Earning Activities

Earning activities were primarily affected by the following:

Higher operating revenue of ~~$37~~$191 million primarily due to the following:

An increase in CPUC-related revenue of ~~$26~~$166 million primarily due the adoption of the 2018 GRC final decision. This increase is due to SCE recording revenue in ~~CPUC~~2020 based on the 2018 GRC final decision in comparison to recording revenue ~~primarily related to a $16 million refund to customers~~ in ~~2018 for prior overcollections and $6 million related to~~ the ~~incremental return~~first quarter of 2019 based on ~~rate base recorded through the pole loading balancing account.~~2017 adjusted authorized revenue.

An increase in FERC-related revenue of ~~$11~~$23 million ~~in FERC revenue~~ primarily due to favorable earnings from a higher proportion of equity in SCE's actual capital structure used in setting FERC rates, higher FERC rate base and higher operating costs subject to balancing account ~~treatment (offset in operation and maintenance expenses and interest expense below).~~treatment.

Higher operation and maintenance costs of ~~$80~~$128 million primarily due to:

Increased expenses of $66 million due to higher vegetation management costs and other wildfire mitigation costs, partially offset by lower inspection and preventative maintenance costs. Vegetation management costs were higher in 2020 due to higher prevailing wages required by California Senate Bill 247 and increased scope of work.

Higher wildfire insurance expenses of $20 million due to the authorization to recover certain 2018 wildfire insurance expenses reducing expenses in the first quarter of 2019.

Higher employee benefit expenses of $20 million resulting primarily from the payout of 2019 short-term incentive compensation.

Other increased expenses of $35 million primarily due to ~~wildfire mitigation~~higher expense from the allowance for doubtful accounts primarily due to the COVID-19 pandemic, higher workers' compensation costs ~~including enhanced overhead inspections,~~ and ~~other preventative maintenance costs.~~expenses subject to balancing account treatment.

Higher ~~depreciation and amortization~~wildfire insurance fund expense of ~~$21~~$84 million ~~primarily related~~for amortization of contributions to ~~transmission~~the Wildfire Insurance Fund for insurance protection. See "Management Overview—Southern California Wildfires and ~~distribution investments.~~Mudslides" for further information.

Higher interest expense of ~~$23~~$16 million primarily due to increased ~~borrowings and higher interest on balancing account overcollections.~~borrowings.

Lower ~~other~~ income ~~and expense~~tax benefit of $5$30 million primarily due to ~~lower AFUDC equity income.~~

~~Higher income tax benefits~~the absence of ~~$99 million primarily due to higher non-core~~2019 income tax benefits of $69 million related to changes in the allocation of deferred tax re-measurement between customers and shareholders, partially offset by 2020 income tax benefits of $18 million due to re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit and lower pre-tax ~~income, excluding non-core items.~~income.

Cost-Recovery Activities

Cost-recovery activities were primarily affected by the following:

~~Higher~~Lower purchased power and fuel costs of $79 million ~~primarily~~ driven by ~~higher~~lower power and gas prices, lower ~~congestion revenue right credits~~load related to energy efficiency and ~~higher~~customer departures to CCAs and lower charges from contract amendments, partially offset by lower ~~load related to cooler weather~~congestion revenue right credits. In addition, CAISO issued invoices that revised FERC tariffs for interest costs associated with scheduling coordinator activities. This resulted in a generation surcharge of $59 million reflected as an additional purchased power expense and ~~higher realized gains on hedging activities.~~a transmission refund of $66 million as a reduction in operation and maintenance expense.

~~Higher~~Lower operation and maintenance costs of $138 million ~~primarily~~ driven by the authorization to recover 2018 wildfire insurance costs that had been deferred as regulatory assets increasing expenses in 2019, the CAISO refund of $66 million mentioned above and ~~higher spending on various public purpose programs and~~lower transmission access charges.

~~Lower~~Higher other income ~~and expense~~ of $8$10 million primarily driven by ~~lower~~higher net periodic benefit income related to the non-service cost components for SCE's other post-retirement benefit plans. See "Notes to Consolidated Financial Statements—Note 9. Compensation and Benefit Plans" for further information.

Supplemental Operating Revenue Information

SCE's retail billed and unbilled revenue (excluding wholesale sales) was ~~$2.6~~$2.5 billion and ~~$2.4~~$2.6 billion for the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019 respectively.

The decrease for the three months ended March 31, 2020 compared to the same period in 2019 ~~revenue increase~~ is primarily ~~related~~due to ~~higher~~ lower

cost-recovery activities related to ~~2018~~ wildfire insurance ~~costs and higher purchased power and fuel costs driven by higher power and gas prices, lower congestion revenue right credits and higher charges from contract amendments,~~expenses, partially offset by ~~lower load related~~higher CPUC revenue due to ~~cooler weather.~~the adoption of the 2018 GRC final decision. See "—Cost-Recovery Activities" and "—Earnings Activities" for further details.

As a result of the CPUC-authorized decoupling mechanism, SCE earnings are not affected by changes in retail electricity sales.

Income Taxes

SCE's income tax benefit ~~increased~~decreased by ~~$99~~$30 million for the three months ended March 31, ~~2019~~2020 compared to the same period in ~~2018.~~2019.

The effective tax rates were ~~(48.2)~~(43.1)% and ~~(1.9)~~(48.2)% for the three months ended March 31, ~~2019~~2020 and ~~2018,~~2019, respectively. SCE's effective tax rate is below the federal statutory rate of 21% primarily due to CPUC's ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences, which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred income tax expense. The effective tax rate ~~decrease~~increase for the three months ended March 31, 2020 is primarily due to absence of the ~~change in the allocation of~~2019 excess deferred tax re-measurement between customers and shareholders that resulted from a CPUC resolution, partially offset by tax benefits from re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit and higher tax benefits on property-related items recorded in 2020 as a result of ~~a CPUC resolution issued in February 2019.~~2018 GRC final decision.

See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rates.

Edison International Parent and Other

Results of operations for Edison International Parent and Other include amounts from other Edison International subsidiaries that are not significant as a reportable segment, as well as intercompany eliminations.

~~Income~~Loss from ~~Continuing~~ Operations

The following table summarizes the results of Edison International Parent and Other:


	Three months ended March 31,						Three months ended March 31,
(in millions)	2019			2018			2020			2019
Edison Energy Group and subsidiaries	$	(3	)	$	(52	)	$	(2	)	$	(3	)
Corporate expenses and other subsidiaries	(12		)	(16		)	34			12
Total Edison International Parent and Other	$	(15	)	$	(68	)	$	(36	)	$	(15	)

The loss from ~~continuing~~ operations of Edison International Parent and Other ~~decreased $53~~increased $21 million for the three months ended March 31, ~~2019~~2020 compared to the same period in ~~2018~~2019.

The increase for the three months ended March 31, 2020 is primarily driven by higher interest expense as a result of increased borrowings, higher corporate expenses and a charge of $3 million due to re-measurement of uncertain tax positions related to the ~~absence of an after-tax impairment charge of $48 million resulting from an agreement to sell SoCore Energy and lower corporate expenses.~~2010 – 2012 California state tax filings currently under audit.

LIQUIDITY AND CAPITAL RESOURCES

SCE

SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its cash flow and access to the bank and capital markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preferred and preference shareholders, and the outcome of tax and regulatory matters.

The COVID-19 pandemic may cause restricted access to, or increased costs of accessing, bank and capital markets. As a precaution, in March and April 2020, SCE brought forward debt issuances that had been planned for later in the year to provide additional financing flexibility given possible future market uncertainty. For further details, see "Management Overview—COVID-19" and "—Available Liquidity."

In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, capital market financings, and equity contributions from Edison International Parent, as needed. SCE also has availability under its credit facility to fund cash requirements.

SCE expects to finance the approximately $1.6 billion of AB 1054 Excluded Capital Expenditures by issuing securitized bonds. For further information, see "Management Overview—Southern California Wildfires and Mudslides." Prior to issuance of such bonds, other debt instruments are being used to temporarily finance the expenditures, including a term loan of $475 million and a 364-day revolving credit facility for $800 million entered into during the first quarter of 2020.

SCE's long-term issuer credit ratings remain at investment grade levels after downgrade actions taken by the major credit agencies in ~~March~~the first quarter of 2019. SCE's rating outlook has remained stable, after the passage of AB 1054 and the establishment of the Wildfire Insurance Fund, which provided the Liability Cap and the new standard that the CPUC must apply when assessing the prudency of a utility. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

The following table summarizes SCE's current, long-term issuer credit ratings and outlook from the major credit rating agencies:



	Moody's	Fitch	S&P
Long-term Issuer Credit Rating	Baa2	BBB-	BBB
Outlook	~~Negative~~Stable	~~Watch Negative~~Stable	~~Watch Negative~~Stable

SCE's credit ratings may be further affected if, among other things, regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner or the Wildfire Insurance Fund is depleted by ~~the ultimate outcome of pending enforcement and litigation matters, including the outcome~~claims from catastrophic wildfires. The broad economic impacts of the ~~uncertainties~~COVID-19 pandemic may also affect SCE's credit rating. For further information see "Management Overview—COVID-19" and potential liabilities associated with the 2017/2018 Wildfire/Mudslide Events, and the reform of policies allocating liability to investor-owned utilities for damages caused by catastrophic wildfires substantially caused by utility equipment."Risk Factors." Credit rating downgrades increase the cost and may impact the availability of short-term and

long-term borrowings, including commercial paper, credit facilities, bond financings or other borrowings. In addition, some of SCE's power procurement contracts require SCE to pay related liabilities or post additional collateral if SCE's credit rating were to fall below investment grade ~~rating~~ from the major credit rating agencies. Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade ~~is $14~~are $39 million as of March 31, ~~2019.~~2020. In addition, if SCE's credit rating falls below investment grade, it may be required to post up to $50 million in collateral, in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which the downgrade occurs. Furthermore, if SCE was downgraded below investment grade, counterparties may also institute new collateral requirements for future transactions. For further details, see "—Margin and Collateral Deposits."

Available Liquidity

At March 31, ~~2019,~~2020, SCE had approximately $2.8 billion available under its $3.0 billion credit ~~facility.~~facility and cash on hand of $451 million. The credit facility is available for borrowing needs until May ~~2023~~2024 and ~~contains~~may be extended for one additional year with the lenders' approval. The aggregate maximum principal amount under the SCE revolving credit facility may be increased up to $4.0 billion, provided that additional lender commitments are obtained.

In the first quarter of 2020, SCE entered into a 364-day revolving credit facility for $800 million. The credit facility is available for borrowing needs until March 2021 and may be extended for two ~~1-year extension options.~~364-day periods, at the lenders' discretion. The aggregate maximum principal amount under the revolving credit facility may be increased up to $1.1 billion, provided that additional lender commitments are obtained. At March 31, 2020, SCE had no borrowings under the facility. The facility is expected to fund future AB 1054 Excluded Capital Expenditures until an anticipated issuance of securitized bonds. In the first quarter of 2020, SCE also borrowed ~~$750~~$475 million under a term loan agreement due in ~~February 2019~~March 2021 to repay commercial paper borrowings temporarily used to fund AB 1054 Excluded Capital Expenditures.

In the first quarter of 2020, SCE issued a total of $1.7 billion of first and refunding mortgage bonds. The proceeds were used to repay SCE's commercial paper borrowings and repurchase tax-exempt pollution control bonds that were subject to re-marketing. SCE continues to hold the tax-exempt pollution control bonds and plans to re-market them subject to market conditions. In April 2020, SCE issued ~~$1.1 billion~~$600 million of first and refunding mortgage bonds due in ~~March 2019.~~2025. The proceeds ~~from the term loan and the March 2019 bond issuances~~ were used to ~~repay commercial paper borrowings and for general corporate purposes.~~finance undercollections of revenues SCE is authorized to recover from customers through regulatory balancing accounts. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

~~In April 2019, Edison International contributed $750 million to SCE, which SCE used to repay its February 2019 term loan discussed above.~~

SCE may finance balancing account undercollections and working capital requirements to support operations and capital expenditures with commercial paper, its credit ~~facility~~facilities or other borrowings, subject to availability in the bank and capital markets. As necessary, SCE will utilize its available liquidity, capital market financings, other borrowings or parent company contributions to SCE equity in order to meet its obligations as they become due, including any potential costs related to the 2017/2018 Wildfire/Mudslide ~~Events (see~~Events. For further information, see "Management Overview—Southern California Wildfires and ~~Mudslides" for further information).~~Mudslides."

Debt Covenant

~~A debt covenant in~~ SCE's credit ~~facility limits its~~facilities and term loan require a debt to total capitalization ratio toas defined in the applicable agreements of less than or equal to 0.65 to 1. At March 31, ~~2019,~~2020, SCE's debt to total capitalization ratio was ~~0.52~~0.49 to 1.

At March 31, ~~2019,~~2020, SCE was in compliance with all ~~other~~ financial covenants that affect access to capital.

Capital Investment Plan

Major Transmission Projects

~~Eldorado-Lugo-Mohave Upgrade~~Riverside Transmission Reliability Project

In ~~April 2019, SCE filed an amended application for a certificate of public convenience and necessity with~~October 2018, the CPUC ~~which included total~~issued an environmental report that identified a new route alternative, as the environmentally preferred project ~~costs~~and proposed an additional underground section of ~~$257 million,~~the proposed 220-kV power line. In March 2020, the alternative project with revised scope and an ~~increase of $24 million to the previous estimate.~~

~~Regulatory Proceedings~~

~~2020 Cost of Capital Application~~

~~In April 2019, SCE filed its application with the CPUC for authority to establish its authorized~~updated cost of capital for utility operations for a three-year term, beginning January 1, 2020. In its application, SCE seeks a return on common equity of 10.60% for 2020 ("CPUC Base ROE"), compared to its current CPUC ROE of 10.30%. In addition to this CPUC Base ROE, SCE seeks an additional ROE of 6% to compensate investors for current wildfire risk ("CPUC Wildfire Risk ROE"). SCE would seek to reduce or remove this CPUC Wildfire Risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform.

SCE also seeks to modify its current capital structure to increase the common equity component of its capital structure from its current authorized level of 48% to 52% in 2020 and correspondingly reduce its preferred equity from 9% to 5%. If this change is not$584 million was approved SCE seeks a higher CPUC Base ROE of 10.9% to account for the increased leverage. SCE does not propose to change its currently authorized level of long-term debt of 43%. In the application, SCE projects a cost of long-term debt of 4.74% and an embedded cost of preferred equity of 5.70% and requests that the CPUC authorize these costs for 2020. Based on the capital structure and cost factors discussed above, SCE proposes a weighted average return on rate base of 10.96% for 2020.

SCE proposes to maintain the current Cost of Capital Mechanism ("CCM"), which provides for an automatic modification of ROE, long-term debt and preferred equity costs in intervening years based on fluctuations in interest rates. In its application, SCE proposes to change the CCM so that it only applies to CPUC Base ROE, not to the CPUC Wildfire Risk ROE.

Assuming that the revenue requirement in SCE's pending 2018 GRC request, including the proposed post-test year ratemaking mechanism, is adopted, SCE's proposed cost of capital and capital structure will result in a projected revenue requirement increase in 2020 of approximately $1.2 billion from revenue currently included in electric rates of $11.1 billion.

~~FERC Formula Rate~~

~~2018 Formula Rate~~

by CPUC. The ~~formula rate that SCE filed in 2017, with a January 1, 2018 effective~~scheduled in-service date ~~is still pending resolution and is currently in settlement discussions. As a result, SCE's 2018 FERC rates remain subject to refund.~~

~~2019 Formula Rate~~

In April 2019, SCE filed an application with FERC to amend the formula rate associated with its transmission facilities in 2019. In the revised formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4%.

If the new formula rate is accepted by FERC, it will supersede the existing formula rate, including the 2019 annual update, and could become effective as early as 60 days from the filing date. FERC has the authority to, and may, suspend new rates for up to five months. If the new formula rate is suspended by FERC, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the ~~suspension of the new formula rate. The new formula rate would likely be subject~~project has been extended from 2024 to ~~refund from the end of the suspension until it is ultimately approved by FERC.~~

If the revised formula rate becomes effective on June 12, 2019 (the effective date requested by SCE), SCE's proposed revisions to its formula rate will result in a projected increase in its retail base transmission revenue requirement in 2019 of approximately $290 million from the currently effective retail base transmission revenue requirement of approximately $1 billion.2026.

SCE Dividends

CPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison

International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders. ~~Under~~

Prior to January 1, 2020, under SCE's interpretation of CPUC regulations and capital structure decisions, the common equity component of SCE's capital structure ~~must~~was required to remain at or above 48% on a weighted average basis over the 37-month period that SCE's capital structure iswas in effect for ratemaking ~~purposes.~~

~~Under SCE's interpretation of the CPUC's capital structure decisions,~~purposes and SCE iswas required to file an application for a waiver of the 48% equity ratio condition discussed above if an adverse financial event reduces its spot equity ratio below 47%. OnEffective January 1, 2020, the common equity component of SCE's authorized capital structure was increased from 48% to 52% on a weighted average basis over the period that SCE's capital structure is in effect for ratemaking purposes. For further information, see "Management Overview—2020 Cost of Capital Application" in the 2019 MD&A. Under AB 1054,

the impact of SCE's contributions to the Wildfire Insurance Fund are excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

In February ~~28,~~ 2019, SCE submitted an application to the CPUC for waiver of compliance with ~~this~~the equity ratio

requirement applicable at that time, describing that while the initial $1.8 billion net charge accrued as of December 31, 2018 in connection with the 2017/2018 Wildfire/Mudslide Events caused its equity ratio to fall below 47% on a spot basis as of December 31, 2018, SCE ~~remains~~remained in compliance with the 48% equity ratio over the applicable 37-month average basis. In ~~its~~April 2020, the CPUC issued a proposed decision on SCE's application that, if adopted, would allow SCE ~~requested a limited waiver~~ to exclude ~~wildfire-related charges and wildfire-related debt issuances~~ from its equity ratio calculations ~~until~~(i) net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events and (ii) debt issued for the purpose of paying claims related to the 2017/2018 Wildfire/Mudslide Events up to an amount equal to the net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events. The temporary exclusion will lapse two years from the issuance of a final decision or when a determination regarding cost recovery for the 2017/2018 Wildfire/Mudslide Events is ~~made. Under~~made, whichever comes earlier. If the ~~CPUC's rules,~~CPUC has not made a determination regarding cost recovery within two years of issuance of a final decision, SCE is permitted to file another application for a waiver of compliance with its equity ratio requirement. If the proposed decision is adopted, SCE will ~~not~~ be ~~deemed~~required to ~~be in violation of~~notify the CPUC if an adverse financial event reduces SCE's spot equity ratio ~~requirement,~~by more than one percent from the level most recently filed with the CPUC in the proceeding. The last spot equity ratio SCE filed with the CPUC in the proceeding did not exclude the $1.8 billion net charge and ~~therefore may continue to issue debt and dividends, while the waiver application is pending resolution.~~was 45.2% as of December 31, 2018. For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides." At March 31, 2019, without excluding the $1.8 billion after-tax wildfire related charge incurred in 2018, SCE's 37-month average common equity component of total capitalization was 49.3% and the maximum additional dividend that SCE could pay to Edison International under this limitation was $356 million, resulting in a restriction on net assets of approximately $13.5 billion. If the waiver had been approved by CPUC at March 31,

2019, SCE's 37-month average common equity component of total capitalization would have been 49.7%. In its 2020 cost of capital application filed in April 2019, SCE seeks to modify its current capital structure to increase the common equity component of its capital structure from its current authorized level of 48% to 52% in 2020. For further details, see "—Regulatory Proceedings—2020 Cost of Capital Application" above.

As a California corporation, SCE's ability to pay dividends is also governed by the California General Corporation Law. California law requires that for a dividend to be declared: (a) retained earnings must equal or exceed the proposed dividend, or (b) immediately after the dividend is made, the value of the corporation's assets must exceed the value of its liabilities plus amounts required to be paid, if any, in order to liquidate stock senior to the shares receiving the dividend. Additionally, a California corporation may not declare a dividend if it is, or as a result of the dividend would be, likely to be unable to meet its liabilities as they mature. Prior to declaring dividends, SCE's Board of Directors evaluates available information, including when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met. On February 27, 2020, SCE declared a dividend to Edison International of $269 million.

The timing and amount of future dividends are also dependent on a number of other factors including SCE's requirements to fund other obligations and capital expenditures, ~~and~~ its ability to access the capital markets, and generate operating cash flows and earnings. If SCE incurs significant costs related to catastrophic wildfires, including the 2017/2018 Wildfire/Mudslide Events, and is unable to recover such costs through insurance, the Wildfire Insurance Fund (for fires after July 12, 2019), or from customers or access capital markets on reasonable terms, SCE may be limited in its ability to pay future dividends to Edison ~~international~~International and its preferred and preference shareholders.

Margin and Collateral Deposits

Certain derivative instruments, power and energy procurement contracts and other contractual arrangements contain collateral requirements. In addition, certain environmental remediation obligations require financial assurance that may be in the form of collateral postings. Future collateral requirements may differ from the requirements at March 31, ~~2019~~2020 due to the addition of incremental power and energy procurement contracts with collateral requirements, if any, ~~and~~ the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations and the impact of SCE's credit ratings falling below investment grade.

The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would have been required as of March 31, ~~2019.~~2020 if SCE's credit rating had been downgraded to below investment grade as of that date. The table below also provides the potential collateral that could be required due to adverse changes in wholesale power and natural gas prices over the remaining lives of existing power and energy procurement contracts.

(in millions)
Collateral posted¹
$ 222
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade²
14
Incremental collateral requirements for power procurement contracts resulting from adverse market price movement³
10
Posted and potential collateral requirements $ 246

¹Net collateral provided to counterparties and other brokers consisted of $211 million in letters of credit and surety bonds and $11 million of cash reflected in "Other current assets" on the consolidated balance sheets.



(in millions)
Collateral posted as of March 31, 2020¹	$	228
Incremental collateral requirements for purchase power and fuel contracts resulting from a potential downgrade of SCE's credit rating to below investment grade²	39
Incremental collateral requirements for purchase power and fuel contracts resulting from adverse market price movement³	23
Posted and potential collateral requirements	$	290


^{2 1}	~~If SCE's~~Net collateral provided to counterparties and other brokers consisted of $176 million in letters of credit ~~rating falls below investment grade, it~~and surety bonds and $52 million of cash collateral, of which $30 million was offset against net derivative liabilities and $22 million was reflected in "Other current assets" on the consolidated balance sheets.


²	Power and fuel contract counterparties may also institute new collateral requirements, applicable to future transactions, at the time of a downgrade not reflected above. Furthermore, SCE may also be required to post up to $50 million in collateral in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which the downgrade occurs.


³	Incremental collateral requirements were based on potential changes in SCE's forward positions as of March 31, ~~2019~~2020 due to adverse market price movements over the remaining lives of existing power contracts using a 95% confidence level.

Decommissioning of San Onofre

Due to the emergency circumstances involving the COVID-19 pandemic and related governmental orders restricting non-essential work activities, SCE has decided to delay commencing major decommissioning activities at San Onofre. SCE will assess the appropriate timing for commencing major decommissioning activities based in part on when governmental restrictions are relaxed. As of the date of this report, SCE is continuing fuel transfer operations and other critical work at San Onofre.

In March 2020, the CPUC approved disbursements from SCE's nuclear decommissioning trusts to cover forecasted 2020 decommissioning costs, of which SCE's share is $406 million.

Edison International Parent and Other

In the next 12 months, Edison International expects to fund its net cash requirements through cash on hand, dividends from SCE, and capital market and bank financings, including by issuing additional debt and equity, as needed.

~~In April 2019,~~ Edison International ~~registered additional shares of~~may finance its ongoing cash requirements, including common stock dividends, working capital requirements, payment of obligations, and capital investments, including capital contributions to subsidiaries, with short-term or other financings, subject to availability in the ~~SEC.~~bank and capital markets.

The COVID-19 pandemic may cause restricted access to, or increased costs of accessing, bank and capital markets. As a precaution, in March and April 2020, Edison International ~~anticipates issuing up~~brought forward debt issuances that had been planned for later in the year to ~~$1.5 billion of registered shares of common stock, including through designated broker-dealers at prevailing~~provide additional financing flexibility given possible future market prices (an at-the-market offering), and anticipates using the proceeds for equity contributions to SCE and for general corporate and working capital purposes. Also, in April 2019, Edison International entered into a $1.0 billion term loan. Of the proceeds of the term loan, $750 million was contributed to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes.uncertainty. For further details, see ~~"Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements.~~"Management Overview—COVID-19." ~~Edison International believes that these contributions will enable SCE to increase the~~

~~common equity component of its capital structure to 52% in 2020 as proposed in SCE's Cost of Capital application filed with the CPUC in April 2019.~~

~~Edison International also has availability under its credit facility.~~ At March 31, ~~2019,~~2020, Edison International Parent had ~~approximately $1.3 billion available under~~no borrowings on its $1.5 billion credit ~~facility.~~facility and cash on hand of $886 million. The credit facility is available for borrowing needs until May ~~2023~~2024, and ~~contains two 1-year extension options.~~may be extended for one additional year with the lenders' approval. Under certain circumstances, the aggregate maximum principal amount under the Edison International Parent revolving credit facility may be increased up to $2.0 billion, provided that additional lender commitments are obtained.

In the first quarter 2020, Edison International Parent borrowed $800 million under a term loan agreement. The proceeds were used for general corporate purposes. In April 2020, Edison International Parent issued $400 million of senior notes due 2025. The proceeds were used to repay all $400 million of Edison International Parent's outstanding Senior Notes due 2020. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

Edison International Parent and Other's liquidity and its ability to pay operating expenses and pay dividends to common shareholders are dependent on access to the bank and capital markets, dividends from SCE, realization of tax benefits and its ability to meet California law requirements for the declaration of dividends. Prior to declaring dividends, Edison

International's Board of Directors evaluates available information, including when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met. For information on the California law requirements on the declaration of dividends, see "—SCE—SCE Dividends." Edison International intends to maintain its target payout ratio of 45% – 55% of SCE's core earnings, subject to the factors identified above.

Edison International ~~may finance common stock dividends, working capital requirements, payment of obligations, and capital investments, including~~Parent expects to make further capital contributions to ~~subsidiaries, with short-term or other financings, subject~~SCE in 2020 to ~~availability~~increase the common equity component of its capital structure to 52% on a weighted average basis over the period that SCE's capital structure is in effect for ratemaking purposes, factoring in the ~~bank and capital markets.~~CPUC waiver of compliance with the equity ratio requirement to the extent it is approved by the CPUC. For further information, see "—SCE—SCE Dividends."

~~A debt covenant in~~ Edison International Parent's credit facility ~~requires~~and term loan require a consolidated debt to total capitalization ratio as defined in the ~~credit agreement~~applicable agreements of less than or equal to 0.70 to 1. At March 31, ~~2019,~~2020, Edison International Parent's consolidated debt to total capitalization ratio was ~~0.57~~0.58 to 1.

At March 31, ~~2019,~~2020, Edison International Parent was in compliance with all financial covenants that affect access to capital.

Edison International Parent's long-term issuer credit ratings remain at investment grade ~~levels~~levels. Edison International Parent's rating outlook has remained stable, after ~~downgrade actions taken by~~ the ~~major credit rating agencies in March 2019.~~ passage of AB 1054 and the establishment of the Wildfire Insurance Fund, which provided the Liability Cap and the new standard that the CPUC must apply when assessing the prudency of a utility. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

The following table summarizes Edison International Parent's current long-term issuer credit ratings and outlook from the major credit rating agencies:



	Moody's	Fitch	S&P
Long-term Issuer Credit Rating	Baa3	BBB-	BBB
Outlook	~~Negative~~Stable	~~Watch Negative~~Stable	~~Watch Negative~~Stable

Edison International Parent's credit ratings may be further affected if, among other things, regulators fail to successfully implement AB 1054 in a consistent and credit supportive manner or the Wildfire Insurance Fund is depleted by ~~the ultimate outcome of pending enforcement and litigation matters, including the outcome~~claims from catastrophic wildfires. The broad economic impacts of the ~~uncertainties~~COVID-19 pandemic may also affect Edison International's credit rating. For further information see "Management Overview—COVID-19" and potential liabilities associated with the 2017/2018 Wildfire/Mudslide Events, and the reform of policies allocating liability to investor-owned utilities for damages caused by catastrophic wildfires substantially caused by utility equipment."Risk Factors." Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, note financings or other borrowings.

Historical Cash Flows

SCE


	Three months ended March 31,						Three months ended March 31,
(in millions)	2019			2018			2020			2019
Net cash provided by operating activities	$	247		$	801		$	334		$	247
Net cash provided by (used in) financing activities	1,063			(216		)
Net cash provided by financing activities							1,368			1,063
Net cash used in investing activities	(986		)	(1,085		)	(1,274		)	(986		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	324		$	(500	)
Net increase in cash, cash equivalents and restricted cash							$	428		$	324

The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:



	March 31, 2020				December 31, 2019
(in millions)	Carrying Value¹		Fair Value²		Carrying Value¹		Fair Value²
Edison International	$	20,026	$	21,169	$	18,343	$	20,137
SCE	16,892		18,062		15,211		16,892

March 31, 2019 December 31, 2018
(in millions)
Carrying
Value¹

Fair
Value²

Carrying
Value¹

Fair
Value²
Edison International $ 15,762
$ 16,068
$ 14,711
$ 14,844
SCE 14,021
14,412
12,971
13,180


¹	Carrying value is net of debt issuance costs.

²~~The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.~~


²	The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.

Note 5. Debt and Credit Agreements

Long-Term Debt

In ~~March 2019,~~January 2020, SCE issued ~~$500~~$100 million of ~~4.20%~~2.85% first and refunding mortgage bonds due in 2029 and ~~$600~~$500 million of ~~4.875%~~3.65% first and refunding mortgage bonds due in ~~2049. The proceeds were used to repay commercial paper borrowings and for general corporate purposes.~~

~~Credit Agreements and Short-Term Debt~~

~~In February 2019, SCE borrowed $750 million under a Term Loan Agreement due in February 2020, with a variable interest rate based on the London Interbank Offered Rate plus 70 basis points.~~2050. The proceeds were used to repay SCE's commercial paper borrowings and for general corporate purposes.

In ~~April 2019, Edison International~~March 2020, SCE issued $400 million of 2.25% first and refunding mortgage bonds due in 2030 and $700 million of 3.65% first and refunding mortgage bonds due in 2050. The proceeds were primarily used to repay SCE's commercial paper borrowings and for general corporate purposes, including the re-purchase of SCE tax exempt pollution control bonds.

Credit Agreements and Short-Term Debt

In March 2020, SCE borrowed ~~$1.0 billion~~$475 million under a ~~Term Loan Agreement~~term loan agreement due in ~~April 2020,~~March 2021, with a variable interest rate based on the London Interbank Offered Rate plus 9060 basis points. OfThe proceeds were used to repay commercial paper borrowings temporarily used to fund AB 1054 Excluded Capital Expenditures. Additionally, in March 2020, SCE entered into a revolving credit facility in an amount not to exceed $800 million with a variable interest rate based on the London Interbank Offered Rate plus 65 basis points on drawn funds. The credit facility is available for borrowing needs until March 2021, and may be extended for 2, 364-day periods, at the lenders' discretion. The aggregate maximum principal amount under the revolving credit facility may be increased up to $1.1 billion, provided that additional lender commitments are obtained. As of March 31, 2020, there were 0 amounts drawn against the revolving credit facility. SCE plans to use the proceeds ~~of the term loan, $750 million was contributed~~ to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes. In April 2019, SCE used the $750 million Edison International contributed to SCE to repay its February 2019 Term Loan discussed above.finance future AB 1054 Excluded Capital Expenditures.

SCE and Edison International Parent have multi-year revolving credit facilities of $3.0 billion and $1.5 billion, respectively, both ~~facilities~~ maturing in May ~~2023~~2024, with an option to extend for an additional year, which may be exercised upon agreement between SCE or Edison International Parent and ~~have two 1-year extension options.~~their respective lenders. The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes.

At March 31, 2020, SCE had 0 outstanding commercial paper. At December 31, 2019, ~~SCE's~~SCE had $550 million outstanding commercial paper, net of discount, ~~was $29 million~~ at a weighted-average interest rate of ~~3.15%~~2.24%. At March 31, 2020 and December 31, 2019, letters of credit issued under SCE's credit facility aggregated ~~$209~~$175 million and $152 million, respectively, substantially all of which are scheduled to expire in twelve months or less. ~~At December 31, 2018, the outstanding commercial paper, net of discount, was $720 million at a weighted-average interest rate of 3.23%.~~

~~At March 31, 2019, Edison International Parent's outstanding commercial paper, net of discount, was $153 million at a weighted-average interest rate of 3.03%. At December 31, 2018,~~ Edison International Parent had no outstanding commercial ~~paper.~~paper at both March 31, 2020 and December 31, 2019.

In March 2020, Edison International Parent borrowed $800 million under a term loan agreement due in March 2021 with a variable interest rate based on the London Interbank Offered Rate plus 1.125%. The proceeds were used for general corporate purposes.

Financing Subsequent to March 31, 2020

In April 2020, SCE issued $600 million of 3.70% first and refunding mortgage bonds due in 2025. The proceeds were used to finance undercollections of revenues that SCE is authorized to recover from customers through regulatory balancing accounts.

In April 2020, SCE purchased $373 million of its tax-exempt pollution control bonds that were subject to re-marketing and also converted these bonds to a variable rate structure. SCE is the holder of these bonds and plans to re-market them subject to market conditions.

In April 2020, Edison International Parent issued $400 million of 4.95% senior notes due 2025. The proceeds were used to repay all $400 million of Edison International Parent's outstanding 2.125% Senior Notes due in 2020.

Note 6. Derivative Instruments

Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Commodity Price Risk

Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements.

Credit and Default Risk

Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments.

Certain power and gas contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $1$18 million and $4$1 million as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively, for which SCE ~~has~~ posted no$25 million and 0 collateral ~~and $17 million collateral at March 31, 2019 and December 31, 2018, respectively,~~ to its counterparties for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, ~~2019,~~2020, SCE would be required to post $1$17 million of ~~additional~~ collateral.

Fair Value of Derivative Instruments

SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:



	March 31, 2020
	Derivative Assets								Derivative Liabilities								Net Assets
(in millions)	Short-Term			Long-Term¹		Subtotal			Short-Term²			Long-Term		Subtotal			Net Assets
Commodity derivative contracts
Gross amounts recognized	$	57		$	1	$	58		$	55		$	—	$	55		$	3
Gross amounts offset in the consolidated balance sheets	(6		)	—		(6		)	(6		)	—		(6		)	—
Cash collateral posted³	—			—		—			(30		)	—		(30		)	30
Net amounts presented in the consolidated balance sheets	$	51		$	1	$	52		$	19		$	—	$	19		$	33

March 31, 2019
Derivative Assets Derivative Liabilities Net
Assets
(in millions) Short-Term
Long-Term¹
Subtotal
Short-Term²
Long-Term Subtotal
Commodity derivative contracts
Gross amounts recognized $ 102
$ 10
$ 112
$ 2
$ —
$ 2
$ 110
Gross amounts offset in the consolidated balance sheets (1 ) —
(1 ) (1 ) —
(1 ) —
Cash collateral posted³
—
—
—
—
—
—
—
Net amounts presented in the consolidated balance sheets $ 101
$ 10
$ 111
$ 1
$ —
$ 1
$ 110



	December 31, 2019
	Derivative Assets									Derivative Liabilities									Net Assets
(in millions)	Short-Term			Long-Term¹			Subtotal			Short-Term²			Long-Term			Subtotal			Net Assets
Commodity derivative contracts
Gross amounts recognized	$	94		$	8		$	102		$	14		$	2		$	16		$	86
Gross amounts offset in the consolidated balance sheets	(13		)	(2		)	(15		)	(13		)	(2		)	(15		)	—
Cash collateral posted³	—			—			—			—			—			—			—
Net amounts presented in the consolidated balance sheets	$	81		$	6		$	87		$	1		$	—		$	1		$	86

December 31, 2018
Derivative Assets Derivative Liabilities Net
Assets
(in millions) Short-Term
Long-Term¹
Subtotal
Short-Term²
Long-Term Subtotal
Commodity derivative contracts
Gross amounts recognized $ 171
$ 2
$ 173
$ 13
$ —
$ 13
$ 160
Gross amounts offset in the consolidated balance sheets —
—
—
—
—
—
—
Cash collateral posted —
—
—
(7 ) —
(7 ) 7
Net amounts presented in the consolidated balance sheets $ 171
$ 2
$ 173
$ 6
$ —
$ 6
$ 167

¹~~Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.~~

²~~Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.~~

³~~At March 31, 2019, SCE posted $11 million of cash collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets.~~


¹	Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.


²	Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.


³	At March 31, 2020, SCE posted $52 million of cash, of which $30 million was offset against net derivative liabilities and $22 million was reflected in "Other current assets" on the consolidated balance sheets. At December 31, 2019, SCE posted $24 million of cash, which was not offset against net derivative liabilities and was reflected in "Other current assets" on the consolidated balance sheets.

Income Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in the consolidated statements of cash flows.

The following table summarizes the components of SCE's economic hedging activity:


	Three months ended March 31,						Three months ended March 31,
(in millions)	2019			2018			2020			2019
Realized gains (losses)	$	32		$	(12	)
Realized (losses) gains							$	(44	)	$	32
Unrealized losses	(50		)	(14		)	(83		)	(50		)

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for ~~SCE~~SCE's economic hedging activities:



		Economic Hedges
Commodity	Unit of Measure	March 31, 2020	December 31, 2019
Electricity options, swaps and forwards	GWh	4,469	3,155
Natural gas options, swaps and forwards	Bcf	50	43
Congestion revenue rights	GWh	40,736	48,170

Economic Hedges
Commodity Unit of Measure March 31, 2019 December 31, 2018
Electricity options, swaps and forwards GWh 2,515
2,786
Natural gas options, swaps and forwards Bcf 4
20
Congestion revenue rights GWh 39,401
54,453

Note 7. Revenue

SCE's revenue is disaggregated by two revenue sources:

Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.

The following table is a summary of SCE's revenue:


	Three months ended March 31, 2019						Three months ended March 31, 2018									Three months ended March 31, 2020						Three months ended March 31, 2019
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities			Cost-Recovery Activities			Total Consolidated			Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities		Cost-Recovery Activities		Total Consolidated
Revenues from contracts with customers^1,2,3	$	1,502	$	957	$	2,459	$	1,536		$	1,192		$	2,728
Alternative revenue programs and other operating revenue⁴	48		309		357		(23		)	(151		)	(174		)
Revenues from contracts with customers^1,2																$	1,624	$	718	$	2,342	$	1,502	$	957	$	2,459
Alternative revenue programs and other operating revenue³																117		321		438		48		309		357
Total operating revenue	$	1,550	$	1,266	$	2,816	$	1,513		$	1,041		$	2,554		$	1,741	$	1,039	$	2,780	$	1,550	$	1,266	$	2,816

In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in ~~2018 and~~ the ~~three months ended March 31,~~first quarter of 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. In April 2019, the CPUC issued a proposed decision, which, if adopted would result in 2018 and 2019 base rate revenue requirements of $5.102 billion and $5.422 billion, respectively. For further information, see Note 1.


²	At March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, SCE's receivables related to contracts from customers were $1.0 billion and $1.1 billion, respectively, which include accrued unbilled revenue of ~~$459~~$409 million and ~~$482~~$488 million, respectively.


³	~~Includes SCE's franchise fees billed to customers of $28 million for both the three months ended March 31, 2019 and 2018.~~


⁴	Includes differences between amounts billed and authorized levels for both CPUC and FERC.

Note 8. Income Taxes

Effective Tax Rate

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:



	Edison International						SCE
	Three months ended March 31,
(in millions)	2020			2019			2020			2019
Income from operations before income taxes	$	129		$	196		$	174		$	218
Provision for income tax at federal statutory rate of 21%	27			41			37			46
Decrease in income tax from:
State tax, net of federal benefit	(13		)	(7		)	(12		)	(5		)
Property-related	(78		)	(69		)	(78		)	(69		)
Change related to uncertain tax position¹	(15		)	—			(17		)	—
Deferred tax re-measurement²	—			(69		)	—			(69		)
Other	(5		)	(8		)	(5		)	(8		)
Total income tax benefit	$	(84	)	$	(112	)	$	(75	)	$	(105	)
Effective tax rate	(65.1		)%	(57.1		)%	(43.1		)%	(48.2		)%

Edison International SCE
Three months ended March 31,
(in millions) 2019 2018 2019 2018
Income from continuing operations before income taxes $ 196
$ 211
$ 218
$ 310
Provision for income tax at federal statutory rate of 21%
41
44
46
65
Increase in income tax from:

State tax, net of federal benefit (7 ) (5 ) (5 ) 1
Property-related (69 ) (69 ) (69 ) (69 )
Shared-based compensation¹
(2 ) —
(2 ) —
Deferred tax re-measurement²
(69 ) —
(69 ) —
Other (6 ) (1 ) (6 ) (3 )
Total income tax benefit from continuing operations $ (112 ) $ (31 ) $ (105 ) $ (6 )
Effective tax rate (57.1 )% (14.7 )% (48.2 )% (1.9 )%


¹	~~Includes~~Primarily relates to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state ~~taxes of $1 million for the three months ended March 31, 2019 for both Edison International and SCE.~~tax filings currently under audit.

Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February ~~2019.~~2019 to provide guidance on the implementation of Tax Reform. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.

Tax Disputes

Tax years that remain open for examination by the ~~Internal Revenue Service ("IRS")~~IRS and the California Franchise Tax Board are ~~2015~~2016 – ~~2017~~2018 and 2010 – ~~2017,~~2018, respectively. ~~Edison International has settled all open tax positions with the IRS for taxable years prior to 2013.~~

In the fourth quarter of 2018, Edison International reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006 and has updated its uncertain tax positions to reflect this settlement. As a result of the settlement, Edison International expects a $65 million refund of tax and interest from the California Franchise Tax Board in 2019. Tax years 2007 – ~~2009~~2012 are currently under protest with the California Franchise Tax Board.

Note 9. Compensation and Benefit Plans

Pension Plans

Net periodic pension expense components ~~for continuing operations~~ are:



	Three months ended March 31,
(in millions)	2020			2019
Edison International:
Service cost	$	31		$	32
Non-service cost (benefit)
Interest cost	31			39
Expected return on plan assets	(54		)	(52		)
Amortization of net loss¹	3			2
Regulatory adjustment	2			(4		)
Total non-service benefit²	(18		)	(15		)
Total expense recognized	$	13		$	17
SCE:
Service cost	$	30		$	31
Non-service cost (benefit)
Interest cost	28			35
Expected return on plan assets	(51		)	(49		)
Amortization of net loss¹	2			1
Regulatory adjustment	2			(4		)
Total non-service benefit²	(19		)	(17		)
Total expense recognized	$	11		$	14

Edison International SCE
Three months ended March 31,
(in millions) 2019 2018 2019 2018
Service cost $ 32
$ 32
$ 31
$ 31
Non-service cost
Interest cost 39
35
35
32
Expected return on plan assets (52 ) (57 ) (49 ) (53 )
Amortization of prior service cost —
1
—
1
Amortization of net loss¹
2
2
1
1
Regulatory adjustment (deferred) (4 ) 2
(4 ) 2
Total non-service benefit²
$ (15 ) $ (17 ) $ (17 ) $ (17 )
Total expense recognized $ 17
$ 15
$ 14
$ 14

Includes the amount of net loss reclassified from other comprehensive ~~loss of $2 million and $1 million~~loss. The amount reclassified for Edison International and SCE was $3 million and $2 million respectively, for ~~both~~ the three months ended March 31, ~~2019~~2020. The amount reclassified for Edison International and ~~2018.~~SCE was $2 million and $1 million, respectively, for the three months ended March 31, 2019.

²~~Included in "Other income and expenses" on Edison International's and SCE's consolidated statement of income.~~


²	Included in "Other income" on Edison International's and SCE's consolidated statement of income.

Postretirement Benefits Other Than Pensions ("PBOP")

Net periodic PBOP expense components for ~~continuing operations~~Edison International and SCE are:



	Three months ended March 31,
(in millions)	2020			2019
Service cost	$	9		$	8
Non-service cost (benefit)
Interest cost	17			21
Expected return on plan assets	(30		)	(28		)
Amortization of net gain	(4		)	(1		)
Regulatory adjustment	8			6
Total non-service benefit¹	(9		)	(2		)
Total expense	$	—		$	6

Edison International SCE
Three months ended March 31,
(in millions) 2019 2018 2019 2018
Service cost $ 8
$ 9
$ 8
$ 9
Non-service cost
Interest cost 21
21
21
21
Expected return on plan assets (28 ) (30 ) (28 ) (30 )
Amortization of net gain (1 ) —
(1 ) —
Regulatory adjustment (deferred) 6
—
6
—
Total non-service benefit¹
$ (2 ) $ (9 ) $ (2 ) $ (9 )
Total expense $ 6
$ —
$ 6
$ —

¹Included in "Other ~~income and expenses"~~income" on Edison International's and SCE's consolidated statement of income.

Note 10. Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):



	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)	Longest Maturity Dates	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Stocks	—	N/A		N/A		$	1,393	$	1,765
Municipal bonds	2057	$	1,063	$	822	1,214		970
U.S. government and agency securities	2067	745		996		928		1,115
Corporate bonds	2068	575		597		636		679
Short-term investments and receivables/payables¹	One-year	91		32		96		33
Total		$	2,474	$	2,447	$	4,267	$	4,562

Longest
Maturity
Dates
Amortized Cost Fair Value
(in millions) March 31,
2019 December 31,
2018 March 31,
2019 December 31, 2018
Stocks — *
*
$ 1,550
$ 1,381
Municipal bonds 2057 662
665
785
767
U.S. government and agency securities 2067 1,116
1,193
1,224
1,288
Corporate bonds 2050 549
573
603
611
Short-term investments and receivables/payables¹
One-year 124
70
129
73
Total $ 2,451
$ 2,501
$ 4,291
$ 4,120


*	~~Equity investments are measured at fair value.~~


¹	Short-term investments include ~~$35~~$56 million and ~~$71~~$41 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 1, ~~2019~~2020 and January 2, ~~2019~~2020 as of March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, ~~were$1.6~~were $1.5 billion and ~~$1.4~~$1.8 billion at March 31, ~~2019~~2020 and December 31, ~~2018, respectively, and other-than-temporary impairments of $162 million and $170 million at the respective periods.~~2019, respectively.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were ~~$366~~$357 million and ~~$323~~$449 million at March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.9 billion and ~~$3.8~~$4.1 billion at March 31, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

The following table summarizes the gains and ~~(losses)~~losses for the trust investments:



	Three months ended March 31,
(in millions)	2020			2019
Gross realized gains	$	39		$	23
Gross realized loss	2			—
Net unrealized (losses) gains for equity securities	(376		)	168

Three months ended March 31,
(in millions) 2019 2018
Gross realized gains $ 23
$ 61
Gross realized loss —
8
Net unrealized gains (losses) for equity securities $ 168
$ (63 )

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.

Note 11. Regulatory Assets and Liabilities

Regulatory Assets

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



(in millions)	March 31, 2020		December 31, 2019
Current:
Regulatory balancing and memorandum accounts	$	993	$	798
Power contracts	210		189
Other	22		22
Total current	1,225		1,009
Long-term:
Deferred income taxes, net of liabilities	4,145		4,026
Pensions and other postretirement benefits	85		87
Power contracts	387		434
Unamortized investments, net of accumulated amortization	118		119
Unamortized loss on reacquired debt	139		142
Regulatory balancing and memorandum accounts	1,129		981
Environmental remediation	235		237
Other	56		62
Total long-term	6,294		6,088
Total regulatory assets	$	7,519	$	7,097

(in millions) March 31,
2019 December 31,
2018
Current:
Regulatory balancing accounts $ 935
$ 814
Power contracts
333
305
Other 18
14
Total current 1,286
1,133
Long-term:
Deferred income taxes, net of liabilities 3,683
3,589
Pensions and other postretirement benefits 274
271
Power contracts
597
700
Unamortized investments, net of accumulated amortization 117
118
Unamortized loss on reacquired debt 150
153
Regulatory balancing accounts 232
360
Environmental remediation
135
134
Other 80
55
Total long-term 5,268
5,380
Total regulatory assets $ 6,554
$ 6,513

Regulatory Liabilities

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



(in millions)	March 31, 2020		December 31, 2019
Current:
Regulatory balancing and memorandum accounts	$	749	$	883
Energy derivatives	3		80
Other	12		9
Total current	764		972
Long-term:
Cost of removal	2,670		2,674
Re-measurement of deferred taxes	2,388		2,424
Recoveries in excess of ARO liabilities¹	1,245		1,569
Regulatory balancing and memorandum accounts	1,356		1,261
Other postretirement benefits	420		416
Other	34		41
Total long-term	8,113		8,385
Total regulatory liabilities	$	8,877	$	9,357

(in millions) March 31,
2019 December 31,
2018
Current:
Regulatory balancing accounts $ 836
$ 1,080
Energy derivatives 100
158
2018 GRC 341
274
Other 18
20
Total current 1,295
1,532
Long-term:
Cost of removal 2,808
2,769
Re-measurement of deferred taxes¹
2,650
2,776
Recoveries in excess of ARO liabilities²
1,357
1,130
Regulatory balancing accounts 1,428
1,344
Other postretirement benefits 189
185
Other 156
125
Total long-term 8,588
8,329
Total regulatory liabilities $ 9,883
$ 9,861


¹	SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first quarter of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8.

Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.

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, 2020			December 31, 2019
Asset (liability)
Energy resource recovery account	$	(120	)	$	(23	)
Portfolio allocation balancing account	599			537
New system generation balancing account	75			85
Public purpose programs and energy efficiency programs	(1,330		)	(1,235		)
Tax accounting memorandum account and pole loading balancing account	(7		)	17
Base revenue requirement balancing account	101			(328		)
DOE litigation memorandum account	(35		)	(35		)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(234		)	(196		)
FERC balancing accounts	(58		)	(127		)
Wildfire-related memorandum accounts¹	947			868
Other	79			72
Asset (liability)	$	17		$	(365	)

(in millions) March 31,
2019 December 31,
2018
Asset (liability)
Energy resource recovery account $ 927
$ 815
New system generation balancing account (96 ) (74 )
Public purpose programs and energy efficiency programs (1,304 ) (1,200 )
Tax accounting memorandum account and pole loading balancing account (128 ) 28
Base revenue requirement balancing account¹
(282 ) (628 )
DOE litigation memorandum account (69 ) (69 )
Greenhouse gas auction revenue and low carbon fuel standard revenue (150 ) (81 )
FERC balancing accounts (139 ) (180 )
Catastrophic event memorandum account
95
144
Wildfire expense memorandum account

41
128
Other 8
(133 )
Liability $ (1,097 ) $ (1,250 )

The ~~base revenue requirement balancing account at March 31, 2019 includes~~wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery ~~of $107 million of premiums~~from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") is used to track costs related to ~~a 12-month, $300 million~~fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Catastrophic Event Memorandum Account ("CEMA") is used to track costs related to restoring service and damage repair, upon declaration of disasters by state or federal authorities. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance ~~policy purchased~~costs and uninsured wildfire-related financing, legal and claims costs. During 2019, the CPUC approved a Wildfire Mitigation Plan memorandum account to track costs incurred to implement SCE's Wildfire Mitigation Plan that are not currently reflected in ~~December 2017. See Note 12~~SCE's revenue requirements, a Grid Safety and Resiliency Program Memorandum Account ("GSRPMA") to track the costs of SCE's GS&RP that are incremental to costs approved for ~~further discussion.~~recovery in SCE's 2018 GRC and a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to the amount in SCE's any other revenue requirement.

Note 12. Commitments and Contingencies

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business.

Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets ~~sold.~~sold or other contractual arrangements. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

SCE has agreed to indemnify the City of Redlands, California in connection with the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. As of March 31, 2019, there has been no groundwater contamination identified. Thus, SCE has not recorded a liability related to this indemnity.

Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows.

Southern California Wildfires and Mudslides

~~Approximately 35% of SCE's service territory is in areas identified as high fire risk by SCE.~~ Multiple factors have contributed to increased ~~wildfires,~~wildfire activity, and faster progression of ~~wildfires~~ and ~~the~~ increased damage from wildfires across SCE's service territory and throughout California. These include the buildup of dry vegetation in areas severely impacted by years of historic drought, lack of adequate clearing of hazardous fuels by responsible parties, higher temperatures, lower humidity, and strong Santa Ana winds. At the same time that wildfire risk has been increasing in Southern California, residential and commercial development has occurred and is occurring in some of the highest-risk areas. Such factors can increase the likelihood and extent of wildfires. SCE has determined that approximately 27% of its service territory is in areas identified as high fire risk.

~~In December 2017 and November 2018,~~Over the past several years, wind-driven wildfires impacted portions of SCE's service territory, with wildfires in December 2017 and November 2018 causing loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. The investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). While the progression of these two fires remains under review, the December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE, ~~information,~~ the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in ~~two~~2 confirmed fatalities. The largest of the November 2018 fires, known as the ~~Woolsey Fire,~~"Woolsey Fire", originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE, ~~information,~~ the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in ~~three~~3 confirmed fatalities. NaN additional fatalities have been associated with the Woolsey Fire.

As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by mudslides and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with ~~two~~2 additional fatalities presumed.

In 2019, several wind-driven wildfires, including the "Saddle Ridge Fire," originated in Southern California (the "2019 Fires"). Based on currently available information and without considering insurance recoveries, it is reasonably possible that SCE will incur a material loss in connection with the Saddle Ridge Fire, but the range of possible losses that could be incurred cannot be estimated at this time. Edison International and SCE expect that any losses incurred will be covered by insurance, subject to a self-insured retention and co-insurance, and that the amount of any such loss after insurance recoveries will not be material. After expected insurance recoveries, SCE does not expect any of the 2019 Fires to have a material adverse effect on its financial condition, results of operations or cash flows. SCE has not recorded a charge for potential liabilities relating to the Saddle Ridge Fire because, based on currently available information, it has not determined that a loss is probable.

Liability Overview

The extent of liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether ~~SCE~~the utility substantially caused or contributed to the damages and whether parties seeking recovery of damages will be

required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and state laws in connection with the ignition of a wildfire.

Final determinations of liability for the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (each a "2017/2018 Wildfire/Mudslide Event," and, collectively, the "2017/2018 Wildfire/Mudslide Events"), including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes. Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future

settlement of disputed claims, may require a liability to be accrued under accounting standards. Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the 2017/2018 Wildfire/Mudslide ~~Events and accrued a liability~~Events.

As of ~~$4.7 billion in the fourth quarter of 2018. In the fourth quarter of 2018,~~March 31, 2020, Edison International and SCE ~~also recorded~~have estimated liabilities of $4.5 billion, remaining expected recoveries from insurance of ~~$2.0~~$1.7 billion and ~~expected recoveries~~ through FERC electric rates of ~~$135 million.~~$113 million on their consolidated balance sheets related to the 2017/2018 Wildfire/Mudslide Events. The ~~net charge to earnings recorded in the fourth quarter of 2018 was $1.8 billion after-tax. The~~accrued liability ~~that was accrued~~ corresponds to the lower end of the reasonably estimated range of expected potential losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE will seek to offset any actual losses realized with recoveries from insurance policies in place at the time of the events and, to the extent actual losses exceed insurance, through electric rates. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not reasonably or prudently incurred. See ~~"—Loss~~"Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" below for additional information.

External Investigations and Internal Review

The VCFD and CAL FIRE have jointly issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The reports did not address the causes of the Montecito Mudslides. SCE has also received a non-final redacted draft of a report from the VCFD regarding Woolsey Fire (the "Redacted Woolsey Report"). SCE received the Redacted Woolsey Report subject to a protective order in the litigation related to the Woolsey fire and, other than the information disclosed in this Form 10-Q, is not authorized to release the report or its contents to the public at this time. Based on a filing made by Ventura County in the Woolsey Fire litigation, SCE previously anticipated that the VCFD would release the final non-redacted report from the VCFD regarding the Woolsey Fire on or about April 1, 2020. SCE is currently uncertain as to when the final non-redacted report will be released. The VCFD and CAL FIRE findings do not determine legal causation of or assign legal liability for the Thomas, Koenigstein or ~~Koenigstein~~Woolsey Fires; final determinations of legal causation and liability would only be made during lengthy and complex litigation. The reports did not address the causes of the Montecito Mudslides. SCE expects that the VCFD and CAL FIRE will ultimately also issue a report concerning the departments' findings of origin and cause of the Woolsey Fire but cannot predict when this report will be released.

The CPUC's Safety and Enforcement Division ("SED") is also conducting investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the ~~fires.~~Thomas, Koenigstein and Woolsey Fires. SCE cannot predict when the SED's investigations will be completed.

Edison International and SCE understand that the California Attorney General's Office has completed its investigation of the Thomas Fire without pursuing criminal charges. Edison International and SCE are aware of an ongoing investigation by the California Attorney General's Office of the Woolsey Fire for the purpose of determining whether any criminal violations have occurred. SCE could be subject to material fines, penalties, or restitution if it is determined that it failed to comply with applicable laws and regulations. SCE is not aware of any basis for felony liability with regards to the Thomas Fire, the Koenigstein Fire or the Woolsey Fire.

SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes.

Thomas Fire

On March 13, 2019, the VCFD and CAL FIRE jointly issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that their investigation found molten metal ~~was found~~ on the ~~ground in that location during their investigation.~~ground. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the progression of the Thomas Fire and the extent of damages that may be attributable to that fire.

Koenigstein Fire

On March 20, 2019, the VCFD and CAL FIRE jointly issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. ~~SCE has~~As previously disclosed, ~~that~~ SCE ~~believed~~believes that its equipment was associated with the ignition of the

Koenigstein Fire. SCE is continuing to assess the progression of the Koenigstein Fire and the extent of damages that may be attributable to that fire.

Montecito Mudslides

SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, could have proximately caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides.

At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused or contributed to by the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides.

Woolsey Fire

SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outageon SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage. ~~Whether~~

The Redacted Woolsey Report states that the ~~November 8, 2018 outage~~VCFD investigation team determined that electrical equipment owned and operated by SCE was ~~related to contact being made between~~ the ~~support wire and~~cause of the ~~electrical wire has not been determined.~~Woolsey Fire. Absent additional evidence, SCE believes that it is likely that its equipment ~~could be found to have been~~was associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE.

Wildfire-related Litigation

Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been ~~filed.~~filed by three categories of plaintiffs: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties in the case of the Thomas and Koenigstein Fires and the Montecito Mudslides, and in Ventura and Los Angeles Counties in the case of the Woolsey Fire, allege, among other things, negligence, inverse condemnation, trespass, private nuisance, personal injury, wrongful death, and violations of the California Public Utilities and Health and Safety Codes. SCE expects to be the subject of additional lawsuits related to the 2017/2018 Wildfire/Mudslide Events. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs.

The Thomas and Koenigstein Fires and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been coordinated in the Los Angeles Superior Court. On October 4, 2018, the Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In January 2019, SCE filed a cross-complaint against certain ~~governmental~~local public entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. These cross-claims in the Montecito Mudslides litigation were not released as part of the Local Public Entity Settlements (as defined below).

Additionally, in ~~July 2018 and~~ September 2018, ~~two separate~~a derivative ~~lawsuits~~lawsuit for breach of fiduciary duties and unjust enrichment ~~were~~was filed in the Los Angeles Superior Court against certain current and former members of the Boards of Directors of Edison International and SCE. Edison International and SCE are identified as nominal defendants in ~~those actions.~~the action. The derivative ~~lawsuits~~lawsuit generally ~~allege~~alleges that the individual defendants violated their fiduciary duties by causing or allowing SCE to operate in an unsafe manner in violation of relevant regulations, resulting in substantial liability and damage from the Thomas and Koenigstein Fires and the Montecito Mudslides. The lawsuit is currently stayed.

In November 2018, a purported class action lawsuit alleging securities fraud and related claims was filed in ~~the~~ federal court against ~~EIX,~~Edison International, SCE and certain current and former officers of Edison International and SCE. The plaintiff alleges that Edison International and SCE made false and/or misleading statements in filings with the Securities and Exchange Commission by failing to disclose that SCE had allegedly failed to maintain its electric transmission and distribution networks in compliance with safety regulations, and that those alleged safety violations led to fires that occurred in 2017 and 2018, including the Thomas Fire and the Woolsey Fire.

In January 2019, ~~two~~2 separate derivative lawsuits alleging breach of fiduciary duties, securities fraud, misleading proxy statements, unjust enrichment, and related claims were filed in federal court against ~~all~~certain current and ~~certain~~ former members of the Boards of Directors and certain current and former officers of Edison International and SCE. Edison International and SCE are named as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants breached their fiduciary duties and made misleading statements or allowed misleading statements to be made (i) between March 21, 2014 and August 10, 2015, with respect to certain ex parte communications between SCE and CPUC decision-makers concerning the settlement of the San Onofre Order Instituting Investigation proceeding (the "San Onofre OII") and (ii) from February 23, 2016 to the present, concerning compliance with applicable laws and regulations concerning electric system maintenance and operations related to wildfire risks. The lawsuits generally allege that these breaches of duty and misstatements led to substantial liability and damage resulting from the disclosure of SCE's ex parte communications in connection with the San Onofre OII settlement, and from the 2017/2018 Wildfire/Mudslide Events. ~~For more information regarding~~

In the ~~San Onofre OII, see Note 12 in~~fourth quarter of 2019, SCE paid $360 million to a number of local public entities to resolve those parties' collective claims arising from the 2017/2018 ~~Form 10-K.~~Wildfire/Mudslide Events (the "Local Public Entity Settlements").

Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates

At both March 31, 2020 and December 31, 2019, Edison International's and SCE's balance sheets include accrued liabilities (established at the lower end of the reasonably estimated range of expected losses) of $4.5 billion for the 2017/2018 Wildfire/Mudslide Events. In total, SCE has accrued estimated losses of $4.9 billion and paid $360 million in settlements and recovered $348 million from its insurance carriers through March 31, 2020 in relation to the 2017/2018 Wildfire/Mudslide Events.

Each reporting period, management reviews its loss estimates for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. The process for estimating losses associated with wildfire litigation claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including, but not limited toto: estimates of known and expected claims by third parties based on currently available information, ~~and assessments,~~ opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, and prior experience ~~with~~ litigating and settling ~~other~~ wildfire ~~cases.~~litigation claims. As additional information becomes available, ~~management~~management's estimates and assumptions regarding the causes and financial impact of the 2017/2018 Wildfire/Mudslide Events may ~~change.~~change further. Such additional information is expected to become available from multiple external sources during the course of litigation and settlement discussions and from SCE's ongoing internal review, including, among other things, information regarding the extent of damages that may be attributable to any fire determined to have been substantially caused by SCE's equipment, information that may be obtained from the equipment in CAL FIRE's possession, and information pertaining to fire progression, suppression activities, damages alleged ~~damages~~by plaintiffs and insurance ~~claims.~~claims made by third parties.

As described above, the ~~$1.8 billion after-tax~~accrued liability as of March 31, 2020 corresponds to the lower end of the reasonably estimated range of expected losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE currently believe that it is reasonably possible that the amount of the actual loss will be greater than the amount accrued. However, Edison International and SCE are currently unable to reasonably estimate an upper end of the range of expected losses given the uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge, whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the preliminary nature of the litigation processes.

For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE ~~has $1~~had $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. SCE also had other general liability insurance coverage of approximately $450 million, but it is uncertain whether these other policies would apply to liabilities alleged to be related to the Montecito Mudslides. For the Woolsey Fire, SCE ~~has~~had an additional $1$1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. ~~At March 31, 2019, Edison International and SCE had recorded $2.0 billion for~~The following table presents changes in expected insurance recoveries associated with the ~~recorded loss~~estimated losses for the 2017/2018 Wildfire/Mudslide ~~Events.~~ Events since December 31, 2019:



(in millions)
Balance at December 31, 2019	$	1,710
Insurance recoveries¹	(58		)
Balance at March 31, 2020	$	1,652

¹Additional insurance recoveries of $15 million were received in April 2020.

SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. ~~The amount of the receivable is subject to change based on additional information.~~ Recovery of these costs is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire-related costs is SDG&E's requests for cost recovery related to 2007 wildfire activity, where the FERC allowed recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that SDG&E did not meet the CPUC's prudency standard. As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in future wildfire cost-recovery ~~proceedings.~~proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including ~~guidance that may be issued by the Commission on Catastrophic Wildfire Cost and Recovery, and new~~ judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a

conclusion that recovery is probable. SCE will seek recovery of the CPUC portion of any uninsured wildfire-related costs through its ~~WEMA.~~WEMA or its CEMA. In July 2019, SCE filed a CEMA application with the CPUC to seek recovery of, among other things, approximately $6 million in costs incurred to restore service to customers and to repair, replace and restore buildings and SCE's facilities damaged or destroyed as a result of the Thomas and Koenigstein Fires. SCE continues to incur costs for reconstructing its system and restoring service to structures that were damaged or destroyed by these two fires and plans to file additional applications with the CPUC to recover such costs. See ~~"—Recovery~~"Recovery of Wildfire-Related Costs" below.

Through the operation of its FERC Formula Rate, and based upon the precedent established in SDG&E's recovery of FERC-jurisdictional wildfire-related costs, SCE believes it is probable it will recover its FERC-jurisdictional wildfire and mudslide related costs and ~~has~~ recorded atotal regulatory ~~asset~~assets of ~~$135~~$149 million within the FERC balancing account. This was the FERC portion of the ~~$4.7 billion liability~~estimated losses accrued.

At As of March 31, ~~2019 and December 31, 2018,~~2020, collections have reduced the ~~balance sheets include estimated losses (established at~~amount remaining in the ~~lower end of the reasonably estimated range of expected losses) of $4.7 billion for the 2017/2018 Wildfire/Mudslide Events.~~FERC balancing account to $113 million.

Current Wildfire Insurance Coverage

SCE has approximately $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence, for events (including the Woolsey fire) during the period June 30, 2018 through May 31, 2019. If the $1 billion of insurance coverage is exhausted as a result of liabilities related to the Woolsey Fire, SCE has approximately $735 million of wildfire-specific insurance coverage for wildfire events during the period February 1, 2019 through May 31, 2019, subject to a self-insured retention of $35 million per occurrence and up to $15 million of co-insurance, which results in net coverage of approximately $685 million. SCE has also obtained approximately $1.2 billion of wildfire-specific insurance coverage for events that may occur during the period June 1, 2019 through June 30, 2020, subject to up to $115 million of co-insurance and $50 million of self-insured retention, which results in net coverage of approximately $1$1.0 billion. SCE expects its coverage for this period to be subject to an initial self-insured retention of $10 million per occurrence, but, based on policies currently in place, SCE's coverage for the period is subject to a self-insurance retention of $50 million per occurrence. SCE may obtain additional wildfire-specific insurance for this time period in the future. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in additional material self-insured costs in the event of multiple wildfire occurrences during a policy period or with a single wildfire with damages in excess of the policy limits.

SCE is in the process of procuring wildfire-specific insurance coverage for the period that will begin on July 1, 2020. SCE's cost of obtaining wildfire insurance coverage has increased significantly as a result of, among other things, the number of recent and significant wildfire events throughout California and the application of inverse condemnation to investor-owned utilities. In addition, disruptions in the insurance or capital markets, resulting from COVID-19 or other causes, could result in

reduced insurance and reinsurance capacity, or constrain insurance companies from offering Edison International and/or SCE acceptable premiums and/or limits. As such, while SCE is required to maintain reasonable insurance coverage under AB 1054, SCE may not be able to obtain ~~sufficient~~a reasonable amount of wildfire insurance, at a reasonable ~~cost.~~cost, for the next policy period or future policy periods.

Based on policies currently in effect, SCE anticipates that its wildfire insurance expense, prior to any regulatory deferrals, will total approximately $399 million during 2019. Wildfire insurance expense will increase in 2019 if SCE obtains additional wildfire-specific insurance. In February 2019, the CPUC approved recovery of $107 million of the costs incurred by SCE to obtain a 12-month, $300 million wildfire insurance policy in December 2017. As a result of this decision, SCE will recover these insurance premiums during 2019. As of March 31, ~~2019,~~2020, SCE had regulatory assets of ~~$148~~approximately $375 million related to wildfire insurance costs and believes that such amounts are probable of recovery. While SCE believes that amounts deferred are probable of recovery, there is no assurance that SCE will be allowed to recover costs that have been incurred, or costs incurred in the future for additional wildfire insurance, in electric rates.

SCE tracks insurance premium costs related to wildfire liability insurance policies as well as other wildfire-related costs in its WEMA. In July 2019, SCE filed a WEMA application with the CPUC to seek recovery of $478 million in wildfire insurance premium costs that have been incurred or will be incurred before July 1, 2020, in excess of premiums approved in the 2018 GRC. The application also seeks recovery of the corresponding financing costs.

Recovery of Wildfire-Related Costs

Pre-AB 1054 Cost Recovery

California courts have previously found investor-owned utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property damages resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement through recovery of uninsured wildfire-related costs in electric rates. However, in November 2017, the CPUC issued a decision denying SDG&E's request to include in its rates uninsured wildfire-related costs arising from several 2007 wildfires, finding that SDG&E did not meet the prudency standard because it did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In July 2018, the CPUC denied both SDG&E's application for rehearing on its cost recovery request and a joint application for rehearing filed by SCE and PG&E limited to the applicability of inverse condemnation principles in the same proceeding. The California Court of Appeal, the California Supreme Court and the ~~California~~United States Supreme Court have denied SDG&E's petitions for review of the CPUC's denial of SDG&E's application.

In September 2018, California Senate Bill 901 ("SB 901") was signed by the Governor of California. Although SB 901 does not address the strict liability standard imposed by courts in inverse condemnation actions, the bill as enacted introduces a number of considerations the CPUC can apply to determine whether costs are recoverable in electric rates for wildfires occurring on or after January 1, 2019, including, among other things, the utility's actions, circumstances beyond the utility's control and the impact of extreme climate conditions. SB 901 requires investor-owned utilities to prepare annually, for CPUC approval, wildfire risk mitigation plans, and compliance with an approved plan is one of the factors that the CPUC can consider in addressing cost recovery. On February 6, 2019, in compliance with SB 901, SCE filed its wildfire mitigation plan

for 2019. While SCE takes the position in its wildfire mitigation plan that substantial compliance with the plan, once approved, will demonstrate that SCE prudently operated its system and met the CPUC's prudent manager standard regarding wildfire risk mitigation, the CPUC may not agree with SCE's position. Pursuant to the requirements of SB 901, a Commission on Catastrophic Wildfire Cost and Recovery was formed in January 2019 to examine, among other things, the socialization of catastrophic wildfire costs in an equitable manner. SB901 also provides an opportunity for utilities to securitize costs that are deemed just and reasonable by the CPUC for wildfires that occur after January 1, 2019 and, to the extent costs exceed the maximum amount the utility can pay without harming ratepayers or materially impacting the utility's ability to provide adequate and safe services, for wildfires that occurred in 2017. Based on events and information available to date, SCE believes it is unlikely that it will seek to use this mechanism to securitize costs incurred in connection with the 2017/2018 Wildfire/Mudslide Events.

Edison International and SCE continue to pursue ~~legislative,~~ regulatory and legal strategies, and anticipate pursuing legislative strategies in the longer term, to address the application of a strict liability standard to wildfire-related property damages without the guaranteed ability to recover resulting costs in electric rates.

2019 Wildfire Legislation

In ~~April~~July 2019, a strike force formed by California Governor Gavin Newsom released a report entitled Wildfires and Climate Change: California's Energy Future that sets forth, among other things, guiding principles for potential reform of California policies regarding wildfire liability. While this report recommended that the Commission on Catastrophic Wildfire Cost and Recovery, the California legislature and the strike force continue working to develop a solution for considerationAB 1054 was signed by the Governor of California and became effective immediately. The summary of the ~~legislature,~~wildfire legislation below is based on SCE's interpretation of AB 1054. A lawsuit challenging the validity of AB 1054 was filed in federal court on July 19, 2019. Edison International and SCE ~~cannot~~are unable to predict ~~whether~~the outcome of this lawsuit.

Wildfire Insurance Fund

AB 1054 provided for the Wildfire Insurance Fund to reimburse utilities for payment of third-party damage claims arising from certain wildfires that exceed, in aggregate in a calendar year, the greater of $1.0 billion or the utility's insurance coverage. The Wildfire Insurance Fund was established in September 2019 when ~~there~~both SCE and SDG&E made their initial contributions to the fund. The Wildfire Insurance Fund is available for claims related to wildfires ignited after July 12, 2019 that are determined to have been caused by a utility by the responsible government investigatory agency.

SCE and SDG&E have collectively made their initial contributions totaling approximately $2.7 billion to the Wildfire Insurance Fund. While PG&E has committed to make an initial contribution of approximately $4.8 billion to the Wildfire Insurance Fund upon emergence from bankruptcy, its participation in, and contributions to, the fund are subject to it resolving its bankruptcy proceeding and meeting certain other conditions prior to June 30, 2020. SCE and SDG&E are also collectively expected to make aggregate contributions of approximately $1.1 billion to the Wildfire Insurance Fund through annual contributions to the fund over a 10-year period, of which SCE and SDG&E have made their initial annual contributions totaling approximately $107 million. If PG&E participates in the Wildfire Insurance Fund, it is expected to make aggregate contributions of approximately $1.9 billion to the fund through annual contributions over the same 10-year period. In addition to PG&E's, SCE's and SDG&E's contributions to the Wildfire Insurance Fund, PG&E, SCE and SDG&E are expected to collect $6.1 billion, $6.1 billion and $1.3 billion, respectively, from their ratepayers over a 15-year period through a dedicated rate component. Based on a decision adopted by the CPUC in October 2019 in the Order Instituting Rulemaking

to Consider Authorization of a Non-Bypassable Charge to Support the Wildfire Insurance Fund, PG&E's ratepayers will not be required to contribute to the fund if PG&E does not participate in the Wildfire Insurance Fund. The amount collected from ratepayers may be directly contributed to the Wildfire Insurance Fund or used to support the issuance of up to $10.5 billion in bonds by the California Department of Water Resources, the proceeds of which would be contributed to the fund. In addition to funding contributions to the Wildfire Insurance Fund, the amount collected from utility ratepayers will pay for, among other things, any interest and financing costs related to any bonds that are issued by the California Department of Water Resources to support the contributions to the Wildfire Insurance Fund.

SCE made an initial contribution of approximately $2.4 billion to the Wildfire Insurance Fund in September 2019 and has committed to make ten annual contributions of approximately $95 million per year to the fund, by no later than January 1 of each year. SCE made its first annual contribution to the Wildfire Insurance Fund in December 2019. Edison International supported SCE's initial contribution to the Wildfire Insurance Fund by raising $1.2 billion from the issuance of Edison International equity. SCE raised the remaining $1.2 billion from the issuance of long-term debt. SCE's contributions to the Wildfire Insurance Fund will not be recoverable through electric rates and will be ~~a comprehensive solution mitigating~~excluded from the ~~significant risk faced by California~~measurement of SCE's CPUC-jurisdictional authorized capital structure. SCE will also not be entitled to cost recovery for any borrowing costs incurred in connection with its contributions to the Wildfire Insurance Fund.

Participating investor-owned utilities will be reimbursed from the Wildfire Insurance Fund for eligible claims, subject to the fund administrator's review. SCE will reimburse the fund for any withdrawn amounts if SCE receives payment of such amounts under an indemnification agreement or from an insurance provider or other third-party. SCE will also be required to reimburse the fund for withdrawn amounts that the CPUC disallows, subject, in some instances, to the AB 1054 Liability Cap (as defined below). If the utility has maintained a valid safety certification and its actions or inactions that resulted in the wildfire are not found to constitute conscious or willful disregard of the rights and safety of others, the aggregate requirement to reimburse the fund over a trailing three calendar year period is capped at 20% of the equity portion of the utility's transmission and distribution rate base in the year of the prudency determination ("AB 1054 Liability Cap"). Based on SCE's 2020 rate base and assuming the equity portion of SCE's capital structure is 52% (SCE's CPUC authorized capital structure), SCE's requirement to reimburse the Wildfire Insurance Fund for eligible claims disallowed in 2020 would be capped at approximately $3.0 billion.

SCE will not be allowed to recover borrowing costs incurred to reimburse the fund for amounts that the CPUC disallows. The Wildfire Insurance Fund, and consequently the AB 1054 Liability Cap, will terminate when the administrator determines that the fund has been exhausted.

AB 1054 Prudency Standard

As a result of the establishment of the Wildfire Insurance Fund, AB 1054 created a new standard that the CPUC must apply when assessing the prudency of a utility in connection with a request for recovery of wildfire costs for wildfires ignited after July 12, 2019. Under AB 1054, the CPUC is required to find a utility to be prudent if the utility's conduct related to ~~wildfires.~~

~~In April 2019,~~the ignition was consistent with actions that a reasonable utility would have undertaken under similar circumstances, at the relevant point in ~~addition~~time, and based on the information available at that time. Prudent conduct under the AB 1054 standard is not limited to ~~other requested increases~~the optimum practice, method, or act to ~~its CPUC~~the exclusion of others, but rather encompasses a spectrum of possible practices, methods, or acts consistent with utility system needs, the interest of the ratepayers, and ~~FERC returns on common equity, SCE requested from both~~the requirements of governmental agencies. AB 1054 also provides that the CPUC may determine that wildfire costs may be recoverable, in whole or in part, by taking into account factors within and ~~FERC an additional 6% return on common equity~~outside the utility's control, including humidity, temperature, and winds. Further, utilities with a valid safety certification will be presumed to ~~compensate investors for current~~have acted prudently related to a wildfire ~~risk. SCE would seek to reduce or remove this additional return on common equity if there is~~ignition unless a ~~material reduction~~party in ~~its wildfire~~the cost recovery proceeding creates serious doubt as to the reasonableness of the utility's conduct, at which time, the burden shifts back to the utility to prove its conduct was reasonable. If a utility does not have a valid safety certification, it will have the burden to prove, based on a preponderance of evidence, that its conduct was prudent. The new prudency standard will survive the termination of the Wildfire Insurance Fund.

Utilities participating in the Wildfire Insurance Fund are not required to reimburse the fund for amounts withdrawn from the fund that the CPUC finds were prudently incurred and can recover such prudently incurred wildfire costs through electric rates if the fund has been exhausted.

Capital Expenditure Requirement

Under AB 1054, approximately $1.6 billion of spending by SCE on wildfire risk ~~due~~mitigation capital expenditures made after August 1, 2019, cannot be included in the equity portion of SCE's rate base ("AB 1054 Excluded Capital Expenditures"). SCE can apply for an irrevocable order from the CPUC to ~~regulatory or legislative reform.~~finance these AB 1054 Excluded Capital Expenditures, including through the issuance of securitized bonds, and can recover any prudently incurred financing costs. SCE expects to finance

this capital requirement by issuing securitized bonds. As of March 31, 2020, SCE has spent $601 million on AB 1054 Excluded Capital Expenditures.

Wildfire Mitigation Plan and Safety Certification

Under AB 1054, SCE is required to submit a wildfire mitigation plan to the CPUC annually for review and approval. Beginning in 2020, each such plan is required to cover at least a three-year period. SCE filed its 2020 Wildfire Mitigation Plan in February 2020.

Under AB 1054, SCE can obtain an annual safety certification upon the submission of certain required safety information, including an approved wildfire mitigation plan. On July 25, 2019, SCE obtained its initial safety certification that will be valid for twelve months. Notwithstanding its twelve month term, if SCE requests a new safety certification prior to the expiration of its initial safety certification, then its initial safety certification will remain valid until the CPUC acts on its request for a new safety certification.

Environmental Remediation

SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring, and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At March 31, ~~2019,~~2020, SCE's recorded estimated minimum liability to remediate its 2123 identified material sites (sites with a liability balance at March 31, ~~2019,~~2020, in which the upper end of the range of the costs is at least $1 million) was ~~$136~~$241 million, including ~~$89~~$176 million related to San Onofre. In addition to these sites, SCE also has 1514 immaterial sites with a liability balance as of March 31, ~~2019,~~2020, for which the total minimum recorded liability was $4$3 million. Of the ~~$140~~$244 million total environmental remediation liability for SCE, ~~$135~~$235 million has been recorded as a regulatory asset. SCE expects to recover ~~$43~~$40 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and ~~$92~~$195 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to ~~$138~~$109 million and $7$8 million, respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for each of the next five years are expected to range from $7 million to ~~$24~~$18 million. Costs incurred for both the three months ended March 31, ~~2019~~2020 and ~~2018~~2019 were $2 ~~million and $4 million, respectively.~~

million.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position, or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

Nuclear Insurance

SCE is a member of ~~NEIL,~~Nuclear Electric Insurance Limited ("NEIL"), a mutual insurance company owned by entities with nuclear facilities. NEIL provides insurance for nuclear property damage, including damages caused by acts of terrorism up to specified limits, and for accidental outages for active facilities. The amount of nuclear property damage insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $50 million and ~~$1.06~~$1.1 billion, respectively. If

NEIL losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year.

Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately ~~$14.1~~$13.9 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available through a Facility Form issued by American Nuclear ~~Insurers ("ANI").~~Insurers. SCE withdrew from participation in the secondary insurance pool for San Onofre for offsite liability insurance effective January 5, 2018. Based on its ownership interests in Palo Verde, SCE could be required to pay a maximum of approximately $65 million per nuclear incident for future incidents. However, it would have to pay no more than approximately $10 million per future incident in any one year. Based on its ownership interests in San Onofre and Palo Verde prior to January 5, 2018, SCE could be required to pay a maximum of approximately $255 million per nuclear incident and a maximum of $38 million per year per incident for liabilities arising from events prior to January 5, 2018, although SCE is not aware of any such events.

Spent Nuclear Fuel

Under federal law, the DOE is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period.

In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE's share $112 million) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. In April 2016, SCE, as operating agent, settled a lawsuit on behalf of the San Onofre owners against the DOE for $162 million (SCE's share $124 million, which included reimbursement for approximately $2 million in legal and other costs), to compensate for damages caused by the DOE's failure to meet its obligation to begin accepting spent nuclear fuel for the period from January 1, 2006 to December 31, 2013. In August 2018, the CPUC approved SCE's proposal to return the SCE share of the award to customers based on the amount that customers actually contributed for fuel storage costs; resulting in approximately ~~$105.6~~$106 million of the SCE share being returned to customers and the remaining ~~$16.6~~$17 million being returned to shareholders. Of the ~~$105.6~~$106 million, ~~$71.6~~$72 million was applied against the remaining San Onofre Regulatory Asset in accordance with the Revised San Onofre Settlement Agreement.

The April 2016 settlement also provided for a claim submission/audit process for expenses incurred from 2014 – 2016, where SCE may submit a claim for damages caused by the DOE failure to accept spent nuclear fuel each year, followed by a government audit and payment of the claim. This process made additional legal action to recover damages incurred in 2014 –2016 unnecessary. The first such claim covering damages for 2014 – 2015 was filed on September 30, 2016 for approximately $56 million. In February 2017, the DOE reviewed the 2014 – 2015 claim submission and reduced the original request to approximately $43 million (SCE's share was approximately $34 million). SCE accepted the DOE's determination, and the government paid the 2014 – 2015 claim under the terms of the settlement. In October 2017, SCE filed a claim covering damages for 2016 for approximately $58 million. In May 2018, the DOE approved reimbursement of approximately $45 million (SCE's share was approximately $35 million) of SCE's 2016 damages, disallowing recovery of approximately $13 million. SCE accepted the DOE's determination, and the government paid the 2016 claim under the terms of the settlement. The damages awards are subject to CPUC review as to how the amounts will be refunded among customers, shareholders, or to offset other costs.

In November 2019, SCE filed a new complaint against the DOE to recover damages incurred from January 1, 2017 through July 31, 2018.

Tehachapi Transmission Project

The Tehachapi Transmission Project consists of new and upgraded electric transmission lines and substations between eastern Kern County and San Bernardino County and was undertaken to bring renewable resources in Kern County to energy consumers in the Los Angeles basin and the California energy grid. The project consists of eleven segments. Segments 1-3 were placed in service beginning in 2009 through 2013. Segments 4-11 were placed in service in December 2016.

In December 2019, the CPUC filed a protest alleging that $419 million of costs associated with the Tehachapi Transmission Project are imprudent and should be disallowed from SCE's FERC rate base because these costs exceeded the maximum reasonable cost identified by the CPUC when it granted the project's certificate of public convenience and necessity. The CPUC requested that FERC set this issue for hearings.

Note 13. ~~Leases~~Equity

~~Leases as Lessee~~

In May 2019, Edison International filed a prospectus supplement and executed several distribution agreements with certain sales agents to establish an "at-the-market" ("ATM") program under which it may sell shares of its common stock having an aggregate sales price of up to $1.5 billion. During the quarter ended March 31, 2020, Edison International issued 0.4 million shares through the ATM program and received proceeds of $27 million, net of fees and offering expenses of $0.3 million. The proceeds from the sales were used for equity contributions to SCE ~~has entered into various agreements to purchase power, electric capacity~~ and ~~other energy products that may be accounted~~ for ~~as leases as SCE has dispatch rights that determine when~~general corporate and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are 5 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases.

~~The following table summarizes SCE's lease payments for operating and finance leases as~~working capital purposes. As of March 31, ~~2019.~~2020, shares of common stock having an aggregate offering price of $1.3 billion remained available to be sold under the ATM program. Edison International has no obligation to sell the remaining available shares.

(in millions)
PPA Operating Leases¹

Other Operating Leases²

PPA Finance Leases¹
2019 $ 118
$ 32
$ 1
2020 124
33
1
2021 103
27
1
2022 79
22
2
2023 47
17
2
Thereafter 536
101
9
Total lease payments $ 1,007
$ 232
$ 16
Amount representing interest³
249
62
6
Lease liabilities $ 758
$ 170
$ 10

~~At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:~~

(in millions)
PPA Operating Leases¹

Other Operating Leases²

PPA Capital Leases¹
2019 $ 148
$ 42
$ 5
2020 124
31
6
2021 103
27
6
2022 79
22
6
2023 47
17
5
Thereafter 536
101
66
Total lease payments $ 1,037
$ 240
$ 94
Amount representing executory costs (25 )
Amount representing interest (33 )
Net commitments⁴
$ 36


¹	~~Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.~~


²	~~Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.~~


³	~~Lease payments are discounted to their present value using SCE's incremental borrowing rates.~~


⁴	~~Includes two contracts with net commitments of $26 million that will commence in 2019.~~

~~Supplemental balance sheet information related~~Edison International continued to ~~SCE's leases was as follows:~~

(in millions) March 31, 2019
Operating leases:
Operating lease ROU assets $ 928
Current portion of operating lease liabilities 156
Operating lease liabilities 772
Total operating lease liabilities $ 928

Finance leases included in:
Utility property, plant and equipment, gross $ 14
Accumulated depreciation (4 )
Utility property, plant and equipment, net 10
Other current liabilities 1
Other long-term liabilities 9
Total finance lease liabilities $ 10

~~The timing~~settle its ongoing common stock requirements of ~~SCE's recognition~~various internal programs through issuance of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:

(in millions) Three months ended March 31, 2019
PPA leases:
Operating lease cost $ 30
Variable lease cost 372
Total PPA lease cost 402
Other operating leases cost 11
Total lease cost $ 413

~~Other information related to leases was as follows:~~

(in millions, except lease term and discount rate) Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases $ 30
Other leases 11

ROU assets obtained in exchange for lease obligations:
Other operating leases 9

Weighted average remaining lease term (in years):
Operating leases
PPA leases 12.85
Other leases 12.54
PPA Finance leases 12.14

Weighted average discount rate:
Operating leases
PPA leases 4.24 %
Other leases 3.85 %
PPA Finance leases 8.70 %

~~Leases as Lessor~~

~~SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years.~~new common stock. During the ~~three months~~quarter ended March 31, ~~2019,~~2020, 0.7 million shares of common stock were purchased by employees through the 401(k) defined contribution savings plan for net cash receipts of $46 million, 0.3 million shares of common stock were issued as stock compensation awards for net cash receipts of $13 million and 0.1 million shares of new common stock were issued in lieu of distributing $4 million to shareholders opting to receive dividend payments in the form of additional common stock.

In February 2020, SCE ~~recognized $5~~received a $269 million ~~in lease income, which is included in operating revenue on~~capital contribution from Edison International Parent to support SCE's capital program, maintain the ~~consolidated statements~~equity portion of ~~income. At March 31, 2019, the undiscounted cash flow expected to be received from lease payments~~SCE's capital structure at authorized levels and for ~~the remaining years is as follows:~~general corporate purposes.

(in millions)
2019 $ 11
2020 15
2021 10
2022 10
2023 9
Thereafter 141
Total $ 196

Note 14. Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss, net of tax, consist of:



	Edison International						SCE
	Three months ended March 31,
(in millions)	2020			2019			2020			2019
Beginning balance	$	(69	)	$	(50	)	$	(39	)	$	(23	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss¹	2			2			2			1
Other²	—			(10		)	—			(5		)
Change	2			(8		)	2			(4		)
Ending Balance	$	(67	)	$	(58	)	$	(37	)	$	(27	)

Edison International SCE
Three months ended March 31,
(in millions) 2019 2018 2019 2018
Beginning balance $ (50 ) $ (43 ) $ (23 ) $ (19 )
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss¹
2
2
1
2
Other²
(10 ) (5 ) (5 ) (5 )
Change (8 ) (3 ) (4 ) (3 )
Ending Balance $ (58 ) $ (46 ) $ (27 ) $ (22 )


¹	These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

Edison International and SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 ~~and 2018~~ related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax ~~Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.~~Reform.

Note 15. Other Income ~~and Expenses~~

Other income ~~and~~net of expenses ~~are~~is as follows:



	Three months ended March 31,
(in millions)	2020			2019
SCE other income (expense):
Equity allowance for funds used during construction	$	21		$	17
Increase in cash surrender value of life insurance policies and life insurance benefits	10			9
Interest income	9			9
Net periodic benefit income – non-service components	28			19
Civic, political and related activities and donations	(11		)	(13		)
Other	(5		)	(3		)
Total SCE other income	52			38
Other income (expense) of Edison International Parent and Other:
Net periodic benefit costs – non-service components	(1		)	(2		)
Other	1			2
Total Edison International other income	$	52		$	38

Three months ended March 31,
(in millions) 2019 2018
SCE other income and (expenses):
Equity allowance for funds used during construction $ 17
$ 22
Increase in cash surrender value of life insurance policies and life insurance benefits 9
8
Interest income 9
4
Net periodic benefit income – non-service components 19
26
Civic, political and related activities and donations (13 ) (4 )
Other (3 ) (5 )
Total SCE other income and (expenses) 38
51
Other income and (expenses) of Edison International Parent and Other:
Net periodic benefit costs – non-service components (2 ) —
Other 2
—
Total Edison International other income and (expenses) $ 38
$ 51

Note 16. Supplemental Cash Flows Information

Supplemental cash flows information ~~for continuing operations~~ is:



	Edison International				SCE
	Three months ended March 31,
(in millions)	2020		2019		2020		2019
Cash payments:
Interest, net of amounts capitalized	$	233	$	200	$	210	$	177
Income taxes, net	—		—		—		—
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	232		200		—		200
Preferred and preference stock	—		1		—		1

Edison International SCE
Three months ended March 31,
(in millions) 2019 2018 2019 2018
Cash payments for interest and taxes:
Interest, net of amounts capitalized $ 200
$ 164
$ 177
$ 149
Tax refunds, net —
(93 ) —
(18 )
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock $ 200
$ 197
$ 200
$ 212
Preferred and preference stock 1
1
1
1

SCE's accrued capital expenditures at March 31, 2020 and 2019 ~~and 2018~~ were ~~$392~~$451 million and ~~$399~~$392 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid.

Note 17. Related-Party Transactions

For the three months ended March 31, 2020, SCE did not purchase wildfire liability insurance from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International. For the three months ended March 31, 2019, SCE purchased wildfire liability insurance with premiums of $186 million from ~~Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International.~~EIS. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows:


	March 31,		December 31,
(in millions)	2019		2018		March 31, 2020		December 31, 2019
Long-term insurance receivable due from affiliate	$	1,000	$	1,000	$	803	$	803
Prepaid insurance¹	169		13		32		10
Current payables due to affiliate²	62		4


¹	Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.

¹~~Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.~~ The amortization expense for ~~prepaid~~wildfire-related insurance premiums paid to EIS was ~~$31~~$50 million and ~~$36~~$31 million for the three months ended March 31, 2020 and 2019, ~~and 2018,~~ respectively.

²~~Reflected in "Accounts payable" on SCE's consolidated balance sheets.~~

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Edison International and SCE, under the supervision and with the participation of Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers, have evaluated the effectiveness of Edison International's and SCE's disclosure controls and procedures (as that term is defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended), respectively, as of the end of the first quarter of ~~2019.~~2020. Based on that evaluation, Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers have each concluded that, as of the end of the period, Edison International's and SCE's disclosure controls and procedures, respectively, were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in Edison International's or SCE's internal control over financial reporting, respectively, during the first quarter of ~~2019~~2020 that have materially affected, or are reasonably likely to materially affect, Edison International's or SCE's internal control over financial reporting.

Jointly Owned Utility Plant

Edison International's and SCE's respective scope of evaluation of internal control over financial reporting includes their Jointly Owned Utility Projects as discussed in Notes to Consolidated Financial Statements—Note 2. Property, Plant and Equipment in the ~~2018~~2019 Form 10-K.

LEGAL PROCEEDINGS

Thomas Fire and Koenigstein Fire Litigation

In December 2017, wind-driven wildfires impacted portions of SCE's service territory, causing loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. The VCFD and CAL FIRE have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by the Koenigstein Fire. According to CAL FIRE, ~~information,~~ the Thomas and Koenigstein Fires burned over 280,000 acres, destroyed or damages an estimated 1,343 structures and resulted in two fatalities.

As of April ~~26, 2019,~~27, 2020, SCE was aware of at least ~~151~~330 lawsuits, representing approximately ~~2,300~~5,000 plaintiffs, related to the Thomas and Koenigstein Fires naming SCE as a defendant. ~~Seventy-eight~~One hundred and forty-three of these lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. At least four of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. The lawsuits have been coordinated in the Los Angeles Superior Court. Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Thomas Fire, Koenigstein Fire and Montecito Mudslides: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. An initial jury trial for a limited number of plaintiffs, sometimes referred to as a bellwether jury trial, on certain fire only matters previously scheduled for June 15, 2020 was vacated due to the wide-spread disruption being caused by the COVID-19 pandemic and is expected to be rescheduled after the courtrooms in the Los Angeles Superior Court open for non-essential functions. The judge assigned to the litigation has suggested that the revised date for the initial bellwether trial could be as early as August 24, 2020.

In November 2019, SCE and Edison International reached a settlement with certain local public entity plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation under which SCE paid those local public entity plaintiffs parties an aggregate of $150 million and, other than as set forth below, the plaintiffs released SCE and Edison International from all claims and potential claims in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation and/or related to or arising from the Thomas Fire, Koenigstein Fire or Montecito Mudslides. Certain of the local public entity plaintiffs will retain the right to pursue certain indemnity claims against SCE and Edison International. Edison International and SCE did not admit liability as part of the settlement.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Montecito Mudslides Litigation

In January 2018, torrential rains in Santa Barbara County produced mudslides and flooding in Montecito and surrounding areas. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in at least 21 fatalities, with two additional fatalities presumed.

~~Sixty-eight~~Eighty-one of the ~~151~~330 lawsuits mentioned under "Thomas Fire and Koenigstein Fire Litigation" above allege that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides, resulting in the plaintiffs' claimed damages. ~~Twenty-seven~~Forty of the 6881 Montecito Mudslides lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. In addition to other causes of action, some of the Montecito Mudslides lawsuits also allege personal injury and wrongful death. The Thomas and Koenigstein Fires lawsuits and the Montecito Mudslides lawsuits have been coordinated in the Los Angeles Superior Court. Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Thomas Fire, Koenigstein Fire and Montecito Mudslides: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. An initial jury trial for a limited number of plaintiffs, sometimes referred to as a bellwether jury trial, previously scheduled for October 12, 2020 was vacated due to the wide-spread disruption being caused by the COVID-19 pandemic and is expected to be rescheduled after the courtrooms in the Los Angeles Superior Court open for non-essential functions.

In November 2019, SCE and Edison International reached a settlement with certain local public entity plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation under which SCE paid those local public entity plaintiffs parties an aggregate of $150 million and, other than as set forth below, the plaintiffs released SCE and Edison International from all claims and potential claims in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation and/or related to or arising from the Thomas Fire, Koenigstein Fire or Montecito Mudslides. SCE and Edison International did not release their cross-claims against the public entity plaintiffs in the Montecito Mudslides litigation, and certain of the public entity plaintiffs will retain the right to pursue certain indemnity claims against SCE and Edison International. Edison International and SCE did not admit liability as part of the settlement.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Woolsey Fire Litigation

In November 2018, wind-driven wildfires impacted portions of SCE's service territory and caused substantial damage to both residential and business properties and service outages for SCE customers. The largest of these fires, known as the Woolsey Fire, originated in Ventura County and burned acreage located in both Ventura and Los Angeles Counties. According to CAL FIRE, ~~information,~~ the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three fatalities. Two additional fatalities have also been associated with the Woolsey Fire.

As of April ~~26, 2019,~~27, 2020, SCE was aware of at least 72226 lawsuits, representing approximately ~~1,100~~4,400 plaintiffs, related to the Woolsey Fire naming SCE as a defendant. ~~Fifty-eight~~One hundred and forty five of these lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. At least two of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura and Los Angeles Counties allege, among other things, negligence, inverse condemnation, personal injury, wrongful death, trespass, private nuisance, and violations of the public utilities and health and safety codes. The Woolsey Fire lawsuits have been coordinated in the Los Angeles Superior Court. Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Woolsey Fire: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs.

In November 2019, SCE and Edison International reached a settlement with certain local public entity plaintiffs in the Woolsey Fire litigation under which SCE paid the local public entity plaintiffs an aggregate of $210 million and those local public entity plaintiffs released SCE and Edison International from all claims and potential claims in the Woolsey Fire litigation and/or related to or arising from the Woolsey Fire. Edison International and SCE did not admit liability as part of the settlement.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~

Environmental Proceedings

SCE performed 1.6 miles of access road grading and vegetation clearing in the Mission Canyon area of Santa Barbara County in December 2019, resulting in debris moving downslope into a creek bed and other impacts in the area. Several state and federal environmental agencies and the County and City of Santa Barbara are investigating the unpermitted grading and discharges to the creek, and SCE has received Notices of Violation from the Army Corps of Engineers, the County of Santa Barbara, the California Department of Fish & Wildlife and the Regional Water Quality Control Board. It is presently unknown whether any of these agencies will impose fines on SCE and, if so, in what amounts. SCE does not expect any fines that are imposed to be material.

~~Purchases~~RISK FACTORS

Edison International's and SCE's financial condition and results of ~~Equity Securities~~operations could be materially impacted by events, like the COVID-19 pandemic, that cause significant disruption to economies, societies or workforces on a regional, statewide, national or global basis.

Edison International and ~~Affiliated Purchasers~~

SCE could be materially and adversely impacted by events, such as the widespread outbreak of a communicable disease, that result in, among other things, significant disruption to economies, societies or workforces on a regional, statewide, national or global basis. The ~~following table contains information about all purchases~~global spread of COVID-19, which was declared a pandemic by the World Health Organization in March 2020, has created significant uncertainty, volatility and disruption globally and has impacted the operations of Edison International ~~Common Stock made by or~~and SCE. The total impacts of the COVID-19 pandemic on ~~behalf of~~ Edison International and SCE are still emerging, and the extent to which the pandemic affects Edison International's and SCE's business, operations, cash flows, liquidity and financial results will depend on numerous evolving factors that Edison International and SCE are unable to accurately predict at this time, including, without limitation: the duration and scope of the pandemic; governmental, business and individual actions that have been and continue to be taken in response to the ~~first quarter~~pandemic; the impact of ~~2019.~~

Period
(a) Total
Number of Shares
(or Units)
Purchased¹

(b) Average
Price Paid per Share (or Unit)¹

(c) Total
Number of Shares
(or Units)
Purchased
as Part of
Publicly
Announced
Plans or
Programs

(d) Maximum
Number (or
Approximate
Dollar Value)
of Shares
(or Units) that May
Yet Be Purchased
Under the Plans or
Programs
January 1, 2019 to January 31, 2019 308,921
$ 56.51
— —
February 1, 2019 to February 28, 2019 211,617
$ 59.49
— —
March 1, 2019 to March 31, 2019 386,783
$ 62.56
— —
Total 907,321
$ 59.79
— —

¹~~The shares were purchased by agents acting~~the pandemic on economic activity; and the impact of the pandemic on Edison International's ~~behalf for delivery~~and SCE's employees, customers, contractors, insurers and service providers.

Many of the risks and uncertainties identified in the 2019 Form 10-K are, and will be, exacerbated by the impacts of the COVID-19 pandemic and the actions being taken by governmental entities, businesses, individuals and others in response to ~~plan participants~~the pandemic. Some examples follow. Similar to ~~fulfill requirements~~other companies in connection with Edison International's: (i) 401(k) Savings Plan; (ii) Dividend Reinvestment and Direct Stock Purchase Plan; and (iii) long-term incentive compensation plans. The shares were purchased in open-market transactions pursuant to plan terms or participant elections. The shares were never registered inCalifornia, a large portion of Edison International's ~~name~~ and ~~none~~SCE's workforce, including employees of their contractors, may be unable to perform their job functions effectively due to illness, family illness, quarantine requirements, social-distancing, telework requirements and other impacts of the ~~shares purchased were retired~~COVID-19 pandemic. In addition, as a result of actions being taken in response to the pandemic, SCE's supply chains are facing constraints and SCE is facing challenges from local permitting authorities. If a significant portion of SCE's workforce cannot effectively perform their job functions, SCE is unable to procure required materials, SCE does not timely obtain any required permits and/or local authorities prohibit SCE from conducting previously permitted work, SCE will likely be unable to effectively and timely complete planned work and projects, including its WMP and capital projects.

In addition, impacts of the COVID-19 pandemic on SCE's customers and third parties could also result in SCE facing, among other things, significant reductions in demand for electricity and payment delays and/or defaults from customers which could result in significant under-collections. Edison International and SCE could also face payment delays and/or defaults from insurers and other counter-parties. Furthermore, capital markets have been impacted by the pandemic and this has increased Edison International's and SCE's costs of accessing those markets. Edison International's and SCE's access to the bank and capital markets could also be constrained and/or the costs of accessing those markets could increase further as a result of the ~~transactions.~~pandemic, including if Edison International's and/or SCE's credit ratings are downgraded, or placed on negative watch due to concerns about Edison International and/or SCE's financial health as a result of the impacts of the pandemic. SCE may also incur significant incremental costs as a result of actions it is taking in response to the pandemic, including costs being incurred to maintain its operations and assist its employees who are required to telework or are otherwise impacted by the pandemic. SCE could also face delays in important regulatory proceedings. These impacts, among others, could materially and adversely impact Edison International's and SCE's business, operations, cash flows, liquidity and financial results.

~~OTHER INFORMATION~~

On April, 26, 2019, Edison International entered into a Term Loan Agreement ("Term Loan Agreement") and borrowed the maximum amount available under the Term Loan Agreement. The Term Loan Agreement provides for a $1.0 billion term loan due in April 2020, with a variable interest rate based on the London Interbank Offered Rate plus 90 basis points. The term loan may be prepaid in whole or in part without any premium or penalty. Of the proceeds of the term loan, $750 million was contributed to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes.

Certain of the investment banking firms that are a party to the Term Loan Agreement or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending, commercial banking and/or similar services for Edison International and certain of its subsidiaries and affiliates, for which services they have in the past received, and may in the future receive, customary compensation and reimbursement of expenses.

~~The foregoing description is qualified in its entirety by reference to the full text of the Term Loan Agreement, filed as Exhibit 10. 1 hereto and incorporated by reference herein.~~

EXHIBITS



Exhibit Number		Description


10.1		~~Term Loan~~364-Day Revolving Credit Agreement dated as of ~~April 26, 2019,~~March 11, 2020 among Southern California Edison, ~~International Company,~~ the several banks and other financial institutions from time to time parties thereto, and ~~Citibank, N.A., as administrative agent for the lenders~~

~~10.2~~		~~Term Loan Credit Agreement, dated as~~Royal Bank of ~~February 4, 2019, among Southern California Edison Company, the several banks and other financial institutions from time to time parties thereto, and JPMorgan Chase Bank, N.A.,~~Canada, as administrative agent for the lenders (File No. 1-2313, filed as Exhibit 10.1 to Southern California Edison's Form 8-K dated and filed ~~February 4, 2019)~~March 11, 2020)*

10.3**10.2		Term Loan Credit Agreement, dated as of March 11, 2020, among Southern California Edison Company, the several banks and other financial institutions from time to time parties thereto, and Royal Bank of Canada, as administrative agent for the lenders (File No. 1-2313, filed as Exhibit 10.2 to Southern California Edison's Form 8-K dated and filed March 11, 2020)*

10.3		Term Loan Credit Agreement, dated as of March 20, 2020, among Edison International, ~~2019 Long-Term Incentives Terms~~the several banks and ~~Conditions~~other financial institutions from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent for the lenders, and Citibank, N.A., as syndication agent (File No. 1-09936, filed as Exhibit 10.1 to Edison International's Form 8-K dated March 20, 2020 and filed March 24, 2020)*

10.4**		Edison International ~~Executive Incentive Compensation Plan As Amended~~2020 Long-Term Incentives Terms and ~~Restated Effective February 27, 2019~~Conditions

31.1		Certifications of the Chief Executive Officer and Chief Financial Officer of Edison International pursuant to Section 302 of the Sarbanes-Oxley Act

31.2		Certifications of the Chief Executive Officer and Chief Financial Officer of Southern California Edison Company pursuant to Section 302 of the Sarbanes-Oxley Act

32.1		Certifications of the Chief Executive Officer and the Chief Financial Officer of Edison International required by Section 906 of the Sarbanes-Oxley Act

32.2		Certifications of the Chief Executive Officer and the Chief Financial Officer of Southern California Edison Company required by Section 906 of the Sarbanes-Oxley Act

101.1		Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended March 31, ~~2019,~~2020, filed on April 30, ~~2019,~~2020, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

101.2		Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended March 31, ~~2019,~~2020, filed on April 30, ~~2019,~~2020, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

104		The cover page of this report formatted in Inline XBRL (included as Exhibit 101)


*	~~Incorporated by reference pursuant to Rule 12b-32.~~


**	~~Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3).~~

* Incorporated by reference pursuant to Rule 12b-32.

** Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3).

Edison International and SCE will furnish a copy of any exhibit listed in the accompanying Exhibit Index upon written request and upon payment to Edison International or SCE of their reasonable expenses of furnishing such exhibit, which shall be limited to photocopying charges and, if mailed to the requesting party, the cost of first-class postage.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.



	EDISON INTERNATIONAL		SOUTHERN CALIFORNIA EDISON COMPANY

By:	/s/ Aaron D. Moss	By:	/s/ Aaron D. Moss

	Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)		Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)

Date:	April 30, ~~2019~~2020	Date:	April 30, ~~2019~~2020

6165



(Mark One)
þ☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	March 31, ~~2019~~2020
o☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to



Commission File Number	Exact Name of Registrant as specified in its charter	State or Other Jurisdiction of Incorporation or Organization	IRS Employer Identification Number
1-9936	EDISON INTERNATIONAL	California	95-4137452
1-2313	SOUTHERN CALIFORNIA EDISON COMPANY	California	95-1240335



EDISON INTERNATIONAL			SOUTHERN CALIFORNIA EDISON COMPANY
2244 Walnut Grove Avenue			2244 Walnut Grove Avenue
(P.O. Box 976)			(P.O. Box 800)
Rosemead,	California	91770	Rosemead,	California	91770
(Address of principal executive offices)			(Address of principal executive offices)
(626)	302-2222		(626)	302-1212
(Registrant's telephone number, including area code)			(Registrant's telephone number, including area code)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	EIX	NYSE	LLC



~~EDISON INTERNATIONAL~~Title of each class	Trading Symbol(s)	~~SOUTHERN CALIFORNIA EDISON COMPANY~~Name of each exchange on which registered
~~2244 Walnut Grove Avenue~~ ~~(P.O. Box 976)~~ ~~Rosemead, California 91770~~ ~~(Address of principal executive offices)~~ Cumulative Preferred Stock, 4.08% Series	SCEpB	NYSE American LLC
Cumulative Preferred Stock, 4.24% Series	SCEpC	NYSE American LLC
Cumulative Preferred Stock, 4.32% Series	SCEpD	~~2244 Walnut Grove Avenue~~ ~~(P.O. Box 800)~~ ~~Rosemead, California 91770~~ ~~(Address of principal executive offices)~~NYSE American LLC
~~(626) 302-2222~~ ~~(Registrant's telephone number, including area code)~~ Cumulative Preferred Stock, 4.78% Series	SCEpE	~~(626) 302-1212~~ ~~(Registrant's telephone number, including area code)~~NYSE American LLC



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-12 of the Exchange Act. ~~(Check One):~~
Edison International	Large Accelerated Filerþ	Accelerated Filer¨	Non-accelerated Filer¨	Smaller Reporting Company¨	Emerging growth company¨
	þ	☐	☐	☐	☐
Southern California Edison Company	Large Accelerated Filer¨	Accelerated Filer¨	Non-accelerated Filerþ	Smaller Reporting Company¨	Emerging growth company¨
		☐	þ	☐	☐



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
Common Stock outstanding as of April ~~26, 2019:~~27, 2020:
Edison International		~~325,811,206~~363,560,677 shares
Southern California Edison Company		434,888,104 shares



					SEC Form 10-Q Reference Number
GLOSSARY				iv
FORWARD-LOOKING STATEMENTS				1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS				3	Part I, Item 2
	MANAGEMENT OVERVIEW			3
		Highlights of Operating Results		3
		~~2018 General Rate Case~~COVID-19		4
		~~Capital Program~~		4
		~~Southern California Wildfires~~Wildfire Mitigation and ~~Mudslides~~Wildfire Insurance Expenses		5
		~~RESULTS OF OPERATIONS~~Southern California Wildfires and Mudslides		7
	~~Southern California Edison Company~~			76
		~~Three months ended March 31, 2019 versus March 31, 2018~~		7
			~~Earning Activities~~	8
			~~Cost-Recovery Activities~~Capital Program	8
	~~Supplemental Operating Revenue Information~~			8
	~~Income Taxes~~RESULTS OF OPERATIONS			9
	Southern California Edison ~~International Parent and Other~~Company			9
		~~Income from Continuing Operations~~		9
	~~LIQUIDITY AND CAPITAL RESOURCES~~			9
	~~Southern California Edison Company~~Three months ended March 31, 2020 versus March 31, 2019			9
			~~Available Liquidity~~Earning Activities	10
			Cost-Recovery Activities	10
		~~Capital Investment Plan~~Supplemental Operating Revenue Information		10
		~~Regulatory Proceedings~~		10
		~~SCE~~ ~~Dividend~~s		11
		~~Margin~~Income Taxes		11
	Edison International Parent and ~~Collateral Deposits~~Other			11
		Loss from Operations		11
	LIQUIDITY AND CAPITAL RESOURCES			12
	Southern California Edison ~~International Parent and Other~~Company			12
		~~Historical Cash Flows~~Available Liquidity		13
		~~Southern California Edison Company~~Capital Investment Plan		13
		SCE Dividends		13
		Margin and Collateral Deposits		14
		Decommissioning of San Onofre		15
	Edison International Parent and Other			15
	Historical Cash Flows			16
		~~Contingencies~~Southern California Edison Company		16
		~~MARKET RISK EXPOSURES~~Edison International Parent and Other		1619
	~~Commodity Price Risk~~Contingencies			1620
	~~Credit Risk~~MARKET RISK EXPOSURES			1720
	Commodity Price Risk			20



	~~CRITICAL ACCOUNTING ESTIMATES AND POLICIES~~		17
	~~NEW ACCOUNTING GUIDANCE~~		17
~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~			17	~~Part I, Item 3~~
~~FINANCIAL STATEMENTS~~			18	~~Part I, Item 1~~
	~~Edison International Consolidated Statements of Income~~		18
	~~Edison International Consolidated Statements of Comprehensive Income~~		19
	~~Edison International Consolidated Balance Sheets~~Credit Risk		20
	CRITICAL ACCOUNTING ESTIMATES AND POLICIES		20
	NEW ACCOUNTING GUIDANCE		20
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			20	Part I, Item 3
FINANCIAL STATEMENTS			22	Part I, Item 1
	Edison International Consolidated Statements of ~~Cash Flows~~Income		22
	~~SCE~~Edison International Consolidated Statements of Comprehensive Income		23
	~~SCE Consolidated Statements of Comprehensive Income~~		23
	~~SCE~~Edison International Consolidated Balance Sheets		24
	~~SCE~~Edison International Consolidated Statements of Cash Flows		26
	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~SCE Consolidated Statements of Income		27
			~~Note 1. Summary~~SCE Consolidated Statements of ~~Significant Accounting Policies~~Comprehensive Income		27
	SCE Consolidated Balance Sheets		~~Note 2.~~28
	SCE Consolidated Statements of ~~Changes in Equity~~Cash Flows		30
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		31
		Note ~~3. Variable Interest Entities~~1. Summary of Significant Accounting Policies	3331
		Note ~~4. Fair Value Measurements~~2. Consolidated Statements of Changes in Equity	34
		Note ~~5. Debt and Credit Agreements~~3. Variable Interest Entities	36
		Note 4. Fair Value Measurements	37
		Note ~~6. Derivative Instruments~~5. Debt and	38
		~~Note 7. Revenue~~Credit Agreements	40
		Note ~~8. Income Taxes~~6. Derivative Instruments	41
		Note ~~9. Compensation and Benefit Plans~~	42
		~~Note 10. Investments~~7. Revenue	43
		Note ~~11. Regulatory Assets and Liabilities~~8. Income Taxes	44
		Note ~~12. Commitments~~9. Compensation and ~~Contingencies~~Benefit Plans	45
		Note 10. Investments	46
		Note ~~13. Leases~~11. Regulatory Assets and Liabilities	5347
		Note ~~14. Accumulated Other Comprehensive Loss~~12. Commitments and Contingencies	5648
		Note ~~15. Other Income and Expenses~~13. Equity	5658
		Note ~~16. Supplemental Cash Flows Information~~14. Accumulated Other Comprehensive Loss	5758
		Note 15. Other Income	59
		Note 16. Supplemental Cash Flows Information	59
		Note 17. Related-Party Transactions	5760
CONTROLS AND PROCEDURES			5861	Part I, Item 4
	Disclosure Controls and Procedures		5861
	Changes in Internal Control Over Financial Reporting		5861
	Jointly Owned Utility Plant		5861
LEGAL PROCEEDINGS			5861	Part II, Item 1
	~~Thomas Fire and Koenigstein Fire Litigation~~		58



	~~Montecito Mudslides~~Thomas Fire and Koenigstein Fire Litigation	5861
	~~Woolsey Fire~~Montecito Mudslides Litigation	5962
	Woolsey Fire Litigation	62
	Environmental Proceedings	63
~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~RISK FACTORS		5963	Part II, Item 21A
		~~Purchases of Equity Securities by Edison International and Affiliated Purchasers~~EXHIBITS		59
~~OTHER INFORMATION~~		59	~~Part II, Item 5~~
~~EXHIBITS~~		6064	Part II, Item 6
SIGNATURES		6165



2017/2018 Wildfire/Mudslide Events		the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively
~~2018~~2019 Form 10-K		Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019
~~AFUDC~~AB 1054		~~allowance for funds used during construction~~California Assembly Bill 1054, executed by the Governor of California on July 12, 2019
~~ALJ~~AB 1054 Excluded Capital Expenditures		~~administrative law judge~~approximately $1.6 billion in wildfire risk mitigation capital expenditures that SCE will exclude from the equity portion of SCE's rate base as required under AB 1054
AB 1054 Liability Cap		a cap on the aggregate requirement to reimburse the Wildfire Insurance Fund over a trailing three calendar year period which applies if certain conditions are met and is equal to 20% of the equity portion of the utility's transmission and distribution rate base in the year of the applicable prudency determination
ARO(s)		asset retirement obligation(s)
Bcf		billion cubic feet
~~bonus depreciation~~		~~Federal tax deduction of a percentage of the qualifying property placed in service during periods permitted under tax laws~~
BRRBA		Base Revenue Requirement Balancing Account
CAISO		California Independent System Operator
~~Cal Advocates~~		~~CPUC's Public Advocates Office (formerly known as the Office of Ratepayer Advocates or ORA)~~
CAL FIRE		California Department of Forestry and Fire Protection
CCAs		Community Choice Aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses
~~Commission on Catastrophic Wildfire Cost and Recovery~~COVID-19		~~Commission on Catastrophic Wildfire Cost and Recovery established by the California Governor’s Office of Planning and Research as required by California Senate Bill 901~~Coronavirus disease 2019
CPUC		California Public Utilities Commission
~~December 2017 Wildfires~~CSRP		~~several wind-driven wildfires, including the Thomas Fire and the Koenigstein Fire, that occurred in December 2017 and impacted portions of SCE's~~Customer Service Re-platform, a SCE project to implement a new customer service ~~territory~~system
DERs		distributed energy resources
~~DOE~~		~~U.S. Department of Energy~~
~~DRP~~		~~Distributed Resources Plan~~
Edison Energy		Edison Energy, LLC, a wholly-owned subsidiary of Edison Energy Group that advises and provides energy solutions to large energy users
Edison Energy Group		Edison Energy Group, Inc., a wholly-owned subsidiary of Edison International, is a holding company for subsidiaries engaged in competitive businesses that provide energy services to commercial and industrial customers
EME		Edison Mission Energy
~~EME Settlement Agreement~~		~~Settlement Agreement by and among Edison Mission Energy, Edison International and the Consenting Noteholders identified therein, dated February 18, 2014~~
Electric Service Provider		an entity that offers electric power and ancillary services to retail customers, ~~that take final delivery of electric power~~other than electrical corporations (like SCE) and ~~do not resell the power~~CCAs
ERRA		Energy Resource Recovery Account
~~FASB~~		~~Financial Accounting Standards Board~~
FERC		Federal Energy Regulatory Commission
FERC 2018 Settlement Period		January 1, 2018 through November 11, 2019
FHPMA		Fire Hazard Prevention Memorandum Account
Fitch		Fitch Ratings, Inc.
GAAP		generally accepted accounting principles
GHG		greenhouse gas
GRC		general rate case
GS&RP		Grid Safety and Resiliency Program
GWh		gigawatt-hours
~~HLBV~~		~~hypothetical liquidation at book value~~
~~IRS~~		~~Internal Revenue Service~~



Joint Proxy Statement		Edison International's and SCE's definitive Proxy Statement filed with the SEC in connection with Edison International's and SCE's Annual Shareholders' Meeting held on April ~~25, 2019~~23, 2020
Koenigstein Fire		a wind-driven fire that originated near Koenigstein Road in the City of Santa Paula in Ventura County on December 4, 2017
kV		unit of electrical potential equal to 1000 volts
MD&A		Management's Discussion and Analysis of Financial Condition and Results of Operations ~~in this report~~


~~MHI~~		~~Mitsubishi Heavy Industries, Inc. and related companies~~
Montecito Mudslides		the mudslides and flooding in Montecito, Santa Barbara County, that occurred in January 2018
Moody's		Moody's Investors Service, Inc.
MW		~~megawatts~~
~~MWdc~~		~~megawatts measured for solar projects representing the accumulated peak capacity of all the solar modules~~
~~NDCTP~~		~~Nuclear Decommissioning Cost Triennial Proceeding~~
~~NEIL~~		~~Nuclear Electric Insurance Limited~~
NEM		net energy metering
NERC		North American Electric Reliability Corporation
~~NOL~~		~~net operating loss~~
NRC		Nuclear Regulatory Commission
~~OII~~PABA		~~Order Instituting Investigation~~
~~OII Parties~~		SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, Cal Advocates, TURN, and Women's Energy Matters, all of whom are parties to the Revised San Onofre Settlement AgreementPortfolio Allocation Balancing Account
Palo Verde		nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
PBOP(s)		postretirement benefits other than pension(s)
PCIA		Power Charge Indifference Adjustment
PG&E		Pacific Gas & Electric Company
~~Prior San Onofre Settlement Agreement~~		~~San Onofre OII Settlement Agreement by and among TURN, Cal Advocates, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth, dated November 20, 2014~~
~~Revised San Onofre~~ ~~Settlement Agreement~~		~~Revised San Onofre OII Settlement Agreement among OII Parties, dated January 30, 2018 and modified on August 2, 2018~~
ROE		return on common equity
RPS		Renewables portfolio standard
S&P		Standard & Poor's Financial Services LLC
San Onofre		retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest
SCE		Southern California Edison Company, a wholly-owned subsidiary of Edison International
SDG&E		San Diego Gas & Electric
SEC		U.S. Securities and Exchange Commission
SED		Safety and Enforcement Division of the CPUC
SoCalGas		Southern California Gas Company
SoCore Energy		SoCore Energy LLC, a former subsidiary of Edison Energy Group that was sold in April 2018
TAMA		Tax Accounting Memorandum Account
Tax Reform		Tax Cuts and Jobs Act signed into law on December 22, 2017
Thomas Fire		a wind-driven fire that originated in the Anlauf Canyon area Ventura County on December 4, 2017
TOU		Time-Of-Use
~~TURN~~		~~The Utility Reform Network~~



US EPA		U.S. Environmental Protection Agency
VCFD		The Ventura County Fire Department
WEMA		Wildfire Expense Memorandum Account
WMP		a wildfire mitigation plan required to be filed ~~annually~~every three years under ~~California Senate Bill 901~~AB 1054 to describe a utility's plans to construct, operate, and maintain electrical lines and equipment that will help minimize the risk of catastrophic wildfires caused by such electrical lines and equipment
Wildfire Insurance Fund		The insurance fund established under AB 1054
Woolsey Fire		a wind-driven fire that originated in Ventura County in November 2018


¹	See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."



(in millions)
Collateral posted¹	$	222
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade²	14
Incremental collateral requirements for power procurement contracts resulting from adverse market price movement³	10
Posted and potential collateral requirements	$	246


	Three months ended March 31,						Change in cash flows			Three months ended March 31,						Change in cash flows
(in millions)	2019			2018			2019/2018			2020			2019			2020/2019
Net income	$	323		$	316					$	249		$	323
Non-cash items¹	370			465						535			370
Subtotal	$	693		$	781		$	(88	)	784			693			$	91
Changes in cash flow resulting from working capital²	(271		)	(354		)	83			(107		)	(271		)	164
Regulatory assets and liabilities	(96		)	405			(501		)	(372		)	(96		)	(276		)
Other noncurrent assets and liabilities³	(79		)	(31		)	(48		)	29			(79		)	108
Net cash provided by operating activities	$	247		$	801		$	(554	)	$	334		$	247		$	87


¹	Non-cash items include depreciation and amortization, allowance for equity during construction, impairment and other, deferred income taxes, ~~and investment tax credits,~~Wildfire Insurance Fund amortization expenses and other.


²	Changes in working capital items include receivables, inventory, ~~prepaid expenses,~~ accounts payable, tax receivables and payables, and other current assets and liabilities.


³	Includes changes in wildfire-related insurance receivables. Also includes nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information.



	March 31, 2019
(in millions)	Exposure²		Collateral		Net Exposure
S&P Credit Rating¹
A or higher	$	98	$	—	$	98
A-, BBB + and BBB	12		—		12
	$	110	$	—	$	110


¹	SCE assigns a credit rating based on the lower of a counterparty's S&P or Moody's rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the credit ratings from S&P or Moody's.


²	Exposure excludes amounts related to contracts classified as normal purchases and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheets, except for any related net accounts receivable.


Consolidated Statements of Income	Edison International							Edison International

		Three months ended March 31,						Three months ended March 31,
(in millions, except per-share amounts, unaudited)		2019			2018			2020			2019
Total operating revenue		$	2,824		$	2,564		$	2,790		$	2,824
Purchased power and fuel		1,005			926			928			1,005
Operation and maintenance		882			675			881			882
Wildfire Insurance Fund expense								84			—
Depreciation and amortization		480			462			484			480
Property and other taxes		110			107			111			110
Impairment and other		(4		)	66
Other operating income		(1		)	(2		)	—			(5		)
Total operating expenses		2,472			2,234			2,488			2,472
Operating income		352			330			302			352
Interest expense		(194		)	(170		)	(225		)	(194		)
Other income and expense		38			51
Income from continuing operations before income taxes		196			211
Other income								52			38
Income before taxes								129			196
Income tax benefit		(112		)	(31		)	(84		)	(112		)
Income from continuing operations		308			242
Net income		308			242			213			308
Preferred and preference stock dividend requirements of SCE		30			30			30			30
Other noncontrolling interests		—			(6		)
Net income attributable to Edison International common shareholders		$	278		$	218
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax		$	278		$	218
Net income attributable to Edison International common shareholders		$	278		$	218		$	183		$	278
Basic earnings per share:
Weighted-average shares of common stock outstanding		326			326
Continuing operations		$	0.85		$	0.67
Weighted average shares of common stock outstanding								363			326
Basic earnings per common share attributable to Edison International common shareholders		$	0.85		$	0.67		$	0.50		$	0.85
Diluted earnings per share:
Weighted-average shares of common stock outstanding, including effect of dilutive securities		327			327
Continuing operations		$	0.85		$	0.67
Weighted average shares of common stock outstanding, including effect of dilutive securities								364			327
Diluted earnings per common share attributable to Edison International common shareholders		$	0.85		$	0.67		$	0.50		$	0.85


Consolidated Statements of Comprehensive Income	Edison International					Edison International

	Three months ended March 31,					Three months ended March 31,
(in millions, unaudited)	2019		2018			2020		2019
Net income	$	308	$	242		$	213	$	308
Other comprehensive income (loss), net of tax:
Other comprehensive income, net of tax:
Pension and postretirement benefits other than pensions:
Amortization of net loss included in net income	2		2			2		2
Other	—		(5		)
Other comprehensive income (loss), net of tax	2		(3		)
Other comprehensive income, net of tax						2		2
Comprehensive income	310		239			215		310
Less: Comprehensive income attributable to noncontrolling interests	30		24			30		30
Comprehensive income attributable to Edison International	$	280	$	215		$	185	$	280


Consolidated Balance Sheets	Edison International				Edison International

(in millions, unaudited)	March 31, 2019		December 31, 2018		March 31, 2020		December 31, 2019
ASSETS
Cash and cash equivalents	$	328	$	144	$	1,337	$	68
Receivables, less allowances of $49 and $52 for uncollectible accounts at respective dates	716		730
Receivables, less allowances of $60 and $50 for uncollectible accounts at respective dates					795		788
Accrued unbilled revenue	459		482		409		488
Inventory	312		282		363		364
Income tax receivables	192		191		131		118
Prepaid expenses	465		148		158		214
Derivative assets	101		171		51		81
Regulatory assets	1,286		1,133		1,225		1,009
Wildfire Insurance Fund contributions					323		323
Other current assets	140		78		119		107
Total current assets	3,999		3,359		4,911		3,560
Nuclear decommissioning trusts	4,291		4,120		4,267		4,562
Other investments	76		63		74		64
Total investments	4,367		4,183		4,341		4,626
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,671 and $9,566 at respective dates	41,678		41,269
Nonutility property, plant and equipment, less accumulated depreciation of $82 at both dates	86		79
Utility property, plant and equipment, less accumulated depreciation and amortization of $10,147 and $9,958 at respective dates					44,733		44,198
Nonutility property, plant and equipment, less accumulated depreciation of $88 and $86 at respective dates					87		87
Total property, plant and equipment	41,764		41,348		44,820		44,285
Regulatory assets	5,268		5,380		6,294		6,088
Wildfire Insurance Fund contributions					2,687		2,767
Operating lease right-of-use assets	933		—		683		693
Other long-term assets	2,462		2,445		2,290		2,363
Total long-term assets	8,663		7,825		11,954		11,911












Total assets	$	58,793	$	56,715	$	66,026	$	64,382


Consolidated Statements of Cash Flows	Edison International						Edison International

	Three months ended March 31,						Three months ended March 31,
(in millions, unaudited)	2019			2018			2020			2019
Cash flows from operating activities:
Net income	$	308		$	242		$	213		$	308
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	498			479			501			498
Allowance for equity during construction	(17		)	(22		)	(21		)	(17		)
Impairment and other	(4		)	66
Deferred income taxes and investment tax credits	(114		)	4
Deferred income taxes							(58		)	(114		)
Wildfire Insurance Fund amortization expense							84			—
Other	5			17			23			1
Nuclear decommissioning trusts	(73		)	(24		)	14			(73		)
Changes in operating assets and liabilities:
Receivables	9			77			(30		)	9
Inventory	(30		)	(7		)	1			(30		)
Accounts payable	31			(216		)	(129		)	31
Tax receivables and payables	82			162			31			82
Other current assets and liabilities	(381		)	(277		)	41			(381		)
Regulatory assets and liabilities, net	(96		)	405			(372		)	(96		)
Wildfire-related insurance receivable							58			—
Other noncurrent assets and liabilities	(8		)	(47		)	(41		)	(8		)
Net cash provided by operating activities	210			859			315			210
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $13 and $17 for the respective periods	1,087			1,783
Long-term debt issued, net of premium, discount and issuance costs of $19 and $(13) for the respective periods							1,719			1,087
Long-term debt repaid							(40		)	(40		)
Term loan issued	750			—			1,275			750
Long-term debt matured	(40		)	(41		)
Common stock issued							74			—
Short-term debt financing, net	(538		)	(2,261		)	(550		)	(538		)
Payments for stock-based compensation	(41		)	(10		)	(3		)	(41		)
Receipts from stock option exercises	22			2			13			22
Dividends to noncontrolling interests	(36		)	(36		)
Dividends and distribution to noncontrolling interests							(36		)	(36		)
Dividends paid	(200		)	(197		)	(226		)	(200		)
Other	5			15			5			5
Net cash provided by (used in) financing activities	1,009			(745		)
Net cash provided by financing activities							2,231			1,009
Cash flows from investing activities:
Capital expenditures	(1,074		)	(1,137		)	(1,268		)	(1,074		)
Proceeds from sale of nuclear decommissioning trust investments	1,208			931			1,407			1,208
Purchases of nuclear decommissioning trust investments	(1,135		)	(907		)	(1,421		)	(1,135		)
Other	15			16			4			15
Net cash used in investing activities	(986		)	(1,097		)	(1,278		)	(986		)
Net increase (decrease) in cash, cash equivalents and restricted cash including cash held for sale	233			(983		)
Less: Net increase in cash held for sale	—			43
Net increase (decrease) in cash, cash equivalent and restricted cash	233			(1,026		)
Net increase in cash, cash equivalents and restricted cash							1,268			233
Cash, cash equivalents and restricted cash at beginning of period	152			1,132			70			152
Cash, cash equivalents and restricted cash at end of period	$	385		$	106		$	1,338		$	385


(in millions, unaudited)	March 31, 2019		December 31, 2018		March 31, 2020		December 31, 2019
ASSETS
Cash and cash equivalents	$	297	$	21	$	451	$	24
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates	702		711
Receivables, less allowances of $60 and $49 for uncollectible accounts at respective dates					785		777
Accrued unbilled revenue	459		482		409		488
Inventory	312		282		363		364
Income tax receivables	311		312		158		148
Prepaid expenses	464		144		158		213
Derivative assets	101		171		51		81
Regulatory assets	1,286		1,133		1,225		1,009
Wildfire Insurance Fund contributions					323		323
Other current assets	130		69		114		103
Total current assets	4,062		3,325		4,037		3,530
Nuclear decommissioning trusts	4,291		4,120		4,267		4,562
Other investments	58		45		55		46
Total investments	4,349		4,165		4,322		4,608
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,671 and $9,566 at respective dates	41,678		41,269
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates	81		75
Utility property, plant and equipment, less accumulated depreciation and amortization of $10,147 and $9,958 at respective dates					44,733		44,198
Nonutility property, plant and equipment, less accumulated depreciation of $81 and $80 at respective dates					82		83
Total property, plant and equipment	41,759		41,344		44,815		44,281
Regulatory assets	5,268		5,380		6,294		6,088
Wildfire Insurance Fund contributions					2,687		2,767
Operating lease right-of-use assets	928		—		679		689
Long-term insurance receivable due from affiliate	1,000		1,000
Long-term insurance receivables due from affiliate					803		803
Other long-term assets	1,378		1,360		1,434		1,507
Total long-term assets	8,574		7,740		11,897		11,854










Total assets	$	58,744	$	56,574	$	65,071	$	64,273


(in millions, except share amounts, unaudited)	March 31, 2019			December 31, 2018			March 31, 2020			December 31, 2019
LIABILITIES AND EQUITY
Short-term debt	$	779		$	720		$	475		$	550
Current portion of long-term debt	79			79			901			79
Accounts payable	1,381			1,519			1,454			1,779
Accrued taxes	105			22
Customer deposits	303			299			298			302
Regulatory liabilities	1,295			1,532			764			972
Current portion of operating lease liabilities	156			—			73			79
Other current liabilities	1,097			975			1,193			1,298
Total current liabilities	5,195			5,146			5,158			5,059
Long-term debt	13,942			12,892			15,991			15,132
Deferred income taxes and credits	6,011			5,898			6,559			6,451
Pensions and benefits	434			433			228			237
Asset retirement obligations	2,999			3,031			3,027			3,029
Regulatory liabilities	8,588			8,329			8,113			8,385
Operating lease liabilities	772			—			606			610
Wildfire-related claims	4,669			4,669			4,568			4,568
Other deferred credits and other long-term liabilities	2,264			2,391			2,775			2,975
Total deferred credits and other liabilities	25,737			24,751			25,876			26,255
Total liabilities	44,874			42,789			47,025			46,446
Commitments and contingencies (Note 12)
Preferred and preference stock	2,245			2,245			2,245			2,245
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates)	2,168			2,168			2,168			2,168
Additional paid-in capital	683			680			4,207			3,939
Accumulated other comprehensive loss	(27		)	(23		)	(37		)	(39		)
Retained earnings	8,801			8,715			9,463			9,514
Total equity	13,870			13,785			18,046			17,827









Total liabilities and equity	$	58,744		$	56,574		$	65,071		$	64,273


¹	Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. ~~Restricted cash at March 31, 2019 primarily relates to funds held by SCE that were used in April 2019 for nuclear decommissioning activities at San Onofre.~~



	Three months ended March 31,
(in millions, except per-share amounts)	2020		2019
Basic earnings per share:
Net income attributable to common shareholders	$	183	$	278
Participating securities dividends	—		—
Net income available to common shareholders	$	183	$	278
Weighted average common shares outstanding	363		326
Basic earnings per share	$	0.50	$	0.85
Diluted earnings per share:
Net income attributable to common shareholders	$	183	$	278
Participating securities dividends	—		—
Net income available to common shareholders	$	183	$	278
Income impact of assumed conversions	—		—
Net income available to common shareholders and assumed conversions	$	183	$	278
Weighted average common shares outstanding	363		326
Incremental shares from assumed conversions	1		1
Adjusted weighted average shares – diluted	364		327
Diluted earnings per share	$	0.50	$	0.85



	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2019	$	4,990	$	(69	)	$	8,382		$	13,303		$	2,193		$	15,496
Net income	—		—			183			183			30			213
Other comprehensive income	—		2			—			2			—			2
Common stock issued, net of issuance cost	88		—			—			88			—			88
Common stock dividends declared ($0.6375 per share)	—		—			(232		)	(232		)	—			(232		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Noncash stock-based compensation	7		—			—			7			—			7
Balance at March 31, 2020	$	5,085	$	(67	)	$	8,333		$	13,351		$	2,193		$	15,544


¹	Edison International recognized a cumulative effect ~~adjustments~~adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards ~~updates~~update on the reclassification of stranded tax effects resulting from Tax Cuts and Jobs Act ("Tax Reform. ~~See Note 1 for further information.~~")


¹	SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. ~~See Note 1 for further information.~~