EIX · 10-Q · 2026Q3 · Full report

Operating Expense Trends

EDISON INTERNATIONAL · 2026-10-29 · Importance 41 · Surprise 24

SCE operation and maintenance expense decreased $503 million in the nine months ended September 30, 2026, including a $463 million decrease in pass-through costs, mainly reflecting recovery of previously deferred wildfire mitigation and vegetation-management costs authorized in 2025. The 2025 comparison also included a $62 million charge for disallowed historical expenses related to 2021 GRC wildfire-mitigation memorandum-account balances. Depreciation and amortization increased $92 million, primarily because of higher plant balances, while property and other taxes increased $34 million, primarily because of higher assessed property values.

Key facts

• SCE's asset impairment and other expense decreased $87 million in the third quarter of 2026, primarily because of an $88 million impairment recorded in 2025 for utility property associated with historical capital expenditures disallowed in the 2025 GRC final decision. source
• SCE's purchased power and fuel costs decreased $14 million in the third quarter of 2026, primarily due to higher CAISO settlement and congestion revenue rights credits, partly offset by higher capacity costs. source
• SCE's operation and maintenance expense decreased $27 million in the third quarter of 2026, primarily due to a $56 million net decrease in pass-through costs, mainly from recovery in 2025 of previously deferred wildfire mitigation and vegetation management costs. source
• SCE's depreciation and amortization expense decreased $8 million in the third quarter of 2026, reflecting $42 million of higher 2025 depreciation after implementation of the 2025 GRC decision, partly offset by $34 million of higher pass-through costs, mainly FERC-related. source
• SCE's property and other taxes increased $19 million in the third quarter of 2026, primarily due to higher assessed property values from higher plant balances. source
• SCE's interest expense increased $43 million in the third quarter of 2026, primarily due to $45 million of higher pass-through costs associated mainly with securitization of costs approved for recovery under the TKM and Woolsey Settlement Agreements. source