EDISON INTERNATIONAL

SCE

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 2024, 2023, and 2022:

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, accrued 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 2024 represents payments of $779 million for 2017/2018 Wildfire/Mudslide Events and $361 million for Other Wildfire Events, partially offset by an increase in wildfire estimated losses of $743 million. The amount in 2023 represents payments of $1.0 billion for 2017/2018 Wildfire/Mudslide Events and $190 million for Other Wildfire Events, partially offset by an increase in wildfire estimated losses of $814 million.

4 Includes nuclear decommissioning trusts. See “Nuclear Decommissioning Activities” below for further information. The amount in 2024 also includes cash received from customers to fund certain construction projects and cash received for a state incentive program to pass on to customers. The amount in 2023 also includes outflow from the increases in wildfire insurance receivables.

Net cash provided by operating activities was impacted by the following:

Net income and non-cash items increased in 2024 by $231 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, partially offset by higher interest expense.

The net outflows in cash resulting from working capital were $221 million and $762 million in 2024 and 2023, respectively. Net cash outflows for both 2024 and 2023 were primarily due to increases in unbilled revenue and power procurement related receivables. The higher outflow in 2023 was also due to payments of power purchase contracts that had high gas prices from December 2022, as well as an increase in customer receivables due to various customer protection programs in place.

Net cash provided by regulatory assets and liabilities, including changes in net over or undercollections recorded in balancing accounts, was $1,219 million and $576 million in 2024 and 2023, respectively. SCE has a number of balancing and memorandum accounts, which impact cash flows based on differences between timing of collection through rates and incurring expenditures. Cash inflows in 2024 and 2023 were both due to recovery of prior year undercollections. The higher inflow in 2024 compared to 2023 was driven by higher prior year undercollections implemented into rates in 2024, higher sales volume due to hotter weather in 2024, and higher overcollection from funds collected for customer-funded wildfire self-insurance in 2024.

Net Cash Provided by Financing Activities

The following table summarizes cash provided by financing activities for 2024, 2023, and 2022. Issuances of debt is discussed in "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

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 $5.7 billion, $5.4 billion, and $5.8 billion for 2024, 2023, and 2022, respectively, primarily related to transmission, distribution and generation investments. SCE had a net redemption of nuclear decommissioning trust investments of $121 million, $180 million, and $123 million in 2024, 2023, and 2022, respectively. See "Nuclear Decommissioning Activities" below for further discussion.

Nuclear Decommissioning Activities

SCE's consolidated statements of cash flows include nuclear decommissioning activities, which are reflected in the following line items:

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 ($222 million, $229 million, and 189 million in 2024, 2023, and 2022, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($214 million, $222 million, and $201 million in 2024, 2023, and 2022, respectively). The net cash outflow in 2024 also primarily includes $19 million of tax benefits received and a $30 million disallowance under the 2021 NDCTP (For further details, see "—Decommissioning of San Onofre), both contributed by SCE to the decommissioning trust.

The table below sets forth condensed historical cash flow from operations for Edison International Parent and Other, including intercompany eliminations.

Net Cash Used in Operating Activities

Net cash used in operating activities increased by $89 million in 2024 compared to 2023, primarily due to cash outflows of $318 million in 2024 and $280 million in 2023 for interest and operating costs. Additionally, there was $51 million cash outflow in 2024 related to a California state income tax payment.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was as follows: