1.0.0.3 false Income Taxes false 1 $ false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 0 eme_NotesToFinancialStatementsAbstract eme false na duration string Notes to Financial Statements [Abstract] false false false false false true false false false 1 false false 0 0 false false Notes to Financial Statements [Abstract] false 3 Income Taxes 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <table style="font-size:10pt; font-family:'Times New Roman',times,serif;"> <tr> <td> Note 10. Income Taxes         EME's income tax provision from continuing operations was $27 million and $237 million for the nine months ended September 30, 2009 and 2008, respectively. Income tax benefits are recognized pursuant to a tax-allocation agreement with Edison International. During the nine months ended September 30, 2009 and 2008, EME recognized $40 million and $29 million, respectively, of production tax credits related to wind projects. In addition, EME recognized income tax benefits of $4 million and $5 million during the nine months ended September 30, 2009 and 2008, respectively, related to estimated additional taxes or benefits allocated from Edison International. Effective January 1, 2009, the state of Massachusetts changed its tax regulations from a separate return, where each entity files separately, to a combined return for Edison International and its subsidiaries.         EME's investments in wind-powered electric generation qualify for federal production tax credits under Section 45 of the Internal Revenue Code. Certain of these investments may also be eligible for an option to claim investment tax credits (30% of eligible property) or obtain cash grants for specified renewable energy projects in lieu of tax credits (also 30% of eligible property). These options would be in lieu of the production tax credits for wind projects which may otherwise be claimed at an annually indexed rate per megawatt-hour (currently 2.1 cents per kilowatt hour) on actual production during the first 10 years of operation. The election to claim production tax credits or investment tax credits is made at the time a tax return is filed for the first year in which the property is placed in service. Payment in lieu of tax credits (sometimes referred to as cash grants) would be obtained separate from the tax return under rules and regulations published by the U.S. Treasury Department. EME placed Phase II of the Goat Wind and High Lonesome wind projects in service during 2009. For its most recently completed projects, EME is currently planning to claim investment tax credits for Phase II of the Goat Wind and High Lonesome wind projects and to claim production tax credits for its Elkhorn Ridge wind project. However, this plan is subject to change based on review of the rules and regulations regarding the payments in lieu of tax credits recently issued by the U.S. Treasury Department and tax planning activities. EME accounts for investment tax credits on the deferred method and, accordingly, will recognize tax benefits related to such credits over the estimated useful life of the projects.         In May 2009, Edison International and the Internal Revenue Service completed a settlement of federal tax disputes and affirmative claims for open tax years 1986 through 2002. The settlement includes the resolution of issues pertaining to EME which were largely timing in nature. During the second quarter of 2009, EME recorded an income tax benefit of $6 million due to the settlement and related estimated impact of interest and state income taxes. The amount recorded is subject to change based on the final determination of interest and state taxes and items affected under the tax-allocation agreement. Income Tax Uncertainties         At September 30, 2009, EME had unrecognized tax benefits of $112 million, $111 million of which, if recognized, would impact the effective tax rate. During the nine months ended September 30, 2009, unrecognized tax benefits were reduced by $32 million primarily due to the settlement of tax items with the Internal Revenue Service. The total amount of accrued interest and penalties was $12 million as of September 30, 2009. EME believes that it is reasonably possible that unrecognized tax benefits could be reduced by an amount up to $25 million within the next 12 months.</td></tr></table> Note 10. Income Taxes         EME's income tax provision from continuing operations was $27 million and false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true