EDISON INTERNATIONAL

Operating Revenue

Higher operating revenue of $1,272 million is primarily due to:

•An increase in CPUC-related revenues of $617 million primarily due to higher revenue authorized in Track 4 and an increase in the authorized rate of return resulting from the cost of capital adjustment mechanism. See "Management Overview—Cost of Capital" for more information.

•An increase in operating revenues of $51 million primarily due to recognition of previously unrecognized return on rate base related to emergency restoration related capital expenditures.

•A net increase in revenues of $604 million related to higher expenses that are passed through to customers. The increase in pass-through revenues is primarily offset by increases in the following:

◦Operation and maintenance expense of $809 million

◦Depreciation and amortization expense of $111 million

◦Interest expense of $66 million

◦Property and other taxes of $28 million

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

◦Purchased power and fuel expense of $277 million

◦Income tax expense of $134 million

Purchased Power and Fuel

A decrease in purchased power and fuel costs of $277 million, primarily due to lower purchased power and gas prices, partially offset by an increase in purchased power volume and higher losses in hedging activities (offset in "Operating Revenue" above).

Operation and Maintenance

An increase in operation and maintenance expense of $993 million is primarily due to:

•A net increase in expense of $809 million related to operating expenses that are passed through to customers and offset in "Operating Revenue" above. The increase is mainly driven by:

◦$462 million due to higher previously deferred wildfire mitigation, vegetation management, and emergency restoration costs authorized for recovery in 2024 than in 2023. See "Liquidity and Capital Resources—SCE—Regulatory Proceedings" for more information

◦$301 million higher vegetation management expenses

◦$196 million higher public purpose program expenses

◦$144 million higher uncollectible accounts expense

◦$116 million higher transmission access charges

These increases are partially offset by:

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

◦$195 million lower insurance costs due to SCE's expanded use of customer-funded self-insurance since July 2023

•$90 million higher expenses primarily related to plant maintenance

•$62 million higher wildfire mitigation expenses

•Severance costs of $53 million recorded in 2024 due to current and probable reductions in workforce

•$25 million higher expenses related to IT software maintenance and capital-related expense

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

•The 2023 recognition of $17 million related to customer cancellations of certain ECS data services

Wildfire-related Claims, Net of Insurance Recoveries

Charges for wildfire-related claims, net of insurance recoveries, were $647 million and $665 million in 2024 and 2023, respectively, related to the 2017/2018 Wildfire/Mudslide Events and Other Wildfire Events. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Wildfire Insurance Fund Expense

A decrease in wildfire insurance fund amortization expense of $67 million due to the change in the estimated life of the Wildfire Insurance Fund in the beginning of 2024, which increased the amortization period of SCE's Wildfire Insurance Fund contributions assets. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies" for further information.

Depreciation and Amortization

An increase in depreciation and amortization expense of $232 million due to an increase of $121 million primarily driven by higher plant balances and $111 million of pass-through costs (offset in "Operating Revenue" above). The pass-through costs are mainly related to emergency restoration and wildfire mitigation activities.

Property and Other Taxes

An increase in property and other taxes of $54 million due to an increase of $26 million primarily related to higher assessed property values and $28 million of pass-through costs (offset in "Operating Revenue" above).

Interest Expense

An increase in interest expense of $219 million due to an increase of $153 million primarily related to higher interest rates on long-term debt and balancing account overcollections, and additional long-term borrowings, and $66 million of pass-through costs mainly related to emergency restoration activities and AB 1054 Excluded Capital Expenditures financed through securitization (offset in "Operating Revenue" above).

Preference Stock Dividend Requirements

An increase in preference stock dividend requirements of $52 million primarily due to additional preference stock outstanding.

A decrease in income tax expense of $64 million, primarily due to $97 million higher flow-through tax benefits that are passed through to customers, partially offset by an increase in tax expense on pre-tax income. See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rate.