Edison International (NYSE: EIX) outlines Woolsey Fire cost recovery and securitization plan
Rhea-AI Filing Summary
Edison International and Southern California Edison describe a proposed settlement of wildfire cost recovery related to the 2018 Woolsey Fire. Southern California Edison plans to seek California Public Utilities Commission approval of a Woolsey Settlement Agreement that would authorize recovery of 35%, or about $2.0 billion, of roughly $5.6 billion in losses, including approximately $1.6 billion of uninsured claims paid and $0.4 billion of legal and estimated financing costs as of May 31, 2025. The company would also recover 35% of additional losses paid after that date.
The settlement would allow recovery of about $71 million of roughly $84 million in restoration costs, while SCE waives recovery of certain other wildfire-related losses, including $250 million of uninsured claims tied to a prior agreement and an estimated $157 million of pre‑AB 1054 wildfire losses. Subject to approval, SCE intends to finance authorized amounts using securitized bonds or, if securitization is not approved, through long-term debt over five years.
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Insights
Proposed Woolsey Fire settlement outlines partial cost recovery with structured financing.
The disclosure centers on a Woolsey Settlement Agreement that, if approved, would let Southern California Edison recover 35% of about $5.6 billion in Woolsey Fire losses, or roughly $2.0 billion, plus 35% of additional losses paid after May 31, 2025. This indicates a substantial portion of wildfire costs would remain with the company, but a meaningful share could be passed through to customers under regulatory oversight.
The structure includes recovery of about $71 million of approximately $84 million in restoration costs, while SCE waives recovery of other categories, such as $250 million of uninsured claims linked to a prior SED agreement and an estimated $157 million of pre‑AB 1054 wildfire losses. Subject to approval, authorized amounts would be financed via securitized bonds, which can help match long-dated wildfire costs to a dedicated funding source; if securitization is denied, recovery would occur in rates over five years using long-term debt.
The agreement also allows SCE, if it proceeds, to permanently exclude after-tax charges associated with disallowed or waived costs, and the related debt, from its CPUC regulatory capital structure. That treatment can influence regulatory equity ratios and reported credit metrics. The actual impact depends on California Public Utilities Commission decisions in the cost recovery and anticipated securitization proceedings.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
Commission |
| Exact Name of Registrant |
| State or Other Jurisdiction of |
| IRS Employer |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
Edison International:
Southern California Edison Company: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.
This current report and its exhibits include forward-looking statements. Edison International and Southern California Edison Company ("SCE") based these forward-looking statements on their current expectations and projections about future events in light of their knowledge of facts as of the date of this current report and their assumptions about future circumstances. These forward-looking statements are subject to various risks and uncertainties that may be outside the control of Edison International and SCE. Edison International and SCE have no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events, or otherwise. This current report should be read with Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent quarterly Reports on Form 10-Q. Additionally, Edison International and SCE provide direct links to Edison International and SCE presentations, documents and other information at www.edisoninvestor.com (Presentations and Updates) in order to publicly disseminate such information.
Terms not defined herein have the meanings ascribed to them in the 2024 Form 10-K.
Item 7.01Regulation FD Disclosure
Members of Edison International management will use the information in the presentation furnished as Exhibit 99.1 regarding the settlement discussed in Item 8.01 below in meetings with institutional investors and analysts and at investor conferences. The attached presentation will also be posted on www.edisoninvestor.com.
Item 8.01Other Events
In October 2024, SCE filed an application with the California Public Utilities Commission (“CPUC”) to seek cost recovery of prudently incurred losses related to the 2018 Woolsey Fire and of restoration costs incurred related to the Woolsey Fire. On September 19, 2025, SCE will file a motion in the cost recovery proceeding seeking approval of a settlement agreement between SCE, the Public Advocates Office at the CPUC, the Energy Producers and Users Coalition and Small Business Utility Advocates (the “Woolsey Settlement Agreement”). Other parties to the proceeding may oppose or take no position on the Woolsey Settlement Agreement.
Under the Woolsey Settlement Agreement, if approved by the CPUC, SCE will be authorized to recover 35%, or approximately $2.0 billion, of approximately $5.6 billion of losses, consisting of approximately $1.6 billion of uninsured claims paid as of May 31, 2025, and $0.4 billion of costs, comprised of legal costs paid as of May 31, 2025, and estimated financing costs. SCE will also be authorized to recover 35% of losses paid after May 31, 2025. SCE’s requests for recovery exclude $250 million of uninsured claims and related financing costs which SCE waived its right to seek recovery of under the SED Agreement entered into between SCE and the Safety and Enforcement Division of the CPUC in October 2021. Subject to approval of the Woolsey Settlement Agreement, SCE will request approval from the CPUC to finance the amounts authorized under the Woolsey Settlement Agreement through the issuance of securitized bonds. The parties agreed that if SCE’s anticipated application for securitization is denied, the authorized amounts will be recovered in rates over five years, financed using long-term debt.
Further, SCE will be authorized to recover approximately $71 million of approximately $84 million in restoration costs incurred. In the Woolsey Settlement Agreement, SCE also waived its right to seek recovery of uninsured losses tracked in a Wildfire Expense Memorandum Account and incurred in connection with fires that ignited prior to July 12, 2019, the date AB 1054 was adopted. SCE estimates that the waived pre-AB 1054 losses are approximately $157 million.
If the Woolsey Settlement Agreement is approved, SCE will be allowed to permanently exclude any after-tax charges to equity associated with the costs disallowed or waived in the Woolsey Settlement Agreement and the debt issued to finance those costs from its CPUC regulatory capital structure.
Item 9.01Financial Statements and Exhibits
(d) | Exhibits |
EXHIBIT INDEX
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Exhibit No. |
| Description |
99.1 | Edison International Business Update Supplement: Woolsey Settlement Agreement | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: September 19, 2025
Date: September 19, 2025
FAQ
How much of the Woolsey Fire losses could Southern California Edison recover under the proposed agreement?
If approved, Southern California Edison would be authorized to recover 35% of approximately $5.6 billion of Woolsey Fire losses, or about $2.0 billion, and 35% of additional losses paid after May 31, 2025.
What restoration costs from the Woolsey Fire are included in the proposed recovery for EIX?
The proposed agreement would authorize recovery of approximately $71 million out of about $84 million in restoration costs incurred related to the 2018 Woolsey Fire.
How does Edison International plan to finance the authorized Woolsey Fire cost recovery?
Subject to approval of the Woolsey Settlement Agreement, Southern California Edison intends to request CPUC approval to finance authorized amounts through securitized bonds. If securitization is denied, the authorized amounts would be recovered in rates over five years using long-term debt.
How would the Woolsey Settlement Agreement affect Southern California Edison’s regulatory capital structure?
If approved, Southern California Edison would be allowed to permanently exclude from its CPUC regulatory capital structure any after-tax charges to equity associated with costs disallowed or waived in the settlement and the debt issued to finance those costs.