Property, Plant and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment

Property, Plant and Equipment

Note 2.Property, Plant and Equipment

SCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following:

	December 31,
(in millions)	2022		2021
Distribution	$	32,754	$	30,821
Transmission		18,106		17,016
Generation		3,880		3,769
General plant and other		6,121		6,108
Accumulated depreciation		(12,260)		(11,407)
		48,601		46,307
Construction work in progress		4,551		4,067
Nuclear fuel, at amortized cost		122		123
Total utility property, plant and equipment	$	53,274	$	50,497

Capitalized Software Costs

SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, primarily ranging from 5 to 7 years and commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.0 billion at both December 31, 2022 and 2021, and accumulated amortization was $0.7 billion and $0.6 billion, at December 31, 2022 and 2021, respectively. Amortization expense for capitalized software was
$344 million, $311 million and $218 million in 2022, 2021 and 2020, respectively. At December 31, 2022, amortization expense is estimated to be $342 million, $309 million, $262 million, $190 million and $110 million for 2023 through 2027, respectively.

Jointly Owned Utility Projects

SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income.

The following is SCE's investment in each asset as of December 31, 2022:

			Construction
	Plant in		Work in		Accumulated		Nuclear Fuel		Net Book		Ownership
(in millions)	Service		Progress		Depreciation		(at amortized cost)		Value		Interest
Transmission systems:
Eldorado	$	351	$	107	$	(56)	$	—	$	402	77	%
Pacific Intertie		354		2		(82)		—		274	50	%
Generating station:
Palo Verde (nuclear)		2,180		56		(1,653)		122		705	16	%
Total	$	2,885	$	165	$	(1,791)	$	122	$	1,381

In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies.