Edison International Files Q3 2024 10-Q

TL;DR

Edison Intl (EIX) filed its Q3 10-Q. Financials and ops update for EIX & SoCal Edison.

AI Summary

Edison International filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the company and its subsidiary, Southern California Edison. Key financial figures and business addresses for both entities are provided, along with their respective SEC file numbers and incorporation details.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Edison International and its subsidiary, Southern California Edison, crucial for understanding the company's current performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Numbers

• 20240930 — Reporting Period End (The financial data in this 10-Q pertains to this date.)
• 20241029 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• EDISON INTERNATIONAL (company) — Filer
• SOUTHERN CALIFORNIA EDISON Co (company) — Filer
• 20240930 (date) — Reporting period end date
• 20241029 (date) — Filing date
• CA (location) — State of incorporation

FAQ

Key Financial Figures

• $1.6 billion — AB 1054 Excluded Capital Expenditures $1.6 billion in wildfire risk mitigation capital exp
• $4 million — ,495 $ 1,335 $ 160 1 Charges of $4 million related to claims from wildfires ignite
• $361 million — s third quarter 2024 earnings increased $361 million from the third quarter of 2023, resulti
• $363 million — g from an increase in SCE's earnings of $363 million and an increase in Edison International
• $2 million — nternational Parent and Other's loss of $2 million. SCE's higher net income consisted of $
• $54 million — n. SCE's higher net income consisted of $54 million of higher core earnings and $309 millio
• $309 million — $54 million of higher core earnings and $309 million of lower non-core loss. Edison Internat
• $3 million — arent and Other's loss increased due to $3 million of higher core loss, partially offset b
• $1 million — f higher core loss, partially offset by $1 million of lower non-core loss. Edison Internat
• $125 million — nths ended September 30, 2024 increased $125 million from the nine months ended September 30
• $161 million — g from an increase in SCE's earnings of $161 million and an increase in Edison International
• $36 million — nternational Parent and Other's loss of $36 million. SCE's higher net income consisted of $
• $35 million — arent and Other's loss increased due to $35 million of lower earnings in non-core items and

Filing Documents

• eix-20240930x10q.htm (10-Q) — 4549KB
• eix-20240930xex10d1.htm (EX-10.1) — 228KB
• eix-20240930xex31d1.htm (EX-31.1) — 23KB
• eix-20240930xex31d2.htm (EX-31.2) — 16KB
• eix-20240930xex32d1.htm (EX-32.1) — 11KB
• eix-20240930xex32d2.htm (EX-32.2) — 11KB
• 0000827052-24-000075.txt ( ) — 20375KB
• eix-20240930.xsd (EX-101.SCH) — 86KB
• eix-20240930_cal.xml (EX-101.CAL) — 96KB
• eix-20240930_def.xml (EX-101.DEF) — 487KB
• eix-20240930_lab.xml (EX-101.LAB) — 725KB
• eix-20240930_pre.xml (EX-101.PRE) — 604KB
• eix-20240930x10q_htm.xml (XML) — 5445KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 1

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 4

, Item 2

Part I, Item 2 MANAGEMENT OVERVIEW 4 Highlights of Operating Results 4 2025 General Rate Case 6 Cost of Capital Trigger 7 Capital Program 7 Southern California Wildfires and Mudslides 8 RESULTS OF OPERATIONS 9 Southern California Edison Company 9 Three months ended September 30, 2024 versus September 30, 2023 10 Earning Activities 10 Cost-Recovery Activities 11 Nine months ended September 30, 2024 versus September 30, 2023 12 Earning Activities 12 Cost-Recovery Activities 13 Supplemental Operating Revenue Information 14 Income Taxes 14 Edison International Parent and Other 14 Loss from Operations 14 LIQUIDITY AND CAPITAL RESOURCES 14 Southern California Edison Company 14 Available Liquidity 15 Regulatory Proceedings 15 Capital Investment Plan 17 Decommissioning of San Onofre 17 Margin and Collateral Deposits 17 Edison International Parent and Other 18 Edison International Income taxes 19 Historical Cash Flows 19 Southern California Edison Company 19 Edison International Parent and Other 22 Contingencies 22 MARKET RISK EXPOSURES 22 i Table of Contents CRITICAL ACCOUNTING ESTIMATES AND POLICIES 22 NEW ACCOUNTING GUIDANCE 23

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 23

, Item 3

Part I, Item 3

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 24

, Item 1

Part I, Item 1 Edison International Consolidated Statements of Income 24 Edison International Consolidated Statements of Comprehensive Income 25 Edison International Consolidated Balance Sheets 26 Edison International Consolidated Statements of Cash Flows 28 SCE Consolidated Statements of Income 29 SCE Consolidated Statements of Comprehensive Income 29 SCE Consolidated Balance Sheets 30 SCE Consolidated Statements of Cash Flows 32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 33 Note 1. Summary of Significant Accounting Policies 33 Note 2. Consolidated Statements of Changes in Equity 37 Note 3. Variable Interest Entities 40 Note 4. Fair Value Measurements 42 Note 5. Debt and Credit Agreements 45 Note 6. Derivative Instruments 46 Note 7. Revenue 48 Note 8. Income Taxes 49 Note 9. Compensation and Benefit Plans 50 Note 10. Investments 51 Note 11. Regulatory Assets and Liabilities 52 Note 12. Commitments and Contingencies 53 Note 13. Equity 66 Note 14. Accumulated Other Comprehensive Loss 67 Note 15. Other Income 67 Note 16. Supplemental Cash Flows Information 68 Note 17. Related-Party Transactions 68

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 69

, Item 4

Part I, Item 4 Disclosure Controls and Procedures 69 Changes in Internal Control Over Financial Reporting 69 Jointly Owned Utility Plant 69

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 69

, Item 1

Part II, Item 1 2017/2018 Wildfire/Mudslide Events 69 Environmental Proceedings 70 ii Table of Contents UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 70

, Item 2

Part II, Item 2 Share Repurchase Program 70 P urchases of Equity Securities by Edison International and Affiliated Purchasers 71 OTHER INFORMATION 71

Item 5

Part II Item 5 EXHIBITS 72

, Item 6

Part II, Item 6

SIGNATURES

SIGNATURES 73 This combined Form 10-Q is separately filed by Edison International and SCE. Information contained in this document relating to SCE is filed by Edison International and separately by SCE. SCE makes no representation as to information relating to Edison International or its subsidiaries, except as it may relate to SCE and its subsidiaries. iii Table of Contents GLOSSARY The following terms and abbreviations appearing in the text of this report have the meanings indicated below. 2017/2018 Wildfire/Mudslide Events the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively 2023 Form 10-K Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2023 2023 MD&A Edison International's and SCE's MD&A for the calendar year 2023, which was included in the 2023 Form 10-K AB 1054 California Assembly Bill 1054, executed by the governor of California on July 12, 2019 AB 1054 Excluded Capital Expenditures $1.6 billion in wildfire risk mitigation capital expenditures that SCE has excluded from the equity portion of SCE's rate base as required under AB 1054 AB 1054 Liability Cap a cap on the aggregate requirement to reimburse the Wildfire Insurance Fund over a trailing three calendar year period which applies if certain conditions are met and is equal to 20% of the equity portion of the utility's transmission and distribution rate base, excluding general plant and intangibles, in the year of the applicable prudency determination ARO(s) asset retirement obligation(s) CAISO California Independent System Operator Cal Advocates the California Public Advocates Office CAL OES California Governor's Office of Emergency Services Capistrano Wind a group of wind projects referred to as Capistrano Wind Capital Structure Compliance Period January 1, 2023 to December 31, 2025, the current compliance period for SCE's CPUC authorized capital structure CCAs community cho

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations iv Table of Contents 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 2017/2018 Wildfires Collectively, all the wildfires that originated in Southern California in 2017 or 2018 where SCE's equipment has been or may be alleged to be associated with the fire's ignition, except for the Thomas Fire, the Koenigstein Fire and the Woolsey Fire Other Wildfires Collectively, the Other 2017/2018 Wildfires and the Post-2018 Wildfires PABA Portfolio Allocation Balancing Account Palo Verde nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest PBOP(s) postretirement benefits other than pension(s) PG&E Pacific Gas & Electric Company Post-2018 Wildfires Collectively, all the wildfires that originated in Southern California after 2018 where SCE's equipment has been or may be alleged to be associated with the fire's ignition PSPS Public Safety Power Shutoff(s) ROE return on common equity RPS California's Renewables Portfolio Standard S&P Standard & Poor's Financial Services LLC San Onofre retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest SCE Southern California Edison Company, a wholly-owned subsidiary of Edison International SCE Recovery Funding LLC a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE SDG&E San Diego Gas & Electric Company SEC U.S. Securities and

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statements that do not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," "targets," and variations of such words and similar expressions, or discussions of strategy or plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to the: ability of SCE to recover its costs through regulated rates, timely or at all, including uninsured wildfire-related and debris flow-related costs (including amounts paid for self-insured retention and co-insurance), costs incurred to mitigate the risk of utility equipment causing future wildfires, and increased costs due to supply chain constraints, inflation and rising interest rates; impact of affordability of customer rates on SCE's ability to execute its strategy, including the impact of affordability on the regulatory approval of operations and maintenance expenses, and proposed capital

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS MANAGEMENT OVERVIEW Highlights of Operating Results Edison International is the ultimate parent holding company of SCE and Edison Energy, LLC, doing business as Trio ("Trio"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio's business activities are currently not material to report as a separate business segment. Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (loss) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (loss) are defined as earnings attributable to Edison International shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as write downs, asset impairments and other income and expense related to changes in law, outcomes in tax, regulatory or legal proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing. Beginning July 1, 2023, SCE implemented a customer-funded wildfire self-insurance program. With the commencement of this program, Edison International and SCE no longer consider claims-related losses for wildfires to be representati