Related-Party Transactions

12 Months Ended

Dec. 31, 2019

Edison International and SCE provide and receive various services to and from its subsidiaries and affiliates. Services provided to Edison International by SCE are priced at fully loaded cost (i.e., direct cost of good or service and allocation of overhead cost). Specified administrative services performed by Edison International or SCE employees, such as payroll and employee benefit programs, are shared among all affiliates of Edison International. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenue, operating expenses, total assets and number of employees). Edison International allocates various corporate administrative and general costs to SCE and other subsidiaries using established allocation factors.

For the years ended December 31, 2019, 2018 and 2017, SCE purchased wildfire liability insurance for premiums of $260 million, $22 million and $144 million respectively, from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International. EIS fully reinsured the exposure for these policies through the commercial reinsurance market, with reinsurance limits and premiums equal to those of the insurance purchased by SCE. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows:



	December 31,
(in millions)	2019		2018
Long-term insurance receivables due from affiliate	$	803	$	1,000
Prepaid insurance¹	10		13
Current payables due to affiliate²	—		4

¹ Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.

² Reflected in "Accounts payable" on SCE's consolidated balance sheets.

The amortization expense for wildfire-related insurance premiums paid to EIS were $173 million, $140 million and $13 million for the years ended December 31, 2019, 2018 and 2017 respectively.