Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

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:

	September 30, 2019				December 31, 2018
(in millions)	Carrying Value1		Fair Value2		Carrying Value1		Fair Value2
Edison International	$	17,545	$	19,514	$	14,711	$	14,844
SCE	15,208		17,081		12,971		13,180

¹   Carrying value is net of debt issuance costs.

² The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.

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:

	September 30, 2019
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	10	$	70	$	(16	)	$	64
Money market fund and other	50		14		—		—			64
Nuclear decommissioning trusts:
Stocks2	1,619		—		—		—			1,619
Fixed Income3	873		1,967		—		—			2,840
Short-term investments, primarily cash equivalents	107		50		—		—			157
Subtotal of nuclear decommissioning trusts4	2,599		2,017		—		—			4,616
Total assets	2,649		2,041		70		(16		)	4,744
Liabilities at fair value
Derivative contracts	—		17		7		(24		)	—
Total liabilities	—		17		7		(24		)	—
Net assets	$	2,649	$	2,024	$	63	$	8		$	4,744

	December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	32	$	141	$	—		$	173
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,382		—		—		—			1,382
Fixed Income3	1,001		1,665		—		—			2,666
Short-term investments, primarily cash equivalents	120		95		—		—			215
Subtotal of nuclear decommissioning trusts4	2,503		1,760		—		—			4,263
Total assets	2,512		1,813		141		—			4,466
Liabilities at fair value
Derivative contracts	—		13		—		(7		)	6
Total liabilities	—		13		—		(7		)	6
Net assets	$	2,512	$	1,800	$	141	$	7		$	4,460

¹  Represents the netting of assets and liabilities under master netting agreements and cash collateral.

²  Approximately 72% and 71% of SCE's equity investments were in companies located in the United States at September 30, 2019 and December 31, 2018, respectively.

³  Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $64 million and $67 million at September 30, 2019 and December 31, 2018, respectively.

⁴ 

Excludes net payables of $137 million and $143 million at September 30, 2019 and December 31, 2018, 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 September 30,					Nine months ended September 30,
(in millions)	2019		2018			2019			2018
Fair value of net assets at beginning of period	$	63	$	52		$	141		$	101
Total realized/unrealized losses1	—		(21		)	(78		)	(70		)
Fair value of net assets at end of period2	$	63	$	31		$	63		$	31
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	30	$	7		$	27		$	7

¹  Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.

² 

There were no material transfers into or out of Level 3 during 2019 and 2018.

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	Range
	Assets		Liabilities		Valuation Technique(s)	Unobservable Input	(Weighted Average)
Congestion revenue rights
September 30, 2019	$	70	$	7	Auction prices	CAISO CRR auction prices	$(3.33) - $11.58 ($0.96)
December 31, 2018	141		—		Auction prices	CAISO CRR auction prices	$(7.41) - $41.52 ($1.62)