SOUTHERN CALIFORNIA EDISON 10Q 2024 Q2 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2024
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to


Commission File Number	Exact Name of Registrant as specified in its charter	State or Other Jurisdiction of Incorporation or Organization	IRS Employer Identification Number
1-9936	EDISON INTERNATIONAL	California	95-4137452
1-2313	SOUTHERN CALIFORNIA EDISON COMPANY	California	95-1240335


EDISON INTERNATIONAL	SOUTHERN CALIFORNIA EDISON COMPANY

2244 Walnut Grove Avenue	2244 Walnut Grove Avenue
(P.O. Box 976)	(P.O. Box 800)
Rosemead, California 91770	Rosemead, California 91770
(Address of principal executive offices)	(Address of principal executive offices)
(626) 302-2222	(626) 302-1212
(Registrant's telephone number, including area code)	(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Edison International:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	EIX	NYSE LLC

Southern California Edison Company: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Edison International	Yes ☑ No ☐	Southern California Edison Company	Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Edison International	Yes ☑ No ☐	Southern California Edison Company	Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-12 of the Exchange Act.


Edison International	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
	☑	☐	☐	☐	☐
Southern California Edison Company	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
	☐	☐	☑	☐	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Edison International

☐

Southern California Edison Company

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Edison International	Yes ☐ No ☑	Southern California Edison Company	Yes☐ No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:


Common Stock outstanding as of July 18, 2024:
Edison International	386,176,746 Shares
Southern California Edison Company	434,888,104 Shares

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TABLE OF CONTENTS

		SEC Form 10-Q
		Reference Number
GLOSSARY	iv
FORWARD-LOOKING STATEMENTS	1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	4	Part I, Item 2
MANAGEMENT OVERVIEW	4
Highlights of Operating Results	4
2025 General Rate Case	6
Capital Program	6
Southern California Wildfires and Mudslides	7
RESULTS OF OPERATIONS	8
Southern California Edison Company	8
Three months ended June 30, 2024 versus June 30, 2023	9
Earning Activities	9
Cost-Recovery Activities	10
Six months ended June 30, 2024 versus June 30, 2023	10
Earning Activities	11
Cost-Recovery Activities	12
Supplemental Operating Revenue Information	12
Income Taxes	12
Edison International Parent and Other	12
Loss from Operations	13
LIQUIDITY AND CAPITAL RESOURCES	13
Southern California Edison Company	13
Available Liquidity	13
Regulatory Proceedings	14
Capital Investment Plan	15
Decommissioning of San Onofre	15
Margin and Collateral Deposits	15
Edison International Parent and Other	16
Edison International Income taxes	17
Historical Cash Flows	17
Southern California Edison Company	17
Edison International Parent and Other	19
Contingencies	20
MARKET RISK EXPOSURES	20
CRITICAL ACCOUNTING ESTIMATES AND POLICIES	20

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NEW ACCOUNTING GUIDANCE	20
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	20	Part I, Item 3
FINANCIAL STATEMENTS	21	Part I, Item 1
Edison International Consolidated Statements of Income	21
Edison International Consolidated Statements of Comprehensive Income	22
Edison International Consolidated Balance Sheets	23
Edison International Consolidated Statements of Cash Flows	25
SCE Consolidated Statements of Income	26
SCE Consolidated Statements of Comprehensive Income	26
SCE Consolidated Balance Sheets	27
SCE Consolidated Statements of Cash Flows	29
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	30
Note 1. Summary of Significant Accounting Policies	30
Note 2. Consolidated Statements of Changes in Equity	34
Note 3. Variable Interest Entities	37
Note 4. Fair Value Measurements	39
Note 5. Debt and Credit Agreements	42
Note 6. Derivative Instruments	42
Note 7. Revenue	44
Note 8. Income Taxes	45
Note 9. Compensation and Benefit Plans	46
Note 10. Investments	47
Note 11. Regulatory Assets and Liabilities	48
Note 12. Commitments and Contingencies	49
Note 13. Equity	60
Note 14. Accumulated Other Comprehensive Loss	61
Note 15. Other Income	62
Note 16. Supplemental Cash Flows Information	62
Note 17. Related-Party Transactions	62
CONTROLS AND PROCEDURES	63	Part I, Item 4
Disclosure Controls and Procedures	63
Changes in Internal Control Over Financial Reporting	63
Jointly Owned Utility Plant	63
LEGAL PROCEEDINGS	63	Part II, Item 1
2017/2018 Wildfire/Mudslide Events	63
Environmental Proceedings	64
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	64	Part II, Item 2

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Share Repurchase Program	64
Purchases of Equity Securities by Edison International and Affiliated Purchasers	64
OTHER INFORMATION	65	Part II Item 5
EXHIBITS	66	Part II, Item 6
SIGNATURES	67

This combined Form 10-Q is separately filed by Edison International and SCE. Information contained in this document relating to SCE is filed by Edison International and separately by SCE. SCE makes no representation as to information relating to Edison International or its subsidiaries, except as it may relate to SCE and its subsidiaries.

iii

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GLOSSARY

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.


2017/2018 Wildfire/Mudslide Events		the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively
2023 Form 10-K		Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2023
2023 MD&A		Edison International's and SCE's MD&A for the calendar year 2023, which was included in the 2023 Form 10-K
AB 1054		California Assembly Bill 1054, executed by the governor of California on July 12, 2019
AB 1054 Excluded Capital Expenditures		$1.6 billion in wildfire risk mitigation capital expenditures that SCE has excluded from the equity portion of SCE's rate base as required under AB 1054
AB 1054 Liability Cap		a cap on the aggregate requirement to reimburse the Wildfire Insurance Fund over a trailing three calendar year period which applies if certain conditions are met and is equal to 20% of the equity portion of the utility's transmission and distribution rate base, excluding general plant and intangibles, in the year of the applicable prudency determination
ARO(s)		asset retirement obligation(s)
CAISO		California Independent System Operator
Capistrano Wind		a group of wind projects referred to as Capistrano Wind
Capital Structure Compliance Period		January 1, 2023 to December 31, 2025, the current compliance period for SCE's CPUC authorized capital structure
CCAs		community choice aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses
CPUC		California Public Utilities Commission
CSRP		Customer Service Re-platform, a customer service system implemented in April 2021
DGC		the decommissioning general contractor engaged by SCE to undertake a significant scope of decommissioning activities at San Onofre
ECS		SCE commercial telecommunications services operated under the name of Edison Carrier Solutions
EIS		Edison Insurance Services, Inc., a wholly-owned subsidiary of Edison International licensed to provide insurance to Edison International and its subsidiaries
Electric Service Provider		an entity other than an investor-owned utility or CCA that provides electric power and ancillary services to retail customers
ERRA		Energy Resource Recovery Account
Fast curve settings		protective settings, used to mitigate the risk of wildfires in high fire risk areas, that enable SCE to more quickly shut off power when an electrical fault occurs than under traditional settings
FERC		Federal Energy Regulatory Commission
Fitch		Fitch Ratings, Inc.
GAAP		generally accepted accounting principles in the United States
GHG		greenhouse gas
GRC		general rate case
IRA		Inflation Reduction Act of 2022
Koenigstein Fire		a wind-driven fire that originated near Koenigstein Road in the City of Santa Paula in Ventura County, California, on December 4, 2017
MD&A		Management's Discussion and Analysis of Financial Condition and Results of Operations
Montecito Mudslides		the debris flows and flooding in Montecito, Santa Barbara County, California, that occurred in January 2018
Moody's		Moody's Investors Service, Inc.

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MW		Megawatt(s)
NDCTP		Nuclear Decommissioning Cost Triennial Proceeding, a CPUC proceeding to review decommissioning costs
NERC		North American Electric Reliability Corporation
NRC		United States Nuclear Regulatory Commission
OEIS		Office of Energy Infrastructure Safety of the California Natural Resources Agency
Other 2017/2018 Wildfires		Collectively, all the wildfires that originated in Southern California in 2017 or 2018 where SCE's equipment has been or may be alleged to be associated with the fire's ignition, except for the Thomas Fire, the Koenigstein Fire and the Woolsey Fire
Other Wildfires		Collectively, the Other 2017/2018 Wildfires and the Post-2018 Wildfires
PABA		Portfolio Allocation Balancing Account
Palo Verde		nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
PBOP(s)		postretirement benefits other than pension(s)
PG&E		Pacific Gas & Electric Company
Post-2018 Wildfires		Collectively, all the wildfires that originated in Southern California after 2018 where SCE's equipment has been or may be alleged to be associated with the fire's ignition
PSPS		Public Safety Power Shutoff(s)
ROE		return on common equity
RPS		California's Renewables Portfolio Standard
S&P		Standard & Poor's Financial Services LLC
San Onofre		retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest
SCE		Southern California Edison Company, a wholly-owned subsidiary of Edison International
SCE Recovery Funding LLC		a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE
SDG&E		San Diego Gas & Electric Company
SEC		U.S. Securities and Exchange Commission
SED		Safety and Enforcement Division of the CPUC
SED Agreement		an agreement dated October 21, 2021 between SCE and the SED regarding the 2017/2018 Wildfire/Mudslide Events and three other 2017 wildfires
Thomas Fire		a wind-driven fire that originated in the Anlauf Canyon area of Ventura County, California, on December 4, 2017
TKM		collectively, the Thomas Fire, the Koenigstein Fire and the Montecito Mudslides
Track 4		Track 4 of the 2021 GRC, which addressed SCE's revenue requirement for 2024
Trio		Edison Energy, LLC, an indirect wholly-owned non-utility subsidiary of Edison International, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers doing business as "Trio"
WCCP		Wildfire Covered Conductor Program
WMP		a wildfire mitigation plan required to be filed under AB 1054 to describe a utility's plans to construct, operate, and maintain electrical lines and equipment that will help minimize the risk of catastrophic wildfires caused by such electrical lines and equipment
Wildfire Insurance Fund		the insurance fund established under AB 1054
Woolsey Fire		a wind-driven fire that originated in Ventura County in November 2018

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FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statements that do not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," "targets," and variations of such words and similar expressions, or discussions of strategy or plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to the:

●

ability of SCE to recover its costs through regulated rates, timely or at all, including uninsured wildfire-related and debris flow-related costs (including amounts paid for self-insured retention and co-insurance), costs incurred to mitigate the risk of utility equipment causing future wildfires, and increased costs due to supply chain constraints, inflation and rising interest rates;

●

impact of affordability of customer rates on SCE's ability to execute its strategy, including the impact of affordability on the regulatory approval of operations and maintenance expenses, and proposed capital investment projects;

●

ability of SCE to implement its operational and strategic plans, including its WMP and capital program;

●

risks of regulatory or legislative restrictions that would limit SCE's ability to implement operational measures to mitigate wildfire risk, including PSPS and fast curve settings, when conditions warrant or would otherwise limit SCE's operational practices relative to wildfire risk mitigation;

●

ability of SCE to obtain safety certifications from OEIS;

●

risk that AB 1054 does not effectively mitigate the significant exposure faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are alleged to be a substantial cause, including the longevity of the Wildfire Insurance Fund and the CPUC's interpretation of and actions under AB 1054, including its interpretation of the prudency standard clarified by AB 1054;

●

risks associated with the operation of electrical facilities, including worker and public safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts;

●

physical security of Edison International's and SCE's critical assets and personnel and the cybersecurity of Edison International's and SCE's critical information technology systems for grid control, and business, employee and customer data;

●

ability of Edison International and SCE to effectively attract, manage, develop and retain a skilled workforce, including its contract workers;

●

decisions and other actions by the CPUC, the FERC, the NRC and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, determinations of authorized rates of return or return on equity, the recoverability of wildfire-related and debris flow-related costs, issuance of SCE's wildfire safety certification, wildfire mitigation efforts, approval and implementation of electrification programs, and delays in executive, regulatory and legislative actions;

●

potential for penalties or disallowances for non-compliance with applicable laws and regulations, including fines, penalties and disallowances related to wildfires where SCE's equipment is alleged to be associated with ignition;

●

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

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earthquakes), which could cause, among other things, public safety issues, property damage, rotating outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs;

●

cost and availability of labor, equipment and materials, including as a result of supply chain constraints and inflation;

●

ability of Edison International or SCE to borrow funds and access bank and capital markets on reasonable terms;

●

risks associated with the decommissioning of San Onofre, including those related to worker and public safety, public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel and other radioactive material, delays, contractual disputes, and cost overruns;

●

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;

●

risks inherent in SCE's capital investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, changes in the CAISO's transmission plans, and governmental approvals;

●

actions by credit rating agencies to downgrade Edison International or SCE's credit ratings or to place those ratings on negative watch or negative outlook;

●

changes in tax laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could affect recorded deferred tax assets and liabilities, effective tax rates and cash flows;

●

changes in future taxable income, or changes in tax law, that would limit Edison International's and SCE's realization of expected net operating loss and tax credit carryover benefits prior to expiration;

●

changes in interest rates and potential future adjustments to SCE's ROE based on changes in Moody's utility bond rate index;

●

changes in rates of inflation (including whether inflation-related adjustments to SCE's authorized revenues allowed by the public utility regulators are commensurate with inflation rates);

●

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;

●

availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations; and

●

cost of fuel for generating facilities and related transportation, which could be impacted by, among other things, disruption of natural gas storage facilities, to the extent not recovered, timely or at all, through regulated rate cost escalation provisions or balancing accounts.

Additional information about risks and uncertainties, including more detail about the factors described in this report, is contained throughout this report and in the 2023 Form 10-K, including the "Risk Factors" section. Readers are urged to read this entire report, including information incorporated by reference, as well as the 2023 Form 10-K, and carefully consider the risks, uncertainties, and other factors that affect Edison International's and SCE's businesses. Forward-looking statements speak only as of the date they are made and neither Edison International nor SCE are obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by Edison International and SCE with the SEC. Edison International and SCE post or provide direct links to (i) certain SCE and other parties' regulatory filings and documents with the CPUC and the FERC and certain agency rulings and notices in open proceedings in a section titled "SCE Regulatory Highlights," (ii) certain documents and information related to Southern California wildfires which may be of interest to investors in a section titled "Southern California Wildfires," and (iii) presentations, documents and information that may be of interest to investors in a section titled "Presentations and Updates" at www.edisoninvestor.com in order to

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publicly disseminate such information. The reports, presentations, documents and information contained on, or connected to, the Edison International investor website are not deemed part of, and are not incorporated by reference into, this report.

The MD&A for the six months ended June 30, 2024 discusses material changes in the consolidated financial condition, results of operations and other developments of Edison International and SCE since December 31, 2023 and as compared to the six months ended June 30, 2023. This discussion presumes that the reader has read or has access to the 2023 MD&A.

Except when otherwise stated, references to each of Edison International or SCE mean each such company with its subsidiaries on a consolidated basis. References to "Edison International Parent and Other" mean Edison International Parent and its subsidiaries other than SCE and its subsidiaries and "Edison International Parent" mean Edison International on a stand-alone basis, not consolidated with its subsidiaries. Unless otherwise described, all the information contained in this report relates to both filers.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT OVERVIEW

Highlights of Operating Results

Edison International is the ultimate parent holding company of SCE and Edison Energy, LLC, doing business as Trio ("Trio"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio's business activities are currently not material to report as a separate business segment.

Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (loss) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (loss) are defined as earnings attributable to Edison International 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, such as write downs, asset impairments and other income and expense related to changes in law, outcomes in tax, regulatory or legal proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing.

Beginning July 1, 2023, SCE implemented a customer-funded wildfire self-insurance program. With the commencement of this program, Edison International and SCE no longer consider claims-related losses for wildfires to be representative of ongoing earnings and are treating such costs as non-core items prospectively. For additional information on the customer-funded self-insurance program, see "Management Overview—Customer-Funded Self-Insurance" in the 2023 MD&A.

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	Three months ended						Six months ended
	June 30,						June 30,
(in millions)	2024		2023		Change		2024		2023		Change
Net income (loss) available to Edison International
SCE	$	523	$	420	$	103	$	588	$	790	$	(202)
Edison International Parent and Other		(84)		(66)		(18)		(160)		(126)		(34)
Edison International		439		354		85		428		664		(236)
Less: Non-core items
SCE
2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries		(11)		(12)		1		(478)		(102)		(376)
Other Wildfires claims and expenses, net of recoveries¹		(2)		—		(2)		(121)		—		(121)
Wildfire Insurance Fund expense		(37)		(53)		16		(73)		(105)		32
2021 NDCTP probable disallowance		—		—		—		—		(30)		30
Customer cancellations of certain ECS data services		—		(17)		17		—		(17)		17
Insurance recovery related to employment litigation matter		—		10		(10)		—		10		(10)
Income tax benefit²		14		21		(7)		188		69		119
Edison International Parent and Other
Customer revenues for EIS insurance contract, net of (claims)		—		22		(22)		(1)		44		(45)
Income tax expense²		—		(5)		5		—		(9)		9
Total non-core items		(36)		(34)		(2)		(485)		(140)		(345)
Core earnings (loss)
SCE		559		471		88		1,072		965		107
Edison International Parent and Other		(84)		(83)		(1)		(159)		(161)		2
Edison International	$	475	$	388	$	87	$	913	$	804	$	109

1	Charges of $4 million related to claims from wildfires ignited prior to July 1, 2023 are included in core earnings for the six months ended June 30, 2023. Core earnings in periods before the third quarter of 2023 have not been recast to exclude these charges.

2	SCE and Edison International Parent and Other non-core items are tax-effected at an estimated statutory rate of approximately 28%; customer revenues (claims) for EIS insurance contract are tax-effected at the federal statutory rate of 21%.

Edison International's second quarter 2024 earnings increased $85 million from the second quarter of 2023, resulting from an increase in SCE's earnings of $103 million and an increase in Edison International Parent and Other's loss of $18 million. SCE's higher net income consisted of $88 million of higher core earnings and $15 million of lower non-core loss. Edison International Parent and Other's loss increased due to $1 million of higher core loss and $17 million of lower earnings from non-core items. Edison International's earnings for the six months ended June 30, 2024 decreased $236 million from the six months ended June 30, 2023, resulting from a decrease in SCE's earnings of $202 million and an increase in Edison International Parent and Other's loss of $34 million. SCE's lower net income consisted of $309 million of higher losses in non-core items, partially offset by $107 million of higher core earnings. Edison International Parent and Other's increased losses consisted of $36 million of lower earnings in non-core items, partially offset by a $2 million reduction of core losses.

The increase in SCE's core earnings for the three and six months ended June 30, 2024 from the same period in 2023 was primarily due to higher revenue authorized in Track 4, an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism and recognition of previously unrecognized return on rate base related to wildfire restoration efforts, partially offset by higher interest expense.

Edison International Parent and Other's core loss for the three months ended June 30, 2024 was in line with the same period in the prior year. The decrease in Edison International Parent and Other's core loss for the six months ended June 30, 2024 was primarily due to lower preferred dividends.

Consolidated non-core items for the six months ended June 30, 2024 and 2023 primarily included:

●

Charges of $478 million ($344 million after-tax) recorded in 2024 and $102 million ($73 million after-tax) recorded in 2023 for 2017/2018 Wildfire/Mudslide Events claims and related legal expenses, net of expected FERC recoveries. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

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●

Charges of $121 million ($88 million after-tax) recorded in 2024 for Other Wildfires claims and related legal expenses, net of expected insurance and regulatory recoveries. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

●

Charges of $73 million ($52 million after-tax) recorded in 2024 and $105 million ($76 million after-tax) recorded in 2023 from the amortization of SCE's contributions to the Wildfire Insurance Fund. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

●

A charge of $30 million ($21 million after-tax) recorded in 2023 for a probable disallowance related to the reasonableness review of recorded San Onofre Units 2 and 3 decommissioning costs in the 2021 NDCTP.

●

A charge of $17 million ($12 million after-tax) recorded in 2023 related to customer cancellations of certain ECS data services.

●

Insurance recovery of $10 million ($7 million after-tax) recorded in 2023 related to settlement of an employment litigation matter. SCE and Edison International settled the matter following an atypical jury award.

●

Expected wildfire claims of $1 million ($1 million after-tax) insured by EIS recorded in 2024 and customer revenues of $44 million ($35 million after-tax) related to an EIS insurance contract recorded in 2023. See "Notes to Consolidated Financial Statements— Note 12. Commitments and Contingencies" for further information.

See "Results of Operations" for discussion of SCE's and Edison International Parent and Other's results of operations.

2025 General Rate Case

As discussed in the 2023 Form 10-K, SCE filed its 2025 GRC application with the CPUC in May 2023, for the four-year period 2025 – 2028. In its application, SCE requested that the CPUC authorize a test year 2025 revenue requirement of approximately $10.3 billion. This represents a $1.9 billion, or 23% increase over the approximately $8.4 billion 2024 revenue requirement adopted in Track 4, prior to adjustments for updated operations and maintenance escalation rates, the CPUC's decisions to adopt SCE's 2023 to 2025 cost of capital, and the expanded customer-funded self-insurance for wildfire-related claims.

In February 2024, intervenors to the 2025 GRC proceeding, including the CPUC Public Advocates Office ("Cal Advocates") and The Utility Reform Network ("TURN"), submitted testimony in response to SCE's application. Cal Advocates and TURN recommended reductions to SCE's requests for load growth investments, infrastructure replacement, targeted undergrounding of conductors, and other areas of SCE's application.

Cal Advocates in their testimony proposed a test year 2025 revenue requirement of approximately $9.3 billion, representing an increase of approximately 11% over the 2024 revenue requirement adopted in Track 4, before the adjustments described above. While TURN did not calculate a test year 2025 revenue requirement in connection with its proposals in their testimony, SCE estimates that TURN's proposals would result in a test year 2025 revenue requirement of approximately 12% over the 2024 revenue requirement adopted in Track 4, before the adjustments described above.

In June 2024, following amendments and other revisions to rebuttal testimony, SCE updated its 2025 revenue requirement request to $10.5 billion, which includes a $220 million increase associated with the cost of capital adjustment authorized by CPUC in a separate proceeding. The amended and revised rebuttal testimony also proposed post-test year revenue requirement increases of approximately $670 million, $750 million and $730 million in 2026, 2027 and 2028, respectively.

SCE and certain parties have entered into stipulations to resolve certain contested areas in the 2025 GRC. In July 2024, the CPUC issued a decision approving SCE's request in the 2025 GRC to extend the wildfire customer-funded self-insurance through the 2025 GRC period.

Capital Program

Total capital expenditures (including accruals) were $2.5 billion and $2.6 billion for the six months ended June 30, 2024 and 2023, respectively. As discussed in the 2023 Form 10-K, SCE forecasts total capital expenditures ranging from $32.2 billion to $37.5 billion for 2024 – 2028, and weighted average annual rate base from $43.0 billion to $60.6 billion for 2024 – 2028. These capital program and rate base projections incorporate the amounts requested in the 2025 GRC application and do not reflect subsequent updates included in SCE's amended and revised rebuttal testimony. For further information regarding the

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capital expenditures, see "Liquidity and Capital Resources—SCE—Capital Investment Plan" below and "Management Overview—Capital Program" in the 2023 MD&A.

In May 2023, CAISO released its 2022 – 2023 Transmission Plan based on the CPUC's projections that it needs to add more than 40 gigawatts of new resources by 2032. As the incumbent transmission owner for a portion of these transmission projects, SCE expects to construct projects representing at least $2.0 billion of expenditures, most of which will be incurred beyond 2028. In May 2024, the CAISO released its 2023 – 2024 Transmission Plan which identified four additional transmission projects expected to be constructed by SCE with anticipated capital expenditures of approximately $40 million in 2027 and $48 million in 2029.

In addition to projects awarded to incumbent transmission owners, CAISO identified projects eligible for competitive solicitation. On May 20, 2024, SCE, in association with Lotus Infrastructure Global Operations, LLC ("Lotus"), was selected as the approved project sponsor for a 30-mile overhead transmission line project connecting San Diego and Orange Counties. The project is expected to be completed and in-service in 2032. Subject to contract finalization with the CAISO and Lotus, under the terms of the commercial arrangement with Lotus, Lotus will finance and construct the project. Upon the in-service date, SCE will purchase the entire project from Lotus for approximately $325 million, subject to certain adjustments, and lease 25% of the transmission capability to Lotus. Under the proposed lease agreement, Lotus will pay approximately $81 million in prepaid rent as well as 25% of the ongoing operations and maintenance costs. As a result, SCE expects to place approximately $244 million into its transmission rate base in 2032.

Southern California Wildfires and Mudslides

2017/2018 Wildfire/Mudslide Events

As discussed in the 2023 Form 10-K, multiple lawsuits and investigations related to the 2017/2018 Wildfire/Mudslide Events have been initiated against SCE and Edison International. SCE has previously entered into settlements with a number of local public entities, subrogation and individual plaintiffs in the TKM and Woolsey litigations and under the SED Agreement. As of July 18, 2024, in addition to the outstanding claims of approximately 840 of the approximately 15,000 initial individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs, including CAL OES, outstanding.

Through June 30, 2024, SCE has accrued estimated losses of $9.9 billion, recoveries from insurance of $2.0 billion, all of which have been collected, and expected recoveries through FERC electric rates of $440 million, $376 million of which has been collected, related to the 2017/2018 Wildfire/Mudslide Events claims. The after-tax net charges to earnings recorded through June 30, 2024 have been $5.4 billion.

Estimated losses for the 2017/2018 Wildfire/Mudslide Events litigation are based on a number of assumptions and are subject to change as additional information becomes available. Actual losses incurred may be higher or lower than estimated based on several factors, including the uncertainty in estimating damages that have been or may be alleged. For instance, SCE will receive additional information with respect to damages claimed as the claims mediation and trial processes progress. Other factors that can cause actual losses incurred to be higher or lower than estimated include the ability to reach settlements and the outcomes of settlements reached through the ongoing claims mediation processes, uncertainties related to the impact of outcomes of wildfire litigation against other parties and increasingly negative jury sentiments in general litigation, uncertainties related to the sufficiency of insurance held by plaintiffs, uncertainties related to the litigation processes, including whether plaintiffs will ultimately pursue claims, uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge and whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the uncertainty as to how these factors impact future settlements.

As of June 30, 2024, SCE had paid $9.2 billion under executed settlements and had $71 million to be paid under executed settlements, including $58 million to be paid under the SED Agreement, related to the 2017/2018 Wildfire/Mudslide Events. After giving effect to all payment obligations under settlements entered into through June 30, 2024, Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events was $598 million. Edison International and SCE may incur a material loss in excess of amounts accrued in connection with the remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events.

SCE will seek CPUC-jurisdictional rate recovery of prudently incurred losses and related costs realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance and FERC-jurisdictional recoveries, other than for any obligations under the SED Agreement. Based on Edison International's and SCE's current best estimate of expected

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losses for the 2017/2018 Wildfire/Mudslide Events, SCE currently expects to seek CPUC-jurisdictional rate recovery of approximately $6.9 billion of uninsured claims by filing applications with the CPUC. In August 2023, SCE filed the first of such cost recovery applications to seek rate recovery of $2.4 billion of prudently incurred losses related to the Thomas Fire, the Koenigstein Fire and the Montecito Mudslides, consisting of $2.0 billion of uninsured claims and $0.4 billion of associated costs, including legal fees and financing costs. SCE is also seeking capital recovery of approximately $65 million in restoration costs in the proceeding. SCE targets the third quarter of 2024 for the filing of its application to seek CPUC-jurisdictional rate recovery of approximately $5 billion of uninsured claims related to the Woolsey Fire. In its application, SCE will also seek associated costs, including legal fees, financing costs and restoration costs. SCE's plans with respect to this filing may be delayed or modified. Because the CPUC's decision in a cost recovery proceeding involving SDG&E arising from several 2007 wildfires in SDG&E's service area is the only directly comparable precedent available, SCE believes that there is substantial uncertainty regarding how the CPUC will interpret and apply its prudency standard to an investor-owned utility in wildfire claims related cost-recovery proceedings for fires ignited prior to the adoption of AB 1054 on July 12, 2019. Accordingly, while the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs related to the 2017/2018 Wildfire/Mudslide Events are probable of recovery through electric rates.

For further information on Southern California Wildfires and Mudslides, see "Risk Factors," "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054," "Business—Southern California Wildfires" in the 2023 Form 10-K and "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in this report.

RESULTS OF OPERATIONS

SCE

SCE's results of operations are derived mainly through two sources:

●

Earning activities – representing revenue authorized by the CPUC and the FERC, which is intended to provide SCE with a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

●

Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards, as well as non-bypassable rates collected for SCE Recovery Funding LLC. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), certain operation and maintenance expenses (including vegetation management and wildfire insurance), and repayment of bonds and financing costs of SCE Recovery Funding LLC. SCE earns no return on these activities.

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The following table is a summary of SCE's results of operations for the periods indicated.

Three months ended June 30, 2024 versus June 30, 2023


	Three months ended June 30, 2024						Three months ended June 30, 2023
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Operating revenue	$	2,607	$	1,717	$	4,324	$	2,167	$	1,782	$	3,949
Purchased power and fuel		—		1,234		1,234		—		1,147		1,147
Operation and maintenance		784		474		1,258		606		629		1,235
Wildfire Insurance Fund expense		37		—		37		53		—		53
Depreciation and amortization		713		12		725		638		10		648
Property and other taxes		149		5		154		135		13		148
Total operating expenses		1,683		1,725		3,408		1,432		1,799		3,231
Operating income (loss)		924		(8)		916		735		(17)		718
Interest expense		(394)		(14)		(408)		(320)		(8)		(328)
Other income, net		125		22		147		102		25		127
Income before income taxes		655		—		655		517		—		517
Income tax expense		83		—		83		68		—		68
Net income		572		—		572		449		—		449
Less: Preference stock dividend requirements		49		—		49		29		—		29
Net income available to common stock	$	523	$	—	$	523	$	420	$	—	$	420

Earning Activities

Earning activities were primarily affected by the following:

●	Higher operating revenue of $440 million is primarily due to:

●

An increase in CPUC-related revenue of $171 million due to the higher revenue authorized in Track 4 and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism. See "Liquidity and Capital Resources—SCE" for more information.

●

An increase in CPUC-related revenue of $267 million due to higher wildfire mitigation and emergency restoration expenses authorized for recovery in 2024. See "Liquidity and Capital Resources—SCE—Regulatory Proceedings" for more information.

●	Higher operation and maintenance expenses of $178 million is primarily due to:

●

Increased expenses of $200 million related to higher emergency wildfire restoration expenses authorized for recovery in 2024 (offset in revenue above).

●

In 2023, SCE recorded a charge of $17 million related to customer cancellations of certain ECS data services.

●

Lower wildfire insurance fund amortization expense of $16 million due to the change in the estimated life of the Wildfire Insurance Fund in the first quarter of 2024, which increased the amortization period of SCE's contributions in 2024. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

●	Increase in depreciation and amortization expense of $75 million primarily due to higher plant balances and recognition of $29 million of previously deferred emergency wildfire restoration related depreciation expense in 2024 (offset in revenue above).

●	Increase in property and other taxes of $14 million primarily due to higher assessed property value and the recognition of $6 million of previously deferred emergency wildfire restoration related property tax in 2024 (offset in revenue above).

●	Increase in interest expense of $74 million primarily due to higher interest rates on long-term debt and balancing account overcollections, as well as increased long-term borrowings.

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●	Increase in other income of $23 million primarily due to higher equity allowance for funds used during construction and a higher interest rate applied to balancing account undercollections.

●	See "Income Taxes" below for the explanation of the $15 million increase in income tax expense.

●	Higher preference stock dividend requirements of $20 million primarily due to increased preference stock outstanding.

Cost-Recovery Activities

Operating revenue and the corresponding operating expenses in cost-recovery activities were primarily affected by the following:

●	Higher purchased power and fuel costs of $87 million, primarily due to an increase in purchased power volume and increased losses from hedging activities, partially offset by lower purchased power prices.

●	Lower operation and maintenance costs of $155 million primarily due to:

●

In May 2023, SCE recognized $205 million of previously deferred Wildfire Expense Memorandum Account ("WEMA") costs related to incremental wildfire insurance premium that provided coverage for the last six months of 2020.

●

Lower insurance costs of $97 million due to SCE's expanded use of customer-funded self-insurance. See "Management Overview—Customer-Funded Self-Insurance" in the 2023 Form 10-K.

●

Higher expenses of $38 million related to public purpose programs.

●

Higher expenses of $34 million due to increased expected uncollectible expenses in 2024.

●

Higher expenses of $33 million related to vegetation management.

●

Higher expenses of $31 million related to transmission access charges.

Six months ended June 30, 2024 versus June 30, 2023


	Six months ended June 30, 2024						Six months ended June 30, 2023
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Operating revenue	$	5,056	$	3,332	$	8,388	$	4,400	$	3,499	$	7,899
Purchased power and fuel		—		2,242		2,242		—		2,465		2,465
Operation and maintenance		1,474		1,075		2,549		1,276		1,040		2,316
Wildfire-related claims, net of insurance recoveries		614		—		614		96		—		96
Wildfire Insurance Fund expense		73		—		73		105		—		105
Depreciation and amortization		1,403		23		1,426		1,287		17		1,304
Property and other taxes		298		9		307		272		15		287
Total operating expenses		3,862		3,349		7,211		3,036		3,537		6,573
Operating income (loss)		1,194		(17)		1,177		1,364		(38)		1,326
Interest expense		(754)		(28)		(782)		(615)		(13)		(628)
Other income, net		237		45		282		196		51		247
Income before income taxes		677		—		677		945		—		945
Income tax (benefit) expense		(1)		—		(1)		97		—		97
Net income		678		—		678		848		—		848
Less: Preference stock dividend requirements		90		—		90		58		—		58
Net income available to common stock	$	588	$	—	$	588	$	790	$	—	$	790

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Earning Activities

Earning activities were primarily affected by the following:

●	Higher operating revenue of $656 million is primarily due to:

●

An increase in CPUC-related revenue of $344 million due to the higher revenue authorized in Track 4 and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism. See "Liquidity and Capital Resources—SCE" for more information.

●

An increase in CPUC-related revenue of $331 million due to higher wildfire mitigation and emergency restoration expenses authorized for recovery in 2024 as compared to 2023. See "Liquidity and Capital Resources—SCE—Regulatory Proceedings" for more information.

●

An increase in FERC-related revenue of $28 million due to higher wildfire-related claims and expenses to be recovered in FERC revenues.

●

A decrease in CPUC-related revenue of $27 million related to lower CSRP revenue requirements recorded in 2024 as compared to 2023.

●	Higher operation and maintenance expense of $198 million is primarily due to:

●

Increased expenses of $245 million related to wildfire mitigation and emergency restoration costs authorized for recovery in 2024 as compared to 2023 (offset in revenue above).

●

Lower expenses of $30 million related to CSRP revenue requirement approved in 2023 (offset in revenue above).

●

In 2023, SCE recognized a probable disallowance of $30 million related to the 2021 NDCTP.

●

In 2023, SCE recorded a charge of $17 million related to customer cancellations of certain ECS data services.

●

Charges for wildfire-related claims, net of insurance recoveries, were $614 million and $96 million in 2024 and 2023, respectively, related to the 2017/2018 Wildfire/Mudslide Events and Other Wildfires. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

●

Lower wildfire insurance fund amortization expense of $32 million due to the change in the estimated life of the Wildfire Insurance Fund, which increased the amortization period of SCE's contributions in 2024. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

●	Increase in depreciation and amortization expense of $116 million primarily due to higher plant balances and the recognition of $45 million of previously deferred wildfire mitigation and emergency restoration related depreciation expense in 2024 (offset in revenue above).

●	Increase in property and other taxes of $26 million primarily due to higher assessed property value and the recognition of $8 million of previously deferred wildfire mitigation and emergency restoration related property tax in 2024 (offset in revenue above).

●	Increase in interest expense of $139 million primarily due to higher interest rates on long-term debt and balancing account overcollections, as well as increased long-term borrowings.

●	Increase in other income of $41 million primarily due to higher equity allowance for funds used during construction and a higher interest rate applied to balancing account undercollections.

●	See "Income Taxes" below for the explanation of the $98 million decrease in income tax expense.

●	Higher preference stock dividend requirements of $32 million primarily due to increased preference stock outstanding.

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Cost-Recovery Activities

Operating revenue and the corresponding operating expenses in cost-recovery activities were primarily affected by the following:

●	Lower purchased power and fuel costs of $223 million, primarily due to lower purchased power and gas prices, partially offset by increase in purchased power volume and higher losses from hedging activities.

●	Higher operation and maintenance costs of $35 million primarily due to:

●

Higher expenses of $229 million due to the recognition of previously deferred wildfire mitigation expenses in 2024.

●

Higher expenses of $72 million primarily due to higher expected uncollectible expenses in 2024.

●

Higher expenses of $57 million related to transmission access charges.

●

Higher expenses of $40 million related to public purpose programs.

●

Higher expenses of $27 million related to vegetation management.

●

In May 2023, SCE recognized $205 million of previously deferred WEMA costs related to incremental wildfire insurance premium that provide coverage for the last six months of 2020.

●

Lower insurance costs of $194 million due to SCE's expanded use of customer-funded self-insurance. See "Management Overview—Customer-Funded Self-Insurance" in the 2023 Form 10-K.

●	Higher interest expense of $15 million primarily due to recovery of expense associated with AB 1054 Excluded Capital Expenditures financed through securitization.

Supplemental Operating Revenue Information

As a result of the CPUC-authorized decoupling mechanism, SCE revenues are not affected by changes in volume of retail electricity sales.

Income Taxes

Compared to the same period in 2023, SCE's income tax expense increased by $15 million for the quarter ending June 30, 2024 and decreased by $98 million for six months ended June 30, 2024. The higher tax expense for the quarter is primarily due to higher pre-tax income, partly offset by higher flow-through tax benefits. The lower income tax expense for the six months ended June 30, 2024 is mainly because of lower pre-tax income, along with higher flow-through tax benefits. The effective tax rates were 12.7% and 13.2% for the three months ended June 30, 2024 and 2023, respectively. The effective tax rates were (0.1)% and 10.3% for the six months ended June 30, 2024, and 2023, respectively. SCE's effective tax rate is below the federal statutory rate of 21% for 2024 and 2023 primarily due to the CPUC's flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences, which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred tax expense/benefit.

See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rates.

Edison International Parent and Other

Results of operations for Edison International Parent and Other include amounts from other subsidiaries that are not reportable segments, as well as intercompany eliminations.

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Loss from Operations

The following table summarizes the results of Edison International Parent and Other:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Edison International Parent and Other net loss	$	(63)	$	(40)	$	(117)	$	(74)
Less: Preferred stock dividend requirements		21		26		43		52
Edison International Parent and Other net loss attributable to common shareholders	$	(84)	$	(66)	$	(160)	$	(126)

The net loss attributable to common shareholders from operations of Edison International Parent and Other increased $18 million for the three months ended June 30, 2024, and increased $34 million for the six months ended June 30, 2024 compared to the same periods in 2023, primarily due to lack of earnings from an EIS insurance contract.

LIQUIDITY AND CAPITAL RESOURCES

SCE

SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its cash flow and access to the bank and capital markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preference shareholders, and the outcome of tax, regulatory and legal matters.

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 also expects to issue additional debt for general corporate purposes, and to finance and refinance debt issued for payment of claims and expenses related to the 2017/2018 Wildfire/Mudslide Events.

During the first six months of 2024, SCE issued a total of $3.8 billion of first and refunding mortgage bonds. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements." In May 2024, SCE issued $350 million of preference stock. The proceeds were used in June 2024 to redeem all outstanding shares of SCE's Series E Preference Stock. For further details, see "Notes to Consolidated Financial Statements—Note 13. Equity."

SCE's credit ratings may be affected if, among other things, regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner, or the Wildfire Insurance Fund is depleted by claims from catastrophic wildfires. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings or other borrowings. In addition, some of SCE's power procurement contracts and environmental remediation obligations would require SCE to pay related liabilities or post additional collateral if SCE's credit rating were to fall below investment grade. For further details, see "—Margin and Collateral Deposits."

As discussed in the 2023 Form 10-K, the cost of capital adjustment mechanism set by the CPUC provides for an adjustment to SCE's authorized cost of capital that, when triggered, will impact SCE's results of operations and cash flows. In 2023, the cost of capital adjustment mechanism was triggered and resulted in an increase to SCE's 2024 GRC-related revenue requirement by $201 million. SCE currently does not expect the adjustment mechanism to be triggered for 2025. For further information about the adjustment mechanism, see "Business—SCE— Overview of Ratemaking Process" in the 2023 Form 10-K.

For restrictions on SCE's ability to pay dividends, see "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—SCE Dividends" in the 2023 Form 10-K.

Available Liquidity

At June 30, 2024, SCE had cash on hand of $68 million and approximately $1.8 billion available to borrow on its $3.4 billion revolving credit facility. In May 2024, SCE extended its credit facility through May 2028. The aggregate maximum principal amount may be increased up to $4.0 billion, provided that additional lender commitments are obtained. SCE also has standby letters of credit with total capacity of $625 million, and the unused amount was $521 million as of June 30, 2024. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

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SCE may finance balancing account undercollections and working capital requirements to support operations and capital expenditures with commercial paper, its credit facilities or other borrowings, subject to availability in the bank and capital markets. As necessary, SCE will utilize its available liquidity, capital market financings, other borrowings or parent company contributions to SCE equity in order to meet its obligations as they become due, including costs related to the 2017/2018 Wildfire/Mudslide Events. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

Debt Covenant

SCE's credit facilities and term loan require a debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.65 to 1. At June 30, 2024, SCE's debt to total capitalization ratio was 0.58 to 1.

At June 30, 2024, SCE was in compliance with all financial covenants that affect access to capital.

Regulatory Proceedings

Wildfire-related Regulatory Proceedings

In response to the increase in wildfire activity, and faster progression of and increased damage from wildfires across SCE's service area and throughout California, SCE has incurred wildfire mitigation, wildfire insurance and wildfire and drought restoration related spending at levels significantly exceeding amounts authorized in SCE's GRCs.

2021 GRC Wildfire Mitigation Memorandum Account Balances

In June 2022, SCE filed an application with the CPUC requesting reasonableness review of the incremental costs incurred in 2021 related to non-WCCP wildfire mitigation and vegetation management activities, requesting a total revenue requirement of approximately $327 million plus ongoing capital-related revenue requirement. In March 2024, the CPUC issued a decision fully authorizing SCE's requested revenue requirement. The revenue requirement is being recovered in rates over 12 months starting June 1, 2024.

In October 2023, SCE requested authority to recover a revenue requirement of $384 million, including interest, associated with 2022 operations and maintenance and capital expenditures above levels authorized in wildfire mitigation accounts and the vegetation management balancing account. In July 2024, the CPUC approved SCE's request for interim rate recovery of $210 million of this revenue requirement, subject to refund. The revenue requirement for the interim rate recovery will be recovered in rates over 17 months starting October 1, 2024. A final decision for the total authorized revenue requirement is expected in the second quarter of 2025.

2020 Emergency Wildfire Restoration

As discussed in the 2023 MD&A, SCE filed a catastrophic event memorandum account application in 2022 primarily related to restoration efforts related to multiple 2020 wildfires. In May 2024, the CPUC issued a decision approving the recovery of SCE's capital request of $312 million and operation and maintenance expenses of $200 million, resulting in a revenue requirement of $191 million plus ongoing capital-related revenue requirement. The revenue requirement will be recovered in rates over a 12-month period starting October 1, 2024.

Multi-year Wildfire Mitigation and Catastrophic Events Filing ("WMCE Filing")

In April 2024, SCE filed its WMCE Filing, seeking to recover incremental operating and maintenance expenses of $320 million and incremental capital expenditures of $702 million, primarily associated with 2019 – 2023 WCCP capital expenditures recorded in the wildfire risk mitigation balancing account, 2023 operations and maintenance and capital expenditures incremental to amounts authorized in wildfire mitigation accounts and the vegetation management balancing account, storm-related costs associated with certain 2020 – 2022 events recorded in the catastrophic event memorandum account, and certain wildfire liability insurance premium expenses recorded to the wildfire expense memorandum account, which were denied without prejudice in a previous decision. In July 2024, the CPUC adopted a schedule for the WMCE Filing with a proposed decision expected in the third quarter of 2025.

ERRA Trigger Application

SCE's cost recovery mechanism for its fuel and purchased power-related costs is primarily facilitated by three balancing accounts, one of which is the ERRA. SCE sets rates based on an annual forecast of the costs that it expects to incur during the

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subsequent year. The overcollection in the ERRA at April 30, 2024 resulted in SCE triggering an established mechanism, which required SCE to file an expedited application on May 30, 2024, requesting CPUC approval to reduce bundled service generation rates by up to $742 million over a 12-month period starting October 1, 2024, to address the overcollection trigger (see "Business—SCE—Overview of Ratemaking Process" in the 2023 Form 10-K for further information about the trigger mechanism).

2025 FERC Formula Rate Annual Update

In June 2024, SCE provided its preliminary 2025 annual transmission revenue requirement update to interested parties. The update proposes a 2025 transmission revenue requirement of $1.3 billion, which is a $221 million, or 20% increase from the 2024 annual rates. The increase is primarily due to 2024 rates including a return of a prior year overcollection. SCE expects to file its 2025 annual update with the FERC by December 1, 2024, with the proposed rates effective January 1, 2025.

Capital Investment Plan

Major Transmission and Utility Owned Storage Projects

Riverside Transmission Reliability Project

As discussed in the 2023 MD&A, the City of Norco filed a petition for modification ("PFM") to modify the CPUC decision approving the project and reopen the record to reconsider full undergrounding during 2023. In March 2024, the CPUC denied the PFM. In May 2024, the Riverside City Council voted to move forward with the original scope of the project and SCE is restarting its work on the project.

Alberhill System Project

As discussed in the 2023 MD&A, a final CPUC decision remains pending. In June 2024, the CPUC issued an addendum to its 2017 Final Environmental Impact Report, concluding its California Environmental Quality Act review. The project is now seeking final CPUC approval to begin construction. SCE is expecting the final CPUC decision in mid-2025.

Eldorado-Lugo-Mohave Upgrade Project

As discussed in the 2023 MD&A, additional work is required to mitigate the impact of the project on nearby natural gas transmission lines and a further PFM is expected to be filed to include reasonable and prudent costs of the mitigation work. SCE expects the project to be in service in 2025, subject to the completion of environmental agency review of the mitigation work. See "Liquidity and Capital Resources—SCE—Capital Investment Plan" in the 2023 Form 10-K for further information.

Utility Owned Storage

As discussed in the 2023 MD&A, in October 2021, SCE contracted with Ameresco, Inc. ("Ameresco") for the construction of utility owned energy storage projects at three sites in SCE's service territory that have an aggregate capacity of 537.5 MW, consisting of a 225 MW project, a 200 MW project and a 112.5 MW project, with an in-service date of August 1, 2022. Ameresco has advised SCE that it currently expects all three projects to be in-service before the end of the third quarter of 2024. SCE believes that there is risk of delay beyond Ameresco's projected in-service dates.

Decommissioning of San Onofre

As discussed in the 2023 Form 10-K, in February 2022, SCE filed the 2021 NDCTP with the CPUC to request reasonableness review of approximately $570 million (SCE share in 2022 dollars) of recorded San Onofre Units 2 and 3 decommissioning costs incurred during the period 2018 to 2020. In May 2023, SCE entered into a settlement with the relevant intervenors under which, subject to CPUC approval, SCE agreed to a disallowance in the 2021 NDCTP of approximately $30 million. SCE has accrued for this disallowance. In May 2024, the CPUC issued a proposed decision that, if adopted, will approve the settlement.

Margin and Collateral Deposits

Certain derivative instruments, power and energy procurement contracts and other contractual arrangements contain collateral requirements. In addition, certain environmental remediation obligations require financial assurance that may be in the form of collateral postings. Future collateral requirements may differ from the requirements at June 30, 2024 due to the

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addition of incremental power and energy procurement contracts with collateral requirements, if any, the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations, and the impact of SCE's credit ratings falling below investment grade.

The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would have been required as of June 30, 2024, if SCE's credit rating had been downgraded to below investment grade as of that date. The table also provides the potential collateral that could be required due to adverse changes in wholesale power and natural gas prices over the remaining lives of existing power and fuel derivative contracts.

In addition to amounts shown in the table, power and fuel contract counterparties may also institute new collateral requirements, applicable to future transactions to allow SCE to continue trading in power and fuel contracts at the time of a downgrade or upon significant increases in market prices. Furthermore, SCE may also be required to post up to $50 million in collateral in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which a downgrade below investment grade occurs.


(in millions)
Collateral posted as of June 30, 2024¹	$	288
Incremental collateral requirements for purchased power and fuel contracts resulting from a potential downgrade of SCE's credit rating to below investment grade²		90
Incremental collateral requirements for SCE's financial hedging activities resulting from adverse market price movement³		113
Posted and potential collateral requirements	$	491

¹	Net collateral provided to counterparties and other brokers consisted of $119 million in letters of credit and surety bonds and $169 million of cash collateral.

²	Represents potential collateral requirements for accounts payable and mark-to-market valuation at June 30, 2024. The requirements vary throughout the period and are generally lower at the end of the month.

³	Incremental collateral requirements were based on potential changes in SCE's forward positions as of June 30, 2024 due to adverse market price movements over the remaining lives of the existing power and fuel derivative contracts using a 95% confidence level.

Edison International Parent and Other

In the next 12 months, Edison International expects to fund its net cash requirements through cash on hand, dividends from SCE, and capital market and bank financings. Edison International may finance its ongoing cash requirements, including dividends, working capital requirements, payment of obligations, and capital investments, including capital contributions to subsidiaries, with short-term or other financings, subject to availability in the bank and capital markets.

In the second quarter of 2024, Edison International Parent issued $500 million of 5.45% senior notes due in 2029. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

At June 30, 2024, Edison International Parent and Other had cash on hand of $397 million and $1.5 billion available to borrow on its $1.5 billion revolving credit facility. In May 2024, Edison International extended its credit facility through May 2028. The aggregate maximum principal amount may be increased up to $2.0 billion, provided that additional lender commitments are obtained. For further information, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

Edison International Parent and Other's liquidity and its ability to pay operating expenses and pay dividends to preferred and common shareholders are dependent on access to the bank and capital markets, dividends from SCE, realization of tax benefits and its ability to meet California law requirements for 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" in the 2023 Form 10-K. Edison International intends to maintain its target payout ratio of 45% – 55% of SCE's core earnings, subject to the factors identified above.

Edison International's ability to declare and pay common dividends may be restricted under the terms of its Series A and Series B Preferred Stock. For further information, see "Notes to Consolidated Financial Statements—Note 14. Equity" in the 2023 Form 10-K.

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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 June 30, 2024, Edison International's consolidated debt to total capitalization ratio was 0.64 to 1.

At June 30, 2024, Edison International Parent was in compliance with all financial covenants that affect access to capital.

Edison International Parent's credit ratings may be affected if, among other things, regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner, or the Wildfire Insurance Fund is depleted by claims from catastrophic wildfires. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, note financings or other borrowings.

Edison International Income Taxes

Inflation Reduction Act of 2022

On August 16, 2022, the IRA was signed into law. The law imposes a 15% corporate alternative minimum tax ("CAMT") on adjusted financial statement income ("AFSI") of corporations with average AFSI exceeding $1.0 billion over a specified 3-year period. The CAMT was effective beginning January 1, 2023. Based on the current interpretation of the law and historical financial data, Edison International estimates that it will exceed the $1.0 billion threshold and be subject to CAMT on its consolidated federal tax returns beginning in 2026. SCE expects to be subject to CAMT on its stand-alone federal return beginning in 2025.

The law also includes significant extensions, expansions, and enhancements of numerous energy-related investment tax credits, as well as creating new credits applicable to electricity production which may apply to SCE's capital expenditures. Under the IRA, SCE expects to generate investment tax credits related to its utility owned storage projects, which will accrue to the benefit of its customers.

Historical Cash Flows

SCE


	Six months ended June 30,
(in millions)	2024		2023
Net cash provided by operating activities	$	1,530	$	862
Net cash provided by financing activities		1,135		1,090
Net cash used in investing activities		(2,667)		(2,650)
Net decrease in cash, cash equivalents and restricted cash	$	(2)	$	(698)

Net Cash Provided by Operating Activities

The following table summarizes major categories of net cash for operating activities as provided in more detail in SCE's consolidated statements of cash flows for the six months ended June 30, 2024 and 2023.


	Six months ended June 30,				Change in cash flows
(in millions)	2024		2023		2024/2023
Net income	$	678	$	848
Non-cash items¹		1,434		1,503
Subtotal		2,112		2,351	$	(239)
Changes in cash flow resulting from working capital²		(446)		(703)		257
Regulatory assets and liabilities		(106)		(366)		260
Wildfire-related claims³		(148)		(428)		280
Other noncurrent assets and liabilities⁴		118		8		110
Net cash provided by operating activities	$	1,530	$	862	$	668

1	Non-cash items include depreciation and amortization, equity allowance for funds used during construction, deferred income taxes, Wildfire Insurance Fund amortization expenses and other.

2	Changes in working capital items include receivables, accrued unbilled revenue, inventory, amortization of prepaid expenses, accounts payable, derivative assets and liabilities and other current assets and liabilities.

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The amount in 2024 represents payments of $536 million for 2017/2018 Wildfire/Mudslide Events and $282 million for Other Wildfires, partially offset by an increase in wildfire estimated losses of $670 million. The amount in 2023 is primarily related to payments of $507 million for 2017/2018 Wildfire/Mudslide Events and $16 million for Post-2018 Wildfires, partially offset by an increase in wildfire estimated losses of $96 million.

4	Includes nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information. The amount in 2024 also includes cash received for certain state incentive programs to pass on to customers.

Net cash provided by operating activities was impacted by the following:

Net income and non-cash items decreased in 2024 by $239 million primarily due to higher wildfire claims and expenses, net of recoveries, and higher interest expense, partially offset by higher revenue authorized in Track 4, an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism and recognition of previously unrecognized return on rate base related to wildfire restoration efforts.

The net outflows in cash resulting from working capital were $446 million and $703 million during the six months ended June 30, 2024 and 2023, respectively. Net cash outflows for 2024 was primarily due to an increase in unbilled revenue of $266 million driven by higher rates and higher sales volume, and a decrease in payables of $112 million mainly due to the payments of various operating expenses. Net cash outflow for 2023 was primarily driven by the payment of power purchase contracts executed under high gas prices in late 2022.

Net cash used in regulatory assets and liabilities, including changes in net undercollections recorded in balancing accounts, was $106 million and $366 million during the six months ended June 30, 2024 and 2023, respectively. SCE has a number of balancing and memorandum accounts, which impact cash flows based on differences between timing of collection through rates and incurring expenditures. Cash outflows in 2024 and 2023 are both due to current year undercollections driven by lower than forecast sales volume due to mild weather, partially offset by recovery of prior year undercollections. The lower outflow in 2024 compared to 2023 was due to higher prior year undercollections implemented into rates in 2024.

Net Cash Provided by Financing Activities

The following table summarizes cash provided by financing activities for the six months ended June 30, 2024 and 2023, respectively. Issuances of debt are discussed in "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."


		Six months ended June 30,
(in millions)	2024		2023
Issuances of long-term debt, net of discount and issuance costs	$	3,719	$	3,044
Long-term debt repaid		(1,725)		(1,066)
Short-term debt borrowed		—		320
Short-term debt repaid		(381)		(730)
Commercial paper borrowing, net		342		262
Preference stock issued, net of issuance cost		345		—
Preference stock redeemed		(350)		—
Payment of common stock dividends to Edison International Parent		(720)		(700)
Payment of preference stock dividends		(88)		(58)
Other		(7)		18
Net cash provided by financing activities	$	1,135	$	1,090

Net Cash Used in Investing Activities

Cash flows used in investing activities are primarily due to total capital expenditures of $2.7 billion for both six months ended June 30, 2024 and 2023. In addition, SCE had a net redemption of nuclear decommissioning trust investments of $22 million and $60 million during the six months ended June 30, 2024 and 2023, respectively. See "Nuclear Decommissioning Activities" below for further discussion.

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Nuclear Decommissioning Activities

SCE's consolidated statements of cash flows include nuclear decommissioning activities, which are reflected in the following line items:


	Six months ended June 30,
(in millions)	2024		2023
Net cash used in operating activities:
Net earnings from nuclear decommissioning trust investments	$	25	$	49
SCE's decommissioning costs		(65)		(116)
Net cash provided by investing activities:
Proceeds from sale of investments		2,477		1,967
Purchases of investments		(2,455)		(1,907)
Net cash outflow	$	(18)	$	(7)

Net cash used in operating activities relates to interest and dividends less administrative expenses, taxes and SCE's decommissioning costs. Investing activities represent the purchase and sale of investments within the nuclear decommissioning trusts, including the reinvestment of earnings from nuclear decommissioning trust investments. The net cash impact reflects timing of decommissioning payments ($65 million and $116 million in 2024 and 2023, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($66 million and $109 million in 2024 and 2023, respectively). The net cash outflow in 2024 also includes a contribution of $19 million from SCE to the non-qualified decommissioning trust related to tax benefits received.

Edison International Parent and Other

The table below sets forth condensed historical cash flow from operations for Edison International Parent and Other, including intercompany eliminations.


	Six months ended June 30,
(in millions)	2024		2023
Net cash used in operating activities	$	(158)	$	(150)
Net cash provided by financing activities		430		129
Net cash used in investing activities		(3)		—
Net increase (decrease) in cash, cash equivalents and restricted cash	$	269	$	(21)

Net Cash Used in Operating Activities

Net cash used in operating activities was impacted by the following:

●	$158 million and $150 million cash outflows from operating activities in 2024 and 2023, respectively, primarily due to payments relating to interest and operating costs.

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Net Cash Provided by Financing Activities

Net cash provided by financing activities was as follows:


	Six months ended June 30,
(in millions)	2024		2023
Dividends paid to Edison International common shareholders	$	(595)	$	(555)
Dividends paid to Edison International preferred shareholders		(45)		(52)
Dividends received from SCE		720		700
Long-term debt issuance, net of discount and issuance costs		497		1,089
Payment for stock-based compensation		(17)		(5)
Receipt from stock option exercises		131		50
Long-term debt repayments		—		(400)
Issuance of short-term debt		—		355
Repayments of short-term debt		(15)		(1,000)
Preferred stock repurchased		(28)		—
Commercial paper financing, net		(228)		(64)
Other		10		11
Net cash provided by financing activities	$	430	$	129

Contingencies

Edison International's and SCE's material contingencies are discussed in "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies."

MARKET RISK EXPOSURES

Edison International's and SCE's primary market risks are described in the 2023 Form 10-K, and there have been no material changes during the six months ended June 30, 2024. For further discussion of market risk exposures, including commodity price risk and credit risk, see "Notes to Consolidated Financial Statements—Note 4. Fair Value Measurements" and "Note 6. Derivative Instruments."

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

For a discussion of Edison International's and SCE's critical accounting policies, see "Critical Accounting Estimates and Policies" in the 2023 MD&A.

NEW ACCOUNTING GUIDANCE

There have been no material changes in recently issued or adopted accounting standards from those disclosed in "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—New Accounting Guidance" in the 2023 Form 10-K.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responding to this section is included in the MD&A under the heading "Market Risk Exposures" and is incorporated herein by reference.

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FINANCIAL STATEMENTS

Consolidated Statements of Income

Edison International


	Three months ended				Six months ended
	June 30,				June 30,
(in millions, except per-share amounts, unaudited)	2024		2023		2024		2023
Operating revenue	$	4,336	$	3,964	$	8,414	$	7,930
Purchased power and fuel		1,234		1,147		2,242		2,465
Operation and maintenance		1,285		1,241		2,602		2,325
Wildfire-related claims, net of insurance recoveries		—		—		615		96
Wildfire Insurance Fund expense		37		53		73		105
Depreciation and amortization		726		650		1,428		1,306
Property and other taxes		154		149		309		289
Total operating expenses		3,436		3,240		7,269		6,586
Operating income		900		724		1,145		1,344
Interest expense		(480)		(392)		(924)		(753)
Other income, net		148		128		286		247
Income before income taxes		568		460		507		838
Income tax expense (benefit)		59		51		(54)		64
Net income		509		409		561		774
Less: Net income attributable to noncontrolling interests - preference stock of SCE		49		29		90		58
Preferred stock dividend requirements of Edison International		21		26		43		52
Net income available to Edison International common shareholders	$	439	$	354	$	428	$	664
Basic earnings per share:
Weighted average shares of common stock outstanding		385		383		385		383
Basic earnings per common share available to Edison International common shareholders	$	1.14	$	0.92	$	1.11	$	1.73
Diluted earnings per share:
Weighted average shares of common stock outstanding, including effect of dilutive securities		388		385		387		385
Diluted earnings per common share available to Edison International common shareholders	$	1.13	$	0.92	$	1.11	$	1.73

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Statements of Comprehensive Income	Edison International


		Three months ended			Six months ended
	June 30,				June 30,
(in millions, unaudited)	2024		2023		2024		2023
Net income	$	509	$	409	$	561	$	774
Other comprehensive income, net of tax:
Pension and postretirement benefits other than pensions		1		1		1		1
Foreign currency translation adjustments		—		—		—		2
Other comprehensive income, net of tax		1		1		1		3
Comprehensive income		510		410		562		777
Less: Comprehensive income attributable to noncontrolling interests		49		29		90		58
Comprehensive income attributable to Edison International	$	461	$	381	$	472	$	719

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Balance Sheets	Edison International


	June 30,		December 31,
(in millions, unaudited)	2024		2023
ASSETS
Cash and cash equivalents	$	465	$	345
Receivables, less allowances of $335 and $360 for uncollectible accounts at respective dates		2,020		2,016
Accrued unbilled revenue		1,007		742
Inventory		534		527
Prepaid expenses		103		112
Regulatory assets		3,910		2,524
Wildfire Insurance Fund contributions		138		204
Other current assets		335		341
Total current assets		8,512		6,811
Nuclear decommissioning trusts		4,292		4,173
Other investments		71		54
Total investments		4,363		4,227
Utility property, plant and equipment, less accumulated depreciation and amortization of $13,587 and $12,910 at respective dates		57,144		55,877
Nonutility property, plant and equipment, less accumulated depreciation of $119 and $114 at respective dates		205		207
Total property, plant and equipment		57,349		56,084
Regulatory assets (include $1,535 and $1,558 related to VIEs at respective dates)		8,658		8,897
Wildfire Insurance Fund contributions		1,948		1,951
Operating lease right-of-use assets		1,201		1,221
Long-term insurance receivables		496		501
Other long-term assets		2,291		2,066
Total other assets		14,594		14,636
Total assets	$	84,818	$	81,758

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Balance Sheets	Edison International


	June 30,		December 31,
(in millions, except share amounts, unaudited)	2024		2023
LIABILITIES AND EQUITY
Short-term debt	$	1,505	$	1,077
Current portion of long-term debt		1,698		2,697
Accounts payable		1,892		1,983
Wildfire-related claims		31		30
Accrued interest		443		390
Regulatory liabilities		1,193		763
Current portion of operating lease liabilities		125		120
Other current liabilities		1,387		1,538
Total current liabilities		8,274		8,598
Long-term debt (include $1,492 and $1,515 related to VIEs at respective dates)		33,099		30,316
Deferred income taxes and credits		6,863		6,672
Pensions and benefits		406		415
Asset retirement obligations		2,668		2,666
Regulatory liabilities		9,900		9,420
Operating lease liabilities		1,076		1,101
Wildfire-related claims		1,219		1,368
Other deferred credits and other long-term liabilities		3,445		3,258
Total deferred credits and other liabilities		25,577		24,900
Total liabilities		66,950		63,814
Commitments and contingencies (Note 12)
Preferred stock (50,000,000 shares authorized; 1,159,317 and 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; 386,099,652 and 383,924,912 shares issued and outstanding at respective dates)		6,461		6,338
Accumulated other comprehensive loss		(8)		(9)
Retained earnings		7,326		7,499
Total Edison International's shareholders' equity		15,424		15,501
Noncontrolling interests – preference stock of SCE		2,444		2,443
Total equity		17,868		17,944
Total liabilities and equity	$	84,818	$	81,758

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Statements of Cash Flows	Edison International


	Six months ended June 30,
(in millions, unaudited)	2024		2023
Cash flows from operating activities:
Net income	$	561	$	774
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		1,454		1,371
Equity allowance for funds used during construction		(96)		(75)
Deferred income taxes		(52)		63
Wildfire Insurance Fund amortization expense		73		105
Other		21		30
Nuclear decommissioning trusts		(41)		(60)
Changes in operating assets and liabilities:
Receivables		(66)		(46)
Inventory		(10)		(44)
Accounts payable		101		(415)
Other current assets and liabilities		(444)		(107)
Derivative assets and liabilities, net		(25)		(151)
Regulatory assets and liabilities, net		(106)		(366)
Wildfire-related claims		(148)		(428)
Other noncurrent assets and liabilities		150		61
Net cash provided by operating activities		1,372		712
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $34 and $43 for the respective periods		4,216		4,133
Long-term debt repaid		(1,725)		(1,466)
Short-term debt issued		—		675
Short-term debt repaid		(396)		(1,730)
Common stock issued		12		13
Preference stock issued, net of issuance cost		345		—
Preferred or preference stock repurchased or redeemed		(378)		—
Commercial paper borrowing, net of repayments		114		198
Dividends and distribution to noncontrolling interests		(88)		(58)
Common stock dividends paid		(595)		(555)
Preferred stock dividends paid		(45)		(52)
Other		105		61
Net cash provided by financing activities		1,565		1,219
Cash flows from investing activities:
Capital expenditures		(2,700)		(2,711)
Proceeds from sale of nuclear decommissioning trust investments		2,477		1,967
Purchases of nuclear decommissioning trust investments		(2,455)		(1,907)
Other		8		1
Net cash used in investing activities		(2,670)		(2,650)
Net increase (decrease) in cash, cash equivalents and restricted cash		267		(719)
Cash, cash equivalents and restricted cash at beginning of period		532		917
Cash, cash equivalents and restricted cash at end of period	$	799	$	198

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Statements of Income	Southern California Edison Company


	Three months ended				Six months ended
	June 30,				June 30,
(in millions, unaudited)	2024		2023		2024		2023
Operating revenue	$	4,324	$	3,949	$	8,388	$	7,899
Purchased power and fuel		1,234		1,147		2,242		2,465
Operation and maintenance		1,258		1,235		2,549		2,316
Wildfire-related claims, net of insurance recoveries		—		—		614		96
Wildfire Insurance Fund expense		37		53		73		105
Depreciation and amortization		725		648		1,426		1,304
Property and other taxes		154		148		307		287
Total operating expenses		3,408		3,231		7,211		6,573
Operating income		916		718		1,177		1,326
Interest expense		(408)		(328)		(782)		(628)
Other income, net		147		127		282		247
Income before income taxes		655		517		677		945
Income tax expense (benefit)		83		68		(1)		97
Net income		572		449		678		848
Less: Preference stock dividend requirements		49		29		90		58
Net income available to common stock	$	523	$	420	$	588	$	790


Consolidated Statements of Comprehensive Income	Southern California Edison Company


		Three months ended			Six months ended
	June 30,				June 30,
(in millions, unaudited)	2024		2023		2024		2023
Net income	$	572	$	449	$	678	$	848
Other comprehensive income, net of tax:
Pension and postretirement benefits other than pensions		—		—		1		—
Other comprehensive income, net of tax		—		—		1		—
Comprehensive income	$	572	$	449	$	679	$	848

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Balance Sheets

Southern California Edison Company


	June 30,		December 31,
(in millions, unaudited)	2024		2023
ASSETS
Cash and cash equivalents	$	68	$	214
Receivables, less allowances of $334 and $360 for uncollectible accounts at respective dates		2,009		1,981
Accrued unbilled revenue		1,007		741
Inventory		534		527
Prepaid expenses		102		111
Regulatory assets		3,910		2,524
Wildfire Insurance Fund contributions		138		204
Other current assets		326		331
Total current assets		8,094		6,633
Nuclear decommissioning trusts		4,292		4,173
Other investments		54		38
Total investments		4,346		4,211
Utility property, plant and equipment, less accumulated depreciation and amortization of $13,587 and $12,910 at respective dates		57,144		55,877
Nonutility property, plant and equipment, less accumulated depreciation of $104 and $100 at respective dates		199		201
Total property, plant and equipment		57,343		56,078
Regulatory assets (include $1,535 and $1,558 related to VIEs at respective dates)		8,658		8,897
Wildfire Insurance Fund contributions		1,948		1,951
Operating lease right-of-use assets		1,194		1,214
Long-term insurance receivables		143		157
Long-term insurance receivables due from affiliate		365		355
Other long-term assets		2,208		1,987
Total other assets		14,516		14,561
Total assets	$	84,299	$	81,483

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Balance Sheets

Southern California Edison Company


	June 30,		December 31,
(in millions, except share amounts, unaudited)	2024		2023
LIABILITIES AND EQUITY
Short-term debt	$	1,505	$	831
Current portion of long-term debt		798		2,197
Accounts payable		1,889		1,966
Wildfire-related claims		31		30
Accrued interest		408		355
Regulatory liabilities		1,193		763
Current portion of operating lease liabilities		124		118
Other current liabilities		1,390		1,535
Total current liabilities		7,338		7,795
Long-term debt (include $1,492 and $1,515 related to VIEs at respective dates)		28,979		26,297
Deferred income taxes and credits		8,369		8,126
Pensions and benefits		104		105
Asset retirement obligations		2,668		2,666
Regulatory liabilities		9,900		9,420
Operating lease liabilities		1,070		1,096
Wildfire-related claims		1,219		1,368
Other deferred credits and other long-term liabilities		3,390		3,206
Total deferred credits and other liabilities		26,720		25,987
Total liabilities		63,037		60,079
Commitments and contingencies (Note 12)
Preference stock		2,495		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 capital		8,435		8,446
Accumulated other comprehensive loss		(11)		(12)
Retained earnings		8,175		8,307
Total equity		21,262		21,404
Total liabilities and equity	$	84,299	$	81,483

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Statements of Cash Flows

Southern California Edison Company


	Six months ended June 30,
(in millions, unaudited)	2024		2023
Cash flows from operating activities:
Net income	$	678	$	848
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		1,451		1,360
Equity allowance for funds used during construction		(96)		(75)
Deferred income taxes		(3)		96
Wildfire Insurance Fund amortization expense		73		105
Other		9		17
Nuclear decommissioning trusts		(41)		(60)
Changes in operating assets and liabilities:
Receivables		(84)		(39)
Inventory		(10)		(44)
Accounts payable		115		(415)
Other current assets and liabilities		(442)		(54)
Derivative assets and liabilities, net		(25)		(151)
Regulatory assets and liabilities, net		(106)		(366)
Wildfire-related claims		(148)		(428)
Other noncurrent assets and liabilities		159		68
Net cash provided by operating activities		1,530		862
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $31 for both periods		3,719		3,044
Long-term debt repaid		(1,725)		(1,066)
Short-term debt borrowed		—		320
Short-term debt repaid		(381)		(730)
Preference stock issued, net of issuance cost		345		—
Preference stock redeemed		(350)		—
Commercial paper borrowing, net of repayments		342		262
Common stock dividends paid		(720)		(700)
Preference stock dividends paid		(88)		(58)
Other		(7)		18
Net cash provided by financing activities		1,135		1,090
Cash flows from investing activities:
Capital expenditures		(2,698)		(2,710)
Proceeds from sale of nuclear decommissioning trust investments		2,477		1,967
Purchases of nuclear decommissioning trust investments		(2,455)		(1,907)
Other		9		—
Net cash used in investing activities		(2,667)		(2,650)
Net decrease in cash, cash equivalents and restricted cash		(2)		(698)
Cash, cash equivalents and restricted cash at beginning of period		398		766
Cash, cash equivalents and restricted cash at end of period	$	396	$	68

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1.Summary of Significant Accounting Policies

Organization and Basis of Presentation

Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC, doing business as Trio ("Trio"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE, its controlled subsidiaries and a variable interest entity, SCE Recovery Funding LLC., of which SCE is the primary beneficiary. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2023 Form 10-K.

In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year.

The December 31, 2023 financial statement data was derived from the audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. Certain prior period amounts have been conformed to the current period's presentation, including the separate presentation of accrued interest on Edison International's and SCE's consolidated balance sheets.

Cash, Cash Equivalents and Restricted Cash

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 International				SCE
	June 30,		December 31,		June 30,		December 31,
(in millions)	2024		2023		2024		2023
Money market funds	$	397	$	199	$	10	$	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.

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The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:


	June 30,		December 31,
(in millions)	2024		2023
Edison International:
Cash and cash equivalents	$	465	$	345
Short-term restricted cash¹		39		35
Long-term restricted cash²		295		152
Total cash, cash equivalents and restricted cash	$	799	$	532
SCE:
Cash and cash equivalents	$	68	$	214
Short-term restricted cash¹		34		33
Long-term restricted cash²		294		151
Total cash, cash equivalents and restricted cash	$	396	$	398

1	Includes 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.

2	The 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 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 three and six months ended June 30, 2024 is driven primarily by consumer protection programs.

The following table sets forth the changes in allowance for uncollectible accounts for SCE:


	Three months ended							Three months ended
	June 30, 2024							June 30, 2023
(in millions)	Customers		All others		Total			Customers		All others		Total
Beginning balance	$	347	$	16	$	363		$	326	$	18	$	344
Current period provision for uncollectible accounts¹		54		3		57			20		1		21
Write-offs, net of recoveries		(52)		(4)		(56)			(20)		(2)		(22)
Ending balance	$	349	$	15	$	364	³	$	326	$	17	$	343

	Six months ended							Six months ended
	June 30, 2024							June 30, 2023
(in millions)	Customers		All others		Total			Customers		All others		Total
Beginning balance	$	347	$	17	$	364	³	$	334	$	20	$	354
Current period provision for uncollectible accounts²		114		4		118			40		1		41
Write-offs, net of recoveries		(112)		(6)		(118)			(48)		(4)		(52)
Ending balance	$	349	$	15	$	364	³	$	326	$	17	$	343

1	This includes $46 million and $13 million of incremental costs, for the three months ended June 30, 2024 and 2023, respectively, which were probable of recovery from customers and recorded as regulatory assets.

2	This includes $96 million and $27 million of incremental costs, for the six months ended June 30, 2024 and 2023, respectively, which were probable of recovery from customers and recorded as regulatory assets.

3	Approximately $30 million and $4 million of allowance for uncollectible accounts are included in "Other long-term assets" on SCE's consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively.

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Wildfire Insurance Fund

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, SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund increased from 15 to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund. Accordingly, the change resulted in a reduction in wildfire insurance fund expense from $53 million in the three months ended June 30, 2023 to $37 million in the three months ended June 30, 2024 and from $105 million in the six months ended June 30, 2023 to $73 million in the six months ended June 30, 2024.

Earnings Per Share

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 13 for further information.

EPS attributable to Edison International common shareholders was computed as follows:


	Three months ended June 30,				Six months ended June 30,
(in millions, except per-share amounts)	2024		2023		2024		2023
Basic earnings per share:
Net income attributable to common shareholders	$	439	$	354	$	428	$	664
Net income available to common shareholders	$	439	$	354	$	428	$	664
Weighted average common shares outstanding		385		383		385		383
Basic earnings per share	$	1.14	$	0.92	$	1.11	$	1.73
Diluted earnings per share:
Net income attributable to common shareholders	$	439	$	354	$	428	$	664
Net income available to common shareholders	$	439	$	354	$	428	$	664
Income impact of assumed conversions		1		—		1		1
Net income available to common shareholders and assumed conversions	$	440	$	354	$	429	$	665
Weighted average common shares outstanding		385		383		385		383
Incremental shares from assumed conversions		3		2		2		2
Adjusted weighted average shares – diluted		388		385		387		385
Diluted earnings per share	$	1.13	$	0.92	$	1.11	$	1.73

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 1,899,476 and 2,046,312 shares of common stock for the three months ended June 30, 2024 and 2023, respectively, 3,051,134 and 3,230,213 shares of common stock for the six months ended June 30, 2024 and 2023, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.

Revenue Recognition

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.

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Regulatory Proceedings

FERC 2024 Formula Rate Update

In November 2023, SCE filed its 2024 annual transmission revenue requirement update with the FERC, with the rate effective January 1, 2024. The update reflects a $1.1 billion transmission revenue requirement for 2024, $290 million or 20% lower than amounts included in the 2023 annual rates. The decrease is primarily due to returning of prior year overcollection. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first six months of 2024 based on the FERC 2024 annual update rate, subject to refund.

New Accounting Guidance

Accounting Guidance Adopted

No material accounting standards were adopted in 2024.

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.

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Note 2.Consolidated Statements of Changes in Equity

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2024:


											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		Equity
Balance at December 31, 2023	$	1,673	$	6,338	$	(9)	$	7,499	$	15,501	$	2,443	$	17,944
Net income		—		—		—		11		11		41		52
Common stock issued		—		11		—		—		11		—		11
Common stock dividends declared ($0.78 per share)		—		—		—		(300)		(300)		—		(300)
Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B)		—		—		—		(44)		(44)		—		(44)
Dividends to noncontrolling interests ($24.418 - $58.854 per share for preference stock)		—		—		—		—		—		(41)		(41)
Noncash stock-based compensation		—		12		—		—		12		—		12
Preferred stock repurchased		(19)		—		—		—		(19)		—		(19)
Balance at March 31, 2024	$	1,654	$	6,361	$	(9)	$	7,166	$	15,172	$	2,443	$	17,615
Net income		—		—		—		460		460		49		509
Other comprehensive income		—		—		1		—		1		—		1
Common stock issued		—		86		—		—		86		—		86
Common stock dividends declared ($0.78 per share)		—		—		—		(301)		(301)		—		(301)
Dividends to noncontrolling interests ($17.927 - $54.8223 per share for preference stock)		—		—		—		—		—		(43)		(43)
Noncash stock-based compensation		—		14		—		1		15		—		15
Preferred stock repurchased		(9)		—		—		—		(9)		—		(9)
Preference stock issued, net of issuance cost		—		—		—		—		—		345		345
Preference stock redeemed		—		—		—		—		—		(350)		(350)
Balance at June 30, 2024	$	1,645	$	6,461	$	(8)	$	7,326	$	15,424	$	2,444	$	17,868

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The following table provides Edison International's changes in equity for the three and six months ended June 30, 2023:


											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		Equity
Balance at December 31, 2022	$	1,978	$	6,200	$	(11)	$	7,454	$	15,621	$	1,901	$	17,522
Net income		—		—		—		336		336		29		365
Other comprehensive income		—		—		2		—		2		—		2
Common stock issued		—		15		—		—		15		—		15
Common stock dividends declared ($0.7375 per share)		—		—		—		(282)		(282)		—		(282)
Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B)		—		—		—		(52)		(52)		—		(52)
Dividends to noncontrolling interests ($22.281 - $35.937 per share for preference stock)		—		—		—		—		—		(29)		(29)
Noncash stock-based compensation		—		8		—		—		8		—		8
Balance at March 31, 2023	$	1,978	$	6,223	$	(9)	$	7,456	$	15,648	$	1,901	$	17,549
Net income		—		—		—		380		380		29		409
Other comprehensive income		—		—		1		—		1		—		1
Common stock issued		—		35		—		—		35		—		35
Common stock dividends declared ($0.7375 per share)		—		—		—		(283)		(283)		—		(283)
Dividends to noncontrolling interests ($24.273 - $35.937 per share for preference stock)		—		—		—		—		—		(29)		(29)
Noncash stock-based compensation		—		12		—		—		12		—		12
Balance at June 30, 2023	$	1,978	$	6,270	$	(8)	$	7,553	$	15,793	$	1,901	$	17,694

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The following table provides SCE's changes in equity for the three and six months ended June 30, 2024:


							Accumulated
					Additional		Other
	Preference		Common		Paid-in		Comprehensive		Retained		Total
(in millions, except per share amounts)	Stock		Stock		Capital		Loss		Earnings		Equity
Balance at December 31, 2023	$	2,495	$	2,168	$	8,446	$	(12)	$	8,307	$	21,404
Net income		—		—		—		—		106		106
Other comprehensive income		—		—		—		1		—		1
Dividends declared on common stock ($0.8278 per share)		—		—		—		—		(360)		(360)
Dividends declared on preference stock ($24.418 - $58.854 per share)		—		—		—		—		(41)		(41)
Stock-based compensation		—		—		(20)		—		—		(20)
Noncash stock-based compensation		—		—		7		—		—		7
Balance at March 31, 2024	$	2,495	$	2,168	$	8,433	$	(11)	$	8,012	$	21,097
Net income		—		—		—		—		572		572
Dividends declared on common stock (0.8278 per share)		—		—		—		—		(360)		(360)
Dividends declared on preference stock ($17.927 - $54.8223 per share)		—		—		—		—		(43)		(43)
Stock-based compensation		—		—		(6)		—		—		(6)
Noncash stock-based compensation		—		—		7		—		—		7
Preference stock issued		350		—		(5)		—		—		345
Preference stock redeemed		(350)		—		6		—		(6)		(350)
Balance at June 30, 2024	$	2,495	$	2,168	$	8,435	$	(11)	$	8,175	$	21,262

The following table provides SCE's changes in equity for the three and six months ended June 30, 2023:


							Accumulated
					Additional		Other
	Preference		Common		Paid-in		Comprehensive		Retained		Total
(in millions, except per share amounts)	Stock		Stock		Capital		Loss		Earnings		Equity
Balance at December 31, 2022	$	1,945	$	2,168	$	8,441	$	(8)	$	8,243	$	20,789
Net income		—		—		—		—		399		399
Dividends declared on common stock ($0.8048 per share)		—		—		—		—		(350)		(350)
Dividends declared on preference stock ($22.281 - $35.937 per share)		—		—		—		—		(29)		(29)
Stock-based compensation		—		—		(8)		—		—		(8)
Noncash stock-based compensation		—		—		5		—		1		6
Balance at March 31, 2023	$	1,945	$	2,168	$	8,438	$	(8)	$	8,264	$	20,807
Net income		—		—		—		—		449		449
Dividends declared on common stock ($0.8048 per share)		—		—		—		—		(350)		(350)
Dividends declared on preference stock ($24.273 - $35.937 per share)		—		—		—		—		(29)		(29)
Stock-based compensation		—		—		(3)		—		—		(3)
Noncash stock-based compensation		—		—		7		—		—		7
Balance at June 30, 2023	$	1,945	$	2,168	$	8,442	$	(8)	$	8,334	$	20,881

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Note 3.Variable Interest Entities

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, plant dispatch and compliance with regulatory and contractual requirements.

Variable Interest in VIEs that are Consolidated

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.

The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets.


	June 30,		December 31,
(in millions)	2024		2023
Other current assets	$	48	$	53
Regulatory assets: non-current		1,535		1,558
Regulatory liabilities: current		29		34
Current portion of long-term debt¹		48		47
Other current liabilities		6		6
Long-term debt¹		1,492		1,515

1	The 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 Consolidated

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 of the 2023 Form 10-K. 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 4,873 MW and 3,368 MW at June 30, 2024 and 2023, respectively. The amounts that SCE paid to these projects were $189 million and $129 million for the three months ended June 30, 2024 and 2023, respectively, and $346 million and

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$285 million for the six months ended June 30, 2024, and 2023, 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, Trust VII and Trust VIII were utilized in 2013, 2014, 2015, 2016, 2017, 2023 and 2024, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, 5.00%, 7.50% and 6.95% 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, Trust VII and Trust VIII issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, $475 million, $550 million and $350 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, Series M and Series N Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, $475 million, $550 million and $350 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, Series M and Series N 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, Series M or Series N Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. 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 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 II, Trust III, Trust IV, Trust V, Trust VI and Trust VII balance sheets as of June 30, 2024 and December 31, 2023 consisted of investments of $220 million, $275 million, $325 million, $300 million, $475 million and $550 million in the Series G, Series H, Series J, Series K, Series L and Series M Preference Stock, respectively, $220 million, $275 million, $325 million, $300 million, $475 million and $550 million of trust securities, respectively, and $10,000 each of common stock. The Trust VIII balance sheet as of June 30, 2024, consisted of investments of $350 million in the Series N Preference Stock (see Note 13 for further information), $350 million of trust securities and $10,000 of common stock.

The following table provides a summary of the trusts' income statements:


	Three months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI		Trust VII		Trust VIII
2024
Dividend income	$	3	$	4	$	5	$	4	$	6	$	11	$	3
Dividend distributions		3		4		5		4		6		11		3
2023
Dividend income	$	3	$	4	$	5	$	4	$	6	$	—	$	—
Dividend distributions		3		4		5		4		6		—		—




	Six months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI		Trust VII		Trust VIII
2024
Dividend income	$	6	$	8	$	9	$	8	$	12	$	21	$	3
Dividend distributions		6		8		9		8		12		21		3
2023
Dividend income	$	6	$	8	$	9	$	8	$	12	$	—	$	—
Dividend distributions		6		8		9		8		12		—		—

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Note 4.Fair Value Measurements

Recurring Fair Value Measurements

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 June 30, 2024 and December 31, 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 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.

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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:


	June 30, 2024
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral¹		Total
Assets at fair value
Derivative contracts	$	—	$	7	$	82	$	(10)	$	79
Money market funds and other		10		22		—		—		32
Nuclear decommissioning trusts:
Stocks²		1,741		—		—		—		1,741
Fixed Income³		877		1,640		—		—		2,517
Short-term investments, primarily cash equivalents		55		52		—		—		107
Subtotal of nuclear decommissioning trusts⁴		2,673		1,692		—		—		4,365
Total assets		2,683		1,721		82		(10)		4,476
Liabilities at fair value
Derivative contracts		—		107		3		(110)		—
Total liabilities		—		107		3		(110)		—
Net assets	$	2,683	$	1,614	$	79	$	100	$	4,476


	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

1	Represents the netting of assets and liabilities under master netting agreements and cash collateral.

2	Approximately 76% and 75% SCE's equity investments were in companies located in the United States at June 30, 2024 and December 31, 2023, respectively.

3	Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $112 million and $106 million at June 30, 2024 and December 31, 2023, respectively.

4	Excludes net payables of $73 million and $102 million at June 30, 2024 and December 31, 2023, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

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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:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Fair value of net assets at beginning of period	$	80	$	47	$	91	$	63
Sales		—		(1)		—		(1)
Settlements		4		(12)		4		(24)
Total realized/unrealized losses¹		(5)		(22)		(16)		(26)
Fair value of net assets at end of period	$	79	$	12	$	79	$	12

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 2024 and 2023.

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)

Congestion revenue rights

June 30, 2024

CAISO CRR auction prices

($12.38) - $17,972.06

4.55

December 31, 2023

—

CAISO CRR auction prices

(6.44) - 16,574.36

2.74

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. There are no securities classified as Level 3 in the nuclear decommissioning trusts. 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 $387 million and $121 million at June 30, 2024 and December 31, 2023, respectively. Assets measured at fair value and classified as Level 2 consisted of short-term investments of $2 million at both June 30, 2024 and December 31, 2023. There are no securities classified as Level 3 for Edison International Parent and Other.

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 the current portion of long-term debt) are as follows:


	June 30, 2024				December 31, 2023
	Carrying		Fair		Carrying		Fair
(in millions)	Value¹		Value²		Value¹		Value²
Edison International	$	34,797	$	32,091	$	33,013	$	31,315
SCE		29,777		27,013		28,494		26,712

1	Carrying value is net of debt issuance costs.

2	The fair value of long-term debt is classified as Level 2.

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Note 5.Debt and Credit Agreements

Long-Term Debt

In the first six months of 2024, SCE issued the following first and refunding mortgage bonds:


Description	Month of Issuance	Rate	Maturity Date	Amount (in millions)
Series 2024A	January 2024	4.875%	2027	$	500
Series 2024B	January 2024	5.20%	2034		900
Series 2024C	March 2024	5.35%	2026		600
Series 2024D	March 2024	5.15%	2029		600
Series 2024E	March 2024	5.75%	2054		400
Series 2024F	May 2024	5.45%	2031		750

The proceeds were used to fund and refinance debt for the payment of wildfire claims and related expenses above the amount of insurance proceeds, repay commercial borrowings, and for general corporate purposes.

In June 2024, Edison International Parent issued $500 million of 5.45% senior notes due in 2029. The proceeds were used for general corporate purposes and to repay commercial paper borrowings.

Credit Agreements and Short-Term Debt

The following table summarizes the status of the credit facilities at June 30, 2024:


(in millions, except for rates)
Borrower	Termination Date	Secured Overnight Financing Rate ("SOFR") plus (bps)	Commitment		Outstanding borrowings		Outstanding letters of credit		Amount available
Edison International Parent^{1, 3}	May 2028	128	$	1,500	$	—	$	—	$	1,500
SCE^{2, 3}	May 2028	108		3,350		1,506		9		1,835
Total Edison International			$	4,850	$	1,506	$	9	$	3,335

1	At June 30, 2024, Edison International Parent did not have any outstanding commercial paper.

2	At June 30, 2024, SCE had $1.5 billion outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.64%.

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. The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained.

Uncommitted Letters of Credit

SCE entered into 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 June 30, 2024, SCE had $104 million outstanding under these agreements, which expire between July 2024 and June 2025. The unused capacity under these agreements was $521 million.

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 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

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payables. The fair value of these derivative contracts and any related collateral were immaterial as of June 30, 2024 and December 31, 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:


	June 30, 2024
	Derivative Assets		Derivative Liabilities
(in millions)	Short-Term¹		Short-Term
Commodity derivative contracts
Gross amounts recognized	$	89	$	110
Gross amounts offset in the consolidated balance sheets		(10)		(10)
Cash collateral posted		—		(100)
Net amounts presented in the consolidated balance sheets	$	79	$	—


	December 31, 2023
	Derivative Assets		Derivative Liabilities
(in millions)	Short-Term¹		Short-Term
Commodity derivative contracts
Gross 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	$	—

1	Included in "Other current assets" on SCE's consolidated balance sheets.

At June 30, 2024, SCE posted and accrued $180 million of cash collateral, of which $100 million was offset against derivative liabilities and $80 million was reflected in "Other current assets" on SCE's consolidated balance sheets. At December 31, 2023, SCE posted and accrued $121 million of cash collateral, of which $74 million was offset against derivative liabilities and $47 million was reflected in "Other current assets" on the consolidated balance sheets.

Financial Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to the expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore, also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in SCE's consolidated statements of cash flows.

The following table summarizes the (losses)/gains of SCE's economic hedging activity:


	Three months ended June 30,					Six months ended June 30,
(in millions)		2024		2023		2024		2023
Realized	$	(55)	$	(7)	$	(126)	$	109
Unrealized		(9)		(114)		(37)		(378)

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE's economic hedging activities:


	Unit of	Economic Hedges
Commodity	Measure	June 30, 2024	December 31, 2023
Electricity options, swaps and forwards	Gigawatt hours	7,572	3,494
Natural gas options, swaps and forwards	Billion cubic feet	17	31
Congestion revenue rights	Gigawatt hours	18,571	35,011

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Note 7.Revenue

SCE's revenue is disaggregated by two revenue sources:

●

Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE with a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

●

Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to a reasonableness review or compliance with upfront standards, as well as non-bypassable rates collected for SCE Recovery Funding LLC. Cost-recovery activities include rates which provide recovery, subject to a reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), certain operation and maintenance expenses and repayment of bonds and financing costs of SCE Recovery Funding LLC. SCE earns no return on these activities.

The following table is a summary of SCE's revenue:


	Three months ended June 30, 2024						Three months ended June 30, 2023
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Revenue from contracts with customers¹	$	2,171	$	1,930	$	4,101	$	2,043	$	1,546	$	3,589
Alternative revenue programs and other operating revenue²		436		(213)		223		124		236		360
Total operating revenue	$	2,607	$	1,717	$	4,324	$	2,167	$	1,782	$	3,949


	Six months ended June 30, 2024						Six months ended June 30, 2023
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Revenues from contracts with customers¹	$	4,346	$	3,525	$	7,871	$	4,119	$	3,206	$	7,325
Alternative revenue programs and other operating revenue²		710		(193)		517		281		293		574
Total operating revenue	$	5,056	$	3,332	$	8,388	$	4,400	$	3,499	$	7,899

1	At June 30, 2024 and December 31, 2023, SCE's receivables related to contracts from customers were $3.0 billion and $2.5 billion, respectively, which include accrued unbilled revenue of $1.0 billion and $741 million, respectively.

2	Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues.

Deferred Revenue

As of June 30, 2024, SCE has deferred revenue of $361 million related to the 2021 sale of transmission line use, of which $348 million is included in "Other deferred credits and other long-term liabilities" on SCE's consolidated balance sheets and is being amortized straight-line over the period of use of 30 years.

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Note 8.Income Taxes

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:


	Three months ended June 30,						Six months ended June 30,
(in millions)	2024			2023			2024			2023
Edison International:
Income from operations before income taxes	$	568		$	460		$	507		$	838
Provision for income tax at federal statutory rate of 21%		119			97			106			176
Increase (decrease) in income tax from:
State tax, net of federal income tax effect		7			1			(30)			—
Property-related		(62)			(47)			(117)			(105)
Other		(5)			—			(13)			(7)
Total income tax expense (benefit)	$	59		$	51		$	(54)		$	64
Effective tax rate		10.4	%		11.1	%		(10.7)	%		7.6	%
SCE:
Income from operations before income taxes	$	655		$	517		$	677		$	945
Provision for income tax at federal statutory rate of 21%		138			109			142			198
Increase (decrease) in income tax from:
State tax, net of federal tax effect		13			8			(18)			11
Property-related		(62)			(47)			(117)			(105)
Other		(6)			(2)			(8)			(7)
Total income tax expense (benefit)	$	83		$	68		$	(1)		$	97
Effective tax rate		12.7	%		13.2	%		(0.1)	%		10.3	%

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.

Tax Disputes

The tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2020 – 2022 and 2013 – 2022, respectively.

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Note 9.Compensation and Benefit Plans

Pension Plans

Net periodic pension expense components are:


	Three months ended				Six months ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Edison International:
Service cost	$	24	$	25	$	48	$	50
Non-service cost (benefit)
Interest cost		44		45		88		90
Expected return on plan assets		(59)		(54)		(118)		(108)
Amortization of net loss¹		1		1		2		2
Regulatory adjustment		(5)		(12)		(10)		(24)
Total non-service benefit²	$	(19)	$	(20)	$	(38)	$	(40)
Total expense	$	5	$	5	$	10	$	10
SCE:
Service cost	$	24	$	24	$	48	$	48
Non-service cost (benefit)
Interest cost		41		42		81		84
Expected return on plan assets		(55)		(51)		(110)		(102)
Amortization of net loss¹		—		—		1		—
Regulatory adjustment		(5)		(12)		(10)		(24)
Total non-service benefit²	$	(19)	$	(21)	$	(38)	$	(42)
Total expense	$	5	$	3	$	10	$	6

1	Represents the amount of net loss reclassified from other comprehensive loss.

2	Included in "Other Income, net" on Edison International's and SCE's consolidated statements of income.

Postretirement Benefits Other Than Pensions ("PBOP")

Net periodic PBOP expense components for Edison International and SCE are:


	Three months ended				Six months ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
Service cost	$	3	$	5	$	6	$	10
Non-service cost (benefit)
Interest cost		9		18		18		36
Expected return on plan assets		(28)		(27)		(56)		(54)
Amortization of net gain		(24)		(12)		(48)		(24)
Regulatory adjustment		40		16		80		32
Total non-service benefit¹	$	(3)	$	(5)	$	(6)	$	(10)
Total expense	$	—	$	—	$	—	$	—

1	Included in "Other income, net" on Edison International's and SCE's consolidated statements of income.

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Note 10. Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion on fair value of the trust investments):


		Amortized Costs				Fair Values
	Longest	June 30,		December 31,		June 30,		December 31,
(in millions)	Maturity Dates	2024		2023		2024		2023
Municipal bonds	2067	$	704	$	636	$	815	$	757
Government and agency securities	2074		1,104		1,072		1,195		1,186
Corporate bonds	2072		464		361		507		401
Short-term investments and receivables/payables¹	One-year		33		164		34		171
Total debt securities and other		$	2,305	$	2,233		2,551		2,515
Equity securities							1,741		1,658
Total²						$	4,292	$	4,173

1	As of June 30, 2024 and December 31, 2023, short-term investments included $6 million and $38 million of repurchase agreement payable by financial institutions which earned interest, were fully secured by U.S. Treasury securities, and mature by July 1, 2024 and January 2, 2024, respectively.

2	Represents amounts before reduction for deferred tax liabilities on net unrealized gains of $397 million and $380 million as of June 30, 2024 and December 31, 2023, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.8 billion at both June 30, 2024 and December 31, 2023.

The following table summarizes the gains and losses for the trust investments:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Gross realized gains	$	47	$	124	$	102	$	195
Gross realized losses		(5)		(8)		(14)		(31)
Net unrealized (losses)/gains for equity securities		(10)		(11)		85		64

Due to regulatory mechanisms, changes in the assets of the trusts from income or loss items do not materially affect earnings.

Edison International Parent and Other's Investments

Edison International Parent and Other holds strategic investments in companies focused on innovative clean energy related technologies and services, included as "Other investments" on Edison International's consolidated balance sheets. As of June 30, 2024 and December 31, 2023, these investments include $14 million and $12 million of equity investments without readily determinable fair values, respectively. The equity investments without readily determinable fair values balances included cumulative upward adjustments of $9 million, resulting primarily from values determined by additional capital infusions, at both June 30, 2024 and December 31, 2023.

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Note 11. Regulatory Assets and Liabilities

Regulatory Assets

SCE's regulatory assets included on the consolidated balance sheets are:


	June 30,		December 31,
(in millions)	2024		2023
Current:
Regulatory balancing and memorandum accounts	$	3,865	$	2,502
Other		45		22
Total current		3,910		2,524
Long-term:
Deferred income taxes		5,752		5,533
Unamortized investments, net of accumulated amortization		113		110
Unamortized losses on reacquired debt		93		99
Regulatory balancing and memorandum accounts		832		1,257
Environmental remediation		226		226
Recovery assets		1,535		1,558
Other		107		114
Total long-term		8,658		8,897
Total regulatory assets	$	12,568	$	11,421

Regulatory Liabilities

SCE's regulatory liabilities included on the consolidated balance sheets are:


	June 30,		December 31,
(in millions)	2024		2023
Current:
Regulatory balancing and memorandum accounts	$	1,157	$	704
Other		36		59
Total current		1,193		763
Long-term:
Costs of removal		2,602		2,635
Deferred income taxes		2,186		2,211
Recoveries in excess of ARO liabilities		1,595		1,498
Regulatory balancing and memorandum accounts		1,815		1,395
Pension and other postretirement benefits		1,685		1,664
Other		17		17
Total long-term		9,900		9,420
Total regulatory liabilities	$	11,093	$	10,183

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Net Regulatory Balancing and Memorandum Accounts

The following table summarizes the significant components of regulatory balancing and memorandum accounts included in the above tables of regulatory assets and liabilities:


	June 30,		December 31,
(in millions)	2024		2023
Asset (liability)
Energy procurement related costs	$	87	$	397
Public purpose and energy efficiency		(1,897)		(1,736)
GRC related balancing accounts		1,916		1,361
Wildfire risk mitigation and insurance		859		1,169
Wildfire and drought restoration		187		417
Residential uncollectibles balancing account		101		—
Customer service re-platform memorandum account		81		21
Tax accounting memorandum account		160		108
Other		231		(77)
Assets, net of liabilities	$	1,725	$	1,660

Note 12. Commitments and Contingencies

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business.

Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, indemnities for specified environmental liabilities and income taxes with respect to assets sold or other contractual arrangements. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of each of these other proceedings will not materially affect its financial position, results of operations and cash flows. Legal costs expected to be incurred by Edison International and SCE in connection with loss contingencies are expensed as incurred.

Southern California Wildfires and Mudslides

California has experienced unprecedented weather conditions in recent years due to climate change and wildfires in SCE's territory, including those where SCE's equipment has been alleged to be associated with the fire's ignition, have caused loss of life and substantial damage in recent years. SCE's service territory remains susceptible to additional wildfire activity.

Numerous claims related to wildfire events have been initiated against SCE and Edison International. Edison International and SCE have incurred material losses in connection with the 2017/2018 Wildfire/Mudslide Events (defined below) and other fires, which are described below. In addition, SCE's equipment has been, and may further be, alleged to be associated with other wildfires that have originated in Southern California.

Liability Overview

The extent of legal liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether the utility substantially caused or contributed to the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse

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condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims, including claims for non-economic damages. Additionally, SCE could potentially be subject to fines and penalties for alleged violations of CPUC rules and state laws investigated in connection with the ignition of a wildfire.

While investigations into the cause of a wildfire event are conducted by one or more fire agencies, fire agency findings do not determine legal causation of or assign legal liability for a wildfire event. Final determinations of legal causation and liability for wildfire events, including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes and settlements may be reached before determinations of legal liability are ever made. Even when investigations are still pending or legal liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require estimated losses to be accrued under accounting standards. Each reporting period, management reviews its 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. Actual losses incurred may be higher or lower than estimated based on several factors, including the uncertainty in estimating damages that have been or may be alleged.

2017/2018 Wildfire/Mudslide Events

Wildfires in SCE's territory in December 2017 and November 2018 caused loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. The investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires in SCE's territory originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). The December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE, the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two confirmed fatalities. The largest of the November 2018 fires in SCE's territory, known as the "Woolsey Fire," originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three confirmed fatalities. Four additional fatalities are alleged to have been associated with the Woolsey Fire.

As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by debris flows and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides," and collectively with the Thomas Fire and the Koenigstein Fire, "TKM") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and further alleging that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with two additional fatalities presumed but not officially confirmed.

The Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire are each referred to as a "2017/2018 Wildfire/Mudslide Event," and, collectively, referred to as the "2017/2018 Wildfire/Mudslide Events."

As of June 30, 2024, SCE had paid $9.2 billion under executed settlements, had $71 million to be paid under executed settlements, including $58 million to be paid under the SED Agreement (as defined below), and had $598 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, SCE had assets for expected recoveries through FERC electric rates of $64 million on its consolidated balance sheets and had exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events.

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The estimated losses for the 2017/2018 Wildfire/Mudslide Events do not include estimates of potential losses related to certain potential public entity plaintiff claims, including the California Governor's Office of Emergency Service's claim in the TKM litigation, for which the statute of limitations has been tolled and for an individual plaintiff demand received in the first quarter of 2024 that has not been substantiated, as losses from these alleged and potential claims are not estimable at this time. Edison International and SCE may incur a material loss in excess of amounts accrued in connection with the remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. Due to the number of uncertainties and possible outcomes related to the 2017/2018 Wildfire/Mudslide Events litigation, Edison International and SCE cannot estimate the upper end of the range of reasonably possible losses that may be incurred.

The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not prudently incurred. SCE will seek rate recovery of prudently incurred losses and related costs realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance, other than for any obligations under the SED Agreement (as defined below). See "Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" below for additional information.

External Investigations and Internal Review

The VCFD and CAL FIRE have jointly issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The reports did not address the causes of the Montecito Mudslides. SCE has also received a non-final redacted draft of a report from the VCFD regarding Woolsey Fire (the "Redacted Woolsey Report"). SCE cannot predict when the VCFD will release its final report regarding the Woolsey Fire.

The CPUC's Safety and Enforcement Division ("SED") conducted investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the Thomas, Koenigstein and Woolsey Fires. As discussed below, in October 2021, SCE and the SED executed the SED Agreement (as defined below) to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events.

The California Attorney General's Office has completed its investigation of the Thomas Fire and the Woolsey Fire without pursuing criminal charges.

SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes.

Thomas Fire

On March 13, 2019, the VCFD and CAL FIRE jointly issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that their investigation found molten metal on the ground. At this time, based on available information, SCE believes that it is likely that its equipment was not associated with the ignition of the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time and other evidence, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the extent of damages that may be attributable to the Thomas Fire.

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Koenigstein Fire

On March 20, 2019, the VCFD and CAL FIRE jointly issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. SCE believes that its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the extent of damages that may be attributable to the Koenigstein Fire.

Montecito Mudslides

SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides.

At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused by or contributed to the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides.

Woolsey Fire

SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outage on SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage.

The Redacted Woolsey Report states that the VCFD investigation team determined that electrical equipment owned and operated by SCE was the cause of the Woolsey Fire. Absent additional evidence, SCE believes that it is likely that its equipment was associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE.

Litigation

Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed by three categories of plaintiffs: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. As of July 18, 2024, in addition to the outstanding claims of approximately 840 individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs, including the California Governor's Office of Emergency Service ("Cal OES"), outstanding. The litigation could take a number of years to be completely resolved because of the complexity of the matters and number of plaintiffs.

On October 4, 2018, the Los Angeles Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In April 2022, following a stipulated judgment entered against SCE in the TKM litigation, SCE filed an appeal related to inverse condemnation in the California Court of Appeal, which was denied. In July 2024, SCE filed a notice of appeal with the California Supreme Court with respect to the California Court of Appeal’s decision.

In January 2019, SCE filed a cross-complaint against certain local public entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. These cross-claims in the Montecito Mudslides litigation were not released as part of the Local Public Entity Settlements (as defined below). Several of these cross-claims have been settled or dismissed.

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Settlements

In 2019, SCE paid $360 million to a number of local public entities to resolve those parties' collective claims arising from the 2017/2018 Wildfire/Mudslide Events (the "Local Public Entity Settlements").

In 2020, Edison International and SCE entered into an agreement (the "TKM Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation (the "TKM Subrogation Plaintiffs") collective claims arising from the Thomas Fire, Koenigstein Fire or Montecito Mudslides have been resolved. Under the TKM Subrogation Settlement, SCE paid the TKM Subrogation Plaintiffs an aggregate of $1.2 billion in October 2020 and also agreed to pay $0.555 for each dollar in claims to be paid by the TKM Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap.

In 2021, Edison International and SCE entered into an agreement (the "Woolsey Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Woolsey Fire litigation (the "Woolsey Subrogation Plaintiffs") collective claims arising from the Woolsey Fire have been resolved. Under the Woolsey Subrogation Settlement, SCE paid the Woolsey Subrogation Plaintiffs an aggregate of $2.2 billion in March and April 2021. SCE has also agreed to pay $0.67 for each dollar in claims to be paid by the Woolsey Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap.

As of July 18, 2024, SCE has also entered into settlements with approximately 13,000 individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation. In 2023, 2022 and 2021, SCE entered into settlements with individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation under which it agreed to pay an aggregate of approximately $876 million, $1.7 billion and $1.7 billion, respectively, to those individual plaintiffs. In the first and second quarter of 2024, SCE entered into settlements with individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation under which it agreed to pay an aggregate of approximately $216 million and $180 million, respectively, to those individual plaintiffs.

The statutes of limitations for individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events have expired. As of July 18, 2024, SCE has received demands for approximately 97% and 93% of outstanding individual plaintiff claims in the TKM litigation and Woolsey litigation, respectively.

Edison International and SCE did not admit wrongdoing or liability as part of any of the settlements described above. Other claims and potential claims related to the 2017/2018 Wildfire/Mudslide Events remain. SCE continues to explore reasonable settlement opportunities with other plaintiffs in the outstanding 2017/2018 Wildfire/Mudslide Events litigation.

SED Agreement

In October 2021, SCE and the SED executed an agreement (the "SED Agreement") to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events and three other 2017 wildfires for, among other things, aggregate costs of $550 million. The $550 million in costs comprised of a $110 million fine to be paid to the State of California General Fund, $65 million of shareholder-funded safety measures, and an agreement by SCE to waive its right to seek cost recovery in CPUC-jurisdictional rates for $375 million of third-party uninsured claims payments. The SED Agreement provides that SCE may, on a permanent basis, exclude from its ratemaking capital structure any after-tax charges to equity or debt borrowed to finance costs incurred under the SED Agreement. The SED Agreement also imposes other obligations on SCE, including reporting requirements and safety-focused studies. SCE's obligations under the SED Agreement commenced on August 15, 2022, when CPUC approval of the SED Agreement became final and non-appealable. SCE did not admit imprudence, negligence or liability with respect to the 2017/2018 Wildfire/Mudslide Events in the SED Agreement.

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Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates

At June 30, 2024 and December 31, 2023, Edison International's and SCE's consolidated balance sheets included fixed payments to be made under executed settlement agreements and accrued estimated losses of $669 million and $715 million, respectively, for claims related to the 2017/2018 Wildfire/Mudslide Events. The following table presents changes in estimated losses since December 31, 2023:


(in millions)
Balance at December 31, 2023¹	$	715
Increase in accrued estimated losses		490
Amounts paid		(536)
Balance at June 30, 2024²	$	669

At December 31, 2023, $30 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $16 million of settlements executed and $14 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2023, the $1,368 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $637 million, $48 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $683 million.

At June 30, 2024, $31 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $13 million of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events, $15 million of short term payables under the SED Agreement, and $3 million of settlements executed in connection with the Other Wildfires. At June 30, 2024, the $1,219 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $598 million, $43 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $578 million.

For the three and six months ended June 30, 2024 and 2023, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from FERC customers, related to the 2017/2018 Wildfire/Mudslide Events claims as follows:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Charge for wildfire-related claims	$	—	$	—	$	490	$	90
Expected revenue from FERC customers		—		—		(27)		(6)
Total pre-tax charge		—		—		463		84
Income tax benefit		—		—		(130)		(23)
Total after-tax charge	$	—	$	—	$	333	$	61

For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE had $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. For the Woolsey Fire, SCE had an additional $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence.

In total, through June 30, 2024, SCE has accrued estimated losses of $9.9 billion, has paid or is obligated to pay approximately $9.3 billion in settlements, including $58 million to be paid under the SED Agreement, and has recovered $2.0 billion from its insurance carriers in relation to the claims related to the 2017/2018 Wildfire/Mudslide Events.

Recovery of SCE's losses realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire claims related costs is San Diego Gas & Electric's ("SDG&E") requests for cost recovery related to 2007 wildfire activity, where the FERC allowed recovery of all FERC-jurisdictional wildfire claims related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire claims related costs based on a determination that SDG&E did not meet the CPUC's prudency standard ("SDG&E Decision"). As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and

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application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a conclusion that recovery is probable.

In August 2023, SCE filed an application ("TKM Application") with the CPUC to seek rate recovery of $2.4 billion of prudently incurred losses related to the Thomas Fire, the Koenigstein Fire and the Montecito Mudslides, consisting of $2.0 billion of uninsured claims and $0.4 billion of associated costs, including legal fees and financing costs. The TKM Application seeks recovery of amounts paid as of July 31, 2023. In the application, SCE proposed a true-up process for claims payments made after that date, and associated costs. SCE targets the third quarter of 2024 for the filing of its application to seek CPUC-jurisdictional rate recovery of prudently incurred losses related to the Woolsey Fire ("Woolsey Application"). SCE's plans with respect to this filing may be delayed or modified.

Through the operation of its FERC Formula Rate, and based upon the precedent established in SDG&E's recovery of FERC-jurisdictional wildfire-related costs, SCE believes it is probable it will recover its FERC-jurisdictional costs related to the 2017/2018 Wildfire/Mudslide Events and has recorded total expected recoveries of $440 million within the FERC balancing account. This was the FERC portion of the total estimated losses accrued. As of June 30, 2024, collections have reduced the regulatory assets remaining in the FERC balancing account to $64 million. SCE will continue to evaluate the probability of recovery of FERC-jurisdictional wildfire and mudslide related costs based on available evidence, including any FERC decisions to allow or disallow recovery of FERC-jurisdictional wildfire-related costs based on a state regulator's decision on whether to permit recovery of related costs.

As of June 30, 2024, SCE has $167 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in cost recovery proceedings. In its TKM Application, SCE is seeking capital recovery of approximately $65 million in restoration costs related to the Thomas and Koenigstein Fires. SCE will seek capital recovery of restoration costs related to the Woolsey Fire when it files the Woolsey Application.

Other Wildfires

In addition to the Thomas, Koenigstein and Woolsey Fires, several other wildfires that ignited in and after 2017 impacted portions of SCE's service territory. Wildfires, where SCE's equipment has been and may be further alleged to be associated with the fire's ignition, that originated in Southern California (i) in 2017 or 2018, other than the Thomas, Koenigstein and Woolsey Fires, are referred to collectively as the "Other 2017/2018 Wildfires," (ii) after 2018 are referred to collectively as the "Post-2018 Wildfires." The Post-2018 Wildfires and the Other 2017/2018 Wildfires are referred to collectively as the "Other Wildfires."

During the six months ended June 30, 2024, SCE accrued estimated losses of $180 million for claims related to the Other Wildfires, against which SCE has recorded expected recoveries from insurance of $56 million and expected recoveries through electric rates of $7 million. The resulting net charge to earnings was $117 million ($84 million after-tax).

Through June 30, 2024, SCE has recorded total estimated losses of $1.1 billion, expected recoveries from insurance and third parties of $679 million and expected recoveries through electric rates of $175 million related to the Other Wildfires claims. The after-tax net charges to earnings recorded through June 30, 2024 have been $152 million.

As of June 30, 2024, SCE has paid or is obligated to pay approximately $488 million under executed settlements related to the Other Wildfires and Edison International's and SCE's estimated losses for remaining alleged and potential claims (established at the low end of the estimated range of reasonably possible losses) related to the Other Wildfires was $581 million. As of the same date, SCE had assets for expected recoveries through insurance and third parties of $508 million and through electric rates of $150 million on its consolidated balance sheets related to the Other Wildfires.

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Other 2017/2018 Wildfires

Numerous claims related to the Other 2017/2018 Wildfires have been initiated against SCE. The SED is also conducting investigations with respect to some Other 2017/2018 Wildfires.

2017 Creek Fire

The Creek Fire originated near Sylmar in Los Angeles County in December 2017 and burned approximately 16,000 acres, destroyed an estimated 123 structures, damaged an estimated 81 structures, and resulted in 3 civilian injuries. While the United States Forest Service's ("USFS") report of investigation concludes that the Los Angeles Department of Water and Power ("LADWP") long-span transmission lines slapping together in high winds resulted in arcing and ignition of the fire, the USFS has dismissed its claim against LADWP and filed a claim against SCE to recover over $40 million for fire-suppression costs incurred by the USFS and environmental damage to U.S. lands. A trial in the USFS litigation is currently set for July 2025. Individual and subrogation plaintiffs have also filed complaints against SCE related to the Creek Fire, and a liability-only bench trial on inverse condemnation is currently set for October 2024. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation process. SCE has accrued charges for potential losses relating to the Creek Fire. The accrued charges correspond to the low end of the estimated range of reasonably possible losses that may be incurred in connection with the Creek Fire and are subject to change as additional information becomes available. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred. SCE has recorded expected recoveries from insurance of $18 million related to the Creek Fire. No additional insurance is available because wildfire insurance for the period in which the Creek Fire was ignited has been almost fully exhausted as a result of the TKM litigation.

Post-2018 Wildfires

Numerous claims related to the Post-2018 Wildfires have been initiated against SCE and Edison International. The SED is also conducting investigations with respect to several Post-2018 Wildfires.

Expected recoveries from insurance recorded for the Post-2018 Wildfires are supported by SCE's insurance coverage for multiple policy years. While Edison International and SCE may incur material losses in excess of the amounts accrued for certain of the Post-2018 Wildfires, Edison International and SCE expect that any losses incurred in connection with any such fire will be covered by insurance, subject to self-insured retentions and co-insurance, and expect that any such losses after expected recoveries from insurance and through electric rates will not be material.

2019 Saddle Ridge Fire

The "Saddle Ridge Fire," originated in Los Angeles County in October 2019 and burned approximately 9,000 acres, destroyed an estimated 19 structures, damaged an estimated 88 structures, and resulted in one fatality and injuries to eight fire fighters. In August 2023, SCE received a signed report of investigation from the Los Angeles Fire Department ("LAFD"), in which the LAFD stated with respect to the Saddle Ridge Fire that the cause of ignition was unintentional, the form of heat was undetermined, the item first ignited was undetermined and the material type first ignited was undetermined. The LAFD report noted that no other competent ignition sources other than SCE's transmission lines were found in the specific origin area of the Saddle Ridge Fire. There are currently no trials scheduled in the Saddle Ridge Fire litigation. Based on pending litigation and without considering insurance recoveries, it is reasonably possible that SCE will incur a material loss in connection with the Saddle Ridge Fire, but the range of reasonably possible losses that could be incurred cannot be estimated at this time. SCE has not determined that losses in connection with the Saddle Ridge Fire are probable and consequently has not accrued a charge for potential losses relating to the Saddle Ridge Fire.

2020 Bobcat Fire

The "Bobcat Fire" was reported in the vicinity of Cogswell Dam in Los Angeles County in September 2020. The USFS has reported that the Bobcat Fire burned approximately 116,000 acres in Los Angeles County, destroyed an estimated 87 homes, one commercial property and 83 minor structures, damaged an estimated 28 homes and 19 minor structures, and resulted in injuries to six firefighters. In addition, fire authorities have estimated suppression costs at approximately $80 million. An investigation into the cause of the Bobcat Fire was led by the USFS. In May 2023, SCE received a report of investigation from the USFS, in which the USFS finds that the Bobcat Fire was caused when an SCE electrical wire made contact with a tree limb. The SED has concluded its investigation of the Bobcat Fire and found no violations of its rules and regulations by

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SCE related to the Bobcat Fire. The United States of America has filed a claim against SCE and one of its contractors to recover fire-suppression costs, property and natural resource losses, and emergency response costs. A jury trial in this litigation is currently set for July 2025. Individual plaintiffs have also filed complaints against SCE related to the Bobcat Fire, and a trial is currently set for January 2025. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation process. SCE has accrued material charges for potential losses relating to the Bobcat Fire. The accrued charges correspond to the low end of the estimated range of reasonably possible losses that may be incurred in connection with the Bobcat Fire and are subject to change as additional information becomes available. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred.

2022 Coastal Fire

The "Coastal Fire" originated in Orange County in May 2022 and burned approximately 200 acres. The Orange County Fire Authority ("OCFA") has reported that the Coastal Fire destroyed 20 residential structures and damaged 11 residential structures. Two firefighters also reportedly sustained minor injuries. In addition, fire authorities have estimated suppression costs at approximately $3 million. While SCE's investigation remains ongoing, SCE's information reflects that a SCE circuit in the area experienced an anomaly (a relay) approximately 2 minutes prior to the reported time of the fire. An investigation into the cause of the Coastal Fire is being led by the OCFA. The OCFA has retained SCE equipment in connection with its investigation. There are currently no trials scheduled in the Coastal Fire litigation. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation process. SCE has accrued material charges for potential losses relating to the Coastal Fire. The accrued charges correspond to the low end of the estimated range of reasonably possible losses that may be incurred in connection with the Coastal Fire and are subject to change as additional information becomes available. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred.

2022 Fairview Fire

The "Fairview Fire" originated in Riverside County in September 2022 and burned approximately 28,000 acres. CAL FIRE has reported that the Fairview Fire destroyed 22 residential structures, damaged five residential structures, and destroyed or damaged 17 minor structures. CAL FIRE also reported two civilian fatalities, one civilian injury and two injuries to responding fire personnel. In addition, fire authorities have estimated suppression costs at $39 million. While SCE's investigation remains ongoing, SCE's information reflects that a SCE circuit in the area experienced an anomaly (a relay) approximately 8 minutes prior to the reported start time of the fire. In November 2023, SCE received a report of investigation conducted by CAL FIRE, in which CAL FIRE finds that the Fairview Fire was caused when a sagging SCE electrical conductor came in contact with a communication line, causing sparks to fall and ignite surrounding vegetation. In July 2024, the SED issued a notice of violation alleging that SCE failed to comply with clearance requirements with respect to its electrical conductor. Jury trials for bellwether plaintiffs in the Fairview Fire litigation have been set for April and May 2025. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation process. SCE has accrued material charges for potential losses relating to the Fairview Fire. The accrued charges correspond to the low end of the estimated range of reasonably possible losses that may be incurred in connection with the Fairview Fire and are subject to change as additional information becomes available. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred.

Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates

At June 30, 2024 and December 31, 2023, Edison International's and SCE's consolidated balance sheets included accrued estimated losses of $581 million and $683 million, respectively, for claims related to the Other Wildfires. Edison International and SCE have accrued the low end of the estimated range of reasonably possible losses for each of the Other Wildfires as no amount within the range of reasonably possible losses for each such fire appears at this time to be a better estimate than any other amount within the range. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred.

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The following table presents changes in estimated losses since December 31, 2023:


(in millions)
Balance at December 31, 2023	$	683
Increase in accrued estimated losses		180
Amounts paid		(282)
Balance at June 30, 2024	$	581

For the three and six months ended June 30, 2024 and 2023, Edison International's and SCE's consolidated statements of income included charges for the estimated losses (established at the low end of the estimated range of reasonably possible losses), net of expected recoveries from insurance and customers, related to the Other Wildfires as follows, respectively:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Edison International:
Charge for wildfire-related claims	$	—	$	—	$	180	$	6
Expected insurance recoveries¹		—		—		(55)		—
Expected revenue from CPUC and FERC customers		—		—		(7)		—
Total pre-tax charge		—		—		118		6
Income tax benefit		—		—		(33)		(2)
Total after-tax charge	$	—	$	—	$	85	$	4

	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
SCE:
Charge for wildfire-related claims	$	—	$	—	$	180	$	6
Expected insurance recoveries		—		—		(56)		—
Expected revenue from CPUC and FERC customers		—		—		(7)		—
Total pre-tax charge		—		—		117		6
Income tax benefit		—		—		(33)		(2)
Total after-tax charge	$	—	$	—	$	84	$	4

1	In the first quarter of 2024, Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, incurred $1 million insurance expenses. This amount was included in the insurance recovery of SCE but was excluded from that of Edison International.

Recovery of SCE's losses realized in connection with the Other Wildfires in excess of available insurance is subject to approval by regulators. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not prudently incurred. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on the probability of future recovery. As of June 30, 2024, SCE has recorded total expected recoveries related to the Other Wildfires claims of $152 million within the Wildfire Expense Memorandum Account and Risk Management Balancing Account and $23 million within the FERC balancing account.

As discussed above, the SDG&E Decision is evidence of a California investor-owned utility seeking recovery for uninsured wildfire-related costs and FERC allowing recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that the utility did not meet the CPUC's prudency standard. In light of the SDG&E Decision, as with the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional costs related to the Other 2017/2018 Wildfires are probable of recovery through electric rates.

The SDG&E Decision was prior to the adoption of AB 1054 on July 12, 2019, after which date AB 1054 clarified that the CPUC must find a utility to be prudent if the utility's conduct related to the ignition was consistent with actions that a reasonable utility would have undertaken in good faith under similar circumstances, at the relevant point in time, and based on the information available at that time. Further, utilities with a valid safety certification at the time of the relevant wildfire will be presumed to have acted prudently related to a wildfire ignition unless a party in the cost recovery proceeding creates serious doubt as to the reasonableness of the utility's conduct, at which time, the burden shifts back to the utility to prove its

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conduct was prudent. Each of the Post-2018 Wildfires was ignited after July 12, 2019, and SCE has held a valid safety certificate since July 15, 2019. While a California investor-owned utility has not yet sought recovery for uninsured claims and other costs related to wildfires ignited after the adoption of AB 1054, SCE believes that for fires ignited after July 12, 2019, and investor-owned utilities holding a safety certificate at the time of the fire, the CPUC will apply a standard of review similar to that applied by the FERC which presumes all costs requested by an investor-owned utility are reasonable and prudent unless serious doubt as to the reasonableness of the utility's conduct is raised. As such, SCE has concluded, at this time, that both uninsured CPUC-jurisdictional and uninsured FERC-jurisdictional wildfire-related costs related to those Post-2018 Wildfires that it has deferred as regulatory assets are probable of recovery through electric rates. SCE will continue to evaluate the probability of recovery based on available evidence, including regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard under AB 1054, and, for each applicable fire, evidence that could cast serious doubt as to the reasonableness of SCE's conduct relative to that fire.

Wildfire Insurance Coverage

In May 2023, the CPUC allowed SCE to establish an expanded self-insurance program for wildfire-related costs that will be funded through CPUC-jurisdictional rates, with $150 million collected for the second half of 2023 and, in the absence of wildfire-related claims, $300 million collected for 2024. If losses are accrued for wildfire-related claims for wildfires that occur between July 1, 2023 and the end of 2024, customer rates will be increased in subsequent years, as needed, to allow for full recovery of the amounts accrued up to $1.0 billion per policy year, subject to a shareholder contribution of 2.5% of any self-insurance costs ultimately paid exceeding $500 million in any policy year, up to a maximum annual contribution of $12.5 million per policy year. In July 2024, the CPUC issued a decision in the 2025 GRC proceeding authorizing this self-insurance framework to continue through at least 2028, supporting a self-insurance fund of up to $1.0 billion per policy year. SCE's self-insurance program meets its obligation to maintain reasonable insurance coverage under AB 1054 for the January 1, 2024 through December 31, 2024 period.

SCE has approximately $1.0 billion of wildfire-specific insurance coverage for events that occurred during the period July 1, 2022 through June 30, 2023, subject to up to $100 million of self-insured retention and co-insurance per fire, which results in aggregate net coverage of approximately $937 million. Of this coverage, approximately $102 million is provided by EIS and approximately $835 million is provided by other commercial insurance carriers (commercial insurance carriers other than EIS are referred to herein as "Third-Party Commercial Insurers").

SCE's wildfire insurance expense for the July 1, 2022 through June 30, 2023 policy period was approximately $450 million, of which $357 million was paid to Third-Party Commercial Insurers. The difference between the Third-Party Commercial Insurer cost and total cost for the July 1, 2022 through June 30, 2023 policy period was paid in premiums to EIS. Wildfire insurance premiums paid for the July 1, 2022 through June 30, 2023 policy period are being recovered through customer rates. See Note 17 for further information.

Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable.

Environmental Remediation

SCE records its environmental remediation and restoration liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring, and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At June 30, 2024, SCE's recorded estimated minimum liability to remediate its 20 identified material sites (sites with a liability balance at June 30, 2024, in which the upper end of the range of expected costs is at least $1 million) was $242 million, including $157 million related to San Onofre. In addition to these sites, SCE also has 17 immaterial sites with a liability balance as of June 30, 2024, for which the total minimum recorded liability was $4 million. Of the $246 million total environmental remediation liability for SCE, $226 million has been recorded as a regulatory asset. SCE expects to recover $35 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites in this mechanism) and $191 million through proceedings that allow

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SCE to recover up to 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $107 million and $2 million, respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 35 years. Remediation costs for each of the next five years are expected to range from $13 million to $23 million. Costs incurred for the six months ended June 30, 2024 and 2023 were $4 million and $7 million, respectively, and were included in the "Operation and maintenance" expense on Edison International's and SCE's consolidated statements of income.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position, or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

Nuclear Insurance

SCE is a member of Nuclear Electric Insurance Limited ("NEIL"), a mutual insurance company owned by entities with nuclear facilities. NEIL provides insurance for nuclear property damage, including damages caused by acts of terrorism up to specified limits, and for accidental outages for active facilities. The amount of nuclear property damage insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $50 million and $1.1 billion, respectively. If NEIL losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $17 million per year.

Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $560 million for San Onofre and $16.3 billion for Palo Verde. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available through a Facility Form issued by American Nuclear Insurers. SCE withdrew from participation in the secondary insurance pool for San Onofre for offsite liability insurance effective January 5, 2018. Based on its ownership interests in Palo Verde, SCE could be required to pay a maximum of approximately $79 million per nuclear incident for future incidents. However, it would have to pay no more than approximately $12 million per future incident in any one year. Based on its ownership interests in San Onofre and Palo Verde prior to January 5, 2018, SCE could be required to pay a maximum of approximately $255 million per nuclear incident and a maximum of $38 million per year per incident for liabilities arising from events prior to January 5, 2018, although SCE is not aware of any such events.

Note 13. Equity

Common Stock Issuances

As of June 30, 2024, Edison International had not issued any shares through its "at-the-market" ("ATM") program established in August 2022. Under the ATM program, Edison International may sell shares of its common stock having an aggregate sales price of up to $500 million. Edison International has no obligation to sell the remaining shares available under the ATM program.

Edison International continued to settle its ongoing common stock requirements of various internal programs through issuance of new common stock. During the three months ended June 30, 2024, 1,364,543 shares of common stock were issued as stock compensation awards for net cash receipts of $86 million.

During the six months ended June 30, 2024, 2,026,073 shares of common stock were issued as stock compensation awards for net cash receipts of $104 million, 70,246 shares of new common stock were issued in lieu of distributing $5 million to

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shareholders opting to receive dividend payments in the form of additional common stock, 43,300 shares of common stock were issued to employees through the 401(k) defined contribution savings plan for net cash receipts of $3 million as dividend payments and 31,112 shares of common stock were issued to employees through the Employee Stock Purchase Plan for net cash receipts of $2 million.

Preferred Stock

In the first and second quarter of 2024, Edison International repurchased 20,000 shares and 9,000 shares of its Series B Preferred Stock via open market repurchases for $19 million and $9 million at an average price of $952 per share and $967 per share, respectively, including accrued and unpaid dividends. Edison International recognized a total net gain of $1 million from the open market repurchase, reflected in "Preferred stock dividend requirements of Edison International" on the consolidated statements of income.

Preference Stock of SCE

During the second quarter of 2024, SCE issued $350 million of 6.95% Series N preference stock (140,004 shares; cumulative, $2,500 liquidation value) to SCE Trust VIII, a special purpose entity formed to issue trust securities as discussed in Note 3. The Series N preference stock may be redeemed at a premium, in whole, but not in part, at any time prior to May 13, 2029 if certain changes in tax or investment company law or interpretation or applicable rating agency equity credit criteria occur. On or after May 13, 2029, SCE may redeem the Series N shares at par, in whole or in part. The shares are not subject to mandatory redemption. In June 2024, the proceeds were used to redeem $350 million of SCE's Series E Preference Stock.

Note 14. Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss, net of tax, are as follows:



	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Edison International:
Beginning balance	$	(9)	$	(9)	$	(9)	$	(11)
Pension and PBOP:
Reclassified from accumulated other comprehensive loss¹		1		1		1		1
Foreign currency translation adjustments		—		—		—		2
Change		1		1		1		3
Ending Balance	$	(8)	$	(8)	$	(8)	$	(8)
SCE:
Beginning balance	$	(11)	$	(8)	$	(12)	$	(8)
Pension and PBOP:
Reclassified from accumulated other comprehensive loss¹		—		—		1		—
Change		—		—		1		—
Ending Balance	$	(11)	$	(8)	$	(11)	$	(8)

1	These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

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Note 15. Other Income, Net

Other income net of expenses is as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(in millions)	2024		2023		2024		2023
SCE other income (expense):
Equity allowance for funds used during construction	$	49	$	39	$	96	$	75
Increase in cash surrender value of life insurance policies and life insurance benefits		13		9		25		20
Interest income		72		66		136		126
Net periodic benefit income – non-service components		22		26		44		52
Civic, political and related activities and donations		(5)		(7)		(12)		(16)
Other		(4)		(6)		(7)		(10)
Total SCE other income, net		147		127		282		247
Other income (expense) of Edison International Parent and Other:
Net (losses) gains on equity securities		—		—		—		(3)
Interest income and other		1		1		4		3
Total Edison International other income, net	$	148	$	128	$	286	$	247

Note 16. Supplemental Cash Flows Information

Supplemental cash flows information is:


	Edison International				SCE

	Six months ended June 30,
(in millions)	2024		2023		2024		2023
Cash payments (receipts):
Interest, net of amounts capitalized	$	746	$	634	$	607	$	520
Income taxes, net		—		—		—		—
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock		301		283		360		350
Preference stock of SCE		—		8		—		8

SCE's accrued capital expenditures at June 30, 2024 and 2023 were $488 million and $489 million, respectively. Accrued capital expenditures are included in investing activities in the consolidated statements of cash flows in the periods paid.

Note 17. Related-Party Transactions

In July 2022, SCE purchased wildfire liability insurance for premiums of $273 million from EIS, for the period to June 30, 2023. SCE subsequently did not renew or purchase wildfire liability insurance from EIS for additional periods. In lieu of obtaining wildfire liability insurance from the commercial insurance market, SCE implemented its customer-funded wildfire self-insurance program beginning July 1, 2023. For further information, see Note 12. The expected insurance recoveries from previously purchased wildfire-related insurance from EIS included in SCE's consolidated balance sheets were $365 million and $355 million at June 30, 2024 and December 31, 2023, respectively. The expense for wildfire-related insurance premiums paid to EIS was $66 million and $132 million for the three and six months ended June 30, 2023, respectively.

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CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Edison International and SCE, under the supervision and with the participation of Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers, have evaluated the effectiveness of Edison International's and SCE's disclosure controls and procedures (as that term is defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended), respectively, as of the end of the second quarter of 2024. Based on that evaluation, Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers have each concluded that, as of the end of the period, Edison International's and SCE's disclosure controls and procedures, respectively, were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in Edison International's or SCE's internal control over financial reporting, respectively, during the second quarter of 2024 that have materially affected, or are reasonably likely to materially affect, Edison International's or SCE's internal control over financial reporting.

Jointly Owned Utility Plant

Edison International's and SCE's respective scope of evaluation of internal control over financial reporting includes their Jointly Owned Utility Projects as discussed in "Notes to Consolidated Financial Statements—Note 2. Property, Plant and Equipment" in the 2023 Form 10-K.

LEGAL PROCEEDINGS

2017/2018 Wildfire/Mudslide Events

Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed by three categories of plaintiffs: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. As of July 18, 2024, in addition to the outstanding claims of approximately 840 of the approximately 15,000 initial individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs, including CAL OES, outstanding. The litigation could take a number of years to be completely resolved because of the complexity of the matters and number of plaintiffs.

As of July 18, 2024, SCE was aware of approximately 45 pending unsettled lawsuits representing approximately 120 individual plaintiffs related to the Thomas and Koenigstein Fires naming SCE as a defendant. Approximately 20 of the approximately 45 lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. One of the lawsuits was filed as a purported class action. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. SCE and certain of the individual plaintiffs in the Thomas and Koenigstein Fire litigation have been pursuing settlements of claims under a mediation program adopted to promote an efficient and orderly settlement process. As of July 18, 2024, no trials have been set for individual plaintiffs in the TKM litigation.

Approximately 20 of the approximately 45 pending unsettled individual plaintiff lawsuits mentioned in the paragraph above allege that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides, resulting in the plaintiffs' claimed damages. Many of the Montecito Mudslides lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. In addition to other causes of action, some of the Montecito Mudslides lawsuits also allege personal injury and wrongful death.

As of July 18, 2024, SCE was aware of approximately 140 currently pending unsettled lawsuits representing approximately 720 individual plaintiffs related to the Woolsey Fire naming SCE as a defendant. Approximately 120 of the 140 lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. At least one of the lawsuits was filed as a purported class action. The lawsuits, which have been filed in the superior courts of Ventura and Los Angeles Counties allege, among other things, negligence, inverse condemnation, personal injury, wrongful death, trespass, private nuisance, and violations of the public utilities and health and safety codes. SCE and certain of the individual plaintiffs in the Woolsey Fire litigation have been pursuing settlements of claims under a mediation program adopted to promote an efficient

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and orderly settlement process. As of July 18, 2024, a liability trial has been set for March 2025 for CAL OES and a damages trial has been set for individual plaintiffs in December 2024 in the Woolsey Fire litigation.

The Thomas and Koenigstein Fires and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been coordinated in the Los Angeles Superior Court.

For further information, including regarding settlement activity related to the 2017/2018 Wildfire/Mudslide Events, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Environmental Proceedings

Each of Edison International and SCE have elected to disclose environmental proceedings described in Item 103(c)(3)(iii) of Regulation S-K unless it reasonably believes that such proceeding will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $1,000,000.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Share Repurchase Program

On June 26, 2024, the Edison International Board of Directors authorized a stock repurchase program effective July 29, 2024 for repurchase of up to $200 million of its common stock until December 31, 2025 ("Repurchase Program"). The Repurchase Program will be used to offset dilution from common stock issued under Edison International's long-term incentive compensation programs and will be funded using Edison International's working capital.

The timing and the amount of any repurchased common stock will be determined by Edison International's management based on their evaluation of market conditions and other factors. The Repurchase Program may be executed through various methods, including open market purchases, privately negotiated transactions, and other transactions in accordance with applicable securities laws. Any repurchased shares of common stock will be retired. The Repurchase Program does not obligate Edison International to acquire any particular amount of common stock, and it may be suspended or discontinued at any time in its discretion.

Purchases of Equity Securities by Edison International and Affiliated Purchasers

The following table contains information about all purchases of Edison International's common stock made by or on behalf of Edison International in the second quarter of 2024.


	(a) Total Number of Shares (or Units Purchased)	(b) Average Price Paid per Share (or Unit)¹	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1, 2024 to April 30, 2024	65,432	$71.47	-	-
May 1, 2024 to May 31, 2024	38,566	$71.26	-	-
June 1, 2024 to June 30, 2024	1,166	$72.64	-	-
Total	105,163	$71.41	-	-

The shares were purchased by agents acting on Edison International's behalf for delivery to plan participants to fulfill requirements in connection with Edison International's 401(k) Savings Plan and Dividend Reinvestment and Direct Stock Purchase Plan. The shares were purchased in open-market transactions pursuant to plan terms and participant elections.

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The following table contains information about all purchases of Edison International's Series B Preferred Stock made by or on behalf of Edison International in the second quarter of 2024. For further information about Series B Preferred Stock, see "Notes to Consolidated Financial Statements—Note 13. Equity."


	Series	(a) Total Number of Shares (or Units Purchased)	(b) Average Price Paid per Share (or Unit)¹	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1, 2024 to April 30, 2024		-	-	-	-
May 1, 2024 to May 31, 2024		-	-	-	-
June 1, 2024 to June 30, 2024	Series B Preferred Stock	9,000	$966.77	-	-
Total	-	9,000	$966.77	-	-

¹	The prices include the liquidation value and accrued dividends per share.

OTHER INFORMATION

Trading Plans

During the quarter ended June 30, 2024, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).

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EXHIBITS


Exhibit Number		Description

31.1		Certifications of the Chief Executive Officer and Chief Financial Officer of Edison International pursuant to Section 302 of the Sarbanes-Oxley Act

31.2		Certifications of the Chief Executive Officer and Chief Financial Officer of Southern California Edison Company pursuant to Section 302 of the Sarbanes-Oxley Act

32.1		Certifications of the Chief Executive Officer and the Chief Financial Officer of Edison International required by Section 906 of the Sarbanes-Oxley Act

32.2		Certifications of the Chief Executive Officer and the Chief Financial Officer of Southern California Edison Company required by Section 906 of the Sarbanes-Oxley Act

101.1		Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended June 30, 2024, filed on July 25, 2024, formatted in Inline XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

101.2		Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended June 30, 2024, filed on July 25, 2024, formatted in Inline XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

104		The cover page of this report formatted in Inline XBRL (included as Exhibit 101)

Edison International and SCE will furnish a copy of any exhibit listed in the accompanying Exhibit Index upon written request and upon payment to Edison International or SCE of their reasonable expenses of furnishing such exhibit, which shall be limited to photocopying charges and, if mailed to the requesting party, the cost of first-class postage.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

	EDISON INTERNATIONAL		SOUTHERN CALIFORNIA EDISON COMPANY

By:	/s/ Kara G. Ryan	By:	/s/ Kara G. Ryan
	Kara G. Ryan Vice President, Chief Accounting Officer and Controller (Duly Authorized Officer and Principal Accounting Officer)		Kara G. Ryan Vice President, Chief Accounting Officer and Controller (Duly Authorized Officer and Principal Accounting Officer)

Date:	July 25, 2024	Date:	July 25, 2024

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SOUTHERN CALIFORNIA EDISON (SCE-PN) 10-Q2024 Q2 Quarterly report

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