Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair value by level

The following table sets forth assets and liabilities that were accounted for at fair value by level within the fair value hierarchy:

	As of December 31, 2011
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds2	$	1,321	$	—	$	—		$	—		$	1,321
Derivative contracts:
Electricity	—		66		218			(62		)	222
Natural gas	4		5		—			(7		)	2
Fuel oil	4		—		—			(4		)	—
Tolling	—		—		10			—			10
Subtotal of commodity contracts	8		71		228			(73		)	234
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks3	1,899		—		—			—			1,899
Municipal bonds	—		756		—			—			756
U.S. government and agency securities	433		147		—			—			580
Corporate bonds4	—		317		—			—			317
Short-term investments, primarily cash equivalents5	—		15		—			—			15
Subtotal of nuclear decommissioning trusts	2,332		1,235		—			—			3,567
Total assets6	3,669		1,306		228			(73		)	5,130
Liabilities at Fair Value
Derivative contracts:
Electricity	—		13		77			(21		)	69
Natural gas	—		234		23			(52		)	205
Tolling	—		—		451			—			451
Subtotal of commodity contracts	—		247		551			(73		)	725
Interest rate contracts	—		90		—			—			90
Total liabilities	—		337		551			(73		)	815
Net assets (liabilities)	$	3,669	$	969	$	(323	)	$	—		$	4,315

	As of December 31, 2010
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at Fair Value
Money market funds2	$	1,100	$	—	$	—	$	—		$	1,100
Derivative contracts:
Electricity	—		70		363		(61		)	372
Natural gas	1		69		11		(1		)	80
Fuel oil	8		—		—		(8		)	—
Tolling	—		—		118		—			118
Subtotal of commodity contracts	9		139		492		(70		)	570
Long-term disability plan	9		—		—		—			9
Nuclear decommissioning trusts:
Stocks3	2,029		—		—		—			2,029
Municipal bonds	—		790		—		—			790
Corporate bonds4	—		346		—		—			346
U.S. government and agency securities	215		73		—		—			288
Short-term investments, primarily cash equivalents5	1		31		—		—			32
Subtotal of nuclear decommissioning trusts	2,245		1,240		—		—			3,485
Total assets6	3,363		1,379		492		(70		)	5,164
Liabilities at Fair Value
Derivative contracts:
Electricity	—		13		40		(21		)	32
Natural gas	—		286		11		(4		)	293
Tolling	—		—		344		—			344
Coal	—		1		—		(1		)	—
Subtotal of commodity contracts	—		300		395		(26		)	669
Interest rate contracts	—		16		—		—			16
Total liabilities	—		316		395		(26		)	685
Net assets (liabilities)	$	3,363	$	1,063	$	97	$	(44	)	$	4,479

¹  Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level.

²  Money market funds are included in cash and cash equivalents and restricted cash and cash equivalents on Edison International's consolidated balance sheets.

³  Approximately 70% and 67% of the equity investments were located in the United States at December 31, 2011 and 2010, respectively.

⁴  At December 31, 2011 and 2010, corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $22 million and $27 million, respectively.

⁵  Excludes net receivables of $25 million and net liabilities of $5 million at December 31, 2011 and 2010, respectively, of interest and dividend receivables and receivables related to pending securities sales and payables related to pending securities purchases.

⁶  Excludes $31 million at both December 31, 2011 and 2010, of cash surrender value of life insurance investments for deferred compensation.

Summary of changes in fair value of Level 3 assets and liabilities

The following table sets forth a summary of changes in the fair value of Level 3 assets and liabilities:

	December 31,
(in millions)	2011				2010
Fair value, net assets at beginning of period	$	97			$	62
Total realized/unrealized gains (losses):
Included in earnings1	(19		)		64
Included in regulatory assets and liabilities2	(458		)	3	58
Included in accumulated other comprehensive income	1				2
Purchases	81				66
Settlements	(23		)		(166		)
Transfers in or out of Level 3	(2		)		11
Fair value, net assets (liabilities) at end of period	$	(323	)		$	97
Change during the period in unrealized gains (losses) related to assets and liabilities held at the end of the period4	$	(644	)		$	143

¹  Reported in "Competitive power generation" revenue on Edison International's consolidated statements of income.

²  Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.

³  Includes the elimination of the fair value of derivatives with SCE's consolidated affiliates.

⁴  Amounts reported in "Competitive power generation" revenue on Edison International's consolidated statements of income were $16 million and $13 million for the years ended December 31, 2011 and 2010, respectively. The remainder of the unrealized losses relate to SCE. See 2 above.

Carrying amounts and fair values of long-term debt, including current portion

The carrying value and fair value of long-term debt are:

	December 31, 2011				December 31, 2010
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion	$	13,746	$	14,264	$	12,419	$	12,360