Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs of removal of nuclear assets are expected to be funded from independent decommissioning trusts, which currently receive contributions of approximately $23 million per year included in SCE customer rates. Contributions to the decommissioning trusts are reviewed every three years by the CPUC. If additional funds are needed for decommissioning, it is probable that the additional funds will be recoverable through customer rates. Funds collected, together with accumulated earnings, will be utilized solely for decommissioning. The CPUC has set certain restrictions related to the investments of these trusts.

The following table sets forth amortized cost and fair value of the trust investments:



		Amortized Cost				Fair Value
(in millions)	Longest Maturity Dates	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
Stocks	—	$	861	$	895	$	1,721	$	2,029
Municipal bonds	2051	644		706		767		790
U.S. government and agency securities	2041	445		270		501		288
Corporate bonds	2054	266		288		318		346
Short-term investments and receivables/payables	One-year	81		26		86		27
Total		$	2,297	$	2,185	$	3,393	$	3,480

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligations ("ARO") regulatory liability. Proceeds from sales of securities (which are reinvested) were $962 million and $302 million for the three months ended September 30, 2011 and 2010, respectively, and $2.1 billion and $903 million for the nine months ended September 30, 2011 and 2010, respectively. Unrealized holding gains, net of losses, were $1.1 billion and $1.3 billion at September 30, 2011 and December 31, 2010, respectively.

The following table sets forth a summary of changes in the fair value of the trust:



	Three months ended September 30,						Nine months ended September 30,
(in millions)	2011			2010			2011			2010
Balance at beginning of period	$	3,657		$	3,083		$	3,480		$	3,140
Realized gains – net	41			14			76			48
Unrealized gains (losses) – net	(305		)	233			(199		)	90
Other-than-temporary impairments	(22		)	(5		)	(35		)	(16		)
Interest, dividends, contributions and other	22			22			71			85
Balance at end of period	$	3,393		$	3,347		$	3,393		$	3,347

Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on operating revenue or earnings.