Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs of removal of nuclear assets are expected to be funded from independent decommissioning trusts, which currently receive contributions of approximately $23 million per year through SCE customer rates. Contributions to the decommissioning trusts are reviewed every three years by the CPUC. If additional funds are needed for decommissioning, it is probable that the additional funds will be recoverable through customer rates. Funds collected, together with accumulated earnings, will be utilized solely for decommissioning. The CPUC has set certain restrictions related to the investments of these trusts.

The following table sets forth amortized cost and fair value of the trust investments:



		Amortized Cost				Fair Value
(in millions)	Longest Maturity Dates	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Stocks	—	$	953	$	865	$	2,090	$	1,899
Municipal bonds	2051	583		625		714		756
U.S. government and agency securities	2041	489		516		549		580
Corporate bonds	2054	310		259		382		317
Short-term investments and receivables/payables	One-year	71		38		75		40
Total		$	2,406	$	2,303	$	3,810	$	3,592

Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Proceeds from sales of securities (which are reinvested) were $496 million and $524 million for the three months ended June 30, 2012 and 2011, respectively, and $1.1 billion for both the six months ended June 30, 2012 and 2011. Unrealized holding gains, net of losses, were $1.4 billion and $1.3 billion at June 30, 2012 and December 31, 2011, respectively.

The following table sets forth a summary of changes in the fair value of the trust:



	Three months ended June 30,						Six months ended June 30,
(in millions)	2012			2011			2012			2011
Balance at beginning of period	$	3,853		$	3,619		$	3,592		$	3,480
Gross realized gains	15			12			40			35
Gross realized losses	(1		)	—			(5		)	—
Unrealized gains (losses) – net	(67		)	4			116			106
Other-than-temporary impairments	(19		)	(4		)	(23		)	(13		)
Interest, dividends, contributions and other	29			26			90			49
Balance at end of period	$	3,810		$	3,657		$	3,810		$	3,657

Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on operating revenue or earnings.