1	Represents the balance associated with the AB 1054 Excluded Capital Expenditures related Recovery Properties and prudently incurred financing costs securitized with issuance of the associated bond. For further details, see Note 3.

Regulatory Liabilities

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


	March 31,		December 31,
(in millions)	2022		2021
Current:
Regulatory balancing and memorandum accounts	$	603	$	553
Energy derivatives		78		25
Other		20		25
Total current		701		603
Long-term:
Costs of removal		2,694		2,552
Re-measurement of deferred taxes		2,302		2,315
Recoveries in excess of ARO liabilities¹		1,760		2,155
Regulatory balancing and memorandum accounts		825		648
Pension and other postretirement benefits		1,286		1,281
Other		—		30
Total long-term		8,867		8,981
Total regulatory liabilities	$	9,568	$	9,584

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 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:


	March 31,		December 31,
(in millions)	2022		2021
Asset (liability)
Energy resource recovery account	$	102	$	759
Portfolio allocation balancing account		459		(183)
New system generation balancing account		16		73
Public purpose programs and energy efficiency programs		(1,287)		(1,066)
Base revenue requirement balancing account		1,360		849
GRC wildfire mitigation balancing accounts¹		63		12
Residential uncollectibles balancing account		38		—
Greenhouse gas auction revenue and low carbon fuel standard revenue		(393)		(298)
FERC balancing accounts		26		55
Wildfire and drought restoration accounts²		305		299
Wildfire-related memorandum accounts³		1,034		1,456
COVID-19-related memorandum accounts		97		94
Customer service re-platform memorandum account⁴		159		128
Tax accounting memorandum account and pole loading balancing account		144		171
Excess bond and power charge balancing account⁵		(144)		—
Other		25		(62)
Asset	$	2,004	$	2,287

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 revenue 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") 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. 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.

5	This balancing account was established in January 2022 to refund customers for excess California Department of Water Resources ("DWR") bond and power charges. The refund will begin in June 2022 for a 12-month period.