10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 30, 2019
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from                        to

Commission File Number	Exact Name of Registrant as specified in its charter	State or Other Jurisdiction of Incorporation or Organization	IRS Employer Identification Number
1-9936	EDISON INTERNATIONAL	California	95-4137452
1-2313	SOUTHERN CALIFORNIA EDISON COMPANY	California	95-1240335

EDISON INTERNATIONAL			SOUTHERN CALIFORNIA EDISON COMPANY
2244 Walnut Grove Avenue			2244 Walnut Grove Avenue
(P.O. Box 976)			(P.O. Box 800)
Rosemead,	California	91770	Rosemead,	California	91770
(Address of principal executive offices)			(Address of principal executive offices)
(626)	302-2222		(626)	302-1212
(Registrant's telephone number, including area code)			(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Edison International        Yes þ No o    Southern California Edison Company    Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Edison International        Yes þ No o    Southern California Edison Company    Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-12 of the Exchange Act. (Check One):
Edison International	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
	þ	☐	☐	☐	☐
Southern California Edison Company	Large Accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller Reporting Company	Emerging growth company
		☐	þ	☐	☐

Securities registered pursuant to Section 12(b) of the Act:

Edison International:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	EIX	NYSE	LLC

Southern California Edison Company:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Cumulative Preferred Stock, 4.08% Series	SCEpB	NYSE American LLC
Cumulative Preferred Stock, 4.24% Series	SCEpC	NYSE American LLC
Cumulative Preferred Stock, 4.32% Series	SCEpD	NYSE American LLC
Cumulative Preferred Stock, 4.78% Series	SCEpE	NYSE American LLC

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Edison International        ☐        Southern California Edison Company        ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Edison International        Yes ☐ No þ    Southern California Edison Company    Yes☐ No þ

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
Common Stock outstanding as of July 23, 2019:
Edison International	325,811,206 shares
Southern California Edison Company	434,888,104 shares

TABLE OF CONTENTS

					SEC Form 10-Q Reference Number
GLOSSARY				iv
FORWARD-LOOKING STATEMENTS				1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS				3	Part I, Item 2
	MANAGEMENT OVERVIEW			3
		Highlights of Operating Results		3
		2018 General Rate Case		4
		Capital Program		4
		Southern California Wildfires and Mudslides		5
	RESULTS OF OPERATIONS			8
	Southern California Edison Company			8
		Impact of 2018 GRC		8
		Three months ended June 30, 2019 versus June 30, 2018		10
			Earning Activities	10
			Cost-Recovery Activities	11
		Six months ended June 30, 2019 versus June 30, 2018		11
			Earning Activities	12
			Cost-Recovery Activities	12
		Supplemental Operating Revenue Information		12
		Income Taxes		13
	Edison International Parent and Other			13
		Loss from Continuing Operations		13
	LIQUIDITY AND CAPITAL RESOURCES			13
	Southern California Edison Company			13
		Available Liquidity		14
		Capital Investment Plan		15
		Regulatory Proceedings		15
		SCE Dividends		16
		Margin and Collateral Deposits		17
		Decommissioning of San Onofre		17
	Edison International Parent and Other			17
	Historical Cash Flows			19
		Southern California Edison Company		19

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		Edison International Parent and Other	21
	Contingencies		22
	MARKET RISK EXPOSURES		22
	Commodity Price Risk		22
	Credit Risk		22
	CRITICAL ACCOUNTING ESTIMATES AND POLICIES		23
	NEW ACCOUNTING GUIDANCE		23
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			23	Part I, Item 3
FINANCIAL STATEMENTS			25	Part I, Item 1
	Edison International Consolidated Statements of Income		25
	Edison International Consolidated Statements of Comprehensive Income		26
	Edison International Consolidated Balance Sheets		27
	Edison International Consolidated Statements of Cash Flows		29
	SCE Consolidated Statements of Income		30
	SCE Consolidated Statements of Comprehensive Income		30
	SCE Consolidated Balance Sheets		31
	SCE Consolidated Statements of Cash Flows		33
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		34
		Note 1. Summary of Significant Accounting Policies	34
		Note 2. Consolidated Statements of Changes in Equity	38
		Note 3. Variable Interest Entities	41
		Note 4. Fair Value Measurements	43
		Note 5. Debt and Equity Financing	47
		Note 6. Derivative Instruments	48
		Note 7. Revenue	50
		Note 8. Income Taxes	51
		Note 9. Compensation and Benefit Plans	52
		Note 10. Investments	53
		Note 11. Regulatory Assets and Liabilities	54
		Note 12. Commitments and Contingencies	56
		Note 13. Leases	65
		Note 14. Accumulated Other Comprehensive Loss	68
		Note 15. Other Income and Expense	69
		Note 16. Supplemental Cash Flows Information	69
		Note 17. Related-Party Transactions	70
CONTROLS AND PROCEDURES			71	Part I, Item 4

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	Disclosure Controls and Procedures	71
	Changes in Internal Control Over Financial Reporting	71
	Jointly Owned Utility Plant	71
LEGAL PROCEEDINGS		71	Part II, Item 1
	Thomas Fire and Koenigstein Fire Litigation	71
	Montecito Mudslides Litigation	71
	Woolsey Fire Litigation	72
RISK FACTORS		72	Part II, Item 1A
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		73	Part II, Item 2
	Purchases of Equity Securities by Edison International and Affiliated Purchasers	73
OTHER INFORMATION		73	Part II, Item 5
EXHIBITS		74	Part II, Item 6
SIGNATURES		75

This is a combined Form 10-Q separately filed by Edison International and Southern California Edison Company. Information contained herein relating to an individual company is filed by such company on its own behalf.

iii

GLOSSARY

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

2017/2018 Wildfire/Mudslide Events	the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, collectively
2018 Form 10-K	Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018
AB 1054	California Assembly Bill 1054, executed by the Governor of California on July 12, 2019
AFUDC	allowance for funds used during construction
ALJ	administrative law judge
ARO(s)	asset retirement obligation(s)
Bcf	billion cubic feet
bonus depreciation	Federal tax deduction of a percentage of the qualifying property placed in service during periods permitted under tax laws
BRRBA	Base Revenue Requirement Balancing Account
CAISO	California Independent System Operator
Cal Advocates	CPUC's Public Advocates Office (formerly known as the Office of Ratepayer Advocates or ORA)
CAL FIRE	California Department of Forestry and Fire Protection
CCAs	Community Choice Aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses
Commission on Catastrophic Wildfire Cost and Recovery	Commission on Catastrophic Wildfire Cost and Recovery established by the California Governor’s Office of Planning and Research as required by California Senate Bill 901
CPUC	California Public Utilities Commission
December 2017 Wildfires	several wind-driven wildfires, including the Thomas Fire and the Koenigstein Fire, that occurred in December 2017 and impacted portions of SCE's service territory
DERs	distributed energy resources
DOE	U.S. Department of Energy
DRP	Distributed Resources Plan
Edison Energy	Edison Energy, LLC, a wholly-owned subsidiary of Edison Energy Group that advises and provides energy solutions to large energy users
Edison Energy Group	Edison Energy Group, Inc., a wholly-owned subsidiary of Edison International, is a holding company for subsidiaries engaged in competitive businesses that provide energy services to commercial and industrial customers
EME	Edison Mission Energy
EME Settlement Agreement	Settlement Agreement by and among Edison Mission Energy, Edison International and the Consenting Noteholders identified therein, dated February 18, 2014
Electric Service Provider	an entity that offers electric power and ancillary services to customers that take final delivery of electric power and do not resell the power
ERRA	Energy Resource Recovery Account
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
Fitch	Fitch Ratings, Inc.
GAAP	generally accepted accounting principles
GHG	greenhouse gas
GRC	general rate case
GS&RP	Grid Safety and Resiliency Program
GWh	gigawatt-hours
HLBV	hypothetical liquidation at book value

iv

IRS	Internal Revenue Service
Joint Proxy Statement	Edison International's and SCE's definitive Proxy Statement filed with the SEC in connection with Edison International's and SCE's Annual Shareholders' Meeting held on April 25, 2019
Koenigstein Fire	a wind-driven fire that originated near Koenigstein Road in the City of Santa Paula in Ventura County on December 4, 2017
Liability Cap	If the insurance fund allowed under AB 1054 is established, and subject to certain other conditions, a cap on the aggregate requirement to reimburse the insurance fund over a trailing three calendar year period equal to 20% of the equity portion of the utility’s transmission and distribution rate base in the year of the prudency determination
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations in this report
MHI	Mitsubishi Heavy Industries, Inc. and related companies
Montecito Mudslides	the mudslides and flooding in Montecito, Santa Barbara County, that occurred in January 2018
Moody's	Moody's Investors Service, Inc.
MW	megawatts
MWdc	megawatts measured for solar projects representing the accumulated peak capacity of all the solar modules
NDCTP	Nuclear Decommissioning Cost Triennial Proceeding
NEIL	Nuclear Electric Insurance Limited
NEM	net energy metering
NERC	North American Electric Reliability Corporation
NOL	net operating loss
NRC	Nuclear Regulatory Commission
OII	Order Instituting Investigation
OII Parties	SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, Cal Advocates, TURN, and Women's Energy Matters, all of whom are parties to the Revised San Onofre Settlement Agreement
Palo Verde	nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
PBOP(s)	postretirement benefits other than pension(s)
PCIA	Power Charge Indifference Adjustment
PG&E	Pacific Gas & Electric Company
Prior San Onofre Settlement Agreement	San Onofre OII Settlement Agreement by and among TURN, Cal Advocates, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth, dated November 20, 2014
Revised San Onofre Settlement Agreement	Revised San Onofre OII Settlement Agreement among OII Parties, dated January 30, 2018 and modified on August 2, 2018
ROE	return on common equity
S&P	Standard & Poor's Financial Services LLC
San Onofre	retired nuclear generating facility located in south San Clemente, California in which SCE holds a 78.21% ownership interest
SCE	Southern California Edison Company, a wholly-owned subsidiary of Edison International
SDG&E	San Diego Gas & Electric
SEC	U.S. Securities and Exchange Commission
SED	Safety and Enforcement Division of the CPUC
SoCalGas	Southern California Gas Company
SoCore Energy	SoCore Energy LLC, a former subsidiary of Edison Energy Group that was sold in April 2018
TAMA	Tax Accounting Memorandum Account
Tax Reform	Tax Cuts and Jobs Act signed into law on December 22, 2017

v

Thomas Fire	a wind-driven fire that originated in the Anlauf Canyon area Ventura County on December 4, 2017
TOU	Time-Of-Use
TURN	The Utility Reform Network
US EPA	U.S. Environmental Protection Agency
VCFD	The Ventura County Fire Department
WMP	a wildfire mitigation plan required to be filed every three years under California Assembly Bill 1054 to describe a utility's plans to construct, operate, and maintain electrical lines and equipment that will help minimize the risk of catastrophic wildfires caused by such electrical lines and equipment
Woolsey Fire	a wind-driven fire that originated in Ventura County in November 2018

vi

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Edison International's and SCE's current expectations and projections about future events based on Edison International's and SCE's knowledge of present facts and circumstances and assumptions about future events and include any statements that do not directly relate to a historical or current fact. Other information distributed by Edison International and SCE that is incorporated in this report, or that refers to or incorporates this report, may also contain forward-looking statements. In this report and elsewhere, the words "expects," "believes," "anticipates," "estimates," "projects," "intends," "plans," "probable," "may," "will," "could," "would," "should," and variations of such words and similar expressions, or discussions of strategy or plans, are intended to identify forward-looking statements. Such statements necessarily involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Some of the risks, uncertainties and other important factors that could cause results to differ from those currently expected, or that otherwise could impact Edison International and SCE, include, but are not limited to the:

• ability of SCE to recover its costs through regulated rates, including costs related to uninsured wildfire-related and mudslide-related liabilities and capital spending incurred prior to formal regulatory approval;

• ability to obtain sufficient insurance at a reasonable cost, including insurance relating to SCE's nuclear facilities and wildfire-related claims, and to recover the costs of such insurance or, in the event liabilities exceed insured amounts, the ability to recover uninsured losses from customers or other parties;

• risks associated with AB 1054 effectively mitigating the significant risk faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are a substantial cause, including the ability of SCE and SDG&E to raise the funds required to make initial contributions to the insurance fund under AB 1054, SCE's ability to maintain a valid safety certification, SCE's ability to recover uninsured wildfire-related costs from the wildfire fund established under AB 1054, and the CPUC's interpretation of and actions under AB 1054;

• decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities, including decisions and actions related to determinations of authorized rates of return or return on equity, the GS&RP application, the recoverability of wildfire-related and mudslide-related costs, and delays in regulatory actions;

• ability of Edison International or SCE to borrow funds and access the bank and capital markets on reasonable terms;

• actions by credit rating agencies to downgrade Edison International or SCE's credit ratings or to place those ratings on negative watch or outlook;

• risks associated with the decommissioning of San Onofre, including those related to public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel, delays, contractual disputes, and cost overruns;

• extreme weather-related incidents and other natural disasters (including earthquakes and events caused, or exacerbated, by climate change, such as wildfires), which could cause, among other things, public safety issues, property damage and operational issues;

• risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as CCAs and Electric Service Providers;

• risks inherent in SCE's transmission and distribution infrastructure investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, power curtailment costs (payments due under power contracts in the event there is insufficient transmission to enable acceptance of power delivery), changes in the CAISO's transmission plans, and governmental approvals;

• risks associated with the operation of transmission and distribution assets and power generating facilities, including public and employee safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts;

• physical security of Edison International's and SCE's critical assets and personnel and the cybersecurity of Edison International's and SCE's critical information technology systems for grid control, and business, employee and customer data;

• ability of Edison International to develop competitive businesses, manage new business risks, and recover and earn a return on its investment in newly developed or acquired businesses;

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• changes in tax laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could affect recorded deferred tax assets and liabilities and effective tax rate;

• changes in the fair value of investments and other assets;

• changes in interest rates and rates of inflation, including escalation rates (which may be adjusted by public utility regulators);

• governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the NERC, CAISO, Western Electricity Council, and similar regulatory bodies in adjoining regions, and changes in California's environmental priorities that lessen the importance the state places on GHG reduction;

• availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations;

• cost and availability of labor, equipment and materials;

• potential for penalties or disallowance for non-compliance with applicable laws and regulations; and

• cost of fuel for generating facilities and related transportation, which could be impacted by, among other things, disruption of natural gas storage facilities, to the extent not recovered through regulated rate cost escalation provisions or balancing accounts.

Additional information about risks and uncertainties, including more detail about the factors described in this report, is contained throughout this report and in the 2018 Form 10-K, including the "Risk Factors" section. Readers are urged to read this entire report, including information incorporated by reference, as well as the 2018 Form 10-K, and carefully consider the risks, uncertainties, and other factors that affect Edison International's and SCE's businesses. Forward-looking statements speak only as of the date they are made and neither Edison International nor SCE are obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by Edison International and SCE with the SEC. Edison International and SCE provide direct links to certain SCE and other parties' regulatory filings and documents with the CPUC and the FERC and certain agency rulings and notices in open proceedings at www.edisoninvestor.com (SCE Regulatory Highlights) so that such filings, rulings and notices are available to all investors. Edison International and SCE post or provide direct links to certain documents and information related to Southern California wildfires which may be of interest to investors at www.edisoninvestor.com (Southern California Wildfires) in order to publicly disseminate such information. Edison International and SCE also routinely post or provide direct links to presentations, documents and other information that may be of interest to investors at www.edisoninvestor.com (Events and Presentations) in order to publicly disseminate such information.

The MD&A for the six months ended June 30, 2019 discusses material changes in the consolidated financial condition, results of operations and other developments of Edison International and SCE since December 31, 2018 and as compared to the six months ended June 30, 2018. This discussion presumes that the reader has read or has access to Edison International's and SCE's MD&A for the calendar year 2018 (the "year-ended 2018 MD&A"), which was included in the 2018 Form 10-K.

Except when otherwise stated, references to each of Edison International, SCE, or Edison Energy Group mean each such company with its subsidiaries on a consolidated basis. References to "Edison International Parent and Other" mean Edison International Parent and its consolidated competitive subsidiaries and "Edison International Parent" mean Edison International on a stand-alone basis, not consolidated with its subsidiaries.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT OVERVIEW

Highlights of Operating Results

Edison International is the parent holding company of SCE and Edison Energy Group. SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its competitive subsidiaries. Unless otherwise described, all the information contained in this report relates to both filers.

	Three months ended June 30,									Six months ended June 30,
(in millions)	2019			2018			Change			2019			2018			Change
Net income (loss) attributable to Edison International
Continuing operations
SCE	$	419		$	297		$	122		$	712		$	583		$	129
Edison International Parent and Other	(27		)	(21		)	(6		)	(42		)	(89		)	47
Edison International	392			276			116			670			494			176
Less: Non-core items
SCE	(123		)	—			(123		)	(51		)	—			(51		)
Edison International Parent and Other	—			2			(2		)	—			(42		)	42
Total non-core items	(123		)	2			(125		)	(51		)	(42		)	(9		)
Core earnings (losses)
SCE	542			297			245			763			583			180
Edison International Parent and Other	(27		)	(23		)	(4		)	(42		)	(47		)	5
Edison International	$	515		$	274		$	241		$	721		$	536		$	185

Edison International's earnings are prepared in accordance with GAAP. Management uses core earnings (losses) internally for financial planning and for analysis of performance. Core earnings (losses) are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Core earnings (losses) are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings (losses) are defined as earnings attributable to Edison International shareholders less non-core items. Non-core items include income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as write downs, asset impairments and other gains and losses related to certain tax, regulatory or legal settlements or proceedings, and exit activities, including sale of certain assets and other activities that are no longer continuing.

Edison International's second quarter 2019 earnings increased $116 million from the second quarter of 2018, resulting from an increase in SCE's earnings of $122 million partially offset by an increase in Edison International Parent and Other's losses of $6 million. SCE's higher earnings consisted of $123 million of higher non-core losses and $245 million of higher core earnings. The increase in core earnings was primarily due to the adoption of the 2018 GRC final decision in the second quarter of 2019, the timing of regulatory deferrals related to wildfire insurance and wildfire mitigation costs and higher revenue due to a change in estimate under the FERC formula rate mechanism. The higher non-core losses related to an impairment charge of $170 million ($123 million after-tax) resulting from the disallowance of certain historical capital expenditures in SCE's 2018 GRC final decision.

Edison International's earnings for the six months ended June 30, 2019 increased $176 million from the six months ended June 30, 2018, resulting from an increase in SCE's earnings of $129 million and a decrease in Edison International Parent and Other's losses of $47 million. SCE's higher earnings consisted of $51 million of higher non-core losses and $180 million of higher core earnings. The increase in core earnings was primarily due to the adoption of the 2018 GRC final decision in the

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second quarter of 2019, the timing of regulatory deferral and cost recovery of wildfire insurance costs and higher revenue due to a change in estimate under the FERC formula rate mechanism, partially offset by higher wildfire mitigation costs in 2019.

Edison International Parent and Other's increase in losses for the three months ended June 30, 2019 was due to higher core losses of $4 million and lower non-core income of $2 million.

Edison International Parent and Other's decrease in losses for the six months ended June 30, 2019 was due to lower core losses of $5 million and lower non-core losses of $42 million.

Consolidated non-core items for the six months ended June 30, 2019 and 2018 primarily included:

• An impairment charge of $170 million ($123 million after-tax) recorded in 2019 for SCE related to disallowed historical capital expenditures in SCE's 2018 GRC final decision.

• Income tax benefits of $69 million recorded in 2019 for SCE related to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates and other deferred tax re-measurement belongs to shareholders.

• Loss of $63 million ($46 million after-tax) recorded in 2018 for Edison International Parent and Other related to sale of SoCore Energy in April 2018.

2018 General Rate Case

In May 2019, the CPUC approved a final decision in SCE's 2018 GRC. The final decision authorized a revenue requirement of $5.116 billion for 2018 and identified changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The final decision also disallowed certain historical spending, largely related to specific pole replacements the CPUC determined were performed prematurely.

The final decision allows a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It also allows operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the final decision results in a revenue requirement of $5.451 billion in 2019 and $5.863 billion in 2020.

The revenue requirements in the 2018 GRC final decision are retroactive to January 1, 2018. SCE recorded the prior period impact of the 2018 GRC final decision in the second quarter of 2019, including an increase to core earnings of $131 million from the application of the decision to revenue, depreciation expense and income tax expense and a non-core impairment of utility property, plant and equipment of $170 million ($123 million after-tax) related to disallowed historical capital expenditures. See “Results of Operations—SCE” and "Notes to Consolidated Financial Statements—Note 11. Regulatory Assets and Liabilities" for further information.

Capital Program

Total capital expenditures (including accruals) were $2.0 billion and $1.9 billion for the first six months of 2019 and 2018, respectively.

SCE's capital expenditure forecast for 2019 and 2020 has been updated since the filing of the 2018 Form 10-K to reflect planned CPUC jurisdictional spending as informed by the 2018 GRC final decision, including authorized capitalization rates, spending associated with SCE's wildfire mitigation-related capital expenditures under the GS&RP and WMP, and increased FERC spending for inspections, maintenance, and physical plant.

The table below includes $387 million and a range of $500 million to $700 million of capital expenditures related to wildfire mitigation for 2019 and 2020, respectively. The CPUC has approved SCE's 2019 WMP and authorized tracking of costs related to the GS&RP and 2019 WMP through memorandum accounts. SCE has also proposed a balancing account for its GS&RP spending. If SCE's proposed balancing account in its GS&RP application is approved, forecasted costs for the GS&RP will be included in rates with a subsequent reasonableness review through the annual ERRA proceeding. SCE continues to evaluate wildfire mitigation spending and anticipates that in 2019 the CPUC will issue a decision on the GS&RP. SCE anticipates that wildfire mitigation spending not addressed in balancing accounts will be addressed in future GRC applications or through other regulatory proceedings.

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SCE forecasts capital expenditures for 2019 – 2020 to be approximately $9.3 billion to $9.5 billion. SCE's 2019 – 2020 forecast for major capital expenditures are set forth in the table below:

(in millions)	2019		2020		Total 2019 – 2020
Distribution	$	3,224	$	3,162	$	6,386
Transmission	792		852		1,644
Generation	201		215		416
Subtotal	4,217		4,229		8,446
Estimated wildfire mitigation-related capital expenditures1	387		500 – 700		887 – 1,087
Total estimated capital expenditures	$	4,604	$4,729 – $4,929		$9,333 – $9,533

¹ Includes FERC wildfire mitigation-related expenditures of $13 million and $5 million for 2019 and 2020, respectively.

SCE's authorized CPUC-jurisdictional rate base is determined through the GRC and other regulatory proceedings. Differences between actual and CPUC authorized capital expenditures are addressed in subsequent GRC or other regulatory proceedings. FERC-jurisdictional rate base is generally determined based on actual capital expenditures.

Reflected below is SCE's weighted average annual rate base for 2018 – 2020 incorporating CPUC capital expenditures authorized in the 2018 GRC final decision and expected FERC capital expenditures. Under AB 1054, approximately $1.6 billion of wildfire risk mitigation capital expenditures cannot be included in the equity portion of SCE's rate base. Accordingly, the table below does not reflect wildfire capital expenditures.

(in millions)	2018		2019		2020
Rate base for expected capital expenditures	$	28,456	$	30,678	$	33,416

Southern California Wildfires and Mudslides

Multiple factors have contributed to increased wildfires, faster progression of wildfires and the increased damage from wildfires across SCE's service territory and throughout California. These include the buildup of dry vegetation in areas severely impacted by years of historic drought, lack of adequate clearing of hazardous fuels by responsible parties, higher temperatures, lower humidity, and strong Santa Ana winds. At the same time that wildfire risk has been increasing in Southern California, residential and commercial development has occurred and is occurring in some of the highest-risk areas. Such factors can increase the likelihood and extent of wildfires.

SCE has determined that approximately 27% of its service territory is in areas identified as high fire risk (“HFRA”). The reduction of the areas identified by SCE as HFRA from 35% to 27% of its service territory resulted from a thorough evaluation of the areas after the CPUC released its High Fire-Threat District maps in 2018.

In December 2017 and November 2018, wind-driven wildfires impacted portions of SCE's service territory, causing substantial damage to both residential and business properties and service outages for SCE customers. The investigating government agencies, the VCFD and CAL FIRE, have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by the Koenigstein Fire. While the progression of these two fires remains under review, the December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. The largest of the November 2018 fires, known as the Woolsey Fire, originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties.

In March 2019, the VCFD and CAL FIRE issued separate reports finding that the Thomas Fire and the Koenigstein Fire were each caused by SCE equipment. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the start time of the Thomas Fire indicated in the Thomas Fire report, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE has previously disclosed that SCE believed its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the progression of the Thomas and Koenigstein Fires and the extent of damages that may be attributable to each fire.

Multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have

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responsibility for the damages caused by the Montecito Mudslides based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides.

SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is ongoing, and SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes. Final determinations of liability for the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire, including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes.

Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require a liability to be accrued under accounting standards. Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the 2017/2018 Wildfire/Mudslide Events and have accrued a liability of $4.7 billion in the fourth quarter of 2018. This liability corresponds to the lower end of the reasonably estimated range of expected potential losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available.

Edison International and SCE will seek to offset any actual losses realized in connection with the 2017/2018 Wildfire/Mudslide Events with recoveries from insurance policies in place at the time of the events and, to the extent actual losses exceed insurance, through electric rates. In the fourth quarter of 2018, Edison International and SCE also recorded expected recoveries from insurance of $2.0 billion and expected recoveries through FERC electric rates of $135 million, which is the FERC portion of the $4.7 billion liability it accrued. SCE believes that, in light of the CPUC's decision in a cost recovery proceeding involving SDG&E arising from several 2007 wildfires in SDG&E's service area, there is substantial uncertainty regarding how the CPUC will interpret and apply its prudency standard to an investor-owned utility in future wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. Accordingly, while the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates.

Edison International and SCE continue to pursue legislative, regulatory and legal strategies to address the application of a strict liability standard to wildfire-related damages without the ability to recover resulting costs in electric rates.

2019 Wildfire Legislation

On July 12, 2019, AB 1054 was signed by the Governor of California and became effective immediately. The summary of the wildfire legislation in this report is based on SCE’s interpretation of the legislation and is qualified in its entirety by, and should be read together with, AB 1054 and companion Assembly Bill 111.

AB 1054 establishes a wildfire fund to reimburse utilities for payment of third-party damage claims arising from certain wildfires that exceed, in aggregate in a calendar year, the greater of $1 billion or the utility's insurance coverage. The wildfire fund will only be available for claims related to wildfires ignited after July 12, 2019 that are determined to have been caused by a utility by the responsible government investigatory agency.

The wildfire fund can take one of two forms, an insurance fund or a liquidity fund. SCE, PG&E and SDG&E have notified the CPUC of their commitment to the insurance fund. The insurance fund will be established if both SCE and SDG&E make their initial contributions to the fund by September 10, 2019. If either SCE or SDG&E fail to make their initial contributions by the required date, the insurance fund will not be established and the wildfire fund will be a liquidity fund.

Insurance Fund

The insurance fund, if it is established, is expected to be initially funded by $10.5 billion to be contributed by ratepayers and $7.5 billion in initial contributions from PG&E, SCE and SDG&E. PG&E's participation in, and contributions to, the insurance fund is subject to it emerging from bankruptcy and meeting certain other conditions prior to June 30, 2020. If PG&E is unable to participate in the fund, the investor-owned utility initial contributions to the fund are expected to be approximately $2.7 billion. SCE, SDG&E and PG&E are also expected to make aggregate annual contributions of $3 billion to the insurance fund over a 10-year period. If PG&E is unable to participate in the fund, the investor-owned utility aggregate annual contributions to the fund are expected to be approximately $1 billion.

SCE has committed to make an initial contribution of approximately $2.4 billion by September 10, 2019, and ten annual contributions of approximately $95 million per year starting on January 1, 2020, to the insurance fund. Edison International and SCE are evaluating funding options to support SCE's initial contribution to the insurance fund and anticipate raising

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approximately $1.2 billion from the issuance of Edison International equity and approximately $1.2 billion from the issuance of long-term debt at SCE. SCE's contributions to the insurance fund will not be recoverable through electric rates and will be excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. SCE will also not be entitled to cost recovery for any borrowing costs incurred in connection with its contributions to the insurance fund. Edison International and SCE are currently evaluating the accounting impact of SCE's anticipated contributions to the insurance fund, which may include a material charge to the earnings of Edison International and SCE that would not be greater than the total of SCE's anticipated contributions to the insurance fund.

Participating investor-owned utilities will be reimbursed from the insurance fund for eligible claims, subject to the fund administrator’s review, and will be required to reimburse the insurance fund for withdrawn amounts that the CPUC disallows up to the Liability Cap. A utility will not be eligible for the Liability Cap if it does not maintain a valid safety certification or its actions or inactions that resulted in the wildfire are found to constitute conscious or willful disregard of the rights and safety of others. On July 25, 2019, SCE obtained its initial safety certification that will be valid for twelve months. The initial Liability Cap for SCE will be approximately $2.5 billion based on its 2019 rate base, and will be adjusted annually. SCE will not be allowed to recover borrowing costs incurred to reimburse the fund for amounts that the CPUC disallows. The insurance fund and, consequently the Liability Cap, will terminate when the administrator determines that the insurance fund has been exhausted.

AB 1054 Prudency Standard

If the insurance fund is established, AB 1054 creates a new standard that the CPUC must apply to determine whether a utility was prudent and therefore able to recover wildfire costs through the insurance fund or, if the insurance fund has been exhausted, through electric rates. The new standard, if it is established, will apply to requests for recovery of wildfire costs for wildfires ignited after July 12, 2019. Under AB 1054, prudent conduct occurs when the conduct of a utility related to the ignition was consistent with actions that a reasonable utility would have undertaken under similar circumstances, at the relevant point in time, and based on the information available at that time. Utilities with a valid safety certification will be presumed to have acted prudently related to a wildfire ignition unless a party in the cost recovery proceeding creates serious doubt as to the reasonableness of the utility's conduct, at which time, the burden shifts back to the utility to prove its conduct was reasonable. If a utility does not have a valid safety certification, it will have the burden to prove, based on a preponderance of evidence, that its conduct was prudent.

Liquidity Fund

If either SCE or SDG&E fail to make their initial contributions to the wildfire fund by September 10, 2019, the wildfire fund will be a liquidity fund and is expected to be capitalized solely by a $10.5 billion ratepayer contribution to provide a line of credit to reimburse investor-owned utilities initially for the payment of eligible claims. Utilities will be required to repay amounts reimbursed by the liquidity fund after the CPUC conducts a prudency review under the prudency standard applied by the CPUC before the adoption of AB 1054 and California Senate Bill 901. Amounts repaid that the CPUC determines were prudently incurred will be recoverable thorough electric rates. SCE will not be allowed to recover borrowing costs incurred to repay the fund for amounts that the CPUC disallows.

Capital Expenditure Requirement

Under AB 1054, approximately $1.6 billion spent by SCE on wildfire risk mitigation capital expenditures cannot be included in the equity portion of SCE's rate base. SCE can apply for an irrevocable order from the CPUC to finance these capital expenditures, including through the issuance of securitized bonds, and can recover any prudently incurred financing costs. SCE expects to finance this capital requirement by issuing securitized bonds.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides" and "Legal Proceedings."

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RESULTS OF OPERATIONS

SCE

SCE's results of operations are derived mainly through two sources:

• Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

• Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.

Impact of 2018 GRC

Upon receipt of the 2018 GRC final decision in May 2019, SCE recorded the impact retroactive to January 1, 2018, which increased core earnings by $131 million primarily due to the application of the 2018 GRC final decision to revenue, depreciation expense and income tax expense. Depreciation expense decreased as a result of lower authorized depreciation rates. An increase in the authorized revenue requirement for income tax expenses offsets income tax expenses recognized during 2018 and the first quarter of 2019. SCE also recorded an impairment charge of $170 million ($123 million after-tax) related primarily to the write-off of specific pole replacements the CPUC determined were performed prematurely.

The 2018 GRC final decision determines the amount of revenue that SCE is authorized to collect from customers to recover anticipated costs, including return on rate base. The 2018 GRC final decision approved an authorized revenue requirement of $5.116 billion for 2018, the first year (Test Year) of the three-year GRC period, and authorized annual increases under a set escalation mechanism based on labor, non-labor and medical expenses.

In the absence of a 2018 GRC final decision, SCE recognized revenue in 2018 and the first quarter of 2019 based on the 2017 authorized revenue requirement, adjusted for items SCE determined to be probable of occurring, primarily the July 2017 cost of capital decision and Tax Reform. Adjustments were also made to 2017 authorized revenue to reflect changes in authorized tax benefits for certain balancing accounts.

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As indicated in the table below, authorized revenue in the 2018 GRC final decision is less than the amount recognized in 2018:

(in millions)	2017 Authorized Revenue		Adjustments			2018 Revenue Recognized in Form 10-K			2018 Test Year Authorized Revenue			Adjustment to 2018 Revenue recorded in 2019
Authorized revenue	$	5,640	$	(235	)	$	5,405		$	5,116		$	(289	)	1
Cost of service:
Operation and maintenance	1,931		(11		)	1,920			1,582			(338		)	2
Depreciation	1,575		59			1,634			1,579			(55		)	3
Property and payroll taxes	285		9			294			315			21
Income taxes	257		(287		)	(30		)	(19		)	11
Authorized return	1,592		(5		)	1,587			1,659			72
Total authorized revenue	$	5,640	$	(235	)	$	5,405		$	5,116		$	(289	)

¹  The change in authorized revenue in the Test Year is comprised of $129 million in earnings activities and $160 million in cost recovery activities.

²  Authorized revenue for operation and maintenance costs decreased due to:

• $178 million reduction for earnings activities primarily from SCE's initiatives to improve operational efficiency, which has resulted in lower forecasted costs than included in the 2017 authorized amounts.

• $160 million reduction in cost-recovery activities, which do not impact earnings, primarily for medical and employee benefit costs.

³ Authorized revenue for depreciation decreased, as discussed above.

After the application of escalation factors to the Test Year, the CPUC authorized SCE to collect $5.451 billion from customers in 2019. During the second quarter of 2019, SCE recorded a reduction of revenue of $265 million to reflect $289 million of lower authorized revenue related to 2018 and $24 million of higher authorized revenue in 2019. The 2018 GRC final decision is retroactive to January 1, 2018 and the reduction of revenue contributes to a refund to customers of $554 million, which SCE recorded as a regulatory liability as of June 30, 2019. SCE expects to refund these amounts to customers through December 2020.

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The following table is a summary of SCE's results of operations for the periods indicated.

Three months ended June 30, 2019 versus June 30, 2018

	Three months ended June 30, 2019									Three months ended June 30, 2018
(in millions)	Earning Activities			Cost- Recovery Activities			Total Consolidated			Earning Activities			Cost-Recovery Activities			Total Consolidated
Operating revenue	$	1,537		$	1,263		$	2,800		$	1,535		$	1,268		$	2,803
Purchased power and fuel	—			1,135			1,135			—			1,112			1,112
Operation and maintenance	425			146			571			512			182			694
Depreciation and amortization	320			—			320			462			—			462
Property and other taxes	93			—			93			97			—			97
Impairment and other	170			—			170			—			—			—
Other operating income	(2		)	—			(2		)	(1		)	—			(1		)
Total operating expenses	1,006			1,281			2,287			1,070			1,294			2,364
Operating income	531			(18		)	513			465			(26		)	439
Interest expense	(187		)	(1		)	(188		)	(162		)	(2		)	(164		)
Other income and expense	37			19			56			22			28			50
Income before income taxes	381			—			381			325			—			325
Income tax benefit	(68		)	—			(68		)	(2		)	—			(2		)
Net income	449			—			449			327			—			327
Preferred and preference stock dividend requirements	30			—			30			30			—			30
Net income available for common stock	$	419		$	—		$	419		$	297		$	—		$	297
Net income available for common stock							$	419								$	297
Less: Non-core earnings							(123		)							—
Core earnings1							$	542								$	297

¹  See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."

Earning Activities

Earning activities were primarily affected by the following:

• Higher operating revenue of $2 million primarily due to the following:

• A decrease in CPUC-related revenue of $4 million primarily due to the adoption of the 2018 GRC final decision. SCE recorded a reduction in revenue of $67 million in the second quarter of 2019 comprised of a decrease of $129 million attributable to the Test Year, as discussed above, partially offset by a $62 million increase attributable to 2019. The remaining change is primarily due to SCE recording revenue in 2019 based on the 2018 final GRC decision in comparison to recording revenue in 2018 based on 2017 authorized revenue, adjusted as discussed above. 

• An increase of $6 million in FERC and other operating revenue primarily due to higher operating costs subject to balancing account treatment and higher revenue due to a change in estimate under the FERC formula rate mechanism, partially offset by lower other operating revenue due to rate adjustments implemented in the second quarter of 2019.

• Lower operation and maintenance costs of $87 million primarily due to the timing of regulatory deferrals related to wildfire insurance and wildfire mitigation costs and the impact of the adoption of the 2018 GRC final decision primarily due to a change in capitalization rates, partially offset by higher vegetation management costs.

• Lower depreciation and amortization expense of $142 million primarily due to the change in depreciation rates and the impact of disallowed historical capital expenditures from the adoption of the 2018 GRC final decision.

• Higher impairment and other of approximately $170 million related to the disallowed historical capital expenditures discussed above.

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• Higher interest expense of $25 million primarily due to increased borrowings and higher interest on balancing account overcollections.

• Higher other income and expense of $15 million primarily due to higher equity AFUDC.

• Higher income tax benefits of $66 million primarily as a result of the adoption of the 2018 GRC final decision primarily due to tax benefits on property-related items.

Cost-Recovery Activities

Cost-recovery activities were primarily affected by the following:

• Higher purchased power and fuel costs of $23 million primarily driven by lower congestion revenue right credits, higher charges from contract terminations and the absence of settlement funds received in 2018 related to the California energy crisis, partially offset by lower load and capacity costs related to customer departures to CCAs and cooler weather.

• Lower operation and maintenance costs of $36 million primarily driven by lower employee-related expenses subject to balancing accounts and less spending on customer service programs, partially offset by higher transmission access charges.

• Lower other income and expense of $9 million primarily driven by lower net periodic benefit income related to the non-service cost components for SCE's other post-retirement benefit plans. See "Notes to Consolidated Financial Statements—Note 9. Compensation and Benefit Plans" for further information.

Six months ended June 30, 2019 versus June 30, 2018

	Six months ended June 30, 2019									Six months ended June 30, 2018
(in millions)	Earning Activities			Cost- Recovery Activities			Total Consolidated			Earning Activities			Cost-Recovery Activities			Total Consolidated
Operating revenue	$	3,087		$	2,529		$	5,616		$	3,048		$	2,309		$	5,357
Purchased power and fuel	—			2,140			2,140			—			2,038			2,038
Operation and maintenance	1,014			426			1,440			1,021			324			1,345
Depreciation and amortization	800			—			800			921			—			921
Property and other taxes	202			—			202			202			—			202
Impairment and other	166			—			166			—			—			—
Other operating income	(3		)	—			(3		)	(2		)	—			(2		)
Total operating expenses	2,179			2,566			4,745			2,142			2,362			4,504
Operating income	908			(37		)	871			906			(53		)	853
Interest expense	(365		)	(1		)	(366		)	(317		)	(2		)	(319		)
Other income and expense	56			38			94			46			55			101
Income before income taxes	599			—			599			635			—			635
Income tax benefit	(173		)	—			(173		)	(8		)	—			(8		)
Net income	772			—			772			643			—			643
Preferred and preference stock dividend requirements	60			—			60			60			—			60
Net income available for common stock	$	712		$	—		$	712		$	583		$	—		$	583
Net income available for common stock							$	712								$	583
Less: Non-core earnings							(51		)							—
Core earnings1							$	763								$	583

¹  See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."

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Earning Activities

Earning activities were primarily affected by the following:

• Higher operating revenue of $39 million primarily due to the following:

• An increase in CPUC-related revenue of $21 million primarily due to the adoption of the 2018 GRC final decision. SCE recorded a reduction in revenue of $67 million in the second quarter of 2019 comprised of a decrease of $129 million attributable to the Test Year, as discussed above, partially offset by a $62 million increase attributable to 2019. The remaining change is primarily due to SCE recording revenue in 2019 based on the 2018 final GRC decision in comparison to recording revenue in 2018 based on 2017 authorized revenue adjusted as discussed above.

• An increase of $18 million in FERC revenue primarily due to higher operating costs subject to balancing account treatment and higher revenue due to a change in estimate under the FERC formula rate mechanism, partially offset by lower other operating revenue due to rate adjustments implemented in the second quarter of 2019.

• Lower operation and maintenance costs of $7 million primarily due to the timing of regulatory deferral and cost recovery of wildfire insurance expenses and the impact of the adoption of the 2018 GRC final decision primarily due to a change in capitalization rates, offset by higher wildfire mitigation costs and vegetation management.

• Lower depreciation and amortization expense of $121 million primarily due to the change in depreciation rates and the impact of disallowed historical capital expenditures from the adoption of the 2018 GRC final decision.

• Higher impairment and other of $166 million primarily related to the disallowed historical capital expenditures discussed above.

• Higher interest expense of $48 million primarily due to increased borrowings and higher interest on balancing account overcollections.

• Higher other income and expense of $10 million primarily due to higher equity AFUDC.

• Higher income tax benefits of $165 million primarily due to higher income tax benefits of $80 million as a result of the adoption of the 2018 GRC final decision primarily due to tax benefits on property-related items and the impact of tax expense on lower pre-tax income.

Cost-Recovery Activities

Cost-recovery activities were primarily affected by the following:

• Higher purchased power and fuel costs of $102 million primarily driven by lower congestion revenue right credits, higher charges from contract terminations and the absence of settlement funds received in 2018 related to the California energy crisis, partially offset by lower load and capacity costs related to customer departures to CCAs and cooler weather.

• Higher operation and maintenance costs of $102 million primarily driven by the authorization to recover 2018 wildfire insurance costs that had been deferred as regulatory assets and higher transmission access charges, partially offset by lower employee-related expenses subject to balancing accounts.

• Lower other income and expense of $17 million primarily driven by lower net periodic benefit income related to the non-service cost components for SCE's other post-retirement benefit plans. See "Notes to Consolidated Financial Statements—Note 9. Compensation and Benefit Plans" for further information.

Supplemental Operating Revenue Information

SCE's retail billed and unbilled revenue (excluding wholesale sales) was $2.6 billion for both the three months ended June 30, 2019 and 2018, and $5.2 billion and $5.0 billion for the six months ended June 30, 2019 and 2018, respectively.

The increase for the six months ended June 30, 2019 compared to the same period in 2018 is primarily related to higher cost-recovery activities related to 2018 wildfire insurance costs and higher purchased power and fuel costs driven by higher power and gas prices, lower congestion revenue right credits and higher charges from contract amendments, partially offset by lower load related to cooler weather. See "—Cost-Recovery Activities" for further details.

As a result of the CPUC-authorized decoupling mechanism, SCE earnings are not affected by changes in retail electricity sales.

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Income Taxes

SCE's income tax benefit increased by $66 million and $165 million for the three and six months ended June 30, 2019, respectively, compared to the same periods in 2018.

The effective tax rates were (17.8)% and (0.6)% for the three months ended June 30, 2019 and 2018, respectively. The effective tax rates were (28.9)% and (1.3)% for the six months ended June 30, 2019 and 2018, respectively. SCE's effective tax rate is below the federal statutory rate of 21% primarily due to CPUC's ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences, which reverse over time. The accounting treatment for these temporary differences results in recording regulatory assets and liabilities for amounts that would otherwise be recorded to deferred income tax expense. The effective tax rate decrease for the three months and six months ended June 30, 2019 is primarily due to tax benefits on property-related items recorded as a result of 2018 GRC final decision. The effective tax rate decrease for the six months ended June 30, 2019 also includes the change in the allocation of excess deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019.

See "Notes to Consolidated Financial Statements—Note 8. Income Taxes" for a reconciliation of the federal statutory rate to the effective income tax rates.

Edison International Parent and Other

Results of operations for Edison International Parent and Other include amounts from other Edison International subsidiaries that are not significant as a reportable segment, as well as intercompany eliminations.

Loss from Continuing Operations

The following table summarizes the results of Edison International Parent and Other:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison Energy Group and subsidiaries	$	(1	)	$	(3	)	$	(4	)	$	(55	)
Corporate expenses and other subsidiaries	(26		)	(18		)	(38		)	(34		)
Total Edison International Parent and Other	$	(27	)	$	(21	)	$	(42	)	$	(89	)

The loss from continuing operations of Edison International Parent and Other increased $6 million and decreased $47 million for the three and six months ended June 30, 2019, respectively, compared to the same periods in 2018.

The increase for the three months ended June 30, 2019 is primarily driven by higher interest expenses as a result of increased borrowings. The decrease for the six months ended June 30, 2019 is primarily related to the absence of an after-tax impairment charge of $46 million resulting from the sale of SoCore Energy in 2018, lower corporate and operating expenses in 2019 and lower losses at the competitive business under Edison Energy Group, partially offset by higher interest expense.

LIQUIDITY AND CAPITAL RESOURCES

SCE

SCE's ability to operate its business, fund capital expenditures, and implement its business strategy is dependent upon its cash flow and access to the bank and capital markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preferred and preference shareholders, and the outcome of tax and regulatory matters.

In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, capital market financings, and equity contributions from Edison International, as needed. SCE also has availability under its credit facility to fund cash requirements.

SCE has committed to make an initial contribution of approximately $2.4 billion by September 10, 2019, and ten annual contributions of approximately 95 million per year starting on January 1, 2020, to the wildfire fund expected to be established under AB 1054. Edison International and SCE are evaluating funding options to support SCE's initial contribution to the insurance fund and anticipate raising approximately $1.2 billion from the issuance of Edison International equity and approximately $1.2 billion from the issuance of long-term debt at SCE. SCE also expects to finance approximately $1.6 billion of capital expenses by issuing securitized bonds. If SCE incurs a substantial charge to earnings in the third quarter of 2019 as a result of SCE's anticipated contributions to the insurance fund under AB 1054, SCE may, as a result of

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incurring a material charge, be temporarily unable to obtain financing through the issuance of first mortgage bonds, in which case SCE may be required to issue subordinated or unsecured debt. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

SCE's long-term issuer credit ratings remain at investment grade levels after downgrade actions taken by the major credit agencies in the first quarter of 2019. The following table summarizes SCE's current, long-term issuer credit ratings and outlook from the major credit rating agencies:

	Moody's	Fitch	S&P
Credit Rating	Baa2	BBB-	BBB
Outlook	Negative	Negative	Watch Negative

SCE's credit ratings may be further affected by the ultimate outcome of pending enforcement and litigation matters, including the outcome of the uncertainties and potential liabilities associated with the 2017/2018 Wildfire/Mudslide Events, and the effective reform of policies allocating liability to investor-owned utilities for damages caused by catastrophic wildfires substantially caused by utility equipment, including, without limitation, the passage of AB 1054. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings or other borrowings. In addition, some of SCE's power procurement contracts require SCE to pay related liabilities or post additional collateral if SCE's credit rating were to fall below investment grade rating from the major credit rating agencies. Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade is $15 million as of June 30, 2019. In addition, if SCE's credit rating falls below investment grade, it may be required to post up to $50 million in collateral, in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which the downgrade occurs. For further details, see "— Margin and Collateral Deposits."

Available Liquidity

At June 30, 2019, SCE had approximately $2.6 billion available under its $3.0 billion credit facility. In June 2019, SCE extended its credit facility through May 2024, pursuant to an option to extend, and may extend its credit facility for one additional year with the lenders' approval. SCE borrowed $750 million under a term loan in February 2019 and issued $1.1 billion first and refunding mortgage bonds in March 2019. The proceeds from the term loan and the March 2019 bond issuances were used to repay commercial paper borrowings and for general corporate purposes. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Equity Financing."

In April 2019, Edison International Parent contributed $750 million to SCE, which SCE used to repay its February 2019 term loan discussed above. In June 2019, Edison International Parent contributed $450 million to SCE, which SCE used to pay commercial paper borrowings and for general corporate purposes.

SCE may finance balancing account undercollections and working capital requirements to support operations and capital expenditures with commercial paper, its credit facility or other borrowings, subject to availability in the bank and capital markets. As necessary, SCE will utilize its available liquidity, capital market financings, other borrowings or parent company contributions to SCE equity in order to meet its obligations as they become due, including any potential costs related to the 2017/2018 Wildfire/Mudslide Events. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

Debt Covenant

A debt covenant in SCE's credit facility limits its debt to total capitalization ratio to less than or equal to 0.65 to 1. At June 30, 2019, SCE's debt to total capitalization ratio was 0.48 to 1.

At June 30, 2019, SCE was in compliance with all other financial covenants that affect access to capital.

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Capital Investment Plan

Major Transmission Projects

Eldorado-Lugo-Mohave Upgrade

In April 2019, SCE filed an amended application for a certificate of public convenience and necessity with the CPUC, which included total project costs of $257 million, an increase of $24 million as compared to the previous estimate.

Riverside Transmission Reliability Project

In October 2018, the CPUC issued an environmental report that identified a new route alternative, different from SCE’s proposed and preferred project, as the environmentally preferred project and proposed an additional underground section of the proposed 220-kV power line.  In June 2019, SCE filed testimony with the CPUC that increased SCE's preferred project cost estimate to $451 million and updated the in-service date to 2024. This is an increase of $10 million and an extension of one year as compared to the previous estimate.

Grid Development

Wildfire Mitigation Plan

On May 30, 2019, the CPUC approved SCE's 2019 WMP. The CPUC decision requires SCE to meet certain reporting requirements, capture data, improve its metrics for evaluating performance, and update its next WMP in the areas of inspection and maintenance, vegetation management, system hardening, and situational awareness. SCE is tracking incremental 2019 WMP costs, beyond those that were approved in the 2018 GRC and those that will ultimately be approved in the GS&RP proceeding. Under AB 1054, approximately $1.6 billion of wildfire risk mitigation capital expenditures cannot be included in the equity portion of SCE’s rate base. For further information, see "Management Overview—Southern California Wildfires and Mudslides—Capital Expenditure Requirement" and "—Capital Program."

Regulatory Proceedings

2020 Cost of Capital Application

In April 2019, SCE filed its application with the CPUC for authority to establish its authorized cost of capital for utility operations for a three-year term, beginning January 1, 2020. In its application, SCE seeks a return on common equity of 16.60% for 2020, compared to its current CPUC ROE of 10.30%. SCE committed to reduce its ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform.

SCE also seeks to modify its current capital structure to increase the common equity component of its capital structure from its current authorized level of 48% to 52% in 2020 and correspondingly reduce its preferred equity from 9% to 5%. If this change is not approved, SCE seeks an additional 0.3% ROE to account for the increased leverage. SCE does not propose to change its currently authorized level of long-term debt of 43%. In the application, SCE projects a cost of long-term debt of 4.74% and an embedded cost of preferred equity of 5.70% and requests that the CPUC authorize these costs for 2020. Based on the capital structure and cost factors discussed above, SCE proposes a weighted average return on rate base of 10.96% for 2020.

Based on the revenue requirement approved in SCE's 2018 GRC, SCE's proposed cost of capital and capital structure will result in a projected revenue requirement increase in 2020 of approximately $1.2 billion from revenue currently included in electric rates of $11.1 billion.

SCE is currently evaluating the impact of AB 1054 on its Cost of Capital request.

FERC Formula Rate

2018 Formula Rate

The formula rate that SCE filed in 2017, with a January 1, 2018 effective date, is still pending resolution and is currently in settlement discussions. As a result, SCE's 2018 FERC rates remain subject to refund.

2019 Formula Rate

In April 2019, SCE filed an application with the FERC to replace the formula rate associated with its transmission facilities in 2019. In the April 2019 formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of

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11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4%. SCE is currently evaluating the impact of AB 1054 on its ROE request.

In June 2019, the FERC accepted the April 2019 formula rate as requested and suspended it for hearing and settlement procedures for five months. Therefore, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate in November 2019. The new formula rate will be effective in November 2019 and will likely be subject to refund until it is ultimately approved by the FERC.

If the April 2019 formula rate is adopted as proposed, SCE's retail base transmission revenue requirement in 2020 is projected to increase by approximately $290 million from the currently effective retail base transmission revenue requirement of approximately $1.04 billion.

Energy Efficiency Mechanism

On June 4, 2019, the CPUC issued a draft resolution that if adopted would approve incentives of approximately $10.6 million for activities in program years 2016 and 2017. The proposed award is approximately 5% less than SCE's requested award as a result of a CPUC decision that changed the formula used to calculate the Energy Efficiency Savings and Performance Incentive awards.

SCE Dividends

CPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison

International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders. Under SCE's interpretation of CPUC regulations, the common equity component of SCE's capital structure must remain at or above 48% on a weighted average basis over the 37-month period that SCE's capital structure is in effect for ratemaking purposes. Under AB 1054, SCE's contributions to the insurance fund will be excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

Under SCE's interpretation of the CPUC's capital structure decisions, SCE is required to file an application for a waiver of the 48% equity ratio condition discussed above if an adverse financial event reduces its spot equity ratio below 47%. On February 28, 2019, SCE submitted an application to the CPUC for waiver of compliance with this equity ratio

requirement, describing that while the charge accrued in connection with the 2017/2018 Wildfire/Mudslide Events caused its equity ratio to fall below 47% on a spot basis as of December 31, 2018, SCE remains in compliance with the 48% equity ratio over the applicable 37-month average basis. In its application, SCE requested a limited waiver to exclude wildfire-related charges and wildfire-related debt issuances from its equity ratio calculations until a determination regarding cost recovery is made. Under the CPUC's rules, SCE will not be deemed to be in violation of the equity ratio requirement, and therefore may continue to issue debt and dividends, while the waiver application is pending resolution. For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides." At June 30, 2019, without excluding the $1.8 billion after-tax wildfire related charge incurred in 2018, SCE's 37-month average common equity component of total capitalization was 48.9% and the maximum additional dividend that SCE could pay to Edison International under this limitation was $275 million, resulting in a restriction on net assets of approximately $15.2 billion. If the waiver had been approved by CPUC at June 30, 2019, SCE's 37-month average common equity component of total capitalization would have been 49.6%. In its 2020 cost of capital application filed in April 2019, SCE seeks to modify its current capital structure to increase the common equity component of its capital structure from its current authorized level of 48% to 52% in 2020. For further details, see "—Regulatory Proceedings—2020 Cost of Capital Application" above.

As a California corporation, SCE's ability to pay dividends is also governed by the California General Corporation Law. California law requires that for a dividend to be declared: (a) retained earnings must equal or exceed the proposed dividend, or (b) immediately after the dividend is made, the value of the corporation's assets must exceed the value of its liabilities plus amounts required to be paid, if any, in order to liquidate stock senior to the shares receiving the dividend. Additionally, a California corporation may not declare a dividend if it is, or as a result of the dividend would be, likely to be unable to meet its liabilities as they mature. Prior to declaring dividends, SCE's Board of Directors evaluates available information, including

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when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met.

The timing and amount of future dividends are also dependent on a number of other factors including SCE's requirements to fund other obligations and capital expenditures, and its ability to access the capital markets, and generate operating cash flows and earnings. If SCE incurs significant costs related to the 2017/2018 Wildfire/Mudslide Events and is unable to recover such costs through insurance or from customers or access capital markets on reasonable terms, SCE may be limited in its ability to pay future dividends to Edison international and its preferred and preference shareholders.

Margin and Collateral Deposits

Certain derivative instruments, power procurement contracts and other contractual arrangements contain collateral requirements. In addition, certain environmental remediation obligations require financial assurance that may be in the form of collateral postings. Future collateral requirements may differ from the requirements at June 30, 2019 due to the addition of incremental power and energy procurement contracts with collateral requirements, if any, the impact of changes in wholesale power and natural gas prices on SCE's contractual obligations, and the impact of SCE's credit ratings falling below investment grade.

The table below provides the amount of collateral posted by SCE to its counterparties as well as the potential collateral that would have been required as of June 30, 2019.

(in millions)
Collateral posted1	$	257
Incremental collateral requirements for power and energy procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade2	15
Incremental collateral requirements for power and energy procurement contracts resulting from adverse market price movement3	21
Posted and potential collateral requirements	$	293

¹ Net collateral provided to counterparties and other brokers consisted of $211 million in letters of credit and surety bonds and $46 million of cash, of which $27 million was offset against net derivative liabilities and $19 million of cash collateral was reflected in "Other current assets" on the consolidated balance sheets.

²   If SCE's credit rating falls below investment grade, existing power and energy procurement contracts would require $15 million of incremental collateral. Counterparties may also institute new collateral requirements, applicable to future transactions, at the time of a downgrade. Furthermore, SCE may also be required to post up to $50 million in collateral in connection with its environmental remediation obligations, within 120 days of the end of the fiscal year in which the downgrade occurs.

³  Incremental collateral requirements were based on potential changes in SCE's forward positions as of June 30, 2019 due to adverse market price movements over the remaining lives of existing power contracts using a 95% confidence level.

Decommissioning of San Onofre

As discussed in the year-end 2018 MD&A, spent fuel transfer operations at San Onofre were suspended on August 3, 2018 due to an incident that occurred when an SCE contractor was loading a spent fuel canister into the Independent Spent Fuel Storage Installation (ISFSI). In May 2019, after an extensive review, the NRC determined that fuel loading can be safely resumed at San Onofre. SCE commenced fuel transfer operations at San Onofre in July 2019.

Edison International Parent and Other

In the next 12 months, Edison International expects to fund its net cash requirements through capital market and bank financings, including by issuing additional debt and equity, as needed.

In April 2019, Edison International registered additional shares of its common stock with the SEC. Edison International anticipates issuing up to $1.5 billion of registered shares of common stock, including through designated broker-dealers at prevailing market prices (an at-the-market offering), and anticipates using the proceeds for equity contributions to SCE and for general corporate and working capital purposes. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Equity Financing."

In April 2019, Edison International entered into a $1.0 billion term loan. Of the proceeds of the term loan, $750 million was contributed to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes. In June 2019, Edison International Parent issued $600 million of 5.75% senior notes due June 15, 2027. Of the proceeds of the

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senior notes offering, $450 million was contributed to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes. For further details, see "Notes to Consolidated Financial Statements—Note 5. Debt and Equity Financing." Edison International believes that these contributions, along with future proceeds from the at-the-market offering, will enable SCE to increase the common equity component of its capital structure to 52% in 2020 as proposed in SCE's Cost of Capital application filed with the CPUC in April 2019.

At June 30, 2019, Edison International Parent had approximately $1.5 billion available under its $1.5 billion credit facility. In June 2019, Edison International Parent extended its credit facility through May 2024, pursuant to an option to extend, and may extend the credit facility for one additional year with the lenders' approval.

Edison International Parent and Other's liquidity and its ability to pay operating expenses and pay dividends to common shareholders are dependent on access to the bank and capital markets, dividends from SCE, realization of tax benefits, and its ability to meet California law requirements for the declaration of dividends. Prior to declaring dividends, Edison International's Board of Directors evaluates available information, including when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met. For information on the California law requirements on the declaration of dividends, see "—SCE—SCE Dividends." Edison International intends to maintain its target payout ratio of 45% – 55% of SCE's core earnings, subject to the factors identified above.

Edison International may finance its ongoing cash requirements, including common stock dividends, working capital requirements, payment of obligations, and capital investments, including capital contributions to subsidiaries, with short-term or other financings, subject to availability in the bank and capital markets. Edison International anticipates issuing approximately $1.2 billion of equity to enable SCE to meet its obligation to make an initial contribution of $2.4 billion by September 10, 2019 to the wildfire fund expected to be established under AB 1054. For further information, see "Management Overview—Southern California Wildfires and Mudslides."

A debt covenant in Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio as defined in the credit agreement of less than or equal to 0.70 to 1. At June 30, 2019, Edison International Parent's consolidated debt to total capitalization ratio was 0.58 to 1.

At June 30, 2019, Edison International Parent was in compliance with all financial covenants that affect access to capital.

Edison International Parent's long-term issuer credit ratings remain at investment grade levels after downgrade actions taken by the major credit rating agencies in the first quarter of 2019. The following table summarizes Edison International Parent's current long-term issuer credit ratings and outlook from the major credit rating agencies:

	Moody's	Fitch	S&P
Credit Rating	Baa3	BBB-	BBB
Outlook	Negative	Negative	Watch Negative

Edison International Parent's credit ratings may be further affected by the ultimate outcome of pending enforcement and litigation matters, including the outcome of the uncertainties and potential liabilities associated with the 2017/2018 Wildfire/Mudslide Events, and the effective reform of policies allocating liability to investor-owned utilities for damages caused by catastrophic wildfires substantially caused by utility equipment, including, without limitation, the passage of AB 1054. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, note financings or other borrowings.

Net Operating Loss and Tax Credit Carryforwards

Edison International has net operating loss and tax credit carryforwards retained by SCE, which are available to offset future consolidated tax income or tax liabilities. In May 2019, SCE received the 2018 GRC final decision, which included a reduction in revenue and taxable income for 2018 through 2020. At June 30, 2019, net operating loss and tax credit carryforwards reflect the impact of the 2018 GRC final decision, the potential for claims related to the 2017/2018 Wildfire/Mudslide Events, and participation in the wildfire fund as described in AB 1054. Edison International expects to realize its NOL and tax credit carryforward position through 2027.

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Historical Cash Flows

SCE

	Six months ended June 30,
(in millions)	2019			2018
Net cash provided by operating activities	$	673		$	1,312
Net cash provided by financing activities	1,467			247
Net cash used in investing activities	(2,135		)	(2,048		)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	5		$	(489	)

Net Cash Provided by Operating Activities

The following table summarizes major categories of net cash provided by operating activities as provided in more detail in SCE's consolidated statements of cash flows for the six months ended June 30, 2019 and 2018.

	Six months ended June 30,						Change in cash flows
(in millions)	2019			2018			2019/2018
Net income	$	772		$	643
Non-cash items1	784			1,066
Subtotal	$	1,556		$	1,709		$	(153	)
Changes in cash flow resulting from working capital2	(235		)	(507		)	272
Regulatory assets and liabilities	(543		)	204			(747		)
Other noncurrent assets and liabilities3	(105		)	(94		)	(11		)
Net cash provided by operating activities	$	673		$	1,312		$	(639	)

¹  Non-cash items include depreciation and amortization, allowance for equity during construction, impairment and other, deferred income taxes and investment tax credits, and other.

²  Changes in working capital items include receivables, inventory, accounts payable, tax receivables and payables, and other current assets and liabilities.

³ Includes the nuclear decommissioning trusts. See "Nuclear Decommissioning Activities" below for further information.

Net cash provided by operating activities was impacted by the following:

Net income and non-cash items decreased in 2019 by $153 million primarily due to the adoption of the 2018 GRC final decision in the second quarter of 2019, the timing of regulatory deferral and cost recovery of wildfire insurance costs and higher revenue due to a change in estimate under the FERC formula rate mechanism, partially offset by higher wildfire mitigation costs in 2019. Non-cash items included changes in deferred income taxes and investment credits of $(175) million and $12 million in 2019 and 2018, respectively, depreciation and amortization of $834 million and $1.1 billion in 2019 and 2018, respectively, and an impairment charge of $170 million recorded in 2019 related to disallowed historical capital expenditures in SCE's 2018 GRC final decision.

Net cash for working capital was $(235) million and $(507) million during the six months ended June 30, 2019 and 2018, respectively. Net cash for working capital in 2019 was primarily impacted by insurance premium payments of $431 million for wildfire-related coverage. The net cash for each period was also impacted by the timing of disbursements of $170 million and $(55) million during the first six months of 2019 and 2018, respectively, and an increase in receivables from customers of $149 million and $499 million in 2019 and 2018, respectively.

Net cash provided by regulatory assets and liabilities, including changes in overcollections of balancing accounts was $(543) million and $204 million during the six months ended June 30, 2019 and 2018, respectively. SCE has a number of balancing accounts, which impact cash flows based on differences between timing of collection of amounts through rates and accrual expenditures. Cash flows were primarily impacted by the following:

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2019

• BRRBA overcollections decreased by $166 million primarily due to an authorization to recover $107 million of premiums related to a wildfire insurance policy purchased in 2017, lower sales than forecasted in rates and refunds of prior overcollections (including incremental tax benefits), partially offset by distribution revenue previously collected from customers in 2019 and 2018 that will be refunded as part of SCE's 2018 GRC final decision.

• The portfolio allocation balancing account was established in May 2019 to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs of all generation resources that are eligible for cost recovery. Net undercollections for ERRA, the portfolio allocation balancing account and the new system generation program were $698 million and $741 million at June 30, 2019 and December 31, 2018, respectively. Net undercollections decreased $43 million primarily due to an increase in cash due to recovery of prior ERRA undercollections and generation revenue previously collected from customers in 2019 and 2018 that will be refunded as part of SCE's 2018 GRC final decision, partially offset by lower sales than forecasted in rates, higher than forecasted power and gas prices experienced in 2019, and charges from CPUC-authorized contract terminations.

• Undercollections of $97 million related to fire risk mitigation costs in excess of the amounts authorized in the revenue requirement.

• Decrease in overcollections of approximately $360 million due to the elimination of the regulatory liability that was established to record adjustments associated with the delay in the 2018 GRC decision. In May 2019, the CPUC approved the final decision in SCE's 2018 GRC, resulting in a reduction to revenue that will be refunded to customers, as discussed in BRRBA and the portfolio allocation balancing account above.

2018

• BRRBA overcollections increased by $300 million during the first six months of 2018 primarily due to a $263 million reclassification of 2017 incremental tax benefits from TAMA to BRRBA (to be refunded in 2019) and higher sales than forecasted in rates, partially offset by a refund of 2016 incremental tax benefits.

• Higher cash due to $125 million of overcollections for the public purpose and energy efficiency programs resulting from lower program spending.

• Higher cash of $91 million due to cash collected for San Onofre under the Prior San Onofre Settlement Agreement.

• Higher cash reflected in regulatory liabilities of approximately $176 million primarily due to the delay in the 2018 GRC decision. Amounts billed to customers during the first six months of 2018 were based on the 2017 authorized GRC revenue requirement, however, the amount of revenue recognized was adjusted mainly for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC and therefore, a regulatory liability was established to record any associated adjustments.

• TAMA overcollections decreased by $263 million due to a reclassification from TAMA to BRRBA to refund customers as discussed above.

• Lower cash due to $162 million of undercollections related to the timing of greenhouse gas auction revenue and climate credit refunds to customers.

Cash flows used in other noncurrent assets and liabilities were primarily related to net earnings from nuclear decommissioning trust investments ($37 million and $5 million in 2019 and 2018, respectively) and SCE's payments of decommissioning costs ($98 million and $71 million in 2019 and 2018, respectively). See "Nuclear Decommissioning Activities" below for further discussion.

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Net Cash Provided by Financing Activities

The following table summarizes cash provided by financing activities for the six months ended June 30, 2019 and 2018. Issuances of debt are discussed in "Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

	Six months ended June 30,
(in millions)	2019			2018
Issuances of first and refunding mortgage bonds, net of discount and issuance costs	$	1,087		$	1,872
Capital contribution from Edison International Parent	1,200			—
Long-term debt matured	(41		)	(198		)
Short-term debt repayments, net of borrowings and discount	(508		)	(940		)
Payments of common stock dividends to Edison International	(200		)	(424		)
Payments of preferred and preference stock dividends	(60		)	(60		)
Other	(11		)	(3		)
Net cash provided by financing activities	$	1,467		$	247

Net Cash Used in Investing Activities

Cash flows used in investing activities are primarily due to capital expenditures related to transmission and distribution investments ($2.2 billion and $2.1 billion for the six-month periods ended June 30, 2019 and 2018, respectively). In addition, SCE had a net redemption of nuclear decommissioning trust investments of $72 million and $73 million during the first six months ended June 30, 2019 and 2018, respectively. See "Nuclear Decommissioning Activities" below for further discussion.

Nuclear Decommissioning Activities

SCE's statement of cash flows includes nuclear decommissioning activities, which are reflected in the following line items:

	Six months ended June 30,
(in millions)	2019			2018
Net cash used in operating activities:
Net earnings from nuclear decommissioning trust investments	$	37		$	5
SCE's decommissioning costs	(98		)	(71		)
Net cash provided by investing activities:
Proceeds from sale of investments	2,440			1,770
Purchases of investments	(2,368		)	(1,697		)
Net cash impact	$	11		$	7

Net cash used in operating activities relates to interest and dividends less administrative expenses, taxes, and SCE's decommissioning costs. See "Notes to Consolidated Financial Statements—Note 10. Investments" for further information. Investing activities represent the purchase and sale of investments within the nuclear decommissioning trusts, including the reinvestment of earnings from nuclear decommissioning trust investments. The net cash impact reflects timing of decommissioning payments ($98 million and $71 million in 2019 and 2018, respectively) and reimbursements to SCE from the nuclear decommissioning trust ($109 million and $78 million in 2019 and 2018, respectively).

Edison International Parent and Other

The table below sets forth condensed historical cash flow from operations for Edison International Parent and Other, including intercompany eliminations.

	Six months ended June 30,
(in millions)	2019			2018
Net cash used in operating activities	$	(75	)	$	(95	)
Net cash provided by (used in) financing activities	184			(501		)
Net cash (used in) provided by investing activities	(1		)	60
Net increase (decrease) in cash and cash equivalents	$	108		$	(536	)

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Net Cash Provided by (Used in) Financing Activities

Net cash provided by (used in) financing activities was as follows:

	Six months ended June 30,
(in millions)	2019			2018
Dividends paid to Edison International common shareholders	$	(399	)	$	(394	)
Dividends received from SCE	200			424
Capital contribution to SCE	(1,200		)	—
Payment for stock-based compensation, net of receipt from stock option exercises	(10		)	(7		)
Issuance of long-term debt, net of discount and issuance costs	595			530
Issuance of term loan	1,000			—
Short-term debt repayments, net of borrowings and discount	(1		)	(1,091		)
Other	(1		)	37
Net cash provided by (used in) financing activities	$	184		$	(501	)

Net Cash (Used in) Provided by Investing Activities

Net cash provided by investing activities decreased $61 million during the first six months of 2019 compared to 2018 primarily due to a cash inflow of $78 million from the sale of SoCore Energy in April 2018.

Contingencies

SCE has contingencies related to the 2017/2018 Wildfire/Mudslide Events, wildfire insurance, Environmental Remediation, Nuclear Insurance and Spent Nuclear Fuel, which are discussed in "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies."

MARKET RISK EXPOSURES

Edison International's and SCE's primary market risks are described in the 2018 Form 10-K. For a further discussion of market risk exposures, including commodity price risk, credit risk, and interest rate risk, see "Notes to Consolidated Financial Statements—Note 4. Fair Value Measurements" and "—Note 6. Derivative Instruments."

Commodity Price Risk

SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The fair value of outstanding derivative instruments used to mitigate exposure to commodity price risk was reflected as a net asset of $63 million and $167 million on SCE's consolidated balance sheets at June 30, 2019 and December 31, 2018, respectively. For further discussion of fair value measurements and the fair value hierarchy, see "Notes to Consolidated Financial Statements—Note 4. Fair Value Measurements" and "— Note 6. Derivative Instruments."

Credit Risk

Credit risk exposure from counterparties for power and gas trading activities is measured as the sum of net accounts receivable (accounts receivable less accounts payable) and the current fair value of net derivative assets (derivative assets less derivative liabilities) reflected on the consolidated balance sheets. SCE enters into master agreements which typically provide for a right of setoff. Accordingly, SCE's credit risk exposure from counterparties is based on a net exposure under these arrangements. SCE manages the credit risk on the portfolio for both rated and non-rated counterparties based on credit ratings using published ratings of counterparties and other publicly disclosed information, such as financial statements, regulatory filings, and press releases, to guide it in the process of setting credit levels, risk limits, and contractual arrangements, including master netting agreements.

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The amount of balance sheet exposure as described above broken down by the credit ratings of SCE's counterparties, was as follows:

	June 30, 2019
(in millions)	Exposure2		Collateral			Net Exposure
S&P Credit Rating1
A+ or higher	$	63	$	—		$	63
A, BBB + and BBB	1		(1		)	—
	$	64	$	(1	)	$	63

¹  SCE assigns a credit rating based on the lower of a counterparty's S&P or Moody's rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the credit ratings from S&P or Moody's.

²  Exposure excludes amounts related to contracts classified as normal purchases and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheets, except for any related net accounts receivable.

CRITICAL ACCOUNTING ESTIMATES AND POLICIES

For a complete discussion on Edison International's and SCE's critical accounting policies, see "Critical Accounting Estimates and Policies" in the year-ended 2018 MD&A.

NEW ACCOUNTING GUIDANCE

New accounting guidance is discussed in "Notes to Consolidated Financial Statements—Note 1. Summary of Significant Accounting Policies—New Accounting Guidance."

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responding to this section is included in the MD&A under the heading "Market Risk Exposures" and is incorporated herein by reference.

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FINANCIAL STATEMENTS

Consolidated Statements of Income	Edison International
	Three months ended June 30,						Six months ended June 30,
(in millions, except per-share amounts, unaudited)	2019			2018			2019			2018
Total operating revenue	$	2,812		$	2,815		$	5,636		$	5,379
Purchased power and fuel	1,135			1,112			2,140			2,038
Operation and maintenance	595			719			1,477			1,394
Depreciation and amortization	321			463			801			925
Property and other taxes	93			97			203			204
Impairment and other	170			5			166			71
Other operating income	(2		)	(1		)	(3		)	(3		)
Total operating expenses	2,312			2,395			4,784			4,629
Operating income	500			420			852			750
Interest expense	(211		)	(180		)	(405		)	(350		)
Other income and expense	55			49			93			100
Income from continuing operations before income taxes	344			289			540			500
Income tax benefit	(78		)	(9		)	(190		)	(40		)
Income from continuing operations	422			298			730			540
Net income	422			298			730			540
Preferred and preference stock dividend requirements of SCE	30			30			60			60
Other noncontrolling interests	—			(8		)	—			(14		)
Net income attributable to Edison International common shareholders	$	392		$	276		$	670		$	494
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax	$	392		$	276		$	670		$	494
Net income attributable to Edison International common shareholders	$	392		$	276		$	670		$	494
Basic earnings per share:
Weighted-average shares of common stock outstanding	326			326			326			326
Continuing operations	$	1.20		$	0.85		$	2.05		$	1.52
Basic earnings per common share attributable to Edison International common shareholders	$	1.20		$	0.85		$	2.05		$	1.52
Diluted earnings per share:
Weighted-average shares of common stock outstanding, including effect of dilutive securities	327			327			327			327
Continuing operations	$	1.20		$	0.84		$	2.05		$	1.51
Diluted earnings per common share attributable to Edison International common shareholders	$	1.20		$	0.84		$	2.05		$	1.51

The accompanying notes are an integral part of these consolidated financial statements.

25

Consolidated Statements of Comprehensive Income					Edison International
	Three months ended June 30,				Six months ended June 30,
(in millions, unaudited)	2019		2018		2019		2018
Net income	$	422	$	298	$	730	$	540
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits other than pensions:
Amortization of net loss included in net income	1		2		3		4
Other	—		—		—		(5		)
Other comprehensive income (loss), net of tax	1		2		3		(1		)
Comprehensive income	423		300		733		539
Less: Comprehensive income attributable to noncontrolling interests	30		22		60		46
Comprehensive income attributable to Edison International	$	393	$	278	$	673	$	493

The accompanying notes are an integral part of these consolidated financial statements.

26

Consolidated Balance Sheets	Edison International
(in millions, unaudited)	June 30, 2019		December 31, 2018
ASSETS
Cash and cash equivalents	$	257	$	144
Receivables, less allowances of $49 and $52 for uncollectible accounts at respective dates	795		730
Accrued unbilled revenue	562		482
Inventory	331		282
Income tax receivables	127		191
Prepaid expenses	407		148
Derivative assets	55		171
Regulatory assets	1,294		1,133
Other current assets	108		78
Total current assets	3,936		3,359
Nuclear decommissioning trusts	4,421		4,120
Other investments	83		63
Total investments	4,504		4,183
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,743 and $9,566 at respective dates	42,329		41,269
Nonutility property, plant and equipment, less accumulated depreciation of $83 and $82 at respective dates	85		79
Total property, plant and equipment	42,414		41,348
Regulatory assets	5,469		5,380
Operating lease right-of-use assets	742		—
Other long-term assets	2,456		2,445
Total long-term assets	8,667		7,825
Total assets	$	59,521	$	56,715

The accompanying notes are an integral part of these consolidated financial statements.

27

Consolidated Balance Sheets	Edison International
(in millions, except share amounts, unaudited)	June 30, 2019			December 31, 2018
LIABILITIES AND EQUITY
Short-term debt	$	1,213		$	720
Current portion of long-term debt	479			79
Accounts payable	1,578			1,511
Customer deposits	302			299
Regulatory liabilities	767			1,532
Current portion of operating lease liabilities	108			—
Other current liabilities	1,218			1,254
Total current liabilities	5,665			5,395
Long-term debt	15,883			14,632
Deferred income taxes and credits	4,856			4,576
Pensions and benefits	864			869
Asset retirement obligations	3,016			3,031
Regulatory liabilities	8,685			8,329
Operating lease liabilities	634			—
Wildfire-related claims	4,669			4,669
Other deferred credits and other long-term liabilities	2,336			2,562
Total deferred credits and other liabilities	25,060			24,036
Total liabilities	46,608			44,063
Commitments and contingencies (Note 12)
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates)	2,555			2,545
Accumulated other comprehensive loss	(57		)	(50		)
Retained earnings	8,222			7,964
Total Edison International's common shareholders' equity	10,720			10,459
Noncontrolling interests – preferred and preference stock of SCE	2,193			2,193
Total equity	12,913			12,652
Total liabilities and equity	$	59,521		$	56,715

The accompanying notes are an integral part of these consolidated financial statements.

28

Consolidated Statements of Cash Flows	Edison International
	Six months ended June 30,
(in millions, unaudited)	2019			2018
Cash flows from operating activities:
Net income	$	730		$	540
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	837			1,074
Allowance for equity during construction	(49		)	(44		)
Impairment and other	166			71
Deferred income taxes and investment tax credits	(182		)	(5		)
Other	13			35
Nuclear decommissioning trusts	(72		)	(73		)
Changes in operating assets and liabilities:
Receivables	(72		)	(58		)
Inventory	(49		)	(14		)
Accounts payable	221			(4		)
Tax receivables and payables	65			90
Other current assets and liabilities	(423		)	(533		)
Regulatory assets and liabilities, net	(543		)	204
Other noncurrent assets and liabilities	(44		)	(66		)
Net cash provided by operating activities	598			1,217
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $18 and $33 for the respective periods	1,682			2,417
Term loan issued	1,000			—
Long-term debt matured	(41		)	(213		)
Short-term debt financing, net	(509		)	(2,031		)
Payments for stock-based compensation	(48		)	(21		)
Receipts from stock option exercises	25			9
Dividends to noncontrolling interests	(60		)	(60		)
Dividends paid	(399		)	(394		)
Other	1			39
Net cash provided by (used in) financing activities	1,651			(254		)
Cash flows from investing activities:
Capital expenditures	(2,235		)	(2,159		)
Proceeds from sale of nuclear decommissioning trust investments	2,440			1,770
Purchases of nuclear decommissioning trust investments	(2,368		)	(1,697		)
Proceeds from sale of SoCore Energy, net of cash acquired by buyer	—			78
Other	27			20
Net cash used in investing activities	(2,136		)	(1,988		)
Net increase (decrease) in cash, cash equivalents and restricted cash	113			(1,025		)
Cash, cash equivalents and restricted cash at beginning of period	152			1,132
Cash, cash equivalents and restricted cash at end of period	$	265		$	107

The accompanying notes are an integral part of these consolidated financial statements.

29

Consolidated Statements of Income	Southern California Edison Company
		Three months ended June 30,						Six months ended June 30,
(in millions, unaudited)		2019			2018			2019			2018
Operating revenue		$	2,800		$	2,803		$	5,616		$	5,357
Purchased power and fuel		1,135			1,112			2,140			2,038
Operation and maintenance		571			694			1,440			1,345
Depreciation and amortization		320			462			800			921
Property and other taxes		93			97			202			202
Impairment and other		170			—			166			—
Other operating income		(2		)	(1		)	(3		)	(2		)
Total operating expenses		2,287			2,364			4,745			4,504
Operating income		513			439			871			853
Interest expense		(188		)	(164		)	(366		)	(319		)
Other income and expense		56			50			94			101
Income before income taxes		381			325			599			635
Income tax benefit		(68		)	(2		)	(173		)	(8		)
Net income		449			327			772			643
Less: Preferred and preference stock dividend requirements		30			30			60			60
Net income available for common stock		$	419		$	297		$	712		$	583

Consolidated Statements of Comprehensive Income			Southern California Edison Company
	Three months ended June 30,				Six months ended June 30,
(in millions, unaudited)	2019		2018		2019		2018
Net income	$	449	$	327	$	772	$	643
Other comprehensive income (loss), net of tax:
Pension and postretirement benefits other than pensions:
Amortization of net loss included in net income	1		1		2		3
Other	—		—		—		(5		)
Other comprehensive income (loss), net of tax	1		1		2		(2		)
Comprehensive income	$	450	$	328	$	774	$	641

The accompanying notes are an integral part of these consolidated financial statements.

30

Consolidated Balance Sheets Southern California Edison Company

(in millions, unaudited)	June 30, 2019		December 31, 2018
ASSETS
Cash and cash equivalents	$	26	$	21
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates	780		711
Accrued unbilled revenue	562		482
Inventory	331		282
Income tax receivables	211		312
Prepaid expenses	406		144
Derivative assets	55		171
Regulatory assets	1,294		1,133
Other current assets	96		69
Total current assets	3,761		3,325
Nuclear decommissioning trusts	4,421		4,120
Other investments	67		45
Total investments	4,488		4,165
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,743 and $9,566 at respective dates	42,329		41,269
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates	81		75
Total property, plant and equipment	42,410		41,344
Regulatory assets	5,469		5,380
Operating lease right-of-use assets	738		—
Long-term insurance receivable due from affiliate	1,000		1,000
Other long-term assets	1,371		1,360
Total long-term assets	8,578		7,740
Total assets	$	59,237	$	56,574

The accompanying notes are an integral part of these consolidated financial statements.

31

Consolidated Balance Sheets Southern California Edison Company

(in millions, except share amounts, unaudited)	June 30, 2019			December 31, 2018
LIABILITIES AND EQUITY
Short-term debt	$	213		$	720
Current portion of long-term debt	79			79
Accounts payable	1,577			1,519
Accrued interest	257			212
Customer deposits	302			299
Regulatory liabilities	767			1,532
Current portion of operating lease liabilities	107			—
Power purchase contracts	208			205
Other current liabilities	497			580
Total current liabilities	4,007			5,146
Long-term debt	13,946			12,892
Deferred income taxes and credits	6,184			5,898
Pensions and benefits	430			433
Asset retirement obligations	3,016			3,031
Regulatory liabilities	8,685			8,329
Operating lease liabilities	631			—
Wildfire-related claims	4,669			4,669
Other deferred credits and other long-term liabilities	2,177			2,391
Total deferred credits and other liabilities	25,792			24,751
Total liabilities	43,745			42,789
Commitments and contingencies (Note 12)
Preferred and preference stock	2,245			2,245
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates)	2,168			2,168
Additional paid-in capital	1,886			680
Accumulated other comprehensive loss	(26		)	(23		)
Retained earnings	9,219			8,715
Total equity	15,492			13,785
Total liabilities and equity	$	59,237		$	56,574

The accompanying notes are an integral part of these consolidated financial statements.

32

Consolidated Statements of Cash Flows Southern California Edison Company

	Six months ended June 30,
(in millions, unaudited)	2019			2018
Cash flows from operating activities:
Net income	$	772		$	643
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	834			1,069
Allowance for equity during construction	(49		)	(44		)
Impairment and other	166			—
Deferred income taxes and investment tax credits	(175		)	12
Other	8			29
Nuclear decommissioning trusts	(72		)	(73		)
Changes in operating assets and liabilities:
Receivables	(80		)	(67		)
Inventory	(49		)	(15		)
Accounts payable	212			(35		)
Tax receivables and payables	103			(9		)
Other current assets and liabilities	(421		)	(381		)
Regulatory assets and liabilities, net	(543		)	204
Other noncurrent assets and liabilities	(33		)	(21		)
Net cash provided by operating activities	673			1,312
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $13 and $28 for the respective periods	1,087			1,872
Long-term debt matured	(41		)	(198		)
Capital contribution from Edison International Parent	1,200			—
Short-term debt financing, net	(508		)	(940		)
Payments for stock-based compensation	(29		)	(8		)
Receipts from stock option exercises	16			3
Dividends paid	(260		)	(484		)
Other	2			2
Net cash provided by financing activities	1,467			247
Cash flows from investing activities:
Capital expenditures	(2,234		)	(2,141		)
Proceeds from sale of nuclear decommissioning trust investments	2,440			1,770
Purchases of nuclear decommissioning trust investments	(2,368		)	(1,697		)
Other	27			20
Net cash used in investing activities	(2,135		)	(2,048		)
Net increase (decrease) in cash, cash equivalents and restricted cash	5			(489		)
Cash, cash equivalents and restricted cash at beginning of period	22			515
Cash, cash equivalents and restricted cash at end of period	$	27		$	26

The accompanying notes are an integral part of these consolidated financial statements.

33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1.    Summary of Significant Accounting Policies

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2018 Form 10-K.

In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Certain prior period amounts have been conformed to the current period's presentation.

The December 31, 2018 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Cash, Cash Equivalents and Restricted Cash

Cash equivalents include investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Money market funds	$	219	$	116	$	—	$	1

Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Book balances reclassified to accounts payable	$	43	$	65	$	43	$	65

34

The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:

(in millions)	June 30, 2019		December 31, 2018
Edison International:
Cash and cash equivalents	$	257	$	144
Short-term restricted cash1	8		8
Total cash, cash equivalents, and restricted cash	$	265	$	152
SCE:
Cash and cash equivalents	$	26	$	21
Short-term restricted cash1	1		1
Total cash, cash equivalents, and restricted cash	$	27	$	22

¹  Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.

Revenue Recognition

Regulatory Proceedings

2018 General Rate Case

In May 2019, the CPUC approved a final decision in SCE's 2018 GRC. The final decision authorized a revenue requirement of $5.116 billion for 2018 and identified changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The final decision also disallowed certain historical spending, largely related to specific pole replacements the CPUC determined were performed prematurely.

The final decision allows a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It also allows operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the final decision results in a revenue requirement of $5.451 billion in 2019 and $5.863 billion in 2020.

The revenue requirements in the 2018 GRC final decision are retroactive to January 1, 2018. SCE recorded the prior period impact of the 2018 GRC final decision in the second quarter of 2019, including:

• An increase to earnings of $131 million from the application of the decision to revenue, depreciation expense and income tax expense. Depreciation expense decreased as a result of lower authorized depreciation rates. An increase in the authorized revenue requirement for income tax expenses offsets income tax expenses recognized during 2018 and the first quarter of 2019. The reduction of revenue of $265 million reflects $289 million of lower authorized revenue related to 2018 and $24 million of higher authorized revenue in 2019. The reduction in revenue contributes to a refund to customers of $554 million which SCE recorded as a regulatory liability as of June 30, 2019. SCE expects to refund these amounts to customers through December 2020.

• An impairment of utility property, plant and equipment of $170 million ($123 million after-tax) related to disallowed historical capital expenditures, primarily the write-off of specific pole replacements the CPUC determined were performed prematurely.

See Note 11 for further information.

FERC Formula Rate

In October 2017, SCE filed its new formula rate with the FERC. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. In November 2018, SCE filed its 2019 annual update with the FERC with the proposed rates effective January 1, 2019, subject to settlement procedures and refund, and requested a decrease in transmission revenue requirement of $131 million, or 11% from amounts currently authorized in rates. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in 2018 and 2019 based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments.

In April 2019, SCE filed an application with the FERC to replace the formula rate associated with its transmission facilities in 2019. In the April 2019 formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its

35

proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4%. SCE is currently evaluating the impact of California Assembly Bill 1054 ("AB 1054") on its ROE request. See Note 12 for further information.

In June 2019, the FERC accepted the April 2019 formula rate as requested and suspended it for hearing and settlement procedures for five months. Therefore, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate on November 12, 2019. The new formula rate will be effective in November 2019 and will likely be subject to refund until it is ultimately approved by the FERC.

If the April 2019 formula rate is adopted as proposed, SCE's retail base transmission revenue requirement in 2020 is projected to increase $290 million from the currently effective retail base transmission revenue requirement of approximately $1.04 billion.

See Note 7 for further information on SCE's revenue.

Earnings Per Share

Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions, except per-share amounts)	2019		2018		2019		2018
Basic earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Basic earnings per share – continuing operations	$	1.20	$	0.85	$	2.05	$	1.52
Diluted earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Income impact of assumed conversions	—		—		—		—
Income from continuing operations available to common shareholders and assumed conversions	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Incremental shares from assumed conversions	1		1		1		1
Adjusted weighted average shares – diluted	327		327		327		327
Diluted earnings per share – continuing operations	$	1.20	$	0.84	$	2.05	$	1.51

In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 7,426,319 and 6,223,964 shares of common stock for the three months ended June 30, 2019 and 2018, respectively, and 7,435,580 and 6,223,964 shares for the six months ended June 30, 2019 and 2018, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.

36

New Accounting Guidance

Accounting Guidance Adopted

On January 1, 2019, Edison International and SCE adopted accounting standards updates that require lessees to recognize a lease on the balance sheet as a right-of-use ("ROU") asset and related lease liability and classify the lease as either operating or finance. Edison International and SCE adopted this guidance using the modified retrospective approach for leases that existed as of the adoption date and elected the optional transition method not to restate periods prior to the adoption date. Edison International and SCE also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and the practical expedient not to reassess existing land easements. Adoption of this standard increased ROU assets and lease liabilities on the consolidated balance sheets by $956 million and $951 million as of January 1, 2019 for Edison International and SCE, respectively. The standard did not materially impact the consolidated statements of income for Edison International or SCE.

Based on accounting standards adopted at January 1, 2019, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. This occurs when an entity has the right to obtain substantially all of the economic benefits from and has the right to direct the use of the identified asset. SCE determines if an arrangement is a lease at contract inception, and for all classes of assets, SCE includes both lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. Lease ROU assets are based on the liability, subject to adjustments, such as lease incentives. In measuring lease assets and liabilities, SCE excludes variable lease payments, other than those that depend on an index, a rate or are in substance fixed payments. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment and other liabilities on the consolidated balance sheets. See Note 13 for further information.

In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income, while the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE adopted this guidance on January 1, 2019 and reclassified stranded tax effects of $10 million and $5 million, respectively, from accumulated other comprehensive income to retained earnings. See Notes 2 and 14 for further information.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to fair value measurement. Edison International and SCE adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on Edison International's and SCE's disclosures. See Note 4 for further information.

Accounting Guidance Not Yet Adopted

In June 2016, the FASB issued an accounting standards update to require the use of the current expected credit loss model to measure impairment of financial instruments and the use of an allowance to record estimated credit losses on available-for-sale debt securities. The guidance, as amended in November 2018 and May 2019, allows entities to irrevocably elect the fair value option for any financial instrument previously measured on an amortized costs basis. The guidance is effective January 1, 2020. Edison International and SCE are currently evaluating the impact of this new guidance.

In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment by changing the procedural steps to apply the goodwill impairment test. After the adoption of this accounting standards update, goodwill impairment will be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to goodwill impairment tests beginning in 2020.

In August 2018, the FASB issued an accounting standards update which aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance also clarified presentation requirements for reporting implementation costs in the financial statements. The guidance is effective January 1, 2020 with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1,

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2021, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance and do not expect the adoption of this standard will materially affect disclosures.

Note 2.    Consolidated Statements of Changes in Equity

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2019:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2018	$	2,545	$	(50	)	$	7,964		$	10,459		$	2,193		$	12,652
Net income	—		—			278			278			30			308
Other comprehensive income	—		2			—			2			—			2
Cumulative effect of accounting changes1	—		(10		)	10			—			—			—
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(18		)	(18		)	—			(18		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at March 31, 2019	$	2,550	$	(58	)	$	8,034		$	10,526		$	2,193		$	12,719
Net income	—		—			392			392			30			$	422
Other comprehensive income	—		1			—			1			—			1
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			(4		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at June 30, 2019	$	2,555	$	(57	)	$	8,222		$	10,720		$	2,193		$	12,913

¹ Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards updates on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

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The following table provides Edison International's changes in equity for the three and six months ended June 30, 2018:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other			Preferred and Preference Stock			Total Equity
Balance at December 31, 2017	$	2,526	$	(43	)	$	9,188		$	11,671		$	2		$	2,193		$	13,866
Net income (loss)	—		—			218			218			(3		)	30			245
Other comprehensive income	—		2			—			2			—			—			2
Cumulative effect of accounting changes1	—		(5		)	10			5			—			—			5
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(8		)	(8		)	—			—			(8		)
Noncash stock-based compensation	5		—			—			5			—			—			5
Other	—		—			—			—			1			—			1
Balance at March 31, 2018	$	2,531	$	(46	)	$	9,211		$	11,696		$	—		$	2,193		$	13,889
Net income (loss)	—		—			276			276			(8		)	30			298
Other comprehensive income	—		2			—			2			—			—			2
Contribution from tax equity investor	—		—			—			—			24			—			24
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			—			(4		)
Noncash stock-based compensation	6		—			—			6			—			—			6
Deconsolidation of SoCore Energy	—		—			—			—			(15		)	—			(15		)
Other	—		—			—			—			(1		)	—			(1		)
Balance at June 30, 2018	$	2,537	$	(44	)	$	9,286		$	11,779		$	—		$	2,193		$	13,972

¹  Edison International recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on revenue recognition and the measurement of financial instruments.

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The following table provides SCE's changes in equity for the three and six months ended June 30, 2019:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2018	$	2,245	$	2,168	$	680	$	(23	)	$	8,715		$	13,785
Net income	—		—		—		—			323			323
Other comprehensive income	—		—		—		1			—			1
Cumulative effect of accounting change1	—		—		—		(5		)	5			—
Dividends declared on common stock ($0.4599 per share)	—		—		—		—			(200		)	(200		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(12		)	(12		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at March 31, 2019	$	2,245	$	2,168	$	683	$	(27	)	$	8,801		$	13,870
Net income	—		—		—		—			449			449
Other comprehensive income	—		—		—		1			—			1
Capital contribution from Edison International Parent	—		—		1,200		—			—			1,200
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(1		)	(1		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2019	$	2,245	$	2,168	$	1,886	$	(26	)	$	9,219		$	15,492

¹  SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

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The following table provides SCE's changes in equity for the three and six months ended June 30, 2018:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2017	$	2,245	$	2,168	$	671	$	(19	)	$	9,607		$	14,672
Net income	—		—		—		—			316			316
Other comprehensive income	—		—		—		2			—			2
Cumulative effect of accounting change1							(5		)	5			—
Dividends declared on common stock ($0.4875 per share)	—		—		—		—			(212		)	(212		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(2		)	(2		)
Noncash stock-based compensation	—		—		2		—			—			2
Balance at March 31, 2018	$	2,245	$	2,168	$	673	$	(22	)	$	9,684		$	14,748
Net income	—		—		—		—			327			327
Other comprehensive income	—		—		—		1			—			1
Dividends declared on common stock ($0.2299 per share)	—		—		—		—			(100		)	(100		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(3		)	(3		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2018	$	2,245	$	2,168	$	676	$	(21	)	$	9,878		$	14,946

¹  SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments.

Note 3.    Variable Interest Entities

A variable interest entity ("VIE") is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch, and compliance with regulatory and contractual requirements.

Variable Interest in VIEs that are not Consolidated

Power Purchase Agreements

SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants, contracts with qualifying facilities ("QF") that contain variable pricing provisions based on the price of natural gas and renewable energy contracts through which SCE absorbs commodity price risk. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants.

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As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to involvement with VIEs result from current amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its California Public Utilities Commission ("CPUC")-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 11 of the 2018 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,874 MW and 3,575 MW at June 30, 2019 and 2018, respectively, and the amounts that SCE paid to these projects were $122 million and $99 million for the three months ended June 30, 2019 and 2018, respectively, and $275 million and $239 million for the six months ended June 30, 2019 and 2018, respectively. These amounts are recoverable in customer rates, subject to reasonableness review.

Unconsolidated Trusts of SCE

SCE Trust II, Trust III, Trust IV, Trust V, and Trust VI were formed in 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities.

The Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE Board of Directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock.

The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of June 30, 2019 and December 31, 2018, consisted of investments of $400 million, $275 million, $325 million, $300 million, and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $400 million, $275 million, $325 million, $300 million, and $475 million of trust securities, respectively, and $10,000 each of common stock.

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The following table provides a summary of the trusts' income statements:

	Three months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6
2018
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6

	Six months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12
2018
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12

Note 4.    Fair Value Measurements

Recurring Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2019 and December 31, 2018, nonperformance risk was not material for Edison International and SCE.

Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value.

Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds.

Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument.

The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.

Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using an income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities.

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Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.

SCE

The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:

	June 30, 2019
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	3	$	63	$	(3	)	$	63
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,611		—		—		—			1,611
Fixed Income3	960		1,821		—		—			2,781
Short-term investments, primarily cash equivalents	79		21		—		—			100
Subtotal of nuclear decommissioning trusts4	2,650		1,842		—		—			4,492
Total assets	2,659		1,866		63		(3		)	4,585
Liabilities at fair value
Derivative contracts	—		34		—		(30		)	4
Total liabilities	—		34		—		(30		)	4
Net assets	$	2,659	$	1,832	$	63	$	27		$	4,581

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	December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	32	$	141	$	—		$	173
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,382		—		—		—			1,382
Fixed Income3	1,001		1,665		—		—			2,666
Short-term investments, primarily cash equivalents	120		95		—		—			215
Subtotal of nuclear decommissioning trusts4	2,503		1,760		—		—			4,263
Total assets	2,512		1,813		141		—			4,466
Liabilities at fair value
Derivative contracts	—		13		—		(7		)	6
Total liabilities	—		13		—		(7		)	6
Net assets	$	2,512	$	1,800	$	141	$	7		$	4,460

¹  Represents the netting of assets and liabilities under master netting agreements and cash collateral.

²  Approximately 71% of SCE's equity investments were in companies located in the United States at both June 30, 2019 and December 31, 2018.

³  Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $67 million at both June 30, 2019 and December 31, 2018.

⁴  Excludes net payables of $71 million and $143 million at June 30, 2019 and December 31, 2018, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Edison International Parent and Other

Edison International Parent and Other assets measured at fair value consisted of money market funds of $219 million and $115 million at June 30, 2019 and December 31, 2018, respectively, classified as Level 1.

SCE Fair Value of Level 3

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Fair value of net assets at beginning of period	$	95		$	81		$	141		$	101
Total realized/unrealized losses1	(32		)	(29		)	(78		)	(49		)
Fair value of net assets at end of period2	$	63		$	52		$	63		$	52
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	(7	)	$	7		$	(3	)	$	7

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

²  There were no material transfers into or out of Level 3 during 2019 and 2018.

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The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:

	Fair Value (in millions)					Significant	Range
	Assets		Liabilities		Valuation Technique(s)	Unobservable Input	(Weighted Average)
Congestion revenue rights
June 30, 2019	$	63	$	—	Auction prices	CAISO CRR auction prices	$(7.02) - $41.52 ($1.23)
December 31, 2018	141		—		Auction prices	CAISO CRR auction prices	$(7.41) - $41.52 ($1.62)

Level 3 Fair Value Uncertainty

For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value as of June 30, 2019, respectively.

Nuclear Decommissioning Trusts

SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers, and relevant credit information. There are no securities classified as Level 3 in the nuclear decommissioning trusts.

Fair Value of Debt Recorded at Carrying 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:

	June 30, 2019				December 31, 2018
(in millions)	Carrying Value1		Fair Value2		Carrying Value1		Fair Value2
Edison International	$	16,362	$	17,386	$	14,711	$	14,844
SCE	14,025		15,046		12,971		13,180

¹   Carrying value is net of debt issuance costs.

² The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.

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Note 5.    Debt and Equity Financing

Long-Term Debt

During the first quarter of 2019, SCE issued $500 million of 4.20% first and refunding mortgage bonds due in 2029 and $600 million of 4.875% first and refunding mortgage bonds due in 2049. The proceeds were used to repay commercial paper borrowings and for general corporate purposes.

In June 2019, Edison International Parent issued $600 million of 5.75% senior notes due June 15, 2027. Of the proceeds of the senior note offering, $450 million was contributed to SCE with the remainder to be used for general corporate and working capital purposes.

Credit Agreements and Short-Term Debt

In February 2019, SCE borrowed $750 million under a Term Loan Agreement due in February 2020, with a variable interest rate based on the London Interbank Offered Rate plus 70 basis points. The proceeds were used to repay SCE's commercial paper borrowings and for general corporate purposes.

In April 2019, Edison International Parent borrowed $1.0 billion under a Term Loan Agreement due in April 2020, with a variable interest rate based on the London Interbank Offered Rate plus 90 basis points. Of the proceeds of the term loan, $750 million was contributed to SCE with the remainder to be used for general corporate and working capital purposes. SCE used the $750 million contribution to repay its February 2019 Term Loan discussed above.

In June 2019, SCE and Edison International Parent amended the maturity date of their multi-year revolving credit facilities of $3.0 billion and $1.5 billion, respectively. The facilities now mature in May 2024, with an option to extend for an additional year, which may be exercised upon agreement between SCE or Edison International Parent and their respective lenders. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes.

In June 2019, SCE used the $450 million capital contribution from Edison International Parent to repay commercial paper borrowings and for general corporate purposes. At June 30, 2019, SCE's outstanding commercial paper, net of discount, was $213 million at a weighted-average interest rate of 2.89%. At June 30, 2019, letters of credit issued under SCE's credit facility aggregated $209 million, substantially all of which are scheduled to expire in twelve months or less. At December 31, 2018, the outstanding commercial paper, net of discount, was $720 million at a weighted-average interest rate of 3.23%.

Edison International Parent had no outstanding commercial paper at both June 30, 2019 and December 31, 2018.

Issuance of Common Stock

At-the-Market Program

In May 2019, Edison International filed a prospectus supplement and executed several distribution agreements with certain sales agents to establish an "at-the-market" ("ATM") program under which it may sell shares of its common stock having an aggregate sales price of up to $1.5 billion. As of June 30, 2019, no sales had occurred and Edison International has no obligation to sell the remaining shares available under the ATM program.

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Note 6.    Derivative Instruments

Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Commodity Price Risk

Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements.

Credit and Default Risk

Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments.

Certain power and gas contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $4 million as of June 30, 2019 and December 31, 2018, for which SCE has posted no collateral and $17 million collateral at June 30, 2019 and December 31, 2018, respectively, to its counterparties for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2019, SCE would be required to post $5 million of additional collateral.

Fair Value of Derivative Instruments

SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2019
	Derivative Assets								Derivative Liabilities								Net Assets
(in millions)	Short-Term			Long-Term1		Subtotal			Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	58		$	8	$	66		$	34		$	—	$	34		$	32
Gross amounts offset in the consolidated balance sheets	(3		)	—		(3		)	(3		)	—		(3		)	—
Cash collateral posted3	—			—		—			(27		)	—		(27		)	27
Net amounts presented in the consolidated balance sheets	$	55		$	8	$	63		$	4		$	—	$	4		$	59

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	December 31, 2018
	Derivative Assets						Derivative Liabilities								Net Assets
(in millions)	Short-Term		Long-Term1		Subtotal		Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	171	$	2	$	173	$	13		$	—	$	13		$	160
Gross amounts offset in the consolidated balance sheets	—		—		—		—			—		—			—
Cash collateral posted	—		—		—		(7		)	—		(7		)	7
Net amounts presented in the consolidated balance sheets	$	171	$	2	$	173	$	6		$	—	$	6		$	167

¹ Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.

² Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.

³ At June 30, 2019, SCE posted $46 million of cash, of which $27 million was offset against net derivative liabilities and $19 million was reflected in "Other current assets" on the consolidated balance sheets.

Income Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in the consolidated statements of cash flows.

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Realized gains (losses)	$	(2	)	$	(8	)	$	30		$	(20	)
Unrealized losses	(78		)	(12		)	(128		)	(26		)

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2019	December 31, 2018
Electricity options, swaps and forwards	GWh	4,750	2,786
Natural gas options, swaps and forwards	Bcf	28	20
Congestion revenue rights	GWh	30,247	54,453

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Note 7.    Revenue

SCE's revenue is disaggregated by two revenue sources:

• Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

• Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.

The following table is a summary of SCE's revenue:

	Three months ended June 30, 2019						Three months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities		Cost-Recovery Activities		Total Consolidated
Revenues from contracts with customers1,2,3	$	1,532	$	767	$	2,299	$	1,534	$	1,146	$	2,680
Alternative revenue programs and other operating revenue4	5		496		501		1		122		123
Total operating revenue	$	1,537	$	1,263	$	2,800	$	1,535	$	1,268	$	2,803

	Six months ended June 30, 2019						Six months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities			Cost-Recovery Activities			Total Consolidated
Revenues from contracts with customers1,2,3	$	3,034	$	1,724	$	4,758	$	3,070		$	2,338		$	5,408
Alternative revenue programs and other operating revenue4	53		805		858		(22		)	(29		)	(51		)
Total operating revenue	$	3,087	$	2,529	$	5,616	$	3,048		$	2,309		$	5,357

¹  In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and the three months ended March 31, 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. SCE recorded the impact of the 2018 GRC final decision in the second quarter of 2019, including a $265 million reduction in revenue. The 2018 GRC final decision results in 2018 and 2019 base rate revenue requirements of $5.116 billion and $5.451 billion, respectively. For further information, see Note 1.

²  At June 30, 2019 and December 31, 2018, SCE's receivables related to contracts from customers were $1.2 billion and $1.1 billion, respectively, which include accrued unbilled revenue of $562 million and $482 million, respectively.

³   Includes SCE's franchise fees billed to customers of $25 million and $29 million for the three months ended June 30, 2019 and 2018, respectively, and $53 million and $57 million for the six months ended June 30, 2019 and 2018, respectively.

⁴  Includes differences between amounts billed and authorized levels for both CPUC and FERC.

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Note 8.    Income Taxes

Effective Tax Rate

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Income from continuing operations before income taxes	$	344		$	289		$	540		$	500
Provision for income tax at federal statutory rate of 21%	72			61			113			105
Increase in income tax from:
State tax, net of federal benefit	2			—			(5		)	(5		)
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	2			(1		)	(4		)	(2		)
Total income tax benefit from continuing operations	$	(78	)	$	(9	)	$	(190	)	$	(40	)
Effective tax rate	(22.7		)%	(3.1		)%	(35.2		)%	(8.0		)%
SCE:
Income from continuing operations before income taxes	$	381		$	325		$	599		$	635
Provision for income tax at federal statutory rate of 21%	80			68			126			133
Increase in income tax from:
State tax, net of federal benefit	3			3			(2		)	4
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	3			(4		)	(3		)	(7		)
Total income tax benefit from continuing operations	$	(68	)	$	(2	)	$	(173	)	$	(8	)
Effective tax rate	(17.8		)%	(0.6		)%	(28.9		)%	(1.3		)%

¹ Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.

2018 GRC Final Decision

SCE recorded a tax benefit of $80 million related to the adoption of the 2018 GRC final decision primarily related to tax benefits on property-related items. This change primarily results from an updated estimate in the amount of excess deferred taxes returned to ratepayers for the year 2018.

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Tax Disputes

Tax years that remain open for examination by the Internal Revenue Service ("IRS") and the California Franchise Tax Board are 2015 – 2017 and 2010 – 2017, respectively. Edison International has settled all open tax positions with the IRS for taxable years prior to 2013. 

In the fourth quarter of 2018, Edison International recorded the impacts of a settlement reached with the California Franchise Tax Board for tax years 1994 – 2006 that resulted in a $65 million refund of tax and interest. This refund was received in the second quarter of 2019. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board.

Note 9.    Compensation and Benefit Plans

Pension Plans

Net periodic pension expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Service cost	$	32		$	32		$	64		$	64
Non-service cost (benefit)
Interest cost	39			35			78			70
Expected return on plan assets	(52		)	(56		)	(104		)	(113		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			4			4
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(16	)	$	(29	)	$	(33	)
Total expense recognized	$	18		$	16		$	35		$	31
SCE:
Service cost	$	31		$	31		$	62		$	62
Non-service cost (benefit)
Interest cost	36			32			71			64
Expected return on plan assets	(49		)	(54		)	(98		)	(107		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			3			3
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(17	)	$	(31	)	$	(34	)
Total expense recognized	$	17		$	14		$	31		$	28

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2019, and $4 million and $3 million, respectively, for the six months ended June 30, 2019. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2018, and $4 million and $3 million, respectively, for the six months ended June 30, 2018.

² Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

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Postretirement Benefits Other Than Pensions ("PBOP")

Net periodic PBOP expense components for continuing operations for Edison International and SCE are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Service cost	$	8		$	10		$	16		$	19
Non-service cost (benefit)
Interest cost	21			21			42			42
Expected return on plan assets	(28		)	(30		)	(56		)	(60		)
Amortization of prior service cost	—			(1		)	—			(1		)
Amortization of net gain	(1		)	—			(2		)	—
Regulatory adjustment	6			—			12			—
Total non-service cost benefit1	$	(2	)	$	(10	)	$	(4	)	$	(19	)
Total expense	$	6		$	—		$	12		$	—

¹ Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

Note 10.    Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):

	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Stocks	—	*		*		$	1,611	$	1,381
Municipal bonds	2057	$	624	$	665	762		767
U.S. government and agency securities	2067	1,184		1,193		1,326		1,288
Corporate bonds	2068	621		573		693		611
Short-term investments and receivables/payables1	One-year	27		70		29		73
Total		$	2,456	$	2,501	$	4,421	$	4,120

* Equity investments are measured at fair value.

¹  Short-term investments include $14 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 1, 2019 and January 2, 2019 as of June 30, 2019 and December 31, 2018, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.7 billion and $1.4 billion at June 30, 2019 and December 31, 2018, respectively, and other-than-temporary impairments of $160 million and $170 million at the respective periods.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $383 million and $323 million at June 30, 2019 and December 31, 2018, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion and $3.8 billion at June 30, 2019 and December 31, 2018, respectively.

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The following table summarizes the gains and (losses) for the trust investments:

	Three months ended June 30,					Six months ended June 30,
(in millions)	2019		2018			2019		2018
Gross realized gains	$	22	$	26		$	45	$	87
Gross realized loss	—		(2		)	—		(10		)
Net unrealized gains (losses) for equity securities	38		(5		)	206		(68		)

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.

Note 11.    Regulatory Assets and Liabilities

Regulatory Assets

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	987	$	814
Power contracts	285		305
Other	22		14
Total current	1,294		1,133
Long-term:
Deferred income taxes, net of liabilities	3,800		3,589
Pensions and other postretirement benefits	278		271
Power contracts	561		700
Unamortized investments, net of accumulated amortization	113		118
Unamortized loss on reacquired debt	148		153
Regulatory balancing accounts	346		360
Environmental remediation	132		134
Other	91		55
Total long-term	5,469		5,380
Total regulatory assets	$	6,763	$	6,513

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Regulatory Liabilities

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	728	$	1,080
Energy derivatives	24		158
2018 GRC1	—		274
Other	15		20
Total current	767		1,532
Long-term:
Cost of removal	2,737		2,769
Re-measurement of deferred taxes2	2,530		2,776
Recoveries in excess of ARO liabilities3	1,454		1,130
Regulatory balancing accounts	1,591		1,344
Other postretirement benefits	194		185
Other	179		125
Total long-term	8,685		8,329
Total regulatory liabilities	$	9,452	$	9,861

¹ During 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirement adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded regulatory liabilities associated with these adjustments. In May 2019, these regulatory liabilities were reversed due to the adoption of 2018 GRC final decision. For further information, see Note 1.

²  SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first six months of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8.

³ Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.

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Net Regulatory Balancing Accounts

The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:

(in millions)	June 30, 2019			December 31, 2018
Asset (liability)
Energy resource recovery account	$	636		$	815
Portfolio allocation balancing account1	143			—
New system generation balancing account	(81		)	(74		)
Public purpose programs and energy efficiency programs	(1,285		)	(1,200		)
Tax accounting memorandum account and pole loading balancing account2	(19		)	28
Base revenue requirement balancing account3	(462		)	(628		)
DOE litigation memorandum account	(70		)	(69		)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(102		)	(81		)
FERC balancing accounts	(88		)	(180		)
Catastrophic event memorandum account	92			144
Wildfire expense memorandum account	122			128
Fire risk mitigation memorandum account4	97			—
Other	31			(133		)
Liability	$	(986	)	$	(1,250	)

¹  In May 2019, the CPUC approved a portfolio allocation balancing account to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs of all generation resources that are eligible for cost recovery.

²  The 2018 GRC final decision approved changes to expand the use of the two-way TAMA. The expanded TAMA will track revenue differences resulting from changes in income tax expense caused by net revenue changes, mandatory or elective tax law changes, tax accounting changes, tax procedural changes, or tax policy changes during the 2018 GRC period.

³ The base revenue requirement balancing account at June 30, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017.

⁴ In March 2019, the CPUC approved a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to the amount in SCE's revenue requirement.

Note 12.    Commitments and Contingencies

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business.

Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

SCE has agreed to indemnify the City of Redlands, California in connection with the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. As of June 30, 2019, there has been no groundwater contamination identified. Thus, SCE has not recorded a liability related to this indemnity.

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Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows.

Southern California Wildfires and Mudslides

Multiple factors have contributed to increased wildfires, faster progression of wildfires and the increased damage from wildfires across SCE's service territory and throughout California. These include the buildup of dry vegetation in areas severely impacted by years of historic drought, lack of adequate clearing of hazardous fuels by responsible parties, higher temperatures, lower humidity, and strong Santa Ana winds. At the same time that wildfire risk has been increasing in Southern California, residential and commercial development has occurred and is occurring in some of the highest-risk areas. Such factors can increase the likelihood and extent of wildfires.

SCE has determined that approximately 27% of its service territory is in areas identified as high fire risk (“HFRA”). The reduction of the areas identified by SCE as HFRA from 35% to 27% of its service territory resulted from a thorough evaluation of the areas after the CPUC released its High Fire-Threat District maps in 2018.

In December 2017 and November 2018, wind-driven wildfires impacted portions of SCE's service territory, causing substantial damage to both residential and business properties and service outages for SCE customers. The investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). While the progression of these two fires remains under review, the December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE information, the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two confirmed fatalities. The largest of the November 2018 fires, known as the Woolsey Fire, originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE information, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three confirmed fatalities.

As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by mudslides and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with two additional fatalities presumed.

The extent of liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether SCE substantially caused or contributed to the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and state laws in connection with the ignition of a wildfire.

Final determinations of liability for the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (each a "2017/2018 Wildfire/Mudslide Event," and, collectively, the "2017/2018 Wildfire/Mudslide Events"), including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes. Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require a liability to be accrued under accounting standards. Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the 2017/2018 Wildfire/Mudslide Events and have accrued a liability of $4.7 billion in the

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fourth quarter of 2018. In the fourth quarter of 2018, Edison International and SCE also recorded expected recoveries from insurance of $2.0 billion and expected recoveries through FERC electric rates of $135 million. The net charge to earnings recorded in the fourth quarter of 2018 was $1.8 billion after-tax. The liability that was accrued corresponds to the lower end of the reasonably estimated range of expected potential losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE will seek to offset any actual losses realized with recoveries from insurance policies in place at the time of the events and, to the extent actual losses exceed insurance, through electric rates. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not reasonably or prudently incurred. See "—Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" for additional information.

External Investigations and Internal Review

The VCFD and CAL FIRE have issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The VCFD and CAL FIRE findings do not determine legal causation of or assign legal liability for the Thomas or Koenigstein Fires; final determinations of legal causation and liability would only be made during lengthy and complex litigation. The reports did not address the causes of the Montecito Mudslides. SCE expects that the VCFD and CAL FIRE will ultimately also issue a report concerning the departments' findings of origin and cause of the Woolsey Fire but cannot predict when this report will be released. The CPUC's Safety Enforcement Division ("SED") is also conducting investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the fires. SCE cannot predict when the SED's investigations will be completed.

SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes.

Thomas Fire

On March 13, 2019, the VCFD and CAL FIRE issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that molten metal was found on the ground in that location during their investigation. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the progression of the Thomas Fire and the extent of damages that may be attributable to that fire.

Koenigstein Fire

On March 20, 2019, the VCFD and CAL FIRE issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. SCE has previously disclosed that SCE believed its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the progression of the Koenigstein Fire and the extent of damages that may be attributable to that fire.

Montecito Mudslides

SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, could have proximately caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused or contributed to by the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides.

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Woolsey Fire

SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outage on SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage. Whether the November 8, 2018 outage was related to contact being made between the support wire and the electrical wire has not been determined. SCE believes that its equipment could be found to have been associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE.

Wildfire-related Litigation

Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties in the case of the Thomas and Koenigstein Fires and the Montecito Mudslides, and in Ventura and Los Angeles Counties in the case of the Woolsey Fire, allege, among other things, negligence, inverse condemnation, trespass, private nuisance, personal injury, wrongful death, and violations of the California Public Utilities and Health and Safety Codes. SCE expects to be the subject of additional lawsuits related to the 2017/2018 Wildfire/Mudslide Events. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs.

The Thomas and Koenigstein Fires and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been coordinated in the Los Angeles Superior Court. On October 4, 2018, the Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In January 2019, SCE filed a cross-complaint against certain governmental entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides.

Additionally, in July 2018 and September 2018, two separate derivative lawsuits for breach of fiduciary duties and unjust enrichment were filed in the Los Angeles Superior Court against certain current and former members of the Boards of Directors of Edison International and SCE. Edison International and SCE are identified as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants violated their fiduciary duties by causing or allowing SCE to operate in an unsafe manner in violation of relevant regulations, resulting in substantial liability and damage from the Thomas and Koenigstein Fires and the Montecito Mudslides. The July 2018 lawsuit has been dismissed at plaintiff's request.

In November 2018, a purported class action lawsuit alleging securities fraud and related claims was filed in the federal court against Edison International, SCE and certain current and former officers of Edison International and SCE. The plaintiff alleges that Edison International and SCE made false and/or misleading statements in filings with the Securities and Exchange Commission by failing to disclose that SCE had allegedly failed to maintain its electric transmission and distribution networks in compliance with safety regulations, and that those alleged safety violations led to fires that occurred in 2018, including the Woolsey Fire.

In January 2019, two separate derivative lawsuits alleging breach of fiduciary duties, securities fraud, misleading proxy statements, unjust enrichment, and related claims were filed in federal court against all current and certain former members of the Boards of Directors and certain current and former officers of Edison International and SCE. Edison International and SCE are named as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants breached their fiduciary duties and made misleading statements or allowed misleading statements to be made (i) between March 21, 2014 and August 10, 2015, with respect to certain ex parte communications between SCE and CPUC decision-makers concerning the settlement of the San Onofre Order Instituting Investigation proceeding (the "San Onofre OII") and (ii) from February 23, 2016 to the present, concerning compliance with applicable laws and regulations concerning electric system maintenance and operations related to wildfire risks. The lawsuits generally allege that these breaches of duty and misstatements led to substantial liability and damage resulting from the disclosure of SCE's ex parte communications in connection with the San Onofre OII settlement, and from the 2017/2018 Wildfire/Mudslide Events. For more information regarding the San Onofre OII, see Note 12 in the 2018 Form 10-K.

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Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates

The process for estimating losses associated with wildfire litigation claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including but not limited to estimates based on currently available information and assessments, opinions regarding litigation risk, and prior experience with litigating and settling other wildfire cases. As additional information becomes available, management estimates and assumptions regarding the causes and financial impact of the 2017/2018 Wildfire/Mudslide Events may change. Such additional information is expected to become available from multiple external sources, during the course of litigation, and from SCE's ongoing internal review, including, among other things, information regarding the extent of damages that may be attributable to any fire determined to have been substantially caused by SCE's equipment, information that may be obtained from the equipment in CAL FIRE's possession, and information pertaining to fire progression, suppression activities, alleged damages and insurance claims.

As described above, the $1.8 billion after-tax liability corresponds to the lower end of the reasonably estimated range of expected losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE currently believe that it is reasonably possible that the amount of the actual loss will be greater than the amount accrued. However, Edison International and SCE are currently unable to reasonably estimate an upper end of the range of expected losses given the uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge, whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the preliminary nature of the litigation processes.

For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE has $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. SCE also had other general liability insurance coverage of approximately $450 million, but it is uncertain whether these other policies would apply to liabilities alleged to be related to the Montecito Mudslides. For the Woolsey Fire, SCE has an additional $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. At June 30, 2019, Edison International and SCE had recorded $2.0 billion for expected insurance recoveries associated with the recorded loss for the 2017/2018 Wildfire/Mudslide Events. SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. The amount of the receivable is subject to change based on additional information. Recovery of these costs is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire-related costs is SDG&E's requests for cost recovery related to 2007 wildfire activity, where FERC allowed recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that SDG&E did not meet the CPUC's prudency standard. As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in future wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a conclusion that recovery is probable. SCE will seek recovery of the CPUC portion of any uninsured wildfire-related costs through its WEMA or its Catastrophic Event Memorandum Account ("CEMA"). See "Recovery of Wildfire-Related Costs" below.

Through the operation of its FERC Formula Rate, and based upon the precedent established in SDG&E's recovery of FERC-jurisdictional wildfire-related costs, SCE believes it is probable it will recover its FERC-jurisdictional wildfire and mudslide related costs and has recorded a regulatory asset of $135 million, the FERC portion of the $4.7 billion liability accrued.

At June 30, 2019 and December 31, 2018, Edison International's and SCE's balance sheets include estimated losses (established at the lower end of the reasonably estimated range of expected losses) of $4.7 billion for the 2017/2018 Wildfire/Mudslide Events.

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Current Wildfire Insurance Coverage

SCE has approximately $1.2 billion of wildfire-specific insurance coverage for events that may occur during the period June 1, 2019 through June 30, 2020, subject to up to $115 million of co-insurance and $50 million of self-insured retention, which results in net coverage of approximately $1 billion. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in additional material self-insured costs in the event of multiple wildfire occurrences during a policy period or with a single wildfire with damages in excess of the policy limits.

SCE's cost of obtaining wildfire insurance coverage has increased significantly as a result of, among other things, the number of recent and significant wildfire events throughout California and the application of inverse condemnation to investor-owned utilities. As such, SCE may not be able to obtain sufficient wildfire insurance at a reasonable cost.

Based on policies currently in effect, SCE anticipates that its wildfire insurance expense in 2019, prior to any regulatory deferrals, will total approximately $400 million. In February 2019, the CPUC approved recovery of $107 million of the costs incurred by SCE to obtain a 12-month, $300 million wildfire insurance policy in December 2017. As a result of this decision, SCE will recover these insurance premiums during 2019. As of June 30, 2019, SCE had regulatory assets of approximately $193 million related to wildfire insurance costs and believes that such amounts are probable of recovery. While SCE believes that amounts deferred are probable of recovery, there is no assurance that SCE will be allowed to recover costs that have been incurred, or costs incurred in the future for additional wildfire insurance, in electric rates.

Recovery of Wildfire-Related Costs

Pre-AB 1054 Cost Recovery

California courts have previously found investor-owned utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property damages resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement through recovery of uninsured wildfire-related costs in electric rates. However, in November 2017, the CPUC issued a decision denying SDG&E's request to include in its rates uninsured wildfire-related costs arising from several 2007 wildfires, finding that SDG&E did not meet the prudency standard because it did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In July 2018, the CPUC denied both SDG&E's application for rehearing on its cost recovery request and a joint application for rehearing filed by SCE and PG&E limited to the applicability of inverse condemnation principles in the same proceeding. Because the California Court of Appeal and the California Supreme Court both denied SDG&E's petitions for review of the CPUC's denial of SDG&E's application, SDG&E has petitioned the United States Supreme Court to conduct the same review.

Edison International and SCE continue to pursue legislative, regulatory and legal strategies to address the application of a strict liability standard to wildfire-related damages without the ability to recover resulting costs in electric rates.

2019 Wildfire Legislation

On July 12, 2019, California Assembly Bill 1054 ("AB 1054") was signed by the Governor of California and became effective immediately. The summary of the wildfire legislation below is based on SCE’s interpretation of AB 1054.

AB 1054 establishes a wildfire fund to reimburse utilities for payment of third-party damage claims arising from certain wildfires that exceed, in aggregate in a calendar year, the greater of $1 billion or the utility's insurance coverage. The wildfire fund will only be available for claims related to wildfires ignited after July 12, 2019 that are determined to have been caused by a utility by the responsible government investigatory agency.

The wildfire fund can take one of two forms, an insurance fund or a liquidity fund. SCE, PG&E and SDG&E have notified the CPUC of their commitment to the insurance fund. The insurance fund will be established if both SCE and SDG&E make their initial contributions to the fund by September 10, 2019. If either SCE or SDG&E fail to make their initial contributions by the required date, the insurance fund will not be established and the wildfire fund will be a liquidity fund. Ratepayers are expected to contribute $10.5 billion to the wildfire fund that is established through an anticipated bond offering securitized through a dedicated rate component attributable to the California Department of Water Resources.

If the insurance fund is established, the CPUC will be required to apply a new standard when assessing the prudency of a participating utility in connection with a request for recovery of wildfire costs and, if the utility has a valid safety certification, shareholder liability for disallowed wildfire costs will be subject to a cap for as long as the fund is in existence.

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Further, under AB 1054, SCE is required to make certain capital investments without a return on equity, is required to file a wildfire mitigation plan every three years beginning in 2020, and can obtain an annual safety certification upon the submission of certain required safety information, including an approved wildfire mitigation plan. On July 25, 2019, SCE obtained its initial safety certification that will be valid for twelve months.

A lawsuit challenging the validity of AB 1054 was filed in federal court on July 19, 2019. Edison International and SCE are unable to predict the outcome of this lawsuit.    

Insurance Fund

The insurance fund, if it is established, is expected to be initially funded by the $10.5 billion to be contributed by ratepayers and $7.5 billion in initial contributions from PG&E, SCE and SDG&E. PG&E's participation in, and contributions to, the insurance fund is subject to it emerging from bankruptcy and meeting certain other conditions prior to June 30, 2020. If PG&E is unable to participate in the fund, the investor-owned utility initial contributions to the fund are expected to be approximately $2.7 billion. SCE, SDG&E and PG&E are also expected to make aggregate annual contributions of $3 billion to the insurance fund over a 10-year period. If PG&E is unable to participate in the fund, the investor-owned utility aggregate annual contributions to the fund are expected to be approximately $1 billion.

SCE has committed to make an initial contribution of approximately $2.4 billion, and ten annual contributions of approximately $95 million per year starting on January 1, 2020, to the insurance fund. Edison International and SCE are evaluating funding options to support SCE's initial contribution to the insurance fund and anticipate raising approximately $1.2 billion from the issuance of Edison International equity and approximately $1.2 billion from the issuance of long-term debt at SCE. SCE's contributions to the insurance fund will not be recoverable through electric rates and will be excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. SCE will also not be entitled to cost recovery for any borrowing costs incurred in connection with its contributions to the insurance fund.

Edison International and SCE are currently evaluating the accounting impact of SCE's anticipated contributions to the insurance fund, which may include a material charge to the earnings of Edison International and SCE that would not be greater than the total of SCE's anticipated contributions to the insurance fund. SCE may, as a result of incurring a material charge, be temporarily unable to obtain financing through the issuance of first mortgage bonds, in which case SCE may be required to issue subordinated or unsecured debt and, as a result, could incur increased borrowing costs relative to first mortgage bonds.

Participating investor-owned utilities will be reimbursed from the insurance fund for eligible claims, subject to the fund administrator's review, and will be required to reimburse the insurance fund for withdrawn amounts that the CPUC disallows, subject, in some instances, to the Liability Cap (as defined below). If the utility has maintained a valid safety certification and its actions or inactions that resulted in the wildfire are not found to constitute conscious or willful disregard of the rights and safety of others, the aggregate requirement to reimburse the insurance fund over a trailing three calendar year period is capped at 20% of the equity portion of the utility's transmission and distribution rate base in the year of the prudency determination ("Liability Cap"). The initial Liability Cap for SCE will be approximately $2.5 billion based on its 2019 rate base, and will be adjusted annually. SCE will not be allowed to recover borrowing costs incurred to reimburse the fund for amounts that the CPUC disallows. The insurance fund, and consequently the Liability Cap, will terminate when the administrator determines that the insurance fund has been exhausted.

AB 1054 Prudency Standard

If the insurance fund is established, AB 1054 creates a new standard that the CPUC must apply to determine whether a utility was prudent and therefore able to recover wildfire costs through the insurance fund or, if the insurance fund has been exhausted, through electric rates. The new standard, if it is established, will apply to requests for recovery of wildfire costs for wildfires ignited after July 12, 2019. Under AB 1054, prudent conduct occurs when the conduct of a utility related to the ignition was consistent with actions that a reasonable utility would have undertaken under similar circumstances, at the relevant point in time, and based on the information available at that time. Prudent conduct under the AB 1054 standard is not limited to the optimum practice, method, or act to the exclusion of others, but rather encompasses a spectrum of possible practices, methods, or acts consistent with utility system needs, the interest of the ratepayers, and the requirements of governmental agencies. AB 1054 also provides that the CPUC may determine that wildfire costs may be recoverable, in whole or in part, by taking into account factors within and outside the utility's control, including humidity, temperature, and winds. Further, utilities with a valid safety certification will be presumed to have acted prudently related to a wildfire ignition unless a party in the cost recovery proceeding creates serious doubt as to the reasonableness of the utility's conduct, at which time, the burden shifts back to the utility to prove its conduct was reasonable. If a utility does not have a valid safety certification, it will have the burden to prove, based on a preponderance of evidence, that its conduct was prudent.

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Liquidity Fund

If either SCE or SDG&E fail to make their initial contributions to the wildfire fund by September 10, 2019, the wildfire fund will be a liquidity fund and is expected to be capitalized solely by the $10.5 billion ratepayer contribution to provide a line of credit to reimburse investor-owned utilities initially for the payment of eligible claims. Utilities will be required to repay amounts reimbursed by the liquidity fund after the CPUC conducts a prudency review under the prudency standard applied by the CPUC before the adoption of AB 1054 and California Senate Bill 901. Amounts repaid that the CPUC determines were prudently incurred will be recoverable thorough electric rates. SCE will not be allowed to recover borrowing costs incurred to repay the fund for amounts that the CPUC disallows.

Capital Expenditure Requirement

Under AB 1054, approximately $1.6 billion spent by SCE on wildfire risk mitigation capital expenditures cannot be included in the equity portion of SCE's rate base. SCE can apply for an irrevocable order from the CPUC to finance these capital expenditures, including through the issuance of securitized bonds, and can recover any prudently incurred financing costs. SCE expects to finance this capital requirement by issuing securitized bonds.

Requested Increases to Returns on Common Equity

In April 2019, in addition to other requested increases to its CPUC and FERC returns on common equity, SCE requested from both the CPUC and FERC an additional 6% return on common equity to compensate investors for current wildfire risk. SCE committed to seek to reduce or remove the additional returns on common equity if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform and is currently evaluating the impact of AB 1054 on its requests.

Environmental Remediation

SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring, and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At June 30, 2019, SCE's recorded estimated minimum liability to remediate its 21 identified material sites (sites with a liability balance at June 30, 2019, in which the upper end of the range of the costs is at least $1 million) was $133 million, including $88 million related to San Onofre. In addition to these sites, SCE also has 15 immaterial sites with a liability balance as of June 30, 2019, for which the total minimum recorded liability was $4 million. Of the $137 million total environmental remediation liability for SCE, $132 million has been recorded as a regulatory asset. SCE expects to recover $41 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $91 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $141 million and $7 million, respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for each of the next five years are expected to range from $7 million to $18 million. Costs incurred for the six months ended June 30, 2019 and 2018 were $2 million and $6 million, respectively.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position, or cash flows. There can be no

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assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

Nuclear Insurance

SCE is a member of NEIL, a mutual insurance company owned by entities with nuclear facilities. NEIL provides insurance for nuclear property damage, including damages caused by acts of terrorism up to specified limits, and for accidental outages for active facilities. The amount of nuclear property damage insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $50 million and $1.06 billion, respectively. If NEIL losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year.

Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $13.9 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available through a Facility Form issued by American Nuclear Insurers ("ANI"). SCE withdrew from participation in the secondary insurance pool for San Onofre for offsite liability insurance effective January 5, 2018. Based on its ownership interests in Palo Verde, SCE could be required to pay a maximum of approximately $65 million per nuclear incident for future incidents. However, it would have to pay no more than approximately $10 million per future incident in any one year. SCE could be required to pay a maximum of approximately $255 million per nuclear incident and a maximum of $38 million per year per incident for liabilities arising from events prior to January 5, 2018, although SCE is not aware of any such events.

Spent Nuclear Fuel

Under federal law, the DOE is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period.

In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE's share $112 million) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. In April 2016, SCE, as operating agent, settled a lawsuit on behalf of the San Onofre owners against the DOE for $162 million (SCE's share $124 million, which included reimbursement for approximately $2 million in legal and other costs), to compensate for damages caused by the DOE's failure to meet its obligation to begin accepting spent nuclear fuel for the period from January 1, 2006 to December 31, 2013. In August 2018, the CPUC approved SCE's proposal to return the SCE share of the award to customers based on the amount that customers actually contributed for fuel storage costs; resulting in approximately $105.6 million of the SCE share being returned to customers and the remaining $16.6 million being returned to shareholders. Of the $105.6 million, $71.6 million was applied against the remaining San Onofre Regulatory Asset in accordance with the Revised San Onofre Settlement Agreement.

The April 2016 settlement also provided for a claim submission/audit process for expenses incurred from 2014 – 2016, where SCE may submit a claim for damages caused by the DOE failure to accept spent nuclear fuel each year, followed by a government audit and payment of the claim. This process made additional legal action to recover damages incurred in 2014 –2016 unnecessary. The first such claim covering damages for 2014 – 2015 was filed on September 30, 2016 for approximately $56 million. In February 2017, the DOE reviewed the 2014 – 2015 claim submission and reduced the original request to approximately $43 million (SCE's share was approximately $34 million). SCE accepted the DOE's determination, and the government paid the 2014 – 2015 claim under the terms of the settlement. In October 2017, SCE filed a claim covering damages for 2016 for approximately $58 million. In May 2018, the DOE approved reimbursement of approximately $45 million (SCE's share was approximately $35 million) of SCE's 2016 damages, disallowing recovery of approximately $13 million. SCE accepted the DOE's determination, and the government paid the 2016 claim under the terms of the settlement. The damages awards are subject to CPUC review as to how the amounts will be refunded among customers, shareholders, or to offset other costs.

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Note 13. Leases

Leases as Lessee

SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are primarily 10 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases.

The following table summarizes SCE's lease payments for operating and finance leases as of June 30, 2019.

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2019	$	58	$	21	$	1
2020	70		33		1
2021	48		27		1
2022	48		22		2
2023	47		17		2
Thereafter	536		104		9
Total lease payments	$	807	$	224	$	16
Amount representing interest4	232		61		6
Lease liabilities	$	575	$	163	$	10

At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					(25		)
Amount representing interest					(33		)
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴  Lease payments are discounted to their present value using SCE's incremental borrowing rates.

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Supplemental balance sheet information related to SCE's leases was as follows:

(in millions)	June 30, 2019
Operating leases:
Operating lease ROU assets	$	738
Current portion of operating lease liabilities	107
Operating lease liabilities	631
Total operating lease liabilities	$	738
Finance leases included in:
Utility property, plant and equipment, gross	$	14
Accumulated depreciation	(4		)
Utility property, plant and equipment, net	10
Other current liabilities	1
Other long-term liabilities	9
Total finance lease liabilities	$	10

The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:

(in millions)	Three months ended June 30, 2019		Six months ended June 30, 2019
PPA leases:
Operating lease cost	$	30	$	60
Variable lease cost	619		991
Total PPA lease cost	649		1,051
Other operating leases cost	12		23
Total lease cost	$	661	$	1,074

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Other information related to leases was as follows:

(in millions, except lease term and discount rate)	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	60
Other leases	23
ROU assets obtained in exchange for lease obligations:
Other operating leases	15
Weighted average remaining lease term (in years):
Operating leases
PPA leases	15.58
Other leases	12.75
PPA Finance leases	11.92
Weighted average discount rate:
Operating leases
PPA leases	4.40		%
Other leases	3.89		%
PPA Finance leases	8.72		%

Leases as Lessor

SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the three and six months ended June 30, 2019, SCE recognized $5 million and $10 million, respectively, in lease income, which is included in operating revenue on the consolidated statements of income. At June 30, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:

(in millions)
2019	$	9
2020	15
2021	10
2022	10
2023	8
Thereafter	155
Total	$	207

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Note 14.    Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(58	)	$	(46	)	$	(50	)	$	(43	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			2			3			4
Other2	—			—			(10		)	(5		)
Change	1			2			(7		)	(1		)
Ending Balance	$	(57	)	$	(44	)	$	(57	)	$	(44	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

²  Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

SCE's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(27	)	$	(22	)	$	(23	)	$	(19	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			1			2			3
Other2	—			—			(5		)	(5		)
Change	1			1			(3		)	(2		)
Ending Balance	$	(26	)	$	(21	)	$	(26	)	$	(21	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

²  SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

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Note 15.    Other Income and Expense

Other income and expense are as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
SCE other income and expense:
Equity allowance for funds used during construction	$	32		$	22		$	49		$	44
Increase in cash surrender value of life insurance policies and life insurance benefits	9			6			18			14
Interest income	7			5			16			9
Net periodic benefit income – non-service components	16			27			35			53
Civic, political and related activities and donations	(8		)	(12		)	(21		)	(16		)
Other	—			2			(3		)	(3		)
Total SCE other income and expense	56			50			94			101
Other income and expense of Edison International Parent and Other:
Net periodic benefit costs – non-service components	—			(1		)	(2		)	(1		)
Other	(1		)	—			1			—
Total Edison International other income and expense	$	55		$	49		$	93		$	100

Note 16.    Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International						SCE
	Six months ended June 30,
(in millions)	2019			2018			2019			2018
Cash payments for interest and taxes:
Interest, net of amounts capitalized	$	301		$	254		$	268		$	233
Tax refunds, net	(65		)	(93		)	(101		)	(18		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	200		$	197		$	—		$	100
Preferred and preference stock	12			12			12			12

SCE's accrued capital expenditures at June 30, 2019 and 2018 were $463 million and $412 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid.

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Note 17. Related-Party Transactions

SCE purchased wildfire liability insurance with premiums of $74 million and $260 million from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, for the three month and six months ended June 30, 2019, respectively. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows:

(in millions)	June 30, 2019		December 31, 2018
Long-term insurance receivable due from affiliate	$	1,000	$	1,000
Prepaid insurance1	74		13
Current payables due to affiliate2	—		4

¹ Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.

² Reflected in "Accounts payable" on SCE's consolidated balance sheets.

The amortization expense for wildfire-related insurance was $41 million and $35 million for the three months ended June 30, 2019 and 2018 respectively, and $72 million and $71 million for the six months ended June 30, 2019 and 2018, respectively.

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CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The management of Edison International and SCE, under the supervision and with the participation of Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers, have evaluated the effectiveness of Edison International's and SCE's disclosure controls and procedures (as that term is defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended), respectively, as of the end of the second quarter of 2019. Based on that evaluation, Edison International's and SCE's respective Chief Executive Officers and Chief Financial Officers have each concluded that, as of the end of the period, Edison International's and SCE's disclosure controls and procedures, respectively, were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in Edison International's or SCE's internal control over financial reporting, respectively, during the second quarter of 2019 that have materially affected, or are reasonably likely to materially affect, Edison International's or SCE's internal control over financial reporting.

Jointly Owned Utility Plant

Edison International's and SCE's respective scope of evaluation of internal control over financial reporting includes their Jointly Owned Utility Projects as discussed in Notes to Consolidated Financial Statements—Note 2. Property, Plant and Equipment in the 2018 Form 10-K.

LEGAL PROCEEDINGS

Thomas Fire and Koenigstein Fire Litigation

In December 2017, wind-driven wildfires impacted portions of SCE's service territory, causing substantial damage to both residential and business properties and service outages for SCE customers. The VCFD and CAL FIRE have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by the Koenigstein Fire. According to CAL FIRE information, the Thomas and Koenigstein Fires burned over 280,000 acres, destroyed or damages an estimated 1,343 structures and resulted in two fatalities.

As of July 22, 2019, SCE was aware of at least 191 lawsuits, representing approximately 3,000 plaintiffs, related to the Thomas and Koenigstein Fires naming SCE as a defendant. Ninety of these lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. At least four of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. The lawsuits have been coordinated in the Los Angeles Superior Court. Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Thomas Fire, Koenigstein Fire and Montecito Mudslides: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. An initial jury trial for a limited number of plaintiffs, sometimes referred to as a bellwether jury trial, on certain fire only matters is scheduled for January 13, 2020.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Montecito Mudslides Litigation

In January 2018, torrential rains in Santa Barbara County produced mudslides and flooding in Montecito and surrounding areas. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in at least 21 fatalities, with two additional fatalities presumed.

Seventy-six of the 191 lawsuits mentioned under "Thomas Fire and Koenigstein Fire Litigation" above allege that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides, resulting in the plaintiffs' claimed damages. Twenty-nine of the 76 Montecito Mudslides lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. In addition to other causes of action, some of the Montecito Mudslides lawsuits also allege personal injury and wrongful death. The Thomas and Koenigstein Fires lawsuits and the Montecito Mudslides lawsuits have been coordinated in the Los Angeles Superior Court.

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Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Thomas Fire, Koenigstein Fire and Montecito Mudslides: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

Woolsey Fire Litigation

In November 2018, wind-driven wildfires impacted portions of SCE's service territory and caused substantial damage to both residential and business properties and service outages for SCE customers. The largest of these fires, known as the Woolsey Fire, originated in Ventura County and burned acreage located in both Ventura and Los Angeles Counties. According to CAL FIRE information, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three fatalities.

As of July 22, 2019, SCE was aware of at least 98 lawsuits, representing approximately 2200 plaintiffs, related to the Woolsey Fire naming SCE as a defendant. Eighty-two of these lawsuits also name Edison International as a defendant based on its ownership and alleged control of SCE. At least two of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura and Los Angeles Counties allege, among other things, negligence, inverse condemnation, personal injury, wrongful death, trespass, private nuisance, and violations of the public utilities and health and safety codes. The Woolsey Fire lawsuits have been coordinated in the Los Angeles Superior Court. Three categories of plaintiffs have filed lawsuits against SCE and Edison International relating to the Woolsey Fire: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. Two initial jury trials for a limited number of plaintiffs on certain matters, sometimes referred to as bellwether jury trials, are scheduled for February 10, 2020 and July 20, 2020.

For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides."

RISK FACTORS

SCE’s anticipated new customer service system is subject to implementation and cost-recovery risks that could materially affect SCE’s business and financial condition.

SCE is currently testing a new customer service system that it anticipates implementing in 2020. If the customer service system does not function as intended upon implementation, SCE could experience, among other things, delayed or inaccurate customer bills that lead to over- or under- collections and other customer service concerns or degradation. Further, the process of implementing new technologies like the new customer service system represents opportunity for cybersecurity attacks on our information systems, which could lead to sensitive confidential personal and other data being compromised. Customer service degradation or the compromise of sensitive confidential personal and other data, could result in violations of applicable privacy and other laws, material financial loss to SCE or to its customers, customer dissatisfaction, loss of confidence in SCE's security measures, and significant litigation and/or regulatory exposure, all of which could materially affect SCE's financial condition and results of operations and materially damage the business reputation of Edison International and SCE. In addition, SCE may not be able to recover costs incurred by SCE to build, test and implement the customer service system through electric rates if the CPUC determines that such costs were not reasonably or prudently incurred.

SCE will not benefit from all of the features of AB 1054 if it or SDG&E is unable to timely make its initial contribution to the wildfire fund or the fund is exhausted. SCE could incur significant borrowing costs to raise the substantial capital it needs to meet its obligations under AB 1054.

If SCE or SDG&E do not make initial contributions to the insurance fund by September 10, 2019, the insurance fund will not be established and certain benefits of AB 1054, including the new standard to be applied by the CPUC in its prudency review and the Liability Cap, will not go into effect. Even if the insurance fund is established, SCE will not benefit from a presumption of prudency or the Liability Cap if SCE is unable to maintain a valid safety certification from the CPUC. Also, catastrophic wildfires could rapidly exhaust the insurance fund and SCE will not be reimbursed by the insurance fund or benefit from the Liability Cap if the fund has been exhausted as a result of damage claims previously incurred by SCE or the other participating utilities.

Edison International and SCE could incur significant borrowing costs as a result of SCE having to make its initial contribution of approximately $2.4 billion to the insurance fund by September 10, 2019 and SCE will not be allowed to recover any such costs through electric rates.

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For more information on AB 1054, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides—Recovery of Wildfire-Related Costs—2019 Wildfire Legislation."

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by Edison International and Affiliated Purchasers

The following table contains information about all purchases of Edison International Common Stock made by or on behalf of Edison International in the second quarter of 2019.

Period	(a) Total Number of Shares (or Units) Purchased1	(b) Average Price Paid per Share (or Unit)1			(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 1, 2019 to April 30, 2019	160,222		$	63.76	—	—
May 1, 2019 to May 31, 2019	93,451		$	59.84	—	—
June 1, 2019 to June 30, 2019	169,163		$	61.54	—	—
Total	422,836		$	62.00	—	—

¹ The shares were purchased by agents acting on Edison International's behalf for delivery to plan participants to fulfill requirements in connection with Edison International's: (i) 401(k) Savings Plan; (ii) Dividend Reinvestment and Direct Stock Purchase Plan; and (iii) long-term incentive compensation plans. The shares were purchased in open-market transactions pursuant to plan terms or participant elections. The shares were never registered in Edison International's name and none of the shares purchased were retired as a result of the transactions.

OTHER INFORMATION

None.

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EXHIBITS

Exhibit Number	Description
10.1	Term Loan Credit Agreement, dated as of April 26, 2019, among Edison International Company, the several banks and other financial institutions from time to time parties thereto, and Citibank, N.A., as administrative agent for the lenders (File No. 1-09936, filed as Exhibit 10.1 to Edison International's Form 10-Q for the quarter ended March 31, 2019)*
10.2**	Edison International 2008 Executive Retirement Plan, as amended and restated effective August 24, 2016 (as amended)
31.1	Certifications of the Chief Executive Officer and Chief Financial Officer of Edison International pursuant to Section 302 of the Sarbanes-Oxley Act
31.2	Certifications of the Chief Executive Officer and Chief Financial Officer of Southern California Edison Company pursuant to Section 302 of the Sarbanes-Oxley Act
32.1	Certifications of the Chief Executive Officer and the Chief Financial Officer of Edison International required by Section 906 of the Sarbanes-Oxley Act
32.2	Certifications of the Chief Executive Officer and the Chief Financial Officer of Southern California Edison Company required by Section 906 of the Sarbanes-Oxley Act
101.1	Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended June 30, 2019, filed on July 25, 2019, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements
101.2	Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended June 30, 2019, filed on July 25, 2019, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements

________________________________________

* Incorporated by reference pursuant to Rule 12b-32.

** Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3).

Edison International and SCE will furnish a copy of any exhibit listed in the accompanying Exhibit Index upon written request and upon payment to Edison International or SCE of their reasonable expenses of furnishing such exhibit, which shall be limited to photocopying charges and, if mailed to the requesting party, the cost of first-class postage.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

	EDISON INTERNATIONAL		SOUTHERN CALIFORNIA EDISON COMPANY
By:	/s/ Aaron D. Moss	By:	/s/ Aaron D. Moss
	Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)		Aaron D. Moss Vice President and Controller (Duly Authorized Officer and Principal Accounting Officer)
Date:	July 25, 2019	Date:	July 25, 2019

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EX-10.2

Exhibit 10.2

EDISON INTERNATIONAL

2008 EXECUTIVE RETIREMENT PLAN

Amended and Restated Effective

August 24, 2016

(as amended)

PREAMBLE

The purpose of this Plan is to provide supplemental retirement benefits to Participants and surviving spouses or other designated Beneficiaries of such Participants.

This Plan applies to benefits that are accrued or vested after December 31, 2004, and is intended to comply with Section 409A of the Internal Revenue Code and the regulations promulgated thereunder. Benefits that were accrued and vested prior to 2005 shall be paid under the Predecessor Plan in accordance with the terms therein, and shall not be subject to any of the terms of this Plan. In no event shall a Participant receive benefits under this Plan and the Predecessor Plan with respect to the same years of service.

ARTICLE 1

DEFINITIONS

Capitalized terms in the text of the Plan are defined as follows:

401(k) Earnings means the Participant’s “Earnings” taken into account for purposes of determining “Deferrals” under the Savings Plan, with “Earnings” and “Deferrals” having the meanings set forth in the Savings Plan.

Administrator means the Compensation and Executive Personnel Committee of the Board of Directors of EIX.

Affiliate means EIX or any corporation or entity which (i) along with EIX, is a component member of a “controlled group of corporations” within the meaning of Section 414(b) of the Code, and (ii) has approved the participation of its Executives in the Plan.

Beneficiary means the person or persons or entity designated as such in accordance with Article 6 of the Plan.

Benefit Feature means one of the levels of benefit under the Plan as described in Section 3.2(a).

Board means the Board of Directors of EIX.

Bonus means the dollar amount of bonus (if any) awarded by the Employer to the Participant pursuant to the terms of the Executive Incentive Compensation Plan, the 2007

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Performance Incentive Plan, or a successor plan governing annual executive bonuses. Notwithstanding the foregoing, effective for any Bonus for 2018 or a later year, the Administrator shall have discretion to provide that, for purposes of determining benefits under this Plan, a Participant shall be treated as having received (i) the Bonus that would otherwise be taken into account pursuant to the preceding sentence or (ii) such other amount as determined by the Administrator that is no greater than the Participant’s target bonus for the year under the applicable plan governing annual executive bonuses.

Cash Balance Pay Credits means the Participant’s “Pay Credits” for purposes of the Qualified Plan, as defined in the Qualified Plan.

Change in Control means a Change in Control of EIX as defined in the Severance Plan.

Code means the Internal Revenue Code of 1986, as amended.

Contingent Event means the Participant’s Disability or death while employed by an Affiliate or Separation from Service for other reasons if such event occurs prior to the Participant’s Retirement.

Contingent Payment Election means an election regarding the time and form of payment made or deemed made in accordance with Section 4.2.

Crediting Rate means the rate at which interest will be credited when interest at the “Crediting Rate” is specified pursuant the Plan. If the Valuation Date for a Participant is before 2018, the Crediting Rate will be the interest crediting rate in effect for the Qualified Plan. If the Valuation Date for a Participant is after 2017, the Crediting Rate will be determined annually in advance of the calendar year and will be equal to the average monthly Moody’s Corporate Bond Yield for Baa Public Utility Bonds for the 60 months preceding September 1st of the prior year. Notwithstanding the foregoing, EIX reserves the right to prospectively change the definition of Crediting Rate.

Disability means the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under a plan covering employees of the Employer.

EIX means Edison International.

Employer means the Affiliate employing the Participant. Notwithstanding the foregoing, with respect to a particular Participant’s benefits under the Plan, for purposes of determining which Affiliate is obligated to pay such benefits, Employer as to such Participant and benefits means the Affiliate employing the Participant upon the Participant’s Separation from Service (or, as to any distribution of any benefit under the Plan prior to the Participant’s Separation from Service, the Affiliate employing the Participant at the time of such distribution).

2

ERISA means the Employee Retirement Income Security Act of 1974, as amended.

Executive means an employee of an Affiliate who is designated an Executive by the Chief Executive Officer (“CEO”) of that Affiliate or who is elected as a Vice President or officer of higher rank by the board of that Affiliate or by the Board.

Executive Profit Sharing Credits mean the amounts the Employer would have contributed to the Savings Plan if the Participant were not subject to Sections 415 and 401(a)(17) of the Code and if the Participant’s elective deferrals under the EIX 2008 Executive Deferred Compensation Plan or predecessor or successor plans governing nonqualified deferrals were included in the definition of Earnings under the Savings Plan.

Executive Retirement Account or ERA means the notional cash balance account established for record keeping purposes for a Participant pursuant to Section 3.4 of the Plan.

Executive Retirement AccountCredits or ERA Credits means the amounts credited to a Participant’s Executive Retirement Account under Section 3.4 of the Plan.

Executive Retirement AccountSalary Base or ERA Salary Base means (i) for a Non-Cash Balance Participant, the amount (if any) by which the Participant’s Salary for the applicable calendar year exceeds his or her 401(k) Earnings for that year, and (ii) for any other Participant, the amount (if any) by which the Participant’s Salary for the applicable calendar year exceeds the compensation limit for that year set by the Secretary of the Treasury for purposes of Section 401(a)(17) of the Internal Revenue Code.

Executive Retirement AccountSalary Base Differential or ERA Salary Base Differential means (i) for a Non-Cash Balance Participant, the amount (if any) by which (1) the Participant’s annual rate of Salary in effect immediately prior to the Participant’s Separation from Service exceeds (2) the Participant’s annual rate of 401(k) Earnings in effect immediately prior to the Participant’s Separation from Service, and (ii) for any other Participant, the amount (if any) by which (1) the Participant’s annual rate of Salary in effect immediately prior to the Participant’s Separation from Service exceeds (2) the compensation limit set by the Secretary of the Treasury for purposes of Section 401(a)(17) of the Internal Revenue Code for the year in which the Participant’s Separation from Service occurs.

Non-Cash Balance Participant means a Participant who is described either in Section 3.1(c) below (other than a Participant who was employed by an Affiliate before January 1, 2018 but is not described in Section 3.1(d)) or in Section 3.1(d) below.

Officer means the CEOs, Presidents, Executive Vice Presidents, Senior Vice Presidents and elected Vice Presidents of EIX and its Affiliates. Other employees of EIX and its Affiliates, including officers who are not elected Vice Presidents or above, shall not be treated as Officers for purposes of the Plan, unless the Administrator specifically designates any such employee as an Officer for purposes of the Plan.

Participant means either (1) an employee of an Affiliate, who (i) is a U.S. employee or an expatriate and is based and paid in the U.S.; (ii) has been designated as an Executive by the Administrator, the Affiliate’s board or the Affiliate’s CEO for purposes of the Plan; and

3

(iii) qualifies as a member of the “select group of management or highly compensated employees” under ERISA; or (2) a person who has a vested benefit under the Plan by virtue of prior employment as an Executive of an Affiliate, which vested benefit has not yet been completely distributed.

Payment Event as to a Participantmeans the Participant’s Separation from Service for any reason other than death or Disability.

Payment Election means a Primary Payment Election or a Contingent Payment Election, or a payment election pursuant to Section 4.1.1, as the case may be, subject to change pursuant to Section 4.3. Payment Elections shall be made on a form and in a manner prescribed by the Administrator, or its delegate, which may include electronic elections.

Plan means the EIX 2008 Executive Retirement Plan.

Predecessor Plan means the Southern California Edison Company Executive Retirement Plan.

Primary Payment Election means an election regarding the time and form of payments made or deemed made in accordance with Section 4.1.

Profit Sharing means the programs under which some Affiliates have made profit sharing or gain sharing contributions to the Savings Plan.

Qualified Plan means the Southern California Edison Company Retirement Plan, or a successor plan, intended to qualify under Section 401(a) of the Code.

Qualifying Severance means a Participant is entitled to benefits under the Severance Plan or any similar successor plan as in effect upon the Participant’s Separation from Service, and has satisfied all conditions for such benefits.

Retirement means Separation from Service upon attainment of at least age 55 with at least five Years of Service.

Salary means (i) for purposes of determining the ERA Salary Base on a payroll period basis for (x) a Non-Cash Balance Participant for any Plan Year or (y) for any other Executive for the 2018 Plan Year, the product of the Executive’s hourly Basic Pay (determined by dividing annualized Basic Pay by 2,080 hours) on the last day of the payroll period on which the Executive is employed by the Employer, times 80 hours, (ii)  for purposes of True-Up Participants, the sum of the True-Up Participant’s Salary for the payroll periods for the Plan Year in which he or she serves at least one day as an Executive, with the Salary for each such payroll period determined in the same manner as clause (i) above, and (iii) for other purposes, the Executive’s Basic Pay. “Basic Pay” means the Executive’s basic pay from the Employer (excluding Bonuses, special awards, commissions, severance pay, and other non-regular forms of compensation) before reductions for deferrals under the Savings Plan or the EIX 2008 Executive Deferred Compensation Plan or predecessor or successor plans governing deferral of salary. Notwithstanding the foregoing, the Administrator, or its delegate, may prescribe a different

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definition of Salary for a Plan Year (or part thereof) if such definition is set forth in the form or instructions for the Payment Election for such Plan Year.

Savings Plan means the Edison 401(k) Savings Plan, or a successor plan.

Separation from Service occurs when a Participant dies, retires, or otherwise has a termination of employment from the Employer that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.

Severance Plan means the EIX 2008 Executive Severance Plan (or any similar successor plan).

Similar Plan means a plan required to be aggregated with this Plan under Treasury Regulation Section 1.409A-1(c)(2)(i).

Specified Employee means a Participant who is designated as an elected Vice President or above by the Administrator, using the identification date and methods determined by the Administrator.

Target Bonus Amount means, as to a particular Participant, the amount obtained by multiplying (1) the stated target bonus percentage (as a percentage of salary) in effect immediately prior to the earlier of the Participant’s Separation from Service or Disability for the bonus to be awarded to the Participant pursuant to the terms of the Executive Incentive Compensation Plan, the 2007 Performance Incentive Plan, or a successor plan governing annual executive bonuses, multiplied by (2) the Participant’s annual rate of Salary in effect immediately prior to the earlier of the Participant’s Separation from Service or Disability.

Termination of Employment means the voluntary or involuntary Separation from Service for any reason other than Retirement or death.

Total Compensation means (i) for Participants not eligible for Benefit Feature (iii), the monthly average Salary based on the Participant’s 36 highest consecutive months of Salary, and (ii) for Participants eligible for Benefit Feature (iii), the monthly average Salary plus Bonus based on the 36 consecutive months in which the Participant had the highest combination of Salary and Bonus. The 36 months need not be consecutive for individuals who were Participants in the Predecessor Plan and eligible for Benefit Feature (iii) before January 1, 2008. For purposes of determining the highest 36 months for Participants eligible for Benefit Feature (iii), each of the Participant’s annual Bonuses will be spread evenly over the months worked in the years in which the Bonuses were earned. If a vested individual terminates prior to Retirement and was no longer an Officer or designated Executive at the time employment was terminated, the Plan benefit described in Section 3.3(a) will be based on the Participant’s Total Compensation and service determined as of the last date of the Participant’s status as an Officer or designated Executive.

True-Up Participant means a Participant who is an Officer or other designated Executive on or after January 1, 2019, but is not a Non-Cash-Balance Participant.

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Unforeseeable Emergency means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s Beneficiary, or the Participant’s spouse or dependent (as defined in Code Section 152, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B)); loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the Participant’s control.

Valuation Date means the date as of which the Participant’s benefit will be calculated, and is the first day of the month following the month in which the final day of employment falls prior to Separation from Service or Disability, except that if the Participant’s Separation from Service is a Termination of Employment, the Valuation Date is the later of (1) the first day of the month of the Participant’s 55th birthday or (2) the first day of the month following the month in which the Participant’s final day of employment occurs prior to Termination of Employment.

Year of Service means a year of service as determined in accordance with the terms of the Qualified Plan. For Participants grandfathered in the defined-benefit final average pay benefit feature of the Qualified Plan (other than any such grandfathered Participants who were hired by an Affiliate or its subsidiaries in 1999 from Commonwealth Edison Company), years of service will be determined according to the same rules applicable to such benefit. For all other Participants, years of service will be determined according to the rules applicable to the cash‑balance feature of the Qualified Plan. A Participant’s prior service with Commonwealth Edison Company will be recognized for purposes of this Plan if the individual was a Participant on or before April 1, 2012 and was hired by an Affiliate (or its subsidiaries) in 1999 from Commonwealth Edison Company in connection with an acquisition transaction involving Edison Mission Energy. A Participant’s prior service with Citizens Power LLC will be recognized for purposes of this Plan if the individual was a Participant on or before April 1, 2012 and was hired by an Affiliate (or its subsidiaries) in 2000 in connection with the acquisition of Citizens Power LLC by Edison Mission Energy.

ARTICLE 2PARTICIPATION

Individuals are eligible to participate in the Plan when they become Officers or are designated as Executives by the Affiliate’s board or the Affiliate’s CEO for purposes of this Plan. Participation in the Plan will continue as long as the individual remains an Officer or a designated Executive (subject to any applicable Plan restrictions) or has a vested benefit under the Plan that has not been completely paid out.

ARTICLE 3BENEFIT DETERMINATION AND VESTING

3.1 Overview

(a)Benefits under the Plan will be payable with respect to any vested Participant following Retirement or the occurrence of a Contingent Event to the extent a benefit under the Plan is determined to exist by calculations as provided under the applicable provisions of this Article 3. Effective January 1, 2018, an ERA Credits feature has been added to the Plan as

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provided in Section 3.4 below. Prior to such date, a Participant’s benefit under the Plan will be determined as provided in Sections 3.2 and 3.3 hereof. From and after such date, a Participant’s benefit under the Plan will be determined as provided below in this Section 3.1. In each case, the Participant’s benefit will be subject to vesting, as provided in Section 3.5, and to the provisions of Sections 3.6 and 3.7.

(b)If a Participant was an Officer or a designated Executive at any time prior to January 1, 2018, the Participant’s benefit under the Plan (subject to vesting as provided in Section 3.5) will be equal to the lesser of the amounts determined under paragraphs (i) and (ii) of this Section 3.1(b), determined based on lump sum values as of the applicable Valuation Date.

(i)The Participant’s total benefit as determined under Sections 3.2 and 3.3 below, taking into account the Participant’s Total Compensation and Years of Service accrued at any time (whether before or after January 1, 2018). Such determination will be made without regard to Section 3.3(c) and will not include any ERA Credits under Section 3.4.

(ii)The Participant’s total benefit determined as the sum of (x) the Participant’s total benefit as determined under Sections 3.2 and 3.3 below (giving effect to Section 3.3(c) below), and (y) the amounts credited to the Participant’s Executive Retirement Account.

(c)If a Participant first becomes an Officer or a designated Executive on or after January 1, 2018, the Participant will be eligible only to receive ERA Credits (and earnings thereon) to the Participant’s Executive Retirement Account as provided in Section 3.4 and will not be eligible for any benefits under Sections 3.2 and 3.3.

(d)Notwithstanding any Plan provisions to the contrary, if a Participant who has experienced a Separation from Service is rehired on or after January 1, 2018 and becomes an Officer or designated Executive, the Participant will be treated for additional benefit accrual purposes as if he or she was a new participant in the Plan: he or she will be eligible to receive additional ERA Credits (and earnings thereon) as provided in Section 3.4, but will not be eligible for any additional benefit accruals under Sections 3.2 and 3.3.

3.2 Benefit Features

(a)The Plan provides a supplemental retirement benefit calculated in accordance with Section 3.3 below. This supplemental retirement benefit incorporates the following Benefit Features:

(i)Recognition of the amount of Salary that is not recognized for purposes of calculating benefits under the Qualified Plan or Profit Sharing contributions to the Savings Plan due to limits imposed by the Code under Sections 415(b) or 401(a)(17).

(ii)Recognition of deferred Salary that is not recognized for purposes of calculating benefits under the Qualified Plan or Profit Sharing contributions to the Savings Plan.

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(iii)Recognition of Bonuses that are not recognized for purposes of calculating benefits under the Qualified Plan.

(b)Participants who are Officers on the date of their termination of employment are eligible for all three Benefit Features. Other Participants are eligible for Benefit Features (i) and (ii) only; provided, however, as to a Participant who was once an Officer but who is not described in the immediately preceding sentence, such Participant shall be eligible for Benefit Features (i) and (ii) only, but his or her benefits shall not be less than if the Participant had terminated employment on December 11, 2012 and had Bonuses recognized for purposes of determining his or her benefits as of December 11, 2012.

(c)Participants in the Predecessor Plan on December 31, 1994 and Participants who were CEOs, Presidents, Executive Vice Presidents or Senior Vice Presidents of EIX or its Affiliates or elected Vice Presidents of EIX, Southern California Edison Company or Edison Capital prior to January 1, 2006, are also eligible for all three Benefit Features and an additional 0.75% benefit accrual for each Year of Service up to ten Years of Service (this additional 0.75% benefit accrual is taken into account when calculating the value of the single life annuity benefit for purposes of Section 3.3(b)), unless they were participants in the Predecessor Plan on December 31, 1992 and elected not to participate in the Executive Disability and Survivor Benefit Program, in which case they are eligible for all three Benefit Features but not for the additional 0.75% benefit accrual.

(d)Notwithstanding the above, elected Vice Presidents of Edison Mission Energy, Edison Mission Marketing and Trading, and Midwest Generation whose Separation from Service occurred prior to January 1, 2006, are eligible for Benefit Features (i) and (ii) only.

(e)Notwithstanding anything to the contrary in this Section 3.2, the three Benefit Features in this Section 3.2 and the additional 0.75% benefit accrual in Section 3.2(c) are subject to the provisions of Section 3.1.

3.3 Benefit Computation

(a)EIX will calculate at the time of a Participant’s Disability or Separation from Service the amount of any benefit payable under the Plan. The benefit payable under this Section 3.3 will be the greater of (1) the value of the single life annuity calculated pursuant to Section 3.3(b), reduced by (i) the value of the single life annuity (unreduced for a contingent annuitant) payable to the Participant under the terms of the Qualified Plan, or other Affiliate defined benefit plan, after taking into account any applicable restrictions or limitations as to such payments required by the Code or other applicable law or the terms of the Qualified Plan, or other applicable Affiliate defined benefit plan; (ii) the actuarial single life annuity value, as defined in the Qualified Plan, of the Participant’s Profit Sharing Account under the Savings Plan, or a successor plan; and (iii) the portion of the Participant’s Social Security benefit specified in the Qualified Plan or (2) the actuarial single life annuity value of the notional account derived from any Executive Profit Sharing Credits allocated to the Participant plus earnings thereon.

(b)The Participant’s Total Compensation and Years of Service will be used to calculate the value of the single life annuity benefit based on the “Supplemental A” formula set

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forth in Section 4.02(a) of the Qualified Plan, including Subsection (1) but excluding Subsection (2), and Section 4.12(b) of the Qualified Plan (provided, however, that individuals who become Participants after December 31, 2016 shall not be entitled to a benefit in this Plan based on the benefit formula in Section 4.12(b) of the Qualified Plan), and also, in the case of Disability, Exhibit B of the Qualified Plan, or, in the case of Termination of Employment, Exhibit G of the Qualified Plan, notwithstanding the Participant’s eligibility for such benefits under the terms of the Qualified Plan.

(c)Notwithstanding the foregoing, for purposes of determining a Participant’s benefit under clause (x) of Section 3.1(b)(ii), the “Supplemental A” formula set forth in Section 4.02(a) of the Qualified Plan used to determine the value of the Participant’s single life annuity benefit as provided in Section 3.3(b) with respect to any Years of Service accrued after December 31, 2017 shall be modified as follows: “one percent (1%)” shall replace “one and three-quarters percent (1-3/4%)” as applied to the Participant’s Total Compensation for each of the Participant’s first thirty (30) Years of Service; and “one-half of one percent (0.5%)” shall replace “one percent (1%)” as applied to the Participant’s Total Compensation for each of the Participant’s Years of Service in excess of thirty (30).

(d)If a Participant experiences a Qualifying Severance, then an additional Year of Service credit (in the case of a Qualifying Termination Event associated with a Change in Control as defined in the Severance Plan, two years for Senior Vice Presidents and Executive Vice Presidents of EIX or Southern California Edison Company, but three years for the most senior officer of EIX, the most senior officer of Southern California Edison Company, the General Counsel of EIX, and the Chief Financial Officer of EIX) and an additional year of age (in the case of a Qualifying Termination Event associated with a Change in Control as defined in the Severance Plan, two years for Senior Vice Presidents and Executive Vice Presidents of EIX or Southern California Edison Company, but three years for the most senior officer of EIX, the most senior officer of Southern California Edison Company, the General Counsel of EIX, and the Chief Financial Officer of EIX) shall be included for purposes of the benefit calculation under Section 3.3(b), including in applying the benefit formula under the Qualified Plan for grandfathered employees who are not yet age 55 but who have 68 points. The value added by this severance enhancement shall be the difference between (i) the gross benefit calculated as described in Section 3.3(b) but with the additional age and service credits, before any reduction for benefits under other plans pursuant to Section 3.3(a), and (ii) the unenhanced gross benefit calculated under Section 3.3(b). Notwithstanding anything to the contrary in this Section 3.3(d), if a Participant becomes entitled to benefits under the Severance Plan or any similar successor plan and is subsequently rehired as an Executive prior to the date lump sum payments or initial installment or annuity payments commence, the Participant shall not be entitled to any additional Year of Service or age credits under this Section 3.3.

(e)Participants who are also eligible for Profit Sharing may receive Executive Profit Sharing Credits. If any Profit Sharing contribution is reduced because a portion of the Participant’s Salary is excluded either because of nonqualified Salary deferrals or the limits imposed by Sections 415 and 401(a)(17) of the Code, the amount by which the contribution was reduced will be credited to a notional Executive Profit Sharing Credit account under the Plan as of the date of the Profit Sharing contribution. Amounts in this notional account will earn

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notional interest at the rates in effect for cash balance interest credits in the Qualified Plan, credited daily and compounded annually. The resulting notional Executive Profit Sharing Credit amount will be taken into account in calculating the benefit described in Section 3.3(a).

(f)The lump sum value of the benefit payable under Sections 3.3 as of the Valuation Date will be actuarially determined as the present value of the Participant’s single life annuity benefit under Section 3.3 as of that date, using the discount rate and mortality table then in effect for lump sum determination in the Qualified Plan, except that the lump sum value may not be less than the value of the notional Executive Profit Sharing Credit account balance as of that date.

(g)A vested Participant who remains employed with an Affiliate until Retirement but is no longer an Officer or designated Executive will retain a Section 3.3 benefit based on the Participant’s Total Compensation and service determined as of the last date of the Participant’s eligible status and reduced by the amounts specified in Section 3.3(a) determined upon the Participant’s Retirement.

(h)As to a Participant whose Separation from Service (or if earlier, Disability) occurs after December 31, 2016, the following additional rules shall apply in calculating the amount of any benefit payable under the Plan with respect to the Participant’s accrued but unused Sick Time Allowance Credits (as that term is used in the Qualified Plan):

(i)In applying the benefit formula set forth in Section 4.12(b) of the Qualified Plan, the Participant’s accrued but unused Sick Time Allowance Credits taken into account for purposes of this Section 3.3 shall be the lesser of (a) the Participant’s accrued but unused Sick Time Allowance Credits as of December 31, 2016, or (b) the Participant’s accrued but unused Sick Time Allowance Credits as of the Participant’s Separation from Service (or if earlier, Disability).

(ii)The form and timing of payment of the benefit attributable to such accrued but unused Sick Time Allowance Credits shall be deemed to be calculated under Section 4.12(b) of the Qualified Plan as in effect on January 1, 2015 (disregarding, for example, any change in the Qualified Plan that takes effect after that date to provide for such benefit to be paid in a single lump sum).

(i)Notwithstanding anything to the contrary in this Section 3.3, the benefits calculated pursuant to this Section 3.3 are subject to the provisions of Section 3.1.

3.4 Executive Retirement Account Credits

This Section 3.4 shall be effective January 1, 2018.

(a)ERA Credits for Non-Cash-Balance Participants. For each calendar year (commencing with 2018), ERA Salary Credits will be added by the Administrator to the Non-Cash-Balance Participant's Executive Retirement Account in an amount equal to twelve percent (12%) of the Non-Cash-Balance Participant’s ERA Salary Base for the calendar year. Beginning with the 2018 Bonus (which is payable in 2019), ERA Bonus Credits will be added by the Administrator to the Non-Cash-Balance Participant's Executive Retirement Account in an amount equal to twelve percent (12%) of the Non-Cash-Balance Participant’s Bonus. ERA

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Credits will be credited (conditionally until vesting and subject to Section 3.4(c)) to the Executive Retirement Account effective as of the time the ERA Salary Base or Bonus to which the ERA Credits relate is actually paid. If a Non-Cash-Balance Participant has his or her employment transferred from an Affiliate to a non-participating affiliate of EIX, then ERA Bonus Credits will be added for the Non-Cash-Balance Participant’s Bonus with respect to the Non-Cash-Balance Participant’s employment by the Affiliate during the year in which the transfer occurred.

ERA Credits for 2018 for Other Participants. For purposes of the 2018 calendar year for Participants who are not Non-Cash-Balance Participants, ERA Credits will be added by the Administrator to the Participant's Executive Retirement Account in an amount equal to twelve percent (12%) of the Participant’s ERA Salary Base for 2018. In addition, ERA Credits will be added by the Administrator to the Participant's Executive Retirement Account in an amount equal to twelve percent (12%) of the Participant’s 2018 Bonus (which is payable in 2019). ERA Credits will be credited (conditionally until vesting and subject to Section 3.4(c)) to the Executive Retirement Account effective as of the time the ERA Salary Base or Bonus to which the ERA Credits relate is actually paid. If a Participant has his or her employment transferred from an Affiliate to a non-participating affiliate of EIX, then ERA Bonus Credits will be added for the Participant’s Bonus with respect to the Participant’s employment by the Affiliate during the year in which the transfer occurred.

ERA Credits for True-Up Participants. For True-Up Participants, the amount of ERA Salary Credits for a calendar year after 2018 will be the result of the following formula: twelve percent (12%) of the Participant’s Salary for the calendar year, minus the sum of (i) the Participant’s Cash Balance Pay Credits for the calendar year and (ii) six percent (6%) of the Participant’s 401(k) Earnings for the calendar year. The amount of ERA Bonus Credits for a calendar (beginning with the 2019 Bonus payable in 2020) will equal twelve percent (12%) of the Participant’s Bonus for the calendar year, subject to the following reduction: if the equation for a Participant’s ERA Salary Credits for a calendar year results in a negative number (the “Adjustment”), then the Participant’s ERA Salary Credits for that calendar year will be zero and the Adjustment will be applied to the Participant’s ERA Bonus Credits for that calendar year, thereby reducing the ERA Bonus Credits; if the Adjustment would reduce the Participant’s ERA Bonus Credits for that calendar year below zero, then the Participant’s ERA Bonus Credits for that calendar year will be zero and the remainder of the Adjustment (i.e., the amount of the Adjustment remaining when ERA Bonus Credits are reduced to zero) will be disregarded. ERA Credits will be added by the Administrator to the True-Up Participant's Executive Retirement Account by April 30 of the following year. ERA Salary Credits for a calendar year will be credited (conditionally until vesting and subject to Section 3.4(c)) to the True-Up Participant's Executive Retirement Account effective as of December 31 of the calendar year; provided, however, for a calendar year in which a True-Up Participant experiences a Separation from Service or Disability, the True-Up Participant’s ERA Salary Credits for that calendar year will be added to his or her Executive Retirement Account within 60 days of, and will be credited effective as of, the Separation from Service or Disability. ERA Bonus Credits for a calendar year will be credited (conditionally until vesting and subject to Section 3.4(c)) to the True-Up Participant's Executive Retirement Account effective as of the date the Bonus to which the ERA Credits relate is actually paid. If a Participant has his or her employment transferred from an

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Affiliate to a non-participating affiliate of EIX, then ERA Credits will be added to the Participant's Executive Retirement Account with respect to Salary and Bonus attributable to the Participant’s employment by the Affiliate during the year in which the transfer occurred.

(b)ERA Interest Credits for Non-Cash-Balance Participants. The Administrator will credit interest at the Crediting Rate (conditionally until vesting and subject to Section 3.4(c)) to a Non-Cash-Balance Participant’s Executive Retirement Account on a daily basis, compounded annually, until the Valuation Date. No interest will be credited on ERA Credits for any date on or before the date when the ERA Salary Base or Bonus to which the ERA Credit relates is actually paid (for example, if a Participant’s 2018 Bonus is paid on February 28, 2019, the related ERA Credits will be credited as of that date and interest will begin being credited on those ERA Credits on a go-forward basis as of March 1, 2019). After the Valuation Date, interest will be credited in accordance with Section 3.7.

ERA Interest Credits for 2018 Salary and Bonus for Other Participants. With respect to ERA Credits for Salary and Bonus for 2018 for a Participant who is not a Non-Cash Balance Participant, the Administrator will credit interest at the Crediting Rate (conditionally until vesting and subject to Section 3.4(c)) to the Participant’s Executive Retirement Account on a daily basis, compounded annually, commencing on the date described in the next sentence and continuing until the Valuation Date. Interest will be credited commencing the day following the date when the ERA Salary Base or Bonus to which the ERA Credit relates is actually paid (for example, if a Participant’s 2018 Bonus is paid on February 28, 2019, the related ERA Credits will be credited as of that date and interest will begin being credited on those ERA Credits on a go-forward basis as of March 1, 2019). After the Valuation Date, interest will be credited in accordance with Section 3.7.

ERA Interest Credits for True-Up Participants. With respect to ERA Credits for Salary and Bonus for 2019 and subsequent years for True-Up Participants, the Administrator will credit interest (conditionally until vesting and subject to Section 3.4(c)) in the manner described in this paragraph. With respect to ERA Salary Credits for a Plan Year, the Administrator will credit interest as follows: the ERA Salary Credits for the Plan Year (after the Adjustment, if any) will be multiplied by the annual Crediting Rate (converted into a decimal format) and the result will be multiplied by a fraction, the numerator of which is the number of months in the Plan Year for which the True-Up Participant received a Cash Balance Pay Credit while an Executive, and the denominator of which is twenty-four (24); the resulting simplified interest will be credited on the “Simplified Interest Crediting Date,” which shall be December 31 of the Plan Year or, if earlier, the last day of the month in which the Participant’s Separation from Service or Disability occurs; commencing the day after the Simplified Interest Crediting Date, interest will be credited at the Crediting Rate on a daily basis, compounded annually, until the Valuation Date. With respect to ERA Bonus Credits for a Plan Year, no interest will be credited for the date as of which the ERA Bonus Credits (after the Adjustment, if any) are credited, but commencing as of the following day, the Administrator will credit interest at the Crediting Rate on a daily basis, compounded annually, until the Valuation Date. After the Valuation Date, all interest will be credited in accordance with Section 3.7.

Prospective Changes. Notwithstanding anything to the contrary in this Section 3.4(b), the Administrator, or its delegate, may prospectively change the methodology for calculating ERA Interest Credits.

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(c)In the event a Participant is entitled to the benefit specified in Section 3.1(b)(i), the Participant’s Executive Retirement Account shall be disregarded and automatically cancelled.

(d)In the event a Participant is entitled to the benefit specified in Section 3.1(b)(ii) or Section 3.1(c), the benefit attributable to the Participant’s Executive Retirement Account shall be subject to the payment election provisions of Article 4 and, if the Participant’s benefit is determined under Section 3.1(b)(ii), the Participant’s Executive Retirement Account shall be paid on the same schedule as the Participant’s benefit determined under Sections 3.2 and 3.3.

(e)If a Participant experiences a Qualifying Severance, then ERA Credits will be added by the Administrator to the Participant's Executive Retirement Account in an amount equal to twelve percent (12%) times the sum of (i) the Participant’s ERA Salary Base Differential plus (ii) the Participant’s Target Bonus Amount. In the case of a Qualifying Termination Event associated with a Change in Control as defined in the Severance Plan, “twelve percent (12%)” in the preceding sentence will be replaced by: “twenty-four percent (24%)” if the Participant is a Senior Vice President or Executive Vice President of EIX or Southern California Edison Company; “thirty-six percent (36%)” if the Participant is the most senior officer of EIX, the most senior officer of Southern California Edison Company, the General Counsel of EIX, or the Chief Financial Officer of EIX. Such ERA credits will be credited effective as of the date of the Separation from Service. Notwithstanding anything to the contrary in this Section 3.4(e), if a Participant becomes entitled to benefits under the Severance Plan or any similar successor plan and is subsequently rehired as an Executive prior to the date lump sum payments or initial installment or annuity payments commence, the additional ERA credits under this Section 3.4(e) shall be disregarded and automatically cancelled.

(f)Notwithstanding anything to the contrary in this Section 3.4, the Administrator, or its delegate, may prescribe rules in the form or instructions for any Payment Election for a Plan Year that are different than the rules set forth in this Section 3.4 for purposes of determining Executive Retirement Account credits for the Plan Year.

3.5 Vesting

Subject to the provisions of Section 3.4, the right to receive benefits under the Plan (including any amounts credited to a Participant’s Executive Retirement Account, if a Participant is entitled to such amounts under Section 3.1) will vest (i) when the Participant has completed five Years of Service with an Affiliate, (ii) upon the Participant’s Disability while employed with an Affiliate, (iii) upon the Participant’s death while employed with an Affiliate, or (iv) upon the Participant’s Separation from Service if the Participant experiences a Qualifying Severance.

3.6 Adjustment for Final Bonus

If the final Bonus is determined after benefits under the Plan are paid or commenced, the benefit will be recalculated from inception (as a point of clarity, ERA Credits for the final Bonus will be credited, in accordance with and subject to Section 3.4, as of the date the Bonus is actually paid, but for purposes of Section 3.1(b) the value of those ERA Credits will be calculated as of the Valuation Date using the discount rate in effect for lump sum determination

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in the Qualified Plan as of the Valuation Date) and a one-time adjustment will be made to true-up payments already made, and future payments, if any, will be adjusted accordingly. Any true-up payment will be made within two and one-half months of the date the final Bonus is determined.

3.7 Valuation Date Notional Account

A notional account will be established as the Plan benefit as of the Valuation Date, with an initial value equal to the lump sum value calculated pursuant Article 3. The account will be credited with interest at the Crediting Rate on a daily basis, compounded annually, until the account has been fully paid out (or annuity payments commence, as the case may be) according to the terms of the Plan and the Participant’s Payment Election.

ARTICLE 4PAYMENT ELECTIONS

4.1 Primary Payment Election for Plan Years Prior to 2019

(a)Each year (through December 31, 2017), a Participant may make a Primary Payment Election specifying the payment schedule for the benefits to be accrued in the following Plan Year (concluding with the 2018 Plan Year) by submitting an election to the Administrator in such time and manner established by the Administrator. By way of example, benefits attributable to Bonus compensation will be treated as accrued during the Plan Year when the relevant services are performed (and not any later year when the Bonus is actually paid), and any benefits attributable to additional Year of Service or age credits triggered by a Participant’s Separation from Service under the Severance Plan will be treated as accrued during the Plan Year when the Participant’s Separation from Service occurs.

(b)Except as otherwise provided in this paragraph, a Primary Payment Election made for one Plan Year shall apply for subsequent Plan Years unless prior to a subsequent Plan Year the Participant submits a new Primary Payment Election for the subsequent Plan Year. If (i) a Primary Payment Election in effect with respect to one Plan Year (the first Plan Year) carries over and applies to the next Plan Year (the second Plan Year) pursuant to the preceding sentence, and (ii) the Participant’s Primary Payment Election in effect with respect to the first Plan Year is that payments shall commence upon the later of the Participant’s Retirement or the first day of a specific month and year, then the same Primary Payment Election (including the same specified date) will apply to the second Plan Year; provided that if the specified date payout election in effect with respect to the first Plan Year is a date in the first or second Plan Year, the Participant shall be deemed to have made a Primary Payment Election for the second Plan Year that the benefits accrued in the second Plan Year shall commence payment upon the Participant’s Retirement.

(c)On or before December 31, 2008, Participants may make a special Primary Payment Election in accordance with the transition rule under Section 409A of the Code for Plan benefits previously scheduled to commence payment after the calendar year in which the special Primary Payment Election is made.

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(d)    The choices available for a Primary Payment Election are as provided in the applicable Primary Payment Election form, but may include the following:

(i)    Joint and survivor life annuity paid in monthly installments; or

(ii)    Contingent life annuity paid in monthly installments; or

(iii)    Monthly installments for 60 to 180 months; or

(iv)    A single lump sum; or

(v)    Two to fifteen installments paid annually; or

(vi)    Any combination of the choices listed in (iii), (iv) and (v).

Payments under a Primary Payment Election may commence upon (i) the Participant’s Retirement, (ii) the later of the Participant’s Retirement or the first day of a specific month and year, or (iii) the first day of the month that is a specified number of months and/or years following the Participant’s Retirement or the first day of a specified month a specified number of years following the calendar year in which the Participant’s Retirement occurs (provided that if the date otherwise determined pursuant to clauses (ii) and (iii) is later than the later of the Participant’s Retirement or the month and year in which the Participant attains age 75, the date pursuant to clauses (ii) and (iii) shall be the later of the Participant’s Retirement or the month and year in which the Participant attains age 75). If the Participant elects under a Primary Payment Election to receive payment pursuant to clause (ii) and the Participant dies prior to the later of Retirement or the specified payment date, payment shall be made pursuant to the Participant’s Contingent Payment Election (if any) for the Participant’s death (regardless of whether the Participant’s death occurs while the Participant is employed by an Affiliate or thereafter).

(e)    If no Primary Payment Election has been made, the Primary Payment Election shall be deemed to be a joint and survivor annuity paid in monthly installments commencing upon the Participant’s Retirement (or, if earlier, the Participant’s death or Disability); provided, however, that if a Participant first becomes an Officer or a designated Executive on or after January 1, 2018, the Primary Payment Election shall be deemed (if no Primary Payment Election has been made) to be a lump sum payable upon Retirement (or, if earlier, the Participant’s death or Disability).

(f)    Subject to Section 4.5, lump sum payments or initial installment or annuity payments will be made within 90 days (60 days in the case of a payment triggered by a specified payment date) of the scheduled dates, and interest will be added at the Crediting Rate to the payment amount for the days elapsed between the scheduled payment date and the actual date of payment. If the Participant’s delivery of a release would change the amount of his or her Plan benefit, and the period for the Participant to consider, execute, and revoke such release spans two different calendar years, and the 90- or 60-day period, as applicable, specified above for the payment of any benefit contingent on such release also spans those two years, payment of the portion of the benefit contingent upon such release (and earnings thereon) shall be made in the time period otherwise specified above but in the second of those two years.

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If paid in installments, the installments will be paid in amounts that will amortize the balance with interest credited at the Crediting Rate on a daily basis, compounded annually, over the period of time benefits are to be paid. For purposes of calculating installments, the account will be valued as of the Valuation Date and subsequently as of December 31 each year with installments adjusted for the next calendar year according to procedures established by the Administrator. Notwithstanding anything herein to the contrary, distribution in installments shall be treated as a single payment as of the date of the initial installment for purposes of Section 409A of the Code. If paid in monthly installments, the installments may be paid in a single check or in more than one check for any given month, provided that in either such case the total amount of the monthly payment shall not change.

If the applicable Payment Election or deemed Payment Election is for payment in the form of an annuity, the annuity value of the Plan benefit will be calculated in a manner consistent with the provisions of the Qualified Plan except that this Plan will govern where its provisions under Section 3.3 (which shall also apply to Section 3.4(d) for purposes of calculating the applicable annuity value of any benefit derived from an Executive Retirement Account) are inconsistent with those of the Qualified Plan.

4.1.1    Payment Election for 2019 and Later Plan Years

(a)    As part of a Payment Election for Plan Years after 2018, a Participant may elect, subject to the conditions set forth in this Section 4.1.1, that payments commence upon: (i) the Participant’s Payment Event; (ii) the later of the Participant’s Payment Event or January 1 of a specified year that may be no later than the year in which the Participant attains age 75; (iii) January 1 of the year following the Payment Event; or (iv) January 1 of the fifth year following the Payment Event. If the date otherwise determined pursuant to clauses (iii) and (iv) above is later than the later of the Participant’s Payment Event or the month and year in which the Participant attains age 75, the commencement date pursuant to clauses (iii) and (iv) shall be the later of the Participant’s Payment Event or the month and year in which the Participant attains age 75. If the Payment Event is a Separation from Service prior to Retirement (other than due to death), the commencement date pursuant to clauses (i) through (iv) above shall be determined as if the Payment Event was the later of the Participant’s Separation from Service or the first day of the month of the Participant’s 55th birthday.

Unless otherwise provided by the Administrator, or its delegate, in the applicable Payment Election form, the choices available for a Payment Election are as follows: a single lump sum; five, ten or fifteen installments paid annually; a joint and survivor life annuity paid in monthly installments; or Contingent life annuity paid in monthly installments.

Notwithstanding any provisions of the preceding two paragraphs to the contrary: (i) if a Participant dies or, while employed by an Affiliate, becomes Disabled before payments have commenced, then payments shall be made in a lump sum upon (or within 90 days following) the Participant’s death or Disability; (ii) if a Participant dies or, while employed by an Affiliate, becomes Disabled after payments have commenced but before all payments have been completed, then all of the Participant’s remaining benefits shall be made in a lump sum upon (or within 90 days following) the Participant’s death or Disability; provided, however, that (iii) if a Participant who dies had elected either a joint and survivor annuity or a Contingent life annuity

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with a survivor benefit, then the survivor benefit shall be paid in accordance with the terms of the Participant’s Payment Election.

Notwithstanding any provisions of this Section 4.1.1 to the contrary, if a Participant who has a Primary Payment Election in effect with respect to the 2018 Plan Year (including a deemed election) does not make a new Payment Election for benefits accrued for the 2019 Plan Year, then Sections 4.1(b) and 4.2(b) shall continue to apply to such Participant and the Primary Payment Election (including a deemed election) for the 2018 Plan Year and the Contingent Payment Election (including a deemed election) for the 2018 Plan Year shall apply for the 2019 Plan Year and for subsequent Plan Years unless prior to a subsequent Plan Year the Participant submits a new Payment Election for the subsequent Plan Year.

(b)    Except as otherwise provided in this Section 4.1.1, a Payment Election made for one Plan Year shall apply for subsequent Plan Years unless prior to a subsequent Plan Year the Participant submits a new Payment Election for the subsequent Plan Year. If a Payment Election in effect with respect to one Plan Year (the first Plan Year) carries over and applies to the next Plan Year (the second Plan Year) pursuant to this paragraph, and the Participant’s Payment Election in effect with respect to the first Plan Year includes a specified date payout election pursuant to clause (ii) of Section 4.1.1(a), that date will apply to the second Plan Year; provided that if the specified date payout election in effect with respect to the first Plan Year is a date in the first or second Plan Year, the Participant shall be deemed to have made a Payment Election for the second Plan Year that the benefits accrued in the second Plan Year shall commence payment upon the Participant’s Payment Event.

(c)    If no Payment Election has been made, the Payment Election shall be deemed to be a lump sum payable upon the earliest of the Participant’s Payment Event, death, or Disability; provided, however, that if the Payment Event is a Separation from Service prior to the first day of the month of the Participant’s 55th birthday, the commencement date shall be the first day of the month of the Participant’s 55th birthday.

(d)    The provisions in Section 4.1(f) also apply to this Section 4.1.1.

(e)    Notwithstanding anything to the contrary in this Section 4.1.1, the Administrator, or its delegate, may prescribe rules in the form or instructions for any Payment Election that are different than the rules set forth in this Section 5.1.1 as to the benefits covered by such Payment Election, including expanding or limiting the forms of payment and payment commencement dates available for the Payment Election and prescribing different payment rules for death and Disability.

4.2 Contingent Payment Elections for Plan Years Prior to 2019

(a)Each year (through December 31, 2017), a Participant may make Contingent Payment Elections for each of the Contingent Events of (1) the Participant’s death while employed by an Affiliate, (2) the Participant’s Disability while employed by an Affiliate, and (3) Termination of Employment for the benefits to be accrued in the following Plan Year (concluding with the 2018 Plan Year), which election will take effect upon the first Contingent

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Event that occurs before the Participant’s Retirement, by submitting an election to the Administrator in such time and manner established by the Administrator.

(b)Except as otherwise provided in this paragraph, a Contingent Payment Election made for one Plan Year shall apply for subsequent Plan Years unless prior to a subsequent Plan Year the Participant submits a new Contingent Payment Election for the subsequent Plan Year. If (i) a Contingent Payment Election in effect with respect to one Plan Year (the first Plan Year) carries over and applies to the next Plan Year (the second Plan Year) pursuant to the preceding sentence, and (ii) the Participant’s Contingent Payment Election in effect with respect to the first Plan Year is that payments shall commence upon the later of the Participant’s Contingent Event or the first day of a specific month and year, then the same Contingent Payment Election (including the same specified date) will apply to the second Plan Year; provided that if the specified date payout election in effect with respect to the first Plan Year is a date in the first or second Plan Year, the Participant shall be deemed to have made a Contingent Payment Election for the Second Plan Year that the benefits accrued in the second Plan Year shall commence payment upon the Participant’s Contingent Event.

(c)The choices available for the Contingent Payment Elections are those specified in Section 4.1 except that the references to Retirement shall instead be the applicable Contingent Event if the event is death or Disability or the first day of the month of the Participant’s 55th birthday (or, if later, Termination of Employment) if the Contingent Event is Termination of Employment.

If the Participant has made no Contingent Payment Election and a Contingent Event occurs prior to Retirement, the Administrator will pay the benefit as specified in the Participant’s Primary Payment Election, except that payments scheduled for payment or commencement of payment “upon Retirement,” or with a payment date determined by reference to Retirement, will be paid, commence or have payment determined by reference to the first day of the month following the date of the Contingent Event if the Contingent Event is the Participant’s death or Disability, but will be the first day of the month of the Participant’s 55th birthday (or, if later, Termination of Employment) if the Contingent Event is Termination of Employment. If a Contingent Event occurs prior to Retirement and the Participant has made neither a Primary Payment Election nor a Contingent Payment Election, the Payment Election shall be deemed to be a joint and survivor life annuity payable on the first day of the month following the date of the Contingent Event if the Contingent Event is the Participant’s death or Disability, but payable on the first day of the month of the Participant’s 55th birthday (or, if later, the first day of the month following the month in which the Participant’s final day of employment occurs prior to Termination of Employment) if the Contingent Event is Termination of Employment. Notwithstanding the foregoing, if a Participant first becomes an Officer or a designated Executive in 2018, the Contingent Payment Election shall be deemed to be a lump sum payable upon on the first day of the month following the date of the Contingent Event if the Contingent Event is the Participant’s death or Disability, but payable on the first day of the month of the Participant’s 55th birthday (or, if later, Termination of Employment) if the Contingent Event is Termination of Employment.

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4.3 Changes to Payment Elections

Participants may change a Payment Election, including a deemed Payment Election, by submitting a new written Payment Election to the Administrator, subject to the following conditions: (1) the new Payment Election shall not be effective unless made at least twelve months before the payment or commencement date scheduled under the prior Payment Election, (2) the new Payment Election must defer a lump sum payment or commencement of installment or life annuity payments for a period of at least five years from the date that the lump sum would have been paid or installment or life annuity payments would have commenced under the prior Payment Election, and (3) the election shall not be effective until twelve months after it is filed with the Administrator. If at the time a new Payment Election is filed the Administrator determines that imposition of the five-year delay would require that a Participant’s payments begin after he or she has attained age 75, then the Participant will not be permitted to make a new Payment Election. After 2018, the payment schedules available under a new Payment Election are those specified in Section 4.1.1 that are available for new Payment Elections at the time the new Payment Election is made, subject to the conditions specified in this paragraph. After 2018, a Participant will only be given one opportunity to change a Payment Election for benefit accruals with respect to a particular Plan Year.

Participants who have elected a form of life annuity as their Primary Payment Election or Contingent Payment Election (including any deemed Payment Election) may change such election from one form of life annuity to another form of life annuity otherwise permitted by the Plan (to the extent applicable) by submitting a new written Payment Election to the Administrator, subject to the following conditions: (1) the new Payment Election shall not be effective unless made before the payment or commencement date scheduled under the prior Payment Election, (2) the payment or commencement date under the prior Payment Election is not changed (or the change is made pursuant to the provisions of the preceding paragraph), and (3) the annuities are actuarially equivalent (within the meaning of Treasury Regulation Section 1.409A-2(b)(2)(ii).

4.4 Small Benefit Exception

Notwithstanding the foregoing, the Administrator may, in its sole discretion and as determined by it in writing, pay the benefits in a single lump sum if the sum of all benefits payable to the Participant under this Plan and all Similar Plans is less than or equal to the applicable dollar amount under Section 402(g)(1)(B) of the Code.

4.5 Six-Month Delay in Payment for Specified Employees

Notwithstanding anything herein to the contrary, in the event that a Participant who is a Specified Employee is entitled to a distribution from the Plan due to the Participant’s Separation from Service, the lump sum payment or the commencement of installment or life annuity payments, as the case may be, may not be scheduled to occur or occur before the date that is the earlier of (1) six months following the Participant’s Separation from Service for reasons other than death or (2) the Participant’s death.

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4.6 Conflict of Interest Exception, Etc.

Notwithstanding the foregoing, the Administrator may, in its sole discretion, pay benefits in a single lump sum if permitted under Treasury Regulation Section 1.409A-3(j)(4)(iii). In addition, the Administrator may, in its sole discretion, accelerate benefits if and to the extent permitted under any of the other exceptions specified in Treasury Regulation Section 1.409A-3(j)(4) to the general rule in Section 409A of the Code prohibiting accelerated payments, provided that the terms of Section 4.4 of the Plan shall govern whether benefits will be paid in a single lump sum pursuant to the small benefit exception contained in Treasury Regulation Section 1.409A-3(j)(4)(v).

ARTICLE 5SURVIVOR BENEFITS

5.1 Payment

Following the Participant’s death, payment of the Participant’s benefit will be made to the Participant’s Beneficiary or Beneficiaries according to the payment schedule elected or deemed elected according to Article 4.

5.2 Benefit Computation

In addition, if the applicable Payment Election or deemed Payment Election is for a joint and survivor life annuity, the survivor benefit is 50% of the Participant’s annuity amount, payable only to the spouse married to the Participant at the earlier of the commencement of Plan benefit payments to the Participant or the Participant’s death, but actuarially reduced if that spouse is more than five years younger than the Participant. If the election is for a contingent life annuity, the survivor benefit will be as elected. The survivor benefit associated with a life annuity will be calculated in a manner consistent with the survivor benefit provisions of the Qualified Plan except that this Plan will govern where its provisions under Sections 3.3 and 3.4(d) are inconsistent with those of the Qualified Plan.

ARTICLE 6BENEFICIARY DESIGNATION

The Participant will have the right, at any time, to designate any person or persons or entity as Beneficiary (both primary and contingent) to whom payment under the Plan will be made in the event of the Participant’s death; provided that if the Participant has elected (or is deemed to have elected) a Payment Election in the form of a joint and survivor life annuity or a contingent life annuity and designates a new person or entity as Beneficiary after annuity payments have commenced, the annuity payments to such newly designated Beneficiary must be made in the same amounts and at the same times as payments would have been made to the designated Beneficiary immediately preceding the commencement of payments. The Beneficiary designation will be effective when it is submitted to the Administrator during the Participant’s lifetime in accordance with procedures established by the Administrator.

The submission of a new Beneficiary designation will cancel all prior Beneficiary designations. Any finalized divorce or marriage of a Participant subsequent to the date of a

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Beneficiary designation will revoke such designation, unless in the case of divorce the previous spouse was not designated as a Beneficiary, and unless in the case of marriage the Participant’s new spouse has previously been designated as Beneficiary. The spouse of a married Participant must consent in writing to any designation of a Beneficiary other than the spouse.

If a Participant fails to designate a Beneficiary as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or otherwise without execution of a new designation, or if every person designated as Beneficiary predeceases the Participant, then the Administrator will direct the distribution of the benefits to the Participant’s estate. If a primary Beneficiary dies after the Participant’s death but prior to completion of the distribution of benefits under this Plan, and no contingent Beneficiary has been designated by the Participant, any remaining payments will be made to the primary Beneficiary’s Beneficiary, if one has been designated, or to the Beneficiary’s estate.

ARTICLE 7CONDITIONS RELATED TO BENEFITS

7.1 Nonassignability

The benefits provided under the Plan may not be alienated, assigned, transferred, pledged or hypothecated by or to any person or entity, at any time or any manner whatsoever. These benefits will be exempt from the claims of creditors of any Participant or other claimants and from all orders, decrees, levies, garnishment or executions against any Participant to the fullest extent allowed by law. Notwithstanding the foregoing, the benefit payable to a Participant may be assigned in full or in part, pursuant to a domestic relations order of a court of competent jurisdiction.

7.2 Unforeseeable Emergency

A Retired Participant, a Participant who has a Disability, or a Participant who is age 55 or older may submit a hardship distribution request to the Administrator in writing setting forth the reasons for the request. The Administrator will have the sole authority to approve or deny such requests. Upon a finding that the Participant has suffered an Unforeseeable Emergency, the Administrator may in its discretion, permit the Participant to accelerate distributions of benefits under the Plan in the amount reasonably necessary to alleviate the Unforeseeable Emergency.

7.3 No Right to Assets

A Participant’s benefits paid under the Plan will be paid from the general funds of the Participant’s Employer, and the Participant and any Beneficiary will be no more than unsecured general creditors of that Employer with no special or prior right to any assets of the Employer for payment of any obligations hereunder. Neither the Participant nor the Beneficiary will have a claim to benefits from any other Affiliate. Notwithstanding the foregoing or anything in the definition of “Employer” to the contrary, and at the sole discretion of EIX, EIX may determine that for purposes of benefits payable under the Plan, EIX shall be deemed to be the Employer obligated to pay such benefits. Such an election by EIX may be made, in EIX’s sole discretion, as to all Plan benefits, as to only certain benefits, and/or as to only certain Affiliates or Participants, and will be deemed an assumption of the specified benefit obligations of the

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applicable Affiliates. Subject to the further provisions hereof, EIX will be solely obligated to pay any such benefits and no Participant (or Beneficiary) will have a claim as to any other Affiliate with respect to such benefits. Upon an election by EIX under this Section 7.3, benefits covered by the election will be paid from the general funds of EIX (and not the Affiliate that would otherwise pay the benefits), provided that EIX may require that as between EIX and the Affiliate that would otherwise pay such benefits, the Affiliate will be responsible to pay EIX for the assumption of such obligations in accordance with funding arrangements determined by EIX at the time of election or any time thereafter. To the extent such Affiliate fails to comply with such funding arrangements or obtains any refund or offset of payments made from the Affiliate to EIX without the consent of EIX, the Affiliate that would otherwise be responsible for payment of benefits to the applicable Participant will remain responsible for such benefits. EIX will effectuate any such election pursuant to this Section 7.3 by providing written notice to the Administrator and the applicable Affiliates regarding the effective date of such election, and the benefits, Affiliates and Participants for which the election is applicable. The funding arrangements established by EIX at the time of its election, or from time to time thereafter, will set forth the method by which the Affiliates will remit funds to EIX in consideration of Plan benefit obligations that are assumed by EIX. Such a method may include, but is not limited to, lump sum payment by an Affiliate to EIX of relevant benefits accrued through the date of EIX’s election based on the Projected Benefit Obligation (“PBO”) with regular periodic payments to EIX of continuing accruals; regular periodic payments by an Affiliate to EIX of benefits accrued based on the PBO beginning with the date of EIX’s election through the date such benefits become due under the Plan; lump sum payment by an Affiliate to EIX at the time benefits become due under the Plan; or intercompany payables and receivables used with funding on a “pay-as-you-go” basis.

7.4 Protective Provisions

The Participant will cooperate with the Administrator by furnishing any and all information requested by the Administrator, in order to facilitate the payment of benefits hereunder, taking such physical examinations as the Administrator may deem necessary and signing such consents to insure or taking such other actions as may be requested by the Administrator. If the Participant refuses to cooperate, the Administrator and the Employer will have no further obligation to the Participant under the Plan.

7.5 Constructive Receipt

Notwithstanding anything to the contrary in this Plan, in the event the Administrator determines that amounts deferred under the Plan have failed to comply with Section 409A and must be recognized as income for federal income tax purposes, distribution of the amounts included in a Participant’s income will be made to such Participant. The determination of the Administrator under this Section 7.5 will be binding and conclusive.

7.6 Withholding

The Participant or the Beneficiary will make appropriate arrangements with the Administrator for satisfaction of any federal, state or local income tax withholding requirements and Social Security or other employee tax requirements applicable to the accrual or payment of

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benefits under the Plan. If no other arrangements are made, the Administrator may provide, at its discretion, for such withholding and tax payments as may be required.

7.7 Incapacity

If any person entitled to payments under this Plan is incapacitated and unable to use such payments in his or her own best interest, EIX may direct that payments (or any portion) be made to that person’s legal guardian or conservator, or that person’s spouse, as an alternative to payment to the person unable to use the payments. EIX will have no obligation to supervise the use of such payments, and court-appointed guardianship or conservatorship may be required.

ARTICLE 8PLAN ADMINISTRATION

8.1 Plan Interpretation

The Administrator will administer the Plan and interpret, construe and apply its provisions in accordance with its terms and will provide direction and oversight as necessary to management, staff, or contractors to whom day-to-day Plan operations may be delegated. The Administrator will establish, adopt or revise such rules and regulations as it may deem necessary or advisable for the administration of the Plan. The Administrator will interpret and construe the Plan to comply with Section 409A of the Code. All decisions of the Administrator will be final and binding.

8.2 Limited Liability

Neither the Administrator, nor any of its members or designees, will be liable to any person for any action taken or omitted in connection with the interpretation and administration of this Plan.

ARTICLE 9AMENDMENT OR TERMINATION OF PLAN

9.1 Authority to Amend or Terminate

The Administrator will have full power and authority to prospectively modify or terminate this Plan, and the Administrator’s interpretations, constructions and actions, including any determination of the Participant’s account or benefits, or the amount or recipient of the payment to be made, will be binding and conclusive on all persons for all purposes. Absent the consent of the Participant, however, the Administrator will in no event have any authority to modify this section. However, no such amendment or termination will apply to any person who has then qualified for or is receiving benefits under this Plan.

9.2 Limitations

In the event of Plan amendment or termination which has the effect of eliminating or reducing a benefit under the Plan, the benefit payable on account of a retired Participant or Beneficiary will not be impaired, and the benefits of other Participants will not be less than the

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benefit to which each such Participant would have been entitled if he or she had retired immediately prior to such amendment or termination.

ARTICLE 10CLAIMS AND REVIEW PROCEDURES

10.1 Claims Procedure for Claims Other Than Due to Disability

(a)Except for claims due to Disability, the Administrator will notify a Participant or his or her Beneficiary (or person submitting a claim on behalf of the Participant or Beneficiary) (a “claimant”) in writing, within 90 days after his or her written application for benefits, of his or her eligibility or noneligibility for benefits under the Plan. If the Administrator determines that a claimant is not eligible for benefits or full benefits, the notice will set forth (1) the specific reasons for the denial, (2) a specific reference to the provisions of the Plan on which the denial is based, (3) a description of any additional information or material necessary for the claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the claimant wishes to have the claim reviewed. If the Administrator determines that there are special circumstances requiring additional time to make a decision, the Administrator will notify the claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90-day period.

(b)If a claimant is determined by the Administrator not to be eligible for benefits, or if the claimant believes that he or she is entitled to greater or different benefits, the claimant will have the opportunity to have the claim reviewed by the Administrator by filing a petition for review with the Administrator within 60 days after receipt of the notice issued by the Administrator. Said petition will state the specific reasons which the claimant believes entitle him or her to benefits or to greater or different benefits. Within 60 days after receipt by the Administrator of the petition, the Administrator will afford the claimant (and counsel, if any) an opportunity to present his or her position to the Administrator in writing, and the claimant (or counsel) will have the right to review the pertinent documents. The Administrator will notify the claimant of its decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the claimant and the specific provisions of the Plan on which the decision is based. If, due to special circumstances (for example, because of the need for a hearing), the 60-day period is not sufficient, the decision may be deferred for up to another 60-day period at the election of the Administrator, but notice of this deferral will be given to the claimant. In the event of the death of the Participant, the same procedures will apply to the Participant’s Beneficiaries.

10.2 Claims Procedure for Claims Due to Disability

(a)For purposes of Section 10.1, this Section 10.2 and Section 10.3, a claim shall not be considered to be due to Disability if the existence of the Participant’s Disability is determined by reference to whether the Participant is eligible for benefits under his or her Employer’s long-term disability plan applicable to the Participant, as determined by the Employer. A claim due to Disability will be approved or denied by the Administrator or its delegate, as it deems appropriate in its discretion, based on its interpretation of the Plan, medical evidence, and the

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analysis and conclusions of a physician selected by the Administrator or its delegate. Within a reasonable period of time, but not later than 45 days after receipt of a claim due to Disability, the Administrator or its delegate shall notify the claimant of any adverse benefit determination on the claim, unless circumstances beyond the Plan’s control require an extension of time for processing the claim. Except as contemplated by this Section 10.2, in no event may the extension period exceed 30 days from the end of the initial 45-day period. If an extension is necessary, the Administrator or its delegate shall provide the claimant with a written notice to this effect prior to the expiration of the initial 45-day period. The notice shall describe the circumstances requiring the extension and the date by which the Administrator or its delegate expects to render a determination on the claim. If, prior to the end of the first 30-day extension period, the Administrator or its delegate determines that, due to circumstances beyond the control of the Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended for an additional 30 days, so long as the Administrator or its delegate notifies the claimant, prior to the expiration of the first 30-day extension period, of the circumstances requiring the extension and the date as of which the Administrator or its delegate expects to render a decision. This notice of extension shall specifically describe the standards on which entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues, and that the claimant has at least 45 days within which to provide the specified information. Furthermore, in the event that a period of time is extended as permitted due to a claimant’s failure to submit information necessary to decide a claim, the period for making the benefit determination shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information.

(b)In the case of an adverse benefit determination, the Administrator or its delegate shall provide to the claimant written or electronic notification setting forth in a manner calculated to be understood by the claimant in a culturally and linguistically appropriate manner: (i) the specific reason or reasons for the adverse benefit determination; (ii) reference to the specific Plan provisions on which the adverse benefit determination is based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why the material or information is necessary; (iv) a description of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with Section 10.2(c) below; (v) either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or a statement that such rules,guidelines, protocols, standards or other similar criteria of the Plan do not exist; (vi) if the determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s medical circumstances, or a statement that such explanation shall be provided free of charge upon request; (vii) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; and (viii) a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (a) the views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (b) the views of medical or vocational experts whose

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advice was obtained on behalf of the Plan in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (c) a disability determination made by the Social Security Administration regarding the claimant presented by the claimant to the Plan.

(c)Any good-faith determination by the Administrator or its delegate will be final and binding on the Plan and the claimant unless appealed in accordance with this Section 10.2(c). Within 180 days after receipt by the claimant of notification of the adverse benefit determination, the claimant or the claimant’s duly authorized representative, upon written application to the Administrator, may request that the Plan fully and fairly review the adverse benefit determination (also sometimes referred to herein as an “appeal”). Upon request and free of charge, the claimant pursuing an appeal shall have reasonable access to, and be provided copies of, all documents, records and other information relevant to the claimant’s claim for benefits. The claimant shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits. The review: (i) shall take into account all comments, documents, records, and other information submitted regardless of whether the information was previously submitted or considered in the initial adverse benefit determination; (ii) shall not afford deference to the initial adverse benefit determination; (iii) shall be conducted, at the direction of the Administrator, by an appropriate fiduciary of the Plan who is neither the individual who made the adverse benefit determination that is the subject of the review, nor the subordinate of such individual; (iv) shall identify medical and vocational experts whose advice was obtained on behalf of the Plan in connection with the initial adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (v) where based in whole or in part on medical evidence or medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, shall include consultation with a physician, with appropriate training and experience in the field of medicine involved in the medical judgment, who was neither consulted in connection with the initial adverse benefit determination, nor the subordinate of any such professional.

The appeal will then be approved or denied by the Administrator or its delegate, as it deems appropriate, based on its interpretation of the Plan in light of the medical evidence.

Before an adverse benefit determination on review of a claim due to Disability is issued, the claimant shall be provided, free of charge, with any new or additional evidence considered, relied upon, or generated by the Administrator or its delegate making the benefit determination (or at the direction of the Administrator) in connection with the claim; such evidence will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the claimant a reasonable opportunity to respond prior to that date.

Also before an adverse benefit determination on review based on a new or additional rationale is issued, the claimant shall be provided, free of charge, the rationale; the rationale must be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the claimant a reasonable opportunity to respond prior to that date.

26

A final benefit determination will be made by the Administrator or its delegate, and the Administrator or its delegate shall provide the claimant with written or electronic notification of the final benefit determination within a reasonable period of time, but no later than 45 days immediately following receipt of claimant’s request for review, unless special circumstances require a further extension of time for processing the claim, which extension may be up to an additional 45 days. If such an extension of time for review is required because of special circumstances, the Administrator or its delegate shall provide the claimant with a written notice of the extension prior to the commencement of the extension. The notice shall describe the special circumstances requiring the extension and the date as of which the final benefit determination shall be made. In the event that a period of time is extended due to a claimant’s failure to submit information necessary to decide a claim, the period for making the benefit determination on review shall be tolled from the date on which the notification of the extension is sent to the claimant until the date on which the claimant responds to the request for additional information. In the case of an adverse final benefit determination, the Administrator or its delegate shall provide to the claimant written or electronic notification setting forth in a manner calculated to be understood by the claimant and in a culturally and linguistically appropriate manner: (i) the specific reason or reasons for the adverse final benefit determination; (ii) reference to the specific Plan provisions on which the adverse final benefit determination is based; (iii) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits; (iv) a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and mandatory arbitration in accordance with Section 10.3 below; (v) either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse determination or a statement that such rules, guidelines, protocols, standards or other similar criteria of the Plan do not exist; (vi) if the determination is based on a medical necessity or experimental treatment or similar exclusion or limit, an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s medical circumstances, or a statement that such explanation shall be provided free of charge upon request; (vii) a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (a) the views presented by the claimant to the Plan of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (b) the views of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (c) a disability determination made by the Social Security Administration regarding the claimant presented by the claimant to the Plan; and (viii) the following statement: “You and your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency.” As described above, there shall be only one level of review of an adverse benefit determination, followed by mandatory arbitration under Section 10.3, before a claimant may bring a civil action pursuant to Section 502 of ERISA.

10.3 Dispute Arbitration

(a)Effective as to any claims filed on or after June 19, 2014, final and binding arbitration under this Section 10.3 shall be the sole remedy available to a claimant after he or she

27

has exhausted the claim and review procedures set forth in Section 10.1. Furthermore, exhaustion by the claimant of the claim and review procedures set forth in Section 10.1 is a mandatory prerequisite for binding arbitration under this Section 10.3. Any arbitration or civil action brought prior to the exhaustion of the claim and review procedures set forth in Section 10.1 shall be remanded to the Administrator to permit the claim and review procedures to be exhausted.

(b)After a claimant has exhausted the claim and review procedures set forth in Section 10.1, if the claimant is determined by the Administrator not to be eligible for benefits, or if the claimant believes that he or she is entitled to greater or different benefits, the claimant may submit his or her claim to final and binding arbitration under this Section 10.3.

Any arbitration under this Section 10.3 will be held in Los Angeles County, California, in accordance with the then-current JAMS Arbitration Rules and Procedures for Employment Disputes (“JAMS Rules”) and under the Federal Arbitration Act. The arbitration shall be before a sole arbitrator, selected by mutual agreement of the parties. If the parties are unable to agree upon an arbitrator, the arbitrator shall be selected by striking in accordance with the then-current JAMS Rules from a list of arbitrators supplied by JAMS. Any and all claims and/or defenses that would otherwise be available in a court of law will be fully available to the parties. The arbitrator selected pursuant to this paragraph (the “Arbitrator”) may order such discovery as is necessary for a full and fair exploration of the issues and dispute, consistent with the expedited nature of arbitration. The Arbitrator shall apply applicable substantive law to resolve the dispute. To the fullest extent provided by federal law, the decision rendered by the Administrator pursuant to the claim and review procedures set forth in Section 10.1 shall be upheld by the Arbitrator unless the Arbitrator determines that the Administrator abused its discretion. Notwithstanding the preceding sentence, if a Change in Control occurs, then a claim review decision rendered by the Administrator within the three years following the Change in Control shall, if it is challenged by the claimant in accordance with this Section 10.3, be subject to de novo review by the Arbitrator. Subject to the applicable standard of review in the preceding two sentences, the Arbitrator may grant any award or relief available under applicable law that the Arbitrator deems just and equitable.

At the conclusion of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto, and may be enforced by any court of competent jurisdiction. All costs unique to arbitration (e.g., the Arbitrator’s fees and room fees) shall be paid by the Administrator. The parties shall otherwise bear their own costs (e.g., attorneys’ fees, expert fees, witness fees, etc.). If, however, any party prevails on a statutory claim that affords the prevailing party attorneys’ fees and costs, then the Arbitrator may award reasonable fees and costs to the prevailing party.

(c)Notwithstanding any contrary provisions of this Section 10.3, if the claim is due to Disability, the following rules apply: (1) arbitration under this Section 10.3 shall be the mandatory second level of appeal following the exhaustion by the claimant of the claim and review procedures set forth in Section 10.2, and such exhaustion is a mandatory prerequisite for arbitration under this Section 10.3—any arbitration or civil action brought with respect to a claim due to Disability prior to the exhaustion of the claim and review procedures set forth in

28

Section 10.2 shall be remanded to the Administrator to permit the claim and review procedures to be exhausted; (2) arbitration of a claim due to Disability under this Section 10.3 shall not be binding, and the claimant shall not be precluded from challenging the decision of the Arbitrator in a civil action brought pursuant to Section 502(a) of ERISA; and (3) except as specifically set forth in this Section 10.3(c), if the claim is due to Disability, the arbitration shall be conducted as set forth in Section 10.3(b).

ARTICLE 11MISCELLANEOUS

11.1 Participation in Other Plans

Participation in this Plan will not limit a Participant’s ability to continue to participate in any other employee benefit program of an Employer, subject to and in accordance with the terms of the applicable employee benefit program.

11.2 Relationship to Qualified Plan

This Plan will to the fullest extent possible under currently applicable law be administered in accordance with, and where practicable according to the terms of the Qualified Plan and/or Savings Plan. Notwithstanding the foregoing, the terms of this Plan shall control benefits payable under this Plan whenever the terms of the Qualified Plan and/or Savings Plan differ from this Plan.

11.3 Forfeiture

The payments to be made pursuant to the Plan require the Participant, for so long as the Participant remains in the active employ of the Employer, to devote substantially all of his or her time, skill, diligence and attention to the business of the Employer and not to actively engage, either directly or indirectly, in any business or other activity adverse to the best interests of the business of the Employer. In addition, the Participant will remain available during Retirement for consultation in any matter related to the affairs of the Employer. Any breach of these conditions by a Participant will result in complete forfeiture by the Participant of any further benefits under the Plan. If the Participant fails to observe any of the above conditions, or if he or she is discharged by the Employer for malfeasance or willful neglect of duty, then in any of said events, the Participant’s benefits under this Plan will terminate and will not be paid, and EIX and the Employer will have no further liability therefor.

11.4 Successors

The rights and obligations of each Employer under the Plan will inure to the benefit of, and will be binding upon, the successors and assigns of the Employer.

11.5 Trust

The Employers will be responsible for the payment of all benefits under the Plan. At their discretion, the Employers may establish one or more grantor trusts for the purpose of providing for payment of benefits under the Plan. The trust or trusts may be irrevocable, but an

29

Employer’s share of the assets thereof will be subject to the claims of the Employer’s creditors. Benefits paid to the Participant from any such trust will be considered paid by the Employer for purposes of meeting the obligations of the Employer under the Plan.

11.6 Employment Not Guaranteed

Nothing contained in the Plan nor any action taken hereunder will be construed as a contract of employment or as giving any Participant any right to continue in employment with the Employer or any other Affiliate.

11.7 Gender, Singular and Plural

All pronouns and variations thereof will be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may be read as the plural and the plural as the singular.

11.8 Captions

The captions of the articles and sections of the Plan are for convenience only and will not control or affect the meaning or construction of any of its provisions.

11.9 Validity

If any provision of the Plan is held invalid, void or unenforceable, the same will not affect, in any respect whatsoever, the validity of any other provisions of the Plan.

11.10 Waiver of Breach

The waiver by EIX or the Administrator of any breach of any provision of the Plan by the Participant will not operate or be construed as a waiver of any subsequent breach by the Participant.

11.11 Applicable Law

The Plan will be governed and construed in accordance with the laws of California except where the laws of California are preempted by ERISA.

11.12 Notice

Any notice or filing required or permitted to be given to the Administrator under the Plan will be sufficient if in writing and hand-delivered, or sent by first class mail to the principal office of EIX, directed to the attention of the Administrator. The notice will be deemed given as of the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark.

11.13 ERISA Plan

The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for “a select group of management or highly compensated employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from

30

Parts 2, 3 and 4 of Title I of ERISA. EIX is the named fiduciary.

11.14 Statutes and Regulations

Any reference to a statute or regulation herein shall include any successor to such statute or regulation.

IN WITNESS WHEREOF, EIX has amended this Plan on the 11th day of June, 2019.

EDISON INTERNATIONAL

/s/ Jacqueline Trapp

Jacqueline Trapp

Senior Vice President, Human Resources

31

EX-31.1

Exhibit 31.1

CERTIFICATION

I, PEDRO J. PIZARRO, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Edison International;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2019

/s/ PEDRO J. PIZARRO

PEDRO J. PIZARRO

Chief Executive Officer

CERTIFICATION

I, MARIA RIGATTI, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Edison International;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2019

/s/ MARIA RIGATTI

MARIA RIGATTI

Chief Financial Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, KEVIN M. PAYNE, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Southern California Edison Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2019

/s/ KEVIN M. PAYNE

KEVIN M. PAYNE

Chief Executive Officer

CERTIFICATION

I, WILLIAM M. PETMECKY III, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Southern California Edison Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 25, 2019

/s/ WILLIAM M PETMECKY III

WILLIAM M. PETMECKY III

Chief Financial Officer

EX-32.1

Exhibit 32.1

STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350, AS

ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (the “Quarterly Report”), of Edison International (the “Company”), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his or her knowledge, that:

1. The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 25, 2019

/s/ PEDRO J. PIZARRO

PEDRO J. PIZARRO

Chief Executive Officer

Edison International

/s/ MARIA RIGATTI

MARIA RIGATTI

Chief Financial Officer

Edison International

This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350, AS

ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (the “Quarterly Report”), of Southern California Edison Company (the “Company”), and pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his knowledge, that:

1. The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 25, 2019

/s/ KEVIN M. PAYNE

KEVIN M. PAYNE

Chief Executive Officer

Southern California Edison Company

/s/ WILLIAM M. PETMECKY III

WILLIAM M. PETMECKY III

Chief Financial Officer

Southern California Edison Company

This statement accompanies the Quarterly Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 23, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-9936
Entity Registrant Name	EDISON INTERNATIONAL
Entity Incorporation, State or Country Code	CA
IRS Employer Identification Number	95-4137452
Entity Address, Address Line One	2244 Walnut Grove Avenue
Entity Address, Address Line Two	(P.O. Box 976)
Entity Address, City or Town	Rosemead,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91770
City Area Code	(626)
Local Phone Number	302-2222
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of each class	Common Stock, no par value
Trading Symbol	EIX
Security Exchange Name	NYSE
Entity Shell Company	false
Entity Central Index Key	0000827052
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		325,811,206
Southern California Edison
Entity Information [Line Items]
Document Type	10-Q
Entity File Number	1-2313
Entity Registrant Name	SOUTHERN CALIFORNIA EDISON CO
Entity Incorporation, State or Country Code	CA
IRS Employer Identification Number	95-1240335
Entity Address, Address Line One	2244 Walnut Grove Avenue
Entity Address, Address Line Two	(P.O. Box 800)
Entity Address, City or Town	Rosemead,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91770
City Area Code	(626)
Local Phone Number	302-1212
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000092103
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		434,888,104
Southern California Edison | NYSE American LLC | Cumulative Preferred Stock, 4.08% Series
Entity Information [Line Items]
Title of each class	Cumulative Preferred Stock, 4.08% Series
Trading Symbol	SCEpB
Security Exchange Name	NYSEAMER
Southern California Edison | NYSE American LLC | Cumulative Preferred Stock, 4.08% Series
Entity Information [Line Items]
Title of each class	Cumulative Preferred Stock, 4.24% Series
Trading Symbol	SCEpC
Security Exchange Name	NYSEAMER
Southern California Edison | NYSE American LLC | Cumulative Preferred Stock, 4.32% Series
Entity Information [Line Items]
Title of each class	Cumulative Preferred Stock, 4.32% Series
Trading Symbol	SCEpD
Security Exchange Name	NYSEAMER
Southern California Edison | NYSE American LLC | Cumulative Preferred Stock, 4.78% Series
Entity Information [Line Items]
Title of each class	Cumulative Preferred Stock, 4.78% Series
Trading Symbol	SCEpE
Security Exchange Name	NYSEAMER

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total operating revenue	$ 2,812	$ 2,815	$ 5,636	$ 5,379
Purchased power and fuel	1,135	1,112	2,140	2,038
Operation and maintenance	595	719	1,477	1,394
Depreciation and amortization	321	463	801	925
Property and other taxes	93	97	203	204
Impairment and other	170	5	166	71
Other operating income	(2)	(1)	(3)	(3)
Total operating expenses	2,312	2,395	4,784	4,629
Operating income	500	420	852	750
Interest expense	(211)	(180)	(405)	(350)
Other income and expense	55	49	93	100
Income from continuing operations before income taxes	344	289	540	500
Income tax benefit	(78)	(9)	(190)	(40)
Income from continuing operations	422	298	730	540
Net income	422	298	730	540
Preferred and preference stock dividend requirements of SCE	30	30	60	60
Other noncontrolling interests	0	(8)	0	(14)
Net income attributable to Edison International common shareholders	392	276	670	494
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax	392	276	670	494
Net income attributable to Edison International common shareholders	$ 392	$ 276	$ 670	$ 494
Basic earnings per share:
Weighted average common shares outstanding (in shares)	326	326	326	326
Continuing operations (in dollars per share)	$ 1.20	$ 0.85	$ 2.05	$ 1.52
Basic earnings per common share attributable to Edison International common shareholders (in dollars per share)	$ 1.20	$ 0.85	$ 2.05	$ 1.52
Diluted earnings per share:
Weighted-average shares of common stock outstanding, including effect of dilutive securities (in shares)	327	327	327	327
Continuing operations (in dollars per share)	$ 1.20	$ 0.84	$ 2.05	$ 1.51
Diluted earnings per common share attributable to Edison International common shareholders (in dollars per share)	$ 1.20	$ 0.84	$ 2.05	$ 1.51
Southern California Edison Company
Total operating revenue	$ 2,800	$ 2,803	$ 5,616	$ 5,357
Purchased power and fuel	1,135	1,112	2,140	2,038
Operation and maintenance	571	694	1,440	1,345
Depreciation and amortization	320	462	800	921
Property and other taxes	93	97	202	202
Impairment and other	170	0	166	0
Other operating income	(2)	(1)	(3)	(2)
Total operating expenses	2,287	2,364	4,745	4,504
Operating income	513	439	871	853
Interest expense	(188)	(164)	(366)	(319)
Other income and expense	56	50	94	101
Income from continuing operations before income taxes	381	325	599	635
Income tax benefit	(68)	(2)	(173)	(8)
Net income	449	327	772	643
Preferred and preference stock dividend requirements of SCE	30	30	60	60
Net income attributable to Edison International common shareholders	419	297	712	583
Amounts attributable to Edison International common shareholders:
Net income attributable to Edison International common shareholders	$ 419	$ 297	$ 712	$ 583

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Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income	$ 422	$ 298	$ 730	$ 540
Pension and postretirement benefits other than pensions:
Amortization of net loss included in net income	1	2	3	4
Other	0	0	0	(5)
Other comprehensive income (loss), net of tax	1	2	3	(1)
Comprehensive income	423	300	733	539
Less: Comprehensive income attributable to noncontrolling interests	30	22	60	46
Comprehensive income attributable to Edison International	393	278	673	493
Southern California Edison Company
Net income	449	327	772	643
Pension and postretirement benefits other than pensions:
Amortization of net loss included in net income	1	1	2	3
Other	0	0	0	(5)
Other comprehensive income (loss), net of tax	1	1	2	(2)
Comprehensive income	$ 450	$ 328	$ 774	$ 641

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Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 257	$ 144
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates	795	730
Accrued unbilled revenue	562	482
Inventory	331	282
Income tax receivables	127	191
Prepaid expenses	407	148
Derivative assets	55	171
Regulatory assets	1,294	1,133
Other current assets	108	78
Total current assets	3,936	3,359
Nuclear decommissioning trusts	4,421	4,120
Other investments	83	63
Total investments	4,504	4,183
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,743 and $9,566 at respective dates	42,329	41,269
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates	85	79
Total property, plant and equipment	42,414	41,348
Regulatory assets	5,469	5,380
Operating lease right-of-use assets	742
Other long-term assets	2,456	2,445
Total long-term assets	8,667	7,825
Total assets	59,521	56,715
LIABILITIES AND EQUITY
Short-term debt	1,213	720
Current portion of long-term debt	479	79
Accounts payable	1,578	1,511
Customer deposits	302	299
Regulatory liabilities	767	1,532
Current portion of operating lease liabilities	108
Other current liabilities	1,218	1,254
Total current liabilities	5,665	5,395
Long-term debt	15,883	14,632
Deferred income taxes and credits	4,856	4,576
Pensions and benefits	864	869
Asset retirement obligations	3,016	3,031
Regulatory liabilities	8,685	8,329
Operating lease liabilities	634
Wildfire-related claims	4,669	4,669
Other deferred credits and other long-term liabilities	2,336	2,562
Total deferred credits and other liabilities	25,060	24,036
Total liabilities	46,608	44,063
Commitments and contingencies (Note 12)
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates)	2,555	2,545
Accumulated other comprehensive loss	(57)	(50)
Retained earnings	8,222	7,964
Total Edison International's common shareholders' equity	10,720	10,459
Noncontrolling interests – preferred and preference stock of SCE	2,193	2,193
Total equity	12,913	12,652
Total liabilities and equity	59,521	56,715
Southern California Edison Company
ASSETS
Cash and cash equivalents	26	21
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates	780	711
Accrued unbilled revenue	562	482
Inventory	331	282
Income tax receivables	211	312
Prepaid expenses	406	144
Derivative assets	55	171
Regulatory assets	1,294	1,133
Other current assets	96	69
Total current assets	3,761	3,325
Nuclear decommissioning trusts	4,421	4,120
Other investments	67	45
Total investments	4,488	4,165
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,743 and $9,566 at respective dates	42,329	41,269
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates	81	75
Total property, plant and equipment	42,410	41,344
Regulatory assets	5,469	5,380
Operating lease right-of-use assets	738
Long-term insurance receivable due from affiliate	1,000	1,000
Other long-term assets	1,371	1,360
Total long-term assets	8,578	7,740
Total assets	59,237	56,574
LIABILITIES AND EQUITY
Short-term debt	213	720
Current portion of long-term debt	79	79
Accounts payable	1,577	1,519
Accrued interest	257	212
Customer deposits	302	299
Regulatory liabilities	767	1,532
Current portion of operating lease liabilities	107
Power purchase contracts	208	205
Other current liabilities	497	580
Total current liabilities	4,007	5,146
Long-term debt	13,946	12,892
Deferred income taxes and credits	6,184	5,898
Pensions and benefits	430	433
Asset retirement obligations	3,016	3,031
Regulatory liabilities	8,685	8,329
Operating lease liabilities	631
Wildfire-related claims	4,669	4,669
Other deferred credits and other long-term liabilities	2,177	2,391
Total deferred credits and other liabilities	25,792	24,751
Total liabilities	43,745	42,789
Commitments and contingencies (Note 12)
Preferred and preference stock	2,245	2,245
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates)	2,168	2,168
Additional paid-in capital	1,886	680
Accumulated other comprehensive loss	(26)	(23)
Retained earnings	9,219	8,715
Total equity	15,492	13,785
Total liabilities and equity	$ 59,237	$ 56,574

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Receivables, allowances for uncollectible accounts	$ 49	$ 52
Utility property, plant and equipment, accumulated depreciation	9,743	9,566
Nonutility property, plant and equipment, accumulated depreciation	$ 83	$ 82
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares issued	325,811,206	325,811,206
Common stock, shares outstanding	325,811,206	325,811,206
Southern California Edison Company
Receivables, allowances for uncollectible accounts	$ 49	$ 51
Utility property, plant and equipment, accumulated depreciation	9,743	9,566
Nonutility property, plant and equipment, accumulated depreciation	$ 77	$ 77
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	560,000,000	560,000,000
Common stock, shares issued	434,888,104	434,888,104
Common stock, shares outstanding	434,888,104	434,888,104

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 730	$ 540
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	837	1,074
Allowance for equity during construction	(49)	(44)
Impairment and other	166	71
Deferred income taxes and investment tax credits	(182)	(5)
Other	13	35
Nuclear decommissioning trusts	(72)	(73)
Changes in operating assets and liabilities:
Receivables	(72)	(58)
Inventory	(49)	(14)
Accounts payable	221	(4)
Tax receivables and payables	65	90
Other current assets and liabilities	(423)	(533)
Regulatory assets and liabilities, net	(543)	204
Other noncurrent assets and liabilities	(44)	(66)
Net cash provided by operating activities	598	1,217
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs	1,682	2,417
Term loan issued	1,000	0
Long-term debt matured	(41)	(213)
Short-term debt financing, net	(509)	(2,031)
Payments for stock-based compensation	(48)	(21)
Receipts from stock option exercises	25	9
Dividends to noncontrolling interests	(60)	(60)
Dividends paid	(399)	(394)
Other	1	39
Net cash provided by (used in) financing activities	1,651	(254)
Cash flows from investing activities:
Capital expenditures	(2,235)	(2,159)
Proceeds from sale of nuclear decommissioning trust investments	2,440	1,770
Purchases of nuclear decommissioning trust investments	(2,368)	(1,697)
Proceeds from sale of SoCore Energy, net of cash acquired by buyer	0	78
Other	27	20
Investing cash flows from continuing operations	(2,136)	(1,988)
Net increase (decrease) in cash, cash equivalents and restricted cash including cash held for sale	113	(1,025)
Cash, cash equivalents and restricted cash at beginning of period	152	1,132
Cash, cash equivalents and restricted cash at end of period	265	107
Southern California Edison Company
Cash flows from operating activities:
Net income	772	643
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	834	1,069
Allowance for equity during construction	(49)	(44)
Impairment and other	166	0
Deferred income taxes and investment tax credits	(175)	12
Other	8	29
Nuclear decommissioning trusts	(72)	(73)
Changes in operating assets and liabilities:
Receivables	(80)	(67)
Inventory	(49)	(15)
Accounts payable	212	(35)
Tax receivables and payables	103	(9)
Other current assets and liabilities	(421)	(381)
Regulatory assets and liabilities, net	(543)	204
Other noncurrent assets and liabilities	(33)	(21)
Net cash provided by operating activities	673	1,312
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs	1,087	1,872
Long-term debt matured	(41)	(198)
Capital contribution from Edison International Parent	1,200	0
Short-term debt financing, net	(508)	(940)
Payments for stock-based compensation	(29)	(8)
Receipts from stock option exercises	16	3
Dividends paid	(260)	(484)
Other	2	2
Net cash provided by (used in) financing activities	1,467	247
Cash flows from investing activities:
Capital expenditures	(2,234)	(2,141)
Proceeds from sale of nuclear decommissioning trust investments	2,440	1,770
Purchases of nuclear decommissioning trust investments	(2,368)	(1,697)
Other	27	20
Investing cash flows from continuing operations	(2,135)	(2,048)
Net increase (decrease) in cash, cash equivalents and restricted cash including cash held for sale	5	(489)
Cash, cash equivalents and restricted cash at beginning of period	22	515
Cash, cash equivalents and restricted cash at end of period	$ 27	$ 26

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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Discounts and issuance costs of long term debt	$ 18	$ 33
Southern California Edison Company
Discounts and issuance costs of long term debt	$ 13	$ 28

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2018 Form 10-K.

In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Certain prior period amounts have been conformed to the current period's presentation.

The December 31, 2018 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Cash, Cash Equivalents and Restricted Cash

Cash equivalents include investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Money market funds	$	219	$	116	$	—	$	1

Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Book balances reclassified to accounts payable	$	43	$	65	$	43	$	65

The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:

(in millions)	June 30, 2019		December 31, 2018
Edison International:
Cash and cash equivalents	$	257	$	144
Short-term restricted cash1	8		8
Total cash, cash equivalents, and restricted cash	$	265	$	152
SCE:
Cash and cash equivalents	$	26	$	21
Short-term restricted cash1	1		1
Total cash, cash equivalents, and restricted cash	$	27	$	22

¹  Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.

Revenue Recognition

Regulatory Proceedings

2018 General Rate Case

In May 2019, the CPUC approved a final decision in SCE's 2018 GRC. The final decision authorized a revenue requirement of $5.116 billion for 2018 and identified changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The final decision also disallowed certain historical spending, largely related to specific pole replacements the CPUC determined were performed prematurely.

The final decision allows a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It also allows operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the final decision results in a revenue requirement of $5.451 billion in 2019 and $5.863 billion in 2020.

The revenue requirements in the 2018 GRC final decision are retroactive to January 1, 2018. SCE recorded the prior period impact of the 2018 GRC final decision in the second quarter of 2019, including:

• An increase to earnings of $131 million from the application of the decision to revenue, depreciation expense and income tax expense. Depreciation expense decreased as a result of lower authorized depreciation rates. An increase in the authorized revenue requirement for income tax expenses offsets income tax expenses recognized during 2018 and the first quarter of 2019. The reduction of revenue of $265 million reflects $289 million of lower authorized revenue related to 2018 and $24 million of higher authorized revenue in 2019. The reduction in revenue contributes to a refund to customers of $554 million which SCE recorded as a regulatory liability as of June 30, 2019. SCE expects to refund these amounts to customers through December 2020.

• An impairment of utility property, plant and equipment of $170 million ($123 million after-tax) related to disallowed historical capital expenditures, primarily the write-off of specific pole replacements the CPUC determined were performed prematurely.

See Note 11 for further information.

FERC Formula Rate

In October 2017, SCE filed its new formula rate with the FERC. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. In November 2018, SCE filed its 2019 annual update with the FERC with the proposed rates effective January 1, 2019, subject to settlement procedures and refund, and requested a decrease in transmission revenue requirement of $131 million, or 11% from amounts currently authorized in rates. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in 2018 and 2019 based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments.

In April 2019, SCE filed an application with the FERC to replace the formula rate associated with its transmission facilities in 2019. In the April 2019 formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its

proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4%. SCE is currently evaluating the impact of California Assembly Bill 1054 ("AB 1054") on its ROE request. See Note 12 for further information.

In June 2019, the FERC accepted the April 2019 formula rate as requested and suspended it for hearing and settlement procedures for five months. Therefore, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate on November 12, 2019. The new formula rate will be effective in November 2019 and will likely be subject to refund until it is ultimately approved by the FERC.

If the April 2019 formula rate is adopted as proposed, SCE's retail base transmission revenue requirement in 2020 is projected to increase $290 million from the currently effective retail base transmission revenue requirement of approximately $1.04 billion.

See Note 7 for further information on SCE's revenue.

Earnings Per Share

Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions, except per-share amounts)	2019		2018		2019		2018
Basic earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Basic earnings per share – continuing operations	$	1.20	$	0.85	$	2.05	$	1.52
Diluted earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Income impact of assumed conversions	—		—		—		—
Income from continuing operations available to common shareholders and assumed conversions	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Incremental shares from assumed conversions	1		1		1		1
Adjusted weighted average shares – diluted	327		327		327		327
Diluted earnings per share – continuing operations	$	1.20	$	0.84	$	2.05	$	1.51

In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 7,426,319 and 6,223,964 shares of common stock for the three months ended June 30, 2019 and 2018, respectively, and 7,435,580 and 6,223,964 shares for the six months ended June 30, 2019 and 2018, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive.

New Accounting Guidance

Accounting Guidance Adopted

On January 1, 2019, Edison International and SCE adopted accounting standards updates that require lessees to recognize a lease on the balance sheet as a right-of-use ("ROU") asset and related lease liability and classify the lease as either operating or finance. Edison International and SCE adopted this guidance using the modified retrospective approach for leases that existed as of the adoption date and elected the optional transition method not to restate periods prior to the adoption date. Edison International and SCE also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and the practical expedient not to reassess existing land easements. Adoption of this standard increased ROU assets and lease liabilities on the consolidated balance sheets by $956 million and $951 million as of January 1, 2019 for Edison International and SCE, respectively. The standard did not materially impact the consolidated statements of income for Edison International or SCE.

Based on accounting standards adopted at January 1, 2019, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. This occurs when an entity has the right to obtain substantially all of the economic benefits from and has the right to direct the use of the identified asset. SCE determines if an arrangement is a lease at contract inception, and for all classes of assets, SCE includes both lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. Lease ROU assets are based on the liability, subject to adjustments, such as lease incentives. In measuring lease assets and liabilities, SCE excludes variable lease payments, other than those that depend on an index, a rate or are in substance fixed payments. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment and other liabilities on the consolidated balance sheets. See Note 13 for further information.

In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income, while the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE adopted this guidance on January 1, 2019 and reclassified stranded tax effects of $10 million and $5 million, respectively, from accumulated other comprehensive income to retained earnings. See Notes 2 and 14 for further information.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to fair value measurement. Edison International and SCE adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on Edison International's and SCE's disclosures. See Note 4 for further information.

Accounting Guidance Not Yet Adopted

In June 2016, the FASB issued an accounting standards update to require the use of the current expected credit loss model to measure impairment of financial instruments and the use of an allowance to record estimated credit losses on available-for-sale debt securities. The guidance, as amended in November 2018 and May 2019, allows entities to irrevocably elect the fair value option for any financial instrument previously measured on an amortized costs basis. The guidance is effective January 1, 2020. Edison International and SCE are currently evaluating the impact of this new guidance.

In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment by changing the procedural steps to apply the goodwill impairment test. After the adoption of this accounting standards update, goodwill impairment will be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to goodwill impairment tests beginning in 2020.

In August 2018, the FASB issued an accounting standards update which aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance also clarified presentation requirements for reporting implementation costs in the financial statements. The guidance is effective January 1, 2020 with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1,

2021, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance and do not expect the adoption of this standard will materially affect disclosures.

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Consolidated Statements of Changes in Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Consolidated Statements of Changes in Equity

Consolidated Statements of Changes in Equity

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2019:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2018	$	2,545	$	(50	)	$	7,964		$	10,459		$	2,193		$	12,652
Net income	—		—			278			278			30			308
Other comprehensive income	—		2			—			2			—			2
Cumulative effect of accounting changes1	—		(10		)	10			—			—			—
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(18		)	(18		)	—			(18		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at March 31, 2019	$	2,550	$	(58	)	$	8,034		$	10,526		$	2,193		$	12,719
Net income	—		—			392			392			30			$	422
Other comprehensive income	—		1			—			1			—			1
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			(4		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at June 30, 2019	$	2,555	$	(57	)	$	8,222		$	10,720		$	2,193		$	12,913

¹ Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards updates on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2018:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other			Preferred and Preference Stock			Total Equity
Balance at December 31, 2017	$	2,526	$	(43	)	$	9,188		$	11,671		$	2		$	2,193		$	13,866
Net income (loss)	—		—			218			218			(3		)	30			245
Other comprehensive income	—		2			—			2			—			—			2
Cumulative effect of accounting changes1	—		(5		)	10			5			—			—			5
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(8		)	(8		)	—			—			(8		)
Noncash stock-based compensation	5		—			—			5			—			—			5
Other	—		—			—			—			1			—			1
Balance at March 31, 2018	$	2,531	$	(46	)	$	9,211		$	11,696		$	—		$	2,193		$	13,889
Net income (loss)	—		—			276			276			(8		)	30			298
Other comprehensive income	—		2			—			2			—			—			2
Contribution from tax equity investor	—		—			—			—			24			—			24
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			—			(4		)
Noncash stock-based compensation	6		—			—			6			—			—			6
Deconsolidation of SoCore Energy	—		—			—			—			(15		)	—			(15		)
Other	—		—			—			—			(1		)	—			(1		)
Balance at June 30, 2018	$	2,537	$	(44	)	$	9,286		$	11,779		$	—		$	2,193		$	13,972

¹  Edison International recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on revenue recognition and the measurement of financial instruments.

The following table provides SCE's changes in equity for the three and six months ended June 30, 2019:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2018	$	2,245	$	2,168	$	680	$	(23	)	$	8,715		$	13,785
Net income	—		—		—		—			323			323
Other comprehensive income	—		—		—		1			—			1
Cumulative effect of accounting change1	—		—		—		(5		)	5			—
Dividends declared on common stock ($0.4599 per share)	—		—		—		—			(200		)	(200		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(12		)	(12		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at March 31, 2019	$	2,245	$	2,168	$	683	$	(27	)	$	8,801		$	13,870
Net income	—		—		—		—			449			449
Other comprehensive income	—		—		—		1			—			1
Capital contribution from Edison International Parent	—		—		1,200		—			—			1,200
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(1		)	(1		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2019	$	2,245	$	2,168	$	1,886	$	(26	)	$	9,219		$	15,492

¹  SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

The following table provides SCE's changes in equity for the three and six months ended June 30, 2018:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2017	$	2,245	$	2,168	$	671	$	(19	)	$	9,607		$	14,672
Net income	—		—		—		—			316			316
Other comprehensive income	—		—		—		2			—			2
Cumulative effect of accounting change1							(5		)	5			—
Dividends declared on common stock ($0.4875 per share)	—		—		—		—			(212		)	(212		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(2		)	(2		)
Noncash stock-based compensation	—		—		2		—			—			2
Balance at March 31, 2018	$	2,245	$	2,168	$	673	$	(22	)	$	9,684		$	14,748
Net income	—		—		—		—			327			327
Other comprehensive income	—		—		—		1			—			1
Dividends declared on common stock ($0.2299 per share)	—		—		—		—			(100		)	(100		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(3		)	(3		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2018	$	2,245	$	2,168	$	676	$	(21	)	$	9,878		$	14,946

¹ 

SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

A variable interest entity ("VIE") is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch, and compliance with regulatory and contractual requirements.

Variable Interest in VIEs that are not Consolidated

Power Purchase Agreements

SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants, contracts with qualifying facilities ("QF") that contain variable pricing provisions based on the price of natural gas and renewable energy contracts through which SCE absorbs commodity price risk. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants.

As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to involvement with VIEs result from current amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its California Public Utilities Commission ("CPUC")-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 11 of the 2018 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,874 MW and 3,575 MW at June 30, 2019 and 2018, respectively, and the amounts that SCE paid to these projects were $122 million and $99 million for the three months ended June 30, 2019 and 2018, respectively, and $275 million and $239 million for the six months ended June 30, 2019 and 2018, respectively. These amounts are recoverable in customer rates, subject to reasonableness review.

Unconsolidated Trusts of SCE

SCE Trust II, Trust III, Trust IV, Trust V, and Trust VI were formed in 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities.

The Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE Board of Directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock.

The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of June 30, 2019 and December 31, 2018, consisted of investments of $400 million, $275 million, $325 million, $300 million, and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $400 million, $275 million, $325 million, $300 million, and $475 million of trust securities, respectively, and $10,000 each of common stock.

The following table provides a summary of the trusts' income statements:

	Three months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6
2018
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6

	Six months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12
2018
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Recurring Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2019 and December 31, 2018, nonperformance risk was not material for Edison International and SCE.

Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value.

Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds.

Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument.

The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.

Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using an income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities.

Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.

SCE

The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:

	June 30, 2019
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	3	$	63	$	(3	)	$	63
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,611		—		—		—			1,611
Fixed Income3	960		1,821		—		—			2,781
Short-term investments, primarily cash equivalents	79		21		—		—			100
Subtotal of nuclear decommissioning trusts4	2,650		1,842		—		—			4,492
Total assets	2,659		1,866		63		(3		)	4,585
Liabilities at fair value
Derivative contracts	—		34		—		(30		)	4
Total liabilities	—		34		—		(30		)	4
Net assets	$	2,659	$	1,832	$	63	$	27		$	4,581

	December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	32	$	141	$	—		$	173
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,382		—		—		—			1,382
Fixed Income3	1,001		1,665		—		—			2,666
Short-term investments, primarily cash equivalents	120		95		—		—			215
Subtotal of nuclear decommissioning trusts4	2,503		1,760		—		—			4,263
Total assets	2,512		1,813		141		—			4,466
Liabilities at fair value
Derivative contracts	—		13		—		(7		)	6
Total liabilities	—		13		—		(7		)	6
Net assets	$	2,512	$	1,800	$	141	$	7		$	4,460

¹  Represents the netting of assets and liabilities under master netting agreements and cash collateral.

²  Approximately 71% of SCE's equity investments were in companies located in the United States at both June 30, 2019 and December 31, 2018.

³  Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $67 million at both June 30, 2019 and December 31, 2018.

⁴  Excludes net payables of $71 million and $143 million at June 30, 2019 and December 31, 2018, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.

Edison International Parent and Other

Edison International Parent and Other assets measured at fair value consisted of money market funds of $219 million and $115 million at June 30, 2019 and December 31, 2018, respectively, classified as Level 1.

SCE Fair Value of Level 3

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Fair value of net assets at beginning of period	$	95		$	81		$	141		$	101
Total realized/unrealized losses1	(32		)	(29		)	(78		)	(49		)
Fair value of net assets at end of period2	$	63		$	52		$	63		$	52
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	(7	)	$	7		$	(3	)	$	7

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

²  There were no material transfers into or out of Level 3 during 2019 and 2018.

The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:

	Fair Value (in millions)					Significant	Range
	Assets		Liabilities		Valuation Technique(s)	Unobservable Input	(Weighted Average)
Congestion revenue rights
June 30, 2019	$	63	$	—	Auction prices	CAISO CRR auction prices	$(7.02) - $41.52 ($1.23)
December 31, 2018	141		—		Auction prices	CAISO CRR auction prices	$(7.41) - $41.52 ($1.62)

Level 3 Fair Value Uncertainty

For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value as of June 30, 2019, respectively.

Nuclear Decommissioning Trusts

SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers, and relevant credit information. There are no securities classified as Level 3 in the nuclear decommissioning trusts.

Fair Value of Debt Recorded at Carrying 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:

	June 30, 2019				December 31, 2018
(in millions)	Carrying Value1		Fair Value2		Carrying Value1		Fair Value2
Edison International	$	16,362	$	17,386	$	14,711	$	14,844
SCE	14,025		15,046		12,971		13,180

¹   Carrying value is net of debt issuance costs.

² The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.

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Debt and Equity Financing

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt and Equity Financing

Debt and Equity Financing

Long-Term Debt

During the first quarter of 2019, SCE issued $500 million of 4.20% first and refunding mortgage bonds due in 2029 and $600 million of 4.875% first and refunding mortgage bonds due in 2049. The proceeds were used to repay commercial paper borrowings and for general corporate purposes.

In June 2019, Edison International Parent issued $600 million of 5.75% senior notes due June 15, 2027. Of the proceeds of the senior note offering, $450 million was contributed to SCE with the remainder to be used for general corporate and working capital purposes.

Credit Agreements and Short-Term Debt

In February 2019, SCE borrowed $750 million under a Term Loan Agreement due in February 2020, with a variable interest rate based on the London Interbank Offered Rate plus 70 basis points. The proceeds were used to repay SCE's commercial paper borrowings and for general corporate purposes.

In April 2019, Edison International Parent borrowed $1.0 billion under a Term Loan Agreement due in April 2020, with a variable interest rate based on the London Interbank Offered Rate plus 90 basis points. Of the proceeds of the term loan, $750 million was contributed to SCE with the remainder to be used for general corporate and working capital purposes. SCE used the $750 million contribution to repay its February 2019 Term Loan discussed above.

In June 2019, SCE and Edison International Parent amended the maturity date of their multi-year revolving credit facilities of $3.0 billion and $1.5 billion, respectively. The facilities now mature in May 2024, with an option to extend for an additional year, which may be exercised upon agreement between SCE or Edison International Parent and their respective lenders. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes.

In June 2019, SCE used the $450 million capital contribution from Edison International Parent to repay commercial paper borrowings and for general corporate purposes. At June 30, 2019, SCE's outstanding commercial paper, net of discount, was $213 million at a weighted-average interest rate of 2.89%. At June 30, 2019, letters of credit issued under SCE's credit facility aggregated $209 million, substantially all of which are scheduled to expire in twelve months or less. At December 31, 2018, the outstanding commercial paper, net of discount, was $720 million at a weighted-average interest rate of 3.23%.

Edison International Parent had no outstanding commercial paper at both June 30, 2019 and December 31, 2018.

Issuance of Common Stock

At-the-Market Program

In May 2019, Edison International filed a prospectus supplement and executed several distribution agreements with certain sales agents to establish an "at-the-market" ("ATM") program under which it may sell shares of its common stock having an aggregate sales price of up to $1.5 billion. As of June 30, 2019, no sales had occurred and Edison International has no obligation to sell the remaining shares available under the ATM program.

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Derivative Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Commodity Price Risk

Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements.

Credit and Default Risk

Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments.

Certain power and gas contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction.

Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $4 million as of June 30, 2019 and December 31, 2018, for which SCE has posted no collateral and $17 million collateral at June 30, 2019 and December 31, 2018, respectively, to its counterparties for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2019, SCE would be required to post $5 million of additional collateral.

Fair Value of Derivative Instruments

SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2019
	Derivative Assets								Derivative Liabilities								Net Assets
(in millions)	Short-Term			Long-Term1		Subtotal			Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	58		$	8	$	66		$	34		$	—	$	34		$	32
Gross amounts offset in the consolidated balance sheets	(3		)	—		(3		)	(3		)	—		(3		)	—
Cash collateral posted3	—			—		—			(27		)	—		(27		)	27
Net amounts presented in the consolidated balance sheets	$	55		$	8	$	63		$	4		$	—	$	4		$	59

	December 31, 2018
	Derivative Assets						Derivative Liabilities								Net Assets
(in millions)	Short-Term		Long-Term1		Subtotal		Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	171	$	2	$	173	$	13		$	—	$	13		$	160
Gross amounts offset in the consolidated balance sheets	—		—		—		—			—		—			—
Cash collateral posted	—		—		—		(7		)	—		(7		)	7
Net amounts presented in the consolidated balance sheets	$	171	$	2	$	173	$	6		$	—	$	6		$	167

¹ Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.

² Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.

³ At June 30, 2019, SCE posted $46 million of cash, of which $27 million was offset against net derivative liabilities and $19 million was reflected in "Other current assets" on the consolidated balance sheets.

Income Statement Impact of Derivative Instruments

SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in the consolidated statements of cash flows.

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Realized gains (losses)	$	(2	)	$	(8	)	$	30		$	(20	)
Unrealized losses	(78		)	(12		)	(128		)	(26		)

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2019	December 31, 2018
Electricity options, swaps and forwards	GWh	4,750	2,786
Natural gas options, swaps and forwards	Bcf	28	20
Congestion revenue rights	GWh	30,247	54,453

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Revenue

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

SCE's revenue is disaggregated by two revenue sources:

• Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.

• Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.

The following table is a summary of SCE's revenue:

	Three months ended June 30, 2019						Three months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities		Cost-Recovery Activities		Total Consolidated
Revenues from contracts with customers1,2,3	$	1,532	$	767	$	2,299	$	1,534	$	1,146	$	2,680
Alternative revenue programs and other operating revenue4	5		496		501		1		122		123
Total operating revenue	$	1,537	$	1,263	$	2,800	$	1,535	$	1,268	$	2,803

	Six months ended June 30, 2019						Six months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities			Cost-Recovery Activities			Total Consolidated
Revenues from contracts with customers1,2,3	$	3,034	$	1,724	$	4,758	$	3,070		$	2,338		$	5,408
Alternative revenue programs and other operating revenue4	53		805		858		(22		)	(29		)	(51		)
Total operating revenue	$	3,087	$	2,529	$	5,616	$	3,048		$	2,309		$	5,357

¹  In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and the three months ended March 31, 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. SCE recorded the impact of the 2018 GRC final decision in the second quarter of 2019, including a $265 million reduction in revenue. The 2018 GRC final decision results in 2018 and 2019 base rate revenue requirements of $5.116 billion and $5.451 billion, respectively. For further information, see Note 1.

²  At June 30, 2019 and December 31, 2018, SCE's receivables related to contracts from customers were $1.2 billion and $1.1 billion, respectively, which include accrued unbilled revenue of $562 million and $482 million, respectively.

³   Includes SCE's franchise fees billed to customers of $25 million and $29 million for the three months ended June 30, 2019 and 2018, respectively, and $53 million and $57 million for the six months ended June 30, 2019 and 2018, respectively.

⁴ 

Includes differences between amounts billed and authorized levels for both CPUC and FERC.

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Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Effective Tax Rate

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Income from continuing operations before income taxes	$	344		$	289		$	540		$	500
Provision for income tax at federal statutory rate of 21%	72			61			113			105
Increase in income tax from:
State tax, net of federal benefit	2			—			(5		)	(5		)
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	2			(1		)	(4		)	(2		)
Total income tax benefit from continuing operations	$	(78	)	$	(9	)	$	(190	)	$	(40	)
Effective tax rate	(22.7		)%	(3.1		)%	(35.2		)%	(8.0		)%
SCE:
Income from continuing operations before income taxes	$	381		$	325		$	599		$	635
Provision for income tax at federal statutory rate of 21%	80			68			126			133
Increase in income tax from:
State tax, net of federal benefit	3			3			(2		)	4
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	3			(4		)	(3		)	(7		)
Total income tax benefit from continuing operations	$	(68	)	$	(2	)	$	(173	)	$	(8	)
Effective tax rate	(17.8		)%	(0.6		)%	(28.9		)%	(1.3		)%

¹ Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11.

2018 GRC Final Decision

SCE recorded a tax benefit of $80 million related to the adoption of the 2018 GRC final decision primarily related to tax benefits on property-related items. This change primarily results from an updated estimate in the amount of excess deferred taxes returned to ratepayers for the year 2018.

Tax Disputes

Tax years that remain open for examination by the Internal Revenue Service ("IRS") and the California Franchise Tax Board are 2015 – 2017 and 2010 – 2017, respectively. Edison International has settled all open tax positions with the IRS for taxable years prior to 2013. 

In the fourth quarter of 2018, Edison International recorded the impacts of a settlement reached with the California Franchise Tax Board for tax years 1994 – 2006 that resulted in a $65 million refund of tax and interest. This refund was received in the second quarter of 2019. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board.

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Compensation and Benefit Plans

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

Compensation and Benefit Plans

Compensation and Benefit Plans

Pension Plans

Net periodic pension expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Service cost	$	32		$	32		$	64		$	64
Non-service cost (benefit)
Interest cost	39			35			78			70
Expected return on plan assets	(52		)	(56		)	(104		)	(113		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			4			4
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(16	)	$	(29	)	$	(33	)
Total expense recognized	$	18		$	16		$	35		$	31
SCE:
Service cost	$	31		$	31		$	62		$	62
Non-service cost (benefit)
Interest cost	36			32			71			64
Expected return on plan assets	(49		)	(54		)	(98		)	(107		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			3			3
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(17	)	$	(31	)	$	(34	)
Total expense recognized	$	17		$	14		$	31		$	28

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2019, and $4 million and $3 million, respectively, for the six months ended June 30, 2019. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2018, and $4 million and $3 million, respectively, for the six months ended June 30, 2018.

² Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

Postretirement Benefits Other Than Pensions ("PBOP")

Net periodic PBOP expense components for continuing operations for Edison International and SCE are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Service cost	$	8		$	10		$	16		$	19
Non-service cost (benefit)
Interest cost	21			21			42			42
Expected return on plan assets	(28		)	(30		)	(56		)	(60		)
Amortization of prior service cost	—			(1		)	—			(1		)
Amortization of net gain	(1		)	—			(2		)	—
Regulatory adjustment	6			—			12			—
Total non-service cost benefit1	$	(2	)	$	(10	)	$	(4	)	$	(19	)
Total expense	$	6		$	—		$	12		$	—

¹ Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

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Investments

6 Months Ended

Jun. 30, 2019

Regulated Entity, Other Assets, Noncurrent [Abstract]

Investments

Investments

Nuclear Decommissioning Trusts

Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts.

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):

	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Stocks	—	*		*		$	1,611	$	1,381
Municipal bonds	2057	$	624	$	665	762		767
U.S. government and agency securities	2067	1,184		1,193		1,326		1,288
Corporate bonds	2068	621		573		693		611
Short-term investments and receivables/payables1	One-year	27		70		29		73
Total		$	2,456	$	2,501	$	4,421	$	4,120

* Equity investments are measured at fair value.

¹  Short-term investments include $14 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 1, 2019 and January 2, 2019 as of June 30, 2019 and December 31, 2018, respectively.

Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.7 billion and $1.4 billion at June 30, 2019 and December 31, 2018, respectively, and other-than-temporary impairments of $160 million and $170 million at the respective periods.

Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $383 million and $323 million at June 30, 2019 and December 31, 2018, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion and $3.8 billion at June 30, 2019 and December 31, 2018, respectively.

The following table summarizes the gains and (losses) for the trust investments:

	Three months ended June 30,					Six months ended June 30,
(in millions)	2019		2018			2019		2018
Gross realized gains	$	22	$	26		$	45	$	87
Gross realized loss	—		(2		)	—		(10		)
Net unrealized gains (losses) for equity securities	38		(5		)	206		(68		)

Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings.

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Regulatory Assets and Liabilities

6 Months Ended

Jun. 30, 2019

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Regulatory Assets

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	987	$	814
Power contracts	285		305
Other	22		14
Total current	1,294		1,133
Long-term:
Deferred income taxes, net of liabilities	3,800		3,589
Pensions and other postretirement benefits	278		271
Power contracts	561		700
Unamortized investments, net of accumulated amortization	113		118
Unamortized loss on reacquired debt	148		153
Regulatory balancing accounts	346		360
Environmental remediation	132		134
Other	91		55
Total long-term	5,469		5,380
Total regulatory assets	$	6,763	$	6,513

Regulatory Liabilities

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	728	$	1,080
Energy derivatives	24		158
2018 GRC1	—		274
Other	15		20
Total current	767		1,532
Long-term:
Cost of removal	2,737		2,769
Re-measurement of deferred taxes2	2,530		2,776
Recoveries in excess of ARO liabilities3	1,454		1,130
Regulatory balancing accounts	1,591		1,344
Other postretirement benefits	194		185
Other	179		125
Total long-term	8,685		8,329
Total regulatory liabilities	$	9,452	$	9,861

¹ During 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirement adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded regulatory liabilities associated with these adjustments. In May 2019, these regulatory liabilities were reversed due to the adoption of 2018 GRC final decision. For further information, see Note 1.

²  SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first six months of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8.

³ Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.

Net Regulatory Balancing Accounts

The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:

(in millions)	June 30, 2019			December 31, 2018
Asset (liability)
Energy resource recovery account	$	636		$	815
Portfolio allocation balancing account1	143			—
New system generation balancing account	(81		)	(74		)
Public purpose programs and energy efficiency programs	(1,285		)	(1,200		)
Tax accounting memorandum account and pole loading balancing account2	(19		)	28
Base revenue requirement balancing account3	(462		)	(628		)
DOE litigation memorandum account	(70		)	(69		)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(102		)	(81		)
FERC balancing accounts	(88		)	(180		)
Catastrophic event memorandum account	92			144
Wildfire expense memorandum account	122			128
Fire risk mitigation memorandum account4	97			—
Other	31			(133		)
Liability	$	(986	)	$	(1,250	)

¹  In May 2019, the CPUC approved a portfolio allocation balancing account to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs of all generation resources that are eligible for cost recovery.

²  The 2018 GRC final decision approved changes to expand the use of the two-way TAMA. The expanded TAMA will track revenue differences resulting from changes in income tax expense caused by net revenue changes, mandatory or elective tax law changes, tax accounting changes, tax procedural changes, or tax policy changes during the 2018 GRC period.

³ The base revenue requirement balancing account at June 30, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017.

⁴ In March 2019, the CPUC approved a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to the amount in SCE's revenue requirement.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Indemnities

Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business.

Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated.

SCE has agreed to indemnify the City of Redlands, California in connection with the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. As of June 30, 2019, there has been no groundwater contamination identified. Thus, SCE has not recorded a liability related to this indemnity.

Contingencies

In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows.

Southern California Wildfires and Mudslides

Multiple factors have contributed to increased wildfires, faster progression of wildfires and the increased damage from wildfires across SCE's service territory and throughout California. These include the buildup of dry vegetation in areas severely impacted by years of historic drought, lack of adequate clearing of hazardous fuels by responsible parties, higher temperatures, lower humidity, and strong Santa Ana winds. At the same time that wildfire risk has been increasing in Southern California, residential and commercial development has occurred and is occurring in some of the highest-risk areas. Such factors can increase the likelihood and extent of wildfires.

SCE has determined that approximately 27% of its service territory is in areas identified as high fire risk (“HFRA”). The reduction of the areas identified by SCE as HFRA from 35% to 27% of its service territory resulted from a thorough evaluation of the areas after the CPUC released its High Fire-Threat District maps in 2018.

In December 2017 and November 2018, wind-driven wildfires impacted portions of SCE's service territory, causing substantial damage to both residential and business properties and service outages for SCE customers. The investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). While the progression of these two fires remains under review, the December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE information, the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two confirmed fatalities. The largest of the November 2018 fires, known as the Woolsey Fire, originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE information, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three confirmed fatalities.

As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by mudslides and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with two additional fatalities presumed.

The extent of liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether SCE substantially caused or contributed to the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and state laws in connection with the ignition of a wildfire.

Final determinations of liability for the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (each a "2017/2018 Wildfire/Mudslide Event," and, collectively, the "2017/2018 Wildfire/Mudslide Events"), including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes. Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require a liability to be accrued under accounting standards. Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the 2017/2018 Wildfire/Mudslide Events and have accrued a liability of $4.7 billion in the

fourth quarter of 2018. In the fourth quarter of 2018, Edison International and SCE also recorded expected recoveries from insurance of $2.0 billion and expected recoveries through FERC electric rates of $135 million. The net charge to earnings recorded in the fourth quarter of 2018 was $1.8 billion after-tax. The liability that was accrued corresponds to the lower end of the reasonably estimated range of expected potential losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE will seek to offset any actual losses realized with recoveries from insurance policies in place at the time of the events and, to the extent actual losses exceed insurance, through electric rates. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not reasonably or prudently incurred. See "—Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" for additional information.

External Investigations and Internal Review

The VCFD and CAL FIRE have issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The VCFD and CAL FIRE findings do not determine legal causation of or assign legal liability for the Thomas or Koenigstein Fires; final determinations of legal causation and liability would only be made during lengthy and complex litigation. The reports did not address the causes of the Montecito Mudslides. SCE expects that the VCFD and CAL FIRE will ultimately also issue a report concerning the departments' findings of origin and cause of the Woolsey Fire but cannot predict when this report will be released. The CPUC's Safety Enforcement Division ("SED") is also conducting investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the fires. SCE cannot predict when the SED's investigations will be completed.

SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes.

Thomas Fire

On March 13, 2019, the VCFD and CAL FIRE issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that molten metal was found on the ground in that location during their investigation. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the progression of the Thomas Fire and the extent of damages that may be attributable to that fire.

Koenigstein Fire

On March 20, 2019, the VCFD and CAL FIRE issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. SCE has previously disclosed that SCE believed its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the progression of the Koenigstein Fire and the extent of damages that may be attributable to that fire.

Montecito Mudslides

SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, could have proximately caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused or contributed to by the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides.

Woolsey Fire

SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outage on SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage. Whether the November 8, 2018 outage was related to contact being made between the support wire and the electrical wire has not been determined. SCE believes that its equipment could be found to have been associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE.

Wildfire-related Litigation

Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties in the case of the Thomas and Koenigstein Fires and the Montecito Mudslides, and in Ventura and Los Angeles Counties in the case of the Woolsey Fire, allege, among other things, negligence, inverse condemnation, trespass, private nuisance, personal injury, wrongful death, and violations of the California Public Utilities and Health and Safety Codes. SCE expects to be the subject of additional lawsuits related to the 2017/2018 Wildfire/Mudslide Events. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs.

The Thomas and Koenigstein Fires and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been coordinated in the Los Angeles Superior Court. On October 4, 2018, the Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In January 2019, SCE filed a cross-complaint against certain governmental entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides.

Additionally, in July 2018 and September 2018, two separate derivative lawsuits for breach of fiduciary duties and unjust enrichment were filed in the Los Angeles Superior Court against certain current and former members of the Boards of Directors of Edison International and SCE. Edison International and SCE are identified as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants violated their fiduciary duties by causing or allowing SCE to operate in an unsafe manner in violation of relevant regulations, resulting in substantial liability and damage from the Thomas and Koenigstein Fires and the Montecito Mudslides. The July 2018 lawsuit has been dismissed at plaintiff's request.

In November 2018, a purported class action lawsuit alleging securities fraud and related claims was filed in the federal court against Edison International, SCE and certain current and former officers of Edison International and SCE. The plaintiff alleges that Edison International and SCE made false and/or misleading statements in filings with the Securities and Exchange Commission by failing to disclose that SCE had allegedly failed to maintain its electric transmission and distribution networks in compliance with safety regulations, and that those alleged safety violations led to fires that occurred in 2018, including the Woolsey Fire.

In January 2019, two separate derivative lawsuits alleging breach of fiduciary duties, securities fraud, misleading proxy statements, unjust enrichment, and related claims were filed in federal court against all current and certain former members of the Boards of Directors and certain current and former officers of Edison International and SCE. Edison International and SCE are named as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants breached their fiduciary duties and made misleading statements or allowed misleading statements to be made (i) between March 21, 2014 and August 10, 2015, with respect to certain ex parte communications between SCE and CPUC decision-makers concerning the settlement of the San Onofre Order Instituting Investigation proceeding (the "San Onofre OII") and (ii) from February 23, 2016 to the present, concerning compliance with applicable laws and regulations concerning electric system maintenance and operations related to wildfire risks. The lawsuits generally allege that these breaches of duty and misstatements led to substantial liability and damage resulting from the disclosure of SCE's ex parte communications in connection with the San Onofre OII settlement, and from the 2017/2018 Wildfire/Mudslide Events. For more information regarding the San Onofre OII, see Note 12 in the 2018 Form 10-K.

Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates

The process for estimating losses associated with wildfire litigation claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including but not limited to estimates based on currently available information and assessments, opinions regarding litigation risk, and prior experience with litigating and settling other wildfire cases. As additional information becomes available, management estimates and assumptions regarding the causes and financial impact of the 2017/2018 Wildfire/Mudslide Events may change. Such additional information is expected to become available from multiple external sources, during the course of litigation, and from SCE's ongoing internal review, including, among other things, information regarding the extent of damages that may be attributable to any fire determined to have been substantially caused by SCE's equipment, information that may be obtained from the equipment in CAL FIRE's possession, and information pertaining to fire progression, suppression activities, alleged damages and insurance claims.

As described above, the $1.8 billion after-tax liability corresponds to the lower end of the reasonably estimated range of expected losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE currently believe that it is reasonably possible that the amount of the actual loss will be greater than the amount accrued. However, Edison International and SCE are currently unable to reasonably estimate an upper end of the range of expected losses given the uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge, whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the preliminary nature of the litigation processes.

For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE has $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. SCE also had other general liability insurance coverage of approximately $450 million, but it is uncertain whether these other policies would apply to liabilities alleged to be related to the Montecito Mudslides. For the Woolsey Fire, SCE has an additional $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. At June 30, 2019, Edison International and SCE had recorded $2.0 billion for expected insurance recoveries associated with the recorded loss for the 2017/2018 Wildfire/Mudslide Events. SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. The amount of the receivable is subject to change based on additional information. Recovery of these costs is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire-related costs is SDG&E's requests for cost recovery related to 2007 wildfire activity, where FERC allowed recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that SDG&E did not meet the CPUC's prudency standard. As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in future wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a conclusion that recovery is probable. SCE will seek recovery of the CPUC portion of any uninsured wildfire-related costs through its WEMA or its Catastrophic Event Memorandum Account ("CEMA"). See "Recovery of Wildfire-Related Costs" below.

Through the operation of its FERC Formula Rate, and based upon the precedent established in SDG&E's recovery of FERC-jurisdictional wildfire-related costs, SCE believes it is probable it will recover its FERC-jurisdictional wildfire and mudslide related costs and has recorded a regulatory asset of $135 million, the FERC portion of the $4.7 billion liability accrued.

At June 30, 2019 and December 31, 2018, Edison International's and SCE's balance sheets include estimated losses (established at the lower end of the reasonably estimated range of expected losses) of $4.7 billion for the 2017/2018 Wildfire/Mudslide Events.

Current Wildfire Insurance Coverage

SCE has approximately $1.2 billion of wildfire-specific insurance coverage for events that may occur during the period June 1, 2019 through June 30, 2020, subject to up to $115 million of co-insurance and $50 million of self-insured retention, which results in net coverage of approximately $1 billion. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in additional material self-insured costs in the event of multiple wildfire occurrences during a policy period or with a single wildfire with damages in excess of the policy limits.

SCE's cost of obtaining wildfire insurance coverage has increased significantly as a result of, among other things, the number of recent and significant wildfire events throughout California and the application of inverse condemnation to investor-owned utilities. As such, SCE may not be able to obtain sufficient wildfire insurance at a reasonable cost.

Based on policies currently in effect, SCE anticipates that its wildfire insurance expense in 2019, prior to any regulatory deferrals, will total approximately $400 million. In February 2019, the CPUC approved recovery of $107 million of the costs incurred by SCE to obtain a 12-month, $300 million wildfire insurance policy in December 2017. As a result of this decision, SCE will recover these insurance premiums during 2019. As of June 30, 2019, SCE had regulatory assets of approximately $193 million related to wildfire insurance costs and believes that such amounts are probable of recovery. While SCE believes that amounts deferred are probable of recovery, there is no assurance that SCE will be allowed to recover costs that have been incurred, or costs incurred in the future for additional wildfire insurance, in electric rates.

Recovery of Wildfire-Related Costs

Pre-AB 1054 Cost Recovery

California courts have previously found investor-owned utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property damages resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement through recovery of uninsured wildfire-related costs in electric rates. However, in November 2017, the CPUC issued a decision denying SDG&E's request to include in its rates uninsured wildfire-related costs arising from several 2007 wildfires, finding that SDG&E did not meet the prudency standard because it did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In July 2018, the CPUC denied both SDG&E's application for rehearing on its cost recovery request and a joint application for rehearing filed by SCE and PG&E limited to the applicability of inverse condemnation principles in the same proceeding. Because the California Court of Appeal and the California Supreme Court both denied SDG&E's petitions for review of the CPUC's denial of SDG&E's application, SDG&E has petitioned the United States Supreme Court to conduct the same review.

Edison International and SCE continue to pursue legislative, regulatory and legal strategies to address the application of a strict liability standard to wildfire-related damages without the ability to recover resulting costs in electric rates.

2019 Wildfire Legislation

On July 12, 2019, California Assembly Bill 1054 ("AB 1054") was signed by the Governor of California and became effective immediately. The summary of the wildfire legislation below is based on SCE’s interpretation of AB 1054.

AB 1054 establishes a wildfire fund to reimburse utilities for payment of third-party damage claims arising from certain wildfires that exceed, in aggregate in a calendar year, the greater of $1 billion or the utility's insurance coverage. The wildfire fund will only be available for claims related to wildfires ignited after July 12, 2019 that are determined to have been caused by a utility by the responsible government investigatory agency.

The wildfire fund can take one of two forms, an insurance fund or a liquidity fund. SCE, PG&E and SDG&E have notified the CPUC of their commitment to the insurance fund. The insurance fund will be established if both SCE and SDG&E make their initial contributions to the fund by September 10, 2019. If either SCE or SDG&E fail to make their initial contributions by the required date, the insurance fund will not be established and the wildfire fund will be a liquidity fund. Ratepayers are expected to contribute $10.5 billion to the wildfire fund that is established through an anticipated bond offering securitized through a dedicated rate component attributable to the California Department of Water Resources.

If the insurance fund is established, the CPUC will be required to apply a new standard when assessing the prudency of a participating utility in connection with a request for recovery of wildfire costs and, if the utility has a valid safety certification, shareholder liability for disallowed wildfire costs will be subject to a cap for as long as the fund is in existence.

Further, under AB 1054, SCE is required to make certain capital investments without a return on equity, is required to file a wildfire mitigation plan every three years beginning in 2020, and can obtain an annual safety certification upon the submission of certain required safety information, including an approved wildfire mitigation plan. On July 25, 2019, SCE obtained its initial safety certification that will be valid for twelve months.

A lawsuit challenging the validity of AB 1054 was filed in federal court on July 19, 2019. Edison International and SCE are unable to predict the outcome of this lawsuit.    

Insurance Fund

The insurance fund, if it is established, is expected to be initially funded by the $10.5 billion to be contributed by ratepayers and $7.5 billion in initial contributions from PG&E, SCE and SDG&E. PG&E's participation in, and contributions to, the insurance fund is subject to it emerging from bankruptcy and meeting certain other conditions prior to June 30, 2020. If PG&E is unable to participate in the fund, the investor-owned utility initial contributions to the fund are expected to be approximately $2.7 billion. SCE, SDG&E and PG&E are also expected to make aggregate annual contributions of $3 billion to the insurance fund over a 10-year period. If PG&E is unable to participate in the fund, the investor-owned utility aggregate annual contributions to the fund are expected to be approximately $1 billion.

SCE has committed to make an initial contribution of approximately $2.4 billion, and ten annual contributions of approximately $95 million per year starting on January 1, 2020, to the insurance fund. Edison International and SCE are evaluating funding options to support SCE's initial contribution to the insurance fund and anticipate raising approximately $1.2 billion from the issuance of Edison International equity and approximately $1.2 billion from the issuance of long-term debt at SCE. SCE's contributions to the insurance fund will not be recoverable through electric rates and will be excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. SCE will also not be entitled to cost recovery for any borrowing costs incurred in connection with its contributions to the insurance fund.

Edison International and SCE are currently evaluating the accounting impact of SCE's anticipated contributions to the insurance fund, which may include a material charge to the earnings of Edison International and SCE that would not be greater than the total of SCE's anticipated contributions to the insurance fund. SCE may, as a result of incurring a material charge, be temporarily unable to obtain financing through the issuance of first mortgage bonds, in which case SCE may be required to issue subordinated or unsecured debt and, as a result, could incur increased borrowing costs relative to first mortgage bonds.

Participating investor-owned utilities will be reimbursed from the insurance fund for eligible claims, subject to the fund administrator's review, and will be required to reimburse the insurance fund for withdrawn amounts that the CPUC disallows, subject, in some instances, to the Liability Cap (as defined below). If the utility has maintained a valid safety certification and its actions or inactions that resulted in the wildfire are not found to constitute conscious or willful disregard of the rights and safety of others, the aggregate requirement to reimburse the insurance fund over a trailing three calendar year period is capped at 20% of the equity portion of the utility's transmission and distribution rate base in the year of the prudency determination ("Liability Cap"). The initial Liability Cap for SCE will be approximately $2.5 billion based on its 2019 rate base, and will be adjusted annually. SCE will not be allowed to recover borrowing costs incurred to reimburse the fund for amounts that the CPUC disallows. The insurance fund, and consequently the Liability Cap, will terminate when the administrator determines that the insurance fund has been exhausted.

AB 1054 Prudency Standard

If the insurance fund is established, AB 1054 creates a new standard that the CPUC must apply to determine whether a utility was prudent and therefore able to recover wildfire costs through the insurance fund or, if the insurance fund has been exhausted, through electric rates. The new standard, if it is established, will apply to requests for recovery of wildfire costs for wildfires ignited after July 12, 2019. Under AB 1054, prudent conduct occurs when the conduct of a utility related to the ignition was consistent with actions that a reasonable utility would have undertaken under similar circumstances, at the relevant point in time, and based on the information available at that time. Prudent conduct under the AB 1054 standard is not limited to the optimum practice, method, or act to the exclusion of others, but rather encompasses a spectrum of possible practices, methods, or acts consistent with utility system needs, the interest of the ratepayers, and the requirements of governmental agencies. AB 1054 also provides that the CPUC may determine that wildfire costs may be recoverable, in whole or in part, by taking into account factors within and outside the utility's control, including humidity, temperature, and winds. Further, utilities with a valid safety certification will be presumed to have acted prudently related to a wildfire ignition unless a party in the cost recovery proceeding creates serious doubt as to the reasonableness of the utility's conduct, at which time, the burden shifts back to the utility to prove its conduct was reasonable. If a utility does not have a valid safety certification, it will have the burden to prove, based on a preponderance of evidence, that its conduct was prudent.

Liquidity Fund

If either SCE or SDG&E fail to make their initial contributions to the wildfire fund by September 10, 2019, the wildfire fund will be a liquidity fund and is expected to be capitalized solely by the $10.5 billion ratepayer contribution to provide a line of credit to reimburse investor-owned utilities initially for the payment of eligible claims. Utilities will be required to repay amounts reimbursed by the liquidity fund after the CPUC conducts a prudency review under the prudency standard applied by the CPUC before the adoption of AB 1054 and California Senate Bill 901. Amounts repaid that the CPUC determines were prudently incurred will be recoverable thorough electric rates. SCE will not be allowed to recover borrowing costs incurred to repay the fund for amounts that the CPUC disallows.

Capital Expenditure Requirement

Under AB 1054, approximately $1.6 billion spent by SCE on wildfire risk mitigation capital expenditures cannot be included in the equity portion of SCE's rate base. SCE can apply for an irrevocable order from the CPUC to finance these capital expenditures, including through the issuance of securitized bonds, and can recover any prudently incurred financing costs. SCE expects to finance this capital requirement by issuing securitized bonds.

Requested Increases to Returns on Common Equity

In April 2019, in addition to other requested increases to its CPUC and FERC returns on common equity, SCE requested from both the CPUC and FERC an additional 6% return on common equity to compensate investors for current wildfire risk. SCE committed to seek to reduce or remove the additional returns on common equity if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform and is currently evaluating the impact of AB 1054 on its requests.

Environmental Remediation

SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring, and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain.

At June 30, 2019, SCE's recorded estimated minimum liability to remediate its 21 identified material sites (sites with a liability balance at June 30, 2019, in which the upper end of the range of the costs is at least $1 million) was $133 million, including $88 million related to San Onofre. In addition to these sites, SCE also has 15 immaterial sites with a liability balance as of June 30, 2019, for which the total minimum recorded liability was $4 million. Of the $137 million total environmental remediation liability for SCE, $132 million has been recorded as a regulatory asset. SCE expects to recover $41 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $91 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites.

The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $141 million and $7 million, respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes.

SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for each of the next five years are expected to range from $7 million to $18 million. Costs incurred for the six months ended June 30, 2019 and 2018 were $2 million and $6 million, respectively.

Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position, or cash flows. There can be no

assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates.

Nuclear Insurance

SCE is a member of NEIL, a mutual insurance company owned by entities with nuclear facilities. NEIL provides insurance for nuclear property damage, including damages caused by acts of terrorism up to specified limits, and for accidental outages for active facilities. The amount of nuclear property damage insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $50 million and $1.06 billion, respectively. If NEIL losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $52 million per year.

Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $13.9 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available through a Facility Form issued by American Nuclear Insurers ("ANI"). SCE withdrew from participation in the secondary insurance pool for San Onofre for offsite liability insurance effective January 5, 2018. Based on its ownership interests in Palo Verde, SCE could be required to pay a maximum of approximately $65 million per nuclear incident for future incidents. However, it would have to pay no more than approximately $10 million per future incident in any one year. SCE could be required to pay a maximum of approximately $255 million per nuclear incident and a maximum of $38 million per year per incident for liabilities arising from events prior to January 5, 2018, although SCE is not aware of any such events.

Spent Nuclear Fuel

Under federal law, the DOE is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period.

In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE's share $112 million) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. In April 2016, SCE, as operating agent, settled a lawsuit on behalf of the San Onofre owners against the DOE for $162 million (SCE's share $124 million, which included reimbursement for approximately $2 million in legal and other costs), to compensate for damages caused by the DOE's failure to meet its obligation to begin accepting spent nuclear fuel for the period from January 1, 2006 to December 31, 2013. In August 2018, the CPUC approved SCE's proposal to return the SCE share of the award to customers based on the amount that customers actually contributed for fuel storage costs; resulting in approximately $105.6 million of the SCE share being returned to customers and the remaining $16.6 million being returned to shareholders. Of the $105.6 million, $71.6 million was applied against the remaining San Onofre Regulatory Asset in accordance with the Revised San Onofre Settlement Agreement.

The April 2016 settlement also provided for a claim submission/audit process for expenses incurred from 2014 – 2016, where SCE may submit a claim for damages caused by the DOE failure to accept spent nuclear fuel each year, followed by a government audit and payment of the claim. This process made additional legal action to recover damages incurred in 2014 –2016 unnecessary. The first such claim covering damages for 2014 – 2015 was filed on September 30, 2016 for approximately $56 million. In February 2017, the DOE reviewed the 2014 – 2015 claim submission and reduced the original request to approximately $43 million (SCE's share was approximately $34 million). SCE accepted the DOE's determination, and the government paid the 2014 – 2015 claim under the terms of the settlement. In October 2017, SCE filed a claim covering damages for 2016 for approximately $58 million. In May 2018, the DOE approved reimbursement of approximately $45 million (SCE's share was approximately $35 million) of SCE's 2016 damages, disallowing recovery of approximately $13 million. SCE accepted the DOE's determination, and the government paid the 2016 claim under the terms of the settlement. The damages awards are subject to CPUC review as to how the amounts will be refunded among customers, shareholders, or to offset other costs.

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Leases

Leases as Lessee

SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are primarily 10 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases.

The following table summarizes SCE's lease payments for operating and finance leases as of June 30, 2019.

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2019	$	58	$	21	$	1
2020	70		33		1
2021	48		27		1
2022	48		22		2
2023	47		17		2
Thereafter	536		104		9
Total lease payments	$	807	$	224	$	16
Amount representing interest4	232		61		6
Lease liabilities	$	575	$	163	$	10

At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					(25		)
Amount representing interest					(33		)
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴  Lease payments are discounted to their present value using SCE's incremental borrowing rates.

Supplemental balance sheet information related to SCE's leases was as follows:

(in millions)	June 30, 2019
Operating leases:
Operating lease ROU assets	$	738
Current portion of operating lease liabilities	107
Operating lease liabilities	631
Total operating lease liabilities	$	738
Finance leases included in:
Utility property, plant and equipment, gross	$	14
Accumulated depreciation	(4		)
Utility property, plant and equipment, net	10
Other current liabilities	1
Other long-term liabilities	9
Total finance lease liabilities	$	10

The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:

(in millions)	Three months ended June 30, 2019		Six months ended June 30, 2019
PPA leases:
Operating lease cost	$	30	$	60
Variable lease cost	619		991
Total PPA lease cost	649		1,051
Other operating leases cost	12		23
Total lease cost	$	661	$	1,074

Other information related to leases was as follows:

(in millions, except lease term and discount rate)	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	60
Other leases	23
ROU assets obtained in exchange for lease obligations:
Other operating leases	15
Weighted average remaining lease term (in years):
Operating leases
PPA leases	15.58
Other leases	12.75
PPA Finance leases	11.92
Weighted average discount rate:
Operating leases
PPA leases	4.40		%
Other leases	3.89		%
PPA Finance leases	8.72		%

Leases as Lessor

SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the three and six months ended June 30, 2019, SCE recognized $5 million and $10 million, respectively, in lease income, which is included in operating revenue on the consolidated statements of income. At June 30, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:

(in millions)
2019	$	9
2020	15
2021	10
2022	10
2023	8
Thereafter	155
Total	$	207

Leases

Leases

Leases as Lessee

SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are primarily 10 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases.

The following table summarizes SCE's lease payments for operating and finance leases as of June 30, 2019.

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2019	$	58	$	21	$	1
2020	70		33		1
2021	48		27		1
2022	48		22		2
2023	47		17		2
Thereafter	536		104		9
Total lease payments	$	807	$	224	$	16
Amount representing interest4	232		61		6
Lease liabilities	$	575	$	163	$	10

At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					(25		)
Amount representing interest					(33		)
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴  Lease payments are discounted to their present value using SCE's incremental borrowing rates.

Supplemental balance sheet information related to SCE's leases was as follows:

(in millions)	June 30, 2019
Operating leases:
Operating lease ROU assets	$	738
Current portion of operating lease liabilities	107
Operating lease liabilities	631
Total operating lease liabilities	$	738
Finance leases included in:
Utility property, plant and equipment, gross	$	14
Accumulated depreciation	(4		)
Utility property, plant and equipment, net	10
Other current liabilities	1
Other long-term liabilities	9
Total finance lease liabilities	$	10

The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:

(in millions)	Three months ended June 30, 2019		Six months ended June 30, 2019
PPA leases:
Operating lease cost	$	30	$	60
Variable lease cost	619		991
Total PPA lease cost	649		1,051
Other operating leases cost	12		23
Total lease cost	$	661	$	1,074

Other information related to leases was as follows:

(in millions, except lease term and discount rate)	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	60
Other leases	23
ROU assets obtained in exchange for lease obligations:
Other operating leases	15
Weighted average remaining lease term (in years):
Operating leases
PPA leases	15.58
Other leases	12.75
PPA Finance leases	11.92
Weighted average discount rate:
Operating leases
PPA leases	4.40		%
Other leases	3.89		%
PPA Finance leases	8.72		%

Leases as Lessor

SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the three and six months ended June 30, 2019, SCE recognized $5 million and $10 million, respectively, in lease income, which is included in operating revenue on the consolidated statements of income. At June 30, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:

(in millions)
2019	$	9
2020	15
2021	10
2022	10
2023	8
Thereafter	155
Total	$	207

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(58	)	$	(46	)	$	(50	)	$	(43	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			2			3			4
Other2	—			—			(10		)	(5		)
Change	1			2			(7		)	(1		)
Ending Balance	$	(57	)	$	(44	)	$	(57	)	$	(44	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

²  Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

SCE's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(27	)	$	(22	)	$	(23	)	$	(19	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			1			2			3
Other2	—			—			(5		)	(5		)
Change	1			1			(3		)	(2		)
Ending Balance	$	(26	)	$	(21	)	$	(26	)	$	(21	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

² 

SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

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Other Income and Expense

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

Other Income and Expense

Other Income and Expense

Other income and expense are as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
SCE other income and expense:
Equity allowance for funds used during construction	$	32		$	22		$	49		$	44
Increase in cash surrender value of life insurance policies and life insurance benefits	9			6			18			14
Interest income	7			5			16			9
Net periodic benefit income – non-service components	16			27			35			53
Civic, political and related activities and donations	(8		)	(12		)	(21		)	(16		)
Other	—			2			(3		)	(3		)
Total SCE other income and expense	56			50			94			101
Other income and expense of Edison International Parent and Other:
Net periodic benefit costs – non-service components	—			(1		)	(2		)	(1		)
Other	(1		)	—			1			—
Total Edison International other income and expense	$	55		$	49		$	93		$	100

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Supplemental Cash Flows Information

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flows Information

Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International						SCE
	Six months ended June 30,
(in millions)	2019			2018			2019			2018
Cash payments for interest and taxes:
Interest, net of amounts capitalized	$	301		$	254		$	268		$	233
Tax refunds, net	(65		)	(93		)	(101		)	(18		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	200		$	197		$	—		$	100
Preferred and preference stock	12			12			12			12

SCE's accrued capital expenditures at June 30, 2019 and 2018 were $463 million and $412 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid.

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Related-Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

SCE purchased wildfire liability insurance with premiums of $74 million and $260 million from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, for the three month and six months ended June 30, 2019, respectively. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows:

(in millions)	June 30, 2019		December 31, 2018
Long-term insurance receivable due from affiliate	$	1,000	$	1,000
Prepaid insurance1	74		13
Current payables due to affiliate2	—		4

¹ Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.

² Reflected in "Accounts payable" on SCE's consolidated balance sheets.

The amortization expense for wildfire-related insurance was $41 million and $35 million for the three months ended June 30, 2019 and 2018 respectively, and $72 million and $71 million for the six months ended June 30, 2019 and 2018, respectively.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements.

Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2018 Form 10-K.

In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Certain prior period amounts have been conformed to the current period's presentation.

The December 31, 2018 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash equivalents include investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less.

Revenue Recognition

Revenue Recognition

Regulatory Proceedings

2018 General Rate Case

In May 2019, the CPUC approved a final decision in SCE's 2018 GRC. The final decision authorized a revenue requirement of $5.116 billion for 2018 and identified changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The final decision also disallowed certain historical spending, largely related to specific pole replacements the CPUC determined were performed prematurely.

The final decision allows a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It also allows operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the final decision results in a revenue requirement of $5.451 billion in 2019 and $5.863 billion in 2020.

The revenue requirements in the 2018 GRC final decision are retroactive to January 1, 2018. SCE recorded the prior period impact of the 2018 GRC final decision in the second quarter of 2019, including:

• An increase to earnings of $131 million from the application of the decision to revenue, depreciation expense and income tax expense. Depreciation expense decreased as a result of lower authorized depreciation rates. An increase in the authorized revenue requirement for income tax expenses offsets income tax expenses recognized during 2018 and the first quarter of 2019. The reduction of revenue of $265 million reflects $289 million of lower authorized revenue related to 2018 and $24 million of higher authorized revenue in 2019. The reduction in revenue contributes to a refund to customers of $554 million which SCE recorded as a regulatory liability as of June 30, 2019. SCE expects to refund these amounts to customers through December 2020.

• An impairment of utility property, plant and equipment of $170 million ($123 million after-tax) related to disallowed historical capital expenditures, primarily the write-off of specific pole replacements the CPUC determined were performed prematurely.

See Note 11 for further information.

FERC Formula Rate

In October 2017, SCE filed its new formula rate with the FERC. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. In November 2018, SCE filed its 2019 annual update with the FERC with the proposed rates effective January 1, 2019, subject to settlement procedures and refund, and requested a decrease in transmission revenue requirement of $131 million, or 11% from amounts currently authorized in rates. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in 2018 and 2019 based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments.

In April 2019, SCE filed an application with the FERC to replace the formula rate associated with its transmission facilities in 2019. In the April 2019 formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its

proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4%. SCE is currently evaluating the impact of California Assembly Bill 1054 ("AB 1054") on its ROE request. See Note 12 for further information.

In June 2019, the FERC accepted the April 2019 formula rate as requested and suspended it for hearing and settlement procedures for five months. Therefore, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate on November 12, 2019. The new formula rate will be effective in November 2019 and will likely be subject to refund until it is ultimately approved by the FERC.

If the April 2019 formula rate is adopted as proposed, SCE's retail base transmission revenue requirement in 2020 is projected to increase $290 million from the currently effective retail base transmission revenue requirement of approximately $1.04 billion.

Earnings Per Share

Earnings Per Share

Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested.

New Accounting Guidance

New Accounting Guidance

Accounting Guidance Adopted

On January 1, 2019, Edison International and SCE adopted accounting standards updates that require lessees to recognize a lease on the balance sheet as a right-of-use ("ROU") asset and related lease liability and classify the lease as either operating or finance. Edison International and SCE adopted this guidance using the modified retrospective approach for leases that existed as of the adoption date and elected the optional transition method not to restate periods prior to the adoption date. Edison International and SCE also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and the practical expedient not to reassess existing land easements. Adoption of this standard increased ROU assets and lease liabilities on the consolidated balance sheets by $956 million and $951 million as of January 1, 2019 for Edison International and SCE, respectively. The standard did not materially impact the consolidated statements of income for Edison International or SCE.

Based on accounting standards adopted at January 1, 2019, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. This occurs when an entity has the right to obtain substantially all of the economic benefits from and has the right to direct the use of the identified asset. SCE determines if an arrangement is a lease at contract inception, and for all classes of assets, SCE includes both lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. Lease ROU assets are based on the liability, subject to adjustments, such as lease incentives. In measuring lease assets and liabilities, SCE excludes variable lease payments, other than those that depend on an index, a rate or are in substance fixed payments. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment and other liabilities on the consolidated balance sheets. See Note 13 for further information.

In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income, while the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE adopted this guidance on January 1, 2019 and reclassified stranded tax effects of $10 million and $5 million, respectively, from accumulated other comprehensive income to retained earnings. See Notes 2 and 14 for further information.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to fair value measurement. Edison International and SCE adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on Edison International's and SCE's disclosures. See Note 4 for further information.

Accounting Guidance Not Yet Adopted

In June 2016, the FASB issued an accounting standards update to require the use of the current expected credit loss model to measure impairment of financial instruments and the use of an allowance to record estimated credit losses on available-for-sale debt securities. The guidance, as amended in November 2018 and May 2019, allows entities to irrevocably elect the fair value option for any financial instrument previously measured on an amortized costs basis. The guidance is effective January 1, 2020. Edison International and SCE are currently evaluating the impact of this new guidance.

In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment by changing the procedural steps to apply the goodwill impairment test. After the adoption of this accounting standards update, goodwill impairment will be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to goodwill impairment tests beginning in 2020.

In August 2018, the FASB issued an accounting standards update which aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance also clarified presentation requirements for reporting implementation costs in the financial statements. The guidance is effective January 1, 2020 with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance.

In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1,

2021, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance and do not expect the adoption of this standard will materially affect disclosures.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Cash Equivalents

The cash equivalents were as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Money market funds	$	219	$	116	$	—	$	1

Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows:

	Edison International				SCE
(in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Book balances reclassified to accounts payable	$	43	$	65	$	43	$	65

Cash, Cash Equivalents and Restricted Cash

The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows:

(in millions)	June 30, 2019		December 31, 2018
Edison International:
Cash and cash equivalents	$	257	$	144
Short-term restricted cash1	8		8
Total cash, cash equivalents, and restricted cash	$	265	$	152
SCE:
Cash and cash equivalents	$	26	$	21
Short-term restricted cash1	1		1
Total cash, cash equivalents, and restricted cash	$	27	$	22

¹  Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.

EPS Attributable to Edison International Common Shareholders

EPS attributable to Edison International common shareholders was computed as follows:

	Three months ended June 30,				Six months ended June 30,
(in millions, except per-share amounts)	2019		2018		2019		2018
Basic earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Basic earnings per share – continuing operations	$	1.20	$	0.85	$	2.05	$	1.52
Diluted earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$	392	$	276	$	670	$	494
Participating securities dividends	—		—		—		—
Income from continuing operations available to common shareholders	$	392	$	276	$	670	$	494
Income impact of assumed conversions	—		—		—		—
Income from continuing operations available to common shareholders and assumed conversions	$	392	$	276	$	670	$	494
Weighted average common shares outstanding	326		326		326		326
Incremental shares from assumed conversions	1		1		1		1
Adjusted weighted average shares – diluted	327		327		327		327
Diluted earnings per share – continuing operations	$	1.20	$	0.84	$	2.05	$	1.51

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Consolidated Statements of Changes in Equity (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Capitalization, Equity [Line Items]

Schedule of Changes in Equity

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2019:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Preferred and Preference Stock			Total Equity
Balance at December 31, 2018	$	2,545	$	(50	)	$	7,964		$	10,459		$	2,193		$	12,652
Net income	—		—			278			278			30			308
Other comprehensive income	—		2			—			2			—			2
Cumulative effect of accounting changes1	—		(10		)	10			—			—			—
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(18		)	(18		)	—			(18		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at March 31, 2019	$	2,550	$	(58	)	$	8,034		$	10,526		$	2,193		$	12,719
Net income	—		—			392			392			30			$	422
Other comprehensive income	—		1			—			1			—			1
Common stock dividends declared ($0.6125 per share)	—		—			(200		)	(200		)	—			(200		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			(4		)
Noncash stock-based compensation	5		—			—			5			—			5
Balance at June 30, 2019	$	2,555	$	(57	)	$	8,222		$	10,720		$	2,193		$	12,913

¹ Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards updates on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

The following table provides Edison International's changes in equity for the three and six months ended June 30, 2018:

	Equity Attributable to Common Shareholders											Noncontrolling Interests
(in millions, except per-share amounts)	Common Stock		Accumulated Other Comprehensive Loss			Retained Earnings			Subtotal			Other			Preferred and Preference Stock			Total Equity
Balance at December 31, 2017	$	2,526	$	(43	)	$	9,188		$	11,671		$	2		$	2,193		$	13,866
Net income (loss)	—		—			218			218			(3		)	30			245
Other comprehensive income	—		2			—			2			—			—			2
Cumulative effect of accounting changes1	—		(5		)	10			5			—			—			5
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(8		)	(8		)	—			—			(8		)
Noncash stock-based compensation	5		—			—			5			—			—			5
Other	—		—			—			—			1			—			1
Balance at March 31, 2018	$	2,531	$	(46	)	$	9,211		$	11,696		$	—		$	2,193		$	13,889
Net income (loss)	—		—			276			276			(8		)	30			298
Other comprehensive income	—		2			—			2			—			—			2
Contribution from tax equity investor	—		—			—			—			24			—			24
Common stock dividends declared ($0.6050 per share)	—		—			(197		)	(197		)	—			—			(197		)
Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—			—			—			—			(30		)	(30		)
Stock-based compensation	—		—			(4		)	(4		)	—			—			(4		)
Noncash stock-based compensation	6		—			—			6			—			—			6
Deconsolidation of SoCore Energy	—		—			—			—			(15		)	—			(15		)
Other	—		—			—			—			(1		)	—			(1		)
Balance at June 30, 2018	$	2,537	$	(44	)	$	9,286		$	11,779		$	—		$	2,193		$	13,972

¹  Edison International recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on revenue recognition and the measurement of financial instruments.

Southern California Edison

Schedule of Capitalization, Equity [Line Items]

Schedule of Changes in Equity

The following table provides SCE's changes in equity for the three and six months ended June 30, 2019:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2018	$	2,245	$	2,168	$	680	$	(23	)	$	8,715		$	13,785
Net income	—		—		—		—			323			323
Other comprehensive income	—		—		—		1			—			1
Cumulative effect of accounting change1	—		—		—		(5		)	5			—
Dividends declared on common stock ($0.4599 per share)	—		—		—		—			(200		)	(200		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(12		)	(12		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at March 31, 2019	$	2,245	$	2,168	$	683	$	(27	)	$	8,801		$	13,870
Net income	—		—		—		—			449			449
Other comprehensive income	—		—		—		1			—			1
Capital contribution from Edison International Parent	—		—		1,200		—			—			1,200
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(1		)	(1		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2019	$	2,245	$	2,168	$	1,886	$	(26	)	$	9,219		$	15,492

¹  SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information.

The following table provides SCE's changes in equity for the three and six months ended June 30, 2018:

(in millions, except per-share amounts)	Preferred and Preference Stock		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Total Equity
Balance at December 31, 2017	$	2,245	$	2,168	$	671	$	(19	)	$	9,607		$	14,672
Net income	—		—		—		—			316			316
Other comprehensive income	—		—		—		2			—			2
Cumulative effect of accounting change1							(5		)	5			—
Dividends declared on common stock ($0.4875 per share)	—		—		—		—			(212		)	(212		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(2		)	(2		)
Noncash stock-based compensation	—		—		2		—			—			2
Balance at March 31, 2018	$	2,245	$	2,168	$	673	$	(22	)	$	9,684		$	14,748
Net income	—		—		—		—			327			327
Other comprehensive income	—		—		—		1			—			1
Dividends declared on common stock ($0.2299 per share)	—		—		—		—			(100		)	(100		)
Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock)	—		—		—		—			(30		)	(30		)
Stock-based compensation	—		—		—		—			(3		)	(3		)
Noncash stock-based compensation	—		—		3		—			—			3
Balance at June 30, 2018	$	2,245	$	2,168	$	676	$	(21	)	$	9,878		$	14,946

¹ 

SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments.

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Southern California Edison

Variable Interest Entity

Summary of Trusts' Income Statements

The following table provides a summary of the trusts' income statements:

	Three months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6
2018
Dividend income	$	5	$	4	$	5	$	4	$	6
Dividend distributions	5		4		5		4		6

	Six months ended June 30,
(in millions)	Trust II		Trust III		Trust IV		Trust V		Trust VI
2019
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12
2018
Dividend income	$	10	$	8	$	9	$	8	$	12
Dividend distributions	10		8		9		8		12

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion

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:

	June 30, 2019				December 31, 2018
(in millions)	Carrying Value1		Fair Value2		Carrying Value1		Fair Value2
Edison International	$	16,362	$	17,386	$	14,711	$	14,844
SCE	14,025		15,046		12,971		13,180

¹   Carrying value is net of debt issuance costs.

² The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2.

Southern California Edison

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value by Level

The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:

	June 30, 2019
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	3	$	63	$	(3	)	$	63
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,611		—		—		—			1,611
Fixed Income3	960		1,821		—		—			2,781
Short-term investments, primarily cash equivalents	79		21		—		—			100
Subtotal of nuclear decommissioning trusts4	2,650		1,842		—		—			4,492
Total assets	2,659		1,866		63		(3		)	4,585
Liabilities at fair value
Derivative contracts	—		34		—		(30		)	4
Total liabilities	—		34		—		(30		)	4
Net assets	$	2,659	$	1,832	$	63	$	27		$	4,581

	December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral1			Total
Assets at fair value
Derivative contracts	$	—	$	32	$	141	$	—		$	173
Other	9		21		—		—			30
Nuclear decommissioning trusts:
Stocks2	1,382		—		—		—			1,382
Fixed Income3	1,001		1,665		—		—			2,666
Short-term investments, primarily cash equivalents	120		95		—		—			215
Subtotal of nuclear decommissioning trusts4	2,503		1,760		—		—			4,263
Total assets	2,512		1,813		141		—			4,466
Liabilities at fair value
Derivative contracts	—		13		—		(7		)	6
Total liabilities	—		13		—		(7		)	6
Net assets	$	2,512	$	1,800	$	141	$	7		$	4,460

¹  Represents the netting of assets and liabilities under master netting agreements and cash collateral.

²  Approximately 71% of SCE's equity investments were in companies located in the United States at both June 30, 2019 and December 31, 2018.

³  Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities of $67 million at both June 30, 2019 and December 31, 2018.

⁴ 

Excludes net payables of $71 million and $143 million at June 30, 2019 and December 31, 2018, 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 Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities

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

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Fair value of net assets at beginning of period	$	95		$	81		$	141		$	101
Total realized/unrealized losses1	(32		)	(29		)	(78		)	(49		)
Fair value of net assets at end of period2	$	63		$	52		$	63		$	52
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$	(7	)	$	7		$	(3	)	$	7

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

² 

There were no material transfers into or out of Level 3 during 2019 and 2018.

Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities

The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities:

	Fair Value (in millions)					Significant	Range
	Assets		Liabilities		Valuation Technique(s)	Unobservable Input	(Weighted Average)
Congestion revenue rights
June 30, 2019	$	63	$	—	Auction prices	CAISO CRR auction prices	$(7.02) - $41.52 ($1.23)
December 31, 2018	141		—		Auction prices	CAISO CRR auction prices	$(7.41) - $41.52 ($1.62)

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Derivative Instruments (Tables) - Southern California Edison

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Fair Value of Derivative Asset Instruments

The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2019
	Derivative Assets								Derivative Liabilities								Net Assets
(in millions)	Short-Term			Long-Term1		Subtotal			Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	58		$	8	$	66		$	34		$	—	$	34		$	32
Gross amounts offset in the consolidated balance sheets	(3		)	—		(3		)	(3		)	—		(3		)	—
Cash collateral posted3	—			—		—			(27		)	—		(27		)	27
Net amounts presented in the consolidated balance sheets	$	55		$	8	$	63		$	4		$	—	$	4		$	59

	December 31, 2018
	Derivative Assets						Derivative Liabilities								Net Assets
(in millions)	Short-Term		Long-Term1		Subtotal		Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	171	$	2	$	173	$	13		$	—	$	13		$	160
Gross amounts offset in the consolidated balance sheets	—		—		—		—			—		—			—
Cash collateral posted	—		—		—		(7		)	—		(7		)	7
Net amounts presented in the consolidated balance sheets	$	171	$	2	$	173	$	6		$	—	$	6		$	167

¹ Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.

² Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.

³ At June 30, 2019, SCE posted $46 million of cash, of which $27 million was offset against net derivative liabilities and $19 million was reflected in "Other current assets" on the consolidated balance sheets.

Fair Value of Derivative Liabilities Instruments

The following table summarizes the gross and net fair values of SCE's commodity derivative instruments:

	June 30, 2019
	Derivative Assets								Derivative Liabilities								Net Assets
(in millions)	Short-Term			Long-Term1		Subtotal			Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	58		$	8	$	66		$	34		$	—	$	34		$	32
Gross amounts offset in the consolidated balance sheets	(3		)	—		(3		)	(3		)	—		(3		)	—
Cash collateral posted3	—			—		—			(27		)	—		(27		)	27
Net amounts presented in the consolidated balance sheets	$	55		$	8	$	63		$	4		$	—	$	4		$	59

	December 31, 2018
	Derivative Assets						Derivative Liabilities								Net Assets
(in millions)	Short-Term		Long-Term1		Subtotal		Short-Term2			Long-Term		Subtotal
Commodity derivative contracts
Gross amounts recognized	$	171	$	2	$	173	$	13		$	—	$	13		$	160
Gross amounts offset in the consolidated balance sheets	—		—		—		—			—		—			—
Cash collateral posted	—		—		—		(7		)	—		(7		)	7
Net amounts presented in the consolidated balance sheets	$	171	$	2	$	173	$	6		$	—	$	6		$	167

¹ Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets.

² Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets.

³ At June 30, 2019, SCE posted $46 million of cash, of which $27 million was offset against net derivative liabilities and $19 million was reflected in "Other current assets" on the consolidated balance sheets.

Summarization of Economic Hedging Activities

The following table summarizes the components of SCE's economic hedging activity:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Realized gains (losses)	$	(2	)	$	(8	)	$	30		$	(20	)
Unrealized losses	(78		)	(12		)	(128		)	(26		)

Notional Volumes of Derivative Instruments

The following table summarizes the notional volumes of derivatives used for SCE hedging activities:

		Economic Hedges
Commodity	Unit of Measure	June 30, 2019	December 31, 2018
Electricity options, swaps and forwards	GWh	4,750	2,786
Natural gas options, swaps and forwards	Bcf	28	20
Congestion revenue rights	GWh	30,247	54,453

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Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Summary of Revenue

The following table is a summary of SCE's revenue:

	Three months ended June 30, 2019						Three months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities		Cost-Recovery Activities		Total Consolidated
Revenues from contracts with customers1,2,3	$	1,532	$	767	$	2,299	$	1,534	$	1,146	$	2,680
Alternative revenue programs and other operating revenue4	5		496		501		1		122		123
Total operating revenue	$	1,537	$	1,263	$	2,800	$	1,535	$	1,268	$	2,803

	Six months ended June 30, 2019						Six months ended June 30, 2018
(in millions)	Earning Activities		Cost- Recovery Activities		Total Consolidated		Earning Activities			Cost-Recovery Activities			Total Consolidated
Revenues from contracts with customers1,2,3	$	3,034	$	1,724	$	4,758	$	3,070		$	2,338		$	5,408
Alternative revenue programs and other operating revenue4	53		805		858		(22		)	(29		)	(51		)
Total operating revenue	$	3,087	$	2,529	$	5,616	$	3,048		$	2,309		$	5,357

¹  In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and the three months ended March 31, 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. SCE recorded the impact of the 2018 GRC final decision in the second quarter of 2019, including a $265 million reduction in revenue. The 2018 GRC final decision results in 2018 and 2019 base rate revenue requirements of $5.116 billion and $5.451 billion, respectively. For further information, see Note 1.

²  At June 30, 2019 and December 31, 2018, SCE's receivables related to contracts from customers were $1.2 billion and $1.1 billion, respectively, which include accrued unbilled revenue of $562 million and $482 million, respectively.

³   Includes SCE's franchise fees billed to customers of $25 million and $29 million for the three months ended June 30, 2019 and 2018, respectively, and $53 million and $57 million for the six months ended June 30, 2019 and 2018, respectively.

⁴ 

Includes differences between amounts billed and authorized levels for both CPUC and FERC.

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Reconciliation of Income Tax Expense

The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Income from continuing operations before income taxes	$	344		$	289		$	540		$	500
Provision for income tax at federal statutory rate of 21%	72			61			113			105
Increase in income tax from:
State tax, net of federal benefit	2			—			(5		)	(5		)
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	2			(1		)	(4		)	(2		)
Total income tax benefit from continuing operations	$	(78	)	$	(9	)	$	(190	)	$	(40	)
Effective tax rate	(22.7		)%	(3.1		)%	(35.2		)%	(8.0		)%
SCE:
Income from continuing operations before income taxes	$	381		$	325		$	599		$	635
Provision for income tax at federal statutory rate of 21%	80			68			126			133
Increase in income tax from:
State tax, net of federal benefit	3			3			(2		)	4
Property-related	(74		)	(69		)	(143		)	(138		)
Shared-based compensation	—			—			(2		)	—
2018 GRC Final Decision	(80		)	—			(80		)	—
Deferred tax re-measurement1	—			—			(69		)	—
Other	3			(4		)	(3		)	(7		)
Total income tax benefit from continuing operations	$	(68	)	$	(2	)	$	(173	)	$	(8	)
Effective tax rate	(17.8		)%	(0.6		)%	(28.9		)%	(1.3		)%

¹ Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders.

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Compensation and Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2019

Pension Plans

Defined Benefit Plan Disclosure [Line Items]

Expense Components for Plans

Net periodic pension expense components for continuing operations are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Edison International:
Service cost	$	32		$	32		$	64		$	64
Non-service cost (benefit)
Interest cost	39			35			78			70
Expected return on plan assets	(52		)	(56		)	(104		)	(113		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			4			4
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(16	)	$	(29	)	$	(33	)
Total expense recognized	$	18		$	16		$	35		$	31
SCE:
Service cost	$	31		$	31		$	62		$	62
Non-service cost (benefit)
Interest cost	36			32			71			64
Expected return on plan assets	(49		)	(54		)	(98		)	(107		)
Amortization of prior service cost	1			—			1			1
Amortization of net loss1	2			2			3			3
Regulatory adjustment	(4		)	3			(8		)	5
Total non-service benefit2	$	(14	)	$	(17	)	$	(31	)	$	(34	)
Total expense recognized	$	17		$	14		$	31		$	28

¹  Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2019, and $4 million and $3 million, respectively, for the six months ended June 30, 2019. The amount reclassified for Edison International and SCE was $2 million and $2 million, respectively, for the three months ended June 30, 2018, and $4 million and $3 million, respectively, for the six months ended June 30, 2018.

² Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

PBOP Plan

Defined Benefit Plan Disclosure [Line Items]

Expense Components for Plans

Net periodic PBOP expense components for continuing operations for Edison International and SCE are:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Service cost	$	8		$	10		$	16		$	19
Non-service cost (benefit)
Interest cost	21			21			42			42
Expected return on plan assets	(28		)	(30		)	(56		)	(60		)
Amortization of prior service cost	—			(1		)	—			(1		)
Amortization of net gain	(1		)	—			(2		)	—
Regulatory adjustment	6			—			12			—
Total non-service cost benefit1	$	(2	)	$	(10	)	$	(4	)	$	(19	)
Total expense	$	6		$	—		$	12		$	—

¹ Included in "Other income and expense" on Edison International's and SCE's consolidated statement of income.

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Investments (Tables)

6 Months Ended

Jun. 30, 2019

Investment [Line Items]

Gains and (Losses) for Equity Securities

The following table summarizes the gains and (losses) for the trust investments:

	Three months ended June 30,					Six months ended June 30,
(in millions)	2019		2018			2019		2018
Gross realized gains	$	22	$	26		$	45	$	87
Gross realized loss	—		(2		)	—		(10		)
Net unrealized gains (losses) for equity securities	38		(5		)	206		(68		)

Southern California Edison

Investment [Line Items]

Amortized Cost and Fair Value of the Trust Investments

The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments):

	Longest Maturity Dates	Amortized Cost				Fair Value
(in millions)		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Stocks	—	*		*		$	1,611	$	1,381
Municipal bonds	2057	$	624	$	665	762		767
U.S. government and agency securities	2067	1,184		1,193		1,326		1,288
Corporate bonds	2068	621		573		693		611
Short-term investments and receivables/payables1	One-year	27		70		29		73
Total		$	2,456	$	2,501	$	4,421	$	4,120

* Equity investments are measured at fair value.

¹  Short-term investments include $14 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 1, 2019 and January 2, 2019 as of June 30, 2019 and December 31, 2018, respectively.

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Regulatory Assets and Liabilities (Tables) - Southern California Edison

6 Months Ended

Jun. 30, 2019

Regulatory Assets [Line Items]

Regulatory Assets Included on the Consolidated Balance Sheets

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	987	$	814
Power contracts	285		305
Other	22		14
Total current	1,294		1,133
Long-term:
Deferred income taxes, net of liabilities	3,800		3,589
Pensions and other postretirement benefits	278		271
Power contracts	561		700
Unamortized investments, net of accumulated amortization	113		118
Unamortized loss on reacquired debt	148		153
Regulatory balancing accounts	346		360
Environmental remediation	132		134
Other	91		55
Total long-term	5,469		5,380
Total regulatory assets	$	6,763	$	6,513

Regulatory Liabilities Included on the Consolidated Balance Sheets

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

(in millions)	June 30, 2019		December 31, 2018
Current:
Regulatory balancing accounts	$	728	$	1,080
Energy derivatives	24		158
2018 GRC1	—		274
Other	15		20
Total current	767		1,532
Long-term:
Cost of removal	2,737		2,769
Re-measurement of deferred taxes2	2,530		2,776
Recoveries in excess of ARO liabilities3	1,454		1,130
Regulatory balancing accounts	1,591		1,344
Other postretirement benefits	194		185
Other	179		125
Total long-term	8,685		8,329
Total regulatory liabilities	$	9,452	$	9,861

¹ During 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirement adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded regulatory liabilities associated with these adjustments. In May 2019, these regulatory liabilities were reversed due to the adoption of 2018 GRC final decision. For further information, see Note 1.

²  SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first six months of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8.

Schedule of Net Regulatory Balancing Accounts

The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities:

(in millions)	June 30, 2019			December 31, 2018
Asset (liability)
Energy resource recovery account	$	636		$	815
Portfolio allocation balancing account1	143			—
New system generation balancing account	(81		)	(74		)
Public purpose programs and energy efficiency programs	(1,285		)	(1,200		)
Tax accounting memorandum account and pole loading balancing account2	(19		)	28
Base revenue requirement balancing account3	(462		)	(628		)
DOE litigation memorandum account	(70		)	(69		)
Greenhouse gas auction revenue and low carbon fuel standard revenue	(102		)	(81		)
FERC balancing accounts	(88		)	(180		)
Catastrophic event memorandum account	92			144
Wildfire expense memorandum account	122			128
Fire risk mitigation memorandum account4	97			—
Other	31			(133		)
Liability	$	(986	)	$	(1,250	)

¹  In May 2019, the CPUC approved a portfolio allocation balancing account to determine and pro-ratably recover from responsible bundled service and departing load customers the “above-market” costs of all generation resources that are eligible for cost recovery.

²  The 2018 GRC final decision approved changes to expand the use of the two-way TAMA. The expanded TAMA will track revenue differences resulting from changes in income tax expense caused by net revenue changes, mandatory or elective tax law changes, tax accounting changes, tax procedural changes, or tax policy changes during the 2018 GRC period.

³ The base revenue requirement balancing account at June 30, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017.

⁴ In March 2019, the CPUC approved a fire risk mitigation memorandum account to track costs related to the reduction of fire risk that are incremental to the amount in SCE's revenue requirement.

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Summary of Finance Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of June 30, 2019.

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2019	$	58	$	21	$	1
2020	70		33		1
2021	48		27		1
2022	48		22		2
2023	47		17		2
Thereafter	536		104		9
Total lease payments	$	807	$	224	$	16
Amount representing interest4	232		61		6
Lease liabilities	$	575	$	163	$	10

Summary of Operating Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of June 30, 2019.

(in millions)	PPA Operating Leases1,2		Other Operating Leases3		PPA Finance Leases1
2019	$	58	$	21	$	1
2020	70		33		1
2021	48		27		1
2022	48		22		2
2023	47		17		2
Thereafter	536		104		9
Total lease payments	$	807	$	224	$	16
Amount representing interest4	232		61		6
Lease liabilities	$	575	$	163	$	10

Summary of Capital Lease Payments

At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					(25		)
Amount representing interest					(33		)
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴  Lease payments are discounted to their present value using SCE's incremental borrowing rates.

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Summary of Operating Lease Payments

At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows:

(in millions)	PPA Operating Leases1		Other Operating Leases3		PPA Capital Leases1
2019	$	148	$	42	$	5
2020	124		31		6
2021	103		27		6
2022	79		22		6
2023	47		17		5
Thereafter	536		101		66
Total lease payments	$	1,037	$	240	$	94
Amount representing executory costs					(25		)
Amount representing interest					(33		)
Net commitments					$	36

¹  Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.

²  During the second quarter of 2019, SCE amended three power contracts that resulted in a $161 million reduction in ROU assets and lease liabilities as these contracts no longer qualify as leases.

³  Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.

⁴ 

Lease payments are discounted to their present value using SCE's incremental borrowing rates.

Supplemental Balance Sheet Information

Supplemental balance sheet information related to SCE's leases was as follows:

(in millions)	June 30, 2019
Operating leases:
Operating lease ROU assets	$	738
Current portion of operating lease liabilities	107
Operating lease liabilities	631
Total operating lease liabilities	$	738
Finance leases included in:
Utility property, plant and equipment, gross	$	14
Accumulated depreciation	(4		)
Utility property, plant and equipment, net	10
Other current liabilities	1
Other long-term liabilities	9
Total finance lease liabilities	$	10

Summary of Lease Expense Components

The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:

(in millions)	Three months ended June 30, 2019		Six months ended June 30, 2019
PPA leases:
Operating lease cost	$	30	$	60
Variable lease cost	619		991
Total PPA lease cost	649		1,051
Other operating leases cost	12		23
Total lease cost	$	661	$	1,074

Other information related to leases was as follows:

(in millions, except lease term and discount rate)	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	60
Other leases	23
ROU assets obtained in exchange for lease obligations:
Other operating leases	15
Weighted average remaining lease term (in years):
Operating leases
PPA leases	15.58
Other leases	12.75
PPA Finance leases	11.92
Weighted average discount rate:
Operating leases
PPA leases	4.40		%
Other leases	3.89		%
PPA Finance leases	8.72		%

Schedule of Undiscounted Cash Flow Expected from Lease Payments

At June 30, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:

(in millions)
2019	$	9
2020	15
2021	10
2022	10
2023	8
Thereafter	155
Total	$	207

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

Edison International's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(58	)	$	(46	)	$	(50	)	$	(43	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			2			3			4
Other2	—			—			(10		)	(5		)
Change	1			2			(7		)	(1		)
Ending Balance	$	(57	)	$	(44	)	$	(57	)	$	(44	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

²  Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

SCE's accumulated other comprehensive loss, net of tax, consist of:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
Beginning balance	$	(27	)	$	(22	)	$	(23	)	$	(19	)
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1			1			2			3
Other2	—			—			(5		)	(5		)
Change	1			1			(3		)	(2		)
Ending Balance	$	(26	)	$	(21	)	$	(26	)	$	(21	)

¹  These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.

² 

SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects.

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Other Income and Expense (Tables)

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

Other Income and Expense

Other income and expense are as follows:

	Three months ended June 30,						Six months ended June 30,
(in millions)	2019			2018			2019			2018
SCE other income and expense:
Equity allowance for funds used during construction	$	32		$	22		$	49		$	44
Increase in cash surrender value of life insurance policies and life insurance benefits	9			6			18			14
Interest income	7			5			16			9
Net periodic benefit income – non-service components	16			27			35			53
Civic, political and related activities and donations	(8		)	(12		)	(21		)	(16		)
Other	—			2			(3		)	(3		)
Total SCE other income and expense	56			50			94			101
Other income and expense of Edison International Parent and Other:
Net periodic benefit costs – non-service components	—			(1		)	(2		)	(1		)
Other	(1		)	—			1			—
Total Edison International other income and expense	$	55		$	49		$	93		$	100

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Supplemental Cash Flows Information (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flows Information

Supplemental cash flows information for continuing operations is:

	Edison International						SCE
	Six months ended June 30,
(in millions)	2019			2018			2019			2018
Cash payments for interest and taxes:
Interest, net of amounts capitalized	$	301		$	254		$	268		$	233
Tax refunds, net	(65		)	(93		)	(101		)	(18		)
Non-cash financing and investing activities:
Dividends declared but not paid:
Common stock	$	200		$	197		$	—		$	100
Preferred and preference stock	12			12			12			12

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Related-Party Transactions (Tables)

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Schedule of Related-Party Transactions

The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows:

(in millions)	June 30, 2019		December 31, 2018
Long-term insurance receivable due from affiliate	$	1,000	$	1,000
Prepaid insurance1	74		13
Current payables due to affiliate2	—		4

¹ Reflected in "Prepaid expenses" on SCE's consolidated balance sheets.

² Reflected in "Accounts payable" on SCE's consolidated balance sheets.

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Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands	6 Months Ended
	Jun. 30, 2019 mi²
Southern California Edison | Electric Utility
Segment Reporting Information [Line Items]
Supply of electricity, area covered (square mile)	50

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Summary of Significant Accounting Policies (Cash Equivalents) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Restricted Cash and Cash Equivalents Items [Line Items]
Money market funds	$ 219	$ 116
Book balances reclassified to accounts payable	43	65
Southern California Edison
Restricted Cash and Cash Equivalents Items [Line Items]
Money market funds	0	1
Book balances reclassified to accounts payable	$ 43	$ 65

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Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	$ 257	$ 144
Short-term restricted cash	8	8
Total cash, cash equivalents, and restricted cash	265	152	$ 107	$ 1,132
Southern California Edison
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	26	21
Short-term restricted cash	1	1
Total cash, cash equivalents, and restricted cash	$ 27	$ 22	$ 26	$ 515

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Summary of Significant Accounting Policies (Regulatory Proceedings) (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended
	May 31, 2019	Apr. 30, 2019	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
CPUC | 2018 GRC
Public Utilities, General Disclosures [Line Items]
Approved decision escalate capital additions, year two, percent	2.49%
Southern California Edison
Public Utilities, General Disclosures [Line Items]
Increase (decrease) in revenue requirement				$ 290
Current effective retail base transmission revenue requirement				1,040
Southern California Edison | CPUC
Public Utilities, General Disclosures [Line Items]
Additional ROE		6.00%
Southern California Edison | CPUC | 2018 GRC
Public Utilities, General Disclosures [Line Items]
Approved revenue requirement year one	$ 5,451
Approved decision escalate capital additions, year one, percent	2.49%
Approved revenue requirement year two	$ 5,863
Impact of decision non-core impairment of utility core earnings, net of tax			$ 131
Reduction in revenue			(265)
Reduction in authorized revenue	$ 5,116		(289)
Increase in approved revenue			24
Refund to customers			554
Impact of decision non-core impairment of utility property, plant and equipment			170
Impact of decision non-core impairment of utility property, plant and equipment, net of tax			$ 123
Southern California Edison | FERC
Public Utilities, General Disclosures [Line Items]
Increase (decrease) in revenue requirement				$ (131)
Decrease in revenue requirement percent				11.00%
FERC Base ROE		17.12%			10.30%
Conventional ROE		11.12%
Additional ROE		6.00%
Southern California Edison | CAISO
Public Utilities, General Disclosures [Line Items]
Additional ROE		0.50%
Southern California Edison | FERC and CAISO
Public Utilities, General Disclosures [Line Items]
FERC Base ROE		18.40%

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Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Basic earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$ 392	$ 276	$ 670	$ 494
Participating securities dividends	0	0	0	0
Income from continuing operations available to common shareholders	$ 392	$ 276	$ 670	$ 494
Weighted average common shares outstanding (in shares)	326,000,000	326,000,000	326,000,000	326,000,000
Basic earnings per share - continuing operations (in dollars per share)	$ 1.20	$ 0.85	$ 2.05	$ 1.52
Diluted earnings per share – continuing operations:
Income from continuing operations attributable to common shareholders	$ 392	$ 276	$ 670	$ 494
Participating securities dividends	0	0	0	0
Income from continuing operations available to common shareholders	392	276	670	494
Income impact of assumed conversions	0	0	0	0
Income from continuing operations available to common shareholders and assumed conversions	$ 392	$ 276	$ 670	$ 494
Weighted average common shares outstanding (in shares)	326,000,000	326,000,000	326,000,000	326,000,000
Incremental shares from assumed conversions (in shares)	1,000,000	1,000,000	1,000,000	1,000,000
Adjusted weighted average shares - diluted (in shares)	327,000,000	327,000,000	327,000,000	327,000,000
Diluted earnings per share - continuing operations (in dollars per share)	$ 1.20	$ 0.84	$ 2.05	$ 1.51
Stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares)	7,426,319	6,223,964	7,435,580	6,223,964

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Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - USD ($) $ in Millions	Jan. 01, 2019	Jun. 30, 2019	Jan. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
ROU assets		$ 742
Southern California Edison
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
ROU assets		738
ROU lease liability		$ 738
ASU 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
ROU assets	$ 956
ROU lease liability			$ 956
ASU 2016-02 | Southern California Edison
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
ROU assets	951
ROU lease liability			$ 951
ASU 2018-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Reclassification of stranded tax effects	10
ASU 2018-02 | Southern California Edison
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Reclassification of stranded tax effects	$ 5

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Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	$ 12,719	$ 12,652	$ 13,889	$ 13,866	$ 12,652	$ 13,866
Net income	422	308	298	245
Net income	422		298		730	540
Other comprehensive income	1	2	2	2
Contribution from tax equity investor			24
Cumulative effect of accounting changes							$ 0	$ 5
Common stock dividends declared	(200)	(200)	(197)	(197)
Dividends to noncontrolling interests	(30)	(30)	(30)	(30)
Stock-based compensation	(4)	(18)	(4)	(8)
Noncash stock-based compensation	5	5	6	5
Deconsolidation of SoCore Energy			(15)
Other			(1)	1
Balance, at the end of the period	$ 12,913	$ 12,719	$ 13,972	$ 13,889	12,913	13,972
Dividends declared per common share (in dollars per share)	$ 0.6125	$ 0.6125	$ 0.6050	$ 0.6050
Minimum
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock dividends (in dollars per share)	0.255	0.255	0.255	0.255
Preference stock dividends (in dollars per share)	15.625	15.625	15.625	15.625
Maximum
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock dividends (in dollars per share)	0.299	0.299	0.299	0.299
Preference stock dividends (in dollars per share)	$ 35.936	$ 35.936	$ 35.936	$ 35.936
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	$ 2,550	$ 2,545	$ 2,531	$ 2,526	2,545	2,526
Noncash stock-based compensation	5	5	6	5
Balance, at the end of the period	2,555	2,550	2,537	2,531	2,555	2,537
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	(58)	(50)	(46)	(43)	(50)	(43)
Other comprehensive income	1	2	2	2
Cumulative effect of accounting changes							(10)	(5)
Balance, at the end of the period	(57)	(58)	(44)	(46)	(57)	(44)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	8,034	7,964	9,211	9,188	7,964	9,188
Net income	392	278	276	218
Cumulative effect of accounting changes							10	10
Common stock dividends declared	(200)	(200)	(197)	(197)
Stock-based compensation	(4)	(18)	(4)	(8)
Balance, at the end of the period	8,222	8,034	9,286	9,211	8,222	9,286
Subtotal
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	10,526	10,459	11,696	11,671	10,459	11,671
Net income	392	278	276	218
Other comprehensive income	1	2	2	2
Cumulative effect of accounting changes								5
Common stock dividends declared	(200)	(200)	(197)	(197)
Stock-based compensation	(4)	(18)	(4)	(8)
Noncash stock-based compensation	5	5	6	5
Balance, at the end of the period	10,720	10,526	11,779	11,696	10,720	11,779
Noncontrolling Interests, Other
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period			0	2		2
Net income			(8)	(3)
Contribution from tax equity investor			24
Deconsolidation of SoCore Energy			(15)
Other			(1)	1
Balance, at the end of the period			0	0		0
Noncontrolling Interests, Preferred and Preference Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	2,193	2,193	2,193	2,193	2,193	2,193
Net income	30	30	30	30
Dividends to noncontrolling interests	(30)	(30)	(30)	(30)
Balance, at the end of the period	2,193	2,193	2,193	2,193	2,193	2,193
Southern California Edison
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	13,870	13,785	14,748	14,672	13,785	14,672
Net income	449	323	327	316	772	643
Other comprehensive income	1	1	1	2
Capital contribution from Edison International Parent					1,200
Cumulative effect of accounting changes							0	0
Common stock dividends declared		(200)	(100)	(212)
Dividends declared on preferred and preference stock	(30)	(30)	(30)	(30)
Stock-based compensation	(1)	(12)	(3)	(2)
Noncash stock-based compensation	3	3	3	2
Balance, at the end of the period	$ 15,492	$ 13,870	$ 14,946	$ 14,748	15,492	14,946
Dividends declared per common share (in dollars per share)		$ 0.4599	$ 0.2299	$ 0.4875
Southern California Edison | Minimum
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock dividends (in dollars per share)	$ 0.255	0.255	0.255	0.255
Preference stock dividends (in dollars per share)	15.625	15.625	15.625	15.625
Southern California Edison | Maximum
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock dividends (in dollars per share)	0.299	0.299	0.299	0.299
Preference stock dividends (in dollars per share)	$ 35.936	$ 35.936	$ 35.936	$ 35.936
Southern California Edison | Preferred and Preference Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	$ 2,245	$ 2,245	$ 2,245	$ 2,245	2,245	2,245
Balance, at the end of the period	2,245	2,245	2,245	2,245	2,245	2,245
Southern California Edison | Common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	2,168	2,168	2,168	2,168	2,168	2,168
Balance, at the end of the period	2,168	2,168	2,168	2,168	2,168	2,168
Southern California Edison | Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	683	680	673	671	680	671
Capital contribution from Edison International Parent					1,200
Noncash stock-based compensation	3	3	3	2
Balance, at the end of the period	1,886	683	676	673	1,886	676
Southern California Edison | Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	(27)	(23)	(22)	(19)	(23)	(19)
Other comprehensive income	1	1	1	2
Cumulative effect of accounting changes							(5)	(5)
Balance, at the end of the period	(26)	(27)	(21)	(22)	(26)	(21)
Southern California Edison | Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, at the beginning of the period	8,801	8,715	9,684	9,607	8,715	9,607
Net income	449	323	327	316
Cumulative effect of accounting changes							$ 5	$ 5
Common stock dividends declared		(200)	(100)	(212)
Dividends declared on preferred and preference stock	(30)	(30)	(30)	(30)
Stock-based compensation	(1)	(12)	(3)	(2)
Noncash stock-based compensation					0
Balance, at the end of the period	$ 9,219	$ 8,801	$ 9,878	$ 9,684	$ 9,219	$ 9,878

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Variable Interest Entities (Textual) (Details) - Southern California Edison - VIE	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019 USD ($) MW	Jun. 30, 2018 USD ($) MW	Jun. 30, 2019 USD ($) MW	Jun. 30, 2018 USD ($) MW	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Dec. 31, 2014 USD ($) $ / shares	Dec. 31, 2013 USD ($) $ / shares	Dec. 31, 2018 USD ($)
SCE Power Purchase Contracts
Variable Interest Entity
Power generating capacity (in megawatts) | MW	4,874	3,575	4,874	3,575
Payments to unconsolidated VIEs for power purchase contracts	$ 122,000,000	$ 99,000,000	$ 275,000,000	$ 239,000,000
Trust II
Variable Interest Entity
Common stock	10,000		10,000						$ 10,000	$ 10,000
Trust II | Trust Securities
Variable Interest Entity
Security dividend rate									5.10%
Liquidation preference	400,000,000		400,000,000						$ 400,000,000	400,000,000
Liquidation value (in dollars per share) | $ / shares									$ 25
Common stock									$ 10,000
Redemption of trust securities			10,000
Trust II | Series G Preferred Stock
Variable Interest Entity
Security dividend rate									5.10%
Liquidation preference	400,000,000		400,000,000						$ 400,000,000	400,000,000
Liquidation value (in dollars per share) | $ / shares									$ 2,500
Trust III
Variable Interest Entity
Common stock	10,000		10,000					$ 10,000		10,000
Trust III | Trust Securities
Variable Interest Entity
Security dividend rate								5.75%
Liquidation preference	275,000,000		275,000,000					$ 275,000,000		275,000,000
Liquidation value (in dollars per share) | $ / shares								$ 25
Trust III | Series H Preferred Stock
Variable Interest Entity
Security dividend rate								5.75%
Liquidation preference	275,000,000		275,000,000					$ 275,000,000		275,000,000
Liquidation value (in dollars per share) | $ / shares								$ 2,500
Trust IV
Variable Interest Entity
Common stock	10,000		10,000				$ 10,000			10,000
Trust IV | Trust Securities
Variable Interest Entity
Security dividend rate							5.375%
Liquidation preference	325,000,000		325,000,000				$ 325,000,000			325,000,000
Liquidation value (in dollars per share) | $ / shares							$ 25
Trust IV | Series J Preferred Stock
Variable Interest Entity
Security dividend rate							5.375%
Liquidation preference	325,000,000		325,000,000				$ 325,000,000			325,000,000
Liquidation value (in dollars per share) | $ / shares							$ 2,500
Trust V
Variable Interest Entity
Common stock	10,000		10,000			$ 10,000				10,000
Trust V | Trust Securities
Variable Interest Entity
Security dividend rate						5.45%
Liquidation preference	300,000,000		300,000,000			$ 300,000,000				300,000,000
Liquidation value (in dollars per share) | $ / shares						$ 25
Trust V | Series K Preferred Stock
Variable Interest Entity
Security dividend rate						5.45%
Liquidation preference	300,000,000		300,000,000			$ 300,000,000				300,000,000
Liquidation value (in dollars per share) | $ / shares						$ 2,500
Trust VI
Variable Interest Entity
Common stock	10,000		10,000		$ 10,000					10,000
Trust VI | Trust Securities
Variable Interest Entity
Security dividend rate					5.00%
Liquidation preference	475,000,000		475,000,000		$ 475,000,000					475,000,000
Liquidation value (in dollars per share) | $ / shares					$ 25
Trust VI | Series L Preferred Stock
Variable Interest Entity
Security dividend rate					5.00%
Liquidation preference	$ 475,000,000		$ 475,000,000		$ 475,000,000					$ 475,000,000
Liquidation value (in dollars per share) | $ / shares					$ 2,500

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Variable Interest Entities (Summary of Trusts' Income Statement) (Details) - VIE - Southern California Edison - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Trust II
Variable Interest Entity
Dividend income	$ 5	$ 5	$ 10	$ 10
Dividend distributions	5	5	10	10
Trust III
Variable Interest Entity
Dividend income	4	4	8	8
Dividend distributions	4	4	8	8
Trust IV
Variable Interest Entity
Dividend income	5	5	9	9
Dividend distributions	5	5	9	9
Trust V
Variable Interest Entity
Dividend income	4	4	8	8
Dividend distributions	4	4	8	8
Trust VI
Variable Interest Entity
Dividend income	6	6	12	12
Dividend distributions	$ 6	$ 6	$ 12	$ 12

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Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Assets at fair value
Nuclear decommissioning trusts	$ 4,421	$ 4,120
Southern California Edison
Assets at fair value
Nuclear decommissioning trusts	$ 4,421	$ 4,120
Liabilities at fair value
Percentage of equity investments located in the United States	71.00%	71.00%
Collateralized mortgage obligations and other asset backed securities	$ 67	$ 67
Payables, net, related to investments	71	143
Southern California Edison | Fair Value, Measurements, Recurring
Assets at fair value
Netting and Collateral	(3)	0
Derivative contracts, net	63	173
Other	30	30
Nuclear decommissioning trusts	4,492	4,263
Total assets	4,585	4,466
Liabilities at fair value
Netting and Collateral	(30)	(7)
Derivative contracts	4	6
Total liabilities	4	6
Total assets, netting and collateral	27	7
Net assets	4,581	4,460
Southern California Edison | Fair Value, Measurements, Recurring | Stocks
Assets at fair value
Nuclear decommissioning trusts	1,611	1,382
Southern California Edison | Fair Value, Measurements, Recurring | Fixed Income
Assets at fair value
Nuclear decommissioning trusts	2,781	2,666
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents
Assets at fair value
Nuclear decommissioning trusts	100	215
Southern California Edison | Fair Value, Measurements, Recurring | Level 1
Assets at fair value
Derivative contracts	0	0
Other	9	9
Nuclear decommissioning trusts	2,650	2,503
Total assets	2,659	2,512
Liabilities at fair value
Derivative contracts	0	0
Total liabilities	0	0
Net assets	2,659	2,512
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks
Assets at fair value
Nuclear decommissioning trusts	1,611	1,382
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed Income
Assets at fair value
Nuclear decommissioning trusts	960	1,001
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents
Assets at fair value
Nuclear decommissioning trusts	79	120
Southern California Edison | Fair Value, Measurements, Recurring | Level 2
Assets at fair value
Derivative contracts	3	32
Other	21	21
Nuclear decommissioning trusts	1,842	1,760
Total assets	1,866	1,813
Liabilities at fair value
Derivative contracts	34	13
Total liabilities	34	13
Net assets	1,832	1,800
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Stocks
Assets at fair value
Nuclear decommissioning trusts	0	0
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Fixed Income
Assets at fair value
Nuclear decommissioning trusts	1,821	1,665
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents
Assets at fair value
Nuclear decommissioning trusts	21	95
Southern California Edison | Fair Value, Measurements, Recurring | Level 3
Assets at fair value
Derivative contracts	63	141
Other	0	0
Nuclear decommissioning trusts	0	0
Total assets	63	141
Liabilities at fair value
Derivative contracts	0	0
Total liabilities	0	0
Net assets	63	141
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks
Assets at fair value
Nuclear decommissioning trusts	0	0
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Fixed Income
Assets at fair value
Nuclear decommissioning trusts	0	0
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents
Assets at fair value
Nuclear decommissioning trusts	$ 0	$ 0

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Fair Value Measurements (Textual) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 219	$ 116
Edison International Parent and Other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 219	$ 115

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Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - Level 3 - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fair Value Disclosures Level 3 [Roll Forward]
Fair value of net assets at beginning of period	$ 95	$ 81	$ 141	$ 101
Total realized/unrealized losses	(32)	(29)	(78)	(49)
Fair value of net assets (liabilities) at end of period	63	52	63	52
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period	$ (7)	$ 7	$ (3)	$ 7

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Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Southern California Edison - Level 3 - Congestion revenue rights - Auction prices $ in Millions	Jun. 30, 2019 USD ($) $ / MWh	Dec. 31, 2018 USD ($) $ / MWh
Quantitative Information About Level 3 Measurements [Line Items]
Fair Value, Assets | $	$ 63	$ 141
Fair Value, Liabilities | $	$ 0	$ 0
CAISO CRR auction prices | Minimum
Quantitative Information About Level 3 Measurements [Line Items]
Fair value inputs, price level ($ per MWh)	(7.02)	(7.41)
CAISO CRR auction prices | Maximum
Quantitative Information About Level 3 Measurements [Line Items]
Fair value inputs, price level ($ per MWh)	41.52	41.52
CAISO CRR auction prices | Average
Quantitative Information About Level 3 Measurements [Line Items]
Fair value inputs, price level ($ per MWh)	(1.23)	(1.62)

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Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items]
Carrying Value	$ 16,362	$ 14,711
Fair Value	17,386	14,844
Southern California Edison
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items]
Carrying Value	14,025	12,971
Fair Value	$ 15,046	$ 13,180

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Debt and Equity Financing (Details)	1 Months Ended			6 Months Ended
	Jun. 30, 2019 USD ($)	Apr. 30, 2019 USD ($)	Feb. 28, 2019 USD ($)	Jun. 30, 2019 USD ($) extension	May 31, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Short-term debt	$ 1,213,000,000			$ 1,213,000,000			$ 720,000,000
ATM
Debt Instrument [Line Items]
Aggregate sales price (up to)					$ 1,500,000,000
Southern California Edison
Debt Instrument [Line Items]
Short-term debt	213,000,000			213,000,000			720,000,000
First and refunding mortgage bonds due 2029 | Southern California Edison | First and refunding mortgage bonds
Debt Instrument [Line Items]
Debt						$ 500,000,000
Stated interest rate						4.20%
First and refunding mortgage bonds due 2049 | Southern California Edison | First and refunding mortgage bonds
Debt Instrument [Line Items]
Debt						$ 600,000,000
Stated interest rate						4.875%
5.75% Senior notes due 2027 | Southern California Edison | Senior notes
Debt Instrument [Line Items]
Debt	$ 600,000,000			$ 600,000,000
Stated interest rate	5.75%			5.75%
Term Loan Agreement
Debt Instrument [Line Items]
Debt		$ 1,000,000,000.0
Variable rate basis points		0.90%
Term Loan Agreement | Southern California Edison
Debt Instrument [Line Items]
Debt		$ 750,000,000
Term Loan Agreement | Southern California Edison
Debt Instrument [Line Items]
Debt			$ 750,000,000
Term Loan Agreement | Southern California Edison | London Interbank Offered Rate
Debt Instrument [Line Items]
Variable rate basis points			0.70%
Multi-year revolving credit facility
Debt Instrument [Line Items]
Commitment	$ 1,500,000,000			$ 1,500,000,000
Number of extension options | extension				1
Short-term debt	0			$ 0			0
Multi-year revolving credit facility | Southern California Edison
Debt Instrument [Line Items]
Commitment	3,000,000,000.0			$ 3,000,000,000.0
Number of extension options | extension				1
Multi-year revolving credit facility | Southern California Edison | Commercial paper
Debt Instrument [Line Items]
Outstanding commercial paper							$ 720,000,000
Weighted average interest rate							3.23%
Multi-year revolving credit facility | Southern California Edison | Letters of credit
Debt Instrument [Line Items]
Outstanding letters of credit	209,000,000			$ 209,000,000
Letters of credit expiration period				12 months
Multi-year revolving credit facility | Southern California Edison | Commercial paper
Debt Instrument [Line Items]
Outstanding commercial paper	$ 213,000,000			$ 213,000,000
Weighted average interest rate	2.89%			2.89%
Proceeds contributed | 5.75% Senior notes due 2027 | Southern California Edison | Senior notes
Debt Instrument [Line Items]
Related party transaction amount	$ 450,000,000
Proceeds contributed | Term Loan Agreement | Southern California Edison
Debt Instrument [Line Items]
Related party transaction amount		$ 750,000,000

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Derivative Instruments (Textual) (Details) - Southern California Edison - Electric Utility - Economic Hedges - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Net fair value of all derivative liabilities with credit-risk-related contingent features	$ 4,000,000	$ 4,000,000
Posted collateral	0	$ 17,000,000
Potential amount of collateral to be posted if contingencies triggered	$ 5,000,000

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Derivative Instruments (Balance Sheet Disclosures) (Details) - Southern California Edison Company - Electric Utility - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Economic Hedges
Net Assets
Cash collateral not offset against derivative liabilities	$ 46
Other current assets | Economic Hedges
Net Assets
Cash collateral not offset against derivative liabilities	19
Commodity derivative contracts
Derivative Assets
Gross amounts recognized	66	$ 173
Gross amounts offset in the consolidated balance sheets	(3)	0
Cash collateral posted	0	0
Net amounts presented in the consolidated balance sheets	63	173
Derivative Liabilities
Gross amounts recognized	34	13
Gross amounts offset in the consolidated balance sheets	(3)	0
Cash collateral posted	(27)	(7)
Net amounts presented in the consolidated balance sheets	4	6
Net Assets
Gross amounts recognized	32	160
Gross amounts offset in the consolidated balance sheets	0	0
Cash collateral posted	27	7
Net amounts presented in the consolidated balance sheets	59	167
Commodity derivative contracts | Derivative Assets, Short-Term
Derivative Assets
Gross amounts recognized	58	171
Gross amounts offset in the consolidated balance sheets	(3)	0
Cash collateral posted	0	0
Net amounts presented in the consolidated balance sheets	55	171
Commodity derivative contracts | Derivative Assets, Long-Term
Derivative Assets
Gross amounts recognized	8	2
Gross amounts offset in the consolidated balance sheets	0	0
Cash collateral posted	0	0
Net amounts presented in the consolidated balance sheets	8	2
Commodity derivative contracts | Derivative Liability, Short-Term
Derivative Liabilities
Gross amounts recognized	34	13
Gross amounts offset in the consolidated balance sheets	(3)	0
Cash collateral posted	(27)	(7)
Net amounts presented in the consolidated balance sheets	4	6
Commodity derivative contracts | Derivative Liability, Long-Term
Derivative Liabilities
Gross amounts recognized	0	0
Gross amounts offset in the consolidated balance sheets	0	0
Cash collateral posted	0	0
Net amounts presented in the consolidated balance sheets	$ 0	$ 0

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Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - Southern California Edison - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative [Line Items]
Realized gains (losses)	$ (2)	$ (8)	$ 30	$ (20)
Unrealized losses	$ (78)	$ (12)	$ (128)	$ (26)

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Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Economic Hedges	6 Months Ended	12 Months Ended
	Jun. 30, 2019 GWh Bcfe	Dec. 31, 2018 GWh Bcfe
Electricity options, swaps and forwards (GWh)
Derivative [Line Items]
Notional volumes of derivative instruments	4,750	2,786
Natural gas options, swaps and forwards (Bcf)
Derivative [Line Items]
Notional volumes of derivative instruments | Bcfe	28	20
Congestion revenue rights (GWh)
Derivative [Line Items]
Notional volumes of derivative instruments	30,247	54,453

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Revenue (Summary of Revenue) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total operating revenue	$ 2,812	$ 2,815	$ 5,636	$ 5,379
Southern California Edison
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2,299	2,680	4,758	5,408
Alternative revenue programs and other operating revenue	501	123	858	(51)
Total operating revenue	2,800	2,803	5,616	5,357
Receivables related to contracts from customers	1,200		1,200		$ 1,100
Accrued unbilled revenues	562		562		482
Franchise fees billed to customers	25	29	53	57
Southern California Edison | CPUC | 2018 GRC
Disaggregation of Revenue [Line Items]
Total operating revenue	(265)
Southern California Edison | CPUC | 2018 base rate revenue requirement
Disaggregation of Revenue [Line Items]
Final decision					$ 5,116
Southern California Edison | CPUC | 2019 base rate revenue requirement
Disaggregation of Revenue [Line Items]
Final decision			5,451
Southern California Edison | Earning Activities
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,532	1,534	3,034	3,070
Alternative revenue programs and other operating revenue	5	1	53	(22)
Total operating revenue	1,537	1,535	3,087	3,048
Southern California Edison | Cost- Recovery Activities
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	767	1,146	1,724	2,338
Alternative revenue programs and other operating revenue	496	122	805	(29)
Total operating revenue	$ 1,263	$ 1,268	$ 2,529	$ 2,309

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Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosures [Line Items]
Income from continuing operations before income taxes	$ 344	$ 289	$ 540	$ 500
Provision for income tax at federal statutory rate of 21%	72	61	113	105
Increase in income tax from:
State tax, net of federal benefit	2	0	(5)	(5)
Property-related	(74)	(69)	(143)	(138)
Shared-based compensation	0	0	(2)	0
2018 GRC Final Decision	(80)	0	(80)	0
Deferred tax re-measurement	0	0	(69)	0
Other	2	(1)	(4)	(2)
Total income tax benefit from continuing operations	$ (78)	$ (9)	$ (190)	$ (40)
Effective tax rate	(22.70%)	(3.10%)	(35.20%)	(8.00%)
Southern California Edison
Income Tax Disclosures [Line Items]
Income from continuing operations before income taxes	$ 381	$ 325	$ 599	$ 635
Provision for income tax at federal statutory rate of 21%	80	68	126	133
Increase in income tax from:
State tax, net of federal benefit	3	3	(2)	4
Property-related	(74)	(69)	(143)	(138)
Shared-based compensation	0	0	(2)	0
2018 GRC Final Decision	(80)	0	(80)	0
Deferred tax re-measurement	0	0	(69)	0
Other	3	(4)	(3)	(7)
Total income tax benefit from continuing operations	$ (68)	$ (2)	$ (173)	$ (8)
Effective tax rate	(17.80%)	(0.60%)	(28.90%)	(1.30%)

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Income Taxes (Textual) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Examination [Line Items]
2018 GRC Final Decision	$ 80	$ 0	$ 80	$ 0
California Franchise Tax Board | Tax years 1994 to 2006
Income Tax Examination [Line Items]
IRS refund expected					$ 65
Southern California Edison
Income Tax Examination [Line Items]
2018 GRC Final Decision	$ 80	$ 0	$ 80	$ 0

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Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 32	$ 32	$ 64	$ 64
Non-service cost (benefit)
Interest cost	39	35	78	70
Expected return on plan assets	(52)	(56)	(104)	(113)
Amortization of prior service cost	1	0	1	1
Amortization of net (loss) gain	2	2	4	4
Regulatory adjustment	(4)	3	(8)	5
Total non-service cost (benefit)	(14)	(16)	(29)	(33)
Total expense recognized	18	16	35	31
Net loss reclassified	2	2	4	4
PBOP Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	8	10	16	19
Non-service cost (benefit)
Interest cost	21	21	42	42
Expected return on plan assets	(28)	(30)	(56)	(60)
Amortization of prior service cost	0	(1)	0	(1)
Amortization of net (loss) gain	(1)	0	(2)	0
Regulatory adjustment	6	0	12	0
Total non-service cost (benefit)	(2)	(10)	(4)	(19)
Total expense	6	0	12	0
Southern California Edison
Non-service cost (benefit)
Total non-service cost (benefit)	(16)	(27)	(35)	(53)
Southern California Edison | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	31	31	62	62
Non-service cost (benefit)
Interest cost	36	32	71	64
Expected return on plan assets	(49)	(54)	(98)	(107)
Amortization of prior service cost	1	0	1	1
Amortization of net (loss) gain	2	2	3	3
Regulatory adjustment	(4)	3	(8)	5
Total non-service cost (benefit)	(14)	(17)	(31)	(34)
Total expense recognized	17	14	31	28
Net loss reclassified	2	2	3	3
Southern California Edison | PBOP Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost	8	10	16	19
Non-service cost (benefit)
Interest cost	21	21	42	42
Expected return on plan assets	(28)	(30)	(56)	(60)
Amortization of prior service cost	0	(1)	0	(1)
Amortization of net (loss) gain	(1)	0	(2)	0
Regulatory adjustment	6	0	12	0
Total non-service cost (benefit)	(2)	(10)	(4)	(19)
Total expense	$ 6	$ 0	$ 12	$ 0

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Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Nuclear Decommissioning Trusts Disclosures
Fair Value	$ 4,421	$ 4,120
Southern California Edison
Nuclear Decommissioning Trusts Disclosures
Amortized Cost	2,456	2,501
Fair Value	4,421	4,120
Southern California Edison | Municipal bonds
Nuclear Decommissioning Trusts Disclosures
Amortized Cost	624	665
Southern California Edison | U.S. government and agency securities
Nuclear Decommissioning Trusts Disclosures
Amortized Cost	1,184	1,193
Southern California Edison | Corporate bonds
Nuclear Decommissioning Trusts Disclosures
Amortized Cost	621	573
Southern California Edison | Short-term investments and receivables/payables1
Nuclear Decommissioning Trusts Disclosures
Amortized Cost	27	70
Southern California Edison | Fair Value, Measurements, Recurring
Nuclear Decommissioning Trusts Disclosures
Fair Value	4,492	4,263
Southern California Edison | Fair Value, Measurements, Recurring | Stocks
Nuclear Decommissioning Trusts Disclosures
Fair Value	1,611	1,381
Southern California Edison | Fair Value, Measurements, Recurring | Municipal bonds
Nuclear Decommissioning Trusts Disclosures
Fair Value	762	767
Southern California Edison | Fair Value, Measurements, Recurring | U.S. government and agency securities
Nuclear Decommissioning Trusts Disclosures
Fair Value	1,326	1,288
Southern California Edison | Fair Value, Measurements, Recurring | Corporate bonds
Nuclear Decommissioning Trusts Disclosures
Fair Value	693	611
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments and receivables/payables1
Nuclear Decommissioning Trusts Disclosures
Fair Value	29	73
Repurchase agreements payable	$ 14	$ 71

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Investments (Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Investment Holdings [Line Items]
Unrealized holding gains, net of losses	$ 1,700	$ 1,400
Other-than-temporary impairments	160	170
Deferred income taxes related to unrealized gains	383	323
Nuclear decommissioning trusts	$ 4,000	$ 3,800

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Investments (Gains and (Losses) for Equity Securities) (Details) - Southern California Edison - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investment Holdings [Line Items]
Gross realized gains	$ 22	$ 26	$ 45	$ 87
Gross realized loss	0	(2)	0	(10)
Net unrealized gains (losses) for equity securities	$ 38	$ (5)	$ 206	$ (68)

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Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Regulatory Assets [Line Items]
Current regulatory assets	$ 1,294	$ 1,133
Long-term regulatory assets	5,469	5,380
Southern California Edison
Regulatory Assets [Line Items]
Current regulatory assets	1,294	1,133
Long-term regulatory assets	5,469	5,380
Total regulatory assets	6,763	6,513
Southern California Edison | Regulatory balancing accounts
Regulatory Assets [Line Items]
Current regulatory assets	987	814
Long-term regulatory assets	346	360
Southern California Edison | Power contracts
Regulatory Assets [Line Items]
Current regulatory assets	285	305
Long-term regulatory assets	561	700
Southern California Edison | Other
Regulatory Assets [Line Items]
Current regulatory assets	22	14
Long-term regulatory assets	91	55
Southern California Edison | Deferred income taxes, net of liabilities
Regulatory Assets [Line Items]
Long-term regulatory assets	3,800	3,589
Southern California Edison | Pensions and other postretirement benefits
Regulatory Assets [Line Items]
Long-term regulatory assets	278	271
Southern California Edison | Unamortized investments, net of accumulated amortization
Regulatory Assets [Line Items]
Long-term regulatory assets	113	118
Southern California Edison | Unamortized loss on reacquired debt
Regulatory Assets [Line Items]
Long-term regulatory assets	148	153
Southern California Edison | Environmental remediation
Regulatory Assets [Line Items]
Long-term regulatory assets	$ 132	$ 134

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Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Regulatory Liabilities [Line Items]
Current regulatory liabilities	$ 767		$ 767		$ 1,532
Long-term regulatory liabilities	8,685		8,685		8,329
Deferred tax re-measurement	0	$ 0	69	$ 0
Southern California Edison
Regulatory Liabilities [Line Items]
Current regulatory liabilities	767		767		1,532
Long-term regulatory liabilities	8,685		8,685		8,329
Total regulatory liabilities	9,452		9,452		9,861
Deferred tax re-measurement	0	$ 0	69	$ 0
Southern California Edison | Regulatory balancing accounts
Regulatory Liabilities [Line Items]
Current regulatory liabilities	728		728		1,080
Long-term regulatory liabilities	1,591		1,591		1,344
Southern California Edison | Energy derivatives
Regulatory Liabilities [Line Items]
Current regulatory liabilities	24		24		158
Southern California Edison | 2018 GRC
Regulatory Liabilities [Line Items]
Current regulatory liabilities	0		0		274
Southern California Edison | Other
Regulatory Liabilities [Line Items]
Current regulatory liabilities	15		15		20
Long-term regulatory liabilities	179		179		125
Southern California Edison | Cost of removal
Regulatory Liabilities [Line Items]
Long-term regulatory liabilities	2,737		2,737		2,769
Southern California Edison | Re-measurement of deferred taxes
Regulatory Liabilities [Line Items]
Long-term regulatory liabilities	2,530		2,530		2,776
Southern California Edison | Recoveries in excess of ARO liabilities
Regulatory Liabilities [Line Items]
Long-term regulatory liabilities	1,454		1,454		1,130
Southern California Edison | Other postretirement benefits
Regulatory Liabilities [Line Items]
Long-term regulatory liabilities	$ 194		$ 194		$ 185

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Regulatory Assets and Liabilities (Schedule of Net Regulatory Balancing Accounts) (Details) - Southern California Edison - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Nov. 30, 2018	Jun. 30, 2019
Regulatory Assets and Liabilities
Asset (liability)			$ 107
Wildfire-specific insurance coverage	$ 1,000	$ 300
Regulatory balancing accounts | Energy resource recovery account
Regulatory Assets and Liabilities
Asset (liability)	815		636
Regulatory balancing accounts | Portfolio allocation balancing account
Regulatory Assets and Liabilities
Asset (liability)	0		143
Regulatory balancing accounts | New system generation balancing account
Regulatory Assets and Liabilities
Asset (liability)	(74)		(81)
Refunds of excess revenue | Net regulatory balancing accounts
Regulatory Assets and Liabilities
Asset (liability)	(1,250)		(986)
Refunds of excess revenue | Public purpose programs and energy efficiency programs
Regulatory Assets and Liabilities
Asset (liability)	(1,200)		(1,285)
Refunds of excess revenue | Tax accounting memorandum account and pole loading balancing account
Regulatory Assets and Liabilities
Asset (liability)	28		(19)
Refunds of excess revenue | Base revenue requirement balancing account
Regulatory Assets and Liabilities
Asset (liability)	(628)		(462)
Refunds of excess revenue | DOE litigation memorandum account
Regulatory Assets and Liabilities
Asset (liability)	(69)		(70)
Refunds of excess revenue | Greenhouse gas auction revenue and low carbon fuel standard revenue
Regulatory Assets and Liabilities
Asset (liability)	(81)		(102)
Refunds of excess revenue | FERC balancing accounts
Regulatory Assets and Liabilities
Asset (liability)	(180)		(88)
Refunds of excess revenue | Catastrophic event memorandum account
Regulatory Assets and Liabilities
Asset (liability)	144		92
Refunds of excess revenue | Wildfire expense memorandum account
Regulatory Assets and Liabilities
Asset (liability)	128		122
Refunds of excess revenue | Fire risk mitigation memorandum account
Regulatory Assets and Liabilities
Asset (liability)	0		97
Refunds of excess revenue | Other
Regulatory Assets and Liabilities
Asset (liability)	$ (133)		$ 31

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Commitments and Contingencies (Southern California Wildfires and Mudslides) (Details) a in Thousands		6 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Nov. 30, 2018 USD ($) a structure fatality	Jan. 31, 2019 claim	Sep. 30, 2018 claim	Jan. 01, 2018 structure fatality	Dec. 31, 2017 a structure fatality
Loss Contingencies [Line Items]
Wildfire-related claims	$ 4,669,000,000	$ 4,669,000,000	$ 4,669,000,000
2017/2018 Wildfire/Mudslide Event
Loss Contingencies [Line Items]
Derivative lawsuits | claim						2
San Onofre OII
Loss Contingencies [Line Items]
Derivative lawsuits | claim					2
Southern California Edison
Loss Contingencies [Line Items]
High fire risk service area, percent	35.00%	27.00%
Wildfire-related claims	$ 4,669,000,000	$ 4,669,000,000	4,669,000,000
Wildfire-specific insurance coverage			1,000,000,000	$ 300,000,000
Self-insured retention			10,000,000
Other general liability insurance coverage	450,000,000		450,000,000
Southern California Edison | Thomas and Koenigstein Fires
Loss Contingencies [Line Items]
Acres burned | a								280
Structures destroyed | structure								1,343
Fatalities | fatality								2
Southern California Edison | Woolsey Fire
Loss Contingencies [Line Items]
Acres burned | a				100
Structures destroyed | structure				1,643
Fatalities | fatality				3
Structures damaged | structure				364
Wildfire-specific insurance coverage			1,000,000,000
Self-insured retention			10,000,000
Southern California Edison | Montecito Mudslides
Loss Contingencies [Line Items]
Structures destroyed | structure							135
Fatalities | fatality							21
Structures damaged | structure							324
Additional presumed fatalities | fatality							2
Southern California Edison | 2017/2018 Wildfire/Mudslide Event
Loss Contingencies [Line Items]
Wildfire-related claims	4,700,000,000	4,700,000,000	4,700,000,000
Expected insurance recoveries	2,000,000,000.0	2,000,000,000.0	2,000,000,000.0
Expected revenue from FERC customers	$ 135,000,000	$ 135,000,000	135,000,000
Total after-tax charge			$ 1,800,000,000

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Commitments and Contingencies (Current Wildfire Insurance Coverage) (Details) - USD ($)	12 Months Ended			13 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Feb. 28, 2019
Loss Contingencies [Line Items]
Regulatory assets		$ 5,380,000,000			$ 5,469,000,000
Southern California Edison
Loss Contingencies [Line Items]
Wildfire-specific insurance coverage		1,000,000,000	$ 300,000,000
Self-insured retention		10,000,000
Net Regulatory Assets					107,000,000
Regulatory assets		$ 5,380,000,000			5,469,000,000
Southern California Edison | Wildfire insurance costs
Loss Contingencies [Line Items]
Regulatory assets					$ 193,000,000
Southern California Edison | Wildfire liability insurance recovery | Regulatory balancing accounts
Loss Contingencies [Line Items]
Net Regulatory Assets						$ 107,000,000
Southern California Edison | Forecast
Loss Contingencies [Line Items]
Wildfire-specific insurance coverage				$ 1,200,000,000
Co-Insurance per wildfire occurrence				115,000,000
Self-insured retention				50,000,000
Wildfire-specific insurance coverage, net				$ 1,000,000,000
Wildfire insurance expense	$ 400,000,000

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Commitments and Contingencies (Recovery of Wildfire-Related Costs) (Details) - USD ($) $ in Millions			1 Months Ended
	Jan. 01, 2020	Jul. 12, 2019	Apr. 30, 2019
Southern California Edison | CPUC
Loss Contingencies [Line Items]
Additional ROE			6.00%
Southern California Edison | FERC
Loss Contingencies [Line Items]
Additional ROE			6.00%
Subsequent event | Southern California Edison
Loss Contingencies [Line Items]
Initial contribution		$ 2,400
Annual contribution		95
Subsequent event | SCE, SDG&E and PG&E
Loss Contingencies [Line Items]
Annual contribution		3,000
Subsequent event | SCE and SDG&E
Loss Contingencies [Line Items]
Initial contribution		2,700
Annual contribution		$ 1,000
Forecast
Loss Contingencies [Line Items]
Anticipated raise from issuance of equity	$ 1,200
Forecast | Southern California Edison
Loss Contingencies [Line Items]
Anticipated issuance of long-term debt	$ 1,200
Forecast | Subsequent event | Southern California Edison
Loss Contingencies [Line Items]
Maximum aggregate requirement to reimburse the insurance fund percent		20.00%
Initial Liability Cap		$ 2,500
Excluded wildfire risk mitigation capital expenditures		$ 1,600

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Commitments and Contingencies (Environmental Remediation) (Details) - Southern California Edison $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) site	Jun. 30, 2018 USD ($)
Schedule Of Commitments And Contingencies [Line Items]
Minimum liability for environmental remediation	$ 137
Regulatory assets related to environmental remediation	132
Portion of recorded liability recoverable from incentive mechanism	$ 41
Percentage of environmental remediation costs recoverable through an incentive mechanism (as a percent)	90.00%
Liability incurred at majority of the remaining sites through customer rates	$ 91
Environmental remediation costs to be recovered (as a percent)	100.00%
Amount that cleanup costs could exceed recorded liability for identified material sites	$ 141
Amount that cleanup costs could exceed recorded liability for immaterial sites	$ 7
Clean up (period)	30 years
Remediation cost estimates (period)	5 years
Expected remediation costs for each of the next four years, low end of range	$ 7
Expected remediation costs for each of the next four years, high end of range	18
Environmental remediation costs	$ 2	$ 6
Material sites
Schedule Of Commitments And Contingencies [Line Items]
Identified material sites for environmental remediation (in number of sites) | site	21
Minimum costs to be identified site	$ 1
Minimum liability for environmental remediation	133
Material sites | San Onofre
Schedule Of Commitments And Contingencies [Line Items]
Minimum liability for environmental remediation	$ 88
Immaterial sites
Schedule Of Commitments And Contingencies [Line Items]
Immaterial sites for environmental remediation (in number of sites) | site	15
Immaterial sites | Minimum
Schedule Of Commitments And Contingencies [Line Items]
Minimum liability for environmental remediation	$ 4

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Commitments and Contingencies (Nuclear Insurance) (Details) - USD ($)		6 Months Ended
	Jan. 05, 2018	Jun. 30, 2019
Southern California Edison | Palo Verde
Schedule Of Commitments And Contingencies [Line Items]
Maximum per incident	$ 65,000,000
Maximum per incident, annually	10,000,000
Maximum per incident, prior events	255,000,000
Maximum per incident, prior events, annually	$ 38,000,000
Nuclear Insurance | San Onofre
Schedule Of Commitments And Contingencies [Line Items]
Federal limit on public liability claims from nuclear incident, approximate		$ 560,000,000
Nuclear Insurance | Palo Verde
Schedule Of Commitments And Contingencies [Line Items]
Loss Limit, Public Offsite, Bodily Injury and Property Damage from Nuclear Incident, Federal Claim Limit		13,900,000,000
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | San Onofre
Schedule Of Commitments And Contingencies [Line Items]
Loss limit, property damage insurance, federal minimum requirement		50,000,000
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | Palo Verde
Schedule Of Commitments And Contingencies [Line Items]
Loss limit, property damage insurance, federal minimum requirement		1,060,000,000.00
Nuclear Insurance | Southern California Edison
Schedule Of Commitments And Contingencies [Line Items]
Limit on assessment of retrospective premium adjustments, per year, approximate		$ 52,000,000

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Commitments and Contingencies (Spent Nuclear Fuel) (Details) - USD ($) $ in Millions	1 Months Ended
	Aug. 31, 2018	Apr. 30, 2016	Jun. 30, 2010	May 31, 2018	Oct. 31, 2017	Feb. 28, 2017	Sep. 30, 2016
Schedule Of Commitments And Contingencies [Line Items]
DOE determination of claim reimbursement							$ 56.0
SCE and other owners of San Onofre and Palo Verde
Schedule Of Commitments And Contingencies [Line Items]
Damages sought			$ 142.0
Damage award		$ 162.0
DOE determination of claim reimbursement				$ 45.0		$ 43.0
Southern California Edison
Schedule Of Commitments And Contingencies [Line Items]
Damages sought			$ 112.0
Damage award		124.0
Legal and other costs		$ 2.0
Damage award, customers	$ 105.6
Damage award, shareholders	16.6
DOE determination of claim reimbursement				35.0	$ 58.0	$ 34.0
Disallowed claim amount				$ 13.0
Southern California Edison | Regulatory balancing accounts
Schedule Of Commitments And Contingencies [Line Items]
Damage award, customers	$ 71.6

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Leases (Textual) (Details) - Southern California Edison $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Lease income	$ 5	$ 10
Minimum
Lessee, Lease, Description [Line Items]
Term of contract	15 years	15 years
Maximum
Lessee, Lease, Description [Line Items]
Term of contract	65 years	65 years
PPA leases | Minimum
Lessee, Lease, Description [Line Items]
Lease term	10 years	10 years
PPA leases | Maximum
Lessee, Lease, Description [Line Items]
Lease term	20 years	20 years
Offices leases | Minimum
Lessee, Lease, Description [Line Items]
Lease term	5 years	5 years
Offices leases | Maximum
Lessee, Lease, Description [Line Items]
Lease term	72 years	72 years
Other operating leases | Minimum
Lessee, Lease, Description [Line Items]
Lease term	5 years	5 years
Other operating leases | Maximum
Lessee, Lease, Description [Line Items]
Lease term	12 years	12 years

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Leases (Summary of Lease Payments) (Details) - Southern California Edison $ in Millions	3 Months Ended
	Jun. 30, 2019 USD ($) contract	Dec. 31, 2018 USD ($)
Operating Leases
Lease liabilities	$ 738
Finance Leases
2019	1
2020	1
2021	1
2022	2
2023	2
Thereafter	9
Total lease payments	16
Amount representing interest	6
Lease liabilities	$ 10
Capital Leases
2019		$ 5
2020		6
2021		6
2022		6
2023		5
Thereafter		66
Total lease payments		94
Amount representing executory costs		(25)
Amount representing interest		(33)
Net commitments		36
Number of power contracts amended | contract	3
Reduction in ROU assets	$ (161)
Reduction in lease liabilities	124
PPA Operating Leases
Operating Leases
2019	58
2020	70
2021	48
2022	48
2023	47
Thereafter	536
Total lease payments	807
Amount representing interest4	232
Lease liabilities	575
Operating Leases
2019		148
2020		124
2021		103
2022		79
2023		47
Thereafter		536
Total lease payments		1,037
Other Operating Leases
Operating Leases
2019	21
2020	33
2021	27
2022	22
2023	17
Thereafter	104
Total lease payments	224
Amount representing interest4	61
Lease liabilities	$ 163
Operating Leases
2019		42
2020		31
2021		27
2022		22
2023		17
Thereafter		101
Total lease payments		$ 240

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Leases (Supplemental Balance Sheet Information) (Details) $ in Millions	Jun. 30, 2019 USD ($)
Operating leases:
Operating lease right-of-use assets	$ 742
Current portion of operating lease liabilities	108
Operating lease liabilities	634
Southern California Edison
Operating leases:
Operating lease right-of-use assets	738
Current portion of operating lease liabilities	107
Operating lease liabilities	631
Total operating lease liabilities	738
Finance leases included in:
Utility property, plant and equipment, gross	14
Accumulated depreciation	(4)
Utility property, plant and equipment, net	10
Other current liabilities	1
Other long-term liabilities	9
Total finance lease liabilities	$ 10

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Leases (Summary of Lease Expense Components) (Details) - Southern California Edison - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 661	$ 1,074
PPA Operating Leases
Lessee, Lease, Description [Line Items]
Lease cost	30	60
Variable lease cost	619	991
Lease, Cost	649	1,051
Other operating leases cost
Lessee, Lease, Description [Line Items]
Lease cost	$ 12	$ 23

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Leases (Summary of Other Information) (Details) - Southern California Edison $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Other operating leases	$ 15
PPA Finance leases, Weighted average remaining lease term (in years)	11 years 11 months 1 day
PPA Finance leases, Weighted average discount rate	8.72%
PPA Operating Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 60
Weighted average remaining lease term (in years)	15 years 6 months 29 days
Weighted average discount rate	4.40%
Other Operating Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 23
Weighted average remaining lease term (in years)	12 years 9 months
Weighted average discount rate	3.89%

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Leases (Schedule of Undiscounted Cash Flow Expected from Lease Payments) (Details) - Southern California Edison $ in Millions	Jun. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
2019	$ 9
2020	15
2021	10
2022	10
2023	8
Thereafter	155
Total	$ 207

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pension and PBOP – net loss:
Other	$ 0	$ 0	$ 0	$ (5)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(58)	(46)	(50)	(43)
Pension and PBOP – net loss:
Ending Balance	(57)	(44)	(57)	(44)
Accumulated Defined Benefit Plans Adjustment
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1	2	3	4
Other	0	0	(10)	(5)
Change	1	2	(7)	(1)
Southern California Edison
Pension and PBOP – net loss:
Other	0	0	0	(5)
Southern California Edison | Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(27)	(22)	(23)	(19)
Pension and PBOP – net loss:
Ending Balance	(26)	(21)	(26)	(21)
Southern California Edison | Accumulated Defined Benefit Plans Adjustment
Pension and PBOP – net loss:
Reclassified from accumulated other comprehensive loss1	1	1	2	3
Other	0	0	(5)	(5)
Change	$ 1	$ 1	$ (3)	$ (2)

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Other Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
SCE other income and expense:
Total SCE other income and expense	$ 55	$ 49	$ 93	$ 100
Other income and expense of Edison International Parent and Other:
Total Edison International other income and expense	55	49	93	100
Edison International Parent and Other
SCE other income and expense:
Net periodic benefit costs – non-service components	0	1	2	1
Other	(1)	0	1	0
Other income and expense of Edison International Parent and Other:
Net periodic benefit costs – non-service components	0	1	2	1
Other	(1)	0	1	0
Southern California Edison
SCE other income and expense:
Equity allowance for funds used during construction	32	22	49	44
Increase in cash surrender value of life insurance policies	9	6	18	14
Interest income	7	5	16	9
Net periodic benefit costs – non-service components	16	27	35	53
Civic, political and related activities and donations	(8)	(12)	(21)	(16)
Other	0		(3)	(3)
Other		2
Total SCE other income and expense	56	50	94	101
Other income and expense of Edison International Parent and Other:
Net periodic benefit costs – non-service components	16	27	35	53
Other		2
Total Edison International other income and expense	$ 56	$ 50	$ 94	$ 101

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Supplemental Cash Flows Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash payments for interest and taxes:
Interest, net of amounts capitalized	$ 301	$ 254
Tax refunds, net	(65)	(93)
Common stock
Dividends declared but not paid:
Dividends declared but not paid:	200	197
Preferred and preference stock
Dividends declared but not paid:
Dividends declared but not paid:	12	12
Southern California Edison
Cash payments for interest and taxes:
Interest, net of amounts capitalized	268	233
Tax refunds, net	(101)	(18)
Dividends declared but not paid:
Accrued capital expenditures	463	412
Southern California Edison | Common stock
Dividends declared but not paid:
Dividends declared but not paid:	0	100
Southern California Edison | Preferred and preference stock
Dividends declared but not paid:
Dividends declared but not paid:	$ 12	$ 12

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Related-Party Transactions (Details) - Southern California Edison - Subsidiary of Common Parent - Wildfire Liability Insurance - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Wildfire insurance premiums	$ 74		$ 260
Long-term insurance receivable due from affiliate	1,000		1,000		$ 1,000
Prepaid insurance	74		74		13
Current payables due to affiliate	0		0		$ 4
Wildfire insurance expense	$ 41	$ 35	$ 72	$ 71