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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion
The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:
 
 
September 30, 2015
 
December 31, 2014
(in millions)
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
SCE
 
$
10,615

 
$
11,613

 
$
9,924

 
$
11,479

Edison International
 
11,252

 
12,268

 
10,738

 
12,319
Southern California Edison  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
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:
 
September 30, 2015
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
—

 
$
269

 
$
—

 
$
269

Other
25

 
—

 
—

 
—

 
25

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,559

 
—

 
—

 
—

 
1,559

Fixed Income3
977

 
1,745

 
—

 
—

 
2,722

Short-term investments, primarily cash equivalents
26

 
112

 
—

 
—

 
138

Subtotal of nuclear decommissioning trusts4
2,562

 
1,857

 
—

 
—

 
4,419

Total assets
2,587

 
1,857

 
269

 
—

 
4,713

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
46

 
1,362

 
(35
)
 
1,373

Total liabilities
—

 
46

 
1,362

 
(35
)
 
1,373

Net assets (liabilities)
$
2,587

 
$
1,811

 
$
(1,093
)
 
$
35

 
$
3,340

 
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

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 68% and 73% of SCE's equity investments were located in the United States at September 30, 2015 and December 31, 2014, respectively.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $149 million and $49 million at September 30, 2015 and December 31, 2014, respectively.
4 
Excludes net payables of $31 million and net payables of $57 million at September 30, 2015 and December 31, 2014, 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:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in millions)
 
2015
 
2014
 
2015
 
2014
Fair value of net liabilities at beginning of period
 
$
(1,044
)
 
$
(878
)
 
$
(902
)
 
$
(805
)
Total realized/unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in regulatory assets and liabilities1
 
(49
)
 
120

 
(191
)
 
43

Purchases
 
—

 
7

 
—

 
22

Settlements
 
—

 
(7
)
 
—

 
(18
)
 Fair value of net liabilities at end of period
 
$
(1,093
)
 
$
(758
)
 
$
(1,093
)
 
$
(758
)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
(94
)
 
$
71

 
$
(249
)
 
$
(12
)

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
 
 
 
 
 
September 30, 2015
$
258

 
$
—

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, 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
Tolling
 
 
 
 
 
 
September 30, 2015
11

 
1,359

Option model
Volatility of gas prices
15% - 45% (20%)
 
 
 
 
 
Volatility of power prices
25% - 56% (30%)
 
 
 
 
 
Power prices
$27.03 - $47.41 ($35.80)
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)

1 
Prices are in dollars per megawatt-hour.
2 
Prices are in dollars per million British thermal units.