SoCal Edison reports record profits of $1.619 billion in 2024 while rates continue to rise
Advocates call on lawmakers to rein in utility profits and overspending
Los Angeles, CA — Southern California Edison (SCE) reported a record $1.619 billion in 2024 profits today, a 9.8% increase from the previous year. While profits increased, SCE customer’s rates have increased by 26% in the last three years, increasing bills beyond what many customers can afford. As of February 2025, 18% of Edison customers, or 846,717, are behind on payment, with an average amount owed of $1,002. Edison also has the highest average electricity bill compared to SDG&E and PG&E, as well as the highest rate of return of 10.75%.
The rate of return is the guaranteed percentage of profit utilities earn on infrastructure investments, which is ultimately recovered through customer bills. State regulators have allowed SCE to rake in excessive profits from costly projects like overpriced power lines and wildfire mitigation equipment, encouraging unnecessary spending instead of prioritizing more effective and affordable alternatives that better serve customers.
"Southern California Edison’s record profits, coupled with the highest electricity rates and returns in California, are a glaring example of how utilities continue to profit at the expense of struggling families," said Lee Trotman, Communications Director of The Utility Reform Network (TURN). "It’s time for regulators and lawmakers to take decisive action to reduce these excessive profits and ensure that utilities are held accountable for their role in this affordability crisis. Families should not have to choose between paying their electricity bills and other basic needs."
Wildfire mitigation costs and increased infrastructure spending are two of the leading causes of rate increases but are also profitable for utilities. Customers can expect rates to increase further now that the California Public Utilities Commission (CPUC) approved Edison’s request to pass on over $1.6 billion in Thomas Fire liability costs to them, with another $5.4 billion pending for the Woolsey Fire.
SCE’s earnings report comes one week after the Senate hearing on utility affordability and skyrocketing rates, where lawmakers pressed California agencies on the role of rate-of-return and increasing profits in rapidly rising rates. With such high ROE, utilities are incentivized to overspend on expensive infrastructure projects and pass off costs to ratepayers to pad shareholder profits.
“Edison’s banner profits are the poster child for the need for its shareholders to pay the future costs of payments for California’s $21 billion wildfire fund as Senator Wahab has proposed in SB 332. Edison appears to have started the Eaton fire through its negligence, and ratepayers should not continue to pay with their homes and their money to line the pockets of the company’s shareholders.”
The utility’s reported profits for 2024 coincide with recent lobbying disclosures, revealing SCE spent $3.1 million on influencing the legislature. The CPUC will initiate a proceeding in late March to review the rate of return structure. Commissioner Darcie Houck recently recognized that the authorized returns currently granted to utilities far exceed market norms, contributing to the state’s ongoing electricity affordability crisis.
Contact: Lee Trotman • Ltrotman@turn.org • (415) 248-8446
Blake Marquez • Blake@sunstonestrategies.com • (310) 894-6690
