Regulatory Assets and Liabilities (Tables) - Southern California Edison

6 Months Ended

Jun. 30, 2020

Regulatory Assets [Line Items]

Regulatory Assets Included on the Consolidated Balance Sheets

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

(in millions)	June 30, 2020		December 31, 2019
Current:
Regulatory balancing and memorandum accounts	$	1,443	$	798
Power contracts	228		189
Other	21		22
Total current	1,692		1,009
Long-term:
Deferred income taxes, net of liabilities	4,231		4,026
Pensions and other postretirement benefits	83		87
Power contracts	361		434
Unamortized investments, net of accumulated amortization	117		119
Unamortized loss on reacquired debt	138		142
Regulatory balancing and memorandum accounts	1,331		981
Environmental remediation	233		237
Other	34		62
Total long-term	6,528		6,088
Total regulatory assets	$	8,220	$	7,097

Regulatory Liabilities Included on the Consolidated Balance Sheets

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

(in millions)	June 30, 2020		December 31, 2019
Current:
Regulatory balancing and memorandum accounts	$	846	$	883
Energy derivatives	—		80
Other	11		9
Total current	857		972
Long-term:
Cost of removal	2,649		2,674
Re-measurement of deferred taxes	2,352		2,424
Recoveries in excess of ARO liabilities1	1,600		1,569
Regulatory balancing and memorandum accounts	1,337		1,261
Other postretirement benefits	423		416
Other	34		41
Total long-term	8,395		8,385
Total regulatory liabilities	$	9,252	$	9,357

¹ 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.

Schedule of Net Regulatory Balancing and Memorandum Accounts

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

(in millions)	June 30, 2020		December 31, 2019
Asset (liability)
Energy resource recovery account	$	(355)	$	(23)
Portfolio allocation balancing account	745		537
New system generation balancing account	31		85
Public purpose programs and energy efficiency programs	(1,322)		(1,244)
Base revenue requirement balancing account	239		(328)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(23)		(196)
FERC balancing accounts	32		(127)
Wildfire-related memorandum accounts1	1,179		868
COVID-19-related memorandum accounts2	49		—
Other	16		63
Asset (liability)	$	591	$	(365)

¹ The wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") is used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. A Catastrophic Event Memorandum Account ("CEMA") is used to track costs related to restoring service and damage repair, upon declaration of disasters by state or federal authorities. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claims costs. During 2019, the CPUC approved a Wildfire Mitigation Plan memorandum account to track costs incurred to implement SCE's Wildfire Mitigation Plan that are not currently reflected in SCE's revenue requirements, a Grid Safety and Resiliency Program Memorandum Account ("GSRPMA") to track the costs of SCE's GS&RP that are incremental to costs approved for recovery in SCE's 2018 GRC and 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 any other revenue requirement.

2 In July 2020, the CPUC approved establishment of the COVID-19 Pandemic Protection Memorandum Account ("CPPMA"), to track incremental consumer protection costs for residential and small commercial customers. A CEMA is used to track other incremental COVID-19 costs, including costs of sequestering employees at essential work locations. Both memorandum accounts were effective beginning March 2020.