At September 30, 2022, SCE had cash on hand of $90 million.
At September 30, 2022, SCE had approximately $1.8 billion available
under its $3.4 billion revolving credit facility. In May 2022, SCE
extended its credit facility through May 2026, pursuant to an
option to extend, and may extend its credit facility for one
additional year with the lenders' approval. The aggregate maximum
principal amount under the SCE revolving credit facility may be
increased up to $4.0 billion, provided that additional lender
commitments are obtained. For further details, see "Notes to
Consolidated Financial Statements—Note 5. Debt and Credit
Agreements." At September 30, 2022, SCE had $1.1 billion
outstanding commercial paper, net of discount, at a
weighted-average interest rate of 3.82%.
SCE may finance balancing account undercollections and working
capital requirements to support operations and capital expenditures
with commercial paper, its credit facilities or other borrowings,
subject to availability in the bank and capital markets. As
necessary, SCE will utilize its available liquidity, capital market
financings, other borrowings or parent company contributions to SCE
equity in order to meet its obligations as they become due,
including costs related to the 2017/2018 Wildfire/Mudslide Events.
For further information, see "Management Overview—Southern
California Wildfires and Mudslides."
SCE's credit facilities and term loan require a debt to total
capitalization ratio as defined in the applicable agreements of
less than or equal to 0.65 to 1. At September 30, 2022, SCE's debt
to total capitalization ratio was 0.56 to 1.
At September 30, 2022, SCE was in compliance with all financial
covenants that affect access to capital.
Wildfire Related Regulatory
2021 General Rate Case Wildfire Mitigation Memorandum Account
In March 2021, SCE made its 2021 GRC track 3 filing with the CPUC.
In its filing, SCE requested reasonableness review of approximately
$1.2 billion of wildfire mitigation costs incurred prior to 2021,
consisting of $476 million of incremental operation and maintenance
expenses, and $679 million of incremental capital expenditures.
In June 2022, the CPUC issued a decision that authorized SCE to
recover $385 million of incremental operation and maintenance
expense and approved $465 million of incremental capital
expenditures as reasonable. SCE did not obtain a determination of
reasonableness for an additional $197 million of capital
expenditures, associated with construction in progress, plant
assets and installation of current limiting fuses, portions of
which were defective. SCE has the opportunity to support its
request for these costs with additional information in future
SCE is seeking recovery of $35 million, after accounting for a $10
million deductible, for vegetation management-related operations
and maintenance expenses not approved in this proceeding. These
increased costs are tracked in a "Z-Factor" memorandum account for
vegetation management line clearance costs related to Senate Bill
247, which went into effect January 1, 2020, and requires that SCE
to pay line clearance tree trimmers the prevailing wage of
qualified electrical workers.
The decision did not find reasonable certain capital expenditures
related to vegetation management software purchased by SCE. As a
result of the decision, in June 2022, SCE recorded a $17 million
impairment of utility property, plant and equipment.
The decision resulted in a revenue requirement of approximately
$400 million including a $15 million 2020 revenue requirement for
capital expenditures previously found reasonable by the CPUC. The
approved revenue requirements are required to be amortized over a
36-month period. SCE expects to seek recovery of the approved
capital expenditures in a