8-KRegulation FDOther EventsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Regulation FD Disclosure (Sep 19, 2025)

Filed September 19, 2025For Securities:EIX

Summary

This 8-K filing by Edison International (EIX) and its subsidiary Southern California Edison Company (SCE) primarily concerns a proposed settlement agreement related to the 2018 Woolsey Fire. The core of the disclosure is the application to the California Public Utilities Commission (CPUC) for cost recovery of prudently incurred losses and restoration costs stemming from the fire. Under the proposed settlement, SCE seeks authorization to recover approximately $2.0 billion, representing 35% of the total estimated $5.6 billion in losses, which includes uninsured claims paid and related legal and financing costs incurred up to May 31, 2025. An additional 35% of losses incurred after that date would also be recoverable. Importantly, SCE has waived its right to recover an additional $250 million in uninsured claims and related financing costs under a prior agreement. The filing also notes that SCE will request approval to finance the authorized recovery amounts through securitized bonds, with an alternative recovery mechanism through rates over five years using long-term debt if securitization is denied. Furthermore, approximately $71 million of $84 million in restoration costs is also subject to recovery. This settlement, if approved by the CPUC, will allow SCE to permanently exclude certain disallowed or waived costs and associated debt financing from its regulatory capital structure, which could positively impact its financial flexibility. Investors should monitor the CPUC's decision on this significant settlement, as it pertains to a material financial liability for SCE.

Key Highlights

  • 1SCE is seeking CPUC approval for a settlement agreement regarding losses and restoration costs from the 2018 Woolsey Fire.
  • 2The proposed settlement allows for recovery of approximately $2.0 billion (35% of $5.6 billion) in prudently incurred losses.
  • 3This recovery includes uninsured claims paid as of May 31, 2025, and associated legal and financing costs.
  • 4SCE will also seek recovery of 35% of losses incurred after May 31, 2025.
  • 5Approximately $71 million of $84 million in restoration costs is also proposed for recovery.
  • 6SCE has waived its right to recover $250 million in uninsured claims and related financing costs under a previous SED agreement.
  • 7The settlement, if approved, allows for financing the authorized amounts via securitized bonds or, if denied, through rate recovery over five years with long-term debt.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the details of a proposed settlement agreement between Southern California Edison (SCE), a subsidiary of Edison International, and various parties regarding the recovery of costs and losses associated with the 2018 Woolsey Fire. SCE is seeking approval from the California Public Utilities Commission (CPUC) for this settlement.

Under the proposed settlement agreement, SCE is seeking authorization to recover approximately $2.0 billion, which represents 35% of the total estimated $5.6 billion in losses. This includes uninsured claims paid, legal costs, and financing costs incurred up to May 31, 2025, as well as 35% of losses incurred after that date.

If the settlement is approved by the CPUC, SCE intends to request approval to finance the authorized recovery amounts through the issuance of securitized bonds. If the securitization application is denied, the authorized amounts will be recovered in rates over five years, financed using long-term debt.

Yes, SCE has waived its right to seek recovery of $250 million of uninsured claims and related financing costs under a prior SED Agreement. Additionally, SCE has waived its right to seek recovery of uninsured losses tracked in a Wildfire Expense Memorandum Account incurred in connection with fires that ignited prior to July 12, 2019, estimated to be approximately $157 million.