**Southern California Edison Reports Increased Earnings Amidst Wildfire Challenges**
Southern California Edison (SCE), a subsidiary of Edison International, reported net income available to common stock of $4.89 billion for 2025, a significant increase of $3.27 billion compared to $1.62 billion in 2024. This surge was primarily driven by higher core earnings and non-core earnings. Edison International's overall net income available to shareholders also saw a substantial rise, reaching $4.46 billion, up from $1.28 billion in the previous year. The company's core earnings, a non-GAAP measure used for internal financial planning and investor communication, increased to $2.52 billion from $1.90 billion in 2024.
The increase in SCE's core earnings was largely attributed to higher revenue stemming from the 2025 General Rate Case (GRC) final decision and a reduction in interest expense due to cost recoveries authorized under the Thomas, Koenigstein, and Montecito Mudslides (TKM) and Woolsey settlement agreements. These agreements, approved by the California Public Utilities Commission (CPUC), allowed SCE to recover costs through electric rates. However, Edison International Parent and Other experienced a higher core loss in 2025, primarily due to increased interest expense and preferred stock redemption loss.
SCE's operating revenue increased to $19.28 billion in 2025, up from $17.55 billion in 2024. This growth was fueled by the implementation of the 2025 GRC final decision and higher revenue related to expenses passed through to customers, including wildfire-related claims, depreciation, interest, and property taxes. Wildfire-related claims, net of recoveries, decreased significantly, reflecting cost recoveries authorized under the Woolsey and TKM settlement agreements. However, the company also faced charges related to the Eaton Fire, disallowed historical capital expenditures, and amortization of contributions to the Wildfire Fund. Capital expenditures for 2025 totaled $6.7 billion, including $1.1 billion in wildfire mitigation-related spending.
Looking ahead, SCE anticipates significant investments in grid infrastructure to maintain system integrity, meet electrification needs, and mitigate wildfire risks. The company projects electricity demand to nearly double between 2025 and 2045, driven by transportation electrification and increased commercial and industrial consumption. SCE intends to file an application with the CPUC in the first quarter of 2026 requesting capital expenditures of at least $3 billion to be spent between 2026 through 2033 for an advanced metering infrastructure program. The company also faces ongoing challenges related to wildfire liabilities, regulatory proceedings, and the evolving energy landscape. SCE's weighted average annual rate base is projected to increase from $47.6 billion in 2025 to $67.9 billion in 2030.
About SOUTHERN CALIFORNIA EDISON Co
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