XML 38 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2016
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:
 
 
June 30, 2016
 
December 31, 2015
(in millions)
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
SCE
 
$
10,503

 
$
12,457

 
$
10,539

 
$
11,592

Edison International
 
11,541

 
13,521

 
11,178

 
12,252
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:
 
June 30, 2016
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
9

 
$
125

 
$
—

 
$
134

Other
18

 
—

 
—

 
—

 
18

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,488

 
—

 
—

 
—

 
1,488

Fixed Income3
830

 
1,902

 
—

 
—

 
2,732

Short-term investments, primarily cash equivalents
57

 
117

 
—

 
—

 
174

Subtotal of nuclear decommissioning trusts4
2,375

 
2,019

 
—

 
—

 
4,394

Total assets
2,393

 
2,028

 
125

 
—

 
4,546

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
—

 
1,295

 
—

 
1,295

Total liabilities
—

 
—

 
1,295

 
—

 
1,295

Net assets (liabilities)
$
2,393

 
$
2,028

 
$
(1,170
)
 
$
—

 
$
3,251

 
December 31, 2015
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
—

 
$
163

 
$
—

 
$
163

Other
28

 
—

 
—

 
—

 
28

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,460

 
—

 
—

 
—

 
1,460

Fixed Income3
947

 
1,776

 
—

 
—

 
2,723

Short-term investments, primarily cash equivalents
91

 
81

 
—

 
—

 
172

Subtotal of nuclear decommissioning trusts4
2,498

 
1,857

 
—

 
—

 
4,355

Total assets
2,526

 
1,857

 
163

 
—

 
4,546

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
22

 
1,311

 
(15
)
 
1,318

Total liabilities
—

 
22

 
1,311

 
(15
)
 
1,318

Net assets (liabilities)
$
2,526

 
$
1,835

 
$
(1,148
)
 
$
15

 
$
3,228

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 71% and 70% of SCE's equity investments were located in the United States at June 30, 2016 and December 31, 2015, respectively.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $89 million and $111 million at June 30, 2016 and December 31, 2015, respectively.
4 
Excludes net payables of $50 million and net payables of $24 million at June 30, 2016 and December 31, 2015, 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 June 30,
 
Six months ended June 30,
(in millions)
 
2016
 
2015
 
2016
 
2015
Fair value of net liabilities at beginning of period
 
$
(1,213
)
 
$
(976
)
 
$
(1,148
)
 
$
(902
)
Total realized/unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in regulatory assets and liabilities1
 
43

 
(68
)
 
(22
)
 
(142
)
Fair value of net liabilities at end of period
 
$
(1,170
)
 
$
(1,044
)
 
$
(1,170
)
 
$
(1,044
)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
19

 
$
(65
)
 
$
(54
)
 
$
(148
)

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
 
 
 
 
 
June 30, 2016
$
119

 
$
—

Market simulation model and auction prices
Load forecast
6,289 MW - 24,349 MW
 
 
 
 
 
Power prices1
$0 - $110.44
 
 
 
 
 
Gas prices2
$1.98 - $5.72
December 31, 2015
152

 
—

Market simulation model and auction prices
Load forecast
6,289 MW - 24,349 MW
 
 
 
 
 
Power prices1
$0 - $110.44
 
 
 
 
 
Gas prices2
$1.98 - $5.72
Tolling
 
 
 
 
 
 
June 30, 2016
3

 
1,293

Option model
Volatility of gas prices
15% - 41% (20%)
 
 
 
 
 
Volatility of power prices
26% - 86% (30%)
 
 
 
 
 
Power prices
$25.77 - $50.38 ($37.50)
December 31, 2015
10

 
1,297

Option model
Volatility of gas prices
15% - 58% (20%)
 
 
 
 
 
Volatility of power prices
26% - 38% (30%)
 
 
 
 
 
Power prices
$24.15 - $46.93 ($34.80)

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