Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Measurements

Fair Value by Level within the Fair Value Hierarchy

	December 31, 2023
							Netting
							and
(in millions)	Level 1		Level 2		Level 3		Collateral1		Total
Assets at fair value
Derivative contracts	$	—	$	3	$	91	$	(3)	$	91
Money market funds and other		78		22		—		—		100
Nuclear decommissioning trusts:
Stocks2		1,658		—		—		—		1,658
Fixed Income3		923		1,421		—		—		2,344
Short-term investments, primarily cash equivalents		169		104		—		—		273
Subtotal of nuclear decommissioning trusts4		2,750		1,525		—		—		4,275
Total assets		2,828		1,550		91		(3)		4,466
Liabilities at fair value
Derivative contracts		—		77		—		(77)		—
Total liabilities		—		77		—		(77)		—
Net assets	$	2,828	$	1,473	$	91	$	74	$	4,466

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

3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $106 million and $49 million at December 31, 2023 and 2022, respectively.

4 Excludes net payables of $102 million and $85 million at December 31, 2023 and 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

The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:

	Years ended December 31,
(in millions)	2023		2022
Fair value of net assets at beginning of period	$	63	$	44
Sales		(1)		(8)
Settlements		(40)		(54)
Total realized/unrealized gains1		69		81
Fair value of net assets at end of period	$	91	$	63

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

There were no material transfers into or out of Level 3 during 2023 and 2022.

Valuation techniques and significant inputs

The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:

	Fair Value				Significant		Weighted
	(in millions)				Unobservable	Range	Average
	Assets		Liabilities		Input	(per MWh)	(per MWh)
Congestion revenue rights
December 31, 2023	$	91	$	—	CAISO CRR auction prices	$(6.44) - $16,574.36	$	2.74
December 31, 2022		67		4	CAISO CRR auction prices	(7.91) - 3,856.67		1.64

Long-term debt fair value

The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows:

	December 31, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
(in millions)	Value1		Value2		Value1		Value2
Edison International	$	33,013	$	31,315	$	29,639	$	26,824
SCE		28,494		26,712		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.