EDISON INTERNATIONAL

In addition to the investments SCE is making as part of its WMP, SCE also uses Public Safety Power Shutoffs ("PSPS") to proactively de-energize power lines as a last resort to mitigate the risk of catastrophic wildfires during extreme weather events.

In June 2021, the CPUC issued a final decision which, among other things, will reduce future authorized revenue for the volumetric reductions in electricity sales resulting from PSPS events initiated after June 2021 until the CPUC determines that improvements in the PSPS program have been made.

In June 2022, the SED issued an Administrative Enforcement Order ("AEO") against SCE proposing penalties of $10 million for alleged noncompliance with customer notification requirements related to PSPS events in 2020. In October 2022, the SED and SCE reached a settlement agreement under which SCE agreed to a penalty of $7 million, inclusive of a $6 million disallowance of PSPS program-related costs. SCE also agreed to complete certain corrective actions to resolve the AEO. SCE certified completion of the AEO corrective actions in June 2023. SCE did not admit wrongdoing or liability as part of the settlement.

In April 2023, the SED issued a Notice of Violation to SCE for noncompliance with customer notification and other CPUC requirements related to PSPS events in 2021. In November 2024, the CPUC approved an Administrative Consent Order and Agreement between SED and SCE to resolve all issues involving the 2021 PSPS events, resulting in financial penalties totaling $2.4 million.

SCE initiated PSPS 14 times in 2025 resulting in approximately 1.4 billion customer minutes interrupted. Of the 2025 PSPS events, two were initiated in January 2025, resulting in approximately 1.0 billion customer minutes interrupted primarily in Los Angeles, Riverside, San Bernardino, and Ventura counties under conditions of severe windstorm events. In June 2025, the SED issued a Notice of Violation to SCE for noncompliance with customer notification and other CPUC requirements relating to PSPS events in January 2025 and in December 2025, issued a PSPS citation proposing financial penalties of $7.9 million. SCE agreed to accept the penalty in January 2026.

SCE has made and continues to make significant investments and progress in improving its PSPS protocols, including through increased automation of customer notifications. However, SCE may be subject to additional penalties for noncompliance with customer notification and post event reporting requirements related to PSPS events.