Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets Included on the Consolidated Balance Sheets

SCE's regulatory assets included on the consolidated balance sheets are:

	December 31,
(in millions)	2018		2017
Current:
Regulatory balancing accounts	$	814	$	484
Power contracts1	305		203
Other	14		16
Total current	1,133		703
Long-term:
Deferred income taxes, net of liabilities	3,589		3,143
Pensions and other postretirement benefits	271		271
Power contracts1	700		799
Unamortized investments, net of accumulated amortization2	118		123
San Onofre3	—		72
Unamortized loss on reacquired debt	153		168
Regulatory balancing accounts	360		143
Environmental remediation	134		144
Other	55		51
Total long-term	5,380		4,914
Total regulatory assets	$	6,513	$	5,617

Regulatory Liabilities Included on the Consolidated Balance Sheets

SCE's regulatory liabilities included on the consolidated balance sheets are:

	December 31,
(in millions)	2018		2017
Current:
Regulatory balancing accounts	$	1,080	$	1,009
Energy derivatives	158		74
Other1	294		38
Total current	1,532		1,121
Long-term:
Costs of removal	2,769		2,741
Re-measurement of deferred taxes	2,776		2,892
Recoveries in excess of ARO liabilities	1,130		1,575
Regulatory balancing accounts	1,344		1,316
Other postretirement benefits	185		26
Other1	125		64
Total long-term	8,329		8,614
Total regulatory liabilities	$	9,861	$	9,735

¹ During 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirement adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded regulatory liabilities primarily associated with these adjustments. The CPUC has authorized the establishment of a GRC memorandum account, which will make the 2018 revenue requirement ultimately adopted by the CPUC effective as of January 1, 2018. For further information, see Note 1.

Schedule of Regulatory Balancing Accounts

The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:

	December 31,
(in millions)	2018			2017
Asset (liability)
Energy resource recovery account1	$	815		$	464
New system generation balancing account	(74		)	(197		)
Public purpose programs and energy efficiency programs	(1,200		)	(1,145		)
Base revenue requirement balancing account2	(628		)	(200		)
Tax accounting memorandum account and pole loading balancing account2	28			(259		)
DOE litigation memorandum account	(69		)	(156		)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(81		)	(46		)
FERC balancing accounts	(180		)	(205		)
Catastrophic event memorandum account	144			102
Wildfire expense memorandum account3	128			—
Other	(133		)	(56		)
Liability	$	(1,250	)	$	(1,698	)

¹ Energy resource recovery account ("ERRA") balancing account is subject to a trigger mechanism that allows SCE to request an expeditious rate change if the ERRA balancing account overcollection or undercollection either exceeds 5% of SCE's prior year generation rate revenue or exceeds 4% of SCE's prior year generation rate revenue and SCE does not expect the overcollection or undercollection to fall below 4% within 120 days. For 2019, the 4% and 5% trigger amounts are approximately $213 million and $266 million, respectively. SCE anticipates to recover the ERRA undercollection from customer in rates beginning in April 2019. For further information of ERRA trigger mechanism, see "Business—SCE—Overview of Ratemaking Process."

²   During 2018, $263 million of 2017 incremental tax benefits were reclassified from the tax accounting memorandum account to the base revenue requirement balancing account (to be refunded to customers in 2019).

³   During 2018, the CPUC established a wildfire expense memorandum account ("WEMA") to track wildfire-related costs including insurance premiums in excess of amounts that ultimately will be approved in the 2018 GRC decision. See Note 12 for further information.