Regulatory Assets and Liabilities

Regulatory Assets

SCE's regulatory assets included on the consolidated balance sheets are:



(in millions)	June 30, 2018		December 31, 2017
Current:
Regulatory balancing accounts	$	642	$	484
Power contracts and energy derivatives	203		203
Other	15		16
Total current	860		703
Long-term:
Deferred income taxes, net of liabilities	3,306		3,143
Pensions and other postretirement benefits	265		271
Power contracts and energy derivatives	741		799
Unamortized investments, net of accumulated amortization	117		123
San Onofre¹	72		72
Unamortized loss on reacquired debt	160		168
Regulatory balancing accounts	175		143
Environmental Remediation	137		144
Other	49		51
Total long-term	5,022		4,914
Total regulatory assets	$	5,882	$	5,617


¹	In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset. SCE has requested to apply $72 million of the U.S. Department of Energy ("DOE") proceeds, currently reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset. See Note 12 for further information.

Regulatory Liabilities

SCE's regulatory liabilities included on the consolidated balance sheets are:



(in millions)	June 30, 2018		December 31, 2017
Current:
Regulatory balancing accounts	$	1,004	$	1,009
Energy derivatives	50		74
San Onofre¹	96		5
Other²	191		33
Total current	1,341		1,121
Long-term:
Costs of removal	2,804		2,741
Re-measurement of deferred taxes	2,815		2,892
Recoveries in excess of ARO liabilities³	1,438		1,575
Regulatory balancing accounts	1,539		1,316
Other postretirement benefits	26		26
Other	37		64
Total long-term	8,659		8,614
Total regulatory liabilities	$	10,000	$	9,735


¹	During the six months ended June 30, 2018, SCE recorded San Onofre revenue based on the Prior San Onofre Settlement Agreement. As a result of the Revised San Onofre Settlement Agreement, SCE recorded a regulatory liability pending the CPUC approval of the agreement. See Note 12 for additional information.


²	During the six months ended June 30, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded a regulatory liability primarily associated with these adjustments.

Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.

Net Regulatory Balancing Accounts

The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:



(in millions)	June 30, 2018			December 31, 2017
Asset (liability)
Energy resource recovery account	$	452		$	464
New system generation balancing account	(190		)	(197		)
Public purpose programs and energy efficiency programs	(1,270		)	(1,145		)
Tax accounting memorandum account and pole loading balancing account	4			(259		)
Base revenue requirement balancing account	(500		)	(200		)
DOE litigation memorandum account	(191		)	(156		)
Greenhouse gas auction revenue	140			(22		)
FERC balancing accounts	(220		)	(205		)
Catastrophic event memorandum account	109			102
Other	(60		)	(80		)
Liability	$	(1,726	)	$	(1,698	)