Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs of removal of nuclear assets are expected to be funded from independent decommissioning trusts, which currently receive contributions of approximately $23 million per year through SCE customer rates. Contributions to the decommissioning trusts are reviewed every three years by the CPUC. If additional funds are needed for decommissioning, it is probable that the additional funds will be recoverable through customer rates. Funds collected, together with accumulated earnings, will be utilized solely for decommissioning. The CPUC has set certain restrictions related to the investments of these trusts.

The following table sets forth amortized cost and fair value of the trust investments:



		Amortized Cost				Fair Value
(in millions)	Longest Maturity Dates	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011
Stocks	—	$	957	$	865	$	2,227	$	1,899
Municipal bonds	2054	520		625		654		756
U.S. government and agency securities	2042	526		516		589		580
Corporate bonds	2054	287		259		374		317
Short-term investments and receivables/payables	One-year	147		38		153		40
Total		$	2,437	$	2,303	$	3,997	$	3,592

Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Proceeds from sales of securities (which are reinvested) were $428 million and $962 million for the three months ended September 30, 2012 and 2011, respectively, and $1.5 billion and $2.1 billion for the nine months ended September 30, 2012 and 2011, respectively. Unrealized holding gains, net of losses, were $1.6 billion and $1.3 billion at September 30, 2012 and December 31, 2011, respectively.

The following table sets forth a summary of changes in the fair value of the trust:



	Three months ended September 30,						Nine months ended September 30,
(in millions)	2012			2011			2012			2011
Balance at beginning of period	$	3,810		$	3,657		$	3,592		$	3,480
Gross realized gains	13			46			54			81
Gross realized losses	—			(5		)	(5		)	(5		)
Unrealized gains (losses) – net	156			(305		)	272			(199		)
Other-than-temporary impairments	(7		)	(22		)	(30		)	(35		)
Interest, dividends, contributions and other	25			22			114			71
Balance at end of period	$	3,997		$	3,393		$	3,997		$	3,393

Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on operating revenue or earnings.