SOUTHERN CALIFORNIA EDISON Co
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
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FY2023 · Filed Feb 22, 2024
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Historical Cash Flows
SCE
| · · · · · · · · · | ||||||
|---|---|---|---|---|---|---|
| · · Years ended December 31, | ||||||
| (in millions) · 2023 · 2022 · 2021 | ||||||
| Net cash provided by operating activities | | $3,681 | | $3,319 | | $158 |
| Net cash provided by financing activities | | 1,182 | | 2,724 | | 5,218 |
| Net cash used in investing activities | | (5,231) | | (5,557) | | (5,152) |
| Net (decrease) increase in cash, cash equivalents and restricted cash | | $(368) | | $486 | | $224 |
Net Cash Provided by Operating Activities
The following table summarizes major categories of net cash provided by operating activities as provided in more detail in SCE's consolidated statements of cash flows for 2023, 2022 and 2021:
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · Years ended December 31, · · Change | |||||||||||||
| (in millions) · 2023 · 2022 · 2021 · 2023/2022 | |||||||||||||
| Net income | | $1,597 | | 954 | $935 | | |||||||
| Non-cash items1 | | 2,979 | | 2,701 | | 2,534 | | ||||||
| Subtotal | | 4,576 | | 3,655 | | 3,469 | $921 | ||||||
| Contributions to Wildfire Insurance Fund | | (95) | | (95) | | | (95) | | — | ||||
| Changes in cash flow resulting from working capital2 | | (762) | | 327 | | (705) | | (1,089) | |||||
| Regulatory assets and liabilities | | 576 | | (51) | | (720) | | 627 | |||||
| Wildfire related claims3 | | | (410) | | | (56) | | | (2,648) | | | (354) | |
| Proceeds from Morongo Transmission LLC | | | — | | | — | | | 400 | | | — | |
| Other noncurrent assets and liabilities4 | | (204) | | (461) | | 457 | | 257 | |||||
| Net cash provided by operating activities | | $3,681 | | $3,319 | | $158 | | $362 | | ||||
| 1 | Non-cash items include depreciation and amortization, allowance for equity during construction, impairment and other income, Wildfire Insurance Fund amortization expense, deferred income taxes and other. |
| 2 | Changes in working capital items include receivables, unbilled revenue, inventory, amortization of prepaid expenses, accounts payable, tax receivables and payables, derivative assets and liabilities and other current assets and liabilities. |
| 3 | The amount in 2023 represents payments of $1.0 billion for 2017/2018 Wildfire/Mudslide Events and $190 million for Post-2018 Wildfires, partially offset by an increase in wildfire estimated losses of $814 million. The 2022 amount includes payments of $1.9 billion settlements on 2017/2018 Wildfire/Mudslide Events claims, partially offset by an increase of estimated losses of $1.3 billion on 2017/2018 Wildfire/Mudslide Events and $0.6 billion on Post-2018 Wildfires. |
| 4 | Includes nuclear decommissioning trusts. See “Nuclear Decommissioning Activities” below for further information. Also includes changes in wildfire-related insurance receivables. |
Net cash provided by operating activities was impacted by the following:
Net income and non-cash items increased in 2023 by $921 million from 2022 primarily due to higher revenue due to the escalation mechanism as set forth in the 2021 GRC final decision and higher interest income on balancing account undercollections and lower wildfire estimated losses, partially offset by higher interest expense.
Net cash (outflow) inflow for working capital was $(762) million and $327 million in 2023 and 2022, respectively. The net cash outflow for working capital for 2023 was primarily due to decrease in payables of $402 million driven by payments on power purchase contracts and a decrease in gas price from December 2022, and increases in customer receivables and unbilled revenue of approximately $300 million due to various customer protection programs in place. The net cash inflow for working capital for 2022 was mainly due to an increase in payables of $343 million driven by
higher payables on power purchase contracts and a net decrease of $24 million in customer receivables and unbilled revenue primarily from $387 million of CAPP funds received in 2022, partially offset by lower collections.
Net cash used in regulatory assets and liabilities, including the increase in net undercollections of balancing and memorandum accounts, was affected by differences between timing of collection of amounts through rates and accrual expenditures. Cash inflows of $576 million in 2023 were primarily due to recovery of prior year undercollections, partially offset by current year undercollections due to lower sales volume driven by mild weather. Cash outflows of $51 million in 2022 were primarily due to increased undercollections driven by higher energy prices and power purchase load, partially offset by recovery of prior year undercollections and current year higher sales volume and average rates driven by extreme heat in California.
Net Cash Provided by Financing Activities
The following table summarizes cash provided by financing activities for 2023, 2022 and 2021. Issuances of debt is discussed in "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Years ended December 31, | |||||||||
| (in millions) · · 2023 · 2022 · 2021 | |||||||||
| Issuances of long-term debt, including premium/discount and net of issuance costs | | $3,588 | | $5,032 | | $5,411 | |||
| Long-term debt repaid or repurchased | | | (2,098) | | | (385) | | | (1,037) |
| Short-term debt borrowed | | | 706 | | — | | 2,654 | ||
| Short-term debt repaid | | | (1,051) | | | (1,543) | | | (2,255) |
| Commercial paper borrowing (repayments), net | | | 963 | | | (406) | | | (124) |
| Preference stock issued, net of issuance cost | | | 542 | | | — | | | — |
| Capital contributions from Edison International Parent | | | — | | | 1,400 | | | 1,633 |
| Payment of common stock dividends to Edison International Parent | | | (1,400) | | (1,300) | | (975) | ||
| Payment of preference stock dividends | | | (117) | | (110) | | (106) | ||
| Other | | | 49 | | 36 | | 17 | ||
| Net cash provided by financing activities | | $1,182 | | $2,724 | | $5,218 | |||
Net Cash Used in Investing Activities
Cash flows used in investing activities are primarily due to capital expenditures and funding of nuclear decommissioning trusts. Cash used in capital expenditures were $5.4 billion, $5.8 billion and $5.5 billion for 2023, 2022 and 2021, respectively, primarily related to transmission, distribution and generation investments. SCE had a net redemption of nuclear decommissioning trust investments of $180 million, $123 million and $256 million in 2023, 2022 and 2021, respectively. See "Nuclear Decommissioning Activities" below for further discussion.
Nuclear Decommissioning Activities
SCE's statements of cash flows include nuclear decommissioning activities, which are reflected in the following line items:
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Years ended December 31, | |||||||||
| (in millions) · · 2023 · 2022 · 2021 | |||||||||
| Net cash used in operating activities: | | | | | | | | | |
| Net earnings (losses) from nuclear decommissioning trust investments | | $42 | | $78 | | $(31) | |||
| SCE's decommissioning costs | | (229) | | (189) | | (238) | |||
| Net cash provided by investing activities: | | | | | | | |||
| Proceeds from sale of investments | | | 4,597 | | | 4,177 | | | 3,961 |
| Purchases of investments | | (4,417) | | (4,054) | | (3,705) | |||
| Net cash (outflow) inflow | | $(7) | | $12 | | $(13) | |||
Net cash used in operating activities relates to interest and dividends less administrative expenses, taxes and SCE's decommissioning costs. Investing activities represent the purchase and sale of investments within the nuclear decommissioning trusts, including the reinvestment of earnings from nuclear decommissioning trust investments.
Funds for decommissioning costs are requested from the nuclear decommissioning trusts one month in advance. Decommissioning disbursements are funded from sales of investments of the nuclear decommissioning trusts. The net cash impact reflects timing of decommissioning payments ($229 million, $189 million and $238 million in 2023, 2022 and 2021, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($222 million, $201 million and $225 million in 2023, 2022 and 2021, respectively).
The table below sets forth condensed historical cash flow from operations for Edison International Parent and Other, including intercompany eliminations.
| · · · · · · · · · | ||||||||
|---|---|---|---|---|---|---|---|---|
| · · · Years ended December 31, | ||||||||
| (in millions) · · 2023 · 2022 · · 2021 | ||||||||
| Net cash used in operating activities | | $(280) | | $(103) | | $(147) | ||
| Net cash provided by financing activities | | 265 | | 157 | | 227 | ||
| Net cash (used in) provided by investing activities | | (2) | | (17) | | 1 | ||
| Net (decrease) increase in cash, cash equivalents and restricted cash | | $(17) | | $37 | | $81 | ||
Net Cash Used in Operating Activities
Net cash used in operating activities increased in 2023 by $177 million from 2022 due to:
| ● | Outflows of $280 million and $193 million from operating activities in 2023 and 2022, respectively, due to payments relating to interest and operating costs. |
|---|
| ● | $90 million cash inflow from a wildfire insurance premium received by EIS in 2022. |
|---|
Net Cash Provided by Financing Activities
Net cash provided by financing activities was as follows:
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · Years ended December 31, | |||||||||
| (in millions) · · 2023 · 2022 · 2021 | |||||||||
| Dividends paid to Edison International common shareholders | | $(1,112) | | $(1,050) | | $(988) | |||
| Dividends paid to Edison International preferred shareholders | | | (108) | | | (99) | | | (35) |
| Dividends received from SCE | | 1,400 | | 1,300 | | 975 | |||
| Capital contributions to SCE | | — | | (1,400) | | (1,633) | |||
| Issuance of common stock | | 20 | | 13 | | 32 | |||
| Issuance of preferred stock, net of issuance costs | | | — | | | — | | | 1,977 |
| Long-term debt issuance, net of discount and issuance costs | | 1,533 | | 939 | | — | |||
| Long-term debt repayments | | (400) | | (700) | | — | |||
| Issuance of short-term debt | | 370 | | 1,000 | | — | |||
| Repayments of short-term debt | | (1,356) | | — | | — | |||
| Preferred stock repurchased | | | (289) | | | — | | | — |
| Commercial paper financing, net | | 139 | | 89 | | (130) | |||
| Other | | 68 | | 65 | | 29 | |||
| Net cash provided by financing activities | | $265 | | $157 | | $227 | |||
Net Cash (Used in) Provided by Investing Activities
Net cash used in investing activities in 2022 included a net cash outflow of $17 million for a business acquisition at Edison Energy.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.