Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Regulatory Assets and Liabilities Disclosure [Abstract]


	December 31,
(in millions)	2021		2020
Current:
Regulatory balancing and memorandum accounts	$	1,591	$	1,127
Power contracts		168		165
Other		19		22
Total current		1,778		1,314
Long-term:
Deferred income taxes, net of liabilities		4,770		4,475
Pension and other postretirement benefits		—		12
Power contracts		71		239
Unamortized investments, net of accumulated amortization		114		114
Unamortized loss on reacquired debt		121		133
Regulatory balancing and memorandum accounts		1,897		1,794
Environmental remediation		242		247
Recovery assets		325		—
Other		120		106
Total long-term		7,660		7,120
Total regulatory assets	$	9,438	$	8,434

Regulatory liabilities


	December 31,
(in millions)	2021		2020
Current:
Regulatory balancing and memorandum accounts	$	553	$	471
Energy derivatives		25		87
Other		25		11
Total current		603		569
Long-term:
Costs of removal		2,552		2,595
Re-measurement of deferred taxes		2,315		2,283
Recoveries in excess of ARO liabilities		2,155		1,930
Regulatory balancing and memorandum accounts		648		1,062
Pension and other postretirement benefits		1,281		671
Other		30		48
Total long-term		8,981		8,589
Total regulatory liabilities	$	9,584	$	9,158

Schedule of Regulatory Balancing Accounts


	December 31,
(in millions)	2021		2020
Asset (liability)
Energy resource recovery account	$	759	$	(89)
Portfolio allocation balancing account		(183)		497
New system generation balancing account		73		(10)
Public purpose programs and energy efficiency programs		(1,066)		(1,130)
Base revenue requirement balancing account		849		622
GRC wildfire mitigation balancing accounts¹		12		—
Greenhouse gas auction revenue and low carbon fuel standard revenue		(298)		(125)
FERC balancing accounts		55		12
Wildfire and drought restoration accounts²		299		361
Wildfire-related memorandum accounts³		1,456		1,104
COVID-19-related memorandum accounts		94		176
Customer service re-platform memorandum account⁴		128		30
Tax accounting memorandum account and pole loading balancing account		171		(35)
Other		(62)		(25)
Asset	$	2,287	$	1,388

The 2021 GRC decision approved the establishment of the vegetation management balancing account ("VMBA") to track vegetation management expenses up to 115% of amounts authorized, the Wildfire Risk Mitigation balancing account ("WRMBA") to track the costs of SCE's Wildfire Covered Conductor Program up to 110% of amounts authorized and the risk management balancing account to track the authorized costs of wildfire insurance. The amount recorded to these balancing accounts represents the difference between costs tracked in the balancing accounts and authorized revenues for those costs recorded to the base revenue requirement balancing account. If spending is less than authorized, SCE will refund those amounts to customers. If spending is within the specified threshold, if any, for each balancing account, SCE will recover those costs from customers. Amounts above the specified threshold, or above amounts authorized if a higher threshold was not established, for each balancing account may be eligible for deferral to wildfire-related memorandum accounts.

2	The wildfire and drought restoration accounts regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account ("CEMA").

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") was used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and

uninsured wildfire-related financing, legal and claims costs. The Wildfire Mitigation Plan Memorandum Account ("WMPMA") is used to track costs incurred to implement SCE's wildfire mitigation plan that are not currently reflected in SCE's revenue requirements. The Fire Risk Mitigation Memorandum Account ("FRMMA") is used to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's GRCs that are not tracked in any other wildfire-related memorandum account. The balance also includes vegetation management spending in excess of the 115% threshold for the VMBA described above.

CSRP memorandum account was established in the 2018 GRC to track costs for implementation of a new customer service system not currently reflected in SCE's revenue requirements. Expenditures for the CSRP project are subject to reasonableness review by the CPUC, expenditures for the project were significantly higher than originally projected.