Edison International 10-Q for FY2026 Q3
Edison International (EIX)
10-Q
2026-10-29
For: 2026-09-30
View Original
Added on
October 29, 2026
About this 10-Q
Edison International filed this 10-Q on October 29, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Edison International’s earnings for the nine months ended September 30, 2026 fell $822 million to $1,789 million, while core earnings rose $77 million to $1,880 million. Additional material Eaton Fire losses are probable but cannot be reasonably estimated. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $4.89B
- down 15.0% from $5.75B a year earlier
- Net income
- $724M
- down 13.0% from net income of $832M a year earlier
- Diluted EPS
- $1.87
- down 13.4% from $2.16 a year earlier
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 | ||||||||
| 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 | |||||||||||||||||
| EDISON INTERNATIONAL | SOUTHERN CALIFORNIA EDISON COMPANY | ||||
| (Address of principal executive offices) | (Address of principal executive offices) | ||||
| (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 | ||||||
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 | þ | No | o | Southern California Edison Company | þ | No | o | |||||||||||||||||||||||||
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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | ||||||||||||||||||||||||||||||||
| Edison International | þ | No | o | Southern California Edison Company | þ | No | o | |||||||||||||||||||||||||
Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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-2 of the Exchange Act. | |||||||||||||||||
| Edison International | Accelerated Filer | Non-accelerated Filer | Smaller Reporting Company | Emerging growth company | |||||||||||||
| þ | o | o | |||||||||||||||
| Southern California Edison Company | Large Accelerated Filer | Accelerated Filer | Smaller Reporting Company | Emerging growth company | |||||||||||||
| o | o | þ | |||||||||||||||
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 | o | Southern California Edison Company | o | |||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | ||||||||||||||||||||||||||||||||
| Edison International | Yes | o | | þ | Southern California Edison Company | Yes | o | þ | ||||||||||||||||||||||||
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 October 22, 2026: | |||||
| Edison International | |||||
| Southern California Edison Company | |||||
TABLE OF CONTENTS
| SEC Form 10-Q | ||||||||
| Reference Number | ||||||||
i
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.
ii
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 | |||||||
| 2025 Form 10-K | Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2025 | |||||||
| 2025 MD&A | Edison International's and SCE's MD&A for the calendar year 2025, which was included in the 2025 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 | |||||||
| ARO(s) | asset retirement obligation(s) | |||||||
| CAISO | California Independent System Operator | |||||||
Cal Advocates | the California Public Advocates Office | |||||||
CAL FIRE | the California Department of Forestry and Fire Protection | |||||||
CAL OES | the California Governor's Office of Emergency Services | |||||||
| California Wildfire Legislation | AB 1054 and SB 254, collectively | |||||||
| Capital Structure Compliance Period | January 1, 2026 to December 31, 2028, 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 | |||||||
CEA | California Earthquake Authority, the administrator of the Wildfire Fund | |||||||
Continuation Account | a new account within the Wildfire Fund established under SB 254 that may be available for fires ignited on or after the SB 254 Effective Date | |||||||
| CPUC | California Public Utilities Commission | |||||||
| DERs | distributed energy resources | |||||||
| DGC | the decommissioning general contractor engaged by SCE to undertake a significant scope of decommissioning activities at San Onofre | |||||||
Eaton Fire | a wind-driven fire that originated in Los Angeles County in January 2025 | |||||||
| Eaton Subrogation Settlement | a settlement agreement entered into between SCE and an insurance claimant in the Eaton Fire litigation in September 2025 | |||||||
| 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 by increasing the speed with which a protective device reacts to most fault currents | |||||||
| 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 | |||||||
Initial Account | an account within the Wildfire Fund established under AB 1054 available for fires ignited before the SB 254 Effective Date | |||||||
| 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 | |||||||
LAFD | the Los Angeles Fire Department | |||||||
iii
Liability Cap | a cap on the aggregate requirement to reimburse the Wildfire 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, for the year of the applicable wildfire's ignition | |||||||
| MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations in this report | |||||||
| 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. | |||||||
| 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 Wildfire Events | Collectively, all the wildfires that originated in Southern California in and after 2017 but before 2025 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 | |||||||
| 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 | |||||||
| 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 | |||||||
SB 254 | California Senate Bill 254, executed by the governor of California on September 19, 2025 | |||||||
SB 254 Effective Date | September 19, 2025 | |||||||
SB 254 Excluded Capital Expenditures | $2.9 billion in wildfire risk mitigation capital expenditures, approved on or after January 1, 2026, that SCE expects it will be required to exclude from the equity portion of SCE's rate base as required under SB 254 | |||||||
| SCE | Southern California Edison Company, a wholly-owned subsidiary of Edison International | |||||||
| 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 | |||||||
| TKM Settlement Agreement | a settlement agreement entered into between SCE and the California Public Advocates Office in August 2024 in the CPUC-jurisdictional rate recovery proceeding related to TKM | |||||||
Trio | Edison Energy, LLC, a former indirect wholly-owned non-utility subsidiary of Edison International doing business as "Trio" | |||||||
| WMP | a wildfire mitigation plan required to be filed 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 Fund | the insurance fund established under AB 1054 and expanded under SB 254 | |||||||
Wildfire Recovery Compensation Program | a program designed to enable eligible individuals and businesses impacted by the Eaton Fire to seek expedited resolution of their claims, launched by SCE in the fall of 2025 | |||||||
iv
| Woolsey Fire | a wind-driven fire that originated in Ventura County in November 2018 | |||||||
| Woolsey Settlement Agreement | a settlement agreement entered into between SCE and intervenors in September 2025 in the CPUC-jurisdictional rate recovery proceeding related to the Woolsey Fire | |||||||
v
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," "preliminary," 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 costs (including amounts paid for self-insured retention and co-insurance, and amounts not recoverable from the Wildfire Fund), and costs incurred for wildfire restoration efforts and to mitigate the risk of utility equipment causing future wildfires;
•the cybersecurity of Edison International's and SCE's critical information technology systems for grid control and business, employee and customer data, and the physical security of Edison International's and SCE's critical assets and personnel;
•risks associated with the construction, operation, and maintenance of electrical facilities, including worker, contractor, 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;
•impact of affordability of customer rates on SCE's ability to execute its strategy, including the impact of lower‑than‑expected load growth and higher operating and capital costs (due to factors such as supply chain constraints, tariffs, inflation, and rising interest rates), which could affect SCE’s ability to obtain regulatory approval of, or cost recovery for, operations and maintenance expenses, proposed capital investment projects, and authorized returns on equity, as well as influence legislative actions;
•ability of SCE to update its grid infrastructure to maintain system integrity and reliability, and meet electrification needs;
•ability of SCE to implement its operational and strategic plans, including its WMP, its target energization times and capital investment program, including challenges related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, changes in the CAISO's transmission plans, and governmental approvals;
•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 the California Wildfire Legislation, together with any future legislation, 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 or contributing cause, including the longevity of the Wildfire Fund and the CPUC's interpretation of and actions under the California Wildfire Legislation, including its interpretation of the clarified prudency standard;
•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, the California legislature and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, approval of regulatory proceeding settlements, determinations of authorized rates of return or return on equity, prudency determinations for wildfire-related costs, the availability and sufficiency of the Wildfire Fund and related cost recovery mechanisms, issuance of SCE's wildfire safety certification, reforming wildfire-related liability protections available to California investor-owned utilities, wildfire mitigation efforts, approval and implementation of
1
electrification programs, restrictions on the issuance of dividends, and delays in executive, regulatory and legislative actions;
•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;
•potential for penalties or disallowances for non-compliance with applicable laws and regulations, including fines, penalties and disallowances related to customer notifications and 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, accelerated coastal erosion, droughts, high wind events and extreme heat events and other natural disasters (such as earthquakes), which could cause, among other things, worker and public safety issues, property damage, outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs;
•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;
•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, including downgrades that may be made if the California legislature does not timely adopt legislation that effectively mitigates the significant wildfire-related risk faced by California investor-owned utilities;
•ability of Edison International or SCE to borrow funds and access bank and capital markets on reasonable terms;
•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 rates of inflation (including whether inflation-related adjustments to SCE's authorized revenues allowed by the public utility regulators are commensurate with inflation rates), and changes in interest rates and potential future adjustments to SCE's ROE based on changes in Moody's utility bond rate index;
•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 2025 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 2025 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 edisoninvestor.com in order to 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 three and nine months ended September 30, 2026, discusses material changes in the condensed consolidated financial condition, results of operations and other developments of Edison International and SCE since
2
December 31, 2025, and as compared to the three and nine months ended September 30, 2025. This discussion presumes that the reader has read or has access to the 2025 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.
3
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, which 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.
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 available 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. SCE implemented a customer-funded wildfire self-insurance program in 2023. With the commencement of this program, Edison International and SCE no longer consider wildfire-related claim losses to be representative of ongoing earnings and treat such costs as non-core items.
In the second quarter of 2026, Edison International completed the disposition of Trio, a former indirect wholly-owned subsidiary. Trio's business activities have not been material to Edison International. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information. As a result of the disposition, Trio-related income and expenses, including post-closing adjustments, are classified as non-core items.
4
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to Edison International | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCE | $ | 809 | $ | 925 | $ | (116) | $ | 2,071 | $ | 2,935 | $ | (864) | |||||||||||||||||||||||||||||||||||||||||
| Edison International Parent and Other | (85) | (93) | 8 | (282) | (324) | 42 | |||||||||||||||||||||||||||||||||||||||||||||||
| Edison International | 724 | 832 | (108) | 1,789 | 2,611 | (822) | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Non-core items | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wildfire-related (claims and expenses), net of recoveries | 18 | (5) | 23 | 27 | 1,338 | (1,311) | |||||||||||||||||||||||||||||||||||||||||||||||
| Wildfire Fund expense | (36) | (36) | — | (107) | (108) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net charges related to disallowed historical capital expenditures in SCE's 2025 GRC decision | — | (76) | 76 | — | (76) | 76 | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense)1 | 5 | 48 | (43) | 22 | (307) | 329 | |||||||||||||||||||||||||||||||||||||||||||||||
| SCE non-core items | (13) | (69) | 56 | (58) | 847 | (905) | |||||||||||||||||||||||||||||||||||||||||||||||
| Edison International Parent and Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trio disposition and related losses2 | (1) | — | (1) | (37) | — | (37) | |||||||||||||||||||||||||||||||||||||||||||||||
| Changes to wildfire claims and expenses insured by EIS | — | — | — | 1 | (50) | 51 | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit1 | — | — | — | 3 | 11 | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Edison International Parent and Other non-core items | (1) | — | (1) | (33) | (39) | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total non-core items | (14) | (69) | 55 | (91) | 808 | (899) | |||||||||||||||||||||||||||||||||||||||||||||||
| Core earnings (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCE | 822 | 994 | (172) | 2,129 | 2,088 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||
| Edison International Parent and Other | (84) | (93) | 9 | (249) | (285) | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
| Edison International | $ | 738 | $ | 901 | $ | (163) | $ | 1,880 | $ | 1,803 | $ | 77 | |||||||||||||||||||||||||||||||||||||||||
1SCE and Edison International Parent and Other non-core items are tax-effected at an estimated statutory rate of approximately 28%; wildfire claims and expenses insured by EIS are tax-effected at the federal statutory rate of 21%. No net tax benefit was recognized for the Trio disposition loss as the related tax benefits are not expected to be realized.
2Trio's after-tax operating losses of $4 million from the first quarter of 2026 were recast to non-core and included in the nine months ended September 30, 2026 amount. Trio's after-tax operating losses of $1 million and $8 million for the three and nine months ended September 30, 2025, respectively, were included in core earnings as originally reported.
Edison International's third quarter 2026 earnings decreased $108 million from the third quarter of 2025, resulting from a decrease in SCE's earnings of $116 million, partially offset by a decrease in Edison International Parent and Other's loss of $8 million. SCE's lower net income reflected $172 million of lower core earnings and a $56 million lower non-core loss. Edison International Parent and Other's loss decreased by $8 million due to $9 million of lower core loss compared to 2025, partially offset by a $1 million non-core loss in 2026.
Edison International's earnings for the nine months ended September 30, 2026 decreased by $822 million compared to the same period in 2025, resulting from a decrease in SCE's earnings of $864 million, partially offset by a decrease in Edison International Parent and Other's loss of $42 million. SCE's lower net income reflected a $58 million non-core loss in 2026 compared to an $847 million non-core benefit in 2025, partially offset by $41 million of higher core earnings. Edison International Parent and Other's loss decreased by $42 million due to $36 million of lower core loss and $6 million of lower non-core loss.
The decrease in SCE's core earnings for the three months ended September 30, 2026, compared to the same period in 2025, primarily reflected earnings recognized in the third quarter of 2025 upon implementation of the 2025 GRC final decision, which was retroactive to January 1, 2025, partially offset by higher revenue resulting from the escalation mechanism authorized in the 2025 GRC final decision. The increase in SCE's core earnings for the nine months ended September 30, 2026, compared to the same period in 2025, was primarily due to higher revenue resulting from the escalation mechanism authorized in the 2025 GRC final decision, partially offset by the absence of a benefit to interest expense related to cost recoveries authorized under the TKM Settlement Agreement in 2025.
5
The decrease in Edison International Parent and Other's core loss for the three and nine months ended September 30, 2026, was primarily due to lower preferred stock dividends, partially offset by higher interest expense.
Consolidated non-core items for the nine months ended September 30, 2026 and 2025 for Edison International included:
•Wildfire-related recoveries, net of claims and expenses:
•Net earnings of $27 million ($19 million after-tax) recorded in 2026 primarily due to expected recoveries and reimbursements for costs incurred in prior years, partially offset by claims and legal expenses associated with Other Wildfire Events.
•Net earnings of $1,338 million ($964 million after-tax) in 2025 primarily related to the TKM Settlement Agreement and insurance reimbursements related to Other Wildfire Events.
See "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.
•Charges of $107 million ($77 million after-tax) and $108 million ($78 million after-tax) recorded in 2026 and 2025, respectively, from amortization of SCE's contributions to the Wildfire Fund. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.
•Net charges of $76 million ($39 million after-tax) recorded in 2025, primarily related to an $88 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision, mainly related to the rooftop solar photovoltaic program. This was partially offset by the recognition of a $12 million clean energy subsidy previously received for this program.
•Losses of $37 million ($34 million after-tax) in 2026 related to the disposition of Trio, including Trio's operating losses, the loss on disposition, and related transaction and employee costs. See "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.
•Net earnings of $1 million ($1 million after-tax) recorded in 2026 primarily due to updated estimates of claims accruals, net of legal expenses, and charges of $50 million ($39 million after-tax) recorded in 2025, both related to wildfire claims insured by EIS. See "Notes to Condensed 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.
Capital Program
Total capital expenditures (including accruals) were $5.0 billion and $4.7 billion for the nine months ended September 30, 2026 and 2025, respectively. As discussed in the 2025 Form 10-K, SCE forecasts total capital expenditures ranging from $37.5 billion to $40.6 billion for 2026 – 2030, and weighted average annual rate base from $50.8 billion to $67.9 billion for 2026 – 2030. These capital program and rate base projections incorporate the planned CPUC-jurisdictional spending as informed by the 2025 GRC final decision and expected FERC capital expenditures, see "Liquidity and Capital Resources—SCE—Capital Investment Plan" below and "Management Overview—Capital Program" in the 2025 MD&A.
In May 2026, the CAISO approved its 2025-2026 Transmission Plan, which identified new transmission projects expected to be constructed by SCE and finalized the CAISO's reassessment of certain SCE projects from the 2022-2023 Transmission Plan. As a result of this reassessment, certain previously approved projects were removed or modified and offset by newly approved projects. SCE's total anticipated capital expenditures for CAISO-approved transmission projects remain approximately $3 billion, of which approximately $1 billion is included in the total forecasted capital expenditures from 2026 – 2030. For further information, see "Management Overview—Capital Program" in the 2025 MD&A.
Southern California Wildfires
Unprecedented weather conditions in California due to climate change and greater concentrations of residents in high-fire risk areas, among other things, have contributed to wildfires, including those where SCE's equipment has been alleged to be associated with the fire's ignition, that have caused loss of life and substantial damage in SCE's service area.
SCE continues to implement its WMP to reduce the risk of SCE equipment contributing to the ignition of wildfires. In addition to the investments and operational activities under its WMP, SCE uses its PSPS program to proactively de-energize power lines as a last resort to mitigate the risk of significant wildfires during extreme weather events. California has also increased its investment in wildfire prevention and fire suppression capabilities. Yet, the potential for catastrophic wildfire activity in SCE's service area still exists. In February 2026, the OEIS issued a final decision approving SCE’s 2026
6
– 2028 WMP. In March 2026, the OEIS issued SCE's safety certification which is valid until the later of March 2, 2027, and when OEIS acts on SCE's timely submittal of a request for its next safety certification.
In April 2026, the CEA submitted to the California Legislature and the Governor a report required by SB 254 that evaluates California’s approach to natural catastrophe risk, including wildfires. The report identifies increasing natural catastrophe risk driven by climate‑related factors, development in wildfire‑prone areas, fuel conditions, and other systematic factors, and highlights challenges in wildfire mitigation, insurance availability, liability allocation, and post‑event recovery. The report observes that failure to address escalating wildfire risk would prolong recovery for affected communities, significantly increase electric utility costs, driving higher customer rates, and also could elevate insurance premiums statewide. The report further observes that inaction would expose SCE to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure. These dynamics would exacerbate affordability pressures, undermine market stability, and impede SCE's ability to support long‑term reliability and California's climate‑related objectives.
Against this backdrop, the report presented a framework of policy options organized around three non‑exclusive pathways: committing to community‑level wildfire mitigation, including measures to reduce the severity and scale of catastrophic events through coordinated community‑based risk reduction, home‑ and neighborhood‑level hardening, and risk-informed targeting of mitigation investments; equitably allocating catastrophe burdens among stakeholders, including through insurance and liability‑related mechanisms such as insurance market reforms, quicker compensation and claims‑handling structures, and potential changes to utility wildfire liability frameworks; and defining potential state roles in catastrophe resilience, including options such as expanded or restructured catastrophe financing mechanisms, state‑level risk pooling or backstops, and other approaches intended to address extreme loss events.
The report discusses options with varying implementation timeframes and fiscal impacts and does not recommend or endorse any specific policy approach. The 2025-2026 California legislative session concluded without enacting legislation that addressed any of the policy options identified in the April 2026 CEA report. Edison International and SCE continue to engage with a broad group of stakeholders in the legislative process to improve understanding of the consequences of inaction and help move the process forward with a sense of urgency. However, neither Edison International nor SCE can predict whether or when there will be a comprehensive economy-wide solution mitigating the significant risk faced by California investor-owned utilities related to wildfires.
Eaton Fire
In January 2025, several wind-driven wildfires impacted portions of SCE's service area, causing loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. One of the largest of these wildfires, the Eaton Fire, ignited in SCE's service area in Los Angeles County and spread due to a number of contributing factors under conditions of an extreme Santa Ana windstorm.
Multiple lawsuits related to the Eaton Fire have been initiated against SCE and Edison International by individual plaintiffs, subrogation plaintiffs, and public entity plaintiffs. Bellwether jury trials in the Eaton Fire litigation have been set for January, May, and September 2027. SCE has filed a motion requesting continuation of the January 2027 trial to June 2027. In January 2026, SCE filed a cross-complaint against certain public and private entities whose actions or inaction may have caused, contributed to or exacerbated the losses that resulted from the fire.
The Los Angeles County Fire Department (the “LACoFD”) led the investigation into the origin and cause of the Eaton Fire, with the assistance of CAL FIRE, and has identified a preliminary area of origin of the fire. In August 2026, the LACoFD and CAL FIRE released initial and supplemental Eaton Fire investigation reports (the “Eaton Reports”) that concluded that the ignition was caused when an electrical arcing event took place on a de-energized idle SCE transmission facility in the preliminary area of origin causing ejected hot metal particles to fall and ignite dry vegetation below the facility.
SCE’s internal review into the facts and circumstances of the Eaton Fire is complex and ongoing. SCE's review includes ongoing inspections of its facilities and records and of third-party information and testing. While SCE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, a viable explanation is that a de-energized idle SCE transmission facility in the preliminary area of origin was associated with the ignition of the fire, and SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment was associated with the ignition of the Eaton Fire. SCE has been pursuing settlement of claims through its Wildfire Recovery Compensation Program, a program launched in October 2025 with an announced application deadline of November 2026, and designed to enable eligible individuals and businesses impacted by the Eaton Fire to seek expedited resolution of their claims.
The SED is also conducting an investigation with respect to the Eaton Fire. In addition, Edison International and SCE are also aware of an ongoing investigation by the Los Angeles District Attorney's Office of the Eaton Fire for the purpose of
7
determining whether any criminal violations might have occurred. SCE could be subject to material fines, penalties, or restitution if it is determined that it failed to comply with applicable laws and regulations. SCE believes that there is no basis for a finding of felony liability with regard to the Eaton Fire. Any fines and penalties incurred in connection with the Eaton Fire will not be recoverable from insurance, from the Wildfire Fund, or through electric rates.
SCE has entered into settlements with insurance claimants and with individual and business claimants under its Wildfire Recovery Compensation Program related to the Eaton Fire. As of September 30, 2026, SCE had recorded $1.8 billion in losses related to these settlements. SCE had also recorded expected recoveries from customer-funded self-insurance of $917 million, from the Wildfire Fund of $859 million, and through FERC electric rates of $70 million related to the settlements. In total, through September 30, 2026, the net after-tax charge to earnings recorded related to the settlements was $9 million, the after-tax impact of the required $12.5 million shareholder contribution related to SCE's customer-funded self-insurance coverage.
In light of pending litigation, it is probable that Edison International and SCE will incur additional material losses in connection with the Eaton Fire. Given, among other things, the complexities associated with estimating damages, uncertainties regarding the ultimate number and varying types of claims and the interrelationship among the claims, uncertainties related to the sufficiency of insurance held by plaintiffs and potential plaintiffs, and uncertainties related to litigation processes and the Wildfire Recovery Compensation Program, Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred in connection with the Eaton Fire.
SCE exhausted the $1.0 billion of self-insurance recoveries available for losses related to the Eaton Fire as a result of costs incurred and settlements entered into as of February 11, 2026. SCE will be reimbursed for losses incurred in excess of $1.0 billion for eligible claims for third-party damages related to the Eaton Fire from the Initial Account, subject to approval of the fund administrator and the Initial Account's claims-paying capacity. The fund administrator has reported that at least $21 billion in the fund's claims-paying capacity will be available for the Eaton Fire. For more information about recoveries under the Wildfire Fund, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides—Recoveries."
SCE will file an application with the CPUC for review of its costs and expenses related to the Eaton Fire after it has resolved all or, if authorized by the CPUC, substantially all third-party damage claims and cross-claims related to the fire, or upon earlier request of the fund administrator. Because SCE held a valid safety certification at the time of the Eaton Fire, SCE will be presumed to have acted prudently unless a party in the proceeding creates "serious doubt" as to the reasonableness of its conduct, in which case SCE will have the burden of dispelling that doubt and proving its conduct was prudent. The prudency standard does not necessitate perfect conduct and California Wildfire Legislation requires that the CPUC allow recovery if it determines that SCE's conduct related to the ignition of the Eaton Fire was consistent with actions of a reasonable utility. SCE believes that the CPUC's determination regarding the reasonableness of its ignition-related conduct should be based on an evaluation of the reasonableness of its overall policies, systems, and practices. As of October 22, 2026, the CPUC has not yet issued a final decision applying the California Wildfire Legislation prudency framework to a wildfire cost-recovery proceeding.
SCE believes that it is a reasonable operator of its electric system. Based on the information it has reviewed, SCE believes that it will be able to make a good faith showing that its conduct with respect to its transmission facilities in the preliminary area of origin was consistent with the actions of a reasonable utility.
The CPUC will determine the prudency of SCE's ignition-related conduct in a formal proceeding. If the CPUC finds that SCE's conduct related to the ignition of the Eaton Fire was not prudent, it may nevertheless allow cost recovery in full or in part taking into account factors both within and beyond SCE's control that may have exacerbated the costs, including, for example, winds, humidity, temperature, emergency response, evacuation timing and availability of firefighting resources. Because SCE held a safety certification at the time of the ignition, it will be required to reimburse the Initial Account only for amounts disallowed by the CPUC up to the applicable Liability Cap of approximately $4.3 billion, unless the fund administrator finds that SCE's actions or inactions relative to the ignition of the Eaton Fire constitute conscious or willful disregard of the rights and safety of others, in which case SCE will be required to reimburse the Initial Account for all withdrawn amounts that the CPUC disallowed. SCE believes that there is no basis for a finding of conscious or willful disregard of the rights and safety of others with regard to the Eaton Fire.
SCE will be able to seek recovery of prudently incurred uninsured wildfire costs not covered by the Initial Account, assessed under the prudency standard clarified under the California Wildfire Legislation, through electric rates.
For further information on Southern California Wildfires, see "MD&A—Management Overview—Southern California Wildfires and Mudslides," "Risk Factors," "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Wildfire Fund," "Business—Southern California Wildfires" and "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in the 2025 Form 10-K; and "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant
8
Accounting Policies—Wildfire Fund" and "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in this report.
9
RESULTS OF OPERATIONS
SCE
The following discusses SCE's condensed consolidated statements of income for the three and nine months ended September 30, 2026 and 2025. In general, expenses SCE is authorized to pass through directly to customers (such as purchased power and fuel expenses, flow-through taxes, as well as costs incurred for various programs and activities, such as public purpose programs and vegetation management activities) and the corresponding amount of revenues collected to recover those pass-through costs do not impact net income.
The following tables summarize SCE's results of operations for the periods indicated.
Three months ended September 30, 2026 versus September 30, 2025
| Three months ended September 30, | Favorable (Unfavorable) | |||||||||||||
| (in millions) | 2026 | 2025 | 2026 to 2025 | |||||||||||
| Operating revenue | $ | 4,887 | $ | 5,740 | $ | (853) | ||||||||
| Purchased power and fuel | 1,687 | 1,701 | 14 | |||||||||||
| Operation and maintenance | 1,126 | 1,153 | 27 | |||||||||||
| Wildfire-related claims, net of recoveries | 8 | 295 | 287 | |||||||||||
| Wildfire Fund expense | 36 | 36 | — | |||||||||||
| Depreciation and amortization | 853 | 861 | 8 | |||||||||||
| Property and other taxes | 179 | 160 | (19) | |||||||||||
| Asset impairment and other | 1 | 88 | 87 | |||||||||||
| Total operating expenses | 3,890 | 4,294 | 404 | |||||||||||
| Operating income | 997 | 1,446 | (449) | |||||||||||
| Interest expense | (446) | (403) | (43) | |||||||||||
| Other income, net | 113 | 119 | (6) | |||||||||||
| Income before income taxes | 664 | 1,162 | (498) | |||||||||||
| Income tax (benefit) expense | (170) | 203 | 373 | |||||||||||
| Net income | 834 | 959 | (125) | |||||||||||
| Less: Preference stock dividend requirements | 25 | 34 | 9 | |||||||||||
| Net income available to common stock | $ | 809 | $ | 925 | $ | (116) | ||||||||
Operating Revenue
A decrease in operating revenue of $853 million was primarily due to:
•A decrease in revenue of $506 million related to net lower expenses that are passed through to customers, which mainly included decreases in:
•Wildfire-related claims, net of recoveries, of $266 million;
•Income tax expense of $248 million;
•Operation and maintenance expense of $56 million;
•Purchased power and fuel expense of $14 million;
partially offset by increases in:
•Interest expense of $45 million;
•Depreciation and amortization expense of $34 million;
•A decrease in revenue of $330 million associated with the 2025 GRC final decision, primarily reflecting higher revenue recognized in the third quarter of 2025 upon implementation of the decision, which was retroactive to
10
January 1, 2025, partially offset by an increase in revenue from the 2026 escalation mechanism set forth in the decision.
Purchased Power and Fuel
A decrease in purchased power and fuel costs of $14 million was primarily due to higher CAISO settlement credits and higher congestion revenue rights credits, partially offset by higher capacity costs (offset in "Operating Revenue" above).
Operation and Maintenance
A decrease in operation and maintenance expense of $27 million was primarily due to a net decrease of $56 million in pass-through costs (offset in "Operating Revenue" above), which is mainly related to the recognition of previously deferred wildfire mitigation and vegetation management costs authorized for recovery in 2025.
Wildfire-related Claims, Net of Recoveries
A decrease of $287 million in wildfire-related claims, net of recoveries, was primarily due to:
•$266 million primarily related to wildfire claim costs recorded in 2025 for the Eaton Subrogation Settlement. These costs were covered by customer-funded wildfire self-insurance and expected FERC recovery (both offset in "Operating Revenue" above);
•Benefits of $21 million mainly due to expected recoveries and reimbursement for costs incurred in prior years related to Other Wildfire Events.
For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."
Depreciation and Amortization
A decrease in depreciation and amortization expense of $8 million reflected $42 million of higher depreciation expense in 2025, primarily related to the implementation of the 2025 GRC final decision, which was retroactive to January 1, 2025, partially offset by $34 million of higher pass-through costs mainly due to higher FERC-related costs (offset in "Operating Revenue" above).
Property and Other Taxes
An increase in property and other taxes of $19 million was primarily due to higher assessed property values from higher plant balances.
Asset Impairment and Other
A decrease in asset impairment and other of $87 million was primarily due to a charge of $88 million recorded in 2025 related to impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision.
Interest Expense
An increase in interest expense of $43 million was primarily due to $45 million of higher pass-through costs mainly associated with securitization of costs approved for recovery under the TKM and Woolsey Settlement Agreements (offset in "Operating Revenue" above).
Income Taxes
A decrease in income tax expense of $373 million was primarily due to $145 million of lower tax expense resulting from lower pre-tax income and $228 million of higher flow-through tax benefits that were passed through to customers (offset by the corresponding pre-tax amount in "Operating Revenue" above). The flow-through tax benefits include $236 million recorded in 2026 upon regulatory approval to return the net proceeds, with interest, to customers from the 2025 monetization of investment tax credits generated by utility-owned energy storage projects and nuclear production tax credits. See "Notes to Condensed Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate.
11
Nine months ended September 30, 2026 versus September 30, 2025
| Nine months ended September 30, | Favorable (Unfavorable) | |||||||||||||
| (in millions) | 2026 | 2025 | 2026 to 2025 | |||||||||||
| Operating revenue | $ | 13,331 | $ | 14,074 | $ | (743) | ||||||||
| Purchased power and fuel | 3,794 | 3,905 | 111 | |||||||||||
| Operation and maintenance | 3,165 | 3,668 | 503 | |||||||||||
| Wildfire-related claims, net of (recoveries) | 22 | (1,060) | (1,082) | |||||||||||
| Wildfire Fund expense | 107 | 108 | 1 | |||||||||||
| Depreciation and amortization | 2,519 | 2,427 | (92) | |||||||||||
| Property and other taxes | 526 | 492 | (34) | |||||||||||
| Asset impairment and other | (1) | 96 | 97 | |||||||||||
| Total operating expenses | 10,132 | 9,636 | (496) | |||||||||||
| Operating income | 3,199 | 4,438 | (1,239) | |||||||||||
| Interest expense | (1,291) | (1,044) | (247) | |||||||||||
| Other income, net | 351 | 347 | 4 | |||||||||||
| Income before income taxes | 2,259 | 3,741 | (1,482) | |||||||||||
| Income tax expense | 108 | 705 | 597 | |||||||||||
| Net income | 2,151 | 3,036 | (885) | |||||||||||
| Less: Preference stock dividend requirements | 80 | 101 | 21 | |||||||||||
| Net income available to common stock | $ | 2,071 | $ | 2,935 | $ | (864) | ||||||||
Operating Revenue
A decrease in operating revenue of $743 million was primarily due to:
•A decrease in revenue of $922 million related to net lower expenses that are passed through to customers, which mainly included decreases in:
•Operation and maintenance expense of $463 million;
•Wildfire-related claims, net of recoveries, of $240 million;
•Income tax expense of $235 million;
•Purchased power and fuel expense of $111 million;
and increases in:
•Other income of $14 million;
partially offset by increases in:
•Interest expense of $87 million;
•Depreciation and amortization expense of $45 million;
•Property and other taxes of $9 million;
•A decrease in revenue of $76 million primarily due to the recognition of return on wildfire-related balancing account rate base resulting from regulatory decisions received in the second quarter of 2025;
partially offset by:
•An increase in revenue of $255 million primarily driven by the 2026 escalation mechanism set forth in the 2025 GRC decision.
12
Purchased Power and Fuel
A decrease in purchased power and fuel costs of $111 million was primarily due to lower energy prices, higher CAISO settlement credits and higher congestion revenue rights credits, partially offset by higher capacity costs (offset in "Operating Revenue" above).
Operation and Maintenance
A decrease in operation and maintenance expense of $503 million was primarily due to:
•A net decrease of $463 million pass-through costs (offset in "Operating Revenue" above), which is mainly related to the recognition of previously deferred wildfire mitigation and vegetation management costs authorized for recovery in 2025;
•A charge of $62 million recorded in 2025 primarily associated with disallowed historical expenses related to 2021 GRC wildfire mitigation memorandum account balances.
Wildfire-related Claims, Net of Recoveries
A decrease in recoveries of wildfire-related claims of $1,082 million was primarily due to:
•$1,341 million claim costs recovery authorized and recorded in 2025 under the TKM Settlement Agreement;
•$14 million insurance reimbursements recorded in 2025 related to Other Wildfire Events;
partially offset by:
•$240 million primarily related to wildfire claim costs recorded in 2025 for the Eaton Subrogation Settlement. These costs were covered by customer-funded wildfire self-insurance and expected FERC recovery (both offset in "Operating Revenue" above);
•Benefits of $33 million mainly due to expected recoveries and reimbursements for costs incurred in prior years related to Other Wildfire Events.
For further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."
Depreciation and Amortization
An increase in depreciation and amortization expense of $92 million was primarily due to higher plant balances, $45 million of which were pass-through costs (offset in "Operating Revenue" above).
Property and Other Taxes
An increase in property and other taxes of $34 million was primarily related to higher assessed property values and $9 million of higher pass-through costs (offset in "Operating Revenue" above).
Asset Impairment and Other
A decrease in asset impairment and other of $97 million was primarily due to a charge of $88 million recorded in 2025 related to impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision.
Interest Expense
An increase in interest expense of $247 million was primarily due to:
•$171 million cost recovery authorized and recorded in 2025 under the TKM Settlement Agreement;
•$87 million pass-through costs mainly associated with securitization of costs approved for recovery under the TKM and Woolsey Settlement Agreements (offset in "Operating Revenue" above).
Other Income, Net
An increase in other income of $4 million was primarily due to an increase in equity allowance for funds used during construction and $14 million of higher pass-through benefits, mainly reflecting an increase in PBOP non-service benefits
13
(offset in "Operating Revenue" above), partially offset by lower interest income driven by balancing account undercollection balances and lower insurance benefits.
Income Taxes
A decrease in income tax expense of $597 million was primarily due to $417 million of lower tax expense resulting from lower pre-tax income and $180 million of higher flow-through tax benefits that were passed through to customers (offset by the corresponding pre-tax amount in "Operating Revenue" above). The flow-through tax benefits include $236 million recorded in 2026 upon regulatory approval to return the net proceeds, with interest, to customers from the 2025 monetization of investment tax credits generated by utility-owned energy storage projects and nuclear production tax credits. See "Notes to Condensed Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate.
Preference Stock Dividend Requirements
A decrease in preference stock dividend requirements of $21 million was due to a lower amount of outstanding preference stock following redemptions in 2025.
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.
Loss from Operations
The following table summarizes the results of Edison International Parent and Other:
| Three months ended September 30, | Favorable (Unfavorable) | Nine months ended September 30, | Favorable (Unfavorable) | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 to 2025 | 2026 | 2025 | 2026 to 2025 | |||||||||||||||||||||||
| Edison International Parent and Other net loss | $ | (83) | $ | (71) | $ | (12) | $ | (269) | $ | (258) | $ | (11) | |||||||||||||||||
| Less: Preferred stock dividend requirements | 2 | 22 | 20 | 13 | 66 | 53 | |||||||||||||||||||||||
| Edison International Parent and Other net loss available to common shareholders | $ | (85) | $ | (93) | $ | 8 | $ | (282) | $ | (324) | $ | 42 | |||||||||||||||||
The net loss available to common shareholders from operations of Edison International Parent and Other decreased $8 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower preferred stock dividends, partially offset by higher interest expense.
The net loss available to common shareholders from operations of Edison International Parent and Other decreased $42 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to lower preferred stock dividends and lower expenses from wildfire claims insured by an EIS insurance contract (see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies and Note 16. Related-Party Transactions" for further information), partially offset by the Trio disposition and related losses and higher interest expense.
14
LIQUIDITY AND CAPITAL RESOURCES
SCE
SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its operating 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, capital market and bank financings, and equity contributions from Edison International Parent, as needed. In addition, SCE expects to fund costs related to the Eaton Fire with proceeds from the Initial Account of the Wildfire Fund. SCE also has availability under its credit facility and agreements with lenders to issue bilateral unsecured standby letters of credit to fund cash requirements.
In July 2026, SCE Recovery Funding LLC issued approximately $2.0 billion of securitized recovery bonds to finance cost recoveries authorized under the Woolsey Settlement Agreement. SCE used the proceeds to repay a first quarter $1.5 billion term loan that was due in March 2027 and to retire existing long-term debt that had financed wildfire costs. For further details, see "Management Overview—Southern California Wildfires and Mudslides" in the 2025 Form 10-K, "Notes to Condensed Consolidated Financial Statements—Note 3. Variable Interest Entities and Note 5. Debt and Credit Agreements."
During the nine months ended September 30, 2026, SCE issued a total of $1.7 billion of first and refunding mortgage bonds. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."
In the first quarter of 2026, SCE redeemed all the outstanding shares of its Series K preference stock for an aggregate paid amount of $119 million, which caused SCE Trust V to redeem all of its outstanding 5.45% Series K Trust Securities. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 13. Equity."
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 2025 Form 10-K.
Credit Ratings
The following table summarizes SCE's current long-term issuer credit ratings and outlook from the major credit rating agencies as of October 22, 2026:
| Moody's | Fitch | S&P | |||||||||
| Credit Rating | Baa1 | BBB | BBB- | ||||||||
| Outlook | Stable | Negative | Negative | ||||||||
SCE's credit ratings may be affected by various factors, including those that expose SCE to wildfire-related risks, such as a persistent increase in the frequency and severity of wildfires in California or failure by regulators or legislators to successfully implement and maintain a timely, consistent, and credit-supportive framework that adequately mitigates the significant wildfire-related risk faced by California investor-owned utilities. In April 2026, the CEA submitted to the California Legislature and the Governor a report required under SB 254. The report observes that inaction to address escalating wildfire risk would expose utilities to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure and support electrification and California's clean energy transition. For further discussion about the report, see "Management Overview—Southern California Wildfires." As of September 30, 2026, no legislation addressing the policy options identified in the April 2026 CEA report had been enacted, and SCE cannot predict whether or when such legislation or other measures will be adopted. In addition, material utility liability exposure arising from the outcome of investigations into various wildfire events, associated settlements, litigation outcomes, fines, or penalties, or a determination that the Wildfire Fund is at risk of material depletion, may lead credit rating agencies to downgrade SCE's credit ratings.
Credit rating downgrades may increase the cost of debt and equity capital and may also impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings, or other borrowings, which could lead to higher customer rates over time. In addition, some of SCE's power procurement and energy contracts, environmental remediation obligations and workers' compensation self-insurance would require SCE to pay related liabilities or post additional collateral if SCE's credit ratings were to fall below applicable investment-grade thresholds. For further details, see "—Margin and Collateral Deposits" below.
15
Available Liquidity
At September 30, 2026, SCE had cash and cash equivalents of $119 million and restricted cash of $109 million collected from customer-funded wildfire self-insurance. The restricted cash collected from customer-funded wildfire self-insurance is available only for future wildfire events and is not available to fund claims associated with the Eaton Fire. SCE also has approximately $3.2 billion available to borrow on its $3.4 billion revolving credit facility. In June 2026, SCE extended its credit facility through May 2030 and may extend its credit facility for one additional year with the lenders' approval. The aggregate maximum principal amount under the SCE revolving credit facility may be increased up to $4.0 billion, provided that additional lender commitments are obtained. SCE also had standby letters of credit with a total capacity of $545 million, of which $376 million was available as of September 30, 2026. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements." 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 and within levels authorized by the CPUC.
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 September 30, 2026, SCE's debt to total capitalization ratio was 0.55 to 1.
At September 30, 2026, SCE was in compliance with all financial covenants that affect access to capital.
Regulatory Proceedings
2024 Multi-year Wildfire Mitigation and Catastrophic Events Filing ("WMCE") Filing
In December 2025, SCE filed its 2024 WMCE Filing, seeking to recover incremental operating and maintenance expenses of $55 million and incremental capital expenditures of $78 million, recorded in the wildfire risk mitigation balancing account, as well as incremental storm-related costs associated with certain 2017 – 2021 events recorded in the catastrophic event memorandum account. The application also seeks recovery of $36 million in wildfire mitigation related capital expenditures incurred in 2022 that were previously denied without prejudice and permitted to be included in base rates as part of the post-test year ratemaking mechanism. In April 2026, the CPUC adopted a schedule with a proposed decision expected in 2027.
2021 GRC Wildfire Mitigation Memorandum Account Balance
In June 2025, the CPUC issued a final decision authorizing recovery of certain requested costs and disallowing recovery of $65 million in operations and maintenance expenses and $36 million of requested capital expenditures. SCE subsequently filed an application for rehearing regarding the disallowances. In May 2026, the CPUC granted a limited rehearing to reconsider certain amounts that were disallowed. In August 2026, the CPUC adopted a schedule with a proposed decision expected in 2027.
NextGen Enterprise Resource Planning ("ERP") Program
In March 2025, SCE filed an application with the CPUC seeking authorization to recover costs related to its NextGen ERP Program. In April and June 2026, the CPUC issued procedural rulings requesting additional information from SCE, which SCE timely provided. In September 2026, the CPUC approved extending the statutory deadline for a final decision to January 2027. SCE anticipates that a proposed decision will be issued by the CPUC in 2026.
Advanced Metering Infrastructure ("AMI") 2.0 Program
In March 2026, SCE filed an application with the CPUC requesting approval of the AMI 2.0 program, which is intended to replace SCE's existing metering infrastructure, including meters, network communications, software systems, and data analytics, as well as to enable new customer programs. The application seeks authorization for forecasted capital expenditures of $3.1 billion and operations and maintenance costs of $366 million to be incurred between 2026 and 2033, as well as authorization to establish an AMI 2.0 Memorandum Account and an AMI 2.0 Balancing Account to record the associated costs. In August 2026, the CPUC adopted a schedule with a proposed decision expected in 2027.
2027 FERC Formula Rate Annual Update
In June 2026, SCE provided its preliminary 2027 annual transmission revenue requirement update to interested parties. The update proposes a 2027 transmission revenue requirement of $1.7 billion, which is a $159 million, or 11%, increase from the 2026 annual rates. The increase is primarily due to 2027 rates reflecting recovery of previous undercollections. SCE
16
expects to file its 2027 annual update with the FERC by December 1, 2026, with the proposed rates effective January 1, 2027.
Capital Investment Plan
Alberhill System Project
In March 2026, the CPUC approved the Certificate of Public Convenience and Necessity for the project, authorizing the construction to proceed. Construction for the project is expected to start in the fourth quarter of 2026. For further details on the project, see "Liquidity and Capital Resources—Southern California Edison Company—Capital Investment Plan" in the 2025 Form 10-K.
Margin and Collateral Deposits
Certain derivative instruments, power and energy procurement contracts, and other contractual arrangements contain collateral requirements. Future collateral requirements may differ from the requirements at September 30, 2026, due to the 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. See "—SCE" above for further information on SCE's credit ratings.
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 September 30, 2026, if SCE's credit rating had been downgraded to below investment grade as of that date. The table below 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 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.
(in millions) | |||||
Collateral posted as of September 30, 20261 | $ | 189 | |||
Incremental collateral requirements for purchased power and fuel contracts resulting from a potential downgrade of SCE's credit rating to below investment grade2 | 29 | ||||
Incremental collateral requirements for purchased power and fuel contracts resulting from adverse market price movements3 | 43 | ||||
| Posted and potential collateral requirements | $ | 261 | |||
1Net collateral provided to counterparties and other brokers consisted of $178 million in letters of credit and surety bonds and $11 million of cash collateral.
2Represents potential collateral requirements for accounts payable and mark-to-market valuation at September 30, 2026. Requirement varies throughout the period and is generally lower at the end of the month.
3Incremental collateral requirements were based on potential changes in SCE's forward positions as of September 30, 2026, due to adverse market price movements over the remaining lives of the existing power and fuel derivative contracts using a 95% confidence level.
Furthermore, SCE may be required to post collateral for workers' compensation in excess of standard formula amounts, currently up to $137 million, in the event of volatile credit rating conditions, during which the Office of Self-Insurance Plans, which oversees workers' compensation self-insurance within California, may exercise discretion to impose higher collateral requirements. As of September 30, 2026, SCE had $14 million of collateral posted under such discretionary authority. 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.
17
Edison International Parent and Other
In the next 12 months, Edison International Parent expects to fund its net cash requirements through cash on hand, dividends from SCE, and capital market and bank financings. Edison International Parent 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.
At September 30, 2026, Edison International Parent and Other had cash and cash equivalents of $52 million. Edison International Parent also has approximately $1.4 billion available to borrow on its $1.5 billion revolving credit facility. In June 2026, Edison International Parent extended its credit facility through May 2030 and may extend its credit facility for one additional year with the lenders' approval. The aggregate maximum principal amount under the Edison International Parent revolving credit facility may be increased up to $2.0 billion, provided that additional lender commitments are obtained. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."
During 2026, Edison International Parent issued $550 million of 4.80% senior notes due in 2031 and $500 million of 5.00% senior notes due in 2028. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."
In the first quarter of 2026, Edison International redeemed all remaining shares of its 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") and repurchased 4,434 shares of 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock") for $414 million and $4 million, respectively. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 13. Equity."
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 2025 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 B Preferred Stock. For further information, see "Notes to Consolidated Financial Statements—Note 14. Equity" in the 2025 Form 10-K.
Edison International Parent's credit facility and term loan require a consolidated debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.70 to 1. At September 30, 2026, Edison International's consolidated debt to total capitalization ratio was 0.64 to 1.
At September 30, 2026, Edison International Parent was in compliance with all financial covenants that affect access to capital.
Credit Ratings
The following table summarizes Edison International Parent's current long-term issuer credit ratings and outlook from the major credit rating agencies as of October 22, 2026:
| Moody's | Fitch | S&P | |||||||||
| Credit Rating | Baa2 | BBB | BBB- | ||||||||
| Outlook | Stable | Negative | Negative | ||||||||
Edison International Parent's credit ratings may be affected by various factors, including those that expose Edison International Parent to wildfire-related risks, such as a persistent increase in the frequency and severity of wildfires in California or failure by regulators or legislators to successfully implement and maintain a timely, consistent, and credit-supportive framework that adequately mitigates the significant wildfire-related risk faced by California investor-owned utilities. In April 2026, the CEA submitted to the California Legislature and the Governor a report required under SB 254. The report observes that inaction to address escalating wildfire risk would expose utilities to risk of credit downgrades and heightened financial stress, limiting access to capital needed to maintain safe and reliable infrastructure and support electrification and California's clean energy transition. For further discussion about the report, see "Management Overview—Southern California Wildfires." As of September 30, 2026, no legislation addressing the policy options identified in the April 2026 CEA report had been enacted, and Edison International Parent cannot predict whether or when such legislation
18
or other measures will be adopted. In addition, material utility liability exposure arising from the outcome of investigations into various wildfire events or associated settlements, litigation outcomes, fines, or penalties, or a determination that the Wildfire Fund is at risk of material depletion, may lead credit rating agencies to downgrade Edison International Parent's credit ratings.
Credit rating downgrades may increase the cost of debt and capital and may also impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, note financings, or other borrowings, which could lead to higher customer rates over time.
Edison International Income Taxes
Inflation Reduction Act of 2022
The IRA imposed a corporate alternative minimum tax ("CAMT"), which Edison International and SCE are subject to beginning in 2026. Edison International and SCE expect that any CAMT paid will be creditable against future income taxes.
In addition, under the IRA, SCE expects to generate $158 million of investment tax credits in future periods related to utility-owned storage projects. The associated tax benefits will be recognized and returned to customers as the credits are utilized.
Historical Cash Flows
SCE
| Nine months ended September 30, | Change | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 5,604 | $ | 4,455 | $ | 1,149 | |||||||||||||||||
| Net cash (used in) provided by financing activities | (676) | 302 | (978) | ||||||||||||||||||||
| Net cash used in investing activities | (5,245) | (4,488) | (757) | ||||||||||||||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (317) | $ | 269 | $ | (586) | |||||||||||||||||
Net Cash Provided by Operating Activities
The following table summarizes major categories of net cash provided by operating activities as provided in more detail in SCE's condensed consolidated statements of cash flows for the nine months ended September 30, 2026 and 2025.
| Nine months ended September 30, | Change | ||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||
| Net income | $ | 2,151 | $ | 3,036 | |||||||||||||
| Non-cash items | 2,325 | 3,246 | |||||||||||||||
| Subtotal | 4,476 | 6,282 | (1,806) | ||||||||||||||
| Changes in working capital | (458) | (304) | (154) | ||||||||||||||
| Regulatory assets and liabilities | 2,474 | (1,373) | 3,847 | ||||||||||||||
| Wildfire-related claims, net of recoveries | (852) | (332) | (520) | ||||||||||||||
Other noncurrent assets and liabilities1 | (36) | 182 | (218) | ||||||||||||||
| Net cash provided by operating activities | $ | 5,604 | $ | 4,455 | $ | 1,149 | |||||||||||
1Includes nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information. The 2025 amount includes $236 million in cash proceeds primarily from the monetization of investment tax credits.
Net cash provided by operating activities increased by $1.1 billion during the nine months ended September 30, 2026 compared to the same period of 2025. The change was primarily due to the increase in 2026 escalation mechanism for rates set forth in the 2025 GRC final decision, the increase in recovery of last year's undercollections, and the increase in sales volume driven by warmer weather, partially offset by wildfire-related claim payments, net of recoveries. For further details
19
related to wildfire-related claim payments and recoveries, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies."
The net outflows in cash resulting from working capital was $458 million and $304 million during the nine months ended September 30, 2026 and 2025, respectively. Changes in working capital in both 2026 and 2025 were primarily due to the increases in customer receivables and unbilled revenue, partially offset by higher energy payables in both years, driven by higher energy usage during the summer months. The lower net cash outflow in 2025 compared to 2026 was mainly due to cash collected from the sale of renewable energy credits under a CPUC-established program during 2025.
Net cash provided by (used in) regulatory assets and liabilities, including changes in net over or undercollections recorded in balancing accounts, was $2.5 billion and $(1.4) billion during the nine months ended September 30, 2026 and 2025, respectively. Net cash inflows in 2026 were mainly due to current year overcollections driven by higher sales volume resulting from warmer weather, recovery of prior year undercollections, and additional collections authorized for customer-funded wildfire self-insurance program. Net cash outflow in 2025 was primarily due to cost recoveries authorized under the TKM Settlement Agreement in 2025 as well as higher revenue from the 2025 GRC final decision, which were both non-cash offsets in net income.
Net Cash (Used in) Provided by Financing Activities
The following table summarizes cash provided by financing activities for the nine months ended September 30, 2026 and 2025. Issuances of debt are discussed in "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."
| Nine months ended September 30, | Change | ||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||
| Long-term debt issued, net of premium, discount and issuance costs | $ | 5,443 | $ | 2,963 | $ | 2,480 | |||||||||||
| Long-term debt repaid | (3,705) | (1,227) | (2,478) | ||||||||||||||
| Short-term debt borrowed | — | 410 | (410) | ||||||||||||||
| Short-term debt repaid | (282) | — | (282) | ||||||||||||||
| Commercial paper financing, net | (646) | (449) | (197) | ||||||||||||||
| Preference stock redeemed | (119) | — | (119) | ||||||||||||||
| Payment of common stock dividends to Edison International Parent | (1,290) | (1,290) | — | ||||||||||||||
| Payment of preference stock dividends | (77) | (101) | 24 | ||||||||||||||
| Other | — | (4) | 4 | ||||||||||||||
| Net cash (used in) provided by financing activities | $ | (676) | $ | 302 | $ | (978) | |||||||||||
Net Cash Used in Investing Activities
Cash flows used in investing activities are primarily due to total capital expenditures of $5.2 billion and $4.6 billion for the nine months ended September 30, 2026 and 2025, respectively. In addition, SCE had a net redemption of nuclear decommissioning trust investments of $1 million and $104 million during the nine months ended September 30, 2026 and 2025, respectively. See "Nuclear Decommissioning Activities" below for further discussion.
20
Nuclear Decommissioning Activities
SCE's condensed consolidated statements of cash flows include nuclear decommissioning activities, which are reflected in the following line items:
| Nine months ended September 30, | Change | ||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||
| Net cash used in operating activities: | |||||||||||||||||
| Net earnings from nuclear decommissioning trust investments | $ | 70 | $ | 35 | $ | 35 | |||||||||||
| SCE's decommissioning costs | (71) | (131) | 60 | ||||||||||||||
| (1) | (96) | 95 | |||||||||||||||
| Net cash provided by investing activities: | |||||||||||||||||
| Proceeds from sale of investments | 5,339 | 4,502 | 837 | ||||||||||||||
| Purchases of investments | (5,338) | (4,398) | (940) | ||||||||||||||
| 1 | 104 | (103) | |||||||||||||||
| Net cash inflow | $ | — | $ | 8 | $ | (8) | |||||||||||
Net cash used in operating activities is related 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 ($71 million and $131 million in 2026 and 2025, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($78 million and $141 million in 2026 and 2025, respectively).
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.
| Nine months ended September 30, | Change | ||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||
| Net cash used in operating activities | $ | (211) | $ | (227) | $ | 16 | |||||||||||
| Net cash provided by financing activities | 191 | 176 | 15 | ||||||||||||||
| Net cash provided by (used in) investing activities | 9 | (5) | 14 | ||||||||||||||
| Net decrease in cash, cash equivalents and restricted cash | $ | (11) | $ | (56) | $ | 45 | |||||||||||
Net Cash Used in Operating Activities
Net cash used in operating activities decreased by $16 million in 2026 compared to 2025. This was primarily due to $50 million of wildfire-related claims and related legal expenses paid by EIS to SCE in 2025 (for further information, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides"), partially offset by $34 million of higher costs, primarily interest expense, in 2026.
Net Cash Provided by Financing Activities
Net cash provided by financing activities was as follows:
21
| Nine months ended September 30, | Change | ||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||
| Dividends paid to Edison International common shareholders | $ | (1,013) | $ | (955) | $ | (58) | |||||||||||
| Dividends paid to Edison International preferred shareholders | (15) | (87) | 72 | ||||||||||||||
| Dividends received from SCE | 1,290 | 1,290 | — | ||||||||||||||
| Long-term debt issuance, net of discount and issuance costs | 1,042 | 539 | 503 | ||||||||||||||
| Long-term debt repayments | — | (800) | 800 | ||||||||||||||
| Issuance of short-term debt | 5 | 100 | (95) | ||||||||||||||
| Repayments of short-term debt | (155) | (20) | (135) | ||||||||||||||
| Common stock repurchased | (42) | (32) | (10) | ||||||||||||||
| Preferred stock repurchased | (419) | — | (419) | ||||||||||||||
| Commercial paper financing, net | (510) | 135 | (645) | ||||||||||||||
| Other | 8 | 6 | 2 | ||||||||||||||
| Net cash provided by financing activities | $ | 191 | $ | 176 | $ | 15 | |||||||||||
Contingencies
Edison International's and SCE's material contingencies are discussed in "Notes to Condensed 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 2025 Form 10-K, and there have been no material changes during the nine months ended September 30, 2026. For further discussion of market risk exposures, including commodity price risk, and credit risk, see "Notes to Condensed 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 2025 MD&A.
In addition, for information regarding the Wildfire Fund, see "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Wildfire Fund."
NEW ACCOUNTING GUIDANCE
New accounting guidance is discussed in "Notes to Condensed Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—New Accounting Guidance."
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.
22
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Statements of Income | Edison International | ||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||
| (in millions, except per-share amounts, unaudited) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||
| Operating revenue | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Purchased power and fuel | |||||||||||||||||||||||||||||||||||||||||
| Operation and maintenance | |||||||||||||||||||||||||||||||||||||||||
| Wildfire-related claims, net of (recoveries) | ( | ||||||||||||||||||||||||||||||||||||||||
| Wildfire Fund expense | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
| Property and other taxes | |||||||||||||||||||||||||||||||||||||||||
Asset impairment and other | ( | ||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Other income, net | |||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | ( | ||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||
| Less: Preference stock dividend requirements of SCE | |||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividend requirements of Edison International | |||||||||||||||||||||||||||||||||||||||||
| Net income available to Edison International common shareholders | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Basic earnings per share: | |||||||||||||||||||||||||||||||||||||||||
| Weighted average shares of common stock outstanding | |||||||||||||||||||||||||||||||||||||||||
| Basic earnings per common share available to Edison International common shareholders | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Diluted earnings per share: | |||||||||||||||||||||||||||||||||||||||||
| Weighted average shares of common stock outstanding, including effect of dilutive securities | |||||||||||||||||||||||||||||||||||||||||
| Diluted earnings per common share available to Edison International common shareholders | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
23
Condensed Consolidated Statements of Comprehensive Income | Edison International | ||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions, unaudited) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Pension and postretirement benefits other than pensions | |||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ||||||||||||||||||||||
| Other comprehensive (loss) income, net of tax | ( | ||||||||||||||||||||||
| Comprehensive income | |||||||||||||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
| Comprehensive income attributable to Edison International | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
24
Condensed Consolidated Balance Sheets | Edison International | ||||
| (in millions, unaudited) | September 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Receivables, net of allowances for uncollectible accounts of $ | |||||||||||
| Accrued unbilled revenue | |||||||||||
| Inventory | |||||||||||
| Prepaid expenses | |||||||||||
| Regulatory assets | |||||||||||
| Wildfire Fund contributions | |||||||||||
| Other current assets | |||||||||||
| Total current assets | |||||||||||
| Nuclear decommissioning trusts | |||||||||||
| Other investments | |||||||||||
| Total investments | |||||||||||
Utility property, plant and equipment, net of accumulated depreciation and amortization of $ | |||||||||||
Nonutility property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
| Total property, plant and equipment | |||||||||||
Long-term receivables, net of allowances for uncollectible accounts of $ | |||||||||||
Regulatory assets (include $ | |||||||||||
| Wildfire Fund contributions | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Long-term insurance receivables | |||||||||||
| Other long-term assets | |||||||||||
| Total other assets | |||||||||||
| Total assets | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
25
Condensed Consolidated Balance Sheets | Edison International | ||||
| (in millions, except share amounts, unaudited) | September 30, 2026 | December 31, 2025 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Short-term debt | $ | $ | |||||||||
| Current portion of long-term debt | |||||||||||
| Accounts payable | |||||||||||
| Wildfire-related claims | |||||||||||
| Accrued interest | |||||||||||
| Regulatory liabilities | |||||||||||
| Current portion of operating lease liabilities | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
Long-term debt (includes $ | |||||||||||
| Deferred income taxes and credits | |||||||||||
| Pensions and benefits | |||||||||||
| Asset retirement obligations | |||||||||||
| Regulatory liabilities | |||||||||||
| Operating lease liabilities | |||||||||||
| Wildfire-related claims | |||||||||||
| Other deferred credits and other long-term liabilities | |||||||||||
| Total deferred credits and other liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 12) | |||||||||||
Preferred stock ( | |||||||||||
Common stock, | |||||||||||
| Accumulated other comprehensive income | |||||||||||
| Retained earnings | |||||||||||
| Total Edison International's shareholders' equity | |||||||||||
| Noncontrolling interests – preference stock of SCE | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
26
Condensed Consolidated Statements of Cash Flows | Edison International | ||||
| Nine months ended September 30, | |||||||||||
| (in millions, unaudited) | 2026 | 2025 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Equity allowance for funds used during construction | ( | ( | |||||||||
| Asset impairment and other | ( | ||||||||||
| Deferred income taxes | ( | ||||||||||
| Wildfire Fund amortization expense | |||||||||||
| Other | |||||||||||
| Nuclear decommissioning trusts | ( | ( | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | ( | ( | |||||||||
| Inventory | ( | ||||||||||
| Accounts payable | |||||||||||
| Other current assets and liabilities | ( | ||||||||||
| Derivative assets and liabilities, net | ( | ||||||||||
| Regulatory assets and liabilities, net | ( | ||||||||||
| Wildfire-related claims, net of recoveries | ( | ( | |||||||||
| Other noncurrent assets and liabilities | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows from financing activities: | |||||||||||
Long-term debt issued, net of premium, discount and issuance costs of $ | |||||||||||
| Long-term debt repaid | ( | ( | |||||||||
| Short-term debt issued | |||||||||||
| Short-term debt repaid | ( | ( | |||||||||
| Common stock repurchased | ( | ( | |||||||||
| Preferred stock repurchased | ( | ||||||||||
| Commercial paper repayments, net of borrowing | ( | ( | |||||||||
| Dividends and distribution to noncontrolling interests | ( | ( | |||||||||
| Common stock dividends paid | ( | ( | |||||||||
| Preferred stock dividends paid | ( | ( | |||||||||
| Other | |||||||||||
| Net cash (used in) provided by financing activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Proceeds from sale of nuclear decommissioning trust investments | |||||||||||
| Purchases of nuclear decommissioning trust investments | ( | ( | |||||||||
Proceeds from sale of a subsidiary, net of cash transferred | |||||||||||
| Other | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
27
Condensed Consolidated Statements of Income | Southern California Edison Company | ||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions, unaudited) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Operating revenue | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Purchased power and fuel | |||||||||||||||||||||||||||||||||||
| Operation and maintenance | |||||||||||||||||||||||||||||||||||
| Wildfire-related claims, net of (recoveries) | ( | ||||||||||||||||||||||||||||||||||
| Wildfire Fund expense | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||||||||||||||
| Property and other taxes | |||||||||||||||||||||||||||||||||||
Asset impairment and other | ( | ||||||||||||||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Other income, net | |||||||||||||||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||||||||||||||
| Income tax (benefit) expense | ( | ||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||
| Less: Preference stock dividend requirements | |||||||||||||||||||||||||||||||||||
| Net income available to common stock | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | Southern California Edison Company | ||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions, unaudited) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Pension and postretirement benefits other than pensions | |||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
28
Condensed Consolidated Balance Sheets | Southern California Edison Company | ||||
| (in millions, unaudited) | September 30, 2026 | December 31, 2025 | |||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Receivables, net of allowances for uncollectible accounts of $ | |||||||||||
| Accrued unbilled revenue | |||||||||||
| Inventory | |||||||||||
| Prepaid expenses | |||||||||||
| Regulatory assets | |||||||||||
| Wildfire Fund contributions | |||||||||||
| Other current assets | |||||||||||
| Total current assets | |||||||||||
| Nuclear decommissioning trusts | |||||||||||
| Other investments | |||||||||||
| Total investments | |||||||||||
Utility property, plant and equipment, net of accumulated depreciation and amortization of $ | |||||||||||
Nonutility property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
| Total property, plant and equipment | |||||||||||
Long-term receivables, net of allowances for uncollectible accounts of $ | |||||||||||
Regulatory assets (include $ | |||||||||||
| Wildfire Fund contributions | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Long-term insurance receivables | |||||||||||
| Long-term insurance receivables due from affiliate | |||||||||||
| Other long-term assets | |||||||||||
| Total other assets | |||||||||||
| Total assets | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
29
Condensed Consolidated Balance Sheets | Southern California Edison Company | ||||
| (in millions, except share amounts, unaudited) | September 30, 2026 | December 31, 2025 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Short-term debt | $ | $ | |||||||||
| Current portion of long-term debt | |||||||||||
| Accounts payable | |||||||||||
| Wildfire-related claims | |||||||||||
| Accrued interest | |||||||||||
| Regulatory liabilities | |||||||||||
| Current portion of operating lease liabilities | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
Long-term debt (includes $ | |||||||||||
| Deferred income taxes and credits | |||||||||||
| Pensions and benefits | |||||||||||
| Asset retirement obligations | |||||||||||
| Regulatory liabilities | |||||||||||
| Operating lease liabilities | |||||||||||
| Wildfire-related claims | |||||||||||
| Other deferred credits and other long-term liabilities | |||||||||||
| Total deferred credits and other liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 12) | |||||||||||
| Preference stock | |||||||||||
Common stock, | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Retained earnings | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
30
Condensed Consolidated Statements of Cash Flows | Southern California Edison Company | ||||
| Nine months ended September 30, | |||||||||||
| (in millions, unaudited) | 2026 | 2025 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Equity allowance for funds used during construction | ( | ( | |||||||||
| Asset impairment and other | ( | ||||||||||
| Deferred income taxes | ( | ||||||||||
| Wildfire Fund amortization expense | |||||||||||
| Other | |||||||||||
| Nuclear decommissioning trusts | ( | ( | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | ( | ( | |||||||||
| Inventory | ( | ||||||||||
| Accounts payable | |||||||||||
| Other current assets and liabilities | ( | ||||||||||
| Derivative assets and liabilities, net | ( | ||||||||||
| Regulatory assets and liabilities, net | ( | ||||||||||
| Wildfire-related claims, net of recoveries | ( | ( | |||||||||
| Other noncurrent assets and liabilities | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows from financing activities: | |||||||||||
Long-term debt issued, net of premium, discount and issuance costs of $ | |||||||||||
| Long-term debt repaid | ( | ( | |||||||||
| Short-term debt borrowed | |||||||||||
| Short-term debt repaid | ( | ||||||||||
| Preference stock redeemed | ( | ||||||||||
| Commercial paper repayments, net of borrowing | ( | ( | |||||||||
| Common stock dividends paid | ( | ( | |||||||||
| Preference stock dividends paid | ( | ( | |||||||||
| Other | ( | ||||||||||
| Net cash (used in) provided by financing activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Proceeds from sale of nuclear decommissioning trust investments | |||||||||||
| Purchases of nuclear decommissioning trust investments | ( | ( | |||||||||
| Other | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | ( | ||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
31
NOTES TO CONDENSED 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 SCE, which 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.
In the second quarter of 2026, Edison International completed the disposition of Trio, a former indirect wholly-owned non-utility subsidiary, and recognized a $23 million loss on disposition, including transaction costs. The disposition did not qualify for discontinued operations accounting.
These combined notes to the condensed consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's condensed 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 subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's condensed 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 condensed consolidated financial statements.
Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in the 2025 Form 10-K. This quarterly report should be read in conjunction with the financial statements and notes included in the 2025 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 condensed 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, 2025 financial statement data was derived from the audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements.
Segment Information
For information on Edison International's and SCE's segment information, see Note 1 in the 2025 Form 10-K. In addition, for the three and nine months ended September 30, 2026 and 2025, Edison International's and SCE's significant segment expenses agree to those disclosed in the condensed consolidated statements of income. As of September 30, 2026 and 2025, the measures of Edison International's and SCE's segment assets are reported on Edison International's and SCE's condensed consolidated balance sheets, respectively, as total assets.
32
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents
The following table sets forth the cash, cash equivalents, restricted cash and restricted cash equivalents included in the condensed consolidated statements of cash flows:
| Edison International | SCE | ||||||||||||||||||||||
| (in millions) | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | |||||||||||||||||||
Cash and cash equivalents1 | $ | $ | $ | $ | |||||||||||||||||||
Short-term restricted cash and cash equivalents2 | |||||||||||||||||||||||
Long-term restricted cash and cash equivalents3 | |||||||||||||||||||||||
| Total cash and cash equivalents and restricted cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
1Cash 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.
2Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and cash collected for customer-funded wildfire self-insurance related to settlements (see Note 12 for further information). The total balances are reflected in "Other current assets" on Edison International's and SCE's condensed consolidated balance sheets.
3Represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's condensed 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 indicators, such as unemployment rates. In estimating expected credit losses, SCE applies a practical expedient under the current expected credit loss model, which assumes that current economic conditions as of the balance sheet date do not change over the remaining life of existing accounts receivable. The decrease in provisions for the three and nine months ended September 30, 2026, was primarily due to improved collections during the period resulting from collection efforts and higher disconnection activities undertaken in 2025, the effects of which continued into 2026.
The following table sets forth the changes in allowance for uncollectible accounts for SCE:
| Three months ended September 30, 2026 | Three months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| (in millions) | Customers | All others | Total | Customers | All others | Total | |||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Current period provision for uncollectible accounts1 | |||||||||||||||||||||||||||||||||||
| Write-offs, net of recoveries | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Nine months ended September 30, 2026 | Nine months ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| (in millions) | Customers | All others | Total | Customers | All others | Total | |||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Current period provision for uncollectible accounts2 | |||||||||||||||||||||||||||||||||||
| Write-offs, net of recoveries | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
1This includes $48 million and $76 million of incremental costs, for the three months ended September 30, 2026 and 2025, respectively, which were probable of recovery from customers and recorded as regulatory assets.
2This includes $140 million and $211 million of incremental costs, for the nine months ended September 30, 2026 and 2025, respectively, which were probable of recovery from customers and recorded as regulatory assets.
33
Wildfire Fund
Edison International and SCE accounted for the contributions to the Initial Account of the Wildfire Fund on the condensed consolidated balance sheet. The Wildfire Fund does not have a defined life and instead will terminate when the fund administrator determines that the fund has been exhausted. SCE estimates the period of coverage of the fund and amortizes contributions made to the Wildfire Fund ratably over the period of coverage similar to prepaid insurance. Estimating the period of coverage of the fund requires significant judgment. Frequency of wildfire events and estimated costs associated with wildfire events caused by participating utilities are among the significant factors used to estimate the fund's period of coverage.
Edison International and SCE reassess the period of coverage of the fund at least annually in the first quarter each year and when new or additional information becomes available. As of the date of filing, after considering the current accrued losses for the Eaton Fire, SCE does not have new or additional information that would enable it to change its prior assessment that the Wildfire Fund would provide coverage for an estimated 20 years from the date SCE committed to participate in the Wildfire Fund. When updating its estimate, SCE includes all its fires for which losses can be reasonably estimated, and relies on publicly disclosed wildfire-related losses related to other participating utilities. As discussed in Note 12, while SCE believes that it will incur material losses in connection with the Eaton Fire, it is currently unable to reasonably estimate a range of losses that may be incurred. The Wildfire Fund amortization period will be evaluated and adjusted prospectively as new or additional information on contributions and wildfire events, including reasonably estimated losses related to the Eaton Fire, becomes available. An impairment will be recorded to the Wildfire Fund contribution asset if the asset exceeds SCE's ability to benefit from the remaining coverage provided by the Wildfire Fund.
SB 254 expands the Wildfire Fund originally created under AB 1054 by establishing the Continuation Account within the Wildfire Fund. As of September 30, 2026, and as of the date of this filing, the conditions required to trigger investor-owned utility contributions to the Continuation Account have not been met. Accordingly, SCE has not recorded a contribution obligation associated with the Continuation Account on its condensed consolidated balance sheets as of September 30, 2026.
As of September 30, 2026, SCE has received $207 million from the Wildfire Fund related to the Eaton Fire and has recorded $652 million in expected recoveries from the Wildfire Fund as of September 30, 2026, reflected in both "Other current assets" and "Long-term insurance receivables" on the condensed consolidated balance sheets. Based on the California Wildfire Legislation, a utility that submits claims to the Wildfire Fund for recovery is expected to receive such reimbursements from the Wildfire Fund, and separately file an application with CPUC for review of its costs and expenses. See Note 12 for further information. SCE considers whether any party in the CPUC prudency review proceeding would prevail in raising a "serious doubt" as to the reasonableness of SCE's actions, and whether it is probable the CPUC would conclude that SCE does not meet the burden of dispelling that doubt and find SCE's conduct was not prudent. The outcome of the CPUC's prudency review could result in a refund to the Wildfire Fund. SCE will recognize a payable related to claim reimbursements to the Wildfire Fund if it determines that a refund to the Wildfire Fund is probable and estimable. SCE considers factors within and outside SCE's control in its evaluation of whether a refund to the Wildfire Fund is probable and estimable. As of September 30, 2026, SCE determined it is not probable nor estimable that any amounts may be required to be reimbursed to the Wildfire Fund.
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.
34
EPS available to Edison International common shareholders was computed as follows:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions, except per-share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Basic earnings per share: | |||||||||||||||||||||||
| Net income available to Edison International common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Earnings allocated to participating securities | ( | ||||||||||||||||||||||
| Income available to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||
| Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
| Diluted earnings per share: | |||||||||||||||||||||||
| Income available to common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Add back: Earnings allocated to participating securities | |||||||||||||||||||||||
| Net income available to Edison International common shareholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Adjusted weighted average shares – diluted | |||||||||||||||||||||||
| Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
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 1,845,547 and 9,956,033 shares of common stock for the three months ended September 30, 2026 and 2025, respectively, 1,996,919 and 9,346,533 shares of common stock for the nine months ended September 30, 2026 and 2025, 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.
Regulatory Proceeding – FERC 2026 Formula Rate Update
In November 2025, SCE filed its 2026 annual transmission revenue requirement update with the FERC, with rates effective January 1, 2026, subject to settlement procedures and refund. SCE requested a 2026 transmission revenue requirement of $1.5 billion, representing an increase of $157 million, or 12 % higher than amounts included in the 2025 annual rates. The increase is primarily due to 2026 rates reflecting recovery of previous undercollections. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first nine months of 2026 based on the FERC 2026 annual updated rates, subject to refund.
New Accounting Guidance
Accounting Guidance Not Yet Adopted
In November 2024, the FASB issued an accounting standards update requiring public entities to provide disaggregated disclosure of income statement expenses. The guidance does not change the expense captions an entity presents on the face of the income statement, rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The guidance is effective for annual disclosure for the year ended December 31, 2027 and subsequent interim periods with early adoption permitted. The guidance can be applied prospectively or retrospectively to any or all prior periods presented in the financial statements. Edison International and SCE are currently evaluating the impact of the increased disclosures from the new guidance.
In September 2025, the FASB issued an accounting standards update to amend certain aspects of the accounting for and disclosure of internal-use software. Among other things, the guidance removes all references to prescriptive and sequential
35
software development stages and instead requires entities to begin capitalizing software costs when certain criteria are met. The guidance is effective for annual and interim periods beginning January 1, 2028 with early adoption permitted. The guidance can be applied prospectively, retrospectively, or via a modified prospective transition method. Edison International and SCE are currently evaluating the impact of this new guidance.
In December 2025, the FASB issued an accounting standards update to establish guidance on the recognition, measurement, and presentation of government grants received by business entities. The guidance is effective for annual and interim periods beginning January 1, 2029 with early adoption permitted. The guidance can be applied on a modified prospective basis, a modified retrospective basis, or a full retrospective basis. Edison International and SCE are currently evaluating the impact of this new guidance.
In May 2026, the FASB issued an accounting standards update to establish guidance for the recognition, measurement, presentation and disclosure of environmental credits and compliance obligations that may be settled by using environmental credits. The guidance is effective for annual and interim periods beginning January 1, 2028 with early adoption permitted. The guidance is adopted on a retrospective basis by recognizing a cumulative effect adjustment to retained earnings at the date of initial application. Edison International and SCE are currently evaluating the impact of this new guidance.
36
Note 2. Condensed Consolidated Statements of Changes in Equity
The following tables provide Edison International's changes in equity:
| Equity Attributable to Edison International Shareholders | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock | Common stock | Accumulated Other Comprehensive Income | Retained Earnings | Subtotal | Preference Stock | Total Equity | |||||||||||||||||||||||||||||||||||||||||
(in millions, except shares and per-share amounts) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Shares withheld for tax withholdings on vested equity awards | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Preference stock redeemed | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Preferred stock repurchased | ( | ( | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Shares withheld for tax withholdings on vested equity awards | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividend declared ( $ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Shares withheld for tax withholdings on vested equity awards | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
37
| Equity Attributable to Edison International Shareholders | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Accumulated Other Comprehensive Income | Retained Earnings | Subtotal | Preference Stock | Total Equity | |||||||||||||||||||||||||||||||||||||||||
| (in millions, except shares and per-share amounts) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
Shares withheld for tax withholdings on vested equity awards | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock issued | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Common stock dividends declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividend declared ($ | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests ($ | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
38
The following tables provide SCE's changes in equity:
| (in millions, except per-share amounts) | Preference Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | ||||||||||||||||||||||||||||||||
| Preference stock redeemed | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | ( | |||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Noncash stock-based compensation | — | — | — | ||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
39
| (in millions, except per-share amounts) | Preference Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | ( | — | ( | ||||||||||||||||||||||||||||||
| Noncash stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | ( | |||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividends declared on preference stock ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Noncash stock-based compensation and other | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Note 3. Variable Interest Entities
A VIE is defined as a legal entity that meets any of the following conditions: (1) the total equity investment at risk is not sufficient to fund the entity's activities without additional subordinated financial support, (2) the equity holders as a group, lack any of the following characteristics: the power to direct activities that most significantly impact the entity's economic performance, substantive voting rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs.
Variable Interest in VIEs that are Consolidated
SCE Recovery Funding LLC is a bankruptcy remote, wholly-owned special purpose subsidiary of SCE, formed for the purpose of issuing securitized bonds. This entity is a VIE because its equity investment is insufficient to support its operations. The most significant activity of SCE Recovery Funding LLC is to service the securitized bonds according to the decisions made by SCE. Therefore, SCE is determined to be the primary beneficiary and consolidates SCE Recovery Funding LLC.
SCE Recovery Funding LLC has issued a total of $5.2 billion of securitized bonds as of September 30, 2026. The proceeds were used to acquire SCE's right, title, and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service area ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures and costs approved for recovery under the TKM Settlement Agreement and the Woolsey Settlement Agreement, 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.
40
The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's condensed consolidated balance sheets:
| (in millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Other current assets | $ | $ | |||||||||
| Regulatory assets: non-current | |||||||||||
| Regulatory liabilities: current | |||||||||||
Current portion of long-term debt1 | |||||||||||
| Other current liabilities | |||||||||||
Long-term debt1 | |||||||||||
1The 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 certain power purchase agreements ("PPAs") where the counterparty entities meet one or both of the VIE conditions discussed above and in which SCE has variable interests, including: agreements through which SCE provides natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that allow purchase of energy at fixed prices upon the seller's election. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is typically the operation and maintenance of the power plants, which SCE does not perform. Therefore, SCE has concluded that it is not the primary beneficiary of any of these VIEs because it does not control the commercial and operating activities that most significantly impact the economic performance of these entities.
As of the balance sheet date, the carrying amount of assets and liabilities included in SCE's condensed 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 2025 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 7,183 MW and 6,024 MW at September 30, 2026 and 2025, respectively. The amounts that SCE paid to these projects were $376 million and $292 million for the three months ended September 30, 2026 and 2025, respectively, and $824 million and $677 million for the nine months ended September 30, 2026 and 2025, respectively. These amounts are recoverable in customer rates, subject to a reasonableness review.
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 September 30, 2026 and December 31, 2025, 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.
41
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 primarily consists of 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. SCE also enters into certain physically settled resource adequacy contracts with a financially settled electricity component ("Fin Toll arrangements"). For these Fin Toll arrangements, SCE uses an income model valuation approach to estimate the significant unobservable inputs (hourly power prices). Edison International Parent and Other does not have any Level 3 assets and liabilities.
Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available, and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.
SCE
The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
| September 30, 2026 | |||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||||||||||||
| Assets at fair value | |||||||||||||||||||||||||||||
| Derivative contracts | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
| Money market funds and other | — | ||||||||||||||||||||||||||||
| Nuclear decommissioning trusts: | |||||||||||||||||||||||||||||
Stocks2 | — | ||||||||||||||||||||||||||||
Fixed income3 | — | ||||||||||||||||||||||||||||
| Short-term investments, primarily cash equivalents | — | ||||||||||||||||||||||||||||
Subtotal of nuclear decommissioning trusts4 | — | ||||||||||||||||||||||||||||
| Total assets | ( | ||||||||||||||||||||||||||||
| Liabilities at fair value | |||||||||||||||||||||||||||||
| Derivative contracts | ( | ||||||||||||||||||||||||||||
| Total liabilities | ( | ||||||||||||||||||||||||||||
| Net assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
42
| December 31, 2025 | |||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||||||||||||
| Assets at fair value | |||||||||||||||||||||||||||||
| Derivative contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Money market funds and other | — | ||||||||||||||||||||||||||||
| Nuclear decommissioning trusts: | |||||||||||||||||||||||||||||
Stocks2 | — | ||||||||||||||||||||||||||||
Fixed income3 | — | ||||||||||||||||||||||||||||
| Short-term investments, primarily cash equivalents | — | ||||||||||||||||||||||||||||
Subtotal of nuclear decommissioning trusts4 | — | ||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Liabilities at fair value | |||||||||||||||||||||||||||||
| Derivative contracts | ( | ||||||||||||||||||||||||||||
| Total liabilities | ( | ||||||||||||||||||||||||||||
| Net assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
1Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2Approximately 70 % and 71 % of SCE's equity investments were in companies located in the United States at September 30, 2026 and December 31, 2025, respectively.
3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $85 million and $60 million at September 30, 2026 and December 31, 2025, respectively.
4Excludes net payables of $85 million and $251 million at September 30, 2026 and December 31, 2025, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.
SCE Fair Value of Level 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 September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Fair value of net assets at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Settlements | ( | ( | ( | ( | |||||||||||||||||||
Total realized/unrealized gains (losses)1 | ( | ( | |||||||||||||||||||||
| Fair value of net assets at end of period | $ | $ | $ | $ | |||||||||||||||||||
1Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
There were no material transfers into or out of Level 3 during 2026 and 2025.
43
The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets:
| Fair Value (in millions) | Significant Unobservable Input | Range ($ per MWh) | Weighted Average ($ per MWh) | |||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| September 30, 2026 | ||||||||||||||||||||||||||
| CRRs | $ | CAISO CRR auction prices | $( | $ | ||||||||||||||||||||||
| Fin Toll arrangements | Hourly Forecast Power Prices | |||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| CRRs | $ | CAISO CRR auction prices | $( | $ | ||||||||||||||||||||||
| Fin Toll arrangements | Hourly Forecast Power Prices | |||||||||||||||||||||||||
Level 3 Fair Value Uncertainty
For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value, respectively.
For Fin Toll arrangements, the fair value measurements are sensitive to the spread between daily high and daily low hourly power prices. Increases or decreases in this spread 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 $49 million and $51 million at September 30, 2026 and December 31, 2025, respectively. Assets measured at fair value and classified as Level 2 were immaterial at September 30, 2026 and December 31, 2025. There were no
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:
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (in millions) | Carrying Value1 | Fair Value2 | Carrying Value1 | Fair Value2 | |||||||||||||||||||
| Edison International | $ | $ | $ | $ | |||||||||||||||||||
| SCE | |||||||||||||||||||||||
1Carrying value is net of debt issuance costs.
2The fair value of long-term debt is classified as Level 2.
44
Note 5. Debt and Credit Agreements
Long-Term Debt
During the nine months ended September 30, 2026, SCE issued the following first and refunding mortgage bonds:
| Description | Month of Issuance | Rate | Maturity Date | Amount (in millions) | ||||||||||||||||||||||
| Series 2024D | March 2026 | 2029 | $ | |||||||||||||||||||||||
| Series 2026A | March 2026 | 2033 | ||||||||||||||||||||||||
| Series 2026B | May 2026 | 2031 | ||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||
The proceeds were used to repay commercial paper borrowings and for general corporate purposes.
In February 2026, Edison International Parent issued $550 million of 4.80 % senior notes due in 2031 and in May 2026 issued $500 million of 5.00 % senior notes due in 2028. The proceeds were used to repay commercial paper and for general corporate purposes.
Senior Secured Recovery Bonds
In July 2026, SCE Recovery Funding LLC issued $2.0 billion of Senior Secured Recovery Bonds, Series 2026-A, in three tranches and used the proceeds to acquire SCE's right, title, and interest in and to the Recovery Property. The three tranches of Senior Secured Recovery Bonds consisted of $600 million of 5.39 % bonds with a final maturity in 2045, $645 million of 6.04 % bonds with a final maturity in 2054, and $709 million of 6.09 % bonds with a final maturity in 2061. For further details, see Note 3. SCE used the proceeds it received from the sale of Recovery Property to finance cost recoveries authorized under the Woolsey Settlement Agreement (see Note 12 for further information).
Credit Agreements and Short-Term Debt
The following table summarizes the status of the credit facilities at September 30, 2026:
| (in millions) | ||||||||||||||||||||||||||||||||
Borrower1 | Termination Date | Commitment | Commercial Paper Outstanding2 | Letters of Credit Outstanding | Amount Available | |||||||||||||||||||||||||||
Edison International Parent | May 2030 | $ | $ | $ | $ | |||||||||||||||||||||||||||
SCE | May 2030 | |||||||||||||||||||||||||||||||
| Total Edison International | $ | $ | $ | $ | ||||||||||||||||||||||||||||
1The aggregate maximum principal amount under the Edison International Parent and SCE revolving credit facilities may be increased up to $2.0 billion and $4.0 billion, respectively, provided that additional lender commitments are obtained. Edison International Parent and SCE credit facilities also provide for one year
2The weighted-average interest rates on commercial paper outstanding at September 30, 2026 for both Edison International Parent and SCE were 4.10
Term Loan
In February 2026, SCE entered into a term loan agreement to borrow $1.5 billion maturing in March 2027 with a variable interest rate based on SOFR plus 1.00 %. The proceeds were used for general corporate and working capital purposes, including the repayment of all borrowings under the $300 million unsecured term loan agreement, dated as of February 11, 2026. In July 2026, SCE fully repaid the $1.5 billion term loan.
Uncommitted Letters of Credit
SCE entered into agreements with certain lenders for bilateral unsecured standby letters of credit ("SBLC") with a total capacity of $545 million that is uncommitted and supported by reimbursement agreements. The SBLCs are not subject to any collateral or security requirements. At September 30, 2026, SCE had $169 million outstanding under these agreements, which expire between October 2026 and November 2027.
45
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, futures, and Fin Toll arrangements. 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 of SCE's derivative contracts contain credit-risk-related contingent features that require posting of collateral upon a downgrade of SCE's credit ratings to below investment grade by one or more major credit rating agencies. As of September 30, 2026 and December 31, 2025, the fair values of these derivative liabilities were immaterial, for which SCE posted $95 million and $105 million of collateral, respectively. In the event SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these contracts were triggered on September 30, 2026, and December 31, 2025, SCE would have been required to post $9 million and $3 million of additional collateral, respectively, most of which is related to outstanding net payables under the contracts.
SCE presents its derivative assets and liabilities, recorded at fair value, on a net basis on its condensed 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:
| September 30, 2026 | |||||||||||
| (in millions) | Derivative Assets Short-Term1 | Derivative Liabilities Short-Term2 | |||||||||
| Commodity derivative contracts | |||||||||||
| Gross amounts recognized | $ | $ | |||||||||
| Gross amounts offset on the condensed consolidated balance sheets | ( | ( | |||||||||
| Net amounts presented on the condensed consolidated balance sheets | $ | $ | |||||||||
| December 31, 2025 | |||||||||||
| (in millions) | Derivative Assets Short-Term1 | Derivative Liabilities Short-Term2 | |||||||||
| Commodity derivative contracts | |||||||||||
| Gross amounts recognized | $ | $ | |||||||||
| Cash collateral and related accruals | ( | ||||||||||
| Net amounts presented on the condensed consolidated balance sheets | $ | $ | |||||||||
1Included in "Other current assets" on SCE's condensed consolidated balance sheets.
2Included in "Other current liabilities" on SCE's condensed consolidated balance sheets.
At September 30, 2026, SCE had $6 million of cash collateral and related accruals included in "Other current assets" on the condensed consolidated balance sheets. At December 31, 2025, SCE had $66 million of cash collateral and related accruals, of which $57 million was offset against derivative liabilities and $9 million was reflected in "Other current assets" on the condensed consolidated balance sheets.
Financial Statement Impact of Derivative Instruments
SCE recognizes realized gains and losses on derivative instruments as purchased power expense and unrealized gains and losses as regulatory assets or liabilities. Both realized and unrealized gains and losses are expected to be recovered from customers and therefore do not affect earnings. Cash flows from derivative activities, including cash collateral, are reported in cash flows from operating activities in SCE's condensed consolidated statements of cash flows.
46
The following table summarizes the gains/(losses) of SCE's economic hedging activity:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Realized | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Unrealized | ( | ( | |||||||||||||||||||||
Notional Volumes of Derivative Instruments
The following table summarizes the notional volumes of derivatives used for SCE's economic hedging activities:
| Commodity | Unit of Measure | Economic Hedges | |||||||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||||||||
| Electricity options, swaps and forwards | Gigawatt hours | ||||||||||||||||
| Natural gas options, swaps and forwards | Billion cubic feet | ||||||||||||||||
| Congestion revenue rights | Gigawatt hours | ||||||||||||||||
Fin Toll arrangements | Gigawatt hours | ||||||||||||||||
Note 7. Revenue
The following table is a summary of SCE's revenue:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Revenue from contracts with customers1 | |||||||||||||||||||||||
| Commercial | $ | $ | $ | $ | |||||||||||||||||||
| Residential | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
Total revenue from contracts with customers | |||||||||||||||||||||||
Alternative revenue program and other2 | ( | ( | ( | ||||||||||||||||||||
| Total operating revenue | $ | $ | $ | $ | |||||||||||||||||||
1SCE recorded CPUC revenue based on annual revenue requirement set by a methodology established in the GRC proceedings and FERC revenue authorized through a formula rate. For further information, see Note 1.
2Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues.
At September 30, 2026 and December 31, 2025, SCE's receivables related to contracts from customers were $3.4 billion and $2.7 billion, respectively, which include accrued unbilled revenue of $1.3 billion and $1.2 billion, respectively.
Deferred Revenue
As of September 30, 2026, SCE has deferred revenue of $331 million related to the sale of the use of transfer capability of West of Devers transmission line, of which $13 million and $318 million are included in "Other current liabilities" and "Other deferred credits and other long-term liabilities," respectively, on SCE's condensed consolidated balance sheets. The deferred revenue is amortized straight-line over 30 years starting in 2021.
47
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 September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||
| Edison International: | |||||||||||||||||||||||||||||||||||
| Income from operations before income taxes | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||
State income tax, net of federal income tax effect1 | % | % | % | % | |||||||||||||||||||||||||||||||
Tax credits2 | ( | ( | % | ( | ( | % | ( | ( | % | ( | ( | % | |||||||||||||||||||||||
Other adjustments | |||||||||||||||||||||||||||||||||||
| Property-related | ( | ( | % | ( | ( | % | ( | ( | % | ( | ( | % | |||||||||||||||||||||||
| Other | ( | ( | % | % | % | ( | ( | % | |||||||||||||||||||||||||||
| Effective tax rate | $ | ( | ( | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||
| SCE: | |||||||||||||||||||||||||||||||||||
| Income from operations before income taxes | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Federal statutory tax rate | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||
State income tax, net of federal income tax effect1 | % | % | % | % | |||||||||||||||||||||||||||||||
Tax credits2 | ( | ( | % | ( | ( | % | ( | ( | % | ( | ( | % | |||||||||||||||||||||||
Other adjustments | |||||||||||||||||||||||||||||||||||
| Property-related | ( | ( | % | ( | ( | % | ( | ( | % | ( | ( | % | |||||||||||||||||||||||
| Other | ( | ( | % | % | % | ( | ( | % | |||||||||||||||||||||||||||
| Effective tax rate | $ | ( | ( | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||
1State taxes in California represents substantially all of the tax effect in this category.
2Includes $236 million recorded in 2026 upon regulatory approval to return the net proceeds, with interest, to customers from the 2025 monetization of investment tax credits generated by utility-owned energy storage projects and nuclear production tax credits.
The CPUC requires flow-through ratemaking. For SCE, it includes property-related adjustments, the corporate alternative minimum tax, and other temporary differences which reverse over time. These flow-through items increase or decrease SCE's current authorized revenue requirements in rate cases and give rise to regulatory assets or liabilities for deferred income taxes expected to be realized in future periods. Differences between the amounts authorized in SCE's rate cases, adjusted for balancing and memorandum account activity, and flow-through amounts recorded also result in changes to tax-related regulatory assets and liabilities, with a corresponding impact on the effective tax rate, to the extent recovery in future rates is probable. For further information, see Note 11.
The IRA imposed a CAMT, which Edison International and SCE are subject to beginning in 2026. Edison International and SCE expect that any CAMT paid will be creditable against future income taxes. In addition, under the IRA, SCE expects to generate $158 million of investment tax credits in future periods related to utility-owned storage projects. The associated tax benefits will be recognized and returned to customers as the credits are utilized.
Tax Disputes
The tax years currently open for examination are 2022 – 2025 for the Internal Revenue Service and 2013 – 2018 and 2021 – 2025 for the Franchise Tax Board.
48
Income Taxes Paid
Edison International makes income tax payments to the taxing authorities on behalf of the consolidated group. SCE makes tax-allocation payments to Edison International under the applicable tax-allocation agreement. SCE does not make payments to the taxing authorities directly.
The components of income tax paid, net of refunds by location of taxing jurisdiction are:
| Edison International | SCE | ||||||||||||||||||||||
| Nine months ended September 30, | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Federal | $ | $ | $ | $ | |||||||||||||||||||
| California | |||||||||||||||||||||||
Note 9. Compensation and Benefit Plans
Pension Plans
Net periodic pension expense components are:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Edison International: | |||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Non-service cost (benefit) | |||||||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss1 | |||||||||||||||||||||||
| Regulatory adjustment | ( | ( | ( | ( | |||||||||||||||||||
Total non-service benefit2 | ( | ( | ( | ( | |||||||||||||||||||
| Total expense | $ | $ | $ | $ | |||||||||||||||||||
| SCE: | |||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Non-service cost (benefit) | |||||||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss1 | |||||||||||||||||||||||
| Regulatory adjustment | ( | ( | ( | ( | |||||||||||||||||||
Total non-service benefit2 | ( | ( | ( | ( | |||||||||||||||||||
| Total expense | $ | $ | $ | $ | |||||||||||||||||||
1Represents the amount of net loss reclassified from other comprehensive loss.
2Included in "Other income, net" on Edison International's and SCE's condensed consolidated statements of income.
49
Postretirement Benefits Other Than Pensions ("PBOP")
Net periodic PBOP expense components for Edison International and SCE are:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Non-service cost (benefit) | |||||||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of net gain | ( | ( | ( | ( | |||||||||||||||||||
| Regulatory adjustment | |||||||||||||||||||||||
Total non-service benefit1 | ( | ( | ( | ( | |||||||||||||||||||
| Total earnings | $ | ( | $ | $ | ( | $ | |||||||||||||||||
1Included in "Other income, net" on Edison International's and SCE's condensed consolidated statements of income.
Note 10. Investments
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 | ||||||||||||||||||||||||||||
| (in millions) | Longest Maturity Dates | September 30, 2026 | December 31, 2025 | September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||
| Municipal bonds | 2067 | $ | $ | $ | $ | ||||||||||||||||||||||||
| Government and agency securities | 2074 | ||||||||||||||||||||||||||||
| Corporate bonds | 2072 | ||||||||||||||||||||||||||||
Short-term investments and receivables/(payables)1 | One-year | ( | |||||||||||||||||||||||||||
| Total debt securities and other | $ | $ | |||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
Total2 | $ | $ | |||||||||||||||||||||||||||
1As of September 30, 2026 and December 31, 2025, short-term investments included $4 million and $27 million of repurchase agreement payable by financial institutions which earned interest, were fully secured by U.S. Treasury securities, and mature by October 1, 2026 and January 2, 2026, respectively.
2Represents amounts before reduction for deferred tax liabilities on net unrealized gains of $479 million and $455 million as of September 30, 2026 and December 31, 2025, respectively.
Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $2.1 billion and $2.0 billion at September 30, 2026 and December 31, 2025, respectively.
The following table summarizes the gains and losses for the trust investments:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Gross realized gains | $ | $ | $ | $ | |||||||||||||||||||
| Gross realized losses | ( | ( | ( | ( | |||||||||||||||||||
| Net unrealized (losses) gains for equity securities | ( | ||||||||||||||||||||||
50
Due to regulatory mechanisms, changes in the assets of the trusts from income or loss items do not materially affect earnings.
Note 11. Regulatory Assets and Liabilities
Regulatory Assets
SCE's regulatory assets included on the condensed consolidated balance sheets are:
| (in millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Current: | |||||||||||
| Regulatory balancing and memorandum accounts | $ | $ | |||||||||
| Other | |||||||||||
| Total current | |||||||||||
| Long-term: | |||||||||||
| Deferred income taxes | |||||||||||
| Unamortized investments, net of accumulated amortization | |||||||||||
| Unamortized losses on reacquired debt | |||||||||||
| Regulatory balancing and memorandum accounts | |||||||||||
| Environmental remediation | |||||||||||
| Recovery assets | |||||||||||
| Other | |||||||||||
| Total long-term | |||||||||||
| Total regulatory assets | $ | $ | |||||||||
For more information, see Note 11 of the 2025 Form 10-K.
Regulatory Liabilities
SCE's regulatory liabilities included on the condensed consolidated balance sheets are:
| (in millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Current: | |||||||||||
| Regulatory balancing and memorandum accounts | $ | $ | |||||||||
| Energy derivatives | |||||||||||
| Other | |||||||||||
| Total current | |||||||||||
| Long-term: | |||||||||||
| Costs of removal | |||||||||||
| Deferred income taxes | |||||||||||
| Recoveries in excess of ARO liabilities | |||||||||||
| Regulatory balancing and memorandum accounts | |||||||||||
| Pension and other postretirement benefits | |||||||||||
| Other | |||||||||||
| Total long-term | |||||||||||
| Total regulatory liabilities | $ | $ | |||||||||
For more information, see Note 11 of the 2025 Form 10-K.
51
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, 2026 | December 31, 2025 | |||||||||
| Asset (liability) | |||||||||||
| Energy procurement related costs | $ | $ | |||||||||
| Public purpose and energy efficiency | ( | ( | |||||||||
GRC-related balancing accounts1 | ( | ||||||||||
| FERC-related balancing accounts | |||||||||||
Wildfire risk mitigation and insurance2 | |||||||||||
Wildfire and drought restoration3 | |||||||||||
| Woolsey Settlement cost recovery | |||||||||||
| Tax accounting memorandum account | ( | ( | |||||||||
| Other | |||||||||||
| (Liabilities) assets, net | $ | ( | $ | ||||||||
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 Targeted Undergrounding Program and Rapid Earth Fault Current Limiter 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 Eaton Fire and 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 The wildfire and drought restoration regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account.
Note 12. Commitments and Contingencies
Indemnities
Edison International and SCE have agreed to provide indemnification through contracts entered into in the normal course of business and through contracts related to acquisitions and dispositions. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, indemnities for specified environmental liabilities and income taxes 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, all of which are subject to uncertainties. 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.
52
Southern California Wildfires and Mudslides
Unprecedented weather conditions in California due to climate change and greater concentrations of residents in high-fire risk areas, among other things, have contributed to wildfires, including those where SCE's equipment has been alleged to be associated with the fire's ignition, that have caused loss of life and substantial damage in SCE's service area.
Numerous claims related to wildfire events have been initiated against SCE and Edison International. Edison International and SCE have, or may, incur material losses in connection with the 2017/2018 Wildfire/Mudslide Events, the Other Wildfire Events that are described below, and the January 2025 Eaton Fire. Of the Other Wildfire Events described below, only the 2017 Creek Fire ignited prior to the adoption of AB 1054 in July 2019. SCE's equipment has been, and may further be, alleged to be associated with other wildfires that have originated in Southern California, and SCE's service area remains susceptible to additional wildfire activity.
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 condemnation when a utility's facilities that are serving the public 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 claims, may require estimated losses to be accrued under accounting standards.
Estimates and Assumptions
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: volume of claims, damages asserted and associated loss, opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, prior experience litigating and settling wildfire litigation claims, the amount of insurance that may offset losses, and estimating contributory liabilities from third parties who may be responsible for portions of loss.
Estimated losses for wildfire litigation are based on a number of assumptions and are subject to change as additional information becomes available. 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 and uncertainty in estimating settlement outcomes. For instance, SCE receives additional information with respect to damages claimed as 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 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 and potential plaintiffs, uncertainties related to litigation processes, including whether potential 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 wildfire events, and the uncertainty as to how these factors impact future settlements.
53
Litigation
2017/2018 Wildfire/Mudslide Events
Wildfires in SCE's service area 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 CAL FIRE, have determined that the largest of the 2017 fires in SCE's service area originated on December 4, 2017, in the Anlauf Canyon area of Ventura County, followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula. 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 service area, the Woolsey Fire, originated in Ventura County. 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.
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 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 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 October 22, 2026, in addition to the outstanding claims of approximately 30 individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs outstanding. SCE has settled all fire suppression claims and subrogation plaintiffs' claims related to the 2017/2018 Wildfire/Mudslide Events, except for one indemnification claim.
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. Once SCE has settled all individual plaintiff claims in the TKM litigation that impact the corresponding cross-claims, SCE intends to appeal certain procedural issues to maintain its ability to pursue the cross-claims.
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 October 22, 2026, SCE has entered into settlements with approximately 13,800 individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation. The statutes of limitations for individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events have expired.
In October 2021, SCE and the SED executed an 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 was composed 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 $125 million and $250 million of third-party uninsured claims payments (and related financing costs) in the TKM litigation and the Woolsey Fire litigation, respectively. 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 did not admit imprudence, negligence, or liability with respect to the 2017/2018 Wildfire/Mudslide Events in the SED Agreement.
Other Wildfire Events
SCE has settled substantially all of the claims that were filed against it related to the 2017 Creek Fire, the 2020 Bobcat Fire, and the 2020 Silverado Fire and does not expect to incur additional losses in excess of amounts accrued for each such fire. While Edison International and SCE may incur material losses in excess of the amounts accrued for certain of the Other Wildfire Events, Edison International and SCE expect that additional 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 additional losses after expected recoveries from insurance and through electric rates will not be material.
54
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 firefighters. In August 2023, SCE received a signed report of investigation from the 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. The SED issued an undated report listing alleged violations of CPUC General Orders by SCE related to the Saddle Ridge Fire and noting that the alleged violations, under certain circumstances, could have led to a fire ignition. Multiple lawsuits related to the Saddle Ridge Fire were filed by plaintiffs naming SCE as defendant. An inverse condemnation bench trial in the Saddle Ridge Fire litigation commenced in October 2026 for the only remaining plaintiff alleging inverse condemnation. SCE has accrued charges for potential losses relating to the Saddle Ridge Fire.
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 was led by the OCFA. The OCFA has retained SCE equipment in connection with its investigation. In September 2024, SCE received a report of investigation from the OCFA, in which the OCFA finds that the Coastal Fire was unintentionally caused by sparks from overhead SCE electrical equipment igniting vegetation under the equipment. The SED issued a notice of violation in 2025 with respect to the Coastal Fire. SCE has settled subrogation plaintiff claims and claims brought by the County of Orange related to the Coastal Fire. Individual plaintiffs have also filed complaints against SCE related to the Coastal Fire. As of October 22, 2026, no trials are 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 charges for potential losses relating to the Coastal Fire.
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 an 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 March 2025, the SED issued a citation for approximately $2 million for alleged violations of the SED's rules and regulations, including SCE's failure post-fire to comply with clearance requirements with respect to its electrical conductor. SCE has settled subrogation plaintiff claims related to the Fairview Fire. 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 Fairview Fire. As of October 22, 2026, a bellwether trial in the Fairview Fire litigation is scheduled for April 2027.
2025 Eaton Fire
In January 2025, several wind-driven wildfires impacted portions of SCE's service area, causing loss of life, substantial damage to both residential and business properties and service outages for SCE customers. One of the largest of these wildfires, the "Eaton Fire," ignited in SCE's service area in Los Angeles County and spread due to a number of contributing factors under conditions of an extreme Santa Ana windstorm.
CAL FIRE has reported that the Eaton Fire burned approximately 14,000 acres and resulted in 19 civilian fatalities and 9 fire personnel injuries/illnesses. In addition, according to preliminary information provided by CAL FIRE, the Eaton Fire destroyed approximately 6,018 single residence structures, 3,146 other minor structures, 96 multiple residences and 158 mixed commercial/residential and nonresidential commercial structures; and damaged approximately 750 residential structures, 260 other minor structures, 28 multiple residences and 35 mixed commercial/residential and nonresidential commercial structures. Fire authorities have estimated suppression costs at approximately $100 million.
55
Multiple lawsuits related to the Eaton Fire have been initiated against SCE. 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 October 22, 2026, SCE was aware of approximately 2,000 outstanding lawsuits related to the Eaton Fire: representing lawsuits by approximately 38,000 individual plaintiffs and also lawsuits by subrogation plaintiffs and public entity plaintiffs. Bellwether jury trials in the Eaton Fire litigation have been set for January, May, and September 2027. SCE has filed a motion requesting continuation of the January 2027 trial to June 2027.
The Los Angeles County Fire Department (the “LACoFD”) led the investigation into the origin and cause of the Eaton Fire, with the assistance of CAL FIRE, and has identified a preliminary area of origin of the fire. In August 2026, the LACoFD and CAL FIRE released initial and supplemental Eaton Fire investigation reports (the “Eaton Reports”) that concluded that the ignition was caused when an electrical arcing event took place on a de-energized idle SCE transmission facility in the preliminary area of origin causing ejected hot metal particles to fall and ignite dry vegetation below the facility.
SCE’s internal review into the facts and circumstances of the Eaton Fire is complex and ongoing. SCE's review includes ongoing inspections of its facilities and records and of third-party information and testing. While SCE has not conclusively determined that its equipment caused the ignition of the Eaton Fire, a viable explanation is that a de-energized idle SCE transmission facility in the preliminary area of origin was associated with the ignition of the fire, and SCE is not aware of evidence pointing to another possible source of ignition. Absent additional evidence, SCE believes that it is likely that its equipment was associated with the ignition of the Eaton Fire. SCE has been pursuing settlement of claims through its Wildfire Recovery Compensation Program.
The SED is also conducting an investigation with respect to the Eaton Fire. In addition, Edison International and SCE are also aware of an ongoing investigation by the Los Angeles District Attorney's Office of the Eaton Fire for the purpose of determining whether any criminal violations might have occurred. SCE could be subject to material fines, penalties, or restitution if it is determined that it failed to comply with applicable laws and regulations. SCE believes that there is no basis for a finding of felony liability with regard to the Eaton Fire.
SCE has entered into settlements with insurance claimants and with individual and business claimants under its Wildfire Recovery Compensation Program related to the Eaton Fire. As of September 30, 2026, SCE had recorded $1.8 billion in losses related to these settlements. SCE had also recorded expected recoveries from customer-funded self-insurance of $917 million, from the Wildfire Fund of $859 million, and through FERC electric rates of $70 million related to the settlements. See "—Settlement of Claims," "—Accrued Losses" and "—Recoveries" below for further details.
No admission of wrongdoing or liability was made in reaching the settlements described above and the claimants that are party to the settlements have agreed to release SCE and Edison International from all claims and potential claims related to or arising from the Eaton Fire.
In light of pending litigation, it is probable that Edison International and SCE will incur additional material losses in connection with the Eaton Fire. Given, among other things, the complexities associated with estimating damages, uncertainties regarding the ultimate number and varying types of claims and the interrelationship among the claims, uncertainties related to the sufficiency of insurance held by plaintiffs and potential plaintiffs, and uncertainties related to litigation processes and the Wildfire Recovery Compensation Program, Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred in connection with the Eaton Fire.
Settlement of Claims
The following table presents settlements paid:
| (in millions) | Inception to September 30, 2026 | Three months ended September 30, 2026 | Nine months ended September 30, 2026 | |||||||||||
| 2017/2018 Wildfire/Mudslide Events | $ | $ | $ | |||||||||||
| Other Wildfire Events | ||||||||||||||
Eaton Fire | ||||||||||||||
| Total | $ | $ | $ | |||||||||||
Edison International and SCE have not admitted wrongdoing or liability as part of any settlements related to the 2017/2018 Wildfire/Mudslide Events, the Other Wildfire Events, or the Eaton Fire. SCE continues to explore reasonable settlement opportunities with plaintiffs in outstanding wildfire litigation.
56
Accrued Losses
The following table presents changes in accrued losses since December 31, 2025:
| (in millions) | 2017/2018 Wildfire/Mudslide Events | Other Wildfire Events | Eaton Fire | Total | ||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | ||||||||||
| Increase in accrued losses | ||||||||||||||
| Amounts paid | ( | ( | ( | ( | ||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | ||||||||||
Edison International's and SCE's condensed consolidated balance sheets included fixed payments to be made under settlements and accrued estimated losses presented in the tables below.
| (in millions) | 2017/2018 Wildfire/Mudslide Events | Other Wildfire Events | Eaton Fire | Total | |||||||||||||
Current portion of wildfire-related claims liabilities1 | $ | $ | $ | $ | |||||||||||||
Long-term wildfire-related claims liabilities2 | |||||||||||||||||
Total balance at September 30, 2026 | $ | $ | $ | $ | |||||||||||||
| (in millions) | 2017/2018 Wildfire/Mudslide Events | Other Wildfire Events | Eaton Fire | Total | |||||||||||||
Current portion of wildfire-related claims liabilities1 | $ | $ | $ | $ | |||||||||||||
Long-term wildfire-related claims liabilities2 | |||||||||||||||||
Total balance at December 31, 2025 | $ | $ | $ | $ | |||||||||||||
1At September 30, 2026, current liabilities related to 2017/2018 Wildfire/Mudslide Events consisted of $20 million of short-term payables under the SED Agreement. At December 31, 2025, current liabilities related to 2017/2018 Wildfire/Mudslide Events consisted of $6 million of settlements executed and $25 million of short-term payables under the SED Agreement.
2At September 30, 2026, long-term wildfire-related claims related to 2017/2018 Wildfire/Mudslide Events consisted of $12 million of long-term payables under the SED Agreement and $110 million of estimate of expected losses for remaining alleged and potential claims. At December 31, 2025, long-term wildfire-related claims related to 2017/2018 Wildfire/Mudslide Events consisted of $17 million of long-term payables under the SED Agreement and $144 million of estimate of expected losses for remaining alleged and potential claims.
Management reviews its loss estimates for remaining alleged and potential claims related to wildfire litigation quarterly. Edison International and SCE have accrued their best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events and at the low end of the estimated range of reasonably possible losses for the Other Wildfire Events as no amount within the range of reasonably possible losses for the Other Wildfire Events appears, at this time, to be a better estimate than any other amount within the range.
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 and Other Wildfire Events. Due to the number of uncertainties and possible outcomes related to the 2017/2018 Wildfire/Mudslide Events and Other Wildfire Events litigation, Edison International and SCE cannot estimate the upper end of the range of reasonably possible losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events or the Other Wildfire Events. 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 CAL OES's claim in the TKM litigation, for which the statute of limitations has been tolled, as losses from these alleged and potential claims are not estimable at this time.
While SCE recorded losses related to settlements that have been entered into related to the Eaton Fire, Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred in connection with the Eaton Fire.
57
For the three and nine months ended September 30, 2026, SCE recorded wildfire-related claims, net of expected recoveries as follows:
| Three months ended September 30, 2026 | ||||||||||||||
| (in millions) | Eaton Fire | Total | ||||||||||||
| Wildfire-related claims | $ | $ | ||||||||||||
| Expected recoveries from Wildfire Fund | ( | ( | ||||||||||||
Total pre-tax (gain)/charge | ||||||||||||||
Income tax expense/(benefit) | ||||||||||||||
Total after-tax (gain)/charge | $ | $ | ||||||||||||
| Nine months ended September 30, 2026 | ||||||||||||||
| (in millions) | Other Wildfire Events | Eaton Fire | Total | |||||||||||
| Wildfire-related claims | $ | $ | $ | |||||||||||
Reversal of expected recoveries from insurance and third parties | ||||||||||||||
| Expected recoveries from Wildfire Fund | ( | ( | ||||||||||||
Expected recoveries from CPUC customers | ( | ( | ||||||||||||
Expected recoveries from FERC customers | ( | ( | ||||||||||||
Total pre-tax gain | ( | ( | ||||||||||||
Income tax expense | ||||||||||||||
Total after-tax gain | $ | ( | $ | $ | ( | |||||||||
58
For the three and nine months ended September 30, 2025, SCE recorded wildfire-related claims, net of expected recoveries as follows:
| Three months ended September 30, 2025 | ||||||||||||||
| (in millions) | Eaton Fire2 | Total | ||||||||||||
| Wildfire-related claims | $ | $ | ||||||||||||
Customer-funded wildfire self-insurance | ( | ( | ||||||||||||
Expected recoveries from FERC customers | ( | ( | ||||||||||||
Total pre-tax (gain)/charge | ||||||||||||||
Income tax expense/(benefit) | ||||||||||||||
Total after-tax (gain)/charge | $ | $ | ||||||||||||
| Nine months ended September 30, 2025 | ||||||||||||||
| (in millions) | 2017/2018 Wildfire/Mudslide Events | Other Wildfire Events | Eaton Fire2 | Total | ||||||||||
| Wildfire-related claims | $ | $ | $ | $ | ||||||||||
Expected recoveries from insurance and third parties1 | ( | ( | ||||||||||||
Customer-funded wildfire self-insurance | ( | ( | ||||||||||||
Expected (recoveries from)/refund to CPUC customers | ( | ( | ||||||||||||
Expected refund to/(recoveries from) FERC customers | ( | ( | ||||||||||||
Total pre-tax gain | ( | ( | ( | |||||||||||
Income tax expense | ||||||||||||||
Total after-tax gain | $ | ( | $ | ( | $ | $ | ( | |||||||
1For the nine months ended September 30, 2025, EIS incurred $50 million insurance expenses, which consisted of $47 million of wildfire claims and $3 million of related legal costs.
2In the third quarter of 2025, SCE recorded $300 million in losses related to the Eaton Subrogation Settlement, including accrued estimated losses. Of these accrued estimated losses, $5 million was deferred as a FERC regulatory asset, eligible to be included in FERC rates when the losses are paid. As a result, wildfire-related claims reported on SCE's condensed consolidated statements of income was $295
In total, through September 30, 2026, SCE has recorded losses of $12.9 billion, expected recoveries from insurance and third parties of $2.8 billion, expected recoveries through electric rates of $3.6 billion, expected recoveries from customer-funded wildfire self-insurance of $0.9 billion, and expected recoveries from the Wildfire Fund of $0.9 billion related to the 2017/2018 Wildfire/Mudslide Events, the Other Wildfire Events, and the Eaton Fire. This resulted in cumulative after-tax net charges to earnings recorded through September 30, 2026 of $3.4 billion.
Recoveries
Wildfire-related losses that Edison International or SCE incurs may be recovered from insurance, including customer-funded wildfire self-insurance, third parties, the Wildfire Fund, and through electric rates. Fines and penalties incurred in connection with a wildfire are not recoverable from insurance, the Wildfire Fund, or through electric rates.
The following tables summarize expected recoveries from insurance and third parties, the Wildfire Fund, and through electric rates for the Other Wildfire Events and the Eaton Fire as of September 30, 2026 and December 31, 2025. For recoveries related to the 2017/2018 Wildfire/Mudslide Events, see below discussion in "—Recoveries through Electric Rates."
59
| September 30, 2026 | ||||||||||||||
| (in millions) | Other Wildfire Events | Eaton Fire | Total | |||||||||||
Long-term receivables from insurance and third parties | $ | $ | $ | |||||||||||
Short-term receivables from Wildfire Fund recoveries1 | ||||||||||||||
Long-term receivables from Wildfire Fund recoveries1 | ||||||||||||||
| FERC-related balancing accounts | ||||||||||||||
CPUC-regulatory assets2 | ||||||||||||||
| Total | $ | $ | $ | |||||||||||
| December 31, 2025 | |||||||||||||||||
| (in millions) | Other Wildfire Events | Eaton Fire | Total | ||||||||||||||
| Expected recoveries from customer-funded wildfire self-insurance | $ | $ | $ | ||||||||||||||
Long-term receivables from insurance and third parties | |||||||||||||||||
| Long-term receivables from Wildfire Fund recoveries | |||||||||||||||||
| FERC-related balancing accounts | |||||||||||||||||
CPUC-regulatory assets2 | |||||||||||||||||
| Total | $ | $ | $ | ||||||||||||||
1As of September 30, 2026, SCE has received $207 million from the Wildfire Fund. Short-term receivables from Wildfire Fund recoveries are included in "Other current assets" and long-term receivables from Wildfire Fund recoveries are included in "Long-term insurance receivables" on the condensed consolidated balance sheets.
2This is included in wildfire risk mitigation and insurance regulatory assets as part of the net regulatory balancing and memorandum accounts table presented in Note 11.
Recoveries through Insurance
Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. SCE has exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. Expected recoveries from insurance recorded for the Other Wildfire Events are supported by SCE's insurance coverage for multiple policy years. SCE exhausted self-insurance recoveries available for losses related to the Eaton Fire as a result of costs incurred and settlements entered into as of February 11, 2026.
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. SCE recovered $2.0 billion from its insurance carriers in relation to the claims related to the 2017/2018 Wildfire/Mudslide Events and $18 million related to the Creek Fire. Additional insurance was not available for the Creek Fire because wildfire insurance for the period in which the fire was ignited was almost fully exhausted as a result of the TKM litigation.
SCE has approximately $1.2 billion of wildfire-specific insurance coverage for events that occurred during the period June 1, 2019 through June 30, 2020, subject to up to $165 million of co-insurance and self-insured retention, which resulted in net coverage of approximately $1.0 billion.
SCE has approximately $1.0 billion of wildfire-specific insurance coverage for events that occurred during the period July 1, 2020 through June 30, 2021, subject to up to $130 million of self-insured retention and co-insurance per fire, which resulted in net coverage of approximately $870 million.
SCE has approximately $1.0 billion of wildfire-specific insurance coverage for events that occurred during the period July 1, 2021 through June 30, 2022, subject to up to $163 million of self-insured retention and co-insurance per fire, which resulted in net coverage of approximately $837 million.
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 $63 million of self-insured retention and co-insurance per fire, which resulted in net coverage of approximately $937 million.
60
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 commercial insurance carriers (commercial insurance carriers other than EIS are referred to herein as "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 (see Note 16 for further information). Wildfire insurance premiums paid for the July 1, 2022 through June 30, 2023 policy period are being recovered through customer rates. As a result of an EIS insurance policy amendment, in the first quarter of 2025, EIS recorded a $50 million wildfire insurance expense (by utilizing the premiums already collected as discussed above), and SCE recorded the corresponding insurance recovery from EIS, which reduced expected WEMA recoveries. In the Edison International condensed consolidated statements of income, the EIS insurance expense is eliminated with SCE's insurance recovery from EIS.
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, in lieu of obtaining wildfire liability insurance from the commercial insurance market. Beginning on July 1, 2023, SCE implemented its customer-funded wildfire self-insurance program. In 2023 and 2024, SCE collected $150 million and $300 million, respectively, through CPUC-jurisdictional rates in support of SCE's customer-funded wildfire self-insurance program.
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. From 2025 through 2028, approximately $300 million would be collected annually, subject to revenue requirement adjustments, until a total available self-insurance accrual amount of $1.0 billion is achieved. In 2025, SCE collected $300 million through CPUC-jurisdictional rates in support of its customer-funded wildfire self-insurance program.
SCE has $1.0 billion of customer-funded self-insurance coverage available for wildfires ignited between January 1, 2025 and December 31, 2025, primarily the Eaton Fire, subject to up to a maximum shareholder contribution of $12.5 million.
SCE has $1.0 billion of customer-funded self-insurance coverage available for wildfires ignited between January 1, 2026 and December 31, 2026 under its self-insurance program described below, subject to up to a maximum possible shareholder contribution of $12.5 million. SCE's self-insurance program meets its obligation to maintain reasonable insurance coverage under the California Wildfire Legislation for the January 1, 2026 through December 31, 2026 period.
When losses are accrued for wildfire-related claims for wildfires that occur between July 1, 2023 and the end of 2028, 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 contribution of $12.5 million per policy year. As a result of accrued losses related to the Eaton Fire, in April 2026 the CPUC approved SCE's request to adjust revenue requirements to be collected from customers from $274 million to $650 million for 2026. As of September 30, 2026, SCE collected $330 million through CPUC-jurisdictional rates for SCE's customer-funded wildfire self-insurance program and is authorized to collect an additional $163 million through December 31, 2026 with the remaining $157 million expected to be collected in 2027, subject to regulatory balancing account adjustments.
Recoveries through Electric Rates
Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets in the period it concludes that such costs are probable of future recovery in electric rates. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates, including by FERC requiring refund of amounts recovered, if it is determined that such losses were not prudently incurred. SCE utilizes objectively determinable evidence to form its view on the probability of future recovery and refund.
CPUC Recoveries Pre-AB 1054
The only precedent in which a California investor-owned utility sought recovery for uninsured wildfire claims related costs and the CPUC made a prudency determination is SDG&E's 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"). 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.
Under the TKM Settlement Agreement approved by the CPUC in January 2025, SCE is authorized to recover 60 %, or approximately $1.6 billion, of approximately $2.7 billion of losses, consisting of approximately $1.3 billion of uninsured claims paid as of May 31, 2024 and $0.3 billion of associated costs, composed of legal fees and financing costs incurred as
61
of May 31, 2024 and estimated ongoing financing costs. As a result, in 2025, SCE recorded a regulatory asset for recoveries authorized under the TKM Settlement Agreement. SCE is also authorized to recover 60 % of claims paid and related costs incurred after May 31, 2024, other than for $125 million of uninsured claims and related financing costs which SCE waived its right to seek recovery of under the SED Agreement. As of September 30, 2026, SCE has recorded an additional $9 million in regulatory assets against uninsured claims and financing costs incurred after May 31, 2024 that exceeded $125 million. SCE was also authorized to recover approximately $55 million of approximately $65 million in incremental restoration costs, inclusive of operations and maintenance expenses, incurred related to the Thomas and Koenigstein Fires. Additionally, SCE recorded $50 million of shareholder-funded wildfire mitigation expenses.
Under the Woolsey Settlement Agreement approved by the CPUC in December 2025, SCE is authorized to recover 35 %, or approximately $2.0 billion, of approximately $5.6 billion of losses, consisting of approximately $1.6 billion of uninsured claims paid as of May 31, 2025, and $0.4 billion of costs, comprised of legal costs paid as of May 31, 2025, and estimated ongoing financing costs. SCE is also authorized to recover 35 % of losses paid after May 31, 2025. SCE’s requests for recovery exclude $250 million of uninsured claims and related financing costs which SCE waived its right to seek recovery of under the SED Agreement. As a result, in 2025, SCE recorded a regulatory asset for recoveries authorized under the Woolsey Settlement Agreement. SCE was also authorized to recover approximately $71 million of approximately $84 million in incremental restoration costs, inclusive of operations and maintenance expenses, incurred related to the Woolsey Fire.
In the Woolsey Settlement Agreement, SCE also waived its right to seek recovery of uninsured losses tracked in a Wildfire Expense Memorandum Account and incurred in connection with fires that ignited prior to July 12, 2019, the date AB 1054 was adopted, including the Creek Fire. SCE estimates that the waived pre-AB 1054 losses are approximately $157 million.
CPUC Recoveries Post-AB 1054
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 conduct was prudent.
The Eaton Fire and each of the Other Wildfire Events discussed above, with the exception of the Creek Fire, was ignited after July 12, 2019, and SCE has held a valid safety certification since July 15, 2019. While a California investor-owned utility has not yet received a final decision on a prudency review related to 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 for investor-owned utilities holding a safety certification 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 created. As such, SCE has concluded, at this time, that uninsured CPUC-jurisdictional wildfire-related costs related to wildfire events occurring after the adoption of AB 1054 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. Evidence that SCE may consider in its evaluation includes, among other factors, its status as a holder of a valid safety certification, the legislative intent of AB 1054, facts and other evidence known to date related to the ignition, and any regulatory decisions on wildfire cost recovery, including those illustrating the interpretation and/or application of the prudency framework under the California Wildfire Legislation. The CPUC may not allow SCE to recover uninsured losses related to the wildfire events through electric rates if it is determined that such losses were not prudently incurred. In an AB 1054 proceeding, the CPUC may allocate costs taking into account factors both within and beyond the utility’s control that may have exacerbated the costs, including humidity, temperature, and winds.
FERC Recoveries
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, the Other Wildfire Events, and the Eaton Fire. In total, as of September 30, 2026, SCE's recoveries received since inception, and expected to be received through FERC electric rates, were $440 million related to the 2017/2018 Wildfire/Mudslide Events, $24 million related to the Other Wildfire Events, and $70 million related to the Eaton Fire. FERC recoveries are subject to refund, and SCE will continue to evaluate the probability of recovery and refund obligations of FERC-jurisdictional costs related to the 2017/2018 Wildfire/Mudslide Events, the Other Wildfire Events, and the Eaton Fire 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.
62
Recoveries through the Wildfire Fund
SCE will be reimbursed for losses incurred in excess of $1.0 billion for eligible claims for third-party damages related to the Eaton Fire from the Initial Account, subject to approval of the fund administrator and the Initial Account's claims-paying capacity. The fund administrator has reported that at least $21 billion in the fund's claims-paying capacity will be available for the Eaton Fire. SCE records a receivable for recoveries from the Wildfire Fund when recovery of a recorded loss from the fund is determined to be probable.
SCE will file an application with the CPUC for review of its costs and expenses related to the Eaton Fire after it has resolved all or, if authorized by the CPUC, substantially all third-party damage claims and cross-claims related to the fire, or upon earlier request of the fund administrator. The CPUC will determine the prudency of SCE's ignition-related conduct in a formal proceeding. If the CPUC finds that SCE's conduct related to the ignition of the Eaton Fire was not prudent, SCE will be required to reimburse the Initial Account only for amounts disallowed by the CPUC up to the applicable Liability Cap of approximately $4.3 billion, unless the fund administrator finds that SCE's actions or inactions relative to the ignition of the Eaton Fire constitute conscious or willful disregard of the rights and safety of others, in which case SCE will be required to reimburse the Initial Account for all withdrawn amounts that the CPUC disallowed. SCE believes that there is no basis for a finding of conscious or willful disregard of the rights and safety of others with regard to the Eaton Fire. For further discussion of SCE's reimbursement obligations, see Note 1.
SCE will be able to seek recovery of prudently incurred uninsured wildfire costs not covered by the Initial Account, assessed under the prudency standard clarified under the California Wildfire Legislation, through electric rates.
Environmental Remediation
SCE records its environmental remediation 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 low 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 September 30, 2026, SCE's recorded estimated minimum liability to remediate its 18 identified material sites (sites with a liability balance at September 30, 2026, in which the upper end of the range of expected costs is at least $1 million) was $216 million, including $143 million related to San Onofre. In addition to these sites, SCE also has 15 immaterial sites with a liability balance as of September 30, 2026, for which the total minimum recorded liability was $5 million. Of the $221 million total environmental remediation for SCE, $211 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 $176 million through proceedings that allow 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 could exceed its recorded liability. The upper end of the range of additional costs of approximately $89 million at the identified material sites and $2 million at immaterial sites 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 approximately 35 years, though some sites may require a longer time period. Remediation costs for each of the next five years are expected to range from $6 million to $21 million. Costs incurred for the nine months ended September 30, 2026 and 2025 were $9
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.
63
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 $16 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 $16.4 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
Stock Repurchase Programs
The Edison International Board of Directors authorizes stock repurchase programs to repurchase common stock. These programs are intended to offset dilution from common stock issued under Edison International's long-term incentive compensation programs and are funded using Edison International's working capital. The timing and the amount of any repurchases of common stock will be determined by Edison International's management based on their evaluation of market conditions and other factors. Repurchases 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 programs do not obligate Edison International to acquire any particular amount of common stock, and may be suspended or discontinued at any time at its discretion.
In December 2025, the Edison International Board of Directors authorized a program that provides for the repurchase of up to $70 million of common stock from February 2026 to March 2027 (the "2026 Share Repurchase Program").
In December 2024, the Edison International Board of Directors authorized a program for repurchase of up to $75 million of its common stock from February 2025 until February 2026 (the "2025 Share Repurchase Program").
During the three months ended September 30, 2026, Edison International repurchased and retired 154,008 shares under the 2026 Repurchase Program. During the nine months ended September 30, 2026, Edison International repurchased and retired 608,336 shares under the 2025 and 2026 Repurchase Programs. As of September 30, 2026, $44 million of common stock remained available for repurchase under the 2026 Repurchase Program.
Preferred Stock
In the first quarter of 2026, Edison International redeemed all remaining shares of its Series A Preferred Stock and repurchased 4,434 414 million and $4 million, respectively. Edison International recorded a $5 million loss on the repurchase and redemption of the preferred stocks, which was reflected in "Preferred stock dividend requirements of Edison International" in the condensed consolidated statements of income.
Preference Stock of SCE
In the first quarter of 2026, SCE redeemed all remaining shares of its Series K for $119 million. SCE recorded a $3 million loss on the redemption of the preference stock, and the loss was reflected in "Preference stock dividend requirements" in the condensed consolidated statements of income.
64
Note 14. Other Income, Net
Other income, net of expenses is as follows:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| SCE other income (expense): | |||||||||||||||||||||||||||||||||||
Equity allowance for funds used during construction | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Increase in cash surrender value of life insurance policies and life insurance benefits | |||||||||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||||||
| Net periodic benefit income – non-service components | |||||||||||||||||||||||||||||||||||
| Civic, political and related activities and donations | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Total SCE other income, net | |||||||||||||||||||||||||||||||||||
| Other income (expense) of Edison International Parent and Other: | |||||||||||||||||||||||||||||||||||
| Net loss on equity securities | ( | ( | |||||||||||||||||||||||||||||||||
| Interest income and other | |||||||||||||||||||||||||||||||||||
Loss on disposition of Trio | ( | ||||||||||||||||||||||||||||||||||
| Total Edison International other income, net | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Note 15. Supplemental Cash Flows Information
Supplemental cash flows information is:
| Edison International | SCE | ||||||||||||||||||||||
| Nine months ended September 30, | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Cash payments: | |||||||||||||||||||||||
| Interest, net of amounts capitalized | $ | $ | $ | $ | |||||||||||||||||||
| Non-cash financing and investing activities: | |||||||||||||||||||||||
| Dividends declared but not paid: | |||||||||||||||||||||||
| Common stock | |||||||||||||||||||||||
| Preference stock of SCE | |||||||||||||||||||||||
SCE's accrued capital expenditures at September 30, 2026 and 2025 were $777 million and $636 million, respectively. Accrued capital expenditures are included in investing activities in the condensed consolidated statements of cash flows in the period paid.
Note 16. Related-Party Transactions
SCE purchased wildfire liability insurance from EIS prior to its customer-funded wildfire self-insurance, which was implemented in July 2023. In addition, one of the EIS wildfire liability insurance policies was amended in February 2025 to reimburse SCE for $50 million in claim costs and related legal expenses for a wildfire occurring during the July 1, 2022 through June 30, 2023 policy period. For further information, see Note 12. The expected insurance recoveries from previously purchased wildfire-related insurance from EIS included in SCE's condensed consolidated balance sheets were $82 million and $226 million at September 30, 2026 and December 31, 2025, respectively.
65
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 principal executive officers and principal 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 third quarter of 2026. Based on that evaluation, Edison International's and SCE's respective principal executive officers and principal 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 third quarter of 2026 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 2025 Form 10-K.
LEGAL PROCEEDINGS
2017/2018 Wildfire/Mudslide Events
The 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 October 22, 2026, in addition to the outstanding claims of approximately 30 of the approximately 15,000 initial individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs outstanding. SCE has settled all fire suppression and subrogation plaintiffs' claims related to the 2017/2018 Wildfire/Mudslide Events, except for one indemnification claim. The litigation could take a number of years to be completely resolved because of the complexity of the matters and number of plaintiffs. The statutes of limitations for individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events have expired.
As of October 22, 2026, SCE was aware of 7 pending unsettled lawsuits representing 15 individual plaintiffs related to the Thomas and Koenigstein Fires and the Montecito Mudslides naming SCE as a defendant. 3 of the 7 lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. One of the lawsuits was filed as a purported class action. The court has denied class certification in the one lawsuit that was filed as a purported class action and plaintiffs have appealed the denial. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. SCE and certain of the individual plaintiffs in the Thomas and Koenigstein Fire litigation have been pursuing settlements of claims under a mediation program adopted to promote an efficient and orderly settlement process. As of October 22, 2026, four opt-in plaintiff households’ damages-only trials are scheduled in 2027.
As of October 22, 2026, SCE was aware of 11 currently pending unsettled lawsuits representing 16 individual plaintiffs related to the Woolsey Fire naming SCE as a defendant. 8 of the 11 lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. 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 and orderly settlement process. As of October 22, 2026, no trials are scheduled 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.
66
Eaton Fire
In January 2025, several wind-driven wildfires impacted portions of SCE's service area, causing loss of life, substantial damage and service outages for SCE customers. One of the largest of these wildfires, the Eaton Fire, ignited in SCE's service area in Los Angeles County and spread due to a number of contributing factors under conditions of an extreme Santa Ana windstorm.
Multiple lawsuits related to the Eaton Fire have been initiated against SCE. 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 October 22, 2026, SCE was aware of approximately 2,000 currently pending unsettled lawsuits related to the Eaton Fire: representing lawsuits by approximately 38,000 individual plaintiffs, lawsuits by subrogation plaintiffs and lawsuits by public entity plaintiffs, including the United States of America, the County of Los Angeles, the City of Pasadena and the City of Sierra Madre, related to the Eaton Fire. Bellwether jury trials in the Eaton Fire litigation have been set for January, May, and September 2027. SCE has filed a motion requesting continuation of the January 2027 trial to June 2027. In January 2026, SCE filed a cross-complaint against certain public and private entities whose actions or inaction may have caused, contributed to or exacerbated the losses that resulted from the fire. Several of the cross-complaint defendants have filed motions challenging SCE’s cross-complaint.
For information on the 2017/2018 Wildfire/Mudslide Events and the Eaton Fire, see "Notes to Condensed Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in this report.
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 million.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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 third quarter of 2026. For further information about Edison International's common stock repurchase programs, see "Notes to Condensed Consolidated Financial Statements—Note 13. Equity."
| Series | (a) Total Number of Shares (or Units Purchased) | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs1 | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs1 | |||||||||||||
| July 1, 2026 to July 31, 2026 | Common Stock | 114,727 | $ | 78.13 | 114,727 | $ | 46,487,196 | ||||||||||
| August 1, 2026 to August 31, 2026 | Common Stock | 38,403 | $ | 68.26 | 38,403 | $ | 43,866,050 | ||||||||||
| September 1, 2026 to September 30, 2026 | Common Stock | 878 | $ | 53.26 | 878 | $ | 43,819,300 | ||||||||||
| Total | Common Stock | 154,008 | $ | 75.53 | 154,008 | $ | 43,819,300 | ||||||||||
1Purchases were made pursuant to Edison International's 2026 Share Repurchase Program disclosed in the 2025 Form 10-K.
OTHER INFORMATION
Trading Plans
During the quarter ended September 30, 2026, no director or Section 16 officer adopted terminated
67
EXHIBITS
| Exhibit Number | Description | |||||||
| 31.1 | ||||||||
| 31.2 | ||||||||
| 32.1 | ||||||||
| 32.2 | ||||||||
| 101.1 | Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended September 30, 2026, filed on October 29, 2026, formatted in Inline XBRL: (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to Condensed Consolidated Financial Statements | |||||||
| 101.2 | Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended September 30, 2026, filed on October 29, 2026, formatted in Inline XBRL: (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) the Notes to Condensed 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.
68
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) | Kara G. Ryan Vice President, Chief Accounting Officer and Controller (Duly Authorized Officer) | |||||||||||||
| Date: | October 29, 2026 | Date: | October 29, 2026 | |||||||||||
69
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, PEDRO J. PIZARRO, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 of Edison International;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 29, 2026
| /s/ PEDRO J. PIZARRO | ||||||||
| PEDRO J. PIZARRO Chief Executive Officer Edison International | ||||||||
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, AARON D. MOSS , certify that:
1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 of Edison International;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 29, 2026
| /s/ AARON D. MOSS | ||||||||
| AARON D. MOSS Chief Financial Officer Edison International | ||||||||
Exhibit 31.2
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, STEVEN D. POWELL, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 of Southern California Edison Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 29, 2026
| /s/ STEVEN D. POWELL | ||||||||
| STEVEN D. POWELL Chief Executive Officer Southern California Edison Company | ||||||||
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, KARA G. RYAN, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 of Southern California Edison Company;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: October 29, 2026
| /s/ KARA G. RYAN | ||||||||
| KARA G. RYAN Vice President, Chief Accounting Officer and Controller Southern California Edison Company | ||||||||
Exhibit 32.1
CERTIFICATION OF
PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 (the "Quarterly Report"), of Edison International (the "Company"), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his knowledge, that:
1.The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2.The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: October 29, 2026
| /s/ PEDRO J. PIZARRO | |||||
| PEDRO J. PIZARRO Chief Executive Officer Edison International | |||||
| /s/ AARON D. MOSS | |||||
| AARON D. MOSS Chief Financial Officer Edison International | |||||
This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
A signed original of this written statement, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION OF
PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 (the "Quarterly Report"), of Southern California Edison Company (the "Company"), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his or her knowledge, that:
1.The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2.The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: October 29, 2026
| /s/ STEVEN D. POWELL | |||||
| STEVEN D. POWELL Chief Executive Officer Southern California Edison Company | |||||
| /s/ KARA G. RYAN | |||||
| KARA G. RYAN Vice President, Chief Accounting Officer and Controller Southern California Edison Company | |||||
This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
A signed original of this written statement, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.