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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Measurements  
Fair Value by Level within the Fair Value Hierarchy

    

December 31, 2022

Netting

 and 

 

(in millions)

    

Level 1

    

Level 2

    

Level 3

    

Collateral1

    

Total

Assets at fair value

Derivative contracts

$

392

67

(218)

$

241

Money market funds and other

 

647

22

 

669

Nuclear decommissioning trusts:

 

 

Stocks2

 

1,610

 

1,610

Fixed Income3

 

941

1,281

 

2,222

Short-term investments, primarily cash equivalents

 

137

64

 

201

Subtotal of nuclear decommissioning trusts4

 

2,688

 

1,345

 

 

 

4,033

Total assets

 

3,335

 

1,759

 

67

 

(218)

 

4,943

Liabilities at fair value

 

  

 

  

 

  

 

  

 

  

Derivative contracts

 

116

4

(119)

 

1

Total liabilities

 

 

116

 

4

 

(119)

 

1

Net assets

$

3,335

$

1,643

$

63

$

(99)

$

4,942

    

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

1Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2Approximately 74% and 75% of SCE's equity investments were in companies located in the United States at December 31, 2022 and 2021, respectively.
3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $49 million and $30 million at December 31, 2022 and 2021, respectively.
4Excludes net payables of $85 million and $19 million at December 31, 2022 and 2021, 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:

Years ended December 31, 

(in millions)

2022

2021

Fair value of net assets at beginning of period

$

44

$

108

Sales

(8)

(2)

Settlements

 

(54)

 

(63)

Total realized/unrealized gains1

 

81

 

1

Fair value of net assets at end of period

$

63

$

44

1

Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.

There were no material transfers into or out of Level 3 during 2022 and 2021.

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, 2022

$

67

$

4

 

Auction prices

 

CAISO CRR auction prices

 

$(7.91) - $3,856.67

$

1.64

December 31, 2021

 

49

 

5

 

Auction prices

 

CAISO CRR auction prices

 

(18.87) - 43.03

1.46

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, 2022

    

December 31, 2021

Carrying 

Fair 

Carrying 

Fair 

(in millions)

    

Value1

    

Value2

    

Value1

    

Value2

Edison International

$

29,639

$

26,824

$

25,247

$

27,718

SCE

 

26,258

 

23,469

 

22,110

 

24,375

1     Carrying value is net of debt issuance costs.

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