| 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.
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