Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	September 30, 2023
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	5	$	34	$	(5)	$	34
Money market funds and other		—		22		—		—		22
Nuclear decommissioning trusts:
Stocks2		1,550		—		—		—		1,550
Fixed Income3		927		1,339		—		—		2,266
Short-term investments, primarily cash equivalents		188		29		—		—		217
Subtotal of nuclear decommissioning trusts4		2,665		1,368		—		—		4,033
Total assets		2,665		1,395		34		(5)		4,089
Liabilities at fair value
Derivative contracts		—		45		—		(45)		—
Total liabilities		—		45		—		(45)		—
Net assets	$	2,665	$	1,350	$	34	$	40	$	4,089

	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 75% and 74% SCE's equity investments were in companies located in the United States at September 30, 2023 and December 31, 2022, respectively.

3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $87 million and $49 million at September 30, 2023 and December 31, 2022, respectively.

4 Excludes net payables of $90 million and $85 million at September 30, 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

		Three months ended				Nine months ended
	September 30,				September 30,
(in millions)	2023		2022		2023		2022
Fair value of net assets at beginning of period	$	12	$	32	$	63	$	44
Sales		—		(1)		(1)		(7)
Settlements		(23)		(25)		(47)		(54)
Total realized/unrealized gains1		45		47		19		70
Fair value of net assets at end of period	$	34	$	53	$	34	$	53

1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.

Valuation techniques and significant inputs

	Fair Value				Significant		Weighted
	(in millions)				Unobservable	Range	Average
	Assets		Liabilities		Input	(per MWh)	(per MWh)
Congestion revenue rights
September 30, 2023	$	34	$	—	CAISO CRR auction prices	$(2.86) - $45.78	$	0.29
December 31, 2022		67		4	CAISO CRR auction prices	(7.91) - 3,856.67		1.64

Long-term debt fair value

	September 30, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	32,471	$	28,700	$	29,639	$	26,824
SCE		28,398		24,688		26,258		23,469

1 Carrying value is net of debt issuance costs.

2 The fair value of long-term debt is classified as Level 2.