Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2026

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets

SCE's regulatory assets included on the condensed consolidated balance sheets are:


(in millions)	March 31, 2026		December 31, 2025
Current:
Regulatory balancing and memorandum accounts	$	2,607	$	3,246
Other	53		44
Total current	2,660		3,290
Long-term:
Deferred income taxes	6,547		6,427
Unamortized investments, net of accumulated amortization	123		126
Unamortized losses on reacquired debt	76		79
Regulatory balancing and memorandum accounts	2,809		2,843
Environmental remediation	212		213
Recovery assets	3,072		3,092
Other	172		180
Total long-term	13,011		12,960
Total regulatory assets	$	15,671	$	16,250

Schedule of Regulatory Liabilities

Regulatory Liabilities

SCE's regulatory liabilities included on the condensed consolidated balance sheets are:


(in millions)	March 31, 2026		December 31, 2025
Current:
Regulatory balancing and memorandum accounts	$	321	$	1,139

Other	33		19
Total current	354		1,158
Long-term:
Costs of removal	2,865		2,737
Deferred income taxes	2,139		2,126
Recoveries in excess of ARO liabilities	1,968		2,057
Regulatory balancing and memorandum accounts	2,028		1,842
Pension and other postretirement benefits	1,835		1,829
Other	35		36
Total long-term	10,870		10,627
Total regulatory liabilities	$	11,224	$	11,785

For more information, see Note 11 of the 2025 Form 10-K.

Schedule of Net Regulatory Balancing and Memorandum Accounts

The following table summarizes the significant components of regulatory balancing and memorandum accounts included in the above tables of regulatory assets and liabilities:


(in millions)	March 31, 2026		December 31, 2025
Asset (liability)
Energy procurement related costs	$	445	$	589
Public purpose and energy efficiency	(2,119)		(2,054)
GRC-related balancing accounts1	2,057		1,945
FERC-related balancing accounts	190		204
Wildfire risk mitigation and insurance2	334		289
Wildfire and drought restoration3	229		215
Woolsey Settlement cost recovery	1,794		1,766
Tax accounting memorandum account	(28)		(3)
Other	165		157
Assets, net of liabilities	$	3,067	$	3,108

1 The GRC-related balancing accounts primarily consist of the base revenue requirement balancing account ("BRRBA"), the vegetation management balancing account ("VMBA"), the Wildfire Risk Mitigation balancing account ("WRMBA") and the risk management balancing account ("RMBA").

The 2025 GRC decision approved the establishment of a two-way Grid Hardening Balancing Account to track the difference between the actual Targeted Undergrounding Program and Rapid Earth Fault Current Limiter costs up to the approved mile limit and the authorized amounts, with spending in excess of 110% of authorized amounts subject to reasonableness review. Additionally, the final decision authorized SCE to establish a memorandum account to track and record capital expenditures above the amounts authorized to support SCE's grid readiness for future transportation electrification demand, with cost recovery subject to reasonableness review.

2 The wildfire risk mitigation and insurance regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claim costs related to the Other Wildfire Events that SCE believes are probable of recovery. See Note 12 for further details. The Wildfire Mitigation Plan Memorandum Account is used to track costs incurred to implement SCE's wildfire mitigation plan that are not currently reflected in SCE's revenue requirements. The Fire Risk Mitigation Memorandum Account is used to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's GRCs that are not tracked in any other wildfire-related memorandum account.

3 The wildfire and drought restoration regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account.