Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

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:

	March 31, 2014
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	20	$	345		$	(13	)	$	352
Other	38		—		—			—			38
Nuclear decommissioning trusts:
Stocks2	2,234		—		—			—			2,234
Fixed Income3	777		1,221		—			—			1,998
Short-term investments, primarily cash equivalents	335		75		—			—			410
Subtotal of nuclear decommissioning trusts4	3,346		1,296		—			—			4,642
Total assets	3,384		1,316		345			(13		)	5,032
Liabilities at fair value
Derivative contracts	—		29		1,118			(19		)	1,128
Total liabilities	—		29		1,118			(19		)	1,128
Net assets (liabilities)	$	3,384	$	1,287	$	(773	)	$	6		$	3,904

	December 31, 2013
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	11	$	372		$	(10	)	$	373
Other	39		—		—			—			39
Nuclear decommissioning trusts:
Stocks2	2,208		—		—			—			2,208
Fixed Income3	841		1,102		—			—			1,943
Short-term investments, primarily cash equivalents	331		—		—			—			331
Subtotal of nuclear decommissioning trusts4	3,380		1,102		—			—			4,482
Total assets	3,419		1,113		372			(10		)	4,894
Liabilities at fair value
Derivative contracts	—		37		1,177			(20		)	1,194
Total liabilities	—		37		1,177			(20		)	1,194
Net assets (liabilities)	$	3,419	$	1,076	$	(805	)	$	10		$	3,700

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% of SCE's equity investments were located in the United States at March 31, 2014 and December 31, 2013, respectively.

³  At March 31, 2014 and December 31, 2013, SCE's corporate bonds were diversified and included collateralized mortgage obligations and other asset backed securities of $46 million and $47 million, respectively.

⁴  Excludes net payables of $55 million and net receivables of $12 million at March 31, 2014 and December 31, 2013, 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 March 31,
(in millions)	2014			2013
Fair value of net liabilities at beginning of period	$	(805	)	$	(791	)
Total realized/unrealized gains (losses):
Included in regulatory assets and liabilities1	31			(82		)
Purchases	7			18
Settlements	(6		)	(27		)
Fair value of net liabilities at end of period	$	(773	)	$	(882	)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	22		$	(66	)

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 significant Level 3 assets and liabilities:

	Fair Value (in millions)					Significant	Range
	Assets		Liabilities		Valuation Technique(s)	Unobservable Input	(Weighted Average)
Congestion revenue rights
March 31, 2014	$	345	$	—	Market simulation model	Load forecast	7,603 MW - 24,896 MW
						Power prices	$(9.86) - $108.56
						Gas prices	$3.50 - $7.10
December 31, 2013	366		—		Market simulation model	Load forecast	7,603 MW - 24,896 MW
						Power prices	$(9.86) - $108.56
						Gas prices	$3.50 - $7.10
Tolling
March 31, 2014	4		1,111		Option model	Volatility of gas prices	13% - 31% (18%)
						Volatility of power prices	26% - 61% (32%)
						Power prices	$37.50 - $70.80 ($50.10)
December 31, 2013	5		1,175		Option model	Volatility of gas prices	16% - 35% (21%)
						Volatility of power prices	25% - 45% (30%)
						Power prices	$38.00 - $63.90 ($47.40)

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 (including current portion of long-term debt) are as follows:

	March 31, 2014				December 31, 2013
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
SCE	$	10,023	$	11,012	$	10,022	$	10,656
Edison International	10,426		11,442		10,426		11,084