Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	September 30, 2022
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	15	$	55	$	(16)	$	54
Money market funds and other		4		22		—		—		26
Nuclear decommissioning trusts:
Stocks2		1,465		—		—		—		1,465
Fixed Income3		839		1,255		—		—		2,094
Short-term investments, primarily cash equivalents		203		112		—		—		315
Subtotal of nuclear decommissioning trusts4		2,507		1,367		—		—		3,874
Total assets		2,511		1,404		55		(16)		3,954
Liabilities at fair value
Derivative contracts		—		38		2		(40)		—
Total liabilities		—		38		2		(40)		—
Net assets	$	2,511	$	1,366	$	53	$	24	$	3,954

	December 31, 2021
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	26	$	49	$	(31)	$	44
Money market funds and other		230		23		—		—		253
Nuclear decommissioning trusts:
Stocks2		1,972		—		—		—		1,972
Fixed Income3		1,083		1,607		—		—		2,690
Short-term investments, primarily cash equivalents		102		125		—		—		227
Subtotal of nuclear decommissioning trusts4		3,157		1,732		—		—		4,889
Total assets		3,387		1,781		49		(31)		5,186
Liabilities at fair value
Derivative contracts		—		42		5		(47)		—
Total liabilities		—		42		5		(47)		—
Net assets	$	3,387	$	1,739	$	44	$	16	$	5,186

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

2 Approximately 75% SCE's equity investments were in companies located in the United States at both September 30, 2022 and December 31, 2021.

3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $46 million and $30 million at September 30, 2022 and December 31, 2021, respectively.

4 Excludes net payables of $51 million and $19 million at September 30, 2022 and December 31, 2021, 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				Nine months ended
	September 30,				September 30,
(in millions)	2022		2021		2022		2021
Fair value of net assets at beginning of period	$	32	$	67	$	44	$	108
Sales		(1)		(1)		(7)		(2)
Settlements		(25)		(30)		(54)		(46)
Total realized/unrealized gains1,2		47		69		70		45
Fair value of net assets at end of period	$	53	$	105	$	53	$	105

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

2 There were no material transfers into or out of Level 3 during 2022 and 2021.

Valuation techniques and significant inputs

	Fair Value					Significant		Weighted
	(in millions)				Valuation	Unobservable	Range	Average
	Assets		Liabilities		Technique	Input	(per MWh)	(per MWh)
Congestion revenue rights
September 30, 2022	$	55	$	2	Auction prices	CAISO CRR auction prices	$(6.28) - $43.32	$	0.72
December 31, 2021		49		5	Auction prices	CAISO CRR auction prices	$(18.87) - $43.03		1.46

Long-term debt fair value

	September 30, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	27,320	$	23,434	$	25,247	$	27,718
SCE		24,182		20,399		22,110		24,375

1 Carrying value is net of debt issuance costs.

2 The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.