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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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:
 
 
September 30, 2016
 
December 31, 2015
(in millions)
 
Carrying
Value1
 
Fair
Value
 
Carrying
Value1
 
Fair
Value
SCE
 
$
10,466

 
$
12,419

 
$
10,539

 
$
11,592

Edison International
 
11,288

 
13,266

 
11,178

 
12,252


1  
Carrying value is net of debt issuance costs.
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, 2016
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
—

 
$
127

 
$
—

 
$
127

Other
33

 
—

 
—

 
—

 
33

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,538

 
—

 
—

 
—

 
1,538

Fixed Income3
833

 
1,935

 
—

 
—

 
2,768

Short-term investments, primarily cash equivalents
50

 
59

 
—

 
—

 
109

Subtotal of nuclear decommissioning trusts4
2,421

 
1,994

 
—

 
—

 
4,415

Total assets
2,454

 
1,994

 
127

 
—

 
4,575

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
3

 
1,290

 
(1
)
 
1,292

Total liabilities
—

 
3

 
1,290

 
(1
)
 
1,292

Net assets (liabilities)
$
2,454

 
$
1,991

 
$
(1,163
)
 
$
1

 
$
3,283

 
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 70% of SCE's equity investments were located in the United States at both September 30, 2016 and December 31, 2015.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $83 million and $111 million at September 30, 2016 and December 31, 2015, respectively.
4 
Excludes net payables of $39 million and net payables of $24 million at September 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 September 30,
 
Nine months ended
September 30,
(in millions)
 
2016
 
2015
 
2016
 
2015
Fair value of net liabilities at beginning of period
 
$
(1,170
)
 
$
(1,044
)
 
$
(1,148
)
 
$
(902
)
Total realized/unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in regulatory assets and liabilities1
 
8

 
(49
)
 
(14
)
 
(191
)
Settlements
 
(1
)
 
—

 
(1
)
 
—

Fair value of net liabilities at end of period
 
$
(1,163
)
 
$
(1,093
)
 
$
(1,163
)
 
$
(1,093
)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
(57
)
 
$
(94
)
 
$
(122
)
 
$
(249
)

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, 2016
$
125

 
$
—

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
 
 
 
 
 
 
September 30, 2016
3

 
1,286

Option model
Volatility of gas prices
14% - 46% (20%)
 
 
 
 
 
Volatility of power prices
27% - 43% (30%)
 
 
 
 
 
Power prices
$24.03 - $48.40 ($34.30)
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.