Revenue

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Note 7.Revenue

SCE’s revenue is disaggregated by two revenue sources:

● Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

● Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs) and certain operation and maintenance expenses. SCE earns no return on these activities.

The following table is a summary of SCE’s revenue:

	Three months ended March 31, 2021						Three months ended March 31, 2020
			Cost-						Cost-
	Earning		Recovery		Total		Earning		Recovery		Total
(in millions)	Activities		Activities		Consolidated		Activities		Activities		Consolidated
Revenues from contracts with customers1,2	$	1,704	$	1,195	$	2,899	$	1,624	$	718	$	2,342
Alternative revenue programs and other operating revenue3		63		(9)		54		117		321		438
Total operating revenue	$	1,767	$	1,186	$	2,953	$	1,741	$	1,039	$	2,780

1 In the absence of a 2021 GRC, SCE recorded CPUC revenue based on the 2020 authorized revenue requirements until a GRC decision is issued. For further information, see Note 1.

2 At March 31, 2021 and December 31, 2020, SCE’s receivables related to contracts from customers were $1.6 billion and $1.5 billion, respectively, which include accrued unbilled revenue of $673 million and $521 million, respectively.

3 Includes differences between amounts billed and authorized levels for both the CPUC and FERC.