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Revenue
12 Months Ended
Dec. 31, 2020
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,
202020192018
(in millions)Earning ActivitiesCost- Recovery ActivitiesTotal ConsolidatedEarning ActivitiesCost- Recovery ActivitiesTotal ConsolidatedEarning ActivitiesCost-Recovery ActivitiesTotal Consolidated
Revenues from contracts with customers1,2
$6,920 $5,539 $12,459$6,512 $4,655 $11,167$6,519 $5,611 $12,130
Alternative revenue programs and other operating revenue3
5485391,0871669731,13941440481
Total operating revenue$7,468 $6,078 $13,546 $6,678 $5,628 $12,306 $6,560 $6,051 $12,611 
1    In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and first quarter of 2019 based on the 2017 authorized revenue requirements adjusted mainly 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 $289 million reduction in revenue related to 2018. These revenue adjustments are included in "Revenues from contracts with customers." See "Note 1. Summary of Significant Accounting Policies—Revenue Recognition—Regulatory Proceedings—2018 General Rate Case" for further information.
2    At December 31, 2020 and 2019, SCE's receivables related to contracts from customers were $1.5 billion and $1.1 billion, which included accrued unbilled revenue of $521 million and $488 million, respectively.
3    Includes differences between amounts billed and authorized levels for both the CPUC and FERC.