Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019
Current:
Regulatory balancing and memorandum accounts	$	1,127	$	798
Power contracts	165		189
Other	22		22
Total current	1,314		1,009
Long-term:
Deferred income taxes, net of liabilities	4,475		4,026
Pension and other postretirement benefits	12		87
Power contracts	239		434
Unamortized investments, net of accumulated amortization1	114		119
Unamortized loss on reacquired debt	133		142
Regulatory balancing and memorandum accounts	1,794		981
Environmental remediation	247		237
Other	106		62
Total long-term	7,120		6,088
Total regulatory assets	$	8,434	$	7,097

1    Relates to a regulatory asset that earns a rate of return. See below for further information.

Regulatory Liabilities Included on the Consolidated Balance Sheets

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

	December 31,
(in millions)	2020		2019
Current:
Regulatory balancing and memorandum accounts	$	471	$	883
Energy derivatives	87		80
Other	11		9
Total current	569		972
Long-term:
Costs of removal	2,595		2,674
Re-measurement of deferred taxes	2,283		2,424
Recoveries in excess of ARO liabilities	1,930		1,569
Regulatory balancing and memorandum accounts	1,062		1,261
Other postretirement benefits	671		416
Other	48		41
Total long-term	8,589		8,385
Total regulatory liabilities	$	9,158	$	9,357

Schedule of Regulatory Balancing Accounts

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

	December 31,
(in millions)	2020		2019
Asset (liability)
Energy resource recovery account	$	(89)	$	(23)
Portfolio allocation balancing account	497		537
New system generation balancing account	(10)		85
Public purpose programs and energy efficiency programs	(1,130)		(1,244)
Base revenue requirement balancing account	622		(328)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(125)		(196)
FERC balancing accounts	12		(127)
Wildfire and drought restoration accounts1	361		120
Wildfire-related memorandum accounts2	1,104		748
COVID-19-related memorandum accounts3	176		—
Other	(30)		63
Asset (Liability)	$	1,388	$	(365)

1     The wildfire and drought restoration accounts regulatory assets represent restorative costs that are recorded in a Catastrophic Event Memorandum Account ("CEMA").

2    The wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") is used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claims costs. During 2019, the CPUC approved a Wildfire Mitigation Plan memorandum account to track costs incurred to implement SCE's Wildfire Mitigation Plan that are not currently reflected in SCE's revenue requirements, a Grid Safety and Resiliency Program Memorandum Account ("GSRPMA") to track the costs of SCE's GS&RP that are incremental to costs approved for recovery in SCE's 2018 GRC and a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's 2018 GRC that are not tracked in any other wildfire-related memorandum account.

3    In July 2020, the CPUC approved establishment of the COVID-19 Pandemic Protection Memorandum Account ("CPPMA"), to track incremental consumer protection costs for residential and small commercial customers. A CEMA is used to track other incremental COVID-19 costs, including costs of sequestering employees at essential work locations. Both memorandum accounts were effective beginning March 2020.