SCE forecasts total capital expenditures from $26.6 billion to $31.5 billion for 2025 – 2028, and weighted average annual rate base from $48.1 billion to $60.6 billion for 2025 – 2028. This indicates a significant investment in infrastructure and growth initiatives.

On March 20, 2025, SCE filed its application with the CPUC for authority to establish its authorized cost of capital for utility operations for a three-year term beginning in 2026 and to reset the related annual cost of capital adjustment mechanism. This indicates efforts to optimize its financial structure and regulatory environment.

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system. SCE requested funding through a balancing account of recorded and forecast capital expenditures of approximately $1.1 billion and operations and maintenance expenditures of $239 million. This indicates investments in digital transformation and operational efficiency.

SCE continues to implement its WMP to reduce the risk of SCE equipment contributing to the ignition of wildfires. Further to the investments SCE is making as part of its WMP, SCE also uses its PSPS program to proactively de-energize power lines as a last resort to mitigate the risk of significant wildfires during extreme weather events. Yet, the potential for catastrophic wildfire activity in SCE's service area still exists.

SCE continues to seek cost recoveries through regulatory mechanisms, including the TKM Settlement Agreement, the 2025 GRC, and the Woolsey Application. This demonstrates management's proactive approach to managing costs and securing regulatory approvals.

In the absence of a 2025 GRC decision, SCE has developed, and is executing against, a capital expenditure plan that is expected to allow SCE to meet what is ultimately authorized in the 2025 GRC decision while minimizing the associated risk of unauthorized spending. This indicates a proactive approach to managing capital expenditures and regulatory uncertainty.

Multiple lawsuits related to the Eaton Fire have been initiated against SCE and Edison International. Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred. This highlights a significant financial risk.

Should the fund administrator determine that claims for one or more covered wildfires during a coverage year will exceed available funds, the fund administrator is expected to determine an allocation method to process remaining funds towards not yet reimbursed eligible claims. This introduces uncertainty regarding the availability of funds for future wildfire events.

SCE's credit ratings may be affected by various factors. These include, among other things, if regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner, or if there is a persistent increase in the frequency and severity of wildfires in California. Credit rating downgrades increase the cost and may impact the availability of borrowings.

Risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as CCAs and Electric Service Providers. This indicates a competitive threat from alternative energy providers.

In light of the prudency standard the CPUC is required to apply under AB 1054 to utilities holding a safety certification at the time a wildfire ignited after July 12, 2019, SCE has concluded, at this time, that both uninsured CPUC-jurisdictional and uninsured FERC-jurisdictional wildfire-related costs related to the Other Wildfire Events that ignited after July 2019 for which it has deferred as regulatory assets are probable of recovery through electric rates.

In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, and capital market and bank financings. SCE also has availability under its credit facility to fund cash requirements. SCE may issue additional debt for general corporate purposes. This indicates a strong financial position to meet its obligations.

A decrease in operation and maintenance expense of $329 million was primarily due to a net decrease of $305 million related to lower previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2025 than in 2024. This indicates improved cost management.

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system that has been in service for over 15 years and will soon reach the end of its service life. This indicates efforts to modernize and improve operational efficiency.

Net cash (used in) provided by regulatory assets and liabilities, including changes in net under or over-collections recorded in balancing accounts, was $(1,443) million and $250 million during the three months ended March 31, 2025 and 2024, respectively. This indicates a shift in the timing of cost recovery and expense recognition.

In October 2021, SCE contracted with Ameresco, Inc. for the construction of utility owned energy storage projects at three sites in SCE's service area with an aggregate capacity of 537.5 MW. This indicates a commitment to innovative energy solutions.

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system that has been in service for over 15 years and will soon reach the end of its service life. This indicates investments in digital transformation and operational efficiency.

SCE continues to implement its WMP to reduce the risk of SCE equipment contributing to the ignition of wildfires. Further to the investments SCE is making as part of its WMP, SCE also uses its PSPS program to proactively de-energize power lines as a last resort to mitigate the risk of significant wildfires during extreme weather events. This indicates a commitment to innovative safety measures.

On December 12, 2024, the Edison International Board of Directors authorized a stock repurchase program effective February 20, 2025, for repurchase of up to $75 million of its common stock until February 18, 2026. This indicates a commitment to returning capital to shareholders.

During the three months ended March 31, 2025, SCE issued the following first and refunding mortgage bonds: Series 2025A, Series 2025B, Series 2025C, Series 2025D. This indicates a commitment to investing in infrastructure.

In October 2021, SCE contracted with Ameresco, Inc. for the construction of utility owned energy storage projects at three sites in SCE's service area with an aggregate capacity of 537.5 MW. This indicates a commitment to innovative energy solutions.

SCE continues to implement its WMP to reduce the risk of SCE equipment contributing to the ignition of wildfires. This indicates a commitment to safety and environmental responsibility.

In October 2021, SCE contracted with Ameresco, Inc. for the construction of utility owned energy storage projects at three sites in SCE's service area with an aggregate capacity of 537.5 MW. This indicates a commitment to innovative energy solutions.

In March 2025, SCE filed an application with the CPUC seeking funding for the replacement of its core ERP system that has been in service for over 15 years and will soon reach the end of its service life. This indicates investments in digital transformation and operational efficiency.

Risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as CCAs and Electric Service Providers. This indicates a competitive threat from alternative energy providers.

California's environmental priorities that lessen the importance placed on GHG reduction and other climate related priorities. Extreme weather-related incidents (including events caused, or exacerbated, by climate change), such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events and other natural disasters (such as earthquakes), which could cause, among other things, worker and public safety issues, property damage, outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs.

Governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the NERC, CAISO, Western Electricity Coordinating Council, and similar regulatory bodies in adjoining regions, and changes in the United States' and California's environmental priorities that lessen the importance placed on GHG reduction and other climate related priorities.