Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2020				December 31, 2019
(in millions)	Carrying Value1		Fair Value2		Carrying Value1		Fair Value2
Edison International	$	19,987	$	22,313	$	18,343	$	20,137
SCE	16,855		18,995		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:

	September 30, 2020
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	26	$	30	$	(8)	$	48
Money market funds and other	1		23		—		—		24
Nuclear decommissioning trusts:
Stocks2	1,753		—		—		—		1,753
Fixed Income3	518		2,133		—		—		2,651
Short-term investments, primarily cash equivalents	377		45		—		—		422
Subtotal of nuclear decommissioning trusts4	2,648		2,178		—		—		4,826
Total assets	2,649		2,227		30		(8)		4,898
Liabilities at fair value
Derivative contracts	—		6		2		(8)		—
Total liabilities	—		6		2		(8)		—
Net assets	$	2,649	$	2,221	$	28	$	—	$	4,898

	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 72% of SCE's equity investments were in companies located in the United States at September 30, 2020 and December 31, 2019.

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 September 30, 2020 and December 31, 2019, respectively.

⁴    Excludes net payables of $176 million and $111 million at September 30, 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 September 30,				Nine months ended September 30,
(in millions)	2020		2019		2020		2019
Fair value of net assets at beginning of period	$	34	$	63	$	78	$	141
Total realized/unrealized losses1	(6)		—		(50)		(78)
Fair value of net assets at end of period2	28		63		28		63
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	13	$	30	$	8	$	27

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
September 30, 2020	$	30	$	2	Auction prices	CAISO CRR auction prices	$(7.72) - $9.91	$1.72
December 31, 2019	83		5		Auction prices	CAISO CRR auction prices	(3.59) - 25.32	1.97