Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	December 31, 2021
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	26	$	49	$	(31)	$	44
Money market funds and other		230		23		—		—		253
Nuclear decommissioning trusts:
Stocks2		1,972		—		—		—		1,972
Fixed Income3		1,083		1,607		—		—		2,690
Short-term investments, primarily cash equivalents		102		125		—		—		227
Subtotal of nuclear decommissioning trusts4		3,157		1,732		—		—		4,889
Total assets		3,387		1,781		49		(31)		5,186
Liabilities at fair value
Derivative contracts		—		42		5		(47)		—
Total liabilities		—		42		5		(47)		—
Net assets	$	3,387	$	1,739	$	44	$	16	$	5,186

	December 31, 2020
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	6	$	120	$	(18)	$	108
Money market funds and other		39		23		—		—		62
Nuclear decommissioning trusts:
Stocks2		1,908		—		—		—		1,908
Fixed Income3		519		2,113		—		—		2,632
Short-term investments, primarily cash equivalents		447		52		—		—		499
Subtotal of nuclear decommissioning trusts4		2,874		2,165		—		—		5,039
Total assets		2,913		2,194		120		(18)		5,209
Liabilities at fair value
Derivative contracts		—		10		12		(22)		—
Total liabilities		—		10		12		(22)		—
Net assets	$	2,913	$	2,184	$	108	$	4	$	5,209

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

2 Approximately 75% and 71% of SCE's equity investments were located in the United States at December 31, 2021 and 2020, respectively.

3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $30 million and $29 million at December 31, 2021 and 2020, respectively.

4 Excludes net payables of $19 million and $206 million at December 31, 2021 and 2020, 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 level 3 fair value changes

The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:

	Year ended December 31,
(in millions)	2021		2020
Fair value of net assets at beginning of period	$	108	$	78
Purchases		—		8
Sales		(2)		(5)
Settlements		(63)		(117)
Total realized/unrealized losses 1,2		1		144
Fair value of net assets at end of period	$	44	$	108

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 2021 and 2020.

Valuation techniques and significant inputs

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					Significant		Weighted
	(in millions)				Valuation	Unobservable	Range	Average
	Assets		Liabilities		Technique	Input	(per MWh)	(per MWh)
Congestion revenue rights
December 31, 2021	$	49	$	5	Auction prices	CAISO CRR auction prices	$(18.87) - $43.03	$	1.46
December 31, 2020		120		12	Auction prices	CAISO CRR auction prices	(9.67) - 300.47		2.75

Long-term debt fair value

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:

	December 31, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	25,247	$	27,718	$	20,337	$	23,824
SCE		22,110		24,375		17,204		20,365

¹     Carrying value is net of debt issuance costs.

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