Southern California Edison Reports $1.6 Billion Net Income in Q1 2025

Southern California Edison Company (SCE), a subsidiary of Edison International, reported significant financial performance improvements in its latest 10-Q filing for the first quarter of 2025. The company recorded a net income of $1.6 billion, a substantial increase from $106 million in the same period last year. This increase was driven by a rise in core earnings, which reached $620 million, up from $513 million in the prior year. The overall revenue for SCE was $3.8 billion, down from $4.1 billion, primarily due to lower operating expenses and a decrease in wildfire-related claims.

The filing highlighted a notable shift in SCE's financial landscape compared to the previous fiscal period. The company experienced a decrease in operating expenses, which fell to $1.6 billion from $3.8 billion, largely due to a significant reduction in wildfire-related claims, which saw a net decrease of $1.97 billion. This reduction was attributed to recoveries authorized under the TKM Settlement Agreement, which allowed SCE to recover a portion of its costs associated with the 2017/2018 Wildfire/Mudslide Events.

Strategically, SCE has been active in its capital investment program, with total capital expenditures reaching $1.5 billion in the first quarter of 2025, compared to $1.2 billion in the same period last year. The company is executing a capital expenditure plan aimed at meeting future regulatory requirements while minimizing unauthorized spending. SCE's workforce remains stable, with no significant changes in employee headcount reported in the filing.

Operationally, SCE continues to face challenges related to wildfire risks, with ongoing investigations into the causes of recent wildfires, including the Eaton Fire in January 2025, which resulted in significant damage and loss of life. The company has implemented a Wildfire Mitigation Plan (WMP) and is utilizing a Public Safety Power Shutoff (PSPS) program to mitigate risks during extreme weather conditions. SCE's customer base remains robust, serving a vast area across Southern California, although specific customer count figures were not disclosed in the filing.

Looking ahead, SCE's outlook remains cautious due to ongoing wildfire risks and regulatory uncertainties. The company is actively pursuing cost recovery through regulatory channels, including the CPUC and FERC, for its wildfire-related expenses. SCE's management has indicated that while they expect to recover some costs, the ultimate financial impact of ongoing litigation and regulatory proceedings remains uncertain. The company is committed to maintaining its operational integrity and ensuring compliance with regulatory requirements as it navigates these challenges.