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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 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:
 
December 31, 2017
 
December 31, 2016
(in millions)
Carrying
Value1
 
Fair
Value
 
Carrying
Value1
 
Fair
Value
Edison International
$
12,123

 
$
13,760

 
$
11,156

 
$
12,368

SCE
10,907

 
12,547

 
10,333

 
11,539


1  
Carrying value is net of debt issuance costs.
SCE  
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:
 
December 31, 2017
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
9

 
$
102

 
$
(1
)
 
$
110

Money market funds and other
495

 
—

 
—

 
—

 
495

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,596

 
—

 
—

 
—

 
1,596

Fixed Income3
1,065

 
1,665

 
—

 
—

 
2,730

Short-term investments, primarily cash equivalents
101

 
72

 
—

 
—

 
173

Subtotal of nuclear decommissioning trusts4
2,762

 
1,737

 
—

 
—

 
4,499

Total assets
3,257

 
1,746

 
102

 
(1
)
 
5,104

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
2

 
1

 
(2
)
 
1

Total liabilities
—

 
2

 
1

 
(2
)
 
1

Net assets
$
3,257

 
$
1,744

 
$
101

 
$
1

 
$
5,103

 
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 69% and 70% of SCE's equity investments were located in the United States at December 31, 2017 and 2016, respectively.
3 
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $102 million and $79 million at December 31, 2017 and 2016, respectively.
4 
Excludes net payables of $59 million and $127 million at December 31, 2017 and 2016, 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)
 
2017
 
2016
Fair value of net liabilities at beginning of period
 
$
(1,089
)
 
$
(1,148
)
Total realized/unrealized gains:
 
 
 
 
Included in regulatory assets and liabilities1
 
133

 
59

Contract amendment2
 
143

 
—

Normal purchase and normal sale designation3
 
914

 
—

Fair value of net assets (liabilities) at end of period
 
$
101

 
$
(1,089
)
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
100

 
$
(70
)

1 
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
2 Represents a tolling contract that was amended during the second quarter of 2017, which is no longer accounted for as a derivative as of December 31, 2017.
3 
During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms.
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
 
 
Assets
 
Liabilities
Valuation Technique(s)
Unobservable Input
Range

Congestion revenue rights
 
 
 
December 31, 2017
$
102

 
$
—

Market simulation model and auction prices
Load forecast
5,002 MW - 22,970 MW
 
 
 
 
 
Power prices1
$(15.00) - $120.00
 
 
 
 
 
Gas prices2
$2.46 - $4.37
 
 
 
 
 
CAISO CRR auction clearing prices
$(9.41) - $8.66
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
Tolling3
 
 
 
 
 
 
December 31, 2016
—

 
1,154

Option model
Volatility of gas prices
15% - 48%
 
 
 
 
 
Volatility of power prices
29% - 71%
 
 
 
 
 
Power prices
$23.40 - $51.24
1    Prices are in dollars per megawatt-hour.
2    Prices are in dollars per million British thermal units.
3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms.