Edison International, the parent company of Southern California Edison (SCE), reported significant financial improvements in its latest 10-Q filing for the third quarter of 2024. For the three months ended September 30, 2024, net income reached $577 million, a substantial increase from $212 million in the same period of 2023. For the nine months ended September 30, 2024, net income was $1,319 million, compared to $1,117 million in the prior year. Core earnings for the third quarter also rose to $582 million from $531 million year-over-year.
SCE's operating revenue for the third quarter of 2024 was $5,188 million, up from $4,687 million in the same quarter of 2023, driven primarily by an increase in California Public Utilities Commission (CPUC)-related revenue and wildfire mitigation expenses. Operating income for the quarter improved to $1,013 million from $509 million in the previous year. For the nine-month period, operating revenue increased to $13,576 million from $12,586 million, with operating income rising to $2,190 million from $1,835 million.
The increase in profitability was attributed to higher core earnings, which benefited from authorized revenue increases and adjustments in the rate of return due to capital cost mechanisms. However, SCE's operating expenses also rose, totaling $4,175 million for the third quarter, slightly down from $4,178 million in 2023, largely due to increased wildfire mitigation costs and severance expenses related to workforce reductions.
SCE's financial position reflects ongoing challenges, particularly related to wildfire claims. The company reported consolidated non-core charges of $485 million for the nine months ended September 30, 2024, primarily linked to wildfire-related claims from the 2017/2018 events. Total estimated losses for these claims reached $9.9 billion, with SCE having paid approximately $9.3 billion under executed settlements.
In terms of strategic developments, SCE filed its 2025 General Rate Case application in May 2023, seeking a revenue requirement of approximately $10.3 billion, a 23% increase over the 2024 requirement. The California Public Utilities Commission (CPUC) has proposed a lower requirement of $9.3 billion. Additionally, SCE has initiated a customer-funded wildfire self-insurance program, which began on July 1, 2023, to manage wildfire claims-related losses.
SCE's capital expenditures for the nine months ended September 30, 2024, totaled $4.2 billion, up from $4.0 billion in the same period of 2023. The company anticipates significant future investments, particularly in transmission projects, with forecasts ranging from $32.2 billion to $37.5 billion for the 2024-2028 period.
Overall, while Edison International and SCE have shown improved financial performance, they continue to navigate the complexities of wildfire-related liabilities and regulatory challenges.
About SOUTHERN CALIFORNIA EDISON Co
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