Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2022

2017/2018 Wildfire/Mudslide Events

Commitments and Contingencies

Schedule of Contingency Accruals and Changes

(in millions)
Balance at December 31, 20211	$	1,734
Increase in accrued estimated losses		1,296
Amounts paid		(1,583)
Balance at September 30, 20222	$	1,447

1 At December 31, 2021, $131 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consists of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2021, the $1,733 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for the 2017/2018 Wildfire/Mudslide Events of $1,603 million and other wildfire-related claims estimates of $130 million.

2 At September 30, 2022, $173 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consists of $62 million of settlements executed and $111 million of a short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At September 30, 2022, the $1,962 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $1,210 million, $64 million of a long term payables under the SED Agreement and other wildfire-related claims estimates of $688 million.

For the three and nine months ended September 30, 2022 and 2021, Edison International's and SCE's income statements include charges for the estimated losses, net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows:

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2022		2021		2022		2021
Charge for wildfire-related claims	$	880	$	1,265	$	1,296	$	1,265
Expected revenue from FERC customers		(50)		(67)		(76)		(67)
Total pre-tax charge		830		1,198		1,220		1,198
Income tax benefit		(232)		(304)		(341)		(304)
Total after-tax charge	$	598	$	894	$	879	$	894

Post-2018 Wildfires

Commitments and Contingencies

Schedule of Contingency Accruals and Changes

The following table presents changes in estimated losses since December 31, 2021:

(in millions)
Balance at December 31, 2021	$	123
Increase in accrued estimated losses		565
Amounts paid		(5)
Balance at September 30, 2022	$	683

For the three and nine months ended September 30, 2022 and 2021, Edison International's and SCE's income statements include charges for the estimated losses, net of expected recoveries from insurance and customers, related to the Post-2018 Wildfires as follows, respectively:

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2022		2021		2022		2021
Edison International:
Charge for wildfire-related claims1	$	415	$	5	$	565	$	7
Expected insurance recoveries2		(244)		—		(383)		—
Expected revenue from CPUC and FERC customers		(162)		—		(162)		—
Total pre-tax charge		9		5		20		7
Income tax benefit		(3)		(1)		(6)		(2)
Total after-tax charge	$	6	$	4	$	14	$	5

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2022		2021		2022		2021
SCE:
Charge for wildfire-related claims1	$	415	$	5	$	565	$	7
Expected insurance recoveries		(253)		—		(392)		—
Expected revenue from CPUC and FERC customers		(162)		—		(162)		—
Total pre-tax charge		—		5		11		7
Income tax benefit		—		(1)		(3)		(2)
Total after-tax charge	$	—	$	4	$	8	$	5

1 Includes estimated co-insurance payments recorded as operations and maintenance expense.

2 For the three and nine months ended September 30, 2022, Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, paid $9 million insurance, which was included in the insurance recovery of SCE but was excluded in Edison International.