Edison International is the ultimate parent holding company of Southern California Edison Company (SCE), an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central and Coastal California, and Edison Energy, LLC, doing business as Trio, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. The electric power industry is undergoing urgent and fundamental changes driven by new sources of demand such as electric vehicles, data centers, and building electrification; technological innovations that support clean energy adoption; and government actions to reduce GHG emissions. SCE projects electricity demand to nearly double between 2025 and 2045, driven by transportation electrification, new residential housing, and increases in commercial and industrial consumption. California has set RPS targets which require California retail sellers of electricity to provide 60% of power from renewable resources by 2030 and to deliver 100% of retail sales from carbon-free sources by 2045, including interim targets of 90% by 2035 and 95% by 2040. Using preliminary estimates based on information available as of February 11, 2026, approximately 61% of SCE's customer deliveries in 2025 came from carbon-free resources.

The filing does not name specific primary competitors or provide market share data. SCE's competitive positioning is described through its role as an investor-owned public utility in a regulated environment, with its financial results depending on its ability to recover costs and earn a reasonable rate of return on capital investments through rates approved by the CPUC and FERC. SCE's ongoing focus to drive operational and service excellence is intended to allow it to achieve its objectives safely while controlling costs and customer rates.

Edison International generates revenue primarily through SCE's regulated utility operations, which involve supplying and delivering electricity to customers in its service area. SCE's revenue is derived from rates approved by the CPUC and FERC, which are set at levels intended to recover the estimated costs of providing service, plus a return on net investment, or rate base. The business model is heavily influenced by regulatory mechanisms, including balancing accounts that allow for the recovery of pass-through costs such as purchased power and fuel, and the recognition of regulatory assets and liabilities for timing differences in cost recovery. Trio's business activities are currently not material to report as a separate business segment.

SCE's primary business is the regulated transmission and distribution of electricity. SCE's operating revenue for the year ended December 31, 2025 was $19,276 million ¹, compared to $17,547 million ² in 2024. SCE's year-end rate base was $48.2 billion ³ at December 31, 2025, compared to $45.7 billion ⁴ at December 31, 2024. SCE's weighted average annual rate base for 2025 was $47.6 billion ⁵. SCE's CPUC-jurisdictional rate base is determined through the GRC and other regulatory proceedings, while FERC-jurisdictional rate base is determined based on actual capital expenditures. SCE also operates nuclear decommissioning activities for San Onofre, in which it holds a 78.21% ⁶ ownership interest, and Palo Verde, in which it holds a 15.8% ⁷ ownership interest.

SCE's operations also include significant wildfire mitigation and recovery activities. SCE has implemented a customer-funded wildfire self-insurance program that commenced in July 2023. SCE also participates in the Wildfire Fund, an insurance fund established under AB 1054 and expanded under SB 254. In 2025, the CPUC approved the TKM Settlement Agreement and the Woolsey Settlement Agreement, authorizing cost recoveries through CPUC electric rates. Under the TKM Settlement Agreement, SCE is authorized to recover 60%, or approximately $1.6 billion ⁸, of approximately $2.7 billion ⁹ of losses. Under the Woolsey Settlement Agreement, SCE recorded cost recoveries through CPUC electric rates of approximately $2.0 billion ¹⁰, of approximately $5.6 billion ¹¹ of losses. SCE also operates a Wildfire Recovery Compensation Program for the Eaton Fire, launched in the fall of 2025.

In 2025, SCE issued a total of $3.0 billion ¹² of first and refunding mortgage bonds. In December 2025, SCE issued securitized bonds in the amount of $1.6 billion ¹³ to finance cost recoveries authorized under the TKM Settlement Agreement. In December 2025, SCE repurchased 7,250,967 ¹⁴ shares of 5.45% Fixed-to-Floating Rate Trust Preference Securities (the "Series K Trust Securities") issued by SCE Trust V through a tender offer for an aggregate amount paid of $181 million ¹⁵, which includes accrued and unpaid dividends. SCE also fully redeemed 5.375% Fixed-to-Floating Rate Trust Preference Securities (the "Series J Trust Securities") issued by SCE Trust IV for an aggregate amount paid of $325 million ¹⁶. In the first quarter of 2025, Edison International Parent issued $550 million ¹⁷ of senior notes. In December 2025, Edison International Parent borrowed $600 million ¹⁸ under a term loan agreement due in December 2026. In December 2025, Edison International repurchased 744,975 ¹⁹ shares of its Series A Preferred Stock and 415,517 ²⁰ shares of its Series B Preferred Stock through a tender offer for an aggregate amount paid of $1.2 billion ²¹, which includes accrued and unpaid dividends.

Edison International's 2025 earnings increased $3,175 million ²², driven by an increase in SCE's earnings of $3,270 million ²³, partially offset by an increase in Edison International Parent and Other loss of $95 million ²⁴. SCE's higher net income consisted of $679 million ²⁵ of higher core earnings and $2,591 million ²⁶ of higher non-core earnings. Edison International's net income available to common shareholders for 2025 was $4,459 million ²⁷, compared to $1,284 million ²⁸ in 2024. Diluted earnings per common share available to Edison International common shareholders was $11.55 ²⁹ in 2025, compared to $3.31 ³⁰ in 2024. Total capital expenditures (including accruals) were $6.7 billion ³¹ in 2025 and $5.7 billion ³² in 2024.

A primary growth vector is SCE's capital investment program, which is focused on grid modernization, reliability, and wildfire mitigation. SCE's capital expenditure forecast for 2026-2030 totals $40.6 billion ³³, including $4.6 billion ³⁴ in wildfire mitigation-related capital expenditures. SCE projects electricity demand to nearly double between 2025 and 2045, driven by transportation electrification, new residential housing, and increases in 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 ³⁵ to be spent between 2026 through 2033 for an advanced metering infrastructure program. From 2022 to 2025, CAISO released its annual transmission plans approving projects to be constructed by SCE, with total anticipated capital expenditures of approximately $3 billion ³⁶, of which approximately $1 billion ³⁷ is included in the capital expenditure forecast.

Another growth vector is the expansion of transportation electrification. As of December 31, 2025, SCE had completed construction at 572 ³⁸ sites to support 9,761 ³⁹ charge ports under its suite of light-duty Charge Ready programs, and 132 ⁴⁰ sites to support the electrification of 2,859 ⁴¹ medium and heavy-duty vehicles through its Charge Ready Transport program. SCE expects its bundled system average rate will rise at a compound annual growth rate equal to or below inflation through 2030. SCE projects that total energy costs for the average SCE household will be reduced by approximately 40% ⁴² by 2045 due to the adoption of energy-efficient electrified technologies among other drivers.

SCE's authorized revenue requirement for 2025 was $9.7 billion ⁴³, an increase of $880 million ⁴⁴ over the adjusted 2024 authorized revenue requirement. The 2025 GRC final decision approved an authorized revenue requirement of $9,660 million ⁴⁵ for 2025. In December 2025, the CPUC issued a final decision on SCE's 2026-2028 cost of capital application that set SCE's ROE at 10.03% ⁴⁶, and maintained SCE's current authorized capital structure of 52% ⁴⁷ common equity, 43% ⁴⁸ long-term debt, and 5% ⁴⁹ preferred equity. Based on the approved capital structure and costs, SCE's weighted average return on rate base for 2026 will be 7.59% ⁵⁰. The final decision will decrease SCE's revenue requirement in 2026 by approximately $51 million ⁵¹ compared to the previously authorized cost of capital.

SCE's capital expenditure forecast for 2026-2030 includes $7.3 billion ⁵² in 2026, $7.6 billion ⁵³ in 2027, $7.6 billion ⁵⁴ in 2028, $9.0 billion ⁵⁵ in 2029, and $9.1 billion ⁵⁶ in 2030. SCE's weighted average annual rate base is forecast to be $50.8 billion ⁵⁷ in 2026, $54.4 billion ⁵⁸ in 2027, $58.1 billion ⁵⁹ in 2028, $62.6 billion ⁶⁰ in 2029, and $67.9 billion ⁶¹ in 2030. More than 85% ⁶² of SCE's planned capital investments are in its distribution grid and are essential to meeting grid reliability, resiliency, and readiness objectives.

Edison International intends to maintain its target payout ratio of 45% - 55% ⁶³ of SCE's core earnings, subject to certain factors. On February 18, 2026, Edison International declared a common stock dividend of $0.8775 ⁶⁴ per share to be paid on April 30, 2026. SCE expects to finance approximately $2.0 billion ⁶⁵ of cost recoveries authorized under the Woolsey Settlement Agreement by issuing securitized bonds, subject to the approval of a securitization financing application filed in January 2026. In February 2026, SCE entered into a term loan agreement to borrow up to $300 million ⁶⁶ due in March 2027. In February 2026, Edison International announced that it will redeem all outstanding shares of its Series A Preferred Stock at the redemption price of $1,000 ⁶⁷ per share.

A significant headwind is the risk of catastrophic wildfires and the associated liability exposure. The Eaton Fire, which ignited in January 2025, has resulted in material losses, and SCE is currently unable to reasonably estimate a range of losses that may be incurred in connection with the fire. As of December 31, 2025, SCE had recorded $1.1 billion ⁶⁸ in losses related to settlements for the Eaton Fire. SCE also recorded expected recoveries from customer-funded self-insurance of $917 million ⁶⁹, from the Wildfire Fund of $134 million ⁷⁰, and through FERC electric rates of $70 million ⁷¹. The Liability Cap for the Eaton Fire is approximately $4.3 billion ⁷². The Wildfire Fund's claims-paying capacity for the Eaton Fire, as of September 30, 2025, exceeds $21 billion ⁷³. Another headwind is the potential for regulatory disallowances, as seen in the 2025 GRC final decision which denied 50% ⁷⁴ of SCE's requested upfront funding for its Transportation Electrification Grid Readiness program.

Additional constraints include rising customer cost pressures, which underscore the importance of enacting electricity policies and investment decisions that balance affordability while supporting a reliable and clean energy transition. SCE's ability to execute its strategy is subject to risks related to the affordability of customer rates, including the impact on SCE's ability to obtain regulatory approval of, or cost recovery for, operations and maintenance expenses and proposed capital investment projects. The current federal administration has declared a national emergency on energy, stressing the need for a reliable, diversified, and affordable supply of energy. Recent federal actions have challenged clean energy standards and regulations in jurisdictions across the country.

Management's message emphasizes the transformation of the electric power industry and Edison International's vision to lead this transformation, focusing on opportunities in delivering clean energy, advancing electrification, building a modernized and more reliable grid, and enabling customers' technology choices. Key themes include the urgent need for grid investment to meet rising electricity demand, the critical importance of wildfire risk mitigation and legislative support, and a commitment to operational and service excellence to control costs and customer rates. Management highlights that SCE expects its bundled system average rate will rise at a compound annual growth rate equal to or below inflation through 2030, and that total energy costs for the average SCE household will be reduced by approximately 40% ⁸⁰ by 2045. The strategic priorities emphasized are: executing a significant capital investment program totaling $40.6 billion ⁸¹ from 2026-2030, continuing to implement wildfire mitigation plans and pursuing cost recovery through regulatory and legislative channels, and driving the clean energy transition through investments in grid modernization, transportation electrification, and renewable energy integration.

For the year ended December 31, 2025, Edison International's total operating revenue was $19,317 million ⁸², compared to $17,599 million ⁸³ in 2024. Net income available to Edison International common shareholders was $4,459 million ⁸⁴ in 2025, compared to $1,284 million ⁸⁵ in 2024. Diluted earnings per common share available to Edison International common shareholders was $11.55 ⁸⁶ in 2025, compared to $3.31 ⁸⁷ in 2024. SCE's operating income was $7,208 million ⁸⁸ in 2025, compared to $2,996 million ⁸⁹ in 2024. SCE's net income available for common stock was $4,889 million ⁹⁰ in 2025, compared to $1,619 million ⁹¹ in 2024. SCE's core earnings were $2,911 million ⁹² in 2025, compared to $2,232 million ⁹³ in 2024. Significant non-core items in 2025 included net earnings of $1,341 million ⁹⁴ ($966 million ⁹⁵ after-tax) related to the TKM Settlement Agreement, net earnings of $1,603 million ⁹⁶ ($1,154 million ⁹⁷ after-tax) related to the Woolsey Settlement Agreement, charges of $144 million ⁹⁸ ($104 million ⁹⁹ after-tax) from the amortization of SCE's contributions to the Wildfire Fund, and net charges of $76 million ¹⁰⁰ ($39 million ¹⁰¹ after-tax) related to the impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in SCE's 2025 GRC final decision. Net cash provided by operating activities for Edison International was $5,800 million ¹⁰² in 2025, compared to $5,014 million ¹⁰³ in 2024. Total assets at December 31, 2025 were $94,026 million ¹⁰⁴, compared to $85,579 million ¹⁰⁵ at December 31, 2024. Long-term debt (including current portion) was $37,998 million ¹⁰⁶ at December 31, 2025, compared to $35,583 million ¹⁰⁷ at December 31, 2024.

The most material risk is the potential for catastrophic wildfire-related liability, which could materially affect SCE's financial condition and results of operations. As of December 31, 2025, SCE had recorded $1.1 billion ⁷⁵ in losses related to the Eaton Fire and is currently unable to reasonably estimate a range of additional losses. The Liability Cap for the Eaton Fire is approximately $4.3 billion ⁷⁶, and the Wildfire Fund's claims-paying capacity exceeds $21 billion ⁷⁷ as of September 30, 2025, but the fund could be exhausted by catastrophic events. A second critical risk is the dependence on regulatory approval for cost recovery and a reasonable return on investment; the CPUC may disallow costs, as seen with the $76 million ⁷⁸ in net charges from the 2025 GRC final decision and the denial of 50% ⁷⁹ of requested transportation electrification funding. A third risk is the potential for credit rating downgrades, which increase borrowing costs and impact access to capital; following SB 254, S&P downgraded SCE's long-term issuer credit rating, and SCE's credit ratings are subject to further negative action if regulators fail to implement wildfire legislation in a credit-supportive manner. A fourth risk involves the inherent dangers of operating electrical facilities, including the risk of utility assets causing or contributing to wildfires, which can lead to significant liability, regulatory penalties, and reputational harm. Finally, the concentration of business activities in the electric utility industry in California exposes Edison International and SCE to regional economic, regulatory, and legislative risks, including the application of strict liability by California courts in wildfire litigation.