Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	March 31, 2023
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	83	$	50	$	(59)	$	74
Money market funds and other		—		22		—		—		22
Nuclear decommissioning trusts:
Stocks2		1,667		—		—		—		1,667
Fixed Income3		918		1,399		—		—		2,317
Short-term investments, primarily cash equivalents		125		41		—		—		166
Subtotal of nuclear decommissioning trusts4		2,710		1,440		—		—		4,150
Total assets		2,710		1,545		50		(59)		4,246
Liabilities at fair value
Derivative contracts		—		56		3		(59)		—
Total liabilities		—		56		3		(59)		—
Net assets	$	2,710	$	1,489	$	47	$	—	$	4,246

	December 31, 2022
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	392	$	67	$	(218)	$	241
Money market funds and other		647		22		—		—		669
Nuclear decommissioning trusts:
Stocks2		1,610		—		—		—		1,610
Fixed Income3		941		1,281		—		—		2,222
Short-term investments, primarily cash equivalents		137		64		—		—		201
Subtotal of nuclear decommissioning trusts4		2,688		1,345		—		—		4,033
Total assets		3,335		1,759		67		(218)		4,943
Liabilities at fair value
Derivative contracts		—		116		4		(119)		1
Total liabilities		—		116		4		(119)		1
Net assets	$	3,335	$	1,643	$	63	$	(99)	$	4,942

1 Represents the netting of assets and liabilities under master netting agreements and cash collateral.

2 Approximately 74% SCE's equity investments were in companies located in the United States at both March 31, 2023 and December 31, 2022.

3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $76 million and $49 million at March 31, 2023 and December 31, 2022, respectively.

4 Excludes net payables of $57 million and $85 million at March 31, 2023 and December 31, 2022, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Summary of level 3 fair value changes

	March 31,
(in millions)	2023		2022
Fair value of net assets at beginning of period	$	63	$	44
Settlements		(12)		(3)
Total realized/unrealized losses1,2		(4)		(2)
Fair value of net assets at end of period	$	47	$	39

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 2023 and 2022.

Valuation techniques and significant inputs

	Fair Value					Significant		Weighted
	(in millions)				Valuation	Unobservable	Range	Average
	Assets		Liabilities		Technique	Input	(per MWh)	(per MWh)
Congestion revenue rights
March 31, 2023	$	50	$	3	Auction prices	CAISO CRR auction prices	$(5.83) - $47.91	$	1.47
December 31, 2022		67		4	Auction prices	CAISO CRR auction prices	(7.91) - 3,856.67		1.64

Long-term debt fair value

	March 31, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	31,656	$	29,616	$	29,639	$	26,824
SCE		28,180		26,104		26,258		23,469

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.