UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended   September 30, 2023
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                        to

Commission File Number	Exact Name of Registrant as specified in its charter	State or Other Jurisdiction of Incorporation or Organization	IRS Employer Identification Number
1-9936	EDISON INTERNATIONAL	California	95-4137452
1-2313	SOUTHERN CALIFORNIA EDISON COMPANY	California	95-1240335

EDISON INTERNATIONAL	SOUTHERN CALIFORNIA EDISON COMPANY
2244 Walnut Grove Avenue	2244 Walnut Grove Avenue
(P.O. Box 976)	(P.O. Box 800)
Rosemead, California 91770	Rosemead, California 91770
(Address of principal executive offices)	(Address of principal executive offices)
(626) 302-2222	(626) 302-1212
(Registrant's telephone number, including area code)	(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Edison International:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	EIX	NYSE LLC

Southern California Edison Company: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Edison International Yes ☑ No ☐ Southern California Edison Company Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Edison International Yes ☑ No ☐ Southern California Edison Company Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-12 of the Exchange Act.

Edison International	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
	☑	☐	☐	☐	☐
Southern California Edison Company	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
	☐	☐	☑	☐	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Edison International ☐ Southern California Edison Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Edison International Yes ☐ No ☑ Southern California Edison Company Yes☐ No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Common Stock outstanding as of October 25, 2023:
Edison International	383,568,713 Shares
Southern California Edison Company	434,888,104 Shares

TABLE OF CONTENTS

		SEC Form 10-Q
		Reference Number
GLOSSARY	iv
FORWARD-LOOKING STATEMENTS	1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	4	Part I, Item 2
MANAGEMENT OVERVIEW	4
Highlights of Operating Results	4
2025 General Rate Case	7
Track 4	7
Capital Program	7
Customer-Funded Self-Insurance	8
Southern California Wildfires and Mudslides	9
RESULTS OF OPERATIONS	10
Southern California Edison Company	10
Three months ended September 30, 2023 versus September 30, 2022	11
Earning Activities	11
Cost-Recovery Activities	12
Nine months ended September 30, 2023 versus September 30, 2022	12
Earning Activities	12
Cost-Recovery Activities	13
Supplemental Operating Revenue Information	14
Income Taxes	14
Edison International Parent and Other	14
Loss from Operations	15
LIQUIDITY AND CAPITAL RESOURCES	15
Southern California Edison Company	15
Available Liquidity	16
Regulatory Proceedings	16
Capital Investment Plan	17
Decommissioning of San Onofre	18
SCE Dividends	18
Margin and Collateral Deposits	19
Edison International Parent and Other	19
Edison International Income taxes	20
Historical Cash Flows	21
Southern California Edison Company	21
Edison International Parent and Other	24

i

Contingencies	24
MARKET RISK EXPOSURES	24
CRITICAL ACCOUNTING ESTIMATES AND POLICIES	24
NEW ACCOUNTING GUIDANCE	25
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	25	Part I, Item 3
FINANCIAL STATEMENTS	26	Part I, Item 1
Edison International Consolidated Statements of Income	26
Edison International Consolidated Statements of Comprehensive Income	27
Edison International Consolidated Balance Sheets	28
Edison International Consolidated Statements of Cash Flows	30
SCE Consolidated Statements of Income	31
SCE Consolidated Statements of Comprehensive Income	31
SCE Consolidated Balance Sheets	32
SCE Consolidated Statements of Cash Flows	34
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	35
Note 1. Summary of Significant Accounting Policies	35
Note 2. Consolidated Statements of Changes in Equity	39
Note 3. Variable Interest Entities	42
Note 4. Fair Value Measurements	45
Note 5. Debt and Credit Agreements	48
Note 6. Derivative Instruments	49
Note 7. Revenue	51
Note 8. Income Taxes	52
Note 9. Compensation and Benefit Plans	53
Note 10. Investments	54
Note 11. Regulatory Assets and Liabilities	55
Note 12. Commitments and Contingencies	57
Note 13. Equity	69
Note 14. Accumulated Other Comprehensive Loss	70
Note 15. Other Income	70
Note 16. Supplemental Cash Flows Information	71
Note 17. Related-Party Transactions	71
CONTROLS AND PROCEDURES	72	Part I, Item 4
Disclosure Controls and Procedures	72
Changes in Internal Control Over Financial Reporting	72
Jointly Owned Utility Plant	72
LEGAL PROCEEDINGS	73	Part II, Item 1
2017/2018 Wildfire/Mudslide Events	73

ii

Environmental Proceedings	73
OTHER INFORMATION	74	Part II Item 5
EXHIBITS	74	Part II, Item 6
SIGNATURES	75

This combined Form 10-Q is separately filed by Edison International and SCE. Information contained in this document relating to SCE is filed by Edison International and separately by SCE. SCE makes no representation as to information relating to Edison International or its subsidiaries, except as it may relate to SCE and its subsidiaries.

iii

GLOSSARY

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

2017/2018 Wildfire/Mudslide Events	the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively
2022 Form 10-K	Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2022
2022 MD&A	Edison International's and SCE's MD&A for the calendar year 2022, which was included in the 2022 Form 10‑K
AB 1054	California Assembly Bill 1054, executed by the governor of California on July 12, 2019
AB 1054 Excluded Capital Expenditures	$1.6 billion in wildfire risk mitigation capital expenditures that SCE has excluded from the equity portion of SCE's rate base as required under AB 1054
AB 1054 Liability Cap	a cap on the aggregate requirement to reimburse the Wildfire Insurance Fund over a trailing three calendar year period which applies if certain conditions are met and is equal to 20% of the equity portion of the utility's transmission and distribution rate base, excluding general plant and intangibles, in the year of the applicable prudency determination
ARO(s)	asset retirement obligation(s)
BRRBA	Base Revenue Requirement Balancing Account
CAISO	California Independent System Operator
Capital Structure Compliance Period	January 1, 2023 to December 31, 2025, the current compliance period for SCE's CPUC authorized capital structure
CAPP	California Arrearage Payment Program
CCAs	community choice aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses
CDP	Coastal Development Permit
CEMA	Catastrophic Event Memorandum Account
COVID-19	Coronavirus disease 2019
CPUC	California Public Utilities Commission
CSRP	Customer Service Re-platform, a customer service system implemented in April 2021
ECS	SCE commercial telecommunications services operated under the name of Edison Carrier Solutions
Edison Energy	Edison Energy, LLC, an indirect wholly-owned subsidiary of Edison International, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers
Edison International Proxy Statement	Proxy Statement filed with the SEC in connection with Edison International's Annual Meeting of Shareholders held on April 27, 2023
EIS	Edison Insurance Services, Inc., a wholly-owned subsidiary of Edison International licensed to provide insurance to Edison International and its subsidiaries
Electric Service Provider	an entity that provides electric power and ancillary services to retail customers, other than investor-owned utilities and CCAs
ERRA	Energy Resource Recovery Account
Fast curve settings	protective settings, used to mitigate the risk of wildfires, that enable SCE to shut off power quicker when an electrical fault occurs than under traditional settings
FERC	Federal Energy Regulatory Commission
Fitch	Fitch Ratings, Inc.
GAAP	generally accepted accounting principles in the United States
GHG	greenhouse gas
GRC	general rate case
IRA	Inflation Reduction Act of 2022
Koenigstein Fire	a wind-driven fire that originated near Koenigstein Road in the City of Santa Paula in Ventura County, California, on December 4, 2017
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations

iv

Montecito Mudslides	the debris flows and flooding in Montecito, Santa Barbara County, California, that occurred in January 2018
Moody's	Moody's Investors Service, Inc.
MW	Megawatt(s)
NDCTP	Nuclear Decommissioning Cost Triennial Proceeding, a CPUC proceeding to review decommissioning costs
NERC	North American Electric Reliability Corporation
NRC	United States Nuclear Regulatory Commission
NSGBA	New System Generation Balancing Account
OEIS	Office of Energy Infrastructure Safety of the California Natural Resources Agency
PABA	Portfolio Allocation Balancing Account
Palo Verde	nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
PBOP(s)	postretirement benefits other than pension(s)
PG&E	Pacific Gas & Electric Company
Post-2018 Wildfires	Collectively, all the wildfires that originated in Southern California after 2018 where SCE's equipment may be alleged to be associated with the fire's ignition
PSPS	Public Safety Power Shutoff(s)
ROE	return on common equity
S&P	Standard & Poor's Financial Services LLC
San Onofre	retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest
SCE	Southern California Edison Company, a wholly-owned subsidiary of Edison International
SCE Recovery Funding LLC	a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE
SDG&E	San Diego Gas & Electric
SEC	U.S. Securities and Exchange Commission
SED	Safety and Enforcement Division of the CPUC
SED Agreement	an agreement dated October 21, 2021 between SCE and the SED regarding the 2017/2018 Wildfire/Mudslide Events and three other 2017 wildfires
Thomas Fire	a wind-driven fire that originated in the Anlauf Canyon area of Ventura County, California, on December 4, 2017
TKM	collectively, the Thomas Fire, the Koenigstein Fire and the Montecito Mudslides
TKM Subrogation Plaintiffs	the plaintiffs party to the TKM Subrogation Settlement, representing all the insurance subrogation plaintiffs in the TKM litigation at the time of the settlement
TKM Subrogation Settlement	a settlement entered into by Edison International and SCE in September 2020 in the TKM litigation to which the TKM Subrogation Plaintiffs are party
Track 2	Track 2 of the 2021 GRC, which addressed the reasonableness of wildfire mitigation costs incurred in 2018 and 2019 that were incremental to amounts authorized in the 2018 GRC
Track 3	Track 3 of the 2021 GRC, which addressed the reasonableness of wildfire mitigation costs incurred in 2020 that were incremental to amounts authorized in the 2018 GRC
Track 4	Track 4 of the 2021 GRC, which will address SCE's revenue requirement for 2024
WEMA	Wildfire Expense Memorandum Account
WMP	a wildfire mitigation plan required to be filed under AB 1054 to describe a utility's plans to construct, operate, and maintain electrical lines and equipment that will help minimize the risk of catastrophic wildfires caused by such electrical lines and equipment
Wildfire Insurance Fund	the insurance fund established under AB 1054
Woolsey Fire	a wind-driven fire that originated in Ventura County in November 2018
Woolsey Subrogation Plaintiffs	the plaintiffs party to the Woolsey Subrogation Settlement, representing all the insurance subrogation plaintiffs in the Woolsey Fire litigation at the time of the settlement
Woolsey Subrogation Settlement	a settlement entered into by Edison International and SCE in January 2021 in the Woolsey litigation to which the Woolsey Subrogation Plaintiffs are party

v

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statements that do not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," and variations of such words and similar expressions, or discussions of strategy or plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to the:

● ability of SCE to recover its costs through regulated rates, including uninsured wildfire-related and debris flow-related costs, costs incurred to mitigate the risk of utility equipment causing future wildfires, costs incurred as a result of the COVID-19 pandemic, and increased costs due to supply chain constraints, inflation and rising interest rates;

● ability of SCE to implement its WMP and capital program;

● risks of regulatory or legislative restrictions that would limit SCE's ability to implement operational measures to mitigate wildfire risk, including PSPS and fast curve settings, when conditions warrant or would otherwise limit SCE's operational practices relative to wildfire risk mitigation;

● risks associated with SCE implementing PSPS, including regulatory fines and penalties, claims for damages and reputational harm;

● ability of SCE to maintain a valid safety certification, which is required to benefit from certain provisions of AB 1054;

● extreme weather-related incidents (including events caused, or exacerbated, by climate change, such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events) and other natural disasters (such as earthquakes), which could cause, among other things, public safety issues, property damage, rotating outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs;

● risk that AB 1054 does not effectively mitigate the significant exposure faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are alleged to be a substantial cause, including the longevity of the Wildfire Insurance Fund and the CPUC's interpretation of and actions under AB 1054, including its interpretation of the prudency standard clarified by AB 1054;

● ability of Edison International and SCE to effectively attract, manage, develop and retain a skilled workforce, including its contract workers;

● decisions and other actions by the CPUC, OEIS, the FERC, the NRC and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, determinations of authorized rates of return or return on equity, issuance of SCE's wildfire safety certification, wildfire mitigation efforts, approval and implementation of electrification programs, and delays in executive, regulatory and legislative actions;

● cost and availability of labor, equipment and materials, including as a result of supply chain constraints and inflation;

● ability of Edison International or SCE to borrow funds and access bank and capital markets on reasonable terms;

1

● risks associated with the decommissioning of San Onofre, including those related to worker and public safety, public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel and other radioactive material, delays, contractual disputes, contractor performance, and cost overruns;

● ability of Edison International and SCE to obtain sufficient insurance at a reasonable cost or to maintain its customer funded self-insurance program, and to recover the costs of such insurance or, in the event liabilities exceed insured amounts, the ability to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) from customers or other parties;

● pandemics, such as COVID-19, and other events that cause regional, statewide, national or global disruption, which could impact, among other things, Edison International's and SCE's business, operations, cash flows, liquidity and/or financial results and cause Edison International and SCE to incur unanticipated costs;

● physical security of Edison International's and SCE's critical assets and personnel and the cybersecurity of Edison International's and SCE's critical information technology systems for grid control, and business, employee and customer data;

● risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as CCAs and Electric Service Providers;

● risks inherent in SCE's capital investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, availability of labor, equipment and materials, weather, changes in the CAISO's transmission plans, and governmental approvals;

● risks associated with the operation of electrical facilities, including worker and public safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts;

● actions by credit rating agencies to downgrade Edison International or SCE's credit ratings or to place those ratings on negative watch or negative outlook;

● changes in tax laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could affect recorded deferred tax assets and liabilities, effective tax rates and cash flows;

● changes in future taxable income, or changes in tax law, that would limit Edison International's and SCE's realization of expected net operating loss and tax credit carryover benefits prior to expiration;

● changes in the fair value of investments and other assets;

● changes in interest rates and potential adjustments to SCE's ROE based on changes in Moody's utility bond rate index;

● changes in rates of inflation (including whether inflation-related adjustments to SCE's authorized revenues allowed by the public utility regulators are commensurate with inflation rates);

● governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the NERC, CAISO, Western Electricity Coordinating Council, and similar regulatory bodies in adjoining regions, and changes in the United States' and California's environmental priorities that lessen the importance placed on GHG reduction and other climate related priorities;

● availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations;

2

● potential for penalties or disallowance for non-compliance with applicable laws and regulations, including fines, penalties and disallowances related to wildfires where SCE's equipment is alleged to be associated with ignition; and

● cost of fuel for generating facilities and related transportation, which could be impacted by, among other things, disruption of natural gas storage facilities, to the extent not recovered through regulated rate cost escalation provisions or balancing accounts.

Additional information about risks and uncertainties, including more detail about the factors described in this report, is contained throughout this report and in the 2022 Form 10-K, including the "Risk Factors" section. Readers are urged to read this entire report, including information incorporated by reference, as well as the 2022 Form 10-K, and carefully consider the risks, uncertainties, and other factors that affect Edison International's and SCE's businesses. Forward-looking statements speak only as of the date they are made and neither Edison International nor SCE are obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by Edison International and SCE with the SEC. Edison International and SCE post or provide direct links to (i) certain SCE and other parties' regulatory filings and documents with the CPUC and the FERC and certain agency rulings and notices in open proceedings in a section titled "SCE Regulatory Highlights," (ii) certain documents and information related to Southern California wildfires which may be of interest to investors in a section titled "Southern California Wildfires," and (iii) presentations, documents and information that may be of interest to investors in a section titled "Presentations and Updates" at www.edisoninvestor.com in order to publicly disseminate such information. The reports, presentations, documents and information contained on, or connected to, the Edison investor website are not deemed part of, and are not incorporated by reference into, this report.

The MD&A for the nine months ended September 30, 2023 discusses material changes in the consolidated financial condition, results of operations and other developments of Edison International and SCE since December 31, 2022 and as compared to the nine months ended September 30, 2022. This discussion presumes that the reader has read or has access to the 2022 MD&A.

Except when otherwise stated, references to each of Edison International or SCE mean each such company with its subsidiaries on a consolidated basis. References to "Edison International Parent and Other" mean Edison International Parent and its subsidiaries other than SCE and its subsidiaries and "Edison International Parent" mean Edison International on a stand-alone basis, not consolidated with its subsidiaries. Unless otherwise described, all the information contained in this report relates to both filers.

3

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT OVERVIEW

Highlights of Operating Results

Edison International is the ultimate parent holding company of SCE and Edison Energy. SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Edison Energy's business activities are currently not material to report as a separate business segment.

Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (loss) internally for financial planning and for analysis of performance. Core earnings (loss) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (loss) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (loss) are defined as earnings attributable to Edison International shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as write downs, asset impairments and other income and expense related to changes in law, outcomes in tax, regulatory or legal proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing.

The earnings impacts of wildfires with losses over $1.0 billion are treated as non-core items during the three and nine months ended September 30, 2023 and 2022. Under the new customer-funded self-insurance program, for wildfires ignited from July 1, 2023 through at least December 31, 2024, SCE will have insurance recoveries to offset up to $987.5 million of claims-related losses per policy year, with a maximum potential shareholder contribution of $12.5 million per policy year. Therefore, SCE expects that it will not have material earnings impacts from claims-related losses for wildfires ignited after July 1, 2023, other than if SCE incurs over $1.0 billion of losses in a year and is unable to recover such losses through the Wildfire Insurance Fund. As a result, in the third quarter of 2023, management concluded that the earnings impacts of wildfire claims-related losses will be treated as non-core items prospectively to make core earnings representative of ongoing earnings. For additional information on the customer-funded self-insurance program, see "—Customer-Funded Self-Insurance."

4

	Three months ended						Nine months ended
	September 30,						September 30,
(in millions)	2023		2022		Change		2023		2022		Change
Net income (loss) attributable to Edison International
SCE	$	239	$	(80)	$	319	$	1,029	$	369	$	660
Edison International Parent and Other		(84)		(48)		(36)		(210)		(172)		(38)
Edison International		155		(128)		283		819		197		622
Less: Non-core items
SCE
2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries		(458)		(834)		376		(560)		(1,238)		678
Wildfire Insurance Fund expense		(54)		(54)		—		(159)		(160)		1
2021 NDCTP probable disallowance		—		—		—		(30)		—		(30)
Customer cancellations of certain ECS data services		—		—		—		(17)		—		(17)
Employment litigation matter, net of recoveries		—		—		—		10		(23)		33
Other wildfire claims and expenses, net of recoveries1		(7)		—		(7)		(7)		—		(7)
Upstream Lighting Program decision		—		(81)		81		—		(81)		81
Impairments		—		—		—		—		(64)		64
Organizational realignment charge		—		—		—		—		(14)		14
Income tax benefit2		145		266		(121)		214		438		(224)
Edison International Parent and Other
Customer revenues for EIS insurance contract, net of claims		(3)		14		(17)		42		14		28
Income tax benefit (expense)2		1		(3)		4		(9)		(3)		(6)
Total non-core items		(376)		(692)		316		(516)		(1,131)		615
Core earnings (loss)
SCE		613		623		(10)		1,578		1,511		67
Edison International Parent and Other		(82)		(59)		(23)		(243)		(183)		(60)
Edison International	$	531	$	564	$	(33)	$	1,335	$	1,328	$	7

1 In the three months ended September 30, 2022, there were no charges included in core earnings, related to claims from wildfires ignited prior to July 1, 2023. In the nine months ended September 30, 2023 and 2022, core earnings included charges of $4 million and $8 million, respectively, related to claims from wildfires ignited prior to July 1, 2023. Core earnings (loss) in periods before the third quarter of 2023 have not been recast to exclude these charges.

2 SCE and Edison International Parent and Other non-core items are tax-effected at an estimated statutory rate of approximately 28%; customer revenues for EIS insurance contract are tax-effected at an estimated statutory rate of approximately 20%.

Edison International's third quarter 2023 earnings increased $283 million from the third quarter of 2022, resulting from an increase in SCE's earnings of $319 million and an increase in Edison International Parent and Other's losses of $36 million. SCE's higher net income consisted of $329 million of lower non-core losses and $10 million of lower core earnings. Edison International Parent and Other's increased loss was due to $13 million of lower earnings in non-core items and $23 million of higher core loss. Edison International's earnings for the nine months ended September 30, 2023 increased $622 million from the same period in 2022, resulting from an increase in SCE's earnings of $660 million and an increase in Edison International Parent and Other's loss of $38 million. SCE's higher net income consisted of $593 million of lower non-core losses and $67 million of higher core earnings. Edison International Parent and Other's higher loss consisted of $22 million of higher earnings in non-core items and $60 million of higher core loss.

The decrease in SCE's core earnings for the three months ended September 30, 2023 from the same period in 2022 was primarily due to higher interest expense and lower return on rate base related to the 2022 CSRP decision, partially offset by higher revenue from the escalation mechanism set forth in the 2021 GRC final decision. The increase in SCE's core earnings for the nine months ended September 30, 2023 from the same period in 2022 was primarily due to higher revenue from the

5

escalation mechanism set forth in the 2021 GRC final decision and higher interest income on balancing account undercollections, partially offset by higher interest expense.

The increase in Edison International Parent and Other's core loss for the three and nine months ended September 30, 2023 was primarily due to higher interest expense.

Consolidated non-core items for the nine months ended September 30, 2023 and 2022 primarily included:

● Charges of $560 million ($404 million after-tax) recorded in 2023 and $1.2 billion ($891 million after-tax) recorded in 2022 for 2017/2018 Wildfire/Mudslide Events claims and expenses, net of expected recoveries from FERC customers. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

● Charges of $159 million ($114 million after-tax) recorded in 2023 and $160 million ($115 million after-tax) recorded in 2022 from the amortization of SCE's contributions to the Wildfire Insurance Fund. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" in the 2022 Form 10-K for further information.

● A charge of $30 million ($21 million after-tax) recorded in 2023 for a probable disallowance related to the reasonableness review of recorded San Onofre Units 2 and 3 decommissioning costs in the 2021 NDCTP. See "Liquidity and Capital Resources—SCE—Decommissioning of San Onofre" for more information.

● A charge of $17 million ($12 million after-tax) recorded in 2023 related to customer cancellations of certain ECS data services. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

● Insurance recovery of $10 million ($7 million after-tax) recorded in 2023 and a charge of $23 million ($16 million after-tax), net of estimated insurance recoveries, recorded in 2022. Both are related to settlement of an employment litigation matter. SCE and Edison International settled the matter following an atypical jury award.

● Charges of $7 million ($5 million after-tax) recorded in 2023 for wildfire claims and expenses, net of recoveries, related to the Post-2018 Wildfires. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further information.

● A charge of $81 million ($64 million after-tax) recorded in 2022 related to the Presiding Officer's Decision ("POD") in September 2022 related to SCE's Upstream Lighting Program.

● Impairment charges of $64 million ($46 million after-tax) recorded in 2022 including $47 million ($34 million after-tax) related to SCE's CSRP settlement agreement and $17 million ($12 million after-tax) related to historical capital expenditures disallowed in Track 3.

● A charge of $14 million ($10 million after-tax) recorded in 2022 related to organizational realignment services.

● Net earnings of $42 million ($33 million after-tax) and $14 million ($11 million after-tax) recorded in 2023 and 2022, related to customer revenues for an EIS insurance contract offset by expected wildfire claims insured by EIS. See "Notes to Consolidated Financial Statements—Note 17. Related-Party Transactions" for further information.

See "Results of Operations" for discussion of SCE's and Edison International Parent and Other's results of operations.

6

2025 General Rate Case

SCE filed its 2025 GRC application with the CPUC in May 2023, for the four-year period of 2025 – 2028. In its application, SCE is requesting that the CPUC authorize SCE's test year 2025 revenue requirement of approximately $10.3 billion. This represents a $1.9 billion, or 23% increase over the approximately $8.4 billion 2024 revenue requirements requested in Track 4 adjusted for the CPUC's decisions to adopt SCE's 2023 to 2025 cost of capital and expanded customer-funded self-insurance for wildfire-related claims.

SCE's 2025 GRC request also includes proposed revenue requirement increases of approximately $600 million, $700 million and $700 million in 2026, 2027 and 2028, respectively.

SCE's 2025 GRC highlights its focus on safely providing electric service to its customers that is reliable, resilient, and ready for their needs today and the clean energy transition directed by California policy. The critical drivers of SCE's 2025 GRC request include returning to historical levels of infrastructure replacement work necessary for system reliability as wildfire mitigation investments stabilize, investments in reliability and capacity upgrades to ready the grid for increased electrification to meet customer needs and California's electrification and de-carbonization goals, and investments in programs aimed at protecting the safety of the public, customers and SCE's workforce.

For details of 2023 – 2028 capital program forecast and range case, see "—Capital Program."

Track 4

In September 2023, SCE filed an all-party settlement in Track 4. If approved by the CPUC, it will authorize an $8.4 billion revenue requirement for 2024, an approximately $200 million reduction to SCE's initial request. The approved revenue requirement will be subject to adjustments for SCE's 2024 cost of capital and expanded customer-funded self-insurance for wildfire-related claims.

Capital Program

Total capital expenditures (including accruals) were $3.9 billion and $4.1 billion for the first nine months ended September 30, 2023 and 2022, respectively.

SCE forecasts a $43.3 billion total capital program for 2023 through 2028, which includes GRC capital expenditures, CPUC non-GRC capital expenditures, and FERC capital expenditures. If all capital expenditures requested in SCE’s 2025 GRC were approved by the CPUC, SCE forecasts total weighted-average rate base incorporating CPUC- and FERC-jurisdictional capital expenditures increasing to $60.9 billion by 2028. During the quarter ended September 30, 2023, SCE updated the 2023 and 2024 capital expenditures to reflect the significant risk associated with the utility owned storage projects being completed in 2023. In addition, SCE updated 2024 – 2028 capital expenditures to reflect an updated forecast for ongoing delays in the Riverside Transmission Reliability Project (see "Liquidity and Capital Resources—SCE—Capital Investment Plan" in the 2022 MD&A) as well as the Track 4 settlement. SCE also updated the rate base forecast to reflect these factors and a reduction of working capital following implementation of the customer-funded self-insurance program. In October 2023, the CPUC issued a proposed decision that would deny SCE's Building Electrification Program Application. If adopted, the decision would reduce requested capital expenditures by approximately $270 million between 2025 and 2028 (see "Liquidity and Capital Resources—SCE—Regulatory Proceedings" in the 2022 MD&A).

Based on management judgment of potential capital spending variability informed by historical precedent of previously authorized amounts, potential permitting delays and other operational considerations, a range case has been prepared reflecting reductions to GRC capital expenditures, CPUC non-GRC capital expenditures and FERC capital expenditures. Based on the range case, SCE forecasts a $37.8 billion total capital program for 2023 through 2028. This implies total weighted-average rate base incorporating CPUC- and FERC-jurisdictional capital expenditures increasing to $55.4 billion by 2028.

7

SCE's 2023 – 2028 forecast for major capital expenditures is set forth in the table below:

													Total
(in billions)	2023		2024		2025		2026		2027		2028		2023 – 2028
Traditional capital expenditures
Distribution	$	3.8	$	4.1	$	5.2	$	5.7	$	5.6	$	5.6	$	30.0
Transmission		0.5		0.4		0.8		0.9		1.0		0.7		4.3
Generation		0.1		0.2		0.2		0.2		0.2		0.1		1.0
Subtotal		4.4		4.7		6.2		6.8		6.8		6.4		35.3
Wildfire mitigation-related capital expenditures		1.1		1.3		1.3		1.4		1.5		1.4		8.0
Total capital expenditures	$	5.5	$	6.0	$	7.5	$	8.2	$	8.3	$	7.8	$	43.3
Total capital expenditures using range case discussed above	$	5.3	$	5.6	$	6.6	$	6.9	$	6.9	$	6.5	$	37.8

In addition to the amounts presented in the table above, SCE expects to make additional CPUC capital investments, the recovery of which will be subject to future regulatory approval. This includes non-GRC programs including additional spending on an enterprise resource planning software implementation and an advanced metering infrastructure program. In addition, in May 2023, CAISO released its 2022 – 2023 Transmission Plan based on the CPUC's projections that it needs to add more than 40 gigawatts of new resources by 2032. As the incumbent transmission owner for a portion of these transmission projects, SCE expects to construct projects representing at least $2 billion of expenditures, most of which will be incurred beyond 2028.

Reflected below is SCE's weighted average annual rate base for 2023 – 2028 incorporating CPUC- and FERC- jurisdictional capital expenditures.

(in billions)	2023		2024		2025		2026		2027		2028
Rate base for expected capital expenditures	$	41.3	$	43.9	$	49.5	$	53.2	$	57.0	$	60.9
Rate base for expected capital expenditures using range case discussed above	$	41.1	$	43.3	$	48.0	$	50.4	$	52.8	$	55.4

For further information regarding the capital program, see "Liquidity and Capital Resources—SCE—Capital Investment Plan" below and "Management Overview—Capital Program" in the 2022 MD&A.

Customer-Funded Self-Insurance

In May 2023, the CPUC approved a joint petition for modification of the 2021 GRC decision filed by SCE, The Utility Reform Network and the Public Advocates Office, allowing SCE to expand its use of self-insurance. The approved self-insurance program will be in place for wildfires ignited between July 1, 2023 and December 31, 2024, and will be funded through CPUC-jurisdictional rates with $150 million collected for the second half of 2023 and, in the absence of wildfire-related claims, $300 million collected for 2024. The self-insurance program results in a reduction to current revenue requirements of $80 million in 2023 and, subject to adjustment, $160 million in 2024. If losses are accrued for wildfire-related claims, the program contains an adjustment mechanism that will increase rates in subsequent years as needed, to allow for full recovery of the amounts accrued up to $1.0 billion per policy year, subject to a shareholder contribution of 2.5% of any self-insurance costs ultimately paid exceeding $500 million in any policy year, up to a maximum annual contribution of $12.5 million per policy year. If adopted in the 2025 GRC, this self-insurance framework will continue at least through 2028, supporting a self-insurance fund of up to $1.0 billion per policy year. SCE expects continuation of the customer-funded self-insurance framework to be adopted without protest in the 2025 GRC. Depending upon losses over time, customers will benefit further from SCE's wildfire self-insurance program as a result of not having to fund the recurring costs of SCE purchasing commercial wildfire insurance coverage.

8

Southern California Wildfires and Mudslides

2017/2018 Wildfire/Mudslide Events

As discussed in the 2022 Form 10-K, multiple lawsuits and investigations related to the 2017/2018 Wildfire/Mudslide Events have been initiated against SCE and Edison International. SCE has previously settled claims under the Local Public Entity Settlement, the TKM Subrogation Settlement, the Woolsey Subrogation Settlement and the SED Agreement. In addition, SCE has also entered into settlements with approximately 11,000 individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation as of September 30, 2023.

Each reporting period, management reviews its loss estimates for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. Management’s third quarter 2023 review included a review of information obtained from settling claims in the 2017/2018 Wildfire/Mudslide Events litigations through the third quarter of 2023, including higher than expected costs to settle claims. Management’s review also included a review of information obtained in the third quarter of 2023 regarding the nature of claims remaining in the 2017/2018 Wildfire/Mudslide Events litigations. As a result of management's third quarter 2023 review, a $475 million increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events as of September 30, 2023 was recorded. As a result, SCE recorded expected recoveries through FERC electric rates of $27 million against the charge. The resulting net charge to earnings was $448 million ($323 million after-tax).

Through September 30, 2023, SCE has accrued estimated losses of $9.3 billion, expected recoveries from insurance of $2.0 billion, all of which have been collected, and expected recoveries through FERC electric rates of $409 million, $358 million of which has been collected, related to the 2017/2018 Wildfire/Mudslide Events. The after-tax net charges to earnings recorded through September 30, 2023 have been $5.0 billion.

Estimated losses for the 2017/2018 Wildfire/Mudslide Events litigation are based on a number of assumptions and are subject to change as additional information becomes available. Actual losses incurred may be higher or lower than estimated based on several factors, including the uncertainty in estimating damages that have been or may be alleged. For instance, SCE will receive additional information with respect to damages claimed as the claims mediation processes progress. Other factors that can cause actual losses incurred to be higher or lower than estimated include the ability to reach settlements and the outcomes of settlements reached through the ongoing claims mediation processes, uncertainties related to the sufficiency of insurance held by plaintiffs, uncertainties related to the litigation processes, including whether plaintiffs will ultimately pursue claims, uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge and whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the uncertainty as to how these factors impact future settlements.

As of September 30, 2023, SCE had paid $8.4 billion under executed settlements and had $209 million to be paid under executed settlements, including $65 million to be paid under the SED Agreement, related to the 2017/2018 Wildfire/Mudslide Events. After giving effect to all payment obligations under settlements entered into through September 30, 2023, Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events was $728 million. Edison International and SCE may incur a material loss in excess of amounts accrued in connection with the remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events.

SCE will seek CPUC-jurisdictional rate recovery of prudently-incurred losses and related costs realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance and FERC-jurisdictional recoveries, other than for any obligations under the SED Agreement. Based on Edison International's and SCE's current best estimate of expected losses for the 2017/2018 Wildfire/Mudslide Events, SCE currently expects to seek CPUC-jurisdictional rate recovery of approximately $6.4 billion of uninsured claims by filing applications with the CPUC. In August 2023, SCE filed the first of such cost recovery applications to seek rate recovery of $2.4 billion of prudently incurred losses related to the

9

Thomas Fire, the Koenigstein Fire and the Montecito Mudslides, consisting of $2.0 billion of uninsured claims and $0.4 billion of associated costs, including legal fees and financing costs. In its filing, SCE is also seeking capital recovery of approximately $65 million in restoration costs. SCE has requested that the CPUC issue a proposed decision on its application in February 2025. Because the CPUC's decision in a cost recovery proceeding involving SDG&E arising from several 2007 wildfires in SDG&E's service area is the only directly comparable precedent available, SCE believes that there is substantial uncertainty regarding how the CPUC will interpret and apply its prudency standard to an investor-owned utility in wildfire cost-recovery proceedings for fires ignited prior to the adoption of AB 1054 on July 12, 2019. Accordingly, while the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs related to the 2017/2018 Wildfire/Mudslide Events are probable of recovery through electric rates.

Safety Certification and Wildfire Mitigation Plan

SCE filed its 2023 – 2025 WMP in March 2023. In October 2023, the OEIS approved SCE’s 2023 – 2025 WMP, which approval is subject to CPUC ratification. SCE currently has a valid safety certification which will remain valid until the OEIS acts on SCE's September 12, 2023 request for a new safety certification.

For further information on Southern California Wildfires and Mudslides, see "Risk Factors," "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054," "Business—Southern California Wildfires" in the 2022 Form 10-K and "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" in this report.

RESULTS OF OPERATIONS

SCE

SCE's results of operations are derived mainly through two sources:

● Earning activities – representing revenue authorized by the CPUC and the FERC, which is intended to provide SCE with a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

● Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards, as well as non-bypassable rates collected for SCE Recovery Funding LLC. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), certain operation and maintenance expenses (including vegetation management and wildfire insurance), and repayment of bonds and financing costs of SCE Recovery Funding LLC. SCE earns no return on these activities.

10

The following table is a summary of SCE's results of operations for the periods indicated.

Three months ended September 30, 2023 versus September 30, 2022

	Three months ended September 30, 2023						Three months ended September 30, 2022
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Operating revenue	$	2,387	$	2,300	$	4,687	$	2,450	$	2,767	$	5,217
Purchased power and fuel		—		1,988		1,988		—		2,485		2,485
Operation and maintenance		552		302		854		673		304		977
Wildfire-related claims, net of insurance recoveries		479		—		479		880		—		880
Wildfire Insurance Fund expense		54		—		54		54		—		54
Depreciation and amortization		650		15		665		732		5		737
Property and other taxes		133		5		138		126		2		128
Impairment, net of other operating income		—		—		—		(1)		—		(1)
Total operating expenses		1,868		2,310		4,178		2,464		2,796		5,260
Operating income (loss)		519		(10)		509		(14)		(29)		(43)
Interest expense		(353)		(16)		(369)		(253)		(5)		(258)
Other income		102		26		128		37		34		71
Income (loss) before income taxes		268		—		268		(230)		—		(230)
Income tax benefit		(1)		—		(1)		(177)		—		(177)
Net income (loss)		269		—		269		(53)		—		(53)
Less: Preference stock dividend requirements		30		—		30		27		—		27
Net income (loss) available for common stock	$	239	$	—	$	239	$	(80)	$	—	$	(80)

Earning Activities

Earning activities were primarily affected by the following:

● Lower operating revenue of $63 million primarily due to the following:

● A decrease of CPUC-related revenue of $139 million due to lower CSRP revenue requirements approved in 2023 than in 2022.

● An increase of CPUC-related revenue of $107 million due to the escalation mechanism set forth in the 2021 GRC final decision.

● A decrease of FERC-related revenue of $22 million primarily due to lower wildfire-related claims and expenses to be recovered in FERC revenues compared to 2022.

● Lower operation and maintenance expenses of $121 million primarily due to the following:

● In 2022, SCE recognized a charge of $95 million related to the POD on SCE's Upstream Lighting Program. This consisted of $76 million of disallowed costs reclassified from cost recovery activities and $19 million of fines.

● Lower uncollectible expenses of $31 million primarily due to prior period expenses not subject to cost recovery recorded in 2022. A CPUC decision in 2022 required SCE to change its methodology for calculating the portion of uncollectibles expenses incremental to GRC authorized revenues.

11

● Wildfire-related claim charges were $479 million and $880 million in 2023 and 2022, respectively, primarily related to the 2017/2018 Wildfire/Mudslide Events. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

● Lower depreciation and amortization expense of $82 million primarily due to the CSRP decision received in 2022, which authorized SCE to recover $134 million of previously deferred depreciation expense in Q3 2022.

● Higher interest expense of $100 million primarily due to higher interest rates on long-term debt and balancing account overcollections, as well as increased long-term borrowing.

● Higher other income of $65 million primarily due to a higher interest rate applied to balancing account undercollections.

● See "Income Taxes" below for the explanation of the $176 million decrease in income tax benefits.

Cost-Recovery Activities

Decreases in operating revenue and the corresponding operating expenses in cost-recovery activities were primarily due to lower purchased power and fuel costs related to lower purchased power volumes, lower power and gas prices and lower capacity costs, partially offset by hedging activities.

Nine months ended September 30, 2023 versus September 30, 2022

	Nine months ended September 30, 2023			Nine months ended September 30, 2022
		Cost-			Cost-
	Earning	Recovery	Total	Earning	Recovery	Total
(in millions)	Activities	Activities	Consolidated	Activities