Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Regulatory Assets and Liabilities

Regulatory assets

	December 31,
(in millions)	2023		2022
Current:
Regulatory balancing and memorandum accounts	$	2,502	$	2,400
Power contracts		—		71
Other		22		26
Total current		2,524		2,497
Long-term:
Deferred income taxes		5,533		5,178
Unamortized investments, net of accumulated amortization		110		113
Unamortized losses on reacquired debt		99		109
Regulatory balancing and memorandum accounts		1,257		1,589
Environmental remediation		226		241
Recovery assets		1,558		834
Other		114		117
Total long-term		8,897		8,181
Total regulatory assets	$	11,421	$	10,678

Regulatory liabilities

	December 31,
(in millions)	2023		2022
Current:
Regulatory balancing and memorandum accounts	$	704	$	584
Energy derivatives		16		338
Other		43		42
Total current		763		964
Long-term:
Costs of removal		2,635		2,589
Deferred income taxes		2,211		2,250
Recoveries in excess of ARO liabilities		1,498		1,231
Regulatory balancing and memorandum accounts		1,395		1,116
Pension and other postretirement benefits		1,664		1,007
Other		17		18
Total long-term		9,420		8,211
Total regulatory liabilities	$	10,183	$	9,175

Schedule of Regulatory Balancing Accounts

	December 31,
(in millions)	2023		2022
Asset (liability)
Energy procurement related costs	$	397	$	1,104
Public purpose and energy efficiency		(1,736)		(1,577)
GRC related balancing accounts1		1,361		1,034
Wildfire risk mitigation and insurance2		1,169		1,168
Wildfire and drought restoration3		417		352
COVID-19 costs		16		67
Other		36		141
Assets, net of liabilities	$	1,660	$	2,289

1 The GRC related balancing accounts primarily consist of the base revenue requirement balancing account ("BRRBA"), the vegetation management balancing account ("VMBA"), the Wildfire Risk Mitigation balancing account ("WRMBA") and the risk management balancing account ("RMBA").

The 2021 GRC decision approved the establishment of the VMBA to track vegetation management expenses up to 115% of amounts authorized, the WRMBA to track the costs of SCE's Wildfire Covered Conductor Program up to 110% of amounts authorized and the RMBA to track the authorized costs of wildfire insurance. 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 risk mitigation and insurance accounts.

2 The wildfire risk mitigation and insurance 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 was 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 related to the post-2018 wildfires that SCE believes are probable of recovery. See Note 12 for further details. The Wildfire Mitigation Plan Memorandum Account 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 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.

3 The wildfire and drought restoration regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account.