Fair Value Measurements (Tables)

12 Months Ended

Dec. 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:

	December 31, 2014
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	—	$	321		$	—		$	321
Other	33		—		—			—			33
Nuclear decommissioning trusts:
Stocks2	2,031		—		—			—			2,031
Fixed income3	703		1,350		—			—			2,053
Short-term investments, primarily cash equivalents	606		166		—			—			772
Subtotal of nuclear decommissioning trusts4	3,340		1,516		—			—			4,856
Total assets	3,373		1,516		321			—			5,210
Liabilities at fair value
Derivative contracts	—		86		1,223			(61		)	1,248
Total liabilities	—		86		1,223			(61		)	1,248
Net assets (liabilities)	$	3,373	$	1,430	$	(902	)	$	61		$	3,962

	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 73% and 70% of SCE's equity investments were located in the United States at December 31, 2014 and 2013, respectively.

³  Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $49 million and $47 million at December 31, 2014 and 2013, respectively.

⁴  Excludes net payables of $57 million at December 31, 2014 and net receivables of $12 million at 2013, which consist 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:

	December 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	(97		)	23
Purchases	27			65
Settlements	(27		)	(102		)
Fair value of net liabilities at end of period	$	(902	)	$	(805	)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	(166	)	$	33

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
December 31, 2014	$	317	$	—	Market simulation model	Load forecast	7,630 MW - 25,431 MW
						Power prices1	$1.65 - $109.95
						Gas prices2	$3.65 - $6.53
December 31, 2013	366		—		Market simulation model	Load forecast	7,603 MW - 24,896 MW
						Power prices1	$(9.86) - $108.56
						Gas prices2	$3.50 - $7.10
Tolling
December 31, 2014	4		1,207		Option model	Volatility of gas prices	13% - 53% (20%)
						Volatility of power prices	25% - 42% (30%)
						Power prices	$30.60 - $61.40 ($44.60)
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)

¹    Prices are in dollars per megawatt-hour.

²    Prices are in dollars per million British thermal units.

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):

	December 31, 2014				December 31, 2013
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Edison International	$	10,738	$	12,319	$	10,426	$	11,084
SCE	9,924		11,479		10,022		10,656