Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

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)	2024			2023			2024			2023
(Loss) income from operations before income taxes	$	(61)		$	378		$	22		$	428
Provision for income tax at federal statutory rate of 21%		(13)			79			5			90
(Decrease) increase in income tax from:
State tax, net of federal income tax effect		(37)			(1)			(31)			3
Property-related		(55)			(58)			(55)			(58)
Other		(8)			(7)			(3)			(6)
Total income tax (benefit) expense	$	(113)		$	13		$	(84)		$	29
Effective tax rate		185.2	%		3.4	%		(381.8)	%		6.8	%

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

The tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2020 – 2022 and 2013 – 2022, respectively.