Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

2017/2018 Wildfire/Mudslide Events

Commitments and Contingencies

Schedule of Contingency Accruals and Changes

(in millions)
Balance at December 31, 20221	$	1,119
Increase in accrued estimated losses		565
Amounts paid		(747)
Balance at September 30, 20232	$	937

1 At December 31, 2022, $121 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $65 million of settlements executed and $56 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2022, the $1,687 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included 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 $934 million, $64 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $689 million.

2 At September 30, 2023, $150 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $144 million of settlements executed and $6 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At September 30, 2023, the $1,583 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included 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 $728 million, $59 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $796 million.

For the three and nine months ended September 30, 2023 and 2022, Edison International's and SCE's consolidated statements of income included 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)	2023		2022		2023		2022
Charge for wildfire-related claims	$	475	$	880	$	565	$	1,296
Expected revenue from FERC customers		(27)		(50)		(33)		(76)
Total pre-tax charge		448		830		532		1,220
Income tax benefit		(125)		(232)		(148)		(341)
Total after-tax charge	$	323	$	598	$	384	$	879

Post-2018 Wildfires

Commitments and Contingencies

Schedule of Contingency Accruals and Changes

The following table presents changes in estimated losses since December 31, 2022:

(in millions)
Balance at December 31, 2022	$	682
Increase in accrued estimated losses		124
Amounts paid		(16)
Balance at September 30, 2023	$	790

For the three and nine months ended September 30, 2023 and 2022, Edison International's and SCE's consolidated statements of income included 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)	2023		2022		2023		2022
Edison International:
Charge for wildfire-related claims1	$	118	$	415	$	124	$	565
Expected insurance recoveries2		(111)		(244)		(111)		(383)
Expected revenue from CPUC and FERC customers		—		(162)		—		(162)
Total pre-tax charge		7		9		13		20
Income tax benefit		(2)		(3)		(4)		(6)
Total after-tax charge	$	5	$	6	$	9	$	14

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
SCE:
Charge for wildfire-related claims1	$	118	$	415	$	124	$	565
Expected insurance recoveries		(114)		(253)		(114)		(392)
Expected revenue from CPUC and FERC customers		—		(162)		—		(162)
Total pre-tax charge		4		—		10		11
Income tax benefit		(1)		—		(3)		(3)
Total after-tax charge	$	3	$	—	$	7	$	8

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

2 Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, paid $3 million insurance for the three and nine months ended September 30, 2023 and $9 million insurance for the three and nine months ended September 30, 2022. These insurance payments were included in the insurance recovery of SCE but were excluded from that of Edison International.