in millions, except share amounts)20242023LIABILITIES AND EQUITYShort-term debt$553 $831 Current portion of long-term debt1,249 2,197 Accounts payable2,078 1,966 Wildfire-related claims60 30 Accrued interest385 355 Regulatory liabilities1,347 763 Current portion of operating lease liabilities123 118 Other current liabilities1,495 1,535 Total current liabilities7,290 7,795 Long-term debt (include $1,468 and $1,515 related to a VIE at respective dates)29,266 26,297 Deferred income taxes and credits8,697 8,126 Pensions and benefits92 105 Asset retirement obligations2,580 2,666 Regulatory liabilities10,159 9,420 Operating lease liabilities1,051 1,096 Wildfire-related claims941 1,368 Other deferred credits and other long-term liabilities3,518 3,206 Total deferred credits and other liabilities27,038 25,987 Total liabilities63,594 60,079 Commitments and contingencies (Note 12)Preference stock2,220 2,495 Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates)2,168 2,168 Additional paid-in capital8,950 8,446 Accumulated other comprehensive loss(9)(12)Retained earnings8,422 8,307 Total equity21,751 21,404 Total liabilities and equity$85,345 $81,483 Long-term debt (include $1,468 and $1,515 related to a VIE at respective dates) Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates) The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 81,758 ​ $ 78,041 ​ ​ The accompanying notes are an integral part of these consolidated financial statements.61 The accompanying notes are an integral part of these consolidated financial statements. 61 Table of Contents​​​​​​​​​​​​​​Consolidated Statements of Cash Flows​Edison International​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Cash flows from operating activities: ​ ​ ​ Net income​$ 1,407​$ 824​$ 925Adjustments to reconcile to net cash provided by operating activities:​ ​​ ​​ Depreciation and amortization​ 2,721​ 2,633​ 2,288Allowance for equity during construction​ (157)​ (137)​ (118)Impairment and other expense​ 1​ 54​ 71Deferred income taxes ​ 108​ (177)​ 43Wildfire Insurance Fund amortization expense​ 213​ 214​ 215Other​ 57​ 75​ 38Nuclear decommissioning trusts​ (180)​ (123)​ (256)Proceeds from Morongo Transmission LLC​​ - ​​ - ​​ 400Contributions to Wildfire Insurance Fund​ (95)​ (95)​ (95)Changes in operating assets and liabilities:​ ​​ ​​ Receivables​ (349)​ (252)​ (514)Inventory​ (63)​ (58)​ (21)Accounts payable​ (408)​ 367​ 138Tax receivables and payables​ 9​ 18​ 13Other current assets and liabilities​ 185​ 207​ (321)Derivative assets and liabilities, net​​ (174)​​ 115​​ (12)Regulatory assets and liabilities, net​ 576​ (51)​ (720)Wildfire-related insurance receivable​ (36)​ (390)​ 708Wildfire-related claims​ (410)​ (56)​ (2,648)Other noncurrent assets and liabilities​ (4)​ 48​ (123)Net cash provided by operating activities​ 3,401​ 3,216​ 11Cash flows from financing activities:​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years​ 5,121​ 5,971​ 5,412Long-term debt repaid ​ (2,498)​ (1,085)​ (1,037)Short-term debt issued​ 1,076​ 1,000​ 2,654Short-term debt repaid​ (2,407)​ (1,543)​ (2,255)Common stock issued​ 20​ 13​ 32Preferred and preference stock issued, net of issuance cost​ 542​ - ​ 1,977Preferred stock repurchased​ (289)​ - ​ - Commercial paper borrowing (repayments), net​ 1,102​ (317)​ (254)Dividends and distribution to noncontrolling interests​ (117)​ (110)​ (106)Common stock dividends paid​ (1,112)​ (1,050)​ (988)Preferred stock dividends paid​​ (108)​​ (99)​​ (35)Other​ 117​ 101​ 45Net cash provided by financing activities​ 1,447​ 2,881​ 5,445Cash flows from investing activities:​ ​ ​ Capital expenditures​ (5,448)​ (5,778)​ (5,505)Proceeds from sale of nuclear decommissioning trust investments​ 4,597​ 4,177​ 3,961Purchases of nuclear decommissioning trust investments​ (4,417)​ (4,054)​ (3,705)Other​ 35​ 81​ 98Net cash used in investing activities​ (5,233)​ (5,574)​ (5,151)Net (decrease) increase in cash, cash equivalents and restricted cash​ (385)​ 523​ 305Cash, cash equivalents and restricted cash at beginning of year​ 917​ 394​ 89Cash, cash equivalents and restricted cash at end of year​$ 532​$ 917​$ 394​The accompanying notes are an integral part of these consolidated financial statements.62 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​Consolidated Statements of Cash Flows​Edison International​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Cash flows from operating activities: ​ ​ ​ Net income​$ 1,407​$ 824​$ 925Adjustments to reconcile to net cash provided by operating activities:​ ​​ ​​ Depreciation and amortization​ 2,721​ 2,633​ 2,288Allowance for equity during construction​ (157)​ (137)​ (118)Impairment and other expense​ 1​ 54​ 71Deferred income taxes ​ 108​ (177)​ 43Wildfire Insurance Fund amortization expense​ 213​ 214​ 215Other​ 57​ 75​ 38Nuclear decommissioning trusts​ (180)​ (123)​ (256)Proceeds from Morongo Transmission LLC​​ - ​​ - ​​ 400Contributions to Wildfire Insurance Fund​ (95)​ (95)​ (95)Changes in operating assets and liabilities:​ ​​ ​​ Receivables​ (349)​ (252)​ (514)Inventory​ (63)​ (58)​ (21)Accounts payable​ (408)​ 367​ 138Tax receivables and payables​ 9​ 18​ 13Other current assets and liabilities​ 185​ 207​ (321)Derivative assets and liabilities, net​​ (174)​​ 115​​ (12)Regulatory assets and liabilities, net​ 576​ (51)​ (720)Wildfire-related insurance receivable​ (36)​ (390)​ 708Wildfire-related claims​ (410)​ (56)​ (2,648)Other noncurrent assets and liabilities​ (4)​ 48​ (123)Net cash provided by operating activities​ 3,401​ 3,216​ 11Cash flows from financing activities:​ ​ ​ Long-term debt issued, net of discount and issuance costs of $54, $62, and $43 for the respective years​ 5,121​ 5,971​ 5,412Long-term debt repaid ​ (2,498)​ (1,085)​ (1,037)Short-term debt issued​ 1,076​ 1,000​ 2,654Short-term debt repaid​ (2,407)​ (1,543)​ (2,255)Common stock issued​ 20​ 13​ 32Preferred and preference stock issued, net of issuance cost​ 542​ - ​ 1,977Preferred stock repurchased​ (289)​ - ​ - Commercial paper borrowing (repayments), net​ 1,102​ (317)​ (254)Dividends and distribution to noncontrolling interests​ (117)​ (110)​ (106)Common stock dividends paid​ (1,112)​ (1,050)​ (988)Preferred stock dividends paid​​ (108)​​ (99)​​ (35)Other​ 117​ 101​ 45Net cash provided by financing activities​ 1,447​ 2,881​ 5,445Cash flows from investing activities:​ ​ ​ Capital expenditures​ (5,448)​ (5,778)​ (5,505)Proceeds from sale of nuclear decommissioning trust investments​ 4,597​ 4,177​ 3,961Purchases of nuclear decommissioning trust investments​ (4,417)​ (4,054)​ (3,705)Other​ 35​ 81​ 98Net cash used in investing activities​ (5,233)​ (5,574)​ (5,151)Net (decrease) increase in cash, cash equivalents and restricted cash​ (385)​ 523​ 305Cash, cash equivalents and restricted cash at beginning of year​ 917​ 394​ 89Cash, cash equivalents and restricted cash at end of year​$ 532​$ 917​$ 394​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** December 31,(in millions)20242023ASSETSCash and cash equivalents$78 $214 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates2,160 1,981 Accrued unbilled revenue845 741 Inventory538 527 Prepaid expenses102 111 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets415 331 Total current assets7,024 6,633 Nuclear decommissioning trusts4,286 4,173 Other investments38 38 Total investments4,324 4,211 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates199 201 Total property, plant and equipment59,246 56,078 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,174 1,214 Long-term insurance receivables131 157 Long-term insurance receivables due from affiliate303 355 Other long-term assets2,317 1,983 Total other assets14,751 14,561 Total assets$85,345 $81,483 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates) The accompanying notes are an integral part of these consolidated financial statements. 57 57 57 Table of Contents Table of Contents --- ## Modified: Consolidated Statements of Comprehensive IncomeEdison International **Key changes:** - Reworded sentence: "Years ended December 31,(in millions)202420232022Net income$1,546 $1,407 $824 Other comprehensive income (loss), net of tax:Pension and postretirement benefits other than pensions9 (1)43 Foreign currency translation adjustments - 3 - Other comprehensive income, net of tax9 2 43 Comprehensive income1,555 1,409 867 Less: Comprehensive income attributable to noncontrolling interests175 123 107 Comprehensive income attributable to Edison International$1,380 $1,286 $760 The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 3.11 ​ $ 1.60 ​ $ 2.00 ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements.58 The accompanying notes are an integral part of these consolidated financial statements. 58 Table of Contents​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​Edison International​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,407​$ 824​$ 925Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (1)​ 43​ 15Foreign currency translation adjustments​​ 3​​ - ​​ - Other comprehensive income, net of tax​ 2​ 43​ 15Comprehensive income​ 1,409​ 867​ 940Less: Comprehensive income attributable to noncontrolling interests​ 123​ 107​ 106Comprehensive income attributable to Edison International​$ 1,286​$ 760​$ 834​​​​The accompanying notes are an integral part of these consolidated financial statements.59 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​​​​​Consolidated Statements of Comprehensive Income​Edison International​​​​​​​​​​​​​​​​​​​​​​​​Years ended December 31, (in millions)​2023 2022 2021Net income​$ 1,407​$ 824​$ 925Other comprehensive (loss) income, net of tax:​ ​ ​ Pension and postretirement benefits other than pensions​ (1)​ 43​ 15Foreign currency translation adjustments​​ 3​​ - ​​ - Other comprehensive income, net of tax​ 2​ 43​ 15Comprehensive income​ 1,409​ 867​ 940Less: Comprehensive income attributable to noncontrolling interests​ 123​ 107​ 106Comprehensive income attributable to Edison International​$ 1,286​$ 760​$ 834​​​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** Years ended December 31,(in millions)202420232022Net income$1,546 $1,407 $824 Other comprehensive income (loss), net of tax:Pension and postretirement benefits other than pensions9 (1)43 Foreign currency translation adjustments - 3 - Other comprehensive income, net of tax9 2 43 Comprehensive income1,555 1,409 867 Less: Comprehensive income attributable to noncontrolling interests175 123 107 Comprehensive income attributable to Edison International$1,380 $1,286 $760 The accompanying notes are an integral part of these consolidated financial statements. 50 50 50 Table of Contents Table of Contents --- ## Modified: Vendors and other third parties may be used to target and attack SCE **Key changes:** - Reworded sentence: "For example, compromises to widely-used products and services may affect the supply chains of many industries, including companies in SCE's supply chain." - Removed sentence: "49 49 Table of ContentsGlobal and Regional RisksEdison International's and SCE's financial condition and results of operations could be materially impacted by catastrophic, macroeconomic and geopolitical events that cause significant disruption to workforces, supply chains, economies, or societies on a regional, statewide, national or global basis.Edison International and SCE could be materially and adversely impacted by catastrophic, macroeconomic and geopolitical events, such as the effects of increased inflationary pressures and interest rates, potential economic downturns or recessions, geopolitical pressures, and pandemics and regional health emergencies." - Removed sentence: "For example, the global spread of COVID-19, which was declared a pandemic by the World Health Organization in March 2020, created significant uncertainty, volatility and disruption globally that resulted in, among other things, disruption to supply chains, economies, and workforce and impacted the operations of Edison International and SCE." - Removed sentence: "Additionally, the geopolitical developments involving the Russia-Ukraine conflict, China and the Middle East, could cause delays and disruptions in the supply chain and the availability and timely delivery of services, materials and components used in SCE's operations.Many of the risks and uncertainties identified in this Form 10-K have, and will be, exacerbated by the impacts of a catastrophic event and the actions taken by governmental entities, businesses, individuals and others in response to such an event." - Removed sentence: "In addition, impacts of international conflict, recession, pandemic or similar events on SCE's customers and third parties could also result in SCE facing, among other things, significant reductions in demand for electricity and payment delays and/or defaults from customers which could result in significant under-collections." **Prior (2024):** SCE interacts with a wide array of third parties and depends on vendors to provide it with products and services. Malicious actors may attack vendors to disrupt the services they provide to SCE, or to use those vendors as a conduit to attack SCE. SCE system data and architecture are also disclosed, either voluntarily or by mandate, to third parties and the public by regulators, employees, contractors, and vendors. This system data may be used by malicious actors to understand SCE's systems to prepare for a cyber or physical attack. The products and services provided by SCE's vendors may contain vulnerabilities or otherwise not adhere to SCE's enterprise cybersecurity standards (e.g., lack of encryption). Additionally, SCE's operational technology vendors have increasingly been targeted by threat actors. A compromise of equipment and/or exfiltration of SCE data, whether by physical or by electronic means, could result in loss or changes to confidential or sensitive information and interruption of business processes. For example, compromises to widely-used products and services such as MOVEit affected the supply chains of many industries, including companies in SCE's supply chain. While SCE vendors have experienced cybersecurity incidents, such incidents have not, to SCE's knowledge, resulted in a material impact to SCE to date. 49 49 Table of ContentsGlobal and Regional RisksEdison International's and SCE's financial condition and results of operations could be materially impacted by catastrophic, macroeconomic and geopolitical events that cause significant disruption to workforces, supply chains, economies, or societies on a regional, statewide, national or global basis.Edison International and SCE could be materially and adversely impacted by catastrophic, macroeconomic and geopolitical events, such as the effects of increased inflationary pressures and interest rates, potential economic downturns or recessions, geopolitical pressures, and pandemics and regional health emergencies. For example, the global spread of COVID-19, which was declared a pandemic by the World Health Organization in March 2020, created significant uncertainty, volatility and disruption globally that resulted in, among other things, disruption to supply chains, economies, and workforce and impacted the operations of Edison International and SCE. Additionally, the geopolitical developments involving the Russia-Ukraine conflict, China and the Middle East, could cause delays and disruptions in the supply chain and the availability and timely delivery of services, materials and components used in SCE's operations.Many of the risks and uncertainties identified in this Form 10-K have, and will be, exacerbated by the impacts of a catastrophic event and the actions taken by governmental entities, businesses, individuals and others in response to such an event. In addition, impacts of international conflict, recession, pandemic or similar events on SCE's customers and third parties could also result in SCE facing, among other things, significant reductions in demand for electricity and payment delays and/or defaults from customers which could result in significant under-collections. Edison International and SCE access to the bank and capital markets and/or the costs of accessing those markets could be constrained and could also face payment delays and/or defaults from insurers and other counterparties. These impacts, among others, could materially and adversely impact Edison International's and SCE's business, operations, cash flows, liquidity and financial results.Edison International's and SCE's business activities are concentrated in one industry and in one region.Substantially all of Edison International's and all of SCE's business activities are concentrated in the electric utility industry. Edison International's principal subsidiary, SCE, serves customers only in southern and central California. As a result, Edison International's and SCE's future performance may be affected by events and economic factors unique to California or by regional regulation, legislation or judicial decisions. For example, California courts have applied strict liability to investor-owned utilities in wildfire and other litigation matters. See "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."​QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKInformation responding to this section is included in the MD&A under the heading "Market Risk Exposures."​FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA​50 Table of Contents Table of Contents Table of Contents Global and Regional RisksEdison International's and SCE's financial condition and results of operations could be materially impacted by catastrophic, macroeconomic and geopolitical events that cause significant disruption to workforces, supply chains, economies, or societies on a regional, statewide, national or global basis.Edison International and SCE could be materially and adversely impacted by catastrophic, macroeconomic and geopolitical events, such as the effects of increased inflationary pressures and interest rates, potential economic downturns or recessions, geopolitical pressures, and pandemics and regional health emergencies. For example, the global spread of COVID-19, which was declared a pandemic by the World Health Organization in March 2020, created significant uncertainty, volatility and disruption globally that resulted in, among other things, disruption to supply chains, economies, and workforce and impacted the operations of Edison International and SCE. Additionally, the geopolitical developments involving the Russia-Ukraine conflict, China and the Middle East, could cause delays and disruptions in the supply chain and the availability and timely delivery of services, materials and components used in SCE's operations.Many of the risks and uncertainties identified in this Form 10-K have, and will be, exacerbated by the impacts of a catastrophic event and the actions taken by governmental entities, businesses, individuals and others in response to such an event. In addition, impacts of international conflict, recession, pandemic or similar events on SCE's customers and third parties could also result in SCE facing, among other things, significant reductions in demand for electricity and payment delays and/or defaults from customers which could result in significant under-collections. Edison International and SCE access to the bank and capital markets and/or the costs of accessing those markets could be constrained and could also face payment delays and/or defaults from insurers and other counterparties. These impacts, among others, could materially and adversely impact Edison International's and SCE's business, operations, cash flows, liquidity and financial results.Edison International's and SCE's business activities are concentrated in one industry and in one region.Substantially all of Edison International's and all of SCE's business activities are concentrated in the electric utility industry. Edison International's principal subsidiary, SCE, serves customers only in southern and central California. As a result, Edison International's and SCE's future performance may be affected by events and economic factors unique to California or by regional regulation, legislation or judicial decisions. For example, California courts have applied strict liability to investor-owned utilities in wildfire and other litigation matters. See "Notes to Consolidated Financial Statements - Note 12. Commitments and Contingencies - Contingencies - Southern California Wildfires and Mudslides."​QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKInformation responding to this section is included in the MD&A under the heading "Market Risk Exposures."​FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA​ **Current (2025):** SCE interacts with a wide array of third parties and depends on vendors to provide it with products and services. Malicious actors may attack vendors to disrupt the services they provide to SCE, or to use those vendors as a conduit to attack SCE. SCE system data and architecture are also disclosed, either voluntarily or by mandate, to third parties and the public by regulators, employees, contractors, and vendors. This system data may be used by malicious actors to understand SCE's systems to prepare for a cyber or physical attack. The products and services provided by SCE's vendors may contain vulnerabilities or otherwise not adhere to SCE's enterprise cybersecurity standards (e.g., lack of encryption). Additionally, SCE's operational technology vendors have increasingly been targeted by threat actors. A compromise of equipment and/or exfiltration of SCE data, whether by physical or by electronic means, could result in loss or changes to confidential or sensitive information and interruption of business processes. For example, compromises to widely-used products and services may affect the supply chains of many industries, including companies in SCE's supply chain. While SCE vendors have experienced cybersecurity incidents, such incidents have not, to SCE's knowledge, resulted in a material impact to SCE to date. --- ## Modified: Consolidated Balance SheetsSouthern California Edison Company **Key changes:** - Reworded sentence: "December 31,(in millions)20242023ASSETSCash and cash equivalents$78 $214 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates2,160 1,981 Accrued unbilled revenue845 741 Inventory538 527 Prepaid expenses102 111 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets415 331 Total current assets7,024 6,633 Nuclear decommissioning trusts4,286 4,173 Other investments38 38 Total investments4,324 4,211 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates199 201 Total property, plant and equipment59,246 56,078 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,174 1,214 Long-term insurance receivables131 157 Long-term insurance receivables due from affiliate303 355 Other long-term assets2,317 1,983 Total other assets14,751 14,561 Total assets$85,345 $81,483 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates) The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ 1,409 ​ 867 ​ 940 Less: Comprehensive income attributable to noncontrolling interests ​ 123 ​ 107 ​ 106 **Current (2025):** December 31,(in millions)20242023ASSETSCash and cash equivalents$78 $214 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates2,160 1,981 Accrued unbilled revenue845 741 Inventory538 527 Prepaid expenses102 111 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets415 331 Total current assets7,024 6,633 Nuclear decommissioning trusts4,286 4,173 Other investments38 38 Total investments4,324 4,211 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates199 201 Total property, plant and equipment59,246 56,078 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,174 1,214 Long-term insurance receivables131 157 Long-term insurance receivables due from affiliate303 355 Other long-term assets2,317 1,983 Total other assets14,751 14,561 Total assets$85,345 $81,483 Receivables, less allowances of $347 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $108 and $100 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a VIE at respective dates) The accompanying notes are an integral part of these consolidated financial statements. 57 57 57 Table of Contents Table of Contents --- ## Modified: Consolidated Balance SheetsEdison International **Key changes:** - Reworded sentence: "December 31,(in millions)20242023ASSETSCash and cash equivalents$193 $345 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates2,169 2,016 Accrued unbilled revenue848 742 Inventory538 527 Prepaid expenses103 112 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets418 341 Total current assets7,155 6,811 Nuclear decommissioning trusts4,286 4,173 Other investments57 54 Total investments4,343 4,227 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates207 207 Total property, plant and equipment59,254 56,084 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,180 1,221 Long-term insurance receivables418 501 Other long-term assets2,403 2,062 Total other assets14,827 14,636 Total assets$85,579 $81,758 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates) The accompanying notes are an integral part of these consolidated financial statements." **Prior (2024):** ​ $ 1,286 ​ $ 760 ​ $ 834 ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements.59 The accompanying notes are an integral part of these consolidated financial statements. 59 Table of Contents​​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions)​2023 2022ASSETS ​ ​ Cash and cash equivalents​$ 345​$ 914Receivables, less allowances of $360 and $347 for uncollectible accounts at respective dates​ 2,016​ 1,695Accrued unbilled revenue​ 742​ 641Inventory​ 527​ 474Prepaid expenses​ 112​ 248Regulatory assets​ 2,524​ 2,497Wildfire Insurance Fund contributions​ 204​ 204Other current assets​ 341​ 397Total current assets​ 6,811​ 7,070Nuclear decommissioning trusts​ 4,173​ 3,948Other investments​ 54​ 55Total investments​ 4,227​ 4,003Utility property, plant and equipment, less accumulated depreciation and amortization of $12,910 and $12,260 at respective dates​ 55,877​ 53,274Nonutility property, plant and equipment, less accumulated depreciation of $114 and $106 at respective dates​ 207​ 212Total property, plant and equipment​ 56,084​ 53,486Regulatory assets (include $1,558 and $834 related to Variable Interest Entities "VIEs" at respective dates)​ 8,897​ 8,181Wildfire Insurance Fund contributions​ 1,951​ 2,155Operating lease right-of-use assets​ 1,221​ 1,442Long-term insurance receivables​​ 501​​ 465Other long-term assets​ 2,066​ 1,239Total long-term assets​ 14,636​ 13,482Total assets​$ 81,758​$ 78,041​The accompanying notes are an integral part of these consolidated financial statements.60 Table of Contents Table of Contents Table of Contents ​​​​​​​​​​Consolidated Balance Sheets​Edison International​​​​​​​​​​​December 31, (in millions)​2023 2022ASSETS ​ ​ Cash and cash equivalents​$ 345​$ 914Receivables, less allowances of $360 and $347 for uncollectible accounts at respective dates​ 2,016​ 1,695Accrued unbilled revenue​ 742​ 641Inventory​ 527​ 474Prepaid expenses​ 112​ 248Regulatory assets​ 2,524​ 2,497Wildfire Insurance Fund contributions​ 204​ 204Other current assets​ 341​ 397Total current assets​ 6,811​ 7,070Nuclear decommissioning trusts​ 4,173​ 3,948Other investments​ 54​ 55Total investments​ 4,227​ 4,003Utility property, plant and equipment, less accumulated depreciation and amortization of $12,910 and $12,260 at respective dates​ 55,877​ 53,274Nonutility property, plant and equipment, less accumulated depreciation of $114 and $106 at respective dates​ 207​ 212Total property, plant and equipment​ 56,084​ 53,486Regulatory assets (include $1,558 and $834 related to Variable Interest Entities "VIEs" at respective dates)​ 8,897​ 8,181Wildfire Insurance Fund contributions​ 1,951​ 2,155Operating lease right-of-use assets​ 1,221​ 1,442Long-term insurance receivables​​ 501​​ 465Other long-term assets​ 2,066​ 1,239Total long-term assets​ 14,636​ 13,482Total assets​$ 81,758​$ 78,041​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ **Current (2025):** December 31,(in millions)20242023ASSETSCash and cash equivalents$193 $345 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates2,169 2,016 Accrued unbilled revenue848 742 Inventory538 527 Prepaid expenses103 112 Regulatory assets2,748 2,524 Wildfire Insurance Fund contributions138 204 Other current assets418 341 Total current assets7,155 6,811 Nuclear decommissioning trusts4,286 4,173 Other investments57 54 Total investments4,343 4,227 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates59,047 55,877 Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates207 207 Total property, plant and equipment59,254 56,084 Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates62 4 Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates)8,886 8,897 Wildfire Insurance Fund contributions1,878 1,951 Operating lease right-of-use assets1,180 1,221 Long-term insurance receivables418 501 Other long-term assets2,403 2,062 Total other assets14,827 14,636 Total assets$85,579 $81,758 Receivables, less allowances of $352 and $360 for uncollectible accounts at respective dates Utility property, plant and equipment, less accumulated depreciation and amortization of $14,207 and $12,910 at respective dates Nonutility property, plant and equipment, less accumulated depreciation of $124 and $114 at respective dates Receivables, less allowances of $43 and $4 for uncollectible accounts at respective dates Regulatory assets (include $1,512 and $1,558 related to a Variable Interest Entity "VIE" at respective dates) The accompanying notes are an integral part of these consolidated financial statements. 51 51 51 Table of Contents Table of Contents --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*