Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment

Property, Plant and Equipment

Note 2.Property, Plant and Equipment

SCE's utility property, plant and equipment included in the consolidated balance sheets is composed of the following:

	December 31,
(in millions)	2023		2022
Distribution	$	34,573	$	32,754
Transmission		18,526		18,106
Generation		3,593		3,880
General plant and other		6,383		6,121
Accumulated depreciation		(12,910)		(12,260)
		50,165		48,601
Construction work in progress		5,590		4,551
Nuclear fuel, at amortized cost		122		122
Total utility property, plant and equipment	$	55,877	$	53,274

Capitalized Software Costs

SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over their useful lives, primarily 5 and 7 year lives, commencing upon operational use. Capitalized software costs, included in general plant and other above, was $2.1 billion and $2.0 billion at December 31, 2023 and 2022, and accumulated amortization was $0.9 billion and $0.7 billion, at December 31, 2023 and 2022, respectively. Amortization expense for capitalized software was $358 million, $344 million and $311 million in 2023, 2022 and 2021, respectively. At December 31, 2023, amortization expense is estimated to be $359 million, $317 million, $253 million, $168 million and $61 million for 2024 through 2028, respectively.

Jointly Owned Utility Projects

SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income.

The following is SCE's investment in each asset as of December 31, 2023:

			Construction
	Plant in		Work in		Accumulated		Nuclear Fuel				Ownership
(in millions)	Service		Progress		Depreciation		(at amortized cost)		Total		Interest
Transmission systems:
Eldorado	$	355	$	123	$	(63)	$	—	$	415	76	%
Pacific Intertie		356		3		(90)		—		269	50	%
Generating station:
Palo Verde (nuclear)		2,211		58		(1,670)		122		721	16	%
Total	$	2,922	$	184	$	(1,823)	$	122	$	1,405

In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies.