Regulatory Assets and Liabilities (Tables) - Southern California Edison

9 Months Ended

Sep. 30, 2016

Regulatory Assets Included on the Consolidated Balance Sheets

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



(in millions)	September 30, 2016		December 31, 2015
Current:
Regulatory balancing accounts	$	135	$	382
Energy derivatives	167		159
Other	19		19
Total current	321		560
Long-term:
Deferred income taxes, net	4,346		3,757
Pensions and other postretirement benefits	829		849
Energy derivatives	1,010		1,027
Unamortized investments, net	143		182
San Onofre	899		1,043
Unamortized loss on reacquired debt	189		201
Regulatory balancing accounts	36		36
Environmental remediation	128		129
Other	264		288
Total long-term	7,844		7,512
Total regulatory assets	$	8,165	$	8,072

Regulatory Liabilities Included on the Consolidated Balance Sheets

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



(in millions)	September 30, 2016		December 31, 2015
Current:
Regulatory balancing accounts	$	999	$	1,106
Other	31		22
Total current	1,030		1,128
Long-term:
Costs of removal	2,842		2,781
Recoveries in excess of ARO liabilities¹	1,769		1,502
Regulatory balancing accounts	1,348		1,314
Other	61		79
Total long-term	6,020		5,676
Total regulatory liabilities	$	7,050	$	6,804

Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9.

Schedule of Net Regulatory Balancing Accounts

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



(in millions)	September 30, 2016			December 31, 2015
Asset (liability)
Energy resource recovery account	$	(208	)	$	(439	)
New system generation balancing account	(7		)	(171		)
Public purpose programs and energy efficiency programs	(983		)	(683		)
Tax accounting memorandum account and pole loading balancing account	(105		)	(248		)
Base rate recovery balancing account	(509		)	(319		)
Department of Energy litigation memorandum account¹	(122		)	—
Greenhouse gas auction revenue	(77		)	(75		)
FERC balancing accounts	(87		)	74
Other	(78		)	(141		)
Liability	$	(2,176	)	$	(2,002	)


¹	Represents proceeds from the Department of Energy resulting from its failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. Damages recovered are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs. See Note 11 for further discussion.