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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion
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:
 
 
September 30, 2018
 
December 31, 2017
(in millions)
 
Carrying
Value1
 
Fair
Value
 
Carrying
Value1
 
Fair
Value
Edison International
 
$
14,708

 
$
15,160

 
$
12,123

 
$
13,760

SCE
 
12,969

 
13,463

 
10,907

 
12,547


1  
Carrying value is net of debt issuance costs.
Southern California Edison  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value by Level
The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
 
September 30, 2018
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
56

 
$
31

 
$
(8
)
 
$
79

Other
15

 
21

 
—

 
—

 
36

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,600

 
—

 
—

 
—

 
1,600

Fixed Income3
1,025

 
1,651

 
—

 
—

 
2,676

Short-term investments, primarily cash equivalents
144

 
92

 
—

 
—

 
236

Subtotal of nuclear decommissioning trusts4
2,769

 
1,743

 
—

 
—

 
4,512

Total assets
2,784

 
1,820

 
31

 
(8
)
 
4,627

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
28

 
—

 
(20
)
 
8

Total liabilities
—

 
28

 
—

 
(20
)
 
8

Net assets
$
2,784

 
$
1,792

 
$
31

 
$
12

 
$
4,619

 
December 31, 2017
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
9

 
$
102

 
$
(1
)
 
$
110

Other
495

 
—

 
—

 
—

 
495

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,596

 
—

 
—

 
—

 
1,596

Fixed Income3
1,065

 
1,665

 
—

 
—

 
2,730

Short-term investments, primarily cash equivalents
101

 
72

 
—

 
—

 
173

Subtotal of nuclear decommissioning trusts4
2,762

 
1,737

 
—

 
—

 
4,499

Total assets
3,257

 
1,746

 
102

 
(1
)
 
5,104

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
2

 
1

 
(2
)
 
1

Total liabilities
—

 
2

 
1

 
(2
)
 
1

Net assets
$
3,257

 
$
1,744

 
$
101

 
$
1

 
$
5,103

1 
Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2 
Approximately 72% and 69% of SCE's equity investments were in companies located in the United States at September 30, 2018 and December 31, 2017, respectively.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $72 million and $102 million at September 30, 2018 and December 31, 2017, respectively.
4 
Excludes net payables of $182 million and $59 million at September 30, 2018 and December 31, 2017, 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 Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities
The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
 
2018

2017
 
2018
 
2017
Fair value of net assets (liabilities) at beginning of period
 
$
52

 
$
(1,012
)
 
$
101

 
$
(1,089
)
Total realized/unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in regulatory assets and liabilities1
 
(21
)
 
120

 
(70
)
 
54

Contract amendment2
 
—

 
—

 
—

 
143

Normal purchase and normal sale designation3
 
—

 
914

 
—

 
914

Fair value of net assets (liabilities) at end of period
 
$
31

 
$
22

 
$
31

 
$
22

Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
7

 
$
6

 
$
7

 
$
6


1 
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
2 
Represents a tolling contract that was amended during the second quarter of 2017, which was no longer accounted for as a derivative as of September 30, 2017.
3 
During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities.
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities
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 (in millions)
 
Significant
 
 
Assets
 
Liabilities
Valuation Technique(s)
Unobservable Input
Range
Congestion revenue rights
 
 
 
 
 
September 30, 2018
$
31

 
$
—

Auction prices
CAISO CRR auction prices
$(10.79) - $15.16
December 31, 2017
102

 
—

Auction prices
CAISO CRR auction prices
$(9.41) - $8.66