Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment

Property, Plant and Equipment

Note 2.Property, Plant and Equipment

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

	December 31,
(in millions)	2021		2020
Distribution	$	30,821	$	28,663
Transmission		17,016		15,669
Generation		3,769		3,709
General plant and other		6,108		5,129
Accumulated depreciation		(11,407)		(10,681)
		46,307		42,489
Construction work in progress		4,067		5,033
Nuclear fuel, at amortized cost		123		131
Total utility property, plant and equipment	$	50,497	$	47,653

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, were $2.0 billion and $1.2 billion at December 31, 2021 and 2020, respectively, and accumulated amortization was $0.6 billion and $0.6 billion, at December 31, 2021 and 2020, respectively. Amortization expense for capitalized software was $311 million, $218 million and $190 million in 2021, 2020 and 2019, respectively. At

December 31, 2021, amortization expense is estimated to be $338 million, $310 million, $272 million, $220 million and $144 million for 2022 through 2026, 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, 2021:

			Construction
	Plant in		Work in		Accumulated		Nuclear Fuel		Net Book		Ownership
(in millions)	Service		Progress		Depreciation		(at amortized cost)		Value		Interest
Transmission systems:
Eldorado	$	336	$	94	$	49	$	—	$	381	86	%
Pacific Intertie		351		1		75		—		277	50	%
Generating station:
Palo Verde (nuclear)		2,146		53		1,629		123		693	16	%
Total	$	2,833	$	148	$	1,753	$	123	$	1,351

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