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Regulatory Assets and Liabilities

9 Months Ended

Sep. 30, 2025

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Regulatory Assets

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

(in millions)			September 30, 2025						December 31, 2024
Current:
Regulatory balancing and memorandum accounts			$	2,669					$	2,723
Other			34						25
Total current			2,703						2,748
Long-term:
Deferred income taxes			6,376						5,982
Unamortized investments, net of accumulated amortization			124						115
Unamortized losses on reacquired debt			81						88
Regulatory balancing and memorandum accounts			2,274						867
Environmental remediation			217						222
Recovery assets			1,476						1,512
Other			138						100
Total long-term			10,686						8,886
Total regulatory assets			$	13,389					$	11,634

For more information, see Note 11 of the 2024 Form 10-K.

Regulatory Liabilities

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

(in millions)			September 30, 2025						December 31, 2024
Current:
Regulatory balancing and memorandum accounts			$	1,017					$	1,144
Energy derivatives			54						165
Other			38						38
Total current			1,109						1,347
Long-term:
Costs of removal			2,693						2,520
Deferred income taxes			2,143						2,163
Recoveries in excess of ARO liabilities			1,982						1,748
Regulatory balancing and memorandum accounts			2,175						2,023
Pension and other postretirement benefits			1,708						1,690
Other			35						15
Total long-term			10,736						10,159
Total regulatory liabilities			$	11,845					$	11,506

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:

(in millions)			September 30, 2025						December 31, 2024
Asset (liability)
Energy procurement related costs			$	325					$	(97)
Public purpose and energy efficiency			(2,189)						(1,708)
GRC related balancing accounts1			1,188						976
FERC related balancing accounts			48						125
Wildfire risk mitigation and insurance2			151						741
TKM Settlement cost recovery3			1,619						—
Wildfire and drought restoration4			291						238
Tax accounting memorandum account			(72)						(40)
Other			390						188
Assets, net of liabilities			$	1,751					$	423

1     The GRC related balancing accounts primarily consist of the base revenue requirement balancing account ("BRRBA"), the vegetation management balancing account ("VMBA"), the Wildfire Risk Mitigation balancing account ("WRMBA") and the risk management balancing account ("RMBA").

    The 2025 GRC decision approved the establishment of a two-way Grid Hardening Balancing Account to track the difference between the actual TUG program costs up to the approved mile limit and the authorized amounts, with spending in excess of 110% of authorized amounts subject to reasonableness review. Additionally, the final decision authorized SCE to establish a memorandum account to track and record capital expenditures above the amounts authorized to support SCE's grid readiness for future transportation electrification demand, with cost recovery subject to reasonableness review.

2     The wildfire risk mitigation and insurance regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claim costs related to the Other Wildfire Events that SCE believes are probable of recovery. See Note 12 for further details. The Wildfire Mitigation Plan Memorandum Account is used to track costs incurred to implement SCE's wildfire mitigation plan that are not currently reflected in SCE's revenue requirements. The Fire Risk Mitigation Memorandum Account is used to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's GRCs that are not tracked in any other wildfire-related memorandum account.

3     Cost recoveries authorized under the TKM Settlement Agreement. See Note 12 for more information.

4     The wildfire and drought restoration regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account.

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- Definition

The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit.

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