Tear Sheet: TKM Settlement Agreement Is Potentially Supportive For Edison International's Credit Quality

On Aug. 29, 2024, Edison International (Edison) subsidiary Southern California Edison Co. (SCE) reached a settlement agreement with the California Public Advocates Office on its cost recovery application related to the 2017/2018 Thomas Fire, Koenigstein Fire, and Montecito Mudslides (TKM) events. If approved by the California Public Utilities Commission (CPUC) SCE will be authorized to recover 60%, or approximately $1.6 billion of approximately $2.7 billion of losses, including approximately $1.3 billion of uninsured claims, and about $300 million of legal and financing costs paid as of May 31, 2024. SCE will also be authorized to recover 60% of losses paid after May 31, 2024, except for about $125 million of such costs previously waived under a prior agreement with the

...Rating Component Scores Foreign currency issuer credit rating ###/Stable/A-2 Local currency issuer credit rating ###/Stable/A-2 Business risk Strong Country risk Very Low Industry risk Very Low Competitive position Satisfactory Financial risk Significant Cash flow/leverage Significant Anchor ### Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ###...

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