Other Investments

9 Months Ended

Sep. 30, 2014

Regulated Entity, Other Assets, Noncurrent [Abstract]

Other Investments

Other Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts, which received $6 million in 2014 through SCE customer rates. Contributions to the decommissioning trusts are reviewed every three years by the CPUC.

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

	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Stocks	—	$	500	$	656	$	1,970	$	2,208
Municipal bonds	2051	663		675		807		756
U.S. government and agency securities	2045	826		902		888		947
Corporate bonds	2057	333		208		385		241
Short-term investments and receivables/payables	One-year	657		329		691		342
Total		$	2,979	$	2,770	$	4,741	$	4,494

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 $2.1 billion and $2.6 billion for the three months ended September 30, 2014 and 2013, and $5.8 billion and $4.6 billion for the nine months ended September 30, 2014 and 2013, respectively. Unrealized holding gains, net of losses, were $1.8 billion and $1.7 billion at September 30, 2014 and December 31, 2013, respectively.

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

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2014			2013			2014			2013
Balance at beginning of period	$	4,740		$	4,182		$	4,494		$	4,048
Gross realized gains	149			119			187			261
Gross realized losses	—			(17		)	—			(18		)
Unrealized gains (losses), net	(131		)	55			38			46
Other-than-temporary impairments	(4		)	(15		)	(10		)	(44		)
Interest, dividends, contributions and other	(13		)	8			32			39
Balance at end of period	$	4,741		$	4,332		$	4,741		$	4,332

Trust assets are used to pay income taxes as the Trust files separate income taxes returns from SCE. Deferred income taxes related to unrealized gains at September 30, 2014 were $431 million. Accordingly, the fair value of Trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.3 billion at September 30, 2014. Due to regulatory mechanisms, changes in assets of the trusts from income items have no impact on operating revenue or earnings.