10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
R	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2013
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                        to

Commission File Number	Exact Name of Registrant as specified in its charter	State or Other Jurisdiction of Incorporation or Organization	IRS Employer Identification Number
1-9936	EDISON INTERNATIONAL	California	95-4137452
1-2313	SOUTHERN CALIFORNIA EDISON COMPANY	California	95-1240335

EDISON INTERNATIONAL	SOUTHERN CALIFORNIA EDISON COMPANY
2244 Walnut Grove Avenue (P.O. Box 976) Rosemead, California 91770 (Address of principal executive offices)	2244 Walnut Grove Avenue (P.O. Box 800) Rosemead, California 91770 (Address of principal executive offices)
(626) 302-2222 (Registrant's telephone number, including area code)	(626) 302-1212 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Edison International        Yes þ No oSouthern California Edison Company    Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Edison International        Yes þ No oSouthern California Edison Company    Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "accelerated filer," "large accelerated filer," and "smaller reporting company" in Rule 12b-12 of the Exchange Act. (Check One):
Edison International	Large Accelerated Filer þ	Accelerated Filer ¨	Non-accelerated Filer ¨	Smaller Reporting Company ¨
Southern California Edison Company	Large Accelerated Filer ¨	Accelerated Filer ¨	Non-accelerated Filer þ	Smaller Reporting Company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Edison International        Yes ¨ No þSouthern California Edison Company    Yes ¨ No þ

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Common Stock outstanding as of July 30, 2013:
Edison International	325,811,206 shares
Southern California Edison Company	434,888,104 shares

TABLE OF CONTENTS

GLOSSARY				iii
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS				2
	Edison International Consolidated Statements of Income			2
	Edison International Consolidated Statements of Comprehensive Income			3
	Edison International Consolidated Balance Sheets			4
	Edison International Consolidated Statements of Cash Flows			6
	SCE Consolidated Statements of Income			9
	SCE Consolidated Statements of Comprehensive Income			9
	SCE Consolidated Balance Sheets			10
	SCE Consolidated Statements of Cash Flows			12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS				13
	Note 1. Summary of Significant Accounting Policies			13
	Note 2. Consolidated Statements of Changes in Equity			16
	Note 3. Variable Interest Entities			17
	Note 4. Fair Value Measurements			18
	Note 5. Debt and Credit Agreements			24
	Note 6. Derivative Instruments			24
	Note 7. Income Taxes			26
	Note 8. Compensation and Benefit Plans			27
	Note 9. Permanent Retirement of San Onofre			29
	Note 10. Other Investments			33
	Note 11. Regulatory Assets and Liabilities			34
	Note 12. Commitments and Contingencies			35
	Note 13. Preferred and Preference Stock of Utility			39
	Note 14. Accumulated Other Comprehensive Loss			39
	Note 15. Interest and Other Income and Other Expenses			40
	Note 16. Discontinued Operations			40
	Note 17. Supplemental Cash Flows Information			42
	Note 18. Related-Party Transactions			42
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS				43
FORWARD-LOOKING STATEMENTS				43
MANAGEMENT OVERVIEW				45
	Highlights of Operating Results			45
	San Onofre Outage, Inspection and Retirement			46
	2015 General Rate Case			50
	Capital Program			51
	EME Chapter 11 Bankruptcy Filing			51
RESULTS OF OPERATIONS				52
	SCE			52
		Three months ended June 30, 2013 versus June 30, 2012		52
			Utility Earning Activities	52
			Utility Cost-Recovery Activities	53

i

		Six months ended June 30, 2013 versus June 30, 2012		54
			Utility Earnings Activities	54
			Utility Cost-Recovery Activities	55
	Supplemental Operating Revenue Information			55
	Income Taxes			56
	Edison International Parent and Other			56
	Income (Loss) from Discontinued Operations (Net of Tax)			56
LIQUIDITY AND CAPITAL RESOURCES				56
	SCE			56
		Available Liquidity		57
		Capital Investment Plan		57
		Regulatory Balancing Accounts		58
		Regulatory Proceedings		58
		Dividend Restrictions		59
		Margin and Collateral Deposits		59
	Edison International Parent and Other			60
	Historical Cash Flows			60
		SCE		60
		Edison International Parent and Other		61
	Contingencies			62
		Environmental Remediation		62
MARKET RISK EXPOSURES				62
	Commodity Price Risk			62
	Credit Risk			62
CRITICAL ACCOUNTING ESTIMATES AND POLICIES				63
NEW ACCOUNTING GUIDANCE				63
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK				63
ITEM 4. CONTROLS AND PROCEDURES				63
	Disclosure Controls and Procedures			63
	Changes in Internal Control Over Financial Reporting			63
	Jointly Owned Utility Plant			63
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS				64
	EME Chapter 11 Bankruptcy Filing			64
	Catalina South Coast Air Quality Management District Environmental Proceeding			64
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS				64
	Purchases of Equity Securities by Edison International and Affiliated Purchasers			64
ITEM 6. EXHIBITS				65
SIGNATURES				66

This is a combined Form 10-Q separately filed by Edison International and Southern California Edison Company. Information contained herein relating to an individual company is filed by such company on its own behalf. Each company makes representations only as to itself and makes no other representation whatsoever as to any other company.

ii

GLOSSARY

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

2012 Form 10-K	Edison International's and SCE's combined Annual Report on Form 10-K for the year-ended December 31, 2012
APS	Arizona Public Service Company
ARO(s)	asset retirement obligation(s)
BACT	best available control technology
Bankruptcy Code	Chapter 11 of the United States Bankruptcy Code
Bankruptcy Court	United States Bankruptcy Court for the Northern District of Illinois, Eastern Division
Bcf	billion cubic feet
CAA	Clean Air Act
CAISO	California Independent System Operator
CARB	California Air Resources Board
CDWR	California Department of Water Resources
CEC	California Energy Commission
CPUC	California Public Utilities Commission
CRRs	congestion revenue rights
DOE	U.S. Department of Energy
EME	Edison Mission Energy
EMG	Edison Mission Group Inc.
EPS	earnings per share
ERRA	energy resource recovery account
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
FIP(s)	federal implementation plan(s)
Four Corners	coal fueled electric generating facility located in Farmington, New Mexico in which SCE holds a 48% ownership interest
GAAP	generally accepted accounting principles
GHG	greenhouse gas
GRC	general rate case
GWh	gigawatt-hours
IRS	Internal Revenue Service
ISO	Independent System Operator
kWh(s)	kilowatt-hour(s)
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations in this report
MHI	Mitsubishi Heavy Industries, Inc.
Mohave	two coal fueled electric generating facilities that have been decommissioned and site remediated located in Clark County, Nevada in which SCE holds a 56% ownership interest
Moody's	Moody's Investors Service
MW	megawatts
MWh	megawatt-hours
NAAQS	national ambient air quality standards
NERC	North American Electric Reliability Corporation
Ninth Circuit	U.S. Court of Appeals for the Ninth Circuit
NRC	Nuclear Regulatory Commission

iii

NSR	New Source Review
Palo Verde	large pressurized water nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
PBOP(s)	postretirement benefits other than pension(s)
Petition Date	December 17, 2012 (date on which EME and certain of its wholly-owned subsidiaries filed for protection under Chapter 11 of the Bankruptcy Code)
PG&E	Pacific Gas & Electric Company
PSD	Prevention of Significant Deterioration
QF(s)	qualifying facility(ies)
ROE	return on equity
S&P	Standard & Poor's Ratings Services
San Onofre	large pressurized water nuclear electric generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest
SCE	Southern California Edison Company
SCR	selective catalytic reduction equipment
SDG&E	San Diego Gas & Electric
SEC	U.S. Securities and Exchange Commission
SED	Safety and Enforcement Division of the CPUC, formerly known as the Consumer Protection and Safety Division or CPSD
Settlement Transaction	Certain transactions related to EME's Chapter 11 bankruptcy filing that the parties to the Support Agreement have by virtue of that agreement agreed to further document and support
Support Agreement	Transaction Support Agreement dated as of December 16, 2012 by and among Edison Mission Energy, Edison International and the Noteholders named therein
US EPA	U.S. Environmental Protection Agency
VIE(s)	variable interest entity(ies)

iv

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1

PART I.    FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

Consolidated Statements of Income	Edison International
	Three months ended June 30,						Six months ended June 30,
(in millions, except per-share amounts, unaudited)	2013			2012			2013			2012
Operating revenue	$	3,046		$	2,653		$	5,678		$	5,068
Fuel	81			61			154			138
Purchased power	1,076			822			1,855			1,437
Operation and maintenance	967			951			1,840			1,899
Depreciation, decommissioning and amortization	418			400			832			788
Asset impairment and other	575			(1		)	575			—
Total operating expenses	3,117			2,233			5,256			4,262
Operating income (loss)	(71		)	420			422			806
Interest and other income	34			40			63			73
Interest expense	(133		)	(134		)	(265		)	(260		)
Other expenses	(14		)	(19		)	(21		)	(26		)
Income (loss) from continuing operations before income taxes	(184		)	307			199			593
Income tax expense (benefit)	(102		)	100			(4		)	192
Income (loss) from continuing operations	(82		)	207			203			401
Income (loss) from discontinued operations, net of tax	12			(109		)	24			(193		)
Net income (loss)	(70		)	98			227			208
Dividends on preferred and preference stock of utility	24			23			51			41
Other noncontrolling interests	—			1			—			—
Net income (loss) attributable to Edison International common shareholders	$	(94	)	$	74		$	176		$	167
Amounts attributable to Edison International common shareholders:
Income (loss) from continuing operations, net of tax	$	(106	)	$	183		$	152		$	360
Income (loss) from discontinued operations, net of tax	12			(109		)	24			(193		)
Net income (loss) attributable to Edison International common shareholders	$	(94	)	$	74		$	176		$	167
Basic earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding	326			326			326			326
Continuing operations	$	(0.33	)	$	0.56		$	0.47		$	1.10
Discontinued operations	0.04			(0.33		)	0.07			(0.59		)
Total	$	(0.29	)	$	0.23		$	0.54		$	0.51
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities	326			334			329			333
Continuing operations	$	(0.33	)	$	0.55		$	0.47		$	1.08
Discontinued operations	0.04			(0.33		)	0.07			(0.58		)
Total	$	(0.29	)	$	0.22		$	0.54		$	0.50
Dividends declared per common share	$	0.3375		$	0.325		$	0.6750		$	0.650

The accompanying notes are an integral part of these consolidated financial statements.

2

Consolidated Statements of Comprehensive Income	Edison International
	Three months ended June 30,						Six months ended June 30,
(in millions, unaudited)	2013			2012			2013			2012
Net income (loss)	$	(70	)	$	98		$	227		$	208
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits other than pensions:
Net loss arising during the period, net of income tax benefit of $2 for the three months June 30, 2012 and $4 and $2 for the six months ended June 30, 2013 and 2012, respectively	—			(4		)	(2		)	(3		)
Amortization of net loss included in net income, net of income tax expense of $1 for both the three months ended June 30, 2013 and 2012 and $2 and $5 for the six months ended June 30, 2013 and 2012, respectively	5			3			7			9
Unrealized loss on derivatives qualified as cash flow hedges:
Unrealized holding loss arising during the period, net of income tax benefit of $19 for the three months and $2 for the six months ended June 30, 2012, respectively	—			(28		)	—			(3		)
Reclassification adjustments included in net income, net of income tax benefit of $6 for the three months and $13 for the six months ended June 30, 2012, respectively	—			(9		)	—			(20		)
Other comprehensive income (loss), net of tax	5			(38		)	5			(17		)
Comprehensive income (loss)	(65		)	60			232			191
Less: Comprehensive income attributable to noncontrolling interests	24			24			51			41
Comprehensive income (loss) attributable to Edison International	$	(89	)	$	36		$	181		$	150

The accompanying notes are an integral part of these consolidated financial statements.

3

Consolidated Balance Sheets	Edison International
(in millions, unaudited)	June 30, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	148	$	170
Receivables, less allowances of $66 and $75 for uncollectible accounts at respective dates	815		762
Accrued unbilled revenue	741		550
Inventory	267		340
Prepaid taxes	27		22
Derivative assets	91		129
Margin and collateral deposits	8		8
Regulatory assets	803		572
Other current assets	122		119
Total current assets	3,022		2,672
Nuclear decommissioning trusts	4,181		4,048
Investments in unconsolidated affiliates	2		2
Other investments	194		184
Total investments	4,377		4,234
Utility property, plant and equipment, less accumulated depreciation of $7,578 and $7,424 at respective dates	29,301		30,200
Nonutility property, plant and equipment, less accumulated depreciation of $69 and $123 at respective dates	75		73
Total property, plant and equipment	29,376		30,273
Derivative assets	73		85
Restricted deposits	4		4
Regulatory assets	7,494		6,422
Other long-term assets	681		704
Total long-term assets	8,252		7,215
Total assets	$	45,027	$	44,394

The accompanying notes are an integral part of these consolidated financial statements.

4

Consolidated Balance Sheets	Edison International
(in millions, except share amounts, unaudited)	June 30, 2013			December 31, 2012
LIABILITIES AND EQUITY
Short-term debt	$	853		$	175
Current portion of long-term debt	800			—
Accounts payable	1,288			1,423
Accrued taxes	33			61
Accrued interest	199			176
Customer deposits	199			193
Derivative liabilities	140			126
Regulatory liabilities	493			536
Deferred income taxes	79			64
Other current liabilities	804			990
Total current liabilities	4,888			3,744
Long-term debt	8,830			9,231
Deferred income taxes	6,304			6,127
Deferred investment tax credits	102			104
Customer advances	134			149
Derivative liabilities	1,027			939
Pensions and benefits	2,234			2,614
Asset retirement obligations	3,322			2,782
Regulatory liabilities	4,836			5,214
Other deferred credits and other long-term liabilities	2,242			2,299
Total deferred credits and other liabilities	20,201			20,228
Total liabilities	33,919			33,203
Commitments and contingencies (Note 12)
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date)	2,388			2,373
Accumulated other comprehensive loss	(82		)	(87		)
Retained earnings	7,049			7,146
Total Edison International's common shareholders' equity	9,355			9,432
Preferred and preference stock of utility	1,753			1,759
Total noncontrolling interests	1,753			1,759
Total equity	11,108			11,191
Total liabilities and equity	$	45,027		$	44,394

The accompanying notes are an integral part of these consolidated financial statements.

5

Consolidated Statements of Cash Flows	Edison International
	Six months ended June 30,
(in millions, unaudited)	2013			2012
Cash flows from operating activities:
Net income	$	227		$	208
Less: Income (loss) from discontinued operations	24			(193		)
Income from continuing operations	203			401
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization	832			788
Regulatory impacts of net nuclear decommissioning trust earnings	161			114
Other amortization and other	33			34
Asset impairment	575			—
Stock-based compensation	12			16
Deferred income taxes and investment tax credits	85			11
Proceeds from U.S. treasury grants	—			29
Changes in operating assets and liabilities:
Receivables	(47		)	10
Inventory	73			15
Margin and collateral deposits, net of collateral received	(67		)	(3		)
Prepaid taxes	(5		)	98
Other current assets	(190		)	(204		)
Accounts payable	88			27
Accrued taxes	(33		)	(15		)
Other current liabilities	(98		)	(83		)
Derivative assets and liabilities, net	152			(79		)
Regulatory assets and liabilities, net	(11		)	252
Other assets	(27		)	(19		)
Other liabilities	(475		)	122
Operating cash flows from continuing operations	1,261			1,514
Operating cash flows from discontinued operations, net	—			(354		)
Net cash provided by operating activities	1,261			1,160
Cash flows from financing activities:
Long-term debt issued	398			395
Long-term debt issuance costs	(4		)	(4		)
Long-term debt repaid	(3		)	(3		)
Bonds remarketed, net	195			—
Bonds purchased	(196		)	—
Preference stock issued, net	387			805
Preference stock redeemed	(400		)	(75		)
Short-term debt financing, net	678			(121		)
Settlements of stock-based compensation, net	(37		)	(30		)
Dividends to noncontrolling interests	(52		)	(29		)
Dividends paid	(220		)	(212		)
Financing cash flows from continuing operations	746			726
Financing cash flows from discontinued operations, net	—			300
Net cash provided by financing activities	$	746		$	1,026

The accompanying notes are an integral part of these consolidated financial statements.

6

Consolidated Statements of Cash Flows	Edison International
	Six months ended June 30,
(in millions, unaudited)	2013			2012
Cash flows from investing activities:
Capital expenditures	$	(1,834	)	$	(2,125	)
Proceeds from sale of nuclear decommissioning trust investments	1,956			1,097
Purchases of nuclear decommissioning trust investments and other	(2,128		)	(1,222		)
Customer advances for construction and other investments	(23		)	7
Investing cash flows from continuing operations	(2,029		)	(2,243		)
Investing cash flows from discontinued operations, net	—			(237		)
Net cash used by investing activities	(2,029		)	(2,480		)
Net decrease in cash and cash equivalents	(22		)	(294		)
Cash and cash equivalents at beginning of period	170			1,469
Cash and cash equivalents at end of period	148			1,175
Cash and cash equivalents from discontinued operations	—			1,009
Cash and cash equivalents from continuing operations	$	148		$	166

The accompanying notes are an integral part of these consolidated financial statements.

7

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8

Consolidated Statements of Income Southern California Edison Company

	Three months ended June 30,						Six months ended June 30,
(in millions, unaudited)	2013			2012			2013			2012
Operating revenue	$	3,045		$	2,651		$	5,674		$	5,063
Fuel	81			61			154			138
Purchased power	1,076			822			1,855			1,437
Operation and maintenance	879			866			1,665			1,717
Depreciation, decommissioning and amortization	417			399			832			788
Property and other taxes	72			73			151			156
Asset impairment	575			—			575			—
Total operating expenses	3,100			2,221			5,232			4,236
Operating income (loss)	(55		)	430			442			827
Interest and other income	30			38			61			70
Interest expense	(127		)	(127		)	(253		)	(249		)
Other expenses	(14		)	(19		)	(21		)	(26		)
Income (loss) before income taxes	(166		)	322			229			622
Income tax expense (benefit)	(99		)	108			13			208
Net income (loss)	(67		)	214			216			414
Less: Dividends on preferred and preference stock	24			23			51			41
Net income (loss) available for common stock	$	(91	)	$	191		$	165		$	373

Consolidated Statements of Comprehensive Income
	Three months ended June 30,						Six months ended June 30,
(in millions, unaudited)	2013			2012			2013			2012
Net income (loss)	$	(67	)	$	214		$	216		$	414
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits other than pensions:
Net loss arising the during period, net of income tax benefit of $3 for the three months ended June 30, 2012 and $3 for both the six months ended June 30, 2013 and 2012	—			(4		)	(4		)	(4		)
Amortization of net loss included in net income, net of income tax expense of $1 for both the three months ended June 30, 2013 and 2012 and $2 and $3 for the six months ended June 30, 2013 and 2012, respectively	2			1			3			4
Other comprehensive income (loss), net of tax	2			(3		)	(1		)	—
Comprehensive income (loss)	$	(65	)	$	211		$	215		$	414

The accompanying notes are an integral part of these consolidated financial statements.

9

Consolidated Balance Sheets Southern California Edison Company

(in millions, unaudited)	June 30, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	49	$	45
Receivables, less allowances of $66 and $75 for uncollectible accounts at respective dates	768		755
Accrued unbilled revenue	741		550
Inventory	267		340
Prepaid taxes	22		48
Derivative assets	91		129
Regulatory assets	803		572
Other current assets	129		123
Total current assets	2,870		2,562
Nuclear decommissioning trusts	4,181		4,048
Other investments	127		116
Total investments	4,308		4,164
Utility property, plant and equipment, less accumulated depreciation of $7,578 and $7,424 at respective dates	29,301		30,200
Nonutility property, plant and equipment, less accumulated depreciation of $63 and $117 at respective dates	73		70
Total property, plant and equipment	29,374		30,270
Derivative assets	73		85
Regulatory assets	7,494		6,422
Other long-term assets	531		531
Total long-term assets	8,098		7,038
Total assets	$	44,650	$	44,034

The accompanying notes are an integral part of these consolidated financial statements.

10

Consolidated Balance Sheets Southern California Edison Company

(in millions, except share amounts, unaudited)	June 30, 2013			December 31, 2012
LIABILITIES AND EQUITY
Short-term debt	$	828		$	175
Current portion of long-term debt	800			—
Accounts payable	1,264			1,297
Accrued taxes	36			72
Accrued interest	194			172
Customer deposits	199			193
Derivative liabilities	140			126
Regulatory liabilities	493			536
Deferred income taxes	79			81
Other current liabilities	663			861
Total current liabilities	4,696			3,513
Long-term debt	8,427			8,828
Deferred income taxes	6,819			6,669
Deferred investment tax credits	102			104
Customer advances	134			149
Derivative liabilities	1,027			939
Pensions and benefits	1,727			2,245
Asset retirement obligations	3,322			2,782
Regulatory liabilities	4,836			5,214
Other deferred credits and other long-term liabilities	1,928			1,848
Total deferred credits and other liabilities	19,895			19,950
Total liabilities	33,018			32,291
Commitments and contingencies (Note 12)
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date)	2,168			2,168
Additional paid-in capital	584			581
Accumulated other comprehensive loss	(30		)	(29		)
Retained earnings	7,115			7,228
Total common shareholder's equity	9,837			9,948
Preferred and preference stock	1,795			1,795
Total equity	11,632			11,743
Total liabilities and equity	$	44,650		$	44,034

The accompanying notes are an integral part of these consolidated financial statements.

11

Consolidated Statements of Cash Flows Southern California Edison Company

	Six months ended June 30,
(in millions, unaudited)	2013			2012
Cash flows from operating activities:
Net income	$	216		$	414
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization	832			788
Regulatory impacts of net nuclear decommissioning trust earnings	161			114
Other amortization	35			37
Asset impairment	575			—
Stock-based compensation	7			8
Deferred income taxes and investment tax credits	50			250
Proceeds from U.S. treasury grants	—			29
Changes in operating assets and liabilities:
Receivables	(12		)	11
Inventory	73			15
Margin and collateral deposits, net of collateral received	(67		)	(3		)
Prepaid taxes	26			3
Other current assets	(192		)	(203		)
Accounts payable	96			28
Accrued taxes	(36		)	(14		)
Other current liabilities	(102		)	(79		)
Derivative assets and liabilities, net	152			(72		)
Regulatory assets and liabilities, net	(11		)	245
Other assets	(12		)	(21		)
Other liabilities	(466		)	(39		)
Net cash provided by operating activities	1,325			1,511
Cash flows from financing activities:
Long-term debt issued	398			395
Long-term debt issuance costs	(4		)	(4		)
Long-term debt repaid	(3		)	(3		)
Bonds remarketed, net	195			—
Bonds purchased	(196		)	—
Preference stock issued, net	387			805
Preference stock redeemed	(400		)	(75		)
Short-term debt financing, net	653			(125		)
Settlements of stock-based compensation, net	(34		)	(20		)
Dividends paid	(292		)	(261		)
Net cash provided by financing activities	704			712
Cash flows from investing activities:
Capital expenditures	(1,834		)	(2,125		)
Proceeds from sale of nuclear decommissioning trust investments	1,956			1,097
Purchases of nuclear decommissioning trust investments and other	(2,128		)	(1,222		)
Customer advances for construction and other investments	(19		)	11
Net cash used by investing activities	(2,025		)	(2,239		)
Net increase (decrease) in cash and cash equivalents	4			(16		)
Cash and cash equivalents, beginning of period	45			57
Cash and cash equivalents, end of period	$	49		$	41

The accompanying notes are an integral part of these consolidated financial statements.

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1.    Summary of Significant Accounting Policies

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of nonutility subsidiaries that are engaged in competitive businesses related to the delivery or use of electricity. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in Note 1 of "Notes to Consolidated Financial Statements" included in the 2012 Form 10-K. The same accounting policies are followed for interim reporting purposes, with the exception of accounting principles adopted as of January 1, 2013, discussed below in "—New Accounting Guidance." This quarterly report should be read in conjunction with the financial statements and notes included in the 2012 Form 10-K.

Beginning in the fourth quarter of 2012, EME met the definition of a discontinued operation and was classified separately in Edison International's consolidated financial statements. Except as indicated, amounts in the notes to the consolidated financial statements relate to continuing operations of Edison International. See Note 16 for information related to discontinued operations.

In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2013 are not necessarily indicative of the operating results for the full year.

The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Cash Equivalents

Cash equivalents included investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Money market funds	$	72	$	107	$	10	$	5

Cash is temporarily invested until required for check clearing from the primary disbursement accounts. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Cash reclassified to accounts payable	$	160	$	247	$	158	$	242

13

Inventory

Inventory is stated at the lower of cost or market, cost being determined by the weighted-average cost method for fuel, and the average cost method for materials, supplies and spare parts. Inventory consisted of the following:

(in millions)	June 30, 2013		December 31, 2012
Materials, supplies and spare parts	$	244	$	319
Fuel	23		21
Total inventory	$	267	$	340

As a result of the permanent retirement of San Onofre, SCE has reclassified $100 million of its inventory to a regulatory asset, see Note 9 for further details.

Greenhouse Gas Allowances

SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to submit to quarterly auctions. GHG proceeds from the auction are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances from quarterly auctions or bilateral parties to satisfy its compliance obligations and recovers such costs of GHG from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated at the lower of weighted-average cost or market.

Earnings Per Share

Edison International computes earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including stock options, performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares. Stock options awarded during the period 2003 through 2006 received dividend equivalents. EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013				2012		2013		2012
Basic earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Basic earnings per share – continuing operations	$	(0.33	)		$	0.56	$	0.47	$	1.10
Diluted earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Income impact of assumed conversions	—				—		—		—
Income (loss) from continuing operations available to common shareholders and assumed conversions	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Incremental shares from assumed conversions	—			1	8		3		7
Adjusted weighted average shares – diluted	326				334		329		333
Diluted earnings per share – continuing operations	$	(0.33	)		$	0.55	$	0.47	$	1.08

¹  Due to a loss for the three months ended June 30, 2013, there were no incremental shares in the computation because such shares would be considered antidilutive.

14

Stock-based compensation awards to purchase 3,266,857 shares of common stock for the three months ended June 30, 2012, and 1,587,370 and 4,928,510 for the six months ended June 30, 2013 and 2012, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the awards was greater than the average market price of the common shares during the respective periods and, therefore, the effect would have been antidilutive.

Asset Retirement Obligation

SCE is in the process of developing a comprehensive decommissioning plan following its decision to permanently retire San Onofre. See Note 9 for further details. The total asset retirement obligation ("ARO") liability related to San Onofre was revised in the second quarter of 2013 based on an updated decommissioning cost estimate for the retirement of both San Onofre Units 2 and 3. The revised ARO liability at June 30, 2013 related to San Onofre increased $455 million to $2.7 billion.

The following table summarizes the changes in SCE's ARO liability, including San Onofre and Palo Verde:

(in millions)	June 30, 2013		December 31, 2012
Beginning balance	$	2,782	$	2,610
Accretion expense	85		161
Revisions	455		12
Liabilities settled	—		(1		)
Ending balance	$	3,322	$	2,782

New Accounting Guidance

Accounting Guidance Adopted in 2013

Offsetting Assets and Liabilities

In January 2013, the FASB issued accounting standards updates modifying the disclosure requirements about the nature of an entity's rights of offsetting recognized assets and liabilities in the statement of financial position under master netting agreements and similar arrangements associated with derivative instruments, repurchase agreements and securities lending transactions. The guidance requires increased disclosure of the gross and net recognized assets and liabilities, collateral positions and descriptions of setoff rights. Edison International and SCE adopted this guidance effective January 1, 2013. The adoption of this standard did not impact the consolidated income statements, balance sheets or cash flows of Edison International or SCE.

Items Reclassified out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued an accounting standards update which requires disclosure related to items reclassified out of AOCI. The guidance requires companies to present separately, for each component of other comprehensive income, current period reclassifications and the remainder of the current-period other comprehensive income. In addition, for certain current period reclassifications, an entity is required to disclose the effect of the item reclassified out of AOCI on the respective line item(s) of net income. Edison International and SCE adopted this guidance effective January 1, 2013. See Note 14 for further details.

Accounting Guidance Not Yet Adopted

In July 2013, the FASB issued an accounting standards update that will require that an unrecognized tax benefit be presented on the balance sheet as a reduction of a deferred tax asset for a net operating loss ("NOL") or tax credit carryforward under certain circumstances. This proposal is effective January 1, 2014 and is not expected to have a material impact on the consolidated financial statements.

15

Note 2.    Consolidated Statements of Changes in Equity

The following table provides Edison International's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to Edison International											Noncontrolling Interests
(in millions)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,373	$	(87	)	$	7,146		$	9,432		$	1,759		$	11,191
Net income	—		—			176			176			51			227
Other comprehensive income	—		5			—			5			—			5
Common stock dividends declared ($0.675 per share)	—		—			(220		)	(220		)	—			(220		)
Dividends, distributions to noncontrolling interests	—		—			—			—			(51		)	(51		)
Stock-based compensation and other	3		—			(40		)	(37		)	—			(37		)
Noncash stock-based compensation and other	12		—			(5		)	7			(1		)	6
Issuance of preference stock	—		—			—			—			387			387
Redemption of preference stock	—		—			(8		)	(8		)	(392		)	(400		)
Balance at June 30, 2013	$	2,388	$	(82	)	$	7,049		$	9,355		$	1,753		$	11,108

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides Edison International's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to Edison International												Noncontrolling Interests
(in millions)	Common Stock			Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other		Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,360		$	(139	)	$	7,834		$	10,055		$	2	$	1,029		$	11,086
Net income	—			—			167			167			—		41			208
Other comprehensive loss	—			(17		)	—			(17		)	—		—			(17		)
Contributions from noncontrolling interests	—			—			—			—			238		—			238
Transfer of assets to Capistrano Wind Partners	(21		)	—			—			(21		)	—		—			(21		)
Common stock dividends declared ($0.65 per share)	—			—			(212		)	(212		)	—		—			(212		)
Dividends, distributions to noncontrolling interests and other	—			—			—			—			—		(41		)	(41		)
Stock-based compensation and other	15			—			(56		)	(41		)	—		—			(41		)
Noncash stock-based compensation and other	17			—			(2		)	15			—		—			15
Issuance of preference stock	—			—			—			—			—		805			805
Redemption of preference stock	—			—			(1		)	(1		)	—		(74		)	(75		)
Balance at June 30, 2012	$	2,371		$	(156	)	$	7,730		$	9,945		$	240	$	1,760		$	11,945

16

The following table provides SCE's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,168	$	581		$	(29	)	$	7,228		$	1,795		$	11,743
Net income	—		—			—			216			—			216
Other comprehensive loss	—		—			(1		)	—			—			(1		)
Dividends declared on common stock	—		—			—			(240		)	—			(240		)
Dividends declared on preferred and preference stock	—		—			—			(51		)	—			(51		)
Stock-based compensation and other	—		1			—			(35		)	—			(34		)
Noncash stock-based compensation and other	—		7			—			5			—			12
Issuance of preference stock	—		(13		)	—			—			400			387
Redemption of preference stock	—		8			—			(8		)	(400		)	(400		)
Balance at June 30, 2013	$	2,168	$	584		$	(30	)	$	7,115		$	1,795		$	11,632

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides SCE's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,168	$	596		$	(24	)	$	6,173		$	1,045		$	9,958
Net income	—		—			—			414			—			414
Dividends declared on common stock	—		—			—			(233		)	—			(233		)
Dividends declared on preferred and preference stock	—		—			—			(41		)	—			(41		)
Stock-based compensation and other	—		10			—			(30		)	—			(20		)
Noncash stock-based compensation and other	—		8			—			—			—			8
Issuance of preference stock	—		(20		)	—			—			825			805
Redemption of preference stock	—		1			—			(1		)	(75		)	(75		)
Balance at June 30, 2012	$	2,168	$	595		$	(24	)	$	6,282		$	1,795		$	10,816

Note 3.    Variable Interest Entities

Variable Interest in VIEs that are not Consolidated

Power Purchase Contracts

SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities ("QFs") that contain variable pricing provisions based on the price of natural gas. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. In general, because payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants.

17

As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to its involvement with VIEs result from amounts due under the PPAs or the fair value of those derivative contracts. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 9 in the 2012 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE for these VIE projects was 4,057 MW and 2,014 MW at June 30, 2013 and 2012, respectively, and the amounts that SCE paid to these projects were $99 million and $57 million for the three months ended June 30, 2013 and 2012, respectively, and $197 million and $134 million for the six months ended June 30, 2013 and 2012, respectively. These amounts are recoverable in customer rates, subject to reasonableness review. As of June 30, 2013, SCE has additional VIE contracts with future aggregate contracted capacity of 1,358 MW to be delivered starting in August 2013 and January 2014.

Unconsolidated Trusts of SCE

SCE Trust I and Trust II were formed in 2012 and 2013, respectively, for the exclusive purpose of issuing the 5.625% and 5.10% trust preference securities, respectively (“trust securities”). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts.

In May 2012, SCE Trust I issued $475 million (aggregate liquidation preference) of 5.625% trust securities (cumulative, liquidation amount of $25 per share) to the public and $10,000 of common stock (100%) to SCE. The trust invested the proceeds of these trust securities in Series F Preference Stock issued by SCE in the principal amount of $475 million (cumulative, $2,500 per share liquidation value) and which have substantially the same payment terms as the trust securities.

In January 2013, SCE Trust II issued $400 million (aggregate liquidation preference) of 5.10% trust securities (cumulative, liquidation amount of $25 per share) to the public and $10,000 of common stock (100%) to SCE. The trust invested the proceeds of these trust securities in Series G Preference Stock issued by SCE in the principal amount of $400 million (cumulative, $2,500 per share liquidation value) and which have substantially the same payment terms as the trust securities.

The Series F and Series G Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F or Series G Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (for further information see Note 13). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities when and if the SCE board of directors declares and makes dividend payments on the Series F or Series G Preference Stock. The applicable trusts will use any dividends it receives on the Series F or Series G Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to either trust, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the Series F and Series G Preference Stock.

The Trust I balance sheet as of June 30, 2013 and December 31, 2012, consisted of an investment of $475 million in the Series F Preference Stock, $475 million of trust securities and $10,000 of common stock. The trust's income statement consisted of dividend income and dividend distributions of $6 million and $3 million each for the three months ended June 30, 2013 and 2012, respectively, and $13 million and $3 million each for the six months ended June 30, 2013 and 2012, respectively.

The Trust II balance sheet as of June 30, 2013, consisted of an investment of $400 million in the Series G Preference Stock, $400 million of trust securities and $10,000 of common stock. The trust's income statement consisted of dividend income and dividend distributions of $5 million each for the three months ended June 30, 2013 and $9 million each for the six months ended June 30, 2013.

Note 4.    Fair Value Measurements

Recurring Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2013 and December 31, 2012, nonperformance risk was not material for Edison International and SCE.

18

Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

SCE

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

	June 30, 2013
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	10	$	—	$	—		$	—		$	10
Mutual funds	28		—		—			—			28
Derivative contracts:
Congestion Revenue Rights	—		—		137			—			137
Electricity	—		—		17			(10		)	7
Natural gas	—		13		—			(1		)	12
Tolling	—		—		8			—			8
Subtotal of derivative contracts	—		13		162			(11		)	164
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,085		—		—			—			2,085
U.S. government and agency securities	881		144		—			—			1,025
Municipal bonds	—		592		—			—			592
Corporate bonds3	—		347		—			—			347
Short-term investments, primarily cash equivalents4	168		112		—			—			280
Subtotal of nuclear decommissioning trusts	3,134		1,195		—			—			4,329
Total assets	3,180		1,208		162			(11		)	4,539
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		6			(1		)	7
Natural gas	—		68		—			(31		)	37
Tolling	—		—		1,123			—			1,123
Subtotal of derivative contracts	—		70		1,129			(32		)	1,167
Total liabilities	—		70		1,129			(32		)	1,167
Net assets (liabilities)	$	3,180	$	1,138	$	(967	)	$	21		$	3,372

19

	December 31, 2012
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	5	$	—	$	—		$	—		$	5
Derivative contracts:
Congestion Revenue Rights	—		—		186			—			186
Electricity	—		—		31			(13		)	18
Natural gas	—		8		—			(2		)	6
Tolling	—		—		4			—			4
Subtotal of derivative contracts	—		8		221			(15		)	214
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,271		—		—			—			2,271
Municipal bonds	—		644		—			—			644
U.S. government and agency securities	477		126		—			—			603
Corporate bonds3	—		410		—			—			410
Short-term investments, primarily cash equivalents4	121		—		—			—			121
Subtotal of nuclear decommissioning trusts	2,869		1,180		—			—			4,049
Total assets	2,882		1,188		221			(15		)	4,276
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		5			(2		)	5
Natural gas	—		113		2			(60		)	55
Tolling	—		—		1,005			—			1,005
Subtotal of derivative contracts	—		115		1,012			(62		)	1,065
Total liabilities	—		115		1,012			(62		)	1,065
Net assets (liabilities)	$	2,882	$	1,073	$	(791	)	$	47		$	3,211

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  Approximately 70% and 66% of SCE's equity investments were located in the United States at June 30, 2013 and December 31, 2012, respectively.

³  At June 30, 2013 and December 31, 2012, SCE's corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $58 million and $56 million, respectively.

⁴  Excludes net payables of $148 million and $1 million at June 30, 2013 and December 31, 2012, respectively, of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Edison International Parent and Other

Assets measured at fair value consisted of money market funds of $72 million and $107 million at June 30, 2013 and December 31, 2012, respectively, classified as Level 1.

20

SCE Fair Value of Level 3

The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Fair value of net liabilities at beginning of period	$	(882	)	$	(1,097	)	$	(791	)	$	(754	)
Total realized/unrealized gains (losses):
Included in regulatory assets and liabilities1	(76		)	341			(158		)	(23		)
Purchases	20			29			38			50
Settlements	(29		)	(12		)	(56		)	(12		)
Fair value of net liabilities at end of period	$	(967	)	$	(739	)	$	(967	)	$	(739	)
Change during the period in unrealized losses related to assets and liabilities held at the end of the period	$	(43	)	$	335		$	(125	)	$	(8	)

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

Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no transfers between any levels during 2013 and 2012.

Valuation Techniques Used to Determine Fair Value

Level 1

The fair value of Edison International and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities and derivatives, U.S. treasury securities, mutual funds and money market funds.

Level 2

SCE's Level 2 assets and liabilities include fixed income securities and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. For further discussion on fixed income securities, see "—Nuclear Decommissioning Trusts" below.

The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from exchanges (New York Mercantile Exchange and Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.

Level 3

The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes over-the-counter options, tolling arrangements and derivative contracts that trade infrequently such as congestion revenue rights ("CRRs") and long-term power agreements.

Assumptions are made in order to value derivative contracts in which observable inputs are not available. Changes in fair value are based on changes to forward market prices, including extrapolation of short-term observable inputs into forecasted prices for illiquid forward periods. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts.

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Level 3 Valuation Process

The process of determining fair value is the responsibility of SCE's risk management department, which reports to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs are validated for reasonableness by comparison against prior prices, other broker quotes and volatility fluctuation thresholds. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness.

The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:

	Fair Value (in millions)							Significant	Range
June 30, 2013	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	22		$	7		Option model	Volatility of gas prices	23% - 32% (29%)
								Volatility of power prices	28% - 81% (44%)
								Power prices	$45.20 - $55.50 ($49.60)
Forwards	1			5			Discounted cash flow	Power prices	$23.90 - $49.30 ($40.20)
CRRs	137			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Tolling	8			1,123			Option model	Volatility of gas prices	15% - 32% (20%)
								Volatility of power prices	25% - 81% (29%)
								Power prices	$39.70 - $71.20 ($51.90)
Netting	(6		)	(6		)
Total derivative contracts	$	162		$	1,129

	Fair Value (in millions)							Significant	Range
December 31, 2012	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	40		$	12		Option model	Volatility of gas prices	25% - 36% (33%)
								Volatility of power prices	29% - 64% (42%)
								Power prices	$41.70 - $59.20 ($47.00)
Forwards	2			4			Discounted cash flow	Power prices	$23.10 - $44.90 ($31.10)
CRRs	186			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Gas options	—			2			Option model	Volatility of gas prices	28% - 36% (34%)
Tolling	4			1,005			Option model	Volatility of gas prices	17% - 36% (22%)
								Volatility of power prices	26% - 64% (29%)
								Power prices	$35.00 - $84.10 ($55.40)
Netting	(11		)	(11		)
Total derivative contracts	$	221		$	1,012

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Level 3 Fair Value Sensitivity

Gas Options, Electricity Options, and Tolling Arrangements

The fair values of SCE's option contracts and tolling arrangements contain intrinsic value and time value. Intrinsic value is the difference between the market price and strike price of the underlying commodity. Time value is made up of several components, including volatility, time to expiration, and interest rates. The fair value of option contracts changes as the underlying commodity price moves away or towards the strike price. The option model for tolling arrangements reflects plant specific information such as operating and start-up costs.

For tolling arrangements and certain gas and power option contracts where SCE is the buyer, increases in volatility of the underlying commodity prices would result in increases to fair value as it represents greater price movement risk. As power and gas prices increase, the fair value of the option contracts and tolling arrangements tends to increase. The valuation of power option contracts and tolling arrangements is also impacted by the correlation between gas and power prices. As the correlation increases, the fair value of power option contracts and tolling arrangements tends to decline.

Forward Power Contracts

Generally, an increase (decrease) in long-term forward power prices at illiquid locations where SCE is the buyer relative to the contract price will increase (decrease) fair value.

Congestion Revenue Rights

Where SCE is the buyer, generally increases (decreases) in forecasted load in isolation would result in increases (decreases) to the fair value. In general, an increase (decrease) in electricity and gas prices at illiquid locations tends to result in increases (decreases) to fair value; however, changes in electricity and gas prices in opposite directions may have varying results on fair value.

Nuclear Decommissioning Trusts

SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information.

Fair Value of Long-Term Debt Recorded at Carrying Value

The carrying value and fair value of Edison International and SCE's long-term debt is as follows:

	June 30, 2013				December 31, 2012
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
SCE	$	9,227	$	10,168	$	8,828	$	10,505
Edison International	9,630		10,593		9,231		10,944

Fair value of Edison International and SCE's short-term and long-term debt is classified as Level 2 and is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes of new issue prices and relevant credit information.

The carrying value of Edison International and SCE's trade receivables and payables, other investments, and short-term debt approximates fair value.

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Note 5.    Debt and Credit Agreements

Long-Term Debt

In March 2013, SCE issued $400 million of 3.90% first and refunding mortgage bonds due in 2043. The proceeds from these bonds were used to repay commercial paper borrowings and to fund SCE's capital program.

Credit Agreements and Short-Term Debt

At June 30, 2013, SCE's outstanding commercial paper was $828 million at a weighted-average interest rate of 0.27%. This commercial paper was supported by a $2.75 billion multi-year revolving credit facility. At June 30, 2013, letters of credit issued under SCE's credit facility aggregated $96 million and are scheduled to expire in twelve months or less. At December 31, 2012, the outstanding commercial paper was $175 million at a weighted-average interest rate of 0.37%.

At June 30, 2013, Edison International Parent's outstanding short-term debt was $25 million at a weighted-average interest rate of 1.48%. This short-term debt was supported by a $1.25 billion multi-year revolving credit facility. At December 31, 2012, Edison International had no outstanding short-term debt.

On July 18, 2013, SCE and Edison International Parent amended their credit facilities to extend the maturity dates to July 2018 for $2.6 billion and $1.182 billion, respectively. The remaining $150 million and $68 million of the SCE and Edison International Parent credit facilities, respectively, will mature in May 2017.

Note 6.    Derivative Instruments

Derivative financial instruments are used to manage exposure to commodity price risk. SCE manages commodity price risk in part by entering into forward commodity transactions, including options, swaps and forwards, tolling arrangements and CRRs. To mitigate credit and default risk SCE enters into master netting agreements or similar agreements whenever possible. These transactions are approved by the CPUC or executed in compliance with CPUC-approved procurement plans. SCE recovers its related hedging costs through the energy resource recovery account ("ERRA"), and as a result, exposure to commodity price and credit and default risks are not expected to impact earnings, but may impact cash flows.

Commodity Price Risk

Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and power purchase agreements. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and power purchase agreements in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements.

Credit and Default Risk

Credit and default risk represents the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments.

Certain power contracts contain master netting agreements or similar agreements, which generally allows counterparties subject to the agreement to set-off amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Certain power contracts contain a provision that requires SCE to maintain an investment grade credit rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to pay the derivative liability or post additional collateral. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $59 million and $6 million as of June 30, 2013 and December 31, 2012, respectively, for which SCE has posted no collateral to its counterparties for the respective periods. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2013, SCE would be required to post collateral in the amount of $6 million, excluding the impact of unpaid closed positions as their settlement is not impacted by the credit-risk-related contingent features.

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Fair Value of Derivative Instruments

SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2013
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	106		$	74		$	180		$	170		$	1,035		$	1,205		$	1,025
Gross amounts offset in the consolidated balance sheets	(15		)	(1		)	(16		)	(15		)	(1		)	(16		)	—
Cash collateral posted1	—			—			—			(15		)	(7		)	(22		)	(22		)
Net amounts presented in the consolidated balance sheets	$	91		$	73		$	164		$	140		$	1,027		$	1,167		$	1,003

	December 31, 2012
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	151		$	91		$	242		$	186		$	954		$	1,140		$	898
Gross amounts offset in the consolidated balance sheets	(22		)	(6		)	(28		)	(22		)	(6		)	(28		)	—
Cash collateral posted1	—			—			—			(38		)	(9		)	(47		)	(47		)
Net amounts presented in the consolidated balance sheets	$	129		$	85		$	214		$	126		$	939		$	1,065		$	851

¹  In addition, SCE has posted $8 million of collateral that is not offset against the derivative liabilities and is reflected in "Other current assets" on both the June 30, 2013 and December 31, 2012 consolidated balance sheets.

Income Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchase power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The results of derivative activities and related regulatory offsets are recorded in cash flows from operating activities in the consolidated statements of cash flows.

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Realized losses	$	(7	)	$	(67	)	$	(23	)	$	(122	)
Unrealized gains (losses)	(64		)	423			(118		)	62

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Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2013	December 31, 2012
Electricity options, swaps and forwards	GWh	11,460	15,884
Natural gas options, swaps and forwards	Bcf	38	100
Congestion revenue rights	GWh	124,973	149,774
Tolling arrangements	GWh	99,926	101,485

Note 7.    Income Taxes

Effective Tax Rate

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Income (loss) from continuing operations before income taxes	$	(184	)	$	307		$	199		$	593
Provision for income tax at federal statutory rate of 35%	(64		)	107			70			207
Increase (decrease) in income tax from:
State tax, net of federal benefit	(20		)	8			(17		)	14
Property-related	(22		)	(10		)	(64		)	(19		)
Uncertain tax positions	11			—			18			1
Other	(7		)	(5		)	(11		)	(11		)
Total income tax expense (benefit) from continuing operations	$	(102	)	$	100		$	(4	)	$	192
Effective tax rate	*			32.6		%	*			32.4		%
SCE:
Income (loss) from continuing operations before income taxes	$	(166	)	$	322		$	229		$	622
Provision for income tax at federal statutory rate of 35%	(58		)	113			80			218
Increase (decrease) in income tax from:
State tax, net of federal benefit	(23		)	10			(9		)	20
Property-related	(22		)	(10		)	(64		)	(20		)
Uncertain tax positions	11			(1		)	17			—
Other	(7		)	(4		)	(11		)	(10		)
Total income tax expense (benefit) from continuing operations	$	(99	)	$	108		$	13		$	208
Effective tax rate	*			33.5		%	5.7		%	33.4		%

^*  Not meaningful

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred income tax expense.

Property-related items include recognition of income tax benefits from repair deductions for income tax purposes.

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Tax Disputes

Edison International's federal income tax returns and its California combined franchise tax returns are currently open for years subsequent to 2002. In addition, specific California refund claims made by Edison International for years 1991 through 2002 are currently under review by the Franchise Tax Board.

Tax Years 2003 – 2006

The IRS examination phase of tax years 2003 through 2006 was completed in the fourth quarter of 2010, which included proposed adjustments for the following two items:

• A proposed adjustment increasing the taxable gain on the 2004 sale of EME's international assets, which if sustained, would result in a federal tax payment of approximately $203 million, including interest and penalties through June 30, 2013 (the IRS has asserted a 40% penalty for understatement of tax liability related to this matter).

• A proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $98 million, including interest through June 30, 2013.

Edison International disagrees with the proposed adjustments and filed a protest with the IRS in the first quarter of 2011. The appeals process to date has not resulted in a change in the proposed adjustment by the IRS on the taxable gain on the 2004 sale of EME's international assets. If a deficiency notice is issued on this item, it would require payment of the tax, interest and any penalties within 90 days of its issuance or a filing of a petition in United States Tax Court.

Tax Years 2007 – 2009

The IRS examination phase of tax years 2007 through 2009 was completed during the first quarter of 2013. Edison International received a Revenue Agent Report from the IRS on February 28, 2013 which included a proposed adjustment to disallow a component of SCE's repair allowance deduction (similar to the 2003 – 2006 tax years). The proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $74 million, including interest through June 30, 2013. Edison International disagrees with the proposed adjustments and filed a protest with the IRS in April 2013.

Note 8.    Compensation and Benefit Plans

Pension Plans

Edison International made contributions of $104 million during the six months ended June 30, 2013, which includes contributions of $94 million by SCE. Edison International expects to make $86 million during the remainder of 2013, which includes $70 million from SCE. Annual contributions made to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.

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Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	38		$	39		$	76		$	77
Interest cost	42			45			84			91
Expected return on plan assets	(57		)	(55		)	(114		)	(111		)
Settlement costs	49			—			49			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	15			16			30			33
Expense under accounting standards	$	88		$	46		$	127		$	92
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	57		$	73		$	113		$	146
SCE:
Service cost	$	37		$	37		$	74		$	74
Interest cost	41			45			82			90
Expected return on plan assets	(57		)	(55		)	(114		)	(110		)
Settlement costs	48			—			48			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	14			15			28			30
Expense under accounting standards	$	84		$	43		$	120		$	86
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	53		$	70		$	106		$	140

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $4 million and $3 million for the three months ended June 30, 2013, respectively, and $7 million and $5 million for the six months ended June 30, 2013, respectively.

Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. As of May 31, 2013, lump-sum payments to employees retiring in 2013 from the SCE Retirement Plan (primary due to workforce reductions described below) exceeded the estimated service and interest costs for the year. A settlement requires remeasurement of both the plan pension obligations and plan assets as of the date of the settlement. The remeasurement of the SCE Retirement Plan as of May 31, 2013 resulted in an actuarial gain of $369 million, including $362 million for SCE. The actuarial gain is primarily due to an increase in the discount rate to 4.25% from 3.75% (due to higher interest rates) and performance of the plan assets from January 1 to May 31, 2013.

After remeasurement, GAAP requires an acceleration of a portion of unrecognized net losses attributable to such lump-sum payments as additional pension expense. The additional pension expense from acceleration of the portion of unrecognized net losses during the second quarter of 2013 was $49 million, including $48 million for SCE. The additional pension expense related to SCE did not impact net income as such amounts are probable of recovery through future rates.

The projected benefit obligations exceeded the fair value of the SCE Retirement Plan assets by $658 million at May 31, 2013 compared to $1.1 billion at December 31, 2012.

Postretirement Benefits Other Than Pensions

Edison International made contributions of $15 million during the six months ended June 30, 2013 and expects to make $20 million during the remainder of 2013, all of which are expected to be made by SCE. Annual contributions made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans. Benefits under these plans, with some exceptions, are generally unvested and subject to change.

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Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	14		$	12		$	28		$	24
Interest cost	26			29			52			57
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			23
Total expense	$	18		$	16		$	26		$	32
SCE:
Service cost	$	14		$	12		$	27		$	24
Interest cost	26			28			52			56
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			22
Total expense	$	18		$	15		$	25		$	30

¹  Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.

²  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was less than $1 million and zero for the three- and six-months ended June 30, 2013, respectively.

Workforce Reductions

In 2012, SCE commenced multiple efforts to reduce its workforce, which were largely completed by the end of the second quarter of 2013, in order to reflect SCE's strategic direction to optimize its cost structure, moderate customer rate increases and align its cost structure with its peers. In addition, in June 2013, SCE announced plans to permanently retire San Onofre. This announcement will result in a further reduction of the San Onofre workforce by approximately 960 employees and support organizations by approximately 175 employees. The majority of such reductions are expected to occur in 2013. See Note 9 for further details. The following table provides a summary of changes in the accrued severance liability associated with these reductions:

(in millions)
Balance at January 1, 2013	$	104
Additions	109
Payments	(88		)
Balance at June 30, 2013	$	125

The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements.

Note 9.     Permanent Retirement of San Onofre

Tube Leak and Response

Replacement steam generators were installed at San Onofre in 2010 and 2011. In the first quarter of 2012, a water leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube to tube wear. At the time, Unit 2 was off-line for a planned outage when areas of unexpected tube to support structure wear were found. Both Units have remained shut down since early 2012

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and have undergone extensive inspections, testing and analysis following discovery of the leak. In October 2012, SCE submitted a restart plan to the Nuclear Regulatory Commission (“NRC”).

Permanent Retirement

On June 6, 2013 SCE decided to permanently retire Units 2 and 3. SCE concluded that despite the NRC's extensive review of SCE's restart plan for Unit 2 since October 2012, there still remained considerable uncertainty about when the review process would be concluded. A ruling by an adjudicatory arm of the NRC, the Atomic Safety and Licensing Board, on May 13, 2013 created further uncertainty regarding when a final decision might be made on restarting Unit 2. Additional administrative processes and appeals could result in delays of more than a year. During this period, the costs of maintaining San Onofre in readiness for restart and to replace the power San Onofre previously provided would have continued to mount.

Given the considerable uncertainty of when or whether SCE would be permitted to restart Unit 2, SCE concluded that it was in the best interest of its customers, shareholders and other stakeholders to permanently retire the Units and focus on planning for the replacement resources which will eventually be required for grid reliability. SCE also concluded that its decision to retire the Units would facilitate more orderly planning for California's energy future without the uncertainty of whether, when or how long San Onofre would continue to operate.

CPUC Review

In October 2012 the CPUC issued an Order Instituting Investigation (“OII”) that consolidated all San Onofre issues in related regulatory proceedings to consider appropriate cost recovery for all San Onofre costs, including among other costs, the cost of the steam generator replacement project, substitute market power costs, capital expenditures, operation and maintenance costs, and seismic study costs. The OII requires that all San Onofre-related costs incurred on and after January 1, 2012 be tracked in a memorandum account and, to the extent collected in rate levels authorized in the 2012 GRC or other proceeding, be subject to refund. The Order also states that the CPUC will determine whether to order the immediate removal, effective as of the date of the OII, of costs and rate base related to San Onofre from SCE's rates. Various other parties have filed testimony in the OII asking for disallowance of some or all of the San Onofre-related costs.

A summary of financial items related to San Onofre and implicated in the OII are as follows:

• Approximately $860 million of SCE's authorized revenue requirement collected since January 1, 2012 (subject to refund) associated with operating and maintenance expenses, and depreciation and return on SCE's investment in Unit 2, Unit 3 and common plant. In June 2013, SCE recorded approximately $56 million in severance costs associated with its decision to retire both Units. Until funding of post June 6, 2013 activities related to the permanent closure of the plant is transitioned from base rates to SCE's nuclear decommissioning trusts set up for that purpose, SCE will continue to record these costs through the San Onofre OII memorandum account, subject to refund.

• At May 31, 2013, SCE's net investment associated with San Onofre was $2.1 billion, including net book value of remaining property, plant and equipment, construction work-in-progress, nuclear fuel inventory and materials and supplies.

• In 2005, the CPUC authorized expenditures of approximately $525 million ($665 million based on SCE's estimate after adjustment for inflation using the Handy-Whitman Index) for SCE's 78.21% share of the costs to purchase and install the four new steam generators in Units 2 and 3 and remove and dispose of their predecessors. SCE has spent $602 million through June 30, 2013 on the steam generator replacement project, not including inspection, testing and repair costs subsequent to the replacement steam generator leak in Unit 3.

• As a result of outages associated with the steam generator inspection and repair, electric power and capacity normally provided by San Onofre were purchased in the market by SCE. These market power costs will be reviewed as part of the CPUC's OII proceeding. Estimated market power costs calculated in accordance with the OII methodology were approximately $670 million as of May 31, 2013, excluding avoided nuclear fuel costs of approximately $138 million which are no longer included as a reduction due to SCE's decision to permanently retire Units 2 and 3. Such amount includes costs of approximately $65 million associated with planned outage periods. SCE believes that such costs should be excluded as they would have been incurred even had the replacement steam generators performed as expected. The CPUC will ultimately determine a final methodology for estimating market power costs as it continues its review of the issues in the OII. Future market power costs are uncertain.

• Through June 30, 2013, SCE's share of incremental inspection and repair costs totaled $115 million for both Units (not including payments made by MHI as described below). SCE recorded its share of payments made to date by MHI ($36 million) as a reduction of incremental inspection and repair costs in 2012.

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SCE believes that the actions taken and costs incurred in connection with the San Onofre replacement steam generators, outages and permanent retirement have been prudent. Nevertheless, SCE cannot provide assurance that the CPUC will not disallow costs incurred or order refunds to customers of amounts collected in rates or that SCE will be successful in recovering amounts from third parties. Disallowances of costs and/or refund of amounts received from customers could be material and adversely affect SCE's financial condition, results of operations and cash flows.

Accounting for Early Retirement of San Onofre Units 2 and 3

As a result of the decision to early retire San Onofre Units 2 and 3, generally accepted accounting principles (“GAAP”) require reclassification of the amounts recorded in property, plant and equipment and related tangible operating assets to a regulatory asset to the extent that management concludes it is probable of recovery through future rates. Regulatory assets may also be recorded to the extent management concludes it is probable that direct and indirect costs incurred to retire Units 2 and 3 as of each reporting date are recoverable through future rates. These costs may include, but are not limited to, severance benefits to reduce the workforce at San Onofre to the staffing required to safely store and secure the plant prior to conducting decommissioning activities, losses on termination of purchase contracts, including nuclear fuel, and losses on disposition of excess inventory. GAAP also require recognition of a liability to the extent management concludes it is probable SCE will be required to refund amounts from authorized revenues previously collected from customers (that are subject to refund).

In assessing whether to record regulatory assets as a result of the decision to retire San Onofre Units 2 and 3 early and whether to record liabilities for refunds to customers, SCE considered the interrelationship of recovery of costs and refunds to customers for accounting purposes, as such matters are being considered by the CPUC on a consolidated basis in the San Onofre OII. SCE also considered that it will continue to use certain portions of the plant (such as fuel storage, security facilities and buildings) as part of ongoing activities at the site. SCE additionally reviewed relevant regulatory precedents and statutory provisions regarding the regulatory recovery of early retired assets previously placed in service and related materials, supplies and fuel. Such precedents have generally provided cost recovery of the remaining net investment in early retired assets, absent imprudency. Such precedents vary on whether a full, partial or no rate of return is allowed on the investment in such assets, but generally provide accelerated recovery when less than a full return is authorized. Furthermore, once the Units are removed from rate base, under normal principles of cost of service ratemaking and relevant statutory provisions, SCE should, absent imprudence, recover the costs it incurs to purchase power that might otherwise have been produced by San Onofre. SCE continues to believe that the actions it has taken and the costs it has incurred in connection with the San Onofre replacement steam generators and outages have been prudent.

As a result of such considerations, SCE considered a number of potential outcomes for the matters being considered by the CPUC in the San Onofre OII, none of which are assured, but a number of which in SCE's opinion appeared to be more likely than a number of other outcomes. SCE considered the likelihood of outcomes to determine the amount deemed probable of recovery. These outcomes included a number of variables, including recovery of and return on the components of SCE's net investment, and the potential for refunds to customers for either substitute power or operating costs occurring over different time periods. SCE also included in its consideration of possible outcomes, the requirement under GAAP to discount future cash flows from recovery of assets without a return at its incremental borrowing rate.

As a result of the foregoing assessment, SCE:

• Reclassified $1,521 million of its total investment in San Onofre at May 31, 2013 as described above to a regulatory asset (“San Onofre Regulatory Asset”) based on management's conclusion it is probable, though not certain, that such costs will be recoverable through future rates. Included in the San Onofre Regulatory Asset is approximately $404 million of property, plant and equipment, including construction work in progress, that is expected to support ongoing activities at the site. In addition, to the extent the San Onofre Regulatory Asset includes excess nuclear fuel and material and supplies, SCE will, if possible, sell such excess amounts to third parties and reduce the amount of the regulatory asset by such proceeds.

• Recorded an impairment charge of $575 million ($365 million after tax) in the second quarter of 2013.

As part of the decision to permanently retire the Units at San Onofre, SCE announced workforce reductions of approximately 960 employees and accrued additional severance costs of $56 million (SCE's share). SCE recorded a regulatory asset of $32 million during June for its cost of service, including severance, in excess of authorized revenues, based on its conclusion that it is probable, though not certain, that such costs will be recovered in future rates. The estimate for these costs was previously included in SCE's estimate to decommission the units. After acceptance of the decommissioning plan by the NRC, SCE expects a further workforce reduction of approximately 175 employees.

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SCE's judgment that the San Onofre Regulatory Asset recorded at June 30, 2013 is probable, though not certain, of recovery is based on SCE's knowledge of the facts and judgment in applying relevant regulatory principles to the issues under review in the OII proceeding and in accordance with GAAP. Such judgment is subject to considerable uncertainty, and regulatory principles and precedents are not necessarily binding and are capable of interpretation. No decisions have been rendered in the OII proceeding regarding recoverability of costs from future rates or refunds of amounts to customers, and the current proceedings are either in their early phases, or not yet scheduled. The CPUC may or may not agree with SCE, after review of all of the facts and circumstances, and SCE may advocate positions that it believes are supported by relevant precedent and regulatory principles that are more favorable to SCE than the charges it has recorded in accordance with GAAP. The CPUC could also conclude that SCE acted imprudently in connection with the San Onofre replacement steam generators and the outage since January 2012. Thus, there can be no assurance that the OII proceeding will provide for recoveries as estimated by SCE, including the recovery of costs recorded as a regulatory asset, or that the CPUC does not order refunds to customers from amounts that were previously authorized as subject to refund. Accordingly, the amount recorded for the San Onofre Regulatory Asset at June 30, 2013, is subject to change based upon future developments and the application of SCE's judgment to those events.

Third-Party Recovery

The replacement steam generators were designed and supplied by MHI and are warranted for an initial period of 20 years from acceptance. MHI is contractually obligated to repair or replace defective items with dispatch and to pay specified damages for certain repairs. MHI's liability under the purchase agreement is limited to $138 million and excludes consequential damages, defined to include "the cost of replacement power;" however, limitations in the contract are subject to applicable exceptions both in the contract and under law. SCE has advised MHI that it believes one or more of such exceptions apply and MHI's liability is not limited to $138 million, and MHI has advised SCE that it disagrees. On July 18, 2013, SCE, on behalf of itself and in its capacity as operating agent of San Onofre, provided MHI with a formal notice of dispute, notifying MHI that it intends to initiate claims against MHI for damages resulting from its supplying the faulty replacement steam generators. In the notice of dispute, SCE alleges that MHI totally and fundamentally failed to deliver what it promised, and that the contractual limitations of liability are subject to applicable exceptions both in the contract and under law. Pursuant to the purchase contract under which the replacement steam generators were supplied, service of the notice of dispute commences a 90-day period for SCE and MHI to resolve differences. If MHI and SCE are unable to resolve their differences regarding liability for the damages caused by MHI's design, manufacture and delivery of the faulty steam generators, then SCE expects to initiate binding arbitration under the auspices of the International Chamber of Commerce in accordance with the purchase contract. After SCE delivered the formal notice of dispute to MHI, each of the other co-owners filed lawsuits against MHI in San Diego County Superior Court, alleging claims arising from MHI's supplying the faulty steam generators.

SCE, on behalf of itself and the other San Onofre co-owners, has submitted seven invoices to MHI totaling $149 million for steam generator repair costs incurred through April 30, 2013. MHI paid the first invoice of $45 million, while reserving its right to challenge any of the charges in the invoice. In January 2013, MHI advised SCE that it rejected a portion of the first invoice and required further documentation regarding the remainder of the invoice. SCE has recorded its share of the invoice paid as a reduction of repair and inspection costs.

San Onofre carries both property damage and outage insurance issued by Nuclear Electric Insurance Limited (“NEIL”) and has placed NEIL on notice of claims under the two policies. The NEIL policies have a number of exclusions and limitations that may reduce or eliminate coverage. As of the date of this report, SCE has filed separate proofs of loss for Unit 2 and Unit 3 under the outage policy covering the period of the outage through April 27, 2013 that total $352 million (SCE's share of which is approximately $276 million). Pursuant to these proofs of loss, SCE is seeking the weekly indemnity amounts provided under the outage policy for each Unit. Outage policy benefits are reduced by 90% for the periods following announcement of the permanent shutdown of the Units. SCE has not submitted a proof of loss under the property damage policy. No amounts have been recognized in SCE's financial statements, pending NEIL's response. NEIL has advised SCE that it does not expect to make any determinations of coverage until late in the fourth quarter of this year or possibly next year.

Continuing NRC Proceedings

As part of the NRC's review of the San Onofre outage and proceedings related to the possible restart of Unit 2, the NRC appointed an Augmented Inspection Team to review SCE's performance. The Augmented Inspection Team has not completed its work, and could determine that SCE's performance in connection with the San Onofre replacement steam generators and the outage was deficient. The NRC's Office of Investigations has been conducting an investigation into the accuracy and completeness of information SCE provided to the Augmented Inspection Team. SCE has also been made aware of an investigation related to San Onofre by the NRC's Office of Inspector General, which generally reviews internal NRC affairs.

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Certain anti-nuclear groups and individual members of Congress have alleged that SCE knew of deficiencies in the steam generators when they were installed or otherwise did not correctly follow NRC requirements in connection with the design and installation of the replacement steam generators, something which SCE has vigorously denied, and have called for investigations, including by the Department of Justice. SCE cannot predict when or whether ongoing inquiries or investigations by the NRC will be completed or whether inquiries by other government agencies will be initiated. Should the NRC find a deficiency in SCE's performance or provision of information, SCE could be subject to additional NRC actions, including the imposition of penalties, and the findings could be taken into consideration in the CPUC regulatory proceedings described above.

Note 10.    Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs of removal of SCE's 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.

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

	Longest Maturity Dates	Amortized Cost						Fair Value
(in millions)		June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012
Stocks	—	$	728		$	978		$	2,085		$	2,271
Municipal bonds	2051	504			518			592			644
U.S. government and agency securities	2043	975			547			1,025			603
Corporate bonds	2054	293			324			347			410
Short-term investments, primarily cash equivalents	One-year	274			117			280			121
Total investments		2,774			2,484			4,329			4,049
Net payables		(148		)	(1		)	(148		)	(1		)
Total nuclear decommissioning trusts		$	2,626		$	2,483		$	4,181		$	4,048

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 $1.5 billion and $496 million for the three months ended June 30, 2013 and 2012, respectively and $2.0 billion and $1.1 billion for the six months ended June 30, 2013 and 2012, respectively. Unrealized holding gains, net of losses, were $1.3 billion and $1.6 billion at June 30, 2013 and December 31, 2012, respectively.

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Balance at beginning of period	$	4,246		$	3,853		$	4,048		$	3,592
Gross realized gains	137			15			142			40
Gross realized losses	(1		)	(1		)	(2		)	(5		)
Unrealized gains (losses), net	(185		)	(67		)	(9		)	116
Other-than-temporary impairments	(21		)	(19		)	(29		)	(23		)
Interest, dividends, contributions and other	5			29			31			90
Balance at end of period	$	4,181		$	3,810		$	4,181		$	3,810

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

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Note 11.    Regulatory Assets and Liabilities

As a result of the permanent retirement of San Onofre, SCE has reclassified at May 31, 2013, $1,521 million of its investment including property, plant and equipment, nuclear fuel and inventory, and other assets to a regulatory asset. The San Onofre regulatory asset will increase or decrease in subsequent periods based on the difference between authorized revenue related to San Onofre and actual cost of service that is expected to be recovered. In June 2013, SCE cost of service, including severance costs of $56 million, exceeded authorized revenue by $32 million resulting in an increase in the San Onofre regulatory asset.

As of June 30, 2013, SCE also recorded a regulatory asset for recovery of $33 million of estimated costs associated with the cancellation and management of future deliveries of nuclear fuel. See Note 12 for further information.

Regulatory Assets

Regulatory assets included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	709	$	502
Energy derivatives	94		70
Total Current	803		572
Long-term:
Deferred income taxes, net	2,759		2,663
Pensions and other postretirement benefits	1,119		1,550
Energy derivatives	990		900
Unamortized investments, net	363		507
San Onofre	1,584		—
Unamortized loss on reacquired debt	218		228
Nuclear-related investment, net	35		141
Regulatory balancing accounts	78		73
Other	348		360
Total Long-term	7,494		6,422
Total Regulatory Assets	$	8,297	$	6,994

Regulatory Liabilities

Regulatory liabilities included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	443	$	484
Other	50		52
Total Current	493		536
Long-term:
Costs of removal	2,791		2,731
Asset Retirement Obligations	853		1,385
Regulatory balancing accounts	1,183		1,091
Other	9		7
Total Long-term	4,836		5,214
Total Regulatory Liabilities	$	5,329	$	5,750

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The regulatory liability related to asset retirement obligations represents the nuclear decommissioning trust assets in excess of the related asset retirement obligations. The decrease in this regulatory liability during June 2013 results from a revision to the asset retirement obligations of San Onofre. For further information, see Note 1.

Note 12.    Commitments and Contingencies

Third-Party Power Purchase Agreements

During the six months ended June 30, 2013, SCE had new power purchase contracts classified as operating leases. The additional commitments are estimated to be: $197 million for 2014, $198 million in 2015, $202 million in 2016, $264 million in 2017 and $1.8 billion for the period remaining thereafter.

Other Commitments

As of December 31, 2012, SCE had nuclear fuel supply commitments of $912 million for the 2013 – 2017 period and thereafter. As a result of the decision to permanently retire San Onofre Units 2 and 3, SCE has submitted fuel contract delivery cancellation notices for these contractual arrangements. As of June 30, 2013, SCE accrued a liability of $33 million related to estimated costs associated with the cancellation and management of future deliveries of nuclear fuel and recorded a regulatory asset for recovery of costs in the future. See Note 9 for further discussion of SCE's decision to permanently retire San Onofre.

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. The contracts discussed below included performance guarantees.

Indemnity Provided as Part of the Acquisition of Mountainview

In connection with the acquisition of the Mountainview power plant, SCE agreed to indemnify the seller with respect to specific environmental claims related to SCE's previously owned San Bernardino Generating Station, divested by SCE in 1998 and reacquired in 2004 as part of the Mountainview acquisition. SCE retained certain responsibilities with respect to environmental claims as part of the original divestiture of the station. The aggregate liability for either party to the purchase agreement for damages and other amounts is a maximum of $60 million. This indemnification for environmental liabilities expires on or before March 12, 2033. SCE has not recorded a liability related to this indemnity.

Mountainview Filter Cake Indemnity

SCE has indemnified the City of Redlands, California in connection with Mountainview's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity.

Other Indemnities

Edison International and SCE provide other indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its results of operations or liquidity.

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San Onofre

SCE believes that the actions taken and costs incurred in connection with the San Onofre replacement steam generators and outages have been prudent. Accordingly, SCE considers its operating, capital, and market power costs, recoverable through base rates and the ERRA balancing account, as offset by third-party recoveries where applicable. SCE cannot provide assurance that the CPUC will not disallow costs incurred or order refunds to customers of amounts collected in rates, or that SCE will be successful in recovering amounts from third parties. Disallowances of costs and/or refund of amounts received from customers could be material and adversely affect SCE's financial condition, results of operations and cash flows. SCE will pursue recoveries arising from available agreements, but there is no assurance that SCE will recover all of its applicable costs pursuant to these arrangements. See Note 9 for further details.

EME Chapter 11 Bankruptcy Filing

On the Petition Date, EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court (see Note 16 for further details). Under the Support Agreement to which EME, Edison International and certain of EME's senior unsecured noteholders ("Consenting Noteholders") were parties, each of them had agreed to support Bankruptcy Court approval of the Settlement Transaction. EME was required to seek authority from the Bankruptcy Court to enter into the Settlement Transaction by the deadline set out in the Support Agreement and did not do so. EME's failure to meet this deadline rendered the Support Agreement terminable by Edison International or the Consenting Noteholders at any time, and on July 25, 2013, a requisite majority of the Consenting Noteholders provided Edison International and EME with a notice terminating the Support Agreement, effective August 1, 2013. As a result, the extension of the Tax Allocation Agreement contemplated by the Support Agreement has also terminated, and the Tax Allocation Agreement is now due to expire by its terms on December 31, 2013. Furthermore, claims, which Edison International submitted in the EME bankruptcy on a contingency basis, will not be released, and inasmuch as Edison International will not be entitled to the benefits of the Settlement Transaction, it will remain subject to any claims of EME and potentially its creditors, including claims relating to or arising out of any shared services, the Tax Allocation Agreement, and any other relationships or transactions between the companies. Edison International cannot, at this time, predict whether the parties will reach other agreements or if the termination of the Support Agreement will result in the pursuit of potential disputes among the parties.

CPUC Safety and Enforcement Division Investigations

San Gabriel Valley Windstorm Investigation

In November 2011, a windstorm resulted in significant damage to SCE’s electric system and service outages for SCE customers primarily in the San Gabriel Valley. The CPUC directed its Safety and Enforcement Division (“SED”) to conduct an investigation focused on the cause of the outages, SCE’s service restoration effort, and SCE’s customer communications during the outages. The SED issued its final report on January 11, 2013. The report asserts that SCE and others with whom SCE shares utility poles violated certain CPUC safety rules applicable to overhead line construction, maintenance and operation, which may have caused the failures of affected poles and supporting cables. The report also concludes that SCE’s restoration time was not adequate and makes other assertions. Additionally, the report contends that SCE violated CPUC rules by failing to preserve evidence relevant to the investigation when it did not retain damaged poles that were replaced following the windstorm. If the CPUC issues an OII regarding this matter and SCE is found to have violated any CPUC rules, it could face penalties. SCE is unable to estimate a possible loss or range of loss associated with any penalties that may be imposed by the CPUC on SCE.

Malibu Fire Order Instituting Investigation

Following a 2007 wildfire in Malibu, California, the CPUC issued an OII to determine if any statutes, CPUC general orders, rules or regulations were violated by SCE or telecomm providers (“OII Respondents”) that shared the use of three failed power poles in the wildfire area. The SED has alleged, among other things, that the poles were overloaded, that the OII Respondents violated the CPUC's rules governing the design, construction and inspection of poles, and that SCE failed to preserve evidence relevant to the investigation and misled the CPUC during its investigation of the fire. In May 2013, SCE and the SED agreed to the terms of a proposed settlement that would cause SCE to pay a total of $37 million, $17 million of which will be allocated to pole safety studies and remediation in the Malibu area and $20 million of which will be a penalty paid to the State General Fund. The proposed settlement remains subject to CPUC approval.

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Four Corners New Source Review Litigation

In October 2011, four private environmental organizations filed a CAA citizen lawsuit against the co-owners of Four Corners. The complaint alleges that certain work performed at the Four Corners generating units 4 and 5, over the approximate periods of 1985 – 1986 and 2007 – 2010, constituted plant “major modifications” and the plant's failure to obtain permits and install best available control technology ("BACT") violated the PSD requirements and the New Source Performance Standards of the CAA. The complaint also alleges subsequent and continuing violations of BACT air emissions limits. The lawsuit seeks injunctive and declaratory relief, civil penalties, including a mitigation project and litigation costs. In November 2012, the parties requested a stay of the litigation to allow for settlement discussion, and the matter is currently stayed to August 2013. In November 2010, SCE entered into an agreement to sell its ownership interest in generating units 4 and 5 to APS. The sale remains contingent upon APS obtaining a long-term fuel supply agreement for the plant. As of January 2013, the sale agreement became terminable by either party, but as of the date of this report, the agreement has not been terminated. The purchase price is subject to certain adjustments under the sale agreement, which includes a reduction in the purchase price of $7.5 million for each month between October 1, 2012 and the closing date. Under the agreement SCE would remain responsible for its pro-rata share of certain environmental liabilities, including penalties arising from environmental violations prior to the sale. SCE is unable to estimate a possible loss or range of loss associated with this matter.

Environmental Remediation

Edison International records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. Edison International reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring and site closure. Unless there is a single probable amount, Edison International records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At June 30, 2013, Edison International's recorded estimated minimum liability to remediate its 19 identified material sites (sites in which the upper end of the range of the costs is at least $1 million) at SCE was $122 million, including $90 million related to San Onofre. In addition to its identified material sites, SCE also has 39 immaterial sites for which the total minimum recorded liability was $4 million. Of the $126 million total environmental remediation liability for SCE, $122 million has been recorded as a regulatory asset. SCE expects to recover $30 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $91 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. Edison International's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that Edison International may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up Edison International's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. Edison International believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $163 million and $8 million, respectively, all of which is related to SCE. The upper limit of this range of costs was estimated using assumptions least favorable to Edison International among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for 2013 and in each of the next four years are expected to range from $6 million to $33 million. Costs incurred for the six months ended June 30, 2013 and 2012 was $3 million and $4 million, respectively.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, Edison International believes that costs ultimately recorded will not materially affect its results of operations, financial position or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

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Nuclear Insurance

Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $12.6 billion. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available ($375 million). The balance is covered by a loss sharing program among nuclear reactor licensees. If a nuclear incident at any licensed reactor in the United States results in claims and/or costs which exceed the primary insurance at that plant site, all nuclear reactor licensees could be required to contribute their share of the liability in the form of a deferred premium.

Based on its ownership interests, SCE could be required to pay a maximum of approximately $235 million per nuclear incident. However, it would have to pay no more than approximately $35 million per incident in any one year. If the public liability limit above is insufficient, federal law contemplates that additional funds may be appropriated by Congress. This could include an additional assessment on all licensed reactor operators as a measure for raising further federal revenue.

NEIL, a mutual insurance company owned by entities with nuclear facilities, issues primary property damage, decontamination and excess property damage and accidental outage insurance policies. At San Onofre and Palo Verde, property damage insurance covers losses up to $500 million, including decontamination costs. Decontamination liability and excess property damage coverage exceeding the primary $500 million also has been purchased in amounts greater than the federal requirement of a minimum of approximately $1.1 billion. Property damage insurance also covers damages caused by acts of terrorism up to specified limits. Additional outage insurance covers part of replacement power expenses during an accident-related nuclear unit outage.

If losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year. Insurance premiums are charged to operating expense.

Wildfire Insurance

Severe wildfires in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of the failure of electric and other utility equipment. Invoking a California Court of Appeal decision, plaintiffs pursuing these claims have relied on the doctrine of inverse condemnation, which can impose strict liability (including liability for a claimant's attorneys' fees) for property damage. On September 15, 2012, SCE's parent, Edison International, renewed its insurance coverage, which included coverage for SCE's wildfire liabilities up to a $550 million limit (with a self-insured retention of $10 million per wildfire occurrence). As of June 1, 2013, additional coverage for certain wildfire liabilities of $450 million was obtained. Various coverage limitations within the policies that make up the insurance coverage could result in additional self-insured costs in the event of multiple wildfire occurrences during the policy period (September 15, 2012 to August 31, 2013 and June 1, 2013 to May 31, 2014). SCE may experience coverage reductions and/or increased insurance costs in future years. No assurance can be given that future losses will not exceed the limits of SCE's insurance coverage.

Spent Nuclear Fuel

Under federal law, the Department of Energy ("DOE") is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE did not meet its contractual obligation to begin acceptance of spent nuclear fuel by January 31, 1998. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for the current license period.

In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award in November 2011. SCE has returned to the San Onofre co-owners their respective share of the damage award paid. SCE, as operating agent, filed a lawsuit on behalf of the San Onofre owners against the DOE in the Court of Federal Claims in December 2011 seeking damages of approximately $98 million for the period from January 1, 2006 to December 31, 2010 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel. Additional legal action would be necessary to recover damages incurred after December 31, 2010. All damages recovered by SCE are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs.

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Note 13.    Preferred and Preference Stock of Utility

During the first quarter of 2013, SCE issued 160,004 shares of 5.10% Series G preference stock (cumulative, $2,500 liquidation value) to SCE Trust II, a special purpose entity formed to issue trust securities as discussed in Note 3. The Series G preference stock may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2018 if certain changes in tax or investment company laws occur. After March 15, 2018, SCE may redeem the Series G shares at par, in whole or in part. The shares are not subject to mandatory redemption. The proceeds from the sale of these shares were used to redeem all outstanding shares of Series B and C preference stock.

Note 14.    Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(87	)	$	(87	)
Other comprehensive loss before reclassifications	—			(2		)
Amounts reclassified from accumulated other comprehensive loss1	5			7
Net current-period other comprehensive loss	5			5
Balance at end of period	$	(82	)	$	(82	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	6		$	9
Tax expense	1			2
Total reclassification, net of tax	$	5		$	7

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

SCE's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(32	)	$	(29	)
Other comprehensive loss before reclassifications	—			(4		)
Amounts reclassified from accumulated other comprehensive loss1	2			3
Net current-period other comprehensive loss	2			(1		)
Balance at end of period	$	(30	)	$	(30	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	3		$	5
Tax expense	1			2
Total reclassification, net of tax	$	2		$	3

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

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Note 15.    Interest and Other Income and Other Expenses

Interest and other income and expenses are as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions)	2013		2012		2013		2012
SCE's interest and other income:
Equity allowance for funds used during construction	$	18	$	27	$	39	$	47
Increase in cash surrender value of life insurance policies	7		7		14		14
Interest income	4		2		6		3
Other	1		2		2		6
Total SCE's interest and other income	30		38		61		70
Edison International Parent and Other income	4		2		2		3
Total Edison International interest and other income	$	34	$	40	$	63	$	73
SCE's other expenses:
Civic, political and related activities and donations	$	9	$	10	$	15	$	17
Other	5		9		6		9
Total SCE's other expenses	14		19		21		26
Edison International Parent and Other other expenses	—		—		—		—
Total Edison International other expenses	$	14	$	19	$	21	$	26

Note 16.    Discontinued Operations

EME Chapter 11 Bankruptcy Filing

EME and certain of its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. On December 16, 2012, Edison International, EME and the Consenting Noteholders entered into a Transaction Support Agreement (the "Support Agreement"), that, subject to further documentation, Bankruptcy Court approval and certain other conditions, provided that:

• Edison International would cease to own EME when EME emerges from bankruptcy pursuant to a plan or reorganization.

• The tax allocation agreements with respect to EME would be extended through the earlier of the effective date of a plan of reorganization or December 31, 2014, and EME would remain bound to perform its obligations under such agreements.

• Edison International and EME would continue to provide ongoing shared services to each other in the ordinary course, consistent with the same terms and conditions on which those services have been provided in the past.

• Upon effectiveness of EME's plan of reorganization, Edison International would assume certain of EME's employee retirement related liabilities.

• Edison International, EME and the Consenting Noteholders who had signed the Support Agreement would exchange releases of claims, and EME and Edison International would cross-indemnify one another against liabilities arising from the conduct of their separate businesses.

The Support Agreement provided that, within 150 days following the Petition Date, EME was to seek authority from the Bankruptcy Court to enter into the Settlement Transaction, which was required to be obtained within 210 days following the Petition Date. EME did not seek such authority within the 150 day period, and the parties did not reach agreement on changes to the Support Agreement which would have altered the original schedule. The failure to meet the Support Agreement's milestones, however, rendered it terminable by Edison International or the Consenting Noteholders any time thereafter.

On July 25, 2013, a requisite majority of the Consenting Noteholders provided Edison International and EME with a notice terminating the Support Agreement, effective August 1, 2013. As a result, the extension of the Tax Allocation Agreement contemplated by the Support Agreement has also terminated, and the Tax Allocation Agreement is now due to expire by its terms on December 31, 2013. Furthermore, claims, which Edison International submitted in the EME bankruptcy on a contingency basis, will not be released, and inasmuch as Edison International will not be entitled to the benefits of the

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Settlement Transaction, it will remain subject to any claims of EME and potentially its creditors, including claims relating to or arising out of any shared services, the Tax Allocation Agreement, and any other relationships or transactions between the companies. Edison International cannot, at this time, predict whether the parties will reach other agreements or if the termination of the Support Agreement will result in the pursuit of potential disputes among the parties.

Deconsolidation

EME and those subsidiaries in Chapter 11 proceedings retain control of their assets and are authorized to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court. Effective December 17, 2012, Edison International no longer consolidates the earnings and losses of EME or its subsidiaries and has reflected its ownership interest in EME utilizing the cost method of accounting prospectively, under which Edison International's investment in EME is reflected as a single amount on the consolidated balance sheet of Edison International at December 31, 2012. Furthermore, Edison International has recorded a full impairment of the investment.

Edison International will not be affected by changes in EME's future financial results, other than those changes related to certain tax matters. Edison International has evaluated the continuing cash flows with EME and determined that these cash flows generated are indirect and immaterial. Edison International's continuing cash flows will not include any significant revenue-producing and cost-generating activities of EME.

Edison International considers EME to be an abandoned asset under generally accepted accounting principles, and, as a result, the operations of EME prior to December 17, 2012 and for all prior years, are reflected as discontinued operations in the consolidated financial statements. Included in Edison International's consolidated income statement was an income tax benefit of $12 million and $24 million for discontinued operations for the three- and six-months ended June 30, 2013, respectively. Operating revenue and loss before income taxes for discontinued operations were $406 million and $208 million, respectively, for the three months ended June 30, 2012, and $849 million and $383 million, respectively, for the six months ended June 30, 2012.

Contingencies

Edison International Parent has not guaranteed the obligations of EME, however, under the Internal Revenue Code and applicable state statutes, Edison International Parent is jointly liable for qualified retirement plans and federal and specific state tax liabilities. As a result of the deconsolidation and the existence of joint liabilities, Edison International has recorded liabilities of $80 million for qualified retirement plans related to plan participants of EME and $189 million of liabilities related to joint tax liabilities. Under the qualified plan documents and tax allocation agreements, EME is obligated to pay for such liabilities and, accordingly, Edison International has recorded receivables of $235 million from EME net of amounts recorded in accumulated other comprehensive income of $34 million (related to actuarial losses under the qualified retirement plans).

If the Settlement Transaction had been approved and implemented, Edison International Parent would not have been entitled to receive reimbursement of the net receivable of $46 million and would be obligated to assume certain other retirement liabilities as specified in such agreement (estimated at $104 million). Inasmuch as the Settlement Transaction has been terminated, Edison International Parent will seek recovery of such joint liabilities as part of the EME bankruptcy proceeding. The outcome of the EME bankruptcy proceeding is uncertain, as was the disposition of the Support Agreement. Accordingly, management judgment was required to assess the collectability of the receivables recorded and outcome of the bankruptcy proceeding. Management concluded that it is probable that a loss would be incurred and estimated a loss of $150 million. The outcome of the EME bankruptcy could result in losses different than the amounts recorded by Edison International and such amounts could be material.

For a discussion of other contingencies related to EME, see Tax Disputes discussed in Note 7.

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Note 17.    Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International				SCE
	Six months ended June 30,
(in millions)	2013		2012		2013		2012
Cash payments (receipts) for interest and taxes:
Interest, net of amounts capitalized	$	213	$	194	$	205	$	194
Tax payments (refunds), net	26		1		17		(2		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	110	$	106	$	—	$	—
Preferred and preference stock	29		34		29		34

SCE's accrued capital expenditures at June 30, 2013 and 2012 were $515 million and $408 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid.

Note 18.    Related-Party Transactions

In 2008, EME was awarded by SCE, through a competitive bidding process, a 10-year power sales contract with SCE for the output of a 479 MW gas-fired peaking facility referred to as the Walnut Creek project. The power sales agreement was approved by the CPUC and FERC in 2008. Deliveries under the power sales agreement commenced in June 2013 and the expense for power purchased was $6 million for the three- and six-months ended June 30, 2013.

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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statement that does not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," and variations of such words and similar expressions, or discussions of strategy or of plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to:

• ability of SCE to recover its costs in a timely manner from its customers through regulated rates, including regulatory assets related to San Onofre;

• decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities and delays in regulatory actions;

• the ability of Edison International or its subsidiaries to borrow funds and access the capital markets on reasonable terms;

• possible customer bypass or departure due to technological advancements or cumulative rate impacts that make self-generation or use of alternative energy sources economically viable;

• risks inherent in the construction of transmission and distribution infrastructure replacement and expansion projects, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, power curtailment costs (payments due under power contracts in the event there is insufficient transmission to enable the acceptance of power delivery), and governmental approvals;

• risks associated with the operation of transmission and distribution assets and nuclear and other power generating facilities including: nuclear fuel storage issues, public safety issues, the failure, availability, efficiency, and output of equipment, the cost of repairs and retrofits of equipment, and availability and cost of spare parts;

• physical security of our critical assets and personnel and the cyber security of our critical information technology systems for grid control, and business and customer data;

• cost and availability of electricity, including the ability to procure sufficient resources to meet expected customer needs to replace power and voltage support that would have been provided by San Onofre or in the event of other power plant and/or transmission outages or significant counterparty defaults under power-purchase agreements;

• environmental laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could require additional expenditures or otherwise affect the cost and manner of doing business;

• risk that the costs incurred in connection with the steam generators at Unit 2 and/or Unit 3 at San Onofre, as well as other costs incurred due to the outages may not be recoverable from SCE's supplier or insurance coverage;

• the termination of the Support Agreement related to the EME bankruptcy;

• changes in the fair value of investments and other assets;

• changes in interest rates and rates of inflation, including escalation rates, which may be adjusted by public utility regulators;

• governmental, statutory, regulatory or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market and price mitigation strategies adopted by the California Independent System Operator, Regional Transmission Organizations, and adjoining regions;

• availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations;

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• cost and availability of labor, equipment and materials;

• ability to obtain sufficient insurance, including insurance relating to SCE's nuclear facilities and wildfire-related liability, and to recover the costs of such insurance or in the absence of insurance the ability to recover uninsured losses;

• effects of legal proceedings, changes in or interpretations of tax laws, rates or policies;

• potential for penalties or disallowances caused by non-compliance with applicable laws and regulations;

• cost and availability of fuel for generating facilities and related transportation to the extent not recovered through regulated rate cost escalation provisions or balancing accounts;

• cost and availability of emission credits or allowances for emission credits;

• risk that competing transmission systems will be built by merchant transmission providers in SCE's service area; and

• weather conditions and natural disasters.

Additional information about risks and uncertainties, including more detail about the factors described above, is contained throughout this MD&A and in Edison International's and SCE's combined 2012 Form 10-K, including the "Risk Factors" section in Part I, Item 1A. Readers are urged to read this entire report, including the information incorporated by reference, as well as the 2012 Form 10-K, and carefully consider the risks, uncertainties and other factors that affect Edison International's and SCE's businesses. Forward-looking statements represent estimates and assumptions only as of the date they are made and neither Edison International nor SCE are obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by Edison International and SCE with the SEC.

The MD&A for the six months ended June 30, 2013 discusses material changes in the consolidated financial condition, results of operations and other developments of Edison International and SCE since December 31, 2012, and as compared to the three months and six months ended June 30, 2012. This discussion presumes that the reader has read or has access to Edison International's and SCE's MD&A for the calendar year 2012 (the "year-ended 2012 MD&A"), which was included in the 2012 Form 10-K.

Except when otherwise stated, references to each of Edison International, SCE, EMG, EME or Edison Capital mean each such company with its subsidiaries on a consolidated basis. References to "Edison International Parent and Other" mean Edison International Parent and its non-utility subsidiaries.

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MANAGEMENT OVERVIEW

Highlights of Operating Results

Edison International is the parent holding company of SCE. SCE is an investor-owned public utility primarily engaged in the business of supplying electricity. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. Unless otherwise described, all of the information contained in this report relates to both filers.

	Three months ended June 30,									Six months ended June 30,
(in millions)	2013			2012			Change			2013			2012			Change
Net Income (Loss) attributable to Edison International
Continuing operations
SCE	$	(91	)	$	191		$	(282	)	$	165		$	373		$	(208	)
Edison International Parent and Other	(15		)	(8		)	(7		)	(13		)	(13		)	—
Discontinued operations	12			(109		)	121			24			(193		)	217
Edison International	(94		)	74			(168		)	176			167			9
Less: Non-Core Items
SCE - asset impairment	(365		)	—			(365		)	(365		)	—			(365		)
Edison International Parent and Other	—			—			—			7			—			7
Discontinued operations	12			(109		)	121			24			(193		)	217
Total Non-Core Items	(353		)	(109		)	(244		)	(334		)	(193		)	(141		)
Core Earnings (Losses)
SCE	274			191			83			530			373			157
Edison International Parent and Other	(15		)	(8		)	(7		)	(20		)	(13		)	(7		)
Edison International	$	259		$	183		$	76		$	510		$	360		$	150

Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis of performance. Core earnings (losses) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the Company's performance from period to period. Core earnings (losses) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (losses) are defined as earnings attributable to Edison International shareholders less income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as: exit activities, including sale of certain assets, and other activities that are no longer continuing; asset impairments and certain tax, regulatory or legal settlements or proceedings. On December 17, 2012 (the "Petition Date"), EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. Edison International considers EME to be an abandoned asset under generally accepted accounting principles, and, as a result, the operations of EME prior to December 17, 2012 are reflected as discontinued operations.

SCE's 2013 core earnings increased $83 million and $157 million for the second quarter and year-to-date, respectively, primarily due to the timing of finalizing SCE's 2012 General Rate Case, lower operating expenses and tax benefits from incremental repair deductions, offset by severance costs and higher depreciation. In addition, SCE's return on its investment resulting from rate base growth was offset by a lower authorized 2013 return on common equity. During last year, pending the outcome of the 2012 CPUC GRC, SCE recognized GRC-related revenue based on the 2011 authorized revenue requirement. In the fourth quarter of 2012, SCE implemented its 2012 GRC which allowed SCE to recover its revenue requirement retroactive to January 1, 2012. The estimated revenue attributable to the second quarter and year-to-date of 2012 was $87 million and $167 million, respectively.

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Consolidated non-core items for 2013 and 2012 for Edison International and SCE included:

• An impairment charge of $575 million ($365 million after tax) in the second quarter of 2013 related to the permanent retirement of San Onofre Units 2 and 3.

• An income tax benefit of $7 million from reduction in state income taxes related to the sale of Edison Capital's interest in Unit No. 2 of the Beaver Valley Power plant. The sale of Edison Capital's lease interest was completed in 2012, however, the final determination of state income taxes paid was not completed until the first quarter of 2013 which resulted in a change in the estimate of state income taxes due.

• An income tax benefit of $12 million and $24 million for the second quarter and year-to-date, respectively, from a revised estimate of the tax impact of expected future tax deconsolidation and separation of EME from Edison International. Edison International continues to consolidate EME for federal and certain combined state tax returns. Changes in the amount of tax attributes during the first and second quarter of 2013 affected income taxes of discontinued operations. Such benefits may or may not continue in future periods.

San Onofre Outage, Inspection and Retirement

Tube Leak and Response

As discussed in the 2012 Form 10-K, replacement steam generators were installed at San Onofre in 2010 and 2011. In the first quarter of 2012, a water leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube to tube wear. At the time, Unit 2 was off-line for a planned outage when areas of unexpected tube to support structure wear were found. Both Units have remained shut down since early 2012 and have undergone extensive inspections, testing and analysis following discovery of the leak. In October 2012, SCE submitted a restart plan to the Nuclear Regulatory Commission (“NRC”), seeking to restart Unit 2 at a reduced power level (70%) for an initial period of approximately five months, based on work done by engineering groups from three independent firms with expertise in steam generator design and manufacturing. SCE did not develop a restart plan for Unit 3.

Permanent Retirement

On June 6, 2013 SCE decided to permanently retire Units 2 and 3. SCE concluded that despite the NRC's extensive review of SCE's restart plan for Unit 2 since October 2012, there still remained considerable uncertainty about when the review process would be concluded. A ruling by an adjudicatory arm of the NRC, the Atomic Safety and Licensing Board, on May 13, 2013 created further uncertainty regarding when a final decision might be made on restarting Unit 2. Additional administrative processes and appeals could result in delays of more than a year. During this period, the costs of maintaining San Onofre in readiness for restart and to replace the power San Onofre previously provided would have continued to mount.

Given the considerable uncertainty of when or whether SCE would be permitted to restart Unit 2, SCE concluded that it was in the best interest of its customers, shareholders and other stakeholders to permanently retire the Units and focus on planning for the replacement resources which will eventually be required for grid reliability. SCE also concluded that its decision to retire the Units would facilitate more orderly planning for California's energy future without the uncertainty of whether, when or how long San Onofre would continue to operate.

CPUC Review

In October 2012 the CPUC issued an Order Instituting Investigation (“OII”) that consolidated all San Onofre issues in related regulatory proceedings to consider appropriate cost recovery for all San Onofre costs, including among other costs, the cost of the steam generator replacement project, substitute market power costs, capital expenditures, operation and maintenance costs, and seismic study costs. The OII requires that all San Onofre-related costs incurred on and after January 1, 2012 be tracked in a memorandum account and, to the extent collected in rate levels authorized in the 2012 GRC or other proceeding, be subject to refund. The Order also states that the CPUC will determine whether to order the immediate removal, effective as of the date of the OII, of costs and rate base related to San Onofre from SCE's rates. Various other parties have filed testimony in the OII asking for disallowance of some or all of the San Onofre-related costs. The first phase of the OII is focused on 2012 costs and was split into two sets of hearings. The first set of hearings covered 2012 capital and operation and maintenance costs and was held in May 2013. The second set will focus on the appropriate calculation to measure 2012 substitute market power costs and is scheduled for August 2013. A decision in the first phase is expected in the fourth quarter of 2013. The second phase will focus on whether to adjust customer rates to remove the plant from rate base. The third and fourth phases of the OII will focus on the steam generator replacement project, reasonableness of costs and the San Onofre 2013 revenue requirement, respectively and have not yet been scheduled.

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A summary of financial items related to San Onofre and implicated in the OII are as follows:

• Approximately $860 million of SCE's authorized revenue requirement collected since January 1, 2012 (subject to refund) associated with operating and maintenance expenses, and depreciation and return on SCE's investment in Unit 2, Unit 3 and common plant. In June 2013, SCE recorded approximately $56 million in severance costs associated with its decision to retire both Units. Until funding of post June 6, 2013 activities related to the permanent closure of the plant is transitioned from base rates to SCE's nuclear decommissioning trusts set up for that purpose, SCE will continue to record these costs through the San Onofre OII memorandum account, subject to refund.

• At May 31, 2013, SCE's net investment associated with San Onofre is set forth in the following table:

(in millions)	Unit 2		Unit 3		Common Plant		Total
Net investment1	$	606	$	430	$	259	$	1,295
Materials and supplies	—		—		100		100
Construction work in progress	25		99		106		230
Nuclear fuel	153		216		102		471
Total investment	$	784	$	745	$	567	$	2,096

¹  Includes net book value of the replacement steam generators of $542 million.

• In 2005, the CPUC authorized expenditures of approximately $525 million ($665 million based on SCE's estimate after adjustment for inflation using the Handy-Whitman Index) for SCE's 78.21% share of the costs to purchase and install the four new steam generators in Units 2 and 3 and remove and dispose of their predecessors. SCE has spent $602 million through June 30, 2013 on the steam generator replacement project, not including inspection, testing and repair costs subsequent to the replacement steam generator leak in Unit 3.

• As a result of outages associated with the steam generator inspection and repair, electric power and capacity normally provided by San Onofre were purchased in the market by SCE. These market power costs will be reviewed as part of the CPUC's OII proceeding. Estimated market power costs calculated in accordance with the OII methodology were approximately $670 million as of May 31, 2013, excluding avoided nuclear fuel costs of approximately $138 million which are no longer included as a reduction due to SCE's decision to permanently retire Units 2 and 3. Such amount includes costs of approximately $65 million associated with planned outage periods. SCE believes that such costs should be excluded as they would have been incurred even had the replacement steam generators performed as expected. The CPUC will ultimately determine a final methodology for estimating market power costs as it continues its review of the issues in the OII. Future market power costs are uncertain.

• Through June 30, 2013, SCE's share of incremental inspection and repair costs totaled $115 million for both Units (not including payments made by MHI as described below). SCE recorded its share of payments made to date by MHI ($36 million) as a reduction of incremental inspection and repair costs in 2012.

SCE believes that the actions taken and costs incurred in connection with the San Onofre replacement steam generators, outages and permanent retirement have been prudent. Nevertheless, SCE cannot provide assurance that the CPUC will not disallow costs incurred or order refunds to customers of amounts collected in rates or that SCE will be successful in recovering amounts from third parties. Disallowances of costs and/or refund of amounts received from customers could be material and adversely affect SCE's financial condition, results of operations and cash flows.

Accounting for Early Retirement of San Onofre Units 2 and 3

As a result of the decision to early retire San Onofre Units 2 and 3, generally accepted accounting principles (“GAAP”) require reclassification of the amounts recorded in property, plant and equipment and related tangible operating assets to a regulatory asset to the extent that management concludes it is probable of recovery through future rates. Regulatory assets may also be recorded to the extent management concludes it is probable that direct and indirect costs incurred to retire Units 2 and 3 as of each reporting date are recoverable through future rates. These costs may include, but are not limited to, severance benefits to reduce the workforce at San Onofre to the staffing required to safely store and secure the plant prior to conducting decommissioning activities, losses on termination of purchase contracts, including nuclear fuel, and losses on disposition of excess inventory. GAAP also require recognition of a liability to the extent management concludes it is probable SCE will be required to refund amounts from authorized revenues previously collected from customers (that are subject to refund).

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In assessing whether to record regulatory assets as a result of the decision to retire San Onofre Units 2 and 3 early and whether to record liabilities for refunds to customers, SCE considered the interrelationship of recovery of costs and refunds to customers for accounting purposes, as such matters are being considered by the CPUC on a consolidated basis in the San Onofre OII. SCE also considered that it will continue to use certain portions of the plant (such as fuel storage, security facilities and buildings) as part of ongoing activities at the site. SCE additionally reviewed relevant regulatory precedents and statutory provisions regarding the regulatory recovery of early retired assets previously placed in service and related materials, supplies and fuel. Such precedents have generally provided cost recovery of the remaining net investment in early retired assets, absent imprudency. Such precedents vary on whether a full, partial or no rate of return is allowed on the investment in such assets, but generally provide accelerated recovery when less than a full return is authorized. Furthermore, once the Units are removed from rate base, under normal principles of cost of service ratemaking and relevant statutory provisions, SCE should, absent imprudence, recover the costs it incurs to purchase power that might otherwise have been produced by San Onofre. SCE continues to believe that the actions it has taken and the costs it has incurred in connection with the San Onofre replacement steam generators and outages have been prudent.

As a result of such considerations, SCE considered a number of potential outcomes for the matters being considered by the CPUC in the San Onofre OII, none of which are assured, but a number of which in SCE's opinion appeared to be more likely than a number of other outcomes. SCE considered the likelihood of outcomes to determine the amount deemed probable of recovery. These outcomes included a number of variables, including recovery of and return on the components of SCE's net investment, and the potential for refunds to customers for either substitute power or operating costs occurring over different time periods. SCE also included in its consideration of possible outcomes, the requirement under GAAP to discount future cash flows from recovery of assets without a return at its incremental borrowing rate.

As a result of the foregoing assessment, SCE:

• Reclassified $1,521 million of its total investment in San Onofre at May 31, 2013 as described above to a regulatory asset (“San Onofre Regulatory Asset”) based on management's conclusion it is probable, though not certain, that such costs will be recoverable through future rates. Included in the San Onofre Regulatory Asset is approximately $404 million of property, plant and equipment, including construction work in progress, that is expected to support ongoing activities at the site. In addition, to the extent the San Onofre Regulatory Asset includes excess nuclear fuel and material and supplies, SCE will, if possible, sell such excess amounts to third parties and reduce the amount of the regulatory asset by such proceeds.

• Recorded an impairment charge of $575 million ($365 million after tax) in the second quarter of 2013.

As part of the decision to permanently retire the Units at San Onofre, SCE announced workforce reductions of approximately 960 employees and accrued additional severance costs of $56 million (SCE's share). SCE recorded a regulatory asset of $32 million during June for its cost of service, including severance, in excess of authorized revenues, based on its conclusion that it is probable, though not certain, that such costs will be recovered in future rates. The estimate for these costs was previously included in SCE's estimate to decommission the units. After acceptance of the decommissioning plan by the NRC, SCE expects a further workforce reduction of approximately 175 employees. SCE also recorded severance costs of $14 million related to the indirect employee impacts from the decision to early retire the Units. These employees are generally included in SCE base rates and, as such, SCE has not recorded a regulatory asset associated with severance costs for these employees.

SCE's judgment that the San Onofre Regulatory Asset recorded at June 30, 2013 is probable, though not certain, of recovery is based on SCE's knowledge of the facts and judgment in applying relevant regulatory principles to the issues under review in the OII proceeding and in accordance with GAAP. Such judgment is subject to considerable uncertainty, and regulatory principles and precedents are not necessarily binding and are capable of interpretation. No decisions have been rendered in the OII proceeding regarding recoverability of costs from future rates or refunds of amounts to customers, and the current proceedings are either in their early phases, or not yet scheduled. The CPUC may or may not agree with SCE, after review of all of the facts and circumstances, and SCE may advocate positions that it believes are supported by relevant precedent and regulatory principles that are more favorable to SCE than the charges it has recorded in accordance with GAAP. The CPUC could also conclude that SCE acted imprudently in connection with the San Onofre replacement steam generators and the outage since January 2012. Thus, there can be no assurance that the OII proceeding will provide for recoveries as estimated by SCE, including the recovery of costs recorded as a regulatory asset, or that the CPUC does not order refunds to customers from amounts that were previously authorized as subject to refund. Accordingly, the amount recorded for the San Onofre Regulatory Asset at June 30, 2013, is subject to change based upon future developments and the application of SCE's judgment to those events.

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Third-Party Recovery

The replacement steam generators were designed and supplied by MHI and are warranted for an initial period of 20 years from acceptance. MHI is contractually obligated to repair or replace defective items with dispatch and to pay specified damages for certain repairs. MHI's liability under the purchase agreement is limited to $138 million and excludes consequential damages, defined to include "the cost of replacement power;" however, limitations in the contract are subject to applicable exceptions both in the contract and under law. SCE has advised MHI that it believes one or more of such exceptions apply and MHI's liability is not limited to $138 million, and MHI has advised SCE that it disagrees. On July 18, 2013, SCE, on behalf of itself and in its capacity as operating agent of San Onofre, provided MHI with a formal notice of dispute, notifying MHI that it intends to initiate claims against MHI for damages resulting from its supplying the faulty replacement steam generators. In the notice of dispute, SCE alleges that MHI totally and fundamentally failed to deliver what it promised, and that the contractual limitations of liability are subject to applicable exceptions both in the contract and under law. Pursuant to the purchase contract under which the replacement steam generators were supplied, service of the notice of dispute commences a 90-day period for SCE and MHI to resolve differences. If MHI and SCE are unable to resolve their differences regarding liability for the damages caused by MHI's design, manufacture and delivery of the faulty steam generators, then SCE expects to initiate binding arbitration under the auspices of the International Chamber of Commerce in accordance with the purchase contract. After SCE delivered the formal notice of dispute to MHI, each of the other co-owners filed lawsuits against MHI in San Diego County Superior Court, alleging claims arising from MHI's supplying the faulty steam generators.

SCE, on behalf of itself and the other San Onofre co-owners, has submitted seven invoices to MHI totaling $149 million for steam generator repair costs incurred through April 30, 2013. MHI paid the first invoice of $45 million, while reserving its right to challenge any of the charges in the invoice. In January 2013, MHI advised SCE that it rejected a portion of the first invoice and required further documentation regarding the remainder of the invoice. SCE has recorded its share of the invoice paid as a reduction of repair and inspection costs.

San Onofre carries both property damage and outage insurance issued by Nuclear Electric Insurance Limited (“NEIL”) and has placed NEIL on notice of claims under the two policies. The NEIL policies have a number of exclusions and limitations that may reduce or eliminate coverage. As of the date of this report, SCE has filed separate proofs of loss for Unit 2 and Unit 3 under the outage policy covering the period of the outage through April 27, 2013 that total $352 million (SCE's share of which is approximately $276 million). Pursuant to these proofs of loss, SCE is seeking the weekly indemnity amounts provided under the outage policy for each Unit. Outage policy benefits are reduced by 90% for the periods following announcement of the permanent shutdown of the Units. SCE has not submitted a proof of loss under the property damage policy. No amounts have been recognized in SCE's financial statements, pending NEIL's response. NEIL has advised SCE that it does not expect to make any determinations of coverage until late in the fourth quarter of this year or possibly next year.

Continuing NRC Proceedings

As part of the NRC's review of the San Onofre outage and proceedings related to the possible restart of Unit 2, the NRC appointed an Augmented Inspection Team to review SCE's performance. The Augmented Inspection Team has not completed its work, and could determine that SCE's performance in connection with the San Onofre replacement steam generators and the outage was deficient. The NRC's Office of Investigations has been conducting an investigation into the accuracy and completeness of information SCE provided to the Augmented Inspection Team. SCE has also been made aware of an investigation related to San Onofre by the NRC's Office of Inspector General, which generally reviews internal NRC affairs. Certain anti-nuclear groups and individual members of Congress have alleged that SCE knew of deficiencies in the steam generators when they were installed or otherwise did not correctly follow NRC requirements in connection with the design and installation of the replacement steam generators, something which SCE has vigorously denied, and have called for investigations, including by the Department of Justice. SCE cannot predict when or whether ongoing inquiries or investigations by the NRC will be completed or whether inquiries by other government agencies will be initiated. Should the NRC find a deficiency in SCE's performance or provision of information, SCE could be subject to additional NRC actions, including the imposition of penalties, and the findings could be taken into consideration in the CPUC regulatory proceedings described above.

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Decommissioning

The decommissioning of a nuclear plant requires the management of three related activities: radiological decommissioning, non-radiological decommissioning and the management of spent nuclear fuel. During the operating life of a plant, NRC regulations require that a licensee maintain financial assurance for decommissioning in an amount at least equal to a minimum generic “formula amount.” The decommissioning process may take many years and is expected to at San Onofre. SCE leases the land on which San Onofre is located from the United States Navy under a lease that requires it to return the property to its original condition.

The process for the radiological decommissioning of a nuclear power plant is governed by NRC regulations. SCE expects that the non-radiological decommissioning of the site may eventually involve other governmental agencies and approvals. Under NRC regulations, the process for radiological decommissioning consists of three phases: initial activities, major decommissioning and storage activities, and license termination. Initial activities include providing a notice of permanent cessation of operations and of permanent removal of fuel from the reactor vessel shortly after the retirement of the plant has been announced. Within two years after the announcement of retirement, the licensee must also submit a post-shutdown decommissioning activities report, an irradiated fuel management plan and a site-specific decommissioning cost estimate.

On June 12, 2013, SCE began the initial activity phase of radiological decommissioning by filing with the NRC a certification of permanent cessation of power operations at San Onofre. Notifications of permanent removal of fuel from the reactor vessels were provided on June 28, 2013 and July 22, 2013 for Units 3 and 2, respectively. SCE currently estimates that it will provide the other initial activity phase plans and cost estimates by the end of 2014. Major radiological decommissioning and storage activities may only start 90 days after the NRC receipt of the post-shutdown decommissioning activities report or upon the filing of a decommissioning cost estimate. The license termination phase will begin with the submission of a license termination plan, which is due not less than two years prior to the planned license termination. The NRC regulations regulate the use of decommissioning trust funds for radiological decommissioning by requiring that various decommissioning process milestones be met prior to the use of additional funds. SCE will also need NRC staff approval to use decommissioning funds for non-radiological decommissioning.

Other than the use of funds for the planning of radiological decommissioning (up to a maximum of 3% of generic formula amounts under NRC regulations), the CPUC must issue an order granting prior approval of withdrawal of decommissioning trust funds to be used for radiological decommissioning, non-radiological decommissioning and spent fuel management. The CPUC's authority to authorize the use of trust funds for decommissioning activities is provided by the Nuclear Facility Decommissioning Act of 1985 of the California Public Utilities Code. SCE anticipates filing a request with the CPUC that would authorize early release of trust funds for non-radiological costs up to a specified cost cap.

SCE will fund decommissioning of San Onofre through funds in its nuclear decommissioning trust, which is comprised of annual contributions made through rates and earnings on the trust's balance. In order to determine funding levels, SCE makes regular forecasts of decommissioning cost estimates based on expert advice. Such forecasts are subject to a number of assumptions and uncertainties, such as future dismantling, transportation, labor and similar costs, the length of time that will be needed to decommission, prevailing rates of inflation, burial escalation rates and other assumptions.

In July 2013, SCE submitted supplemental testimony in the Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") that provided a decommissioning cost estimate for an early shutdown scenario of both Units 2 and 3. The supplemental testimony provided for a higher level of contributions than is currently collected in rates. However, the supplemental testimony asked the CPUC to defer an increase in the contribution level until SCE has completed an updated site-specific decommissioning plan for San Onofre, which is currently expected in the first half of 2014.

The total ARO liability related to San Onofre was revised based on the July 2013 update to the NDCTP discussed above. See "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—Asset Retirement Obligation" for further information.

2015 General Rate Case

On July 15, 2013, SCE submitted to the CPUC's Division of Ratepayer Advocates its notice of intent (“NOI”) to file a 2015 GRC. The NOI indicates that SCE's GRC application, expected to be filed by year-end 2013, will request a 2015 base rate revenue requirement of $6.279 billion. After considering the effects of sales growth, SCE's request would be a $120 million increase over currently authorized base rate revenue. If the CPUC approves the requested rate increase and allocates the increase to ratepayer groups on a system average percentage change basis, the percentage increases over current base rates and total rates are estimated to be 2% and 0.6%, respectively. The NOI indicates that SCE's application will propose post-test year increases in 2016 and 2017, net of sales growth, of $368 million and $331 million, respectively. The requested revenue requirement increase is driven by the need to: maintain system reliability, including investment in infrastructure maintenance

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and replacement, accommodate customer load growth, and on-going operation and maintenance expenses. The NOI includes forecasted shutdown operating and capital expenses for San Onofre. To the extent that some or all of these expenses can be funded by its nuclear decommissioning trust, SCE will not include such expenses in its final 2015 GRC application. The NOI also includes a request for 2015 – 2017 capital expenditures as discussed in "Liquidity" below. The current schedule anticipates a final decision on SCE's 2015 GRC by the end of 2014. SCE cannot predict the revenue requirement the CPUC will ultimately authorize or when a final decision will be adopted.

Capital Program

During the first six months of 2013, SCE's capital program continued to emphasize projects for maintaining reliability and expanding the capability of SCE's transmission and distribution system; upgrading and constructing new transmission lines and substations for system reliability and increased access to renewable energy; and maintaining performance of SCE's natural gas, and hydro-electric generating plants. Total capital expenditures (including accruals) were $1.6 billion and $1.7 billion for the first six months of 2013 and 2012, respectively. SCE projects 2013 capital expenditures will be in the range of $3.7 billion to $4.0 billion. SCE forecasts capital expenditures in the range of $17.8 billion to $20.3 billion for 2013 – 2017. Actual capital spending will be affected by: changes in regulatory, environmental and engineering design requirements; permitting and project delays; cost and availability of labor, equipment and materials; and other factors.

EME Chapter 11 Bankruptcy Filing

As discussed in the 2012 Form 10-K, on the Petition Date EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. Edison International anticipates that the Bankruptcy Court will approve a plan of reorganization in which Edison International ceases to have any ownership interest. As a result of the bankruptcy filing, Edison International no longer consolidates the earnings and losses of EME or its subsidiaries effective December 17, 2012 and has reflected its ownership interest in EME utilizing the cost method. Edison International recorded a full impairment of the investment in EME in 2012. See "Notes to Consolidated Financial Statements—Note 16. Discontinued Operations" for additional information related to these bankruptcy proceedings.

On December 16, 2012, Edison International, EME and certain of EME's senior unsecured noteholders (“Consenting Noteholders”) entered into a Transaction Support Agreement (the "Support Agreement"). The Support Agreement provided that, within 150 days following the Petition Date, EME was to seek authority from the Bankruptcy Court to enter into the Settlement Transaction, which was required to be obtained within 210 days following the Petition Date. EME did not seek such authority within the 150 day period, rendering the Support Agreement terminable, and the parties did not reach agreement on changes to the Support Agreement, which would have altered the original schedule. Nevertheless, EME has been actively conducting an examination originally intended to assess the Support Agreement against potential alternatives it or its creditors might pursue.

On July 25, 2013, a requisite majority of the Consenting Noteholders provided Edison International and EME with a notice terminating the Support Agreement, effective August 1, 2013. As a result, the extension of the Tax Allocation Agreement contemplated by the Support Agreement has also terminated, and the Tax Allocation Agreement is now due to expire by its terms on December 31, 2013. Furthermore, claims, which Edison International submitted in the EME bankruptcy on a contingency basis, will not be released, and inasmuch as Edison International will not be entitled to the benefits of the Settlement Transaction, it will remain subject to any claims of EME and potentially its creditors, including claims relating to or arising out of any shared services, the Tax Allocation Agreement, and any other relationships or transactions between the companies. Edison International cannot, at this time, predict whether the parties will reach other agreements or if the termination of the Support Agreement will result in the pursuit of potential disputes among the parties.

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RESULTS OF OPERATIONS

SCE

SCE's results of operations are derived mainly through two sources:

• Utility 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 utility earnings activities are revenues or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances, if any.

• Utility 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. Utility 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), certain operation and maintenance expenses and nuclear decommissioning expenses.

The following table summarizes SCE's results of operations for the periods indicated. The presentation below separately identifies utility earning activities and utility cost-recovery activities. The 2012 GRC decision eliminated the balancing account treatment for Palo Verde operation and maintenance costs effective January 1, 2012. The tables presented below reflect a reclassification of the revenue and costs for 2012 consistent with the presentation in 2013. The reclassification of revenue and costs had no impact on earnings.

Three months ended June 30, 2013 versus June 30, 2012

	Three months ended June 30, 2013								Three months ended June 30, 2012
(in millions)	Utility Earning Activities			Utility Cost- Recovery Activities		Total Consolidated			Utility Earning Activities			Utility Cost- Recovery Activities			Total Consolidated
Operating revenue	$	1,617		$	1,428	$	3,045		$	1,488		$	1,163		$	2,651
Fuel and purchased power	—			1,157		1,157			—			883			883
Operation and maintenance	608			271		879			591			275			866
Depreciation, decommissioning and amortization	417			—		417			399			—			399
Property taxes and other	72			—		72			73			—			73
Asset impairment	575			—		575			—			—			—
Total operating expenses	1,672			1,428		3,100			1,063			1,158			2,221
Operating income (loss)	(55		)	—		(55		)	425			5			430
Interest income and other	16			—		16			19			—			19
Interest expense	(127		)	—		(127		)	(122		)	(5		)	(127		)
Income (loss) before income taxes	(166		)	—		(166		)	322			—			322
Income tax expense	(99		)	—		(99		)	108			—			108
Net income (loss)	(67		)	—		(67		)	214			—			214
Dividends on preferred and preference stock	24			—		24			23			—			23
Net income available for common stock	$	(91	)	$	—	$	(91	)	$	191		$	—		$	191
Core Earnings1						$	274								$	191
Non-Core Earnings						(365		)							—
Total SCE GAAP Earnings						$	(91	)							$	191

¹  See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."

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Utility Earning Activities

Utility earning activities were primarily affected by the following:

• Higher operating revenue of $129 million primarily due to the following:

• The timing of finalizing the 2012 CPUC GRC. During the second quarter of 2012, pending the outcome of the 2012 GRC, SCE recognized GRC-related revenue based on the 2011 authorized revenue requirement. In the fourth quarter of 2012, SCE implemented its 2012 GRC which allowed SCE to recover its revenue requirement retroactive to January 1, 2012. The estimated revenue attributable to the second quarter of 2012 was $87 million.

• An increase of approximately $40 million in revenue during the second quarter of 2013 for SCE's return on its investment resulting from rate base growth and operating costs partially offset by a lower CPUC-adopted 2013 return on common equity and EdisonSmartConnect^® revenue (see "Liquidity and Capital Resources—SCE—Regulatory Proceedings—2013 Cost of Capital Application" for further information).

• Higher operation and maintenance expense of $17 million primarily due to:

• $61 million of accrued severance costs for planned workforce reductions,

• $22 million decrease in incremental inspection and repairs costs at San Onofre, and

• $21 million lower operations and maintenance due to the full deployment of the EdisonSmartConnect® program in 2012.

Severance costs directly related to San Onofre permanent retirement were $56 million in the second quarter of 2013, but did not impact earnings. SCE's authorized San Onofre revenue requirement offset $24 million of these costs and the remaining $32 million was deferred as a regulatory asset. SCE expects to recover the regulatory asset during the third quarter. All San Onofre-related costs are subject to reasonableness review. See “Management Overview” for further information. Severance costs of $37 million impacted earnings. See "Notes to Consolidated Financial Statements—Note 8. Compensation and Benefit Plans—Workforce Reductions."

• Higher depreciation, decommissioning and amortization expense of $18 million was primarily related to increased generation, transmission and distribution investments and capitalized software costs.

• Asset impairment charge of $575 million related to the permanent retirement of San Onofre. See "—San Onofre Outage, Inspection and Retirement" above for more information.

• Interest income and other included lower AFUDC equity due to lower rates and construction work in process balances in 2013 offset by lower other expenses in 2013. See "Notes to Consolidated Financial Statements—Note 15. Interest and Other Income and Other Expenses."

• The income tax benefit was primarily due to a net loss driven by the San Onofre impairment. See "—Income Taxes" below for more information.

Utility Cost-Recovery Activities

Utility cost-recovery activities were primarily affected by the following:

• Higher fuel and purchased power expense of $274 million was primarily driven by increased load related to warmer weather experienced in 2013 relative to 2012 and higher power and gas prices experienced in 2013 relative to 2012.

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Six months ended June 30, 2013 versus June 30, 2012

	Six months ended June 30, 2013								Six months ended June 30, 2012
(in millions)	Utility Earning Activities			Utility Cost- Recovery Activities		Total Consolidated			Utility Earning Activities			Utility Cost- Recovery Activities			Total Consolidated
Operating revenue	$	3,167		$	2,507	$	5,674		$	2,967		$	2,096		$	5,063
Fuel and purchased power	—			2,009		2,009			—			1,575			1,575
Operation and maintenance	1,167			498		1,665			1,201			516			1,717
Depreciation, decommissioning and amortization	832			—		832			788			—			788
Property taxes and other	151			—		151			156			—			156
Asset impairment	575			—		575			—			—			—
Total operating expenses	2,725			2,507		5,232			2,145			2,091			4,236
Operating income	442			—		442			822			5			827
Interest income and other	40			—		40			44			—			44
Interest expense	(253		)	—		(253		)	(244		)	(5		)	(249		)
Income before income taxes	229			—		229			622			—			622
Income tax expense	13			—		13			208			—			208
Net income	216			—		216			414			—			414
Dividends on preferred and preference stock	51			—		51			41			—			41
Net income available for common stock	$	165		$	—	$	165		$	373		$	—		$	373
Core Earnings1						$	530								$	373
Non-Core Earnings						(365		)							—
Total SCE GAAP Earnings						$	165								$	373

¹  See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."

Utility Earning Activities

Utility earning activities were primarily affected by the following:

• Higher operating revenue of $200 million primarily due to the following:

• The timing of finalizing the 2012 CPUC GRC. During the first six months of 2012, pending the outcome of the 2012 GRC, SCE recognized GRC-related revenue based on the 2011 authorized revenue requirement. In the fourth quarter of 2012, SCE implemented its 2012 GRC which allowed SCE to recover its revenue requirement retroactive to January 1, 2012. The estimated revenue attributable to the first six months of 2012 was $167 million.

• An increase of approximately $70 million in revenue during the first six months of 2013 for SCE's return on its investment resulting from rate base growth and operating costs partially offset by a lower CPUC-adopted 2013 return on common equity and EdisonSmartConnect^® revenue (see "Liquidity and Capital Resources—SCE—Regulatory Proceedings—2013 Cost of Capital Application" for further information).

• Revenue recognized in 2012 related to the San Onofre Unit 2 scheduled outage.

• Lower operation and maintenance expense of $34 million primarily due to:

• $40 million lower operations and maintenance due to the full deployment of the EdisonSmartConnect^® program in 2012,

• $35 million of costs incurred in 2012 for the San Onofre Unit 2 scheduled outage which were not incurred in 2013,

• $35 million decrease in incremental inspection and repairs costs during the first six months of 2013 compared to the first six months of 2012, and

• $76 million offset by accrued severance costs. Accrued severance costs included $52 million that impacted earnings with the remaining amount related to the permanent retirement of San Onofre as described above.

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• Higher depreciation, decommissioning and amortization expense of $44 million was primarily related to increased generation, transmission and distribution investments and capitalized software costs.

• Asset impairment charge of $575 million related to the permanent retirement of San Onofre. See "—San Onofre Outage, Inspection and Retirement" above for more information.

• Interest income and other included lower AFUDC equity due to lower rates and construction work in process balances in 2013 offset by lower other expenses in 2013. See "Notes to Consolidated Financial Statements—Note 15 Interest and Other Income and Other Expenses."

• Lower income taxes primarily due to lower pre-tax income driven by the San Onofre impairment charge. See "—Income Taxes" below for more information.

• Higher preferred and preference stock dividends related to new issuances in 2012 and 2013 partially offset by redemptions.

Utility Cost-Recovery Activities

Utility cost-recovery activities were primarily affected by the following:

• Higher fuel and purchased power expense of $434 million was primarily driven by increased load related to warmer weather experienced in 2013 relative to 2012 and higher power and gas prices in 2013.

• Lower operation and maintenance expense of $18 million primarily due to lower employee benefit costs, primarily related to pension costs, and transmission access charges, partially offset by greenhouse gas emissions associated with utility owned-generation in 2013.

Supplemental Operating Revenue Information

SCE's retail billed and unbilled revenue (excluding wholesale sales and balancing account over/undercollections) was $2.9 billion and $5.2 billion for the three- and six-month periods ended June 30, 2013, respectively, compared to $2.7 billion and $5.0 billion for the respective periods in 2012. The increase in revenue reflects:

• A sales volume increase of $176 million and $67 million for the three- and six-month periods, respectively, due to higher load requirements related to warmer weather in 2013 relative to 2012.

• A rate increase of $52 million and $148 million for the three- and six-month periods, respectively, due to the implementation of the 2012 GRC decision.

As a result of the CPUC-authorized decoupling mechanism, SCE earnings are not affected by changes in retail electricity sales (see "Item 1. Business—Overview of Ratemaking Process" in the 2012 Form 10-K).

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Income Taxes

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision.

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Income (loss) from continuing operations before income taxes	$	(166	)	$	322		$	229		$	622
Provision for income tax at federal statutory rate of 35%	(58		)	113			80			218
Increase (decrease) in income tax from:
State tax, net of federal benefit	(23		)	10			(9		)	20
Property-related	(22		)	(10		)	(64		)	(20		)
Uncertain tax positions	11			(1		)	17			—
Other	(7		)	(4		)	(11		)	(10		)
Total income tax expense (benefit) from continuing operations	$	(99	)	$	108		$	13		$	208
Effective tax rate	*			33.5		%	5.7		%	33.4		%

^*  Not meaningful

Property-related items increased primarily due to the recognition of income tax benefits from repair deductions for income tax purposes.

For a discussion of the status of Edison International's income tax audits, see "Notes to Consolidated Financial Statements—Note 7. Income Taxes."

Edison International Parent and Other

Results of operations for Edison International Parent and Other includes amounts from other Edison International subsidiaries that are not significant as a reportable segment, as well as intercompany eliminations.

Income (Loss) from Discontinued Operations (Net of Tax)

Income from discontinued operations, net of tax, was $12 million and $24 million for the three- and six-month periods in 2013 compared to a loss of $109 million and $193 million for the respective periods in 2012. The 2013 income from discontinued operations reflects an income tax benefit from a revised estimate of the tax impact of expected future deconsolidation and separation of EME from Edison International (see "Management Overview—Highlights of Operating Results" for further information). The 2012 loss from discontinued operations was from net losses of EME.

LIQUIDITY AND CAPITAL RESOURCES

SCE

SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its cash flow and access to the capital markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest and dividend payments to Edison International, and the outcome of tax and regulatory matters.

SCE expects to fund its 2013 obligations, capital expenditures and dividends through operating cash flows, and capital market financings of debt and preferred equity, as needed. SCE also has availability under its credit facilities to fund requirements. SCE has $800 million of long-term debt due in the first quarter of 2014. SCE's financing plans include capital market financings to retire this debt.

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Available Liquidity

At June 30, 2013, SCE had a $2.75 billion multi-year revolving credit facility scheduled to mature in May 2017. The following table summarizes the status of the SCE credit facility at June 30, 2013:

(in millions)
Commitment	$	2,750
Outstanding commercial paper supported by credit facilities	(828		)
Outstanding letters of credit	(96		)
Amount available	$	1,826

On July 18, 2013, SCE amended the credit facility to extend the maturity date to July 2018 for $2.6 billion. The remaining $150 million of the credit facility will mature in May 2017.

Debt Covenant

The debt covenant in SCE's credit facility limits its debt to total capitalization ratio to less than or equal to 0.65 to 1. At June 30, 2013, SCE's debt to total capitalization ratio was 0.47 to 1.

Capital Investment Plan

SCE's forecasted capital expenditures for 2013 – 2017 include a capital forecast in the range of $17.8 billion to $20.3 billion. The range is based on the average variability experienced over the last five years of 12% between annual forecast capital expenditures and actual spending. SCE's 2013 – 2017 capital expenditures forecast are set forth in the table below:

(in millions)	2013		2014		2015		2016		2017		2013 – 2017 Total
Transmission	$	1,285	$	978	$	731	$	735	$	680	$	4,409
Distribution	2,300		2,728		3,169		3,180		3,004		14,381
Generation	372		255		287		283		265		1,462
Total Estimated Capital Expenditures	$	3,957	$	3,961	$	4,187	$	4,198	$	3,949	$	20,252
Total Estimated Capital Expenditures for 2013 – 2017 (using 12% variability discussed above)	$	3,667	$	3,671	$	3,549	$	3,568	$	3,349	$	17,804

The 2013 – 2014 planned capital expenditures for projects under CPUC jurisdiction are recovered through the authorized revenue requirement in SCE's 2012 GRC or through other CPUC-authorized mechanisms. Recovery of planned capital expenditures for projects under CPUC jurisdiction beyond 2014 and not already approved through other CPUC-authorized mechanisms, is subject to the outcome of the 2015 GRC or other CPUC approvals. Recovery for 2013 – 2017 planned capital expenditures for projects under FERC jurisdiction will be pursued through FERC-authorized mechanisms.

Tehachapi Transmission Project

In response to opposition from the city of Chino Hills, CPUC proceedings to reexamine construction options, including undergrounding lines for a portion of the Project, were initiated. On July 11, 2013, the CPUC ordered SCE to underground a 3.5 mile portion of the line that traverses Chino Hills, setting a cost estimate of $224 million ($231 million in nominal dollars) for the underground portion. The cost estimate that SCE had proposed for the underground portion was $350 million ($360 million in nominal dollars), which is reflected in the table above. The partial undergrounding will create additional costs and could potentially delay the completion of the Project. As with all transmission investments, cost recovery for the project is subject to FERC review and approval.

SCE filed a petition to modify seeking authorization to install aviation marking and lighting in accordance with FAA standards. In October 2011, the CPUC staff notified SCE that the constructed portions of the project should be marked and lighted as required, but instructed SCE to defer completion of remaining project components that may require aviation marking or lighting pending CPUC review of the petition to modify.

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Regulatory Balancing Accounts

SCE's cash flows are affected by regulatory balancing accounts over- or under-collections. Over- and under-collections represent differences between cash collected in current rates for specified forecasted costs and the costs actually incurred. With some exceptions, SCE seeks to adjust rates on an annual basis or at other designated times to recover or refund the balances recorded in its balancing account. Under- or over-collections in these balancing accounts impact cash flows and can change rapidly. Over- and under-collections accrue interest based on a three-month commercial paper rate published by the Federal Reserve.

SCE's balancing account for fuel and power procurement-related costs is referred to as the ERRA balancing account. SCE sets rates based on an annual forecast of the costs that it expects to incur during the subsequent year. In August 2012, SCE filed its annual 2013 ERRA forecast, which requested a rate increase of approximately $500 million due to a variety of factors. The final decision in the 2013 ERRA forecast proceeding was expected in the second quarter of 2013 but has been deferred by the Assigned Commissioner while issues related to the San Onofre outage are under consideration in the San Onofre OII (see “Management Overview—San Onofre Outage, Inspection and Retirement”). The CPUC has also established a "trigger" mechanism for the ERRA balancing account that allows for a rate adjustment if the balancing account over- or under-collection exceeds 5% of SCE's prior year's revenue that is classified as generation for retail rates. For 2013, the trigger amount is approximately $280 million. As of June 30, 2013, the fuel and power procurement-related costs were under-collected by $368 million which resulted in SCE triggering the mechanism and filing an advice letter to advise the CPUC that SCE's undercollection had exceeded the trigger amount. In lieu of requesting a rate adjustment in the advice letter, SCE filed a motion in July 2013 proposing an interim ERRA rate increase of $210 million, which would be accomplished by terminating the refund amortization of the 2011 year-end ERRA overcollection that would be completed as of August 1, 2013. SCE expects to continue to undercollect for fuel and power procurement-related costs and expects to draw on its credit facility to meet power procurement-related cost requirements until rates are adjusted. If rates are not adjusted, SCE estimates ERRA undercollections may increase to approximately $825 million by December 31, 2013.

On July 22, 2013, SCE filed a ratemaking proposal with the CPUC that would assign the actual San Onofre-related operation and maintenance savings from the base revenue requirement to offset the current and future expected ERRA undercollections through 2014. It is uncertain whether the CPUC will adopt this proposal, make other changes in rates, or defer a rate change that would mitigate the current impact on cash flows of ERRA undercollections.

Regulatory Proceedings

2013 Cost of Capital Application

In December 2012, the CPUC issued a final decision in the ratemaking capital structure and cost of capital phase of SCE's 2013 cost of capital proceeding granting SCE's requested ratemaking capital structure of 43% long-term debt, 9% preferred equity and 48% common equity. The decision adopted a return on common equity of 10.45% and adopted long-term debt and preferred stock costs of 5.49% and 5.79%, respectively. SCE has implemented the impacts of the decision in rates, effective January 1, 2013.

In March 2013, a final decision was issued in the second phase of the proceeding that reauthorized SCE's adjustment mechanism to continue for 2014 and 2015. The mechanism provides for an automatic readjustment to SCE’s capital costs if certain thresholds are reached on an annual basis. These thresholds are based on a benchmark interest index value of 5% as of September 2012. In September 2013 and September 2014, SCE will compare the current interest index value against the benchmark interest index value. If the difference exceeds more than 1%, SCE's CPUC-authorized cost of capital will be adjusted accordingly and the current interest index value will become the new benchmark interest index value for the next annual evaluation.

FERC Formula Rates

As discussed in the year-ended 2012 MD&A, the FERC has accepted, subject to refund and settlement procedures, SCE's request to implement formula rates effective January 1, 2012 to determine SCE's FERC transmission revenue requirement, including its construction work in progress ("CWIP") revenue requirement that was previously recovered through a separate mechanism. In that decision, the FERC authorized a base ROE of 9.93%, plus the previously authorized 50 basis point incentive for CAISO participation and individual authorized project incentives. This results in a FERC weighted average ROE of 11.1% including incentives. The formula rate mechanism, including the base ROE, is subject to final resolution as part of the settlement process or, if a settlement is not achieved, to determination by FERC in a litigated process. SCE and the other parties to the proceeding continue to engage in settlement negotiations.

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In June 2013, SCE provided its preliminary 2014 forecasted revenue requirement to interested parties. Consistent with SCE's proposed formula rate methodology, the application of the formula rate results in an increase in SCE's revenue requirement of $8 million, or 0.9%. The increase requested for the 2013 and 2014 FERC rate base from transmission investments, including projects under construction, is largely offset by the true-up adjustment for a 2012 overcollection of $103 million. SCE expects to file its 2014 forecasted revenue requirement with the FERC by September 15, 2013, with the proposed rates effective from October 1, 2013 through September 30, 2014.

Dividend Restrictions

The CPUC regulates SCE's capital structure which limits the dividends it may pay Edison International. SCE may make distributions to Edison International as long as the common equity component of SCE's capital structure remains at or above 48% on a 13-month weighted average basis. At June 30, 2013, SCE's 13-month weighted-average common equity component of total capitalization was 48.9% and the maximum additional dividend that SCE could pay to Edison International under this limitation was approximately $175 million, resulting in a restriction on net assets of approximately $11.5 billion.

During the first six months of 2013, SCE made $240 million in dividend payments to Edison International. Future dividend amounts and timing of distributions are dependent upon several factors including the level of capital expenditures, operating cash flows and earnings.

Margin and Collateral Deposits

Certain derivative instruments, power procurement contracts and other contractual arrangements contain collateral requirements. Future collateral requirements may differ from the requirements at June 30, 2013, due to the addition of incremental power and energy procurement contracts with collateral requirements, if any, and the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations.

Some of the power procurement contracts contain provisions that require SCE to maintain an investment grade credit rating from the major credit rating agencies. If SCE's credit rating were to fall below investment grade, SCE may be required to pay the liability or post additional collateral.

The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would be required as of June 30, 2013.

(in millions)
Collateral posted as of June 30, 20131	$	128
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade	67
Posted and potential collateral requirements2	$	195

¹  Collateral provided to counterparties and other brokers consisted of $22 million of cash which was offset against net derivative liabilities on the consolidated balance sheets, $8 million of cash reflected in "Other current assets" on the consolidated balance sheets and $98 million in letters of credit and surety bonds.

²  SCE estimates that total posted and potential collateral requirements could increase by $3 million if SCE's forward positions as of June 30, 2013 were impacted by unfavorable market price movements over the remaining lives of the existing power procurement contracts using a 95% confidence level.

In addition to the potential collateral requirements discussed above, if SCE's bond rating were to fall below a "B" rating, SCE would be required to post $221 million for its workers compensation self-insurance plan. See "Liquidity and Capital Resources—SCE—Workers Compensation Self-Insurance Fund" in the year-ended 2012 MD&A for further information.

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Edison International Parent and Other

Edison International Parent and Other's liquidity and its ability to pay operating expenses and dividends to common shareholders is dependent on dividends from SCE, tax-allocation payments under its tax-allocation agreements with its subsidiaries, and access to bank and capital markets.

At June 30, 2013, Edison International Parent had a $1.25 billion multi-year revolving credit facility scheduled to mature in May 2017. The following table summarizes the status of the Edison International Parent credit facility at June 30, 2013:

(in millions)	Edison International Parent
Commitment	$	1,250
Outstanding borrowings	(25		)
Outstanding letters of credit	—
Amount available	$	1,225

On July 18, 2013, Edison International Parent amended the credit facility to extend the maturity date to July 2018 for $1.182 billion. The remaining $68 million of the credit facility will mature in May 2017.

The debt covenant in Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio of less than or equal to 0.65 to 1. At June 30, 2013, Edison International Parent's consolidated debt to total capitalization ratio was 0.49 to 1.

Historical Cash Flows

SCE

	Six months ended June 30,
(in millions)	2013			2012
Net cash provided by operating activities	$	1,325		$	1,511
Net cash provided by financing activities	704			712
Net cash used by investing activities	(2,025		)	(2,239		)
Net increase (decrease) in cash and cash equivalents	$	4		$	(16	)

Net Cash Provided by Operating Activities

Net cash provided by operating activities decreased $186 million during the first six months of 2013 compared to the same period in 2012 primarily due to the following:

• $250 million decrease from balancing accounts primarily composed of:

• $680 million decrease primarily resulting from ERRA balancing account undercollections for fuel and power procurement-related costs in 2013 compared to overcollections in 2012. The change in the ERRA balancing account decreased operating cash flows by $503 million in 2013 as compared to an increase in operating cash flows of $226 million in 2012. The 2013 undercollections were primarily due to higher power prices, for further details see "Liquidity and Capital Resources—SCE—Regulatory Balancing Accounts;"

• $300 million increase related to a rate increase in 2013 to recover undercollections in 2012 as a result of the implementation of the 2012 CPUC GRC decision; and

• $130 million increase from GHG auction revenue during 2013.

• Timing of cash receipts and disbursements related to working capital items and workforce reduction severance costs paid of $88 million during the first six months of 2013.

• Higher cash inflow due to higher authorized revenue requirements resulting from the implementation of the 2012 CPUC GRC decision.

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Net Cash Provided by Financing Activities

The following table summarizes cash provided (used) by financing activities for the six months end June 30, 2013 and 2012. Issuances of debt and preference stock are discussed in "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements—Long-Term Debt" and "—Note 13. Preferred and Preference Stock."

	Six months ended June 30,
(in millions)	2013			2012
Issuances of first and refunding mortgage bonds, net	$	394		$	391
Issuances of commercial paper, net	653			(119		)
Issuances of preference stock, net	387			805
Payments of common stock dividends to Edison International	(240		)	(233		)
Redemptions of preference stock	(400		)	(75		)
Payments of preferred and preference stock dividends	(52		)	(28		)
Other	(38		)	(29		)
Net cash provided by financing activities	$	704		$	712

Net Cash Used by Investing Activities

Cash flows from investing activities are primarily due to capital expenditures and funding of nuclear decommissioning trusts. Capital expenditures were $1.8 billion and $2.1 billion for the six months ended June 30, 2013 and 2012, respectively, primarily related to transmission, distribution and generation investments. Net purchases of nuclear decommissioning trust investments and other were $172 million and $125 million for the six months ended June 30, 2013 and 2012, respectively.

Edison International Parent and Other

The table below sets forth condensed historical cash flow from continuing operations for Edison International Parent and Other adjusted for the non-cash impact related to the treatment of discontinued operations.

	Six months ended June 30,
(in millions)	2013			2012
Net cash provided (used) by operating activities	$	(64	)	$	3
Net cash provided by financing activities	42			14
Net cash used by investing activities	(4		)	(4		)
Net increase (decrease) in cash and cash equivalents	$	(26	)	$	13

Net Cash Used by Continuing Operating Activities

Net cash used by continuing operating activities is related to operating costs and approximately $20 million of payments made for interest and income taxes.

Net Cash Provided by Continuing Financing Activities

Net cash provided by continuing financing activities for the first six months of 2013 were as follows:

• Paid $220 million of dividends to Edison International common shareholders;

• Received $240 million of dividend payments from SCE; and

• Borrowed $25 million under Edison International's line of credit to fund interim working capital requirements.

Net cash provided by continuing financing activities for the first six months of 2012 were as follows:

• Paid $212 million of dividends to Edison International common shareholders; and

• Received $233 million of dividend payments from SCE.

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Contingencies

Edison International has a contingency related to the EME Chapter 11 Bankruptcy Filing and SCE has contingencies related to San Onofre Outage, Inspection and Retirement, SED Investigations, Four Corners New Source Review Litigation, Nuclear Insurance, Wildfire Insurance and Spent Nuclear Fuel which are discussed in "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies."

Environmental Remediation

As of June 30, 2013, SCE had identified 19 material sites for remediation and recorded an estimated minimum liability of $122 million. SCE expects to recover 90% of its remediation costs at certain sites. See "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies" for further discussion.

MARKET RISK EXPOSURES

Edison International and SCE's primary market risks include fluctuations in interest rates, commodity prices and volumes, and counterparty credit. Fluctuations in interest rates can affect earnings and cash flows. Fluctuations in commodity prices and volumes and counterparty credit losses may temporarily affect cash flows, but are not expected to affect earnings due to expected recovery through regulatory mechanisms. Derivative instruments are used, as appropriate, to manage market risks including market risks of SCE's customers. For a further discussion of market risk exposures, including commodity price risk, credit risk and interest rate risk, see "Notes to Consolidated Financial Statements—Note 6. Derivative Instruments" and "—Note 4. Fair Value Measurements."

Commodity Price Risk

The fair value of outstanding derivative instruments used to mitigate exposure to commodity price risk was a net liability of $1.0 billion and $851 million at June 30, 2013 and December 31, 2012, respectively. For further discussion of fair value measurements and the fair value hierarchy, see "Notes to Consolidated Financial Statements—Note 4. Fair Value Measurements."

Credit Risk

Credit risk exposure from counterparties for power and gas trading activities is measured as the sum of net accounts receivable (accounts receivable less accounts payable) and the current fair value of net derivative assets (derivative assets less derivative liabilities) reflected on the consolidated balance sheets. SCE enters into master agreements which typically provide for a right of setoff. Accordingly, SCE's credit risk exposure from counterparties is based on a net exposure under these arrangements. SCE manages the credit risk on the portfolio for both rated and non-rated counterparties based on credit ratings using published ratings of counterparties and other publicly disclosed information, such as financial statements, regulatory filings, and press releases, to guide it in the process of setting credit levels, risk limits and contractual arrangements, including master netting agreements.

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As of June 30, 2013, the amount of balance sheet exposure as described above broken down by the credit ratings of SCE's counterparties, was as follows:

	June 30, 2013
(in millions)	Exposure2		Collateral			Net Exposure
S&P Credit Rating1
A or higher	$	138	$	—		$	138
A-	11		—			11
BBB	4		—			4
Not rated3	8		(2		)	6
Total	$	161	$	(2	)	$	159

¹  SCE assigns a credit rating based on the lower of a counterparty's S&P or Moody's rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the two credit ratings.

²  Exposure excludes amounts related to contracts classified as normal purchases and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheets, except for any related net accounts receivable.

³  The exposure in this category relates to long-term power purchase agreements. SCE's exposure is mitigated by regulatory treatment.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

For a complete discussion on Edison International's and SCE's critical accounting policies, see "Critical Accounting Estimates and Policies" in the year-ended 2012 MD&A.

NEW ACCOUNTING GUIDANCE

New accounting guidance is discussed in "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—New Accounting Guidance."

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responding to Item 3 is included in the MD&A under the heading "Market Risk Exposures" and is incorporated herein by reference.

ITEM 4.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Edison International and SCE, under the supervision and with the participation of Edison International's Chief Executive Officer and Chief Financial Officer and SCE's President and Chief Financial Officer, have evaluated the effectiveness of Edison International's and SCE's disclosure controls and procedures (as that term is defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), respectively, as of the end of the second quarter of 2013. Based on that evaluation, Edison International's Chief Executive Officer and Chief Financial Officer and SCE's President and Chief Financial Officer have each concluded that, as of the end of the period, Edison International's and SCE's disclosure controls and procedures, respectively, were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in Edison International’s or SCE's internal control over financial reporting, respectively, during the second quarter of 2013 that have materially affected, or are reasonably likely to materially affect, Edison International’s or SCE's internal control over financial reporting.

Jointly Owned Utility Plant

Edison International's and SCE's respective scope of evaluation of internal control over financial reporting includes their Jointly Owned Utility Projects as discussed in Note 2. Property, Plant and Equipment in the 2012 Form 10-K.

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PART II.    OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

EME Chapter 11 Bankruptcy Filing

On December 17, 2012, EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. For more information, see "Management Overview—EME Chapter 11 Bankruptcy Filing" in the MD&A and "Notes to Consolidated Financial Statements—Note 16. Discontinued Operations."

Catalina South Coast Air Quality Management District Environmental Proceeding

In March 2013, the South Coast Air Quality Management District ("SCAQMD") issued a Notice of Violation ("NOV") alleging that SCE was operating Unit 15, SCE's primary diesel generation unit on Catalina Island, in violation of its air permit because Unit 15 was utilizing a CO catalyst not described in the permit. SCE believes that prior permits issued by the SCAQMD made clear that the use of CO catalysts was permitted and is continuing internally to determine the cause of the permitting discrepancies. Discussions with the SCAQMD regarding penalties are ongoing but specific fines or penalties have not yet been proposed by the SCAQMD.

ITEM 2.    UNREGISTRED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by Edison International and Affiliated Purchasers

The following table contains information about all purchases of Edison International Common Stock made by or on behalf of Edison International in the second quarter of 2013.

Period	(a) Total Number of Shares (or Units) Purchased1	(b) Average Price Paid per Share (or Unit)1			(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1, 2013 to April 30, 2013	626,447		$	51.83	—	—
May 1, 2013 to May 31, 2013	471,051		51.88		—	—
June 1, 2013 to June 30, 2013	308,333		46.57		—	—
Total	1,405,831		50.69		—	—

¹  The shares were purchased by agents acting on Edison International's behalf for delivery to plan participants to fulfill requirements in connection with Edison International's: (i) 401(k) Savings Plan; (ii) Dividend Reinvestment and Direct Stock Purchase Plan; and (iii) long-term incentive compensation plans. The shares were purchased in open-market transactions pursuant to plan terms or participant elections. The shares were never registered in Edison International's name and none of the shares purchased were retired as a result of the transactions.

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ITEM 6.    EXHIBITS

Exhibit Number	Description
10.1	Edison International and Southern California Edison Company Director Compensation Schedule, as adopted June 20, 2013
10.2	Amendment to Credit Agreement dated July 18, 2013 among Edison International and the Lenders named therein (File 1-9936, filed as Exhibit 10.1 to Edison International's Form 8-K dated July 18, 2013 and filed July 19, 2013)*
10.3	Amendment to Credit Agreement dated July 18, 2013 among Southern California Edison Company and the Lenders named therein (File 1-2313, filed as Exhibit 10.2 to Southern California Edison Company's Form 8-K dated July 18, 2013 and filed July 19, 2013)*
10.4	Notice of Termination of Transaction Support Agreement, dated July 25, 2013 (File 1-9936, filed as Exhibit 2.1 to Edison International's Form 8-K dated July 25, 2013 and filed July 25, 2013)*
31.1	Certifications of the Chief Executive Officer and Chief Financial Officer of Edison International pursuant to Section 302 of the Sarbanes-Oxley Act
31.2	Certifications of the Chief Executive Officer and Chief Financial Officer of Southern California Edison Company pursuant to Section 302 of the Sarbanes-Oxley Act
32.1	Certifications of the Chief Executive Officer and the Chief Financial Officer of Edison International required by Section 906 of the Sarbanes-Oxley Act
32.2	Certifications of the Chief Executive Officer and the Chief Financial Officer of Southern California Edison Company required by Section 906 of the Sarbanes-Oxley Act
101.1	Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended June 30, 2013, filed on August 1, 2013, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements
101.2	Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended June 30, 2013, filed on August 1, 2013, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

________________________________________

*    Incorporated by reference pursuant to Rule 12b-32.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

	EDISON INTERNATIONAL		SOUTHERN CALIFORNIA EDISON COMPANY
By:	/s/ Mark C. Clarke	By:	/s/ Mark C. Clarke
	Mark C. Clarke Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)		Mark C. Clarke Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)
Date:	August 1, 2013	Date:	August 1, 2013

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EX-10.1

Exhibit 10.1

EDISON INTERNATIONAL AND SOUTHERN CALIFORNIA EDISON COMPANY

DIRECTOR COMPENSATION SCHEDULE

As Adopted June 20, 2013

Effective July 1, 2013 and except as otherwise provided below, non-employee Directors of Edison International (“EIX”) and/or Southern California Edison Company (“SCE”) will receive the annual retainers, meeting fees, meeting expenses and equity-based awards described below as compensation for serving as a Director. The equity-based award provisions described below are effective for Directors elected or reelected on or after the date of the EIX and SCE 2014 annual shareholders' meeting.

Directors who are employees of EIX or SCE shall not receive additional compensation for serving as Directors (other than participation in the EIX Director Matching Gifts Program). Directors who serve on both the EIX Board and the SCE Board, and their corresponding Board Committees, will not receive additional compensation, including additional meeting fees for SCE Board, Board Committee and business meetings held concurrently or consecutively with a corresponding EIX Board, Board Committee or business meeting.

Annual Retainers

Board Retainer - Each Director will receive an annual board retainer of $65,000 to be paid in advance in quarterly installments of $16,250 for any calendar quarter or portion thereof during which the individual serves as a Director.

Board Committee Chair Retainer - Each Director who serves as the Chair of a Board Committee will receive an annual retainer of $10,000, except the Director who serves as the Chair of the Audit Committee will receive an annual retainer of $20,000 and the Director who serves as the Chair of the Compensation and Executive Personnel Committee will receive an annual retainer of $15,000. The Committee Chair retainers shall be paid in advance in equal quarterly installments for any calendar quarter or portion thereof during which the Director serves as a Committee Chair.

Lead Director Retainer - Each Director who serves as the lead director of the non‑employee and/or independent Director executive sessions of the Board shall receive an annual retainer of $25,000. The retainer shall be paid in advance in equal quarterly installments for any calendar quarter or portion thereof during which the Director serves as a Lead Director.

The quarterly retainer installments will be paid on the first business day of the calendar quarter. Initial quarterly retainer installments will be paid as soon as possible following the date of the election.

1

Meeting Fees

Each Director will receive $2,000 for each regular meeting, adjourned regular meeting or special meeting of the Board attended by the Director, for each regular meeting, adjourned regular meeting or special meeting of a Committee attended by the Director as a member of the Committee, and for each business meeting attended at the request or invitation of the Chairman of the Board, or in the case of Committee meetings at the request or invitation of the Chairman of the Board in consultation with the Committee Chair on behalf of the corporation in his or her capacity as a Director. Each Director shall receive only one meeting fee for any concurrent meeting attended by the Director, including concurrent meetings of different Board Committees. Full meeting fees will be paid if the Director attends any portion of any meeting.

No additional meeting fee shall be paid when the non-employee or independent members of the Board meet in executive session immediately before, during or immediately after Board meetings.

Meeting fees will be paid on the first business day of the month following the month in which the meeting occurred.

Meeting Expenses

Reasonable expenses incurred by a Director to attend Board meetings, Committee meetings, or business meetings attended on behalf of the corporation in his or her capacity as a Director will be promptly reimbursed upon presentation of a statement of the expenses to the Secretary.

Equity-Based Awards² 

Equity-based awards (“Awards”) will be granted under and subject to the terms of the EIX 2007 Performance Incentive Plan or a successor plan (the “Plan”), except that any award payable in cash will be deemed paid outside of the Plan. The Awards consist of

_____________________________

¹  To the extent any expense reimbursements provided for in this Director Compensation Schedule are taxable to a Director and provide for a deferral of compensation within the meaning of Section 409A of the Internal Revenue Code, the Director shall complete all steps required for reimbursement so as to facilitate payment, and any such reimbursements shall be paid to the Director on or before December 31 of the calendar year following the calendar year in which the expense was incurred. Such reimbursements shall not be subject to liquidation or exchange for other benefits, and the expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other calendar year.

²  With respect to equity-based awards approved and granted under current and prior compensation plans by prior resolutions of the EIX Board, this Director Compensation Schedule does not alter the intent of such resolutions to have the awards and subsequent transactions by the Directors occurring pursuant to the awards continue to comply with and be exempt under Section 16(b) of the Securities Exchange Act of 1934, as amended, pursuant to Rule 16b-3 promulgated thereunder (or any successor provision thereto).

2

fully vested Edison International deferred stock units (“DSUs”) and/or Edison International common stock (“Common Stock”). DSUs represent the value of one share of Common Stock and will be credited to the Director's account under the EIX Director Deferred Compensation Plan and subject to the terms of that plan. DSUs include dividend equivalent rights that are converted to additional DSUs. The number of DSUs or shares of Common Stock awarded to a Director in any particular instance will be calculated by dividing the applicable equity award amount to be granted on that date (expressed in dollars and determined as set forth below, the “Award Amount”) by the fair market value of a share of Common Stock as of that date, rounded up to the nearest whole share. Fair market value for these purposes shall be determined in accordance with the Plan. Each Award will be subject to terms and conditions approved in advance by the Board.

Initial Election Award - Upon the initial election of a Director to the Board, the Director will receive an award of DSUs with an aggregate Award Amount of$ 115,000, the date of grant of which shall be the date of such election.

Annual Reelection Award - Each Director reelected to the Board will receive Common Stock and/or DSUs with an aggregate Award Amount of $115,000, the date of grant of which shall be the date of such reelection. The portion of the award to be granted in Common Stock and/or DSUs shall be specified in advance by the Director as provided in the next paragraph.

Prior to the year the Annual Reelection Award is granted, the Director may elect to receive the award entirely in shares of Common Stock, entirely in DSUs, or in any combination of each, except that if a fractional share would result, the Common Stock portion will be rounded up to the next whole share and the DSU portion will be rounded down to the next whole DSU. If no such election is timely made by the Director for a particular year, the Director's Annual Reelection Award (if any) for that year will be entirely Common Stock.

EIX Affiliate Boards - SCE non-employee Directors who do not serve on the EIX Board will receive Awards equal in amount to EIX non-employee Directors if the SCE Board authorizes such compensation. Differing amounts of SCE Awards, and Awards for non‑employee directors of other EIX affiliates, may only be made with additional approval of the EIX Board.

Matching Gift Program

Directors of EIX and SCE are eligible to participate in the EIX Director Matching Gifts Program.

3

EX-31.1

Exhibit 31.1

CERTIFICATION

I, THEODORE F. CRAVER, JR., certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, of Edison International;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2013

/s/ THEODORE F. CRAVER, JR.

THEODORE F. CRAVER, JR.

Chief Executive Officer

Exhibit 31.1

CERTIFICATION

I, W. JAMES SCILACCI, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, of Edison International;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2013

/s/ W. JAMES SCILACCI

W. JAMES SCILACCI

Chief Financial Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, RONALD L. LITZINGER, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, of Southern California Edison Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

        (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

        (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

        (c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

        (d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

        (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

        (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2013

/s/ RONALD L. LITZINGER

RONALD L. LITZINGER

President

Exhibit 31.2

CERTIFICATION

I, LINDA G. SULLIVAN, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, of Southern California Edison Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

        (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

        (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

        (c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

        (d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

        (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

        (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2013

/s/ LINDA G. SULLIVAN

LINDA G. SULLIVAN

Chief Financial Officer

EX-32.1

Exhibit 32.1

STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350, AS

ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (the "Quarterly Report"), of Edison International (the "Company"), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his knowledge, that:

1. The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2013

/s/ THEODORE F. CRAVER, JR.

THEODORE F. CRAVER, JR.

Chief Executive Officer

Edison International

/s/ W. JAMES SCILACCI

W. JAMES SCILACCI

Chief Financial Officer

Edison International

This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350, AS

ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (the "Quarterly Report"), of Southern California Edison Company (the "Company"), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his or her knowledge, that:

1. The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2013

/s/ RONALD L. LITZINGER

RONALD L. LITZINGER

President

Southern California Edison Company

/s/ LINDA G. SULLIVAN

LINDA G. SULLIVAN

Chief Financial Officer

Southern California Edison Company

This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Other Investments

6 Months Ended

Jun. 30, 2013

Regulated Entity, Other Assets, Noncurrent [Abstract]

Other Investments

Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs of removal of SCE's 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.

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

	Longest Maturity Dates	Amortized Cost						Fair Value
(in millions)		June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012
Stocks	—	$	728		$	978		$	2,085		$	2,271
Municipal bonds	2051	504			518			592			644
U.S. government and agency securities	2043	975			547			1,025			603
Corporate bonds	2054	293			324			347			410
Short-term investments, primarily cash equivalents	One-year	274			117			280			121
Total investments		2,774			2,484			4,329			4,049
Net payables		(148		)	(1		)	(148		)	(1		)
Total nuclear decommissioning trusts		$	2,626		$	2,483		$	4,181		$	4,048

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 $1.5 billion and $496 million for the three months ended June 30, 2013 and 2012, respectively and $2.0 billion and $1.1 billion for the six months ended June 30, 2013 and 2012, respectively. Unrealized holding gains, net of losses, were $1.3 billion and $1.6 billion at June 30, 2013 and December 31, 2012, respectively.

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Balance at beginning of period	$	4,246		$	3,853		$	4,048		$	3,592
Gross realized gains	137			15			142			40
Gross realized losses	(1		)	(1		)	(2		)	(5		)
Unrealized gains (losses), net	(185		)	(67		)	(9		)	116
Other-than-temporary impairments	(21		)	(19		)	(29		)	(23		)
Interest, dividends, contributions and other	5			29			31			90
Balance at end of period	$	4,181		$	3,810		$	4,181		$	3,810

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

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Income Taxes (Tax Rate Reconciliation) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Effective Tax Rate
Income (loss) from continuing operations before income taxes	$ (184)	$ 307	$ 199	$ 593
Provision for income tax at federal statutory rate of 35%	(64)	107	70	207
State tax, net of federal benefit	(20)	8	(17)	14
Property-related	(22)	(10)	(64)	(19)
Uncertain tax positions	11	0	18	1
Other	(7)	(5)	(11)	(11)
Total income tax expense (benefit) from continuing operations	(102)	100	(4)	192
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Effective tax rate		32.60%		32.40%
Southern California Edison
Effective Tax Rate
Income (loss) from continuing operations before income taxes	(166)	322	229	622
Provision for income tax at federal statutory rate of 35%	(58)	113	80	218
State tax, net of federal benefit	(23)	10	(9)	20
Property-related	(22)	(10)	(64)	(20)
Uncertain tax positions	11	(1)	17	0
Other	(7)	(4)	(11)	(10)
Total income tax expense (benefit) from continuing operations	$ (99)	$ 108	$ 13	$ 208
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Effective tax rate		33.50%	5.70%	33.40%

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net loss arising during the period, tax benefit	$ 0	$ 2	$ 4	$ 2
Amortization of net loss included in net income, tax expense	1	1	2	5
Unrealized holding loss arising during the period, tax benefit	0	19	0	2
Reclassification adjustments included in net income, tax benefit	0	6	0	13
Southern California Edison
Net loss arising during the period, tax benefit	0	3	3	3
Amortization of net loss included in net income, tax expense	$ 1	$ 1	$ 2	$ 3

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Variable Interest Entities

6 Months Ended

Jun. 30, 2013

Variable Interest Entities Disclosure [Abstract]

Variable Interest Entities

Variable Interest Entities

Variable Interest in VIEs that are not Consolidated

Power Purchase Contracts

SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities ("QFs") that contain variable pricing provisions based on the price of natural gas. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. In general, because payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants.

As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to its involvement with VIEs result from amounts due under the PPAs or the fair value of those derivative contracts. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 9 in the 2012 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE for these VIE projects was 4,057 MW and 2,014 MW at June 30, 2013 and 2012, respectively, and the amounts that SCE paid to these projects were $99 million and $57 million for the three months ended June 30, 2013 and 2012, respectively, and $197 million and $134 million for the six months ended June 30, 2013 and 2012, respectively. These amounts are recoverable in customer rates, subject to reasonableness review. As of June 30, 2013, SCE has additional VIE contracts with future aggregate contracted capacity of 1,358 MW to be delivered starting in August 2013 and January 2014.

Unconsolidated Trusts of SCE

SCE Trust I and Trust II were formed in 2012 and 2013, respectively, for the exclusive purpose of issuing the 5.625% and 5.10% trust preference securities, respectively (“trust securities”). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts.

In May 2012, SCE Trust I issued $475 million (aggregate liquidation preference) of 5.625% trust securities (cumulative, liquidation amount of $25 per share) to the public and $10,000 of common stock (100%) to SCE. The trust invested the proceeds of these trust securities in Series F Preference Stock issued by SCE in the principal amount of $475 million (cumulative, $2,500 per share liquidation value) and which have substantially the same payment terms as the trust securities.

In January 2013, SCE Trust II issued $400 million (aggregate liquidation preference) of 5.10% trust securities (cumulative, liquidation amount of $25 per share) to the public and $10,000 of common stock (100%) to SCE. The trust invested the proceeds of these trust securities in Series G Preference Stock issued by SCE in the principal amount of $400 million (cumulative, $2,500 per share liquidation value) and which have substantially the same payment terms as the trust securities.

The Series F and Series G Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F or Series G Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (for further information see Note 13). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities when and if the SCE board of directors declares and makes dividend payments on the Series F or Series G Preference Stock. The applicable trusts will use any dividends it receives on the Series F or Series G Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to either trust, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the Series F and Series G Preference Stock.

The Trust I balance sheet as of June 30, 2013 and December 31, 2012, consisted of an investment of $475 million in the Series F Preference Stock, $475 million of trust securities and $10,000 of common stock. The trust's income statement consisted of dividend income and dividend distributions of $6 million and $3 million each for the three months ended June 30, 2013 and 2012, respectively, and $13 million and $3 million each for the six months ended June 30, 2013 and 2012, respectively.

The Trust II balance sheet as of June 30, 2013, consisted of an investment of $400 million in the Series G Preference Stock, $400 million of trust securities and $10,000 of common stock. The trust's income statement consisted of dividend income and dividend distributions of $5 million each for the three months ended June 30, 2013 and $9 million each for the six months ended June 30, 2013.

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Supplemental Cash Flows Information

6 Months Ended

Jun. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flows Information

Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International				SCE
	Six months ended June 30,
(in millions)	2013		2012		2013		2012
Cash payments (receipts) for interest and taxes:
Interest, net of amounts capitalized	$	213	$	194	$	205	$	194
Tax payments (refunds), net	26		1		17		(2		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	110	$	106	$	—	$	—
Preferred and preference stock	29		34		29		34

SCE's accrued capital expenditures at June 30, 2013 and 2012 were $515 million and $408 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid.

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Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012	Jun. 30, 2013		Jun. 30, 2012
Increase (Decrease) in Accumulated Other Comprehensive Loss
Balance at the beginning of period				$ (87)
Net current-period other comprehensive loss	5		(38)	5		(17)
Balance at the end of period	(82)			(82)
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Abstract]
Tax expense	(102)		100	(4)		192
Total reclassification, net of tax	(70)		98	227		208
Southern California Edison
Increase (Decrease) in Accumulated Other Comprehensive Loss
Balance at the beginning of period				(29)
Net current-period other comprehensive loss	2		(3)	(1)		0
Balance at the end of period	(30)			(30)
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Abstract]
Tax expense	(99)		108	13		208
Total reclassification, net of tax	(67)		214	216		414
Accumulated Defined Benefit Plans Adjustment
Increase (Decrease) in Accumulated Other Comprehensive Loss
Balance at the beginning of period	(87)			(87)
Other comprehensive loss before reclassifications	0			(2)
Amounts reclassified from accumulated other comprehensive loss	5	[1]		7	[1]
Net current-period other comprehensive loss	5			5
Balance at the end of period	(82)			(82)
Accumulated Defined Benefit Plans Adjustment | Southern California Edison
Increase (Decrease) in Accumulated Other Comprehensive Loss
Balance at the beginning of period	(32)			(29)
Other comprehensive loss before reclassifications	0			(4)
Amounts reclassified from accumulated other comprehensive loss	2	[1]		3	[1]
Net current-period other comprehensive loss	2			(1)
Balance at the end of period	(30)			(30)
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Abstract]
Amortization of net loss included in net income	6			9
Tax expense	1			2
Total reclassification, net of tax	5			7
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Loss | Southern California Edison
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Abstract]
Amortization of net loss included in net income	3			5
Tax expense	1			2
Total reclassification, net of tax	$ 2			$ 3

[1] These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

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Compensation and Benefit Plans (Workforce Reduction) (Details) (Southern California Edison, USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Employee severance
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 104
Additions	109
Payments	(88)
Ending balance	$ 125
San Onofre [Member]
Restructuring Cost and Reserve [Line Items]
San Onofre expected number of positions to be eliminated	960

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Regulatory Assets and Liabilities

6 Months Ended

Jun. 30, 2013

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

As a result of the permanent retirement of San Onofre, SCE has reclassified at May 31, 2013, $1,521 million of its investment including property, plant and equipment, nuclear fuel and inventory, and other assets to a regulatory asset. The San Onofre regulatory asset will increase or decrease in subsequent periods based on the difference between authorized revenue related to San Onofre and actual cost of service that is expected to be recovered. In June 2013, SCE cost of service, including severance costs of $56 million, exceeded authorized revenue by $32 million resulting in an increase in the San Onofre regulatory asset.

As of June 30, 2013, SCE also recorded a regulatory asset for recovery of $33 million of estimated costs associated with the cancellation and management of future deliveries of nuclear fuel. See Note 12 for further information.

Regulatory Assets

Regulatory assets included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	709	$	502
Energy derivatives	94		70
Total Current	803		572
Long-term:
Deferred income taxes, net	2,759		2,663
Pensions and other postretirement benefits	1,119		1,550
Energy derivatives	990		900
Unamortized investments, net	363		507
San Onofre	1,584		—
Unamortized loss on reacquired debt	218		228
Nuclear-related investment, net	35		141
Regulatory balancing accounts	78		73
Other	348		360
Total Long-term	7,494		6,422
Total Regulatory Assets	$	8,297	$	6,994

Regulatory Liabilities

Regulatory liabilities included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	443	$	484
Other	50		52
Total Current	493		536
Long-term:
Costs of removal	2,791		2,731
Asset Retirement Obligations	853		1,385
Regulatory balancing accounts	1,183		1,091
Other	9		7
Total Long-term	4,836		5,214
Total Regulatory Liabilities	$	5,329	$	5,750

The regulatory liability related to asset retirement obligations represents the nuclear decommissioning trust assets in excess of the related asset retirement obligations. The decrease in this regulatory liability during June 2013 results from a revision to the asset retirement obligations of San Onofre. For further information, see Note 1.

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Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value of Long-Term Debt Recorded at Carrying Value
Carrying Value	$ 9,630	$ 9,231
Fair Value	10,593	10,944
Southern California Edison
Fair Value of Long-Term Debt Recorded at Carrying Value
Carrying Value	9,227	8,828
Fair Value	$ 10,168	$ 10,505

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Compensation and Benefit Plans (Textual) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	3 Months Ended		6 Months Ended						3 Months Ended		6 Months Ended					6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013 Pension Plans	Jun. 30, 2012 Pension Plans	Jun. 30, 2013 Pension Plans	Jun. 30, 2012 Pension Plans	Jun. 30, 2013 Postretirement Benefits Other Than Pensions	Jun. 30, 2013 Southern California Edison	May 31, 2013 Southern California Edison	Dec. 31, 2012 Southern California Edison	Jun. 30, 2013 Southern California Edison Pension Plans	Jun. 30, 2012 Southern California Edison Pension Plans	Jun. 30, 2013 Southern California Edison Pension Plans	Jun. 30, 2012 Southern California Edison Pension Plans	Jun. 30, 2013 Southern California Edison Postretirement Benefits Other Than Pensions	May 31, 2013 Initial	May 31, 2013 Revised	Jun. 30, 2013 San Onofre [Member] Southern California Edison positions	Jun. 30, 2013 Decommissioning Plan San Onofre [Member] Southern California Edison positions
Pension and Other Postretirement Benefits
San Onofre expected number of positions to be eliminated																	960	175
Defined Benefit Plan, Actuarial Gain (Loss)	$ 369						$ 362
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate															3.75%	4.25%
Settlement costs		49	0	49	0					48	0	48	0
Defined Benefit Plan, Unfunded Status of Plan								658	1,100
Employer contributions				104		15						94		15
Estimated future contributions in remainder of 2013		$ 86		$ 86		$ 20				$ 70		$ 70		$ 20

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Summary of Significant Accounting Policies (Details) (Southern California Edison, Electric Utility)	6 Months Ended
	Jun. 30, 2013 sqmi
Southern California Edison | Electric Utility
Summary of Significant Accounting Policies [Line Items]
Supply of electricity, area covered (square mile)	50,000

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Cash Equivalents

Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Cash reclassified to accounts payable	$	160	$	247	$	158	$	242

The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Money market funds	$	72	$	107	$	10	$	5

Inventory Components

Inventory consisted of the following:

(in millions)	June 30, 2013		December 31, 2012
Materials, supplies and spare parts	$	244	$	319
Fuel	23		21
Total inventory	$	267	$	340

EPS Attributable to Edison International Common Shareholders

EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013				2012		2013		2012
Basic earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Basic earnings per share – continuing operations	$	(0.33	)		$	0.56	$	0.47	$	1.10
Diluted earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Income impact of assumed conversions	—				—		—		—
Income (loss) from continuing operations available to common shareholders and assumed conversions	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Incremental shares from assumed conversions	—			1	8		3		7
Adjusted weighted average shares – diluted	326				334		329		333
Diluted earnings per share – continuing operations	$	(0.33	)		$	0.55	$	0.47	$	1.08

Asset Retirement Obligation

(in millions)	June 30, 2013		December 31, 2012
Beginning balance	$	2,782	$	2,610
Accretion expense	85		161
Revisions	455		12
Liabilities settled	—		(1		)
Ending balance	$	3,322	$	2,782

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of nonutility subsidiaries that are engaged in competitive businesses related to the delivery or use of electricity. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in Note 1 of "Notes to Consolidated Financial Statements" included in the 2012 Form 10-K. The same accounting policies are followed for interim reporting purposes, with the exception of accounting principles adopted as of January 1, 2013, discussed below in "—New Accounting Guidance." This quarterly report should be read in conjunction with the financial statements and notes included in the 2012 Form 10-K.

Beginning in the fourth quarter of 2012, EME met the definition of a discontinued operation and was classified separately in Edison International's consolidated financial statements. Except as indicated, amounts in the notes to the consolidated financial statements relate to continuing operations of Edison International. See Note 16 for information related to discontinued operations.

In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2013 are not necessarily indicative of the operating results for the full year.

The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Cash Equivalents

Cash is temporarily invested until required for check clearing from the primary disbursement accounts.

Cash Equivalents

Cash equivalents included investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less.

Inventory

Inventory

Inventory is stated at the lower of cost or market, cost being determined by the weighted-average cost method for fuel, and the average cost method for materials, supplies and spare parts.

Greenhouse Gas Emission Allowances

Greenhouse Gas Allowances

SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to submit to quarterly auctions. GHG proceeds from the auction are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances from quarterly auctions or bilateral parties to satisfy its compliance obligations and recovers such costs of GHG from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated at the lower of weighted-average cost or market.

Earnings Per Share

Earnings Per Share

Edison International computes earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including stock options, performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares. Stock options awarded during the period 2003 through 2006 received dividend equivalents.

New Accounting Guidance

New Accounting Guidance

Accounting Guidance Adopted in 2013

Offsetting Assets and Liabilities

In January 2013, the FASB issued accounting standards updates modifying the disclosure requirements about the nature of an entity's rights of offsetting recognized assets and liabilities in the statement of financial position under master netting agreements and similar arrangements associated with derivative instruments, repurchase agreements and securities lending transactions. The guidance requires increased disclosure of the gross and net recognized assets and liabilities, collateral positions and descriptions of setoff rights. Edison International and SCE adopted this guidance effective January 1, 2013. The adoption of this standard did not impact the consolidated income statements, balance sheets or cash flows of Edison International or SCE.

Items Reclassified out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued an accounting standards update which requires disclosure related to items reclassified out of AOCI. The guidance requires companies to present separately, for each component of other comprehensive income, current period reclassifications and the remainder of the current-period other comprehensive income. In addition, for certain current period reclassifications, an entity is required to disclose the effect of the item reclassified out of AOCI on the respective line item(s) of net income. Edison International and SCE adopted this guidance effective January 1, 2013. See Note 14 for further details.

Accounting Guidance Not Yet Adopted

In July 2013, the FASB issued an accounting standards update that will require that an unrecognized tax benefit be presented on the balance sheet as a reduction of a deferred tax asset for a net operating loss ("NOL") or tax credit carryforward under certain circumstances. This proposal is effective January 1, 2014 and is not expected to have a material impact on the consolidated financial statements.

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Fair Value Measurements (Level 3 Rollforward) (Details) (Southern California Edison, Level 3, USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Southern California Edison | Level 3
Fair Value Disclosures Level 3 [Roll Forward]
Fair value of net asset (liabilities) at beginning of period	$ (882)	$ (1,097)	$ (791)	$ (754)
Total realized/unrealized gains (losses):
Included in regulatory assets and liabilities	(76)	341	(158)	(23)
Purchases	20	29	38	50
Settlements	(29)	(12)	(56)	(12)
Fair value of net liabilities at end of period	(967)	(739)	(967)	(739)
Change during the period in unrealized losses related to assets and liabilities held at the end of the period	$ (43)	$ 335	$ (125)	$ (8)

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Regulatory Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets Included on the Consolidated Balance Sheets

Regulatory assets included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	709	$	502
Energy derivatives	94		70
Total Current	803		572
Long-term:
Deferred income taxes, net	2,759		2,663
Pensions and other postretirement benefits	1,119		1,550
Energy derivatives	990		900
Unamortized investments, net	363		507
San Onofre	1,584		—
Unamortized loss on reacquired debt	218		228
Nuclear-related investment, net	35		141
Regulatory balancing accounts	78		73
Other	348		360
Total Long-term	7,494		6,422
Total Regulatory Assets	$	8,297	$	6,994

Regulatory Liabilities Included on the Consolidated Balance Sheets

Regulatory liabilities included on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Current:
Regulatory balancing accounts	$	443	$	484
Other	50		52
Total Current	493		536
Long-term:
Costs of removal	2,791		2,731
Asset Retirement Obligations	853		1,385
Regulatory balancing accounts	1,183		1,091
Other	9		7
Total Long-term	4,836		5,214
Total Regulatory Liabilities	$	5,329	$	5,750

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Summary of Significant Accounting Policies (Inventory) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Southern California Edison	Dec. 31, 2012 Southern California Edison	May 31, 2013 San Onofre (nuclear) Southern California Edison	May 31, 2013 San Onofre (nuclear) Inventory Southern California Edison
Summary of Significant Accounting Policies [Line Items]
Materials and supplies, and spare parts			$ 244	$ 319
Fuel			23	21
Total inventory	267	340	267	340
Amount of assets reclassified to a regulatory asset					$ 1,521	$ 100

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Debt and Credit Agreements (Details) (USD $) In Millions, unless otherwise specified											6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Southern California Edison	Dec. 31, 2012 Southern California Edison	Mar. 31, 2013 Southern California Edison First and refunding mortgage bonds	Jun. 30, 2013 Southern California Edison Revolving credit facility maturing in May 2017	Jun. 30, 2013 Edison International Parent and Other Revolving credit facility maturing in May 2017	Dec. 31, 2012 Edison International Parent and Other Revolving credit facility maturing in May 2017	Jun. 30, 2013 Commercial paper Southern California Edison Revolving credit facility maturing in May 2017	Dec. 31, 2012 Commercial paper Southern California Edison Revolving credit facility maturing in May 2017	Jun. 30, 2013 Letters of credit Southern California Edison Revolving credit facility maturing in May 2017	Jul. 18, 2013 Subsequent Event Southern California Edison Revolving credit facility maturing in May 2017	Jul. 18, 2013 Subsequent Event Southern California Edison Credit facility maturing in July 2018	Jul. 18, 2013 Subsequent Event Edison International Parent and Other Revolving credit facility maturing in May 2017	Jul. 18, 2013 Subsequent Event Edison International Parent and Other Credit facility maturing in July 2018
Debt Instrument [Line Items]
Issuance of debt					$ 400
Stated interest rate (as a percent)					3.90%
Outstanding borrowings						828				175
Weighted average interest rate (as a percent)							1.48%		0.27%	0.37%
Commitment						2,750	1,250					150	2,600	68	1,182
Outstanding letters of credit											96
Letters of credit expiration period											12 months
Short-term debt	$ 853	$ 175	$ 828	$ 175			$ 25	$ 0

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Reconciliation of income tax expense

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Income (loss) from continuing operations before income taxes	$	(184	)	$	307		$	199		$	593
Provision for income tax at federal statutory rate of 35%	(64		)	107			70			207
Increase (decrease) in income tax from:
State tax, net of federal benefit	(20		)	8			(17		)	14
Property-related	(22		)	(10		)	(64		)	(19		)
Uncertain tax positions	11			—			18			1
Other	(7		)	(5		)	(11		)	(11		)
Total income tax expense (benefit) from continuing operations	$	(102	)	$	100		$	(4	)	$	192
Effective tax rate	*			32.6		%	*			32.4		%
SCE:
Income (loss) from continuing operations before income taxes	$	(166	)	$	322		$	229		$	622
Provision for income tax at federal statutory rate of 35%	(58		)	113			80			218
Increase (decrease) in income tax from:
State tax, net of federal benefit	(23		)	10			(9		)	20
Property-related	(22		)	(10		)	(64		)	(20		)
Uncertain tax positions	11			(1		)	17			—
Other	(7		)	(4		)	(11		)	(10		)
Total income tax expense (benefit) from continuing operations	$	(99	)	$	108		$	13		$	208
Effective tax rate	*			33.5		%	5.7		%	33.4		%

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Commitments and Contingencies (Operating Leases) (Details) (Southern California Edison, USD $)	Jun. 30, 2013
Southern California Edison
Lease Disclosures [Line Items]
Future minimum payments due, 2014	$ 197,000,000
Future minimum payments due, 2015	198,000,000
Future minimum payments due, 2016	202,000,000
Future minimum payments due, 2017	264,000,000
Future minimum payments due, 2018	$ 1,800,000,000

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Regulatory Assets and Liabilities (Textual) (Details) (Southern California Edison, USD $) In Millions, unless otherwise specified			1 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 San Onofre (nuclear)	May 31, 2013 San Onofre (nuclear)	Jun. 30, 2013 Nuclear fuel supply commitments Estimated costs related to contract cancellation and management San Onofre (nuclear)
Regulatory Assets [Line Items]
Amount of assets reclassified to a regulatory asset				$ 1,521
Cost of service			56
Increase in regulatory assets			32
Regulatory asset	$ 8,297	$ 6,994			$ 33

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Consolidated Statements of Changes in Equity (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			$ 11,191	$ 11,086
Net income (loss)	(70)	98	227	208
Other comprehensive income (loss)	5	(38)	5	(17)
Contributions from noncontrolling interests				238
Transfer of assets to Capistrano Wind Partners				(21)
Common stock dividends declared			(220)	(212)
Dividends, distributions to noncontrolling interests and other			(51)	(41)
Stock-based compensation and other			(37)	(41)
Noncash stock-based compensation and other			6	15
Issuance of preference stock			387	805
Redemption of preference stock			(400)	(75)
Balance, at the end of the period	11,108	11,945	11,108	11,945
Dividends declared per common share (in dollars per share)	$ 0.3375	$ 0.325	$ 0.6750	$ 0.65
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			2,373	2,360
Net income (loss)			0	0
Other comprehensive income (loss)			0	0
Contributions from noncontrolling interests				0
Transfer of assets to Capistrano Wind Partners				(21)
Common stock dividends declared			0	0
Dividends, distributions to noncontrolling interests and other			0	0
Stock-based compensation and other			3	15
Noncash stock-based compensation and other			12	17
Issuance of preference stock			0	0
Redemption of preference stock			0	0
Balance, at the end of the period	2,388	2,371	2,388	2,371
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			(87)	(139)
Net income (loss)			0	0
Other comprehensive income (loss)			5	(17)
Contributions from noncontrolling interests				0
Transfer of assets to Capistrano Wind Partners				0
Common stock dividends declared			0	0
Dividends, distributions to noncontrolling interests and other			0	0
Stock-based compensation and other			0	0
Noncash stock-based compensation and other			0	0
Issuance of preference stock			0	0
Redemption of preference stock			0	0
Balance, at the end of the period	(82)	(156)	(82)	(156)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			7,146	7,834
Net income (loss)			176	167
Other comprehensive income (loss)			0	0
Contributions from noncontrolling interests				0
Transfer of assets to Capistrano Wind Partners				0
Common stock dividends declared			(220)	(212)
Dividends, distributions to noncontrolling interests and other			0	0
Stock-based compensation and other			(40)	(56)
Noncash stock-based compensation and other			(5)	(2)
Issuance of preference stock			0	0
Redemption of preference stock			(8)	(1)
Balance, at the end of the period	7,049	7,730	7,049	7,730
Subtotal
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			9,432	10,055
Net income (loss)			176	167
Other comprehensive income (loss)			5	(17)
Contributions from noncontrolling interests				0
Transfer of assets to Capistrano Wind Partners				(21)
Common stock dividends declared			(220)	(212)
Dividends, distributions to noncontrolling interests and other			0	0
Stock-based compensation and other			(37)	(41)
Noncash stock-based compensation and other			7	15
Issuance of preference stock			0	0
Redemption of preference stock			(8)	(1)
Balance, at the end of the period	9,355	9,945	9,355	9,945
Other Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period				2
Net income (loss)				0
Other comprehensive income (loss)				0
Contributions from noncontrolling interests				238
Transfer of assets to Capistrano Wind Partners				0
Common stock dividends declared				0
Dividends, distributions to noncontrolling interests and other				0
Stock-based compensation and other				0
Noncash stock-based compensation and other				0
Issuance of preference stock				0
Redemption of preference stock				0
Balance, at the end of the period		240		240
Preferred Stock and Preference Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			1,759	1,029
Net income (loss)			51	41
Other comprehensive income (loss)			0	0
Contributions from noncontrolling interests				0
Transfer of assets to Capistrano Wind Partners				0
Common stock dividends declared			0	0
Dividends, distributions to noncontrolling interests and other			(51)	(41)
Stock-based compensation and other			0	0
Noncash stock-based compensation and other			(1)	0
Issuance of preference stock			387	805
Redemption of preference stock			(392)	(74)
Balance, at the end of the period	1,753	1,760	1,753	1,760
Southern California Edison
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			11,743	9,958
Net income (loss)	(67)	214	216	414
Other comprehensive income (loss)	2	(3)	(1)	0
Common stock dividends declared			(240)	(233)
Dividends declared on preferred and preference stock			(51)	(41)
Stock-based compensation and other			(34)	(20)
Noncash stock-based compensation and other			12	8
Issuance of preference stock			387	805
Redemption of preference stock			(400)	(75)
Balance, at the end of the period	11,632	10,816	11,632	10,816
Southern California Edison | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			2,168	2,168
Net income (loss)			0	0
Other comprehensive income (loss)			0
Common stock dividends declared			0	0
Dividends declared on preferred and preference stock			0	0
Stock-based compensation and other			0	0
Noncash stock-based compensation and other			0	0
Issuance of preference stock			0	0
Redemption of preference stock			0	0
Balance, at the end of the period	2,168	2,168	2,168	2,168
Southern California Edison | Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			581	596
Net income (loss)			0	0
Other comprehensive income (loss)			0
Common stock dividends declared			0	0
Dividends declared on preferred and preference stock			0	0
Stock-based compensation and other			1	10
Noncash stock-based compensation and other			7	8
Issuance of preference stock			(13)	(20)
Redemption of preference stock			8	1
Balance, at the end of the period	584	595	584	595
Southern California Edison | Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			(29)	(24)
Net income (loss)			0	0
Other comprehensive income (loss)			(1)
Common stock dividends declared			0	0
Dividends declared on preferred and preference stock			0	0
Stock-based compensation and other			0	0
Noncash stock-based compensation and other			0	0
Issuance of preference stock			0	0
Redemption of preference stock			0	0
Balance, at the end of the period	(30)	(24)	(30)	(24)
Southern California Edison | Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			7,228	6,173
Net income (loss)			216	414
Other comprehensive income (loss)			0
Common stock dividends declared			(240)	(233)
Dividends declared on preferred and preference stock			(51)	(41)
Stock-based compensation and other			(35)	(30)
Noncash stock-based compensation and other			5	0
Issuance of preference stock			0	0
Redemption of preference stock			(8)	(1)
Balance, at the end of the period	7,115	6,282	7,115	6,282
Southern California Edison | Preferred Stock and Preference Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			1,795	1,045
Net income (loss)			0	0
Other comprehensive income (loss)			0
Common stock dividends declared			0	0
Dividends declared on preferred and preference stock			0	0
Stock-based compensation and other			0	0
Noncash stock-based compensation and other			0	0
Issuance of preference stock			400	825
Redemption of preference stock			(400)	(75)
Balance, at the end of the period	$ 1,795	$ 1,795	$ 1,795	$ 1,795

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Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax benefit from discontinued operations	$ 12		$ 24
Operating revenues from discontinued operations		406		849
Loss from discontinued operation before income taxes		208		383
Pensions and benefits	2,234		2,234		2,614
Edison Mission Energy
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of days after bankruptcy filing for settlement transaction (days)			150 days
Number of days for completion of settlement transaction agreement from petition date (days)			210 days
Joint tax liability	189		189
Receivables from EME	235		235
Edison Mission Energy | Pension Plans
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pensions and benefits	80		80
Deconsolidated charges recorded in accumulated other comprehensive income			34
Plan Support Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net receivable under plan support agreement	46		46
Retirement liabilities assumed under plan support agreement	104		104
Estimated loss under plan support agreement			$ 150

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Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Related-Party Transactions

In 2008, EME was awarded by SCE, through a competitive bidding process, a 10-year power sales contract with SCE for the output of a 479 MW gas-fired peaking facility referred to as the Walnut Creek project. The power sales agreement was approved by the CPUC and FERC in 2008. Deliveries under the power sales agreement commenced in June 2013 and the expense for power purchased was $6 million for the three- and six-months ended June 30, 2013.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Receivables, allowances for uncollectible accounts (in dollars)	$ 66	$ 75
Utility property, plant and equipment, accumulated depreciation (in dollars)	7,578	7,424
Nonutility property, plant and equipment, accumulated depreciation (in dollars)	69	123
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	325,811,206	325,811,206
Common stock, shares outstanding	325,811,206	325,811,206
Southern California Edison
Receivables, allowances for uncollectible accounts (in dollars)	66	75
Utility property, plant and equipment, accumulated depreciation (in dollars)	7,578	7,424
Nonutility property, plant and equipment, accumulated depreciation (in dollars)	$ 63	$ 117
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	560,000,000	560,000,000
Common stock, shares issued	434,888,104	434,888,104
Common stock, shares outstanding	434,888,104	434,888,104

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of nonutility subsidiaries that are engaged in competitive businesses related to the delivery or use of electricity. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in Note 1 of "Notes to Consolidated Financial Statements" included in the 2012 Form 10-K. The same accounting policies are followed for interim reporting purposes, with the exception of accounting principles adopted as of January 1, 2013, discussed below in "—New Accounting Guidance." This quarterly report should be read in conjunction with the financial statements and notes included in the 2012 Form 10-K.

Beginning in the fourth quarter of 2012, EME met the definition of a discontinued operation and was classified separately in Edison International's consolidated financial statements. Except as indicated, amounts in the notes to the consolidated financial statements relate to continuing operations of Edison International. See Note 16 for information related to discontinued operations.

In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2013 are not necessarily indicative of the operating results for the full year.

The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Cash Equivalents

Cash equivalents included investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Money market funds	$	72	$	107	$	10	$	5

Cash is temporarily invested until required for check clearing from the primary disbursement accounts. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Cash reclassified to accounts payable	$	160	$	247	$	158	$	242

Inventory

Inventory is stated at the lower of cost or market, cost being determined by the weighted-average cost method for fuel, and the average cost method for materials, supplies and spare parts. Inventory consisted of the following:

(in millions)	June 30, 2013		December 31, 2012
Materials, supplies and spare parts	$	244	$	319
Fuel	23		21
Total inventory	$	267	$	340

As a result of the permanent retirement of San Onofre, SCE has reclassified $100 million of its inventory to a regulatory asset, see Note 9 for further details.

Greenhouse Gas Allowances

SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to submit to quarterly auctions. GHG proceeds from the auction are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances from quarterly auctions or bilateral parties to satisfy its compliance obligations and recovers such costs of GHG from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated at the lower of weighted-average cost or market.

Earnings Per Share

Edison International computes earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including stock options, performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares. Stock options awarded during the period 2003 through 2006 received dividend equivalents. EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013				2012		2013		2012
Basic earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Basic earnings per share – continuing operations	$	(0.33	)		$	0.56	$	0.47	$	1.10
Diluted earnings per share – continuing operations:
Income (loss) from continuing operations available to common shareholders	$	(106	)		$	183	$	152	$	360
Income impact of assumed conversions	—				—		—		—
Income (loss) from continuing operations available to common shareholders and assumed conversions	$	(106	)		$	183	$	152	$	360
Weighted average common shares outstanding	326				326		326		326
Incremental shares from assumed conversions	—			1	8		3		7
Adjusted weighted average shares – diluted	326				334		329		333
Diluted earnings per share – continuing operations	$	(0.33	)		$	0.55	$	0.47	$	1.08

¹  Due to a loss for the three months ended June 30, 2013, there were no incremental shares in the computation because such shares would be considered antidilutive.

Stock-based compensation awards to purchase 3,266,857 shares of common stock for the three months ended June 30, 2012, and 1,587,370 and 4,928,510 for the six months ended June 30, 2013 and 2012, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the awards was greater than the average market price of the common shares during the respective periods and, therefore, the effect would have been antidilutive.

Asset Retirement Obligation

SCE is in the process of developing a comprehensive decommissioning plan following its decision to permanently retire San Onofre. See Note 9 for further details. The total asset retirement obligation ("ARO") liability related to San Onofre was revised in the second quarter of 2013 based on an updated decommissioning cost estimate for the retirement of both San Onofre Units 2 and 3. The revised ARO liability at June 30, 2013 related to San Onofre increased $455 million to $2.7 billion.

The following table summarizes the changes in SCE's ARO liability, including San Onofre and Palo Verde:

(in millions)	June 30, 2013		December 31, 2012
Beginning balance	$	2,782	$	2,610
Accretion expense	85		161
Revisions	455		12
Liabilities settled	—		(1		)
Ending balance	$	3,322	$	2,782

New Accounting Guidance

Accounting Guidance Adopted in 2013

Offsetting Assets and Liabilities

In January 2013, the FASB issued accounting standards updates modifying the disclosure requirements about the nature of an entity's rights of offsetting recognized assets and liabilities in the statement of financial position under master netting agreements and similar arrangements associated with derivative instruments, repurchase agreements and securities lending transactions. The guidance requires increased disclosure of the gross and net recognized assets and liabilities, collateral positions and descriptions of setoff rights. Edison International and SCE adopted this guidance effective January 1, 2013. The adoption of this standard did not impact the consolidated income statements, balance sheets or cash flows of Edison International or SCE.

Items Reclassified out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued an accounting standards update which requires disclosure related to items reclassified out of AOCI. The guidance requires companies to present separately, for each component of other comprehensive income, current period reclassifications and the remainder of the current-period other comprehensive income. In addition, for certain current period reclassifications, an entity is required to disclose the effect of the item reclassified out of AOCI on the respective line item(s) of net income. Edison International and SCE adopted this guidance effective January 1, 2013. See Note 14 for further details.

Accounting Guidance Not Yet Adopted

In July 2013, the FASB issued an accounting standards update that will require that an unrecognized tax benefit be presented on the balance sheet as a reduction of a deferred tax asset for a net operating loss ("NOL") or tax credit carryforward under certain circumstances. This proposal is effective January 1, 2014 and is not expected to have a material impact on the consolidated financial statements.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Recurring Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2013 and December 31, 2012, nonperformance risk was not material for Edison International and SCE.

Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

SCE

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

	June 30, 2013
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	10	$	—	$	—		$	—		$	10
Mutual funds	28		—		—			—			28
Derivative contracts:
Congestion Revenue Rights	—		—		137			—			137
Electricity	—		—		17			(10		)	7
Natural gas	—		13		—			(1		)	12
Tolling	—		—		8			—			8
Subtotal of derivative contracts	—		13		162			(11		)	164
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,085		—		—			—			2,085
U.S. government and agency securities	881		144		—			—			1,025
Municipal bonds	—		592		—			—			592
Corporate bonds3	—		347		—			—			347
Short-term investments, primarily cash equivalents4	168		112		—			—			280
Subtotal of nuclear decommissioning trusts	3,134		1,195		—			—			4,329
Total assets	3,180		1,208		162			(11		)	4,539
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		6			(1		)	7
Natural gas	—		68		—			(31		)	37
Tolling	—		—		1,123			—			1,123
Subtotal of derivative contracts	—		70		1,129			(32		)	1,167
Total liabilities	—		70		1,129			(32		)	1,167
Net assets (liabilities)	$	3,180	$	1,138	$	(967	)	$	21		$	3,372

	December 31, 2012
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	5	$	—	$	—		$	—		$	5
Derivative contracts:
Congestion Revenue Rights	—		—		186			—			186
Electricity	—		—		31			(13		)	18
Natural gas	—		8		—			(2		)	6
Tolling	—		—		4			—			4
Subtotal of derivative contracts	—		8		221			(15		)	214
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,271		—		—			—			2,271
Municipal bonds	—		644		—			—			644
U.S. government and agency securities	477		126		—			—			603
Corporate bonds3	—		410		—			—			410
Short-term investments, primarily cash equivalents4	121		—		—			—			121
Subtotal of nuclear decommissioning trusts	2,869		1,180		—			—			4,049
Total assets	2,882		1,188		221			(15		)	4,276
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		5			(2		)	5
Natural gas	—		113		2			(60		)	55
Tolling	—		—		1,005			—			1,005
Subtotal of derivative contracts	—		115		1,012			(62		)	1,065
Total liabilities	—		115		1,012			(62		)	1,065
Net assets (liabilities)	$	2,882	$	1,073	$	(791	)	$	47		$	3,211

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  Approximately 70% and 66% of SCE's equity investments were located in the United States at June 30, 2013 and December 31, 2012, respectively.

³  At June 30, 2013 and December 31, 2012, SCE's corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $58 million and $56 million, respectively.

⁴  Excludes net payables of $148 million and $1 million at June 30, 2013 and December 31, 2012, respectively, of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Edison International Parent and Other

Assets measured at fair value consisted of money market funds of $72 million and $107 million at June 30, 2013 and December 31, 2012, respectively, classified as Level 1.

SCE Fair Value of Level 3

The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Fair value of net liabilities at beginning of period	$	(882	)	$	(1,097	)	$	(791	)	$	(754	)
Total realized/unrealized gains (losses):
Included in regulatory assets and liabilities1	(76		)	341			(158		)	(23		)
Purchases	20			29			38			50
Settlements	(29		)	(12		)	(56		)	(12		)
Fair value of net liabilities at end of period	$	(967	)	$	(739	)	$	(967	)	$	(739	)
Change during the period in unrealized losses related to assets and liabilities held at the end of the period	$	(43	)	$	335		$	(125	)	$	(8	)

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

Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no transfers between any levels during 2013 and 2012.

Valuation Techniques Used to Determine Fair Value

Level 1

The fair value of Edison International and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities and derivatives, U.S. treasury securities, mutual funds and money market funds.

Level 2

SCE's Level 2 assets and liabilities include fixed income securities and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. For further discussion on fixed income securities, see "—Nuclear Decommissioning Trusts" below.

The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from exchanges (New York Mercantile Exchange and Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.

Level 3

The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes over-the-counter options, tolling arrangements and derivative contracts that trade infrequently such as congestion revenue rights ("CRRs") and long-term power agreements.

Assumptions are made in order to value derivative contracts in which observable inputs are not available. Changes in fair value are based on changes to forward market prices, including extrapolation of short-term observable inputs into forecasted prices for illiquid forward periods. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts.

Level 3 Valuation Process

The process of determining fair value is the responsibility of SCE's risk management department, which reports to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs are validated for reasonableness by comparison against prior prices, other broker quotes and volatility fluctuation thresholds. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness.

The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:

	Fair Value (in millions)							Significant	Range
June 30, 2013	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	22		$	7		Option model	Volatility of gas prices	23% - 32% (29%)
								Volatility of power prices	28% - 81% (44%)
								Power prices	$45.20 - $55.50 ($49.60)
Forwards	1			5			Discounted cash flow	Power prices	$23.90 - $49.30 ($40.20)
CRRs	137			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Tolling	8			1,123			Option model	Volatility of gas prices	15% - 32% (20%)
								Volatility of power prices	25% - 81% (29%)
								Power prices	$39.70 - $71.20 ($51.90)
Netting	(6		)	(6		)
Total derivative contracts	$	162		$	1,129

	Fair Value (in millions)							Significant	Range
December 31, 2012	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	40		$	12		Option model	Volatility of gas prices	25% - 36% (33%)
								Volatility of power prices	29% - 64% (42%)
								Power prices	$41.70 - $59.20 ($47.00)
Forwards	2			4			Discounted cash flow	Power prices	$23.10 - $44.90 ($31.10)
CRRs	186			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Gas options	—			2			Option model	Volatility of gas prices	28% - 36% (34%)
Tolling	4			1,005			Option model	Volatility of gas prices	17% - 36% (22%)
								Volatility of power prices	26% - 64% (29%)
								Power prices	$35.00 - $84.10 ($55.40)
Netting	(11		)	(11		)
Total derivative contracts	$	221		$	1,012

Level 3 Fair Value Sensitivity

Gas Options, Electricity Options, and Tolling Arrangements

The fair values of SCE's option contracts and tolling arrangements contain intrinsic value and time value. Intrinsic value is the difference between the market price and strike price of the underlying commodity. Time value is made up of several components, including volatility, time to expiration, and interest rates. The fair value of option contracts changes as the underlying commodity price moves away or towards the strike price. The option model for tolling arrangements reflects plant specific information such as operating and start-up costs.

For tolling arrangements and certain gas and power option contracts where SCE is the buyer, increases in volatility of the underlying commodity prices would result in increases to fair value as it represents greater price movement risk. As power and gas prices increase, the fair value of the option contracts and tolling arrangements tends to increase. The valuation of power option contracts and tolling arrangements is also impacted by the correlation between gas and power prices. As the correlation increases, the fair value of power option contracts and tolling arrangements tends to decline.

Forward Power Contracts

Generally, an increase (decrease) in long-term forward power prices at illiquid locations where SCE is the buyer relative to the contract price will increase (decrease) fair value.

Congestion Revenue Rights

Where SCE is the buyer, generally increases (decreases) in forecasted load in isolation would result in increases (decreases) to the fair value. In general, an increase (decrease) in electricity and gas prices at illiquid locations tends to result in increases (decreases) to fair value; however, changes in electricity and gas prices in opposite directions may have varying results on fair value.

Nuclear Decommissioning Trusts

SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information.

Fair Value of Long-Term Debt Recorded at Carrying Value

The carrying value and fair value of Edison International and SCE's long-term debt is as follows:

	June 30, 2013				December 31, 2012
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
SCE	$	9,227	$	10,168	$	8,828	$	10,505
Edison International	9,630		10,593		9,231		10,944

Fair value of Edison International and SCE's short-term and long-term debt is classified as Level 2 and is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes of new issue prices and relevant credit information.

The carrying value of Edison International and SCE's trade receivables and payables, other investments, and short-term debt approximates fair value.

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Consolidated Statements of Changes in Equity (Notes)

6 Months Ended

Jun. 30, 2013

Statement of Stockholders' Equity [Abstract]

Consolidated Statements of Changes in Equity

Consolidated Statements of Changes in Equity

The following table provides Edison International's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to Edison International											Noncontrolling Interests
(in millions)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,373	$	(87	)	$	7,146		$	9,432		$	1,759		$	11,191
Net income	—		—			176			176			51			227
Other comprehensive income	—		5			—			5			—			5
Common stock dividends declared ($0.675 per share)	—		—			(220		)	(220		)	—			(220		)
Dividends, distributions to noncontrolling interests	—		—			—			—			(51		)	(51		)
Stock-based compensation and other	3		—			(40		)	(37		)	—			(37		)
Noncash stock-based compensation and other	12		—			(5		)	7			(1		)	6
Issuance of preference stock	—		—			—			—			387			387
Redemption of preference stock	—		—			(8		)	(8		)	(392		)	(400		)
Balance at June 30, 2013	$	2,388	$	(82	)	$	7,049		$	9,355		$	1,753		$	11,108

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides Edison International's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to Edison International												Noncontrolling Interests
(in millions)	Common Stock			Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other		Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,360		$	(139	)	$	7,834		$	10,055		$	2	$	1,029		$	11,086
Net income	—			—			167			167			—		41			208
Other comprehensive loss	—			(17		)	—			(17		)	—		—			(17		)
Contributions from noncontrolling interests	—			—			—			—			238		—			238
Transfer of assets to Capistrano Wind Partners	(21		)	—			—			(21		)	—		—			(21		)
Common stock dividends declared ($0.65 per share)	—			—			(212		)	(212		)	—		—			(212		)
Dividends, distributions to noncontrolling interests and other	—			—			—			—			—		(41		)	(41		)
Stock-based compensation and other	15			—			(56		)	(41		)	—		—			(41		)
Noncash stock-based compensation and other	17			—			(2		)	15			—		—			15
Issuance of preference stock	—			—			—			—			—		805			805
Redemption of preference stock	—			—			(1		)	(1		)	—		(74		)	(75		)
Balance at June 30, 2012	$	2,371		$	(156	)	$	7,730		$	9,945		$	240	$	1,760		$	11,945

The following table provides SCE's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,168	$	581		$	(29	)	$	7,228		$	1,795		$	11,743
Net income	—		—			—			216			—			216
Other comprehensive loss	—		—			(1		)	—			—			(1		)
Dividends declared on common stock	—		—			—			(240		)	—			(240		)
Dividends declared on preferred and preference stock	—		—			—			(51		)	—			(51		)
Stock-based compensation and other	—		1			—			(35		)	—			(34		)
Noncash stock-based compensation and other	—		7			—			5			—			12
Issuance of preference stock	—		(13		)	—			—			400			387
Redemption of preference stock	—		8			—			(8		)	(400		)	(400		)
Balance at June 30, 2013	$	2,168	$	584		$	(30	)	$	7,115		$	1,795		$	11,632

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides SCE's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,168	$	596		$	(24	)	$	6,173		$	1,045		$	9,958
Net income	—		—			—			414			—			414
Dividends declared on common stock	—		—			—			(233		)	—			(233		)
Dividends declared on preferred and preference stock	—		—			—			(41		)	—			(41		)
Stock-based compensation and other	—		10			—			(30		)	—			(20		)
Noncash stock-based compensation and other	—		8			—			—			—			8
Issuance of preference stock	—		(20		)	—			—			825			805
Redemption of preference stock	—		1			—			(1		)	(75		)	(75		)
Balance at June 30, 2012	$	2,168	$	595		$	(24	)	$	6,282		$	1,795		$	10,816

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Summary of Significant Accounting Policies (Earnings Per Share) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Basic earnings per share - continuing operations:
Income from continuing operations available to common shareholders	$ (106)		$ 183	$ 152	$ 360
Weighted average common shares outstanding (in shares)	326,000,000		326,000,000	326,000,000	326,000,000
Basic earnings per share – continuing operations (in dollars per share)	$ (0.33)		$ 0.56	$ 0.47	$ 1.10
Diluted earnings per share - continuing operations:
Income from continuing operations available to common shareholders	(106)		183	152	360
Income impact of assumed conversions	0		0	0	0
Income from continuing operations available to common shareholders and assumed conversions	$ (106)		$ 183	$ 152	$ 360
Weighted average common shares outstanding (in shares)	326,000,000		326,000,000	326,000,000	326,000,000
Incremental shares from assumed conversions (in shares)	0	[1]	8,000,000	3,000,000	7,000,000
Adjusted weighted average shares - diluted (in shares)	326,000,000		334,000,000	329,000,000	333,000,000
Diluted earnings per share – continuing operations (in dollars per share)	$ (0.33)		$ 0.55	$ 0.47	$ 1.08
Stock-Based Compensation Awards
Diluted earnings per share - continuing operations:
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares)			3,266,857	1,587,370	4,928,510

[1] Due to a loss for the three months ended June 30, 2013, there were no incremental shares in the computation because such shares would be considered antidilutive.

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Consolidated Statements of Changes in Equity (Tables)

6 Months Ended

Jun. 30, 2013

Statement of Stockholders' Equity [Abstract]

Schedule of changes in equity

The following table provides Edison International's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to Edison International											Noncontrolling Interests
(in millions)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,373	$	(87	)	$	7,146		$	9,432		$	1,759		$	11,191
Net income	—		—			176			176			51			227
Other comprehensive income	—		5			—			5			—			5
Common stock dividends declared ($0.675 per share)	—		—			(220		)	(220		)	—			(220		)
Dividends, distributions to noncontrolling interests	—		—			—			—			(51		)	(51		)
Stock-based compensation and other	3		—			(40		)	(37		)	—			(37		)
Noncash stock-based compensation and other	12		—			(5		)	7			(1		)	6
Issuance of preference stock	—		—			—			—			387			387
Redemption of preference stock	—		—			(8		)	(8		)	(392		)	(400		)
Balance at June 30, 2013	$	2,388	$	(82	)	$	7,049		$	9,355		$	1,753		$	11,108

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides Edison International's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to Edison International												Noncontrolling Interests
(in millions)	Common Stock			Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other		Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,360		$	(139	)	$	7,834		$	10,055		$	2	$	1,029		$	11,086
Net income	—			—			167			167			—		41			208
Other comprehensive loss	—			(17		)	—			(17		)	—		—			(17		)
Contributions from noncontrolling interests	—			—			—			—			238		—			238
Transfer of assets to Capistrano Wind Partners	(21		)	—			—			(21		)	—		—			(21		)
Common stock dividends declared ($0.65 per share)	—			—			(212		)	(212		)	—		—			(212		)
Dividends, distributions to noncontrolling interests and other	—			—			—			—			—		(41		)	(41		)
Stock-based compensation and other	15			—			(56		)	(41		)	—		—			(41		)
Noncash stock-based compensation and other	17			—			(2		)	15			—		—			15
Issuance of preference stock	—			—			—			—			—		805			805
Redemption of preference stock	—			—			(1		)	(1		)	—		(74		)	(75		)
Balance at June 30, 2012	$	2,371		$	(156	)	$	7,730		$	9,945		$	240	$	1,760		$	11,945

The following table provides SCE's changes in equity for the six months ended June 30, 2013:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2012	$	2,168	$	581		$	(29	)	$	7,228		$	1,795		$	11,743
Net income	—		—			—			216			—			216
Other comprehensive loss	—		—			(1		)	—			—			(1		)
Dividends declared on common stock	—		—			—			(240		)	—			(240		)
Dividends declared on preferred and preference stock	—		—			—			(51		)	—			(51		)
Stock-based compensation and other	—		1			—			(35		)	—			(34		)
Noncash stock-based compensation and other	—		7			—			5			—			12
Issuance of preference stock	—		(13		)	—			—			400			387
Redemption of preference stock	—		8			—			(8		)	(400		)	(400		)
Balance at June 30, 2013	$	2,168	$	584		$	(30	)	$	7,115		$	1,795		$	11,632

During the first quarter of 2013, SCE redeemed all outstanding shares of Series B and C preference stock and charged the issuance costs to retained earnings.

The following table provides SCE's changes in equity for the six months ended June 30, 2012:

	Equity Attributable to SCE
(in millions)	Common Stock		Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Preferred and Preference Stock			Total Equity
Balance at December 31, 2011	$	2,168	$	596		$	(24	)	$	6,173		$	1,045		$	9,958
Net income	—		—			—			414			—			414
Dividends declared on common stock	—		—			—			(233		)	—			(233		)
Dividends declared on preferred and preference stock	—		—			—			(41		)	—			(41		)
Stock-based compensation and other	—		10			—			(30		)	—			(20		)
Noncash stock-based compensation and other	—		8			—			—			—			8
Issuance of preference stock	—		(20		)	—			—			825			805
Redemption of preference stock	—		1			—			(1		)	(75		)	(75		)
Balance at June 30, 2012	$	2,168	$	595		$	(24	)	$	6,282		$	1,795		$	10,816

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Compensation and Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2013

Workforce Reductions [Abstract]

Workforce reductions

The following table provides a summary of changes in the accrued severance liability associated with these reductions:

(in millions)
Balance at January 1, 2013	$	104
Additions	109
Payments	(88		)
Balance at June 30, 2013	$	125

Pension Plans

Pension and Other Postretirement Benefits

Expense Components for Plans

Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	38		$	39		$	76		$	77
Interest cost	42			45			84			91
Expected return on plan assets	(57		)	(55		)	(114		)	(111		)
Settlement costs	49			—			49			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	15			16			30			33
Expense under accounting standards	$	88		$	46		$	127		$	92
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	57		$	73		$	113		$	146
SCE:
Service cost	$	37		$	37		$	74		$	74
Interest cost	41			45			82			90
Expected return on plan assets	(57		)	(55		)	(114		)	(110		)
Settlement costs	48			—			48			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	14			15			28			30
Expense under accounting standards	$	84		$	43		$	120		$	86
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	53		$	70		$	106		$	140

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $4 million and $3 million for the three months ended June 30, 2013, respectively, and $7 million and $5 million for the six months ended June 30, 2013, respectively.

Postretirement Benefits Other Than Pensions

Pension and Other Postretirement Benefits

Expense Components for Plans

Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	14		$	12		$	28		$	24
Interest cost	26			29			52			57
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			23
Total expense	$	18		$	16		$	26		$	32
SCE:
Service cost	$	14		$	12		$	27		$	24
Interest cost	26			28			52			56
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			22
Total expense	$	18		$	15		$	25		$	30

¹  Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.

²  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was less than $1 million and zero for the three- and six-months ended June 30, 2013, respectively.

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Related Party Transactions (Details) (Southern California Edison, EME Natural Gas Fired Projects, USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013 MW
Southern California Edison | EME Natural Gas Fired Projects
Related Party Transaction [Line Items]
Term of power sales contract		10 years
Output		479
Expense for power purchased	$ 6	$ 6

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Supplemental Cash Flows Information (Tables)

6 Months Ended

Jun. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International				SCE
	Six months ended June 30,
(in millions)	2013		2012		2013		2012
Cash payments (receipts) for interest and taxes:
Interest, net of amounts capitalized	$	213	$	194	$	205	$	194
Tax payments (refunds), net	26		1		17		(2		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	110	$	106	$	—	$	—
Preferred and preference stock	29		34		29		34

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Supplemental Cash Flows Information (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash payments (receipts) for interest and taxes:
Interest, net of amounts capitalized	$ 213	$ 194
Tax payments (refunds), net	26	1
Dividends declared but not paid:
Common stock	110	106
Preferred and preference stock	29	34
Southern California Edison
Cash payments (receipts) for interest and taxes:
Interest, net of amounts capitalized	205	194
Tax payments (refunds), net	17	(2)
Dividends declared but not paid:
Common stock	0	0
Preferred and preference stock	29	34
Accrued capital expenditures	$ 515	$ 408

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Compensation and Benefit Plans (Expense Components) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012
Postretirement Benefits Other Than Pensions
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	$ 14		$ 12		$ 28		$ 24
Interest cost	26		29		52		57
Expected return on plan assets	(30)		(27)		(60)		(54)
Special termination benefits	10	[1]	0	[1]	10	[1]	0	[1]
Amortization of prior service cost	(9)		(9)		(18)		(18)
Amortization of net loss	7	[2]	11	[2]	14	[2]	23	[2]
Expense under accounting standards	18		16		26		32
Pension Plans
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	38		39		76		77
Interest cost	42		45		84		91
Expected return on plan assets	(57)		(55)		(114)		(111)
Settlement costs	49		0		49		0
Amortization of prior service cost	1		1		2		2
Amortization of net loss	15	[3]	16	[3]	30	[3]	33	[3]
Expense under accounting standards	88		46		127		92
Regulatory adjustment (deferred)	(31)		27		(14)		54
Total expense recognized	57		73		113		146
Net loss reclassified	4				7
Southern California Edison | Postretirement Benefits Other Than Pensions
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	14		12		27		24
Interest cost	26		28		52		56
Expected return on plan assets	(30)		(27)		(60)		(54)
Special termination benefits	10	[1]	0	[1]	10	[1]	0	[1]
Amortization of prior service cost	(9)		(9)		(18)		(18)
Amortization of net loss	7	[2]	11	[2]	14	[2]	22	[2]
Expense under accounting standards	18		15		25		30
Net loss reclassified	0				0
Southern California Edison | Pension Plans
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	37		37		74		74
Interest cost	41		45		82		90
Expected return on plan assets	(57)		(55)		(114)		(110)
Settlement costs	48		0		48		0
Amortization of prior service cost	1		1		2		2
Amortization of net loss	14	[3]	15	[3]	28	[3]	30	[3]
Expense under accounting standards	84		43		120		86
Regulatory adjustment (deferred)	(31)		27		(14)		54
Total expense recognized	53		70		106		140
Net loss reclassified	3				5
Maximum | Postretirement Benefits Other Than Pensions
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Net loss reclassified	$ 1				$ 1

[1] Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.

[2] Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was less than $1 million and zero for the three- and six-months ended June 30, 2013, respectively.

[3] Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $4 million and $3 million for the three months ended June 30, 2013, respectively, and $7 million and $5 million for the six months ended June 30, 2013, respectively.

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Derivative Instruments (Balance Sheet Disclosures) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013		Dec. 31, 2012
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	$ 91		$ 129
Long-Term, Derivative Assets	73		85
Short-Term, Derivative Liabilities	140		126
Long-Term, Derivative Liabilities	1,027		939
Southern California Edison
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	91		129
Long-Term, Derivative Assets	73		85
Short-Term, Derivative Liabilities	140		126
Long-Term, Derivative Liabilities	1,027		939
Southern California Edison | Commodity Contracts | Electric Utility
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	91		129
Long-Term, Derivative Assets	73		85
Derivative Assets, Total	164		214
Short-Term, Derivative Liabilities	140		126
Long-Term, Derivative Liabilities	1,027		939
Derivative Liabilities, Total	1,167		1,065
Net Asset (Liability)	1,003		851
Southern California Edison | Commodity Contracts | Electric Utility | Economic hedges
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	106		151
Long-Term, Derivative Assets	74		91
Derivative Assets, Total	180		242
Short-Term, Derivative Liabilities	170		186
Long-Term, Derivative Liabilities	1,035		954
Derivative Liabilities, Total	1,205		1,140
Net Asset (Liability)	1,025		898
Southern California Edison | Commodity Contracts | Electric Utility | Netting and Collateral
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	(15)		(22)
Long-Term, Derivative Assets	(1)		(6)
Derivative Assets, Total	(16)		(28)
Short-Term, Derivative Liabilities	(15)		(22)
Long-Term, Derivative Liabilities	(1)		(6)
Derivative Liabilities, Total	(16)		(28)
Net Asset (Liability)	0		0
Southern California Edison | Commodity Contracts | Electric Utility | Cash Collateral Posted
Fair Value of Derivative Instruments
Short-Term, Derivative Assets	0	[1]	0	[1]
Long-Term, Derivative Assets	0	[1]	0	[1]
Derivative Assets, Total	0	[1]	0	[1]
Short-Term, Derivative Liabilities	(15)	[1]	(38)	[1]
Long-Term, Derivative Liabilities	(7)	[1]	(9)	[1]
Derivative Liabilities, Total	(22)	[1]	(47)	[1]
Net Asset (Liability)	$ (22)	[1]	$ (47)	[1]

[1] In addition, SCE has posted $8 million of collateral that is not offset against the derivative liabilities and is reflected in "Other current assets" on both the June 30, 2013 and December 31, 2012 consolidated balance sheets.

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Fair Value Measurements (Fair Value by Level) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013		Mar. 31, 2013	Dec. 31, 2012		Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Assets at Fair Value
Money market funds	$ 72			$ 107
Nuclear decommissioning trusts	4,181			4,048
Liabilities at Fair Value
Receivables (payables) net related to investments	(148)			(1)
Level 3
Assets at Fair Value
Total assets	162			221
Liabilities at Fair Value
Total liabilities	1,129			1,012
Fair Value, Measurements, Recurring | Level 1
Assets at Fair Value
Money market funds	10
Southern California Edison
Assets at Fair Value
Money market funds	10			5
Nuclear decommissioning trusts	4,181		4,246	4,048		3,810	3,853	3,592
Liabilities at Fair Value
Percentage of equity investments located in the United States (as a percent)	70.00%					66.00%
Collateralized mortgage obligations and other asset backed securities	58					56
Receivables (payables) net related to investments	(148)					(1)
Southern California Edison | Fair Value, Measurements, Recurring | Level 1
Assets at Fair Value
Money market funds				5
Alternative Investments, Fair Value Disclosure	28
Derivative contracts	0			0
Long-term disability plan	8			8
Nuclear decommissioning trusts	3,134			2,869
Total assets	3,180			2,882
Liabilities at Fair Value
Derivative contracts	0			0
Total liabilities	0			0
Net assets (liabilities)	3,180			2,882
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Congestion Revenue Rights
Assets at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Electricity
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Natural Gas
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Tolling
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks
Assets at Fair Value
Nuclear decommissioning trusts	2,085	[1]		2,271	[1]
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | U.S. government and agency securities
Assets at Fair Value
Nuclear decommissioning trusts	881			477
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Municipal bonds
Assets at Fair Value
Nuclear decommissioning trusts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Corporate bonds
Assets at Fair Value
Nuclear decommissioning trusts	0	[2]		0	[2]
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents
Assets at Fair Value
Nuclear decommissioning trusts	168	[3]		121	[3]
Southern California Edison | Fair Value, Measurements, Recurring | Level 2
Assets at Fair Value
Money market funds	0			0
Alternative Investments, Fair Value Disclosure	0
Derivative contracts	13			8
Long-term disability plan	0			0
Nuclear decommissioning trusts	1,195			1,180
Total assets	1,208			1,188
Liabilities at Fair Value
Derivative contracts	70			115
Total liabilities	70			115
Net assets (liabilities)	1,138			1,073
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Congestion Revenue Rights
Assets at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Electricity
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	2			2
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Natural Gas
Assets at Fair Value
Derivative contracts	13			8
Liabilities at Fair Value
Derivative contracts	68			113
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Tolling
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Stocks
Assets at Fair Value
Nuclear decommissioning trusts	0	[1]		0	[1]
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | U.S. government and agency securities
Assets at Fair Value
Nuclear decommissioning trusts	144			126
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Municipal bonds
Assets at Fair Value
Nuclear decommissioning trusts	592			644
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Corporate bonds
Assets at Fair Value
Nuclear decommissioning trusts	347	[2]		410	[2]
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents
Assets at Fair Value
Nuclear decommissioning trusts	112	[3]		0	[3]
Southern California Edison | Fair Value, Measurements, Recurring | Level 3
Assets at Fair Value
Money market funds	0			0
Alternative Investments, Fair Value Disclosure	0
Derivative contracts	162			221
Long-term disability plan	0			0
Nuclear decommissioning trusts	0			0
Total assets	162			221
Liabilities at Fair Value
Derivative contracts	1,129			1,012
Total liabilities	1,129			1,012
Net assets (liabilities)	(967)			(791)
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Congestion Revenue Rights
Assets at Fair Value
Derivative contracts	137			186
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Electricity
Assets at Fair Value
Derivative contracts	17			31
Liabilities at Fair Value
Derivative contracts	6			5
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Natural Gas
Assets at Fair Value
Derivative contracts	0			0
Liabilities at Fair Value
Derivative contracts	0			2
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Tolling
Assets at Fair Value
Derivative contracts	8			4
Liabilities at Fair Value
Derivative contracts	1,123			1,005
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks
Assets at Fair Value
Nuclear decommissioning trusts	0	[1]		0	[1]
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | U.S. government and agency securities
Assets at Fair Value
Nuclear decommissioning trusts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Municipal bonds
Assets at Fair Value
Nuclear decommissioning trusts	0			0
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Corporate bonds
Assets at Fair Value
Nuclear decommissioning trusts	0	[2]		0	[2]
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents
Assets at Fair Value
Nuclear decommissioning trusts	0	[3]		0	[3]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral
Assets at Fair Value
Money market funds	0	[4]		0	[4]
Alternative Investments, Fair Value Disclosure	0
Derivative contracts	(11)	[4]		(15)	[4]
Long-term disability plan	0	[4]		0	[4]
Nuclear decommissioning trusts	0	[4]		0	[4]
Total assets	(11)	[4]		(15)	[4]
Liabilities at Fair Value
Derivative contracts	(32)	[4]		(62)	[4]
Total liabilities	(32)	[4]		(62)	[4]
Net assets (liabilities)	21	[4]		47	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Congestion Revenue Rights
Assets at Fair Value
Derivative contracts	0	[4]		0	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Electricity
Assets at Fair Value
Derivative contracts	(10)	[4]		(13)	[4]
Liabilities at Fair Value
Derivative contracts	(1)	[4]		(2)	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Natural Gas
Assets at Fair Value
Derivative contracts	(1)	[4]		(2)	[4]
Liabilities at Fair Value
Derivative contracts	(31)	[4]		(60)	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Tolling
Assets at Fair Value
Derivative contracts	0	[4]		0	[4]
Liabilities at Fair Value
Derivative contracts	0	[4]		0	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Stocks
Assets at Fair Value
Nuclear decommissioning trusts	0	[1],[4]		0	[1],[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | U.S. government and agency securities
Assets at Fair Value
Nuclear decommissioning trusts	0	[4]		0	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Municipal bonds
Assets at Fair Value
Nuclear decommissioning trusts	0	[4]		0	[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Corporate bonds
Assets at Fair Value
Nuclear decommissioning trusts	0	[2],[4]		0	[2],[4]
Southern California Edison | Fair Value, Measurements, Recurring | Netting and Collateral | Short-term investments, primarily cash equivalents
Assets at Fair Value
Nuclear decommissioning trusts	0	[3],[4]		0	[3],[4]
Southern California Edison | Fair Value, Measurements, Recurring | Total
Assets at Fair Value
Money market funds	10			5
Alternative Investments, Fair Value Disclosure	28
Derivative contracts	164			214
Long-term disability plan	8			8
Nuclear decommissioning trusts	4,329			4,049
Total assets	4,539			4,276
Liabilities at Fair Value
Derivative contracts	1,167			1,065
Total liabilities	1,167			1,065
Net assets (liabilities)	3,372			3,211
Southern California Edison | Fair Value, Measurements, Recurring | Total | Congestion Revenue Rights
Assets at Fair Value
Derivative contracts	137			186
Southern California Edison | Fair Value, Measurements, Recurring | Total | Electricity
Assets at Fair Value
Derivative contracts	7			18
Liabilities at Fair Value
Derivative contracts	7			5
Southern California Edison | Fair Value, Measurements, Recurring | Total | Natural Gas
Assets at Fair Value
Derivative contracts	12			6
Liabilities at Fair Value
Derivative contracts	37			55
Southern California Edison | Fair Value, Measurements, Recurring | Total | Tolling
Assets at Fair Value
Derivative contracts	8			4
Liabilities at Fair Value
Derivative contracts	1,123			1,005
Southern California Edison | Fair Value, Measurements, Recurring | Total | Stocks
Assets at Fair Value
Nuclear decommissioning trusts	2,085	[1]		2,271	[1]
Southern California Edison | Fair Value, Measurements, Recurring | Total | U.S. government and agency securities
Assets at Fair Value
Nuclear decommissioning trusts	1,025			603
Southern California Edison | Fair Value, Measurements, Recurring | Total | Municipal bonds
Assets at Fair Value
Nuclear decommissioning trusts	592			644
Southern California Edison | Fair Value, Measurements, Recurring | Total | Corporate bonds
Assets at Fair Value
Nuclear decommissioning trusts	347	[2]		410	[2]
Southern California Edison | Fair Value, Measurements, Recurring | Total | Short-term investments, primarily cash equivalents
Assets at Fair Value
Nuclear decommissioning trusts	$ 280	[3]		$ 121	[3]

[1] Approximately 70% and 66% of SCE's equity investments were located in the United States at June 30, 2013 and December 31, 2012, respectively.

[2] At June 30, 2013 and December 31, 2012, SCE's corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $58 million and $56 million, respectively.

[3] Excludes net payables of $148 million and $1 million at June 30, 2013 and December 31, 2012, respectively, of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

[4] 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.

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net income (loss)	$ (70)	$ 98	$ 227	$ 208
Other comprehensive income (loss), net of tax:
Net loss arising during the period, net of income tax benefit	0	(4)	(2)	(3)
Amortization of net loss included in net income, net of income tax expense	5	3	7	9
Unrealized loss on derivatives qualified as cash flow hedges:
Unrealized holding loss arising during the period, net of income tax expense	0	(28)	0	(3)
Reclassification adjustments included in net income, net of income tax benefit	0	(9)	0	(20)
Other comprehensive income (loss), net of tax	5	(38)	5	(17)
Comprehensive income (loss)	(65)	60	232	191
Less: Comprehensive income attributable to noncontrolling interests	24	24	51	41
Comprehensive income (loss) attributable to Edison International	(89)	36	181	150
Southern California Edison
Net income (loss)	(67)	214	216	414
Other comprehensive income (loss), net of tax:
Net loss arising during the period, net of income tax benefit	0	(4)	(4)	(4)
Amortization of net loss included in net income, net of income tax expense	2	1	3	4
Unrealized loss on derivatives qualified as cash flow hedges:
Other comprehensive income (loss), net of tax	2	(3)	(1)	0
Comprehensive income (loss)	$ (65)	$ 211	$ 215	$ 414

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Effective Tax Rate

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Income (loss) from continuing operations before income taxes	$	(184	)	$	307		$	199		$	593
Provision for income tax at federal statutory rate of 35%	(64		)	107			70			207
Increase (decrease) in income tax from:
State tax, net of federal benefit	(20		)	8			(17		)	14
Property-related	(22		)	(10		)	(64		)	(19		)
Uncertain tax positions	11			—			18			1
Other	(7		)	(5		)	(11		)	(11		)
Total income tax expense (benefit) from continuing operations	$	(102	)	$	100		$	(4	)	$	192
Effective tax rate	*			32.6		%	*			32.4		%
SCE:
Income (loss) from continuing operations before income taxes	$	(166	)	$	322		$	229		$	622
Provision for income tax at federal statutory rate of 35%	(58		)	113			80			218
Increase (decrease) in income tax from:
State tax, net of federal benefit	(23		)	10			(9		)	20
Property-related	(22		)	(10		)	(64		)	(20		)
Uncertain tax positions	11			(1		)	17			—
Other	(7		)	(4		)	(11		)	(10		)
Total income tax expense (benefit) from continuing operations	$	(99	)	$	108		$	13		$	208
Effective tax rate	*			33.5		%	5.7		%	33.4		%

^*  Not meaningful

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred income tax expense.

Property-related items include recognition of income tax benefits from repair deductions for income tax purposes.

Tax Disputes

Edison International's federal income tax returns and its California combined franchise tax returns are currently open for years subsequent to 2002. In addition, specific California refund claims made by Edison International for years 1991 through 2002 are currently under review by the Franchise Tax Board.

Tax Years 2003 – 2006

The IRS examination phase of tax years 2003 through 2006 was completed in the fourth quarter of 2010, which included proposed adjustments for the following two items:

• A proposed adjustment increasing the taxable gain on the 2004 sale of EME's international assets, which if sustained, would result in a federal tax payment of approximately $203 million, including interest and penalties through June 30, 2013 (the IRS has asserted a 40% penalty for understatement of tax liability related to this matter).

• A proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $98 million, including interest through June 30, 2013.

Edison International disagrees with the proposed adjustments and filed a protest with the IRS in the first quarter of 2011. The appeals process to date has not resulted in a change in the proposed adjustment by the IRS on the taxable gain on the 2004 sale of EME's international assets. If a deficiency notice is issued on this item, it would require payment of the tax, interest and any penalties within 90 days of its issuance or a filing of a petition in United States Tax Court.

Tax Years 2007 – 2009

The IRS examination phase of tax years 2007 through 2009 was completed during the first quarter of 2013. Edison International received a Revenue Agent Report from the IRS on February 28, 2013 which included a proposed adjustment to disallow a component of SCE's repair allowance deduction (similar to the 2003 – 2006 tax years). The proposed adjustment to disallow a component of SCE's repair allowance deduction, which if sustained, would result in a federal tax payment of approximately $74 million, including interest through June 30, 2013. Edison International disagrees with the proposed adjustments and filed a protest with the IRS in April 2013.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 148	$ 170
Receivables, less allowances of $66 and $75 for uncollectible accounts at respective dates	815	762
Accrued unbilled revenue	741	550
Inventory	267	340
Prepaid taxes	27	22
Derivative assets	91	129
Margin and collateral deposits	8	8
Regulatory assets	803	572
Other current assets	122	119
Total current assets	3,022	2,672
Nuclear decommissioning trusts	4,181	4,048
Investments in unconsolidated affiliates	2	2
Other investments	194	184
Total investments	4,377	4,234
Utility property, plant and equipment, less accumulated depreciation of $7,578 and $7,424 at respective dates	29,301	30,200
Nonutility property, plant and equipment, less accumulated depreciation of $69 and $123 at respective dates ($63 and $117 for SCE)	75	73
Total property, plant and equipment	29,376	30,273
Derivative assets	73	85
Restricted deposits	4	4
Regulatory assets	7,494	6,422
Other long-term assets	681	704
Total long-term assets	8,252	7,215
Total assets	45,027	44,394
LIABILITIES AND EQUITY
Short-term debt	853	175
Current portion of long-term debt	800	0
Accounts payable	1,288	1,423
Accrued taxes	33	61
Accrued interest	199	176
Customer deposits	199	193
Derivative liabilities	140	126
Regulatory liabilities	493	536
Deferred income taxes	79	64
Other current liabilities	804	990
Total current liabilities	4,888	3,744
Long-term debt	8,830	9,231
Deferred income taxes	6,304	6,127
Deferred investment tax credits	102	104
Customer advances	134	149
Derivative liabilities	1,027	939
Pensions and benefits	2,234	2,614
Asset retirement obligations	3,322	2,782
Regulatory liabilities	4,836	5,214
Other deferred credits and other long-term liabilities	2,242	2,299
Total deferred credits and other liabilities	20,201	20,228
Total liabilities	33,919	33,203
Commitments and contingencies (Note 12)
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) and (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date for SCE)	2,388	2,373
Accumulated other comprehensive loss	(82)	(87)
Retained earnings	7,049	7,146
Total common shareholders' equity	9,355	9,432
Preferred and preference stock of utility	1,753	1,759
Total noncontrolling interests	1,753	1,759
Total equity	11,108	11,191
Total liabilities and equity	45,027	44,394
Southern California Edison
ASSETS
Cash and cash equivalents	49	45
Receivables, less allowances of $66 and $75 for uncollectible accounts at respective dates	768	755
Accrued unbilled revenue	741	550
Inventory	267	340
Prepaid taxes	22	48
Derivative assets	91	129
Regulatory assets	803	572
Other current assets	129	123
Total current assets	2,870	2,562
Nuclear decommissioning trusts	4,181	4,048
Other investments	127	116
Total investments	4,308	4,164
Utility property, plant and equipment, less accumulated depreciation of $7,578 and $7,424 at respective dates	29,301	30,200
Nonutility property, plant and equipment, less accumulated depreciation of $69 and $123 at respective dates ($63 and $117 for SCE)	73	70
Total property, plant and equipment	29,374	30,270
Derivative assets	73	85
Regulatory assets	7,494	6,422
Other long-term assets	531	531
Total long-term assets	8,098	7,038
Total assets	44,650	44,034
LIABILITIES AND EQUITY
Short-term debt	828	175
Current portion of long-term debt	800
Accounts payable	1,264	1,297
Accrued taxes	36	72
Accrued interest	194	172
Customer deposits	199	193
Derivative liabilities	140	126
Regulatory liabilities	493	536
Deferred income taxes	79	81
Other current liabilities	663	861
Total current liabilities	4,696	3,513
Long-term debt	8,427	8,828
Deferred income taxes	6,819	6,669
Deferred investment tax credits	102	104
Customer advances	134	149
Derivative liabilities	1,027	939
Pensions and benefits	1,727	2,245
Asset retirement obligations	3,322	2,782
Regulatory liabilities	4,836	5,214
Other deferred credits and other long-term liabilities	1,928	1,848
Total deferred credits and other liabilities	19,895	19,950
Total liabilities	33,018	32,291
Commitments and contingencies (Note 12)
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) and (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date for SCE)	2,168	2,168
Additional paid-in capital	584	581
Accumulated other comprehensive loss	(30)	(29)
Retained earnings	7,115	7,228
Total common shareholders' equity	9,837	9,948
Preferred and preference stock of utility	1,795	1,795
Total equity	11,632	11,743
Total liabilities and equity	$ 44,650	$ 44,034

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Permanent Retirement of San Onofre (Details) (USD $)	1 Months Ended	3 Months Ended		6 Months Ended				6 Months Ended				1 Months Ended	3 Months Ended	6 Months Ended			6 Months Ended			6 Months Ended
	Apr. 30, 2013 invoices	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Apr. 27, 2013	Dec. 31, 2012	Jun. 30, 2013 San Onofre (nuclear)	Jun. 30, 2013 Southern California Edison	Apr. 27, 2013 Southern California Edison	Dec. 31, 2012 Southern California Edison	Jun. 30, 2013 Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Southern California Edison San Onofre (nuclear) positions	May 31, 2013 Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Mitsubishi Heavy Industries Ltd [Member] San Onofre (nuclear)	Jun. 30, 2013 Replacement Steam Generators Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Supporting Ongoing Activities at the Site Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Employee severance Southern California Edison San Onofre (nuclear)	Jun. 30, 2013 Decommissioning Plan Southern California Edison San Onofre (nuclear) positions
Regulatory Assets [Line Items]
Cumulative amount of revenue collected since January 1, 2012												$ 860,000,000	$ 860,000,000	$ 860,000,000
Cost of service												56,000,000
Decommissioning Nuclear Facilities Net Investment															2,100,000,000
Authorized expenditures by authoritative body												525,000,000	525,000,000	525,000,000
Authorized expenditures by authoritative body, after adjustments for inflation												665,000,000	665,000,000	665,000,000
Jointly Owned Utility Plant, Proportionate Ownership Share												78.21%	78.21%	78.21%
Authorized expenditures by authoritative body, spent to date														602,000,000
Authorized expenditures by authoritative body, market costs incurred														670,000,000
Avoided Nuclear Costs Due To Decision To Retire Plant														138,000,000
Authorized expenditures by authoritative body, Planned Outage Costs														65,000,000
Public Utilities, Incremental Inspection and Repair Costs														115,000,000
Public Utilities, Incremental Inspection and Repair Costs, Payments from Third Party														36,000,000
Amount of assets reclassified to a regulatory asset															1,521,000,000
Regulatory assets		7,494,000,000		7,494,000,000			6,422,000,000		7,494,000,000		6,422,000,000							404,000,000
Asset impairment and other		575,000,000	(1,000,000)	575,000,000	0								575,000,000
Asset impairment net of tax													365,000,000
San Onofre expected number of positions to be eliminated														960						175
Disposal Group, Including Discontinued Operation, Accrued Liabilities																			56,000,000
Increase in regulatory assets												32,000,000
Warranty Period																	20 years
Maximum liability for purchase agreement for damages																138,000,000
Notice of intent to sue, notice time period								90 days
Number of Invoices for Reimbursement	7
Gain Contingency, Invoiced Amount for Reimbursement	149,000,000
Gain Contingency, Invoiced Amount Paid for Reimbursement	45,000,000
Notice Of Claim Amount						$ 352,000,000				$ 276,000,000
Outage Policy Benefit Reduction Percentage				90.00%

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Consolidated Statements of Income (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Operating revenue	$ 3,046	$ 2,653	$ 5,678	$ 5,068
Fuel	81	61	154	138
Purchased power	1,076	822	1,855	1,437
Operation and maintenance	967	951	1,840	1,899
Depreciation, decommissioning and amortization	418	400	832	788
Asset impairment and other	575	(1)	575	0
Asset impairment			575	0
Total operating expenses	3,117	2,233	5,256	4,262
Operating income (loss)	(71)	420	422	806
Interest and other income	34	40	63	73
Interest expense	(133)	(134)	(265)	(260)
Other expenses	(14)	(19)	(21)	(26)
Income (loss) from continuing operations before income taxes	(184)	307	199	593
Income tax expense (benefit)	(102)	100	(4)	192
Income (loss) from continuing operations	(82)	207	203	401
Income (loss) from discontinued operations, net of tax	12	(109)	24	(193)
Net income (loss)	(70)	98	227	208
Dividends on preferred and preference stock of utility	24	23	51	41
Other noncontrolling interests	0	1	0	0
Net income (loss) attributable to common shareholders	(94)	74	176	167
Amounts attributable to common shareholders:
Income (loss) from continuing operations, net of tax	(106)	183	152	360
Income (loss) from discontinued operations, net of tax	12	(109)	24	(193)
Net income (loss) attributable to common shareholders	(94)	74	176	167
Basic earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding (in shares)	326	326	326	326
Continuing operations (in dollars per share)	$ (0.33)	$ 0.56	$ 0.47	$ 1.10
Discontinued operations (in dollars per share)	$ 0.04	$ (0.33)	$ 0.07	$ (0.59)
Total (in dollars per share)	$ (0.29)	$ 0.23	$ 0.54	$ 0.51
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities (in shares)	326	334	329	333
Continuing operations (in dollars per share)	$ (0.33)	$ 0.55	$ 0.47	$ 1.08
Discontinued operations (in dollars per share)	$ 0.04	$ (0.33)	$ 0.07	$ (0.58)
Total (in dollars per share)	$ (0.29)	$ 0.22	$ 0.54	$ 0.50
Dividends declared per common share (in dollars per share)	$ 0.3375	$ 0.325	$ 0.6750	$ 0.65
Southern California Edison
Operating revenue	3,045	2,651	5,674	5,063
Fuel	81	61	154	138
Purchased power	1,076	822	1,855	1,437
Operation and maintenance	879	866	1,665	1,717
Depreciation, decommissioning and amortization	417	399	832	788
Property and other taxes	72	73	151	156
Asset impairment	575	0	575	0
Total operating expenses	3,100	2,221	5,232	4,236
Operating income (loss)	(55)	430	442	827
Interest and other income	30	38	61	70
Interest expense	(127)	(127)	(253)	(249)
Other expenses	(14)	(19)	(21)	(26)
Income (loss) from continuing operations before income taxes	(166)	322	229	622
Income tax expense (benefit)	(99)	108	13	208
Net income (loss)	(67)	214	216	414
Dividends on preferred and preference stock of utility	24	23	51	41
Net income (loss) attributable to common shareholders	(91)	191	165	373
Amounts attributable to common shareholders:
Net income (loss) attributable to common shareholders	$ (91)	$ 191	$ 165	$ 373

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Derivative Instruments (Notional Values) (Details) (Southern California Edison, Electric Utility, Economic hedges)	Jun. 30, 2013 GWh	Dec. 31, 2012 GWh
Electricity options, swaps and forwards (GWh)
Derivatives
Notional volumes of derivative instruments	11,460	15,884
Natural gas options, swaps and forwards (Bcf)
Derivatives
Notional volumes of derivative instruments	38	100
Congestion revenue rights (GWh)
Derivatives
Notional volumes of derivative instruments	124,973	149,774
Tolling arrangements (GWh)
Derivatives
Notional volumes of derivative instruments	99,926	101,485

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value by Level

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

	June 30, 2013
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	10	$	—	$	—		$	—		$	10
Mutual funds	28		—		—			—			28
Derivative contracts:
Congestion Revenue Rights	—		—		137			—			137
Electricity	—		—		17			(10		)	7
Natural gas	—		13		—			(1		)	12
Tolling	—		—		8			—			8
Subtotal of derivative contracts	—		13		162			(11		)	164
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,085		—		—			—			2,085
U.S. government and agency securities	881		144		—			—			1,025
Municipal bonds	—		592		—			—			592
Corporate bonds3	—		347		—			—			347
Short-term investments, primarily cash equivalents4	168		112		—			—			280
Subtotal of nuclear decommissioning trusts	3,134		1,195		—			—			4,329
Total assets	3,180		1,208		162			(11		)	4,539
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		6			(1		)	7
Natural gas	—		68		—			(31		)	37
Tolling	—		—		1,123			—			1,123
Subtotal of derivative contracts	—		70		1,129			(32		)	1,167
Total liabilities	—		70		1,129			(32		)	1,167
Net assets (liabilities)	$	3,180	$	1,138	$	(967	)	$	21		$	3,372

	December 31, 2012
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at Fair Value
Money market funds	$	5	$	—	$	—		$	—		$	5
Derivative contracts:
Congestion Revenue Rights	—		—		186			—			186
Electricity	—		—		31			(13		)	18
Natural gas	—		8		—			(2		)	6
Tolling	—		—		4			—			4
Subtotal of derivative contracts	—		8		221			(15		)	214
Long-term disability plan	8		—		—			—			8
Nuclear decommissioning trusts:
Stocks2	2,271		—		—			—			2,271
Municipal bonds	—		644		—			—			644
U.S. government and agency securities	477		126		—			—			603
Corporate bonds3	—		410		—			—			410
Short-term investments, primarily cash equivalents4	121		—		—			—			121
Subtotal of nuclear decommissioning trusts	2,869		1,180		—			—			4,049
Total assets	2,882		1,188		221			(15		)	4,276
Liabilities at Fair Value
Derivative contracts:
Electricity	—		2		5			(2		)	5
Natural gas	—		113		2			(60		)	55
Tolling	—		—		1,005			—			1,005
Subtotal of derivative contracts	—		115		1,012			(62		)	1,065
Total liabilities	—		115		1,012			(62		)	1,065
Net assets (liabilities)	$	2,882	$	1,073	$	(791	)	$	47		$	3,211

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  Approximately 70% and 66% of SCE's equity investments were located in the United States at June 30, 2013 and December 31, 2012, respectively.

³  At June 30, 2013 and December 31, 2012, SCE's corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $58 million and $56 million, respectively.

⁴  Excludes net payables of $148 million and $1 million at June 30, 2013 and December 31, 2012, respectively, of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities

The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Fair value of net liabilities at beginning of period	$	(882	)	$	(1,097	)	$	(791	)	$	(754	)
Total realized/unrealized gains (losses):
Included in regulatory assets and liabilities1	(76		)	341			(158		)	(23		)
Purchases	20			29			38			50
Settlements	(29		)	(12		)	(56		)	(12		)
Fair value of net liabilities at end of period	$	(967	)	$	(739	)	$	(967	)	$	(739	)
Change during the period in unrealized losses related to assets and liabilities held at the end of the period	$	(43	)	$	335		$	(125	)	$	(8	)

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

Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities

The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:

	Fair Value (in millions)							Significant	Range
June 30, 2013	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	22		$	7		Option model	Volatility of gas prices	23% - 32% (29%)
								Volatility of power prices	28% - 81% (44%)
								Power prices	$45.20 - $55.50 ($49.60)
Forwards	1			5			Discounted cash flow	Power prices	$23.90 - $49.30 ($40.20)
CRRs	137			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Tolling	8			1,123			Option model	Volatility of gas prices	15% - 32% (20%)
								Volatility of power prices	25% - 81% (29%)
								Power prices	$39.70 - $71.20 ($51.90)
Netting	(6		)	(6		)
Total derivative contracts	$	162		$	1,129

	Fair Value (in millions)							Significant	Range
December 31, 2012	Assets			Liabilities			Valuation Technique(s)	Unobservable Input	(Weighted Average)
Electricity:
Options	$	40		$	12		Option model	Volatility of gas prices	25% - 36% (33%)
								Volatility of power prices	29% - 64% (42%)
								Power prices	$41.70 - $59.20 ($47.00)
Forwards	2			4			Discounted cash flow	Power prices	$23.10 - $44.90 ($31.10)
CRRs	186			—			Market simulation model	Load forecast	7,597 MW - 26,612 MW
								Power prices	$(13.90) - $226.75
								Gas prices	$2.95 - $7.78
Gas options	—			2			Option model	Volatility of gas prices	28% - 36% (34%)
Tolling	4			1,005			Option model	Volatility of gas prices	17% - 36% (22%)
								Volatility of power prices	26% - 64% (29%)
								Power prices	$35.00 - $84.10 ($55.40)
Netting	(11		)	(11		)
Total derivative contracts	$	221		$	1,012

Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion

The carrying value and fair value of Edison International and SCE's long-term debt is as follows:

	June 30, 2013				December 31, 2012
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
SCE	$	9,227	$	10,168	$	8,828	$	10,505
Edison International	9,630		10,593		9,231		10,944

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Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

EME Chapter 11 Bankruptcy Filing

EME and certain of its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. On December 16, 2012, Edison International, EME and the Consenting Noteholders entered into a Transaction Support Agreement (the "Support Agreement"), that, subject to further documentation, Bankruptcy Court approval and certain other conditions, provided that:

• Edison International would cease to own EME when EME emerges from bankruptcy pursuant to a plan or reorganization.

• The tax allocation agreements with respect to EME would be extended through the earlier of the effective date of a plan of reorganization or December 31, 2014, and EME would remain bound to perform its obligations under such agreements.

• Edison International and EME would continue to provide ongoing shared services to each other in the ordinary course, consistent with the same terms and conditions on which those services have been provided in the past.

• Upon effectiveness of EME's plan of reorganization, Edison International would assume certain of EME's employee retirement related liabilities.

• Edison International, EME and the Consenting Noteholders who had signed the Support Agreement would exchange releases of claims, and EME and Edison International would cross-indemnify one another against liabilities arising from the conduct of their separate businesses.

The Support Agreement provided that, within 150 days following the Petition Date, EME was to seek authority from the Bankruptcy Court to enter into the Settlement Transaction, which was required to be obtained within 210 days following the Petition Date. EME did not seek such authority within the 150 day period, and the parties did not reach agreement on changes to the Support Agreement which would have altered the original schedule. The failure to meet the Support Agreement's milestones, however, rendered it terminable by Edison International or the Consenting Noteholders any time thereafter.

On July 25, 2013, a requisite majority of the Consenting Noteholders provided Edison International and EME with a notice terminating the Support Agreement, effective August 1, 2013. As a result, the extension of the Tax Allocation Agreement contemplated by the Support Agreement has also terminated, and the Tax Allocation Agreement is now due to expire by its terms on December 31, 2013. Furthermore, claims, which Edison International submitted in the EME bankruptcy on a contingency basis, will not be released, and inasmuch as Edison International will not be entitled to the benefits of the Settlement Transaction, it will remain subject to any claims of EME and potentially its creditors, including claims relating to or arising out of any shared services, the Tax Allocation Agreement, and any other relationships or transactions between the companies. Edison International cannot, at this time, predict whether the parties will reach other agreements or if the termination of the Support Agreement will result in the pursuit of potential disputes among the parties.

Deconsolidation

EME and those subsidiaries in Chapter 11 proceedings retain control of their assets and are authorized to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court. Effective December 17, 2012, Edison International no longer consolidates the earnings and losses of EME or its subsidiaries and has reflected its ownership interest in EME utilizing the cost method of accounting prospectively, under which Edison International's investment in EME is reflected as a single amount on the consolidated balance sheet of Edison International at December 31, 2012. Furthermore, Edison International has recorded a full impairment of the investment.

Edison International will not be affected by changes in EME's future financial results, other than those changes related to certain tax matters. Edison International has evaluated the continuing cash flows with EME and determined that these cash flows generated are indirect and immaterial. Edison International's continuing cash flows will not include any significant revenue-producing and cost-generating activities of EME.

Edison International considers EME to be an abandoned asset under generally accepted accounting principles, and, as a result, the operations of EME prior to December 17, 2012 and for all prior years, are reflected as discontinued operations in the consolidated financial statements. Included in Edison International's consolidated income statement was an income tax benefit of $12 million and $24 million for discontinued operations for the three- and six-months ended June 30, 2013, respectively. Operating revenue and loss before income taxes for discontinued operations were $406 million and $208 million, respectively, for the three months ended June 30, 2012, and $849 million and $383 million, respectively, for the six months ended June 30, 2012.

Contingencies

Edison International Parent has not guaranteed the obligations of EME, however, under the Internal Revenue Code and applicable state statutes, Edison International Parent is jointly liable for qualified retirement plans and federal and specific state tax liabilities. As a result of the deconsolidation and the existence of joint liabilities, Edison International has recorded liabilities of $80 million for qualified retirement plans related to plan participants of EME and $189 million of liabilities related to joint tax liabilities. Under the qualified plan documents and tax allocation agreements, EME is obligated to pay for such liabilities and, accordingly, Edison International has recorded receivables of $235 million from EME net of amounts recorded in accumulated other comprehensive income of $34 million (related to actuarial losses under the qualified retirement plans).

If the Settlement Transaction had been approved and implemented, Edison International Parent would not have been entitled to receive reimbursement of the net receivable of $46 million and would be obligated to assume certain other retirement liabilities as specified in such agreement (estimated at $104 million). Inasmuch as the Settlement Transaction has been terminated, Edison International Parent will seek recovery of such joint liabilities as part of the EME bankruptcy proceeding. The outcome of the EME bankruptcy proceeding is uncertain, as was the disposition of the Support Agreement. Accordingly, management judgment was required to assess the collectability of the receivables recorded and outcome of the bankruptcy proceeding. Management concluded that it is probable that a loss would be incurred and estimated a loss of $150 million. The outcome of the EME bankruptcy could result in losses different than the amounts recorded by Edison International and such amounts could be material.

For a discussion of other contingencies related to EME, see Tax Disputes discussed in Note 7.

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Variable Interest Entities (Details) (Southern California Edison, USD $)	3 Months Ended		6 Months Ended				1 Months Ended						3 Months Ended	6 Months Ended		1 Months Ended		3 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2013 SCE Trust I	Jun. 30, 2012 SCE Trust I	Jun. 30, 2013 SCE Trust I	Jun. 30, 2012 SCE Trust I	Dec. 31, 2012 SCE Trust I	May 31, 2012 SCE Trust I	May 31, 2012 SCE Trust I Trust Securities	Jun. 30, 2013 SCE Trust I Trust Securities	Dec. 31, 2012 SCE Trust I Trust Securities	Jun. 30, 2013 SCE Trust I Series F Preferred Stock	Dec. 31, 2012 SCE Trust I Series F Preferred Stock	May 31, 2012 SCE Trust I Series F Preferred Stock	Jun. 30, 2013 SCE Trust II	Jun. 30, 2013 SCE Trust II	Jan. 31, 2013 SCE Trust II	Jan. 31, 2013 SCE Trust II Trust Securities	Jun. 30, 2013 SCE Trust II Trust Securities	Mar. 31, 2013 SCE Trust II Series G Preferred Stock	Jun. 30, 2013 SCE Trust II Series G Preferred Stock	Jan. 31, 2013 SCE Trust II Series G Preferred Stock	Jun. 30, 2013 Variable Interest Entity, Not Primary Beneficiary SCE Power Purchase Contracts MW	Jun. 30, 2012 Variable Interest Entity, Not Primary Beneficiary SCE Power Purchase Contracts MW	Jun. 30, 2013 Variable Interest Entity, Not Primary Beneficiary SCE Power Purchase Contracts MW	Jun. 30, 2012 Variable Interest Entity, Not Primary Beneficiary SCE Power Purchase Contracts MW
Details of projects or entities
Power generating capacity (in megawatts)																					4,057	2,014	4,057	2,014
Payments to unconsolidated VIEs for power purchase contracts																					$ 99,000,000	$ 57,000,000	$ 197,000,000	$ 134,000,000
Future power generating capacity (in megawatts)																					1,358		1,358
Unconsolidated Trust
Liquidation preference							475,000,000									400,000,000
Security dividend rate, (as a percent)							5.625%									5.10%		5.10%
Liquidation value (in dollars per share)							$ 25					$ 2,500				$ 25		$ 2,500		$ 2,500
Common stock	10,000		10,000		10,000	10,000							10,000	10,000	10,000
Common stock, percentage issued to Southern California Edison						100.00%									100.00%
Preference stock								475,000,000	475,000,000	475,000,000	475,000,000	475,000,000					400,000,000		400,000,000	400,000,000
Dividend income and distributions	$ 6,000,000	$ 3,000,000	$ 13,000,000	$ 3,000,000									$ 5,000,000	$ 9,000,000

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Income Taxes (Textual) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013
IRS Examination
Income Tax Disclosure [Line Items]
Estimated potential future federal tax payment as of the balance sheet date, including interest and penalties, based on a proposed adjustment	$ 203
Penalty for understatement of tax liability (as a percent)	40.00%
Southern California Edison
Income Tax Disclosure [Line Items]
Estimated federal tax payment as a result of the proposed adjustment to adjust repair allowance deduction	74
Southern California Edison | IRS Examination
Income Tax Disclosure [Line Items]
Estimated potential future federal tax payment as of the balance sheet date, including interest and penalties, based on a proposed adjustment	$ 98

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Commitments and Contingencies (Details) (USD $)	1 Months Ended		6 Months Ended	12 Months Ended				6 Months Ended	12 Months Ended		1 Months Ended	6 Months Ended				6 Months Ended
	Jun. 30, 2010	Dec. 31, 2011 Southern California Edison	Jun. 30, 2013 Southern California Edison sites	Dec. 31, 2012 Southern California Edison	Jun. 01, 2013 Southern California Edison	Sep. 15, 2012 Southern California Edison	Jun. 30, 2013 Southern California Edison Environmental Indemnities	Jun. 30, 2013 Edison International sites	Dec. 31, 2007 Malibu Fire Order Instituting Investigation Southern California Edison power_pole	May 31, 2013 Malibu Fire Order Instituting Investigation Southern California Edison	Oct. 31, 2011 Alleged violations of PSD requirements and New Source Performance Standards of the CAA Southern California Edison private_environmental_organization	Jun. 30, 2013 Nuclear Insurance	Jun. 30, 2013 Nuclear Insurance Southern California Edison	Jun. 30, 2013 Nuclear Insurance SCE and other owners of San Onofre and Palo Verde	Jun. 30, 2013 San Onofre (nuclear) Southern California Edison	Jun. 30, 2013 San Onofre and Palo Verde Nuclear Insurance Southern California Edison	May 31, 2013 Pole Safety Studies and Remediation Malibu Fire Order Instituting Investigation Southern California Edison	May 31, 2013 Penalty Paid to State General Fund Malibu Fire Order Instituting Investigation Southern California Edison	Jun. 30, 2013 Nuclear fuel supply commitments Southern California Edison	Dec. 31, 2012 Nuclear fuel supply commitments Southern California Edison
Schedule Of Commitments And Contingencies [Line Items]
Supply commitment																				$ 912,000,000
Accrued liabilities related to cancellation of contracts																			33,000,000
Maximum liability for purchase agreement for damages							60,000,000
Number of failed power poles (in power poles)									3
Proposed settlement amount										37,000,000							17,000,000	20,000,000
Number of plaintiffs (entities)											4
Identified material sites for environmental remediation (in number of sites)								19
Minimum costs to be Identified Site								1,000,000
Minimum liability for environmental remediation for material sites			122,000,000												90,000,000
Immaterial sites for environmental remediation (in number of sites)			39
Immaterial sites, range of liability, minimum			4,000,000
Environmental remediation liability			126,000,000
Regulatory assets related to environmental remediation			122,000,000
Portion of recorded liability recoverable from incentive mechanism			30,000,000
Percentage of environmental remediation costs recoverable through an incentive mechanism (as a percent)			90.00%
Liability incurred at majority of the remaining sites through customer rates			91,000,000
Environmental remediation costs to be recovered (as a percent)			100.00%
Amount that cleanup costs could exceed recorded liability for identified material sites			163,000,000
Amount that cleanup costs could exceed recorded liability for immaterial sites			8,000,000
Maximum expected period for cleanup of identified sites (in years)			30 years
Expected annual environmental remediation costs, low end of range			6,000,000
Expected annual environmental remediation costs, high end of range			33,000,000
Environmental remediation costs			3,000,000	4,000,000
Federal limit on public liability claims from nuclear incident, approximate												12,600,000,000
Private primary insurance purchased														375,000,000
Maximum assessment per each nuclear incident													235,000,000
Maximum yearly assessment per nuclear incident													35,000,000
Loss limit, property damage insurance																500,000,000
Loss limit, property damage insurance, federal minimum requirement																1,100,000,000
Limit on assessment of retrospective premium adjustments, per year, approximate													52,000,000
Insurance coverage for wildfire liabilities Limit					450,000,000	550,000,000
Self insurance retention per wildfire occurrence						10,000,000
Amount of damages, decision by US Court of Federal Claims, spent nuclear fuel litigation	142,000,000
Damages sought		$ 98,000,000

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Summary of Significant Accounting Policies (Cash) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Cash and Cash Equivalents Items [Line Items]
Maximum maturity period of cash equivalent investments (in months)	3 months
Money market funds	$ 72	$ 107
Cash reclassified to accounts payable	160	247
Southern California Edison
Cash and Cash Equivalents Items [Line Items]
Money market funds	10	5
Cash reclassified to accounts payable	$ 158	$ 242

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2013

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(87	)	$	(87	)
Other comprehensive loss before reclassifications	—			(2		)
Amounts reclassified from accumulated other comprehensive loss1	5			7
Net current-period other comprehensive loss	5			5
Balance at end of period	$	(82	)	$	(82	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	6		$	9
Tax expense	1			2
Total reclassification, net of tax	$	5		$	7

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

SCE's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(32	)	$	(29	)
Other comprehensive loss before reclassifications	—			(4		)
Amounts reclassified from accumulated other comprehensive loss1	2			3
Net current-period other comprehensive loss	2			(1		)
Balance at end of period	$	(30	)	$	(30	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	3		$	5
Tax expense	1			2
Total reclassification, net of tax	$	2		$	3

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

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Interest and Other Income and Expenses (Tables)

6 Months Ended

Jun. 30, 2013

Other Income and Expenses [Abstract]

Interest and Other Income and Expenses

Interest and other income and expenses are as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions)	2013		2012		2013		2012
SCE's interest and other income:
Equity allowance for funds used during construction	$	18	$	27	$	39	$	47
Increase in cash surrender value of life insurance policies	7		7		14		14
Interest income	4		2		6		3
Other	1		2		2		6
Total SCE's interest and other income	30		38		61		70
Edison International Parent and Other income	4		2		2		3
Total Edison International interest and other income	$	34	$	40	$	63	$	73
SCE's other expenses:
Civic, political and related activities and donations	$	9	$	10	$	15	$	17
Other	5		9		6		9
Total SCE's other expenses	14		19		21		26
Edison International Parent and Other other expenses	—		—		—		—
Total Edison International other expenses	$	14	$	19	$	21	$	26

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Derivative Instruments

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments

Derivative financial instruments are used to manage exposure to commodity price risk. SCE manages commodity price risk in part by entering into forward commodity transactions, including options, swaps and forwards, tolling arrangements and CRRs. To mitigate credit and default risk SCE enters into master netting agreements or similar agreements whenever possible. These transactions are approved by the CPUC or executed in compliance with CPUC-approved procurement plans. SCE recovers its related hedging costs through the energy resource recovery account ("ERRA"), and as a result, exposure to commodity price and credit and default risks are not expected to impact earnings, but may impact cash flows.

Commodity Price Risk

Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and power purchase agreements. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and power purchase agreements in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements.

Credit and Default Risk

Credit and default risk represents the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments.

Certain power contracts contain master netting agreements or similar agreements, which generally allows counterparties subject to the agreement to set-off amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Certain power contracts contain a provision that requires SCE to maintain an investment grade credit rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to pay the derivative liability or post additional collateral. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $59 million and $6 million as of June 30, 2013 and December 31, 2012, respectively, for which SCE has posted no collateral to its counterparties for the respective periods. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2013, SCE would be required to post collateral in the amount of $6 million, excluding the impact of unpaid closed positions as their settlement is not impacted by the credit-risk-related contingent features.

Fair Value of Derivative Instruments

SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2013
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	106		$	74		$	180		$	170		$	1,035		$	1,205		$	1,025
Gross amounts offset in the consolidated balance sheets	(15		)	(1		)	(16		)	(15		)	(1		)	(16		)	—
Cash collateral posted1	—			—			—			(15		)	(7		)	(22		)	(22		)
Net amounts presented in the consolidated balance sheets	$	91		$	73		$	164		$	140		$	1,027		$	1,167		$	1,003

	December 31, 2012
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	151		$	91		$	242		$	186		$	954		$	1,140		$	898
Gross amounts offset in the consolidated balance sheets	(22		)	(6		)	(28		)	(22		)	(6		)	(28		)	—
Cash collateral posted1	—			—			—			(38		)	(9		)	(47		)	(47		)
Net amounts presented in the consolidated balance sheets	$	129		$	85		$	214		$	126		$	939		$	1,065		$	851

¹  In addition, SCE has posted $8 million of collateral that is not offset against the derivative liabilities and is reflected in "Other current assets" on both the June 30, 2013 and December 31, 2012 consolidated balance sheets.

Income Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchase power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The results of derivative activities and related regulatory offsets are recorded in cash flows from operating activities in the consolidated statements of cash flows.

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Realized losses	$	(7	)	$	(67	)	$	(23	)	$	(122	)
Unrealized gains (losses)	(64		)	423			(118		)	62

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2013	December 31, 2012
Electricity options, swaps and forwards	GWh	11,460	15,884
Natural gas options, swaps and forwards	Bcf	38	100
Congestion revenue rights	GWh	124,973	149,774
Tolling arrangements	GWh	99,926	101,485

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Regulatory Assets and Liabilities (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Regulatory Assets
Regulatory Assets, Current	$ 803	$ 572
Regulatory Asset, Long-term	7,494	6,422
Regulatory Liabilities
Regulatory Liabilities, Current	493	536
Regulatory Liabilities, Long-term	4,836	5,214
Southern California Edison
Regulatory Assets
Regulatory Assets, Current	803	572
Regulatory Asset, Long-term	7,494	6,422
Total Regulatory Assets	8,297	6,994
Regulatory Liabilities
Regulatory Liabilities, Current	493	536
Regulatory Liabilities, Long-term	4,836	5,214
Total Regulatory Liabilities	5,329	5,750
Southern California Edison | Regulatory balancing accounts
Regulatory Assets
Regulatory Assets, Current	709	502
Regulatory Asset, Long-term	78	73
Southern California Edison | Energy derivatives
Regulatory Assets
Regulatory Assets, Current	94	70
Regulatory Asset, Long-term	990	900
Southern California Edison | Other
Regulatory Assets
Regulatory Asset, Long-term	348	360
Regulatory Liabilities
Regulatory Liabilities, Current	50	52
Regulatory Liabilities, Long-term	9	7
Southern California Edison | Deferred income taxes, net
Regulatory Assets
Regulatory Asset, Long-term	2,759	2,663
Southern California Edison | Pensions and other postretirement benefits
Regulatory Assets
Regulatory Asset, Long-term	1,119	1,550
Southern California Edison | Unamortized investments, net
Regulatory Assets
Regulatory Asset, Long-term	363	507
Southern California Edison | San Onofre (nuclear)
Regulatory Assets
Regulatory Asset, Long-term	1,584	0
Southern California Edison | Unamortized loss on reacquired debt
Regulatory Assets
Regulatory Asset, Long-term	218	228
Southern California Edison | Nuclear-related investment, net
Regulatory Assets
Regulatory Asset, Long-term	35	141
Southern California Edison | Regulatory balancing accounts
Regulatory Liabilities
Regulatory Liabilities, Current	443	484
Regulatory Liabilities, Long-term	1,183	1,091
Southern California Edison | Costs of Removal
Regulatory Liabilities
Regulatory Liabilities, Long-term	2,791	2,731
Southern California Edison | Asset Retirement Obligations
Regulatory Liabilities
Regulatory Liabilities, Long-term	$ 853	$ 1,385

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2013
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	106		$	74		$	180		$	170		$	1,035		$	1,205		$	1,025
Gross amounts offset in the consolidated balance sheets	(15		)	(1		)	(16		)	(15		)	(1		)	(16		)	—
Cash collateral posted1	—			—			—			(15		)	(7		)	(22		)	(22		)
Net amounts presented in the consolidated balance sheets	$	91		$	73		$	164		$	140		$	1,027		$	1,167		$	1,003

	December 31, 2012
	Derivative Assets									Derivative Liabilities
(in millions)	Short-Term			Long-Term			Subtotal			Short-Term			Long-Term			Subtotal			Net Liability
Commodity derivative contracts
Gross amounts recognized	$	151		$	91		$	242		$	186		$	954		$	1,140		$	898
Gross amounts offset in the consolidated balance sheets	(22		)	(6		)	(28		)	(22		)	(6		)	(28		)	—
Cash collateral posted1	—			—			—			(38		)	(9		)	(47		)	(47		)
Net amounts presented in the consolidated balance sheets	$	129		$	85		$	214		$	126		$	939		$	1,065		$	851

¹  In addition, SCE has posted $8 million of collateral that is not offset against the derivative liabilities and is reflected in "Other current assets" on both the June 30, 2013 and December 31, 2012 consolidated balance sheets.

Summarization of Economic Hedging Activities

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Realized losses	$	(7	)	$	(67	)	$	(23	)	$	(122	)
Unrealized gains (losses)	(64		)	423			(118		)	62

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2013	December 31, 2012
Electricity options, swaps and forwards	GWh	11,460	15,884
Natural gas options, swaps and forwards	Bcf	38	100
Congestion revenue rights	GWh	124,973	149,774
Tolling arrangements	GWh	99,926	101,485

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Summary of Significant Accounting Policies (Asset Retirement Obligation) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Significant Accounting Policies [Line Items]
Beginning balance	$ 2,782	$ 2,610
Accretion expense	85	161
Revisions	455	12
Liabilities settled	0	(1)
Ending balance	3,322	2,782
San Onofre (nuclear)
Significant Accounting Policies [Line Items]
Revisions	455
Ending balance	$ 2,700

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Permanent Retirement of San Onofre (Notes)

6 Months Ended

Jun. 30, 2013

Retirement of Plant [Abstract]

Permanent Retirement of San Onofre

Permanent Retirement of San Onofre

Tube Leak and Response

Replacement steam generators were installed at San Onofre in 2010 and 2011. In the first quarter of 2012, a water leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube to tube wear. At the time, Unit 2 was off-line for a planned outage when areas of unexpected tube to support structure wear were found. Both Units have remained shut down since early 2012 and have undergone extensive inspections, testing and analysis following discovery of the leak. In October 2012, SCE submitted a restart plan to the Nuclear Regulatory Commission (“NRC”).

Permanent Retirement

On June 6, 2013 SCE decided to permanently retire Units 2 and 3. SCE concluded that despite the NRC's extensive review of SCE's restart plan for Unit 2 since October 2012, there still remained considerable uncertainty about when the review process would be concluded. A ruling by an adjudicatory arm of the NRC, the Atomic Safety and Licensing Board, on May 13, 2013 created further uncertainty regarding when a final decision might be made on restarting Unit 2. Additional administrative processes and appeals could result in delays of more than a year. During this period, the costs of maintaining San Onofre in readiness for restart and to replace the power San Onofre previously provided would have continued to mount.

Given the considerable uncertainty of when or whether SCE would be permitted to restart Unit 2, SCE concluded that it was in the best interest of its customers, shareholders and other stakeholders to permanently retire the Units and focus on planning for the replacement resources which will eventually be required for grid reliability. SCE also concluded that its decision to retire the Units would facilitate more orderly planning for California's energy future without the uncertainty of whether, when or how long San Onofre would continue to operate.

CPUC Review

In October 2012 the CPUC issued an Order Instituting Investigation (“OII”) that consolidated all San Onofre issues in related regulatory proceedings to consider appropriate cost recovery for all San Onofre costs, including among other costs, the cost of the steam generator replacement project, substitute market power costs, capital expenditures, operation and maintenance costs, and seismic study costs. The OII requires that all San Onofre-related costs incurred on and after January 1, 2012 be tracked in a memorandum account and, to the extent collected in rate levels authorized in the 2012 GRC or other proceeding, be subject to refund. The Order also states that the CPUC will determine whether to order the immediate removal, effective as of the date of the OII, of costs and rate base related to San Onofre from SCE's rates. Various other parties have filed testimony in the OII asking for disallowance of some or all of the San Onofre-related costs.

A summary of financial items related to San Onofre and implicated in the OII are as follows:

• Approximately $860 million of SCE's authorized revenue requirement collected since January 1, 2012 (subject to refund) associated with operating and maintenance expenses, and depreciation and return on SCE's investment in Unit 2, Unit 3 and common plant. In June 2013, SCE recorded approximately $56 million in severance costs associated with its decision to retire both Units. Until funding of post June 6, 2013 activities related to the permanent closure of the plant is transitioned from base rates to SCE's nuclear decommissioning trusts set up for that purpose, SCE will continue to record these costs through the San Onofre OII memorandum account, subject to refund.

• At May 31, 2013, SCE's net investment associated with San Onofre was $2.1 billion, including net book value of remaining property, plant and equipment, construction work-in-progress, nuclear fuel inventory and materials and supplies.

• In 2005, the CPUC authorized expenditures of approximately $525 million ($665 million based on SCE's estimate after adjustment for inflation using the Handy-Whitman Index) for SCE's 78.21% share of the costs to purchase and install the four new steam generators in Units 2 and 3 and remove and dispose of their predecessors. SCE has spent $602 million through June 30, 2013 on the steam generator replacement project, not including inspection, testing and repair costs subsequent to the replacement steam generator leak in Unit 3.

• As a result of outages associated with the steam generator inspection and repair, electric power and capacity normally provided by San Onofre were purchased in the market by SCE. These market power costs will be reviewed as part of the CPUC's OII proceeding. Estimated market power costs calculated in accordance with the OII methodology were approximately $670 million as of May 31, 2013, excluding avoided nuclear fuel costs of approximately $138 million which are no longer included as a reduction due to SCE's decision to permanently retire Units 2 and 3. Such amount includes costs of approximately $65 million associated with planned outage periods. SCE believes that such costs should be excluded as they would have been incurred even had the replacement steam generators performed as expected. The CPUC will ultimately determine a final methodology for estimating market power costs as it continues its review of the issues in the OII. Future market power costs are uncertain.

• Through June 30, 2013, SCE's share of incremental inspection and repair costs totaled $115 million for both Units (not including payments made by MHI as described below). SCE recorded its share of payments made to date by MHI ($36 million) as a reduction of incremental inspection and repair costs in 2012.

SCE believes that the actions taken and costs incurred in connection with the San Onofre replacement steam generators, outages and permanent retirement have been prudent. Nevertheless, SCE cannot provide assurance that the CPUC will not disallow costs incurred or order refunds to customers of amounts collected in rates or that SCE will be successful in recovering amounts from third parties. Disallowances of costs and/or refund of amounts received from customers could be material and adversely affect SCE's financial condition, results of operations and cash flows.

Accounting for Early Retirement of San Onofre Units 2 and 3

As a result of the decision to early retire San Onofre Units 2 and 3, generally accepted accounting principles (“GAAP”) require reclassification of the amounts recorded in property, plant and equipment and related tangible operating assets to a regulatory asset to the extent that management concludes it is probable of recovery through future rates. Regulatory assets may also be recorded to the extent management concludes it is probable that direct and indirect costs incurred to retire Units 2 and 3 as of each reporting date are recoverable through future rates. These costs may include, but are not limited to, severance benefits to reduce the workforce at San Onofre to the staffing required to safely store and secure the plant prior to conducting decommissioning activities, losses on termination of purchase contracts, including nuclear fuel, and losses on disposition of excess inventory. GAAP also require recognition of a liability to the extent management concludes it is probable SCE will be required to refund amounts from authorized revenues previously collected from customers (that are subject to refund).

In assessing whether to record regulatory assets as a result of the decision to retire San Onofre Units 2 and 3 early and whether to record liabilities for refunds to customers, SCE considered the interrelationship of recovery of costs and refunds to customers for accounting purposes, as such matters are being considered by the CPUC on a consolidated basis in the San Onofre OII. SCE also considered that it will continue to use certain portions of the plant (such as fuel storage, security facilities and buildings) as part of ongoing activities at the site. SCE additionally reviewed relevant regulatory precedents and statutory provisions regarding the regulatory recovery of early retired assets previously placed in service and related materials, supplies and fuel. Such precedents have generally provided cost recovery of the remaining net investment in early retired assets, absent imprudency. Such precedents vary on whether a full, partial or no rate of return is allowed on the investment in such assets, but generally provide accelerated recovery when less than a full return is authorized. Furthermore, once the Units are removed from rate base, under normal principles of cost of service ratemaking and relevant statutory provisions, SCE should, absent imprudence, recover the costs it incurs to purchase power that might otherwise have been produced by San Onofre. SCE continues to believe that the actions it has taken and the costs it has incurred in connection with the San Onofre replacement steam generators and outages have been prudent.

As a result of such considerations, SCE considered a number of potential outcomes for the matters being considered by the CPUC in the San Onofre OII, none of which are assured, but a number of which in SCE's opinion appeared to be more likely than a number of other outcomes. SCE considered the likelihood of outcomes to determine the amount deemed probable of recovery. These outcomes included a number of variables, including recovery of and return on the components of SCE's net investment, and the potential for refunds to customers for either substitute power or operating costs occurring over different time periods. SCE also included in its consideration of possible outcomes, the requirement under GAAP to discount future cash flows from recovery of assets without a return at its incremental borrowing rate.

As a result of the foregoing assessment, SCE:

• Reclassified $1,521 million of its total investment in San Onofre at May 31, 2013 as described above to a regulatory asset (“San Onofre Regulatory Asset”) based on management's conclusion it is probable, though not certain, that such costs will be recoverable through future rates. Included in the San Onofre Regulatory Asset is approximately $404 million of property, plant and equipment, including construction work in progress, that is expected to support ongoing activities at the site. In addition, to the extent the San Onofre Regulatory Asset includes excess nuclear fuel and material and supplies, SCE will, if possible, sell such excess amounts to third parties and reduce the amount of the regulatory asset by such proceeds.

• Recorded an impairment charge of $575 million ($365 million after tax) in the second quarter of 2013.

As part of the decision to permanently retire the Units at San Onofre, SCE announced workforce reductions of approximately 960 employees and accrued additional severance costs of $56 million (SCE's share). SCE recorded a regulatory asset of $32 million during June for its cost of service, including severance, in excess of authorized revenues, based on its conclusion that it is probable, though not certain, that such costs will be recovered in future rates. The estimate for these costs was previously included in SCE's estimate to decommission the units. After acceptance of the decommissioning plan by the NRC, SCE expects a further workforce reduction of approximately 175 employees.

SCE's judgment that the San Onofre Regulatory Asset recorded at June 30, 2013 is probable, though not certain, of recovery is based on SCE's knowledge of the facts and judgment in applying relevant regulatory principles to the issues under review in the OII proceeding and in accordance with GAAP. Such judgment is subject to considerable uncertainty, and regulatory principles and precedents are not necessarily binding and are capable of interpretation. No decisions have been rendered in the OII proceeding regarding recoverability of costs from future rates or refunds of amounts to customers, and the current proceedings are either in their early phases, or not yet scheduled. The CPUC may or may not agree with SCE, after review of all of the facts and circumstances, and SCE may advocate positions that it believes are supported by relevant precedent and regulatory principles that are more favorable to SCE than the charges it has recorded in accordance with GAAP. The CPUC could also conclude that SCE acted imprudently in connection with the San Onofre replacement steam generators and the outage since January 2012. Thus, there can be no assurance that the OII proceeding will provide for recoveries as estimated by SCE, including the recovery of costs recorded as a regulatory asset, or that the CPUC does not order refunds to customers from amounts that were previously authorized as subject to refund. Accordingly, the amount recorded for the San Onofre Regulatory Asset at June 30, 2013, is subject to change based upon future developments and the application of SCE's judgment to those events.

Third-Party Recovery

The replacement steam generators were designed and supplied by MHI and are warranted for an initial period of 20 years from acceptance. MHI is contractually obligated to repair or replace defective items with dispatch and to pay specified damages for certain repairs. MHI's liability under the purchase agreement is limited to $138 million and excludes consequential damages, defined to include "the cost of replacement power;" however, limitations in the contract are subject to applicable exceptions both in the contract and under law. SCE has advised MHI that it believes one or more of such exceptions apply and MHI's liability is not limited to $138 million, and MHI has advised SCE that it disagrees. On July 18, 2013, SCE, on behalf of itself and in its capacity as operating agent of San Onofre, provided MHI with a formal notice of dispute, notifying MHI that it intends to initiate claims against MHI for damages resulting from its supplying the faulty replacement steam generators. In the notice of dispute, SCE alleges that MHI totally and fundamentally failed to deliver what it promised, and that the contractual limitations of liability are subject to applicable exceptions both in the contract and under law. Pursuant to the purchase contract under which the replacement steam generators were supplied, service of the notice of dispute commences a 90-day period for SCE and MHI to resolve differences. If MHI and SCE are unable to resolve their differences regarding liability for the damages caused by MHI's design, manufacture and delivery of the faulty steam generators, then SCE expects to initiate binding arbitration under the auspices of the International Chamber of Commerce in accordance with the purchase contract. After SCE delivered the formal notice of dispute to MHI, each of the other co-owners filed lawsuits against MHI in San Diego County Superior Court, alleging claims arising from MHI's supplying the faulty steam generators.

SCE, on behalf of itself and the other San Onofre co-owners, has submitted seven invoices to MHI totaling $149 million for steam generator repair costs incurred through April 30, 2013. MHI paid the first invoice of $45 million, while reserving its right to challenge any of the charges in the invoice. In January 2013, MHI advised SCE that it rejected a portion of the first invoice and required further documentation regarding the remainder of the invoice. SCE has recorded its share of the invoice paid as a reduction of repair and inspection costs.

San Onofre carries both property damage and outage insurance issued by Nuclear Electric Insurance Limited (“NEIL”) and has placed NEIL on notice of claims under the two policies. The NEIL policies have a number of exclusions and limitations that may reduce or eliminate coverage. As of the date of this report, SCE has filed separate proofs of loss for Unit 2 and Unit 3 under the outage policy covering the period of the outage through April 27, 2013 that total $352 million (SCE's share of which is approximately $276 million). Pursuant to these proofs of loss, SCE is seeking the weekly indemnity amounts provided under the outage policy for each Unit. Outage policy benefits are reduced by 90% for the periods following announcement of the permanent shutdown of the Units. SCE has not submitted a proof of loss under the property damage policy. No amounts have been recognized in SCE's financial statements, pending NEIL's response. NEIL has advised SCE that it does not expect to make any determinations of coverage until late in the fourth quarter of this year or possibly next year.

Continuing NRC Proceedings

As part of the NRC's review of the San Onofre outage and proceedings related to the possible restart of Unit 2, the NRC appointed an Augmented Inspection Team to review SCE's performance. The Augmented Inspection Team has not completed its work, and could determine that SCE's performance in connection with the San Onofre replacement steam generators and the outage was deficient. The NRC's Office of Investigations has been conducting an investigation into the accuracy and completeness of information SCE provided to the Augmented Inspection Team. SCE has also been made aware of an investigation related to San Onofre by the NRC's Office of Inspector General, which generally reviews internal NRC affairs. Certain anti-nuclear groups and individual members of Congress have alleged that SCE knew of deficiencies in the steam generators when they were installed or otherwise did not correctly follow NRC requirements in connection with the design and installation of the replacement steam generators, something which SCE has vigorously denied, and have called for investigations, including by the Department of Justice. SCE cannot predict when or whether ongoing inquiries or investigations by the NRC will be completed or whether inquiries by other government agencies will be initiated. Should the NRC find a deficiency in SCE's performance or provision of information, SCE could be subject to additional NRC actions, including the imposition of penalties, and the findings could be taken into consideration in the CPUC regulatory proceedings described above.

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Debt and Credit Agreements

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt and Credit Agreements

Debt and Credit Agreements

Long-Term Debt

In March 2013, SCE issued $400 million of 3.90% first and refunding mortgage bonds due in 2043. The proceeds from these bonds were used to repay commercial paper borrowings and to fund SCE's capital program.

Credit Agreements and Short-Term Debt

At June 30, 2013, SCE's outstanding commercial paper was $828 million at a weighted-average interest rate of 0.27%. This commercial paper was supported by a $2.75 billion multi-year revolving credit facility. At June 30, 2013, letters of credit issued under SCE's credit facility aggregated $96 million and are scheduled to expire in twelve months or less. At December 31, 2012, the outstanding commercial paper was $175 million at a weighted-average interest rate of 0.37%.

At June 30, 2013, Edison International Parent's outstanding short-term debt was $25 million at a weighted-average interest rate of 1.48%. This short-term debt was supported by a $1.25 billion multi-year revolving credit facility. At December 31, 2012, Edison International had no outstanding short-term debt.

On July 18, 2013, SCE and Edison International Parent amended their credit facilities to extend the maturity dates to July 2018 for $2.6 billion and $1.182 billion, respectively. The remaining $150 million and $68 million of the SCE and Edison International Parent credit facilities, respectively, will mature in May 2017.

XML

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ 227	$ 208
Less: Income (loss) from discontinued operations, net of tax	24	(193)
Income from continuing operations	203	401
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization	832	788
Regulatory impacts of net nuclear decommissioning trust earnings	161	114
Other amortization and other	33	34
Asset impairment	575	0
Stock-based compensation	12	16
Deferred income taxes and investment tax credits	85	11
Proceeds from U.S. treasury grants	0	29
Changes in operating assets and liabilities:
Receivables	(47)	10
Inventory	73	15
Margin and collateral deposits, net of collateral received	(67)	(3)
Prepaid taxes	(5)	98
Other current assets	(190)	(204)
Accounts payable	88	27
Accrued taxes	(33)	(15)
Other current liabilities	(98)	(83)
Derivative assets and liabilities, net	152	(79)
Regulatory assets and liabilities, net	(11)	252
Other assets	(27)	(19)
Other liabilities	(475)	122
Operating cash flows from continuing operations	1,261	1,514
Operating cash flows from discontinued operations, net	0	(354)
Net cash provided by operating activities	1,261	1,160
Cash flows from financing activities:
Long-term debt issued	398	395
Long-term debt issuance costs	(4)	(4)
Long-term debt repaid	(3)	(3)
Bonds remarketed, net	195	0
Bonds purchased	(196)	0
Preference stock issued, net	387	805
Preference stock redeemed	(400)	(75)
Short-term debt financing, net	678	(121)
Settlements of stock-based compensation, net	(37)	(30)
Dividends to noncontrolling interests	(52)	(29)
Dividends paid	(220)	(212)
Financing cash flows from continuing operations	746	726
Financing cash flows from discontinued operations, net	0	300
Net cash provided by financing activities	746	1,026
Cash flows from investing activities:
Capital expenditures	(1,834)	(2,125)
Proceeds from sale of nuclear decommissioning trust investments	1,956	1,097
Purchases of nuclear decommissioning trust investments and other	(2,128)	(1,222)
Customer advances for construction and other investments	(23)	7
Investing cash flows from continuing operations	(2,029)	(2,243)
Investing cash flows from discontinued operations, net	0	(237)
Net cash used by investing activities	(2,029)	(2,480)
Net (decrease) increase in cash and cash equivalents	(22)	(294)
Cash and cash equivalents at beginning of period	170	1,469
Cash and cash equivalents at end of period	148	1,175
Cash and cash equivalents from discontinued operations	0	1,009
Cash and cash equivalents from continuing operations	148	166
Southern California Edison
Cash flows from operating activities:
Net income (loss)	216	414
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization	832	788
Regulatory impacts of net nuclear decommissioning trust earnings	161	114
Other amortization	35	37
Asset impairment	575	0
Stock-based compensation	7	8
Deferred income taxes and investment tax credits	50	250
Proceeds from U.S. treasury grants	0	29
Changes in operating assets and liabilities:
Receivables	(12)	11
Inventory	73	15
Margin and collateral deposits, net of collateral received	(67)	(3)
Prepaid taxes	26	3
Other current assets	(192)	(203)
Accounts payable	96	28
Accrued taxes	(36)	(14)
Other current liabilities	(102)	(79)
Derivative assets and liabilities, net	152	(72)
Regulatory assets and liabilities, net	(11)	245
Other assets	(12)	(21)
Other liabilities	(466)	(39)
Net cash provided by operating activities	1,325	1,511
Cash flows from financing activities:
Long-term debt issued	398	395
Long-term debt issuance costs	(4)	(4)
Long-term debt repaid	(3)	(3)
Bonds remarketed, net	195	0
Bonds purchased	(196)	0
Preference stock issued, net	387	805
Preference stock redeemed	(400)	(75)
Short-term debt financing, net	653	(125)
Settlements of stock-based compensation, net	(34)	(20)
Dividends paid	(292)	(261)
Net cash provided by financing activities	704	712
Cash flows from investing activities:
Capital expenditures	(1,834)	(2,125)
Proceeds from sale of nuclear decommissioning trust investments	1,956	1,097
Purchases of nuclear decommissioning trust investments and other	(2,128)	(1,222)
Customer advances for construction and other investments	(19)	11
Net cash used by investing activities	(2,025)	(2,239)
Net (decrease) increase in cash and cash equivalents	4	(16)
Cash and cash equivalents at beginning of period	45	57
Cash and cash equivalents at end of period	$ 49	$ 41

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Derivative Instruments (Additional Disclosures) (Details) (Southern California Edison, USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Electric Utility | Economic hedges
Derivatives
Realized gains (losses)	$ (7)	$ (67)	$ (23)	$ (122)
Unrealized gains (losses)	(64)	423	(118)	62
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features	59		59		6
Collateral already posted	0		0		0
Additional collateral, aggregate fair value	6		6
Other current assets | Power Purchase Agreement
Derivatives
Collateral already posted	$ 8		$ 8

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Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) (Level 3, USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	$ 162	$ 221
Fair Value, Liabilities	1,129	1,012
Electricity Options | Option Model
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	22	40
Fair Value, Liabilities	7	12
Electricity Options | Option Model | Power Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	28.00%	29.00%
Expected prices (in dollars per unit)	45.20	41.70
Electricity Options | Option Model | Power Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	81.00%	64.00%
Expected prices (in dollars per unit)	55.50	59.20
Electricity Options | Option Model | Power Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	44.00%	42.00%
Expected prices (in dollars per unit)	49.60	47.00
Electricity Options | Option Model | Gas Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	23.00%	25.00%
Electricity Options | Option Model | Gas Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	32.00%	36.00%
Electricity Options | Option Model | Gas Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	29.00%	33.00%
Electricity Forwards | Discounted Cash Flow
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	1	2
Fair Value, Liabilities	5	4
Electricity Forwards | Discounted Cash Flow | Power Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	23.90	23.10
Electricity Forwards | Discounted Cash Flow | Power Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	49.30	44.90
Electricity Forwards | Discounted Cash Flow | Power Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	40.20	31.10
Congestion Revenue Rights | Market Simulation Model
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	137	186
Fair Value, Liabilities	0	0
Congestion Revenue Rights | Market Simulation Model | Load Forecast | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Fair value inputs, power units (in megawatts)	7,597	7,597
Congestion Revenue Rights | Market Simulation Model | Load Forecast | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Fair value inputs, power units (in megawatts)	26,612	26,612
Congestion Revenue Rights | Market Simulation Model | Gas Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	2.95	2.95
Congestion Revenue Rights | Market Simulation Model | Gas Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	7.78	7.78
Congestion Revenue Rights | Market Simulation Model | Congestion Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	(13.90)	(13.90)
Congestion Revenue Rights | Market Simulation Model | Congestion Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected prices (in dollars per unit)	226.75	226.75
Gas Options | Option Model
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets		0
Fair Value, Liabilities		2
Gas Options | Option Model | Gas Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)		28.00%
Gas Options | Option Model | Gas Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)		36.00%
Gas Options | Option Model | Gas Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)		34.00%
Tolling | Option Model
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	8	4
Fair Value, Liabilities	1,123	1,005
Tolling | Option Model | Power Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	25.00%	26.00%
Expected prices (in dollars per unit)	39.70	35.00
Tolling | Option Model | Power Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	81.00%	64.00%
Expected prices (in dollars per unit)	71.20	84.10
Tolling | Option Model | Power Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	29.00%	29.00%
Expected prices (in dollars per unit)	51.90	55.40
Tolling | Option Model | Gas Prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	15.00%	17.00%
Tolling | Option Model | Gas Prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	32.00%	36.00%
Tolling | Option Model | Gas Prices | Weighted Average
Quantitative Information About Level 3 Measurements [Line Items]
Expected volatility rate (as a percent)	20.00%	22.00%
Netting
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets	(6)	(11)
Fair Value, Liabilities	$ (6)	$ (11)

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Other Investments (Tables)

6 Months Ended

Jun. 30, 2013

Regulated Entity, Other Assets, Noncurrent [Abstract]

Amortized Cost and Fair Value of the Trust Investments

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

	Longest Maturity Dates	Amortized Cost						Fair Value
(in millions)		June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012
Stocks	—	$	728		$	978		$	2,085		$	2,271
Municipal bonds	2051	504			518			592			644
U.S. government and agency securities	2043	975			547			1,025			603
Corporate bonds	2054	293			324			347			410
Short-term investments, primarily cash equivalents	One-year	274			117			280			121
Total investments		2,774			2,484			4,329			4,049
Net payables		(148		)	(1		)	(148		)	(1		)
Total nuclear decommissioning trusts		$	2,626		$	2,483		$	4,181		$	4,048

Summary of Changes in the Fair Value of Trust

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Balance at beginning of period	$	4,246		$	3,853		$	4,048		$	3,592
Gross realized gains	137			15			142			40
Gross realized losses	(1		)	(1		)	(2		)	(5		)
Unrealized gains (losses), net	(185		)	(67		)	(9		)	116
Other-than-temporary impairments	(21		)	(19		)	(29		)	(23		)
Interest, dividends, contributions and other	5			29			31			90
Balance at end of period	$	4,181		$	3,810		$	4,181		$	3,810

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Preferred and Preference Stock of Utility (Details) (SCE Trust II, Southern California Edison, Series G Preferred Stock, USD $)	3 Months Ended
	Mar. 31, 2013	Jan. 31, 2013
SCE Trust II | Southern California Edison | Series G Preferred Stock
Preferred and Preference Stock of Utility
Shares issued (in shares)	160,004
Preference stock dividend rate (percent)	5.10%
Liquidation value (in dollars per share)	$ 2,500	$ 2,500

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Other Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) (USD $) In Millions, unless otherwise specified									6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Southern California Edison	Mar. 31, 2013 Southern California Edison	Dec. 31, 2012 Southern California Edison	Jun. 30, 2012 Southern California Edison	Mar. 31, 2012 Southern California Edison	Dec. 31, 2011 Southern California Edison	Jun. 30, 2013 Southern California Edison Stocks	Dec. 31, 2012 Southern California Edison Stocks	Jun. 30, 2013 Southern California Edison Municipal bonds	Dec. 31, 2012 Southern California Edison Municipal bonds	Jun. 30, 2013 Southern California Edison U.S. government and agency securities	Dec. 31, 2012 Southern California Edison U.S. government and agency securities	Jun. 30, 2013 Southern California Edison Corporate bonds	Dec. 31, 2012 Southern California Edison Corporate bonds	Jun. 30, 2013 Southern California Edison Short-term investments and receivables/payables	Dec. 31, 2012 Southern California Edison Short-term investments and receivables/payables
Nuclear Decommissioning Trusts Disclosures
Longest Maturity Dates (in years)									0		2051		2043		2054		One-year
Total Investments, Amortized Cost			$ 2,774		$ 2,484				$ 728	$ 978	$ 504	$ 518	$ 975	$ 547	$ 293	$ 324	$ 274	$ 117
Total Investments, Fair Value			4,329		4,049				2,085	2,271	592	644	1,025	603	347	410	280	121
Net payables	(148)	(1)	(148)			(1)
Total Nuclear Decommissioning Trusts, Amortized Cost			2,626		2,483
Total Nuclear Decommissioning Trusts, Fair Value	$ 4,181	$ 4,048	$ 4,181	$ 4,246	$ 4,048	$ 3,810	$ 3,853	$ 3,592

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Third-Party Power Purchase Agreements

During the six months ended June 30, 2013, SCE had new power purchase contracts classified as operating leases. The additional commitments are estimated to be: $197 million for 2014, $198 million in 2015, $202 million in 2016, $264 million in 2017 and $1.8 billion for the period remaining thereafter.

Other Commitments

As of December 31, 2012, SCE had nuclear fuel supply commitments of $912 million for the 2013 – 2017 period and thereafter. As a result of the decision to permanently retire San Onofre Units 2 and 3, SCE has submitted fuel contract delivery cancellation notices for these contractual arrangements. As of June 30, 2013, SCE accrued a liability of $33 million related to estimated costs associated with the cancellation and management of future deliveries of nuclear fuel and recorded a regulatory asset for recovery of costs in the future. See Note 9 for further discussion of SCE's decision to permanently retire San Onofre.

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. The contracts discussed below included performance guarantees.

Indemnity Provided as Part of the Acquisition of Mountainview

In connection with the acquisition of the Mountainview power plant, SCE agreed to indemnify the seller with respect to specific environmental claims related to SCE's previously owned San Bernardino Generating Station, divested by SCE in 1998 and reacquired in 2004 as part of the Mountainview acquisition. SCE retained certain responsibilities with respect to environmental claims as part of the original divestiture of the station. The aggregate liability for either party to the purchase agreement for damages and other amounts is a maximum of $60 million. This indemnification for environmental liabilities expires on or before March 12, 2033. SCE has not recorded a liability related to this indemnity.

Mountainview Filter Cake Indemnity

SCE has indemnified the City of Redlands, California in connection with Mountainview's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity.

Other Indemnities

Edison International and SCE provide other indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its results of operations or liquidity.

San Onofre

SCE believes that the actions taken and costs incurred in connection with the San Onofre replacement steam generators and outages have been prudent. Accordingly, SCE considers its operating, capital, and market power costs, recoverable through base rates and the ERRA balancing account, as offset by third-party recoveries where applicable. SCE cannot provide assurance that the CPUC will not disallow costs incurred or order refunds to customers of amounts collected in rates, or that SCE will be successful in recovering amounts from third parties. Disallowances of costs and/or refund of amounts received from customers could be material and adversely affect SCE's financial condition, results of operations and cash flows. SCE will pursue recoveries arising from available agreements, but there is no assurance that SCE will recover all of its applicable costs pursuant to these arrangements. See Note 9 for further details.

EME Chapter 11 Bankruptcy Filing

On the Petition Date, EME and certain of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court (see Note 16 for further details). Under the Support Agreement to which EME, Edison International and certain of EME's senior unsecured noteholders ("Consenting Noteholders") were parties, each of them had agreed to support Bankruptcy Court approval of the Settlement Transaction. EME was required to seek authority from the Bankruptcy Court to enter into the Settlement Transaction by the deadline set out in the Support Agreement and did not do so. EME's failure to meet this deadline rendered the Support Agreement terminable by Edison International or the Consenting Noteholders at any time, and on July 25, 2013, a requisite majority of the Consenting Noteholders provided Edison International and EME with a notice terminating the Support Agreement, effective August 1, 2013. As a result, the extension of the Tax Allocation Agreement contemplated by the Support Agreement has also terminated, and the Tax Allocation Agreement is now due to expire by its terms on December 31, 2013. Furthermore, claims, which Edison International submitted in the EME bankruptcy on a contingency basis, will not be released, and inasmuch as Edison International will not be entitled to the benefits of the Settlement Transaction, it will remain subject to any claims of EME and potentially its creditors, including claims relating to or arising out of any shared services, the Tax Allocation Agreement, and any other relationships or transactions between the companies. Edison International cannot, at this time, predict whether the parties will reach other agreements or if the termination of the Support Agreement will result in the pursuit of potential disputes among the parties.

CPUC Safety and Enforcement Division Investigations

San Gabriel Valley Windstorm Investigation

In November 2011, a windstorm resulted in significant damage to SCE’s electric system and service outages for SCE customers primarily in the San Gabriel Valley. The CPUC directed its Safety and Enforcement Division (“SED”) to conduct an investigation focused on the cause of the outages, SCE’s service restoration effort, and SCE’s customer communications during the outages. The SED issued its final report on January 11, 2013. The report asserts that SCE and others with whom SCE shares utility poles violated certain CPUC safety rules applicable to overhead line construction, maintenance and operation, which may have caused the failures of affected poles and supporting cables. The report also concludes that SCE’s restoration time was not adequate and makes other assertions. Additionally, the report contends that SCE violated CPUC rules by failing to preserve evidence relevant to the investigation when it did not retain damaged poles that were replaced following the windstorm. If the CPUC issues an OII regarding this matter and SCE is found to have violated any CPUC rules, it could face penalties. SCE is unable to estimate a possible loss or range of loss associated with any penalties that may be imposed by the CPUC on SCE.

Malibu Fire Order Instituting Investigation

Following a 2007 wildfire in Malibu, California, the CPUC issued an OII to determine if any statutes, CPUC general orders, rules or regulations were violated by SCE or telecomm providers (“OII Respondents”) that shared the use of three failed power poles in the wildfire area. The SED has alleged, among other things, that the poles were overloaded, that the OII Respondents violated the CPUC's rules governing the design, construction and inspection of poles, and that SCE failed to preserve evidence relevant to the investigation and misled the CPUC during its investigation of the fire. In May 2013, SCE and the SED agreed to the terms of a proposed settlement that would cause SCE to pay a total of $37 million, $17 million of which will be allocated to pole safety studies and remediation in the Malibu area and $20 million of which will be a penalty paid to the State General Fund. The proposed settlement remains subject to CPUC approval.

Four Corners New Source Review Litigation

In October 2011, four private environmental organizations filed a CAA citizen lawsuit against the co-owners of Four Corners. The complaint alleges that certain work performed at the Four Corners generating units 4 and 5, over the approximate periods of 1985 – 1986 and 2007 – 2010, constituted plant “major modifications” and the plant's failure to obtain permits and install best available control technology ("BACT") violated the PSD requirements and the New Source Performance Standards of the CAA. The complaint also alleges subsequent and continuing violations of BACT air emissions limits. The lawsuit seeks injunctive and declaratory relief, civil penalties, including a mitigation project and litigation costs. In November 2012, the parties requested a stay of the litigation to allow for settlement discussion, and the matter is currently stayed to August 2013. In November 2010, SCE entered into an agreement to sell its ownership interest in generating units 4 and 5 to APS. The sale remains contingent upon APS obtaining a long-term fuel supply agreement for the plant. As of January 2013, the sale agreement became terminable by either party, but as of the date of this report, the agreement has not been terminated. The purchase price is subject to certain adjustments under the sale agreement, which includes a reduction in the purchase price of $7.5 million for each month between October 1, 2012 and the closing date. Under the agreement SCE would remain responsible for its pro-rata share of certain environmental liabilities, including penalties arising from environmental violations prior to the sale. SCE is unable to estimate a possible loss or range of loss associated with this matter.

Environmental Remediation

Edison International records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. Edison International reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring and site closure. Unless there is a single probable amount, Edison International records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At June 30, 2013, Edison International's recorded estimated minimum liability to remediate its 19 identified material sites (sites in which the upper end of the range of the costs is at least $1 million) at SCE was $122 million, including $90 million related to San Onofre. In addition to its identified material sites, SCE also has 39 immaterial sites for which the total minimum recorded liability was $4 million. Of the $126 million total environmental remediation liability for SCE, $122 million has been recorded as a regulatory asset. SCE expects to recover $30 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $91 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. Edison International's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that Edison International may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up Edison International's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. Edison International believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $163 million and $8 million, respectively, all of which is related to SCE. The upper limit of this range of costs was estimated using assumptions least favorable to Edison International among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for 2013 and in each of the next four years are expected to range from $6 million to $33 million. Costs incurred for the six months ended June 30, 2013 and 2012 was $3 million and $4 million, respectively.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, Edison International believes that costs ultimately recorded will not materially affect its results of operations, financial position or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

Nuclear Insurance

Federal law limits public liability claims from a nuclear incident to the amount of available financial protection, which is currently approximately $12.6 billion. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available ($375 million). The balance is covered by a loss sharing program among nuclear reactor licensees. If a nuclear incident at any licensed reactor in the United States results in claims and/or costs which exceed the primary insurance at that plant site, all nuclear reactor licensees could be required to contribute their share of the liability in the form of a deferred premium.

Based on its ownership interests, SCE could be required to pay a maximum of approximately $235 million per nuclear incident. However, it would have to pay no more than approximately $35 million per incident in any one year. If the public liability limit above is insufficient, federal law contemplates that additional funds may be appropriated by Congress. This could include an additional assessment on all licensed reactor operators as a measure for raising further federal revenue.

NEIL, a mutual insurance company owned by entities with nuclear facilities, issues primary property damage, decontamination and excess property damage and accidental outage insurance policies. At San Onofre and Palo Verde, property damage insurance covers losses up to $500 million, including decontamination costs. Decontamination liability and excess property damage coverage exceeding the primary $500 million also has been purchased in amounts greater than the federal requirement of a minimum of approximately $1.1 billion. Property damage insurance also covers damages caused by acts of terrorism up to specified limits. Additional outage insurance covers part of replacement power expenses during an accident-related nuclear unit outage.

If losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year. Insurance premiums are charged to operating expense.

Wildfire Insurance

Severe wildfires in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of the failure of electric and other utility equipment. Invoking a California Court of Appeal decision, plaintiffs pursuing these claims have relied on the doctrine of inverse condemnation, which can impose strict liability (including liability for a claimant's attorneys' fees) for property damage. On September 15, 2012, SCE's parent, Edison International, renewed its insurance coverage, which included coverage for SCE's wildfire liabilities up to a $550 million limit (with a self-insured retention of $10 million per wildfire occurrence). As of June 1, 2013, additional coverage for certain wildfire liabilities of $450 million was obtained. Various coverage limitations within the policies that make up the insurance coverage could result in additional self-insured costs in the event of multiple wildfire occurrences during the policy period (September 15, 2012 to August 31, 2013 and June 1, 2013 to May 31, 2014). SCE may experience coverage reductions and/or increased insurance costs in future years. No assurance can be given that future losses will not exceed the limits of SCE's insurance coverage.

Spent Nuclear Fuel

Under federal law, the Department of Energy ("DOE") is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE did not meet its contractual obligation to begin acceptance of spent nuclear fuel by January 31, 1998. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for the current license period.

In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award in November 2011. SCE has returned to the San Onofre co-owners their respective share of the damage award paid. SCE, as operating agent, filed a lawsuit on behalf of the San Onofre owners against the DOE in the Court of Federal Claims in December 2011 seeking damages of approximately $98 million for the period from January 1, 2006 to December 31, 2010 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel. Additional legal action would be necessary to recover damages incurred after December 31, 2010. All damages recovered by SCE are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs.

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Compensation and Benefit Plans

6 Months Ended

Jun. 30, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Compensation and Benefit Plans

Compensation and Benefit Plans

Pension Plans

Edison International made contributions of $104 million during the six months ended June 30, 2013, which includes contributions of $94 million by SCE. Edison International expects to make $86 million during the remainder of 2013, which includes $70 million from SCE. Annual contributions made to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.

Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	38		$	39		$	76		$	77
Interest cost	42			45			84			91
Expected return on plan assets	(57		)	(55		)	(114		)	(111		)
Settlement costs	49			—			49			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	15			16			30			33
Expense under accounting standards	$	88		$	46		$	127		$	92
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	57		$	73		$	113		$	146
SCE:
Service cost	$	37		$	37		$	74		$	74
Interest cost	41			45			82			90
Expected return on plan assets	(57		)	(55		)	(114		)	(110		)
Settlement costs	48			—			48			—
Amortization of prior service cost	1			1			2			2
Amortization of net loss1	14			15			28			30
Expense under accounting standards	$	84		$	43		$	120		$	86
Regulatory adjustment (deferred)	(31		)	27			(14		)	54
Total expense recognized	$	53		$	70		$	106		$	140

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $4 million and $3 million for the three months ended June 30, 2013, respectively, and $7 million and $5 million for the six months ended June 30, 2013, respectively.

Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. As of May 31, 2013, lump-sum payments to employees retiring in 2013 from the SCE Retirement Plan (primary due to workforce reductions described below) exceeded the estimated service and interest costs for the year. A settlement requires remeasurement of both the plan pension obligations and plan assets as of the date of the settlement. The remeasurement of the SCE Retirement Plan as of May 31, 2013 resulted in an actuarial gain of $369 million, including $362 million for SCE. The actuarial gain is primarily due to an increase in the discount rate to 4.25% from 3.75% (due to higher interest rates) and performance of the plan assets from January 1 to May 31, 2013.

After remeasurement, GAAP requires an acceleration of a portion of unrecognized net losses attributable to such lump-sum payments as additional pension expense. The additional pension expense from acceleration of the portion of unrecognized net losses during the second quarter of 2013 was $49 million, including $48 million for SCE. The additional pension expense related to SCE did not impact net income as such amounts are probable of recovery through future rates.

The projected benefit obligations exceeded the fair value of the SCE Retirement Plan assets by $658 million at May 31, 2013 compared to $1.1 billion at December 31, 2012.

Postretirement Benefits Other Than Pensions

Edison International made contributions of $15 million during the six months ended June 30, 2013 and expects to make $20 million during the remainder of 2013, all of which are expected to be made by SCE. Annual contributions made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans. Benefits under these plans, with some exceptions, are generally unvested and subject to change.

Expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2013			2012			2013			2012
Edison International:
Service cost	$	14		$	12		$	28		$	24
Interest cost	26			29			52			57
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			23
Total expense	$	18		$	16		$	26		$	32
SCE:
Service cost	$	14		$	12		$	27		$	24
Interest cost	26			28			52			56
Expected return on plan assets	(30		)	(27		)	(60		)	(54		)
Special termination benefits1	10			—			10			—
Amortization of prior service credit	(9		)	(9		)	(18		)	(18		)
Amortization of net loss2	7			11			14			22
Total expense	$	18		$	15		$	25		$	30

¹  Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage.

²  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was less than $1 million and zero for the three- and six-months ended June 30, 2013, respectively.

Workforce Reductions

In 2012, SCE commenced multiple efforts to reduce its workforce, which were largely completed by the end of the second quarter of 2013, in order to reflect SCE's strategic direction to optimize its cost structure, moderate customer rate increases and align its cost structure with its peers. In addition, in June 2013, SCE announced plans to permanently retire San Onofre. This announcement will result in a further reduction of the San Onofre workforce by approximately 960 employees and support organizations by approximately 175 employees. The majority of such reductions are expected to occur in 2013. See Note 9 for further details. The following table provides a summary of changes in the accrued severance liability associated with these reductions:

(in millions)
Balance at January 1, 2013	$	104
Additions	109
Payments	(88		)
Balance at June 30, 2013	$	125

The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements.

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Interest and Other Income and Expenses (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other income:
Total consolidated interest and other income	$ 34	$ 40	$ 63	$ 73
Other expenses:
Total consolidated other expenses	14	19	21	26
Southern California Edison
Other income:
Equity allowance for funds used during construction	18	27	39	47
Increase in cash surrender value of life insurance policies	7	7	14	14
Interest income	4	2	6	3
Other	1	2	2	6
Total interest and other income	30	38	61	70
Total consolidated interest and other income	30	38	61	70
Other expenses:
Civic, political and related activities and donations	9	10	15	17
Other	5	9	6	9
Total other expenses	14	19	21	26
Total consolidated other expenses	14	19	21	26
Edison International
Other income:
Other income	4	2	2	3
Other expenses:
Other expenses	$ 0	$ 0	$ 0	$ 0

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Interest and Other Income and Expenses

6 Months Ended

Jun. 30, 2013

Other Income and Expenses [Abstract]

Interest and Other Income and Expenses

Interest and Other Income and Other Expenses

Interest and other income and expenses are as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions)	2013		2012		2013		2012
SCE's interest and other income:
Equity allowance for funds used during construction	$	18	$	27	$	39	$	47
Increase in cash surrender value of life insurance policies	7		7		14		14
Interest income	4		2		6		3
Other	1		2		2		6
Total SCE's interest and other income	30		38		61		70
Edison International Parent and Other income	4		2		2		3
Total Edison International interest and other income	$	34	$	40	$	63	$	73
SCE's other expenses:
Civic, political and related activities and donations	$	9	$	10	$	15	$	17
Other	5		9		6		9
Total SCE's other expenses	14		19		21		26
Edison International Parent and Other other expenses	—		—		—		—
Total Edison International other expenses	$	14	$	19	$	21	$	26

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Preferred and Preference Stock of Utility

6 Months Ended

Jun. 30, 2013

Preferred And Preference Stock Of Utility Disclosure [Abstract]

Preferred and Preference Stock of Utility

Preferred and Preference Stock of Utility

During the first quarter of 2013, SCE issued 160,004 shares of 5.10% Series G preference stock (cumulative, $2,500 liquidation value) to SCE Trust II, a special purpose entity formed to issue trust securities as discussed in Note 3. The Series G preference stock may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2018 if certain changes in tax or investment company laws occur. After March 15, 2018, SCE may redeem the Series G shares at par, in whole or in part. The shares are not subject to mandatory redemption. The proceeds from the sale of these shares were used to redeem all outstanding shares of Series B and C preference stock.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 30, 2013
Document And Entity Information [Abstract]
Entity Registrant Name	EDISON INTERNATIONAL
Entity Central Index Key	0000827052
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		325,811,206
Southern California Edison
Document And Entity Information [Abstract]
Entity Registrant Name	SOUTHERN CALIFORNIA EDISON CO
Entity Central Index Key	0000092103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		434,888,104

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2013

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(87	)	$	(87	)
Other comprehensive loss before reclassifications	—			(2		)
Amounts reclassified from accumulated other comprehensive loss1	5			7
Net current-period other comprehensive loss	5			5
Balance at end of period	$	(82	)	$	(82	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	6		$	9
Tax expense	1			2
Total reclassification, net of tax	$	5		$	7

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

SCE's accumulated other comprehensive loss, net of tax, consists of:

	Three months ended June 30, 2013			Six months ended June 30, 2013
(in millions)	Pension and PBOP – Net Loss
Balance at beginning of period	$	(32	)	$	(29	)
Other comprehensive loss before reclassifications	—			(4		)
Amounts reclassified from accumulated other comprehensive loss1	2			3
Net current-period other comprehensive loss	2			(1		)
Balance at end of period	$	(30	)	$	(30	)
Reclassifications from accumulated other comprehensive loss:
Amortization of net loss included in net income	$	3		$	5
Tax expense	1			2
Total reclassification, net of tax	$	2		$	3

¹  These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.

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Other Investments (Textual) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Other Investments [Line Items]
Proceeds from sale of securities			$ 1,956,000,000	$ 1,097,000,000
Southern California Edison
Other Investments [Line Items]
Contributions received for decommissioning trusts			23,000,000
Proceeds from sale of securities	1,500,000,000	496,000,000	1,956,000,000	1,097,000,000
Unrealized holding gains, net of losses	$ 1,300,000,000		$ 1,300,000,000		$ 1,600,000,000

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Other Investments (Summary of Changes in Fair Value of the Nuclear Decommissioning Trusts) (Details) (USD $) In Millions, unless otherwise specified			3 Months Ended		6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Southern California Edison	Jun. 30, 2012 Southern California Edison	Jun. 30, 2013 Southern California Edison	Jun. 30, 2012 Southern California Edison
Summary Of Changes In The Fair Value [Roll Forward]
Balance at beginning of period	$ 4,181	$ 4,048	$ 4,246	$ 3,853	$ 4,048	$ 3,592
Gross realized gains			137	15	142	40
Gross realized losses			(1)	(1)	(2)	(5)
Unrealized gains, net			(185)	(67)	(9)	116
Other-than-temporary impairments			(21)	(19)	(29)	(23)
Interest, dividends, contributions and other			5	29	31	90
Balance at end of period	$ 4,181	$ 4,048	$ 4,181	$ 3,810	$ 4,181	$ 3,810