Future decommissioning costs of removal of nuclear assets are expected to be funded from independent decommissioning trusts, which currently receive contributions of approximately $23 million per year included in SCE customer rates. Contributions to the decommissioning trusts are reviewed every three years by the CPUC. If additional funds are needed for decommissioning, it is probable that the additional funds will be recoverable through customer rates. Funds collected, together with accumulated earnings, will be utilized solely for decommissioning. The CPUC has set certain restrictions related to the investments of these trusts.

The following table sets forth amortized cost and fair value of the trust investments:

		Amortized Cost				Fair Value


(in millions)	Longest Maturity Dates	June 30, 2011		December 31, 2010		June 30, 2011		December 31, 2010

Stocks	—	$	862	$	895	$	2,062	$	2,029
Municipal bonds	2050		699		706		812		790
U.S. government and agency securities	2041		396		270		427		288
Corporate bonds	2054		255		288		310		346
Short-term investments and receivables/payables	One-year		44		26		46		27

Total		$	2,256	$	2,185	$	3,657	$	3,480

Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Proceeds from sales of securities (which are reinvested) were $524 million and $315 million for the three months ended June 30, 2011 and 2010, respectively, and $1.1 billion and $600 million for the six months ended June 30, 2011 and 2010, respectively. Unrealized holding gains, net of losses, were $1.4 billion and $1.3 billion at June 30, 2011 and December 31, 2010, respectively.

The following table sets forth a summary of changes in the fair value of the trust:

	Three months ended June 30,						Six months ended June 30,

(in millions)	2011			2010			2011			2010

Balance at beginning of period	$	3,619		$	3,248		$	3,480		$	3,140
Realized gains – net		12			13			35			34
Unrealized gains (losses) – net		4			(205	)		106			(143	)
Other-than-temporary impairments		(4	)		(7	)		(13	)		(11	)
Interest, dividends, contributions and other		26			34			49			63

Balance at end of period	$	3,657		$	3,083		$	3,657		$	3,083

Due to regulatory mechanisms, earnings and realized gains and losses (including other-than-temporary impairments) have no impact on operating revenue or earnings.