Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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:

	March 31, 2017				December 31, 2016
(in millions)	Carrying Value1		Fair Value		Carrying Value1		Fair Value
SCE	$	11,422	$	12,665	$	10,333	$	11,539
Edison International	12,643		13,894		11,156		12,368

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:

	March 31, 2017
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	15	$	55		$	—	$	70
Other	103		—		—			—		103
Nuclear decommissioning trusts:
Stocks2	1,537		—		—			—		1,537
Fixed Income3	1,153		1,588		—			—		2,741
Short-term investments, primarily cash equivalents	88		84		—			—		172
Subtotal of nuclear decommissioning trusts4	2,778		1,672		—			—		4,450
Total assets	2,881		1,687		55			—		4,623
Liabilities at fair value
Derivative contracts	—		5		1,221			—		1,226
Total liabilities	—		5		1,221			—		1,226
Net assets (liabilities)	$	2,881	$	1,682	$	(1,166	)	$	—	$	3,397

	December 31, 2016
(in millions)	Level 1		Level 2		Level 3			Netting and Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	6	$	68		$	—	$	74
Other	33		—		—			—		33
Nuclear decommissioning trusts:
Stocks2	1,547		—		—			—		1,547
Fixed Income3	865		1,751		—			—		2,616
Short-term investments, primarily cash equivalents	36		170		—			—		206
Subtotal of nuclear decommissioning trusts4	2,448		1,921		—			—		4,369
Total assets	2,481		1,927		68			—		4,476
Liabilities at fair value
Derivative contracts	—		—		1,157			—		1,157
Total liabilities	—		—		1,157			—		1,157
Net assets (liabilities)	$	2,481	$	1,927	$	(1,089	)	$	—	$	3,319

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 70% of SCE's equity investments were located in the United States at March 31, 2017 and December 31, 2016, respectively.

³  Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $83 million and $79 million at March 31, 2017 and December 31, 2016, respectively.

⁴  Excludes net payables of $98 million and $127 million at March 31, 2017 and December 31, 2016, respectively, 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 March 31,
(in millions)	2017			2016
Fair value of net liabilities at beginning of period	$	(1,089	)	$	(1,148	)
Total realized/unrealized losses:
Included in regulatory assets and liabilities1	(77		)	(65		)
Fair value of net liabilities at end of period	$	(1,166	)	$	(1,213	)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	(102	)	$	(84	)

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
March 31, 2017	$	55	$	—	Market simulation model and auction prices	Load forecast	3,708 MW - 22,840 MW
						Power prices1	$3.65 - $99.58
						Gas prices2	$2.51 - $4.87
December 31, 2016	67		—		Market simulation model and auction prices	Load forecast	3,708 MW - 22,840 MW
						Power prices1	$3.65 - $99.58
						Gas prices2	$2.51 - $4.87
Tolling
March 31, 2017	—		1,210		Option model	Volatility of gas prices	16% - 39% (25%)
						Volatility of power prices	26% - 140% (36%)
						Power prices	$18.01 - $45.28 ($30.70)
December 31, 2016	—		1,154		Option model	Volatility of gas prices	15% - 48% (20%)
						Volatility of power prices	29% - 71% (40%)
						Power prices	$23.40 - $51.24 ($34.70)

¹  Prices are in dollars per megawatt-hour.

²  Prices are in dollars per million British thermal units.