Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | EDISON INTERNATIONAL | |
Entity Central Index Key | 0000827052 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 325,811,206 | |
Southern California Edison | ||
Entity Information [Line Items] | ||
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON CO | |
Entity Central Index Key | 0000092103 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 434,888,104 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total operating revenue | $ 2,824 | $ 2,564 |
Purchased power and fuel | 1,005 | 926 |
Operation and maintenance | 882 | 675 |
Depreciation and amortization | 480 | 462 |
Property and other taxes | 110 | 107 |
Impairment and other | (4) | 66 |
Other operating income | (1) | (2) |
Total operating expenses | 2,472 | 2,234 |
Operating income | 352 | 330 |
Interest expense | (194) | (170) |
Other income and expense | 38 | 51 |
Income from continuing operations before income taxes | 196 | 211 |
Income tax benefit | (112) | (31) |
Income from continuing operations | 308 | 242 |
Net income | 308 | 242 |
Preferred and preference stock dividend requirements of SCE | 30 | 30 |
Other noncontrolling interests | 0 | (6) |
Net income attributable to Edison International common shareholders | 278 | 218 |
Amounts attributable to Edison International common shareholders: | ||
Income from continuing operations, net of tax | 278 | 218 |
Net income attributable to Edison International common shareholders | $ 278 | $ 218 |
Basic earnings per share: | ||
Weighted average common shares outstanding (in shares) | 326 | 326 |
Continuing operations (in dollars per share) | $ 0.85 | $ 0.67 |
Basic earnings per common share attributable to Edison International common shareholders (in dollars per share) | $ 0.85 | $ 0.67 |
Diluted earnings per share: | ||
Weighted-average shares of common stock outstanding, including effect of dilutive securities (in shares) | 327 | 327 |
Continuing operations (in dollars per share) | $ 0.85 | $ 0.67 |
Diluted earnings per common share attributable to Edison International common shareholders (in dollars per share) | $ 0.85 | $ 0.67 |
Southern California Edison Company | ||
Total operating revenue | $ 2,816 | $ 2,554 |
Purchased power and fuel | 1,005 | 926 |
Operation and maintenance | 869 | 651 |
Depreciation and amortization | 480 | 459 |
Property and other taxes | 109 | 105 |
Impairment and other | (4) | 0 |
Other operating income | (1) | (1) |
Total operating expenses | 2,458 | 2,140 |
Operating income | 358 | 414 |
Interest expense | (178) | (155) |
Other income and expense | 38 | 51 |
Income from continuing operations before income taxes | 218 | 310 |
Income tax benefit | (105) | (6) |
Net income | 323 | 316 |
Preferred and preference stock dividend requirements of SCE | 30 | 30 |
Net income attributable to Edison International common shareholders | 293 | 286 |
Amounts attributable to Edison International common shareholders: | ||
Net income attributable to Edison International common shareholders | $ 293 | $ 286 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 308 | $ 242 |
Pension and postretirement benefits other than pensions: | ||
Amortization of net loss included in net income | 2 | 2 |
Other | 0 | (5) |
Other comprehensive income (loss), net of tax | 2 | (3) |
Comprehensive income | 310 | 239 |
Less: Comprehensive income attributable to noncontrolling interests | 30 | 24 |
Comprehensive income attributable to Edison International | 280 | 215 |
Southern California Edison Company | ||
Net income | 323 | 316 |
Pension and postretirement benefits other than pensions: | ||
Amortization of net loss included in net income | 1 | 2 |
Other | 0 | (5) |
Other comprehensive income (loss), net of tax | 1 | (3) |
Comprehensive income | $ 324 | $ 313 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 328 | $ 144 |
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates | 716 | 730 |
Accrued unbilled revenue | 459 | 482 |
Inventory | 312 | 282 |
Income tax receivables | 192 | 191 |
Prepaid expenses | 465 | 148 |
Derivative assets | 101 | 171 |
Regulatory assets | 1,286 | 1,133 |
Other current assets | 140 | 78 |
Total current assets | 3,999 | 3,359 |
Nuclear decommissioning trusts | 4,291 | 4,120 |
Other investments | 76 | 63 |
Total investments | 4,367 | 4,183 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,671 and $9,566 at respective dates | 41,678 | 41,269 |
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates | 86 | 79 |
Total property, plant and equipment | 41,764 | 41,348 |
Regulatory assets | 5,268 | 5,380 |
Operating lease right-of-use assets | 933 | 0 |
Other long-term assets | 2,462 | 2,445 |
Total long-term assets | 8,663 | 7,825 |
Total assets | 58,793 | 56,715 |
LIABILITIES AND EQUITY | ||
Short-term debt | 932 | 720 |
Current portion of long-term debt | 79 | 79 |
Accounts payable | 1,366 | 1,511 |
Accrued taxes | 104 | 21 |
Customer deposits | 303 | 299 |
Regulatory liabilities | 1,295 | 1,532 |
Current portion of operating lease liabilities | 157 | 0 |
Other current liabilities | 1,139 | 1,233 |
Total current liabilities | 5,375 | 5,395 |
Long-term debt | 15,683 | 14,632 |
Deferred income taxes and credits | 4,685 | 4,576 |
Pensions and benefits | 869 | 869 |
Asset retirement obligations | 2,999 | 3,031 |
Regulatory liabilities | 8,588 | 8,329 |
Operating lease liabilities | 776 | 0 |
Wildfire-related claims | 4,669 | 4,669 |
Other deferred credits and other long-term liabilities | 2,430 | 2,562 |
Total deferred credits and other liabilities | 25,016 | 24,036 |
Total liabilities | 46,074 | 44,063 |
Commitments and contingencies (Note 12) | ||
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates) | 2,550 | 2,545 |
Accumulated other comprehensive loss | (58) | (50) |
Retained earnings | 8,034 | 7,964 |
Total Edison International's common shareholders' equity | 10,526 | 10,459 |
Noncontrolling interests – preferred and preference stock of SCE | 2,193 | 2,193 |
Total equity | 12,719 | 12,652 |
Total liabilities and equity | 58,793 | 56,715 |
Southern California Edison Company | ||
ASSETS | ||
Cash and cash equivalents | 297 | 21 |
Receivables, less allowances of $49 and $51 for uncollectible accounts at respective dates | 702 | 711 |
Accrued unbilled revenue | 459 | 482 |
Inventory | 312 | 282 |
Income tax receivables | 311 | 312 |
Prepaid expenses | 464 | 144 |
Derivative assets | 101 | 171 |
Regulatory assets | 1,286 | 1,133 |
Other current assets | 130 | 69 |
Total current assets | 4,062 | 3,325 |
Nuclear decommissioning trusts | 4,291 | 4,120 |
Other investments | 58 | 45 |
Total investments | 4,349 | 4,165 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,671 and $9,566 at respective dates | 41,678 | 41,269 |
Nonutility property, plant and equipment, less accumulated depreciation of $77 at both dates | 81 | 75 |
Total property, plant and equipment | 41,759 | 41,344 |
Regulatory assets | 5,268 | 5,380 |
Operating lease right-of-use assets | 928 | 0 |
Long-term insurance receivable due from affiliate | 1,000 | 1,000 |
Other long-term assets | 1,378 | 1,360 |
Total long-term assets | 8,574 | 7,740 |
Total assets | 58,744 | 56,574 |
LIABILITIES AND EQUITY | ||
Short-term debt | 779 | 720 |
Current portion of long-term debt | 79 | 79 |
Accounts payable | 1,381 | 1,519 |
Accrued taxes | 105 | 22 |
Customer deposits | 303 | 299 |
Regulatory liabilities | 1,295 | 1,532 |
Current portion of operating lease liabilities | 156 | 0 |
Other current liabilities | 1,097 | 975 |
Total current liabilities | 5,195 | 5,146 |
Long-term debt | 13,942 | 12,892 |
Deferred income taxes and credits | 6,011 | 5,898 |
Pensions and benefits | 434 | 433 |
Asset retirement obligations | 2,999 | 3,031 |
Regulatory liabilities | 8,588 | 8,329 |
Operating lease liabilities | 772 | 0 |
Wildfire-related claims | 4,669 | 4,669 |
Other deferred credits and other long-term liabilities | 2,264 | 2,391 |
Total deferred credits and other liabilities | 25,737 | 24,751 |
Total liabilities | 44,874 | 42,789 |
Commitments and contingencies (Note 12) | ||
Preferred and preference stock | 2,245 | 2,245 |
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at respective dates) | 2,168 | 2,168 |
Additional paid-in capital | 683 | 680 |
Accumulated other comprehensive loss | (27) | (23) |
Retained earnings | 8,801 | 8,715 |
Total equity | 13,870 | 13,785 |
Total liabilities and equity | $ 58,744 | $ 56,574 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables, allowances for uncollectible accounts | $ 49 | $ 52 |
Utility property, plant and equipment, accumulated depreciation | 9,671 | 9,566 |
Nonutility property, plant and equipment, accumulated depreciation | $ 82 | $ 82 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 325,811,206 | 325,811,206 |
Common stock, shares outstanding | 325,811,206 | 325,811,206 |
Southern California Edison Company | ||
Receivables, allowances for uncollectible accounts | $ 49 | $ 51 |
Utility property, plant and equipment, accumulated depreciation | 9,671 | 9,566 |
Nonutility property, plant and equipment, accumulated depreciation | $ 77 | $ 77 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 560,000,000 | 560,000,000 |
Common stock, shares issued | 434,888,104 | 434,888,104 |
Common stock, shares outstanding | 434,888,104 | 434,888,104 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 308 | $ 242 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 498 | 479 |
Allowance for equity during construction | (17) | (22) |
Impairment and other | (4) | 66 |
Deferred income taxes and investment tax credits | (114) | 4 |
Other | 5 | 17 |
Nuclear decommissioning trusts | (73) | (24) |
Changes in operating assets and liabilities: | ||
Receivables | 9 | 77 |
Inventory | (30) | (7) |
Accounts payable | 31 | (216) |
Tax receivables and payables | 82 | 162 |
Other current assets and liabilities | (381) | (277) |
Regulatory assets and liabilities, net | (96) | 405 |
Other noncurrent assets and liabilities | (8) | (47) |
Net cash provided by operating activities | 210 | 859 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 1,087 | 1,783 |
Term loan issued | 750 | 0 |
Long-term debt matured | (40) | (41) |
Short-term debt financing, net | (538) | (2,261) |
Payments for stock-based compensation | (41) | (10) |
Receipts from stock option exercises | 22 | 2 |
Dividends to noncontrolling interests | (36) | (36) |
Dividends paid | (200) | (197) |
Other | 5 | 15 |
Net cash provided by (used in) financing activities | 1,009 | (745) |
Cash flows from investing activities: | ||
Capital expenditures | (1,074) | (1,137) |
Proceeds from sale of nuclear decommissioning trust investments | 1,208 | 931 |
Purchases of nuclear decommissioning trust investments | (1,135) | (907) |
Other | 15 | 16 |
Investing cash flows from continuing operations | (986) | (1,097) |
Net increase (decrease) in cash, cash equivalents and restricted cash including cash held for sale | 233 | (983) |
Less: Net increase in cash held for sale | 0 | 43 |
Net increase (decrease) in cash, cash equivalent and restricted cash | 233 | (1,026) |
Cash, cash equivalents and restricted cash at beginning of period | 152 | 1,132 |
Cash, cash equivalents and restricted cash at end of period | 385 | 106 |
Southern California Edison Company | ||
Cash flows from operating activities: | ||
Net income | 323 | 316 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 497 | 475 |
Allowance for equity during construction | (17) | (22) |
Impairment and other | (4) | 0 |
Deferred income taxes and investment tax credits | (109) | (3) |
Other | 3 | 15 |
Nuclear decommissioning trusts | (73) | (24) |
Changes in operating assets and liabilities: | ||
Receivables | 5 | 70 |
Inventory | (30) | (7) |
Accounts payable | 37 | (230) |
Tax receivables and payables | 83 | 81 |
Other current assets and liabilities | (366) | (268) |
Regulatory assets and liabilities, net | (96) | 405 |
Other noncurrent assets and liabilities | (6) | (7) |
Net cash provided by operating activities | 247 | 801 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 1,087 | 1,239 |
Term loan issued | 750 | 0 |
Long-term debt matured | (40) | (40) |
Short-term debt financing, net | (691) | (1,168) |
Payments for stock-based compensation | (26) | (3) |
Receipts from stock option exercises | 14 | 1 |
Dividends paid | (36) | (248) |
Other | 5 | 3 |
Net cash provided by (used in) financing activities | 1,063 | (216) |
Cash flows from investing activities: | ||
Capital expenditures | (1,074) | (1,124) |
Proceeds from sale of nuclear decommissioning trust investments | 1,208 | 931 |
Purchases of nuclear decommissioning trust investments | (1,135) | (907) |
Other | 15 | 15 |
Investing cash flows from continuing operations | (986) | (1,085) |
Net increase (decrease) in cash, cash equivalents and restricted cash including cash held for sale | 324 | (500) |
Cash, cash equivalents and restricted cash at beginning of period | 22 | 515 |
Cash, cash equivalents and restricted cash at end of period | $ 346 | $ 15 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Discounts and issuance costs of long term debt | $ 13 | $ 17 |
Southern California Edison Company | ||
Discounts and issuance costs of long term debt | $ 13 | $ 11 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2018 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the operating results for the full year. The December 31, 2018 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. Cash, Cash Equivalents and Restricted Cash Cash equivalents include investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: Edison International SCE (in millions) March 31, December 31, 2018 March 31, December 31, 2018 Money market funds $ 285 $ 116 $ 266 $ 1 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE (in millions) March 31, December 31, 2018 March 31, December 31, 2018 Book balances reclassified to accounts payable $ 38 $ 65 $ 37 $ 65 The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: (in millions) March 31, 2019 December 31, 2018 Edison International: Cash and cash equivalents $ 328 $ 144 Short-term restricted cash 1 57 8 Total cash, cash equivalents, and restricted cash $ 385 $ 152 SCE: Cash and cash equivalents $ 297 $ 21 Short-term restricted cash 1 49 1 Total cash, cash equivalents, and restricted cash $ 346 $ 22 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. Restricted cash at March 31, 2019 primarily relates to funds held by SCE that were used in April 2019 for nuclear decommissioning activities at San Onofre. Revenue Recognition Regulatory Proceedings 2018 General Rate Case In February 2018, SCE updated its 2018 General Rate Case ("GRC") application for the impact of Tax Cuts and Jobs Act ("Tax Reform") resulting in a requested 2018 base rate revenue requirement of $5.534 billion , a decrease of $106 million over the 2017 GRC authorized revenue requirement. In April 2019, the CPUC issued a 2018 GRC proposed decision, which if adopted, would result in a base rate revenue requirement of $5.102 billion in 2018, a decrease of $432 million from SCE's requested revenue requirement, primarily related to a reduction in authorized rate base, depreciation and operation and maintenance expenses. The proposed decision also identifies changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The proposed decision would also disallow certain historical spending, largely related to certain infrastructure replacement programs and corporate real estate. The CPUC did not issue a decision on the 2018 GRC application during 2018 or during the first quarter of 2019, therefore SCE recognized revenue based on the 2017 authorized revenue requirement, adjusted for items SCE has determined to be probable of occurring, primarily 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 ultimately adopted by the CPUC will be effective as of January 1, 2018 and January 1, 2019, respectively. See Note 11 for further details. The proposed decision, if adopted as drafted, would have a significant impact on SCE and Edison International’s reported results, including an impairment of utility property, plant and equipment of up to $257 million ( $185 million after-tax) related to disallowed historical capital expenditures and an increase to earnings of approximately $130 million from application of the decision to revenue, depreciation and income tax expense retroactively for 2018 and the first quarter of 2019. The proposed decision would allow a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It would also allow operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the proposed decision would, if adopted by the CPUC, result in a revenue requirement of $5.422 billion in 2019 and $5.823 billion in 2020. SCE will file comments on the proposed decision in May 2019 and SCE cannot predict when a final decision will be issued. A final decision could result in material changes to the proposed decision. FERC Formula Rate In October 2017, SCE filed its new formula rate with the FERC. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. In November 2018, SCE filed its 2019 annual update with the FERC with the proposed rates effective January 1, 2019, subject to settlement procedures and refund, and requested a decrease in transmission revenue requirement of $131 million , or 11% from amounts currently authorized in rates. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in 2018 and during the first quarter of 2019 based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. In April 2019, SCE filed an application with FERC to amend the formula rate associated with its transmission facilities in 2019. In the revised formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4% . If the new formula rate is accepted by FERC, it will supersede the existing formula rate, including the 2019 annual update, and could become effective as early as 60 days from the filing date. FERC has the authority to, and may, suspend new rates for up to five months . If the new formula rate is suspended by FERC, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate. The new formula rate would likely be subject to refund from the end of the suspension until it is ultimately approved by FERC. If the revised formula rate becomes effective on June 12, 2019 (the effective date requested by SCE), SCE's proposed revisions to its formula rate will result in a projected increase in its retail base transmission revenue requirement in 2019 of approximately $290 million from the currently effective retail base transmission revenue requirement of approximately $1 billion . See Note 7 for further information on SCE's revenue. Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. EPS attributable to Edison International common shareholders was computed as follows: Three months ended March 31, (in millions, except per-share amounts) 2019 2018 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 218 Participating securities dividends — — Income from continuing operations available to common shareholders $ 278 $ 218 Weighted average common shares outstanding 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.67 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 218 Participating securities dividends — — Income from continuing operations available to common shareholders $ 278 $ 218 Income impact of assumed conversions — — Income from continuing operations available to common shareholders and assumed conversions $ 278 $ 218 Weighted average common shares outstanding 326 326 Incremental shares from assumed conversions 1 1 Adjusted weighted average shares – diluted 327 327 Diluted earnings per share – continuing operations $ 0.85 $ 0.67 In addition to the participating securities discussed above, Edison International also may award stock options, which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 7,719,306 and 6,222,294 shares of common stock for the three months ended March 31, 2019 and 2018 , respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. New Accounting Guidance Accounting Guidance Adopted On January 1, 2019, Edison International and SCE adopted accounting standards updates that require lessees to recognize a lease on the balance sheet as a right-of-use ("ROU") asset and related lease liability and classify the lease as either operating or finance. Edison International and SCE adopted this guidance using the modified retrospective approach for leases that existed as of the adoption date and elected the optional transition method not to restate periods prior to the adoption date. Edison International and SCE also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and the practical expedient not to reassess existing land easements. Adoption of this standard increased ROU assets and lease liabilities on the consolidated balance sheets by $956 million and $951 million as of January 1, 2019 for Edison International and SCE, respectively. The standard did not materiality impact the consolidated statements of income for Edison International or SCE. Based on accounting standards adopted at January 1, 2019, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. This occurs when an entity has the right to obtain substantially all of the economic benefits from and has the right to direct the use of the identified asset. SCE determines if an arrangement is a lease at contract inception, and for all classes of assets, SCE includes both lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. Lease ROU assets are based on the liability, subject to adjustments, such as lease incentives. In measuring lease assets and liabilities, SCE excludes variable lease payments, other than those that depend on an index, a rate or are in substance fixed payments and includes lease payments made at or before the commencement date. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment and other liabilities on the consolidated balance sheets. See Note 13 for further information. In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income, while the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE adopted this guidance on January 1, 2019 and reclassified stranded tax effects of $10 million and $5 million , respectively, from accumulated other comprehensive income to retained earnings. See Notes 2 and 14 for further information. In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to fair value measurement. Edison International and SCE adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on Edison International and SCE's disclosures. See Note 4 for further information. Accounting Guidance Not Yet Adopted 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 over the remaining life of most financial assets measured at amortized cost, including trade and other receivables. The guidance also requires use of an allowance to record estimated credit losses on available-for-sale debt securities. Edison International and SCE are currently evaluating the impact of this new guidance and do not expect the adoption of the guidance will have material impact on Edison International and SCE. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment by changing the procedural steps to apply the goodwill impairment test. After the adoption of this accounting standards update, goodwill impairment will be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to goodwill impairment tests beginning in 2020. In August 2018, the FASB issued an accounting standards update which aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance also clarified presentation requirements for reporting implementation costs in the financial statements. The guidance is effective January 1, 2020 with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance. In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1, 2021, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance and do not expect the adoption of this standard will materially affect disclosures. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Consolidated Statements of Changes in Equity | Consolidated Statements of Changes in Equity The following table provides Edison International's changes in equity for the three months ended March 31, 2019 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2018 $ 2,545 $ (50 ) $ 7,964 $ 10,459 $ 2,193 $ 12,652 Net income — — 278 278 30 308 Other comprehensive income — 2 — 2 — 2 Cumulative effect of accounting changes 1 — (10 ) 10 — — — Common stock dividends declared ($0.6125 per share) — — (200 ) (200 ) — (200 ) Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — (18 ) (18 ) — (18 ) Noncash stock-based compensation 5 — — 5 — 5 Balance at March 31, 2019 $ 2,550 $ (58 ) $ 8,034 $ 10,526 $ 2,193 $ 12,719 1 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards updates on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information. The following table provides Edison International's changes in equity for the three months ended March 31, 2018 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity Balance at December 31, 2017 $ 2,526 $ (43 ) $ 9,188 $ 11,671 $ 2 $ 2,193 $ 13,866 Net income — — 218 218 (3 ) 30 245 Other comprehensive income — 2 — 2 — — 2 Cumulative effect of accounting changes 1 — (5 ) 10 5 — — 5 Common stock dividends declared ($0.6050 per share) — — (197 ) (197 ) — — (197 ) Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — — (30 ) (30 ) Stock-based compensation — — (8 ) (8 ) — — (8 ) Noncash stock-based compensation 5 — — 5 — — 5 Other — — — — 1 — 1 Balance at March 31, 2018 $ 2,531 $ (46 ) $ 9,211 $ 11,696 $ — $ 2,193 $ 13,889 1 Edison International recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on revenue recognition and the measurement of financial instruments. The following table provides SCE's changes in equity for the three months ended March 31, 2019 : (in millions) Preferred Common Additional Accumulated Retained Total Balance at December 31, 2018 $ 2,245 $ 2,168 $ 680 $ (23 ) $ 8,715 $ 13,785 Net income — — — — 323 323 Other comprehensive income — — — 1 — 1 Cumulative effect of accounting change 1 — — — (5 ) 5 — Dividends declared on common stock ($0.4599 per share) — — — — (200 ) (200 ) Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — — — (12 ) (12 ) Noncash stock-based compensation — — 3 — — 3 Balance at March 31, 2019 $ 2,245 $ 2,168 $ 683 $ (27 ) $ 8,801 $ 13,870 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information. The following table provides SCE's changes in equity for the three months ended March 31, 2018 : (in millions) Preferred Common Additional Accumulated Retained Total Balance at December 31, 2017 $ 2,245 $ 2,168 $ 671 $ (19 ) $ 9,607 $ 14,672 Net income — — — — 316 316 Other comprehensive income — — — 2 — 2 Cumulative effect of accounting change 1 (5 ) 5 — Dividends declared on common stock ($0.4875 per share) — — — — (212 ) (212 ) Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — — — (2 ) (2 ) Noncash stock-based compensation — — 2 — — 2 Balance at March 31, 2018 $ 2,245 $ 2,168 $ 673 $ (22 ) $ 9,684 $ 14,748 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities A variable interest entity ("VIE") is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch, and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are not Consolidated Power Purchase Agreements SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants, contracts with qualifying facilities that contain variable pricing provisions based on the price of natural gas and renewable energy contracts through which SCE absorbs commodity price risk. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants. As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to involvement with VIEs result from current amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its California Public Utilities Commission ("CPUC")-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 11 of the 2018 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,722 MW and 3,454 MW at March 31, 2019 and 2018 , respectively, and the amounts that SCE paid to these projects were $153 million and $143 million for the three months ended March 31, 2019 and 2018 , respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust II, Trust III, Trust IV, Trust V, and Trust VI were formed in 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.10% , 5.75% , 5.375% , 5.45% , and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE Board of Directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of March 31, 2019 and December 31, 2018 , consisted of investments of $400 million , $275 million , $325 million , $300 million , and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $400 million , $275 million , $325 million , $300 million , and $475 million of trust securities, respectively, and $10,000 each of common stock. The following table provides a summary of the trusts' income statements: Three months ended March 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2019 Dividend income $ 5 $ 4 $ 4 $ 4 $ 6 Dividend distributions 5 4 4 4 6 2018 Dividend income $ 5 $ 4 $ 4 $ 4 $ 6 Dividend distributions 5 4 4 4 6 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of March 31, 2019 and December 31, 2018 , nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds. Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using an income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: March 31, 2019 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 17 $ 95 $ (1 ) $ 111 Money market funds and other 275 21 — — 296 Nuclear decommissioning trusts: Stocks 2 1,550 — — — 1,550 Fixed Income 3 889 1,724 — — 2,613 Short-term investments, primarily cash equivalents 212 35 — — 247 Subtotal of nuclear decommissioning trusts 4 2,651 1,759 — — 4,410 Total assets 2,926 1,797 95 (1 ) 4,817 Liabilities at fair value Derivative contracts — 2 — (1 ) 1 Total liabilities — 2 — (1 ) 1 Net assets $ 2,926 $ 1,795 $ 95 $ — $ 4,816 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 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% of SCE's equity investments were in companies located in the United States at both March 31, 2019 and December 31, 2018 . 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $57 million and $67 million at March 31, 2019 and December 31, 2018 , respectively. 4 Excludes net payables of $119 million and $143 million at March 31, 2019 and December 31, 2018 , respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. Edison International Parent and Other Edison International Parent and Other assets measured at fair value consisted of money market funds of $19 million and $115 million at March 31, 2019 and December 31, 2018 , respectively, classified as Level 1. SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended March 31, (in millions) 2019 2018 Fair value of net assets at beginning of period $ 141 $ 101 Total realized/unrealized losses 1 (46 ) (20 ) Fair value of net assets at end of period 2 $ 95 $ 81 Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (2 ) $ 5 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 There were no material transfers into or out of Level 3 during 2019 and 2018 . The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights March 31, 2019 $ 95 $ — Auction prices CAISO CRR auction prices $(7.02) - $41.52 ($1.43) December 31, 2018 141 — Auction prices CAISO CRR auction prices $(7.41) - $41.52 ($1.62) Level 3 Fair Value Uncertainty For CRRs, increases or decreases in CAISO auction price would result in higher or lower fair value as of March 31, 2019 , respectively. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers, and relevant credit information. There are no securities classified as Level 3 in the nuclear decommissioning trusts. Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: March 31, 2019 December 31, 2018 (in millions) Carrying Value 1 Fair Value 2 Carrying Value 1 Fair Value 2 Edison International $ 15,762 $ 16,068 $ 14,711 $ 14,844 SCE 14,021 14,412 12,971 13,180 1 Carrying value is net of debt issuance costs. 2 The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2. |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt In March 2019, SCE issued $500 million of 4.20% first and refunding mortgage bonds due in 2029 and $600 million of 4.875% first and refunding mortgage bonds due in 2049 . The proceeds were used to repay commercial paper borrowings and for general corporate purposes. Credit Agreements and Short-Term Debt In February 2019, SCE borrowed $750 million under a Term Loan Agreement due in February 2020, with a variable interest rate based on the London Interbank Offered Rate plus 70 basis points. The proceeds were used to repay SCE's commercial paper borrowings and for general corporate purposes. In April 2019, Edison International borrowed $1.0 billion under a Term Loan Agreement due in April 2020, with a variable interest rate based on the London Interbank Offered Rate plus 90 basis points. Of the proceeds of the term loan, $750 million was contributed to SCE and the remainder of the proceeds will be used for general corporate and working capital purposes. In April 2019, SCE used the $750 million Edison International contributed to SCE to repay its February 2019 Term Loan discussed above. SCE and Edison International Parent have multi-year revolving credit facilities of $3.0 billion and $1.5 billion , respectively, both facilities maturing 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 March 31, 2019 , SCE's outstanding commercial paper, net of discount, was $ 29 million at a weighted-average interest rate of 3.15% . At March 31, 2019 , letters of credit issued under SCE's credit facility aggregated $209 million , substantially all of which are scheduled to expire in twelve months or less. At December 31, 2018 , the outstanding commercial paper, net of discount, was $720 million at a weighted-average interest rate of 3.23% . At March 31, 2019 , Edison International Parent's outstanding commercial paper, net of discount, was $153 million at a weighted-average interest rate of 3.03% . At December 31, 2018 , Edison International Parent had no outstanding commercial paper. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements. Credit and Default Risk Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments. Certain power and gas contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $1 million and $4 million as of March 31, 2019 and December 31, 2018 , respectively, for which SCE has posted no collateral and $17 million collateral at March 31, 2019 and December 31, 2018 , respectively, to its counterparties for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2019 , SCE would be required to post $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: March 31, 2019 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 102 $ 10 $ 112 $ 2 $ — $ 2 $ 110 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 3 — — — — — — — Net amounts presented in the consolidated balance sheets $ 101 $ 10 $ 111 $ 1 $ — $ 1 $ 110 December 31, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 171 $ 2 $ 173 $ 13 $ — $ 13 $ 160 Gross amounts offset in the consolidated balance sheets — — — — — — — Cash collateral posted — — — (7 ) — (7 ) 7 Net amounts presented in the consolidated balance sheets $ 171 $ 2 $ 173 $ 6 $ — $ 6 $ 167 1 Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. 2 Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets. 3 At March 31, 2019, SCE posted $11 million of cash collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. Income Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are reported in cash flows from operating activities in the consolidated statements of cash flows. The following table summarizes the components of SCE's economic hedging activity: Three months ended March 31, (in millions) 2019 2018 Realized gains (losses) $ 32 $ (12 ) Unrealized losses (50 ) (14 ) Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Commodity Unit of Measure March 31, 2019 December 31, 2018 Electricity options, swaps and forwards GWh 2,515 2,786 Natural gas options, swaps and forwards Bcf 4 20 Congestion revenue rights GWh 39,401 54,453 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
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 revenue or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances. • Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities. The following table is a summary of SCE's revenue: Three months ended March 31, 2019 Three months ended March 31, 2018 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers 1,2,3 $ 1,502 $ 957 $ 2,459 $ 1,536 $ 1,192 $ 2,728 Alternative revenue programs and other operating revenue 4 48 309 357 (23 ) (151 ) (174 ) Total operating revenue $ 1,550 $ 1,266 $ 2,816 $ 1,513 $ 1,041 $ 2,554 1 In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and the three months ended March 31, 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. In April 2019, the CPUC issued a proposed decision, which, if adopted would result in 2018 and 2019 base rate revenue requirements of $5.102 billion and $5.422 billion , respectively. For further information, see Note 1. 2 At March 31, 2019 and December 31, 2018, SCE's receivables related to contracts from customers were $1.0 billion and $1.1 billion , respectively, which include accrued unbilled revenue of $459 million and $482 million , respectively. 3 Includes SCE's franchise fees billed to customers of $28 million for both the three months ended March 31, 2019 and 2018. 4 Includes differences between amounts billed and authorized levels for both CPUC and FERC. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Income from continuing operations before income taxes $ 196 $ 211 $ 218 $ 310 Provision for income tax at federal statutory rate of 21% 41 44 46 65 Increase in income tax from: State tax, net of federal benefit (7 ) (5 ) (5 ) 1 Property-related (69 ) (69 ) (69 ) (69 ) Shared-based compensation 1 (2 ) — (2 ) — Deferred tax re-measurement 2 (69 ) — (69 ) — Other (6 ) (1 ) (6 ) (3 ) Total income tax benefit from continuing operations $ (112 ) $ (31 ) $ (105 ) $ (6 ) Effective tax rate (57.1 )% (14.7 )% (48.2 )% (1.9 )% 1 Includes state taxes of $1 million for the three months ended March 31, 2019 for both Edison International and SCE. 2 Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders. The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11. Tax Disputes Tax years that remain open for examination by the Internal Revenue Service ("IRS") and the California Franchise Tax Board are 2015 – 2017 and 2010 – 2017, respectively. Edison International has settled all open tax positions with the IRS for taxable years prior to 2013. In the fourth quarter of 2018, Edison International 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. As a result of the settlement, Edison International expects a $65 million refund of tax and interest from the California Franchise Tax Board in 2019. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Pension Plans Net periodic pension expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Service cost $ 32 $ 32 $ 31 $ 31 Non-service cost Interest cost 39 35 35 32 Expected return on plan assets (52 ) (57 ) (49 ) (53 ) Amortization of prior service cost — 1 — 1 Amortization of net loss 1 2 2 1 1 Regulatory adjustment (deferred) (4 ) 2 (4 ) 2 Total non-service benefit 2 $ (15 ) $ (17 ) $ (17 ) $ (17 ) Total expense recognized $ 17 $ 15 $ 14 $ 14 1 Includes net loss reclassified from other comprehensive loss of $2 million and $1 million for Edison International and SCE, respectively, for both the three months ended March 31, 2019 and 2018 . 2 Included in "Other income and expenses" on Edison International's and SCE's consolidated statement of income. Postretirement Benefits Other Than Pensions ("PBOP") Net periodic PBOP expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Service cost $ 8 $ 9 $ 8 $ 9 Non-service cost Interest cost 21 21 21 21 Expected return on plan assets (28 ) (30 ) (28 ) (30 ) Amortization of net gain (1 ) — (1 ) — Regulatory adjustment (deferred) 6 — 6 — Total non-service benefit 1 $ (2 ) $ (9 ) $ (2 ) $ (9 ) Total expense $ 6 $ — $ 6 $ — 1 Included in "Other income and expenses" on Edison International's and SCE's consolidated statement of income. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Entity, Other Assets, Noncurrent [Abstract] | |
Investments | Investments Nuclear Decommissioning Trusts Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments): Longest Maturity Dates Amortized Cost Fair Value (in millions) March 31, December 31, March 31, December 31, 2018 Stocks — * * $ 1,550 $ 1,381 Municipal bonds 2057 662 665 785 767 U.S. government and agency securities 2067 1,116 1,193 1,224 1,288 Corporate bonds 2050 549 573 603 611 Short-term investments and receivables/payables 1 One-year 124 70 129 73 Total $ 2,451 $ 2,501 $ 4,291 $ 4,120 * Equity investments are measured at fair value. 1 Short-term investments include $35 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 1, 2019 and January 2, 2019 as of March 31, 2019 and December 31, 2018 , respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.6 billion and $1.4 billion at March 31, 2019 and December 31, 2018 , respectively, and other-than-temporary impairments of $162 million and $170 million at the respective periods. Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $366 million and $323 million at March 31, 2019 and December 31, 2018 , respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.9 billion and $3.8 billion at March 31, 2019 and December 31, 2018 , respectively. The following table summarizes the gains and (losses) for the trust investments: Three months ended March 31, (in millions) 2019 2018 Gross realized gains $ 23 $ 61 Gross realized loss — 8 Net unrealized gains (losses) for equity securities $ 168 $ (63 ) 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 | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 935 $ 814 Power contracts 333 305 Other 18 14 Total current 1,286 1,133 Long-term: Deferred income taxes, net of liabilities 3,683 3,589 Pensions and other postretirement benefits 274 271 Power contracts 597 700 Unamortized investments, net of accumulated amortization 117 118 Unamortized loss on reacquired debt 150 153 Regulatory balancing accounts 232 360 Environmental remediation 135 134 Other 80 55 Total long-term 5,268 5,380 Total regulatory assets $ 6,554 $ 6,513 Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 836 $ 1,080 Energy derivatives 100 158 2018 GRC 341 274 Other 18 20 Total current 1,295 1,532 Long-term: Cost of removal 2,808 2,769 Re-measurement of deferred taxes 1 2,650 2,776 Recoveries in excess of ARO liabilities 2 1,357 1,130 Regulatory balancing accounts 1,428 1,344 Other postretirement benefits 189 185 Other 156 125 Total long-term 8,588 8,329 Total regulatory liabilities $ 9,883 $ 9,861 1 SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first quarter of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8. 2 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion. Net Regulatory Balancing Accounts The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) March 31, December 31, Asset (liability) Energy resource recovery account $ 927 $ 815 New system generation balancing account (96 ) (74 ) Public purpose programs and energy efficiency programs (1,304 ) (1,200 ) Tax accounting memorandum account and pole loading balancing account (128 ) 28 Base revenue requirement balancing account 1 (282 ) (628 ) DOE litigation memorandum account (69 ) (69 ) Greenhouse gas auction revenue and low carbon fuel standard revenue (150 ) (81 ) FERC balancing accounts (139 ) (180 ) Catastrophic event memorandum account 95 144 Wildfire expense memorandum account 41 128 Other 8 (133 ) Liability $ (1,097 ) $ (1,250 ) 1 The base revenue requirement balancing account at March 31, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017. See Note 12 for further discussion. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. SCE has agreed to indemnify the City of Redlands, California in connection with the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. As of March 31, 2019, there has been no groundwater contamination identified. Thus, SCE has not recorded a liability related to this indemnity. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows. Southern California Wildfires and Mudslides 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 investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). While the progression of these two fires remains under review, the December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE information, the Thomas and Koenigstein Fires burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two fatalities. The largest of the November 2018 fires, known as the Woolsey Fire, originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE information, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three fatalities. As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by mudslides and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory that SCE has responsibility for the Thomas and/or Koenigstein Fires and that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 fatalities, with two additional fatalities presumed. The extent of liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether SCE substantially caused or contributed to the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and state laws in connection with the ignition of a wildfire. Final determinations of liability for the Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire (each a "2017/2018 Wildfire/Mudslide Event," and, collectively, the "2017/2018 Wildfire/Mudslide Events"), including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes. Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require a liability to be accrued under accounting standards. Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the 2017/2018 Wildfire/Mudslide Events and accrued a liability of $4.7 billion in the fourth quarter of 2018. In the fourth quarter of 2018, Edison International and SCE also recorded expected recoveries from insurance of $2.0 billion and expected recoveries through FERC electric rates of $135 million . The net charge to earnings recorded in the fourth quarter of 2018 was $1.8 billion after-tax. The liability that was accrued corresponds to the lower end of the reasonably estimated range of expected potential losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE will seek to offset any actual losses realized with recoveries from insurance policies in place at the time of the events and, to the extent actual losses exceed insurance, through electric rates. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not reasonably or prudently incurred. See "—Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" for additional information. External Investigations and Internal Review The VCFD and CAL FIRE have issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The VCFD and CAL FIRE findings do not determine legal causation of or assign legal liability for the Thomas or Koenigstein Fires; final determinations of legal causation and liability would only be made during lengthy and complex litigation. The reports did not address the causes of the Montecito Mudslides. SCE expects that the VCFD and CAL FIRE will ultimately also issue a report concerning the departments' findings of origin and cause of the Woolsey Fire but cannot predict when this report will be released. The CPUC's Safety Enforcement Division ("SED") is also conducting investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the fires. SCE cannot predict when the SED's investigations will be completed. SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes. Thomas Fire On March 13, 2019, the VCFD and CAL FIRE issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that molten metal was found on the ground in that location during their investigation. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the progression of the Thomas Fire and the extent of damages that may be attributable to that fire. Koenigstein Fire On March 20, 2019, the VCFD and CAL FIRE issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. SCE has previously disclosed that SCE believed its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the progression of the Koenigstein Fire and the extent of damages that may be attributable to that fire. Montecito Mudslides SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, could have proximately caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused or contributed to by the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides. Woolsey Fire SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outage on SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage. Whether the November 8, 2018 outage was related to contact being made between the support wire and the electrical wire has not been determined. SCE believes that its equipment could be found to have been associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE. Wildfire-related Litigation Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties in the case of the Thomas and Koenigstein Fires and the Montecito Mudslides, and in Ventura and Los Angeles Counties in the case of the Woolsey Fire, allege, among other things, negligence, inverse condemnation, trespass, private nuisance, personal injury, wrongful death, and violations of the California Public Utilities and Health and Safety Codes. SCE expects to be the subject of additional lawsuits related to the 2017/2018 Wildfire/Mudslide Events. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs. The Thomas and Koenigstein Fires and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. The Woolsey Fire lawsuits have also been coordinated in the Los Angeles Superior Court. On October 4, 2018, the Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In January 2019, SCE filed a cross-complaint against certain governmental entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. Additionally, in July 2018 and September 2018, two separate derivative lawsuits for breach of fiduciary duties and unjust enrichment were filed in the Los Angeles Superior Court against certain current and former members of the Boards of Directors of Edison International and SCE. Edison International and SCE are identified as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants violated their fiduciary duties by causing or allowing SCE to operate in an unsafe manner in violation of relevant regulations, resulting in substantial liability and damage from the Thomas and Koenigstein Fires and the Montecito Mudslides. In November 2018, a purported class action lawsuit alleging securities fraud and related claims was filed in the federal court against EIX, SCE and certain current and former officers of Edison International and SCE. The plaintiff alleges that Edison International and SCE made false and/or misleading statements in filings with the Securities and Exchange Commission by failing to disclose that SCE had allegedly failed to maintain its electric transmission and distribution networks in compliance with safety regulations, and that those alleged safety violations led to fires that occurred in 2018, including the Woolsey Fire. In January 2019, two separate derivative lawsuits alleging breach of fiduciary duties, securities fraud, misleading proxy statements, unjust enrichment, and related claims were filed in federal court against all current and certain former members of the Boards of Directors and certain current and former officers of Edison International and SCE. Edison International and SCE are named as nominal defendants in those actions. The derivative lawsuits generally allege that the individual defendants breached their fiduciary duties and made misleading statements or allowed misleading statements to be made (i) between March 21, 2014 and August 10, 2015, with respect to certain ex parte communications between SCE and CPUC decision-makers concerning the settlement of the San Onofre Order Instituting Investigation proceeding (the "San Onofre OII") and (ii) from February 23, 2016 to the present, concerning compliance with applicable laws and regulations concerning electric system maintenance and operations related to wildfire risks. The lawsuits generally allege that these breaches of duty and misstatements led to substantial liability and damage resulting from the disclosure of SCE's ex parte communications in connection with the San Onofre OII settlement, and from the 2017/2018 Wildfire/Mudslide Events. For more information regarding the San Onofre OII, see Note 12 in the 2018 Form 10-K. Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates The process for estimating losses associated with wildfire litigation claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including but not limited to estimates based on currently available information and assessments, opinions regarding litigation risk, and prior experience with litigating and settling other wildfire cases. As additional information becomes available, management estimates and assumptions regarding the causes and financial impact of the 2017/2018 Wildfire/Mudslide Events may change. Such additional information is expected to become available from multiple external sources, during the course of litigation, and from SCE's ongoing internal review, including, among other things, information regarding the extent of damages that may be attributable to any fire determined to have been substantially caused by SCE's equipment, information that may be obtained from the equipment in CAL FIRE's possession, and information pertaining to fire progression, suppression activities, alleged damages and insurance claims. As described above, the $1.8 billion after-tax liability corresponds to the lower end of the reasonably estimated range of expected losses that may be incurred in connection with the 2017/2018 Wildfire/Mudslide Events and is subject to change as additional information becomes available. Edison International and SCE currently believe that it is reasonably possible that the amount of the actual loss will be greater than the amount accrued. However, Edison International and SCE are currently unable to reasonably estimate an upper end of the range of expected losses given the uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge, whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the preliminary nature of the litigation processes. For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE has $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. SCE also had other general liability insurance coverage of approximately $450 million , but it is uncertain whether these other policies would apply to liabilities alleged to be related to the Montecito Mudslides. For the Woolsey Fire, SCE has an additional $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. At March 31, 2019, Edison International and SCE had recorded $2.0 billion for expected insurance recoveries associated with the recorded loss for the 2017/2018 Wildfire/Mudslide Events. SCE will seek to recover uninsured costs resulting from the 2017/2018 Wildfire/Mudslide Events through electric rates. The amount of the receivable is subject to change based on additional information. Recovery of these costs is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire-related costs is SDG&E's requests for cost recovery related to 2007 wildfire activity, where FERC allowed recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that SDG&E did not meet the CPUC's prudency standard. As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in future wildfire cost-recovery proceedings. 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 liability accrued. At March 31, 2019 and 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. 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 $735 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 $35 million per occurrence and up to $15 million of co-insurance, which results in net coverage of approximately $685 million . SCE has also obtained approximately $1.2 billion of wildfire-specific insurance coverage for events that may occur during the period June 1, 2019 through June 30, 2020, subject to up to $115 million of co-insurance and $50 million of self-insured retention, which results in net coverage of approximately $1 billion . SCE expects its coverage for this period to be subject to an initial self-insured retention of $10 million per occurrence, but, based on policies currently in place, SCE's coverage for the period is subject to a self-insurance retention of $50 million per occurrence. 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 additional material self-insured costs in the event of multiple wildfire occurrences during a policy period or with a single wildfire with damages in excess of the policy limits. SCE's cost of obtaining wildfire insurance coverage has increased significantly as a result of, among other things, the number of recent and significant wildfire events throughout California and the application of inverse condemnation to investor-owned utilities. As such, SCE may not be able to obtain sufficient wildfire insurance at a reasonable cost. Based on policies currently in effect, SCE anticipates that its wildfire insurance expense, prior to any regulatory deferrals, will total approximately $399 million during 2019. Wildfire insurance expense will increase in 2019 if SCE obtains additional wildfire-specific insurance. In February 2019, the CPUC approved recovery of $107 million of the costs incurred by SCE to obtain a 12-month, $300 million wildfire insurance policy in December 2017. As a result of this decision, SCE will recover these insurance premiums during 2019. As of March 31, 2019, SCE had regulatory assets of $148 million related to wildfire insurance costs and believes that such amounts are probable of recovery. While SCE believes that amounts deferred are probable of recovery, there is no assurance that SCE will be allowed to recover costs that have been incurred, or costs incurred in the future for additional wildfire insurance, in electric rates. Recovery of Wildfire-Related Costs California courts have previously found investor-owned utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property damages resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement through recovery of uninsured wildfire-related costs in electric rates. However, in November 2017, the CPUC issued a decision denying SDG&E's request to include in its rates uninsured wildfire-related costs arising from several 2007 wildfires, finding that SDG&E did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In July 2018, the CPUC denied both SDG&E's application for rehearing on its cost recovery request and a joint application for rehearing filed by SCE and PG&E limited to the applicability of inverse condemnation principles in the same proceeding. The California Court of Appeal and the California Supreme Court have denied SDG&E's petitions for review of the CPUC's denial of SDG&E's application. In September 2018, California Senate Bill 901 ("SB 901") was signed by the Governor of California. Although SB 901 does not address the strict liability standard imposed by courts in inverse condemnation actions, the bill as enacted introduces a number of considerations the CPUC can apply to determine whether costs are recoverable in electric rates for wildfires occurring on or after January 1, 2019, including, among other things, the utility's actions, circumstances beyond the utility's control and the impact of extreme climate conditions. SB 901 requires investor-owned utilities to prepare annually, for CPUC approval, wildfire risk mitigation plans, and compliance with an approved plan is one of the factors that the CPUC can consider in addressing cost recovery. On February 6, 2019, in compliance with SB 901, SCE filed its wildfire mitigation plan for 2019. While SCE takes the position in its wildfire mitigation plan that substantial compliance with the plan, once approved, will demonstrate that SCE prudently operated its system and met the CPUC's prudent manager standard regarding wildfire risk mitigation, the CPUC may not agree with SCE's position. Pursuant to the requirements of SB 901, a Commission on Catastrophic Wildfire Cost and Recovery was formed in January 2019 to examine, among other things, the socialization of catastrophic wildfire costs in an equitable manner. SB901 also provides an opportunity for utilities to securitize costs that are deemed just and reasonable by the CPUC for wildfires that occur after January 1, 2019 and, to the extent costs exceed the maximum amount the utility can pay without harming ratepayers or materially impacting the utility's ability to provide adequate and safe services, for wildfires that occurred in 2017. Based on events and information available to date, SCE believes it is unlikely that it will seek to use this mechanism to securitize costs incurred in connection with the 2017/2018 Wildfire/Mudslide Events. Edison International and SCE continue to pursue legislative, regulatory and legal strategies to address the application of a strict liability standard to wildfire-related damages without the ability to recover resulting costs in electric rates. In April 2019, a strike force formed by California Governor Gavin Newsom released a report entitled Wildfires and Climate Change: California's Energy Future that sets forth, among other things, guiding principles for potential reform of California policies regarding wildfire liability. While this report recommended that the Commission on Catastrophic Wildfire Cost and Recovery, the California legislature and the strike force continue working to develop a solution for consideration by the Governor and the legislature, Edison International and SCE cannot predict whether or when there will be a comprehensive solution mitigating the significant risk faced by California investor-owned utilities related to wildfires. In April 2019, in addition to other requested increases to its CPUC and FERC returns on common equity, SCE requested from both the CPUC and FERC an additional 6% return on common equity to compensate investors for current wildfire risk. SCE would seek to reduce or remove this additional return on common equity if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. Environmental Remediation SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring, and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain. At March 31, 2019 , SCE's recorded estimated minimum liability to remediate its 21 identified material sites (sites with a liability balance at March 31, 2019 , in which the upper end of the range of the costs is at least $1 million ) was $136 mill |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Leases as Lessee SCE has entered into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are 5 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019. (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Finance Leases 1 2019 $ 118 $ 32 $ 1 2020 124 33 1 2021 103 27 1 2022 79 22 2 2023 47 17 2 Thereafter 536 101 9 Total lease payments $ 1,007 $ 232 $ 16 Amount representing interest 3 249 62 6 Lease liabilities $ 758 $ 170 $ 10 At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows: (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Capital Leases 1 2019 $ 148 $ 42 $ 5 2020 124 31 6 2021 103 27 6 2022 79 22 6 2023 47 17 5 Thereafter 536 101 66 Total lease payments $ 1,037 $ 240 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 4 $ 36 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. 3 Lease payments are discounted to their present value using SCE's incremental borrowing rates. 4 Includes two contracts with net commitments of $26 million that will commence in 2019. Supplemental balance sheet information related to SCE's leases was as follows: (in millions) March 31, 2019 Operating leases: Operating lease ROU assets $ 928 Current portion of operating lease liabilities 156 Operating lease liabilities 772 Total operating lease liabilities $ 928 Finance leases included in: Utility property, plant and equipment, gross $ 14 Accumulated depreciation (4 ) Utility property, plant and equipment, net 10 Other current liabilities 1 Other long-term liabilities 9 Total finance lease liabilities $ 10 The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense: (in millions) Three months ended March 31, 2019 PPA leases: Operating lease cost $ 30 Variable lease cost 372 Total PPA lease cost 402 Other operating leases cost 11 Total lease cost $ 413 Other information related to leases was as follows: (in millions, except lease term and discount rate) Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases PPA leases $ 30 Other leases 11 ROU assets obtained in exchange for lease obligations: Other operating leases 9 Weighted average remaining lease term (in years): Operating leases PPA leases 12.85 Other leases 12.54 PPA Finance leases 12.14 Weighted average discount rate: Operating leases PPA leases 4.24 % Other leases 3.85 % PPA Finance leases 8.70 % Leases as Lessor SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years . During the three months ended March 31, 2019, SCE recognized $5 million in lease income, which is included in operating revenue on the consolidated statements of income. At March 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows: (in millions) 2019 $ 11 2020 15 2021 10 2022 10 2023 9 Thereafter 141 Total $ 196 |
Leases | Leases Leases as Lessee SCE has entered into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases as SCE has dispatch rights that determine when and how a plant runs. Prior to January 1, 2019, a power purchase agreement contained a lease when SCE purchased substantially all of the output from a specific plant and did not otherwise meet a fixed price unit of output exception. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are 5 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 12 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019. (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Finance Leases 1 2019 $ 118 $ 32 $ 1 2020 124 33 1 2021 103 27 1 2022 79 22 2 2023 47 17 2 Thereafter 536 101 9 Total lease payments $ 1,007 $ 232 $ 16 Amount representing interest 3 249 62 6 Lease liabilities $ 758 $ 170 $ 10 At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows: (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Capital Leases 1 2019 $ 148 $ 42 $ 5 2020 124 31 6 2021 103 27 6 2022 79 22 6 2023 47 17 5 Thereafter 536 101 66 Total lease payments $ 1,037 $ 240 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 4 $ 36 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. 3 Lease payments are discounted to their present value using SCE's incremental borrowing rates. 4 Includes two contracts with net commitments of $26 million that will commence in 2019. Supplemental balance sheet information related to SCE's leases was as follows: (in millions) March 31, 2019 Operating leases: Operating lease ROU assets $ 928 Current portion of operating lease liabilities 156 Operating lease liabilities 772 Total operating lease liabilities $ 928 Finance leases included in: Utility property, plant and equipment, gross $ 14 Accumulated depreciation (4 ) Utility property, plant and equipment, net 10 Other current liabilities 1 Other long-term liabilities 9 Total finance lease liabilities $ 10 The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense: (in millions) Three months ended March 31, 2019 PPA leases: Operating lease cost $ 30 Variable lease cost 372 Total PPA lease cost 402 Other operating leases cost 11 Total lease cost $ 413 Other information related to leases was as follows: (in millions, except lease term and discount rate) Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases PPA leases $ 30 Other leases 11 ROU assets obtained in exchange for lease obligations: Other operating leases 9 Weighted average remaining lease term (in years): Operating leases PPA leases 12.85 Other leases 12.54 PPA Finance leases 12.14 Weighted average discount rate: Operating leases PPA leases 4.24 % Other leases 3.85 % PPA Finance leases 8.70 % Leases as Lessor SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years . During the three months ended March 31, 2019, SCE recognized $5 million in lease income, which is included in operating revenue on the consolidated statements of income. At March 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows: (in millions) 2019 $ 11 2020 15 2021 10 2022 10 2023 9 Thereafter 141 Total $ 196 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
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 Three months ended March 31, (in millions) 2019 2018 2019 2018 Beginning balance $ (50 ) $ (43 ) $ (23 ) $ (19 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 2 2 1 2 Other 2 (10 ) (5 ) (5 ) (5 ) Change (8 ) (3 ) (4 ) (3 ) Ending Balance $ (58 ) $ (46 ) $ (27 ) $ (22 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 Edison International and SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects. |
Other Income and Expenses
Other Income and Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other Income and Expenses Other income and expenses are as follows: Three months ended March 31, (in millions) 2019 2018 SCE other income and (expenses): Equity allowance for funds used during construction $ 17 $ 22 Increase in cash surrender value of life insurance policies and life insurance benefits 9 8 Interest income 9 4 Net periodic benefit income – non-service components 19 26 Civic, political and related activities and donations (13 ) (4 ) Other (3 ) (5 ) Total SCE other income and (expenses) 38 51 Other income and (expenses) of Edison International Parent and Other: Net periodic benefit costs – non-service components (2 ) — Other 2 — Total Edison International other income and (expenses) $ 38 $ 51 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information for continuing operations is: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 200 $ 164 $ 177 $ 149 Tax refunds, net — (93 ) — (18 ) Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 200 $ 197 $ 200 $ 212 Preferred and preference stock 1 1 1 1 SCE's accrued capital expenditures at March 31, 2019 and 2018 were $392 million and $399 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 | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions For the three months ended March 31, 2019, SCE purchased wildfire liability insurance with premiums of $186 million from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows: March 31, December 31, (in millions) 2019 2018 Long-term insurance receivable due from affiliate $ 1,000 $ 1,000 Prepaid insurance 1 169 13 Current payables due to affiliate 2 62 4 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The amortization expense for prepaid insurance was $31 million and $36 million for the three months ended March 31, 2019 and 2018, respectively. 2 Reflected in "Accounts payable" on SCE's consolidated balance sheets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing energy services to commercial and industrial customers. Edison Energy's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to "Edison International Parent and Other" refer to Edison International Parent and its competitive subsidiaries and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's significant accounting policies were described in the "Notes to Consolidated Financial Statements" included in Edison International's and SCE's combined Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2018 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the operating results for the full year. The December 31, 2018 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents include investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. |
Revenue Recognition | Revenue Recognition Regulatory Proceedings 2018 General Rate Case In February 2018, SCE updated its 2018 General Rate Case ("GRC") application for the impact of Tax Cuts and Jobs Act ("Tax Reform") resulting in a requested 2018 base rate revenue requirement of $5.534 billion , a decrease of $106 million over the 2017 GRC authorized revenue requirement. In April 2019, the CPUC issued a 2018 GRC proposed decision, which if adopted, would result in a base rate revenue requirement of $5.102 billion in 2018, a decrease of $432 million from SCE's requested revenue requirement, primarily related to a reduction in authorized rate base, depreciation and operation and maintenance expenses. The proposed decision also identifies changes to certain balancing accounts, including the expansion of the TAMA to include the impacts of all differences between forecast and recorded tax expense. The proposed decision would also disallow certain historical spending, largely related to certain infrastructure replacement programs and corporate real estate. The CPUC did not issue a decision on the 2018 GRC application during 2018 or during the first quarter of 2019, therefore SCE recognized revenue based on the 2017 authorized revenue requirement, adjusted for items SCE has determined to be probable of occurring, primarily 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 ultimately adopted by the CPUC will be effective as of January 1, 2018 and January 1, 2019, respectively. See Note 11 for further details. The proposed decision, if adopted as drafted, would have a significant impact on SCE and Edison International’s reported results, including an impairment of utility property, plant and equipment of up to $257 million ( $185 million after-tax) related to disallowed historical capital expenditures and an increase to earnings of approximately $130 million from application of the decision to revenue, depreciation and income tax expense retroactively for 2018 and the first quarter of 2019. The proposed decision would allow a post-test year rate making mechanism that escalates capital additions by 2.49% for both 2019 and 2020. It would also allow operation and maintenance expenses to be escalated for 2019 and 2020 through the use of various escalation factors for labor, non-labor and medical expenses. The methodology set forth in the proposed decision would, if adopted by the CPUC, result in a revenue requirement of $5.422 billion in 2019 and $5.823 billion in 2020. SCE will file comments on the proposed decision in May 2019 and SCE cannot predict when a final decision will be issued. A final decision could result in material changes to the proposed decision. FERC Formula Rate In October 2017, SCE filed its new formula rate with the FERC. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. In November 2018, SCE filed its 2019 annual update with the FERC with the proposed rates effective January 1, 2019, subject to settlement procedures and refund, and requested a decrease in transmission revenue requirement of $131 million , or 11% from amounts currently authorized in rates. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in 2018 and during the first quarter of 2019 based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. In April 2019, SCE filed an application with FERC to amend the formula rate associated with its transmission facilities in 2019. In the revised formula rate, SCE seeks a base return on equity of 17.12% ("FERC Base ROE"), compared to its proposed base ROE of 10.30% for its 2018 formula rate. The requested FERC Base ROE reflects a conventional ROE of 11.12% and an additional ROE of 6% to compensate investors for current wildfire risk. SCE would seek to reduce or remove the additional wildfire risk ROE if there is a material reduction in its wildfire cost recovery risk due to regulatory or legislative reform. SCE's total ROE request, inclusive of project incentives and a 0.5% incentive for CAISO participation, is approximately 18.4% . If the new formula rate is accepted by FERC, it will supersede the existing formula rate, including the 2019 annual update, and could become effective as early as 60 days from the filing date. FERC has the authority to, and may, suspend new rates for up to five months . If the new formula rate is suspended by FERC, the 2019 transmission revenue requirement rate established in the 2019 annual update will continue to be effective, subject to refund, from January 1, 2019 until the end of the suspension of the new formula rate. The new formula rate would likely be subject to refund from the end of the suspension until it is ultimately approved by FERC. If the revised formula rate becomes effective on June 12, 2019 (the effective date requested by SCE), SCE's proposed revisions to its formula rate will result in a projected increase in its retail base transmission revenue requirement in 2019 of approximately $290 million from the currently effective retail base transmission revenue requirement of approximately $1 billion . See Note 7 for further information on SCE's revenue. |
Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted On January 1, 2019, Edison International and SCE adopted accounting standards updates that require lessees to recognize a lease on the balance sheet as a right-of-use ("ROU") asset and related lease liability and classify the lease as either operating or finance. Edison International and SCE adopted this guidance using the modified retrospective approach for leases that existed as of the adoption date and elected the optional transition method not to restate periods prior to the adoption date. Edison International and SCE also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs, and the practical expedient not to reassess existing land easements. Adoption of this standard increased ROU assets and lease liabilities on the consolidated balance sheets by $956 million and $951 million as of January 1, 2019 for Edison International and SCE, respectively. The standard did not materiality impact the consolidated statements of income for Edison International or SCE. Based on accounting standards adopted at January 1, 2019, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. This occurs when an entity has the right to obtain substantially all of the economic benefits from and has the right to direct the use of the identified asset. SCE determines if an arrangement is a lease at contract inception, and for all classes of assets, SCE includes both lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. Lease ROU assets are based on the liability, subject to adjustments, such as lease incentives. In measuring lease assets and liabilities, SCE excludes variable lease payments, other than those that depend on an index, a rate or are in substance fixed payments and includes lease payments made at or before the commencement date. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in operating lease ROU assets and operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant and equipment and other liabilities on the consolidated balance sheets. See Note 13 for further information. In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income, while the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE adopted this guidance on January 1, 2019 and reclassified stranded tax effects of $10 million and $5 million , respectively, from accumulated other comprehensive income to retained earnings. See Notes 2 and 14 for further information. In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to fair value measurement. Edison International and SCE adopted this guidance effective January 1, 2019. The adoption of this guidance did not have a material impact on Edison International and SCE's disclosures. See Note 4 for further information. Accounting Guidance Not Yet Adopted 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 over the remaining life of most financial assets measured at amortized cost, including trade and other receivables. The guidance also requires use of an allowance to record estimated credit losses on available-for-sale debt securities. Edison International and SCE are currently evaluating the impact of this new guidance and do not expect the adoption of the guidance will have material impact on Edison International and SCE. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment by changing the procedural steps to apply the goodwill impairment test. After the adoption of this accounting standards update, goodwill impairment will be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to goodwill impairment tests beginning in 2020. In August 2018, the FASB issued an accounting standards update which aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. The guidance also clarified presentation requirements for reporting implementation costs in the financial statements. The guidance is effective January 1, 2020 with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance. In August 2018, the FASB issued an accounting standards update to remove, modify, and add certain disclosure requirements related to employer-sponsored defined benefit pension or other postretirement plans. The guidance is effective January 1, 2021, with early adoption permitted. Edison International and SCE are currently evaluating the impact of the guidance and do not expect the adoption of this standard will materially affect disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE (in millions) March 31, December 31, 2018 March 31, December 31, 2018 Money market funds $ 285 $ 116 $ 266 $ 1 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE (in millions) March 31, December 31, 2018 March 31, December 31, 2018 Book balances reclassified to accounts payable $ 38 $ 65 $ 37 $ 65 |
Cash, Cash Equivalents and Restricted Cash | The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: (in millions) March 31, 2019 December 31, 2018 Edison International: Cash and cash equivalents $ 328 $ 144 Short-term restricted cash 1 57 8 Total cash, cash equivalents, and restricted cash $ 385 $ 152 SCE: Cash and cash equivalents $ 297 $ 21 Short-term restricted cash 1 49 1 Total cash, cash equivalents, and restricted cash $ 346 $ 22 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. Restricted cash at March 31, 2019 primarily relates to funds held by SCE that were used in April 2019 for nuclear decommissioning activities at San Onofre. |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Three months ended March 31, (in millions, except per-share amounts) 2019 2018 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 218 Participating securities dividends — — Income from continuing operations available to common shareholders $ 278 $ 218 Weighted average common shares outstanding 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.67 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 218 Participating securities dividends — — Income from continuing operations available to common shareholders $ 278 $ 218 Income impact of assumed conversions — — Income from continuing operations available to common shareholders and assumed conversions $ 278 $ 218 Weighted average common shares outstanding 326 326 Incremental shares from assumed conversions 1 1 Adjusted weighted average shares – diluted 327 327 Diluted earnings per share – continuing operations $ 0.85 $ 0.67 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of Changes in Equity | The following table provides Edison International's changes in equity for the three months ended March 31, 2019 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2018 $ 2,545 $ (50 ) $ 7,964 $ 10,459 $ 2,193 $ 12,652 Net income — — 278 278 30 308 Other comprehensive income — 2 — 2 — 2 Cumulative effect of accounting changes 1 — (10 ) 10 — — — Common stock dividends declared ($0.6125 per share) — — (200 ) (200 ) — (200 ) Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — (18 ) (18 ) — (18 ) Noncash stock-based compensation 5 — — 5 — 5 Balance at March 31, 2019 $ 2,550 $ (58 ) $ 8,034 $ 10,526 $ 2,193 $ 12,719 1 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards updates on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information. The following table provides Edison International's changes in equity for the three months ended March 31, 2018 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity Balance at December 31, 2017 $ 2,526 $ (43 ) $ 9,188 $ 11,671 $ 2 $ 2,193 $ 13,866 Net income — — 218 218 (3 ) 30 245 Other comprehensive income — 2 — 2 — — 2 Cumulative effect of accounting changes 1 — (5 ) 10 5 — — 5 Common stock dividends declared ($0.6050 per share) — — (197 ) (197 ) — — (197 ) Dividends to noncontrolling interests ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — — (30 ) (30 ) Stock-based compensation — — (8 ) (8 ) — — (8 ) Noncash stock-based compensation 5 — — 5 — — 5 Other — — — — 1 — 1 Balance at March 31, 2018 $ 2,531 $ (46 ) $ 9,211 $ 11,696 $ — $ 2,193 $ 13,889 1 Edison International recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on revenue recognition and the measurement of financial instruments. |
Southern California Edison | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of Changes in Equity | The following table provides SCE's changes in equity for the three months ended March 31, 2019 : (in millions) Preferred Common Additional Accumulated Retained Total Balance at December 31, 2018 $ 2,245 $ 2,168 $ 680 $ (23 ) $ 8,715 $ 13,785 Net income — — — — 323 323 Other comprehensive income — — — 1 — 1 Cumulative effect of accounting change 1 — — — (5 ) 5 — Dividends declared on common stock ($0.4599 per share) — — — — (200 ) (200 ) Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — — — (12 ) (12 ) Noncash stock-based compensation — — 3 — — 3 Balance at March 31, 2019 $ 2,245 $ 2,168 $ 683 $ (27 ) $ 8,801 $ 13,870 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform. See Note 1 for further information. The following table provides SCE's changes in equity for the three months ended March 31, 2018 : (in millions) Preferred Common Additional Accumulated Retained Total Balance at December 31, 2017 $ 2,245 $ 2,168 $ 671 $ (19 ) $ 9,607 $ 14,672 Net income — — — — 316 316 Other comprehensive income — — — 2 — 2 Cumulative effect of accounting change 1 (5 ) 5 — Dividends declared on common stock ($0.4875 per share) — — — — (212 ) (212 ) Dividends declared on preferred and preference stock ($0.255 - $0.299 per share for preferred stock; $15.625 - $35.936 per share for preference stock) — — — — (30 ) (30 ) Stock-based compensation — — — — (2 ) (2 ) Noncash stock-based compensation — — 2 — — 2 Balance at March 31, 2018 $ 2,245 $ 2,168 $ 673 $ (22 ) $ 9,684 $ 14,748 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Southern California Edison | |
Variable Interest Entity | |
Summary of Trusts' Income Statements | The following table provides a summary of the trusts' income statements: Three months ended March 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2019 Dividend income $ 5 $ 4 $ 4 $ 4 $ 6 Dividend distributions 5 4 4 4 6 2018 Dividend income $ 5 $ 4 $ 4 $ 4 $ 6 Dividend distributions 5 4 4 4 6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion | The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: March 31, 2019 December 31, 2018 (in millions) Carrying Value 1 Fair Value 2 Carrying Value 1 Fair Value 2 Edison International $ 15,762 $ 16,068 $ 14,711 $ 14,844 SCE 14,021 14,412 12,971 13,180 1 Carrying value is net of debt issuance costs. 2 The fair value of Edison International's and SCE's short-term and long-term debt is classified as Level 2. |
Southern California Edison | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value by Level | The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: March 31, 2019 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 17 $ 95 $ (1 ) $ 111 Money market funds and other 275 21 — — 296 Nuclear decommissioning trusts: Stocks 2 1,550 — — — 1,550 Fixed Income 3 889 1,724 — — 2,613 Short-term investments, primarily cash equivalents 212 35 — — 247 Subtotal of nuclear decommissioning trusts 4 2,651 1,759 — — 4,410 Total assets 2,926 1,797 95 (1 ) 4,817 Liabilities at fair value Derivative contracts — 2 — (1 ) 1 Total liabilities — 2 — (1 ) 1 Net assets $ 2,926 $ 1,795 $ 95 $ — $ 4,816 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 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% of SCE's equity investments were in companies located in the United States at both March 31, 2019 and December 31, 2018 . 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $57 million and $67 million at March 31, 2019 and December 31, 2018 , respectively. 4 Excludes net payables of $119 million and $143 million at March 31, 2019 and December 31, 2018 , respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended March 31, (in millions) 2019 2018 Fair value of net assets at beginning of period $ 141 $ 101 Total realized/unrealized losses 1 (46 ) (20 ) Fair value of net assets at end of period 2 $ 95 $ 81 Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (2 ) $ 5 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 There were no material transfers into or out of Level 3 during 2019 and 2018 . |
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights March 31, 2019 $ 95 $ — Auction prices CAISO CRR auction prices $(7.02) - $41.52 ($1.43) December 31, 2018 141 — Auction prices CAISO CRR auction prices $(7.41) - $41.52 ($1.62) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Southern California Edison | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Asset Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: March 31, 2019 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 102 $ 10 $ 112 $ 2 $ — $ 2 $ 110 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 3 — — — — — — — Net amounts presented in the consolidated balance sheets $ 101 $ 10 $ 111 $ 1 $ — $ 1 $ 110 December 31, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 171 $ 2 $ 173 $ 13 $ — $ 13 $ 160 Gross amounts offset in the consolidated balance sheets — — — — — — — Cash collateral posted — — — (7 ) — (7 ) 7 Net amounts presented in the consolidated balance sheets $ 171 $ 2 $ 173 $ 6 $ — $ 6 $ 167 1 Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. 2 Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets. 3 At March 31, 2019, SCE posted $11 million of cash collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. |
Fair Value of Derivative Liabilities Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: March 31, 2019 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 102 $ 10 $ 112 $ 2 $ — $ 2 $ 110 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 3 — — — — — — — Net amounts presented in the consolidated balance sheets $ 101 $ 10 $ 111 $ 1 $ — $ 1 $ 110 December 31, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term 1 Subtotal Short-Term 2 Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 171 $ 2 $ 173 $ 13 $ — $ 13 $ 160 Gross amounts offset in the consolidated balance sheets — — — — — — — Cash collateral posted — — — (7 ) — (7 ) 7 Net amounts presented in the consolidated balance sheets $ 171 $ 2 $ 173 $ 6 $ — $ 6 $ 167 1 Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. 2 Included in "Other current liabilities" on Edison International's and SCE's consolidated balance sheets. 3 At March 31, 2019, SCE posted $11 million of cash collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. |
Summarization of Economic Hedging Activities | The following table summarizes the components of SCE's economic hedging activity: Three months ended March 31, (in millions) 2019 2018 Realized gains (losses) $ 32 $ (12 ) Unrealized losses (50 ) (14 ) |
Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Commodity Unit of Measure March 31, 2019 December 31, 2018 Electricity options, swaps and forwards GWh 2,515 2,786 Natural gas options, swaps and forwards Bcf 4 20 Congestion revenue rights GWh 39,401 54,453 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue | The following table is a summary of SCE's revenue: Three months ended March 31, 2019 Three months ended March 31, 2018 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers 1,2,3 $ 1,502 $ 957 $ 2,459 $ 1,536 $ 1,192 $ 2,728 Alternative revenue programs and other operating revenue 4 48 309 357 (23 ) (151 ) (174 ) Total operating revenue $ 1,550 $ 1,266 $ 2,816 $ 1,513 $ 1,041 $ 2,554 1 In the absence of a 2018 GRC decision, SCE recognized CPUC revenue in 2018 and the three months ended March 31, 2019 based on the 2017 authorized revenue requirement adjusted mainly for the July 2017 cost of capital decision and Tax Reform. In April 2019, the CPUC issued a proposed decision, which, if adopted would result in 2018 and 2019 base rate revenue requirements of $5.102 billion and $5.422 billion , respectively. For further information, see Note 1. 2 At March 31, 2019 and December 31, 2018, SCE's receivables related to contracts from customers were $1.0 billion and $1.1 billion , respectively, which include accrued unbilled revenue of $459 million and $482 million , respectively. 3 Includes SCE's franchise fees billed to customers of $28 million for both the three months ended March 31, 2019 and 2018. 4 Includes differences between amounts billed and authorized levels for both CPUC and FERC. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Tax Expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Income from continuing operations before income taxes $ 196 $ 211 $ 218 $ 310 Provision for income tax at federal statutory rate of 21% 41 44 46 65 Increase in income tax from: State tax, net of federal benefit (7 ) (5 ) (5 ) 1 Property-related (69 ) (69 ) (69 ) (69 ) Shared-based compensation 1 (2 ) — (2 ) — Deferred tax re-measurement 2 (69 ) — (69 ) — Other (6 ) (1 ) (6 ) (3 ) Total income tax benefit from continuing operations $ (112 ) $ (31 ) $ (105 ) $ (6 ) Effective tax rate (57.1 )% (14.7 )% (48.2 )% (1.9 )% 1 Includes state taxes of $1 million for the three months ended March 31, 2019 for both Edison International and SCE. 2 Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders. |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expense Components for Plans | Net periodic pension expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Service cost $ 32 $ 32 $ 31 $ 31 Non-service cost Interest cost 39 35 35 32 Expected return on plan assets (52 ) (57 ) (49 ) (53 ) Amortization of prior service cost — 1 — 1 Amortization of net loss 1 2 2 1 1 Regulatory adjustment (deferred) (4 ) 2 (4 ) 2 Total non-service benefit 2 $ (15 ) $ (17 ) $ (17 ) $ (17 ) Total expense recognized $ 17 $ 15 $ 14 $ 14 1 Includes net loss reclassified from other comprehensive loss of $2 million and $1 million for Edison International and SCE, respectively, for both the three months ended March 31, 2019 and 2018 . 2 Included in "Other income and expenses" on Edison International's and SCE's consolidated statement of income. |
PBOP Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expense Components for Plans | Net periodic PBOP expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Service cost $ 8 $ 9 $ 8 $ 9 Non-service cost Interest cost 21 21 21 21 Expected return on plan assets (28 ) (30 ) (28 ) (30 ) Amortization of net gain (1 ) — (1 ) — Regulatory adjustment (deferred) 6 — 6 — Total non-service benefit 1 $ (2 ) $ (9 ) $ (2 ) $ (9 ) Total expense $ 6 $ — $ 6 $ — 1 Included in "Other income and expenses" on Edison International's and SCE's consolidated statement of income. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment [Line Items] | |
Gains and (Losses) for Equity Securities | The following table summarizes the gains and (losses) for the trust investments: Three months ended March 31, (in millions) 2019 2018 Gross realized gains $ 23 $ 61 Gross realized loss — 8 Net unrealized gains (losses) for equity securities $ 168 $ (63 ) |
Southern California Edison | |
Investment [Line Items] | |
Amortized Cost and Fair Value of the Trust Investments | The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments): Longest Maturity Dates Amortized Cost Fair Value (in millions) March 31, December 31, March 31, December 31, 2018 Stocks — * * $ 1,550 $ 1,381 Municipal bonds 2057 662 665 785 767 U.S. government and agency securities 2067 1,116 1,193 1,224 1,288 Corporate bonds 2050 549 573 603 611 Short-term investments and receivables/payables 1 One-year 124 70 129 73 Total $ 2,451 $ 2,501 $ 4,291 $ 4,120 * Equity investments are measured at fair value. 1 Short-term investments include $35 million and $71 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 1, 2019 and January 2, 2019 as of March 31, 2019 and December 31, 2018 , respectively. |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) - Southern California Edison | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Assets [Line Items] | |
Regulatory Assets Included on the Consolidated Balance Sheets | SCE's regulatory assets included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 935 $ 814 Power contracts 333 305 Other 18 14 Total current 1,286 1,133 Long-term: Deferred income taxes, net of liabilities 3,683 3,589 Pensions and other postretirement benefits 274 271 Power contracts 597 700 Unamortized investments, net of accumulated amortization 117 118 Unamortized loss on reacquired debt 150 153 Regulatory balancing accounts 232 360 Environmental remediation 135 134 Other 80 55 Total long-term 5,268 5,380 Total regulatory assets $ 6,554 $ 6,513 |
Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 836 $ 1,080 Energy derivatives 100 158 2018 GRC 341 274 Other 18 20 Total current 1,295 1,532 Long-term: Cost of removal 2,808 2,769 Re-measurement of deferred taxes 1 2,650 2,776 Recoveries in excess of ARO liabilities 2 1,357 1,130 Regulatory balancing accounts 1,428 1,344 Other postretirement benefits 189 185 Other 156 125 Total long-term 8,588 8,329 Total regulatory liabilities $ 9,883 $ 9,861 1 SCE decreased its regulatory liability and recorded an income tax benefit of $69 million during the first quarter of 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders. For further information, see Note 8. 2 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion. |
Schedule of Net Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) March 31, December 31, Asset (liability) Energy resource recovery account $ 927 $ 815 New system generation balancing account (96 ) (74 ) Public purpose programs and energy efficiency programs (1,304 ) (1,200 ) Tax accounting memorandum account and pole loading balancing account (128 ) 28 Base revenue requirement balancing account 1 (282 ) (628 ) DOE litigation memorandum account (69 ) (69 ) Greenhouse gas auction revenue and low carbon fuel standard revenue (150 ) (81 ) FERC balancing accounts (139 ) (180 ) Catastrophic event memorandum account 95 144 Wildfire expense memorandum account 41 128 Other 8 (133 ) Liability $ (1,097 ) $ (1,250 ) 1 The base revenue requirement balancing account at March 31, 2019 includes recovery of $107 million of premiums related to a 12-month, $300 million wildfire insurance policy purchased in December 2017. See Note 12 for further discussion. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Finance Lease Payments | The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019. (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Finance Leases 1 2019 $ 118 $ 32 $ 1 2020 124 33 1 2021 103 27 1 2022 79 22 2 2023 47 17 2 Thereafter 536 101 9 Total lease payments $ 1,007 $ 232 $ 16 Amount representing interest 3 249 62 6 Lease liabilities $ 758 $ 170 $ 10 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. 3 Lease payments are discounted to their present value using SCE's incremental borrowing rates. |
Summary of Lease Payments | The following table summarizes SCE's lease payments for operating and finance leases as of March 31, 2019. (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Finance Leases 1 2019 $ 118 $ 32 $ 1 2020 124 33 1 2021 103 27 1 2022 79 22 2 2023 47 17 2 Thereafter 536 101 9 Total lease payments $ 1,007 $ 232 $ 16 Amount representing interest 3 249 62 6 Lease liabilities $ 758 $ 170 $ 10 |
Summary of Lease Payments | At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows: (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Capital Leases 1 2019 $ 148 $ 42 $ 5 2020 124 31 6 2021 103 27 6 2022 79 22 6 2023 47 17 5 Thereafter 536 101 66 Total lease payments $ 1,037 $ 240 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 4 $ 36 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. 3 Lease payments are discounted to their present value using SCE's incremental borrowing rates. 4 Includes two contracts with net commitments of $26 million that will commence in 2019. |
Summary of Lease Payments | At December 31, 2018, SCE's future expected minimum lease commitments under non-cancellable leases were as follows: (in millions) PPA Operating Leases 1 Other Operating Leases 2 PPA Capital Leases 1 2019 $ 148 $ 42 $ 5 2020 124 31 6 2021 103 27 6 2022 79 22 6 2023 47 17 5 Thereafter 536 101 66 Total lease payments $ 1,037 $ 240 $ 94 Amount representing executory costs (25 ) Amount representing interest (33 ) Net commitments 4 $ 36 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. 3 Lease payments are discounted to their present value using SCE's incremental borrowing rates. 4 Includes two contracts with net commitments of $26 million that will commence in 2019. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to SCE's leases was as follows: (in millions) March 31, 2019 Operating leases: Operating lease ROU assets $ 928 Current portion of operating lease liabilities 156 Operating lease liabilities 772 Total operating lease liabilities $ 928 Finance leases included in: Utility property, plant and equipment, gross $ 14 Accumulated depreciation (4 ) Utility property, plant and equipment, net 10 Other current liabilities 1 Other long-term liabilities 9 Total finance lease liabilities $ 10 |
Summary of Lease Expense Components | Other information related to leases was as follows: (in millions, except lease term and discount rate) Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases PPA leases $ 30 Other leases 11 ROU assets obtained in exchange for lease obligations: Other operating leases 9 Weighted average remaining lease term (in years): Operating leases PPA leases 12.85 Other leases 12.54 PPA Finance leases 12.14 Weighted average discount rate: Operating leases PPA leases 4.24 % Other leases 3.85 % PPA Finance leases 8.70 % The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense: (in millions) Three months ended March 31, 2019 PPA leases: Operating lease cost $ 30 Variable lease cost 372 Total PPA lease cost 402 Other operating leases cost 11 Total lease cost $ 413 |
Schedule of Undiscounted Cash Flow Expected from Lease Payments | At March 31, 2019, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows: (in millions) 2019 $ 11 2020 15 2021 10 2022 10 2023 9 Thereafter 141 Total $ 196 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Beginning balance $ (50 ) $ (43 ) $ (23 ) $ (19 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 2 2 1 2 Other 2 (10 ) (5 ) (5 ) (5 ) Change (8 ) (3 ) (4 ) (3 ) Ending Balance $ (58 ) $ (46 ) $ (27 ) $ (22 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 Edison International and SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2019 and 2018 related to the adoption of the accounting standards update on the reclassification of stranded tax effects resulting from Tax Reform in 2019 and the measurement of financial instruments in 2018. See Note 1 for further information on the reclassification of stranded tax effects. |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other income and expenses are as follows: Three months ended March 31, (in millions) 2019 2018 SCE other income and (expenses): Equity allowance for funds used during construction $ 17 $ 22 Increase in cash surrender value of life insurance policies and life insurance benefits 9 8 Interest income 9 4 Net periodic benefit income – non-service components 19 26 Civic, political and related activities and donations (13 ) (4 ) Other (3 ) (5 ) Total SCE other income and (expenses) 38 51 Other income and (expenses) of Edison International Parent and Other: Net periodic benefit costs – non-service components (2 ) — Other 2 — Total Edison International other income and (expenses) $ 38 $ 51 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental cash flows information for continuing operations is: Edison International SCE Three months ended March 31, (in millions) 2019 2018 2019 2018 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 200 $ 164 $ 177 $ 149 Tax refunds, net — (93 ) — (18 ) Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 200 $ 197 $ 200 $ 212 Preferred and preference stock 1 1 1 1 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related-Party Transactions | The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS were as follows: March 31, December 31, (in millions) 2019 2018 Long-term insurance receivable due from affiliate $ 1,000 $ 1,000 Prepaid insurance 1 169 13 Current payables due to affiliate 2 62 4 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The amortization expense for prepaid insurance was $31 million and $36 million for the three months ended March 31, 2019 and 2018, respectively. 2 Reflected in "Accounts payable" on SCE's consolidated balance sheets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands | 3 Months Ended |
Mar. 31, 2019mi² | |
Southern California Edison | Electric Utility | |
Segment Reporting Information [Line Items] | |
Supply of electricity, area covered (square mile) | 50 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Cash Equivalents) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | $ 285 | $ 116 |
Book balances reclassified to accounts payable | 38 | 65 |
Southern California Edison | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 266 | 1 |
Book balances reclassified to accounts payable | $ 37 | $ 65 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 328 | $ 144 | ||
Short-term restricted cash | 57 | 8 | ||
Total cash, cash equivalents, and restricted cash | 385 | 152 | $ 106 | $ 1,132 |
Southern California Edison | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 297 | 21 | ||
Short-term restricted cash | 49 | 1 | ||
Total cash, cash equivalents, and restricted cash | $ 346 | $ 22 | $ 15 | $ 515 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Regulatory Proceedings) (Details) - USD ($) $ in Millions | Jun. 12, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
CPUC | Pro forma | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Proposed decision escalate capital additions, year two percent | 2.49% | ||||
CPUC | Subsequent event | Pro forma | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested revenue requirement year one | $ (5,422) | ||||
Impact of proposed decision non-core impairment of utility property, plant and equipment | 257 | ||||
Impact of proposed decision non-core impairment of utility property, plant and equipment, net of tax | 185 | ||||
Impact of proposed decision non-core impairment of utility core earnings, net of tax | $ 130 | ||||
Proposed decision escalate capital additions, year one, percent | 2.49% | ||||
Requested revenue requirement year two | $ (5,823) | ||||
Southern California Edison | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested revenue requirement year one | $ 5,534 | ||||
Increase (decrease) in revenue requirement | $ (106) | ||||
Current effective retail base transmission revenue requirement | $ 1,000 | ||||
Southern California Edison | Subsequent event | Forecast | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Increase (decrease) in revenue requirement | $ 290 | ||||
Southern California Edison | CPUC | Subsequent event | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested revenue requirement year one | 5,102 | ||||
Increase (decrease) in revenue requirement | $ (432) | ||||
Southern California Edison | FERC | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Increase (decrease) in revenue requirement | $ (131) | ||||
Decrease in revenue requirement percent | 11.00% | ||||
FERC Base ROE | 10.30% | ||||
Southern California Edison | FERC | Subsequent event | Forecast | |||||
Public Utilities, General Disclosures [Line Items] | |||||
FERC Base ROE | 17.12% | ||||
Conventional ROE | 11.12% | ||||
Additional ROE | 6.00% | ||||
Effective term | 60 days | ||||
Suspension term | 5 months | ||||
Southern California Edison | CAISO | Subsequent event | Forecast | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Additional ROE | 0.50% | ||||
Southern California Edison | FERC and CAISO | Subsequent event | Forecast | |||||
Public Utilities, General Disclosures [Line Items] | |||||
FERC Base ROE | 18.40% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings per share – continuing operations: | ||
Income from continuing operations attributable to common shareholders | $ 278 | $ 218 |
Participating securities dividends | 0 | 0 |
Income from continuing operations available to common shareholders | $ 278 | $ 218 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 |
Basic earnings per share - continuing operations (in dollars per share) | $ 0.85 | $ 0.67 |
Diluted earnings per share – continuing operations: | ||
Income from continuing operations attributable to common shareholders | $ 278 | $ 218 |
Participating securities dividends | 0 | 0 |
Income from continuing operations available to common shareholders | 278 | 218 |
Income impact of assumed conversions | 0 | 0 |
Income from continuing operations available to common shareholders and assumed conversions | $ 278 | $ 218 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 |
Incremental shares from assumed conversions (in shares) | 1,000,000 | 1,000,000 |
Adjusted weighted average shares - diluted (in shares) | 327,000,000 | 327,000,000 |
Diluted earnings per share - continuing operations (in dollars per share) | $ 0.85 | $ 0.67 |
Stock option awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares) | 7,719,306 | 6,222,294 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
ROU assets | $ 933 | $ 0 | ||
Southern California Edison | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
ROU assets | 928 | $ 0 | ||
ROU lease liability | $ 928 | |||
ASU 2016-02 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
ROU assets | $ 956 | |||
ROU lease liability | $ 956 | |||
ASU 2016-02 | Southern California Edison | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
ROU assets | 951 | |||
ROU lease liability | $ 951 | |||
ASU 2018-02 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Reclassification of stranded tax effects | 10 | |||
ASU 2018-02 | Southern California Edison | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Reclassification of stranded tax effects | $ 5 |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 12,652 | $ 13,866 | ||
Net income | 308 | 245 | ||
Net income | 308 | 242 | ||
Other comprehensive income | 2 | 2 | ||
Cumulative effect of accounting changes | $ 0 | $ 5 | ||
Common stock dividends declared | (200) | (197) | ||
Dividends to noncontrolling interests | (30) | (30) | ||
Stock-based compensation | (18) | (8) | ||
Noncash stock-based compensation | 5 | 5 | ||
Other | 1 | |||
Balance, at the end of the period | $ 12,719 | $ 13,889 | ||
Dividends declared per common share (in dollars per share) | $ 0.6125 | $ 0.6050 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 2,545 | $ 2,526 | ||
Noncash stock-based compensation | 5 | 5 | ||
Balance, at the end of the period | 2,550 | 2,531 | ||
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (50) | (43) | ||
Other comprehensive income | 2 | 2 | ||
Cumulative effect of accounting changes | (10) | (5) | ||
Balance, at the end of the period | (58) | (46) | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 7,964 | 9,188 | ||
Net income | 278 | 218 | ||
Cumulative effect of accounting changes | 10 | 10 | ||
Common stock dividends declared | (200) | (197) | ||
Stock-based compensation | (18) | (8) | ||
Balance, at the end of the period | 8,034 | 9,211 | ||
Subtotal | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 10,459 | 11,671 | ||
Net income | 278 | 218 | ||
Other comprehensive income | 2 | 2 | ||
Cumulative effect of accounting changes | 5 | |||
Common stock dividends declared | (200) | (197) | ||
Stock-based compensation | (18) | (8) | ||
Noncash stock-based compensation | 5 | 5 | ||
Balance, at the end of the period | 10,526 | 11,696 | ||
Noncontrolling Interests, Other | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2 | |||
Net income | (3) | |||
Other | 1 | |||
Balance, at the end of the period | 0 | |||
Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,193 | 2,193 | ||
Net income | 30 | 30 | ||
Dividends to noncontrolling interests | (30) | (30) | ||
Balance, at the end of the period | $ 2,193 | $ 2,193 | ||
Minimum | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Preferred stock dividends (in dollars per share) | $ 0.255 | $ 0.255 | ||
Preference stock dividends (in dollars per share) | 15.625 | 15.625 | ||
Maximum | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Preferred stock dividends (in dollars per share) | 0.299 | 0.299 | ||
Preference stock dividends (in dollars per share) | $ 35.936 | $ 35.936 | ||
Southern California Edison | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 13,785 | $ 14,672 | ||
Net income | 323 | 316 | ||
Other comprehensive income | 1 | 2 | ||
Cumulative effect of accounting changes | 0 | 0 | ||
Common stock dividends declared | (200) | (212) | ||
Dividends declared on preferred and preference stock | (30) | (30) | ||
Stock-based compensation | (12) | (2) | ||
Noncash stock-based compensation | 3 | 2 | ||
Balance, at the end of the period | $ 13,870 | $ 14,748 | ||
Dividends declared per common share (in dollars per share) | $ 0.4599 | $ 0.4875 | ||
Southern California Edison | Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 2,245 | $ 2,245 | ||
Balance, at the end of the period | 2,245 | 2,245 | ||
Southern California Edison | Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,168 | 2,168 | ||
Balance, at the end of the period | 2,168 | 2,168 | ||
Southern California Edison | Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 680 | 671 | ||
Noncash stock-based compensation | 3 | 2 | ||
Balance, at the end of the period | 683 | 673 | ||
Southern California Edison | Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (23) | (19) | ||
Other comprehensive income | 1 | 2 | ||
Cumulative effect of accounting changes | (5) | (5) | ||
Balance, at the end of the period | (27) | (22) | ||
Southern California Edison | Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 8,715 | 9,607 | ||
Net income | 323 | 316 | ||
Cumulative effect of accounting changes | $ 5 | $ 5 | ||
Common stock dividends declared | (200) | (212) | ||
Dividends declared on preferred and preference stock | (30) | (30) | ||
Stock-based compensation | (12) | (2) | ||
Balance, at the end of the period | $ 8,801 | $ 9,684 | ||
Southern California Edison | Minimum | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Preferred stock dividends (in dollars per share) | $ 0.255 | $ 0.255 | ||
Preference stock dividends (in dollars per share) | 15.625 | 15.625 | ||
Southern California Edison | Maximum | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Preferred stock dividends (in dollars per share) | 0.299 | 0.299 | ||
Preference stock dividends (in dollars per share) | $ 35.936 | $ 35.936 |
Variable Interest Entities (Tex
Variable Interest Entities (Textual) (Details) - Southern California Edison - VIE | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2019USD ($)MW | Mar. 31, 2018USD ($)MW | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | Dec. 31, 2018USD ($) | |
SCE Power Purchase Contracts | ||||||||
Variable Interest Entity | ||||||||
Power generating capacity (in megawatts) | MW | 4,722 | 3,454 | ||||||
Payments to unconsolidated VIEs for power purchase contracts | $ 153,000,000 | $ 143,000,000 | ||||||
Trust II | ||||||||
Variable Interest Entity | ||||||||
Common stock | 10,000 | $ 10,000 | $ 10,000 | |||||
Trust II | Trust Securities | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.10% | |||||||
Liquidation preference | 400,000,000 | $ 400,000,000 | 400,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Common stock | $ 10,000 | |||||||
Redemption of trust securities | 10,000 | |||||||
Trust II | Series G Preferred Stock | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.10% | |||||||
Liquidation preference | 400,000,000 | $ 400,000,000 | 400,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
Trust III | ||||||||
Variable Interest Entity | ||||||||
Common stock | 10,000 | $ 10,000 | 10,000 | |||||
Trust III | Trust Securities | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.75% | |||||||
Liquidation preference | 275,000,000 | $ 275,000,000 | 275,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Trust III | Series H Preferred Stock | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.75% | |||||||
Liquidation preference | 275,000,000 | $ 275,000,000 | 275,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
Trust IV | ||||||||
Variable Interest Entity | ||||||||
Common stock | 10,000 | $ 10,000 | 10,000 | |||||
Trust IV | Trust Securities | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.375% | |||||||
Liquidation preference | 325,000,000 | $ 325,000,000 | 325,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Trust IV | Series J Preferred Stock | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.375% | |||||||
Liquidation preference | 325,000,000 | $ 325,000,000 | 325,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
Trust V | ||||||||
Variable Interest Entity | ||||||||
Common stock | 10,000 | $ 10,000 | 10,000 | |||||
Trust V | Trust Securities | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.45% | |||||||
Liquidation preference | 300,000,000 | $ 300,000,000 | 300,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Trust V | Series K Preferred Stock | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.45% | |||||||
Liquidation preference | 300,000,000 | $ 300,000,000 | 300,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
Trust VI | ||||||||
Variable Interest Entity | ||||||||
Common stock | 10,000 | $ 10,000 | 10,000 | |||||
Trust VI | Trust Securities | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.00% | |||||||
Liquidation preference | 475,000,000 | $ 475,000,000 | 475,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Trust VI | Series L Preferred Stock | ||||||||
Variable Interest Entity | ||||||||
Security dividend rate | 5.00% | |||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 | |||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Trusts' Income Statement) (Details) - VIE - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Trust II | ||
Variable Interest Entity | ||
Dividend income | $ 5 | $ 5 |
Dividend distributions | 5 | 5 |
Trust III | ||
Variable Interest Entity | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust IV | ||
Variable Interest Entity | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust V | ||
Variable Interest Entity | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust VI | ||
Variable Interest Entity | ||
Dividend income | 6 | 6 |
Dividend distributions | $ 6 | $ 6 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,291 | $ 4,120 |
Southern California Edison | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,291 | $ 4,120 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States | 71.00% | 71.00% |
Collateralized mortgage obligations and other asset backed securities | $ 57 | $ 67 |
Payables, net, related to investments | 119 | 143 |
Southern California Edison | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | (1) | 0 |
Derivative contracts, net | 111 | 173 |
Money market funds and other | 296 | 30 |
Nuclear decommissioning trusts | 4,410 | 4,263 |
Total assets | 4,817 | 4,466 |
Liabilities at fair value | ||
Netting and Collateral | (1) | (7) |
Derivative contracts | 1 | 6 |
Total liabilities | 1 | 6 |
Total assets, netting and collateral | 0 | 7 |
Net assets | 4,816 | 4,460 |
Southern California Edison | Fair Value, Measurements, Recurring | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,550 | 1,382 |
Southern California Edison | Fair Value, Measurements, Recurring | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 2,613 | 2,666 |
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 247 | 215 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | 0 |
Money market funds and other | 275 | 9 |
Nuclear decommissioning trusts | 2,651 | 2,503 |
Total assets | 2,926 | 2,512 |
Liabilities at fair value | ||
Derivative contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Net assets | 2,926 | 2,512 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,550 | 1,382 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 889 | 1,001 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 212 | 120 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 17 | 32 |
Money market funds and other | 21 | 21 |
Nuclear decommissioning trusts | 1,759 | 1,760 |
Total assets | 1,797 | 1,813 |
Liabilities at fair value | ||
Derivative contracts | 2 | 13 |
Total liabilities | 2 | 13 |
Net assets | 1,795 | 1,800 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,724 | 1,665 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 35 | 95 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 95 | 141 |
Money market funds and other | 0 | 0 |
Nuclear decommissioning trusts | 0 | 0 |
Total assets | 95 | 141 |
Liabilities at fair value | ||
Derivative contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Net assets | 95 | 141 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | 0 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 0 | $ 0 |
Fair Value Measurements (Textua
Fair Value Measurements (Textual) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 285 | $ 116 |
Edison International Parent and Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 19 | $ 115 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures Level 3 [Roll Forward] | ||
Fair value of net assets at beginning of period | $ 141 | $ 101 |
Total realized/unrealized losses | (46) | (20) |
Fair value of net assets (liabilities) at end of period | 95 | 81 |
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period | $ (2) | $ 5 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Southern California Edison - Level 3 - Congestion revenue rights - Auction prices $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)$ / MWh | Dec. 31, 2018USD ($)$ / MWh | |
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 95 | $ 141 |
Fair Value, Liabilities | $ | $ 0 | $ 0 |
CAISO CRR auction prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | (7.02) | (7.41) |
CAISO CRR auction prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 41.52 | 41.52 |
CAISO CRR auction prices | Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | (1.43) | (1.62) |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | $ 15,762 | $ 14,711 |
Fair Value | 16,068 | 14,844 |
Southern California Edison | ||
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | 14,021 | 12,971 |
Fair Value | $ 14,412 | $ 13,180 |
Debt and Credit Agreements (Tex
Debt and Credit Agreements (Textual) (Details) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($)extension | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 932,000,000 | $ 720,000,000 | ||
Multi-year revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Commitment | 1,500,000,000 | |||
Outstanding commercial paper | $ 153,000,000 | |||
Weighted-average interest rate | 3.03% | |||
Short-term debt | 0 | |||
Southern California Edison | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 779,000,000 | 720,000,000 | ||
Southern California Edison | First and refunding mortgage bonds due 2029 | First and refunding mortgage bonds | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 500,000,000 | |||
Stated interest rate | 4.20% | |||
Southern California Edison | First and refunding mortgage bonds due 2049 | First and refunding mortgage bonds | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 600,000,000 | |||
Stated interest rate | 4.875% | |||
Southern California Edison | Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 750,000,000 | |||
Southern California Edison | Term Loan Agreement | London Interbank Offered Rate | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis points | 0.70% | |||
Southern California Edison | Multi-year revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Commitment | $ 3,000,000,000 | |||
Number of extension options | extension | 2 | |||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Outstanding commercial paper | $ 720,000,000 | |||
Weighted average interest rate | 3.23% | |||
Southern California Edison | Multi-year revolving credit facility | Letters of credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 209,000,000 | |||
Letters of credit expiration period | 12 months | |||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Outstanding commercial paper | $ 29,000,000 | |||
Weighted average interest rate | 3.15% | |||
Subsequent event | Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 1,000,000,000 | |||
Variable rate basis points | 0.90% | |||
Southern California Edison | Subsequent event | Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 750,000,000 |
Derivative Instruments (Textual
Derivative Instruments (Textual) (Details) - Southern California Edison - Electric Utility - Economic Hedges - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Net fair value of all derivative liabilities with credit-risk-related contingent features | $ 1,000,000 | $ 4,000,000 |
Posted collateral | 0 | $ 17,000,000 |
Potential amount of collateral to be posted if contingencies triggered | $ 1,000,000 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - Southern California Edison Company - Electric Utility - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Economic Hedges | ||
Net Assets | ||
Cash collateral not offset against derivative liabilities | $ 11 | |
Commodity derivative contracts | ||
Derivative Assets | ||
Gross amounts recognized | 112 | $ 173 |
Gross amounts offset in the consolidated balance sheets | (1) | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 111 | 173 |
Derivative Liabilities | ||
Gross amounts recognized | 2 | 13 |
Gross amounts offset in the consolidated balance sheets | (1) | 0 |
Cash collateral posted | 0 | (7) |
Net amounts presented in the consolidated balance sheets | 1 | 6 |
Net Assets | ||
Gross amounts recognized | 110 | 160 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 7 |
Net amounts presented in the consolidated balance sheets | 110 | 167 |
Commodity derivative contracts | Derivative Assets, Short-Term | ||
Derivative Assets | ||
Gross amounts recognized | 102 | 171 |
Gross amounts offset in the consolidated balance sheets | (1) | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 101 | 171 |
Commodity derivative contracts | Derivative Assets, Long-Term | ||
Derivative Assets | ||
Gross amounts recognized | 10 | 2 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 10 | 2 |
Commodity derivative contracts | Derivative Liability, Short-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 2 | 13 |
Gross amounts offset in the consolidated balance sheets | (1) | 0 |
Cash collateral posted | 0 | (7) |
Net amounts presented in the consolidated balance sheets | 1 | 6 |
Commodity derivative contracts | Derivative Liability, Long-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 0 | 0 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | $ 0 | $ 0 |
Derivative Instruments (Summari
Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Realized gains (losses) | $ 32 | $ (12) |
Unrealized losses | $ (50) | $ (14) |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Economic Hedges | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019BcfeGWh | Dec. 31, 2018BcfeGWh | |
Electricity options, swaps and forwards (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | 2,515 | 2,786 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | Bcfe | 4 | 20 |
Congestion revenue rights (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | 39,401 | 54,453 |
Revenue (Summary of Revenue) (D
Revenue (Summary of Revenue) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 2,824 | $ 2,564 | ||
Southern California Edison | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,459 | 2,728 | ||
Alternative revenue programs and other operating revenue4 | 357 | (174) | ||
Total operating revenue | 2,816 | 2,554 | ||
Receivables related to contracts from customers | 1,000 | $ 1,100 | ||
Accrued unbilled revenues | 459 | $ 482 | ||
Franchise fees billed to customers | 28 | 28 | ||
Southern California Edison | Earning Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,502 | 1,536 | ||
Alternative revenue programs and other operating revenue4 | 48 | (23) | ||
Total operating revenue | 1,550 | 1,513 | ||
Southern California Edison | Cost- Recovery Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 957 | 1,192 | ||
Alternative revenue programs and other operating revenue4 | 309 | (151) | ||
Total operating revenue | $ 1,266 | $ 1,041 | ||
Forecast | Subsequent event | 2018 base rate revenue requirement | CPUC | Southern California Edison | ||||
Disaggregation of Revenue [Line Items] | ||||
Proposed decision | $ 5,102 | |||
Forecast | Subsequent event | 2019 base rate revenue requirement | CPUC | Southern California Edison | ||||
Disaggregation of Revenue [Line Items] | ||||
Proposed decision | $ 5,422 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosures [Line Items] | ||
Income from continuing operations before income taxes | $ 196 | $ 211 |
Provision for income tax at federal statutory rate of 21% | 41 | 44 |
Increase in income tax from: | ||
State tax, net of federal benefit | (7) | (5) |
Property-related | (69) | (69) |
Shared-based compensation | (2) | 0 |
Deferred tax re-measurement | (69) | 0 |
Other | (6) | (1) |
Total income tax benefit from continuing operations | $ (112) | $ (31) |
Effective tax rate | (57.10%) | (14.70%) |
State | ||
Increase in income tax from: | ||
Shared-based compensation | $ 1 | |
Southern California Edison | ||
Income Tax Disclosures [Line Items] | ||
Income from continuing operations before income taxes | 218 | $ 310 |
Provision for income tax at federal statutory rate of 21% | 46 | 65 |
Increase in income tax from: | ||
State tax, net of federal benefit | (5) | 1 |
Property-related | (69) | (69) |
Shared-based compensation | (2) | 0 |
Deferred tax re-measurement | (69) | 0 |
Other | (6) | (3) |
Total income tax benefit from continuing operations | $ (105) | $ (6) |
Effective tax rate | (48.20%) | (1.90%) |
Southern California Edison | State | ||
Increase in income tax from: | ||
Shared-based compensation | $ 1 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) $ in Millions | Dec. 31, 2018USD ($) |
California Franchise Tax Board | Tax years 1994 to 2006 | |
Income Tax Examination [Line Items] | |
IRS refund expected | $ 65 |
Compensation and Benefit Plan_2
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 32 | $ 32 |
Non-service cost | ||
Interest cost | 39 | 35 |
Expected return on plan assets | (52) | (57) |
Amortization of prior service cost | 0 | 1 |
Amortization of net loss | 2 | 2 |
Regulatory adjustment (deferred) | (4) | 2 |
Total non-service benefit2 | (15) | (17) |
Total expense recognized | 17 | 15 |
Net loss reclassified | 2 | 2 |
PBOP Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 8 | 9 |
Non-service cost | ||
Interest cost | 21 | 21 |
Expected return on plan assets | (28) | (30) |
Amortization of net loss | (1) | 0 |
Regulatory adjustment (deferred) | 6 | 0 |
Total non-service benefit2 | (2) | (9) |
Total expense | 6 | 0 |
Southern California Edison | ||
Non-service cost | ||
Total non-service benefit2 | (19) | (26) |
Southern California Edison | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 31 | 31 |
Non-service cost | ||
Interest cost | 35 | 32 |
Expected return on plan assets | (49) | (53) |
Amortization of prior service cost | 0 | 1 |
Amortization of net loss | 1 | 1 |
Regulatory adjustment (deferred) | (4) | 2 |
Total non-service benefit2 | (17) | (17) |
Total expense recognized | 14 | 14 |
Net loss reclassified | 1 | 1 |
Southern California Edison | PBOP Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 8 | 9 |
Non-service cost | ||
Interest cost | 21 | 21 |
Expected return on plan assets | (28) | (30) |
Amortization of net loss | (1) | 0 |
Regulatory adjustment (deferred) | 6 | 0 |
Total non-service benefit2 | (2) | (9) |
Total expense | $ 6 | $ 0 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | $ 4,291 | $ 4,120 |
Southern California Edison | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 2,451 | 2,501 |
Fair Value | 4,291 | 4,120 |
Southern California Edison | Municipal bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 662 | 665 |
Southern California Edison | U.S. government and agency securities | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 1,116 | 1,193 |
Southern California Edison | Corporate bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 549 | 573 |
Southern California Edison | Short-term investments and receivables/payables1 | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 124 | 70 |
Southern California Edison | Fair Value, Measurements, Recurring | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 4,410 | 4,263 |
Southern California Edison | Fair Value, Measurements, Recurring | Stocks | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 1,550 | 1,381 |
Southern California Edison | Fair Value, Measurements, Recurring | Municipal bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 785 | 767 |
Southern California Edison | Fair Value, Measurements, Recurring | U.S. government and agency securities | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 1,224 | 1,288 |
Southern California Edison | Fair Value, Measurements, Recurring | Corporate bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 603 | 611 |
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments and receivables/payables1 | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 129 | 73 |
Repurchase agreements payable | $ 35 | $ 71 |
Investments (Nuclear Decommissi
Investments (Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investment Holdings [Line Items] | ||
Unrealized holding gains, net of losses | $ 1,600 | $ 1,400 |
Other-than-temporary impairments | 162 | 170 |
Deferred income taxes related to unrealized gains | 366 | 323 |
Nuclear decommissioning trusts | $ 3,900 | $ 3,800 |
Investments (Gains and (Losses)
Investments (Gains and (Losses) for Equity Securities) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investment Holdings [Line Items] | ||
Gross realized gains | $ 23 | $ 61 |
Gross realized loss | 0 | (8) |
Net unrealized gains (losses) for equity securities | $ 168 | $ (63) |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 1,286 | $ 1,133 |
Long-term regulatory assets | 5,268 | 5,380 |
Southern California Edison | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1,286 | 1,133 |
Long-term regulatory assets | 5,268 | 5,380 |
Total regulatory assets | 6,554 | 6,513 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 935 | 814 |
Long-term regulatory assets | 232 | 360 |
Southern California Edison | Power contracts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 333 | 305 |
Long-term regulatory assets | 597 | 700 |
Southern California Edison | Other | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 18 | 14 |
Long-term regulatory assets | 80 | 55 |
Southern California Edison | Deferred income taxes, net of liabilities | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 3,683 | 3,589 |
Southern California Edison | Pensions and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 274 | 271 |
Southern California Edison | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 117 | 118 |
Southern California Edison | Unamortized loss on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 150 | 153 |
Southern California Edison | Environmental remediation | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | $ 135 | $ 134 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | $ 1,295 | $ 1,532 | |
Long-term regulatory liabilities | 8,588 | 8,329 | |
Deferred tax re-measurement | 69 | $ 0 | |
Southern California Edison | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 1,295 | 1,532 | |
Long-term regulatory liabilities | 8,588 | 8,329 | |
Total regulatory liabilities | 9,883 | 9,861 | |
Deferred tax re-measurement | 69 | $ 0 | |
Southern California Edison | Regulatory balancing accounts | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 836 | 1,080 | |
Long-term regulatory liabilities | 1,428 | 1,344 | |
Southern California Edison | Energy derivatives | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 100 | 158 | |
Southern California Edison | 2018 GRC | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 341 | 274 | |
Southern California Edison | Other | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 18 | 20 | |
Long-term regulatory liabilities | 156 | 125 | |
Southern California Edison | Cost of removal | |||
Regulatory Liabilities [Line Items] | |||
Long-term regulatory liabilities | 2,808 | 2,769 | |
Southern California Edison | Re-measurement of deferred taxes | |||
Regulatory Liabilities [Line Items] | |||
Long-term regulatory liabilities | 2,650 | 2,776 | |
Southern California Edison | Recoveries in excess of ARO liabilities | |||
Regulatory Liabilities [Line Items] | |||
Long-term regulatory liabilities | 1,357 | 1,130 | |
Southern California Edison | Other postretirement benefits | |||
Regulatory Liabilities [Line Items] | |||
Long-term regulatory liabilities | $ 189 | $ 185 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Schedule of Net Regulatory Balancing Accounts) (Details) - Southern California Edison - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Nov. 30, 2018 | Mar. 31, 2019 | |
Regulatory Assets and Liabilities | |||
Asset (liability) | $ 107 | ||
Wildfire-specific insurance coverage | $ 1,000 | $ 300 | |
Regulatory balancing accounts | Energy resource recovery account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | 815 | 927 | |
Regulatory balancing accounts | New system generation balancing account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (74) | (96) | |
Refunds of excess revenue | Net regulatory balancing accounts | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (1,250) | (1,097) | |
Refunds of excess revenue | Public purpose programs and energy efficiency programs | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (1,200) | (1,304) | |
Refunds of excess revenue | Tax accounting memorandum account and pole loading balancing account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | 28 | (128) | |
Refunds of excess revenue | Base revenue requirement balancing account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (628) | (282) | |
Refunds of excess revenue | DOE litigation memorandum account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (69) | (69) | |
Refunds of excess revenue | Greenhouse gas auction revenue and low carbon fuel standard revenue | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (81) | (150) | |
Refunds of excess revenue | FERC balancing accounts | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | (180) | (139) | |
Refunds of excess revenue | Catastrophic event memorandum account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | 144 | 95 | |
Refunds of excess revenue | Wildfire expense memorandum account | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | 128 | 41 | |
Refunds of excess revenue | Other | |||
Regulatory Assets and Liabilities | |||
Asset (liability) | $ (133) | $ 8 |
Commitments and Contingencies (
Commitments and Contingencies (Southern California Wildfires and Mudslides) (Details) a in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($)astructurefatality | Jan. 31, 2019claims | Sep. 30, 2018claims | Jan. 01, 2018structurefatality | Dec. 31, 2017astructurefatality | |
Loss Contingencies [Line Items] | |||||||
Wildfire-related claims | $ 4,669,000,000 | $ 4,669,000,000 | |||||
2017/2018 Wildfire/Mudslide Event | |||||||
Loss Contingencies [Line Items] | |||||||
Derivative lawsuits | claims | 2 | ||||||
San Onofre OII | |||||||
Loss Contingencies [Line Items] | |||||||
Derivative lawsuits | claims | 2 | ||||||
Southern California Edison | |||||||
Loss Contingencies [Line Items] | |||||||
High fire risk service area, percent | 35.00% | ||||||
Wildfire-related claims | $ 4,669,000,000 | 4,669,000,000 | |||||
Wildfire-specific insurance coverage | 1,000,000,000 | $ 300,000,000 | |||||
Self-insured retention | 10,000,000 | ||||||
Other general liability insurance coverage | 450,000,000 | ||||||
Southern California Edison | Thomas and Koenigstein Fires | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 280 | ||||||
Structures destroyed | structure | 1,343 | ||||||
Fatalities | fatality | 2 | ||||||
Southern California Edison | Woolsey Fire | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 100 | ||||||
Structures destroyed | structure | 1,643 | ||||||
Fatalities | fatality | 3 | ||||||
Structures damaged | structure | 364 | ||||||
Wildfire-specific insurance coverage | 1,000,000,000 | ||||||
Self-insured retention | 10,000,000 | ||||||
Southern California Edison | Montecito Mudslides | |||||||
Loss Contingencies [Line Items] | |||||||
Structures destroyed | structure | 135 | ||||||
Fatalities | fatality | 21 | ||||||
Structures damaged | structure | 324 | ||||||
Additional presumed fatalities | fatality | 2 | ||||||
Southern California Edison | 2017/2018 Wildfire/Mudslide Event | |||||||
Loss Contingencies [Line Items] | |||||||
Wildfire-related claims | 4,700,000,000 | 4,700,000,000 | |||||
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 | $ 1,800,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Current Wildfire Insurance Coverage) (Details) - USD ($) | 1 Months Ended | 4 Months Ended | 11 Months Ended | 12 Months Ended | 13 Months Ended | ||||
Apr. 30, 2019 | May 31, 2019 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Jun. 30, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | |
Loss Contingencies [Line Items] | |||||||||
Regulatory assets | $ 5,380,000,000 | $ 5,268,000,000 | |||||||
Southern California Edison | |||||||||
Loss Contingencies [Line Items] | |||||||||
Wildfire-specific insurance coverage | 1,000,000,000 | $ 300,000,000 | |||||||
Self-insured retention | 10,000,000 | ||||||||
Net Regulatory Assets | 107,000,000 | ||||||||
Regulatory assets | $ 5,380,000,000 | 5,268,000,000 | |||||||
Southern California Edison | Wildfire insurance costs | |||||||||
Loss Contingencies [Line Items] | |||||||||
Regulatory assets | $ 148,000,000 | ||||||||
Southern California Edison | Forecast | |||||||||
Loss Contingencies [Line Items] | |||||||||
Wildfire-specific insurance coverage | $ 735,000,000 | $ 1,000,000,000 | $ 1,200,000,000 | ||||||
Self-insured retention | 35,000,000 | 10,000,000 | 50,000,000 | ||||||
Co-Insurance per wildfire occurrence | 15,000,000 | $ 15,000,000 | 115,000,000 | ||||||
Wildfire-specific insurance coverage, net | $ 685,000,000 | 1,000,000,000 | |||||||
Expected wildfire-specific insurance coverage | $ 10,000,000 | ||||||||
Wildfire insurance expense | $ 399,000,000 | ||||||||
Wildfire liability insurance recovery | Regulatory balancing accounts | Southern California Edison | |||||||||
Loss Contingencies [Line Items] | |||||||||
Net Regulatory Assets | $ 107,000,000 | ||||||||
FERC | Subsequent event | Southern California Edison | Forecast | |||||||||
Loss Contingencies [Line Items] | |||||||||
Additional ROE | 6.00% |
Commitments and Contingencies_3
Commitments and Contingencies (Environmental Remediation) (Details) - Southern California Edison $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)site | Mar. 31, 2018USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation | $ 140 | |
Regulatory assets related to environmental remediation | 135 | |
Portion of recorded liability recoverable from incentive mechanism | $ 43 | |
Percentage of environmental remediation costs recoverable through an incentive mechanism (as a percent) | 90.00% | |
Liability incurred at majority of the remaining sites through customer rates | $ 92 | |
Environmental remediation costs to be recovered (as a percent) | 100.00% | |
Amount that cleanup costs could exceed recorded liability for identified material sites | $ 138 | |
Amount that cleanup costs could exceed recorded liability for immaterial sites | $ 7 | |
Clean up (period) | 30 years | |
Remediation cost estimates (period) | 5 years | |
Expected remediation costs for each of the next four years, low end of range | $ 7 | |
Expected remediation costs for each of the next four years, high end of range | 24 | |
Environmental remediation costs | $ 2 | $ 4 |
Material sites | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Identified material sites for environmental remediation (in number of sites) | site | 21 | |
Minimum costs to be identified site | $ 1 | |
Minimum liability for environmental remediation | 136 | |
Material sites | San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation | $ 89 | |
Immaterial sites | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Immaterial sites for environmental remediation (in number of sites) | site | 15 | |
Immaterial sites | Minimum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation | $ 4 |
Commitments and Contingencies_4
Commitments and Contingencies (Nuclear Insurance) (Details) - USD ($) | Jan. 05, 2018 | Mar. 31, 2019 |
Southern California Edison | Palo Verde | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Maximum per incident | $ 65,000,000 | |
Maximum per incident, annually | 10,000,000 | |
Maximum per incident, prior events | 255,000,000 | |
Maximum per incident, prior events, annually | $ 38,000,000 | |
Nuclear Insurance | San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Federal limit on public liability claims from nuclear incident, approximate | $ 560,000,000 | |
Nuclear Insurance | Palo Verde | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss Limit, Public Offsite, Bodily Injury and Property Damage from Nuclear Incident, Federal Claim Limit | 14,100,000,000 | |
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss limit, property damage insurance, federal minimum requirement | 50,000,000 | |
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | Palo Verde | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss limit, property damage insurance, federal minimum requirement | 1,060,000,000 | |
Nuclear Insurance | Southern California Edison | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Limit on assessment of retrospective premium adjustments, per year, approximate | $ 52,000,000 |
Commitments and Contingencies_5
Commitments and Contingencies (Spent Nuclear Fuel) (Details) - USD ($) $ in Millions | 1 Months Ended | ||||||
Aug. 31, 2018 | Apr. 30, 2016 | Jun. 30, 2010 | May 31, 2018 | Oct. 31, 2017 | Feb. 28, 2017 | Sep. 30, 2016 | |
Schedule Of Commitments And Contingencies [Line Items] | |||||||
DOE determination of claim reimbursement | $ 56 | ||||||
SCE and other owners of San Onofre and Palo Verde | |||||||
Schedule Of Commitments And Contingencies [Line Items] | |||||||
Damages sought | $ 142 | ||||||
Damage award | $ 162 | ||||||
DOE determination of claim reimbursement | $ 45 | $ 43 | |||||
Southern California Edison | |||||||
Schedule Of Commitments And Contingencies [Line Items] | |||||||
Damages sought | $ 112 | ||||||
Damage award | 124 | ||||||
Legal and other costs | $ 2 | ||||||
Damage award, customers | $ 105.6 | ||||||
Damage award, shareholders | 16.6 | ||||||
DOE determination of claim reimbursement | 35 | $ 58 | $ 34 | ||||
Disallowed claim amount | $ 13 | ||||||
Southern California Edison | Regulatory balancing accounts | |||||||
Schedule Of Commitments And Contingencies [Line Items] | |||||||
Damage award, customers | $ 71.6 |
Leases (Textual) (Details)
Leases (Textual) (Details) - Southern California Edison $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease income | $ 5 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 15 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 65 years |
PPA leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
PPA leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Offices leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Offices leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 72 years |
Other operating leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Other operating leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 12 years |
Leases (Summary of Lease Paymen
Leases (Summary of Lease Payments) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)lease | Mar. 31, 2019USD ($) | |
Capital Leases | ||
2019 | $ 5 | |
2020 | 6 | |
2021 | 6 | |
2022 | 6 | |
2023 | 5 | |
Thereafter | 66 | |
Total lease payments | 94 | |
Amount representing executory costs | (25) | |
Amount representing interest | (33) | |
Net commitments | $ 36 | |
Number of contracts | lease | 2 | |
Contract commitments | $ 26 | |
PPA Operating Leases | ||
Operating Leases | ||
2019 | 148 | |
2020 | 124 | |
2021 | 103 | |
2022 | 79 | |
2023 | 47 | |
Thereafter | 536 | |
Total lease payments | 1,037 | |
Other Operating Leases | ||
Operating Leases | ||
2019 | 42 | |
2020 | 31 | |
2021 | 27 | |
2022 | 22 | |
2023 | 17 | |
Thereafter | 101 | |
Total lease payments | $ 240 | |
Southern California Edison | ||
Operating Leases | ||
Lease liabilities | $ 928 | |
Finance Leases | ||
2019 | 1 | |
2020 | 1 | |
2021 | 1 | |
2022 | 2 | |
2023 | 2 | |
Thereafter | 9 | |
Total lease payments | 16 | |
Amount representing interest | 6 | |
Lease liabilities | 10 | |
Southern California Edison | PPA Operating Leases | ||
Operating Leases | ||
2019 | 118 | |
2020 | 124 | |
2021 | 103 | |
2022 | 79 | |
2023 | 47 | |
Thereafter | 536 | |
Total lease payments | 1,007 | |
Amount representing interest3 | 249 | |
Lease liabilities | 758 | |
Southern California Edison | Other Operating Leases | ||
Operating Leases | ||
2019 | 32 | |
2020 | 33 | |
2021 | 27 | |
2022 | 22 | |
2023 | 17 | |
Thereafter | 101 | |
Total lease payments | 232 | |
Amount representing interest3 | 62 | |
Lease liabilities | $ 170 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets | $ 933 | $ 0 |
Current portion of operating lease liabilities | 157 | 0 |
Operating lease liabilities | 776 | 0 |
Southern California Edison | ||
Operating leases: | ||
Operating lease right-of-use assets | 928 | 0 |
Current portion of operating lease liabilities | 156 | 0 |
Operating lease liabilities | 772 | $ 0 |
Total operating lease liabilities | 928 | |
Finance leases included in: | ||
Utility property, plant and equipment, gross | 14 | |
Accumulated depreciation | (4) | |
Utility property, plant and equipment, net | 10 | |
Other current liabilities | 1 | |
Other long-term liabilities | 9 | |
Total finance lease liabilities | $ 10 |
Leases (Summary of Lease Expens
Leases (Summary of Lease Expense Components) (Details) - Southern California Edison $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
PPA Operating Leases | |
Lessee, Lease, Description [Line Items] | |
Lease cost | $ 30 |
Variable lease cost | 372 |
Lease, Cost | 402 |
Other operating leases cost | |
Lessee, Lease, Description [Line Items] | |
Lease cost | 11 |
Lease, Cost | $ 413 |
Leases (Summary of Other Inform
Leases (Summary of Other Information) (Details) - Southern California Edison $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Other operating leases | $ 9 |
Weighted average remaining lease term (in years) | 12 years 1 month 21 days |
Weighted average discount rate | 8.70% |
PPA Operating Leases | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 30 |
Weighted average remaining lease term (in years) | 12 years 10 months 6 days |
Weighted average discount rate | 4.24% |
Other Operating Leases | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 11 |
Weighted average remaining lease term (in years) | 12 years 6 months 15 days |
Weighted average discount rate | 3.85% |
Leases (Schedule of Undiscounte
Leases (Schedule of Undiscounted Cash Flow Expected from Lease Payments) (Details) - Southern California Edison $ in Millions | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2019 | $ 11 |
2020 | 15 |
2021 | 10 |
2022 | 10 |
2023 | 9 |
Thereafter | 141 |
Total | $ 196 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension and PBOP – net loss: | ||
Other | $ 0 | $ (5) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (50) | (43) |
Pension and PBOP – net loss: | ||
Ending Balance | (58) | (46) |
Accumulated Defined Benefit Plans Adjustment | ||
Pension and PBOP – net loss: | ||
Reclassified from accumulated other comprehensive loss1 | 2 | 2 |
Other | (10) | (5) |
Change | (8) | (3) |
Southern California Edison | ||
Pension and PBOP – net loss: | ||
Other | 0 | (5) |
Southern California Edison | Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (23) | (19) |
Pension and PBOP – net loss: | ||
Ending Balance | (27) | (22) |
Southern California Edison | Accumulated Defined Benefit Plans Adjustment | ||
Pension and PBOP – net loss: | ||
Reclassified from accumulated other comprehensive loss1 | 1 | 2 |
Other | (5) | (5) |
Change | $ (4) | $ (3) |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
SCE other income and (expenses): | ||
Total SCE other income and (expenses) | $ 38 | $ 51 |
Other income and (expenses) of Edison International Parent and Other: | ||
Total Edison International other income and (expenses) | 38 | 51 |
Edison International Parent and Other | ||
SCE other income and (expenses): | ||
Net periodic benefit costs – non-service components | (2) | 0 |
Other income and (expenses) of Edison International Parent and Other: | ||
Net periodic benefit costs – non-service components | (2) | 0 |
Other | 2 | 0 |
Southern California Edison | ||
SCE other income and (expenses): | ||
Equity allowance for funds used during construction | 17 | 22 |
Increase in cash surrender value of life insurance policies | 9 | 8 |
Interest income | 9 | 4 |
Net periodic benefit costs – non-service components | 19 | 26 |
Civic, political and related activities and donations | (13) | (4) |
Other | (3) | (5) |
Total SCE other income and (expenses) | 38 | 51 |
Other income and (expenses) of Edison International Parent and Other: | ||
Net periodic benefit costs – non-service components | 19 | 26 |
Total Edison International other income and (expenses) | $ 38 | $ 51 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | $ 200 | $ 164 |
Tax refunds, net | 0 | (93) |
Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 200 | 197 |
Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 1 | 1 |
Southern California Edison | ||
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | 177 | 149 |
Tax refunds, net | 0 | (18) |
Dividends declared but not paid: | ||
Accrued capital expenditures | 392 | 399 |
Southern California Edison | Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 200 | 212 |
Southern California Edison | Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | $ 1 | $ 1 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - Southern California Edison - Subsidiary of Common Parent - Wildfire Liability Insurance - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Wildfire insurance premiums | $ 186 | ||
Long-term insurance receivable due from affiliate | 1,000 | $ 1,000 | |
Prepaid insurance | 169 | 13 | |
Current payables due to affiliate | 62 | $ 4 | |
Wildfire insurance expense | $ 31 | $ 36 |