Detailed Narrative
Legislative Engagement and Wildfire Reform
Edison International is actively engaged with the Governor's office, legislators, and key stakeholders on wildfire reform and affordability. Discussions center on aligning risk, supporting affordability, and maintaining access to capital at a reasonable cost. The clarity and quality of the legislative outcome will influence the cost of capital available for future investments, with a durable framework supporting lower costs and continued infrastructure investment, while an unpredictable framework could increase financing costs.
Wildfire Mitigation Strategy and Grid Hardening
SCE's wildfire mitigation strategy is comprehensive, utilizing advanced modeling, improved data, and climate-informed analysis to identify and prioritize safety measures. The utility is broadening its evaluation of risks and failure scenarios, assessing how multiple conditions can combine to influence safety consequences. Preliminary estimates in the RAMP application for the 2029-2032 period include about 450 miles of covered conductor and approximately 190 miles of targeted undergrounding, building on the 800 miles of covered conductor and 90 miles of undergrounding already deployed.
AI Integration for Operational Excellence
Edison is increasingly combining operating experience with richer data, advanced analytics, and AI-enabled capabilities to improve risk identification, prioritization, and management. SCE expects AI to be an important enabler of its long-term transformation, accelerating operational excellence, improving grid planning and operations, and strengthening wildfire mitigation efforts. Examples include deploying tools to automate initial design generation and validation, aiming to accelerate design cycles by 20% to 30%, and streamlining permit processing to reduce cycle times by approximately 20%.
Wildfire Recovery Compensation Program (WRCP) and Eaton Fire Liability
SCE has extended over 2,200 offers totaling over $775 million to more than 12,300 community members impacted by the Eaton fire through its voluntary WRCP. The company is working with the CEA on a prefunding mechanism for claims. However, the current volume of WRCP and subrogation settlements (2 insurer settlements at ~$0.55 on the dollar) is not yet sufficient to estimate the low end of the estimable liability range under GAAP principles, despite over 30,000 litigation claims filed.
Clean Energy Transition and Storage Portfolio
Edison International remains committed to supporting the clean energy transition, as detailed in its 2025 sustainability report. SCE delivered at least 60% carbon-free power to customers, which is over 70% cleaner than the national average. The utility also contracted approximately 900 megawatts of energy storage in Q2 FY26, bringing its total owned or under contract portfolio to about 9,200 megawatts, making it one of the largest storage portfolios in the nation.
Woolsey Fire Cost Recovery Securitization
SCE successfully completed the Woolsey Fire cost recovery securitization, generating approximately $2 billion in proceeds. This outcome was met with strong demand from capital providers. The proceeds will be utilized to recover claims and other associated costs, including the retirement of related debt, thereby further strengthening the company's balance sheet.