Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 29, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | EDISON INTERNATIONAL | ||
Entity Central Index Key | 827,052 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 325,811,206 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 20.6 | ||
Southern California Edison Company | |||
Entity Information [Line Items] | |||
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON CO | ||
Entity Central Index Key | 92,103 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 434,888,104 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total operating revenue | $ 12,657 | $ 12,320 | $ 11,869 |
Purchased power and fuel | 5,406 | 4,873 | 4,527 |
Operation and maintenance | 2,797 | 2,844 | 2,898 |
Wildfire-related claims, net of insurance recoveries | 2,669 | 0 | 0 |
Depreciation and amortization | 1,871 | 2,041 | 2,007 |
Property and other taxes | 395 | 377 | 354 |
Impairment and other | 78 | 738 | 21 |
Other operating income | (7) | (9) | 0 |
Total operating expenses | 13,209 | 10,864 | 9,807 |
Operating (loss) income | (552) | 1,456 | 2,062 |
Interest expense | (734) | (639) | (581) |
Other income and expenses | 197 | 132 | 109 |
(Loss) income from continuing operations before income taxes | (1,089) | 949 | 1,590 |
Income tax (benefit) expense | (739) | 281 | 177 |
(Loss) income from continuing operations | (350) | 668 | 1,413 |
Income from discontinued operations, net of tax | 34 | 0 | 12 |
Net (loss) income | (316) | 668 | 1,425 |
Preferred and preference stock dividend requirements of utility | 121 | 124 | 123 |
Other noncontrolling interests | (14) | (21) | (9) |
Net (loss) income from continuing operations available to common shareholders | (423) | 565 | 1,311 |
Basic (loss) earnings per common share attributable to Edison International common shareholders: | |||
(Loss) income from continuing operations, net of tax | (457) | 565 | 1,299 |
Income from discontinued operations, net of tax | 34 | 0 | 12 |
Net (loss) income from continuing operations available to common shareholders | $ (423) | $ 565 | $ 1,311 |
Basic (loss) earnings per common share attributable to Edison International common shareholders: | |||
Weighted-average shares of common stock outstanding | 326 | 326 | 326 |
Continuing operations (in dollars per share) | $ (1.40) | $ 1.73 | $ 3.99 |
Discontinued operations (in dollars per share) | 0.10 | 0 | 0.03 |
Total (in dollars per share) | $ (1.30) | $ 1.73 | $ 4.02 |
Diluted (loss) earnings per common share attributable to Edison International common shareholders: | |||
Weighted-average shares of common stock outstanding, including effect of dilutive securities | 326 | 328 | 330 |
Continuing operations (in dollars per share) | $ (1.40) | $ 1.72 | $ 3.94 |
Discontinued operations (in dollars per share) | 0.10 | 0 | 0.03 |
Total (in dollars per share) | $ (1.30) | $ 1.72 | $ 3.97 |
Southern California Edison Company | |||
Total operating revenue | $ 12,611 | $ 12,254 | $ 11,830 |
Purchased power and fuel | 5,406 | 4,873 | 4,527 |
Operation and maintenance | 2,702 | 2,722 | 2,772 |
Wildfire-related claims, net of insurance recoveries | 2,669 | 0 | 0 |
Depreciation and amortization | 1,867 | 2,032 | 1,998 |
Property and other taxes | 392 | 372 | 351 |
Impairment and other | (12) | 716 | 0 |
Other operating income | (7) | (8) | 0 |
Total operating expenses | 13,017 | 10,707 | 9,648 |
Operating (loss) income | (406) | 1,547 | 2,182 |
Interest expense | (673) | (589) | (541) |
Other income and expenses | 194 | 148 | 114 |
(Loss) income from continuing operations before income taxes | (885) | 1,106 | 1,755 |
Income tax (benefit) expense | (696) | (30) | 256 |
Net (loss) income | (189) | 1,136 | 1,499 |
Preferred and preference stock dividend requirements of utility | 121 | 124 | 123 |
Net (loss) income from continuing operations available to common shareholders | (310) | 1,012 | 1,376 |
Basic (loss) earnings per common share attributable to Edison International common shareholders: | |||
Net (loss) income from continuing operations available to common shareholders | $ (310) | $ 1,012 | $ 1,376 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net (loss) income | $ (316) | $ 668 | $ 1,425 |
Pension and postretirement benefits other than pensions: | |||
Net (loss) gain arising during the period plus amortization included in net income | (3) | 10 | 2 |
Other | (4) | 0 | 1 |
Other comprehensive (loss) income, net of tax | (7) | 10 | 3 |
Comprehensive (loss) income | (323) | 678 | 1,428 |
Less: Comprehensive income attributable to noncontrolling interests | 107 | 103 | 114 |
Comprehensive (loss) income | (430) | 575 | 1,314 |
Southern California Edison Company | |||
Net (loss) income | (189) | 1,136 | 1,499 |
Pension and postretirement benefits other than pensions: | |||
Net (loss) gain arising during the period plus amortization included in net income | 1 | 1 | 1 |
Other | (5) | 0 | 1 |
Other comprehensive (loss) income, net of tax | (4) | 1 | 2 |
Comprehensive (loss) income | $ (193) | $ 1,137 | $ 1,501 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 144 | $ 1,091 |
Receivables, less allowances of $51 and $53 for uncollectible accounts at respective dates | 730 | 717 |
Accrued unbilled revenue | 482 | 212 |
Inventory | 282 | 242 |
Income tax receivables | 191 | 224 |
Prepaid expenses | 148 | 233 |
Derivative assets | 171 | 105 |
Regulatory assets | 1,133 | 703 |
Other current assets | 78 | 202 |
Total current assets | 3,359 | 3,729 |
Nuclear decommissioning trusts | 4,120 | 4,440 |
Other investments | 63 | 73 |
Total investments | 4,183 | 4,513 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 41,269 | 38,708 |
Nonutility property, plant and equipment, less accumulated depreciation | 79 | 342 |
Total property, plant and equipment | 41,348 | 39,050 |
Regulatory assets | 5,380 | 4,914 |
Other long-term assets | 2,445 | 374 |
Total long-term assets | 7,825 | 5,288 |
Total assets | 56,715 | 52,580 |
LIABILITIES AND EQUITY | ||
Short-term debt | 720 | 2,393 |
Current portion of long-term debt | 79 | 481 |
Accounts payable | 1,511 | 1,503 |
Accrued taxes | 21 | 23 |
Customer deposits | 299 | 281 |
Regulatory liabilities | 1,532 | 1,121 |
Other current liabilities | 1,233 | 1,266 |
Total current liabilities | 5,395 | 7,068 |
Long-term debt | 14,632 | 11,642 |
Deferred income taxes and credits | 4,576 | 4,567 |
Pensions and benefits | 869 | 943 |
Asset retirement obligations | 3,031 | 2,908 |
Regulatory liabilities | 8,329 | 8,614 |
Wildfire-related claims | 4,669 | 0 |
Other deferred credits and other long-term liabilities | 2,562 | 2,953 |
Total deferred credits and other liabilities | 24,036 | 19,985 |
Total liabilities | 44,063 | 38,695 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interest | 0 | 19 |
Common stock, no par value | 2,545 | 2,526 |
Accumulated other comprehensive loss | (50) | (43) |
Retained earnings | 7,964 | 9,188 |
Total Edison International's common shareholders' equity | 10,459 | 11,671 |
Noncontrolling interests – preferred and preference stock of SCE | 2,193 | 2,193 |
Other noncontrolling interests | 0 | 2 |
Total equity | 12,652 | 13,866 |
Total liabilities and equity | 56,715 | 52,580 |
Southern California Edison Company | ||
ASSETS | ||
Cash and cash equivalents | 21 | 515 |
Receivables, less allowances of $51 and $53 for uncollectible accounts at respective dates | 711 | 693 |
Accrued unbilled revenue | 482 | 212 |
Inventory | 282 | 242 |
Income tax receivables | 312 | 229 |
Prepaid expenses | 144 | 228 |
Derivative assets | 171 | 105 |
Regulatory assets | 1,133 | 703 |
Other current assets | 69 | 160 |
Total current assets | 3,325 | 3,087 |
Nuclear decommissioning trusts | 4,120 | 4,440 |
Other investments | 45 | 52 |
Total investments | 4,165 | 4,492 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 41,269 | 38,708 |
Nonutility property, plant and equipment, less accumulated depreciation | 75 | 77 |
Total property, plant and equipment | 41,344 | 38,785 |
Regulatory assets | 5,380 | 4,914 |
Long-term insurance receivable due from affiliate | 1,000 | |
Other long-term assets | 1,360 | 237 |
Total long-term assets | 7,740 | 5,151 |
Total assets | 56,574 | 51,515 |
LIABILITIES AND EQUITY | ||
Short-term debt | 720 | 1,238 |
Current portion of long-term debt | 79 | 479 |
Accounts payable | 1,519 | 1,519 |
Accrued taxes | 22 | 24 |
Customer deposits | 299 | 281 |
Regulatory liabilities | 1,532 | 1,121 |
Other current liabilities | 975 | 1,225 |
Total current liabilities | 5,146 | 5,887 |
Long-term debt | 12,892 | 10,428 |
Deferred income taxes and credits | 5,898 | 5,890 |
Pensions and benefits | 433 | 483 |
Asset retirement obligations | 3,031 | 2,892 |
Regulatory liabilities | 8,329 | 8,614 |
Wildfire-related claims | 4,669 | 0 |
Other deferred credits and other long-term liabilities | 2,391 | 2,649 |
Total deferred credits and other liabilities | 24,751 | 20,528 |
Total liabilities | 42,789 | 36,843 |
Commitments and contingencies (Note 12) | ||
Preferred and preference stock | 2,245 | 2,245 |
Common stock, no par value | 2,168 | 2,168 |
Additional paid-in capital | 680 | 671 |
Accumulated other comprehensive loss | (23) | (19) |
Retained earnings | 8,715 | 9,607 |
Total equity | 13,785 | 14,672 |
Total liabilities and equity | $ 56,574 | $ 51,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables, allowances for uncollectible accounts | $ 52 | $ 54 |
Utility property, plant and equipment, accumulated depreciation | 9,566 | 9,355 |
Nonutility property, plant and equipment, accumulated depreciation | $ 82 | $ 114 |
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 | $ 51 | $ 53 |
Utility property, plant and equipment, accumulated depreciation | 9,566 | 9,355 |
Nonutility property, plant and equipment, accumulated depreciation | $ 77 | $ 97 |
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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (316) | $ 668 | $ 1,425 |
Less: Income from discontinued operations | 34 | 0 | 12 |
(Loss) income from continuing operations | (350) | 668 | 1,413 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 1,940 | 2,115 | 2,098 |
Allowance for equity during construction | (104) | (87) | (74) |
Impairment and other | 78 | 738 | 0 |
Deferred income taxes and investment tax credits | (527) | 498 | 190 |
Other | 35 | 34 | 29 |
Nuclear decommissioning trusts | (109) | (197) | (179) |
EME settlement payments, net of insurance proceeds | 0 | 0 | (209) |
Changes in operating assets and liabilities: | |||
Receivables | (39) | 6 | 50 |
Inventory | (49) | (12) | 8 |
Accounts payable | (31) | 50 | 35 |
Tax receivables and payables | 32 | (250) | (6) |
Other current assets and liabilities | (79) | 7 | 220 |
Regulatory assets and liabilities, net | (92) | 4 | (292) |
Wildfire-related insurance receivable | (2,000) | 0 | 0 |
Wildfire-related claims | 4,669 | 0 | 0 |
Other noncurrent assets and liabilities | (197) | 23 | (29) |
Net cash provided by operating activities | 3,177 | 3,597 | 3,254 |
Cash flows from financing activities: | |||
Long-term debt issued or remarketed, net of premium, discount and issuance costs | 3,237 | 2,233 | 397 |
Long-term debt matured or repurchased | (654) | (1,285) | (220) |
Preference stock issued, net | 0 | 462 | 294 |
Preference stock redeemed | 0 | (475) | (125) |
Short-term debt financing, net | (1,611) | 1,084 | 611 |
Payments for stock-based compensation | (46) | (393) | (237) |
Receipts from stock option exercises | 26 | 215 | 135 |
Dividends and distribution to noncontrolling interests | (121) | (125) | (123) |
Dividends paid | (788) | (707) | (626) |
Other | 39 | (2) | (11) |
Net cash provided by (used in) financing activities | 82 | 1,007 | 95 |
Cash flows from investing activities: | |||
Capital expenditures | (4,509) | (3,844) | (3,749) |
Proceeds from sale of nuclear decommissioning trust investments | 4,340 | 5,239 | 3,212 |
Purchases of nuclear decommissioning trust investments | (4,231) | (5,042) | (3,033) |
Proceeds from sale of SoCore Energy, net of cash acquired by buyer | 78 | 0 | 0 |
Other | 83 | 61 | 167 |
Net cash used in investing activities | (4,239) | (3,586) | (3,403) |
Net (decrease) increase in cash, cash equivalent and restricted cash | (980) | 1,018 | (54) |
Cash, cash equivalents and restricted cash at beginning of year | 1,132 | 114 | 168 |
Cash, cash equivalents and restricted cash at end of year | 152 | 1,132 | 114 |
Southern California Edison Company | |||
Cash flows from operating activities: | |||
Net (loss) income | (189) | 1,136 | 1,499 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 1,931 | 2,101 | 2,085 |
Allowance for equity during construction | (104) | (87) | (74) |
Impairment and other | (12) | 716 | 0 |
Deferred income taxes and investment tax credits | (552) | 304 | 88 |
Other | 28 | 24 | 18 |
Nuclear decommissioning trusts | (109) | (197) | (179) |
Changes in operating assets and liabilities: | |||
Receivables | (45) | 5 | 23 |
Inventory | (50) | (11) | (3) |
Accounts payable | (43) | 50 | 45 |
Tax receivables and payables | (84) | (234) | (16) |
Other current assets and liabilities | (91) | 42 | 194 |
Regulatory assets and liabilities, net | (92) | 4 | (292) |
Wildfire-related insurance receivable | (2,000) | 0 | 0 |
Wildfire-related claims | 4,669 | 0 | 0 |
Other noncurrent assets and liabilities | (66) | (118) | 133 |
Net cash provided by operating activities | 3,191 | 3,735 | 3,521 |
Cash flows from financing activities: | |||
Long-term debt issued or remarketed, net of premium, discount and issuance costs | 2,692 | 1,445 | 0 |
Long-term debt matured or repurchased | (639) | (882) | (217) |
Preference stock issued, net | 0 | 462 | 294 |
Preference stock redeemed | 0 | (475) | (125) |
Short-term debt financing, net | (520) | 469 | 719 |
Payments for stock-based compensation | (22) | (86) | (127) |
Receipts from stock option exercises | 12 | 48 | 76 |
Dividends paid | (909) | (697) | (824) |
Other | 2 | (41) | (15) |
Net cash provided by (used in) financing activities | 616 | 243 | (219) |
Cash flows from investing activities: | |||
Capital expenditures | (4,491) | (3,756) | (3,648) |
Proceeds from sale of nuclear decommissioning trust investments | 4,340 | 5,239 | 3,212 |
Purchases of nuclear decommissioning trust investments | (4,231) | (5,042) | (3,033) |
Other | 82 | 56 | 175 |
Net cash used in investing activities | (4,300) | (3,503) | (3,294) |
Net (decrease) increase in cash, cash equivalent and restricted cash | (493) | 475 | 8 |
Cash, cash equivalents and restricted cash at beginning of year | 515 | 40 | 32 |
Cash, cash equivalents and restricted cash at end of year | $ 22 | $ 515 | $ 40 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(Discount), premium and issuance costs | $ (63) | $ (2) | $ (7) |
Southern California Edison Company | |||
(Discount), premium and issuance costs | $ (58) | $ 10 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Southern California Edison Company | Common Stock | Common StockSouthern California Edison Company | Additional Paid-in CapitalSouthern California Edison Company | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossSouthern California Edison Company | Retained Earnings | Retained EarningsSouthern California Edison Company | Equity Attributable to Common Shareholders | Other | Preferred and Preference Stock | Preferred and Preference StockSouthern California Edison Company |
Balance, at the beginning of the period at Dec. 31, 2015 | $ 13,388 | $ 13,672 | $ 2,484 | $ 2,168 | $ 652 | $ (56) | $ (22) | $ 8,940 | $ 8,804 | $ 11,368 | $ 0 | $ 2,020 | $ 2,070 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 1,434 | 1,499 | 1,311 | 1,499 | 1,311 | 123 | |||||||
Other comprehensive income (loss) | 3 | 2 | 3 | 2 | 3 | ||||||||
Dividends declared on common stock | (646) | (701) | (646) | (701) | (646) | ||||||||
Dividends declared on preferred and preference stock | (123) | (123) | |||||||||||
Dividends to noncontrolling interests | (123) | (123) | |||||||||||
Stock-based compensation | (60) | (44) | (1) | (59) | (44) | (60) | |||||||
Noncash stock-based compensation | 22 | 9 | 22 | 9 | 0 | 22 | |||||||
Issuance of preference stock | 294 | 294 | (6) | 294 | 300 | ||||||||
Redemption of preference stock | (125) | (125) | 2 | (2) | (2) | (2) | (123) | (125) | |||||
Balance, at the end of the period at Dec. 31, 2016 | 14,187 | 14,483 | 2,505 | 2,168 | 657 | (53) | (20) | 9,544 | 9,433 | 11,996 | 0 | 2,191 | 2,245 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 671 | 1,136 | 565 | 1,136 | 565 | (18) | 124 | ||||||
Other comprehensive income (loss) | 10 | 1 | 10 | 1 | 10 | ||||||||
Contribution from tax equity investor | 20 | 20 | |||||||||||
Dividends declared on common stock | (727) | (785) | (727) | (785) | (727) | ||||||||
Dividends declared on preferred and preference stock | (124) | (124) | |||||||||||
Dividends to noncontrolling interests | (124) | (124) | |||||||||||
Stock-based compensation | (179) | (38) | (179) | (38) | (179) | ||||||||
Noncash stock-based compensation | 21 | 12 | 21 | 12 | 21 | ||||||||
Issuance of preference stock | 462 | 462 | (13) | 462 | 475 | ||||||||
Redemption of preference stock | (475) | (475) | 15 | (15) | (15) | (15) | (460) | (475) | |||||
Balance, at the end of the period at Dec. 31, 2017 | 13,866 | 14,672 | 2,526 | 2,168 | 671 | (43) | (19) | 9,188 | 9,607 | 11,671 | 2 | 2,193 | 2,245 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (313) | (189) | (423) | (189) | (423) | (11) | 121 | ||||||
Other comprehensive income (loss) | (2) | 1 | (2) | 1 | (2) | ||||||||
Other comprehensive income (loss) | (7) | (4) | |||||||||||
Contribution from tax equity investor | 24 | 24 | |||||||||||
Dividends declared on common stock | (791) | (576) | (791) | (576) | (791) | ||||||||
Dividends declared on preferred and preference stock | (121) | (121) | |||||||||||
Dividends to noncontrolling interests | (121) | (121) | |||||||||||
Stock-based compensation | (20) | (11) | (20) | (11) | (20) | ||||||||
Noncash stock-based compensation | 19 | 9 | 19 | 9 | 19 | ||||||||
Deconsolidation of SoCore Energy | (15) | (15) | |||||||||||
Balance, at the end of the period at Dec. 31, 2018 | $ 12,652 | $ 13,785 | $ 2,545 | $ 2,168 | $ 680 | $ (50) | $ (23) | $ 7,964 | $ 8,715 | $ 10,459 | $ 0 | $ 2,193 | $ 2,245 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends declared per common share (in dollars per share) | $ 2.4275 | $ 2.2325 | $ 1.9825 |
Minimum | Noncontrolling interest | |||
Preferred stock dividends (in dollars per share) | 0 | 1.02 | 1.02 |
Preference stock dividends (in dollars per share) | 62.50 | 62.50 | 62.50 |
Maximum | Noncontrolling interest | |||
Preferred stock dividends (in dollars per share) | 0 | 0 | 1.195 |
Preference stock dividends (in dollars per share) | 143.75 | 143.75 | 143.75 |
Southern California Edison Company | |||
Dividends declared per common share (in dollars per share) | 1.32 | 1.81 | 1.61 |
Southern California Edison Company | Minimum | Noncontrolling interest | |||
Preferred stock dividends (in dollars per share) | 1.02 | 1.02 | 1.02 |
Preference stock dividends (in dollars per share) | 62.50 | 62.50 | 62.50 |
Southern California Edison Company | Maximum | Noncontrolling interest | |||
Preferred stock dividends (in dollars per share) | 1.195 | 1.195 | 1.195 |
Preference stock dividends (in dollars per share) | $ 143.75 | $ 143.75 | $ 143.75 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 customer. 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 accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 11 for composition of regulatory assets and liabilities. The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Effective January 1, 2018, Edison International and SCE adopted several accounting standards retrospectively. Prior year financial statements have been reclassified and updated to reflect the retrospective application of these standards as applicable. For further information, see "New Accounting Guidance" below. Sale of SoCore Energy On February 28, 2018, Edison International agreed to sell SoCore Energy LLC ("SoCore Energy"), a subsidiary of Edison Energy Group, to a third party, subject to the completion of closing conditions, which were satisfied on April 16, 2018. As a result, Edison International recognized a pre-tax loss of $62 million ( $50 million after-tax) for the year ended December 31, 2018 and the assets and liabilities of SoCore Energy were not reflected in the consolidated Edison International balance sheet as of December 31, 2018. 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 December 31, (in millions) 2018 2017 2018 2017 Money market funds $ 116 $ 1,024 $ 1 $ 483 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 December 31, (in millions) 2018 2017 2018 2017 Book balances reclassified to accounts payable $ 65 $ 64 $ 65 $ 63 Edison International's restricted cash at December 31, 2018 and 2017 were $8 million and $41 million , respectively. Restricted cash at December 31, 2017 primarily relates to funds held by SoCore Energy and its consolidated affiliates pursuant to project financing or purchase agreements, most of which lapsed before June 30, 2018. As a result of the sale of SoCore Energy, the assets and liabilities of SoCore Energy were not included in the consolidated Edison International balance sheet at December 31, 2018, as discussed above. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: (in millions) December 31, 2018 December 31, 2017 Edison International: Cash and cash equivalents $ 144 $ 1,091 Short-term restricted cash 1 8 40 Long-term restricted cash 2 — 1 Total cash, cash equivalents, and restricted cash $ 152 $ 1,132 SCE: Cash and cash equivalents $ 21 $ 515 Short-term restricted cash 1 1 — Total cash, cash equivalents, and restricted cash $ 22 $ 515 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Reflected in "Other long-term assets" on Edison International's consolidated balance sheets. Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at average cost. Emission Allowances and Energy Credits SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. SCE had GHG allowances held for use of $38 million and $127 million at December 31, 2018 and 2017 , respectively. GHG emission obligations were $30 million and $129 million at December 31, 2018 and 2017 , respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of program costs, are recorded in a balancing account to be refunded to eligible customers. SCE's net proceeds from the sale of these LCFS credits were $103 million and $24 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2018 and 2017, respectively. Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives (authorized by the CPUC in the 2015 GRC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful Lives Weighted-Average Useful Lives Generation plant 10 years to 54 years 37 years Distribution plant 20 years to 60 years 43 years Transmission plant 40 years to 65 years 52 years General plant and other 5 years to 60 years 22 years Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $1.65 billion , $1.61 billion and $1.52 billion for 2018 , 2017 and 2016 , respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.7% , 3.8% and 3.8% for 2018 , 2017 and 2016 , respectively. The original costs of retired property is charged to accumulated depreciation. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $104 million , $87 million and $74 million in 2018 , 2017 and 2016 , respectively, and is reflected in "Other income and expenses." AFUDC debt was $44 million , $28 million and $23 million in 2018 , 2017 and 2016 , respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's power plant facilities and equipment are expensed as incurred. Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. Goodwill Edison International assesses goodwill through an annual goodwill impairment test, at the reporting unit level as of October 1st of each year. Edison International updates its goodwill impairment test between annual tests if events occur or circumstances change such that it is more likely than not that the fair value of a reporting unit is below its carrying value. In assessing goodwill for impairment, Edison International may perform a qualitative assessment to determine whether a quantitative assessment is necessary. In performing a qualitative assessment, Edison International assesses, among other things, macroeconomic conditions, industry and market considerations, overall financial performance, cost factors and entity-specific events. If, after assessing these qualitative factors, Edison International determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then Edison International performs the two-step goodwill impairment test ("quantitative assessment"). In October 2018, Edison International qualitatively determined that it was more likely than not that the carrying value of the Edison Energy reporting unit exceeded the fair value, therefore, Edison International performed a quantitative assessment. The fair value of the Edison Energy reporting unit was estimated using the income approach, which utilizes a discounted cash flow analysis based on the earnings expected to be generated in the future. This determination requires significant assumptions and estimates in forecasting future cash flows and establishing a market discount rate and a terminal value. The most critical assumption affecting the estimate of the Edison Energy reporting unit's fair value was a reduction in forecasted growth of the businesses acquired at the end of 2015. During the fourth quarter of 2018, Edison International recorded an impairment of its Edison Energy reporting unit goodwill totaling $19 million ( $13 million after-tax). At December 31, 2018, Edison International has $59 million of goodwill, all of which is related to its Edison Energy reporting unit. Goodwill constitutes the majority of Edison International's $83 million investment in Edison Energy. During the second quarter of 2017, Edison International recorded an impairment of SoCore Energy's goodwill totaling $16.5 million ( $10 million after-tax). At December 31, 2017, goodwill was comprised of $78 million at the Edison Energy reporting unit and $5 million at the SoCore Energy reporting unit. SoCore Energy was sold in April 2018, as discussed above. Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2018 2017 Beginning balance $ 2,892 $ 2,586 Accretion 1 169 166 Revisions 110 376 Liabilities settled (140 ) (236 ) Ending balance $ 3,031 $ 2,892 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.8 billion as of December 31, 2018. The liability to decommission SCE's nuclear power facilities is based on a 2017 decommissioning study that was filed as part of the 2018 NDTCP for San Onofre Units 1, 2, and 3, with revisions to the cost estimate in 2018 for San Onofre Units 2 and 3 and a 2016 decommissioning study for Palo Verde, with revisions to the cost estimate in 2017. SCE revised the ARO for San Onofre Units 2 and 3 due to increases in decommissioning cost estimates in 2018, related to the impact of operational uncertainties, and in 2017, related to changes to onboarding the general contractor at San Onofre. The initial activity phase of radiological decommissioning of San Onofre Units 2 and 3 began in June 2013 with SCE filing a certification of permanent cessation of power operations at San Onofre with the Nuclear Regulatory Commission and some spent nuclear fuel was transferred to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") between 2007 and 2012. The transfer of the remaining spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. However, the spent fuel transfer operations were suspended on August 3, 2018 due to an incident that occurred when an SCE contractor was loading a spent fuel canister into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the ISFSI. SCE cannot predict when fuel transfer operations at San Onofre will recommence. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets, and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.2 billion through 2079 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.2% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 2.4% to 3.8% . Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceeding. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including other-than-temporary impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for other-than-temporary impairment on the last day of each month. If the fair value on the last day of two consecutive months is less than the cost for that security, SCE recognizes a loss for the other-than-temporary impairment. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. SCE had unamortized losses on reacquired debt of $153 million and $168 million at December 31, 2018 and 2017 , respectively, reflected as long-term "Regulatory assets" in the consolidated balance sheets. Edison International and SCE had unamortized debt issuance costs related to issuances under the credit facilities of $10 million and $8 million at December 31, 2018 , respectively, and $15 million and $7 million at December 31, 2017 , respectively, reflected in "Other long-term assets" on the consolidated balance sheets. In addition, Edison International and SCE had debt issuance costs related to issuances of long-term debt of $102 million and $93 million at December 31, 2018 , respectively, and $88 million and $77 million at December 31, 2017 , respectively, reflected as a reduction of "Long-term debt" on the consolidated balance sheets. Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Amortization of deferred financing costs charged to interest expense $ 30 $ 30 $ 31 $ 26 $ 27 $ 27 Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. SCE's GRC proceeding, for the three -year period 2018 – 2020, is pending. SCE has requested a revenue requirement of $5.534 billion for its test year of 2018, a $106 million decrease from the 2017 GRC authorized revenue requirement, and revenue requirements for the post-test years of 2019 and 2020 of $5.965 billion and $6.468 billion , respectively. In the absence of a 2018 GRC decision, SCE recognized revenue in 2018 and is recognizing revenue in 2019 based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and Tax Reform. The CPUC has approved the establishment of a GRC memorandum account and the 2018 and 2019 revenue requirements adopted by the CPUC will be effective as of January 1, 2018 and January 1, 2019, respectively. The amounts billed to customers for the year ended December 31, 2018 were based on the 2017 authorized revenue requirement and a regulatory liability has been established to record the associated adjustments. See Note 11 for further details. SCE accounts for regulatory decisions in the discrete period in which they are received and, accordingly, will record the impact of the 2018 GRC decision when a decision is received. 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. Pending resolution of the FERC formula rate proceeding, SCE is recognizing revenue based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue. Power Purchase Agreements SCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's PPAs resulted in consolidation of a VIE at December 31, 2018 and 2017 . See Note 3 for further discussion of PPAs that are considered variable interests. A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 for further discussion of SCE's PPAs, including agreements that are classified as operating and capital leases for accounting purposes. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These PPAs may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. PPAs that do not meet the above classifications are accounted for on an accrual basis. Derivative Instruments 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 normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases SCE enters into PPAs that may contain leases, as discussed under "Power Purchase Agreements" above. A PPA contains a lease when SCE purchases substantially all of the output from a specific plant and does not otherwise meet a fixed price per unit of output exception. SCE also enters into a number of agreements to lease property and equipment in the normal course of business, primarily related to vehicles, office space and other equipment. Minimum lease payments under SCE's operating leases for property and equipment are reflected in "Operation and maintenance" on the consolidated statements of income. Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards, which are recorded as part of retained earnings. Rather, a third party is used to purchase shares from the market and deliver such shares for the settlement of option exercises, performance shares, deferred stock units and restricted stock units. The performance shares awarded that are earned are settled solely in cash. Deferred stock units and restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period and is based on the number of awards that are expected to vest. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. For awards granted to retirement-eligible participants, stock compensation expenses are recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expenses are recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. Effective January 1, 2016, the excess tax benefits are classified as an operating activity along with other income tax cash flows on the statement of cash flows. 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. As allowed under the Revised San Onofre Settlement Agreement, which was approved by the CPUC in July 2018, SCE has excluded a $448 million after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure. See Note 12 for further information on the Revised San Onofre Settlement Agreement. At December 31, 2018 , SCE's 37 -month average common equity component of total capitalization was 49.7% and the maximum additional dividend that SCE could pay to Edison International under this limitation after paying preferred and preference shareholders was $459 million , resulting in a restriction on net assets of approximately $13.3 billion . 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 is submitting 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 is seeking 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 an |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2018 2017 Distribution $ 25,026 $ 23,633 Transmission 13,800 13,127 Generation 3,598 3,468 General plant and other 4,398 4,534 Accumulated depreciation (9,566 ) (9,355 ) 37,256 35,407 Construction work in progress 3,883 3,175 Nuclear fuel, at amortized cost 130 126 Total utility property, plant and equipment $ 41,269 $ 38,708 Capitalized Software Costs SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant, and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, primarily ranging from 5 to 7 years and commencing upon operational use. Capitalized software costs, included in general plant and other above, were $1.0 billion and $1.1 billion at December 31, 2018 and 2017, respectively, and accumulated amortization was $0.5 billion and $0.6 billion , at December 31, 2018 and 2017 , respectively. Amortization expense for capitalized software was $198 million , $233 million and $249 million in 2018 , 2017 and 2016 , respectively. At December 31, 2018 , amortization expense is estimated to be $180 million , $145 million , $107 million , $59 million and $20 million for 2019 through 2023 , respectively. Jointly Owned Utility Projects SCE owns undivided interests in several generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. The following is SCE's investment in each asset as of December 31, 2018 : (in millions) Plant in Service Construction Work in Progress Accumulated Depreciation Nuclear Fuel (at amortized cost) Net Book Value Ownership Interest Transmission systems: Eldorado $ 245 $ 13 $ 29 $ — $ 229 59 % Pacific Intertie 217 73 75 — 215 50 % Generating station: Palo Verde (nuclear) 2,024 63 1,567 130 650 16 % Total $ 2,486 $ 149 $ 1,671 $ 130 $ 1,094 In addition, SCE has ownership interests in jointly owned power poles with other companies. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities A 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 PPAs that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities that contain variable pricing provisions based on the price of natural gas. 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 amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its 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 12. 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 3,602 megawatts ("MW") and 4,898 MW at December 31, 2018 and 2017 , respectively, and the amounts that SCE paid to these projects were $762 million and $767 million for the years ended December 31, 2018 and 2017 , 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 (see Note 13 for further information). 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. SCE formed Trust I, a VIE, in 2012 for the exclusive purpose of issuing 5.625% trust preference securities. SCE Trust I issued trust securities in the face amounts of $475 million to the public and $10,000 of common stock to SCE. SCE Trust I invested the proceeds of these trust securities in Series F Preference Stock issued by SCE in the principal amount of $475 million . In July 2017, all of the outstanding Series F Preference Stock was redeemed, and accordingly, SCE Trust I redeemed $475 million of trust securities from the public and $10,000 of common stock from SCE. As a result in September 2017, SCE Trust I was terminated. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of December 31, 2018 and 2017 , 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: Years ended December 31, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2018 Dividend income * $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions * 20 16 17 16 24 2017 Dividend income $ 14 $ 20 $ 16 $ 17 $ 16 $ 12 Dividend distributions 14 20 16 17 16 12 2016 Dividend income $ 27 $ 20 $ 16 $ 17 $ 13 * Dividend distributions 27 20 16 17 13 * * Not applicable |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and 2017 , 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 the 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: December 31, 2018 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 32 $ 141 $ — $ 173 Other 9 21 — — 30 Nuclear decommissioning trusts: Stocks 2 1,382 — — — 1,382 Fixed Income 3 1,001 1,665 — — 2,666 Short-term investments, primarily cash equivalents 120 95 — — 215 Subtotal of nuclear decommissioning trusts 4 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 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 9 $ 102 $ (1 ) $ 110 Money market funds and other 495 — — — 495 Nuclear decommissioning trusts: Stocks 2 1,596 — — — 1,596 Fixed Income 3 1,065 1,665 — — 2,730 Short-term investments, primarily cash equivalents 101 72 — — 173 Subtotal of nuclear decommissioning trusts 4 2,762 1,737 — — 4,499 Total assets 3,257 1,746 102 (1 ) 5,104 Liabilities at fair value Derivative contracts — 2 1 (2 ) 1 Total liabilities — 2 1 (2 ) 1 Net assets $ 3,257 $ 1,744 $ 101 $ 1 $ 5,103 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% and 69% of SCE's equity investments were located in the United States at December 31, 2018 and 2017 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $67 million and $102 million at December 31, 2018 and 2017 , respectively. 4 Excludes net payables of $143 million and $59 million at December 31, 2018 and 2017 , 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 $115 million and $541 million at December 31, 2018 and 2017 , 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: December 31, (in millions) 2018 2017 Fair value of net assets (liabilities) at beginning of period $ 101 $ (1,089 ) Total realized/unrealized gains: Included in regulatory assets and liabilities 1 40 133 Contract amendment 2 — 143 Normal purchase and normal sale designation 3 — 914 Fair value of net assets at end of period $ 141 $ 101 Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ 138 $ 100 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 Represents a tolling contract that was amended during the second quarter of 2017, which was no longer accounted for as a derivative as of December 31, 2017. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities are amortized over the remaining contract terms. Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no material transfers between any levels during 2018 and 2017 . Valuation Techniques Used to Determine Fair Value The process of determining fair value is the responsibility of SCE's risk management department, which reports to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness. 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 Assets Liabilities Valuation Technique(s) Unobservable Input Range Congestion revenue rights December 31, 2018 $ 141 $ — Auction prices CAISO CRR auction clearing prices $(7.41) - $41.52 December 31, 2017 102 — Auction prices CAISO CRR auction clearing prices $(9.41) - $8.66 Level 3 Fair Value Sensitivity For CRRs, increases or decreases in CAISO auction price would result in higher or lower fair value, 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. SCE's investment policies and CPUC requirements place limitations on the types and investment grade ratings of the securities that may be held by the nuclear decommissioning trust funds. These policies restrict the trust funds from holding alternative investments and limit the trust funds' exposures to investments in highly illiquid markets. With respect to equity and fixed income securities, the trustee obtains prices from third-party pricing services which SCE is able to independently corroborate as described below. The trustee monitors prices supplied by pricing services, including reviewing prices against defined parameters' tolerances and performs research and resolves variances beyond the set parameters. SCE corroborates the fair values of securities by comparison to other market-based price sources obtained by SCE's investment managers. Differences outside established thresholds are followed-up with the trustee and resolved. For each reporting period, SCE reviews the trustee determined fair value hierarchy and overrides the trustee level classification when appropriate. Nonrecurring Fair Value Measurements Edison International assesses goodwill through an annual goodwill impairment test, at the reporting unit level as of October 1st of each year. The fair value of the Edison Energy reporting unit is classified as Level 3 and is estimated using the income approach. In October 2018, Edison International evaluated the recoverability of goodwill and recorded an impairment charge of Edison Energy's goodwill totaling $19 million ( $13 million after-tax) during the fourth quarter of 2018. See Note 1 for further details. 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: December 31, 2018 December 31, 2017 (in millions) Carrying Value 1 Fair Value 2 Carrying Value 1 Fair Value 2 Edison International $ 14,711 $ 14,844 $ 12,123 $ 13,760 SCE 12,971 13,180 10,907 12,547 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. |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt The following table summarizes long-term debt (rates and terms are as of December 31, 2018 ) of Edison International and SCE: December 31, (in millions) 2018 2017 Edison International Parent and Other: Debentures and notes: 2020 – 2028 (2.125% to 4.125%) $ 1,750 $ 1,200 Other long-term debt 1 — 29 Current portion of long-term debt — (2 ) Unamortized debt discount and issuance costs, net (10 ) (13 ) Total Edison International Parent and Other 1,740 1,214 SCE: First and refunding mortgage bonds: 2021 – 2048 (1.845% to 6.05%) 12,050 9,779 Pollution-control bonds: 2028 – 2035 (1.875% to 5.0%) 2 752 909 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 306 307 Current portion of long-term debt (79 ) (479 ) Unamortized debt discount and issuance costs, net (137 ) (88 ) Total SCE 12,892 10,428 Total Edison International $ 14,632 $ 11,642 1 Includes $ 29 million of long-term debt as of December 31, 2017 for SoCore Energy, which was sold in April 2018. See Note 1 for further details on the sale of SoCore Energy. 2 Balance as of December 31, 2017 excludes outstanding bonds due in 2031 that may be remarketed to investors in the future. These bonds were retired in April 2018. Edison International and SCE long-term debt maturities over the next five years are the following: (in millions) Edison International SCE 2019 $ 79 $ 79 2020 479 79 2021 1,029 1,029 2022 764 364 2023 1,300 900 Liens and Security Interests Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio to be less than or equal to 0.65 to 1. At December 31, 2018 , SCE was in compliance with this debt covenant and all other financial covenants that affect access to capital. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at December 31, 2018 : (in millions) Edison International Parent SCE Commitment $ 1,500 $ 3,000 Outstanding borrowings (excluding discount) — (721 ) Outstanding letters of credit — (190 ) Amount available $ 1,500 $ 2,089 In May 2018, SCE and Edison International Parent amended their multi-year revolving credit facilities to increase the facilities to $3.0 billion and $1.5 billion from $2.75 billion and $1.25 billion , respectively. Both facilities mature in May 2023 and have two 1-year extension options. 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. At December 31, 2018 , commercial paper, net of discount, was $720 million at a weighted-average interest rate of 3.23% . At December 31, 2018 , letters of credit issued under SCE's credit facility aggregated $190 million and are scheduled to expire in twelve months or less. At December 31, 2017 , the outstanding commercial paper, net of discount, was $738 million at a weighted-average interest rate of 1.75% . In December 2017, SCE borrowed $500 million from the credit facility which had an interest rate of 2.46% on December 31, 2017; this borrowing was repaid in January 2018 with cash on hand. At December 31, 2018 , Edison International Parent had no outstanding commercial paper. At December 31, 2017 , the outstanding commercial paper, net of discount, was $639 million at a weighted-average interest rate of 1.70% . In December 2017, Edison International borrowed $500 million from the credit facility which had an interest rate of 2.56% on December 31, 2017; this borrowing was repaid in January 2018 with cash on hand. Debt Financing Subsequent to December 31, 2018 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. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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 and $1 million as of December 31, 2018 and 2017 , respectively, for which SCE has posted collateral of $17 million and less than $1 million collateral to its counterparties at the respective dates for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2018 , SCE would be required to post less than $1 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: December 31, 2018 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term 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 December 31, 2017 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 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: Years ended December 31, (in millions) 2018 2017 2016 Realized gains (losses) $ 26 $ (14 ) $ (59 ) Unrealized gains 82 106 84 Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE economic hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2018 2017 Electricity options, swaps and forwards GWh 2,786 475 Natural gas options, swaps and forwards Bcf 20 143 Congestion revenue rights GWh 54,453 78,765 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Current and Deferred Taxes Edison International's sources of income before income taxes are: Years ended December 31, (in millions) 2018 2017 2016 (Loss) income from continuing operations before income taxes $ (1,089 ) $ 949 $ 1,590 Income from discontinued operations before income taxes — — 1 (Loss) income before income tax $ (1,089 ) $ 949 $ 1,591 The components of income tax (benefit) expense by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Current: Federal $ (57 ) $ (221 ) $ (46 ) $ (51 ) $ (253 ) $ 75 State (155 ) 4 33 (93 ) (81 ) 93 (212 ) (217 ) (13 ) (144 ) (334 ) 168 Deferred: Federal (386 ) 570 176 (354 ) 265 112 State (141 ) (72 ) 14 (198 ) 39 (24 ) (527 ) 498 190 (552 ) 304 88 Total continuing operations (739 ) 281 177 (696 ) (30 ) 256 Discontinued operations 1 (34 ) — (11 ) — — — Total $ (773 ) $ 281 $ 166 $ (696 ) $ (30 ) $ 256 1 In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below. The components of net accumulated deferred income tax liability are: Edison International SCE December 31, (in millions) 2018 2017 2018 2017 Deferred tax assets: Property and software related $ 399 $ 358 $ 388 $ 357 Wildfire reserve 1 709 — 709 — Nuclear decommissioning trust assets in excess of nuclear ARO liability 323 404 323 404 Loss and credit carryforwards 2 1,375 1,346 154 150 Regulatory asset 3 798 812 798 812 Pension and postretirement benefits other than pensions, net 171 178 46 50 Other 188 277 184 236 Sub-total 3,963 3,375 2,602 2,009 Less: valuation allowance 4 36 28 — — Total 3,927 3,347 2,602 2,009 Deferred tax liabilities: Property-related 7,497 6,970 7,497 6,962 Capitalized software costs 188 160 188 160 Regulatory liability 367 158 367 158 Nuclear decommissioning trust assets 323 404 323 404 Other 57 140 54 133 Total 8,432 7,832 8,429 7,817 Accumulated deferred income tax liability, net 5 $ 4,505 $ 4,485 $ 5,827 $ 5,808 1 Relates to a charge recorded for wildfire-related claims, net of expected recoveries from insurance and FERC customers. For further information, see Note 12. 2 As of December 31, 2018, deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $178 million and $97 million for Edison International and SCE, respectively. 3 Includes deferred tax asset of $788 million and $809 million , for December 31, 2018 and 2017, respectively, related to certain regulatory liabilities established as part of Tax Reform discussed below. 4 As of December 31, 2018 Edison International has recorded a valuation allowance of $ 32 million for non-California state net operating loss carryforwards and $4 million for California capital loss generated from sale of SoCore Energy in 2018, which are estimated to expire before being utilized. 5 Included in deferred income taxes and credits on the consolidated balance sheets. On December 22, 2017, Tax Reform was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21% and is generally effective beginning January 1, 2018. US GAAP requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. At the date of enactment, Edison International and SCE's deferred taxes were re-measured based upon the new tax rate. In December 2017, accumulated deferred income tax liabilities, net, were reduced by $4.5 billion and $5.0 billion at Edison International and SCE, respectively. Edison International recorded income tax expense of $466 million at December 31, 2017, primarily related to the re-measurement of the federal net operating loss carryforwards (see below for more information). In the absence of regulatory guidance specific to 2017 Tax Reform, SCE used judgment to interpret prior Commission decisions in determining which re-measurement amounts belong to customers and shareholders. Customer amounts were recorded to regulatory assets and liabilities. An income tax expense of $33 million was recorded for the re-measurement of deferred taxes attributable to shareholder-funded activities in 2017. Changes in the allocation of deferred tax re-measurement between customers and shareholders will be reflected in the financial statements and adjusted prospectively as information becomes available. The CPUC issued a ruling in January of 2019 that determined customers are only entitled to excess deferred taxes which were included in rate base, all other deferred tax re-measurement belongs to shareholders. As a result, an income tax benefit of approximately $70 million is expected to be recorded in the first quarter of 2019. In December 2017, SCE recorded estimated deferred taxes related to Tax Reform pertaining to the changes of bonus depreciation rules for property acquired and placed into service after September 27, 2017 . In August 2018, the Internal Revenue Service ("IRS") and United States Treasury Department issued proposed regulations which taxpayers may rely on when determining bonus depreciation for such property. The application of the proposed regulations had an immaterial impact on Edison International's and SCE's statements of income and balance sheets. Net Operating Loss and Tax Credit Carryforwards The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2018 (in millions) Loss Carryforwards Credit Carryforwards Loss Carryforwards Credit Carryforwards Expire between 2021 to 2038 $ 1,073 $ 469 $ 203 $ 26 No expiration date — 11 — 22 Total $ 1,073 $ 480 $ 203 $ 48 Edison International consolidates for federal income tax purposes, but not for financial accounting purposes, a group of wind projects referred to as Capistrano Wind. The amount of net operating loss and tax credit carryforwards recognized as part of deferred income taxes includes $212 million and $199 million related to Capistrano Wind at December 31, 2018 and 2017, respectively. Under a tax allocation agreement, Edison International has recorded a corresponding liability as part of other long-term liabilities related to its obligation to make payments to Capistrano Wind of these tax benefits when realized. 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: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 (Loss) income from continuing operations before income taxes $ (1,089 ) $ 949 $ 1,590 $ (885 ) $ 1,106 $ 1,755 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 (229 ) 332 556 (186 ) 387 614 Increase in income tax from: Items presented with related state income tax, net: State tax, net of federal benefit (168 ) 2 29 (155 ) 8 43 Property-related (275 ) (439 ) (362 ) (275 ) (439 ) (362 ) Change related to uncertain tax positions 2 (66 ) (18 ) (4 ) (71 ) (13 ) (8 ) Revised San Onofre Settlement Agreement 3 — 25 — — 25 — Share-based compensation 4 (2 ) (55 ) (28 ) (1 ) (11 ) (13 ) Deferred tax re-measurement 5 — 466 — — 33 — Other 1 (32 ) (14 ) (8 ) (20 ) (18 ) Total income tax (benefit) expense from continuing operations $ (739 ) $ 281 $ 177 $ (696 ) $ (30 ) $ 256 Effective tax rate (67.9 )% 29.6 % 11.1 % (78.6 )% (2.7 )% 14.6 % 1 Tax Reform reduced the federal corporate income tax rate from 35% to 21% , effective January 1, 2018. 2 In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below. 3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Settlement Agreement. See Note 12 for further information. 4 Includes state taxes of $(11) million and $(4) million for Edison International and $(2) million and $(1) million for SCE for the years ended December 31, 2017 and 2016, respectively. 5 In 2017, Edison International and SCE recorded a charge to earnings related to the re-measurement of deferred taxes resulting from Tax Reform. See further discussion above. 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. Accounting for Uncertainty in Income Taxes Authoritative guidance related to accounting for uncertainty in income taxes requires an enterprise to recognize, in its financial statements, the best estimate of the impact of a tax position by determining if the weight of available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained upon examination. The guidance requires the disclosure of all unrecognized tax benefits, which includes both the reserves recorded for tax positions on filed tax returns and the unrecognized portion of affirmative claims. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations: Edison International SCE December 31, (in millions) 2018 2017 2016 2018 2017 2016 Balance at January 1, $ 432 $ 471 $ 529 $ 331 $ 371 $ 353 Tax positions taken during the current year: Increases 41 51 36 42 51 36 Tax positions taken during a prior year: Increases — — 2 — — — Decreases 1 (108 ) (7 ) (96 ) (121 ) (13 ) (18 ) Decreases for settlements during the period 2 (27 ) (83 ) — (3 ) (78 ) — Balance at December 31, $ 338 $ 432 $ 471 $ 249 $ 331 $ 371 1 Decrease in 2018 was related to re-measurement as a result of a settlement with the California Franchise Tax Board for tax years 1994 – 2006. Decrease in 2016 was related to state tax receivables on various claims. Due to the tax risks associated with these claims, the tax benefits were fully reserved at the time the asset was recorded. During 2016, the Company determined that it will not recognize these assets, so the tax benefit and related tax reserve were written off. 2 In 2018, Edison International reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006. In 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 – 2012. See Tax Disputes below for further details. As of December 31, 2018 , 2017 and 2016, if recognized, $197 million , $308 million , and $347 million , respectively, of unrecognized tax benefits would impact Edison International's effective tax rate and $95 million , $167 million , and $243 million , respectively, of the unrecognized tax benefits would impact SCE's effective tax rate. Tax Disputes In 2017, Edison International settled all open tax positions with the IRS for tax years 2007 – 2012. Edison International has previously made cash deposits to cover the estimated tax and interest liability from this audit cycle and expects a $7 million refund of this deposited amount. Tax years that remain open for examination by the 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 reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006 and has updated its uncertain tax positions to reflect this settlement. This update resulted in income tax benefits of $103 million and $70 million at Edison International and SCE, respectively. Of the $103 million tax benefits, $34 million was related to Edison Mission Energy ("EME"), a legacy business of Edison International with no ongoing operations. Accordingly, the amounts of the settlement related to EME were recorded to discontinued operations. As a result of the settlement, Edison International expects a refund of tax and interest from the California Franchise Tax Board in the amount of $65 million . Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board. Accrued Interest and Penalties The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Accrued interest and penalties $ 37 $ 115 $ 6 $ 41 The net after-tax interest and penalties recognized in income tax (benefit) expense for continuing and discontinued operations are: Edison International SCE December 31, (in millions) 2018 2017 2016 2018 2017 2016 Net after-tax interest and penalties tax (benefit) expense $ (62 ) $ 6 $ 6 $ (25 ) $ 4 $ 2 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue • 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 revenues 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: Years ended December 31, 2018 2017 2016 (in millions) Earning Activities Cost- Recovery Activities Total Consolidated Earning Activities Cost-Recovery Activities Total Consolidated Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers 1,2 $ 6,519 $ 5,611 $ 12,130 * * * * * * Alternative revenue programs and other operating revenue 41 440 481 * * * * * * Total operating revenue $ 6,560 $ 6,051 $ 12,611 $ 6,611 $ 5,643 $ 12,254 $ 6,504 $ 5,326 $ 11,830 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. 1 During the year ended December 31, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. These revenue adjustments are included in "Revenues from contracts with customers." For further information, see Note 1. 2 At December 31, 2018 and 2017, SCE's receivables related to contracts from customers were $1.1 billion and $825 million , respectively, which include accrued unbilled revenue of $482 million and $212 million , respectively. SCE's Revenue from Contracts with Customers Provision of Electricity SCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Revenue is authorized by the CPUC through triennial GRC proceedings which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining two years are set by a methodology established in the GRC proceeding. As described above, SCE also earns revenue, with no return, to recover costs for power procurement and other activities. Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually. For SCE's electricity sales for non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity. Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis. Sales and Use Taxes SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. SCE's franchise fees billed to customers were $ 133 million , $133 million and $111 million for the years ended December 31, 2018, 2017 and 2016 , respectively. When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. SCE's Alternative Revenue Programs The CPUC and FERC have authorized additional, alternative revenue programs which adjusts billings for the effects of broad external factors or compensates SCE for demand-side management initiatives and provides for incentive awards if SCE achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred and, for incentive-based programs, at the time the awards are approved by the CPUC. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Employee Savings Plan The 401(k) defined contribution savings plan is designed to supplement employees' retirement income. The following employer contributions were made for continuing operations: Edison International SCE (in millions) Years ended December 31, 2018 $ 74 $ 74 2017 70 69 2016 69 68 Pension Plans and Postretirement Benefits Other Than Pensions Pension Plans Noncontributory defined benefit pension plans (some with cash balance features) cover most employees meeting minimum service requirements. SCE recognizes pension expense for its nonexecutive plan as calculated by the actuarial method used for ratemaking. The expected contributions (all by the employer) for Edison International and SCE are approximately $84 million and $57 million , respectively, for the year ending December 31, 2019 . Annual contributions made by SCE to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. The funded position of Edison International's pension is sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's pension are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, a regulatory asset has been recorded equal to the unfunded status (See Note 11). Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,179 $ 4,284 $ 3,702 $ 3,791 Service cost 126 137 121 129 Interest cost 141 164 124 144 Actuarial gain (280 ) (46 ) (273 ) (74 ) Benefits paid (286 ) (360 ) (243 ) (288 ) Projected benefit obligation at end of year $ 3,880 $ 4,179 $ 3,431 $ 3,702 Change in plan assets Fair value of plan assets at beginning of year $ 3,616 $ 3,388 $ 3,390 $ 3,172 Actual return on plan assets (86 ) 483 (86 ) 442 Employer contributions 77 105 52 64 Benefits paid (286 ) (360 ) (232 ) (288 ) Fair value of plan assets at end of year $ 3,321 $ 3,616 $ 3,124 $ 3,390 Funded status at end of year $ (559 ) $ (563 ) $ (307 ) $ (312 ) Amounts recognized in the consolidated balance sheets consist of 1 : Long-term assets $ 2 $ 7 $ — $ — Current liabilities (29 ) (17 ) (5 ) (4 ) Long-term liabilities (532 ) (553 ) (302 ) (308 ) $ (559 ) $ (563 ) $ (307 ) $ (312 ) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ (1 ) $ (1 ) $ — $ — Net loss 1 83 77 17 21 $ 82 $ 76 $ 17 $ 21 Amounts recognized as a regulatory asset 271 271 271 271 Total not yet recognized as expense $ 353 $ 347 $ 288 $ 292 Accumulated benefit obligation at end of year $ 3,753 $ 4,022 $ 3,342 $ 3,585 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 3,880 $ 4,179 $ 3,431 $ 3,702 Accumulated benefit obligation 3,753 4,022 3,342 3,585 Fair value of plan assets 3,321 3,616 3,124 3,390 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.19 % 3.46 % 4.19 % 3.46 % Rate of compensation increase 4.10 % 4.10 % 4.10 % 4.10 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $117 million and $114 million at December 31, 2018 and 2017 , respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $17 million and $21 million at December 31, 2018 and 2017 , respectively, excludes net loss of $21 million and $19 million related to these benefits. Net periodic pension expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 3 2016 3 2018 2017 3 2016 3 Service cost $ 126 $ 138 $ 139 $ 123 $ 133 $ 136 Non-service cost Interest cost 140 164 172 128 149 156 Expected return on plan assets (228 ) (212 ) (220 ) (214 ) (199 ) (205 ) Settlement costs 1 — 6 — — — — Amortization of prior service cost 3 3 4 3 3 4 Amortization of net loss 2 9 21 27 6 17 23 Regulatory adjustment (deferred) 15 (28 ) (21 ) 15 (28 ) (21 ) Total non-service benefit $ (61 ) $ (46 ) $ (38 ) $ (62 ) $ (58 ) $ (43 ) Total expense recognized $ 65 $ 92 $ 101 $ 61 $ 75 $ 93 1 Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $6.4 million ( $3.8 million after-tax) was recorded at Edison International for the year ended December 31, 2017. 2 Includes the amount of net loss reclassified from accumulated other comprehensive loss. The amount reclassified for Edison International was $9 million , $10 million and $10 million for the years ended December 31, 2018, 2017 and 2016, respectively. The amount reclassified for SCE was $6 million for all the years ended December 31, 2018, 2017 and 2016. 3 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Net loss $ 5 $ — $ 6 $ 5 $ 3 $ 4 Settlement charges — (6 ) — — — — Amortization of net loss (9 ) (10 ) (10 ) (6 ) (6 ) (6 ) Total recognized in other comprehensive loss $ (4 ) $ (16 ) $ (4 ) $ (1 ) $ (3 ) $ (2 ) Total recognized in expense and other comprehensive loss $ 61 $ 76 $ 97 $ 60 $ 72 $ 91 In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. The estimated pension amounts that will be amortized to expense in 2019 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net loss to be amortized 1 $ 8 $ 6 Unrecognized prior service cost to be amortized 2 2 1 The amount of net loss expected to be reclassified from accumulated other comprehensive loss for Edison International and SCE is $8 million and $6 million , respectively. Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations: Years ended December 31, 2018 2017 2016 Discount rate 3.46 % 3.94 % 4.18 % Rate of compensation increase 4.10 % 4.00 % 4.00 % Expected long-term return on plan assets 6.50 % 6.50 % 7.00 % The following benefit payments, which reflect expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2019 $ 342 $ 299 2020 323 289 2021 323 285 2022 313 281 2023 301 274 2024 – 2028 1,446 1,280 Postretirement Benefits Other Than Pensions ("PBOP(s)") Employees hired prior to December 31, 2017 who are retiring at or after age 55 with at least 10 years of service may be eligible for postretirement medical, dental, and vision benefits. Eligibility for a company contribution toward the cost of these benefits in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Under the terms of the Edison International Welfare Benefit Plan ("PBOP Plan"), each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP Plan benefits with respect to its employees and former employees that exceed the participants' share of contributions. A participating employer may terminate the PBOP Plan benefits with respect to its employees and former employees, as may SCE (as PBOP Plan sponsor), and, accordingly, the participants' PBOP Plan benefits are not vested benefits. The expected contributions (substantially all of which are expected to be made by SCE) for PBOP benefits are $23 million for the year ended December 31, 2019 . Annual contributions related to SCE employees made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans. SCE has three voluntary employees' beneficiary association trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE and its subsidiaries. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently recover remaining amounts in the VEBA Trusts. Participants of the PBOP Plan do not have a beneficial interest in the VEBA Trusts. The VEBA Trust assets are sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's other postretirement benefits are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, the unfunded status is offset by a regulatory asset. Information on PBOP Plan assets and benefit obligations is shown below: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 2,337 $ 2,276 $ 2,325 $ 2,266 Service cost 37 31 37 31 Interest cost 80 86 80 85 Special termination benefits — 1 — 1 Actuarial (gain) loss 1 (382 ) 24 (379 ) 23 Plan participants' contributions 28 24 28 24 Benefits paid (114 ) (105 ) (114 ) (105 ) Benefit obligation at end of year $ 1,986 $ 2,337 $ 1,977 $ 2,325 Change in plan assets Fair value of plan assets at beginning of year $ 2,330 $ 2,102 $ 2,330 $ 2,102 Actual return on assets (123 ) 297 (123 ) 297 Employer contributions 13 12 12 12 Plan participants' contributions 28 24 28 24 Benefits paid (115 ) (105 ) (114 ) (105 ) Fair value of plan assets at end of year $ 2,133 $ 2,330 $ 2,133 $ 2,330 Funded status at end of year $ 147 $ (7 ) $ 156 $ 5 Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 159 $ 6 $ 168 $ 17 Current liabilities (12 ) (13 ) (12 ) (12 ) Long-term liabilities — — — — $ 147 $ (7 ) $ 156 $ 5 Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 1 $ 4 $ — $ — Amounts recognized as a regulatory liability (185 ) (26 ) (185 ) (26 ) Total not yet recognized as income $ (184 ) $ (22 ) $ (185 ) $ (26 ) Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.35 % 3.70 % 4.35 % 3.70 % Assumed health care cost trend rates: Rate assumed for following year 6.75 % 6.75 % 6.75 % 6.75 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 2029 1 For Edison International and SCE, respectively, the 2018 actuarial gain is primarily related to $195 million and $194 million gain from an increase in discount rate (from 3.70% as of December 31, 2017 to 4.35% as of December 31, 2018) and $137 million and $135 million in experience gain. Net periodic PBOP expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2 2016 2 2018 2017 2 2016 2 Service cost $ 37 $ 31 $ 35 $ 37 $ 31 $ 34 Non-service cost Interest cost 80 86 97 80 85 97 Expected return on plan assets (121 ) (110 ) (112 ) (122 ) (110 ) (112 ) Special termination benefits 1 — 1 2 — 1 2 Amortization of prior service credit (1 ) (3 ) (2 ) (1 ) (2 ) (2 ) Regulatory adjustment (deferred) 24 — — 24 — — Total non-service benefit $ (18 ) $ (26 ) $ (15 ) $ (19 ) $ (26 ) $ (15 ) Total expense $ 19 $ 5 $ 20 $ 18 $ 5 $ 19 1 Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. 2 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. The estimated PBOP amounts that will be amortized to expense in 2019 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net gain to be amortized $ (3 ) $ (3 ) Unrecognized prior service credit to be amortized (1 ) (1 ) Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations: Years ended December 31, 2018 2017 2016 Discount rate 3.70 % 4.29 % 4.55 % Expected long-term return on plan assets 5.30 % 5.30 % 5.60 % Assumed health care cost trend rates: Current year 6.75 % 7.00 % 7.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2022 2022 A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations: Edison International SCE (in millions) One-Percentage-Point Increase One-Percentage-Point Decrease One-Percentage-Point Increase One-Percentage-Point Decrease Effect on accumulated benefit obligation as of December 31, 2018 $ 210 $ (173 ) $ 209 $ (172 ) Effect on annual aggregate service and interest costs 11 (9 ) 11 (9 ) The following benefit payments (net of plan participants' contributions) are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2019 $ 91 $ 91 2020 94 94 2021 97 97 2022 100 99 2023 103 102 2024 – 2028 553 550 Plan Assets Description of Pension and Postretirement Benefits Other than Pensions Investment Strategies The investment of plan assets is overseen by a fiduciary investment committee. Plan assets are invested using a combination of asset classes and may have active and passive investment strategies within asset classes. Target allocations for 2018 pension plan assets were 25% for U.S. equities, 17% for non-U.S. equities, 40% for fixed income, 12% for opportunistic and/or alternative investments and 6% for other investments. Target allocations for 2018 PBOP plan assets (except for Represented VEBA which is 85% for fixed income, 5% for opportunistic/private equities, and 10% global equities) are 58% for global equities, 29% for fixed income, and 13% for opportunistic and/or alternative investments. Edison International employs multiple investment management firms. Investment managers within each asset class cover a range of investment styles and approaches. Risk is managed through diversification among multiple asset classes, managers, styles and securities. Plan asset classes and individual manager performances are measured against targets. Edison International also monitors the stability of its investment managers' organizations. Allowable investment types include: • United States Equities: Common and preferred stocks of large, medium, and small companies which are predominantly United States-based. • Non-United States Equities: Equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies. • Fixed Income: Fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade. Opportunistic, Alternative and Other Investments: • Opportunistic: Investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. • Alternative: Limited partnerships that invest in non-publicly traded entities. • Other: Investments diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. Asset class portfolio weights are permitted to range within plus or minus 3% . Where approved by the fiduciary investment committee, futures contracts are used for portfolio rebalancing and to reallocate portfolio cash positions. Where authorized, a few of the plans' investment managers employ limited use of derivatives, including futures contracts, options, options on futures and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. Derivatives are not used to leverage the plans or any portfolios. Determination of the Expected Long-Term Rate of Return on Assets The overall expected long-term rate of return on assets assumption is based on the long-term target asset allocation for plan assets and capital markets return forecasts for asset classes employed. A portion of the PBOP trust asset returns are subject to taxation, so the expected long-term rate of return for these assets is determined on an after-tax basis. Capital Markets Return Forecasts SCE's capital markets return forecast methodologies primarily use a combination of historical market data, current market conditions, proprietary forecasting expertise, complex models to develop asset class return forecasts and a building block approach. The forecasts are developed using variables such as real risk-free interest, inflation, and asset class specific risk premiums. For equities, the risk premium is based on an assumed average equity risk premium of 5% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 2% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based on a comprehensive modeling of credit spreads. Fair Value of Plan Assets The PBOP Plan and the Southern California Edison Company Retirement Plan Trust ("Master Trust") assets include investments in equity securities, U.S. treasury securities, other fixed-income securities, common/collective funds, mutual funds, other investment entities, foreign exchange and interest rate contracts, and partnership/joint ventures. Equity securities, U.S. treasury securities, mutual and money market funds are classified as Level 1 as fair value is determined by observable, unadjusted quoted market prices in active or highly liquid and transparent markets. The fair value of the underlying investments in equity mutual funds are based on stock-exchange prices. The fair value of the underlying investments in fixed-income mutual funds and other fixed income securities including municipal bonds are 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. Foreign exchange and interest rate contracts are classified as Level 2 because the values are based on observable prices but are not traded on an exchange. Futures contracts trade on an exchange and therefore are classified as Level 1. Common/collective funds and partnerships are measured at fair value using the net asset value per share ("NAV") and have not been classified in the fair value hierarchy. Other investment entities are valued similarly to common/collective funds and are therefore classified as NAV. The Level 1 registered investment companies are either mutual or money market funds. The remaining funds in this category are readily redeemable and classified as NAV and are discussed further at Note 9 to the pension plan master trust investments table below. Edison International reviews the process/procedures of both the pricing services and the trustee to gain an understanding of the inputs/assumptions and valuation techniques used to price each asset type/class. The trustee and Edison International's validation procedures for pension and PBOP equity and fixed income securities are the same as the nuclear decommissioning trusts. For further discussion, see Note 4. The values of Level 1 mutual and money market funds are publicly quoted. The trustees obtain the values of common/collective and other investment funds from the fund managers. The values of partnerships are based on partnership valuation statements updated for cash flows. SCE's investment managers corroborate the trustee fair values. Pension Plan The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 110 $ 937 $ — $ — $ 1,047 Corporate stocks 3 473 6 — — 479 Corporate bonds 4 — 582 — — 582 Common/collective funds 5 — — — 426 426 Partnerships/joint ventures 6 — — — 434 434 Other investment entities 7 — — — 236 236 Registered investment companies 8 112 — — 2 114 Interest-bearing cash 2 — — — 2 Other — 73 — — 73 Total $ 697 $ 1,598 $ — $ 1,098 $ 3,393 Receivables and payables, net (72 ) Net plan assets available for benefits $ 3,321 SCE's share of net plan assets $ 3,124 The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 184 $ 507 $ — $ — $ 691 Corporate stocks 3 718 11 — — 729 Corporate bonds 4 — 676 — — 676 Common/collective funds 5 — — — 705 705 Partnerships/joint ventures 6 — — — 396 396 Other investment entities 7 — — — 262 262 Registered investment companies 8 140 — — — 140 Interest-bearing cash 9 — — — 9 Other — 106 — — 106 Total $ 1,051 $ 1,300 $ — $ 1,363 $ 3,714 Receivables and payables, net (98 ) Net plan assets available for benefits $ 3,616 SCE's share of net plan assets $ 3,390 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 3 Corporate stocks are diversified. At December 31, 2018 and 2017 , respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 43% ) and ( 54% ) and Morgan Stanley Capital International (MSCI) index ( 57% ) and ( 46% ). 4 Corporate bonds are diversified. At December 31, 2018 and 2017 , respectively, this category includes $60 million and $65 million for collateralized mortgage obligations and other asset backed securities. 5 At December 31, 2018 and 2017 , respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index ( 43% and 41% ) and Russell 1000 indexes ( 14% and 15% ). In addition, at December 31, 2018 and 2017 , respectively, 21% and 15% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 15% and 25% of this category are in non-index U.S. equity fund, which is actively managed. 6 At December 31, 2018 and 2017 , respectively, 50% and 55% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies, 30% and 20% are invested in a broad range of financial assets in all global markets, and 16% and 23% are invested in publicly traded fixed income securities. 7 Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. 8 Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. At December 31, 2018 and 2017 , respectively, approximately 61% and 67% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. Postretirement Benefits Other than Pensions The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 322 $ 49 $ — $ — $ 371 Corporate stocks 3 204 — — — 204 Corporate notes and bonds 4 — 832 — — 832 Common/collective funds 5 — — — 495 495 Partnerships 6 — — — 89 89 Registered investment companies 7 38 — — — 38 Interest bearing cash 22 — — — 22 Other 8 5 99 — — 104 Total $ 591 $ 980 $ — $ 584 $ 2,155 Receivables and payables, net (22 ) Combined net plan assets available for benefits $ 2,133 The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 398 $ 33 $ — $ — $ 431 Corporate stocks 3 254 — — — 254 Corporate notes and bonds 4 — 845 — — 845 Common/collective funds 5 — — — 569 569 Partnerships 6 — — — 82 82 Registered investment companies 7 37 — — — 37 Interest bearing cash 42 — — — 42 Other 8 5 84 — — 89 Total $ 736 $ 962 $ — $ 651 $ 2,349 Receivables and payables, net (19 ) Combined net plan assets available for benefits $ 2,330 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 3 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 67% and 64% ) and the MSCI All Country World Index ( 33% and 36% ) for 2018 and 2017 , respectively. 4 Corporate notes and bonds are diversified and include approximately $59 million and $36 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2018 and 2017 , respectively. 5 At December 31, 2018 and 2017 , respectively, 74% and 75% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and 19% and 17% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund. 6 At December 31, 2018 and 2017 , respectively, 48% and 56% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. 34% and 33% are invested in a broad range of financial assets in all global markets. 17% and 9% of the remaining partnerships category are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks. 7 At both December 31, 2018 and 2017 , registered investment companies were primarily invested in (1) a money market fund, (2) exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index, and international small cap equities. 8 Other includes $58 million and $60 million of municipal securities at December 31, 2018 and 2017 , respectively. At December 31, 2018 and 2017 , respectively, approximately 64% and 61% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. Stock-Based Compensation Edison International maintains a shareholder-approved incentive plan (the 2007 Performance Incentive Plan) that includes stock-based compensation. The maximum number of shares of Edison International's common stock authorized to be issued or transferred pursuant to awards under the 2007 Performance Incentive Plan, as amended, is 66 million shares, plus the number of any shares subject to awards issued under Edison International's prior plans and outstanding as of April 26, 2007, which expire, cancel or terminate without being exercised or shares being issued. As of December 31, 2018 , Edison International had approximately 28 million shares remaining available for new award grants under its stock-based compensation plans. The following table summarizes total expense and tax benefits associated with stock based compensation: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Stock-based compensation expense 1 : Stock options $ 11 $ 14 $ 14 $ 6 $ 8 $ 7 Performance shares 1 2 13 1 2 6 Restricted stock units 7 6 6 4 3 3 Other 2 1 1 — — — Total stock-based compensation expense $ 21 $ 23 $ 34 $ 11 $ 13 $ 16 Income tax benefits related to stock compensation expense $ 6 $ 72 $ 41 $ 3 $ 15 $ 20 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. Stock Options Under the 2007 Performance Incentive Plan, Edison International has granted stock options at exercise prices equal to the closing price at the grant date. Edison International may grant stock options and other awards related to, or with a value derived from, its common stock to directors and certain employees. Options generally expire 10 years after the grant date and vest over a period of four years of continuous service, with expense recognized evenly over the requisite service period, except for awards granted to retirement-eligible participants, as discussed in "Stock-Based Compensation" in Note 1. Additionally, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. The fair value for each option granted was determined as of the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires various assumptions noted in the following table: Years ended December 31, 2018 2017 2016 Expected terms (in years) 5.7 5.7 5.9 Risk-free interest rate 2.6% - 3.0% 2.1% - 2.3% 1.2% – 2.2% Expected dividend yield 3.6% - 4.3% 2.7% - 3.8% 2.5% – 3.0% Weighted-average expected dividend yield 3.8% 2.7% 2.9% Expected volatility 20.9% - 21.9% 17.8% - 20.9% 17.2% – 17.5% Weighted-average volatility 20.9% 17.9% 17.4% The expected term represents the period of time for which the options are expected to be outstanding and is primarily based on historical exercise and post-vesting cancellation experience |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
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 Date Amortized Cost Fair Value December 31, (in millions) 2018 2017 2018 2017 Stocks — * $ 236 $ 1,381 $ 1,596 Municipal bonds 2057 665 643 767 768 U.S. government and agency securities 2067 1,193 1,235 1,288 1,319 Corporate bonds 2050 573 579 611 643 Short-term investments and receivables/payables 1 One-year 70 110 73 114 Total $ 2,501 $ 2,803 $ 4,120 $ 4,440 * Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information. 1 Short-term investments include $71 million and $29 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 2, 2019 and January 2, 2018 as of December 31, 2018 and 2017 , respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $1.4 billion and $1.6 billion at December 31, 2018 and 2017 , respectively, and other-than-temporary impairments of $170 million and $143 million at the respective periods. Trust assets are used to pay income taxes. Deferred tax liabilities related to net unrealized gains at December 31, 2018 were $323 million . Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.8 billion at December 31, 2018 . The following table summarizes the gains and (losses) for the trust investments: December 31, (in millions) 2018 2017 2016 Gross realized gains $ 134 $ 244 $ 92 Gross realized losses (27 ) (23 ) (19 ) Net unrealized (losses) gains for equity securities (233 ) 142 75 Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Included in SCE's regulatory assets and liabilities are regulatory balancing accounts. CPUC authorized balancing account mechanisms require SCE to refund or recover any differences between forecasted and actual costs. The CPUC has authorized balancing accounts for specified costs or programs such as fuel, purchased-power, demand-side management programs, nuclear decommissioning and public purpose programs. Certain of these balancing accounts include a return on rate base of 7.61% and 7.90% in 2018 and 2017 , respectively. The CPUC authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales. Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts. Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: December 31, (in millions) 2018 2017 Current: Regulatory balancing accounts $ 814 $ 484 Power contracts 1 305 203 Other 14 16 Total current 1,133 703 Long-term: Deferred income taxes, net of liabilities 3,589 3,143 Pensions and other postretirement benefits 271 271 Power contracts 1 700 799 Unamortized investments, net of accumulated amortization 2 118 123 San Onofre 3 — 72 Unamortized loss on reacquired debt 153 168 Regulatory balancing accounts 360 143 Environmental remediation 134 144 Other 55 51 Total long-term 5,380 4,914 Total regulatory assets $ 6,513 $ 5,617 1 In 2018, SCE amended the termination date of two power purchase agreements. As a result of this amendment, SCE is required to make early termination payments of $100 million in 2019, $77 million in 2020 and $29 million in 2021, which were reflected as a regulatory asset in the consolidated balance sheets as of December 31, 2018 . 2 Relates to a regulatory asset that earns a rate of return. See below for further information. 3 In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset in 2017 and applied $72 million of the U.S. Department of Energy ("DOE") proceeds, previously reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset during the third quarter of 2018. See Note 12 for further information. SCE's regulatory assets related to power contracts primarily represent derivative contracts that were designated as normal purchase and normal sale contracts. The liabilities for these power contracts are amortized over the remaining contract terms, approximately 2 to 5 years. For further information, see Note 1. SCE's regulatory assets related to deferred income taxes represent tax benefits passed through to customers. The CPUC requires SCE to flow through certain deferred income tax benefits to customers by reducing electricity rates, thereby deferring recovery of such amounts to future periods. Based on current regulatory ratemaking and income tax laws, SCE expects to recover its regulatory assets related to deferred income taxes over the life of the assets that give rise to the accumulated deferred income taxes, approximately from 1 to 60 years. As a result of Tax Reform, SCE re-measured its deferred tax assets and liabilities as of December 31, 2017 . For further information, see Note 8. SCE's regulatory assets related to pensions and other post-retirement plans represent the unfunded net loss and prior service costs of the plans (see "Pension Plans and Postretirement Benefits Other than Pensions" discussion in Note 9). This amount is being recovered through rates charged to customers. SCE has long-term unamortized investments which include nuclear assets related to Palo Verde and the beyond the meter program. Nuclear assets related to Palo Verde and the beyond the meter program are expected to be recovered by 2047 and 2027 , respectively, and both earned returns of 7.61% in 2018 and 7.90% in 2017. SCE's net regulatory asset related to its unamortized loss on reacquired debt will be recovered over the original amortization period of the reacquired debt over periods ranging from 10 to 35 years or the life of the new issue if the debt is refunded or refinanced. SCE's regulatory assets related to environmental remediation represents a portion of the costs incurred at certain sites that SCE is allowed to recover through customer rates. See "Environmental Remediation" discussed in Note 12. Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: December 31, (in millions) 2018 2017 Current: Regulatory balancing accounts $ 1,080 $ 1,009 Energy derivatives 158 74 Other 1 294 38 Total current 1,532 1,121 Long-term: Costs of removal 2,769 2,741 Re-measurement of deferred taxes 2,776 2,892 Recoveries in excess of ARO liabilities 1,130 1,575 Regulatory balancing accounts 1,344 1,316 Other postretirement benefits 185 26 Other 1 125 64 Total long-term 8,329 8,614 Total regulatory liabilities $ 9,861 $ 9,735 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 primarily associated with these adjustments. The CPUC has authorized the establishment of a GRC memorandum account, which will make the 2018 revenue requirement ultimately adopted by the CPUC effective as of January 1, 2018. For further information, see Note 1. SCE's regulatory liabilities related to energy derivatives are primarily an offset to unrealized gains on derivatives. SCE's regulatory liabilities related to costs of removal represent differences between asset removal costs recorded and amounts collected in rates for those costs. As a result of Tax Reform, SCE's deferred tax assets and liabilities were re-measured at December 31, 2017 resulting in an increase in regulatory liabilities which is subject to change based on the outcome of the regulatory process. The regulatory liabilities are generally expected to be refunded to customers over the lives of the assets and liabilities that gave rise to the deferred taxes. For further information, see Note 8. SCE's regulatory liabilities related to recoveries in excess of ARO liabilities represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the 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 Balancing accounts track amounts that the CPUC or FERC have authorized for recovery. Balancing account over and under collections represent differences between cash collected in current rates for specified forecasted costs and such costs that are actually incurred. Undercollections are recorded as regulatory balancing account assets. Overcollections are recorded as regulatory balancing account liabilities. With some exceptions, SCE seeks to adjust rates on an annual basis or at other designated times to recover or refund the balances recorded in its balancing accounts. Memorandum accounts are authorized to track costs for potential future recovery. Regulatory balancing and memorandum accounts that SCE does not expect to collect or refund in the next 12 months are reflected in the long-term section of the consolidated balance sheets. Regulatory balancing and memorandum accounts that do not have the right of offset are presented gross in the consolidated balance sheets. Under and over collections in balancing accounts and amounts recorded in memorandum accounts typically accrue interest based on a three-month commercial paper rate published by the Federal Reserve. The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: December 31, (in millions) 2018 2017 Asset (liability) Energy resource recovery account 1 $ 815 $ 464 New system generation balancing account (74 ) (197 ) Public purpose programs and energy efficiency programs (1,200 ) (1,145 ) Base revenue requirement balancing account 2 (628 ) (200 ) Tax accounting memorandum account and pole loading balancing account 2 28 (259 ) DOE litigation memorandum account (69 ) (156 ) Greenhouse gas auction revenue and low carbon fuel standard revenue (81 ) (46 ) FERC balancing accounts (180 ) (205 ) Catastrophic event memorandum account 144 102 Wildfire expense memorandum account 3 128 — Other (133 ) (56 ) Liability $ (1,250 ) $ (1,698 ) 1 Energy resource recovery account ("ERRA") balancing account is subject to a trigger mechanism that allows SCE to request an expeditious rate change if the ERRA balancing account overcollection or undercollection either exceeds 5% of SCE's prior year generation rate revenue or exceeds 4% of SCE's prior year generation rate revenue and SCE does not expect the overcollection or undercollection to fall below 4% within 120 days. For 2019, the 4% and 5% trigger amounts are approximately $213 million and $266 million , respectively. SCE anticipates to recover the ERRA undercollection from customer in rates beginning in April 2019. For further information of ERRA trigger mechanism, see "Business—SCE—Overview of Ratemaking Process." 2 During 2018, $263 million of 2017 incremental tax benefits were reclassified from the tax accounting memorandum account to the base revenue requirement balancing account (to be refunded to customers in 2019). 3 During 2018, the CPUC established a wildfire expense memorandum account ("WEMA") to track wildfire-related costs including insurance premiums in excess of amounts that ultimately will be approved in the 2018 GRC decision. See Note 12 for further information. In February 2019, the CPUC approved recovery of $107 million of premiums related to a 12-month $300 million wildfire liability insurance policy purchased in December 2017. As a result of this decision, SCE expects to recover these costs in 2019. For further information, see Note 12. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Power Purchase Agreements SCE entered into various agreements to purchase power, electric capacity and other energy products. At December 31, 2018 , the undiscounted future expected minimum payments for the SCE PPAs (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows: (in millions) Total 2019 $ 2,562 2020 2,602 2021 2,570 2022 2,415 2023 2,185 Thereafter 23,855 Total future commitments $ 36,189 Additionally, SCE has executed contracts (including capacity reduction contracts) that have not met the critical contract provisions that would increase contractual obligations by $66 million in 2019, $176 million in 2020, $189 million in 2021, $184 million in 2022, $183 million in 2023 and $2.2 billion thereafter, if all critical contract provisions are completed. Costs incurred for PPAs were $3.8 billion in 2018, $3.6 billion in 2017 and $3.3 billion in 2016, which include costs associated with contracts with terms of less than one year. Certain PPAs that SCE entered into may be accounted for as leases. The following table shows the future minimum lease payments due under the contracts that are treated as operating and capital leases (these amounts are also included in the table above). Due to the inherent uncertainty associated with the reliability of the fuel source, expected purchases from most renewable energy contracts do not meet the definition of a minimum lease payment and have been excluded from the operating and capital lease table below but remain in the table above. The future minimum lease payments for capital leases are discounted to their present value in the table below using SCE's incremental borrowing rate at the inception of the leases. The amount of this discount is shown in the table below as the amount representing interest. (in millions) Operating Leases Capital Leases 2019 $ 148 $ 5 2020 124 6 2021 103 6 2022 79 6 2023 47 5 Thereafter 536 66 Total future commitments $ 1,037 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 1 $ 36 1 Includes two contracts with net commitments of $26 million that will commence in 2019. In 2018, SCE amended the termination date of two power purchase agreements, which are classified as operating leases. As a result of this amendment, future minimum payments for these operating leases, totaling $986 million , were removed from the table above. SCE is required to make early termination payments of $100 million in 2019, $77 million in 2020 and $29 million in 2021, which were included in the consolidated balance sheets as of December 31, 2018. Operating lease expense for PPAs was $2.3 billion in 2018 , and $2.3 billion in 2017 and $1.9 billion in 2016 (including contingent rents of $2.1 billion in 2018 , $1.8 billion in 2017 and $1.4 billion in 2016 ). Contingent rents for capital leases were $104 million in 2018, $99 million in 2017 and $109 million in 2016. 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. Other Lease Commitments The following summarizes the estimated minimum future commitments for Edison International's non-cancelable other operating leases (primarily related to vehicles, office space and other equipment related to SCE): (in millions) Total 2019 $ 42 2020 31 2021 27 2022 22 2023 17 Thereafter 101 Total future commitments $ 240 Operating lease expense for other leases were $57 million in 2018 , $59 million in 2017 and $68 million in 2016 . Certain leases on office facilities contain escalation clauses requiring annual increases in rent. The rentals payable under these leases may increase by a fixed amount each year, a percentage over base year, or the consumer price index. Other Commitments The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2019 2020 2021 2022 2023 Thereafter Total Other contractual obligations $ 79 $ 67 $ 46 $ 44 $ 35 $ 209 $ 480 Costs incurred for other commitments were $124 million in 2018 , $75 million in 2017 and $141 million in 2016 . SCE has fuel supply contracts for Palo Verde which require payment only if the fuel is made available for purchase. SCE also has commitments related to maintaining reliability and expanding SCE's transmission and distribution system. The table above does not include asset retirement obligations, which are discussed in Note 1. 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 December 31, 2018, 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 Approximately 35% of SCE's service territory is in areas identified as high fire risk by SCE. 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. 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 largest of the 2017 fires, known as the Thomas Fire, originated in Ventura County and burned acreage located in both Ventura and Santa Barbara Counties. The largest of the 2018 fires, known as the Woolsey Fire, originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to California Department of Forestry and Fire Protection ("CAL FIRE") information, the Thomas Fire burned over 280,000 acres, destroyed an estimated 1,063 structures, damaged an estimated 280 structures and resulted in two fatalities, while 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 December 31, 2018, SCE had incurred approximately $89 million of capital expenditures related to restoration of service resulting from the Thomas Fire and the Montecito Mudslides (as defined below) and $82 million resulting from the Woolsey Fire. As described below, multiple lawsuits related to the Thomas Fire and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas Fire-related 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 that SCE has responsibility for the Thomas Fire and that the Thomas Fire 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 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. Investigations into the causes of the Thomas Fire, the Montecito Mudslides and the Woolsey Fire (collectively, the "2017/2018 Wildfire/Mudslide Events") are ongoing and final determinations of liability, 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 charge to be accrued under accounting standards. Based on SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events 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 charge, before recoveries and taxes, of $4.7 billion 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 was $1.8 billion after-tax. This charge 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 Determining wildfire origin and cause is often a complex and time-consuming process and several investigations into the facts and circumstances of the Thomas and Woolsey Fires are believed to be ongoing. SCE has been advised that the origins and causes of these fires are being investigated by CAL FIRE and the Ventura County Fire Department. In connection with its investigation of the Thomas and Woolsey Fires, CAL FIRE has removed and retained certain of SCE's equipment that was located in the general vicinity of suspected areas of origin of each of the fires. SCE expects that the Ventura County Fire Department and/or CAL FIRE will ultimately issue reports concerning the departments’ findings of origin and cause for each of these fires but cannot predict when these reports will be released. It is SCE's understanding that these reports will not address the causes of the Montecito Mudslides. 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 investigations of CAL FIRE, the Ventura County Fire Department or the SED will be completed. Internal Review Thomas Fire SCE's internal review into the facts and circumstances of the Thomas Fire is complex and examines various matters including possible ignition points, the location of those ignition points, fire progression and the attribution of damages to fires with separate ignition points. 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 Thomas Fire litigation process, including SCE equipment that has been retained by CAL FIRE. Based on currently available information, SCE believes that the Thomas Fire had at least two separate ignition points, one near Koenigstein Road in the City of Santa Paula and the other in the Anlauf Canyon area of Ventura County. With respect to the Koenigstein Road ignition point, witnesses have reported that a fire ignited in the vicinity of an SCE power pole and SCE later learned of a downed electrical wire at this location. SCE believes that its equipment was associated with this ignition. CAL FIRE has removed SCE equipment that was located in the Koenigstein Road area and SCE has not been able to inspect it. SCE is continuing to assess the progression of the fire from the Koenigstein Road ignition point and the extent of damages that may be attributable to that ignition. At this time, based on available information, SCE has not determined whether the ignition in the Anlauf Canyon area involved SCE equipment. CAL FIRE has removed SCE equipment that was located in the Anlauf Canyon area and SCE has not been able to inspect it. Montecito Mudslides SCE's internal review also includes inquiry into whether the Thomas Fire proximately caused or contributed to the Montecito Mudslides, the source of ignition of the portion of the Thomas Fire that burned through 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 the source of ignition of the portion of the Thomas Fire that burned within 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 Fire 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 Fire 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 Fire and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been recommended for coordination 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 Fire 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 Fire and the Montecito Mudslides. In November 2018, a purported class action lawsuit alleging securities fraud and related claims was filed in the federal court against 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 board 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 "—Permanent Retirement of San Onofre" below. 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 ignition 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 charge 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 multiple ignition points, the potential for separate damages to be attributable to fires ignited at separate ignition points, 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 Fire 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 December 31, 2018, 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. The amount of the receivable is subject to change based on additional information. SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. 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. SCE will continue to evaluate the probability of recovery based on available evidence, including guidance that may be issued by the commission on Catastrophic Wildfire Cost and Recovery, and new 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. 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 charge accrued. At December 31, 2018, the 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. For the year-ended December 31, 2018, the income statements include the estimated losses (established at the lower end of the reasonably estimated range of expected losses), net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: (in millions) Year ended December 31, 2018 Charge for wildfire-related claims $ 4,669 Expected insurance recoveries (2,000 ) Expected revenue from FERC customers (135 ) Total pre-tax charge 2,534 Income tax benefit (709 ) Total after-tax charge $ 1,825 Waiver of CPUC Equity Ratio Requirement Under SCE's interpretation of the CPUC’s capital structure decisions, SCE is required to maintain a 48% equity ratio on average over a 37 -month period and to file an application for a waiver to the capital structure condition if an adverse financial event reduces its spot equity ratio below 47% . On February 28, 2019, SCE is submitting 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 is seeking 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. Current Wildfire Insurance Coverage SCE has approximately $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence, for events (including the Woolsey fire) during the period June 30, 2018 through May 31, 2019. If the $1 billion of insurance coverage is exhausted as a result of liabilities related to the Woolsey Fire, SCE has approximately $700 million of wildfire-specific insurance coverage for wildfire events during the period February 1, 2019 through May 31, 2019, subject to a self-insured retention of $10 million per occurrence and up to $15 million of co-insurance. SCE has also obtained $750 million of wildfire-specific insurance coverage for events that may occur during the period June 1, 2019 through June 30, 2020, subject to a self-insured retention of $10 million per occurrence and up to $115 million of co-insurance. SCE may obtain additional wildfire-specific insurance for this time period in the future. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in 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. SCE’s wildfire insurance expense, prior to any regulatory deferrals, totaled approximately $237 million during 2018. Based on policies currently in effect, SCE anticipates that its wildfire insurance expense, prior to any regulatory deferrals, will total approximately $321 million during 2019. Wildfire insurance expense will increase in 2019 if SCE obtains additional wildfire-specific insurance. As of December 31, 2018, SCE had a regulatory asset of $128 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. 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. Recovery of Wildfire-Related Costs California courts have previously found investor-owned utilities to be |
Preferred and Preference Stock
Preferred and Preference Stock of Utility | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Preferred and Preference Stock of Utility | Preferred and Preference Stock of Utility SCE's authorized shares are: $100 cumulative preferred – 12 million shares, $25 cumulative preferred – 24 million shares and preference with no par value – 50 million shares. SCE's outstanding shares are not subject to mandatory redemption. There are no dividends in arrears for the preferred or preference shares. Shares of SCE's preferred stock have liquidation and dividend preferences over shares of SCE's common stock and preference stock. See Note 1 for further information on dividend restrictions. All cumulative preferred shares are redeemable. When preferred shares are redeemed, the premiums paid, if any, are charged to common equity. No preferred shares were issued or redeemed in the years ended December 31, 2018 , 2017 and 2016 . There is no sinking fund requirement for redemptions or repurchases of preferred shares. Shares of SCE's preference stock rank junior to all of the preferred stock and senior to all common stock. Shares of SCE's preference stock are not convertible into shares of any other class or series of SCE's capital stock or any other security. There is no sinking fund requirement for redemptions or repurchases of preference shares. Preferred stock and preference stock is: Shares Redemption Dividends Declared per Share December 31, (in millions, except shares and per-share amounts) 2018 2017 Cumulative preferred stock $25 par value: 4.08% Series 650,000 $ 25.50 $ 1.020 $ 16 $ 16 4.24% Series 1,200,000 25.80 1.060 30 30 4.32% Series 1,653,429 28.75 1.080 41 41 4.78% Series 1,296,769 25.80 1.195 33 33 Preference stock No par value: 6.25% Series E (cumulative) 350,000 1,000.00 62.500 350 350 5.10% Series G (cumulative) 160,004 2,500.00 127.500 400 400 5.75% Series H (cumulative) 110,004 2,500.00 143.750 275 275 5.375% Series J (cumulative) 130,004 2,500.00 134.375 325 325 5.45% Series K (cumulative) 120,004 2,500.00 136.250 300 300 5.00% Series L (cumulative) 190,004 2,500.00 125.000 475 475 SCE's preferred and preference stock 2,245 2,245 Less issuance costs (52 ) (52 ) Edison International's preferred and preference stock of utility $ 2,193 $ 2,193 Shares of Series E preference stock issued in 2012 may be redeemed at par, in whole or in part, on or after February 1, 2022. Shares of Series G, H, J, K and L preference stock, issued in 2013 , 2014 , 2015, 2016 and 2017, respectively, may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, respectively, if certain changes in tax or investment company law or interpretation (or applicable rating agency equity credit criteria for Series L only) occur and certain other conditions are satisfied. On or after March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, SCE may redeem the Series G, H, J, K and L shares, respectively, at par, in whole or in part. For shares of Series H, J and K preference stock, distributions will accrue and be payable at a floating rate from and including March 15, 2024, September 15, 2025 and March 15, 2026, respectively. Shares of Series G, H, J, K and L preference stock were issued to SCE Trust II, SCE Trust III, SCE Trust IV, SCE Trust V and SCE Trust VI, respectively, special purpose entities formed to issue trust securities as discussed in Note 3. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Beginning balance $ (43 ) $ (53 ) $ (19 ) $ (20 ) Pension and PBOP – net gain (loss): Other comprehensive (loss) income before reclassifications (9 ) 3 (3 ) (2 ) Reclassified from accumulated other comprehensive loss 1 6 7 4 3 Other 2 (4 ) — (5 ) — Change (7 ) 10 (4 ) 1 Ending balance $ (50 ) $ (43 ) $ (23 ) $ (19 ) 1 These items are included in the computation of net periodic pension and PBOP expenses. See Note 9 for additional information. 2 Edison International and SCE recognized cumulative effect adjustments 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. See Note 1 for further information. |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other Income and Expenses Other income and expenses are as follows: Years ended December 31, (in millions) 2018 2017 2016 SCE other income and (expenses): Equity allowance for funds used during construction $ 104 $ 87 $ 74 Increase in cash surrender value of life insurance policies and life insurance benefits 36 42 39 Interest income 24 7 3 Net periodic benefit income – non-service components 81 51 35 Civic, political and related activities and donations (44 ) (34 ) (32 ) Other (7 ) (5 ) (5 ) Total SCE other income and (expenses) 194 148 114 Other (expenses) and income of Edison International Parent and Other: Net periodic benefit costs – non-service components (2 ) (14 ) (5 ) Other 5 (2 ) — Total Edison International other income and (expenses) $ 197 $ 132 $ 109 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information for continuing operations is: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Cash payments (receipts) for interest and taxes: Interest, net of amounts capitalized $ 595 $ 548 $ 504 $ 552 $ 509 $ 475 Tax (refunds) payments, net (135 ) 1 18 (57 ) 2 78 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 200 $ 197 $ 177 $ — $ 212 $ — Preferred and preference stock 12 12 12 12 12 12 SCE's accrued capital expenditures at December 31, 2018 , 2017 and 2016 were $594 million , $652 million , and $540 million , respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions Edison International and SCE provide and receive various services to and from its subsidiaries and affiliates. Services provided to Edison International by SCE are priced at fully loaded cost (i.e., direct cost of good or service and allocation of overhead cost). Specified administrative services such as payroll, employee benefit programs, all performed by Edison International or SCE employees, are shared among all affiliates of Edison International. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenue, operating expenses, total assets and number of employees). Edison International allocates various corporate administrative and general costs to SCE and other subsidiaries using established allocation factors. For the years ended December 31, 2018 and 2017, SCE purchased wildfire liability insurance for premiums of $22 million and $144 million , respectively, from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International. EIS fully reinsured the exposure for these policies through the commercial reinsurance market, with reinsurance limits and premiums equal to those of the insurance purchased by SCE. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows: December 31, (in millions) 2018 2017 Long-term insurance receivable due from affiliate $ 1,000 $ — Prepaid insurance 1 13 131 Current payables due to affiliate 2 4 3 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The amortization expense for prepaid insurance were $140 million and $13 million for the years ended December 31, 2018 and 2017, respectively. 2 Reflected in "Accounts payable" on SCE's consolidated balance sheets. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Edison International's quarterly financial data is as follows: 2018 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 12,657 $ 3,009 $ 4,269 $ 2,815 $ 2,564 Operating (loss) income 1 (552 ) (2,041 ) 739 420 330 (Loss) income from continuing operations (350 ) (1,434 ) 544 298 242 Income from discontinued operations, net 34 34 — — — Net (loss) income attributable to common shareholders (423 ) (1,430 ) 513 276 218 Basic (loss) earnings per share: Continuing operations $ (1.40 ) $ (4.49 ) $ 1.57 $ 0.85 $ 0.67 Discontinued operations 0.10 0.10 — — — Total $ (1.30 ) $ (4.39 ) $ 1.57 $ 0.85 $ 0.67 Diluted (loss) earnings per share: Continuing operations $ (1.40 ) $ (4.49 ) $ 1.57 $ 0.84 $ 0.67 Discontinued operations 0.10 0.10 — — — Total $ (1.30 ) $ (4.39 ) $ 1.57 $ 0.84 $ 0.67 Dividends declared per share 2.4275 0.6125 0.6050 0.6050 0.6050 1 In the fourth quarter of 2018, SCE recorded a charge of $2.5 billion for wildfire-related claims, net of expected recoveries from insurance and FERC customers. 2017 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 12,320 $ 3,220 $ 3,672 $ 2,965 $ 2,463 Operating income (loss) 1 1,456 (38 ) 553 470 471 Income (loss) from continuing operations 2,3 668 (534 ) 501 309 392 Income (loss) from discontinued operations, net — — — — — Net income (loss) attributable to common shareholders 565 (545 ) 470 278 362 Basic earnings (loss) per share: Continuing operations $ 1.73 $ (1.67 ) $ 1.44 $ 0.85 $ 1.11 Discontinued operations — — — — — Total $ 1.73 $ (1.67 ) $ 1.44 $ 0.85 $ 1.11 Diluted earnings (loss) per share: Continuing operations $ 1.72 $ (1.66 ) $ 1.43 $ 0.85 $ 1.10 Discontinued operations — — — — — Total $ 1.72 $ (1.66 ) $ 1.43 $ 0.85 $ 1.10 Dividends declared per share 2.2325 0.6050 0.5425 0.5425 0.5425 1 Expenses were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans. See Note 1 for further information. 2 In the fourth quarter of 2017, Edison International Parent and Other recorded a charge of $433 million related to the re-measurement of deferred taxes as a result of Tax Reform. 3 In the fourth quarter of 2017, SCE recorded an impairment charge of $716 million ( $448 million after-tax) related to the Revised San Onofre Settlement Agreement. SCE's quarterly financial data is as follows: 2018 (in millions) Total Fourth Third Second First Operating revenue $ 12,611 $ 2,994 $ 4,260 $ 2,803 $ 2,554 Operating (loss) income 1 (406 ) (2,013 ) 754 439 414 Net (loss) income (189 ) (1,399 ) 567 327 316 Net (loss) income available for common stock (310 ) (1,429 ) 536 297 286 Common dividends declared 576 — 264 100 212 1 In the fourth quarter of 2018, SCE recorded a charge of $2.5 billion for wildfire-related claims, net of expected recoveries from insurance and FERC customers. 2017 (in millions) Total Fourth Third Second First Operating revenue $ 12,254 $ 3,193 $ 3,652 $ 2,953 $ 2,456 Operating income (loss) 1 1,547 (28 ) 569 508 498 Net income (loss) 2 1,136 (79 ) 497 338 380 Net income (loss) available for common stock 1,012 (109 ) 465 307 349 Common dividends declared 785 212 191 191 191 1 Expenses were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans. See Note 1 for further information. 2 In the fourth quarter of 2017, SCE recorded an impairment charge of $716 million ( $448 million after-tax) related to the Revised San Onofre Settlement Agreement. Due to the seasonal nature of Edison International and SCE's business, a significant amount of revenue and earnings are recorded in the third quarter of each year. As a result of rounding, the total of the four quarters does not always equal the amount for the year. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent | EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED BALANCE SHEETS December 31, (in millions) 2018 2017 Assets: Cash and cash equivalents $ 97 $ 524 Other current assets 52 340 Total current assets 149 864 Investments in subsidiaries 12,521 13,659 Deferred income taxes 516 500 Other long-term assets 78 91 Total assets $ 13,264 $ 15,114 Liabilities and equity: Short-term debt $ — $ 1,139 Other current liabilities 498 467 Total current liabilities 498 1,606 Long-term debt 1,740 1,193 Other long-term liabilities 567 644 Total equity 10,459 11,671 Total liabilities and equity $ 13,264 $ 15,114 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2018 , 2017 and 2016 (in millions) 2018 2017 2016 Interest income from affiliates $ — $ — $ 6 Operating, interest and other expenses 98 92 86 Loss before equity in (loss) earnings of subsidiaries (98 ) (92 ) (80 ) Equity in (loss) earnings of subsidiaries (376 ) 739 1,337 (Loss) income before income taxes (474 ) 647 1,257 Income tax (benefit) expense (17 ) 82 (42 ) (Loss) income from continuing operations (457 ) 565 1,299 Income from discontinued operations, net of tax 34 — 12 Net (loss) income $ (423 ) $ 565 $ 1,311 CONDENSED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2018 , 2017 and 2016 (in millions) 2018 2017 2016 Net (loss) income $ (423 ) $ 565 $ 1,311 Other comprehensive (loss) income, net of tax (7 ) 10 3 Comprehensive (loss) income $ (430 ) $ 575 $ 1,314 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2018 , 2017 and 2016 (in millions) 2018 2017 2016 Net cash provided by operating activities $ 785 $ 462 $ 493 Cash flows from financing activities: Long-term debt issued 549 798 400 Long-term debt issuance costs (4 ) (5 ) (3 ) Long-term debt matured — (400 ) — Payable due to affiliates 13 8 34 Short-term debt financing, net (1,141 ) 600 (108 ) Payments for stock-based compensation (24 ) (260 ) (95 ) Receipts for stock-based compensation 14 144 51 Dividends paid (788 ) (707 ) (626 ) Net cash (used in) provided by financing activities (1,381 ) 178 (347 ) Capital contributions to affiliate (10 ) (122 ) (147 ) Dividends from affiliate 179 — — Net cash provided by (used in) investing activities: 169 (122 ) (147 ) Net (decrease) increase in cash and cash equivalents (427 ) 518 (1 ) Cash and cash equivalents, beginning of year 524 6 7 Cash and cash equivalents, end of year $ 97 $ 524 $ 6 Note 1. Basis of Presentation The accompanying condensed financial statements of Edison International Parent should be read in conjunction with the consolidated financial statements and notes thereto of Edison International and subsidiaries ("Registrant") included in this Form 10-K. Edison International's Parent significant accounting policies are consistent with those of the Registrant, SCE and other wholly owned and controlled subsidiaries. Dividends Received Edison International Parent received cash dividends from SCE of $788 million , $573 million and $701 million in 2018 , 2017 and 2016 , respectively. Dividend Restrictions 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. As allowed under the Revised San Onofre Settlement Agreement, which was approved by the CPUC in July 2018, SCE has excluded a $448 million after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure (see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Permanent Retirement of San Onofre" for further information on the Revised San Onofre Settlement Agreement). At December 31, 2018 , SCE's 37 -month average common equity component of total capitalization was 49.7% and the maximum additional dividend that SCE could pay to Edison International under this limitation after paying preferred and preference shareholders was $459 million , resulting in a restriction on net assets of approximately $13.3 billion . 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 is submitting 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 is seeking 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 1. Summary of Significant Accounting Policies—SCE Dividends." Note 2. Debt and Credit Agreements Long-Term Debt In January 2018, Edison International Parent borrowed $500 million under a Term Loan Agreement due in January 2019 , with a variable interest rate based on the London Interbank Offered Rate plus 60 basis points. The proceeds were used to repay Edison International Parent's commercial paper borrowings. In March 2018, Edison International Parent issued $550 million of 4.125% senior notes due in 2028 . The proceeds from the March 2018 issuance were used to repay the $500 million Term Loan discussed above and for general corporate purposes. In addition, at December 31, 2018 and 2017 , Edison International Parent had $400 million of 2.125% senior notes due in 2020 , $400 million of 2.40% senior notes due in 2022 and $400 million of 2.95% senior notes due in 2023 . Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facility at December 31, 2018 : (in millions) Commitment $ 1,500 Outstanding borrowings — Amount available $ 1,500 In May 2018, Edison International Parent amended its multi-year revolving credit facility to increase the facility from $1.25 billion to $1.5 billion . The facility matures in May 2023 and has two 1-year extension options. At December 31, 2018 , Edison International Parent had no outstanding commercial paper. At December 31, 2017 , the outstanding commercial paper, net of discount, was $639 million at a weighted-average interest rate of 1.70% . The debt covenant in Edison International's credit facility requires a consolidated debt to total capitalization ratio of less than or equal to 0.70 to 1 . At December 31, 2018 , Edison International's consolidated debt to total capitalization ratio was 0.55 to 1 . Note 3. Related-Party Transactions Edison International's Parent expense from services provided by SCE was $2 million in 2018 , $3 million in 2017 and $3 million in 2016 . Edison International's Parent interest expense from loans due to affiliates was $5 million in 2018 , $5 million in 2017 and $3 million in 2016. Edison International Parent had current related-party receivables of $41 million and $256 million and current related-party payables of $249 million and $235 million at December 31, 2018 and 2017 , respectively. Edison International Parent had long-term related-party receivables of $73 million and $81 million at December 31, 2018 and 2017 , respectively, and long-term related-party payables of $213 million and $200 million at December 31, 2018 and 2017 , respectively. Note 4. Contingencies For a discussion of material contingencies see "Notes to Consolidated Financial Statements—Note 8. Income Taxes" and "—Note 12. Commitments and Contingencies." |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | EDISON INTERNATIONAL SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period For the Year ended December 31, 2018 Allowance for uncollectible accounts Customers $ 36.6 $ 19.0 $ — $ 23.6 $ 32.0 All others 17.3 16.2 — 14.0 19.5 Total allowance for uncollectible amounts $ 53.9 $ 35.2 $ — $ 37.6 a $ 51.5 Tax valuation allowance $ 28.0 $ — $ 8.0 c $ — $ 36.0 For the Year ended December 31, 2017 Allowance for uncollectible accounts Customers $ 41.2 $ 12.9 $ — $ 17.5 $ 36.6 All others 20.6 13.5 — 16.8 17.3 Total allowance for uncollectible amounts $ 61.8 $ 26.4 $ — $ 34.3 a $ 53.9 Tax valuation allowance $ 24.0 $ — $ 4.0 c $ — $ 28.0 For the Year ended December 31, 2016 Allowance for uncollectible accounts Customers $ 46.2 $ 17.7 $ — $ 22.7 $ 41.2 All others 15.5 15.9 — 10.8 20.6 Total allowance for uncollectible amounts $ 61.7 $ 33.6 $ — $ 33.5 a $ 61.8 Tax valuation allowance $ 32.0 $ — $ — $ 8.0 b $ 24.0 a Accounts written off, net. b In 2016, Edison International determined that $8 million of the assets subject to a valuation allowance had no expectation of recovery and were written off. c During 2018, Edison International recorded an additional valuation allowance of $4 million for non-California state net operating loss carryforwards and $4 million for California capital loss generated from the April 2018 sale of SoCore Energy, which are estimated to expire before being utilized. The additional valuation allowance in 2017 was a result of Tax Reform. SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period For the Year ended December 31, 2018 For the Year ended Customers $ 36.0 $ 18.9 $ — $ 23.3 $ 31.6 All others 17.3 16.2 — 14.0 19.5 Total allowance for uncollectible accounts $ 53.3 $ 35.1 $ — $ 37.3 a $ 51.1 For the Year ended December 31, 2017 Allowance for uncollectible accounts Customers $ 40.5 $ 12.9 $ — $ 17.4 $ 36.0 All others 20.6 13.5 — 16.8 17.3 Total allowance for uncollectible accounts $ 61.1 $ 26.4 $ — $ 34.2 a $ 53.3 For the Year ended December 31, 2016 Allowance for uncollectible accounts Customers $ 46.2 $ 17.0 $ — $ 22.7 $ 40.5 All others 15.5 15.9 — 10.8 20.6 Total allowance for uncollectible accounts $ 61.7 $ 32.9 $ — $ 33.5 a $ 61.1 a Accounts written off, net. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 customer. 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 accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 11 for composition of regulatory assets and liabilities. |
Use of Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. |
Cash Equivalents and Restricted 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 December 31, (in millions) 2018 2017 2018 2017 Money market funds $ 116 $ 1,024 $ 1 $ 483 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 December 31, (in millions) 2018 2017 2018 2017 Book balances reclassified to accounts payable $ 65 $ 64 $ 65 $ 63 Edison International's restricted cash at December 31, 2018 and 2017 were $8 million and $41 million , respectively. Restricted cash at December 31, 2017 primarily relates to funds held by SoCore Energy and its consolidated affiliates pursuant to project financing or purchase agreements, most of which lapsed before June 30, 2018. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts Allowances for uncollectible accounts are provided based upon a variety of factors, including historical amounts written-off, current economic conditions and assessment of customer collectability. |
Inventory | Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at average cost. |
Emission Allowances and Energy Credits | Emission Allowances and Energy Credits SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted-average cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives (authorized by the CPUC in the 2015 GRC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful Lives Weighted-Average Useful Lives Generation plant 10 years to 54 years 37 years Distribution plant 20 years to 60 years 43 years Transmission plant 40 years to 65 years 52 years General plant and other 5 years to 60 years 22 years Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $1.65 billion , $1.61 billion and $1.52 billion for 2018 , 2017 and 2016 , respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.7% , 3.8% and 3.8% for 2018 , 2017 and 2016 , respectively. The original costs of retired property is charged to accumulated depreciation. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $104 million , $87 million and $74 million in 2018 , 2017 and 2016 , respectively, and is reflected in "Other income and expenses." AFUDC debt was $44 million , $28 million and $23 million in 2018 , 2017 and 2016 , respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's power plant facilities and equipment are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income based valuation techniques, as appropriate. Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. |
Goodwill | Goodwill Edison International assesses goodwill through an annual goodwill impairment test, at the reporting unit level as of October 1st of each year. Edison International updates its goodwill impairment test between annual tests if events occur or circumstances change such that it is more likely than not that the fair value of a reporting unit is below its carrying value. In assessing goodwill for impairment, Edison International may perform a qualitative assessment to determine whether a quantitative assessment is necessary. In performing a qualitative assessment, Edison International assesses, among other things, macroeconomic conditions, industry and market considerations, overall financial performance, cost factors and entity-specific events. If, after assessing these qualitative factors, Edison International determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then Edison International performs the two-step goodwill impairment test ("quantitative assessment"). |
Nuclear Decommissioning and Asset Retirement Obligations | Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. SCE adjusts its nuclear decommissioning obligation into a nuclear-related ARO regulatory asset and also records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2018 2017 Beginning balance $ 2,892 $ 2,586 Accretion 1 169 166 Revisions 110 376 Liabilities settled (140 ) (236 ) Ending balance $ 3,031 $ 2,892 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.8 billion as of December 31, 2018. The liability to decommission SCE's nuclear power facilities is based on a 2017 decommissioning study that was filed as part of the 2018 NDTCP for San Onofre Units 1, 2, and 3, with revisions to the cost estimate in 2018 for San Onofre Units 2 and 3 and a 2016 decommissioning study for Palo Verde, with revisions to the cost estimate in 2017. SCE revised the ARO for San Onofre Units 2 and 3 due to increases in decommissioning cost estimates in 2018, related to the impact of operational uncertainties, and in 2017, related to changes to onboarding the general contractor at San Onofre. The initial activity phase of radiological decommissioning of San Onofre Units 2 and 3 began in June 2013 with SCE filing a certification of permanent cessation of power operations at San Onofre with the Nuclear Regulatory Commission and some spent nuclear fuel was transferred to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") between 2007 and 2012. The transfer of the remaining spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. However, the spent fuel transfer operations were suspended on August 3, 2018 due to an incident that occurred when an SCE contractor was loading a spent fuel canister into the ISFSI. The incident did not result in any harm to the public or workers and the canister was subsequently safely loaded into the ISFSI. SCE cannot predict when fuel transfer operations at San Onofre will recommence. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets, and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $7.2 billion through 2079 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 2.2% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 2.4% to 3.8% . Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceeding. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including other-than-temporary impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for other-than-temporary impairment on the last day of each month. If the fair value on the last day of two consecutive months is less than the cost for that security, SCE recognizes a loss for the other-than-temporary impairment. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. |
Deferred Financing Costs | Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. |
Revenue Recognition | Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. SCE's GRC proceeding, for the three -year period 2018 – 2020, is pending. SCE has requested a revenue requirement of $5.534 billion for its test year of 2018, a $106 million decrease from the 2017 GRC authorized revenue requirement, and revenue requirements for the post-test years of 2019 and 2020 of $5.965 billion and $6.468 billion , respectively. In the absence of a 2018 GRC decision, SCE recognized revenue in 2018 and is recognizing revenue in 2019 based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and Tax Reform. The CPUC has approved the establishment of a GRC memorandum account and the 2018 and 2019 revenue requirements adopted by the CPUC will be effective as of January 1, 2018 and January 1, 2019, respectively. The amounts billed to customers for the year ended December 31, 2018 were based on the 2017 authorized revenue requirement and a regulatory liability has been established to record the associated adjustments. See Note 11 for further details. SCE accounts for regulatory decisions in the discrete period in which they are received and, accordingly, will record the impact of the 2018 GRC decision when a decision is received. 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. Pending resolution of the FERC formula rate proceeding, SCE is recognizing revenue based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. See Note 7 for further information on SCE's revenue. |
Power Purchase Agreements | Power Purchase Agreements SCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's PPAs resulted in consolidation of a VIE at December 31, 2018 and 2017 . See Note 3 for further discussion of PPAs that are considered variable interests. A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 for further discussion of SCE's PPAs, including agreements that are classified as operating and capital leases for accounting purposes. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These PPAs may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. PPAs that do not meet the above classifications are accounted for on an accrual basis. |
Derivatives Instruments | Derivative Instruments 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 normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities will be amortized over the remaining contract terms. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. |
Leases | Leases SCE enters into PPAs that may contain leases, as discussed under "Power Purchase Agreements" above. A PPA contains a lease when SCE purchases substantially all of the output from a specific plant and does not otherwise meet a fixed price per unit of output exception. SCE also enters into a number of agreements to lease property and equipment in the normal course of business, primarily related to vehicles, office space and other equipment. Minimum lease payments under SCE's operating leases for property and equipment are reflected in "Operation and maintenance" on the consolidated statements of income. |
Stock-Based Compensation | Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. Generally, Edison International does not issue new common stock for settlement of equity awards, which are recorded as part of retained earnings. Rather, a third party is used to purchase shares from the market and deliver such shares for the settlement of option exercises, performance shares, deferred stock units and restricted stock units. The performance shares awarded that are earned are settled solely in cash. Deferred stock units and restricted stock units are settled in common stock; however, Edison International will substitute cash awards to the extent necessary to pay tax withholding or any government levies. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period and is based on the number of awards that are expected to vest. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. For awards granted to retirement-eligible participants, stock compensation expenses are recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expenses are recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Under new accounting guidance adopted in 2016, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. |
SCE Dividend Restrictions | 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. |
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, which earn dividend equivalents on an equal basis with common shares once the awards are vested. |
Income Taxes | Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. In December 2017, the Tax Cuts and Jobs Act ("Tax Reform") was signed into law. This comprehensive reform of tax law reduces the federal corporate income tax rate from 35% to 21% which resulted in the re-measurement of deferred taxes using the new tax rate. See Note 8 for further information. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Investment tax credits are deferred and amortized to income tax expense over the lives of the properties or the term of the power purchase agreement of the respective project. Interest income, interest expense and penalties associated with income taxes are reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of equity ownership in an entity that is not attributable to the equity holders of Edison International. Noncontrolling interests held by third parties that have rights to put their ownership back to a subsidiary of Edison International are classified outside shareholders' equity as redeemable noncontrolling interest. Noncontrolling interest is initially recorded at fair value and is subsequently adjusted for income allocated to the noncontrolling interest and any distributions paid to the noncontrolling interest. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on revenue recognition and further amended the standard in 2016 and 2017. Under the new standard, revenue is recognized when a good or service is transferred to the customer and the customer obtains control of the good or service. Some revenue arrangements, such as alternative revenue programs which include balancing account overcollections and undercollections, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenue recognized from contracts with customers in the disclosures. Edison International and SCE adopted this standard effective January 1, 2018, using the modified retrospective method for contracts that were not completed as of the adoption date. Edison International recognized a cumulative effect adjustment to increase the opening balance of retained earnings by approximately $5 million ( $7 million pre-tax) on January 1, 2018. This adjustment is related to variable consideration recognized at Edison Energy which is not subject to potential significant reversal and has no further performance obligations. See Note 7 for further details. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments, and further amended the guidance in 2018. Under the new guidance, equity investments (excluding those accounted for under the equity method or those that result in consolidation) are required to be measured at fair value, with changes in fair value recognized in net income. The new guidance also amends certain disclosure requirements associated with the fair value of financial instruments and requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial assets. Edison International and SCE adopted this guidance effective January 1, 2018. Edison International and SCE recognized a cumulative effect adjustment to increase the opening balance of retained earnings and accumulated other comprehensive loss by $5 million ( $8 million pre-tax) on January 1, 2018. See Edison International's and SCE's consolidated statements of changes in equity for further details. In August and November 2016, the FASB issued two accounting standards updates to clarify the presentation and classification of certain cash receipts and payments in the statement of cash flows and to require restricted cash to be presented with cash and cash equivalents in the statement of cash flows. Edison International and SCE adopted these standards effective January 1, 2018, using the retrospective approach. The adoption of these standards did not have a material impact on Edison International's and SCE's consolidated statement of cash flows. In March 2017, the FASB issued an accounting standards update on the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. Edison International and SCE adopted this guidance retrospectively with respect to the income statement presentation requirement and prospectively for the capitalization requirement, effective January 1, 2018. The adoption of this standard did not have a material impact on Edison International's and SCE's consolidated financial statements, but did result in the separate presentation of service costs as an operating expense and non-service costs within other income and expenses and the limitation of the capitalization of benefit costs to the service cost component. During the year ended December 31, 2017 and 2016, non-service benefits totaled $37 million and $30 million for Edison International, respectively, and $51 million and $35 million for SCE, respectively, which were reclassified from "Operation and maintenance" to "Other income and expenses." See Notes 9 and 15 for further details. Accounting Guidance Not Yet Adopted In February 2016, the FASB issued an accounting standards update related to lease accounting and further amended the standard in 2018. The new guidance is effective January 1, 2019. Under the new standard, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets and obtain all the economic benefits for a period of time in exchange for consideration. Lessees are required to recognize leases on the balance sheet as a right-of-use asset and a related lease liability, and classify the leases as either operating or finance. The liability will be equal to the present value of the lease payments. The asset will be based on the liability, subject to adjustments, such as lease incentives. SCE, as a regulated entity, is permitted to continue to recognize expense using the timing that conforms to the regulatory rate treatment. In accordance with the new guidance, Edison International and SCE will elect 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 assess whether existing land easements are or contain a lease. Edison International and SCE will adopt this guidance effective January 1, 2019, using the modified retrospective approach, for leases that existed as of the adoption date and will elect the optional transition method not to restate periods prior to the adoption date. The adoption of this standard is expected to increase right-of-use assets and lease liabilities in the consolidated balance sheets by approximately $1 billion as of January 1, 2019 for both Edison International and SCE. Edison International and SCE have implemented a new lease accounting system and are in the process of finalizing the impact this standard will have on the lease disclosures. The FASB issued an accounting standards update in June 2016, and further amended the guidance in November 2018, related to the impairment of financial instruments, effective January 1, 2020. The new guidance provides an impairment model, known as the current expected credit loss model, which is based on expected credit losses rather than incurred losses. 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 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 but the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE will adopt this guidance on January 1, 2019 and reclassify stranded tax effects of $10 million and $5 million , respectively, from accumulated other comprehensive income to retained earnings in the period of adoption. 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 two accounting standards updates to remove, modify, and add certain disclosure requirements related to fair value measurement and employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1, 2020 and 2021, respectively, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE December 31, (in millions) 2018 2017 2018 2017 Money market funds $ 116 $ 1,024 $ 1 $ 483 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 December 31, (in millions) 2018 2017 2018 2017 Book balances reclassified to accounts payable $ 65 $ 64 $ 65 $ 63 |
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) December 31, 2018 December 31, 2017 Edison International: Cash and cash equivalents $ 144 $ 1,091 Short-term restricted cash 1 8 40 Long-term restricted cash 2 — 1 Total cash, cash equivalents, and restricted cash $ 152 $ 1,132 SCE: Cash and cash equivalents $ 21 $ 515 Short-term restricted cash 1 1 — Total cash, cash equivalents, and restricted cash $ 22 $ 515 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Reflected in "Other long-term assets" on Edison International's consolidated balance sheets. |
Estimated Useful Lives (Authorized by the CPUC) and Weighted-Average Useful Lives of Property, Plant and Equipment | Estimated useful lives (authorized by the CPUC in the 2015 GRC) and weighted-average useful lives of SCE's property, plant and equipment, are as follows: Estimated Useful Lives Weighted-Average Useful Lives Generation plant 10 years to 54 years 37 years Distribution plant 20 years to 60 years 43 years Transmission plant 40 years to 65 years 52 years General plant and other 5 years to 60 years 22 years |
Reconciliation of the Changes in ARO Liability | The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2018 2017 Beginning balance $ 2,892 $ 2,586 Accretion 1 169 166 Revisions 110 376 Liabilities settled (140 ) (236 ) Ending balance $ 3,031 $ 2,892 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. |
Amortization of Deferred Financing Costs | Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Amortization of deferred financing costs charged to interest expense $ 30 $ 30 $ 31 $ 26 $ 27 $ 27 |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31, (in millions, except per-share amounts) 2018 2017 2016 Basic (loss) earnings per share – continuing operations: (Loss) income from continuing operations attributable to common shareholders $ (457 ) $ 565 $ 1,299 Participating securities dividends — — — (Loss) income from continuing operations available to common shareholders $ (457 ) $ 565 $ 1,299 Weighted average common shares outstanding 326 326 326 Basic (loss) earnings per share – continuing operations $ (1.40 ) $ 1.73 $ 3.99 Diluted (loss) earnings per share – continuing operations: (Loss) income from continuing operations attributable to common shareholders $ (457 ) $ 565 $ 1,299 Participating securities dividends — — — (Loss) income from continuing operations available to common shareholders $ (457 ) $ 565 $ 1,299 Income impact of assumed conversions — — 1 (Loss) income from continuing operations available to common shareholders and assumed conversions $ (457 ) $ 565 $ 1,300 Weighted average common shares outstanding 326 326 326 Incremental shares from assumed conversions 1 — 2 4 Adjusted weighted average shares – diluted 326 328 330 Diluted (loss) earnings per share – continuing operations $ (1.40 ) $ 1.72 $ 3.94 1 Due to the loss reported for the year ended December 31, 2018, incremental shares were not included as the effect would be antidilutive. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2018 2017 Distribution $ 25,026 $ 23,633 Transmission 13,800 13,127 Generation 3,598 3,468 General plant and other 4,398 4,534 Accumulated depreciation (9,566 ) (9,355 ) 37,256 35,407 Construction work in progress 3,883 3,175 Nuclear fuel, at amortized cost 130 126 Total utility property, plant and equipment $ 41,269 $ 38,708 |
Schedule of Jointly Owned Utility Projects | The following is SCE's investment in each asset as of December 31, 2018 : (in millions) Plant in Service Construction Work in Progress Accumulated Depreciation Nuclear Fuel (at amortized cost) Net Book Value Ownership Interest Transmission systems: Eldorado $ 245 $ 13 $ 29 $ — $ 229 59 % Pacific Intertie 217 73 75 — 215 50 % Generating station: Palo Verde (nuclear) 2,024 63 1,567 130 650 16 % Total $ 2,486 $ 149 $ 1,671 $ 130 $ 1,094 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity, Condensed Income Statement | The following table provides a summary of the trusts' income statements: Years ended December 31, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2018 Dividend income * $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions * 20 16 17 16 24 2017 Dividend income $ 14 $ 20 $ 16 $ 17 $ 16 $ 12 Dividend distributions 14 20 16 17 16 12 2016 Dividend income $ 27 $ 20 $ 16 $ 17 $ 13 * Dividend distributions 27 20 16 17 13 * * Not applicable |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, 2018 December 31, 2017 (in millions) Carrying Value 1 Fair Value 2 Carrying Value 1 Fair Value 2 Edison International $ 14,711 $ 14,844 $ 12,123 $ 13,760 SCE 12,971 13,180 10,907 12,547 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. |
SCE | |
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: December 31, 2018 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 32 $ 141 $ — $ 173 Other 9 21 — — 30 Nuclear decommissioning trusts: Stocks 2 1,382 — — — 1,382 Fixed Income 3 1,001 1,665 — — 2,666 Short-term investments, primarily cash equivalents 120 95 — — 215 Subtotal of nuclear decommissioning trusts 4 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 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 9 $ 102 $ (1 ) $ 110 Money market funds and other 495 — — — 495 Nuclear decommissioning trusts: Stocks 2 1,596 — — — 1,596 Fixed Income 3 1,065 1,665 — — 2,730 Short-term investments, primarily cash equivalents 101 72 — — 173 Subtotal of nuclear decommissioning trusts 4 2,762 1,737 — — 4,499 Total assets 3,257 1,746 102 (1 ) 5,104 Liabilities at fair value Derivative contracts — 2 1 (2 ) 1 Total liabilities — 2 1 (2 ) 1 Net assets $ 3,257 $ 1,744 $ 101 $ 1 $ 5,103 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% and 69% of SCE's equity investments were located in the United States at December 31, 2018 and 2017 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $67 million and $102 million at December 31, 2018 and 2017 , respectively. 4 Excludes net payables of $143 million and $59 million at December 31, 2018 and 2017 , 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: December 31, (in millions) 2018 2017 Fair value of net assets (liabilities) at beginning of period $ 101 $ (1,089 ) Total realized/unrealized gains: Included in regulatory assets and liabilities 1 40 133 Contract amendment 2 — 143 Normal purchase and normal sale designation 3 — 914 Fair value of net assets at end of period $ 141 $ 101 Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ 138 $ 100 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 Represents a tolling contract that was amended during the second quarter of 2017, which was no longer accounted for as a derivative as of December 31, 2017. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. These liabilities are amortized over the remaining contract terms. |
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 Assets Liabilities Valuation Technique(s) Unobservable Input Range Congestion revenue rights December 31, 2018 $ 141 $ — Auction prices CAISO CRR auction clearing prices $(7.41) - $41.52 December 31, 2017 102 — Auction prices CAISO CRR auction clearing prices $(9.41) - $8.66 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The following table summarizes long-term debt (rates and terms are as of December 31, 2018 ) of Edison International and SCE: December 31, (in millions) 2018 2017 Edison International Parent and Other: Debentures and notes: 2020 – 2028 (2.125% to 4.125%) $ 1,750 $ 1,200 Other long-term debt 1 — 29 Current portion of long-term debt — (2 ) Unamortized debt discount and issuance costs, net (10 ) (13 ) Total Edison International Parent and Other 1,740 1,214 SCE: First and refunding mortgage bonds: 2021 – 2048 (1.845% to 6.05%) 12,050 9,779 Pollution-control bonds: 2028 – 2035 (1.875% to 5.0%) 2 752 909 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 306 307 Current portion of long-term debt (79 ) (479 ) Unamortized debt discount and issuance costs, net (137 ) (88 ) Total SCE 12,892 10,428 Total Edison International $ 14,632 $ 11,642 1 Includes $ 29 million of long-term debt as of December 31, 2017 for SoCore Energy, which was sold in April 2018. See Note 1 for further details on the sale of SoCore Energy. 2 Balance as of December 31, 2017 excludes outstanding bonds due in 2031 that may be remarketed to investors in the future. These bonds were retired in April 2018. |
Long-term Debt Maturities | Edison International and SCE long-term debt maturities over the next five years are the following: (in millions) Edison International SCE 2019 $ 79 $ 79 2020 479 79 2021 1,029 1,029 2022 764 364 2023 1,300 900 |
Summary for Status of Credit Facilities | The following table summarizes the status of the credit facilities at December 31, 2018 : (in millions) Edison International Parent SCE Commitment $ 1,500 $ 3,000 Outstanding borrowings (excluding discount) — (721 ) Outstanding letters of credit — (190 ) Amount available $ 1,500 $ 2,089 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - SCE | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Liabilities in Statement of Financial Position, Fair Value | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: December 31, 2018 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term 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 December 31, 2017 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 |
Schedule of Derivative Assets in Statement of Financial Position, Fair Value | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: December 31, 2018 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term 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 December 31, 2017 Derivative Assets Derivative Liabilities Net Asset (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 |
Components of Economic Hedging Activity | The following table summarizes the components of SCE's economic hedging activity: Years ended December 31, (in millions) 2018 2017 2016 Realized gains (losses) $ 26 $ (14 ) $ (59 ) Unrealized gains 82 106 84 |
Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE economic hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2018 2017 Electricity options, swaps and forwards GWh 2,786 475 Natural gas options, swaps and forwards Bcf 20 143 Congestion revenue rights GWh 54,453 78,765 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Sources of Income (Loss) Before Income Taxes | Edison International's sources of income before income taxes are: Years ended December 31, (in millions) 2018 2017 2016 (Loss) income from continuing operations before income taxes $ (1,089 ) $ 949 $ 1,590 Income from discontinued operations before income taxes — — 1 (Loss) income before income tax $ (1,089 ) $ 949 $ 1,591 |
Components of Income Tax (Benefit) Expense by Location of Taxing Jurisdiction | The components of income tax (benefit) expense by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Current: Federal $ (57 ) $ (221 ) $ (46 ) $ (51 ) $ (253 ) $ 75 State (155 ) 4 33 (93 ) (81 ) 93 (212 ) (217 ) (13 ) (144 ) (334 ) 168 Deferred: Federal (386 ) 570 176 (354 ) 265 112 State (141 ) (72 ) 14 (198 ) 39 (24 ) (527 ) 498 190 (552 ) 304 88 Total continuing operations (739 ) 281 177 (696 ) (30 ) 256 Discontinued operations 1 (34 ) — (11 ) — — — Total $ (773 ) $ 281 $ 166 $ (696 ) $ (30 ) $ 256 1 In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below. |
Components of Net Accumulated Deferred Income Tax Liability | The components of net accumulated deferred income tax liability are: Edison International SCE December 31, (in millions) 2018 2017 2018 2017 Deferred tax assets: Property and software related $ 399 $ 358 $ 388 $ 357 Wildfire reserve 1 709 — 709 — Nuclear decommissioning trust assets in excess of nuclear ARO liability 323 404 323 404 Loss and credit carryforwards 2 1,375 1,346 154 150 Regulatory asset 3 798 812 798 812 Pension and postretirement benefits other than pensions, net 171 178 46 50 Other 188 277 184 236 Sub-total 3,963 3,375 2,602 2,009 Less: valuation allowance 4 36 28 — — Total 3,927 3,347 2,602 2,009 Deferred tax liabilities: Property-related 7,497 6,970 7,497 6,962 Capitalized software costs 188 160 188 160 Regulatory liability 367 158 367 158 Nuclear decommissioning trust assets 323 404 323 404 Other 57 140 54 133 Total 8,432 7,832 8,429 7,817 Accumulated deferred income tax liability, net 5 $ 4,505 $ 4,485 $ 5,827 $ 5,808 1 Relates to a charge recorded for wildfire-related claims, net of expected recoveries from insurance and FERC customers. For further information, see Note 12. 2 As of December 31, 2018, deferred tax assets for net operating loss and tax credit carryforwards are reduced by unrecognized tax benefits of $178 million and $97 million for Edison International and SCE, respectively. 3 Includes deferred tax asset of $788 million and $809 million , for December 31, 2018 and 2017, respectively, related to certain regulatory liabilities established as part of Tax Reform discussed below. 4 As of December 31, 2018 Edison International has recorded a valuation allowance of $ 32 million for non-California state net operating loss carryforwards and $4 million for California capital loss generated from sale of SoCore Energy in 2018, which are estimated to expire before being utilized. 5 Included in deferred income taxes and credits on the consolidated balance sheets. |
Summary of Net Operating Loss and Tax Credit Carryforwards | The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2018 (in millions) Loss Carryforwards Credit Carryforwards Loss Carryforwards Credit Carryforwards Expire between 2021 to 2038 $ 1,073 $ 469 $ 203 $ 26 No expiration date — 11 — 22 Total $ 1,073 $ 480 $ 203 $ 48 |
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: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 (Loss) income from continuing operations before income taxes $ (1,089 ) $ 949 $ 1,590 $ (885 ) $ 1,106 $ 1,755 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 (229 ) 332 556 (186 ) 387 614 Increase in income tax from: Items presented with related state income tax, net: State tax, net of federal benefit (168 ) 2 29 (155 ) 8 43 Property-related (275 ) (439 ) (362 ) (275 ) (439 ) (362 ) Change related to uncertain tax positions 2 (66 ) (18 ) (4 ) (71 ) (13 ) (8 ) Revised San Onofre Settlement Agreement 3 — 25 — — 25 — Share-based compensation 4 (2 ) (55 ) (28 ) (1 ) (11 ) (13 ) Deferred tax re-measurement 5 — 466 — — 33 — Other 1 (32 ) (14 ) (8 ) (20 ) (18 ) Total income tax (benefit) expense from continuing operations $ (739 ) $ 281 $ 177 $ (696 ) $ (30 ) $ 256 Effective tax rate (67.9 )% 29.6 % 11.1 % (78.6 )% (2.7 )% 14.6 % 1 Tax Reform reduced the federal corporate income tax rate from 35% to 21% , effective January 1, 2018. 2 In the fourth quarter of 2018, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board for tax years 1994 – 2006. See further discussion in Tax Disputes below. 3 Includes the write-off of an unrecovered tax regulatory asset related to the Revised San Onofre Settlement Agreement. See Note 12 for further information. 4 Includes state taxes of $(11) million and $(4) million for Edison International and $(2) million and $(1) million for SCE for the years ended December 31, 2017 and 2016, respectively. 5 In 2017, Edison International and SCE recorded a charge to earnings related to the re-measurement of deferred taxes resulting from Tax Reform. See further discussion above. |
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits for continuing and discontinued operations: Edison International SCE December 31, (in millions) 2018 2017 2016 2018 2017 2016 Balance at January 1, $ 432 $ 471 $ 529 $ 331 $ 371 $ 353 Tax positions taken during the current year: Increases 41 51 36 42 51 36 Tax positions taken during a prior year: Increases — — 2 — — — Decreases 1 (108 ) (7 ) (96 ) (121 ) (13 ) (18 ) Decreases for settlements during the period 2 (27 ) (83 ) — (3 ) (78 ) — Balance at December 31, $ 338 $ 432 $ 471 $ 249 $ 331 $ 371 1 Decrease in 2018 was related to re-measurement as a result of a settlement with the California Franchise Tax Board for tax years 1994 – 2006. Decrease in 2016 was related to state tax receivables on various claims. Due to the tax risks associated with these claims, the tax benefits were fully reserved at the time the asset was recorded. During 2016, the Company determined that it will not recognize these assets, so the tax benefit and related tax reserve were written off. 2 In 2018, Edison International reached a settlement with the California Franchise Tax Board for tax years 1994 – 2006. In 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 – 2012. See Tax Disputes below for further details. |
Schedule of Interest and Penalties Related to Income Tax Liabilities | The total amount of accrued interest and penalties related to income tax liabilities for continuing and discontinued operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Accrued interest and penalties $ 37 $ 115 $ 6 $ 41 The net after-tax interest and penalties recognized in income tax (benefit) expense for continuing and discontinued operations are: Edison International SCE December 31, (in millions) 2018 2017 2016 2018 2017 2016 Net after-tax interest and penalties tax (benefit) expense $ (62 ) $ 6 $ 6 $ (25 ) $ 4 $ 2 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue | The following table is a summary of SCE's revenue: Years ended December 31, 2018 2017 2016 (in millions) Earning Activities Cost- Recovery Activities Total Consolidated Earning Activities Cost-Recovery Activities Total Consolidated Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers 1,2 $ 6,519 $ 5,611 $ 12,130 * * * * * * Alternative revenue programs and other operating revenue 41 440 481 * * * * * * Total operating revenue $ 6,560 $ 6,051 $ 12,611 $ 6,611 $ 5,643 $ 12,254 $ 6,504 $ 5,326 $ 11,830 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. 1 During the year ended December 31, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. These revenue adjustments are included in "Revenues from contracts with customers." For further information, see Note 1. 2 At December 31, 2018 and 2017, SCE's receivables related to contracts from customers were $1.1 billion and $825 million , respectively, which include accrued unbilled revenue of $482 million and $212 million , respectively. |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Other Postretirement Benefits | |
Employee Savings Plan Employer Contributions | The following employer contributions were made for continuing operations: Edison International SCE (in millions) Years ended December 31, 2018 $ 74 $ 74 2017 70 69 2016 69 68 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes total expense and tax benefits associated with stock based compensation: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Stock-based compensation expense 1 : Stock options $ 11 $ 14 $ 14 $ 6 $ 8 $ 7 Performance shares 1 2 13 1 2 6 Restricted stock units 7 6 6 4 3 3 Other 2 1 1 — — — Total stock-based compensation expense $ 21 $ 23 $ 34 $ 11 $ 13 $ 16 Income tax benefits related to stock compensation expense $ 6 $ 72 $ 41 $ 3 $ 15 $ 20 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. |
Black-Sholes Option-Pricing Model Assumptions | The Black-Scholes option-pricing model requires various assumptions noted in the following table: Years ended December 31, 2018 2017 2016 Expected terms (in years) 5.7 5.7 5.9 Risk-free interest rate 2.6% - 3.0% 2.1% - 2.3% 1.2% – 2.2% Expected dividend yield 3.6% - 4.3% 2.7% - 3.8% 2.5% – 3.0% Weighted-average expected dividend yield 3.8% 2.7% 2.9% Expected volatility 20.9% - 21.9% 17.8% - 20.9% 17.2% – 17.5% Weighted-average volatility 20.9% 17.9% 17.4% |
Summary of Stock Options Activity | The following is a summary of the status of Edison International's stock options: Weighted-Average Stock options Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Edison International: Outstanding at December 31, 2017 7,822,565 $ 58.98 Granted 1,785,538 60.83 Forfeited or expired (222,392 ) 69.59 Exercised 1 (552,101 ) 47.33 Outstanding at December 31, 2018 8,833,610 59.81 6.13 Vested and expected to vest at December 31, 2018 8,726,445 59.76 6.10 $ 34 Exercisable at December 31, 2018 5,145,292 $ 54.77 4.74 $ 34 SCE: Outstanding at December 31, 2017 4,445,702 $ 56.46 Granted 960,240 60.86 Forfeited or expired (125,260 ) 68.90 Exercised 1 (288,302 ) 41.57 Transfers, net 44,805 55.74 Outstanding at December 31, 2018 5,037,185 57.84 5.79 Vested and expected to vest at December 31, 2018 4,982,445 57.77 5.75 $ 25 Exercisable at December 31, 2018 3,089,466 $ 52.15 4.33 $ 25 1 Edison International and SCE recognized tax benefits of $3 million and $2 million , respectively, from stock options exercised in 2018. |
Schedule of Unrecognized Compensation Expense | At December 31, 2018 , total unrecognized compensation cost related to stock options and the weighted-average period the cost is expected to be recognized are as follows: (in millions) Edison International SCE Unrecognized compensation cost, net of expected forfeitures $ 15 $ 8 Weighted-average period (in years) 2.4 2.2 |
Supplemental Data on Stock-based Compensation | Supplemental Data on Stock Options Edison International SCE Years ended December 31, (in millions, except per award amounts) 2018 2017 2016 2018 2017 2016 Stock options: Weighted average grant date fair value per option granted $ 8.21 $ 10.65 $ 7.38 $ 8.22 $ 10.63 $ 7.50 Fair value of options vested 14 11 11 7 5 5 Value of options exercised 10 126 84 7 29 41 |
Summary of Nonvested Share Activity | The following is a summary of the status of Edison International's nonvested performance shares: Shares Weighted-Average Fair Value Edison International: Nonvested at December 31, 2017 179,122 $ 63.85 Granted 119,345 Forfeited (51,281 ) Vested 1 (53,748 ) Nonvested at December 31, 2018 193,438 42.81 SCE: Nonvested at December 31, 2017 88,722 $ 64.01 Granted 64,335 Forfeited (27,331 ) Vested 1 (24,574 ) Affiliate transfers, net 706 Nonvested at December 31, 2018 101,858 42.96 1 Relates to performance shares that will be paid in 2019 as performance targets were met at December 31, 2018 . |
Summary of Nonvested Restricted Stock Units Activity | The following is a summary of the status of Edison International's nonvested restricted stock units: Edison International SCE Restricted Stock Units Weighted-Average Grant Date Fair Value Restricted Stock Units Weighted-Average Grant Date Fair Value Nonvested at December 31, 2017 303,051 $ 69.52 141,418 $ 69.96 Granted 120,606 60.83 64,919 60.87 Forfeited (8,225 ) 68.76 (7,973 ) 68.97 Vested (123,646 ) 64.43 (51,667 ) 64.07 Affiliate transfers, net — — 1,129 68.64 Nonvested at December 31, 2018 291,786 68.11 147,826 68.08 |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,179 $ 4,284 $ 3,702 $ 3,791 Service cost 126 137 121 129 Interest cost 141 164 124 144 Actuarial gain (280 ) (46 ) (273 ) (74 ) Benefits paid (286 ) (360 ) (243 ) (288 ) Projected benefit obligation at end of year $ 3,880 $ 4,179 $ 3,431 $ 3,702 Change in plan assets Fair value of plan assets at beginning of year $ 3,616 $ 3,388 $ 3,390 $ 3,172 Actual return on plan assets (86 ) 483 (86 ) 442 Employer contributions 77 105 52 64 Benefits paid (286 ) (360 ) (232 ) (288 ) Fair value of plan assets at end of year $ 3,321 $ 3,616 $ 3,124 $ 3,390 Funded status at end of year $ (559 ) $ (563 ) $ (307 ) $ (312 ) Amounts recognized in the consolidated balance sheets consist of 1 : Long-term assets $ 2 $ 7 $ — $ — Current liabilities (29 ) (17 ) (5 ) (4 ) Long-term liabilities (532 ) (553 ) (302 ) (308 ) $ (559 ) $ (563 ) $ (307 ) $ (312 ) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ (1 ) $ (1 ) $ — $ — Net loss 1 83 77 17 21 $ 82 $ 76 $ 17 $ 21 Amounts recognized as a regulatory asset 271 271 271 271 Total not yet recognized as expense $ 353 $ 347 $ 288 $ 292 Accumulated benefit obligation at end of year $ 3,753 $ 4,022 $ 3,342 $ 3,585 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation $ 3,880 $ 4,179 $ 3,431 $ 3,702 Accumulated benefit obligation 3,753 4,022 3,342 3,585 Fair value of plan assets 3,321 3,616 3,124 3,390 Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.19 % 3.46 % 4.19 % 3.46 % Rate of compensation increase 4.10 % 4.10 % 4.10 % 4.10 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $117 million and $114 million at December 31, 2018 and 2017 , respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $17 million and $21 million at December 31, 2018 and 2017 , respectively, excludes net loss of $21 million and $19 million related to these benefits. |
Expense Components for Plans | Net periodic pension expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 3 2016 3 2018 2017 3 2016 3 Service cost $ 126 $ 138 $ 139 $ 123 $ 133 $ 136 Non-service cost Interest cost 140 164 172 128 149 156 Expected return on plan assets (228 ) (212 ) (220 ) (214 ) (199 ) (205 ) Settlement costs 1 — 6 — — — — Amortization of prior service cost 3 3 4 3 3 4 Amortization of net loss 2 9 21 27 6 17 23 Regulatory adjustment (deferred) 15 (28 ) (21 ) 15 (28 ) (21 ) Total non-service benefit $ (61 ) $ (46 ) $ (38 ) $ (62 ) $ (58 ) $ (43 ) Total expense recognized $ 65 $ 92 $ 101 $ 61 $ 75 $ 93 1 Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $6.4 million ( $3.8 million after-tax) was recorded at Edison International for the year ended December 31, 2017. 2 Includes the amount of net loss reclassified from accumulated other comprehensive loss. The amount reclassified for Edison International was $9 million , $10 million and $10 million for the years ended December 31, 2018, 2017 and 2016, respectively. The amount reclassified for SCE was $6 million for all the years ended December 31, 2018, 2017 and 2016. 3 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other changes in pension plan assets and benefit obligations recognized in other comprehensive loss for continuing operations: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Net loss $ 5 $ — $ 6 $ 5 $ 3 $ 4 Settlement charges — (6 ) — — — — Amortization of net loss (9 ) (10 ) (10 ) (6 ) (6 ) (6 ) Total recognized in other comprehensive loss $ (4 ) $ (16 ) $ (4 ) $ (1 ) $ (3 ) $ (2 ) Total recognized in expense and other comprehensive loss $ 61 $ 76 $ 97 $ 60 $ 72 $ 91 |
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated pension amounts that will be amortized to expense in 2019 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net loss to be amortized 1 $ 8 $ 6 Unrecognized prior service cost to be amortized 2 2 1 The amount of net loss expected to be reclassified from accumulated other comprehensive loss for Edison International and SCE is $8 million and $6 million , respectively. |
Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine pension expense for continuing operations: Years ended December 31, 2018 2017 2016 Discount rate 3.46 % 3.94 % 4.18 % Rate of compensation increase 4.10 % 4.00 % 4.00 % Expected long-term return on plan assets 6.50 % 6.50 % 7.00 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2019 $ 342 $ 299 2020 323 289 2021 323 285 2022 313 281 2023 301 274 2024 – 2028 1,446 1,280 |
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels | The following table sets forth the Master Trust investments for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 110 $ 937 $ — $ — $ 1,047 Corporate stocks 3 473 6 — — 479 Corporate bonds 4 — 582 — — 582 Common/collective funds 5 — — — 426 426 Partnerships/joint ventures 6 — — — 434 434 Other investment entities 7 — — — 236 236 Registered investment companies 8 112 — — 2 114 Interest-bearing cash 2 — — — 2 Other — 73 — — 73 Total $ 697 $ 1,598 $ — $ 1,098 $ 3,393 Receivables and payables, net (72 ) Net plan assets available for benefits $ 3,321 SCE's share of net plan assets $ 3,124 The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 184 $ 507 $ — $ — $ 691 Corporate stocks 3 718 11 — — 729 Corporate bonds 4 — 676 — — 676 Common/collective funds 5 — — — 705 705 Partnerships/joint ventures 6 — — — 396 396 Other investment entities 7 — — — 262 262 Registered investment companies 8 140 — — — 140 Interest-bearing cash 9 — — — 9 Other — 106 — — 106 Total $ 1,051 $ 1,300 $ — $ 1,363 $ 3,714 Receivables and payables, net (98 ) Net plan assets available for benefits $ 3,616 SCE's share of net plan assets $ 3,390 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 3 Corporate stocks are diversified. At December 31, 2018 and 2017 , respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 43% ) and ( 54% ) and Morgan Stanley Capital International (MSCI) index ( 57% ) and ( 46% ). 4 Corporate bonds are diversified. At December 31, 2018 and 2017 , respectively, this category includes $60 million and $65 million for collateralized mortgage obligations and other asset backed securities. 5 At December 31, 2018 and 2017 , respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index ( 43% and 41% ) and Russell 1000 indexes ( 14% and 15% ). In addition, at December 31, 2018 and 2017 , respectively, 21% and 15% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 15% and 25% of this category are in non-index U.S. equity fund, which is actively managed. 6 At December 31, 2018 and 2017 , respectively, 50% and 55% are invested in private equity funds with investment strategies that include branded consumer products, clean technology and California geographic focus companies, 30% and 20% are invested in a broad range of financial assets in all global markets, and 16% and 23% are invested in publicly traded fixed income securities. 7 Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. 8 Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information on PBOP Plan assets and benefit obligations is shown below: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 2,337 $ 2,276 $ 2,325 $ 2,266 Service cost 37 31 37 31 Interest cost 80 86 80 85 Special termination benefits — 1 — 1 Actuarial (gain) loss 1 (382 ) 24 (379 ) 23 Plan participants' contributions 28 24 28 24 Benefits paid (114 ) (105 ) (114 ) (105 ) Benefit obligation at end of year $ 1,986 $ 2,337 $ 1,977 $ 2,325 Change in plan assets Fair value of plan assets at beginning of year $ 2,330 $ 2,102 $ 2,330 $ 2,102 Actual return on assets (123 ) 297 (123 ) 297 Employer contributions 13 12 12 12 Plan participants' contributions 28 24 28 24 Benefits paid (115 ) (105 ) (114 ) (105 ) Fair value of plan assets at end of year $ 2,133 $ 2,330 $ 2,133 $ 2,330 Funded status at end of year $ 147 $ (7 ) $ 156 $ 5 Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 159 $ 6 $ 168 $ 17 Current liabilities (12 ) (13 ) (12 ) (12 ) Long-term liabilities — — — — $ 147 $ (7 ) $ 156 $ 5 Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 1 $ 4 $ — $ — Amounts recognized as a regulatory liability (185 ) (26 ) (185 ) (26 ) Total not yet recognized as income $ (184 ) $ (22 ) $ (185 ) $ (26 ) Weighted-average assumptions used to determine obligations at end of year: Discount rate 4.35 % 3.70 % 4.35 % 3.70 % Assumed health care cost trend rates: Rate assumed for following year 6.75 % 6.75 % 6.75 % 6.75 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 2029 |
Expense Components for Plans | Net periodic PBOP expense components for continuing operations are: Edison International SCE Years ended December 31, (in millions) 2018 2017 2 2016 2 2018 2017 2 2016 2 Service cost $ 37 $ 31 $ 35 $ 37 $ 31 $ 34 Non-service cost Interest cost 80 86 97 80 85 97 Expected return on plan assets (121 ) (110 ) (112 ) (122 ) (110 ) (112 ) Special termination benefits 1 — 1 2 — 1 2 Amortization of prior service credit (1 ) (3 ) (2 ) (1 ) (2 ) (2 ) Regulatory adjustment (deferred) 24 — — 24 — — Total non-service benefit $ (18 ) $ (26 ) $ (15 ) $ (19 ) $ (26 ) $ (15 ) Total expense $ 19 $ 5 $ 20 $ 18 $ 5 $ 19 1 Due to the reduction in workforce, SCE has incurred costs for extended retiree health care coverage. 2 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
Schedule of Amounts in Accumulated Other Comprehensive Loss to be Recognized | The estimated PBOP amounts that will be amortized to expense in 2019 for continuing operations are as follows: (in millions) Edison International SCE Unrecognized net gain to be amortized $ (3 ) $ (3 ) Unrecognized prior service credit to be amortized (1 ) (1 ) |
Schedule of Assumptions Used | Edison International and SCE used the following weighted-average assumptions to determine PBOP expense for continuing operations: Years ended December 31, 2018 2017 2016 Discount rate 3.70 % 4.29 % 4.55 % Expected long-term return on plan assets 5.30 % 5.30 % 5.60 % Assumed health care cost trend rates: Current year 6.75 % 7.00 % 7.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2022 2022 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rate | A one-percentage-point change in assumed health care cost trend rate would have the following effects on continuing operations: Edison International SCE (in millions) One-Percentage-Point Increase One-Percentage-Point Decrease One-Percentage-Point Increase One-Percentage-Point Decrease Effect on accumulated benefit obligation as of December 31, 2018 $ 210 $ (173 ) $ 209 $ (172 ) Effect on annual aggregate service and interest costs 11 (9 ) 11 (9 ) |
Schedule of Expected Benefit Payments | The following benefit payments (net of plan participants' contributions) are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2019 $ 91 $ 91 2020 94 94 2021 97 97 2022 100 99 2023 103 102 2024 – 2028 553 550 |
Postretirement Benefits Other than Pension Plan Assets by Hierarchy Levels | The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2018 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 322 $ 49 $ — $ — $ 371 Corporate stocks 3 204 — — — 204 Corporate notes and bonds 4 — 832 — — 832 Common/collective funds 5 — — — 495 495 Partnerships 6 — — — 89 89 Registered investment companies 7 38 — — — 38 Interest bearing cash 22 — — — 22 Other 8 5 99 — — 104 Total $ 591 $ 980 $ — $ 584 $ 2,155 Receivables and payables, net (22 ) Combined net plan assets available for benefits $ 2,133 The following table sets forth the VEBA Trust assets for SCE that were accounted for at fair value as of December 31, 2017 by asset class and level within the fair value hierarchy: (in millions) Level 1 Level 2 Level 3 NAV 1 Total U.S. government and agency securities 2 $ 398 $ 33 $ — $ — $ 431 Corporate stocks 3 254 — — — 254 Corporate notes and bonds 4 — 845 — — 845 Common/collective funds 5 — — — 569 569 Partnerships 6 — — — 82 82 Registered investment companies 7 37 — — — 37 Interest bearing cash 42 — — — 42 Other 8 5 84 — — 89 Total $ 736 $ 962 $ — $ 651 $ 2,349 Receivables and payables, net (19 ) Combined net plan assets available for benefits $ 2,330 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 3 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 67% and 64% ) and the MSCI All Country World Index ( 33% and 36% ) for 2018 and 2017 , respectively. 4 Corporate notes and bonds are diversified and include approximately $59 million and $36 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2018 and 2017 , respectively. 5 At December 31, 2018 and 2017 , respectively, 74% and 75% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index and 19% and 17% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund. 6 At December 31, 2018 and 2017 , respectively, 48% and 56% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. 34% and 33% are invested in a broad range of financial assets in all global markets. 17% and 9% of the remaining partnerships category are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks. 7 At both December 31, 2018 and 2017 , registered investment companies were primarily invested in (1) a money market fund, (2) exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index, and international small cap equities. 8 Other includes $58 million and $60 million of municipal securities at December 31, 2018 and 2017 , respectively. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Entity, Other Assets, Noncurrent [Abstract] | |
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 Date Amortized Cost Fair Value December 31, (in millions) 2018 2017 2018 2017 Stocks — * $ 236 $ 1,381 $ 1,596 Municipal bonds 2057 665 643 767 768 U.S. government and agency securities 2067 1,193 1,235 1,288 1,319 Corporate bonds 2050 573 579 611 643 Short-term investments and receivables/payables 1 One-year 70 110 73 114 Total $ 2,501 $ 2,803 $ 4,120 $ 4,440 * Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information. 1 Short-term investments include $71 million and $29 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 2, 2019 and January 2, 2018 as of December 31, 2018 and 2017 , respectively. |
Gains and (Losses) for Equity Securities | The following table summarizes the gains and (losses) for the trust investments: December 31, (in millions) 2018 2017 2016 Gross realized gains $ 134 $ 244 $ 92 Gross realized losses (27 ) (23 ) (19 ) Net unrealized (losses) gains for equity securities (233 ) 142 75 |
Net Unrealized Gains and Losses for Equity Securities | The following table summarizes the gains and (losses) for the trust investments: December 31, (in millions) 2018 2017 2016 Gross realized gains $ 134 $ 244 $ 92 Gross realized losses (27 ) (23 ) (19 ) Net unrealized (losses) gains for equity securities (233 ) 142 75 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets Included on the Consolidated Balance Sheets | SCE's regulatory assets included on the consolidated balance sheets are: December 31, (in millions) 2018 2017 Current: Regulatory balancing accounts $ 814 $ 484 Power contracts 1 305 203 Other 14 16 Total current 1,133 703 Long-term: Deferred income taxes, net of liabilities 3,589 3,143 Pensions and other postretirement benefits 271 271 Power contracts 1 700 799 Unamortized investments, net of accumulated amortization 2 118 123 San Onofre 3 — 72 Unamortized loss on reacquired debt 153 168 Regulatory balancing accounts 360 143 Environmental remediation 134 144 Other 55 51 Total long-term 5,380 4,914 Total regulatory assets $ 6,513 $ 5,617 |
Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are: December 31, (in millions) 2018 2017 Current: Regulatory balancing accounts $ 1,080 $ 1,009 Energy derivatives 158 74 Other 1 294 38 Total current 1,532 1,121 Long-term: Costs of removal 2,769 2,741 Re-measurement of deferred taxes 2,776 2,892 Recoveries in excess of ARO liabilities 1,130 1,575 Regulatory balancing accounts 1,344 1,316 Other postretirement benefits 185 26 Other 1 125 64 Total long-term 8,329 8,614 Total regulatory liabilities $ 9,861 $ 9,735 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 primarily associated with these adjustments. The CPUC has authorized the establishment of a GRC memorandum account, which will make the 2018 revenue requirement ultimately adopted by the CPUC effective as of January 1, 2018. For further information, see Note 1. |
Schedule of Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: December 31, (in millions) 2018 2017 Asset (liability) Energy resource recovery account 1 $ 815 $ 464 New system generation balancing account (74 ) (197 ) Public purpose programs and energy efficiency programs (1,200 ) (1,145 ) Base revenue requirement balancing account 2 (628 ) (200 ) Tax accounting memorandum account and pole loading balancing account 2 28 (259 ) DOE litigation memorandum account (69 ) (156 ) Greenhouse gas auction revenue and low carbon fuel standard revenue (81 ) (46 ) FERC balancing accounts (180 ) (205 ) Catastrophic event memorandum account 144 102 Wildfire expense memorandum account 3 128 — Other (133 ) (56 ) Liability $ (1,250 ) $ (1,698 ) 1 Energy resource recovery account ("ERRA") balancing account is subject to a trigger mechanism that allows SCE to request an expeditious rate change if the ERRA balancing account overcollection or undercollection either exceeds 5% of SCE's prior year generation rate revenue or exceeds 4% of SCE's prior year generation rate revenue and SCE does not expect the overcollection or undercollection to fall below 4% within 120 days. For 2019, the 4% and 5% trigger amounts are approximately $213 million and $266 million , respectively. SCE anticipates to recover the ERRA undercollection from customer in rates beginning in April 2019. For further information of ERRA trigger mechanism, see "Business—SCE—Overview of Ratemaking Process." 2 During 2018, $263 million of 2017 incremental tax benefits were reclassified from the tax accounting memorandum account to the base revenue requirement balancing account (to be refunded to customers in 2019). 3 During 2018, the CPUC established a wildfire expense memorandum account ("WEMA") to track wildfire-related costs including insurance premiums in excess of amounts that ultimately will be approved in the 2018 GRC decision. See Note 12 for further information. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule Of Commitments And Contingencies [Line Items] | |
Summary of Power Purchase Agreements Treated as Operating and Capital Leases | The future minimum lease payments for capital leases are discounted to their present value in the table below using SCE's incremental borrowing rate at the inception of the leases. The amount of this discount is shown in the table below as the amount representing interest. (in millions) Operating Leases Capital Leases 2019 $ 148 $ 5 2020 124 6 2021 103 6 2022 79 6 2023 47 5 Thereafter 536 66 Total future commitments $ 1,037 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 1 $ 36 1 Includes two contracts with net commitments of $26 million that will commence in 2019. |
Summary of Estimated Minimum Future Commitments for Other Operating Leases | The following summarizes the estimated minimum future commitments for Edison International's non-cancelable other operating leases (primarily related to vehicles, office space and other equipment related to SCE): (in millions) Total 2019 $ 42 2020 31 2021 27 2022 22 2023 17 Thereafter 101 Total future commitments $ 240 |
Schedule of Settlement Agreement | The following table summarizes the financial impact in 2017 of the Revised San Onofre Settlement Agreement and the Utility Shareholder Agreement: (in millions) San Onofre base regulatory asset $ 696 DOE litigation regulatory liability (72 ) MHI Arbitration regulatory liability (47 ) GHG Reduction Program (10 ) Other 6 Present value of Utility Shareholder Agreement 143 Total pre-tax charge $ 716 Total after-tax charge $ 448 For the year-ended December 31, 2018, the income statements include the estimated losses (established at the lower end of the reasonably estimated range of expected losses), net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: (in millions) Year ended December 31, 2018 Charge for wildfire-related claims $ 4,669 Expected insurance recoveries (2,000 ) Expected revenue from FERC customers (135 ) Total pre-tax charge 2,534 Income tax benefit (709 ) Total after-tax charge $ 1,825 |
SCE | |
Schedule Of Commitments And Contingencies [Line Items] | |
Summary of Undiscounted Future Expected Payments for Power Purchase Agreements That Have Been Approved by the CPUC and Have Completed Major Milestones for Construction | At December 31, 2018 , the undiscounted future expected minimum payments for the SCE PPAs (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows: (in millions) Total 2019 $ 2,562 2020 2,602 2021 2,570 2022 2,415 2023 2,185 Thereafter 23,855 Total future commitments $ 36,189 |
Summary of Certain Future Other Commitments | The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2019 2020 2021 2022 2023 Thereafter Total Other contractual obligations $ 79 $ 67 $ 46 $ 44 $ 35 $ 209 $ 480 |
Preferred and Preference Stoc_2
Preferred and Preference Stock of Utility (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Preferred Stock and Preference Stock | Preferred stock and preference stock is: Shares Redemption Dividends Declared per Share December 31, (in millions, except shares and per-share amounts) 2018 2017 Cumulative preferred stock $25 par value: 4.08% Series 650,000 $ 25.50 $ 1.020 $ 16 $ 16 4.24% Series 1,200,000 25.80 1.060 30 30 4.32% Series 1,653,429 28.75 1.080 41 41 4.78% Series 1,296,769 25.80 1.195 33 33 Preference stock No par value: 6.25% Series E (cumulative) 350,000 1,000.00 62.500 350 350 5.10% Series G (cumulative) 160,004 2,500.00 127.500 400 400 5.75% Series H (cumulative) 110,004 2,500.00 143.750 275 275 5.375% Series J (cumulative) 130,004 2,500.00 134.375 325 325 5.45% Series K (cumulative) 120,004 2,500.00 136.250 300 300 5.00% Series L (cumulative) 190,004 2,500.00 125.000 475 475 SCE's preferred and preference stock 2,245 2,245 Less issuance costs (52 ) (52 ) Edison International's preferred and preference stock of utility $ 2,193 $ 2,193 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2018 2017 2018 2017 Beginning balance $ (43 ) $ (53 ) $ (19 ) $ (20 ) Pension and PBOP – net gain (loss): Other comprehensive (loss) income before reclassifications (9 ) 3 (3 ) (2 ) Reclassified from accumulated other comprehensive loss 1 6 7 4 3 Other 2 (4 ) — (5 ) — Change (7 ) 10 (4 ) 1 Ending balance $ (50 ) $ (43 ) $ (23 ) $ (19 ) 1 These items are included in the computation of net periodic pension and PBOP expenses. See Note 9 for additional information. 2 Edison International and SCE recognized cumulative effect adjustments 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. See Note 1 for further information. |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other income and expenses are as follows: Years ended December 31, (in millions) 2018 2017 2016 SCE other income and (expenses): Equity allowance for funds used during construction $ 104 $ 87 $ 74 Increase in cash surrender value of life insurance policies and life insurance benefits 36 42 39 Interest income 24 7 3 Net periodic benefit income – non-service components 81 51 35 Civic, political and related activities and donations (44 ) (34 ) (32 ) Other (7 ) (5 ) (5 ) Total SCE other income and (expenses) 194 148 114 Other (expenses) and income of Edison International Parent and Other: Net periodic benefit costs – non-service components (2 ) (14 ) (5 ) Other 5 (2 ) — Total Edison International other income and (expenses) $ 197 $ 132 $ 109 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental cash flows information for continuing operations is: Edison International SCE Years ended December 31, (in millions) 2018 2017 2016 2018 2017 2016 Cash payments (receipts) for interest and taxes: Interest, net of amounts capitalized $ 595 $ 548 $ 504 $ 552 $ 509 $ 475 Tax (refunds) payments, net (135 ) 1 18 (57 ) 2 78 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 200 $ 197 $ 177 $ — $ 212 $ — Preferred and preference stock 12 12 12 12 12 12 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: December 31, (in millions) 2018 2017 Long-term insurance receivable due from affiliate $ 1,000 $ — Prepaid insurance 1 13 131 Current payables due to affiliate 2 4 3 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The amortization expense for prepaid insurance were $140 million and $13 million for the years ended December 31, 2018 and 2017, respectively. 2 Reflected in "Accounts payable" on SCE's consolidated balance sheets. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Edison International's quarterly financial data is as follows: 2018 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 12,657 $ 3,009 $ 4,269 $ 2,815 $ 2,564 Operating (loss) income 1 (552 ) (2,041 ) 739 420 330 (Loss) income from continuing operations (350 ) (1,434 ) 544 298 242 Income from discontinued operations, net 34 34 — — — Net (loss) income attributable to common shareholders (423 ) (1,430 ) 513 276 218 Basic (loss) earnings per share: Continuing operations $ (1.40 ) $ (4.49 ) $ 1.57 $ 0.85 $ 0.67 Discontinued operations 0.10 0.10 — — — Total $ (1.30 ) $ (4.39 ) $ 1.57 $ 0.85 $ 0.67 Diluted (loss) earnings per share: Continuing operations $ (1.40 ) $ (4.49 ) $ 1.57 $ 0.84 $ 0.67 Discontinued operations 0.10 0.10 — — — Total $ (1.30 ) $ (4.39 ) $ 1.57 $ 0.84 $ 0.67 Dividends declared per share 2.4275 0.6125 0.6050 0.6050 0.6050 1 In the fourth quarter of 2018, SCE recorded a charge of $2.5 billion for wildfire-related claims, net of expected recoveries from insurance and FERC customers. 2017 (in millions, except per-share amounts) Total Fourth Third Second First Operating revenue $ 12,320 $ 3,220 $ 3,672 $ 2,965 $ 2,463 Operating income (loss) 1 1,456 (38 ) 553 470 471 Income (loss) from continuing operations 2,3 668 (534 ) 501 309 392 Income (loss) from discontinued operations, net — — — — — Net income (loss) attributable to common shareholders 565 (545 ) 470 278 362 Basic earnings (loss) per share: Continuing operations $ 1.73 $ (1.67 ) $ 1.44 $ 0.85 $ 1.11 Discontinued operations — — — — — Total $ 1.73 $ (1.67 ) $ 1.44 $ 0.85 $ 1.11 Diluted earnings (loss) per share: Continuing operations $ 1.72 $ (1.66 ) $ 1.43 $ 0.85 $ 1.10 Discontinued operations — — — — — Total $ 1.72 $ (1.66 ) $ 1.43 $ 0.85 $ 1.10 Dividends declared per share 2.2325 0.6050 0.5425 0.5425 0.5425 1 Expenses were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans. See Note 1 for further information. 2 In the fourth quarter of 2017, Edison International Parent and Other recorded a charge of $433 million related to the re-measurement of deferred taxes as a result of Tax Reform. 3 In the fourth quarter of 2017, SCE recorded an impairment charge of $716 million ( $448 million after-tax) related to the Revised San Onofre Settlement Agreement. SCE's quarterly financial data is as follows: 2018 (in millions) Total Fourth Third Second First Operating revenue $ 12,611 $ 2,994 $ 4,260 $ 2,803 $ 2,554 Operating (loss) income 1 (406 ) (2,013 ) 754 439 414 Net (loss) income (189 ) (1,399 ) 567 327 316 Net (loss) income available for common stock (310 ) (1,429 ) 536 297 286 Common dividends declared 576 — 264 100 212 1 In the fourth quarter of 2018, SCE recorded a charge of $2.5 billion for wildfire-related claims, net of expected recoveries from insurance and FERC customers. 2017 (in millions) Total Fourth Third Second First Operating revenue $ 12,254 $ 3,193 $ 3,652 $ 2,953 $ 2,456 Operating income (loss) 1 1,547 (28 ) 569 508 498 Net income (loss) 2 1,136 (79 ) 497 338 380 Net income (loss) available for common stock 1,012 (109 ) 465 307 349 Common dividends declared 785 212 191 191 191 1 Expenses were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans. See Note 1 for further information. 2 In the fourth quarter of 2017, SCE recorded an impairment charge of $716 million ( $448 million after-tax) related to the Revised San Onofre Settlement Agreement. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands | 12 Months Ended |
Dec. 31, 2018mi² | |
Electric Utility | SCE | |
Segment Reporting Information [Line Items] | |
Supply Of Electricity Area Covered (in square miles) | 50 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Sale of SoCore Energy) (Details) - SoCore Energy $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Pre-tax loss | $ 62 |
After-tax loss | $ 50 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | $ 116 | $ 1,024 | ||
Book balances reclassified to accounts payable | 65 | 64 | ||
Restricted cash | 8 | 41 | ||
Cash and cash equivalents | 144 | 1,091 | ||
Short-term restricted cash | 8 | 40 | ||
Long-term restricted cash | 0 | 1 | ||
Total cash, cash equivalents, and restricted cash | 152 | 1,132 | $ 114 | $ 168 |
SCE | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | 1 | 483 | ||
Book balances reclassified to accounts payable | 65 | 63 | ||
Cash and cash equivalents | 21 | 515 | ||
Short-term restricted cash | 1 | 0 | ||
Total cash, cash equivalents, and restricted cash | $ 22 | $ 515 | $ 40 | $ 32 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Emission Allowances) (Details) - SCE - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Line Items] | ||
Regulatory liabilities | $ 9,861 | $ 9,735 |
LCFS net sales proceeds | ||
Significant Accounting Policies [Line Items] | ||
Regulatory liabilities | 103 | 24 |
Other Current Assets | ||
Significant Accounting Policies [Line Items] | ||
GHG allowances | 38 | 127 |
Other Current Liabilities | ||
Significant Accounting Policies [Line Items] | ||
GHG emission obligations | $ 30 | $ 129 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,650 | $ 1,610 | $ 1,520 |
Depreciation expense stated as a percent of average original cost of depreciable utility plant (percent) | 3.70% | 3.80% | 3.80% |
AFUDC equity capitalized during construction | $ 104 | $ 87 | $ 74 |
Interest and other income | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC equity capitalized during construction | 104 | 87 | 74 |
Interest expense | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC debt capitalized during construction | $ 44 | $ 28 | $ 23 |
Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 37 years | ||
Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 43 years | ||
Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 52 years | ||
General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Weighted-Average Useful Lives | 22 years | ||
Minimum | Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 10 years | ||
Minimum | Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 20 years | ||
Minimum | Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 40 years | ||
Minimum | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Maximum | Generation plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 54 years | ||
Maximum | Distribution plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 60 years | ||
Maximum | Transmission plant | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 65 years | ||
Maximum | General plant and other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 60 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
SoCore Energy | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 16.5 | ||
Goodwill impairment after tax | $ 10 | ||
Goodwill | $ 5 | ||
Edison Energy Group | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 19 | ||
Goodwill impairment after tax | 13 | ||
Goodwill | 59 | $ 78 | |
Edison Energy | |||
Goodwill [Line Items] | |||
Investment | $ 83 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Nuclear Decommissioning and Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | $ 2,908 | |
Ending balance | 3,031 | $ 2,908 |
SCE | ||
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | 2,892 | 2,586 |
Accretion | 169 | 166 |
Revisions | 110 | 376 |
Liabilities settled | (140) | (236) |
Ending balance | $ 3,031 | $ 2,892 |
Threshold period to be recognized as a loss for other-than-temporary impairment | 2 months | |
SCE | Palo Verde and San Onofre Units | ||
Asset Retirement Obligation, Roll Forward | ||
Recorded liability to decommission nuclear power facilities | $ 2,800 | |
Estimated cost to decommission nuclear facilities | $ 7,200 | |
Decommissioning cost escalated rates, low end (percent) | 2.20% | |
Decommissioning cost escalated rates, high end (percent) | 7.50% | |
Estimated annual net of tax earnings, low end (percent) | 2.40% | |
Estimated annual net of tax earnings, high end (percent) | 3.80% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Deferred Financing Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 5,380 | $ 4,914 | |
Edison International | |||
Regulatory Assets [Line Items] | |||
Amortization of deferred financing costs charged to interest expense | 30 | 30 | $ 31 |
Other long-term assets | Edison International | |||
Regulatory Assets [Line Items] | |||
Unamortized debt issuance expense | 10 | 15 | |
Long-term debt | Edison International | |||
Regulatory Assets [Line Items] | |||
Unamortized debt issuance expense | 102 | 88 | |
SCE | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | 5,380 | 4,914 | |
Amortization of deferred financing costs charged to interest expense | 26 | 27 | $ 27 |
SCE | Other long-term assets | |||
Regulatory Assets [Line Items] | |||
Unamortized debt issuance expense | 8 | 7 | |
SCE | Long-term debt | |||
Regulatory Assets [Line Items] | |||
Unamortized debt issuance expense | 93 | 77 | |
SCE | Unamortized loss on reacquired debt | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 153 | $ 168 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended |
Dec. 31, 2018 | Dec. 31, 2020 | |
Public Utilities, General Disclosures [Line Items] | ||
Requested revenue requirement year one | $ 5,534 | |
Decrease in revenue requirement | 106 | |
Requested | ||
Public Utilities, General Disclosures [Line Items] | ||
Rate period | 3 years | |
Requested revenue requirement year one | 5,965 | |
Requested revenue requirement year two | $ 6,468 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Derivative Instruments) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2017USD ($) | |
SCE | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Reclassified derivative liabilities | $ 914 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (SCE Dividend) (Details) - SCE - USD ($) $ in Millions | Feb. 28, 2019 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Line Items] | ||||
Minimum percentage of weighted-average common equity component authorization, set by CPUC (as a percent) | 48.00% | |||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 37 months | |||
After-tax charge excused from capital structure | $ 448 | $ 448 | ||
Weighted-average common equity component of total capitalization percent | 49.70% | |||
Capacity to pay additional dividends | $ 459 | |||
Restriction on net assets | $ 13,300 | |||
Waiver threshold percent | 47.00% | |||
Subsequent event | ||||
Significant Accounting Policies [Line Items] | ||||
Weighted-average common equity component of total capitalization percent | 47.00% | |||
Dividends | $ 200 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic (loss) earnings per share – continuing operations: | |||||||||||
(Loss) income from continuing operations, net of tax | $ (457) | $ 565 | $ 1,299 | ||||||||
Participating securities dividends | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations available to common shareholders | $ (457) | $ 565 | $ 1,299 | ||||||||
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 | 326,000,000 | ||||||||
Basic (loss) earnings per share – continuing operations (in dollars per share) | $ (4.49) | $ 1.57 | $ 0.85 | $ 0.67 | $ (1.67) | $ 1.44 | $ 0.85 | $ 1.11 | $ (1.40) | $ 1.73 | $ 3.99 |
Diluted (loss) earnings per share – continuing operations: | |||||||||||
(Loss) income from continuing operations attributable to common shareholders | $ (457) | $ 565 | $ 1,299 | ||||||||
Participating securities dividends | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations available to common shareholders | (457) | 565 | 1,299 | ||||||||
Income impact of assumed conversions | 0 | 0 | 1 | ||||||||
(Loss) income from continuing operations available to common shareholders and assumed conversions | $ (457) | $ 565 | $ 1,300 | ||||||||
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 | 326,000,000 | ||||||||
Incremental shares from assumed conversions (in shares) | 0 | 2,000,000 | 4,000,000 | ||||||||
Adjusted weighted average shares - diluted (in shares) | 326,000,000 | 328,000,000 | 330,000,000 | ||||||||
Diluted (loss) earnings per share – continuing operations (in dollars per share) | $ (4.49) | $ 1.57 | $ 0.84 | $ 0.67 | $ (1.66) | $ 1.43 | $ 0.85 | $ 1.10 | $ (1.40) | $ 1.72 | $ 3.94 |
Stock Compensation Plan | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive stock option awards excluded from earnings per share, number of shares | 8,852,706 | 1,334,451 | 167,795 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies (Noncontrolling Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Assets | $ 56,715 | $ 52,580 | |
Liabilities | 44,063 | 38,695 | |
Unnamed subsidiary | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Assets | 299 | ||
Liabilities | 41 | ||
Net (loss) income | $ 14 | $ 21 | $ 9 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted cash | $ 8 | $ 41 | |||
SCE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit income – non-service components | $ 81 | 51 | $ 35 | ||
ASU 2016-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | $ 5 | ||||
Cumulative effect of accounting changes, before tax | 8 | ||||
ASU 2018-14 | Operation and maintenance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit income – non-service components | (37) | (30) | |||
ASU 2018-14 | Other income and expenses | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit income – non-service components | 37 | 30 | |||
ASU 2018-14 | SCE | Operation and maintenance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit income – non-service components | (51) | (35) | |||
ASU 2018-14 | SCE | Other income and expenses | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net periodic benefit income – non-service components | $ 51 | $ 35 | |||
ASU 2018-02 | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of stranded tax effects | $ 10 | ||||
ASU 2018-02 | SCE | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of stranded tax effects | 5 | ||||
Difference between revenue guidance in effect before and after topic 606 | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of accounting changes | 5 | ||||
Cumulative effect of accounting changes, before tax | $ 7 | ||||
Subsequent event | ASU 2016-02 | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | 1,000 | ||||
Right-of-use lease liabilities | 1,000 | ||||
Subsequent event | ASU 2016-02 | SCE | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | 1,000 | ||||
Right-of-use lease liabilities | $ 1,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (9,566) | $ (9,355) |
Total utility property, plant and equipment | 41,269 | 38,708 |
SCE | ||
Property, Plant and Equipment [Line Items] | ||
Distribution | 25,026 | 23,633 |
Transmission | 13,800 | 13,127 |
Generation | 3,598 | 3,468 |
General plant and other | 4,398 | 4,534 |
Accumulated depreciation | (9,566) | (9,355) |
Total utility property, plant and equipment, Gross | 37,256 | 35,407 |
Construction work in progress | 3,883 | 3,175 |
Nuclear fuel, at amortized cost | 130 | 126 |
Total utility property, plant and equipment | $ 41,269 | $ 38,708 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs | $ 1,000 | $ 1,100 | |
Capitalized software, accumulated amortization | 500 | 600 | |
Capitalized software, amortization expense | 198 | $ 233 | $ 249 |
Capitalized software, estimated amortization year 1 | 180 | ||
Capitalized software, estimated amortization year 2 | 145 | ||
Capitalized software, estimated amortization year 3 | 107 | ||
Capitalized software, estimated amortization year 4 | 59 | ||
Capitalized software, estimated amortization year 5 | $ 20 | ||
Capitalized software costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Capitalized software costs | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Property, Plant and Equipment_4
Property, Plant and Equipment (Jointly Owned Utility Projects) (Details) - SCE - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Jointly Owned Utility Plant Interests [Line Items] | ||
Nuclear Fuel (at amortized cost) | $ 130 | $ 126 |
Eldorado | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | 245 | |
Construction Work in Progress | 13 | |
Accumulated Depreciation | 29 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 229 | |
Ownership Interest | 59.00% | |
Pacific Intertie | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 217 | |
Construction Work in Progress | 73 | |
Accumulated Depreciation | 75 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 215 | |
Ownership Interest | 50.00% | |
Palo Verde (nuclear) | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 2,024 | |
Construction Work in Progress | 63 | |
Accumulated Depreciation | 1,567 | |
Nuclear Fuel (at amortized cost) | 130 | |
Net Book Value | $ 650 | |
Ownership Interest | 16.00% | |
Total | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 2,486 | |
Construction Work in Progress | 149 | |
Accumulated Depreciation | 1,671 | |
Nuclear Fuel (at amortized cost) | 130 | |
Net Book Value | $ 1,094 |
Variable Interest Entities (Var
Variable Interest Entities (Variable Interest in VIEs that are not Consolidated) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2017USD ($) | Dec. 31, 2018USD ($)$ / sharesMW | Dec. 31, 2017USD ($)$ / sharesMW | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012USD ($) | |
Unconsolidated Trust | ||||||||
Stock redeemed | $ 475,000,000 | $ 125,000,000 | ||||||
SCE | ||||||||
Unconsolidated Trust | ||||||||
Stock redeemed | $ 475,000,000 | $ 125,000,000 | ||||||
SCE | Series G Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||
SCE | Series H Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||
SCE | Series J Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||
SCE | Series K Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||
SCE | Series L Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.00% | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Power Purchase Contracts | ||||||||
Details of projects or entities | ||||||||
Power generating capacity for majority interest (in megawatts) | MW | 3,602 | 4,898 | ||||||
Payments to unconsolidated VIEs for power purchase contracts | $ 762,000,000 | $ 767,000,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust I | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.625% | |||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | ||||||
Common stock | 10,000 | |||||||
Stock redeemed | $ 10,000 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust I | Series F Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Liquidation preference | 475,000,000 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust II | ||||||||
Unconsolidated Trust | ||||||||
Common stock | 10,000 | 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust II | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
Common stock | $ 10,000 | $ 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust II | Series F Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust II | Series G Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust III | ||||||||
Unconsolidated Trust | ||||||||
Common stock | $ 10,000 | 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust III | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust III | Series H Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust IV | ||||||||
Unconsolidated Trust | ||||||||
Common stock | $ 10,000 | 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust IV | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust IV | Series J Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust V | ||||||||
Unconsolidated Trust | ||||||||
Common stock | $ 10,000 | 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust V | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust V | Series K Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust VI | ||||||||
Unconsolidated Trust | ||||||||
Common stock | $ 10,000 | $ 10,000 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust VI | Trust Securities | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.00% | |||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | Trust VI | Series L Preferred Stock | ||||||||
Unconsolidated Trust | ||||||||
Security dividend rate, (as a percent) | 5.00% | |||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | ||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Trusts' Income Statement) (Details) - SCE - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trust I | |||
Variable Interest Entity [Line Items] | |||
Dividend income | $ 14 | $ 27 | |
Dividend distributions | 14 | 27 | |
Trust II | |||
Variable Interest Entity [Line Items] | |||
Dividend income | $ 20 | 20 | 20 |
Dividend distributions | 20 | 20 | 20 |
Trust III | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 16 | 16 |
Dividend distributions | 16 | 16 | 16 |
Trust IV | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 17 | 17 | 17 |
Dividend distributions | 17 | 17 | 17 |
Trust V | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 16 | 13 |
Dividend distributions | 16 | 16 | $ 13 |
Trust VI | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 24 | 12 | |
Dividend distributions | $ 24 | $ 12 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,120 | $ 4,440 |
SCE | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,120 | $ 4,440 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States (as a percent) | 71.00% | 69.00% |
Collateralized mortgage obligations and other asset backed securities | $ 67 | $ 102 |
Payables, net, related to investments | (143) | (59) |
SCE | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | 0 | (1) |
Derivative contracts, net | 173 | 110 |
Money market funds and other | 30 | 495 |
Nuclear decommissioning trusts | 4,263 | 4,499 |
Total assets | 4,466 | 5,104 |
Liabilities at fair value | ||
Netting and Collateral | (7) | (2) |
Derivative contracts, net | 6 | 1 |
Total liabilities | 6 | 1 |
Cash collateral posted | 7 | 1 |
Net assets | 4,460 | 5,103 |
SCE | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | 0 |
Money market funds and other | 9 | 495 |
Nuclear decommissioning trusts | 2,503 | 2,762 |
Total assets | 2,512 | 3,257 |
Liabilities at fair value | ||
Derivative contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Net assets | 2,512 | 3,257 |
SCE | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 32 | 9 |
Money market funds and other | 21 | 0 |
Nuclear decommissioning trusts | 1,760 | 1,737 |
Total assets | 1,813 | 1,746 |
Liabilities at fair value | ||
Derivative contracts | 13 | 2 |
Total liabilities | 13 | 2 |
Net assets | 1,800 | 1,744 |
SCE | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 141 | 102 |
Money market funds and other | 0 | 0 |
Nuclear decommissioning trusts | 0 | 0 |
Total assets | 141 | 102 |
Liabilities at fair value | ||
Derivative contracts | 0 | 1 |
Total liabilities | 0 | 1 |
Net assets | 141 | 101 |
SCE | Fair Value, Measurements, Recurring | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,382 | 1,596 |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,382 | 1,596 |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 2,666 | 2,730 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,001 | 1,065 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,665 | 1,665 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 215 | 173 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 120 | 101 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 95 | 72 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 0 | $ 0 |
Fair Value Measurements (Textua
Fair Value Measurements (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 116 | $ 1,024 |
Edison Energy Group | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill impairment | 19 | |
Goodwill impairment after tax | 13 | |
Level 1 | Edison International Parent and Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 115 | $ 541 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total realized/unrealized gains: | |||
Reclassified derivative liabilities | $ 914 | ||
Level 3 | |||
Fair Value Disclosures Level 3 [Roll Forward] | |||
Fair value of net assets (liabilities) at beginning of period | $ 101 | $ (1,089) | |
Total realized/unrealized gains: | |||
Included in regulatory assets and liabilities | 40 | 133 | |
Contract amendment | 0 | 143 | |
Normal purchase and normal sale designation | 0 | 914 | |
Fair value of net assets at end of period | 141 | 101 | |
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period | $ 138 | $ 100 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - SCE - Level 3 - Congestion revenue rights - Auction prices $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / MWh | Dec. 31, 2017USD ($)$ / MWh | |
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 141 | $ 102 |
Fair Value, Liabilities | $ | $ 0 | $ 0 |
CAISO CRR auction clearing prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value Inputs, price level ($ per MWh) | $ / MWh | (7.41) | (9.41) |
CAISO CRR auction clearing prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value Inputs, price level ($ per MWh) | $ / MWh | 41.52 | 8.66 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 14,711 | $ 12,123 |
Fair Value2 | 14,844 | 13,760 |
SCE | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 12,971 | 10,907 |
Fair Value2 | $ 13,180 | $ 12,547 |
Debt and Credit Agreements (Lon
Debt and Credit Agreements (Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (79) | $ (481) |
Long-term debt | 14,632 | 11,642 |
Edison International Parent and Other | ||
Debt Instrument [Line Items] | ||
Other long-term debt | 0 | 29 |
Current portion of long-term debt | 0 | (2) |
Unamortized debt discount and issuance costs, net | (10) | (13) |
Long-term debt | 1,740 | 1,214 |
Edison International Parent and Other | Debentures and notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,750 | 1,200 |
Edison International Parent and Other | Debentures and notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 2.125% | |
Edison International Parent and Other | Debentures and notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 4.125% | |
SCE | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (79) | (479) |
Unamortized debt discount and issuance costs, net | (137) | (88) |
Long-term debt | 12,892 | 10,428 |
SCE | Debentures and notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 306 | 307 |
SCE | Debentures and notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 5.06% | |
SCE | Debentures and notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 6.65% | |
SCE | First and refunding mortgage bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 12,050 | 9,779 |
SCE | First and refunding mortgage bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 1.845% | |
SCE | First and refunding mortgage bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 6.05% | |
SCE | Pollution-control bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 752 | 909 |
SCE | Pollution-control bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 1.875% | |
SCE | Pollution-control bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 5.00% | |
SoCore Energy | ||
Debt Instrument [Line Items] | ||
Other long-term debt | $ 29 |
Debt and Credit Agreements (L_2
Debt and Credit Agreements (Long-term Debt Maturities) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 79 |
2,020 | 479 |
2,021 | 1,029 |
2,022 | 764 |
2,023 | 1,300 |
SCE | |
Debt Instrument [Line Items] | |
2,019 | 79 |
2,020 | 79 |
2,021 | 1,029 |
2,022 | 364 |
2,023 | $ 900 |
Debt and Credit Agreements (Tex
Debt and Credit Agreements (Textual) (Details) | 1 Months Ended | ||||
Feb. 28, 2019USD ($) | May 31, 2018USD ($)extension | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Number of one year extension options | extension | 2 | ||||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (as a percent) | 2.56% | ||||
Multi-year credit facilities | |||||
Debt Instrument [Line Items] | |||||
Commitment | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,250,000,000 | ||
Outstanding borrowings | $ 639,000,000 | 0 | |||
Weighted average interest rate (as a percent) | 1.70% | ||||
Outstanding letters of credit | $ 0 | ||||
Term Loan Agreement | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Debt, face amount | $ 750,000,000 | ||||
SCE | |||||
Debt Instrument [Line Items] | |||||
Debt to total capitalization ratio | 0.65 | ||||
SCE | Line of credit | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (as a percent) | 2.46% | ||||
Borrowings from credit facility | $ 500,000,000 | ||||
SCE | Multi-year credit facilities | |||||
Debt Instrument [Line Items] | |||||
Commitment | $ 3,000,000,000 | $ 3,000,000,000 | $ 2,750,000,000 | ||
Number of one year extension options | extension | 2 | ||||
Outstanding borrowings | 721,000,000 | ||||
Outstanding letters of credit | $ 190,000,000 | ||||
SCE | Multi-year credit facilities | Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 738,000,000 | ||||
Weighted average interest rate (as a percent) | 1.75% | 3.23% | |||
SCE | Multi-year credit facilities | Letters of credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | $ 190,000,000 | ||||
SCE | Commercial paper supported by SCE's credit facility | Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 720,000,000 | ||||
London Interbank Offered Rate | SCE | Term Loan Agreement | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.70% |
Debt and Credit Agreements (Sum
Debt and Credit Agreements (Summary for Status of Credit Facilities) (Details) - Multi-year credit facilities - USD ($) | Dec. 31, 2018 | May 31, 2018 | Apr. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Commitment | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,250,000,000 | |
Outstanding borrowings (excluding discount) | 0 | $ (639,000,000) | ||
Outstanding letters of credit | 0 | |||
Amount available | 1,500,000,000 | |||
SCE | ||||
Line of Credit Facility [Line Items] | ||||
Commitment | 3,000,000,000 | $ 3,000,000,000 | $ 2,750,000,000 | |
Outstanding borrowings (excluding discount) | (721,000,000) | |||
Outstanding letters of credit | (190,000,000) | |||
Amount available | $ 2,089,000,000 |
Derivative Instruments (Textual
Derivative Instruments (Textual) (Details) - SCE - Electric Utility - Economic hedges - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives | ||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 4 | $ 1 |
Posted collateral | 17 | $ 1 |
Potential amount of collateral to be posted if contingencies triggered | $ 1 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - SCE - Commodity derivative contracts - Electric Utility - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Assets | ||
Gross amounts recognized | $ 173 | $ 111 |
Gross amounts offset in the consolidated balance sheets | 0 | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 173 | 110 |
Derivative Liabilities | ||
Gross amounts recognized | 13 | 3 |
Gross amounts offset in the consolidated balance sheets | 0 | (1) |
Cash collateral posted | (7) | (1) |
Net amounts presented in the consolidated balance sheets | 6 | 1 |
Net Asset | ||
Gross amounts recognized | (160) | (108) |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 7 | 1 |
Net amounts presented in the consolidated balance sheets | 167 | 109 |
Derivative Assets, Short-Term | ||
Derivative Assets | ||
Gross amounts recognized | 171 | 106 |
Gross amounts offset in the consolidated balance sheets | 0 | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 171 | 105 |
Derivative Assets, Long-Term | ||
Derivative Assets | ||
Gross amounts recognized | 2 | 5 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 2 | 5 |
Derivative Liability, Short-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 13 | 3 |
Gross amounts offset in the consolidated balance sheets | 0 | (1) |
Cash collateral posted | (7) | (1) |
Net amounts presented in the consolidated balance sheets | 6 | 1 |
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 |
Derivative Instruments (Summari
Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gains (losses) | $ 26 | $ (14) | $ (59) |
Unrealized gains | $ 82 | $ 106 | $ 84 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - SCE - Electric Utility - Gross amounts recognized GWh in Thousands | 12 Months Ended | |
Dec. 31, 2018BcfeGWh | Dec. 31, 2017BcfeGWh | |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 2,786 | 475 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 20 | 143 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 54,453 | 78,765 |
Income Taxes (Source of Income
Income Taxes (Source of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
(Loss) income from continuing operations before income taxes | $ (1,089) | $ 949 | $ 1,590 |
Income from discontinued operations before income taxes | 0 | 0 | 1 |
(Loss) income before income tax | $ (1,089) | $ 949 | $ 1,591 |
Revenue (Summary of Revenue) (D
Revenue (Summary of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenue | $ 3,009 | $ 4,269 | $ 2,815 | $ 2,564 | $ 3,220 | $ 3,672 | $ 2,965 | $ 2,463 | $ 12,657 | $ 12,320 | $ 11,869 |
SCE | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 12,130 | ||||||||||
Alternative revenue programs and other operating revenue | 481 | ||||||||||
Total operating revenue | 2,994 | $ 4,260 | $ 2,803 | $ 2,554 | 3,193 | $ 3,652 | $ 2,953 | $ 2,456 | 12,611 | 12,254 | 11,830 |
Receivables from contracts with customers | 1,100 | 825 | 1,100 | 825 | |||||||
Accrued unbilled revenues | $ 482 | $ 212 | 482 | 212 | |||||||
SCE | Earning Activities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 6,519 | ||||||||||
Alternative revenue programs and other operating revenue | 41 | ||||||||||
Total operating revenue | 6,560 | 6,611 | 6,504 | ||||||||
SCE | Cost- Recovery Activities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers | 5,611 | ||||||||||
Alternative revenue programs and other operating revenue | 440 | ||||||||||
Total operating revenue | $ 6,051 | $ 5,643 | $ 5,326 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) by Location) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ (57) | $ (221) | $ (46) |
State | (155) | 4 | 33 |
Total current | (212) | (217) | (13) |
Deferred: | |||
Federal | (386) | 570 | 176 |
State | (141) | (72) | 14 |
Total deferred | (527) | 498 | 190 |
Total continuing operations | (739) | 281 | 177 |
Discontinued operations | (34) | 0 | (11) |
Total | (773) | 281 | 166 |
SCE | |||
Current: | |||
Federal | (51) | (253) | 75 |
State | (93) | (81) | 93 |
Total current | (144) | (334) | 168 |
Deferred: | |||
Federal | (354) | 265 | 112 |
State | (198) | 39 | (24) |
Total deferred | (552) | 304 | 88 |
Total continuing operations | (696) | (30) | 256 |
Discontinued operations | 0 | 0 | 0 |
Total | $ (696) | $ (30) | $ 256 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | |||
Franchise fees billed to customers | $ 133 | $ 133 | $ 111 |
Rate recovery period | 24 months |
Income Taxes (Components of Net
Income Taxes (Components of Net Accumulated Deferred Income Tax Liability) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets: | |||||
Property and software related | $ 399 | $ 358 | |||
Wildfire reserve | 709 | 0 | |||
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 323 | 404 | |||
Loss and credit carryforwards | 1,375 | 1,346 | |||
Regulatory asset | 798 | 812 | |||
Pension and postretirement benefits other than pensions, net | 171 | 178 | |||
Other | 188 | 277 | |||
Sub-total | 3,963 | 3,375 | |||
Less: valuation allowance4 | 36 | 28 | |||
Total | 3,927 | 3,347 | |||
Deferred tax liabilities: | |||||
Property-related | 7,497 | 6,970 | |||
Capitalized software costs | 188 | 160 | |||
Regulatory liability | 367 | 158 | |||
Nuclear decommissioning trust assets | 323 | 404 | |||
Other | 57 | 140 | |||
Total | 8,432 | 7,832 | |||
Accumulated deferred income tax liability, net | 4,505 | 4,485 | |||
Unrecognized tax benefits | 338 | 432 | $ 471 | $ 529 | |
Regulatory asset | 788 | 809 | |||
Recorded valuation allowance | 32 | ||||
Capital loss from sale of SoCore Energy | |||||
Deferred tax liabilities: | |||||
Recorded valuation allowance | $ 4 | 4 | |||
Loss And Credit Carryforwards | |||||
Deferred tax liabilities: | |||||
Unrecognized tax benefits | 178 | ||||
SCE | |||||
Deferred tax assets: | |||||
Property and software related | 388 | 357 | |||
Wildfire reserve | 709 | 0 | |||
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 323 | 404 | |||
Loss and credit carryforwards | 154 | 150 | |||
Regulatory asset | 798 | 812 | |||
Pension and postretirement benefits other than pensions, net | 46 | 50 | |||
Other | 184 | 236 | |||
Sub-total | 2,602 | 2,009 | |||
Less: valuation allowance4 | 0 | 0 | |||
Total | 2,602 | 2,009 | |||
Deferred tax liabilities: | |||||
Property-related | 7,497 | 6,962 | |||
Capitalized software costs | 188 | 160 | |||
Regulatory liability | 367 | 158 | |||
Nuclear decommissioning trust assets | 323 | 404 | |||
Other | 54 | 133 | |||
Total | 8,429 | 7,817 | |||
Accumulated deferred income tax liability, net | 5,827 | 5,808 | |||
Unrecognized tax benefits | 249 | $ 331 | $ 371 | $ 353 | |
SCE | Loss And Credit Carryforwards | |||||
Deferred tax liabilities: | |||||
Unrecognized tax benefits | $ 97 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Accumulated deferred income net income tax liabilities | $ 4,500 | |||
Re-measurement of federal net operating loss carryforwards | 466 | |||
Unrecognized tax benefits that would impact the effective tax rate | 308 | $ 197 | $ 347 | |
Tax Years 2007 To 2012 | ||||
Income Tax Disclosure [Line Items] | ||||
Expected refund | 7 | |||
Tax Years 1994 to 2006 | ||||
Income Tax Disclosure [Line Items] | ||||
Expected refund | 103 | |||
California Franchise Tax Board | Tax Years 1994 to 2006 | ||||
Income Tax Disclosure [Line Items] | ||||
Expected refund | 65 | |||
Capistrano Wind | Affiliated Entity | Tax Allocation Agreement | ||||
Income Tax Disclosure [Line Items] | ||||
Due to affiliate under tax allocation agreements | 199 | 212 | ||
SCE | ||||
Income Tax Disclosure [Line Items] | ||||
Accumulated deferred income net income tax liabilities | 5,000 | |||
Changes to earnings charge | 33 | |||
Unrecognized tax benefits that would impact the effective tax rate | $ 167 | 95 | $ 243 | |
SCE | Tax Years 1994 to 2006 | ||||
Income Tax Disclosure [Line Items] | ||||
Expected refund | 70 | |||
EME | Tax Years 1994 to 2006 | ||||
Income Tax Disclosure [Line Items] | ||||
Expected refund | $ 34 | |||
Forecast | SCE | ||||
Income Tax Disclosure [Line Items] | ||||
Changes to earnings charge | $ (70) |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss and Tax Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Tax Credit Carryforward [Line Items] | |
Loss Carryforwards, Expiring 2021 to 2038 | $ 1,073 |
Loss Carryforwards, No expiration date | 0 |
Loss Carryforwards | 1,073 |
Credit Carryforward, Expiring 2021 to 2038 | 469 |
Credit Carryforward, No expiration date | 11 |
Credit Carryforwards | 480 |
SCE | |
Tax Credit Carryforward [Line Items] | |
Loss Carryforwards, Expiring 2021 to 2038 | 203 |
Loss Carryforwards, No expiration date | 0 |
Loss Carryforwards | 203 |
Credit Carryforward, Expiring 2021 to 2038 | 26 |
Credit Carryforward, No expiration date | 22 |
Credit Carryforwards | $ 48 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
(Loss) income from continuing operations before income taxes | $ (1,089) | $ 949 | $ 1,590 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively1 | (229) | 332 | 556 |
Increase in income tax from: | |||
State tax, net of federal benefit | (168) | 2 | 29 |
Property-related | (275) | (439) | (362) |
Change related to uncertain tax positions | (66) | (18) | (4) |
Revised San Onofre Settlement Agreement | 0 | 25 | 0 |
Share-based compensation | (2) | (55) | (28) |
Deferred tax re-measurement | 0 | 466 | 0 |
Other | 1 | (32) | (14) |
Total continuing operations | $ (739) | $ 281 | $ 177 |
Effective tax rate | (67.90%) | 29.60% | 11.10% |
State | |||
Increase in income tax from: | |||
Share-based compensation | $ (11) | $ (4) | |
SCE | |||
Income Tax Disclosure [Line Items] | |||
(Loss) income from continuing operations before income taxes | $ (885) | 1,106 | 1,755 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively1 | (186) | 387 | 614 |
Increase in income tax from: | |||
State tax, net of federal benefit | (155) | 8 | 43 |
Property-related | (275) | (439) | (362) |
Change related to uncertain tax positions | (71) | (13) | (8) |
Revised San Onofre Settlement Agreement | 0 | 25 | 0 |
Share-based compensation | (1) | (11) | (13) |
Deferred tax re-measurement | 0 | 33 | 0 |
Other | (8) | (20) | (18) |
Total continuing operations | $ (696) | $ (30) | $ 256 |
Effective tax rate | (78.60%) | (2.70%) | 14.60% |
SCE | State | |||
Increase in income tax from: | |||
Share-based compensation | $ (2) | $ (1) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $ 432 | $ 471 | $ 529 |
Tax positions taken during the current year, Increases | 41 | 51 | 36 |
Tax positions taken during a prior year, Increases | 0 | 0 | 2 |
Tax positions taken during a prior year, Decreases | (108) | (7) | (96) |
Tax positions taken during a prior year, Decreases for settlements during the period | (27) | (83) | 0 |
Balance at December 31, | 338 | 432 | 471 |
SCE | |||
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | 331 | 371 | 353 |
Tax positions taken during the current year, Increases | 42 | 51 | 36 |
Tax positions taken during a prior year, Increases | 0 | 0 | 0 |
Tax positions taken during a prior year, Decreases | (121) | (13) | (18) |
Tax positions taken during a prior year, Decreases for settlements during the period | (3) | (78) | 0 |
Balance at December 31, | $ 249 | $ 331 | $ 371 |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties Related to Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | $ 37 | $ 115 | |
Net after-tax interest and penalties tax (benefit) expense | (62) | 6 | $ 6 |
SCE | |||
Income Tax Disclosure [Line Items] | |||
Accrued interest and penalties | 6 | 41 | |
Net after-tax interest and penalties tax (benefit) expense | $ (25) | $ 4 | $ 2 |
Compensation and Benefit Plan_2
Compensation and Benefit Plans (Employee Savings Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 74 | $ 70 | $ 69 |
SCE | |||
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 74 | $ 69 | $ 68 |
Compensation and Benefit Plan_3
Compensation and Benefit Plans (Textual) (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)planshares | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumed average equity risk premium (percent) | 5.00% | ||
Forecasted return on private equity and opportunistic investments (percent) | 2.00% | ||
Performance incentive plan award (shares) | shares | 66 | ||
Share-based compensation, shares available for grant | shares | 28 | ||
Stock options | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Stock options, expiration period, years | 10 years | ||
Stock options, vesting period, years | 4 years | ||
Volatility period | 68 months | 68 months | 71 months |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected contributions | $ 84 | ||
Permissible range of asset class weights (percent) | 3.00% | ||
Publicly traded equity investments located in the US (percent) | 61.00% | 67.00% | |
Pension Plans | US Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 25.00% | ||
Pension Plans | Non-US Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 17.00% | ||
Pension Plans | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 40.00% | ||
Pension Plans | Opportunistic Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 12.00% | ||
Pension Plans | Other Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 6.00% | ||
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected contributions | $ 23 | ||
Eligibility age | 55 years | ||
Service period for eligibility (at least) (years) | 10 years | ||
Publicly traded equity investments located in the US (percent) | 64.00% | 61.00% | |
Postretirement Benefits Other Than Pensions | US Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 58.00% | ||
Postretirement Benefits Other Than Pensions | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 29.00% | ||
Postretirement Benefits Other Than Pensions | Opportunistic Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 13.00% | ||
Voluntary Employee Beneficiary Association (VEBA) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 85.00% | ||
Voluntary Employee Beneficiary Association (VEBA) | Opportunistic Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 5.00% | ||
Voluntary Employee Beneficiary Association (VEBA) | Global Equities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target plan asset allocations (percent) | 10.00% | ||
SCE | Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected contributions | $ 57 | ||
SCE | Voluntary Employee Beneficiary Association (VEBA) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of plans | plan | 3 |
Compensation and Benefit Plan_4
Compensation and Benefit Plans (Plan Assets and Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term liabilities | $ (869) | $ (943) | |
SCE | |||
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term liabilities | (433) | (483) | |
Pension Plans | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 4,179 | 4,284 | |
Service cost | 126 | 137 | |
Interest cost | 141 | 164 | |
Actuarial (gain) loss | (280) | (46) | |
Benefits paid | (286) | (360) | |
Projected benefit obligation at end of year | 3,880 | 4,179 | $ 4,284 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 3,616 | 3,388 | |
Actual return on plan assets | (86) | 483 | |
Employer contributions | 77 | 105 | |
Benefits paid | (286) | (360) | |
Fair value of plan assets at end of year | 3,321 | 3,616 | 3,388 |
Funded status at end of year | (559) | (563) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 2 | 7 | |
Current liabilities | (29) | (17) | |
Long-term liabilities | (532) | (553) | |
Amounts recognized in the consolidated balance sheets | (559) | (563) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Prior service cost | (1) | (1) | |
Net loss | 83 | 77 | |
Total amounts recognized in accumulated other comprehensive loss | (82) | (76) | |
Amounts recognized as a regulatory liability | 271 | 271 | |
Total not yet recognized as income | 353 | 347 | |
Accumulated benefit obligation at end of year | 3,753 | 4,022 | |
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 3,880 | 4,179 | |
Accumulated benefit obligation | 3,753 | 4,022 | |
Fair value of plan assets | $ 3,321 | $ 3,616 | |
Weighted-average assumptions used to determine obligations at end of year: | |||
Discount rate | 4.19% | 3.46% | |
Rate of compensation increase | 4.10% | 4.10% | |
Pension Plans | Edison International | |||
Assumed health care cost trend rates: | |||
Long-term payable | $ 117 | $ 114 | |
Pension Plans | SCE | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 3,702 | 3,791 | |
Service cost | 121 | 129 | |
Interest cost | 124 | 144 | |
Actuarial (gain) loss | (273) | (74) | |
Benefits paid | (243) | (288) | |
Projected benefit obligation at end of year | 3,431 | 3,702 | 3,791 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 3,390 | 3,172 | |
Actual return on plan assets | (86) | 442 | |
Employer contributions | 52 | 64 | |
Benefits paid | (232) | (288) | |
Fair value of plan assets at end of year | 3,124 | 3,390 | 3,172 |
Funded status at end of year | (307) | (312) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 0 | 0 | |
Current liabilities | (5) | (4) | |
Long-term liabilities | (302) | (308) | |
Amounts recognized in the consolidated balance sheets | (307) | (312) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Prior service cost | 0 | 0 | |
Net loss | 17 | 21 | |
Total amounts recognized in accumulated other comprehensive loss | (17) | (21) | |
Amounts recognized as a regulatory liability | 271 | 271 | |
Total not yet recognized as income | 288 | 292 | |
Accumulated benefit obligation at end of year | 3,342 | 3,585 | |
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 3,431 | 3,702 | |
Accumulated benefit obligation | 3,342 | 3,585 | |
Fair value of plan assets | $ 3,124 | $ 3,390 | |
Weighted-average assumptions used to determine obligations at end of year: | |||
Discount rate | 4.19% | 3.46% | |
Rate of compensation increase | 4.10% | 4.10% | |
Assumed health care cost trend rates: | |||
Net loss reclassified from other comprehensive loss | $ 21 | $ 19 | |
Postretirement Benefits Other Than Pensions | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 2,337 | 2,276 | |
Service cost | 37 | 31 | 35 |
Interest cost | 80 | 86 | 97 |
Special termination benefits | 0 | 1 | |
Actuarial (gain) loss | (382) | 24 | |
Plan participants' contributions | 28 | 24 | |
Benefits paid | (114) | (105) | |
Projected benefit obligation at end of year | 1,986 | 2,337 | 2,276 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,330 | 2,102 | |
Actual return on plan assets | (123) | 297 | |
Employer contributions | 13 | 12 | |
Plan participants' contributions | 28 | 24 | |
Benefits paid | (115) | (105) | |
Fair value of plan assets at end of year | 2,133 | 2,330 | 2,102 |
Funded status at end of year | 147 | (7) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 159 | 6 | |
Current liabilities | (12) | (13) | |
Long-term liabilities | 0 | 0 | |
Amounts recognized in the consolidated balance sheets | 147 | (7) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Total amounts recognized in accumulated other comprehensive loss | (1) | (4) | |
Amounts recognized as a regulatory liability | (185) | (26) | |
Total not yet recognized as income | $ (184) | $ (22) | |
Weighted-average assumptions used to determine obligations at end of year: | |||
Discount rate | 4.35% | 3.70% | |
Assumed health care cost trend rates: | |||
Rate assumed for following year | 6.75% | 6.75% | |
Ultimate rate | 5.00% | 5.00% | |
Gain from increase in discount rate | $ (195) | ||
Experience gain | (137) | ||
Postretirement Benefits Other Than Pensions | SCE | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 2,325 | $ 2,266 | |
Service cost | 37 | 31 | 34 |
Interest cost | 80 | 85 | 97 |
Special termination benefits | 0 | 1 | |
Actuarial (gain) loss | (379) | 23 | |
Plan participants' contributions | 28 | 24 | |
Benefits paid | (114) | (105) | |
Projected benefit obligation at end of year | 1,977 | 2,325 | 2,266 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,330 | 2,102 | |
Actual return on plan assets | (123) | 297 | |
Employer contributions | 12 | 12 | |
Plan participants' contributions | 28 | 24 | |
Benefits paid | (114) | (105) | |
Fair value of plan assets at end of year | 2,133 | 2,330 | $ 2,102 |
Funded status at end of year | 156 | 5 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 168 | 17 | |
Current liabilities | (12) | (12) | |
Long-term liabilities | 0 | 0 | |
Amounts recognized in the consolidated balance sheets | 156 | 5 | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Total amounts recognized in accumulated other comprehensive loss | 0 | 0 | |
Amounts recognized as a regulatory liability | (185) | (26) | |
Total not yet recognized as income | $ (185) | $ (26) | |
Weighted-average assumptions used to determine obligations at end of year: | |||
Discount rate | 4.35% | 3.70% | |
Assumed health care cost trend rates: | |||
Rate assumed for following year | 6.75% | 6.75% | |
Ultimate rate | 5.00% | 5.00% | |
Gain from increase in discount rate | $ (194) | ||
Experience gain | $ 135 |
Compensation and Benefit Plan_5
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | $ 126 | $ 137 | |
Non-service cost | |||
Interest cost | 141 | 164 | |
Settlement loss | 6.4 | ||
Settlement loss, net of tax | 3.8 | ||
Other | 9 | 10 | $ 10 |
Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Service cost | 37 | 31 | 35 |
Non-service cost | |||
Interest cost | 80 | 86 | 97 |
Expected return on plan assets | (121) | (110) | (112) |
Settlement costs | 0 | 1 | 2 |
Amortization of prior service cost | (1) | (3) | (2) |
Regulatory adjustment (deferred) | 24 | 0 | 0 |
Total non-service benefit | (18) | (26) | (15) |
Total expense | 19 | 5 | 20 |
SCE | |||
Non-service cost | |||
Total non-service benefit | (81) | (51) | (35) |
SCE | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | 121 | 129 | |
Non-service cost | |||
Interest cost | 124 | 144 | |
Other | 6 | 6 | 6 |
SCE | Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Service cost | 37 | 31 | 34 |
Non-service cost | |||
Interest cost | 80 | 85 | 97 |
Expected return on plan assets | (122) | (110) | (112) |
Settlement costs | 0 | 1 | 2 |
Amortization of prior service cost | (1) | (2) | (2) |
Regulatory adjustment (deferred) | 24 | 0 | 0 |
Total non-service benefit | (19) | (26) | (15) |
Total expense | 18 | 5 | 19 |
Continuing Operations | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | 126 | 138 | 139 |
Non-service cost | |||
Interest cost | 140 | 164 | 172 |
Expected return on plan assets | (228) | (212) | (220) |
Settlement costs | 0 | 6 | 0 |
Amortization of prior service cost | 3 | 3 | 4 |
Amortization of net loss | 9 | 21 | 27 |
Regulatory adjustment (deferred) | 15 | (28) | (21) |
Total non-service benefit | (61) | (46) | (38) |
Total expense recognized | 65 | 92 | 101 |
Continuing Operations | SCE | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | 123 | 133 | 136 |
Non-service cost | |||
Interest cost | 128 | 149 | 156 |
Expected return on plan assets | (214) | (199) | (205) |
Settlement costs | 0 | 0 | 0 |
Amortization of prior service cost | 3 | 3 | 4 |
Amortization of net loss | 6 | 17 | 23 |
Regulatory adjustment (deferred) | 15 | (28) | (21) |
Total non-service benefit | (62) | (58) | (43) |
Total expense recognized | $ 61 | $ 75 | $ 93 |
Compensation and Benefit Plan_6
Compensation and Benefit Plans (Changes in Plan Assets and Benefits Obligations Recognized in OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Unrecognized net loss to be amortized | $ (3) | ||
Unrecognized prior service cost (credit) to be amortized | (1) | ||
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Net loss | 5 | $ 0 | $ 6 |
Settlement charges | 0 | (6) | 0 |
Amortization of net loss | (9) | (10) | (10) |
Total recognized in other comprehensive loss | (4) | (16) | (4) |
Total recognized in expense and other comprehensive loss | 61 | 76 | 97 |
Unrecognized net loss to be amortized | 8 | ||
Unrecognized prior service cost (credit) to be amortized | 2 | ||
Amount of net loss expected to be reclassified from other comprehensive loss | 8 | ||
SCE | Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Unrecognized net loss to be amortized | (3) | ||
Unrecognized prior service cost (credit) to be amortized | (1) | ||
SCE | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Net loss | 5 | 3 | 4 |
Settlement charges | 0 | 0 | 0 |
Amortization of net loss | (6) | (6) | (6) |
Total recognized in other comprehensive loss | (1) | (3) | (2) |
Total recognized in expense and other comprehensive loss | 60 | $ 72 | $ 91 |
Unrecognized net loss to be amortized | 6 | ||
Unrecognized prior service cost (credit) to be amortized | 2 | ||
Amount of net loss expected to be reclassified from other comprehensive loss | $ 6 |
Compensation and Benefit Plan_7
Compensation and Benefit Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postretirement Benefits Other Than Pensions | |||
Assumed health care cost trend rates: | |||
Ultimate rate | 5.00% | 5.00% | |
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 3.46% | 3.94% | 4.18% |
Rate of compensation increase | 4.10% | 4.00% | 4.00% |
Expected long-term return on plan assets | 6.50% | 6.50% | 7.00% |
Continuing Operations | Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 3.70% | 4.29% | 4.55% |
Expected long-term return on plan assets | 5.30% | 5.30% | 5.60% |
Assumed health care cost trend rates: | |||
Current year | 6.75% | 7.00% | 7.50% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Compensation and Benefit Plan_8
Compensation and Benefit Plans (Expected Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plans | |
Years ended December 31, | |
2,019 | $ 342 |
2,020 | 323 |
2,021 | 323 |
2,022 | 313 |
2,023 | 301 |
2024 – 2028 | 1,446 |
Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2,019 | 91 |
2,020 | 94 |
2,021 | 97 |
2,022 | 100 |
2,023 | 103 |
2024 – 2028 | 553 |
SCE | Pension Plans | |
Years ended December 31, | |
2,019 | 299 |
2,020 | 289 |
2,021 | 285 |
2,022 | 281 |
2,023 | 274 |
2024 – 2028 | 1,280 |
SCE | Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2,019 | 91 |
2,020 | 94 |
2,021 | 97 |
2,022 | 99 |
2,023 | 102 |
2024 – 2028 | $ 550 |
Compensation and Benefit Plan_9
Compensation and Benefit Plans (Effect of Change in One Percent) (Details) - Postretirement Benefits Other Than Pensions $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect on ABO of one-percentage-point increase in assumed health care cost trend rate | $ 210 |
Effect on ABO of one-percentage-point decrease in assumed health care cost trend rate | (173) |
Effect on annual aggregate service and interest costs of one-percentage-point increase in assumed health care cost trend rate | 11 |
Effect on annual aggregate service and interest costs of one-percentage-point decrease in assumed health care cost trend rate | (9) |
SCE | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect on ABO of one-percentage-point increase in assumed health care cost trend rate | 209 |
Effect on ABO of one-percentage-point decrease in assumed health care cost trend rate | (172) |
Effect on annual aggregate service and interest costs of one-percentage-point increase in assumed health care cost trend rate | 11 |
Effect on annual aggregate service and interest costs of one-percentage-point decrease in assumed health care cost trend rate | $ (9) |
Compensation and Benefit Pla_10
Compensation and Benefit Plans (Pension Plan Assets - Fair Value Levels) (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 3,393 | $ 3,714 | |
Fair value NAV | 1,098 | 1,363 | |
Receivables and payables, net | (72) | (98) | |
Net plan assets available for benefits | 3,321 | 3,616 | $ 3,388 |
Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 697 | 1,051 | |
Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 1,598 | 1,300 | |
Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
U.S. government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 1,047 | 691 | |
Fair value NAV | 0 | 0 | |
U.S. government and agency securities | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 110 | 184 | |
U.S. government and agency securities | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 937 | 507 | |
U.S. government and agency securities | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate stocks | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 479 | 729 | |
Fair value NAV | $ 0 | $ 0 | |
Corporate stocks | Russell Indexes | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 43.00% | 54.00% | |
Corporate stocks | MSCI | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 57.00% | 46.00% | |
Corporate stocks | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 473 | $ 718 | |
Corporate stocks | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 6 | 11 | |
Corporate stocks | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 582 | 676 | |
Fair value NAV | 0 | 0 | |
Corporate bonds | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 582 | 676 | |
Corporate bonds | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Common/collective funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 426 | 705 | |
Fair value NAV | $ 426 | $ 705 | |
Common/collective funds | Standard and Poor's 500 | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 43.00% | 41.00% | |
Common/collective funds | Russell 1000 index | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 14.00% | 15.00% | |
Common/collective funds | MSCI All Country World Index exUS | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 21.00% | 15.00% | |
Common/collective funds | Non-index U.S. equity fund | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 15.00% | 25.00% | |
Common/collective funds | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | $ 0 | |
Common/collective funds | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Common/collective funds | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Partnerships/joint ventures | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 434 | 396 | |
Fair value NAV | $ 434 | $ 396 | |
Partnerships/joint ventures | Private equity and venture capital funds including branded consumer products, clean and information technology and healthcare | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 50.00% | 55.00% | |
Partnerships/joint ventures | Broad range of financial assets in all global markets | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 30.00% | 20.00% | |
Partnerships/joint ventures | Publicly traded fixed income securities | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 16.00% | 23.00% | |
Partnerships/joint ventures | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | $ 0 | |
Partnerships/joint ventures | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Partnerships/joint ventures | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Other investment entities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 236 | 262 | |
Fair value NAV | 236 | 262 | |
Other investment entities | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Other investment entities | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Other investment entities | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Registered investment companies | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 114 | 140 | |
Fair value NAV | 2 | 0 | |
Registered investment companies | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 112 | 140 | |
Registered investment companies | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Registered investment companies | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Interest-bearing cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 2 | 9 | |
Fair value NAV | 0 | 0 | |
Interest-bearing cash | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 2 | 9 | |
Interest-bearing cash | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Interest-bearing cash | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Other | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 73 | 106 | |
Fair value NAV | 0 | 0 | |
Other | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Other | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 73 | 106 | |
Other | Level 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
Collateralized mortgage obligations and other asset backed securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 60 | 65 | |
SCE | |||
Pension and Other Postretirement Benefits | |||
Net plan assets available for benefits | $ 3,124 | $ 3,390 | $ 3,172 |
Compensation and Benefit Pla_11
Compensation and Benefit Plans (Other Postretirement Plan Assets - Fair Value Levels) (Details) - Postretirement Benefits Other Than Pensions - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets available for benefits | $ 2,133 | $ 2,330 | $ 2,102 |
Corporate stocks | Russell Indexes | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Performance percentage benchmark, percentage | 67.00% | 64.00% | |
Corporate stocks | MSCI All Country World Index | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Performance percentage benchmark, percentage | 33.00% | 36.00% | |
Common/collective funds | MSCI-EAFE | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 74.00% | 75.00% | |
Common/collective funds | Non-index U.S. equity fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 19.00% | 17.00% | |
Partnerships | Private equity and venture capital funds including branded consumer products, clean and information technology and healthcare | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 48.00% | 56.00% | |
Partnerships | Broad range of financial assets in all global markets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 34.00% | 33.00% | |
Partnerships | Asset backed securities including distressed mortgages | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 17.00% | 9.00% | |
Other | Municipal securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 58 | $ 60 | |
Collateralized mortgage obligations and other asset backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Receivables and payables, net | 59 | 36 | |
SCE | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,155 | 2,349 | |
Fair value NAV | 584 | 651 | |
Receivables and payables, net | (22) | (19) | |
Net plan assets available for benefits | 2,133 | 2,330 | $ 2,102 |
SCE | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 591 | 736 | |
SCE | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 980 | 962 | |
SCE | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | U.S. government and agency securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 371 | 431 | |
Fair value NAV | 0 | 0 | |
SCE | U.S. government and agency securities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 322 | 398 | |
SCE | U.S. government and agency securities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 49 | 33 | |
SCE | U.S. government and agency securities | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Corporate stocks | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 204 | 254 | |
Fair value NAV | 0 | 0 | |
SCE | Corporate stocks | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 204 | 254 | |
SCE | Corporate stocks | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Corporate stocks | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Corporate notes and bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 832 | 845 | |
Fair value NAV | 0 | 0 | |
SCE | Corporate notes and bonds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Corporate notes and bonds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 832 | 845 | |
SCE | Corporate notes and bonds | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Common/collective funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 495 | 569 | |
Fair value NAV | 495 | 569 | |
SCE | Common/collective funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Common/collective funds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Common/collective funds | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Partnerships | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 89 | 82 | |
Fair value NAV | 89 | 82 | |
SCE | Partnerships | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Partnerships | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Partnerships | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Registered investment companies | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 38 | 37 | |
Fair value NAV | 0 | 0 | |
SCE | Registered investment companies | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 38 | 37 | |
SCE | Registered investment companies | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Registered investment companies | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Interest bearing cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 22 | 42 | |
Fair value NAV | 0 | 0 | |
SCE | Interest bearing cash | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 22 | 42 | |
SCE | Interest bearing cash | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Interest bearing cash | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
SCE | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 104 | 89 | |
Fair value NAV | 0 | 0 | |
SCE | Other | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
SCE | Other | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 99 | 84 | |
SCE | Other | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Compensation and Benefit Pla_12
Compensation and Benefit Plans (Expense and Tax Benefits of Stock Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 21 | $ 23 | $ 34 |
Income tax benefits related to stock compensation expense | 6 | 72 | 41 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 11 | 14 | 14 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1 | 2 | 13 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 7 | 6 | 6 |
Other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 1 | 1 |
SCE | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 11 | 13 | 16 |
Income tax benefits related to stock compensation expense | 3 | 15 | 20 |
SCE | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 6 | 8 | 7 |
SCE | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1 | 2 | 6 |
SCE | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4 | 3 | 3 |
SCE | Other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 |
Compensation and Benefit Pla_13
Compensation and Benefit Plans (Black-Scholes Option Pricing Model Assumptions) (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected terms (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 10 months 24 days |
Risk-free interest rate, minimum | 2.60% | 2.10% | 1.20% |
Risk-free interest rate, maximum | 3.00% | 2.30% | 2.20% |
Weighted-average expected dividend yield | 3.80% | 2.70% | 2.90% |
Expected volatility, minimum | 20.90% | 17.80% | 17.20% |
Expected volatility, maximum | 21.90% | 20.90% | 17.50% |
Weighted-average volatility | 20.90% | 17.90% | 17.40% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 3.60% | 2.70% | 2.50% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 4.30% | 3.80% | 3.00% |
Compensation and Benefit Pla_14
Compensation and Benefit Plans (Stock Option Activity) (Details) - Stock options $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ | $ 3 |
Stock options | |
Beginning balance (number of options) | shares | 7,822,565 |
Grants (number of options) | shares | 1,785,538 |
Forfeited or expired (number of options) | shares | (222,392) |
Exercised (number of options) | shares | (552,101) |
Ending balance (number of options) | shares | 8,833,610 |
Vested and expected to vest (number of options) | shares | 8,726,445 |
Exercisable (number of options) | shares | 5,145,292 |
Exercise Price | |
Beginning balance, weighted average exercise price (dollars per share) | $ / shares | $ 58.98 |
Granted, weighted average exercise price (dollars per share) | $ / shares | 60.83 |
Forfeited or expired, weighted average exercise price (dollars per share) | $ / shares | 69.59 |
Exercised, weighted average exercise price (dollars per share) | $ / shares | 47.33 |
Ending balance, weighted average exercise price (dollars per share) | $ / shares | 59.81 |
Vested and expected to vest, weighted average exercise price (dollars per share) | $ / shares | 59.76 |
Exercisable, weighted average exercise price (dollars per share) | $ / shares | $ 54.77 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2016 (term) | 6 years 1 month 17 days |
Vested and expected to vest at December 31, 2016 (term) | 6 years 1 month 6 days |
Exercisable at December 31, 2016 (term) | 4 years 8 months 27 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2018 | $ | $ 34 |
Exercisable at December 31, 2018 | $ | 34 |
SCE | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ | $ 2 |
Stock options | |
Beginning balance (number of options) | shares | 4,445,702 |
Grants (number of options) | shares | 960,240 |
Forfeited or expired (number of options) | shares | (125,260) |
Exercised (number of options) | shares | (288,302) |
Transfers, net (number of options) | shares | 44,805 |
Ending balance (number of options) | shares | 5,037,185 |
Vested and expected to vest (number of options) | shares | 4,982,445 |
Exercisable (number of options) | shares | 3,089,466 |
Exercise Price | |
Beginning balance, weighted average exercise price (dollars per share) | $ / shares | $ 56.46 |
Granted, weighted average exercise price (dollars per share) | $ / shares | 60.86 |
Forfeited or expired, weighted average exercise price (dollars per share) | $ / shares | 68.90 |
Exercised, weighted average exercise price (dollars per share) | $ / shares | 41.57 |
Transfers, net, weighted average exercise price (dollars per share) | $ / shares | 55.74 |
Ending balance, weighted average exercise price (dollars per share) | $ / shares | 57.84 |
Vested and expected to vest, weighted average exercise price (dollars per share) | $ / shares | 57.77 |
Exercisable, weighted average exercise price (dollars per share) | $ / shares | $ 52.15 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2016 (term) | 5 years 9 months 15 days |
Vested and expected to vest at December 31, 2016 (term) | 5 years 9 months |
Exercisable at December 31, 2016 (term) | 4 years 3 months 29 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2018 | $ | $ 25 |
Exercisable at December 31, 2018 | $ | $ 25 |
Compensation and Benefit Pla_15
Compensation and Benefit Plans (Unrecognized Compensation Costs) (Details) - Stock options $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 15 |
Weighted-average period (in years) | 2 years 4 months 24 days |
SCE | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures | $ 8 |
Weighted-average period (in years) | 2 years 2 months 12 days |
Compensation and Benefit Pla_16
Compensation and Benefit Plans (Supplemental Data on Stock Options) (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (dollars per share) | $ 8.21 | $ 10.65 | $ 7.38 |
Fair value of options vested | $ 14 | $ 11 | $ 11 |
Value of options exercised | $ 10 | $ 126 | $ 84 |
SCE | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (dollars per share) | $ 8.22 | $ 10.63 | $ 7.50 |
Fair value of options vested | $ 7 | $ 5 | $ 5 |
Value of options exercised | $ 7 | $ 29 | $ 41 |
Compensation and Benefit Pla_17
Compensation and Benefit Plans (Nonvested Performance Share Activity) (Details) - Performance shares | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Beginning balance (number of shares) | 179,122 |
Granted (number of shares) | 119,345 |
Forfeited (number of shares) | (51,281) |
Vested (number of shares) | (53,748) |
Ending balance (number of shares) | 193,438 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 63.85 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 42.81 |
SCE | |
Shares | |
Beginning balance (number of shares) | 88,722 |
Granted (number of shares) | 64,335 |
Forfeited (number of shares) | (27,331) |
Vested (number of shares) | (24,574) |
Affiliate transfers, net (number of shares) | 706 |
Ending balance (number of shares) | 101,858 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 64.01 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 42.96 |
Compensation and Benefit Pla_18
Compensation and Benefit Plans (Restricted Stock Unit Activity) (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock Units | |
Beginning balance (number of shares) | shares | 303,051 |
Granted (number of shares) | shares | 120,606 |
Forfeited (number of shares) | shares | (8,225) |
Vested (number of shares) | shares | (123,646) |
Affiliate transfers, net (number of shares) | shares | 0 |
Ending balance (number of shares) | shares | 291,786 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 69.52 |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 60.83 |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 68.76 |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 64.43 |
Affiliate transfers, net, weighted average grant date fair value (dollars per share) | $ / shares | 0 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 68.11 |
SCE | |
Restricted Stock Units | |
Beginning balance (number of shares) | shares | 141,418 |
Granted (number of shares) | shares | 64,919 |
Forfeited (number of shares) | shares | (7,973) |
Vested (number of shares) | shares | (51,667) |
Affiliate transfers, net (number of shares) | shares | 1,129 |
Ending balance (number of shares) | shares | 147,826 |
Weighted-Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 69.96 |
Granted, weighted average grant date fair value (dollars per share) | $ / shares | 60.87 |
Forfeited, weighted average grant date fair value (dollars per share) | $ / shares | 68.97 |
Vested, weighted average grant date fair value (dollars per share) | $ / shares | 64.07 |
Affiliate transfers, net, weighted average grant date fair value (dollars per share) | $ / shares | 68.64 |
Ending balance, weighted average grant date fair value (dollars per share) | $ / shares | $ 68.08 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 4,120 | $ 4,440 |
SCE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,501 | 2,803 |
Fair Value | 4,120 | 4,440 |
SCE | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 236 | |
SCE | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 665 | 643 |
SCE | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,193 | 1,235 |
SCE | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 573 | 579 |
SCE | Short-term investments and receivables/payables1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 70 | 110 |
SCE | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,263 | 4,499 |
SCE | Fair Value, Measurements, Recurring | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,381 | 1,596 |
SCE | Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 767 | 768 |
SCE | Fair Value, Measurements, Recurring | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,288 | 1,319 |
SCE | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 611 | 643 |
SCE | Fair Value, Measurements, Recurring | Short-term investments and receivables/payables1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 73 | 114 |
Repurchase agreements payable | $ 71 | $ 29 |
Investments (Nuclear Decommissi
Investments (Nuclear Decommissioning Trusts) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | ||
Unrealized holding gains, net of losses | $ 1,400 | $ 1,600 |
Other-than-temporary impairments | 170 | $ 143 |
Deferred income taxes related to unrealized gains | 323 | |
Nuclear decommissioning trusts | $ 3,800 |
Investments (Gains and Losses o
Investments (Gains and Losses on Equity Investments) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Holdings [Line Items] | |||
Gross realized gains | $ 134 | $ 244 | $ 92 |
Gross realized losses | (27) | (23) | (19) |
Net unrealized (losses) gains for equity securities | $ (233) | $ 142 | $ 75 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | 13 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Feb. 28, 2019 | Dec. 31, 2017 | Dec. 19, 2017 | |
Regulatory Assets [Line Items] | |||||
Regulatory assets | $ 5,380 | $ 5,380 | $ 4,914 | ||
SCE | |||||
Regulatory Assets [Line Items] | |||||
Regulatory assets | $ 5,380 | 5,380 | $ 4,914 | ||
Regulatory assets, energy derivatives, low range of contract expiration (in years) | 2 years | ||||
Regulatory assets, energy derivatives, high range of contract expiration (in years) | 5 years | ||||
Regulatory assets related to deferred income taxes, recovery period, low range (in years) | 1 year | ||||
Regulatory assets related to deferred income taxes, recovery period, high range (in years) | 60 years | ||||
Low end of the range of remaining original amortization (in years) | 10 years | ||||
High end of the range of remaining original amortization (in years) | 35 years | ||||
Wildfire insurance coverage | $ 1,000 | $ 300 | |||
Unamortized investments, net of accumulated amortization | SCE | |||||
Regulatory Assets [Line Items] | |||||
Return rate earned on assets included in rate base (as a percent) | 7.61% | 7.61% | 7.90% | ||
Regulatory assets | $ 118 | $ 118 | $ 123 | ||
Unamortized investments, net of accumulated amortization | SCE | Legacy Meters | |||||
Regulatory Assets [Line Items] | |||||
Return rate earned on assets included in rate base (as a percent) | 6.46% | ||||
San Onofre | SCE | |||||
Regulatory Assets [Line Items] | |||||
Regulatory assets | 0 | 0 | $ 72 | $ 775 | |
Revenue subject to refund | Catastrophic event memorandum account | SCE | |||||
Regulatory Assets [Line Items] | |||||
Net Regulatory Assets | 144 | 144 | 102 | ||
Revenue subject to refund | Wildfire expense memorandum account | SCE | |||||
Regulatory Assets [Line Items] | |||||
Net Regulatory Assets | 128 | 128 | 0 | ||
Revenue subject to refund | FERC Balancing Account | SCE | |||||
Regulatory Assets [Line Items] | |||||
Net Regulatory Assets | $ (180) | $ (180) | $ (205) | ||
Subsequent event | SCE | |||||
Regulatory Assets [Line Items] | |||||
Net Regulatory Assets | $ 107 | ||||
Subsequent event | Revenue subject to refund | Wildfire liability insurance recovery | SCE | |||||
Regulatory Assets [Line Items] | |||||
Net Regulatory Assets | $ 107 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 19, 2017USD ($) | |
Regulatory Assets [Line Items] | |||
Current regulatory assets | $ 1,133 | $ 703 | |
Long-term regulatory assets | 5,380 | 4,914 | |
SCE | |||
Regulatory Assets [Line Items] | |||
Current regulatory assets | 1,133 | 703 | |
Long-term regulatory assets | 5,380 | 4,914 | |
Total regulatory assets | 6,513 | 5,617 | |
SCE | Regulatory balancing accounts | |||
Regulatory Assets [Line Items] | |||
Current regulatory assets | 814 | 484 | |
Long-term regulatory assets | 360 | 143 | |
SCE | Power contracts | |||
Regulatory Assets [Line Items] | |||
Current regulatory assets | 305 | 203 | |
Long-term regulatory assets | 700 | 799 | |
SCE | Other | |||
Regulatory Assets [Line Items] | |||
Current regulatory assets | 14 | 16 | |
Long-term regulatory assets | 55 | 51 | |
SCE | Deferred income taxes, net of liabilities | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | 3,589 | 3,143 | |
SCE | Pensions and other postretirement benefits | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | 271 | 271 | |
SCE | Unamortized investments, net of accumulated amortization | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | 118 | 123 | |
SCE | San Onofre | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | 0 | 72 | $ 775 |
SCE | Unamortized loss on reacquired debt | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | 153 | 168 | |
SCE | Environmental remediation | |||
Regulatory Assets [Line Items] | |||
Long-term regulatory assets | $ 134 | $ 144 | |
SCE | Operating Leases Purchase Power Contracts | |||
Regulatory Assets [Line Items] | |||
Number of Contracts Amended | contract | 2 | ||
Termination payments next year | $ 100 | ||
Termination payments in two years | 77 | ||
Termination payments in three years | $ 29 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 1,532 | $ 1,121 |
Long-term regulatory liabilities | 8,329 | 8,614 |
SCE | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 1,532 | 1,121 |
Long-term regulatory liabilities | 8,329 | 8,614 |
Total regulatory liabilities | 9,861 | 9,735 |
SCE | Regulatory balancing accounts | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 1,080 | 1,009 |
Long-term regulatory liabilities | 1,344 | 1,316 |
SCE | Energy derivatives | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 158 | 74 |
SCE | Other | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 294 | 38 |
Long-term regulatory liabilities | 125 | 64 |
SCE | Costs of removal | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,769 | 2,741 |
SCE | Re-measurement of deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,776 | 2,892 |
SCE | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 1,130 | 1,575 |
SCE | Other postretirement benefits | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | $ 185 | $ 26 |
Regulatory Assets and Liabili_6
Regulatory Assets and Liabilities (Regulatory Balancing Accounts) (Details) - SCE - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory balancing accounts | Energy resource recovery account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | $ 815,000,000 | $ 464,000,000 | |
Regulatory balancing accounts | New system generation balancing account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (74,000,000) | (197,000,000) | |
Revenue subject to refund | Significant components | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (1,250,000,000) | (1,698,000,000) | |
Revenue subject to refund | Public purpose programs and energy efficiency programs | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (1,200,000,000) | (1,145,000,000) | |
Revenue subject to refund | Base revenue requirement balancing account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (628,000,000) | (200,000,000) | |
Revenue subject to refund | Tax accounting memorandum account and pole loading balancing account2 | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | 28,000,000 | (259,000,000) | |
Revenue subject to refund | DOE litigation memorandum account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (69,000,000) | (156,000,000) | |
Revenue subject to refund | Greenhouse gas auction revenue and low carbon fuel standard revenue | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (81,000,000) | (46,000,000) | |
Revenue subject to refund | Catastrophic event memorandum account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | 144,000,000 | 102,000,000 | |
Revenue subject to refund | Wildfire expense memorandum account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | 128,000,000 | 0 | |
Revenue subject to refund | FERC balancing accounts | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (180,000,000) | (205,000,000) | |
Revenue subject to refund | Other | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | (133,000,000) | $ (56,000,000) | |
Revenue subject to refund | Tax accounting memorandum reclassified to base revenue requirement balancing account | |||
Regulatory Assets and Liabilities | |||
Net regulatory assets (liabilities) pertaining to balancing accounts | $ 263,000,000 | ||
Forecast | Regulatory balancing accounts | Energy resource recovery account | |||
Regulatory Assets and Liabilities | |||
4% trigger amount | $ 213,000,000 | ||
5% trigger amount | $ 266,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Undiscounted Future Minimum Expected Payments for Power Purchase Agreements) (Details) - SCE - Power Purchase Agreements $ in Millions | Dec. 31, 2018USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,019 | $ 2,562 |
2,020 | 2,602 |
2,021 | 2,570 |
2,022 | 2,415 |
2,023 | 2,185 |
Thereafter | 23,855 |
Total future commitments | $ 36,189 |
Commitments and Contingencies_3
Commitments and Contingencies (Power Purchase Agreements Narrative) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Costs incurred for power purchase agreements | $ 3,800 | $ 3,600 | $ 3,300 |
Signed contracts, not meeting critical contract provisions | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2,019 | 66 | ||
2,020 | 176 | ||
2,021 | 189 | ||
2,022 | 184 | ||
2,023 | 183 | ||
Thereafter | 2,200 | ||
Operating Leases Purchase Power Contracts | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Terminated future commitments | 986 | ||
Termination payments next year | 100 | ||
Termination payments in two years | 77 | ||
Termination payments in three years | 29 | ||
Net operating leases expense | 2,300 | 2,300 | 1,900 |
Contingent operating lease expense | 2,100 | 1,800 | 1,400 |
Contingent capital lease expense | $ 104 | $ 99 | $ 109 |
Commitments and Contingencies_4
Commitments and Contingencies (Power Purchase Agreement - Operating and Capital Leases) (Details) - SCE $ in Millions | Dec. 31, 2018USD ($)contract |
Operating Leases | |
Operating Leases | |
2,019 | $ 148 |
2,020 | 124 |
2,021 | 103 |
2,022 | 79 |
2,023 | 47 |
Thereafter | 536 |
Total future commitments | 1,037 |
Capital Leases | |
Capital Leases | |
2,019 | 5 |
2,020 | 6 |
2,021 | 6 |
2,022 | 6 |
2,023 | 5 |
Thereafter | 66 |
Total future commitments | 94 |
Amount representing executory costs | (25) |
Amount representing interest | (33) |
Net commitments | 36 |
Capital leases commencing in 2019 | |
Capital Leases | |
Net commitments | $ 26 |
Number contracts | contract | 2 |
Commitments and Contingencies_5
Commitments and Contingencies (Other Lease Commitments) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Operating leases expense | $ 57 | $ 59 | $ 68 |
Total | |||
Operating Leased Assets [Line Items] | |||
2,019 | 42 | ||
2,020 | 31 | ||
2,021 | 27 | ||
2,022 | 22 | ||
2,023 | 17 | ||
Thereafter | 101 | ||
Total future commitments | $ 240 |
Commitments and Contingencies_6
Commitments and Contingencies (Other Commitments) (Details) - SCE - Other contractual obligations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
2,019 | $ 79 | ||
2,020 | 67 | ||
2,021 | 46 | ||
2,022 | 44 | ||
2,023 | 35 | ||
Thereafter | 209 | ||
Total | 480 | ||
Costs incurred | $ 124 | $ 75 | $ 141 |
Commitments and Contingencies_7
Commitments and Contingencies (Contingencies) (Details) a in Thousands | 12 Months Ended | 13 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | May 31, 2019USD ($) | Jan. 31, 2019claims | Nov. 30, 2018astructurefatality | Sep. 30, 2018claims | Jan. 01, 2018structurefatality | Dec. 31, 2017USD ($)astructurefatality | |
Loss Contingencies [Line Items] | ||||||||
Charge for wildfire-related claims | $ 4,669,000,000 | $ 4,669,000,000 | $ 0 | |||||
SCE | ||||||||
Loss Contingencies [Line Items] | ||||||||
High fire risk service area, percent | 35.00% | |||||||
Charge for wildfire-related claims | $ 4,669,000,000 | 4,669,000,000 | $ 0 | |||||
Wildfire insurance coverage | 1,000,000,000 | 300,000,000 | ||||||
Self insurance | 10,000,000 | 10,000,000 | $ 10,000,000 | |||||
Other general liability insurance coverage | 450,000,000 | 450,000,000 | ||||||
SCE | December 2017 Wildfires | ||||||||
Loss Contingencies [Line Items] | ||||||||
Acres burned | a | 280 | |||||||
Structures destroyed | structure | 1,063 | |||||||
Structures damaged | structure | 280 | |||||||
Fatalities | fatality | 2 | |||||||
SCE | Montecito Mudslides | ||||||||
Loss Contingencies [Line Items] | ||||||||
Structures destroyed | structure | 135 | |||||||
Structures damaged | structure | 324 | |||||||
Fatalities | fatality | 21 | |||||||
Additional fatalities presumed | fatality | 2 | |||||||
SCE | November 2018 Wildfires | ||||||||
Loss Contingencies [Line Items] | ||||||||
Acres burned | a | 100 | |||||||
Structures destroyed | structure | 1,643 | |||||||
Structures damaged | structure | 364 | |||||||
Fatalities | fatality | 3 | |||||||
Capital expenditures related to restoration of service | 82,000,000 | 82,000,000 | ||||||
Wildfire insurance coverage | 1,000,000,000 | |||||||
Self insurance | 10,000,000 | 10,000,000 | ||||||
SCE | December 2017 Wildfires and Montecito Mudslides | ||||||||
Loss Contingencies [Line Items] | ||||||||
Capital expenditures related to restoration of service | 89,000,000 | 89,000,000 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | ||||||||
Loss Contingencies [Line Items] | ||||||||
Charge for wildfire-related claims | 4,669,000,000 | 4,669,000,000 | ||||||
Expected insurance recoveries | (2,000,000,000) | (2,000,000,000) | ||||||
Expected revenue from FERC customers | 135,000,000 | $ 135,000,000 | ||||||
Total after-tax charge | $ 1,825,000,000 | |||||||
December 2017 Wildfires and Montecito Mudslides | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lawsuits | claims | 2 | |||||||
San Onofre OII | Subsequent event | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lawsuits | claims | 2 |
Commitments and Contingencies_8
Commitments and Contingencies (Schedule of Estimated Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Charge for wildfire-related claims | $ 4,669 | $ 4,669 | $ 0 |
SCE | |||
Loss Contingencies [Line Items] | |||
Charge for wildfire-related claims | 4,669 | 4,669 | $ 0 |
SCE | 2017/2018 Wildfire/Mudslide Events | |||
Loss Contingencies [Line Items] | |||
Charge for wildfire-related claims | 4,669 | 4,669 | |
Expected insurance recoveries | (2,000) | (2,000) | |
Expected revenue from FERC customers | 135 | 135 | |
Total pre-tax charge | $ 2,500 | 2,534 | |
Income tax benefit | (709) | ||
Total after-tax charge | $ 1,825 |
Commitments and Contingencies_9
Commitments and Contingencies (Current Wildfire Insurance Coverage) (Details) - USD ($) | 4 Months Ended | 12 Months Ended | 13 Months Ended | |||||
May 31, 2019 | Dec. 31, 2019 | May 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | Dec. 31, 2018 | Feb. 28, 2019 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||||
Regulatory assets | $ 5,380,000,000 | $ 5,380,000,000 | $ 4,914,000,000 | |||||
SCE | ||||||||
Loss Contingencies [Line Items] | ||||||||
Wildfire insurance coverage | 1,000,000,000 | 300,000,000 | ||||||
Self insurance | $ 10,000,000 | $ 10,000,000 | 10,000,000 | 10,000,000 | ||||
Co-insurance | 15,000,000 | 15,000,000 | ||||||
Wildfire insurance expense | 237,000,000 | |||||||
Regulatory assets | 5,380,000,000 | 5,380,000,000 | $ 4,914,000,000 | |||||
SCE | Forecast | ||||||||
Loss Contingencies [Line Items] | ||||||||
Wildfire insurance coverage | 700,000,000 | 1,000,000,000 | $ 750,000,000 | |||||
Self insurance | $ 10,000,000 | $ 10,000,000 | 10,000,000 | |||||
Co-insurance | $ 115,000,000 | |||||||
Wildfire insurance expense | $ 321,000,000 | |||||||
Wildfire insurance costs | SCE | ||||||||
Loss Contingencies [Line Items] | ||||||||
Regulatory assets | $ 128,000,000 | $ 128,000,000 | ||||||
Subsequent event | SCE | ||||||||
Loss Contingencies [Line Items] | ||||||||
Net Regulatory Assets | $ 107,000,000 | |||||||
Revenue subject to refund | Subsequent event | Wildfire liability insurance recovery | SCE | ||||||||
Loss Contingencies [Line Items] | ||||||||
Net Regulatory Assets | $ 107,000,000 |
Commitments and Contingencie_10
Commitments and Contingencies (Waiver of CPUC Equity Ratio Requirement) (Details) - SCE | 12 Months Ended |
Dec. 31, 2018 | |
Other Commitments [Line Items] | |
Minimum percentage of weighted-average common equity component authorization, set by CPUC (as a percent) | 48.00% |
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 37 months |
Waiver threshold percent | 47.00% |
Commitments and Contingencie_11
Commitments and Contingencies (Permanent Retirement of San Onofre) (Details) (Details) - USD ($) $ in Millions | Dec. 20, 2017 | Dec. 19, 2017 | Dec. 31, 2017 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 4,914 | $ 5,380 | ||
SCE | ||||
Loss Contingencies [Line Items] | ||||
Regulatory assets | 4,914 | 5,380 | ||
San Onofre | SCE | ||||
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 775 | 72 | $ 0 | |
San Onofre | SCE | ||||
Loss Contingencies [Line Items] | ||||
Proceeds received | $ 72 | |||
Refund | $ 155 | |||
San Onofre | SCE | Arbitration with Mitsubishi Heavy Industries | ||||
Loss Contingencies [Line Items] | ||||
Proceeds received | $ 47 |
Commitments and Contingencie_12
Commitments and Contingencies (Schedule of Settlement Agreement) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | $ 78 | $ 738 | $ 21 | ||
SCE | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | $ (12) | 716 | $ 0 | ||
Total after-tax charge | $ 448 | 448 | |||
SCE | Utility Shareholder Agreement | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | 143 | ||||
SCE | Revised San Onofre settlement agreement | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | $ 716 | ||||
SCE | DOE litigation regulatory liability | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | (72) | ||||
SCE | Arbitration with Mitsubishi Heavy Industries | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | (47) | ||||
SCE | GHG Reduction Program | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | (10) | ||||
SCE | San Onofre base regulatory asset | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | 696 | ||||
SCE | Other | |||||
Loss Contingencies [Line Items] | |||||
Total pre-tax charge | $ 6 | ||||
Settled litigation | The Utilities | Revised San Onofre settlement agreement | |||||
Loss Contingencies [Line Items] | |||||
Funding obligation | $ 10 |
Commitments and Contingencie_13
Commitments and Contingencies (Environmental Remediation) (Details) - SCE $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)site | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | |||
Recorded estimated minimum liability | $ 139 | ||
Environmental remediation regulatory assets | 134 | ||
Expected recovery from incentive mechanism | $ 42 | ||
Expected recovery from incentive mechanism (percent) | 90.00% | ||
Recovery through customer rates | $ 92 | ||
Recovery through customer rates (percent) | 100.00% | ||
Cost may exceed recorded liability, material sites | $ 139 | ||
Cost may exceed recorded liability, immaterial sites | $ 7 | ||
Clean up (period) | 30 years | ||
Expected remediation costs for each of the next four years, low end of range | $ 6 | ||
Expected remediation costs for each of the next four years, high end of range | 20 | ||
Environmental remediation expense | $ 8 | $ 9 | $ 4 |
Material sites | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Identified material sites (number) | site | 21 | ||
Minimum estimated liability | $ 1 | ||
Recorded estimated minimum liability | 135 | ||
Material sites | San Onofre | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Recorded estimated minimum liability | $ 90 | ||
Immaterial sites | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Immaterial sites (number) | site | 15 | ||
Immaterial sites | Minimum | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Recorded estimated minimum liability | $ 4 |
Commitments and Contingencie_14
Commitments and Contingencies (Nuclear Insurance) (Details) - USD ($) | Jan. 05, 2018 | Dec. 31, 2018 |
SCE | Palo Verde (nuclear) | ||
Loss Contingencies [Line Items] | ||
Maximum per incident | $ 65,000,000 | |
Maximum per incident annual | 9,700,000 | |
Maximum per incident, prior events | 255,000,000 | |
Maximum per incident, prior events, annually | $ 38,000,000 | |
Insurance Claims | Palo Verde (nuclear) | ||
Loss Contingencies [Line Items] | ||
Federal loss limit, bodily injury and property damage from nuclear incident | $ 14,100,000,000 | |
Insurance Claims | San Onofre | ||
Loss Contingencies [Line Items] | ||
Federal limit on public liability claims from nuclear incident, approximate | 560,000,000 | |
Insurance Claims | SCE and other owners of San Onofre and Palo Verde | Palo Verde (nuclear) | ||
Loss Contingencies [Line Items] | ||
Minimum federal requirement of nuclear property insurance | 1,060,000,000 | |
Insurance Claims | SCE and other owners of San Onofre and Palo Verde | San Onofre | ||
Loss Contingencies [Line Items] | ||
Minimum federal requirement of nuclear property insurance | 50,000,000 | |
Insurance Claims | SCE | ||
Loss Contingencies [Line Items] | ||
Limit on assessment of retrospective premium adjustments, per year, approximate | $ 52,000,000 |
Commitments and Contingencie_15
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 | |
Loss Contingencies [Line Items] | |||||||
Claim to recover damages incurred | $ 56 | ||||||
SCE and other owners of San Onofre and Palo Verde | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 142 | ||||||
Litigation settlement | $ 162 | ||||||
Claim to recover damages incurred | $ 45 | $ 43 | |||||
SCE | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 112 | ||||||
Litigation settlement | 124 | ||||||
Legal and other costs | $ 2 | ||||||
Damage award, customer | $ 105.6 | ||||||
Damage awarded, shareholders | 16.6 | ||||||
Claim to recover damages incurred | 35 | $ 58 | $ 34 | ||||
Disallowed claim amount | $ 13 | ||||||
SCE | Regulatory balancing accounts | |||||||
Loss Contingencies [Line Items] | |||||||
Damage award, customer | $ 71.6 |
Preferred and Preference Stoc_3
Preferred and Preference Stock of Utility (Textual) (Details) - SCE - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cumulative preferred stock $100 par value | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, par value (in dollars per share) | $ 100 | ||
Preferred stock, shares authorized | 12,000,000 | ||
Cumulative preferred stock $25 par value | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, par value (in dollars per share) | $ 25 | ||
Preferred stock, shares authorized | 24,000,000 | ||
No par value | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, shares authorized | 50,000,000 | ||
Preferred and Preference Stock | |||
Preferred and Preference Stock of Utility | |||
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares redeemed | 0 | 0 | 0 |
Preferred and Preference Stoc_4
Preferred and Preference Stock of Utility (Schedule of Preferred and Preference Stock) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred and Preference Stock of Utility | ||
Edison International's preferred and preference stock of utility | $ 2,193,000,000 | $ 2,193,000,000 |
SCE | 4.08% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred stock, par value (in dollars per share) | $ 25 | |
Preferred Stock, dividend rate, (as a percent) | 4.08% | |
Shares Outstanding | 650,000 | |
Redemption Price (in dollars per share) | $ 25.5 | |
Dividends Declared per Share (in dollars per share) | $ 1.020 | |
Preferred stock before issuance costs | $ 16,000,000 | 16,000,000 |
SCE | 4.24% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred stock, par value (in dollars per share) | $ 25 | |
Preferred Stock, dividend rate, (as a percent) | 4.24% | |
Shares Outstanding | 1,200,000 | |
Redemption Price (in dollars per share) | $ 25.8 | |
Dividends Declared per Share (in dollars per share) | $ 1.060 | |
Preferred stock before issuance costs | $ 30,000,000 | 30,000,000 |
SCE | 4.32% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred stock, par value (in dollars per share) | $ 25 | |
Preferred Stock, dividend rate, (as a percent) | 4.32% | |
Shares Outstanding | 1,653,429 | |
Redemption Price (in dollars per share) | $ 28.75 | |
Dividends Declared per Share (in dollars per share) | $ 1.080 | |
Preferred stock before issuance costs | $ 41,000,000 | 41,000,000 |
SCE | 4.78% Series | ||
Preferred and Preference Stock of Utility | ||
Preferred stock, par value (in dollars per share) | $ 25 | |
Preferred Stock, dividend rate, (as a percent) | 4.78% | |
Shares Outstanding | 1,296,769 | |
Redemption Price (in dollars per share) | $ 25.8 | |
Dividends Declared per Share (in dollars per share) | $ 1.195 | |
Preferred stock before issuance costs | 33,000,000 | 33,000,000 |
SCE | Preference stock | ||
Preferred and Preference Stock of Utility | ||
Preferred stock before issuance costs | 2,245,000,000 | 2,245,000,000 |
Less issuance costs | (52,000,000) | (52,000,000) |
Edison International's preferred and preference stock of utility | $ 2,193,000,000 | 2,193,000,000 |
SCE | 6.25% Series E (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 6.25% | |
Shares Outstanding | 350,000 | |
Redemption Price (in dollars per share) | $ 1,000 | |
Dividends Declared per Share (in dollars per share) | $ 62.500 | |
Preferred stock before issuance costs | $ 350,000,000 | 350,000,000 |
SCE | 5.10% Series G (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.10% | |
Shares Outstanding | 160,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Dividends Declared per Share (in dollars per share) | $ 127.500 | |
Preferred stock before issuance costs | $ 400,000,000 | 400,000,000 |
SCE | 5.75% Series H (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.75% | |
Shares Outstanding | 110,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Dividends Declared per Share (in dollars per share) | $ 143.750 | |
Preferred stock before issuance costs | $ 275,000,000 | 275,000,000 |
SCE | 5.375% Series J (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.375% | |
Shares Outstanding | 130,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Dividends Declared per Share (in dollars per share) | $ 134.375 | |
Preferred stock before issuance costs | $ 325,000,000 | 325,000,000 |
SCE | 5.45% Series K (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.45% | |
Shares Outstanding | 120,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Dividends Declared per Share (in dollars per share) | $ 136.250 | |
Preferred stock before issuance costs | $ 300,000,000 | 300,000,000 |
SCE | 5.00% Series L (cumulative) | ||
Preferred and Preference Stock of Utility | ||
Preferred Stock, dividend rate, (as a percent) | 5.00% | |
Shares Outstanding | 190,004 | |
Redemption Price (in dollars per share) | $ 2,500 | |
Dividends Declared per Share (in dollars per share) | $ 125 | |
Preferred stock before issuance costs | $ 475,000,000 | $ 475,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension and PBOP – net gain (loss): | |||
Other | $ (4) | $ 0 | $ 1 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (43) | (53) | |
Pension and PBOP – net gain (loss): | |||
Ending balance | (50) | (43) | (53) |
Accumulated Defined Benefit Plans Adjustment | |||
Pension and PBOP – net gain (loss): | |||
Other comprehensive (loss) income before reclassifications | (9) | 3 | |
Reclassified from accumulated other comprehensive loss | 6 | 7 | |
Other | (4) | 0 | |
Change | (7) | 10 | |
SCE | |||
Pension and PBOP – net gain (loss): | |||
Other | (5) | 0 | 1 |
SCE | Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (19) | (20) | |
Pension and PBOP – net gain (loss): | |||
Ending balance | (23) | (19) | $ (20) |
SCE | Accumulated Defined Benefit Plans Adjustment | |||
Pension and PBOP – net gain (loss): | |||
Other comprehensive (loss) income before reclassifications | (3) | (2) | |
Reclassified from accumulated other comprehensive loss | 4 | 3 | |
Other | (5) | 0 | |
Change | $ (4) | $ 1 |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SCE other income and (expenses): | |||
Total other income and (expenses) | $ 197 | $ 132 | $ 109 |
Edison International Parent and Other | |||
SCE other income and (expenses): | |||
Net periodic benefit income – non-service components | (2) | (14) | (5) |
Other income | 5 | 0 | |
Other expense | (2) | ||
SCE | |||
SCE other income and (expenses): | |||
Equity allowance for funds used during construction | 104 | 87 | 74 |
Increase in cash surrender value of life insurance policies and life insurance benefits | 36 | 42 | 39 |
Interest income | 24 | 7 | 3 |
Net periodic benefit income – non-service components | 81 | 51 | 35 |
Civic, political and related activities and donations | (44) | (34) | (32) |
Other expense | (7) | (5) | (5) |
Total other income and (expenses) | $ 194 | $ 148 | $ 114 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash payments (receipts) for interest and taxes: | |||
Interest, net of amounts capitalized | $ 595 | $ 548 | $ 504 |
Tax (refunds) payments, net | (135) | 1 | 18 |
Common Stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 200 | 197 | 177 |
Preference stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 12 | 12 | 12 |
SCE | |||
Cash payments (receipts) for interest and taxes: | |||
Interest, net of amounts capitalized | 552 | 509 | 475 |
Tax (refunds) payments, net | (57) | 2 | 78 |
Non-cash financing and investing activities: | |||
Accrued capital expenditures | 594 | 652 | 540 |
SCE | Common Stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 0 | 212 | 0 |
SCE | Preference stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | $ 12 | $ 12 | $ 12 |
Related Party Transactions (Det
Related Party Transactions (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Long-term insurance receivable due from affiliate | $ 1,000 | |
Wildfire insurance expense | 237 | |
Wildfire liability insurance | Wholly-owned subsidiary | ||
Related Party Transaction [Line Items] | ||
Wildfire insurance premiums | 22 | $ 144 |
Long-term insurance receivable due from affiliate | 1,000 | 0 |
Prepaid Insurance | 13 | 131 |
Current payables due to affiliate | 4 | 3 |
Wildfire insurance expense | $ 140 | $ 13 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Line Items] | |||||||||||
Total operating revenue | $ 3,009 | $ 4,269 | $ 2,815 | $ 2,564 | $ 3,220 | $ 3,672 | $ 2,965 | $ 2,463 | $ 12,657 | $ 12,320 | $ 11,869 |
Operating (loss) income | (2,041) | 739 | 420 | 330 | (38) | 553 | 470 | 471 | (552) | 1,456 | 2,062 |
Net (loss) income | (316) | 668 | 1,425 | ||||||||
Income (loss) from continuing operations | (1,434) | 544 | 298 | 242 | (534) | 501 | 309 | 392 | (350) | 668 | 1,413 |
Income (loss) from discontinued operations, net | 34 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34 | 0 | 12 |
Net income (loss) attributable to common shareholders | $ (1,430) | $ 513 | $ 276 | $ 218 | $ (545) | $ 470 | $ 278 | $ 362 | $ (423) | $ 565 | $ 1,311 |
Basic (loss) earnings per share – continuing operations: | |||||||||||
Continuing operations (in dollars per share) | $ (4.49) | $ 1.57 | $ 0.85 | $ 0.67 | $ (1.67) | $ 1.44 | $ 0.85 | $ 1.11 | $ (1.40) | $ 1.73 | $ 3.99 |
Discontinued operations (in dollars per share) | 0.10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.10 | 0 | 0.03 |
Total (in dollars per share) | (4.39) | 1.57 | 0.85 | 0.67 | (1.67) | 1.44 | 0.85 | 1.11 | (1.30) | 1.73 | 4.02 |
Diluted (loss) earnings per share – continuing operations: | |||||||||||
Continuing operations (in dollars per share) | (4.49) | 1.57 | 0.84 | 0.67 | (1.66) | 1.43 | 0.85 | 1.10 | (1.40) | 1.72 | 3.94 |
Diluted earnings (loss) per share – discontinued operations (in dollars per share) | 0.10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.10 | 0 | 0.03 |
Total (in dollars per share) | (4.39) | 1.57 | 0.84 | 0.67 | (1.66) | 1.43 | 0.85 | 1.10 | (1.30) | 1.72 | 3.97 |
Dividends declared per common share (in dollars per share) | $ 0.6125 | $ 0.6050 | $ 0.6050 | $ 0.6050 | $ 0.6050 | $ 0.5425 | $ 0.5425 | $ 0.5425 | $ 2.4275 | $ 2.2325 | $ 1.9825 |
Impairment and other | $ 78 | $ 738 | $ 21 | ||||||||
Edison International Parent and Other | |||||||||||
Diluted (loss) earnings per share – continuing operations: | |||||||||||
Write-down for re-measurement of deferred taxes as a result of the Tax Cuts and Jobs Act | $ 433 | ||||||||||
SCE | |||||||||||
Quarterly Financial Data [Line Items] | |||||||||||
Total operating revenue | $ 2,994 | $ 4,260 | $ 2,803 | $ 2,554 | 3,193 | $ 3,652 | $ 2,953 | $ 2,456 | 12,611 | 12,254 | 11,830 |
Operating (loss) income | (2,013) | 754 | 439 | 414 | (28) | 569 | 508 | 498 | (406) | 1,547 | 2,182 |
Net (loss) income | (1,399) | 567 | 327 | 316 | (79) | 497 | 338 | 380 | (189) | 1,136 | 1,499 |
Net income (loss) attributable to common shareholders | (1,429) | 536 | 297 | 286 | (109) | 465 | 307 | 349 | $ (310) | $ 1,012 | $ 1,376 |
Diluted (loss) earnings per share – continuing operations: | |||||||||||
Dividends declared per common share (in dollars per share) | $ 1.32 | $ 1.81 | $ 1.61 | ||||||||
Common dividends declared | 0 | $ 264 | $ 100 | $ 212 | 212 | $ 191 | $ 191 | $ 191 | $ 576 | $ 785 | |
Impairment and other | (12) | $ 716 | $ 0 | ||||||||
SCE | Revised San Onofre settlement agreement | |||||||||||
Diluted (loss) earnings per share – continuing operations: | |||||||||||
Impairment and other | 716 | ||||||||||
Impairment and other charges, net of tax | $ 448 | ||||||||||
2017/2018 Wildfire/Mudslide Events | SCE | |||||||||||
Diluted (loss) earnings per share – continuing operations: | |||||||||||
Wildfire-related claims, net of expected recoveries | $ 2,500 | $ 2,534 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent (Details) | Feb. 28, 2019 | Jul. 31, 2018USD ($) | May 31, 2018USD ($)extension | Jan. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ 1,091,000,000 | $ 144,000,000 | $ 1,091,000,000 | $ 1,091,000,000 | $ 1,091,000,000 | $ 1,091,000,000 | $ 144,000,000 | $ 1,091,000,000 | ||||||||||||
Other current assets | 78,000,000 | 202,000,000 | ||||||||||||||||||
Total current assets | 3,359,000,000 | 3,729,000,000 | ||||||||||||||||||
Other long-term assets | 2,445,000,000 | 374,000,000 | ||||||||||||||||||
Total assets | 56,715,000,000 | 52,580,000,000 | ||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Short-term debt | 720,000,000 | 2,393,000,000 | ||||||||||||||||||
Current portion of long-term debt | 79,000,000 | 481,000,000 | ||||||||||||||||||
Other current liabilities | 1,233,000,000 | 1,266,000,000 | ||||||||||||||||||
Total current liabilities | 5,395,000,000 | 7,068,000,000 | ||||||||||||||||||
Long-term debt | 14,632,000,000 | 11,642,000,000 | ||||||||||||||||||
Total equity | 12,652,000,000 | 13,866,000,000 | $ 14,187,000,000 | $ 13,388,000,000 | ||||||||||||||||
Total liabilities and equity | $ 56,715,000,000 | 52,580,000,000 | ||||||||||||||||||
Condensed Statements of Income: | ||||||||||||||||||||
Interest income from affiliates | 3,009,000,000 | $ 4,269,000,000 | $ 2,815,000,000 | 2,564,000,000 | 3,220,000,000 | $ 3,672,000,000 | $ 2,965,000,000 | $ 2,463,000,000 | 12,657,000,000 | 12,320,000,000 | $ 11,869,000,000 | |||||||||
Operating, interest and other expenses | 13,209,000,000 | 10,864,000,000 | 9,807,000,000 | |||||||||||||||||
Operating (loss) income | (2,041,000,000) | 739,000,000 | 420,000,000 | 330,000,000 | (38,000,000) | 553,000,000 | 470,000,000 | 471,000,000 | (552,000,000) | 1,456,000,000 | 2,062,000,000 | |||||||||
Income tax (benefit) expense | (739,000,000) | 281,000,000 | 177,000,000 | |||||||||||||||||
(Loss) income from continuing operations | (1,434,000,000) | 544,000,000 | 298,000,000 | 242,000,000 | (534,000,000) | 501,000,000 | 309,000,000 | 392,000,000 | (350,000,000) | 668,000,000 | 1,413,000,000 | |||||||||
Income from discontinued operations, net of tax | 34,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34,000,000 | 0 | 12,000,000 | |||||||||
Condensed Statements of Comprehensive Income | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (7,000,000) | 10,000,000 | 3,000,000 | |||||||||||||||||
Comprehensive (loss) income | (430,000,000) | 575,000,000 | 1,314,000,000 | |||||||||||||||||
Condensed Statements of Cash Flows: | ||||||||||||||||||||
Net cash provided by operating activities | 3,177,000,000 | 3,597,000,000 | 3,254,000,000 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Long-term debt issued | 3,237,000,000 | 2,233,000,000 | 397,000,000 | |||||||||||||||||
Repayments of Long-term Debt | (654,000,000) | (1,285,000,000) | (220,000,000) | |||||||||||||||||
Short-term debt financing, net | (1,611,000,000) | 1,084,000,000 | 611,000,000 | |||||||||||||||||
Payments for stock-based compensation | (46,000,000) | (393,000,000) | (237,000,000) | |||||||||||||||||
Receipts from stock option exercises | 26,000,000 | 215,000,000 | 135,000,000 | |||||||||||||||||
Dividends paid | (788,000,000) | (707,000,000) | (626,000,000) | |||||||||||||||||
Net cash provided by (used in) financing activities | 82,000,000 | 1,007,000,000 | 95,000,000 | |||||||||||||||||
Net cash used in investing activities | (4,239,000,000) | (3,586,000,000) | (3,403,000,000) | |||||||||||||||||
Cash and cash equivalents, beginning of year | $ 1,091,000,000 | 1,091,000,000 | 1,091,000,000 | |||||||||||||||||
Cash and cash equivalents, end of year | 144,000,000 | 1,091,000,000 | 144,000,000 | 1,091,000,000 | ||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Number of one year extension options | extension | 2 | |||||||||||||||||||
Covenant requirement, consolidated debt to total capitalization, ratio | 0.70 | |||||||||||||||||||
Actual consolidated debt to total capitalization, ratio | 0.55 | |||||||||||||||||||
Multi-year credit facilities | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Commitment | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,250,000,000 | |||||||||||||||||
Outstanding borrowings (excluding discount) | 0 | $ (639,000,000) | ||||||||||||||||||
Amount available | $ 1,500,000,000 | |||||||||||||||||||
Weighted average interest rate (as a percent) | 1.70% | |||||||||||||||||||
Senior notes | 2.125% Senior notes due 2020 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Debt, face amount | 500,000,000 | |||||||||||||||||||
Basis points | 1.00% | |||||||||||||||||||
Senior notes | 2.40% Senior notes due 2022 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Debt, face amount | $ 550,000,000 | |||||||||||||||||||
Interest rate on debt (as a percent) | 4.125% | |||||||||||||||||||
Senior notes | 2.95% Senior notes due 2023 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Interest rate on debt (as a percent) | 2.95% | |||||||||||||||||||
Senior notes | $ 400,000,000 | |||||||||||||||||||
Edison International Parent and Other | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ 524,000,000 | 97,000,000 | $ 524,000,000 | 524,000,000 | 6,000,000 | 524,000,000 | 6,000,000 | 7,000,000 | 97,000,000 | $ 524,000,000 | 6,000,000 | 7,000,000 | ||||||||
Other current assets | 52,000,000 | 340,000,000 | ||||||||||||||||||
Total current assets | 149,000,000 | 864,000,000 | ||||||||||||||||||
Investments in subsidiaries | 12,521,000,000 | 13,659,000,000 | ||||||||||||||||||
Deferred income taxes | 516,000,000 | 500,000,000 | ||||||||||||||||||
Other long-term assets | 78,000,000 | 91,000,000 | ||||||||||||||||||
Total assets | 13,264,000,000 | 15,114,000,000 | ||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Short-term debt | 0 | 1,139,000,000 | ||||||||||||||||||
Other current liabilities | 498,000,000 | 467,000,000 | ||||||||||||||||||
Total current liabilities | 498,000,000 | 1,606,000,000 | ||||||||||||||||||
Long-term debt | 1,740,000,000 | 1,193,000,000 | ||||||||||||||||||
Other long-term liabilities | 567,000,000 | 644,000,000 | ||||||||||||||||||
Total equity | 10,459,000,000 | 11,671,000,000 | ||||||||||||||||||
Total liabilities and equity | 13,264,000,000 | 15,114,000,000 | ||||||||||||||||||
Condensed Statements of Income: | ||||||||||||||||||||
Interest income from affiliates | 0 | 0 | 6,000,000 | |||||||||||||||||
Operating, interest and other expenses | 98,000,000 | 92,000,000 | 86,000,000 | |||||||||||||||||
Operating (loss) income | (98,000,000) | (92,000,000) | (80,000,000) | |||||||||||||||||
Equity in (loss) earnings of subsidiaries | (376,000,000) | 739,000,000 | 1,337,000,000 | |||||||||||||||||
(Loss) income before income taxes | (474,000,000) | 647,000,000 | 1,257,000,000 | |||||||||||||||||
Income tax (benefit) expense | (17,000,000) | 82,000,000 | (42,000,000) | |||||||||||||||||
(Loss) income from continuing operations | (457,000,000) | 565,000,000 | 1,299,000,000 | |||||||||||||||||
Income from discontinued operations, net of tax | 34,000,000 | 0 | 12,000,000 | |||||||||||||||||
Net income | (423,000,000) | 565,000,000 | 1,311,000,000 | |||||||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||||||||||
Net (loss) income | (423,000,000) | 565,000,000 | 1,311,000,000 | |||||||||||||||||
Other comprehensive (loss) income, net of tax | (7,000,000) | 10,000,000 | 3,000,000 | |||||||||||||||||
Comprehensive (loss) income | (430,000,000) | 575,000,000 | 1,314,000,000 | |||||||||||||||||
Condensed Statements of Cash Flows: | ||||||||||||||||||||
Net cash provided by operating activities | 785,000,000 | 462,000,000 | 493,000,000 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Long-term debt issued | 549,000,000 | 798,000,000 | 400,000,000 | |||||||||||||||||
Long-term debt issuance costs | (4,000,000) | (5,000,000) | (3,000,000) | |||||||||||||||||
Repayments of Long-term Debt | 0 | (400,000,000) | 0 | |||||||||||||||||
Payable due to affiliates | 13,000,000 | 8,000,000 | 34,000,000 | |||||||||||||||||
Short-term debt financing, net | (1,141,000,000) | 600,000,000 | (108,000,000) | |||||||||||||||||
Payments for stock-based compensation | (24,000,000) | (260,000,000) | (95,000,000) | |||||||||||||||||
Receipts from stock option exercises | 14,000,000 | 144,000,000 | 51,000,000 | |||||||||||||||||
Dividends paid | (788,000,000) | (707,000,000) | (626,000,000) | |||||||||||||||||
Net cash provided by (used in) financing activities | (1,381,000,000) | 178,000,000 | (347,000,000) | |||||||||||||||||
Capital contributions to affiliate | (10,000,000) | (122,000,000) | (147,000,000) | |||||||||||||||||
Dividends from affiliate | 179,000,000 | 0 | 0 | |||||||||||||||||
Net cash used in investing activities | 169,000,000 | (122,000,000) | (147,000,000) | |||||||||||||||||
Net increase (decrease) in cash, cash equivalent and restricted cash | (427,000,000) | 518,000,000 | (1,000,000) | |||||||||||||||||
Cash and cash equivalents, beginning of year | 524,000,000 | 524,000,000 | 6,000,000 | 524,000,000 | 6,000,000 | 7,000,000 | ||||||||||||||
Cash and cash equivalents, end of year | 97,000,000 | 524,000,000 | 97,000,000 | 524,000,000 | 6,000,000 | |||||||||||||||
Basis of Presentation | ||||||||||||||||||||
Cash dividends received from consolidated subsidiaries | 788,000,000 | 573,000,000 | 701,000,000 | |||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Current receivables due from affiliates | 41,000,000 | 256,000,000 | ||||||||||||||||||
Current payables due to affiliates | 249,000,000 | 235,000,000 | ||||||||||||||||||
Long-term receivables due from affiliate | 73,000,000 | 81,000,000 | ||||||||||||||||||
Long-term payables due to affiliates | $ 213,000,000 | $ 200,000,000 | ||||||||||||||||||
Edison International Parent and Other | SCE | ||||||||||||||||||||
Related Party Transactions | ||||||||||||||||||||
Expenses from services provided by SCE | 2,000,000 | 3,000,000 | 3,000,000 | |||||||||||||||||
Interest expense from loans due to affiliates | 5,000,000 | 5,000,000 | 3,000,000 | |||||||||||||||||
Edison International Parent and Other | Senior notes | 2.125% Senior notes due 2020 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Interest rate on debt (as a percent) | 2.125% | 2.125% | ||||||||||||||||||
Senior notes | $ 400,000,000 | $ 400,000,000 | ||||||||||||||||||
Edison International Parent and Other | Senior notes | 2.40% Senior notes due 2022 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Interest rate on debt (as a percent) | 2.40% | 2.40% | ||||||||||||||||||
Senior notes | $ 400,000,000 | $ 400,000,000 | ||||||||||||||||||
Edison International Parent and Other | Senior notes | 2.95% Senior notes due 2023 | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Interest rate on debt (as a percent) | 2.95% | |||||||||||||||||||
Senior notes | $ 400,000,000 | |||||||||||||||||||
Edison International Parent and Other | ||||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Current portion of long-term debt | 0 | 2,000,000 | ||||||||||||||||||
Long-term debt | 1,740,000,000 | 1,214,000,000 | ||||||||||||||||||
SCE | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | 515,000,000 | 21,000,000 | 515,000,000 | 515,000,000 | 515,000,000 | 515,000,000 | 21,000,000 | 515,000,000 | ||||||||||||
Other current assets | 69,000,000 | 160,000,000 | ||||||||||||||||||
Total current assets | 3,325,000,000 | 3,087,000,000 | ||||||||||||||||||
Other long-term assets | 1,360,000,000 | 237,000,000 | ||||||||||||||||||
Total assets | 56,574,000,000 | 51,515,000,000 | ||||||||||||||||||
Liabilities and equity: | ||||||||||||||||||||
Short-term debt | 720,000,000 | 1,238,000,000 | ||||||||||||||||||
Current portion of long-term debt | 79,000,000 | 479,000,000 | ||||||||||||||||||
Other current liabilities | 975,000,000 | 1,225,000,000 | ||||||||||||||||||
Total current liabilities | 5,146,000,000 | 5,887,000,000 | ||||||||||||||||||
Long-term debt | 12,892,000,000 | 10,428,000,000 | ||||||||||||||||||
Total equity | 13,785,000,000 | 14,672,000,000 | 14,483,000,000 | $ 13,672,000,000 | ||||||||||||||||
Total liabilities and equity | 56,574,000,000 | $ 51,515,000,000 | ||||||||||||||||||
Condensed Statements of Income: | ||||||||||||||||||||
Interest income from affiliates | 2,994,000,000 | 4,260,000,000 | 2,803,000,000 | 2,554,000,000 | 3,193,000,000 | 3,652,000,000 | 2,953,000,000 | 2,456,000,000 | 12,611,000,000 | 12,254,000,000 | 11,830,000,000 | |||||||||
Operating, interest and other expenses | 13,017,000,000 | 10,707,000,000 | 9,648,000,000 | |||||||||||||||||
Operating (loss) income | (2,013,000,000) | $ 754,000,000 | $ 439,000,000 | 414,000,000 | (28,000,000) | $ 569,000,000 | $ 508,000,000 | $ 498,000,000 | (406,000,000) | 1,547,000,000 | 2,182,000,000 | |||||||||
Income tax (benefit) expense | (696,000,000) | (30,000,000) | 256,000,000 | |||||||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (4,000,000) | 1,000,000 | 2,000,000 | |||||||||||||||||
Condensed Statements of Cash Flows: | ||||||||||||||||||||
Net cash provided by operating activities | 3,191,000,000 | 3,735,000,000 | 3,521,000,000 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Long-term debt issued | 2,692,000,000 | 1,445,000,000 | 0 | |||||||||||||||||
Repayments of Long-term Debt | (639,000,000) | (882,000,000) | (217,000,000) | |||||||||||||||||
Short-term debt financing, net | (520,000,000) | 469,000,000 | 719,000,000 | |||||||||||||||||
Payments for stock-based compensation | (22,000,000) | (86,000,000) | (127,000,000) | |||||||||||||||||
Receipts from stock option exercises | 12,000,000 | 48,000,000 | 76,000,000 | |||||||||||||||||
Dividends paid | (909,000,000) | (697,000,000) | (824,000,000) | |||||||||||||||||
Net cash provided by (used in) financing activities | 616,000,000 | 243,000,000 | (219,000,000) | |||||||||||||||||
Net cash used in investing activities | (4,300,000,000) | (3,503,000,000) | $ (3,294,000,000) | |||||||||||||||||
Cash and cash equivalents, beginning of year | $ 515,000,000 | $ 515,000,000 | 515,000,000 | |||||||||||||||||
Cash and cash equivalents, end of year | $ 21,000,000 | $ 515,000,000 | $ 21,000,000 | 515,000,000 | ||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
Minimum percentage of weighted-average common equity component authorization, set by CPUC (as a percent) | 48.00% | |||||||||||||||||||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 37 months | |||||||||||||||||||
Waiver threshold percent | 47.00% | |||||||||||||||||||
After-tax charge excused from capital structure | $ 448,000,000 | $ 448,000,000 | ||||||||||||||||||
Weighted-average common equity component of total capitalization percent | 49.70% | |||||||||||||||||||
Capacity to pay additional dividends | $ 459,000,000 | |||||||||||||||||||
Restriction on net assets | 13,300,000,000 | |||||||||||||||||||
SCE | Multi-year credit facilities | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Commitment | $ 3,000,000,000 | 3,000,000,000 | $ 2,750,000,000 | |||||||||||||||||
Number of one year extension options | extension | 2 | |||||||||||||||||||
Outstanding borrowings (excluding discount) | (721,000,000) | |||||||||||||||||||
Amount available | $ 2,089,000,000 | |||||||||||||||||||
Line of credit | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Weighted average interest rate (as a percent) | 2.56% | |||||||||||||||||||
Line of credit | SCE | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Weighted average interest rate (as a percent) | 2.46% | |||||||||||||||||||
Subsequent event | SCE | ||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
Weighted-average common equity component of total capitalization percent | 47.00% | |||||||||||||||||||
Commercial paper | SCE | Multi-year credit facilities | ||||||||||||||||||||
Debt and Credit Agreements | ||||||||||||||||||||
Outstanding borrowings (excluding discount) | $ (738,000,000) | |||||||||||||||||||
Weighted average interest rate (as a percent) | 3.23% | 1.75% | ||||||||||||||||||
Common Stock | ||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
Dividends declared but not paid | $ 200,000,000 | $ 197,000,000 | 177,000,000 | |||||||||||||||||
Common Stock | SCE | ||||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
Dividends declared but not paid | $ 0 | $ 212,000,000 | $ 0 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | $ 53.9 | $ 61.8 | $ 61.7 | |
Charged to Costs and Expenses | 35.2 | 26.4 | 33.6 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 37.6 | 34.3 | 33.5 | |
Balance at End of Period | 51.5 | 53.9 | 61.8 | |
Recorded valuation allowance | 32 | |||
Customers | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 36.6 | 41.2 | 46.2 | |
Charged to Costs and Expenses | 19 | 12.9 | 17.7 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 23.6 | 17.5 | 22.7 | |
Balance at End of Period | 32 | 36.6 | 41.2 | |
All others | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 17.3 | 20.6 | 15.5 | |
Charged to Costs and Expenses | 16.2 | 13.5 | 15.9 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 14 | 16.8 | 10.8 | |
Balance at End of Period | 19.5 | 17.3 | 20.6 | |
Tax valuation allowance | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 28 | 24 | 32 | |
Charged to Costs and Expenses | 0 | 0 | 0 | |
Charged to Other Accounts | 8 | 4 | 0 | |
Deductions | 0 | 0 | 8 | |
Balance at End of Period | 36 | 28 | 24 | |
Allowances and reserves written off | 8 | |||
Southern California Edison Company | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 53.3 | 61.1 | 61.7 | |
Charged to Costs and Expenses | 35.1 | 26.4 | 32.9 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 37.3 | 34.2 | 33.5 | |
Balance at End of Period | 51.1 | 53.3 | 61.1 | |
Southern California Edison Company | Customers | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 36 | 40.5 | 46.2 | |
Charged to Costs and Expenses | 18.9 | 12.9 | 17 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 23.3 | 17.4 | 22.7 | |
Balance at End of Period | 31.6 | 36 | 40.5 | |
Southern California Edison Company | All others | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at Beginning of Period | 17.3 | 20.6 | 15.5 | |
Charged to Costs and Expenses | 16.2 | 13.5 | 15.9 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 14 | 16.8 | 10.8 | |
Balance at End of Period | 19.5 | $ 17.3 | $ 20.6 | |
Capital loss from sale of SoCore Energy | ||||
Movement in Valuation and Qualifying Accounts | ||||
Recorded valuation allowance | $ 4 | 4 | ||
Non-California state | Tax valuation allowance | ||||
Movement in Valuation and Qualifying Accounts | ||||
Charged to Other Accounts | $ 4 |
Uncategorized Items - eix-20181
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,000,000 |
Southern California Edison Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
AOCI Attributable to Parent [Member] | Southern California Edison Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,000,000 |
Retained Earnings [Member] | Southern California Edison Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 5,000,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,000,000 |