Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	September 30, 2024
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	9	$	38	$	(10)	$	37
Money market funds and other		5		22		—		—		27
Nuclear decommissioning trusts:
Stocks2		1,767		—		—		—		1,767
Fixed Income3		929		1,730		—		—		2,659
Short-term investments, primarily cash equivalents		47		59		—		—		106
Subtotal of nuclear decommissioning trusts4		2,743		1,789		—		—		4,532
Total assets		2,748		1,820		38		(10)		4,596
Liabilities at fair value
Derivative contracts		—		86		1		(87)		—
Total liabilities		—		86		1		(87)		—
Net assets	$	2,748	$	1,734	$	37	$	77	$	4,596

	December 31, 2023
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	3	$	91	$	(3)	$	91
Money market funds and other		78		22		—		—		100
Nuclear decommissioning trusts:
Stocks2		1,658		—		—		—		1,658
Fixed Income3		923		1,421		—		—		2,344
Short-term investments, primarily cash equivalents		169		104		—		—		273
Subtotal of nuclear decommissioning trusts4		2,750		1,525		—		—		4,275
Total assets		2,828		1,550		91		(3)		4,466
Liabilities at fair value
Derivative contracts		—		77		—		(77)		—
Total liabilities		—		77		—		(77)		—
Net assets	$	2,828	$	1,473	$	91	$	74	$	4,466

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

2 Approximately 75% of SCE's equity investments were in companies located in the United States at September 30, 2024 and December 31, 2023.

3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $109 million and $106 million at September 30, 2024 and December 31, 2023, respectively.

4 Excludes net payables of $108 million and $102 million at September 30, 2024 and December 31, 2023, 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

	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Fair value of net assets at beginning of period	$	79	$	12	$	91	$	63
Sales		(1)		—		(1)		(1)
Settlements		8		(23)		12		(47)
Total realized/unrealized (losses)/gains1		(49)		45		(65)		19
Fair value of net assets at end of period	$	37	$	34	$	37	$	34

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

Valuation techniques and significant inputs

	Fair Value				Significant		Weighted
	(in millions)				Unobservable	Range	Average
	Assets		Liabilities		Input	(per MWh)	(per MWh)
September 30, 2024	$	38	$	1	CAISO CRR auction prices	($11.27) - $8,423.68	$	2.72
December 31, 2023		91		—	CAISO CRR auction prices	(6.44) - 16,574.36		2.74

Long-term debt fair value

	September 30, 2024				December 31, 2023
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	34,851	$	33,887	$	33,013	$	31,315
SCE		29,830		28,679		28,494		26,712

1 Carrying value is net of debt issuance costs.

2 The fair value of long-term debt is classified as Level 2.