SCE Recovery Funding Details Asset-Backed Structure in 2025 10-K

TL;DR

**SCE Recovery Funding's 10-K confirms its stable, asset-backed structure, making it a low-risk, albeit opaque, investment vehicle tied directly to Southern California Edison's creditworthiness.**

AI Summary

SCE Recovery Funding LLC, a wholly-owned subsidiary of Southern California Edison Company (SCE), filed its 10-K for the fiscal year ended December 31, 2025. The filing indicates that the entity's primary function involves asset-backed securities, with several indentures and recovery property purchase and servicing agreements executed, including a new indenture dated December 1, 2025, with The Bank of New York Mellon Trust Company, N.A. and a corresponding Recovery Property Purchase and Sale Agreement with Southern California Edison Company. The company reported no market value for equity held by non-affiliates as of June 30, 2023, and does not pay compensation to its managers or executive officers, except for an annual independent manager fee of $2,500 to CT Corporation. Key management includes Aaron D. Moss, President and Manager, and Brendan Bond, Treasurer and Manager, who also hold senior roles at SCE and Edison International. The report omits detailed financial statements and risk factors, citing General Instruction J of Form 10-K, which is typical for certain asset-backed issuers.

Why It Matters

This 10-K provides critical insight into the operational structure of SCE Recovery Funding LLC, a special purpose entity designed to manage recovery bonds for Southern California Edison Company. For investors, understanding this structure is crucial as it impacts the credit quality and cash flow stability of the asset-backed securities. The omission of detailed financials and risk factors, while standard for this type of entity, means investors must look to the parent company, Southern California Edison, for a complete financial picture. This filing highlights the ongoing financial engineering within the utility sector to manage specific liabilities, potentially influencing broader market perceptions of utility bond structures and their competitive positioning.

Risk Assessment

Risk Level: low — The risk level is low because SCE Recovery Funding LLC is a special purpose entity with a clearly defined role in managing asset-backed securities, as evidenced by multiple Indentures and Recovery Property Servicing Agreements with The Bank of New York Mellon Trust Company, N.A. and Southern California Edison Company. The entity's structure, as a wholly-owned subsidiary of SCE, and the omission of detailed financial data under General Instruction J of Form 10-K, suggest its financial health is intrinsically linked to its parent, Southern California Edison, which is a regulated utility.

Analyst Insight

Investors should view SCE Recovery Funding LLC as a pass-through entity whose stability is directly tied to Southern California Edison Company. Focus due diligence on SCE's financial health and regulatory environment, as this entity's performance is a direct reflection of its parent's ability to service the underlying recovery property.

Executive Compensation

Key Numbers

• $2,500 — Annual independent manager fee (Paid to CT Corporation for Sean L. Emerick's services)
• December 31, 2025 — Fiscal year end (Reporting period for this 10-K filing)
• June 30, 2023 — Date of market value assessment (No aggregate market value of equity held by non-affiliates reported)
• December 1, 2025 — Date of latest Indenture and Purchase Agreement (New financial agreements executed with The Bank of New York Mellon Trust Company, N.A. and Southern California Edison Company)

Key Players & Entities

• SCE Recovery Funding LLC (company) — Issuing Entity
• Southern California Edison Company (company) — Depositor, Sponsor, and Servicer
• Edison International (company) — Parent company of Southern California Edison Company
• The Bank of New York Mellon Trust Company, N.A. (company) — Indenture Trustee
• Aaron D. Moss (person) — President and Manager of Issuing Entity, Senior Vice President and CFO of SCE
• Brendan Bond (person) — Treasurer and Manager of Issuing Entity, Vice President and Treasurer of SCE
• Sean L. Emerick (person) — Independent Manager of Issuing Entity, Director, Special Services, CT Corporation System
• CT Corporation (company) — Employer of independent manager and recipient of $2,500 annual fee
• PricewaterhouseCoopers LLP (company) — Auditor for Southern California Edison Company as servicer
• KPMG LLP (company) — Auditor for The Bank of New York Mellon Trust Company, N.A. as Indenture Trustee

Forward-Looking Statements

• SCE Recovery Funding LLC will continue to issue and manage asset-backed securities to recover specific costs. (SCE Recovery Funding LLC) — high confidence, target: 2027-12-31
• Southern California Edison Co. will maintain its role as the ultimate parent entity overseeing SCE Recovery Funding LLC's operations. (Southern California Edison Co.) — high confidence, target: 2027-12-31

FAQ

Industry Context

SCE Recovery Funding LLC operates within the structured finance and securitization sector, specifically focused on utility receivables and related assets. The industry is characterized by complex legal and financial structures designed to isolate risk and access capital markets. Trends include evolving regulatory landscapes impacting securitization and the increasing use of specialized entities for financing infrastructure and recovery costs.

Regulatory Implications

As an asset-backed issuer, SCE Recovery Funding LLC is subject to regulations governing securitization and financial reporting. The omission of detailed financial statements and risk factors under General Instruction J highlights a specific regulatory pathway for such entities, but compliance with underlying disclosure requirements for the securities themselves remains critical.

What Investors Should Do

1. Review parent company filings (Edison International/SCE)
2. Analyze the terms of the new Indenture (dated December 1, 2025)
3. Monitor related party transactions and agreements

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2025-12-01: New Indenture and Recovery Property Purchase and Sale Agreement Executed — Indicates ongoing securitization activities and financing arrangements with The Bank of New York Mellon Trust Company, N.A. and Southern California Edison Company.
• 2023-06-30: Market Value Assessment Date — No aggregate market value of equity held by non-affiliates was reported as of this date.
• 2023-04-27: Indenture and Recovery Property Purchase and Sale Agreement — Execution of a prior financing agreement, demonstrating a history of asset-backed securitization.
• 2022-02-15: Indenture and Recovery Property Purchase and Sale Agreement — Execution of a prior financing agreement, demonstrating a history of asset-backed securitization.
• 2021-02-24: Initial Indenture and Recovery Property Purchase and Sale Agreement — Establishment of the initial securitization framework and agreements with The Bank of New York Mellon Trust Company, N.A. and Southern California Edison Company.

Glossary

Indenture

A formal agreement or contract, typically between a bond issuer and a trustee, outlining the terms and conditions of a bond issuance. (SCE Recovery Funding LLC enters into indentures to facilitate its asset-backed securitization activities, defining the rights and obligations related to the issued securities.)

Recovery Property

Assets that are designated and transferred to the securitization entity to serve as collateral for the issued securities. (These are the underlying assets that generate cash flows to repay investors in the securitization, purchased by SCE Recovery Funding LLC from Southern California Edison Company.)

Asset-Backed Securities (ABS)

Financial securities collateralized by a pool of assets such as loans, leases, credit card debt, or receivables. (SCE Recovery Funding LLC's primary function is to issue ABS, which are backed by recovery property purchased from its parent company.)

General Instruction J of Form 10-K

A specific instruction within the SEC's Form 10-K requirements that allows certain asset-backed issuers to omit detailed financial statements and risk factors. (This instruction explains why SCE Recovery Funding LLC's 10-K filing omits extensive financial details and risk factor disclosures, which is common for entities of its type.)

Recovery Property Purchase and Sale Agreement

A contract detailing the terms under which Southern California Edison Company sells 'recovery property' to SCE Recovery Funding LLC. (This agreement is fundamental to the securitization process, defining the transfer of assets that will back the securities issued by SCE Recovery Funding LLC.)

Year-Over-Year Comparison

This filing represents the fiscal year ending December 31, 2025. Due to the omission of detailed financial statements and comparative data as permitted by General Instruction J, a direct year-over-year comparison of key financial metrics like revenue, net income, or margins is not possible from this specific 10-K. However, the execution of a new indenture dated December 1, 2025, indicates continued activity in its securitization business compared to previous periods.

Key Financial Figures

• $2,500 — n the annual independent manager fee of $2,500 paid to CT Corporation, SCE Recovery Fu

Filing Documents

• d332610d10k.htm (10-K) — 80KB
• d332610dex311.htm (EX-31.1) — 5KB
• d332610dex331.htm (EX-33.1) — 44KB
• d332610dex332.htm (EX-33.2) — 49KB
• d332610dex341.htm (EX-34.1) — 5KB
• d332610dex342.htm (EX-34.2) — 11KB
• d332610dex351.htm (EX-35.1) — 4KB
• g332610dsp018.jpg (GRAPHIC) — 3KB
• g332610dsp025.jpg (GRAPHIC) — 4KB
• g332610dsp026.jpg (GRAPHIC) — 5KB
• g332610dsp27.jpg (GRAPHIC) — 3KB
• g332610g0324012031184.jpg (GRAPHIC) — 4KB
• 0001193125-26-121593.txt ( ) — 440KB
• ck0001826571-20251231.xsd (EX-101.SCH) — 67KB
• d332610d10k_htm.xml (XML) — 6KB

Selected Financial Data

Selected Financial Data. Not applicable. Item7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. Omitted pursuant to General Instruction J of Form 10-K. Item7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. Omitted pursuant to General Instruction J of Form 10-K. Item8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. Omitted pursuant to General Instruction J of Form 10-K. Item9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. Omitted pursuant to General Instruction J of Form 10-K. Item9A.

Controls and Procedures

Controls and Procedures. Omitted pursuant to General Instruction J of Form 10-K. Item9B. Other Information. None. PART III Item10. Directors, Executive Officers and Corporate Governance. The following are the managers of the Issuing Entity as of the date of this Annual Report on Form 10-K: Name Age Background Aaron D. Moss 55 President and Manager of the Issuing Entity and Senior Vice President and Chief Financial Officer, Southern California Edison Company ("SCE" or "Servicer") since April 2022. From October 2017 to July 2021, Aaron was Vice President and Controller of SCE. From March 2016 to April 2022, Aaron was Vice President and Controller of SCE's parent, Edison International. Brendan Bond 42 Treasurer and Manager of the Issuing Entity since December 2024 and Vice President and Treasurer of SCE since September 2024. From October 2022 to present, Brendan has been the Treasurer of SCE's parent, Edison International. From December 2021 to October 2022, Brendan was the Assistant Treasurer of both SCE and Edison International. From February 2019 to December 2021, Brendan was the Director of Corporate Finance of Edison International. Sean L. Emerick 59 Independent Manager of the Issuing Entity since September 2020. Director, Special Services, CT Corporation System. From 2007 to 2011, Sean was the Vice President and General Manager of NRAI Corporate Services. From 2011 to 2014 he was Regional Service Manager, Special Services for CT Corporation. Sean has been a Director, Special Services for CT Corporation from 2014 to present. SCE Recovery Funding LLC is a wholly-owned subsidiary of SCE, which in turn is a wholly-owned subsidiary of Edison International. The Edison International Employee Code of Conduct is applicable to all officers and employees of Edison International and its subsidiaries. The Code is available on Edison International's Internet website at www.edisoninvestor.com at "Corporate Governance." Any amendments or wai

Executive Compensation

Executive Compensation. Other than the annual independent manager fee of $2,500 paid to CT Corporation, SCE Recovery Funding LLC does not pay any compensation to its managers or executive officers. Item12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. None. Item13. Certain Relationships and Related Transactions, and Director Independence. Manager Sean Emerick is an independent manager and an employee of CT Corporation Staffing, Inc. Item14. Principal Accounting Fees and Services. Omitted pursuant to General Instruction J of Form 10-K. PART IV Item15. Exhibits, Financial Statement Schedules. (a) Documents filed as a part of the report: (1)

Financial statements

Financial statements. Omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. (2) Financial statement schedules. Omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. (3) Exhibits required by Item 601 of Regulation S (exhibits marked with an asterisk are filed herewith and the others are incorporated by reference): 3.1 Certificate of Formation of SCE Recovery Funding LLC (incorporated by reference to exhibit 3.1 to SCE and SCE Recovery Funding LLC Form SF-1 dated October 26, 2020). 3.2 Amended and Restated Limited Liability Company Agreement of SCE Recovery Funding LLC executed as of September 10, 2020 (incorporated by reference to exhibit 3.2 to SCE and SCE Recovery Funding LLC Form SF-1/A dated January 19, 2021). 3.3 First Amendment to Amended and Restated Limited Liability Company Agreement of SCE Recovery Funding LLC (incorporated by reference to Exhibit 3.3 included as an exhibit to Issuing Entity's Form SF-1/A filed on February 4, 2021). 4.1 Indenture between SCE Recovery Funding LLC and The Bank of New York Mellon Trust Company , N.A. (including the forms of the bonds) dated as of February 24, 2021 (incorporated by reference to exhibit 4.1 to the SCE and SCE Recovery Funding LLC Form 8-K dated February 24, 2021). 4.2 Indenture between SCE Recovery Funding LLC and The Bank of New York Mellon Trust Company , N.A. (including the forms of the bonds) dated as of February 15, 2022 (incorporated by reference to exhibit 4.1 to the SCE and SCE Recovery Funding LLC Form 8-K dated February 15, 2022). 4.3 Indenture between SCE Recovery Funding LLC and The Bank of New York Mellon Trust Company , N.A. (including the forms of the bonds) dated as of April 27, 2023 (incorporated by reference to exhibit 4.1 to the SCE and SCE Recovery Funding LLC Form 8-K dated April 28, 2023). 4.4 Indenture between SCE Recovery Funding LLC and The Bank of New York Mellon Trust C

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized . SCE Recovery Funding LLC, as Issuing Entity Date: March 24, 2026 By: Southern California Edison Company, as servicer By: /s/ Brendan Bond Brendan Bond Vice President and Treasurer (Senior officer in charge of the servicing function of the servicer) SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT. No such annual report, proxy statement, form of proxy or other soliciting material has been sent to the registrant's security holders. The registrant will not be sending an annual report or proxy material to its security holders subsequent to the filing of this form.

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