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Regulatory Assets and Liabilities
 6 Months Ended
Jun. 30, 2019
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Assets and Liabilities Regulatory Assets and Liabilities
Regulatory Assets
SCE's regulatory assets included on the consolidated balance sheets are:
(in millions)
June 30,
2019
 
December 31,
2018
Current:
 
 
 
Regulatory balancing accounts
$
987

 
$
814

Power contracts
285

 
305

Other
22

 
14

Total current
1,294

 
1,133

Long-term:
 
 
 
Deferred income taxes, net of liabilities
3,800

 
3,589

Pensions and other postretirement benefits
278

 
271

Power contracts
561

 
700

Unamortized investments, net of accumulated amortization
113

 
118

Unamortized loss on reacquired debt
148

 
153

Regulatory balancing accounts
346

 
360

Environmental remediation
132

 
134

Other
91

 
55

Total long-term
5,469

 
5,380

Total regulatory assets
$
6,763

 
$
6,513


Regulatory Liabilities
SCE's regulatory liabilities included on the consolidated balance sheets are:
(in millions)
June 30,
2019
 
December 31,
2018
Current:
 
 
 
Regulatory balancing accounts
$
728

 
$
1,080

Energy derivatives
24

 
158

2018 GRC1
—

 
274

Other
15

 
20

Total current
767

 
1,532

Long-term:
 
 
 
Cost of removal
2,737

 
2,769

Re-measurement of deferred taxes2
2,530

 
2,776

Recoveries in excess of ARO liabilities3
1,454

 
1,130

Regulatory balancing accounts
1,591

 
1,344

Other postretirement benefits
194

 
185

Other
179

 
125

Total long-term
8,685

 
8,329

Total regulatory liabilities
$
9,452

 
$
9,861


1
During 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirement adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded regulatory liabilities associated with these adjustments. In May 2019, these regulatory liabilities were reversed due to the adoption of 2018 GRC final decision. For further information, see Note 1.
2 
SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first six months of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8.
3 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,
2019
 
December 31,
2018
Asset (liability)
 
 
 
Energy resource recovery account
$
636

 
$
815

Portfolio allocation balancing account1
143

 
—

New system generation balancing account
(81
)
 
(74
)
Public purpose programs and energy efficiency programs
(1,285
)
 
(1,200
)
Tax accounting memorandum account and pole loading balancing account2
(19
)
 
28

Base revenue requirement balancing account3
(462
)
 
(628
)
DOE litigation memorandum account
(70
)
 
(69
)
Greenhouse gas auction revenue and low carbon fuel standard revenue
(102
)
 
(81
)
FERC balancing accounts
(88
)
 
(180
)
Catastrophic event memorandum account
92

 
144

Wildfire expense memorandum account
122

 
128

Fire risk mitigation memorandum account4
97

 
—

Other
31

 
(133
)
Liability
$
(986
)
 
$
(1,250
)

1 
In May 2019, the CPUC approved a portfolio allocation balancing account to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs of all generation resources that are eligible for cost recovery.
2 
The 2018 GRC final decision approved changes to expand the use of the two-way TAMA. The expanded TAMA will track revenue differences resulting from changes in income tax expense caused by net revenue changes, mandatory or elective tax law changes, tax accounting changes, tax procedural changes, or tax policy changes during the 2018 GRC period.
3 The base revenue requirement balancing account at June 30, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017.
4 In March 2019, the CPUC approved a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to the amount in SCE's revenue requirement.