Regulatory Assets and Liabilities

9 Months Ended

Sep. 30, 2023

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Note 11. Regulatory Assets and Liabilities

Regulatory Assets

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

	September 30,		December 31,
(in millions)	2023		2022
Current:
Regulatory balancing and memorandum accounts	$	2,357	$	2,400
Power contracts		—		71
Other		51		26
Total current		2,408		2,497
Long-term:
Deferred income taxes		5,456		5,178
Unamortized investments, net of accumulated amortization		109		113
Unamortized loss on reacquired debt		100		109
Regulatory balancing and memorandum accounts		1,192		1,589
Environmental remediation		233		241
Recovery assets		1,571		834
Other		113		117
Total long-term		8,774		8,181
Total regulatory assets	$	11,182	$	10,678

Regulatory Liabilities

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

	September 30,		December 31,
(in millions)	2023		2022
Current:
Regulatory balancing and memorandum accounts	$	685	$	584
Energy derivatives		—		338
Other		32		42
Total current		717		964
Long-term:
Costs of removal		2,673		2,589
Deferred income taxes		2,227		2,250
Recoveries in excess of ARO liabilities		1,285		1,231
Regulatory balancing and memorandum accounts		1,377		1,116
Pension and other postretirement benefits		984		1,007
Other		24		18
Total long-term		8,570		8,211
Total regulatory liabilities	$	9,287	$	9,175

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:

	September 30,		December 31,
(in millions)	2023		2022
Asset (liability)
Energy resource recovery account	$	(141)	$	1,580
Portfolio allocation balancing account		929		(73)
New system generation balancing account		237		(63)
Public purpose programs and energy efficiency programs		(1,805)		(1,577)
Base revenue requirement balancing account		1,006		1,108
GRC wildfire mitigation balancing accounts		174		67
Residential uncollectibles balancing account		51		—
Greenhouse gas auction revenue and low carbon fuel standard revenue		(393)		(289)
FERC balancing accounts		(208)		(123)
Wildfire and drought restoration accounts		432		352
Wildfire-related memorandum accounts		985		1,168
Risk management balancing account1		(74)		—
COVID-19-related memorandum accounts		66		67
Customer service re-platform memorandum account		96		64
Tax accounting memorandum account and pole loading balancing account		61		90
Excess bond and power charge balancing account		11		(56)
Other		60		(26)
Asset	$	1,487	$	2,289

1 The risk management balancing account is used to support the administration of the customer-funded self-insurance program. See "Note 12—Contingencies—Southern California Wildfires and Mudslides—Wildfire Insurance Coverage" for more details.