Regulated Electric Utilities

credit / rates affecting interest expense

“Interest Expense A net decrease in interest expense of $368 million was primarily due to: • $171 million benefit related to cost recoveries authorized under the TKM Settlement Agreement; • $243 million benefit related to cost recoveries under the Woolsey Settlement Agreement; partially offset by: • $38 million pass-through expense mainly associated with wildfire mitigation efforts and utility owned energy storage projects (offset in "Operating Revenue" above); • $8 million higher interest expense from higher borrowings.”

EIX 10-K

capital investment / capacity affecting capex

“SCE recorded net charges of $76 million ($39 million after-tax), primarily due to an $88 million impairment of utility property, plant and equipment associated with historical capital expenditures disallowed in the final decision, mainly related to the rooftop solar photovoltaic program.”

EIX 10-K

demand / volume affecting orders

“We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about affected account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.”

AVA 10-K