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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
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, 2020
 
December 31, 2019
(in millions)
 
Carrying
Value1
 
Fair
Value2
 
Carrying
Value1
 
Fair
Value2
Edison International
 
$
20,026

 
$
21,169

 
$
18,343

 
$
20,137

SCE
 
16,892

 
18,062

 
15,211

 
16,892


1  
Carrying value is net of debt issuance costs.
2  
The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.
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, 2020
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
4

 
$
54

 
$
(6
)
 
$
52

Money market funds and other
431

 
14

 
—

 
—

 
445

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 
 
Stocks2
1,393

 
—

 
—

 
—

 
1,393

Fixed Income3
569

 
2,209

 
—

 
—

 
2,778

Short-term investments, primarily cash equivalents
198

 
2

 
—

 
—

 
200

Subtotal of nuclear decommissioning trusts4
2,160

 
2,211

 
—

 
—

 
4,371

Total assets
2,591

 
2,229

 
54

 
(6
)
 
4,868

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
53

 
2

 
(36
)
 
19

Total liabilities
—

 
53

 
2

 
(36
)
 
19

Net assets
$
2,591

 
$
2,176

 
$
52

 
$
30

 
$
4,849

 
December 31, 2019
(in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
and
Collateral1
 
Total
Assets at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
$
—

 
$
19

 
$
83

 
$
(15
)
 
$
87

Money market funds and other
4

 
14

 
—

 
—

 
18

Nuclear decommissioning trusts:
 
 
 
 
 
 
 
 

Stocks2
1,765

 
—

 
—

 
—

 
1,765

Fixed Income3
738

 
2,024

 
—

 
—

 
2,762

Short-term investments, primarily cash equivalents
98

 
48

 
—

 
—

 
146

Subtotal of nuclear decommissioning trusts4
2,601

 
2,072

 
—

 
—

 
4,673

Total assets
2,605

 
2,105

 
83

 
(15
)
 
4,778

Liabilities at fair value
 
 
 
 
 
 
 
 
 
Derivative contracts
—

 
11

 
5

 
(15
)
 
1

Total liabilities
—

 
11

 
5

 
(15
)
 
1

Net assets
$
2,605

 
$
2,094

 
$
78

 
$
—

 
$
4,777

1 
Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2 
Approximately 73% and 72% of SCE's equity investments were in companies located in the United States at March 31, 2020 and December 31, 2019, respectively.
3 
Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $31 million and $46 million at March 31, 2020 and December 31, 2019, respectively.
4 
Excludes net payables of $104 million and $111 million at March 31, 2020 and December 31, 2019, respectively, which consist of payables and receivables related to SCE's pending securities purchases and sales as well as interest and dividend receivables.
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)
 
2020
 
2019
Fair value of net assets at beginning of period
 
$
78

 
$
141

Total realized/unrealized losses1
 
(26
)
 
(46
)
Fair value of net assets at end of period2
 
52

 
95

Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
 
$
(6
)
 
$
(2
)

1 
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
2 
There were no material transfers into or out of Level 3 during 2020 and 2019.
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)
Valuation
Significant
 
Weighted
 
Assets
 
Liabilities
Technique
Unobservable Input
Range
Average
Congestion revenue rights
 
 
 
 
 
 
March 31, 2020
$
55

 
$
3

Auction prices
CAISO CRR auction prices
$(3.59) - $16.30
$1.71
December 31, 2019
83

 
5

Auction prices
CAISO CRR auction prices
(3.59) - 25.32
1.97