EDISON INTERNATIONAL

Operating Revenue

An increase in operating revenue of $897 million is primarily due to:

•A net decrease in revenues of $1,231 million related to lower expenses that are passed through to customers. The decrease in pass-through revenues are offset by decreases in the following:

◦Purchased power and fuel expense of $889 million

◦Operation and maintenance expense of $482 million

◦Wildfire-related claims, net of insurance recoveries of $37 million

These pass-through decreases are partially offset by increases in the following:

◦Income tax expense of $43 million

◦Interest expense of $39 million

◦Property and other taxes of $38 million

◦Other income, net, of $37 million

◦Depreciation and amortization expense of $17 million

•An increase in CPUC-related revenues of $320 million primarily due to the escalation mechanism set forth in the 2021 GRC decision.

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $889 million, primarily lower prices and volumes for both purchased power and gas, partially offset by hedging activities (offset in "Operating Revenue" above).

Operation and Maintenance

A decrease in operation and maintenance expense of $588 million is primarily due to:

•A net decrease in expense of $482 million related to the operating expenses that are passed through to customers and offset in "Operating Revenue" above. The decrease is mainly driven by:

◦$463 million due to lower previously deferred wildfire mitigation and emergency restoration costs authorized for recovery in 2023 than in 2022

◦$218 million lower insurance costs due to SCE's expanded use of customer-funded self-insurance since July 2023

◦$79 million lower uncollectible accounts expense primarily due to the recognition of $109 million previously deferred uncollectible accounts expense in 2022

◦$56 million lower transmission access charges

The decreases are partially offset by:

◦$209 million previously deferred wildfire insurance premium authorized for recovery in 2023

◦$125 million higher public purpose program expenses

•The 2022 charges of $95 million related to the CPUC's decision on SCE's Upstream Lighting Program, consisting of $76 million in disallowed costs and $19 million in fines

•$40 million lower uncollectible accounts expense due to expense recognized in 2022 not subject to cost recovery

•The 2023 recognition of a $30 million probable disallowance related to the 2021 NDCTP

Wildfire-related Claims, Net of Insurance Recoveries

Charges for wildfire-related claims, net of insurance recoveries, were $665 million and $1.3 billion in 2023 and 2022, respectively, related to the 2017/2018 Wildfire/Mudslide Events and Other Wildfire Events.

Depreciation and Amortization

An increase in depreciation and amortization expense of $74 million due to an increase of $57 million primarily driven by higher plant balances and $17 million of pass-through costs (offset in "Operating Revenue" above).

Property and Other Taxes

An increase in property and other taxes of $69 million due to an increase of $31 million primarily related to higher assessed property values and $38 million of pass-through costs (offset in "Operating Revenue" above).

Impairment, net of other operating income

Impairments were recorded in 2022, of which $17 million related to disallowed capital expenditure and $47 million related to a settlement agreement between SCE and TURN in the CSRP proceeding.

Interest Expense

An increase in interest expense of $351 million due to an increase of $312 million primarily related to higher interest rates on long-term debt and balancing account overcollections and additional long-term borrowings, and $39 million of pass-through costs primarily related to AB 1054 Excluded Capital Expenditures financed through securitization (offset in "Operating Revenue" above).

Other income, net

An increase in other income, net of $160 million primarily due to higher interest rates applied to balancing account undercollections and increased equity allowance for funds used during construction, partially offset by lower net periodic benefit income related to the non-service cost components for SCE's pension and PBOP.

Preference Stock Dividend Requirements

An increase in preference stock dividend requirements of $16 million primarily due to dividends paid on Series E preference stock at a higher rate.

An increase in tax expense of $293 million in 2023 compared to a tax benefit recorded in 2022, primarily due to higher taxable income and $42 million lower flow-through tax benefits that are passed through to customers.

Results of operations for Edison International Parent and Other include amounts from other subsidiaries that are not reportable segments, as well as intercompany eliminations.