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Revenue
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
•
Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenues or penalties related to incentive mechanisms, other operating revenue and regulatory charges or disallowances.
•
Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs) and certain operation and maintenance expenses. SCE earns no return on these activities.
The following table is a summary of SCE's revenue:
 
Years ended December 31,
 
2019
2018
2017
(in millions)
Earning Activities
Cost- Recovery Activities
Total Consolidated
Earning Activities
Cost- Recovery Activities
Total Consolidated
Earning Activities
Cost-Recovery Activities
Total Consolidated
Revenues from contracts with customers1,2
$
6,512

$
4,655

$
11,167

$
6,519

$
5,611

$
12,130

*

*

*

Alternative revenue programs and other operating revenue
166

973

1,139

41

440

481

*

*

*

Total operating revenue
$
6,678

$
5,628

$
12,306

$
6,560

$
6,051

$
12,611

$
6,611

$
5,643

$
12,254

* SCE adopted new accounting guidance as of January 1, 2018. Prior period amounts have not been adjusted under the modified retrospective method.
1 
In the absence of a 2018 GRC decision, SCE recorded CPUC revenue in 2018 and the first quarter of 2019 based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform. SCE recorded the impact of the 2018 GRC final decision in the second quarter of 2019, including a $265 million reduction in revenue. These revenue adjustments are included in "Revenues from contracts with customers." For further information, see Note 1.
2 
At December 31, 2019 and 2018, SCE's receivables related to contracts from customers were both $1.1 billion, which included accrued unbilled revenue of $488 million and $482 million, respectively.