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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion
The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:
 
 
March 31, 2018
 
December 31, 2017
(in millions)
 
Carrying
Value1
 
Fair
Value
 
Carrying
Value1
 
Fair
Value
Edison International
 
$
13,846

 
$
14,940

 
$
12,123

 
$
13,760

SCE
 
$
12,108

 
$
13,225

 
$
10,907

 
$
12,547


1  
Carrying value is net of debt issuance costs.
Southern California Edison  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value by Level
The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
 
March 31, 2018
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
15

 
$
82

 
$
(2
)
 
$
95

Other
12

 
21

 
—

 
—

 
33

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,520

 
—

 
—

 
—

 
1,520

Fixed Income3
1,076

 
1,639

 
—

 
—

 
2,715

Short-term investments, primarily cash equivalents
59

 
108

 
—

 
—

 
167

Subtotal of nuclear decommissioning trusts4
2,655

 
1,747

 
—

 
—

 
4,402

Total assets
2,667

 
1,783

 
82

 
(2
)
 
4,530

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
3

 
1

 
(3
)
 
1

Total liabilities
—

 
3

 
1

 
(3
)
 
1

Net assets
$
2,667

 
$
1,780

 
$
81

 
$
1

 
$
4,529

 
December 31, 2017
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
9

 
$
102

 
$
(1
)
 
$
110

Other
495

 
—

 
—

 
—

 
495

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,596

 
—

 
—

 
—

 
1,596

Fixed Income3
1,065

 
1,665

 
—

 
—

 
2,730

Short-term investments, primarily cash equivalents
101

 
72

 
—

 
—

 
173

Subtotal of nuclear decommissioning trusts4
2,762

 
1,737

 
—

 
—

 
4,499

Total assets
3,257

 
1,746

 
102

 
(1
)
 
5,104

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
2

 
1

 
(2
)
 
1

Total liabilities
—

 
2

 
1

 
(2
)
 
1

Net assets
$
3,257

 
$
1,744

 
$
101

 
$
1

 
$
5,103

1 
Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2 
Approximately 70% and 69% of SCE's equity investments were in companies located in the United States at March 31, 2018 and December 31, 2017, respectively.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $113 million and $102 million at March 31, 2018 and December 31, 2017, respectively.
4 
Excludes net payables of $68 million and $59 million at March 31, 2018 and December 31, 2017, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.
Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities
The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:
 
 
Three months ended March 31,
(in millions)
 
2018
 
2017
Fair value of net assets (liabilities) at beginning of period
 
$
101

 
$
(1,089
)
Total realized/unrealized gains (losses):
 
 
 
 
Included in regulatory assets and liabilities1
 
(20
)
 
(77
)
Fair value of net assets (liabilities) at end of period2
 
$
81

 
$
(1,166
)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
5

 
$
(102
)

1 
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
2 
During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities.
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities
The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:
 
Fair Value (in millions)
 
Significant
 
 
Assets
 
Liabilities
Valuation Technique(s)
Unobservable Input
Range
Congestion revenue rights
 
 
 
 
 
March 31, 2018
$
81

 
$
—

Market simulation model and auction prices
Load forecast
5,002 MW - 22,970 MW
 
 
 
 
 
Power prices1
$(15.00) - $120.00
 
 
 
 
 
Gas prices2
$2.46 - $4.37
 
 
 
 
 
CAISO CRR Auction prices
$(6.22) - $8.66
December 31, 2017
$
102

 
—

Market simulation model and auction prices
Load forecast
5,002 MW - 22,970 MW
 
 
 
 
 
Power prices1
$(15.00) - $120.00
 
 
 
 
 
Gas prices2
$2.46 - $4.37
 
 
 
 
 
CAISO CRR Auction prices
$(9.41) - $8.66

1 
Prices are in dollars per megawatt-hour.
2 
Prices are in dollars per million British thermal units.