Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 20, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-9936 | |
Entity Registrant Name | EDISON INTERNATIONAL | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-4137452 | |
Entity Address, Address Line One | 2244 Walnut Grove Avenue | |
Entity Address, Address Line Two | (P.O. Box 976) | |
Entity Address, City or Town | Rosemead, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91770 | |
City Area Code | (626) | |
Local Phone Number | 302-2222 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | EIX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 383,288,769 | |
Entity Central Index Key | 0000827052 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
SCE | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-2313 | |
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON COMPANY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1240335 | |
Entity Address, Address Line One | 2244 Walnut Grove Avenue | |
Entity Address, Address Line Two | (P.O. Box 800) | |
Entity Address, City or Town | Rosemead, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91770 | |
City Area Code | (626) | |
Local Phone Number | 302-1212 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 434,888,104 | |
Entity Central Index Key | 0000092103 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating revenue | $ 3,964 | $ 4,008 | $ 7,930 | $ 7,976 |
Purchased power and fuel | 1,147 | 1,304 | 2,465 | 2,341 |
Operation and maintenance | 1,241 | 1,361 | 2,325 | 2,848 |
Wildfire-related claims, net of insurance recoveries | 2 | 96 | 427 | |
Wildfire Insurance Fund expense | 53 | 53 | 105 | 106 |
Depreciation and amortization | 650 | 601 | 1,306 | 1,184 |
Property and other taxes | 149 | 120 | 289 | 246 |
Impairment, net of other operating income | 63 | 61 | ||
Total operating expenses | 3,240 | 3,504 | 6,586 | 7,213 |
Operating income | 724 | 504 | 1,344 | 763 |
Interest expense | (392) | (271) | (753) | (517) |
Other income | 128 | 66 | 247 | 134 |
Income before income taxes | 460 | 299 | 838 | 380 |
Income tax expense (benefit) | 51 | 7 | 64 | (48) |
Net income | 409 | 292 | 774 | 428 |
Less: Preferred and preference stock dividend requirements | 26 | 26 | 52 | 52 |
Net income attributable to Edison International common shareholders | $ 354 | $ 241 | $ 664 | $ 325 |
Basic earnings per share: | ||||
Weighted average shares of common stock outstanding | 383 | 381 | 383 | 381 |
Basic earnings per common share attributable to Edison International common shareholders | $ 0.92 | $ 0.63 | $ 1.73 | $ 0.85 |
Diluted earnings per share: | ||||
Weighted average shares of common stock outstanding, including effect of dilutive securities | 385 | 383 | 385 | 382 |
Diluted earnings per common share attributable to Edison International common shareholders | $ 0.92 | $ 0.63 | $ 1.73 | $ 0.85 |
SCE | ||||
Operating revenue | $ 3,949 | $ 3,996 | $ 7,899 | $ 7,957 |
Purchased power and fuel | 1,147 | 1,304 | 2,465 | 2,341 |
Operation and maintenance | 1,235 | 1,339 | 2,316 | 2,805 |
Wildfire-related claims, net of insurance recoveries | 2 | 96 | 427 | |
Wildfire Insurance Fund expense | 53 | 53 | 105 | 106 |
Depreciation and amortization | 648 | 600 | 1,304 | 1,183 |
Property and other taxes | 148 | 119 | 287 | 243 |
Impairment, net of other operating income | 64 | 62 | ||
Total operating expenses | 3,231 | 3,481 | 6,573 | 7,167 |
Operating income | 718 | 515 | 1,326 | 790 |
Interest expense | (328) | (234) | (628) | (447) |
Other income | 127 | 68 | 247 | 139 |
Income before income taxes | 517 | 349 | 945 | 482 |
Income tax expense (benefit) | 68 | 22 | 97 | (18) |
Net income | 449 | 327 | 848 | 500 |
Less: Preferred and preference stock dividend requirements | 29 | 25 | 58 | 51 |
Net income attributable to Edison International common shareholders | $ 420 | $ 302 | $ 790 | $ 449 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 409 | $ 292 | $ 774 | $ 428 |
Other comprehensive income, net of tax: | ||||
Pension and postretirement benefits other than pensions | 1 | 4 | 1 | 6 |
Foreign currency translation adjustments | 2 | |||
Other comprehensive income, net of tax | 1 | 4 | 3 | 6 |
Comprehensive income | 410 | 296 | 777 | 434 |
Less: Comprehensive income attributable to noncontrolling interests | 29 | 25 | 58 | 51 |
Comprehensive income attributable to Edison International | 381 | 271 | 719 | 383 |
SCE | ||||
Net income | 449 | 327 | 848 | 500 |
Other comprehensive income, net of tax: | ||||
Pension and postretirement benefits other than pensions | 3 | 4 | ||
Other comprehensive income, net of tax | 3 | 4 | ||
Comprehensive income | $ 449 | $ 330 | $ 848 | $ 504 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 195 | $ 914 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,717 | 1,695 |
Accrued unbilled revenue | 756 | 641 |
Inventory | 511 | 474 |
Prepaid expenses | 88 | 248 |
Regulatory assets | 3,656 | 2,497 |
Wildfire Insurance Fund contributions | 204 | 204 |
Other current assets | 289 | 397 |
Total current assets | 7,416 | 7,070 |
Nuclear decommissioning trusts | 4,126 | 3,948 |
Other investments | 72 | 55 |
Total investments | 4,198 | 4,003 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 54,123 | 53,274 |
Nonutility property, plant and equipment, less accumulated depreciation at respective dates | 203 | 212 |
Total property, plant and equipment | 54,326 | 53,486 |
Regulatory assets | 8,621 | 8,181 |
Wildfire Insurance Fund contributions | 2,053 | 2,155 |
Operating lease right-of-use assets | 1,231 | 1,442 |
Long-term insurance receivables | 458 | 465 |
Other long-term assets | 1,248 | 1,239 |
Total long-term assets | 13,611 | 13,482 |
Total assets | 79,551 | 78,041 |
LIABILITIES AND EQUITY | ||
Short-term debt | 1,161 | 2,015 |
Current portion of long-term debt | 2,889 | 2,614 |
Accounts payable | 1,790 | 2,359 |
Wildfire-related claims | 71 | 121 |
Customer deposits | 173 | 167 |
Regulatory liabilities | 797 | 964 |
Current portion of operating lease liabilities | 315 | 506 |
Other current liabilities | 1,631 | 1,601 |
Total current liabilities | 8,827 | 10,347 |
Long-term debt | 29,430 | 27,025 |
Deferred income taxes and credits | 6,429 | 6,149 |
Pensions and benefits | 409 | 422 |
Asset retirement obligations | 2,709 | 2,754 |
Regulatory liabilities | 8,735 | 8,211 |
Operating lease liabilities | 916 | 936 |
Wildfire-related claims | 1,309 | 1,687 |
Other deferred credits and other long-term liabilities | 3,093 | 2,988 |
Total deferred credits and other liabilities | 23,600 | 23,147 |
Total liabilities | 61,857 | 60,519 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock | 1,978 | 1,978 |
Common stock, no par value, including additional paid-in capital | 6,270 | 6,200 |
Accumulated other comprehensive loss | (8) | (11) |
Retained earnings | 7,553 | 7,454 |
Total Edison International's shareholders' equity | 15,793 | 15,621 |
Noncontrolling interests - preference stock of SCE | 1,901 | 1,901 |
Total equity | 17,694 | 17,522 |
Total liabilities and equity | 79,551 | 78,041 |
SCE Recovery Funding LLC | ||
ASSETS | ||
Other current assets | 38 | 45 |
Regulatory assets | 1,585 | 834 |
LIABILITIES AND EQUITY | ||
Current portion of long-term debt | 54 | 29 |
Regulatory liabilities | 10 | 33 |
Other current liabilities | 11 | 4 |
Long-term debt | 1,539 | 809 |
SCE | ||
ASSETS | ||
Cash and cash equivalents | 68 | 766 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,694 | 1,675 |
Accrued unbilled revenue | 756 | 638 |
Inventory | 511 | 474 |
Prepaid expenses | 87 | 292 |
Regulatory assets | 3,656 | 2,497 |
Wildfire Insurance Fund contributions | 204 | 204 |
Other current assets | 276 | 384 |
Total current assets | 7,252 | 6,930 |
Nuclear decommissioning trusts | 4,126 | 3,948 |
Other investments | 56 | 36 |
Total investments | 4,182 | 3,984 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 54,123 | 53,274 |
Nonutility property, plant and equipment, less accumulated depreciation at respective dates | 198 | 206 |
Total property, plant and equipment | 54,321 | 53,480 |
Regulatory assets | 8,621 | 8,181 |
Wildfire Insurance Fund contributions | 2,053 | 2,155 |
Operating lease right-of-use assets | 1,222 | 1,433 |
Other long-term assets | 1,175 | 1,171 |
Total long-term assets | 13,538 | 13,413 |
Total assets | 79,293 | 77,807 |
LIABILITIES AND EQUITY | ||
Short-term debt | 781 | 925 |
Current portion of long-term debt | 2,889 | 2,214 |
Accounts payable | 1,780 | 2,351 |
Wildfire-related claims | 71 | 121 |
Customer deposits | 173 | 167 |
Regulatory liabilities | 797 | 964 |
Current portion of operating lease liabilities | 313 | 505 |
Other current liabilities | 1,611 | 1,578 |
Total current liabilities | 8,415 | 8,825 |
Long-term debt | 25,358 | 24,044 |
Deferred income taxes and credits | 7,859 | 7,545 |
Pensions and benefits | 102 | 105 |
Asset retirement obligations | 2,709 | 2,754 |
Regulatory liabilities | 8,735 | 8,211 |
Operating lease liabilities | 909 | 928 |
Wildfire-related claims | 1,309 | 1,687 |
Other deferred credits and other long-term liabilities | 3,016 | 2,919 |
Total deferred credits and other liabilities | 24,639 | 24,149 |
Total liabilities | 58,412 | 57,018 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock | 1,945 | 1,945 |
Common stock, no par value | 2,168 | 2,168 |
Additional paid-in capital | 8,442 | 8,441 |
Accumulated other comprehensive loss | (8) | (8) |
Retained earnings | 8,334 | 8,243 |
Total equity | 20,881 | 20,789 |
Total liabilities and equity | 79,293 | 77,807 |
SCE | Nonrelated party | ||
ASSETS | ||
Long-term insurance receivables | 133 | 139 |
SCE | Affiliate | ||
ASSETS | ||
Long-term insurance receivables | 334 | 334 |
SCE | SCE Recovery Funding LLC | ||
ASSETS | ||
Regulatory assets | 1,585 | 834 |
LIABILITIES AND EQUITY | ||
Long-term debt | $ 1,539 | $ 809 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables, allowances for uncollectible accounts | $ 335 | $ 347 |
Utility property, plant and equipment, accumulated depreciation | 12,662 | 12,260 |
Nonutility property, plant and equipment, accumulated depreciation | 111 | 106 |
Regulatory assets: non-current | 8,621 | 8,181 |
Long-term debt | $ 29,430 | $ 27,025 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
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 | 383,248,837 | 382,208,498 |
Common stock, shares outstanding | 383,248,837 | 382,208,498 |
SCE Recovery Funding LLC | ||
Regulatory assets: non-current | $ 1,585 | $ 834 |
Long-term debt | $ 1,539 | $ 809 |
Series A | ||
Preferred stock, shares issued | 1,250,000 | 1,250,000 |
Preferred stock, shares outstanding | 1,250,000 | 1,250,000 |
Series B | ||
Preferred stock, shares issued | 750,000 | 750,000 |
Preferred stock, shares outstanding | 750,000 | 750,000 |
SCE | ||
Receivables, allowances for uncollectible accounts | $ 335 | $ 347 |
Utility property, plant and equipment, accumulated depreciation | 12,662 | 12,260 |
Nonutility property, plant and equipment, accumulated depreciation | 97 | 94 |
Regulatory assets: non-current | 8,621 | 8,181 |
Long-term debt | $ 25,358 | $ 24,044 |
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 |
SCE | SCE Recovery Funding LLC | ||
Regulatory assets: non-current | $ 1,585 | $ 834 |
Long-term debt | $ 1,539 | $ 809 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 774 | $ 428 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 1,371 | 1,216 |
Allowance for equity during construction | (75) | (61) |
Impairment | 64 | |
Deferred income taxes | 63 | (48) |
Wildfire Insurance Fund amortization expense | 105 | 106 |
Other | 30 | 40 |
Nuclear decommissioning trusts | (60) | (65) |
Changes in operating assets and liabilities: | ||
Receivables | (46) | (81) |
Inventory | (44) | (19) |
Accounts payable | (415) | 143 |
Tax receivables and payables | (7) | 58 |
Other current assets and liabilities | (100) | (207) |
Derivative assets and liabilities, net | (151) | (22) |
Regulatory assets and liabilities, net | (366) | 372 |
Wildfire-related insurance receivable | 6 | (139) |
Wildfire-related claims | (428) | (609) |
Other noncurrent assets and liabilities | 55 | 62 |
Net cash provided by operating activities | 712 | 1,238 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 4,133 | 2,949 |
Long-term debt repaid | (1,466) | (372) |
Short-term debt issued | 675 | 600 |
Short-term debt repaid | (1,730) | (993) |
Common stock issued | 13 | 6 |
Commercial paper borrowing (repayments), net | 198 | (497) |
Dividends and distribution to noncontrolling interests | (58) | (57) |
Common stock dividends paid | (555) | (524) |
Preferred stock dividends paid | (52) | (46) |
Other | 61 | 53 |
Net cash provided by financing activities | 1,219 | 1,119 |
Cash flows from investing activities: | ||
Capital expenditures | (2,711) | (2,708) |
Proceeds from sale of nuclear decommissioning trust investments | 1,967 | 2,106 |
Purchases of nuclear decommissioning trust investments | (1,907) | (2,041) |
Other | 1 | 15 |
Net cash used in investing activities | (2,650) | (2,628) |
Net decrease in cash, cash equivalents and restricted cash | (719) | (271) |
Cash, cash equivalents and restricted cash at beginning of period | 917 | 394 |
Cash, cash equivalents and restricted cash at end of period | 198 | 123 |
SCE | ||
Cash flows from operating activities: | ||
Net income | 848 | 500 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 1,360 | 1,211 |
Allowance for equity during construction | (75) | (61) |
Impairment | 64 | |
Deferred income taxes | 96 | (19) |
Wildfire Insurance Fund amortization expense | 105 | 106 |
Other | 17 | 25 |
Nuclear decommissioning trusts | (60) | (65) |
Changes in operating assets and liabilities: | ||
Receivables | (39) | (78) |
Inventory | (44) | (19) |
Accounts payable | (415) | 145 |
Tax receivables and payables | (6) | 40 |
Other current assets and liabilities | (48) | (202) |
Derivative assets and liabilities, net | (151) | (22) |
Regulatory assets and liabilities, net | (366) | 372 |
Wildfire-related insurance receivable | 6 | (139) |
Wildfire-related claims | (428) | (609) |
Other noncurrent assets and liabilities | 62 | 68 |
Net cash provided by operating activities | 862 | 1,317 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 3,044 | 2,949 |
Long-term debt repaid | (1,066) | (372) |
Short-term debt issued | 320 | 0 |
Short-term debt repaid | (730) | (993) |
Capital contributions from Edison International Parent | 700 | |
Commercial paper borrowing (repayments), net | 262 | (499) |
Common stock dividends paid | (700) | (650) |
Preferred stock dividends paid | (58) | (57) |
Other | 18 | 18 |
Net cash provided by financing activities | 1,090 | 1,096 |
Cash flows from investing activities: | ||
Capital expenditures | (2,710) | (2,708) |
Proceeds from sale of nuclear decommissioning trust investments | 1,967 | 2,106 |
Purchases of nuclear decommissioning trust investments | (1,907) | (2,041) |
Other | 17 | |
Net cash used in investing activities | (2,650) | (2,626) |
Net decrease in cash, cash equivalents and restricted cash | (698) | (213) |
Cash, cash equivalents and restricted cash at beginning of period | 766 | 280 |
Cash, cash equivalents and restricted cash at end of period | $ 68 | $ 67 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Premium and net of discount and issuance costs | $ 43 | $ 34 |
SCE | ||
Premium and net of discount and issuance costs | $ 31 | $ 34 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Organization and Basis of Presentation Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC ("Edison Energy"). 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 is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional 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 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, its controlled subsidiaries and a variable interest entity, SCE Recovery Funding LLC., of which SCE is the primary beneficiary. 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, 2022 (the "2022 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2022 Form 10-K. In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year. The December 31, 2022 financial statement data was derived from the audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. Certain prior period amounts have been conformed to the current period's presentation, including the separate presentation of common stock and preference stock dividends in SCE's consolidated statements of cash flows. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of 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 June 30, December 31, June 30, December 31, (in millions) 2023 2022 2023 2022 Money market funds $ 123 $ 784 $ 5 $ 647 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. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: June 30, December 31, (in millions) 2023 2022 Edison International: Cash and cash equivalents $ 195 $ 914 Short-term restricted cash 1 3 3 Total cash, cash equivalents and restricted cash $ 198 $ 917 1 Reflected in "Other current assets" on Edison International's consolidated balance sheets. Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. The following table sets forth the changes in allowance for uncollectible accounts for SCE: Three months ended Three months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 326 $ 18 $ 344 $ 337 $ 16 $ 353 Current period provision for uncollectible accounts 2 20 1 21 37 2 39 Write-offs, net of recoveries (20) (2) (22) (10) (1) (11) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 Six months ended Six months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 334 $ 20 $ 354 1 $ 293 $ 16 $ 309 Current period provision for uncollectible accounts 3 40 1 41 91 9 100 Write-offs, net of recoveries (48) (4) (52) (20) (8) (28) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 1 Approximately $8 million and $7 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. 2 This includes $13 million and $17 million of incremental costs, for the three months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. 3 This includes $27 million and $58 million of incremental costs, for the six months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 13 for further information. EPS attributable to Edison International common shareholders was computed as follows: Three months ended June 30, Six months ended June 30, (in millions, except per-share amounts) 2023 2022 2023 2022 Basic earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Weighted average common shares outstanding 383 381 383 381 Basic earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 Diluted earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Income impact of assumed conversions — — 1 — Net income available to common shareholders and assumed conversions $ 354 $ 241 $ 665 $ 325 Weighted average common shares outstanding 383 381 383 381 Incremental shares from assumed conversions 2 2 2 1 Adjusted weighted average shares – diluted 385 383 385 382 Diluted earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 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 2,046,312 and 3,990,270 shares of common stock for the three months ended June 30, 2023 and 2022, respectively, and 3,230,213 and 5,261,914 shares of common stock for the six months ended June 30, 2023 and 2022, respectively were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. Regulatory Proceedings FERC 2023 Formula Rate Update In November 2022, SCE filed its 2023 annual update with the FERC with the proposed rates effective January 1, 2023, subject to settlement procedures and refund. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first six months of 2023 based on the FERC 2023 annual update rate, subject to refund. Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the quarter ended June 30, 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million. Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also charged to expense in the period. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss | |
Consolidated Statements of Changes in Equity | Note 2. The following table provides Edison International's changes in equity for the three and six months ended June 30, 2023: Noncontrolling Equity Attributable to Edison International Shareholders Interests Accumulated Other Preferred Common Comprehensive Retained Preference Total (in millions, except per share amounts) Stock Stock Loss Earnings Subtotal Stock Equity Balance at December 31, 2022 $ 1,978 $ 6,200 $ (11) $ 7,454 $ 15,621 $ 1,901 $ 17,522 Net income — — — 336 336 29 365 Other comprehensive income — — 2 — 2 — 2 Common stock issued, net of issuance cost — 15 — — 15 — 15 Common stock dividends declared ($0.7375 per share) — — — (282) (282) — (282) Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B) — — — (52) (52) — (52) Dividends to noncontrolling interests ($22.281 - $35.937 per share for preference stock) — — — — — (29) (29) Noncash stock-based compensation — 8 — — 8 — 8 Balance at March 31, 2023 $ 1,978 $ 6,223 $ (9) $ 7,456 $ 15,648 $ 1,901 $ 17,549 Net income — — — 380 380 29 409 Other comprehensive income — — 1 — 1 — 1 Common stock issued, net of issuance cost — 35 — — 35 — 35 Common stock dividends declared ($0.7375 per share) — — — (283) (283) — (283) Dividends to noncontrolling interests ($24.273 - $35.937 per share for preference stock) — — — — — (29) (29) Noncash stock-based compensation — 12 — — 12 — 12 Balance at June 30, 2023 $ 1,978 $ 6,270 $ (8) $ 7,553 $ 15,793 $ 1,901 $ 17,694 The following table provides Edison International's changes in equity for the three and six months ended June 30, 2022: Noncontrolling Equity Attributable to Edison International Shareholders Interests Accumulated Other Preferred Common Comprehensive Retained Preference Total (in millions, except per share amounts) Stock Stock Loss Earnings Subtotal Stock Equity Balance at December 31, 2021 $ 1,977 $ 6,071 $ (54) $ 7,894 $ 15,888 $ 1,901 $ 17,789 Net income — — — 110 110 26 136 Other comprehensive income — — 2 — 2 — 2 Common stock issued, net of issuance cost — 12 — — 12 — 12 Common stock dividends declared ($0.7000 per share) — — — (267) (267) — (267) Preferred stock dividend declared ($26.875 per share for Series A and $17.08333 per share for Series B) — — — (21) (21) — (21) Dividends to noncontrolling interests ($11.160 - $35.937 per share for preference stock) — — — — — (26) (26) Noncash stock-based compensation — 7 — — 7 — 7 Balance at March 31, 2022 $ 1,977 $ 6,090 $ (52) $ 7,716 $ 15,731 $ 1,901 $ 17,632 Net income — — — 267 267 25 292 Other comprehensive income — — 4 — 4 — 4 Common stock issued, net of issuance cost — 27 — — 27 — 27 Common stock dividends declared ($0.7000 per share) — — — (267) (267) — (267) Dividends to noncontrolling interests ($14.017 - $35.937 per share for preference stock) — — — — — (25) (25) Noncash stock-based compensation — 12 — — 12 — 12 Balance at June 30, 2022 $ 1,977 $ 6,129 $ (48) $ 7,716 $ 15,774 $ 1,901 $ 17,675 The following table provides SCE's changes in equity for the three and six months ended June 30, 2023: Accumulated Additional Other Preference Common Paid-in Comprehensive Retained Total (in millions, except per share amounts) Stock Stock Capital Loss Earnings Equity Balance at December 31, 2022 $ 1,945 $ 2,168 $ 8,441 $ (8) $ 8,243 $ 20,789 Net income — — — — 399 399 Dividends declared on common stock ($0.8048 per share) — — — — (350) (350) Dividends on preference stock ($22.281 - $35.937 per share) — — — — (29) (29) Stock-based compensation — — (8) — — (8) Noncash stock-based compensation — — 5 — 1 6 Balance at March 31, 2023 $ 1,945 $ 2,168 $ 8,438 $ (8) $ 8,264 $ 20,807 Net income — — — — 449 449 Dividends declared on common stock ($0.8048 per share) — — — — (350) (350) Dividends declared on preference stock ($24.273 - $35.937 per share) — — — — (29) (29) Stock-based compensation — — (3) — — (3) Noncash stock-based compensation — — 7 — — 7 Balance at June 30, 2023 $ 1,945 $ 2,168 $ 8,442 $ (8) $ 8,334 $ 20,881 The following table provides SCE's changes in equity for the three and six months ended June 30, 2022: Accumulated Additional Other Preference Common Paid-in Comprehensive Retained Total (in millions, except per share amounts) Stock Stock Capital Loss Earnings Equity Balance at December 31, 2021 $ 1,945 $ 2,168 $ 7,033 $ (32) $ 8,721 $ 19,835 Net income — — — — 173 173 Other comprehensive income — — — 1 — 1 Dividends declared on common stock ($0.7473 per share) — — — — (325) (325) Dividends declared on preference stock ($11.160 - $35.937 per share) — — — — (26) (26) Stock-based compensation — — (9) — — (9) Noncash stock-based compensation — — 4 — (1) 3 Balance at March 31, 2022 $ 1,945 $ 2,168 $ 7,028 $ (31) $ 8,542 $ 19,652 Net income — — — — 327 327 Other comprehensive income — — — 3 — 3 Capital contribution from Edison International Parent — — 700 — — 700 Dividends declared on common stock ($0.7473 per share) — — — — (325) (325) Dividends declared on preferred and preference stock ($14.017 - $35.937 per share for preference stock) — — — — (25) (25) Stock-based compensation — — (1) — — (1) Noncash stock-based compensation — — 5 — 1 6 Balance at June 30, 2022 $ 1,945 $ 2,168 $ 7,732 $ (28) $ 8,520 $ 20,337 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entities | |
Variable Interest Entities | Note 3. A VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, plant dispatch and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are Consolidated SCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE. SCE Recovery Funding LLC is a VIE and SCE is the primary beneficiary. SCE Recovery Funding LLC was formed in 2021 for the purpose of issuing and servicing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures. SCE Recovery Funding LLC has issued a total of $1.6 billion of securitized bonds, of which $775 million was issued in April 2023. The proceeds were used to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service territory ("Recovery Property"), associated with the AB 1054 Excluded Capital Expenditures, until the bonds are paid in full, and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5. The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets. June 30, December 31, (in millions) 2023 2022 Other current assets $ 38 $ 45 Regulatory assets: non-current 1,585 834 Regulatory liabilities: current 10 33 Current portion of long-term debt 1 54 29 Other current liabilities 11 4 Long-term debt 1 1,539 809 1 The bondholders have no recourse to SCE. The long-term debt balance is net of unamortized debt issuance costs. Variable Interest in VIEs that are not Consolidated Power Purchase Agreements SCE has PPAs that are classified as variable interests in VIEs, including agreements through which SCE provides the natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that, upon the seller's election, include the purchase of energy at fixed prices. 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 included in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated, result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 12 of the 2022 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 3,368 MW and 3,366 MW at June 30, 2023 and 2022, respectively. The amounts that SCE paid to these projects were $129 million and $126 million for the three months ended June 30, 2023 and 2022, respectively, and $285 million and $207 million for the six months ended June 30, 2023 and 2022, respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust II, Trust III, Trust IV, Trust V, and Trust VI were formed in 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities, if and when the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of June 30, 2023 and December 31, 2022 consisted of investments of $220 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, $220 million, $275 million, $325 million, $300 million, and $475 million of trust securities, respectively, and $10,000 each of common stock. The following table provides a summary of the trusts' income statements: Three months ended June 30, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2023 Dividend income $ 3 $ 4 $ 5 $ 4 $ 6 Dividend distributions 3 4 5 4 6 2022 Dividend income $ 3 $ 4 $ 5 $ 4 $ 6 Dividend distributions 3 4 5 4 6 Six months ended June 30, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2023 Dividend income $ 6 $ 8 $ 9 $ 8 $ 12 Dividend distributions 6 8 9 8 12 2022 Dividend income $ 6 $ 8 $ 9 $ 8 $ 12 Dividend distributions 6 8 9 8 12 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4. Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2023 and December 31, 2022, nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds. Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available, and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: June 30, 2023 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 11 $ 13 $ (11) $ 13 Money market funds and other 5 22 — — 27 Nuclear decommissioning trusts: Stocks 2 1,632 — — — 1,632 Fixed Income 3 936 1,404 — — 2,340 Short-term investments, primarily cash equivalents 219 31 — — 250 Subtotal of nuclear decommissioning trusts 4 2,787 1,435 — — 4,222 Total assets 2,792 1,468 13 (11) 4,262 Liabilities at fair value Derivative contracts — 62 1 (63) — Total liabilities — 62 1 (63) — Net assets $ 2,792 $ 1,406 $ 12 $ 52 $ 4,262 December 31, 2022 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 392 $ 67 $ (218) $ 241 Money market funds and other 647 22 — — 669 Nuclear decommissioning trusts: Stocks 2 1,610 — — — 1,610 Fixed Income 3 941 1,281 — — 2,222 Short-term investments, primarily cash equivalents 137 64 — — 201 Subtotal of nuclear decommissioning trusts 4 2,688 1,345 — — 4,033 Total assets 3,335 1,759 67 (218) 4,943 Liabilities at fair value Derivative contracts — 116 4 (119) 1 Total liabilities — 116 4 (119) 1 Net assets $ 3,335 $ 1,643 $ 63 $ (99) $ 4,942 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 75% and 74% SCE's equity investments were in companies located in the United States at June 30, 2023 and December 31, 2022, respectively. 3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $77 million and $49 million at June 30, 2023 and December 31, 2022, respectively. 4 Excludes net payables of $96 million and $85 million at June 30, 2023 and December 31, 2022, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. 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 Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Fair value of net assets at beginning of period $ 47 $ 39 $ 63 $ 44 Sales (1) (6) (1) (6) Settlements (12) (26) (24) (29) Total realized/unrealized (losses)/gains 1 (22) 25 (26) 23 Fair value of net assets at end of period $ 12 $ 32 $ 12 $ 32 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. There were no material transfers into or out of Level 3 during 2023 and 2022. 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 Significant Weighted (in millions) Valuation Unobservable Range Average Assets Liabilities Technique Input (per MWh) (per MWh) Congestion revenue rights June 30, 2023 $ 13 $ 1 Auction prices CAISO CRR auction prices $(7.54) - $47.91 $ 0.56 December 31, 2022 67 4 Auction prices CAISO CRR auction prices (7.91) - 3,856.67 1.64 Level 3 Fair Value Uncertainty For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value, respectively. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. There are no securities classified as Level 3 in the nuclear decommissioning trusts. Edison International Parent and Other Edison International Parent and Other assets measured at fair value and classified as Level 1 consisted of equity investments of $1 million and $5 million and money market funds of $118 million and $137 million at June 30, 2023 and December 31, 2022, respectively. Assets measured at fair value and classified as Level 2 consisted of short-term investments of $2 million at both June 30, 2023 and December 31, 2022. There are no securities classified as Level 3 for Edison International Parent and Other. 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 the current portion of long-term debt) are as follows: June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 32,319 $ 29,670 $ 29,639 $ 26,824 SCE 28,247 25,618 26,258 23,469 1 Carrying value is net of debt issuance costs. 2 The fair value of long-term debt is classified as Level 2. |
Debt and Credit Agreements
Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2023 | |
Debt and Credit Agreements | |
Debt and Credit Agreements | Note 5. Long-Term Debt In the first quarter of 2023, SCE issued $750 million of 5.30% first and refunding mortgage bonds due in 2028. The proceeds were used to fund the payment of wildfire claims above the amount of expected insurance proceeds. SCE also issued $450 million of 5.70% first and refunding mortgage bonds due in 2053. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. In the first quarter of 2023, Edison International Parent issued $ million of junior subordinated notes due in 2053. The interest rate resets every five years at a rate equal to the five-year U.S. Treasury rate plus a spread of 3.864% . The proceeds were used to repay commercial paper borrowings and for general corporate purposes. In the second quarter of 2023, SCE issued $400 million of 4.90% first and refunding mortgage bonds due in 2026. The proceeds were used to fund the payment of wildfire claims above the amount of expected insurance proceeds. SCE also issued $700 million of 5.875% first and refunding mortgage bonds due in 2053. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. In the second quarter of 2023, Edison International Parent issued $600 million of 5.25% senior notes due in 2028. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. Senior Secured Recovery Bonds In April 2023, SCE Recovery Funding LLC issued $775 million of Senior Secured Recovery Bonds, Series 2023-A, in two tranches and used the proceeds to acquire SCE's right, title and interest in and to the Recovery Property. The two tranches of Senior Secured Recovery Bonds consisted of $425 million, 4.697% with final maturity in 2042 bonds and $350 million, 5.112% with final maturity in 2049 bonds. For further details, see Note 3. SCE used the proceeds it received from the sale of Recovery Property to pay down the entire $730 million outstanding amount of a term loan due in May 2023. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at June 30, 2023: (in millions, except for rates) Borrower Termination Date Secured Overnight Financing Rate ("SOFR") plus (bps) Commitment Outstanding borrowings Outstanding letters of credit Amount available Edison International Parent 1, 3 May 2027 128 $ 1,500 $ 387 $ — $ 1,113 SCE 2, 3 May 2027 108 3,350 785 122 2,443 Total Edison International $ 4,850 $ 1,172 $ 122 $ 3,556 1 At June 30, 2023, Edison International Parent had $387 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.84% . 2 At June 30, 2023, SCE had $785 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.63% . 3 In May 2023, Edison International Parent and SCE amended their credit facilities to extend the maturity date to May 2027, with two additional one year extension options. The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments | |
Derivative Instruments | I se Note 6. Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible, and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plants, Peaker plants and Qualifying Facilities 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 and natural gas or selling excess power and natural gas. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and natural gas 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 the major credit rating agencies that have credit ratings for SCE, 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 less than $1 million as of June 30, 2023 and December 31, 2022, for which SCE posted no collateral and collateral of $24 million for its outstanding payables as of June 30, 2023 and December 31, 2022, respectively. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2023, SCE would not be required to post any additional collateral. Fair Value of Derivative Instruments SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: June 30, 2023 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Net Assets Commodity derivative contracts Gross amounts recognized $ 24 $ 63 $ (39) Gross amounts offset in the consolidated balance sheets (11) (11) — Cash collateral posted — (52) 52 Net amounts presented in the consolidated balance sheets $ 13 $ — $ 13 December 31, 2022 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term 2 Net Assets Commodity derivative contracts Gross amounts recognized $ 459 $ 120 $ 339 Gross amounts offset in the consolidated balance sheets (119) (119) — Cash collateral received (99) — (99) Net amounts presented in the consolidated balance sheets $ 241 $ 1 $ 240 1 Included in "Other current assets" on SCE's consolidated balance sheets. 2 Included in "Other current liabilities" on SCE's consolidated balance sheets. At June 30, 2023, SCE posted cash collateral and accrued t he right to reclaim cash collateral totaled Financial 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 the 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 SCE’s consolidated statements of cash flows. The following table summarizes the gains/(losses) of SCE's economic hedging activity: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Realized $ (7) $ 129 $ 109 $ 110 Unrealized (114) (88) (378) (35) Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE's economic hedging activities: Unit of Economic Hedges Commodity Measure June 30, 2023 December 31, 2022 Electricity options, swaps and forwards Gigawatt hours 2,364 1,022 Natural gas options, swaps and forwards Billion cubic feet 45 42 Congestion revenue rights Gigawatt hours 24,290 44,028 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue | |
Revenue | Note 7. SCE's revenue is disaggregated by two revenue sources: ● Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE with 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 a reasonableness review or compliance with upfront standards, as well as non-bypassable rates collected for SCE Recovery Funding LLC. Cost-recovery activities include rates which provide recovery, subject to a reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), certain operation and maintenance expenses and repayment of bonds and financing costs of SCE Recovery Funding LLC. SCE earns no return on these activities. The following table is a summary of SCE's revenue: Three months ended June 30, 2023 Three months ended June 30, 2022 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenue from contracts with customers 1,2 $ 2,043 $ 1,546 $ 3,589 $ 1,978 $ 2,022 $ 4,000 Alternative revenue programs and other operating revenue 3 124 236 360 186 (190) (4) Total operating revenue $ 2,167 $ 1,782 $ 3,949 $ 2,164 $ 1,832 $ 3,996 Six months ended June 30, 2023 Six months ended June 30, 2022 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenues from contracts with customers 1,2 $ 4,119 $ 3,206 $ 7,325 $ 3,963 $ 3,397 $ 7,360 Alternative revenue programs and other operating revenue 3 281 293 574 468 129 597 Total operating revenue $ 4,400 $ 3,499 $ 7,899 $ 4,431 $ 3,526 $ 7,957 1 SCE recorded CPUC revenue based on an annual revenue requirement set by a methodology established in the GRC proceeding and FERC revenue authorized through a formula rate. For further information, see Note 1. 2 At June 30, 2023 and December 31, 2022, SCE's receivables related to contracts from customers were $2.3 billion for both periods, which include accrued unbilled revenue of $756 million and $638 million, respectively. 3 Includes differences between amounts billed and authorized levels for both the CPUC and FERC. Deferred Revenue As of June 30, 2023, SCE has deferred revenue of $374 million related to sale of the use of transfer capability of West of Devers transmission line, of which $13 million and $361 million are included in "Other current liabilities" and "Other deferred credits and other long-term liabilities," respectively, on SCE's consolidated balance sheets. The deferred revenue is amortized straight-line over a period of 30 years starting 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Income Taxes | Note 8. Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Edison International: Income from operations before income taxes $ 460 $ 299 $ 838 $ 380 Provision for income tax at federal statutory rate of 21% 97 63 176 80 Increase (decrease) in income tax from: State tax, net of federal benefit 1 (4) — (21) Property-related (47) (48) (105) (93) Other — (4) (7) (14) Total income tax expense (benefit) $ 51 $ 7 $ 64 $ (48) Effective tax rate 11.1 % 2.3 % 7.6 % (12.6) % SCE: Income from operations before income taxes $ 517 $ 349 $ 945 $ 482 Provision for income tax at federal statutory rate of 21% 109 73 198 101 Increase (decrease) in income tax from: State tax, net of federal benefit 8 — 11 (13) Property-related (47) (48) (105) (93) Other (2) (3) (7) (13) Total income tax expense (benefit) $ 68 $ 22 $ 97 $ (18) Effective tax rate 13.2 % 6.3 % 10.3 % (3.7) % 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 In 2020, Edison International recorded favorable tax positions in connection with the Edison Mission Energy bankruptcy that were fully reserved. Based on information identified during the second quarter of 2023, the Company wrote off the total claim and related reserve in the amount of approximately $268 million. Tax years that remain open for examination by the IRS and the California Franchise Tax Board ("FTB") are 2019 – 2022 and 2013 – 2022, respectively. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Compensation and Benefit Plans | |
Compensation and Benefit Plans | Note 9. Pension Plans Net periodic pension expense components are: Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Edison International: Service cost $ 25 $ 30 $ 50 $ 60 Non-service cost (benefit) Interest cost 45 27 90 54 Expected return on plan assets (54) (57) (108) (114) Settlement costs — 3 — 3 Amortization of net loss 1 1 1 2 2 Regulatory adjustment (12) 2 (24) 4 Total non-service benefit 2 $ (20) $ (24) $ (40) $ (51) Total expense $ 5 $ 6 $ 10 $ 9 SCE: Service cost $ 24 $ 29 $ 48 $ 58 Non-service cost (benefit) Interest cost 42 25 84 50 Expected return on plan assets (51) (54) (102) (108) Settlement costs — 3 — 3 Amortization of net loss 1 — 1 — 2 Regulatory adjustment (12) 2 (24) 4 Total non-service benefit 2 $ (21) $ (23) $ (42) $ (49) Total expense $ 3 $ 6 $ 6 $ 9 1 Represents the amount of net loss reclassified from other comprehensive loss. 2 Included in "Other Income" on Edison International's and SCE’s consolidated statements of income. Postretirement Benefits Other Than Pensions ("PBOP") Net periodic PBOP expense components for Edison International and SCE are: Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Service cost $ 5 $ 8 $ 10 $ 16 Non-service cost (benefit) Interest cost 18 14 36 28 Expected return on plan assets (27) (24) (54) (48) Amortization of net gain (12) (12) (24) (24) Regulatory adjustment 16 14 32 28 Total non-service benefit 1 $ (5) $ (8) $ (10) $ (16) Total expense $ — $ — $ — $ — 1 Included in "Other income" on Edison International ' s and SCE ' s consolidated statements of income . |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments | |
Investments | Note 10. Investments Nuclear Decommissioning Trusts Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments): Amortized Costs Fair Values Longest June 30, December 31, June 30, December 31, (in millions) Maturity Dates 2023 2022 2023 2022 Municipal bonds 2061 $ 617 $ 672 $ 704 $ 754 Government and agency securities 2073 1,151 1,025 1,222 1,091 Corporate bonds 2070 386 351 414 377 Short-term investments and receivables/payables 1 One-year 146 110 154 116 Total debt securities and other $ 2,300 $ 2,158 2,494 2,338 Equity securities 1,632 1,610 Total $ 4,126 $ 3,948 1 Short-term investments included $9 million and $41 million of repurchase agreements payable by financial institutions which earn interest, were fully and 97% secured by U.S. Treasury securities and mature by July 3, 2023 and January 3, 2023 as of June 30, 2023 and December 31, 2022, 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 at both June 30, 2023 and December 31, 2022. Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains were $352 million and $321 million at June 30, 2023 and December 31, 2022, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.8 billion and $3.6 billion at June 30, 2023 and December 31, 2022, respectively. The following table summarizes the gains and losses for the trust investments: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Gross realized gains $ 124 $ 74 $ 195 $ 89 Gross realized losses (8) (45) (31) (61) Net unrealized (losses)/gains for equity securities (11) (332) 64 (432) Due to regulatory mechanisms, changes in assets of the trusts from income or loss items do not materially affect earnings. Edison International Parent and Other's Investments Edison International Parent and Other hold strategic investments in companies focused on developing electric technologies and services, included as "Other investments" on Edison International's consolidated balance sheets. As of June 30, 2023 and December 31, 2022, these investments consist of $1 million and $5 million of marketable securities, respectively, and $12 million of equity investments without readily determinable fair values at both dates. For further information of fair value and unrealized gains/(losses) of marketable securities, which are recorded in "Other income" on Edison Internationals' consolidated statements of income, see Note 4 and Note 15, respectively. The equity investments without readily determinable fair values balances included cumulative upward adjustments of $9 million at both June 30, 2023 and December 31, 2022. The cumulative upward adjustments resulted primarily from values determined by additional capital infusions. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Assets and Liabilities | |
Regulatory Assets and Liabilities | Note 11. Regulatory Assets SCE's regulatory assets included on its consolidated balance sheets are: June 30, December 31, (in millions) 2023 2022 Current: Regulatory balancing and memorandum accounts $ 3,574 $ 2,400 Power contracts 23 71 Energy derivatives 39 — Other 20 26 Total current 3,656 2,497 Long-term: Deferred income taxes, net of liabilities 5,366 5,178 Unamortized investments, net of accumulated amortization 110 113 Unamortized loss on reacquired debt 103 109 Regulatory balancing and memorandum accounts 1,107 1,589 Environmental remediation 234 241 Recovery assets 1,585 834 Other 116 117 Total long-term 8,621 8,181 Total regulatory assets $ 12,277 $ 10,678 Regulatory Liabilities SCE's regulatory liabilities included on its consolidated balance sheets are: June 30, December 31, (in millions) 2023 2022 Current: Regulatory balancing and memorandum accounts $ 779 $ 584 Energy derivatives — 338 Other 18 42 Total current 797 964 Long-term: Costs of removal 2,705 2,589 Re-measurement of deferred taxes 2,224 2,250 Recoveries in excess of ARO liabilities 1,444 1,231 Regulatory balancing and memorandum accounts 1,353 1,116 Pension and other postretirement benefits 992 1,007 Other 17 18 Total long-term 8,735 8,211 Total regulatory liabilities $ 9,532 $ 9,175 Net Regulatory Balancing and Memorandum Accounts The following table summarizes the significant components of regulatory balancing and memorandum accounts included in the above tables of regulatory assets and liabilities: June 30, December 31, (in millions) 2023 2022 Asset (liability) Energy resource recovery account $ (471) $ 1,580 Portfolio allocation balancing account 1,613 (73) New system generation balancing account 135 (63) Public purpose programs and energy efficiency programs (1,900) (1,577) Base revenue requirement balancing account 1,566 1,108 GRC wildfire mitigation balancing accounts 192 67 Residential uncollectibles balancing account 28 — Greenhouse gas auction revenue and low carbon fuel standard revenue (181) (289) FERC balancing accounts (114) (123) Wildfire and drought restoration accounts 383 352 Wildfire-related memorandum accounts 886 1,168 COVID-19-related memorandum accounts 69 67 Customer service re-platform memorandum account 70 64 Tax accounting memorandum account and pole loading balancing account 192 90 Excess bond and power charge balancing account 9 (56) Other 72 (26) Asset $ 2,549 $ 2,289 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, indemnities for specified environmental liabilities and income taxes with respect to assets sold or other contractual arrangements. 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. 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 each of these other proceedings will not materially affect its financial position, results of operations and cash flows. Southern California Wildfires and Mudslides California has experienced unprecedented weather conditions in recent years due to climate change and wildfires in SCE's territory, including those where SCE's equipment may be alleged to be associated with the fire's ignition, have caused loss of life and substantial damage in recent years. SCE's service territory remains susceptible to additional wildfire activity. Numerous claims related to wildfire events have been initiated against SCE and Edison International. Edison International and SCE have incurred material losses in connection with the 2017/2018 Wildfire/Mudslide Events (defined below), which are described below. In addition, SCE's equipment has been, and may further be, alleged to be associated with wildfires that have originated in Southern California subsequent to 2018. Liability Overview The extent of legal liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether the utility 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 and penalties for alleged violations of CPUC rules and state laws investigated in connection with the ignition of a wildfire. While investigations into the cause of a wildfire event are conducted by one or more fire agencies, fire agency findings do not determine legal causation of or assign legal liability for a wildfire event. Final determinations of legal causation and liability for wildfire events, including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes and settlements may be reached before determinations of legal liability are ever made. Even when investigations are still pending or legal liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require estimated losses to be accrued under accounting standards. Each reporting period, management reviews its loss estimates for remaining alleged and potential claims related to wildfire events. The process for estimating losses associated with alleged and potential wildfire related claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including, but not limited to: estimates of known and expected claims by third parties based on currently available information, opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, and prior experience litigating and settling wildfire litigation claims. As additional information becomes available, management's estimates and assumptions regarding the causes and financial impact of wildfire events may change. Actual losses incurred may be higher or lower than estimated based on several factors, including the uncertainty in estimating damages that have been or may be alleged. 2017/2018 Wildfire/Mudslide Events Wildfires in SCE's territory in December 2017 and November 2018 caused loss of life, 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 in SCE's territory 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"). The December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE, the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two confirmed fatalities. The largest of the November 2018 fires in SCE's territory, known as the "Woolsey Fire," originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three confirmed fatalities. Four additional fatalities are alleged to have been associated with the Woolsey Fire. 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 debris flows and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and further alleging that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with two additional fatalities presumed but not officially confirmed. The Thomas Fire, the Koenigstein Fire, the Montecito Mudslides and the Woolsey Fire are each referred to as a "2017/2018 Wildfire/Mudslide Event," and, collectively, referred to as the "2017/2018 Wildfire/Mudslide Events." As of June 30, 2023, SCE had paid $8.1 billion under executed settlements, had $130 million to be paid under executed settlements, including $65 million to be paid under the SED Agreement (as defined below), and had $572 million of estimated losses for remaining alleged and potential claims reflected on its consolidated balance sheets related to the 2017/2018 Wildfire/Mudslide Events. As of the same date, SCE had assets for expected recoveries through FERC electric rates of $43 million on its consolidated balance sheets and had exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. The estimated losses for the 2017/2018 Wildfire/Mudslide Events do not include an estimate of potential As of the filing of this report, SCE has not concluded that losses related to funds disbursed by Cal OES are probable. Edison International and SCE may incur a material loss in excess of amounts accrued in connection with the remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. Due to the number of uncertainties and possible outcomes related to the 2017/2018 Wildfire/Mudslide Events litigation, Edison International and SCE cannot estimate the upper end of the range of reasonably possible losses that may be incurred. Estimated losses for the 2017/2018 Wildfire/Mudslide Events litigation are based on a number of assumptions and are subject to change as additional information becomes available. Actual losses incurred may be higher or lower than estimated based on several factors, including the uncertainty in estimating damages that have been or may be alleged. For instance, SCE will receive additional information with respect to damages claimed The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not prudently incurred. SCE will seek rate recovery of prudently incurred losses and related costs realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance, other than for any obligations under the SED Agreement (as defined below). See "Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" below for additional information. External Investigations and Internal Review The VCFD and CAL FIRE have jointly issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The reports did not address the causes of the Montecito Mudslides. SCE has also received a non-final redacted draft of a report from the VCFD regarding Woolsey Fire (the "Redacted Woolsey Report"). SCE cannot predict when the VCFD will release its final report regarding the Woolsey Fire. The CPUC's Safety and Enforcement Division ("SED") conducted investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the Thomas, Koenigstein and Woolsey Fires. As discussed below, in October 2021, SCE and the SED executed the SED Agreement (as defined below) to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events. The California Attorney General's Office has completed its investigation of the Thomas Fire and the Woolsey Fire without pursuing criminal charges. 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 jointly 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 their investigation found molten metal on the ground. At this time, based on available information, SCE believes that it is likely that its equipment was not associated with the ignition of 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 and other evidence, 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 extent of damages that may be attributable to the Thomas Fire. Koenigstein Fire On March 20, 2019, the VCFD and CAL FIRE jointly 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 believes that its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the extent of damages that may be attributable to the Koenigstein 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. The Redacted Woolsey Report states that the VCFD investigation team determined that electrical equipment owned and operated by SCE was the cause of the Woolsey Fire. Absent additional evidence, SCE believes that it is likely that its equipment was 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. Litigation Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed by three categories of plaintiffs: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs. On October 4, 2018, the Los Angeles 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 April 2022, following a stipulated judgment entered against SCE in the TKM litigation, SCE filed an appeal related to inverse condemnation in the California Court of Appeal. In January 2019, SCE filed a cross-complaint against certain local public 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. These cross-claims in the Montecito Mudslides litigation were not released as part of the Local Public Entity Settlements (as defined below). Settlements In the fourth quarter of 2019, SCE paid $360 million to a number of local public entities to resolve those parties' collective claims arising from the 2017/2018 Wildfire/Mudslide Events (the "Local Public Entity Settlements"). In the third quarter of 2020, Edison International and SCE entered into an agreement (the "TKM Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation (the "TKM Subrogation Plaintiffs") collective claims arising from the Thomas Fire, Koenigstein Fire or Montecito Mudslides have been resolved. Under the TKM Subrogation Settlement, SCE paid the TKM Subrogation Plaintiffs an aggregate of $1.2 billion in October 2020 and also agreed to pay $0.555 for each dollar in claims to be paid by the TKM Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap. In January 2021, Edison International and SCE entered into an agreement (the "Woolsey Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Woolsey Fire litigation (the "Woolsey Subrogation Plaintiffs") collective claims arising from the Woolsey Fire have been resolved. Under the Woolsey Subrogation Settlement, SCE paid the Woolsey Subrogation Plaintiffs an aggregate of $2.2 billion in March and April 2021. SCE has also agreed to pay $0.67 for each dollar in claims to be paid by the Woolsey Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap. As of June 30, 2023, SCE has also entered into settlements with approximately 10,000 indi Edison International and SCE did not admit wrongdoing or liability as part of any of the settlements described above. Other claims and potential claims related to the 2017/2018 Wildfire/Mudslide Events remain. SCE continues to explore reasonable settlement opportunities with other plaintiffs in the outstanding 2017/2018 Wildfire/Mudslide Events litigation. SED Agreement In October 2021, SCE and the SED executed an agreement (the "SED Agreement") to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events and three other 2017 wildfires for, among other things, aggregate costs of $550 million. The $550 million in costs comprised of a $110 million fine to be paid to the State of California General Fund, $65 million of shareholder-funded safety measures, and an agreement by SCE to waive its right to seek cost recovery in CPUC-jurisdictional rates for $375 million of third-party uninsured claims payments. The SED Agreement provides that SCE may, on a permanent basis, exclude from its ratemaking capital structure any after-tax charges to equity or debt borrowed to finance costs incurred under the SED Agreement. The SED Agreement also imposes other obligations on SCE, including reporting requirements and safety-focused studies. SCE's obligations under the SED Agreement commenced on August 15, 2022, when CPUC approval of the SED Agreement became final and non-appealable. SCE did not admit imprudence, negligence or liability with respect to the 2017/2018 Wildfire/Mudslide Events in the SED Agreement. Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates At June 30, 2023 and December 31, 2022, Edison International's and SCE's consolidated balance sheets included fixed payments to be made under executed settlement agreements and accrued estimated losses of $702 million and $1.1 billion, respectively, for the 2017/2018 Wildfire/Mudslide Events. The following table presents changes in estimated losses since December 31, 2022: (in millions) Balance at December 31, 2022 1 $ 1,119 Increase in accrued estimated losses 90 Amounts paid (507) Balance at June 30, 2023 2 $ 702 1 At December 31, 2022, $121 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $65 million of settlements executed and $56 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2022, the $1,687 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $934 million, $64 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $689 million. 2 At June 30, 2023, $71 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $65 million of settlements executed and $6 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At June 30, 2023, the $1,309 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $572 million, $59 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $678 million. For the three months and six months ended June 30, 2023 and 2022, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Charge for wildfire-related claims $ — $ — $ 90 $ 416 Expected revenue from FERC customers — — (6) (26) Total pre-tax charge — — 84 390 Income tax benefit — — (23) (109) Total after-tax charge $ — $ — $ 61 $ 281 For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE had $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. For the Woolsey Fire, SCE had an additional $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. In total, through June 30, 2023, SCE has accrued estimated losses of $8.8 billion, has paid or is obligated to pay approximately $8.3 billion in settlements, including $65 million to be paid under the SED Agreement, and has recovered $2.0 billion from its insurance carriers in relation to the 2017/2018 Wildfire/Mudslide Events. Recovery of SCE's losses realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance 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 San Diego Gas & Electric's ("SDG&E") requests for cost recovery related to 2007 wildfire activity, where the 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 wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a conclusion that recovery is probable. 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 total expected recoveries of $382 million within the FERC balancing account. This was the FERC portion of the total estimated losses accrued. As of June 30, 2023, collections have reduced the regulatory assets remaining in the FERC balancing account to $43 million. In July 2019, SCE filed a CEMA application with the CPUC to seek recovery of, among other things, approximately $60 million of capital expenditures and capital related expenses incurred to restore service to customers and to repair, replace and restore buildings and SCE's facilities damaged or destroyed as a result of six 2017 fires, primarily the Thomas and Koenigstein Fires. In August 2021, the CPUC issued a final decision which denied without prejudice SCE's application to recover a revenue requirement of $8 million for all six 2017 wildfires on the basis that SCE did not demonstrate that it was prudent in relation to the Thomas and Rye fires and had failed to segregate the costs attributable to the other four fires. Of the $8 million revenue requirement that was denied, $6 million was for the Thomas and Rye fires. CAL FIRE has determined that the Thomas and Rye fires were caused by SCE equipment. The decision allows SCE to submit additional applications with the CPUC to recover the costs associated with the Thomas and Rye fires, does not specify a deadline for any such applications, and directs that SCE must prove it was prudent in relation to the Thomas and/or Rye fires, as applicable, in any such future applications. As required by the final decision with respect to the other four fires, SCE filed supplemental testimony in November 2021 segregating the restoration costs attributable to each such fire. In June 2022, the CPUC approved SCE's entire request with respect to the other four fires. As of June 30, 2023, SCE has $173 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events which may not be recoverable. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in future cost recovery proceedings. SCE expects to seek to recover costs incurred for reconstructing its system and restoring service to structures that were damaged or destroyed by the Thomas, Koenigstein and Woolsey Fires in future applications with the CPUC. Post-2018 Wildfires Several wildfires have significantly impacted portions of SCE's service territory after 2018 (the wildfires that originated in Southern California after 2018 where SCE's equipment may be alleged to be associated with the fire's ignition are referred to collectively as the "Post-2018 Wildfires"). Numerous claims related to the Post-2018 Wildfires have been initiated against SCE and Edison International. The SED is also conducting investigations with respect to several Post-2018 Wildfires. Through SCE has recorded and expected recoveries through electric rates of $166 million related to the Post-2018 Wildfires. The after-tax net charges to earnings recorded through June 30, 2023 have been $45 million. As of June 30, 2023, SCE had paid $30 million under executed settlements related to the Post-2018 Wildfires and Edison International's and SCE's estimated losses for remaining alleged and potential claims related to the Post-2018 Wildfires was $672 million. As of the same date, SCE had assets for expected recoveries through insurance of $466 million and through electric rates of $166 million on its consolidated balance sheets related to the Post-2018 Wildfires. Expected recoveries from insurance recorded for the Post-2018 Wildfires are supported by SCE's insurance coverage for multiple policy years. 2019 Saddle Ridge Fire The "Saddle Ridge Fire," originated in Los Angeles County in October 2019 and burned approximately 9,000 acres, destroyed an estimated 19 structures, damaged an estimated 88 structures, and resulted in one fatality and injuries to 8 fire fighters. In an unsigned and undated report that SCE received in December 2022, the Los Angeles Fire Department stated with respect to the Saddle Ridge Fire that the cause of ignition was unintentional, the form of heat was undetermined, the item first ignited was undetermined and the material type first ignited was undetermined. The Los Angeles Fire Department report noted that no other competent ignition sources other than SCE’s transmission lines were found in the specific origin area of the Saddle Ridge Fire. SCE has been advised that the Los Angeles Fire Department investigation of the Saddle Ridge Fire remains open. A jury trial in the Saddle Ridge Fire litigation is currently set for January 2024. Based on pending litigation and without considering insurance recoveries, it is reasonably possible that SCE will incur a material loss in connection with the Saddle Ridge Fire, but the range of reasonably possible losses that could be incurred cannot be estimated at this time. SCE has not accrued a charge for potential losses relating to the Saddle Ridge Fire. 2020 Bobcat Fire The "Bobcat Fire" was reported in the vicinity of Cogswell Dam in Los Angeles County in September 2020. The United States Forest Service ("USFS") has reported that the Bobcat Fire burned approximately 116,000 acres in Los Angeles County, destroyed an estimated 87 homes, 1 commercial property and 83 minor structures, damaged an estimated 28 homes and 19 minor structures, and resulted in injuries to 6 firefighters. In addition, fire authorities have estimated suppression costs at $80 million. An investigation into the cause of the Bobcat Fire was led by the USFS. In May 2023, SCE received a report of investigation from the USFS, in which the USFS finds that the Bobcat Fire was caused when an SCE electrical wire made contact with a tree limb. A jury trial in the Bobcat Fire litigation is currently set for January 2024. 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 process. SCE has accrued material charges for potential losses relating to the Bobcat Fire. The accrued charges correspond to the lower end of the estimated range of reasonably possible losses that may be incurred in connection with the Bobcat Fire and are subject to change as additional information becomes available. While Edison International and SCE may incur a material loss in excess of the amount accrued, they cannot estimate the upper end of the range of reasonably possible losses that may be incurred. 2022 Coastal Fire The "Coastal Fire" originated in Orange County in May 2022 and burned approximately 200 acres. The Orange County Fire Authority ("OCFA") has reported that the Coastal Fire destroyed 20 residential structures and damaged 11 residential structure |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity | |
Equity | Note 13. Equity Common Stock Issuances As of June 30, 2023, Edison International has not issued any shares through its "at-the-market" ("ATM") program established in August 2022. Under the ATM program, Edison International may sell shares of its common stock having an aggregate sales price of up to . Edison International continued to settle its ongoing common stock requirements of various internal programs through issuance of new common stock. During the three months ended June 30, 2023, 484,041 shares of common stock were issued as stock compensation awards for net cash receipts of $28 million, 60,691 shares of new common stock were issued in lieu of distributing $4 million to shareholders opting to receive dividend payments in the form of additional common stock and 41,000 shares of common stock were issued to employees through the 401(k) defined contribution savings plan for net cash receipts of $3 million as dividend payments. During the six months ended June 30, 2023, 808,479 shares of common stock were issued as stock compensation awards for net cash receipts of $39 million, 128,005 shares of new common stock were issued in lieu of distributing $9 million to shareholders opting to receive dividend payments in the form of additional common stock, 70,000 shares of common stock were issued to employees through the 401(k) defined contribution savings plan for net cash receipts of $5 million as dividend payments and 26,481 shares of common stock were issued to employees through the ESPP for net cash receipts of $2 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 14. Accumulated Other Comprehensive Loss Edison International's accumulated other comprehensive loss, net of tax, consist of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Beginning balance $ (9) $ (52) $ (11) $ (54) Pension and PBOP: Reclassified from accumulated other comprehensive loss 1 1 4 1 6 Foreign currency translation adjustments — — 2 — Change 1 4 3 6 Ending Balance $ (8) $ (48) $ (8) $ (48) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . SCE's accumulated other comprehensive loss, net of tax, consists of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Beginning balance $ (8) $ (31) $ (8) $ (32) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 — 3 — 4 Change — 3 — 4 Ending Balance $ (8) $ (28) $ (8) $ (28) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . |
Other Income
Other Income | 6 Months Ended |
Jun. 30, 2023 | |
Other Income | |
Other Income | Note 15. Other Income Other income net of expenses is as follows: Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 SCE other income (expense): Equity allowance for funds used during construction $ 39 $ 30 $ 75 $ 61 Increase in cash surrender value of life insurance policies and life insurance benefits 9 6 20 21 Interest income 66 15 126 17 Net periodic benefit income – non-service components 26 31 52 65 Civic, political and related activities and donations (7) (9) (16) (18) Other (6) (5) (10) (7) Total SCE other income 127 68 247 139 Other income (expense) of Edison International Parent and Other: Net loss on equity securities — (4) (3) (6) Other 1 2 3 1 Total Edison International other income $ 128 $ 66 $ 247 $ 134 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flows Information | |
Supplemental Cash Flows Information | Note 16. Supplemental Cash Flows Information Supplemental cash flows information is: Edison International SCE Six months ended June 30, (in millions) 2023 2022 2023 2022 Cash payments (receipts): Interest, net of amounts capitalized $ 634 $ 438 $ 520 $ 375 Income taxes, net — (60) — (42) Non-cash financing and investing activities: Dividends declared but not paid: Common stock 283 267 350 325 Preference stock of SCE 8 5 8 5 SCE's accrued capital expenditures at June 30, 2023 and 2022 were $489 million and $609 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flows in the period paid. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions | |
Related-Party Transactions | Note 17. Related-Party Transactions SCE has previously purchased wildfire liability insurance from EIS, a wholly-owned subsidiary of Edison International. In July 2022, SCE purchased wildfire liability insurance for premiums of $273 million, from EIS for the period to June 30, 2023. EIS fully reinsured the exposure for these policies through the commercial reinsurance market, with reinsurance limits and premiums equal to those of the insurance purchased by SCE, except for a contract for a premium of $93 million under which EIS provided insurance protection to SCE. SCE recorded the premium as insurance expense and recorded equal revenue due to customer funding through regulatory cost recovery mechanisms, therefore there was no earnings impact on SCE's consolidated statement of income. EIS recorded the premium as insurance revenue. On the Edison International consolidated statement of income, the EIS insurance revenue eliminated with SCE's insurance expense, therefore the SCE customer revenues increased the earnings of Edison International. The amount of insurance expense and corresponding revenue was $22 million for the three months ended June 30, 2023 and $44 million for the six months ended June 30, 2023. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS and related expected insurance recoveries were as follows: June 30, December 31, (in millions) 2023 2022 Prepaid insurance 1 $ — $ 106 Long-term insurance receivable due from affiliate 334 334 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The expense for wildfire-related insurance premiums paid to EIS was $66 million and $40 million for the three months ended June 30, 2023 and 2022, respectively, and $132 million and $79 million for the six months ended June 30, 2023 and 2022, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC ("Edison Energy"). 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 is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional 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 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, its controlled subsidiaries and a variable interest entity, SCE Recovery Funding LLC., of which SCE is the primary beneficiary. 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, 2022 (the "2022 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2022 Form 10-K. In the opinion of management, all adjustments, consisting only of adjustments of a normal recurring nature, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year. The December 31, 2022 financial statement data was derived from the audited financial statements, but does not include all disclosures required by GAAP for complete annual financial statements. Certain prior period amounts have been conformed to the current period's presentation, including the separate presentation of common stock and preference stock dividends in SCE's consolidated statements of cash flows. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of 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 June 30, December 31, June 30, December 31, (in millions) 2023 2022 2023 2022 Money market funds $ 123 $ 784 $ 5 $ 647 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. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: June 30, December 31, (in millions) 2023 2022 Edison International: Cash and cash equivalents $ 195 $ 914 Short-term restricted cash 1 3 3 Total cash, cash equivalents and restricted cash $ 198 $ 917 1 Reflected in "Other current assets" on Edison International's consolidated balance sheets. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. The following table sets forth the changes in allowance for uncollectible accounts for SCE: Three months ended Three months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 326 $ 18 $ 344 $ 337 $ 16 $ 353 Current period provision for uncollectible accounts 2 20 1 21 37 2 39 Write-offs, net of recoveries (20) (2) (22) (10) (1) (11) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 Six months ended Six months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 334 $ 20 $ 354 1 $ 293 $ 16 $ 309 Current period provision for uncollectible accounts 3 40 1 41 91 9 100 Write-offs, net of recoveries (48) (4) (52) (20) (8) (28) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 1 Approximately $8 million and $7 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. 2 This includes $13 million and $17 million of incremental costs, for the three months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. 3 This includes $27 million and $58 million of incremental costs, for the six months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. |
Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 13 for further information. EPS attributable to Edison International common shareholders was computed as follows: Three months ended June 30, Six months ended June 30, (in millions, except per-share amounts) 2023 2022 2023 2022 Basic earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Weighted average common shares outstanding 383 381 383 381 Basic earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 Diluted earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Income impact of assumed conversions — — 1 — Net income available to common shareholders and assumed conversions $ 354 $ 241 $ 665 $ 325 Weighted average common shares outstanding 383 381 383 381 Incremental shares from assumed conversions 2 2 2 1 Adjusted weighted average shares – diluted 385 383 385 382 Diluted earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 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 2,046,312 and 3,990,270 shares of common stock for the three months ended June 30, 2023 and 2022, respectively, and 3,230,213 and 5,261,914 shares of common stock for the six months ended June 30, 2023 and 2022, respectively were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. |
Revenue Recognition | Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. Regulatory Proceedings FERC 2023 Formula Rate Update In November 2022, SCE filed its 2023 annual update with the FERC with the proposed rates effective January 1, 2023, subject to settlement procedures and refund. Pending resolution of the FERC formula rate proceedings, SCE recognized revenue in the first six months of 2023 based on the FERC 2023 annual update rate, subject to refund. |
Edison Carrier Solutions | Edison Carrier Solutions SCE operates commercial telecommunications service under the name of Edison Carrier Solutions ("ECS"), leveraging the temporarily available capacity of SCE's telecommunications network. As technology evolves, management is implementing strategic shifts in ECS services, including potential disposition of assets and ceasing to offer certain wire data services. ECS has notified affected customers of its intent to discontinue certain services over time and gave customers the option to discontinue those services. As a result of customer cancellations in the quarter ended June 30, 2023, materials and supplies inventory supporting data services are expected to be sold instead of placed into service and have been written-down to net realizable value, resulting in a charge of $13 million. Labor and other costs of $4 million previously recorded as construction work in progress for projects no longer probable of completion were also charged to expense in the period. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Cash Equivalents | Edison International SCE June 30, December 31, June 30, December 31, (in millions) 2023 2022 2023 2022 Money market funds $ 123 $ 784 $ 5 $ 647 |
Cash, Cash Equivalents and Restricted Cash | June 30, December 31, (in millions) 2023 2022 Edison International: Cash and cash equivalents $ 195 $ 914 Short-term restricted cash 1 3 3 Total cash, cash equivalents and restricted cash $ 198 $ 917 1 Reflected in "Other current assets" on Edison International's consolidated balance sheets. |
Changes in Allowance for Uncollectible Accounts | Three months ended Three months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 326 $ 18 $ 344 $ 337 $ 16 $ 353 Current period provision for uncollectible accounts 2 20 1 21 37 2 39 Write-offs, net of recoveries (20) (2) (22) (10) (1) (11) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 Six months ended Six months ended June 30, 2023 June 30, 2022 (in millions) Customers All others Total Customers All others Total Beginning balance $ 334 $ 20 $ 354 1 $ 293 $ 16 $ 309 Current period provision for uncollectible accounts 3 40 1 41 91 9 100 Write-offs, net of recoveries (48) (4) (52) (20) (8) (28) Ending balance $ 326 $ 17 $ 343 1 $ 364 $ 17 $ 381 1 Approximately $8 million and $7 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of June 30, 2023 and December 31, 2022, respectively. 2 This includes $13 million and $17 million of incremental costs, for the three months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. 3 This includes $27 million and $58 million of incremental costs, for the six months ended June 30, 2023 and 2022, respectively, which were probable of recovery from customers and recorded as regulatory assets. |
EPS Attributable to Edison International Common Shareholders | Three months ended June 30, Six months ended June 30, (in millions, except per-share amounts) 2023 2022 2023 2022 Basic earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Weighted average common shares outstanding 383 381 383 381 Basic earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 Diluted earnings per share: Net income attributable to common shareholders $ 354 $ 241 $ 664 $ 325 Net income available to common shareholders $ 354 $ 241 $ 664 $ 325 Income impact of assumed conversions — — 1 — Net income available to common shareholders and assumed conversions $ 354 $ 241 $ 665 $ 325 Weighted average common shares outstanding 383 381 383 381 Incremental shares from assumed conversions 2 2 2 1 Adjusted weighted average shares – diluted 385 383 385 382 Diluted earnings per share $ 0.92 $ 0.63 $ 1.73 $ 0.85 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of Changes in Equity | The following table provides Edison International's changes in equity for the three and six months ended June 30, 2023: Noncontrolling Equity Attributable to Edison International Shareholders Interests Accumulated Other Preferred Common Comprehensive Retained Preference Total (in millions, except per share amounts) Stock Stock Loss Earnings Subtotal Stock Equity Balance at December 31, 2022 $ 1,978 $ 6,200 $ (11) $ 7,454 $ 15,621 $ 1,901 $ 17,522 Net income — — — 336 336 29 365 Other comprehensive income — — 2 — 2 — 2 Common stock issued, net of issuance cost — 15 — — 15 — 15 Common stock dividends declared ($0.7375 per share) — — — (282) (282) — (282) Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B) — — — (52) (52) — (52) Dividends to noncontrolling interests ($22.281 - $35.937 per share for preference stock) — — — — — (29) (29) Noncash stock-based compensation — 8 — — 8 — 8 Balance at March 31, 2023 $ 1,978 $ 6,223 $ (9) $ 7,456 $ 15,648 $ 1,901 $ 17,549 Net income — — — 380 380 29 409 Other comprehensive income — — 1 — 1 — 1 Common stock issued, net of issuance cost — 35 — — 35 — 35 Common stock dividends declared ($0.7375 per share) — — — (283) (283) — (283) Dividends to noncontrolling interests ($24.273 - $35.937 per share for preference stock) — — — — — (29) (29) Noncash stock-based compensation — 12 — — 12 — 12 Balance at June 30, 2023 $ 1,978 $ 6,270 $ (8) $ 7,553 $ 15,793 $ 1,901 $ 17,694 The following table provides Edison International's changes in equity for the three and six months ended June 30, 2022: Noncontrolling Equity Attributable to Edison International Shareholders Interests Accumulated Other Preferred Common Comprehensive Retained Preference Total (in millions, except per share amounts) Stock Stock Loss Earnings Subtotal Stock Equity Balance at December 31, 2021 $ 1,977 $ 6,071 $ (54) $ 7,894 $ 15,888 $ 1,901 $ 17,789 Net income — — — 110 110 26 136 Other comprehensive income — — 2 — 2 — 2 Common stock issued, net of issuance cost — 12 — — 12 — 12 Common stock dividends declared ($0.7000 per share) — — — (267) (267) — (267) Preferred stock dividend declared ($26.875 per share for Series A and $17.08333 per share for Series B) — — — (21) (21) — (21) Dividends to noncontrolling interests ($11.160 - $35.937 per share for preference stock) — — — — — (26) (26) Noncash stock-based compensation — 7 — — 7 — 7 Balance at March 31, 2022 $ 1,977 $ 6,090 $ (52) $ 7,716 $ 15,731 $ 1,901 $ 17,632 Net income — — — 267 267 25 292 Other comprehensive income — — 4 — 4 — 4 Common stock issued, net of issuance cost — 27 — — 27 — 27 Common stock dividends declared ($0.7000 per share) — — — (267) (267) — (267) Dividends to noncontrolling interests ($14.017 - $35.937 per share for preference stock) — — — — — (25) (25) Noncash stock-based compensation — 12 — — 12 — 12 Balance at June 30, 2022 $ 1,977 $ 6,129 $ (48) $ 7,716 $ 15,774 $ 1,901 $ 17,675 |
SCE | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of Changes in Equity | The following table provides SCE's changes in equity for the three and six months ended June 30, 2023: Accumulated Additional Other Preference Common Paid-in Comprehensive Retained Total (in millions, except per share amounts) Stock Stock Capital Loss Earnings Equity Balance at December 31, 2022 $ 1,945 $ 2,168 $ 8,441 $ (8) $ 8,243 $ 20,789 Net income — — — — 399 399 Dividends declared on common stock ($0.8048 per share) — — — — (350) (350) Dividends on preference stock ($22.281 - $35.937 per share) — — — — (29) (29) Stock-based compensation — — (8) — — (8) Noncash stock-based compensation — — 5 — 1 6 Balance at March 31, 2023 $ 1,945 $ 2,168 $ 8,438 $ (8) $ 8,264 $ 20,807 Net income — — — — 449 449 Dividends declared on common stock ($0.8048 per share) — — — — (350) (350) Dividends declared on preference stock ($24.273 - $35.937 per share) — — — — (29) (29) Stock-based compensation — — (3) — — (3) Noncash stock-based compensation — — 7 — — 7 Balance at June 30, 2023 $ 1,945 $ 2,168 $ 8,442 $ (8) $ 8,334 $ 20,881 The following table provides SCE's changes in equity for the three and six months ended June 30, 2022: Accumulated Additional Other Preference Common Paid-in Comprehensive Retained Total (in millions, except per share amounts) Stock Stock Capital Loss Earnings Equity Balance at December 31, 2021 $ 1,945 $ 2,168 $ 7,033 $ (32) $ 8,721 $ 19,835 Net income — — — — 173 173 Other comprehensive income — — — 1 — 1 Dividends declared on common stock ($0.7473 per share) — — — — (325) (325) Dividends declared on preference stock ($11.160 - $35.937 per share) — — — — (26) (26) Stock-based compensation — — (9) — — (9) Noncash stock-based compensation — — 4 — (1) 3 Balance at March 31, 2022 $ 1,945 $ 2,168 $ 7,028 $ (31) $ 8,542 $ 19,652 Net income — — — — 327 327 Other comprehensive income — — — 3 — 3 Capital contribution from Edison International Parent — — 700 — — 700 Dividends declared on common stock ($0.7473 per share) — — — — (325) (325) Dividends declared on preferred and preference stock ($14.017 - $35.937 per share for preference stock) — — — — (25) (25) Stock-based compensation — — (1) — — (1) Noncash stock-based compensation — — 5 — 1 6 Balance at June 30, 2022 $ 1,945 $ 2,168 $ 7,732 $ (28) $ 8,520 $ 20,337 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entities | |
Summary of SCE Recovery Funding LLC on balance sheets | June 30, December 31, (in millions) 2023 2022 Other current assets $ 38 $ 45 Regulatory assets: non-current 1,585 834 Regulatory liabilities: current 10 33 Current portion of long-term debt 1 54 29 Other current liabilities 11 4 Long-term debt 1 1,539 809 1 The bondholders have no recourse to SCE. The long-term debt balance is net of unamortized debt issuance costs. |
Summary of the Trusts' Income Statements | Three months ended June 30, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2023 Dividend income $ 3 $ 4 $ 5 $ 4 $ 6 Dividend distributions 3 4 5 4 6 2022 Dividend income $ 3 $ 4 $ 5 $ 4 $ 6 Dividend distributions 3 4 5 4 6 Six months ended June 30, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2023 Dividend income $ 6 $ 8 $ 9 $ 8 $ 12 Dividend distributions 6 8 9 8 12 2022 Dividend income $ 6 $ 8 $ 9 $ 8 $ 12 Dividend distributions 6 8 9 8 12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value by Level within the Fair Value Hierarchy | June 30, 2023 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 11 $ 13 $ (11) $ 13 Money market funds and other 5 22 — — 27 Nuclear decommissioning trusts: Stocks 2 1,632 — — — 1,632 Fixed Income 3 936 1,404 — — 2,340 Short-term investments, primarily cash equivalents 219 31 — — 250 Subtotal of nuclear decommissioning trusts 4 2,787 1,435 — — 4,222 Total assets 2,792 1,468 13 (11) 4,262 Liabilities at fair value Derivative contracts — 62 1 (63) — Total liabilities — 62 1 (63) — Net assets $ 2,792 $ 1,406 $ 12 $ 52 $ 4,262 December 31, 2022 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 392 $ 67 $ (218) $ 241 Money market funds and other 647 22 — — 669 Nuclear decommissioning trusts: Stocks 2 1,610 — — — 1,610 Fixed Income 3 941 1,281 — — 2,222 Short-term investments, primarily cash equivalents 137 64 — — 201 Subtotal of nuclear decommissioning trusts 4 2,688 1,345 — — 4,033 Total assets 3,335 1,759 67 (218) 4,943 Liabilities at fair value Derivative contracts — 116 4 (119) 1 Total liabilities — 116 4 (119) 1 Net assets $ 3,335 $ 1,643 $ 63 $ (99) $ 4,942 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 75% and 74% SCE's equity investments were in companies located in the United States at June 30, 2023 and December 31, 2022, respectively. 3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $77 million and $49 million at June 30, 2023 and December 31, 2022, respectively. 4 Excludes net payables of $96 million and $85 million at June 30, 2023 and December 31, 2022, 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 level 3 fair value changes | Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Fair value of net assets at beginning of period $ 47 $ 39 $ 63 $ 44 Sales (1) (6) (1) (6) Settlements (12) (26) (24) (29) Total realized/unrealized (losses)/gains 1 (22) 25 (26) 23 Fair value of net assets at end of period $ 12 $ 32 $ 12 $ 32 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. |
Valuation techniques and significant inputs | Fair Value Significant Weighted (in millions) Valuation Unobservable Range Average Assets Liabilities Technique Input (per MWh) (per MWh) Congestion revenue rights June 30, 2023 $ 13 $ 1 Auction prices CAISO CRR auction prices $(7.54) - $47.91 $ 0.56 December 31, 2022 67 4 Auction prices CAISO CRR auction prices (7.91) - 3,856.67 1.64 |
Long-term debt fair value | June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 32,319 $ 29,670 $ 29,639 $ 26,824 SCE 28,247 25,618 26,258 23,469 1 Carrying value is net of debt issuance costs. 2 The fair value of long-term debt is classified as Level 2. |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt and Credit Agreements | |
Summary for Status of Credit Facilities | (in millions, except for rates) Borrower Termination Date Secured Overnight Financing Rate ("SOFR") plus (bps) Commitment Outstanding borrowings Outstanding letters of credit Amount available Edison International Parent 1, 3 May 2027 128 $ 1,500 $ 387 $ — $ 1,113 SCE 2, 3 May 2027 108 3,350 785 122 2,443 Total Edison International $ 4,850 $ 1,172 $ 122 $ 3,556 1 At June 30, 2023, Edison International Parent had $387 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.84% . 2 At June 30, 2023, SCE had $785 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.63% . 3 In May 2023, Edison International Parent and SCE amended their credit facilities to extend the maturity date to May 2027, with two additional one year extension options. The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments | |
Schedule of derivative assets financial position | June 30, 2023 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Net Assets Commodity derivative contracts Gross amounts recognized $ 24 $ 63 $ (39) Gross amounts offset in the consolidated balance sheets (11) (11) — Cash collateral posted — (52) 52 Net amounts presented in the consolidated balance sheets $ 13 $ — $ 13 December 31, 2022 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term 2 Net Assets Commodity derivative contracts Gross amounts recognized $ 459 $ 120 $ 339 Gross amounts offset in the consolidated balance sheets (119) (119) — Cash collateral received (99) — (99) Net amounts presented in the consolidated balance sheets $ 241 $ 1 $ 240 1 Included in "Other current assets" on SCE's consolidated balance sheets. 2 Included in "Other current liabilities" on SCE's consolidated balance sheets. |
Schedule of gains/(losses) of SCE's economic hedging activity | Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Realized $ (7) $ 129 $ 109 $ 110 Unrealized (114) (88) (378) (35) |
Schedule of notional volumes of derivatives | Unit of Economic Hedges Commodity Measure June 30, 2023 December 31, 2022 Electricity options, swaps and forwards Gigawatt hours 2,364 1,022 Natural gas options, swaps and forwards Billion cubic feet 45 42 Congestion revenue rights Gigawatt hours 24,290 44,028 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue | |
Summary of Revenue | Three months ended June 30, 2023 Three months ended June 30, 2022 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenue from contracts with customers 1,2 $ 2,043 $ 1,546 $ 3,589 $ 1,978 $ 2,022 $ 4,000 Alternative revenue programs and other operating revenue 3 124 236 360 186 (190) (4) Total operating revenue $ 2,167 $ 1,782 $ 3,949 $ 2,164 $ 1,832 $ 3,996 Six months ended June 30, 2023 Six months ended June 30, 2022 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenues from contracts with customers 1,2 $ 4,119 $ 3,206 $ 7,325 $ 3,963 $ 3,397 $ 7,360 Alternative revenue programs and other operating revenue 3 281 293 574 468 129 597 Total operating revenue $ 4,400 $ 3,499 $ 7,899 $ 4,431 $ 3,526 $ 7,957 1 SCE recorded CPUC revenue based on an annual revenue requirement set by a methodology established in the GRC proceeding and FERC revenue authorized through a formula rate. For further information, see Note 1. 2 At June 30, 2023 and December 31, 2022, SCE's receivables related to contracts from customers were $2.3 billion for both periods, which include accrued unbilled revenue of $756 million and $638 million, respectively. 3 Includes differences between amounts billed and authorized levels for both the CPUC and FERC. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Summary of reconciliation of income tax expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Edison International: Income from operations before income taxes $ 460 $ 299 $ 838 $ 380 Provision for income tax at federal statutory rate of 21% 97 63 176 80 Increase (decrease) in income tax from: State tax, net of federal benefit 1 (4) — (21) Property-related (47) (48) (105) (93) Other — (4) (7) (14) Total income tax expense (benefit) $ 51 $ 7 $ 64 $ (48) Effective tax rate 11.1 % 2.3 % 7.6 % (12.6) % SCE: Income from operations before income taxes $ 517 $ 349 $ 945 $ 482 Provision for income tax at federal statutory rate of 21% 109 73 198 101 Increase (decrease) in income tax from: State tax, net of federal benefit 8 — 11 (13) Property-related (47) (48) (105) (93) Other (2) (3) (7) (13) Total income tax expense (benefit) $ 68 $ 22 $ 97 $ (18) Effective tax rate 13.2 % 6.3 % 10.3 % (3.7) % |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Summary of expense components for plans | Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Edison International: Service cost $ 25 $ 30 $ 50 $ 60 Non-service cost (benefit) Interest cost 45 27 90 54 Expected return on plan assets (54) (57) (108) (114) Settlement costs — 3 — 3 Amortization of net loss 1 1 1 2 2 Regulatory adjustment (12) 2 (24) 4 Total non-service benefit 2 $ (20) $ (24) $ (40) $ (51) Total expense $ 5 $ 6 $ 10 $ 9 SCE: Service cost $ 24 $ 29 $ 48 $ 58 Non-service cost (benefit) Interest cost 42 25 84 50 Expected return on plan assets (51) (54) (102) (108) Settlement costs — 3 — 3 Amortization of net loss 1 — 1 — 2 Regulatory adjustment (12) 2 (24) 4 Total non-service benefit 2 $ (21) $ (23) $ (42) $ (49) Total expense $ 3 $ 6 $ 6 $ 9 1 Represents the amount of net loss reclassified from other comprehensive loss. 2 Included in "Other Income" on Edison International's and SCE’s consolidated statements of income. |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Summary of expense components for plans | Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 Service cost $ 5 $ 8 $ 10 $ 16 Non-service cost (benefit) Interest cost 18 14 36 28 Expected return on plan assets (27) (24) (54) (48) Amortization of net gain (12) (12) (24) (24) Regulatory adjustment 16 14 32 28 Total non-service benefit 1 $ (5) $ (8) $ (10) $ (16) Total expense $ — $ — $ — $ — 1 Included in "Other income" on Edison International ' s and SCE ' s consolidated statements of income . |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments | |
Summary of amortized cost and fair value of the trust investments | Amortized Costs Fair Values Longest June 30, December 31, June 30, December 31, (in millions) Maturity Dates 2023 2022 2023 2022 Municipal bonds 2061 $ 617 $ 672 $ 704 $ 754 Government and agency securities 2073 1,151 1,025 1,222 1,091 Corporate bonds 2070 386 351 414 377 Short-term investments and receivables/payables 1 One-year 146 110 154 116 Total debt securities and other $ 2,300 $ 2,158 2,494 2,338 Equity securities 1,632 1,610 Total $ 4,126 $ 3,948 1 Short-term investments included $9 million and $41 million of repurchase agreements payable by financial institutions which earn interest, were fully and 97% secured by U.S. Treasury securities and mature by July 3, 2023 and January 3, 2023 as of June 30, 2023 and December 31, 2022, respectively. |
Summary of gains and losses | Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Gross realized gains $ 124 $ 74 $ 195 $ 89 Gross realized losses (8) (45) (31) (61) Net unrealized (losses)/gains for equity securities (11) (332) 64 (432) |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Assets and Liabilities | |
Regulatory assets | June 30, December 31, (in millions) 2023 2022 Current: Regulatory balancing and memorandum accounts $ 3,574 $ 2,400 Power contracts 23 71 Energy derivatives 39 — Other 20 26 Total current 3,656 2,497 Long-term: Deferred income taxes, net of liabilities 5,366 5,178 Unamortized investments, net of accumulated amortization 110 113 Unamortized loss on reacquired debt 103 109 Regulatory balancing and memorandum accounts 1,107 1,589 Environmental remediation 234 241 Recovery assets 1,585 834 Other 116 117 Total long-term 8,621 8,181 Total regulatory assets $ 12,277 $ 10,678 |
Regulatory liabilities | June 30, December 31, (in millions) 2023 2022 Current: Regulatory balancing and memorandum accounts $ 779 $ 584 Energy derivatives — 338 Other 18 42 Total current 797 964 Long-term: Costs of removal 2,705 2,589 Re-measurement of deferred taxes 2,224 2,250 Recoveries in excess of ARO liabilities 1,444 1,231 Regulatory balancing and memorandum accounts 1,353 1,116 Pension and other postretirement benefits 992 1,007 Other 17 18 Total long-term 8,735 8,211 Total regulatory liabilities $ 9,532 $ 9,175 |
Schedule of Regulatory Balancing Accounts | June 30, December 31, (in millions) 2023 2022 Asset (liability) Energy resource recovery account $ (471) $ 1,580 Portfolio allocation balancing account 1,613 (73) New system generation balancing account 135 (63) Public purpose programs and energy efficiency programs (1,900) (1,577) Base revenue requirement balancing account 1,566 1,108 GRC wildfire mitigation balancing accounts 192 67 Residential uncollectibles balancing account 28 — Greenhouse gas auction revenue and low carbon fuel standard revenue (181) (289) FERC balancing accounts (114) (123) Wildfire and drought restoration accounts 383 352 Wildfire-related memorandum accounts 886 1,168 COVID-19-related memorandum accounts 69 67 Customer service re-platform memorandum account 70 64 Tax accounting memorandum account and pole loading balancing account 192 90 Excess bond and power charge balancing account 9 (56) Other 72 (26) Asset $ 2,549 $ 2,289 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
2017/2018 Wildfire/Mudslide Events | |
Commitments and Contingencies | |
Schedule of Contingency Accruals and Changes | (in millions) Balance at December 31, 2022 1 $ 1,119 Increase in accrued estimated losses 90 Amounts paid (507) Balance at June 30, 2023 2 $ 702 1 At December 31, 2022, $121 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $65 million of settlements executed and $56 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2022, the $1,687 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $934 million, $64 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $689 million. 2 At June 30, 2023, $71 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $65 million of settlements executed and $6 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At June 30, 2023, the $1,309 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets included Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events of $572 million, $59 million of long term payables under the SED Agreement and other wildfire-related claims estimates of $678 million. For the three months and six months ended June 30, 2023 and 2022, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Charge for wildfire-related claims $ — $ — $ 90 $ 416 Expected revenue from FERC customers — — (6) (26) Total pre-tax charge — — 84 390 Income tax benefit — — (23) (109) Total after-tax charge $ — $ — $ 61 $ 281 |
Post-2018 Wildfires | |
Commitments and Contingencies | |
Schedule of Contingency Accruals and Changes | The following table presents changes in estimated losses since December 31, 2022: (in millions) Balance at December 31, 2022 $ 682 Increase in accrued estimated losses 6 Amounts paid (16) Balance at June 30, 2023 $ 672 For the three months and six months ended June 30, 2023 and 2022, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from insurance and customers, related to the Post-2018 Wildfires as follows, respectively: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Edison International and SCE: Charge for wildfire-related claims $ — $ 45 $ 6 $ 150 Expected insurance recoveries — (43) — (139) Total pre-tax charge — 2 6 11 Income tax benefit — (1) (2) (3) Total after-tax charge $ — $ 1 $ 4 $ 8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Loss | |
Components of Accumulated Other Comprehensive Loss | Edison International's accumulated other comprehensive loss, net of tax, consist of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Beginning balance $ (9) $ (52) $ (11) $ (54) Pension and PBOP: Reclassified from accumulated other comprehensive loss 1 1 4 1 6 Foreign currency translation adjustments — — 2 — Change 1 4 3 6 Ending Balance $ (8) $ (48) $ (8) $ (48) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . SCE's accumulated other comprehensive loss, net of tax, consists of: Three months ended June 30, Six months ended June 30, (in millions) 2023 2022 2023 2022 Beginning balance $ (8) $ (31) $ (8) $ (32) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 — 3 — 4 Change — 3 — 4 Ending Balance $ (8) $ (28) $ (8) $ (28) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . |
Other Income (Tables)
Other Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income | |
Summary of Other Income | Other income net of expenses is as follows: Three months ended Six months ended June 30, June 30, (in millions) 2023 2022 2023 2022 SCE other income (expense): Equity allowance for funds used during construction $ 39 $ 30 $ 75 $ 61 Increase in cash surrender value of life insurance policies and life insurance benefits 9 6 20 21 Interest income 66 15 126 17 Net periodic benefit income – non-service components 26 31 52 65 Civic, political and related activities and donations (7) (9) (16) (18) Other (6) (5) (10) (7) Total SCE other income 127 68 247 139 Other income (expense) of Edison International Parent and Other: Net loss on equity securities — (4) (3) (6) Other 1 2 3 1 Total Edison International other income $ 128 $ 66 $ 247 $ 134 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flows Information | |
Summary of Supplemental Cash Flows Information | Supplemental cash flows information is: Edison International SCE Six months ended June 30, (in millions) 2023 2022 2023 2022 Cash payments (receipts): Interest, net of amounts capitalized $ 634 $ 438 $ 520 $ 375 Income taxes, net — (60) — (42) Non-cash financing and investing activities: Dividends declared but not paid: Common stock 283 267 350 325 Preference stock of SCE 8 5 8 5 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions | |
Schedule of Related-Party Transactions | June 30, December 31, (in millions) 2023 2022 Prepaid insurance 1 $ — $ 106 Long-term insurance receivable due from affiliate 334 334 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Organization) (Details) | 6 Months Ended |
Jun. 30, 2023 mi² | |
SCE | |
Organization | |
Supply of electricity area covered (in square miles) | 50,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Cash) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | $ 123 | $ 784 | ||
Cash and cash equivalents | 195 | 914 | ||
Short-term restricted cash | $ 3 | $ 3 | ||
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Total cash, cash equivalents, and restricted cash | $ 198 | $ 917 | $ 123 | $ 394 |
SCE | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | 5 | 647 | ||
Cash and cash equivalents | 68 | 766 | ||
Total cash, cash equivalents, and restricted cash | $ 68 | $ 766 | $ 67 | $ 280 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Allowance) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 344 | $ 353 | $ 354 | $ 309 | |
Accounts Receivable, Regulatory Assets, Credit Loss Expense (Reversal) | 13 | 17 | 27 | 58 | |
Current period provision for uncollectible accounts | 21 | 39 | 41 | 100 | |
Write-offs, net of recoveries | (22) | (11) | (52) | (28) | |
Ending balance | 343 | 381 | 343 | 381 | |
Allowance for long-term uncollectible accounts | 8 | 8 | $ 7 | ||
Customers | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 326 | 337 | 334 | 293 | |
Current period provision for uncollectible accounts | 20 | 37 | 40 | 91 | |
Write-offs, net of recoveries | (20) | (10) | (48) | (20) | |
Ending balance | 326 | 364 | 326 | 364 | |
All others | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 18 | 16 | 20 | 16 | |
Current period provision for uncollectible accounts | 1 | 2 | 1 | 9 | |
Write-offs, net of recoveries | (2) | (1) | (4) | (8) | |
Ending balance | $ 17 | $ 17 | $ 17 | $ 17 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic earnings per share: | ||||
Net income attributable to common shareholders | $ 354 | $ 241 | $ 664 | $ 325 |
Net income available to common shareholders | $ 354 | $ 241 | $ 664 | $ 325 |
Weighted average common shares outstanding (in shares) | 383,000,000 | 381,000,000 | 383,000,000 | 381,000,000 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 0.63 | $ 1.73 | $ 0.85 |
Diluted earnings per share: | ||||
Net income available to common shareholders | $ 354 | $ 241 | $ 664 | $ 325 |
Income impact of assumed conversions | 1 | |||
Net income available to common shareholders and assumed conversions | $ 354 | $ 241 | $ 665 | $ 325 |
Weighted average common shares outstanding (in shares) | 383,000,000 | 381,000,000 | 383,000,000 | 381,000,000 |
Incremental shares from assumed conversions (in shares) | 2,000,000 | 2,000,000 | 2,000,000 | 1,000,000 |
Adjusted weighted average shares - diluted (in shares) | 385,000,000 | 383,000,000 | 385,000,000 | 382,000,000 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 0.63 | $ 1.73 | $ 0.85 |
Stock Compensation Plan | ||||
Diluted earnings per share: | ||||
Antidilutive awards excluded from earnings per share (in shares) | 2,046,312 | 3,990,270 | 3,230,213 | 5,261,914 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Disposal) (Details) - Edison Carrier Solutions $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Discontinue | |
Materials and supplies impairment | $ 13 |
Construction work in progress write down | $ 4 |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 17,549 | $ 17,522 | $ 17,632 | $ 17,789 | $ 17,522 | $ 17,789 |
Net income | 409 | 365 | 292 | 136 | 774 | 428 |
Other comprehensive income | 1 | 2 | 4 | 2 | 3 | 6 |
Common stock issued, net of issuance cost | 35 | 15 | 27 | 12 | ||
Common stock dividends declared | (283) | (282) | (267) | (267) | ||
Preferred stock dividend declared | (52) | (21) | ||||
Dividends to noncontrolling interests | (29) | (29) | (25) | (26) | ||
Noncash stock-based compensation | 12 | 8 | 12 | 7 | ||
Ending Balance | $ 17,694 | $ 17,549 | $ 17,675 | $ 17,632 | 17,694 | 17,675 |
Dividends declared per common share (in dollars per share) | $ 0.7375 | $ 0.7375 | $ 0.7000 | $ 0.7000 | ||
Series A | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | 26.875 | 26.875 | ||||
Series B | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | $ 25 | $ 17.08333 | ||||
Preferred stock | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 1,978 | $ 1,978 | $ 1,977 | $ 1,977 | 1,978 | 1,977 |
Ending Balance | 1,978 | 1,978 | 1,977 | 1,977 | 1,978 | 1,977 |
Common Stock, Including APIC | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 6,223 | 6,200 | 6,090 | 6,071 | 6,200 | 6,071 |
Common stock issued, net of issuance cost | 35 | 15 | 27 | 12 | ||
Noncash stock-based compensation | 12 | 8 | 12 | 7 | ||
Ending Balance | 6,270 | 6,223 | 6,129 | 6,090 | 6,270 | 6,129 |
Accumulated Other Comprehensive Loss | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | (9) | (11) | (52) | (54) | (11) | (54) |
Other comprehensive income | 1 | 2 | 4 | 2 | ||
Ending Balance | (8) | (9) | (48) | (52) | (8) | (48) |
Retained Earnings | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 7,456 | 7,454 | 7,716 | 7,894 | 7,454 | 7,894 |
Net income | 380 | 336 | 267 | 110 | ||
Common stock dividends declared | (283) | (282) | (267) | (267) | ||
Preferred stock dividend declared | (52) | (21) | ||||
Ending Balance | 7,553 | 7,456 | 7,716 | 7,716 | 7,553 | 7,716 |
Equity Attributable to Common Shareholders | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 15,648 | 15,621 | 15,731 | 15,888 | 15,621 | 15,888 |
Net income | 380 | 336 | 267 | 110 | ||
Other comprehensive income | 1 | 2 | 4 | 2 | ||
Common stock issued, net of issuance cost | 35 | 15 | 27 | 12 | ||
Common stock dividends declared | (283) | (282) | (267) | (267) | ||
Preferred stock dividend declared | (52) | (21) | ||||
Noncash stock-based compensation | 12 | 8 | 12 | 7 | ||
Ending Balance | 15,793 | 15,648 | 15,774 | 15,731 | 15,793 | 15,774 |
Noncontrolling Interest | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 1,901 | 1,901 | 1,901 | 1,901 | 1,901 | 1,901 |
Net income | 29 | 29 | 25 | 26 | ||
Dividends to noncontrolling interests | (29) | (29) | (25) | (26) | ||
Ending Balance | $ 1,901 | $ 1,901 | $ 1,901 | $ 1,901 | 1,901 | 1,901 |
Noncontrolling Interest | Minimum | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | $ 24.273 | $ 22.281 | $ 14.017 | $ 11.160 | ||
Noncontrolling Interest | Maximum | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | $ 35.937 | $ 35.937 | $ 35.937 | $ 35.937 | ||
SCE | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 20,807 | $ 20,789 | $ 19,652 | $ 19,835 | 20,789 | 19,835 |
Net income | 449 | 399 | 327 | 173 | 848 | 500 |
Other comprehensive income | 3 | 1 | 4 | |||
Capital contribution from Edison International Parent | 700 | |||||
Common stock dividends declared | (350) | (350) | (325) | (325) | ||
Preferred stock dividend declared | (29) | (29) | (25) | (26) | ||
Stock-based compensation | (3) | (8) | (1) | (9) | ||
Noncash stock-based compensation | 7 | 6 | 6 | 3 | ||
Ending Balance | $ 20,881 | $ 20,807 | $ 20,337 | $ 19,652 | 20,881 | 20,337 |
Dividends declared per common share (in dollars per share) | $ 0.8048 | $ 0.8048 | $ 0.7473 | $ 0.7473 | ||
SCE | Minimum | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | 24.273 | 22.281 | 14.017 | 11.160 | ||
SCE | Maximum | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Preferred stock dividends (in dollars per share) | $ 35.937 | $ 35.937 | $ 35.937 | $ 35.937 | ||
SCE | Preferred stock | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | $ 1,945 | $ 1,945 | $ 1,945 | $ 1,945 | 1,945 | 1,945 |
Ending Balance | 1,945 | 1,945 | 1,945 | 1,945 | 1,945 | 1,945 |
SCE | Common stock | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 2,168 | 2,168 | 2,168 | 2,168 | 2,168 | 2,168 |
Ending Balance | 2,168 | 2,168 | 2,168 | 2,168 | 2,168 | 2,168 |
SCE | Additional Paid-in Capital | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 8,438 | 8,441 | 7,028 | 7,033 | 8,441 | 7,033 |
Capital contribution from Edison International Parent | 700 | |||||
Stock-based compensation | (3) | (8) | (1) | (9) | ||
Noncash stock-based compensation | 7 | 5 | 5 | 4 | ||
Ending Balance | 8,442 | 8,438 | 7,732 | 7,028 | 8,442 | 7,732 |
SCE | Accumulated Other Comprehensive Loss | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | (8) | (8) | (31) | (32) | (8) | (32) |
Other comprehensive income | 3 | 1 | ||||
Ending Balance | (8) | (8) | (28) | (31) | (8) | (28) |
SCE | Retained Earnings | ||||||
Increase (decrease) in Stockholders' Equity | ||||||
Beginning balance | 8,264 | 8,243 | 8,542 | 8,721 | 8,243 | 8,721 |
Net income | 449 | 399 | 327 | 173 | ||
Common stock dividends declared | (350) | (350) | (325) | (325) | ||
Preferred stock dividend declared | (29) | (29) | (25) | (26) | ||
Noncash stock-based compensation | 1 | 1 | (1) | |||
Ending Balance | $ 8,334 | $ 8,264 | $ 8,520 | $ 8,542 | $ 8,334 | $ 8,520 |
Variable Interest Entities (Rec
Variable Interest Entities (Recovery Funding) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Apr. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity | |||
Other current assets | $ 289 | $ 397 | |
Regulatory assets: non-current | 8,621 | 8,181 | |
Regulatory liabilities: current | 797 | 964 | |
Current portion of long-term debt | 2,889 | 2,614 | |
Other current liabilities | 1,631 | 1,601 | |
Long-term debt | 29,430 | 27,025 | |
SCE Recovery Funding LLC | |||
Variable Interest Entity | |||
Other current assets | 38 | 45 | |
Regulatory assets: non-current | 1,585 | 834 | |
Regulatory liabilities: current | 10 | 33 | |
Current portion of long-term debt | 54 | 29 | |
Other current liabilities | 11 | 4 | |
Long-term debt | 1,539 | 809 | |
SCE | |||
Variable Interest Entity | |||
Other current assets | 276 | 384 | |
Regulatory assets: non-current | 8,621 | 8,181 | |
Regulatory liabilities: current | 797 | 964 | |
Current portion of long-term debt | 2,889 | 2,214 | |
Other current liabilities | 1,611 | 1,578 | |
Long-term debt | 25,358 | 24,044 | |
SCE | SCE Recovery Funding LLC | |||
Variable Interest Entity | |||
Debt carrying amount | 1,600 | ||
Debt, face amount | $ 775 | ||
Regulatory assets: non-current | 1,585 | 834 | |
Long-term debt | $ 1,539 | $ 809 |
Variable Interest Entities (Tru
Variable Interest Entities (Trusts) (Details) - SCE - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2022 | |
Variable Interest Entity | ||||||||||
Common stock | $ 2,168,000,000 | $ 2,168,000,000 | $ 2,168,000,000 | |||||||
Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation value (in dollars per share) | $ 2,500 | |||||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation value (in dollars per share) | $ 25 | |||||||||
Common stock | 10,000 | 10,000 | $ 10,000 | 10,000 | ||||||
Power Purchase Agreement | ||||||||||
Variable Interest Entity | ||||||||||
Amounts paid to VIEs | 129,000,000 | $ 126,000,000 | 285,000,000 | $ 207,000,000 | ||||||
Trust II | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | $ 400,000,000 | |||||||||
Trust II | Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | 220,000,000 | 220,000,000 | 220,000,000 | |||||||
Trust II | 5.10% Series G Preferred Stock | ||||||||||
Variable Interest Entity | ||||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||||
Liquidation preference | 220,000,000 | 220,000,000 | $ 400,000,000 | |||||||
Trust III | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | $ 275,000,000 | |||||||||
Trust III | Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | 275,000,000 | 275,000,000 | 275,000,000 | |||||||
Trust III | 5.75% Series H Preferred Stock | ||||||||||
Variable Interest Entity | ||||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||||
Liquidation preference | 275,000,000 | 275,000,000 | $ 275,000,000 | 275,000,000 | ||||||
Trust IV | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | $ 325,000,000 | |||||||||
Trust IV | Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | 325,000,000 | 325,000,000 | 325,000,000 | |||||||
Trust IV | 5.375% Series J Preferred Stock | ||||||||||
Variable Interest Entity | ||||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||||
Liquidation preference | 325,000,000 | 325,000,000 | $ 325,000,000 | 325,000,000 | ||||||
Trust V | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | $ 300,000,000 | |||||||||
Trust V | Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
Trust V | 5.45% Series K Preferred Stock | ||||||||||
Variable Interest Entity | ||||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||||
Liquidation preference | 300,000,000 | 300,000,000 | $ 300,000,000 | 300,000,000 | ||||||
Trust VI | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | $ 475,000,000 | |||||||||
Trust VI | Trust Securities [Member] | ||||||||||
Variable Interest Entity | ||||||||||
Liquidation preference | 475,000,000 | 475,000,000 | 475,000,000 | |||||||
Trust VI | 5.00% Series L Preferred Stock | ||||||||||
Variable Interest Entity | ||||||||||
Security dividend rate, (as a percent) | 5% | |||||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 |
Variable Interest Entities (Inc
Variable Interest Entities (Income Statement) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Trust II | ||||
Variable Interest Entity | ||||
Dividend income | $ 3 | $ 3 | $ 6 | $ 6 |
Dividend distributions | 3 | 3 | 6 | 6 |
Trust III | ||||
Variable Interest Entity | ||||
Dividend income | 4 | 4 | 8 | 8 |
Dividend distributions | 4 | 4 | 8 | 8 |
Trust IV | ||||
Variable Interest Entity | ||||
Dividend income | 5 | 5 | 9 | 9 |
Dividend distributions | 5 | 5 | 9 | 9 |
Trust V | ||||
Variable Interest Entity | ||||
Dividend income | 4 | 4 | 8 | 8 |
Dividend distributions | 4 | 4 | 8 | 8 |
Trust VI | ||||
Variable Interest Entity | ||||
Dividend income | 6 | 6 | 12 | 12 |
Dividend distributions | $ 6 | $ 6 | $ 12 | $ 12 |
Fair Value Measurements (Hierar
Fair Value Measurements (Hierarchy) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,126 | $ 3,948 |
SCE | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,126 | $ 3,948 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States (as a percent) | 75% | 74% |
Collateralized mortgage obligations and other asset backed securities | $ 77 | $ 49 |
Receivable (payables), net, related to investments | (96) | (85) |
SCE | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | (11) | (218) |
Derivative contracts, net | 13 | 241 |
Money market funds and other | 27 | 669 |
Nuclear decommissioning trusts | 4,222 | 4,033 |
Total assets | 4,262 | 4,943 |
Liabilities at fair value | ||
Netting and Collateral | (63) | (119) |
Derivative contracts, net | 0 | 1 |
Total liabilities | 0 | 1 |
Net assets | 4,262 | 4,942 |
Netting and Collateral, Total | 52 | (99) |
SCE | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | |
Money market funds and other | 5 | 647 |
Nuclear decommissioning trusts | 2,787 | 2,688 |
Total assets | 2,792 | 3,335 |
Liabilities at fair value | ||
Derivative contracts | 0 | |
Total liabilities | 0 | |
Net assets | 2,792 | 3,335 |
SCE | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 11 | 392 |
Money market funds and other | 22 | 22 |
Nuclear decommissioning trusts | 1,435 | 1,345 |
Total assets | 1,468 | 1,759 |
Liabilities at fair value | ||
Derivative contracts | 62 | 116 |
Total liabilities | 62 | 116 |
Net assets | 1,406 | 1,643 |
SCE | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 13 | 67 |
Money market funds and other | 0 | |
Nuclear decommissioning trusts | 0 | |
Total assets | 13 | 67 |
Liabilities at fair value | ||
Derivative contracts | 1 | 4 |
Total liabilities | 1 | 4 |
Net assets | 12 | 63 |
SCE | Fair Value, Measurements, Recurring | Equity securities | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,632 | 1,610 |
SCE | Fair Value, Measurements, Recurring | Equity securities | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,632 | 1,610 |
SCE | Fair Value, Measurements, Recurring | Equity securities | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Equity securities | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 2,340 | 2,222 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 936 | 941 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,404 | 1,281 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 250 | 201 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 219 | 137 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 31 | $ 64 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 0 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3) (Details) - SCE - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures Level 3 [Roll Forward] | ||||
Fair value of net assets at beginning of period | $ 47 | $ 39 | $ 63 | $ 44 |
Sales | (1) | (6) | (1) | (6) |
Settlements | (12) | (26) | (24) | (29) |
Total realized/unrealized (losses)/gains | (22) | 25 | (26) | 23 |
Fair value of net assets at end of period | $ 12 | $ 32 | $ 12 | $ 32 |
Fair Value Measurements (Leve_2
Fair Value Measurements (Level 3 Inputs) (Details) - SCE - Level 3 - Congestion revenue rights (GWh) - Auction prices $ in Millions | Jun. 30, 2023 USD ($) $ / MWh | Dec. 31, 2022 USD ($) $ / MWh |
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value, Level 3 assets | $ | $ 13 | $ 67 |
Fair value, Level 3 liabilities | $ | $ 1 | $ 4 |
Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | $ / MWh | (7.54) | (7.91) |
Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | $ / MWh | 47.91 | 3,856.67 |
Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.56 | 1.64 |
Fair Value Measurements (Parent
Fair Value Measurements (Parent) (Details) - Edison International Parent and Other - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value | ||
Equity investments fair value | $ 1 | $ 5 |
Money market funds fair value | 118 | 137 |
Level 2 | ||
Fair Value | ||
Short-term investments fair value | 2 | 2 |
Level 3 | ||
Fair Value | ||
Short-term investments fair value | $ 0 | $ 0 |
Fair Value Measurements (Debt)
Fair Value Measurements (Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 32,319 | $ 29,639 |
Fair Value | 29,670 | 26,824 |
SCE | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 28,247 | 26,258 |
Fair Value | $ 25,618 | $ 23,469 |
Debt and Credit Agreements (Rec
Debt and Credit Agreements (Recovery and Term) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Jun. 30, 2023 | Apr. 30, 2023 | |
Debt | |||
Outstanding borrowings | $ 1,172 | ||
SCE | 5.30% first and refunding mortgage bonds due 2028 | |||
Debt | |||
Debt, face amount | $ 750 | ||
Interest rate on debt (as a percent) | 5.30% | ||
SCE | 5.70% first and refunding mortgage bonds due 2053 | |||
Debt | |||
Debt, face amount | $ 450 | ||
Interest rate on debt (as a percent) | 5.70% | ||
SCE | 4.9% first and refunding mortgage bonds due 2026 | |||
Debt | |||
Debt, face amount | $ 400 | ||
Interest rate on debt (as a percent) | 4.90% | ||
SCE | 5.875% first and refunding mortgage bonds due 2053 | |||
Debt | |||
Debt, face amount | $ 700 | ||
Interest rate on debt (as a percent) | 5.875% | ||
SCE | Series-A 2023 senior secured recovery bonds | |||
Debt | |||
Debt, face amount | $ 775 | ||
SCE | Recovery Bonds, 4.697%, due 2042 | |||
Debt | |||
Debt, face amount | $ 425 | ||
Interest rate on debt (as a percent) | 4.697% | ||
SCE | Recovery Bonds, 5.112%, due 2049 | |||
Debt | |||
Debt, face amount | $ 350 | ||
Interest rate on debt (as a percent) | 5.112% | ||
Edison International Parent and Other | 8.125% Junior subordinated notes due 2053 | |||
Debt | |||
Debt, face amount | $ 500 | ||
Interest rate on debt (as a percent) | 8.125% | ||
Variable rate on debt (as a percent) | 3.864% | ||
Edison International Parent and Other | 5.25% Senior Notes due 2028 | |||
Debt | |||
Debt, face amount | $ 600 | ||
Interest rate on debt (as a percent) | 5.25% |
Debt and Credit Agreements (Cre
Debt and Credit Agreements (Credit Facilities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | May 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Commitment | $ 4,850 | |
Outstanding borrowings | 1,172 | |
Outstanding letters of credit | 122 | |
Amount available | $ 3,556 | |
Edison International Parent and Other | Multi-year credit facilities | ||
Line of Credit Facility [Line Items] | ||
Variable rate on debt (as a percent) | 1.28% | |
Commitment | $ 1,500 | |
Outstanding borrowings | 387 | |
Amount available | 1,113 | |
Contingent maximum available borrowing | $ 2,000 | |
Edison International Parent and Other | Multi-year credit facilities | Commercial paper | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 387 | |
Weighted average interest rate (as a percent) | 5.84% | |
SCE | Multi-year credit facilities | ||
Line of Credit Facility [Line Items] | ||
Variable rate on debt (as a percent) | 1.08% | |
Commitment | $ 3,350 | |
Outstanding borrowings | 785 | |
Outstanding letters of credit | 122 | |
Amount available | 2,443 | |
Contingent maximum available borrowing | $ 4,000 | |
SCE | Multi-year credit facilities | Commercial paper | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 785 | |
Weighted average interest rate (as a percent) | 5.63% |
Derivative Instruments (Derivat
Derivative Instruments (Derivative) (Details) - SCE - Derivatives with contingent features - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives | ||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 1 | $ 1 |
Posted collateral | $ 0 | $ 24 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet) (Details) - SCE - Commodity derivative contracts - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Liabilities | ||
Cash collateral posted for liability | $ 161 | |
Net Asset | ||
Gross amounts recognized | (39) | $ 339 |
Gross amounts offset in the consolidated balance sheets | 0 | |
Netting and Collateral, Total | 52 | (99) |
Net amounts presented in the consolidated balance sheets | 13 | 240 |
Other Current Assets | ||
Derivative Assets | ||
Gross amounts recognized | 24 | 459 |
Gross amounts offset in the consolidated balance sheets | (11) | (119) |
Cash collateral received | 0 | (99) |
Net amounts presented in the consolidated balance sheets | 13 | 241 |
Derivative Liabilities | ||
Cash collateral not offset against liability | 109 | |
Other Current Liabilities | ||
Derivative Liabilities | ||
Gross amounts recognized | 63 | 120 |
Gross amounts offset in the consolidated balance sheets | (11) | (119) |
Cash collateral posted | (52) | |
Net amounts presented in the consolidated balance sheets | $ 0 | $ 1 |
Derivative Instruments (Hedging
Derivative Instruments (Hedging Activities) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized | $ (7) | $ 129 | $ 109 | $ 110 |
Unrealized | $ (114) | $ (88) | $ (378) | $ (35) |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - SCE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 GWh Bcfe | Dec. 31, 2022 GWh Bcfe | |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 2,364 | 1,022 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 45 | 42 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 24,290 | 44,028 |
Revenue (Summary) (Details)
Revenue (Summary) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue | |||||
Total operating revenue | $ 3,964 | $ 4,008 | $ 7,930 | $ 7,976 | |
SCE | |||||
Revenue | |||||
Revenue from contracts with customers | 3,589 | 4,000 | 7,325 | 7,360 | |
Alternative revenue programs and other operating revenue | 360 | (4) | 574 | 597 | |
Total operating revenue | 3,949 | 3,996 | 7,899 | 7,957 | |
Receivables from contracts with customers | 2,300 | 2,300 | $ 2,300 | ||
Accrued unbilled revenues | 756 | 756 | $ 638 | ||
SCE | Earning Activities | |||||
Revenue | |||||
Revenue from contracts with customers | 2,043 | 1,978 | 4,119 | 3,963 | |
Alternative revenue programs and other operating revenue | 124 | 186 | 281 | 468 | |
Total operating revenue | 2,167 | 2,164 | 4,400 | 4,431 | |
SCE | Cost- Recovery Activities | |||||
Revenue | |||||
Revenue from contracts with customers | 1,546 | 2,022 | 3,206 | 3,397 | |
Alternative revenue programs and other operating revenue | 236 | (190) | 293 | 129 | |
Total operating revenue | $ 1,782 | $ 1,832 | $ 3,499 | $ 3,526 |
Revenue (Deferred) (Details)
Revenue (Deferred) (Details) - SCE - West of Devers $ in Millions | Jun. 30, 2023 USD ($) |
Revenue | |
Deferred revenue balance | $ 374 |
Deferred revenue current | 13 |
Deferred revenue non-current | $ 361 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Line Items] | ||||
Statutory tax rate (as a percent) | 21% | 21% | ||
Income from operations before income taxes | $ 460 | $ 299 | $ 838 | $ 380 |
Provision for income tax at federal statutory rate of 21% | 97 | 63 | 176 | 80 |
Increase (decrease) in income tax from: | ||||
State tax, net of federal benefit | 1 | (4) | (21) | |
Property-related | (47) | (48) | (105) | (93) |
Other | (4) | (7) | (14) | |
Total income tax expense (benefit) | $ 51 | $ 7 | $ 64 | $ (48) |
Effective tax rate | 11.10% | 2.30% | 7.60% | (12.60%) |
Increase (decrease) to previously recorded tax expense | $ 268 | |||
SCE | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory tax rate (as a percent) | 21% | 21% | ||
Income from operations before income taxes | 517 | $ 349 | $ 945 | $ 482 |
Provision for income tax at federal statutory rate of 21% | 109 | 73 | 198 | 101 |
Increase (decrease) in income tax from: | ||||
State tax, net of federal benefit | 8 | 11 | (13) | |
Property-related | (47) | (48) | (105) | (93) |
Other | (2) | (3) | (7) | (13) |
Total income tax expense (benefit) | $ 68 | $ 22 | $ 97 | $ (18) |
Effective tax rate | 13.20% | 6.30% | 10.30% | (3.70%) |
Compensation and Benefit Plan_2
Compensation and Benefit Plans (Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | $ 25 | $ 30 | $ 50 | $ 60 |
Non-service cost (benefit) | ||||
Interest cost | 45 | 27 | 90 | 54 |
Expected return on plan assets | (54) | (57) | (108) | (114) |
Settlement costs | 3 | 3 | ||
Amortization of net loss | 1 | 1 | 2 | 2 |
Regulatory adjustment | (12) | 2 | (24) | 4 |
Total non-service benefit | (20) | (24) | (40) | (51) |
Total expense | 5 | 6 | 10 | 9 |
Postretirement Benefits Other Than Pensions | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | 5 | 8 | 10 | 16 |
Non-service cost (benefit) | ||||
Interest cost | 18 | 14 | 36 | 28 |
Expected return on plan assets | (27) | (24) | (54) | (48) |
Amortization of net loss | (12) | (12) | (24) | (24) |
Regulatory adjustment | 16 | 14 | 32 | 28 |
Total non-service benefit | (5) | (8) | (10) | (16) |
SCE | ||||
Non-service cost (benefit) | ||||
Total non-service benefit | (26) | (31) | (52) | (65) |
SCE | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | 24 | 29 | 48 | 58 |
Non-service cost (benefit) | ||||
Interest cost | 42 | 25 | 84 | 50 |
Expected return on plan assets | (51) | (54) | (102) | (108) |
Settlement costs | 3 | 3 | ||
Amortization of net loss | 1 | 2 | ||
Regulatory adjustment | (12) | 2 | (24) | 4 |
Total non-service benefit | (21) | (23) | (42) | (49) |
Total expense | $ 3 | $ 6 | $ 6 | $ 9 |
Investments (Trust Value) (Deta
Investments (Trust Value) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Fair Values | $ 4,126 | $ 3,948 |
SCE | ||
Fair Value | ||
Fair Values | 4,126 | 3,948 |
SCE | Total debt securities and other | ||
Fair Value | ||
Amortized Costs | 2,300 | 2,158 |
Fair Values | 2,494 | 2,338 |
SCE | Municipal bonds | ||
Fair Value | ||
Amortized Costs | 617 | 672 |
Fair Values | 704 | 754 |
SCE | Government and agency securities | ||
Fair Value | ||
Amortized Costs | 1,151 | 1,025 |
Fair Values | 1,222 | 1,091 |
SCE | Corporate bonds | ||
Fair Value | ||
Amortized Costs | 386 | 351 |
Fair Values | 414 | 377 |
SCE | Short-term investments and receivables/payables | ||
Fair Value | ||
Amortized Costs | 146 | 110 |
Fair Values | 154 | 116 |
SCE | Repurchase agreements | ||
Fair Value | ||
Fair Values | $ 9 | $ 41 |
Repurchase agreement secured by US Treasury Securities (as a percent) | 100% | 97% |
SCE | Equity securities | ||
Fair Value | ||
Fair Values | $ 1,632 | $ 1,610 |
SCE | Fair Value, Measurements, Recurring | ||
Fair Value | ||
Fair Values | $ 4,222 | $ 4,033 |
Investments (Trust Info) (Detai
Investments (Trust Info) (Details) - SCE - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Cumulative unrealized holding gains, net of losses | $ 1,600 | $ 1,600 |
Deferred income taxes related to unrealized gains | 352 | 321 |
Nuclear decommissioning trusts, net of deferred tax | $ 3,800 | $ 3,600 |
Investments (Trust gain loss) (
Investments (Trust gain loss) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments | ||||
Gross realized gains | $ 124 | $ 74 | $ 195 | $ 89 |
Gross realized losses | (8) | (45) | (31) | (61) |
Net unrealized (losses)/gains for equity securities | $ (11) | $ (332) | $ 64 | $ (432) |
Investments (Other) (Details)
Investments (Other) (Details) - Edison International Parent and Other - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Marketable securities | $ 1 | $ 5 |
Equity investments without readily determinable fair values | 12 | 12 |
Cumulative upward adjustments investments without readily determinable fair values | $ 9 | $ 9 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 3,656 | $ 2,497 |
Regulatory assets: non-current | 8,621 | 8,181 |
SCE | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 3,656 | 2,497 |
Regulatory assets: non-current | 8,621 | 8,181 |
Total regulatory assets | 12,277 | 10,678 |
SCE | Regulatory balancing and memorandum accounts-Assets | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 3,574 | 2,400 |
Regulatory assets: non-current | 1,107 | 1,589 |
SCE | Power contracts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 23 | 71 |
SCE | Energy derivatives | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 39 | |
SCE | Deferred income taxes, net of liabilities | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: non-current | 5,366 | 5,178 |
SCE | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: non-current | 110 | 113 |
SCE | Unamortized loss on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: non-current | 103 | 109 |
SCE | Environmental remediation | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: non-current | 234 | 241 |
SCE | Recovery assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: non-current | 1,585 | 834 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 20 | 26 |
Regulatory assets: non-current | $ 116 | $ 117 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 797 | $ 964 |
Long-term regulatory liabilities | 8,735 | 8,211 |
SCE | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 797 | 964 |
Long-term regulatory liabilities | 8,735 | 8,211 |
Total regulatory liabilities | 9,532 | 9,175 |
SCE | Regulatory balancing and memorandum accounts-Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 779 | 584 |
Long-term regulatory liabilities | 1,353 | 1,116 |
SCE | Energy derivatives | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 338 | |
SCE | Costs of removal | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,705 | 2,589 |
SCE | Re-measurement of deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,224 | 2,250 |
SCE | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 1,444 | 1,231 |
SCE | Pension and other postretirement benefits | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 992 | 1,007 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 18 | 42 |
Long-term regulatory liabilities | $ 17 | $ 18 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Balancing Accounts) (Details) - SCE - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ 2,549 | $ 2,289 |
Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (471) | 1,580 |
Portfolio allocation balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 1,613 | (73) |
New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 135 | (63) |
Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (1,900) | (1,577) |
Base revenue requirement balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 1,566 | 1,108 |
GRC wildfire mitigation balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 192 | 67 |
Residential uncollectibles balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 28 | |
Greenhouse gas auction revenue and low carbon fuel standard revenue | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (181) | (289) |
FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (114) | (123) |
Wildfire and drought restoration accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 383 | 352 |
Wildfire expense memorandum account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 886 | 1,168 |
COVID 19-related memorandum accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 69 | 67 |
Customer service re-platform (CSRP) | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 70 | 64 |
Tax accounting memorandum account and pole loading balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 192 | 90 |
Excess Bond and Power Charge Balancing Account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 9 | (56) |
Other balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ 72 | $ (26) |
Commitments and Contingencies_2
Commitments and Contingencies (Wildfires and Mudslides) (Details) - SCE $ in Millions | 1 Months Ended | ||||||
Sep. 30, 2022 USD ($) a individual item | May 31, 2022 USD ($) a item individual | Sep. 30, 2020 USD ($) a item individual | Oct. 31, 2019 a individual item | Nov. 30, 2018 a individual item | Jan. 31, 2018 item individual | Dec. 04, 2017 a individual item | |
December 2017 Wildfires | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 280,000 | ||||||
Structures destroyed | 1,343 | ||||||
Fatalities | individual | 2 | ||||||
November 2018 Wildfires | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 100,000 | ||||||
Structures destroyed | 1,643 | ||||||
Structures damaged | 364 | ||||||
Fatalities | individual | 3 | ||||||
Additional fatalities | individual | 4 | ||||||
Montecito Mudslides | |||||||
Commitments and Contingencies | |||||||
Structures destroyed | 135 | ||||||
Structures damaged | 324 | ||||||
Fatalities | individual | 21 | ||||||
Additional fatalities presumed | individual | 2 | ||||||
Saddle Ridge Fire | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 9,000 | ||||||
Structures destroyed | 19 | ||||||
Structures damaged | 88 | ||||||
Fatalities | individual | 1 | ||||||
Number of Injured | individual | 8 | ||||||
Bobcat fire | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 116,000 | ||||||
Number of Injured | individual | 6 | ||||||
Estimated fire suppression costs | $ | $ 80 | ||||||
Bobcat fire | Home/Residential | |||||||
Commitments and Contingencies | |||||||
Structures destroyed | 87 | ||||||
Structures damaged | 28 | ||||||
Bobcat fire | Commercial property | |||||||
Commitments and Contingencies | |||||||
Structures destroyed | 1 | ||||||
Bobcat fire | Minor structures | |||||||
Commitments and Contingencies | |||||||
Structures destroyed | 83 | ||||||
Structures damaged | 19 | ||||||
Coastal Fire | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 200 | ||||||
Structures destroyed | 20 | ||||||
Structures damaged | 11 | ||||||
Number of Injured | individual | 2 | ||||||
Estimated fire suppression costs | $ | $ 3 | ||||||
Fairview Fire | |||||||
Commitments and Contingencies | |||||||
Acres burned | a | 28,000 | ||||||
Structures destroyed | 22 | ||||||
Fatalities | individual | 2 | ||||||
Number of civilian injury | individual | 1 | ||||||
Number of Injured | individual | 2 | ||||||
Estimated fire suppression costs | $ | $ 39 | ||||||
Fairview Fire | Home/Residential | |||||||
Commitments and Contingencies | |||||||
Structures damaged | 5 | ||||||
Fairview Fire | Minor structures | |||||||
Commitments and Contingencies | |||||||
Structures damaged | 17 |
Commitments and Contingencies_3
Commitments and Contingencies (Wildfires litigation) (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2021 USD ($) | Jan. 31, 2021 $ / claim | Oct. 31, 2020 USD ($) $ / claim | Apr. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2019 USD ($) | Jun. 30, 2023 USD ($) plaintiff | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
2017/2018 Wildfire/Mudslide Events | |||||||||||||
Commitments and Contingencies | |||||||||||||
Increase in accrued estimated losses | $ 90 | $ 416 | |||||||||||
Expected revenue through electric rates | 6 | 26 | |||||||||||
Total after-tax charge | 61 | 281 | |||||||||||
Payments | 507 | ||||||||||||
Charge for wildfire-related claims | $ 702 | 702 | $ 1,119 | ||||||||||
Post-2018 Wildfires | |||||||||||||
Commitments and Contingencies | |||||||||||||
Increase in accrued estimated losses | $ 45 | 6 | 150 | ||||||||||
Total after-tax charge | $ 1 | 4 | $ 8 | ||||||||||
Payments | 16 | ||||||||||||
Charge for wildfire-related claims | 672 | 672 | 682 | ||||||||||
SCE | |||||||||||||
Commitments and Contingencies | |||||||||||||
Regulatory Assets | 12,277 | 12,277 | 10,678 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | |||||||||||||
Commitments and Contingencies | |||||||||||||
Regulatory Assets | 43 | 43 | |||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | SED Settlement | |||||||||||||
Commitments and Contingencies | |||||||||||||
Charge for wildfire-related claims | $ 550 | ||||||||||||
Third-party uninsured claims cost recovery waiver | 375 | ||||||||||||
Fine to State | 110 | ||||||||||||
Shareholder-funded safety measures costs | $ 65 | ||||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Local Public Entity Settlements | |||||||||||||
Commitments and Contingencies | |||||||||||||
Payments | $ 360 | ||||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | TKM Subrogation Settlement | |||||||||||||
Commitments and Contingencies | |||||||||||||
Payments | $ 1,200 | ||||||||||||
Payment agreement for each dollar of claim | $ / claim | 0.555 | ||||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Individual Plaintiff Settlements | |||||||||||||
Commitments and Contingencies | |||||||||||||
Payments | 278 | $ 148 | $ 1,700 | $ 1,700 | $ 300 | ||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | |||||||||||||
Commitments and Contingencies | |||||||||||||
Charge for wildfire-related claims | 130 | 130 | |||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | SED Settlement | |||||||||||||
Commitments and Contingencies | |||||||||||||
Charge for wildfire-related claims | 65 | 65 | |||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Estimated Losses for Remaining Alleged and Potential Claims | |||||||||||||
Commitments and Contingencies | |||||||||||||
Charge for wildfire-related claims | 572 | 572 | |||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Aggregate | |||||||||||||
Commitments and Contingencies | |||||||||||||
Increase in accrued estimated losses | 8,800 | ||||||||||||
Expected revenue through electric rates | 382 | ||||||||||||
Payments | $ 8,100 | ||||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Aggregate | Individual Plaintiff Settlements | |||||||||||||
Commitments and Contingencies | |||||||||||||
Number of plaintiffs | plaintiff | 10,000 | ||||||||||||
SCE | November 2018 Wildfires | Woolsey Subrogation Settlement | |||||||||||||
Commitments and Contingencies | |||||||||||||
Payments | $ 2,200 | ||||||||||||
Payment agreement for each dollar of claim | $ / claim | 0.67 | ||||||||||||
SCE | Post-2018 Wildfires | |||||||||||||
Commitments and Contingencies | |||||||||||||
Expected insurance recoveries | 466 | $ 466 | |||||||||||
Regulatory Assets | $ 166 | 166 | |||||||||||
SCE | Post-2018 Wildfires | Aggregate | |||||||||||||
Commitments and Contingencies | |||||||||||||
Increase in accrued estimated losses | 702 | ||||||||||||
Expected revenue through electric rates | 166 | ||||||||||||
Total after-tax charge | 45 | ||||||||||||
Payments | 30 | ||||||||||||
SCE | Post-2018 Wildfires | Aggregate | CPUC | |||||||||||||
Commitments and Contingencies | |||||||||||||
Expected revenue through electric rates | 152 | ||||||||||||
SCE | Post-2018 Wildfires | Aggregate | FERC | |||||||||||||
Commitments and Contingencies | |||||||||||||
Expected revenue through electric rates | $ 14 |
Commitments and Contingencies_4
Commitments and Contingencies (Wildfire loss accrual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Loss contingency accrual roll forward | ||||
Wildfire-related claims, current | $ 71 | $ 121 | ||
Wildfire-related claims, non-current | 1,309 | 1,687 | ||
2017/2018 Wildfire/Mudslide Events | ||||
Loss contingency accrual roll forward | ||||
Beginning balance | 1,119 | |||
Increase in accrued estimated losses | 90 | $ 416 | ||
Amounts paid | (507) | |||
Ending balance | 702 | 1,119 | ||
Wildfire-related claims, current | 65 | 65 | ||
Wildfire-related claims, non-current | 572 | 934 | ||
2017/2018 Wildfire/Mudslide Events | SED Settlement | ||||
Loss contingency accrual roll forward | ||||
Wildfire-related claims, current | 6 | 56 | ||
Wildfire-related claims, non-current | 59 | 64 | ||
Other Wildfire Related Claims | ||||
Loss contingency accrual roll forward | ||||
Wildfire-related claims, non-current | 678 | 689 | ||
Post-2018 Wildfires | ||||
Loss contingency accrual roll forward | ||||
Beginning balance | 682 | |||
Increase in accrued estimated losses | $ 45 | 6 | $ 150 | |
Amounts paid | (16) | |||
Ending balance | 672 | 682 | ||
SCE | ||||
Loss contingency accrual roll forward | ||||
Wildfire-related claims, current | 71 | 121 | ||
Wildfire-related claims, non-current | $ 1,309 | $ 1,687 |
Commitments and Contingencies_5
Commitments and Contingencies (Wildfire loss expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
2017/2018 Wildfire/Mudslide Events | |||
Commitments and Contingencies | |||
Charge for wildfire-related claims | $ 90 | $ 416 | |
Expected revenue from FERC customers | (6) | (26) | |
Total pre-tax charge | 84 | 390 | |
Income tax benefit | (23) | (109) | |
Total after-tax charge | 61 | 281 | |
Post-2018 Wildfires | |||
Commitments and Contingencies | |||
Charge for wildfire-related claims | $ 45 | 6 | 150 |
Expected insurance recoveries | (43) | (139) | |
Total pre-tax charge | 2 | 6 | 11 |
Income tax benefit | (1) | (2) | (3) |
Total after-tax charge | $ 1 | $ 4 | $ 8 |
Commitments and Contingencies_6
Commitments and Contingencies (Wildfire Insurance) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2023 | Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jul. 31, 2019 | |
SCE | |||||||||
Commitments and Contingencies | |||||||||
Rate funded wildfire self-insurance program | $ 150 | ||||||||
Rate funded wildfire self-insurance program future proceeds, assuming no claims | $ 300 | ||||||||
Shareholder contribution on self insurance (as a percent) | 2.50% | ||||||||
Threshold for insurance costs before shareholder contributions | $ 500 | ||||||||
Maximum annual shareholder contribution | 12.5 | ||||||||
Self-insurance fund value | $ 1,000 | ||||||||
Wildfire insurance coverage | $ 1,000 | $ 1,000 | |||||||
Self insurance | 100 | 100 | |||||||
Coverage net | 937 | ||||||||
Co-insurance | 63 | ||||||||
Regulatory assets | $ 12,277 | 12,277 | $ 10,678 | ||||||
Wildfire insurance expense | 450 | 437 | |||||||
SCE | Commercial insurance carriers | |||||||||
Commitments and Contingencies | |||||||||
Coverage net | 835 | 875 | |||||||
Wildfire insurance expense | 357 | 413 | |||||||
SCE | Edison Insurance Services-EIS | |||||||||
Commitments and Contingencies | |||||||||
Coverage net | 102 | $ 28 | |||||||
2017/2018 Wildfire/Mudslide Events | |||||||||
Commitments and Contingencies | |||||||||
Increase in accrued estimated losses | 90 | $ 416 | |||||||
2017/2018 Wildfire/Mudslide Events | SCE | |||||||||
Commitments and Contingencies | |||||||||
Wildfire insurance coverage | 1,000 | ||||||||
Self insurance | 10 | ||||||||
Restoration capital expenditures | $ 60 | ||||||||
Denied rate increase | $ 8 | ||||||||
Potential impairment | 173 | 173 | |||||||
Regulatory assets | 43 | 43 | |||||||
2017/2018 Wildfire/Mudslide Events | SCE | Aggregate | |||||||||
Commitments and Contingencies | |||||||||
Increase in accrued estimated losses | 8,800 | ||||||||
Litigation settlement | 8,300 | ||||||||
Insurance recoveries | 2,000 | ||||||||
2017/2018 Wildfire/Mudslide Events | SCE | SED Settlement | Aggregate | |||||||||
Commitments and Contingencies | |||||||||
Litigation settlement | 65 | ||||||||
November 2018 Wildfires | SCE | |||||||||
Commitments and Contingencies | |||||||||
Wildfire insurance coverage | 1,000 | ||||||||
Self insurance | 10 | ||||||||
Thomas and Rye wildfires | SCE | |||||||||
Commitments and Contingencies | |||||||||
Denied rate increase | $ 6 | ||||||||
Post-2018 Wildfires | |||||||||
Commitments and Contingencies | |||||||||
Increase in accrued estimated losses | $ 45 | 6 | 150 | ||||||
Insurance recoveries | $ 43 | $ 139 | |||||||
Post-2018 Wildfires | SCE | |||||||||
Commitments and Contingencies | |||||||||
Regulatory assets | 166 | $ 166 | |||||||
Post-2018 Wildfires | SCE | Aggregate | |||||||||
Commitments and Contingencies | |||||||||
Increase in accrued estimated losses | 702 | ||||||||
Insurance recoveries | $ 473 |
Commitments and Contingencies_7
Commitments and Contingencies (Environmental Remediation) (Details) - SCE $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) site | Jun. 30, 2022 USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | ||
Recorded estimated minimum liability | $ 252 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | |
Environmental remediation regulatory assets | $ 234 | |
Expected recovery from incentive mechanism | $ 35 | |
Expected recovery from incentive mechanism (percent) | 90% | |
Recovery through customer rates | $ 199 | |
Recovery through customer rates (percent) | 100% | |
Environmental remediation expense | $ 7 | $ 4 |
Clean up (period) | 40 years | |
Expected remediation costs, low end of range | $ 8 | |
Expected remediation costs, high end of range | $ 28 | |
Material sites | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Identified remediation sites (number) | site | 25 | |
Minimum estimated liability | $ 1 | |
Recorded estimated minimum liability | 249 | |
Cost may exceed liability | 120 | |
Material sites | San Onofre | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Recorded estimated minimum liability | $ 162 | |
Immaterial sites | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Identified remediation sites (number) | site | 13 | |
Recorded estimated minimum liability | $ 3 | |
Cost may exceed liability | $ 7 |
Commitments and Contingencies_8
Commitments and Contingencies (Nuclear) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Palo Verde (nuclear) | |
Commitments and Contingencies | |
Federal loss limit, bodily injury and property damage from nuclear incident | $ 13,700 |
San Onofre | |
Commitments and Contingencies | |
Federal loss limit, bodily injury and property damage from nuclear incident | 560 |
SCE | |
Commitments and Contingencies | |
Limit on retroactive premium adjustments assessment, per year | 24 |
Maximum per incident, prior events | 255 |
Maximum per incident, prior events, annually | 38 |
SCE | Palo Verde (nuclear) | |
Commitments and Contingencies | |
Minimum federal requirement of nuclear property insurance | 1,100 |
Maximum per incident | 65 |
Maximum per incident annual | 10 |
SCE | San Onofre | |
Commitments and Contingencies | |
Minimum federal requirement of nuclear property insurance | $ 50 |
Equity (Issuances) (Details)
Equity (Issuances) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Aug. 31, 2022 | |
Stock compensation awards | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 484,041 | 808,479 | |
Proceeds received, net of offering costs | $ 28 | $ 39 | |
In lieu of dividend payment | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 60,691 | 128,005 | |
Proceeds received, net of offering costs | $ 4 | $ 9 | |
401(K) | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 41,000 | 70,000 | |
Proceeds received, net of offering costs | $ 3 | $ 5 | |
Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 26,481 | ||
Proceeds received, net of offering costs | $ 2 | ||
At-the-market Program (ATM) | |||
Class of Stock [Line Items] | |||
Aggregate sale price | $ 500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 17,549 | $ 17,522 | $ 17,632 | $ 17,789 | $ 17,522 | $ 17,789 |
Pension and PBOP - net loss: | ||||||
Other comprehensive income, net of tax | 1 | 2 | 4 | 2 | 3 | 6 |
Ending Balance | 17,694 | 17,549 | 17,675 | 17,632 | 17,694 | 17,675 |
Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (9) | (11) | (52) | (54) | (11) | (54) |
Pension and PBOP - net loss: | ||||||
Other comprehensive income, net of tax | 1 | 2 | 4 | 2 | ||
Ending Balance | (8) | (9) | (48) | (52) | (8) | (48) |
Accumulated Defined Benefit Plans Adjustment | ||||||
Pension and PBOP - net loss: | ||||||
Reclassified from accumulated other comprehensive loss1 | 1 | 4 | 1 | 6 | ||
Foreign currency translation adjustments | ||||||
Pension and PBOP - net loss: | ||||||
Reclassified from accumulated other comprehensive loss1 | 2 | |||||
SCE | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | 20,807 | 20,789 | 19,652 | 19,835 | 20,789 | 19,835 |
Pension and PBOP - net loss: | ||||||
Other comprehensive income, net of tax | 3 | 1 | 4 | |||
Ending Balance | 20,881 | 20,807 | 20,337 | 19,652 | 20,881 | 20,337 |
SCE | Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (8) | (8) | (31) | (32) | (8) | (32) |
Pension and PBOP - net loss: | ||||||
Other comprehensive income, net of tax | 3 | 1 | ||||
Ending Balance | $ (8) | $ (8) | (28) | $ (31) | $ (8) | (28) |
SCE | Accumulated Defined Benefit Plans Adjustment | ||||||
Pension and PBOP - net loss: | ||||||
Reclassified from accumulated other comprehensive loss1 | $ 3 | $ 4 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income And Expense | ||||
Total other income and (expenses) | $ 128 | $ 66 | $ 247 | $ 134 |
SCE | ||||
Other Income And Expense | ||||
Equity allowance for funds used during construction | 39 | 30 | 75 | 61 |
Increase in cash surrender value of life insurance policies and life insurance benefits | 9 | 6 | 20 | 21 |
Interest income | 66 | 15 | 126 | 17 |
Net periodic benefit income - non-service components | 26 | 31 | 52 | 65 |
Civic, political and related activities and donations | (7) | (9) | (16) | (18) |
Other | (6) | (5) | (10) | (7) |
Total other income and (expenses) | 127 | 68 | 247 | 139 |
Edison International Parent and Other | ||||
Other Income And Expense | ||||
Net loss on equity securities | (4) | (3) | (6) | |
Other | $ 1 | $ 2 | $ 3 | $ 1 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash payments (receipts): | ||
Interest, net of amounts capitalized | $ 634 | $ 438 |
Income taxes, net | 0 | (60) |
Common stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 283 | 267 |
Preferred stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 8 | 5 |
SCE | ||
Cash payments (receipts): | ||
Interest, net of amounts capitalized | 520 | 375 |
Income taxes, net | 0 | (42) |
Non-cash financing and investing activities: | ||
Accrued capital expenditures | 489 | 609 |
SCE | Common stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 350 | 325 |
SCE | Preferred stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | $ 8 | $ 5 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related party transactions | ||||||||
Long-term insurance receivable due from affiliate | $ 458 | $ 458 | $ 458 | $ 465 | ||||
SCE | ||||||||
Related party transactions | ||||||||
Wildfire insurance expense | 450 | $ 437 | ||||||
SCE | Wildfire liability insurance | Edison Insurance Services-EIS | ||||||||
Related party transactions | ||||||||
Wildfire-related insurance premiums | $ 273 | |||||||
Insurance purchased but not reinsured | $ 93 | |||||||
Insurance income and related expense | 22 | 44 | ||||||
Prepaid insurance | 106 | |||||||
Long-term insurance receivable due from affiliate | 334 | 334 | $ 334 | $ 334 | ||||
Wildfire insurance expense | $ 66 | $ 40 | $ 132 | $ 79 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Trading Plans During the quarter ended June 30, 2023, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K). | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false |