Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 384,753,060 | |
Entity Central Index Key | 0000827052 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
SCE | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | false | |
Document Period End Date | Mar. 31, 2024 | |
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 | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating revenue | $ 4,078 | $ 3,966 |
Purchased power and fuel | 1,008 | 1,318 |
Operation and maintenance | 1,317 | 1,084 |
Wildfire-related claims, net of insurance recoveries | 615 | 96 |
Wildfire Insurance Fund expense | 36 | 52 |
Depreciation and amortization | 702 | 656 |
Property and other taxes | 155 | 140 |
Total operating expenses | 3,833 | 3,346 |
Operating income | 245 | 620 |
Interest expense | (444) | (361) |
Other income, net | 138 | 119 |
(Loss) income before income taxes | (61) | 378 |
Income tax (benefit) expense | (113) | 13 |
Net income | 52 | 365 |
Less: Net income attributable to noncontrolling interests - preference stock of SCE | 41 | 29 |
Preferred stock dividend requirements of Edison International | 22 | 26 |
Net (loss) income available to common stock | $ (11) | $ 310 |
Basic (loss) earnings per share: | ||
Weighted average shares of common stock outstanding | 385 | 383 |
Basic (loss) earnings per common share available to Edison International common shareholders | $ (0.03) | $ 0.81 |
Diluted (loss) earnings per share: | ||
Weighted average shares of common stock outstanding, including effect of dilutive securities | 385 | 384 |
Diluted (loss) earnings per common share available to Edison International common shareholders | $ (0.03) | $ 0.81 |
SCE | ||
Operating revenue | $ 4,064 | $ 3,950 |
Purchased power and fuel | 1,008 | 1,318 |
Operation and maintenance | 1,291 | 1,081 |
Wildfire-related claims, net of insurance recoveries | 614 | 96 |
Wildfire Insurance Fund expense | 36 | 52 |
Depreciation and amortization | 701 | 656 |
Property and other taxes | 153 | 139 |
Total operating expenses | 3,803 | 3,342 |
Operating income | 261 | 608 |
Interest expense | (374) | (300) |
Other income, net | 135 | 120 |
(Loss) income before income taxes | 22 | 428 |
Income tax (benefit) expense | (84) | 29 |
Net income | 106 | 399 |
Preferred stock dividend requirements of Edison International | 41 | 29 |
Net (loss) income available to common stock | $ 65 | $ 370 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income | $ 52 | $ 365 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 2 | |
Other comprehensive income, net of tax | 2 | |
Comprehensive income | 52 | 367 |
Less: Comprehensive income attributable to noncontrolling interests | 41 | 29 |
Comprehensive income attributable to Edison International | 11 | 338 |
SCE | ||
Net income | 106 | 399 |
Other comprehensive income, net of tax: | ||
Pension and postretirement benefits other than pensions | 1 | |
Other comprehensive income, net of tax | 1 | |
Comprehensive income | $ 107 | $ 399 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 992 | $ 345 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,890 | 2,016 |
Accrued unbilled revenue | 777 | 742 |
Inventory | 519 | 527 |
Prepaid expenses | 244 | 112 |
Regulatory assets | 2,989 | 2,524 |
Wildfire Insurance Fund contributions | 138 | 204 |
Other current assets | 329 | 341 |
Total current assets | 7,878 | 6,811 |
Nuclear decommissioning trusts | 4,288 | 4,173 |
Other investments | 62 | 54 |
Total investments | 4,350 | 4,227 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $13,227 and $12,910 at respective dates | 56,483 | 55,877 |
Nonutility property, plant and equipment, less accumulated depreciation at respective dates | 205 | 207 |
Total property, plant and equipment | 56,688 | 56,084 |
Regulatory assets (include $1,547 and $1,558 related to VIEs at respective dates) | 8,806 | 8,897 |
Wildfire Insurance Fund contributions | 1,982 | 1,951 |
Operating lease right-of-use assets | 1,206 | 1,221 |
Long-term insurance receivables | 499 | 501 |
Other long-term assets | 2,190 | 2,066 |
Total other assets | 14,683 | 14,636 |
Total assets | 83,599 | 81,758 |
LIABILITIES AND EQUITY | ||
Short-term debt | 774 | 1,077 |
Current portion of long-term debt | 2,097 | 2,697 |
Accounts payable | 1,904 | 1,983 |
Wildfire-related claims | 160 | 30 |
Accrued interest | 440 | 390 |
Regulatory liabilities | 988 | 763 |
Current portion of operating lease liabilities | 119 | 120 |
Other current liabilities | 1,425 | 1,538 |
Total current liabilities | 7,907 | 8,598 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | 32,576 | 30,316 |
Deferred income taxes and credits | 6,669 | 6,672 |
Pensions and benefits | 412 | 415 |
Asset retirement obligations | 2,667 | 2,666 |
Regulatory liabilities | 9,814 | 9,420 |
Operating lease liabilities | 1,087 | 1,101 |
Wildfire-related claims | 1,657 | 1,368 |
Other deferred credits and other long-term liabilities | 3,195 | 3,258 |
Total deferred credits and other liabilities | 25,501 | 24,900 |
Total liabilities | 65,984 | 63,814 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock outstanding value | 1,654 | 1,673 |
Common stock, no par value, including additional paid-in capital | 6,361 | 6,338 |
Accumulated other comprehensive loss | (9) | (9) |
Retained earnings | 7,166 | 7,499 |
Total Edison International's shareholders' equity | 15,172 | 15,501 |
Noncontrolling interests - preference stock of SCE | 2,443 | 2,443 |
Total equity | 17,615 | 17,944 |
Total liabilities and equity | 83,599 | 81,758 |
SCE Recovery Funding LLC | ||
ASSETS | ||
Other current assets | 77 | 53 |
Regulatory assets (include $1,547 and $1,558 related to VIEs at respective dates) | 1,547 | 1,558 |
LIABILITIES AND EQUITY | ||
Current portion of long-term debt | 47 | 47 |
Regulatory liabilities | 32 | 34 |
Other current liabilities | 20 | 6 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | 1,516 | 1,515 |
SCE | ||
ASSETS | ||
Cash and cash equivalents | 850 | 214 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,876 | 1,981 |
Accrued unbilled revenue | 777 | 741 |
Inventory | 519 | 527 |
Prepaid expenses | 243 | 111 |
Regulatory assets | 2,989 | 2,524 |
Wildfire Insurance Fund contributions | 138 | 204 |
Other current assets | 319 | 331 |
Total current assets | 7,711 | 6,633 |
Nuclear decommissioning trusts | 4,288 | 4,173 |
Other investments | 46 | 38 |
Total investments | 4,334 | 4,211 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $13,227 and $12,910 at respective dates | 56,483 | 55,877 |
Nonutility property, plant and equipment, less accumulated depreciation at respective dates | 199 | 201 |
Total property, plant and equipment | 56,682 | 56,078 |
Regulatory assets (include $1,547 and $1,558 related to VIEs at respective dates) | 8,806 | 8,897 |
Wildfire Insurance Fund contributions | 1,982 | 1,951 |
Operating lease right-of-use assets | 1,199 | 1,214 |
Other long-term assets | 2,109 | 1,987 |
Total other assets | 14,607 | 14,561 |
Total assets | 83,334 | 81,483 |
LIABILITIES AND EQUITY | ||
Short-term debt | 511 | 831 |
Current portion of long-term debt | 1,597 | 2,197 |
Accounts payable | 1,899 | 1,966 |
Wildfire-related claims | 160 | 30 |
Accrued interest | 361 | 355 |
Regulatory liabilities | 988 | 763 |
Current portion of operating lease liabilities | 118 | 118 |
Other current liabilities | 1,431 | 1,535 |
Total current liabilities | 7,065 | 7,795 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | 28,555 | 26,297 |
Deferred income taxes and credits | 8,152 | 8,126 |
Pensions and benefits | 105 | 105 |
Asset retirement obligations | 2,667 | 2,666 |
Regulatory liabilities | 9,814 | 9,420 |
Operating lease liabilities | 1,081 | 1,096 |
Wildfire-related claims | 1,657 | 1,368 |
Other deferred credits and other long-term liabilities | 3,141 | 3,206 |
Total deferred credits and other liabilities | 26,617 | 25,987 |
Total liabilities | 62,237 | 60,079 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock outstanding value | 2,495 | 2,495 |
Common stock, no par value | 2,168 | 2,168 |
Additional paid-in capital | 8,433 | 8,446 |
Accumulated other comprehensive loss | (11) | (12) |
Retained earnings | 8,012 | 8,307 |
Total equity | 21,097 | 21,404 |
Total liabilities and equity | 83,334 | 81,483 |
SCE | Nonrelated party | ||
ASSETS | ||
Long-term insurance receivables | 146 | 157 |
SCE | Affiliate | ||
ASSETS | ||
Long-term insurance receivables | 365 | 355 |
SCE | SCE Recovery Funding LLC | ||
ASSETS | ||
Regulatory assets (include $1,547 and $1,558 related to VIEs at respective dates) | 1,547 | 1,558 |
LIABILITIES AND EQUITY | ||
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | $ 1,516 | $ 1,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Receivables, allowances for uncollectible accounts | $ 342 | $ 360 |
Utility property, plant and equipment, accumulated depreciation | 13,227 | 12,910 |
Nonutility property, plant and equipment, accumulated depreciation | 116 | 114 |
Regulatory assets: non-current | 8,806 | 8,897 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | $ 32,576 | $ 30,316 |
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 | 384,735,109 | 383,924,912 |
Common stock, shares outstanding | 384,735,109 | 383,924,912 |
SCE Recovery Funding LLC | ||
Regulatory assets: non-current | $ 1,547 | $ 1,558 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | $ 1,516 | $ 1,515 |
Series A | ||
Preferred stock, shares issued | 1,159,317 | 1,159,317 |
Preferred stock, shares outstanding | 1,159,317 | 1,159,317 |
Series B | ||
Preferred stock, shares outstanding | 512,454 | 532,454 |
Common stock, shares issued | 512,454 | 532,454 |
SCE | ||
Receivables, allowances for uncollectible accounts | $ 341 | $ 360 |
Utility property, plant and equipment, accumulated depreciation | 13,227 | 12,910 |
Nonutility property, plant and equipment, accumulated depreciation | 102 | 100 |
Regulatory assets: non-current | 8,806 | 8,897 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | $ 28,555 | $ 26,297 |
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 | $ 1,547 | $ 1,558 |
Long-term debt (include $1,516 and $1,515 related to VIEs at respective dates) | $ 1,516 | $ 1,515 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 52 | $ 365 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 707 | 676 |
Equity allowance for funds used during construction | (47) | (36) |
Deferred income taxes | (114) | 12 |
Wildfire Insurance Fund amortization expense | 36 | 52 |
Other | 13 | 8 |
Nuclear decommissioning trusts | (20) | (19) |
Changes in operating assets and liabilities: | ||
Receivables | 84 | 227 |
Inventory | 5 | (29) |
Accounts payable | (19) | (508) |
Tax receivables and payables | (2) | (9) |
Other current assets and liabilities | (300) | (329) |
Derivative assets and liabilities, net | (17) | (99) |
Regulatory assets and liabilities, net | 250 | (296) |
Wildfire-related claims | 419 | (133) |
Other noncurrent assets and liabilities | (4) | 28 |
Net cash provided by (used in) operating activities | 1,043 | (90) |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 2,976 | 1,681 |
Long-term debt repaid | (601) | (401) |
Short-term debt repaid | (390) | (600) |
Common stock issued | 12 | 10 |
Preferred stock repurchased | (19) | |
Commercial paper (repayments) borrowing, net | (622) | 960 |
Dividends and distribution to noncontrolling interests | (43) | (29) |
Common stock dividends paid | (295) | (277) |
Preferred\Preference stock dividends paid | (44) | (52) |
Other | 14 | 24 |
Net cash provided by financing activities | 988 | 1,316 |
Cash flows from investing activities: | ||
Capital expenditures | (1,279) | (1,324) |
Proceeds from sale of nuclear decommissioning trust investments | 1,258 | 951 |
Purchases of nuclear decommissioning trust investments | (1,257) | (932) |
Other | 2 | |
Net cash used in investing activities | (1,276) | (1,305) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 755 | (79) |
Cash, cash equivalents and restricted cash at beginning of period | 532 | 917 |
Cash, cash equivalents and restricted cash at end of period | 1,287 | 838 |
SCE | ||
Cash flows from operating activities: | ||
Net income | 106 | 399 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 707 | 673 |
Equity allowance for funds used during construction | (47) | (36) |
Deferred income taxes | (85) | 28 |
Wildfire Insurance Fund amortization expense | 36 | 52 |
Other | 8 | 2 |
Nuclear decommissioning trusts | (20) | (19) |
Changes in operating assets and liabilities: | ||
Receivables | 69 | 235 |
Inventory | 5 | (29) |
Accounts payable | (7) | (505) |
Tax receivables and payables | (2) | (9) |
Other current assets and liabilities | (334) | (318) |
Derivative assets and liabilities, net | (17) | (99) |
Regulatory assets and liabilities, net | 250 | (296) |
Wildfire-related claims | 419 | (133) |
Other noncurrent assets and liabilities | (2) | 35 |
Net cash provided by (used in) operating activities | 1,086 | (20) |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 2,976 | 1,186 |
Long-term debt repaid | (601) | (1) |
Short-term debt repaid | (375) | 0 |
Commercial paper (repayments) borrowing, net | (656) | 431 |
Common stock dividends paid | (360) | (350) |
Preferred\Preference stock dividends paid | (43) | (29) |
Other | (7) | 12 |
Net cash provided by financing activities | 934 | 1,249 |
Cash flows from investing activities: | ||
Capital expenditures | (1,278) | (1,324) |
Proceeds from sale of nuclear decommissioning trust investments | 1,258 | 951 |
Purchases of nuclear decommissioning trust investments | (1,257) | (932) |
Other | 1 | 0 |
Net cash used in investing activities | (1,276) | (1,305) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 744 | (76) |
Cash, cash equivalents and restricted cash at beginning of period | 398 | 766 |
Cash, cash equivalents and restricted cash at end of period | $ 1,142 | $ 690 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Premium and net of discount and issuance costs | $ 24 | $ 19 |
SCE | ||
Premium and net of discount and issuance costs | $ 24 | $ 14 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 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, doing business as Trio ("Trio") beginning in 2024. 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 across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio'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, 2023 (the "2023 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2023 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, 2023 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 accrued interest on Edison International’s and SCE’s consolidated balance sheets. 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 March 31, December 31, March 31, December 31, (in millions) 2024 2023 2024 2023 Money market funds $ 123 $ 199 $ — $ 78 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: March 31, December 31, (in millions) 2024 2023 Edison International: Cash and cash equivalents $ 992 $ 345 Short-term restricted cash 1 67 35 Long-term restricted cash 2 228 152 Total cash, cash equivalents and restricted cash $ 1,287 $ 532 SCE: Cash and cash equivalents $ 850 $ 214 Short-term restricted cash 1 64 33 Long-term restricted cash 2 228 151 Total cash, cash equivalents and restricted cash $ 1,142 $ 398 1 Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information. 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 which 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 March 31, 2024 March 31, 2023 (in millions) Customers All others Total Customers All others Total Beginning balance $ 347 $ 17 $ 364 2 $ 334 $ 20 $ 354 Current period provision for uncollectible accounts 1 60 1 61 20 — 20 Write-offs, net of recoveries (60) (2) (62) (28) (2) (30) Ending balance $ 347 $ 16 $ 363 2 $ 326 $ 18 $ 344 1 This includes $50 million and $14 million of incremental costs, for the three months ended March 31, 2024 and 2023, respectively, which were probable of recovery from customers and recorded as regulatory assets. 2 Approximately $22 million and $4 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. Wildfire Insurance Fund Based on information available in January of 2024 regarding catastrophic wildfires during 2023, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. After incorporating 2023 expected losses into the historical data for the Monte Carlo simulations, SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund increased from 15 to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund. Accordingly, the change resulted in a reduction in wildfire insurance fund expense from $52 million in the three months ended March 31, 2023 to $36 million in the three months ended March 31, 2024. 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 March 31, (in millions, except per-share amounts) 2024 2023 Basic earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Weighted average common shares outstanding 385 383 Basic (loss) earnings per share $ (0.03) $ 0.81 Diluted (loss) earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Income impact of assumed conversions — 1 Net (loss) income available to common shareholders and assumed conversions $ (11) $ 311 Weighted average common shares outstanding 385 383 Incremental shares from assumed conversions 1 — 1 Adjusted weighted average shares – diluted 385 384 Diluted (loss) earnings per share $ (0.03) $ 0.81 1 Due to the loss reported for the quarter ended March 31, 2024, incremental shares were not included as the effect would be antidilutive. 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 4,202,791 and 4,414,113 shares of common stock for the three months ended March 31, 2024 and 2023, 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 2024 Formula Rate Update In November 2023, SCE filed its 2024 annual transmission revenue requirement update with the FERC, with the rate effective January 1, 2024. The update reflects a $1.1 billion transmission revenue requirement for 2024, $290 million or 20% lower than amounts included in the 2023 annual rates. The decrease is primarily due to returning an overcollection based on actual 2022 costs and lower wildfire-related claims. New Accounting Guidance Accounting Guidance Adopted No material accounting standards were adopted in 2024. Accounting Guidance Not Yet Adopted In November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. The guidance will be effective for annual disclosures for the year ended December 31, 2024 and subsequent interim periods with early adoption permitted. The guidance is applied retrospectively to all periods presented in the financial statements. Edison International and SCE have one reportable segment and are currently evaluating the impact of any increased segment disclosures. In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 3 Months Ended |
Mar. 31, 2024 | |
Consolidated Statements of Changes in Equity | |
Consolidated Statements of Changes in Equity | Note 2. The following table provides Edison International's changes in equity for the three months ended March 31, 2024: 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, 2023 $ 1,673 $ 6,338 $ (9) $ 7,499 $ 15,501 $ 2,443 $ 17,944 Net income — — — 11 11 41 52 Common stock issued — 11 — — 11 — 11 Common stock dividends declared ($0.78 per share) — — — (300) (300) — (300) Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B) — — — (44) (44) — (44) Dividends to noncontrolling interests ($24.418 - $58.854 per share for preference stock) — — — — — (41) (41) Noncash stock-based compensation — 12 — — 12 — 12 Preferred stock repurchased (19) — — — (19) — (19) Balance at March 31, 2024 $ 1,654 $ 6,361 $ (9) $ 7,166 $ 15,172 $ 2,443 $ 17,615 The following table provides Edison International's changes in equity for the three months ended March 31, 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 — 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 The following table provides SCE's changes in equity for the three months ended March 31, 2024: 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, 2023 $ 2,495 $ 2,168 $ 8,446 $ (12) $ 8,307 $ 21,404 Net income — — — — 106 106 Other comprehensive income — — — 1 — 1 Dividends declared on common stock ($0.8278 per share) — — — — (360) (360) Dividends declared on preference stock ($24.418 - $58.854 per share) — — — — (41) (41) Stock-based compensation — — (20) — — (20) Noncash stock-based compensation — — 7 — — 7 Balance at March 31, 2024 $ 2,495 $ 2,168 $ 8,433 $ (11) $ 8,012 $ 21,097 The following table provides SCE's changes in equity for the three months ended March 31, 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 declared 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 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
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. 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. The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets. March 31, December 31, (in millions) 2024 2023 Other current assets $ 77 $ 53 Regulatory assets: non-current 1,547 1,558 Regulatory liabilities: current 32 34 Current portion of long-term debt 1 47 47 Other current liabilities 20 6 Long-term debt 1 1,516 1,515 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, which SCE does not perform. 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 2023 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 4,642 MW and 3,844 MW at March 31, 2024 and 2023, respectively. The amounts that SCE paid to these projects were $157 million and $170 million for the three months ended March 31, 2024 and 2023, 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, Trust VI and Trust VII were utilized in 2013, 2014, 2015, 2016, 2017 and 2023 respectively, for the exclusive purpose of issuing the 5.10%, 5.75%, 5.375%, 5.45%, 5.00% and 7.50% 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, Trust VI and Trust VII issued to the public trust securities in the face amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 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, Series L and Series M Preference Stock issued by SCE in the principal amounts of $400 million, $275 million, $325 million, $300 million, $475 million and $550 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, Series L and Series M 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, Series L or Series M 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, Trust VI and Trust VII balance sheets as of March 31, 2024 and December 31, 2023 consisted of investments of $220 million, $275 million, $325 million, $300 million, $475 million and $550 million in the Series G, Series H, Series J, Series K, Series L and Series M Preference Stock, respectively, $220 million, $275 million, $325 million, $300 million, $475 million and $550 million of trust securities, respectively, and $10,000 each of common stock. The following table provides a summary of the trusts' income statements: Three months ended March 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI Trust VII 2024 Dividend income $ 3 $ 4 $ 4 $ 4 $ 6 $ 10 Dividend distributions 3 4 4 4 6 10 2023 Dividend income $ 3 $ 4 $ 4 $ 4 $ 6 $ — Dividend distributions 3 4 4 4 6 — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, nonperformance risk was not material for Edison International or 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 commodity 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 commodity 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 – This level includes congestion revenue rights ("CRRs"), which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available, and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: March 31, 2024 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 3 $ 80 $ (3) $ 80 Money market funds and other — 22 — — 22 Nuclear decommissioning trusts: Stocks 2 1,750 — — — 1,750 Fixed Income 3 861 1,499 — — 2,360 Short-term investments, primarily cash equivalents 307 39 — — 346 Subtotal of nuclear decommissioning trusts 4 2,918 1,538 — — 4,456 Total assets 2,918 1,563 80 (3) 4,558 Liabilities at fair value Derivative contracts — 94 — (94) — Total liabilities — 94 — (94) — Net assets $ 2,918 $ 1,469 $ 80 $ 91 $ 4,558 December 31, 2023 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 3 $ 91 $ (3) $ 91 Money market funds and other 78 22 — — 100 Nuclear decommissioning trusts: Stocks 2 1,658 — — — 1,658 Fixed Income 3 923 1,421 — — 2,344 Short-term investments, primarily cash equivalents 169 104 — — 273 Subtotal of nuclear decommissioning trusts 4 2,750 1,525 — — 4,275 Total assets 2,828 1,550 91 (3) 4,466 Liabilities at fair value Derivative contracts — 77 — (77) — Total liabilities — 77 — (77) — Net assets $ 2,828 $ 1,473 $ 91 $ 74 $ 4,466 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 76% and 75% SCE's equity investments were in companies located in the United States at March 31, 2024 and December 31, 2023, respectively. 3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $105 million and $106 million at March 31, 2024 and December 31, 2023, respectively. 4 Excludes net payables of $168 million and $102 million at March 31, 2024 and December 31, 2023, 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 March 31, (in millions) 2024 2023 Fair value of net assets at beginning of period $ 91 $ 63 Settlements — (12) Total realized/unrealized losses 1 (11) (4) Fair value of net assets at end of period $ 80 $ 47 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 2024 and 2023. The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities: Fair Value Significant Weighted (in millions) Unobservable Range Average Assets Liabilities Input (per MWh) (per MWh) Congestion revenue rights March 31, 2024 $ 80 $ — CAISO CRR auction prices ($14.15) - $3,775.52 $ 3.05 December 31, 2023 91 — CAISO CRR auction prices (6.44) - 16,574.36 2.74 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. See Note 10 for more information on 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 money market funds of $123 million and $121 million at March 31, 2024 and December 31, 2023, respectively. Assets measured at fair value and classified as Level 2 consisted of short-term investments of $1 million and $2 million at March 31, 2024 and December 31, 2023, respectively. 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: March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 34,673 $ 32,472 $ 33,013 $ 31,315 SCE 30,152 27,881 28,494 26,712 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 | 3 Months Ended |
Mar. 31, 2024 | |
Debt and Credit Agreements | |
Debt and Credit Agreements | Note 5. Long-Term Debt During the three months ended March 31, 2024, SCE issued the following first and refunding mortgage bonds: Description Month of Issuance Rate Maturity Date Amount Series 2024A January 2024 4.875% 2027 $ 500 Series 2024B January 2024 5.20% 2034 900 Series 2024C March 2024 5.35% 2026 600 Series 2024D March 2024 5.15% 2029 600 Series 2024E March 2024 5.75% 2054 400 The proceeds were used to fund and refinance debt for the payment of wildfire claims and related expenses above the amount of insurance proceeds, repay commercial paper borrowings, and for general corporate purposes. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at March 31, 2024: (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 $ 263 $ — $ 1,237 SCE 2, 3 May 2027 108 3,350 512 17 2,821 Total Edison International $ 4,850 $ 775 $ 17 $ 4,058 1 At March 31, 2024, Edison International Parent had $263 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.51% . 2 At March 31, 2024, SCE had $511 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.58% . 3 The credit facilities have 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. Uncommitted Letters of Credit SCE entered into agreements with certain lenders for bilateral unsecured standby letters of credit ("SBLC") with a total capacity of $625 million that is uncommitted and supported by reimbursement agreements. The SBLCs are not subject to any collateral or security requirements. At March 31, 2024, SCE had $ million outstanding under these agreements, which expire before the end of 2024. The unused capacity under these agreements was $ million. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments | |
Derivative Instruments | I e 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 fair value of these derivative contracts and any related collateral were immaterial as of March 31, 2024 and December 31, 2023. Fair Value of Derivative Instruments SCE presents its derivative assets and liabilities, recorded at fair value, on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: March 31, 2024 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Commodity derivative contracts Gross amounts recognized $ 83 $ 94 Gross amounts offset in the consolidated balance sheets (3) (3) Cash collateral posted — (91) Net amounts presented in the consolidated balance sheets $ 80 $ — December 31, 2023 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Commodity derivative contracts Gross amounts recognized $ 94 $ 77 Gross amounts offset in the consolidated balance sheets (3) (3) Cash collateral posted — (74) Net amounts presented in the consolidated balance sheets $ 91 $ — 1 Included in "Other current assets" on SCE's consolidated balance sheets. At March 31, 2024, SCE posted and accrued $137 million of cash collateral, of which $91 million was offset against derivative liabilities and $46 million was reflected in "Other current assets" on SCE's consolidated balance sheets. At December 31, 2023, SCE posted and accrued $121 million of cash collateral, of which $74 million was offset against derivative liabilities and $47 million was reflected in "Other current assets" on the consolidated balance sheets. 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 March 31, (in millions) 2024 2023 Realized $ (71) $ 116 Unrealized (28) (264) 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 March 31, 2024 December 31, 2023 Electricity options, swaps and forwards Gigawatt hours 5,533 3,494 Natural gas options, swaps and forwards Billion cubic feet 22 31 Congestion revenue rights Gigawatt hours 27,612 35,011 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Three months ended March 31, 2023 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenue from contracts with customers 1 $ 2,175 $ 1,595 $ 3,770 $ 2,076 $ 1,660 $ 3,736 Alternative revenue programs and other operating revenue 2 274 20 294 157 57 214 Total operating revenue $ 2,449 $ 1,615 $ 4,064 $ 2,233 $ 1,717 $ 3,950 1 At March 31, 2024 and December 31, 2023, SCE's receivables related to contracts from customers were $ 2.6 billion and $2.5 billion, respectively, which include accrued unbilled revenue of $ 777 million and $741 million, respectively. 2 Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues. Deferred Revenue As of March 31, 2024, SCE has deferred revenue of $364 million related to the 2021 sale of transmission line use, of which $351 million is included in "Other deferred credits and other long-term liabilities" on SCE's consolidated balance sheets and is being amortized straight-line over the period of use of 30 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
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: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 (Loss) income from operations before income taxes $ (61) $ 378 $ 22 $ 428 Provision for income tax at federal statutory rate of 21% (13) 79 5 90 (Decrease) increase in income tax from: State tax, net of federal income tax effect (37) (1) (31) 3 Property-related (55) (58) (55) (58) Other (8) (7) (3) (6) Total income tax (benefit) expense $ (113) $ 13 $ (84) $ 29 Effective tax rate 185.2 % 3.4 % (381.8) % 6.8 % 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 The tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2020 – 2022 and 2013 – 2022, respectively. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Compensation and Benefit Plans | |
Compensation and Benefit Plans | Note 9. Pension Plans Net periodic pension expense components are: Three months ended March 31, (in millions) 2024 2023 Edison International: Service cost $ 24 $ 25 Non-service cost (benefit) Interest cost 44 45 Expected return on plan assets (59) (54) Amortization of net loss 1 1 1 Regulatory adjustment (5) (12) Total non-service benefit 2 $ (19) $ (20) Total expense $ 5 $ 5 SCE: Service cost $ 24 $ 24 Non-service cost (benefit) Interest cost 40 42 Expected return on plan assets (55) (51) Amortization of net loss 1 1 — Regulatory adjustment (5) (12) Total non-service benefit 2 $ (19) $ (21) Total expense $ 5 $ 3 1 Represents the amount of net loss reclassified from other comprehensive loss. 2 Included in "Other Income, net" 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 March 31, (in millions) 2024 2023 Service cost $ 3 $ 5 Non-service cost (benefit) Interest cost 9 18 Expected return on plan assets (28) (27) Amortization of net gain (24) (12) Regulatory adjustment 40 16 Total non-service benefit 1 $ (3) $ (5) Total expense $ — $ — 1 Included in "Other income, net" on Edison International ' s and SCE ' s consolidated statements of income . |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 on fair value of the trust investments): Amortized Costs Fair Values Longest March 31, December 31, March 31, December 31, (in millions) Maturity Dates 2024 2023 2024 2023 Municipal bonds 2067 $ 647 $ 636 $ 760 $ 757 Government and agency securities 2073 1,044 1,072 1,137 1,186 Corporate bonds 2072 422 361 463 401 Short-term investments and receivables/payables 1 One-year 169 164 178 171 Total debt securities and other $ 2,282 $ 2,233 2,538 2,515 Equity securities 1,750 1,658 Total 2 $ 4,288 $ 4,173 1 As of March 31, 2024 and December 31, 2023, short-term investments included $86 million and $38 million of repurchase agreement payable by financial institutions which earned interest, were fully secured by U.S. Treasury securities, and mature by April 1, 2024 and January 2, 2024, respectively. 2 Represents amounts before reduction for deferred tax liabilities on net unrealized gains of $402 million and $380 million as of March 31, 2024 and December 31, 2023, 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 $1.8 billion at both March 31, 2024 and December 31, 2023. The following table summarizes the gains and losses for the trust investments: Three months ended March 31, (in millions) 2024 2023 Gross realized gains $ 55 $ 71 Gross realized losses (9) (23) Net unrealized gains for equity securities 95 75 Due to regulatory mechanisms, changes in the 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 holds strategic investments in companies focused on developing electric technologies and services, included as "Other investments" on Edison International's consolidated balance sheets. As of March 31, 2024 and December 31, 2023, these investments include |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Assets and Liabilities | |
Regulatory Assets and Liabilities | Note 11. Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: March 31, December 31, (in millions) 2024 2023 Current: Regulatory balancing and memorandum accounts $ 2,955 $ 2,502 Other 34 22 Total current 2,989 2,524 Long-term: Deferred income taxes 5,651 5,533 Unamortized investments, net of accumulated amortization 111 110 Unamortized losses on reacquired debt 96 99 Regulatory balancing and memorandum accounts 1,061 1,257 Environmental remediation 227 226 Recovery assets 1,547 1,558 Other 113 114 Total long-term 8,806 8,897 Total regulatory assets $ 11,795 $ 11,421 Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: March 31, December 31, (in millions) 2024 2023 Current: Regulatory balancing and memorandum accounts $ 947 $ 704 Other 41 59 Total current 988 763 Long-term: Costs of removal 2,626 2,635 Deferred income taxes 2,199 2,211 Recoveries in excess of ARO liabilities 1,627 1,498 Regulatory balancing and memorandum accounts 1,673 1,395 Pension and other postretirement benefits 1,674 1,664 Other 15 17 Total long-term 9,814 9,420 Total regulatory liabilities $ 10,802 $ 10,183 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: March 31, December 31, (in millions) 2024 2023 Asset (liability) Energy procurement related costs $ (79) $ 397 Public purpose and energy efficiency (1,815) (1,736) GRC related balancing accounts 1,738 1,361 Wildfire risk mitigation and insurance 834 1,169 Wildfire and drought restoration 423 417 Other 295 52 Assets, net of liabilities $ 1,396 $ 1,660 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies. | |
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. Legal costs expected to be incurred by Edison International and SCE in connection with loss contingencies are expensed as incurred. 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 has been 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) and other fires, which are described below. In addition, SCE's equipment has been, and may further be, alleged to be associated with other wildfires that have originated in Southern California. 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," and collectively with the Thomas Fire and the Koenigstein Fire, "TKM") 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 Recent Developments Management’s first quarter 2024 review of its loss estimates for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events, included a review of information received during the quarter about outstanding claims, including and from settling claims through the quarter. As a result of management's review, a $490 million increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events as of March 31, 2024 was recorded. As a result, SCE recorded expected recoveries through FERC electric rates of $27 million against the charge. The resulting net charge to earnings was $463 million ( $333 million after-tax). As of March 31, 2024, SCE had paid $8.8 billion under executed settlements, had $200 million to be paid under executed settlements, including $60 million to be paid under the SED Agreement (as defined below), and had $831 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 $64 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 estimates of potential 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 as the claims mediation and trial processes progress. Other factors that can cause actual losses incurred to be higher or lower than estimated include the ability to reach settlements and the outcomes of settlements reached through the ongoing claims mediation processes, uncertainties related to the impact of outcomes of wildfire litigation against other parties and increasingly negative jury sentiments in general litigation, uncertainties related to the sufficiency of insurance held by plaintiffs, uncertainties related to the litigation processes, including whether plaintiffs will ultimately pursue claims, uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge and whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the uncertainty as to how these factors impact future settlements. 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 by or contributed to 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. As of April 23, 2024, in addition to the outstanding claims of approximately 1,300 individual plaintiffs, there were alleged and potential claims of certain public entity plaintiffs, including the California Governor's Office of Emergency Service ("Cal OES") and CAL FIRE in the TKM litigation, outstanding. 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). Several of these cross-claims have been settled or dismissed. Settlements In 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 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 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 April 23, 2024, SCE has also entered into settlements with approximately 13,000 indi The statutes of limitations for individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events have expired. As of April 23, 2024, SCE has received demands for approximately 96% and 88% of outstanding individual plaintiff claims in the TKM litigation and Woolsey litigation, respectively. 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 March 31, 2024 and December 31, 2023, Edison International's and SCE's consolidated balance sheets included fixed payments to be made under executed settlement agreements and accrued estimated losses of $1.0 billion and $715 million, respectively, for claims related to the 2017/2018 Wildfire/Mudslide Events. The following table presents changes in estimated losses since December 31, 2023: (in millions) Balance at December 31, 2023 1 $ 715 Increase in accrued estimated losses 490 Amounts paid (174) Balance at March 31, 2024 2 $ 1,031 1 At December 31, 2023, $30 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $16 million of settlements executed and $14 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2023, the $1,368 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 $637 million, $48 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $683 million. 2 At March 31, 2024, $160 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $140 million of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events, $14 million of short term payables under the SED Agreement, and $6 million of settlements executed in connection with the Other Wildfires. At March 31, 2024, the $1,657 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 $831 million, $46 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $780 million. For the three months ended March 31, 2024 and 2023, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from FERC customers, related to the 2017/2018 Wildfire/Mudslide Events claims as follows: Three months ended March 31, (in millions) 2024 2023 Charge for wildfire-related claims $ 490 $ 90 Expected revenue from FERC customers (27) (6) Total pre-tax charge 463 84 Income tax benefit (130) (23) Total after-tax charge $ 333 $ 61 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 March 31, 2024, SCE has accrued estimated losses of $9.9 billion, has paid or is obligated to pay approximately $9.0 billion in settlements, including $60 million to be paid under the SED Agreement, and has recovered $2.0 billion from its insurance carriers in relation to the claims related 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 claims 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 claims related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire claims related costs based on a determination that SDG&E did not meet the CPUC's prudency standard ("SDG&E Decision"). 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. In August 2023, SCE filed an application ("TKM Application") with the CPUC to seek rate recovery of $2.4 billion of prudently incurred losses related to the Thomas Fire, the Koenigstein Fire and the Montecito Mudslides, consisting of $2.0 billion of uninsured claims and $0.4 billion of associated costs, including legal fees and financing costs. The TKM Application seeks recovery of amounts paid as of July 31, 2023. In the application, SCE proposed a true-up process for claims payments made after that date, and associated costs. 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 $440 million within the FERC balancing account. This was the FERC portion of the total estimated losses accrued. As of March 31, 2024, collections have reduced the regulatory assets remaining in the FERC balancing account to $64 million. SCE will continue to evaluate the probability of recovery of FERC-jurisdictional wildfire and mudslide related costs based on available evidence, including any FERC decisions to allow or disallow recovery of FERC-jurisdictional wildfire-related costs based on a state regulator's decision on whether to permit recovery of related costs. As of March 31, 2024, SCE has $169 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in cost recovery proceedings. In its TKM Application, SCE is seeking capital recovery of approximately $65 million in restoration costs related to the Thomas and Koenigstein Fires. SCE expects to seek to recover the costs incurred for reconstructing its system and restoring service to structures that were damaged or destroyed by the Woolsey Fire in the future. Other Wildfires In addition to the Thomas, Koenigstein and Woolsey Fires, several other wildfires that ignited in and after 2017 impacted portions of SCE's service territory. Wildfires, where SCE's equipment has been and may be further alleged to be associated with the fire's ignition, that originated in Southern California (i) in 2017 or 2018, other than the Thomas, Koenigstein and Woolsey Fires, are referred to collectively as the "Other 2017/2018 Wildfires," (ii) after 2018 are referred to collectively as the "Post-2018 Wildfires." The Post-2018 Wildfires and the Other 2017/2018 Wildfires are referred to collectively as the "Other Wildfires." During the three months ended March 31, 2024, SCE accrued estimated losses of $180 million for claims related to the Other Wildfires, against which SCE has recorded expected recoveries from insurance of $56 million and expected recoveries through electric rates of $7 million. The resulting net charge to earnings was $117 million ( $84 million after-tax). Through SCE has recorded and expected recoveries through electric rates of $175 million related to the Other Wildfires claims. The after-tax net charges to earnings recorded through March 31, 2024 have been $152 million. As of March $780 million. A s of the same date, SCE had assets for expected recoveries through insurance and third parties of $516 million and through electric rates of $156 million on its consolidated balance sheets related to the Other Wildfires. Other 2017/2018 Wildfires Numerous claims related to the Other 2017/2018 Wildfires have been initiated against SCE. The SED is also conducting investigations with respect to some Other 2017/2018 Wildfires. 2017 Creek Fire The Creek Fire originated near Sylmar in Los Angeles County in December 2017 and burned approximately 16,000 acres, destroyed an estimated 123 structures, damaged an estimated 81 structures, and resulted in 3 civilian injuries. While the United States Forest Service's ("USFS") report of investigation concludes that the Los Angeles Department of Water and Power ("LADWP") long-span transmission lines slapping together in high winds resulted in arcing and ignition of the fire, the USFS has dismissed its claim against LADWP and filed a claim against SCE to recover over $40 million for fire-suppression costs incurred by the USFS and environmental damage to U.S. lands. Individual and subrogation plaintiffs have also filed complaints against SCE related to the Creek Fire. An individual plaintiff bellwether jury trial in the Creek Fire litigation is currently set for October 2024 and a trial in the USFS litigation is currently set for July 2025. SCE e |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity | |
Equity | Note 13. Equity Common Stock Issuances As of March 31, 2024, Edison International had 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 March 31, 2024, 661,530 shares of common stock were issued as stock compensation awards for net cash receipts of $18 million, 70,246 shares of new common stock were issued in lieu of distributing $5 million to shareholders opting to receive dividend payments in the form of additional common stock, 43,300 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 and 31,112 shares of common stock were issued to employees through the Employee Stock Purchase Plan for net cash receipts of $2 million. Preferred Stock In March 2024, Edison International repurchased 20,000 shares of its Series B Preferred Stock on the open market at an average price of $952 per share, including accrued and unpaid dividends for an aggregate amount of $19 million. Edison International recognized a net gain of $1 million from the open market repurchase, reflected in "Preferred stock dividend requirements of Edison International" on the consolidated statements of income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Consolidated Statements of Changes in Equity | |
Accumulated Other Comprehensive Loss | Note 14. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 Beginning balance $ (9) $ (11) $ (12) $ (8) Pension and PBOP: Reclassified from accumulated other comprehensive loss 1 — — 1 — Foreign currency translation adjustments — 2 — — Change — 2 1 — Ending Balance $ (9) $ (9) $ (11) $ (8) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . |
Other Income, Net
Other Income, Net | 3 Months Ended |
Mar. 31, 2024 | |
Other Income, Net | |
Other Income, Net | Note 15. Other Income, Net Other income net of expenses is as follows: Three months ended March 31, (in millions) 2024 2023 SCE other income (expense): Equity allowance for funds used during construction $ 47 $ 36 Increase in cash surrender value of life insurance policies and life insurance benefits 12 11 Interest income 64 60 Net periodic benefit income – non-service components 22 26 Civic, political and related activities and donations (7) (9) Other (3) (4) Total SCE other income, net 135 120 Other income (expense) of Edison International Parent and Other: Net (losses) gains on equity securities — (3) Interest income and other 3 2 Total Edison International other income, net $ 138 $ 119 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flows Information | |
Supplemental Cash Flows Information | Note 16. Supplemental Cash Flows Information Supplemental cash flows information is: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 Cash payments (receipts): Interest, net of amounts capitalized $ 348 $ 326 $ 322 $ 292 Income taxes, net — — — — Non-cash financing and investing activities: Dividends declared but not paid: Common stock 300 282 360 350 Preference stock of SCE 9 8 9 8 SCE's accrued capital expenditures at March 31, 2024 and 2023 were $620 million and $592 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 | 3 Months Ended |
Mar. 31, 2024 | |
Related-Party Transactions | |
Related-Party Transactions | Note 17. Related-Party Transactions In July 2022, SCE purchased wildfire liability insurance for premiums of $273 million, from Edison Insurance Services ("EIS"), a wholly-owned subsidiary of Edison International, for the period to June 30, 2023. SCE subsequently did not renew or purchase wildfire liability insurance from EIS for additional periods. In lieu of obtaining wildfire liability insurance from the commercial insurance market, SCE implemented its customer-funded wildfire self-insurance program beginning |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, doing business as Trio ("Trio") beginning in 2024. 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 across Southern, Central and Coastal California. Trio is a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers. Trio'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, 2023 (the "2023 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2023 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, 2023 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 accrued interest on Edison International’s and SCE’s consolidated balance sheets. |
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 March 31, December 31, March 31, December 31, (in millions) 2024 2023 2024 2023 Money market funds $ 123 $ 199 $ — $ 78 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: March 31, December 31, (in millions) 2024 2023 Edison International: Cash and cash equivalents $ 992 $ 345 Short-term restricted cash 1 67 35 Long-term restricted cash 2 228 152 Total cash, cash equivalents and restricted cash $ 1,287 $ 532 SCE: Cash and cash equivalents $ 850 $ 214 Short-term restricted cash 1 64 33 Long-term restricted cash 2 228 151 Total cash, cash equivalents and restricted cash $ 1,142 $ 398 1 Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information. |
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 which 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 March 31, 2024 March 31, 2023 (in millions) Customers All others Total Customers All others Total Beginning balance $ 347 $ 17 $ 364 2 $ 334 $ 20 $ 354 Current period provision for uncollectible accounts 1 60 1 61 20 — 20 Write-offs, net of recoveries (60) (2) (62) (28) (2) (30) Ending balance $ 347 $ 16 $ 363 2 $ 326 $ 18 $ 344 1 This includes $50 million and $14 million of incremental costs, for the three months ended March 31, 2024 and 2023, respectively, which were probable of recovery from customers and recorded as regulatory assets. 2 Approximately $22 million and $4 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. |
Wildfire Insurance Fund | Wildfire Insurance Fund Based on information available in January of 2024 regarding catastrophic wildfires during 2023, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. After incorporating 2023 expected losses into the historical data for the Monte Carlo simulations, SCE determined that effective in the first quarter of 2024, the life of the Wildfire Insurance Fund increased from 15 to 20 years from the date SCE committed to participate in the Wildfire Insurance Fund. Accordingly, the change resulted in a reduction in wildfire insurance fund expense from $52 million in the three months ended March 31, 2023 to $36 million in the three months ended March 31, 2024. |
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 March 31, (in millions, except per-share amounts) 2024 2023 Basic earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Weighted average common shares outstanding 385 383 Basic (loss) earnings per share $ (0.03) $ 0.81 Diluted (loss) earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Income impact of assumed conversions — 1 Net (loss) income available to common shareholders and assumed conversions $ (11) $ 311 Weighted average common shares outstanding 385 383 Incremental shares from assumed conversions 1 — 1 Adjusted weighted average shares – diluted 385 384 Diluted (loss) earnings per share $ (0.03) $ 0.81 1 Due to the loss reported for the quarter ended March 31, 2024, incremental shares were not included as the effect would be antidilutive. 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 4,202,791 and 4,414,113 shares of common stock for the three months ended March 31, 2024 and 2023, 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 2024 Formula Rate Update In November 2023, SCE filed its 2024 annual transmission revenue requirement update with the FERC, with the rate effective January 1, 2024. The update reflects a $1.1 billion transmission revenue requirement for 2024, $290 million or 20% lower than amounts included in the 2023 annual rates. The decrease is primarily due to returning an overcollection based on actual 2022 costs and lower wildfire-related claims. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted No material accounting standards were adopted in 2024. Accounting Guidance Not Yet Adopted In November 2023, the FASB issued an accounting standards update to enhance the disclosures related to public entities' reportable segments. The new guidance requires an entity with only one reportable segment to include all the required segment disclosures. The guidance will be effective for annual disclosures for the year ended December 31, 2024 and subsequent interim periods with early adoption permitted. The guidance is applied retrospectively to all periods presented in the financial statements. Edison International and SCE have one reportable segment and are currently evaluating the impact of any increased segment disclosures. In December 2023, the FASB issued an accounting standards update requiring public entities to provide more disclosures primarily related to the income tax rate reconciliation and income taxes paid. The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance is effective January 1, 2025 with early adoption permitted. The guidance is applied prospectively. Edison International and SCE are currently evaluating the impact of the new guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies | |
Cash Equivalents | Edison International SCE March 31, December 31, March 31, December 31, (in millions) 2024 2023 2024 2023 Money market funds $ 123 $ 199 $ — $ 78 |
Cash, Cash Equivalents and Restricted Cash | March 31, December 31, (in millions) 2024 2023 Edison International: Cash and cash equivalents $ 992 $ 345 Short-term restricted cash 1 67 35 Long-term restricted cash 2 228 152 Total cash, cash equivalents and restricted cash $ 1,287 $ 532 SCE: Cash and cash equivalents $ 850 $ 214 Short-term restricted cash 1 64 33 Long-term restricted cash 2 228 151 Total cash, cash equivalents and restricted cash $ 1,142 $ 398 1 Includes SCE Recovery Funding LLC's restricted cash for payments of senior secured recovery bonds and is reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 The SCE amount represents cash collected for customer-funded wildfire self-insurance and is reflected in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. See Note 12 for further information. |
Changes in Allowance for Uncollectible Accounts | Three months ended Three months ended March 31, 2024 March 31, 2023 (in millions) Customers All others Total Customers All others Total Beginning balance $ 347 $ 17 $ 364 2 $ 334 $ 20 $ 354 Current period provision for uncollectible accounts 1 60 1 61 20 — 20 Write-offs, net of recoveries (60) (2) (62) (28) (2) (30) Ending balance $ 347 $ 16 $ 363 2 $ 326 $ 18 $ 344 1 This includes $50 million and $14 million of incremental costs, for the three months ended March 31, 2024 and 2023, respectively, which were probable of recovery from customers and recorded as regulatory assets. 2 Approximately $22 million and $4 million of allowance for uncollectible accounts are included in " Other long-term assets " on SCE's consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. |
EPS Attributable to Edison International Common Shareholders | Three months ended March 31, (in millions, except per-share amounts) 2024 2023 Basic earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Weighted average common shares outstanding 385 383 Basic (loss) earnings per share $ (0.03) $ 0.81 Diluted (loss) earnings per share: Net (loss) income available to common shareholders $ (11) $ 310 Income impact of assumed conversions — 1 Net (loss) income available to common shareholders and assumed conversions $ (11) $ 311 Weighted average common shares outstanding 385 383 Incremental shares from assumed conversions 1 — 1 Adjusted weighted average shares – diluted 385 384 Diluted (loss) earnings per share $ (0.03) $ 0.81 1 Due to the loss reported for the quarter ended March 31, 2024, incremental shares were not included as the effect would be antidilutive. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Consolidated Statements of Changes in Equity | |
Schedule of Changes in Equity | The following table provides Edison International's changes in equity for the three months ended March 31, 2024: 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, 2023 $ 1,673 $ 6,338 $ (9) $ 7,499 $ 15,501 $ 2,443 $ 17,944 Net income — — — 11 11 41 52 Common stock issued — 11 — — 11 — 11 Common stock dividends declared ($0.78 per share) — — — (300) (300) — (300) Preferred stock dividend declared ($26.875 per share for Series A and $25.00 per share for Series B) — — — (44) (44) — (44) Dividends to noncontrolling interests ($24.418 - $58.854 per share for preference stock) — — — — — (41) (41) Noncash stock-based compensation — 12 — — 12 — 12 Preferred stock repurchased (19) — — — (19) — (19) Balance at March 31, 2024 $ 1,654 $ 6,361 $ (9) $ 7,166 $ 15,172 $ 2,443 $ 17,615 The following table provides Edison International's changes in equity for the three months ended March 31, 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 — 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 |
SCE | |
Consolidated Statements of Changes in Equity | |
Schedule of Changes in Equity | The following table provides SCE's changes in equity for the three months ended March 31, 2024: 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, 2023 $ 2,495 $ 2,168 $ 8,446 $ (12) $ 8,307 $ 21,404 Net income — — — — 106 106 Other comprehensive income — — — 1 — 1 Dividends declared on common stock ($0.8278 per share) — — — — (360) (360) Dividends declared on preference stock ($24.418 - $58.854 per share) — — — — (41) (41) Stock-based compensation — — (20) — — (20) Noncash stock-based compensation — — 7 — — 7 Balance at March 31, 2024 $ 2,495 $ 2,168 $ 8,433 $ (11) $ 8,012 $ 21,097 The following table provides SCE's changes in equity for the three months ended March 31, 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 declared 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Variable Interest Entities | |
Summary of SCE Recovery Funding LLC on balance sheets | March 31, December 31, (in millions) 2024 2023 Other current assets $ 77 $ 53 Regulatory assets: non-current 1,547 1,558 Regulatory liabilities: current 32 34 Current portion of long-term debt 1 47 47 Other current liabilities 20 6 Long-term debt 1 1,516 1,515 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 March 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI Trust VII 2024 Dividend income $ 3 $ 4 $ 4 $ 4 $ 6 $ 10 Dividend distributions 3 4 4 4 6 10 2023 Dividend income $ 3 $ 4 $ 4 $ 4 $ 6 $ — Dividend distributions 3 4 4 4 6 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Fair Value by Level within the Fair Value Hierarchy | March 31, 2024 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 3 $ 80 $ (3) $ 80 Money market funds and other — 22 — — 22 Nuclear decommissioning trusts: Stocks 2 1,750 — — — 1,750 Fixed Income 3 861 1,499 — — 2,360 Short-term investments, primarily cash equivalents 307 39 — — 346 Subtotal of nuclear decommissioning trusts 4 2,918 1,538 — — 4,456 Total assets 2,918 1,563 80 (3) 4,558 Liabilities at fair value Derivative contracts — 94 — (94) — Total liabilities — 94 — (94) — Net assets $ 2,918 $ 1,469 $ 80 $ 91 $ 4,558 December 31, 2023 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 3 $ 91 $ (3) $ 91 Money market funds and other 78 22 — — 100 Nuclear decommissioning trusts: Stocks 2 1,658 — — — 1,658 Fixed Income 3 923 1,421 — — 2,344 Short-term investments, primarily cash equivalents 169 104 — — 273 Subtotal of nuclear decommissioning trusts 4 2,750 1,525 — — 4,275 Total assets 2,828 1,550 91 (3) 4,466 Liabilities at fair value Derivative contracts — 77 — (77) — Total liabilities — 77 — (77) — Net assets $ 2,828 $ 1,473 $ 91 $ 74 $ 4,466 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 76% and 75% SCE's equity investments were in companies located in the United States at March 31, 2024 and December 31, 2023, respectively. 3 Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $105 million and $106 million at March 31, 2024 and December 31, 2023, respectively. 4 Excludes net payables of $168 million and $102 million at March 31, 2024 and December 31, 2023, 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 March 31, (in millions) 2024 2023 Fair value of net assets at beginning of period $ 91 $ 63 Settlements — (12) Total realized/unrealized losses 1 (11) (4) Fair value of net assets at end of period $ 80 $ 47 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) Unobservable Range Average Assets Liabilities Input (per MWh) (per MWh) Congestion revenue rights March 31, 2024 $ 80 $ — CAISO CRR auction prices ($14.15) - $3,775.52 $ 3.05 December 31, 2023 91 — CAISO CRR auction prices (6.44) - 16,574.36 2.74 |
Long-term debt fair value | March 31, 2024 December 31, 2023 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 34,673 $ 32,472 $ 33,013 $ 31,315 SCE 30,152 27,881 28,494 26,712 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) | 3 Months Ended |
Mar. 31, 2024 | |
Debt and Credit Agreements | |
Schedule of First and Refunding Mortgage Bonds | Description Month of Issuance Rate Maturity Date Amount Series 2024A January 2024 4.875% 2027 $ 500 Series 2024B January 2024 5.20% 2034 900 Series 2024C March 2024 5.35% 2026 600 Series 2024D March 2024 5.15% 2029 600 Series 2024E March 2024 5.75% 2054 400 |
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 $ 263 $ — $ 1,237 SCE 2, 3 May 2027 108 3,350 512 17 2,821 Total Edison International $ 4,850 $ 775 $ 17 $ 4,058 1 At March 31, 2024, Edison International Parent had $263 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.51% . 2 At March 31, 2024, SCE had $511 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 5.58% . 3 The credit facilities have 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) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments | |
Schedule of derivative assets financial position | March 31, 2024 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Commodity derivative contracts Gross amounts recognized $ 83 $ 94 Gross amounts offset in the consolidated balance sheets (3) (3) Cash collateral posted — (91) Net amounts presented in the consolidated balance sheets $ 80 $ — December 31, 2023 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Short-Term Commodity derivative contracts Gross amounts recognized $ 94 $ 77 Gross amounts offset in the consolidated balance sheets (3) (3) Cash collateral posted — (74) Net amounts presented in the consolidated balance sheets $ 91 $ — 1 Included in "Other current assets" on SCE's consolidated balance sheets. |
Schedule of gains/(losses) of SCE's economic hedging activity | Three months ended March 31, (in millions) 2024 2023 Realized $ (71) $ 116 Unrealized (28) (264) |
Schedule of notional volumes of derivatives | Unit of Economic Hedges Commodity Measure March 31, 2024 December 31, 2023 Electricity options, swaps and forwards Gigawatt hours 5,533 3,494 Natural gas options, swaps and forwards Billion cubic feet 22 31 Congestion revenue rights Gigawatt hours 27,612 35,011 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue | |
Summary of Revenue | Three months ended March 31, 2024 Three months ended March 31, 2023 Cost- Cost- Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Revenue from contracts with customers 1 $ 2,175 $ 1,595 $ 3,770 $ 2,076 $ 1,660 $ 3,736 Alternative revenue programs and other operating revenue 2 274 20 294 157 57 214 Total operating revenue $ 2,449 $ 1,615 $ 4,064 $ 2,233 $ 1,717 $ 3,950 1 At March 31, 2024 and December 31, 2023, SCE's receivables related to contracts from customers were $ 2.6 billion and $2.5 billion, respectively, which include accrued unbilled revenue of $ 777 million and $741 million, respectively. 2 Includes differences between revenues from contracts with customers and authorized levels for certain CPUC and FERC revenues. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 (Loss) income from operations before income taxes $ (61) $ 378 $ 22 $ 428 Provision for income tax at federal statutory rate of 21% (13) 79 5 90 (Decrease) increase in income tax from: State tax, net of federal income tax effect (37) (1) (31) 3 Property-related (55) (58) (55) (58) Other (8) (7) (3) (6) Total income tax (benefit) expense $ (113) $ 13 $ (84) $ 29 Effective tax rate 185.2 % 3.4 % (381.8) % 6.8 % |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Summary of expense components for plans | Three months ended March 31, (in millions) 2024 2023 Edison International: Service cost $ 24 $ 25 Non-service cost (benefit) Interest cost 44 45 Expected return on plan assets (59) (54) Amortization of net loss 1 1 1 Regulatory adjustment (5) (12) Total non-service benefit 2 $ (19) $ (20) Total expense $ 5 $ 5 SCE: Service cost $ 24 $ 24 Non-service cost (benefit) Interest cost 40 42 Expected return on plan assets (55) (51) Amortization of net loss 1 1 — Regulatory adjustment (5) (12) Total non-service benefit 2 $ (19) $ (21) Total expense $ 5 $ 3 1 Represents the amount of net loss reclassified from other comprehensive loss. 2 Included in "Other Income, net" 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 March 31, (in millions) 2024 2023 Service cost $ 3 $ 5 Non-service cost (benefit) Interest cost 9 18 Expected return on plan assets (28) (27) Amortization of net gain (24) (12) Regulatory adjustment 40 16 Total non-service benefit 1 $ (3) $ (5) Total expense $ — $ — 1 Included in "Other income, net" on Edison International ' s and SCE ' s consolidated statements of income . |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments | |
Summary of amortized cost and fair value of the trust investments | Amortized Costs Fair Values Longest March 31, December 31, March 31, December 31, (in millions) Maturity Dates 2024 2023 2024 2023 Municipal bonds 2067 $ 647 $ 636 $ 760 $ 757 Government and agency securities 2073 1,044 1,072 1,137 1,186 Corporate bonds 2072 422 361 463 401 Short-term investments and receivables/payables 1 One-year 169 164 178 171 Total debt securities and other $ 2,282 $ 2,233 2,538 2,515 Equity securities 1,750 1,658 Total 2 $ 4,288 $ 4,173 1 As of March 31, 2024 and December 31, 2023, short-term investments included $86 million and $38 million of repurchase agreement payable by financial institutions which earned interest, were fully secured by U.S. Treasury securities, and mature by April 1, 2024 and January 2, 2024, respectively. 2 Represents amounts before reduction for deferred tax liabilities on net unrealized gains of $402 million and $380 million as of March 31, 2024 and December 31, 2023, respectively. |
Summary of gains and losses | Three months ended March 31, (in millions) 2024 2023 Gross realized gains $ 55 $ 71 Gross realized losses (9) (23) Net unrealized gains for equity securities 95 75 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Assets and Liabilities | |
Regulatory assets | March 31, December 31, (in millions) 2024 2023 Current: Regulatory balancing and memorandum accounts $ 2,955 $ 2,502 Other 34 22 Total current 2,989 2,524 Long-term: Deferred income taxes 5,651 5,533 Unamortized investments, net of accumulated amortization 111 110 Unamortized losses on reacquired debt 96 99 Regulatory balancing and memorandum accounts 1,061 1,257 Environmental remediation 227 226 Recovery assets 1,547 1,558 Other 113 114 Total long-term 8,806 8,897 Total regulatory assets $ 11,795 $ 11,421 |
Regulatory liabilities | March 31, December 31, (in millions) 2024 2023 Current: Regulatory balancing and memorandum accounts $ 947 $ 704 Other 41 59 Total current 988 763 Long-term: Costs of removal 2,626 2,635 Deferred income taxes 2,199 2,211 Recoveries in excess of ARO liabilities 1,627 1,498 Regulatory balancing and memorandum accounts 1,673 1,395 Pension and other postretirement benefits 1,674 1,664 Other 15 17 Total long-term 9,814 9,420 Total regulatory liabilities $ 10,802 $ 10,183 |
Schedule of Regulatory Balancing Accounts | March 31, December 31, (in millions) 2024 2023 Asset (liability) Energy procurement related costs $ (79) $ 397 Public purpose and energy efficiency (1,815) (1,736) GRC related balancing accounts 1,738 1,361 Wildfire risk mitigation and insurance 834 1,169 Wildfire and drought restoration 423 417 Other 295 52 Assets, net of liabilities $ 1,396 $ 1,660 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
2017/2018 Wildfire/Mudslide Events | |
Commitments and Contingencies | |
Schedule of Contingency Accruals and Changes | (in millions) Balance at December 31, 2023 1 $ 715 Increase in accrued estimated losses 490 Amounts paid (174) Balance at March 31, 2024 2 $ 1,031 1 At December 31, 2023, $30 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $16 million of settlements executed and $14 million of short term payables under the SED Agreement in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2023, the $1,368 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 $637 million, $48 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $683 million. 2 At March 31, 2024, $160 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consisted of $140 million of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events, $14 million of short term payables under the SED Agreement, and $6 million of settlements executed in connection with the Other Wildfires. At March 31, 2024, the $1,657 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 $831 million, $46 million of long term payables under the SED Agreement and estimated losses related to the Other Wildfires of $780 million. For the three months ended March 31, 2024 and 2023, Edison International's and SCE's consolidated statements of income included charges for the estimated losses, net of expected recoveries from FERC customers, related to the 2017/2018 Wildfire/Mudslide Events claims as follows: Three months ended March 31, (in millions) 2024 2023 Charge for wildfire-related claims $ 490 $ 90 Expected revenue from FERC customers (27) (6) Total pre-tax charge 463 84 Income tax benefit (130) (23) Total after-tax charge $ 333 $ 61 |
Other Wildfires | |
Commitments and Contingencies | |
Schedule of Contingency Accruals and Changes | The following table presents changes in estimated losses since December 31, 2023: (in millions) Balance at December 31, 2023 $ 683 Increase in accrued estimated losses 180 Amounts paid (77) Balance at March 31, 2024 $ 786 For the three months ended March 31, 2024 and 2023, Edison International's and SCE's consolidated statements of income included charges for the estimated losses (established at the low end of the estimated range of reasonably possible losses), net of expected recoveries from insurance and customers, related to the Other Wildfires as follows, respectively: Three months ended March 31, (in millions) 2024 2023 Edison International: Charge for wildfire-related claims $ 180 $ 6 Expected insurance recoveries 1 (55) — Expected revenue from CPUC and FERC customers (7) — Total pre-tax charge 118 6 Income tax benefit (33) (2) Total after-tax charge $ 85 $ 4 Three months ended March 31, (in millions) 2024 2023 SCE: Charge for wildfire-related claims $ 180 $ 6 Expected insurance recoveries (56) — Expected revenue from CPUC and FERC customers (7) — Total pre-tax charge 117 6 Income tax benefit (33) (2) Total after-tax charge $ 84 $ 4 1 In the first quarter of 2024, Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International, incurred $1 million insurance expenses. This amount was included in the insurance recovery of SCE but was excluded from that of Edison International. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Consolidated Statements of Changes in Equity | |
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 Beginning balance $ (9) $ (11) $ (12) $ (8) Pension and PBOP: Reclassified from accumulated other comprehensive loss 1 — — 1 — Foreign currency translation adjustments — 2 — — Change — 2 1 — Ending Balance $ (9) $ (9) $ (11) $ (8) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information . |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income, Net | |
Summary of Other Income, Net | Other income net of expenses is as follows: Three months ended March 31, (in millions) 2024 2023 SCE other income (expense): Equity allowance for funds used during construction $ 47 $ 36 Increase in cash surrender value of life insurance policies and life insurance benefits 12 11 Interest income 64 60 Net periodic benefit income – non-service components 22 26 Civic, political and related activities and donations (7) (9) Other (3) (4) Total SCE other income, net 135 120 Other income (expense) of Edison International Parent and Other: Net (losses) gains on equity securities — (3) Interest income and other 3 2 Total Edison International other income, net $ 138 $ 119 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flows Information | |
Summary of Supplemental Cash Flows Information | Supplemental cash flows information is: Edison International SCE Three months ended March 31, (in millions) 2024 2023 2024 2023 Cash payments (receipts): Interest, net of amounts capitalized $ 348 $ 326 $ 322 $ 292 Income taxes, net — — — — Non-cash financing and investing activities: Dividends declared but not paid: Common stock 300 282 360 350 Preference stock of SCE 9 8 9 8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Organization) (Details) | 3 Months Ended |
Mar. 31, 2024 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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents | ||||
Money market funds | $ 123 | |||
Cash and cash equivalents | 992 | $ 345 | ||
Short-term restricted cash | $ 67 | $ 35 | ||
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Long-term restricted cash | $ 228 | $ 152 | ||
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | ||
Total cash, cash equivalents, and restricted cash | $ 1,287 | $ 532 | $ 838 | $ 917 |
SCE | ||||
Restricted Cash and Cash Equivalents | ||||
Money market funds | 199 | |||
Cash and cash equivalents | 850 | 214 | ||
Short-term restricted cash | $ 64 | $ 33 | ||
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Long-term restricted cash | $ 228 | $ 151 | ||
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | ||
Total cash, cash equivalents, and restricted cash | $ 1,142 | $ 398 | $ 690 | $ 766 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Allowance) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Credit Loss Roll Forward | |||
Wildfire Insurance Fund expense | $ 36 | $ 52 | |
Wildfire Insurance Fund | |||
Credit Loss Roll Forward | |||
Insurance fund contribution amortization period | 20 years | 15 years | |
SCE | |||
Credit Loss Roll Forward | |||
Beginning balance | $ 364 | 354 | $ 354 |
Current period provision for uncollectible accounts | 61 | 20 | |
Write-offs, net of recoveries | (62) | (30) | |
Ending balance | 363 | 344 | 364 |
Recovery from customers, incremental costs | 50 | 14 | |
Allowance for long-term credit losses | 22 | 4 | |
Wildfire Insurance Fund expense | 36 | 52 | |
SCE | Customers | |||
Credit Loss Roll Forward | |||
Beginning balance | 347 | 334 | 334 |
Current period provision for uncollectible accounts | 60 | 20 | |
Write-offs, net of recoveries | (60) | (28) | |
Ending balance | 347 | 326 | 347 |
SCE | All others | |||
Credit Loss Roll Forward | |||
Beginning balance | 17 | 20 | 20 |
Current period provision for uncollectible accounts | 1 | ||
Write-offs, net of recoveries | (2) | (2) | |
Ending balance | $ 16 | $ 18 | $ 17 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings (loss) per share: | ||
Net (loss) income available to common shareholders | $ (11) | $ 310 |
Weighted average common shares outstanding (in shares) | 385,000,000 | 383,000,000 |
Basic (loss) earnings per share (in dollars per share) | $ (0.03) | $ 0.81 |
Diluted earnings (loss) per share: | ||
Net (loss) income available to common shareholders | $ (11) | $ 310 |
Income impact of assumed conversions | 1 | |
Net (loss) income available to common shareholders and assumed conversions | $ (11) | $ 311 |
Weighted average common shares outstanding (in shares) | 385,000,000 | 383,000,000 |
Incremental shares from assumed conversions (in shares) | 1,000,000 | |
Adjusted weighted average shares - diluted (in shares) | 385,000,000 | 384,000,000 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.03) | $ 0.81 |
Stock Compensation Plan | ||
Diluted earnings (loss) per share: | ||
Antidilutive awards excluded from earnings per share (in shares) | 4,202,791 | 4,414,113 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Revenue) (Details) $ in Millions | 1 Months Ended |
Nov. 30, 2023 USD ($) | |
Public Utilities, General Disclosures [Line Items] | |
Revenue not yet approved | $ 1,100 |
Requested increase (decrease) revenue requirement | $ (290) |
Requested increase (decrease) revenue requirement (as a percent) | (20.00%) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Summary of Significant Accounting Policies | |
Number of reportable segment | 1 |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | $ 17,944 | $ 17,522 |
Net income | 52 | 365 |
Other comprehensive income | 2 | |
Common stock issued | 11 | 15 |
Common stock dividends declared | (300) | (282) |
Preferred stock dividend declared | (44) | (52) |
Dividends to noncontrolling interests | (41) | (29) |
Noncash stock-based compensation | 12 | 8 |
Preferred stock repurchased | (19) | |
Ending Balance | $ 17,615 | $ 17,549 |
Dividends declared per common share (in dollars per share) | $ 0.78 | $ 0.7375 |
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 | $ 25 |
Preferred stock | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | $ 1,673 | $ 1,978 |
Preferred stock repurchased | (19) | |
Ending Balance | 1,654 | 1,978 |
Common Stock, Including APIC | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 6,338 | 6,200 |
Common stock issued | 11 | 15 |
Noncash stock-based compensation | 12 | 8 |
Ending Balance | 6,361 | 6,223 |
Accumulated Other Comprehensive Loss | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | (9) | (11) |
Other comprehensive income | 2 | |
Ending Balance | (9) | (9) |
Retained Earnings | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 7,499 | 7,454 |
Net income | 11 | 336 |
Common stock dividends declared | (300) | (282) |
Preferred stock dividend declared | (44) | (52) |
Ending Balance | 7,166 | 7,456 |
Equity Attributable to Common Shareholders | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 15,501 | 15,621 |
Net income | 11 | 336 |
Other comprehensive income | 2 | |
Common stock issued | 11 | 15 |
Common stock dividends declared | (300) | (282) |
Preferred stock dividend declared | (44) | (52) |
Noncash stock-based compensation | 12 | 8 |
Preferred stock repurchased | (19) | |
Ending Balance | 15,172 | 15,648 |
Noncontrolling Interest | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 2,443 | 1,901 |
Net income | 41 | 29 |
Dividends to noncontrolling interests | (41) | (29) |
Ending Balance | $ 2,443 | $ 1,901 |
Noncontrolling Interest | Minimum | ||
Increase (decrease) in Stockholders' Equity | ||
Preferred stock dividends (in dollars per share) | $ 24.418 | $ 22.281 |
Noncontrolling Interest | Maximum | ||
Increase (decrease) in Stockholders' Equity | ||
Preferred stock dividends (in dollars per share) | $ 58.854 | $ 35.937 |
SCE | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | $ 21,404 | $ 20,789 |
Net income | 106 | 399 |
Other comprehensive income | 1 | |
Common stock dividends declared | (360) | (350) |
Preferred stock dividend declared | (41) | (29) |
Stock-based compensation | (20) | (8) |
Noncash stock-based compensation | 7 | 6 |
Ending Balance | $ 21,097 | $ 20,807 |
Dividends declared per common share (in dollars per share) | $ 0.8278 | $ 0.8048 |
SCE | Minimum | ||
Increase (decrease) in Stockholders' Equity | ||
Preferred stock dividends (in dollars per share) | 24.418 | 22.281 |
SCE | Maximum | ||
Increase (decrease) in Stockholders' Equity | ||
Preferred stock dividends (in dollars per share) | $ 58.854 | $ 35.937 |
SCE | Preferred stock | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | $ 2,495 | $ 1,945 |
Ending Balance | 2,495 | 1,945 |
SCE | Common stock | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 2,168 | 2,168 |
Ending Balance | 2,168 | 2,168 |
SCE | Additional Paid-in Capital | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 8,446 | 8,441 |
Stock-based compensation | (20) | (8) |
Noncash stock-based compensation | 7 | 5 |
Ending Balance | 8,433 | 8,438 |
SCE | Accumulated Other Comprehensive Loss | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | (12) | (8) |
Other comprehensive income | 1 | |
Ending Balance | (11) | (8) |
SCE | Retained Earnings | ||
Increase (decrease) in Stockholders' Equity | ||
Beginning balance | 8,307 | 8,243 |
Net income | 106 | 399 |
Common stock dividends declared | (360) | (350) |
Preferred stock dividend declared | (41) | (29) |
Noncash stock-based compensation | 1 | |
Ending Balance | $ 8,012 | $ 8,264 |
Variable Interest Entities (Rec
Variable Interest Entities (Recovery Funding) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entities | ||
Other current assets | $ 329 | $ 341 |
Regulatory assets: non-current | 8,806 | 8,897 |
Regulatory liabilities: current | 988 | 763 |
Current portion of long-term debt | 2,097 | 2,697 |
Other current liabilities | 1,425 | 1,538 |
Long-term debt | 32,576 | 30,316 |
SCE Recovery Funding LLC | ||
Variable Interest Entities | ||
Other current assets | 77 | 53 |
Regulatory assets: non-current | 1,547 | 1,558 |
Regulatory liabilities: current | 32 | 34 |
Current portion of long-term debt | 47 | 47 |
Other current liabilities | 20 | 6 |
Long-term debt | 1,516 | 1,515 |
SCE | ||
Variable Interest Entities | ||
Other current assets | 319 | 331 |
Regulatory assets: non-current | 8,806 | 8,897 |
Regulatory liabilities: current | 988 | 763 |
Current portion of long-term debt | 1,597 | 2,197 |
Other current liabilities | 1,431 | 1,535 |
Long-term debt | 28,555 | 26,297 |
SCE | SCE Recovery Funding LLC | ||
Variable Interest Entities | ||
Debt carrying amount | 1,600 | |
Regulatory assets: non-current | 1,547 | 1,558 |
Long-term debt | $ 1,516 | $ 1,515 |
Variable Interest Entities (Tru
Variable Interest Entities (Trusts) (Details) - SCE - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entities | ||||||||
Common stock | $ 2,168,000,000 | $ 2,168,000,000 | ||||||
Trust securities | ||||||||
Variable Interest Entities | ||||||||
Liquidation value (in dollars per share) | $ 2,500 | |||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||
Variable Interest Entities | ||||||||
Liquidation value (in dollars per share) | $ 25 | |||||||
Common stock | 10,000 | 10,000 | $ 10,000 | |||||
Power Purchase Agreement | ||||||||
Variable Interest Entities | ||||||||
Amounts paid to VIEs | 157,000,000 | $ 170,000,000 | ||||||
Trust II | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | $ 400,000,000 | |||||||
Trust II | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 220,000,000 | 220,000,000 | ||||||
Trust II | 5.10% Series G Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 5.10% | |||||||
Liquidation preference | $ 400,000,000 | |||||||
Investments | 220,000,000 | 220,000,000 | ||||||
Trust III | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | $ 275,000,000 | |||||||
Trust III | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 275,000,000 | 275,000,000 | ||||||
Trust III | 5.75% Series H Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 5.75% | |||||||
Liquidation preference | $ 275,000,000 | |||||||
Investments | 275,000,000 | 275,000,000 | ||||||
Trust IV | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | $ 325,000,000 | |||||||
Trust IV | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 325,000,000 | 325,000,000 | ||||||
Trust IV | 5.375% Series J Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 5.375% | |||||||
Liquidation preference | $ 325,000,000 | |||||||
Investments | 325,000,000 | 325,000,000 | ||||||
Trust V | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | $ 300,000,000 | |||||||
Trust V | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 300,000,000 | 300,000,000 | ||||||
Trust V | 5.45% Series K Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 5.45% | |||||||
Liquidation preference | $ 300,000,000 | |||||||
Investments | 300,000,000 | 300,000,000 | ||||||
Trust VI | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | $ 475,000,000 | |||||||
Trust VI | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 475,000,000 | 475,000,000 | ||||||
Trust VI | 5.00% Series L Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 5% | |||||||
Liquidation preference | $ 475,000,000 | |||||||
Investments | 475,000,000 | 475,000,000 | ||||||
Trust VII | ||||||||
Variable Interest Entities | ||||||||
Liquidation preference | 550,000,000 | |||||||
Trust VII | Trust securities | ||||||||
Variable Interest Entities | ||||||||
Investments | 550,000,000 | $ 550,000,000 | ||||||
Trust VII | 7.50% Series M Preferred Stock | ||||||||
Variable Interest Entities | ||||||||
Security dividend rate (as a percent) | 7.50% | |||||||
Liquidation preference | $ 550,000,000 | |||||||
Investments | $ 550,000,000 |
Variable Interest Entities (Inc
Variable Interest Entities (Income Statement) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Trust II | ||
Variable Interest Entities | ||
Dividend income | $ 3 | $ 3 |
Dividend distributions | 3 | 3 |
Trust III | ||
Variable Interest Entities | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust IV | ||
Variable Interest Entities | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust V | ||
Variable Interest Entities | ||
Dividend income | 4 | 4 |
Dividend distributions | 4 | 4 |
Trust VI | ||
Variable Interest Entities | ||
Dividend income | 6 | 6 |
Dividend distributions | 6 | $ 6 |
Trust VII | ||
Variable Interest Entities | ||
Dividend income | 10 | |
Dividend distributions | $ 10 |
Fair Value Measurements (Hierar
Fair Value Measurements (Hierarchy) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,288 | $ 4,173 |
SCE | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,288 | $ 4,173 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States (as a percent) | 76% | 75% |
Collateralized mortgage obligations and other asset backed securities | $ 105 | $ 106 |
Receivable (payables), net, related to investments | (168) | (102) |
SCE | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | (3) | (3) |
Derivative contracts, net | 80 | 91 |
Money market funds and other | 22 | 100 |
Nuclear decommissioning trusts | 4,456 | 4,275 |
Total assets | 4,558 | 4,466 |
Liabilities at fair value | ||
Netting and Collateral | (94) | (77) |
Derivative contracts, net | 0 | |
Total liabilities | 0 | |
Net assets | 4,558 | 4,466 |
Netting and Collateral, Total | 91 | 74 |
SCE | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | |
Money market funds and other | 0 | 78 |
Nuclear decommissioning trusts | 2,918 | 2,750 |
Total assets | 2,918 | 2,828 |
Liabilities at fair value | ||
Derivative contracts | 0 | |
Total liabilities | 0 | |
Net assets | 2,918 | 2,828 |
SCE | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 3 | 3 |
Money market funds and other | 22 | 22 |
Nuclear decommissioning trusts | 1,538 | 1,525 |
Total assets | 1,563 | 1,550 |
Liabilities at fair value | ||
Derivative contracts | 94 | 77 |
Total liabilities | 94 | 77 |
Net assets | 1,469 | 1,473 |
SCE | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 80 | 91 |
Money market funds and other | 0 | |
Nuclear decommissioning trusts | 0 | |
Total assets | 80 | 91 |
Liabilities at fair value | ||
Derivative contracts | 0 | |
Total liabilities | 0 | |
Net assets | 80 | 91 |
SCE | Fair Value, Measurements, Recurring | Equity securities | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,750 | 1,658 |
SCE | Fair Value, Measurements, Recurring | Equity securities | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,750 | 1,658 |
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 | 2,360 | 2,344 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 861 | 923 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,499 | 1,421 |
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 | 346 | 273 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 307 | 169 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 39 | $ 104 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosures Level 3 | ||
Fair value of net assets at beginning of period | $ 91 | $ 63 |
Settlements | (12) | |
Total realized/unrealized losses | (11) | (4) |
Fair value of net assets at end of period | $ 80 | $ 47 |
Fair Value Measurements (Leve_2
Fair Value Measurements (Level 3 Inputs) (Details) - SCE - Level 3 - Congestion revenue rights (GWh) - Auction prices $ in Millions | Mar. 31, 2024 USD ($) $ / MWh | Dec. 31, 2023 USD ($) $ / MWh |
Fair Value Measurements | ||
Fair value, Level 3 assets | $ | $ 80 | $ 91 |
Minimum | ||
Fair Value Measurements | ||
Derivative Asset (Liability) Net, Measurement Input | (14.15) | (6.44) |
Maximum | ||
Fair Value Measurements | ||
Derivative Asset (Liability) Net, Measurement Input | 3,775.52 | 16,574.36 |
Weighted Average | ||
Fair Value Measurements | ||
Derivative Asset (Liability) Net, Measurement Input | 3.05 | 2.74 |
Fair Value Measurements (Parent
Fair Value Measurements (Parent) (Details) - Edison International Parent and Other - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Level 1 | ||
Fair Value Measurements | ||
Money market funds fair value | $ 123 | $ 121 |
Level 2 | ||
Fair Value Measurements | ||
Short-term investments fair value | 1 | $ 2 |
Level 3 | ||
Fair Value Measurements | ||
Short-term investments fair value | $ 0 |
Fair Value Measurements (Debt)
Fair Value Measurements (Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 34,673 | $ 33,013 |
Fair Value | 32,472 | 31,315 |
SCE | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 30,152 | 28,494 |
Fair Value | $ 27,881 | $ 26,712 |
Debt and Credit Agreements (Rec
Debt and Credit Agreements (Recovery and Term) (Details) - SCE $ in Millions | Mar. 31, 2024 USD ($) |
4.875% first and refunding mortgage bonds due in 2027 | |
Debt | |
Debt, face amount | $ 500 |
Interest rate on debt (as a percent) | 4.875% |
5.20% first and refunding mortgage bonds due in 2034 | |
Debt | |
Debt, face amount | $ 900 |
Interest rate on debt (as a percent) | 5.20% |
5.35% first and refunding mortgage bonds due 2026 | |
Debt | |
Debt, face amount | $ 600 |
Interest rate on debt (as a percent) | 5.35% |
5.15% first and refunding mortgage bonds due 2029 | |
Debt | |
Debt, face amount | $ 600 |
Interest rate on debt (as a percent) | 5.15% |
5.75% first and refunding mortgage bonds due 2054 | |
Debt | |
Debt, face amount | $ 400 |
Interest rate on debt (as a percent) | 5.75% |
Debt and Credit Agreements (Cre
Debt and Credit Agreements (Credit Facilities) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Line of Credit Facility | |
Commitment | $ 4,850 |
Outstanding borrowings | 775 |
Outstanding letters of credit | 17 |
Amount available | 4,058 |
Edison International Parent and Other | Multi-year credit facilities | |
Line of Credit Facility | |
Commitment | 1,500 |
Outstanding borrowings | 263 |
Amount available | 1,237 |
Contingent maximum available borrowing | $ 2,000 |
Edison International Parent and Other | Multi-year credit facilities | Secured Overnight Financing Rate ("SOFR") | |
Line of Credit Facility | |
Variable rate on debt (as a percent) | 1.28% |
Edison International Parent and Other | Multi-year credit facilities | Commercial paper | |
Line of Credit Facility | |
Outstanding borrowings | $ 263 |
Weighted average interest rate (as a percent) | 5.51% |
SCE | Multi-year credit facilities | |
Line of Credit Facility | |
Commitment | $ 3,350 |
Outstanding borrowings | 512 |
Outstanding letters of credit | 17 |
Amount available | 2,821 |
Contingent maximum available borrowing | $ 4,000 |
SCE | Multi-year credit facilities | Secured Overnight Financing Rate ("SOFR") | |
Line of Credit Facility | |
Variable rate on debt (as a percent) | 1.08% |
SCE | Multi-year credit facilities | Commercial paper | |
Line of Credit Facility | |
Outstanding borrowings | $ 511 |
Weighted average interest rate (as a percent) | 5.58% |
SCE | Standby letters of credit | |
Line of Credit Facility | |
Commitment | $ 625 |
Outstanding letters of credit | 100 |
Amount available | $ 525 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet) (Details) - SCE - Commodity derivative contracts - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Liabilities | ||
Cash collateral posted for liability | $ 137 | $ 121 |
Other Current Assets | ||
Derivative Assets | ||
Gross amounts recognized | 83 | 94 |
Gross amounts offset in the consolidated balance sheets | (3) | (3) |
Cash collateral posted/received | 0 | |
Net amounts presented in the consolidated balance sheets | 80 | 91 |
Derivative Liabilities | ||
Cash collateral not offset against liability | 46 | 47 |
Other Current Liabilities | ||
Derivative Liabilities | ||
Gross amounts recognized | 94 | 77 |
Gross amounts offset in the consolidated balance sheets | (3) | (3) |
Cash collateral posted/received | (91) | $ (74) |
Net amounts presented in the consolidated balance sheets | $ 0 |
Derivative Instruments (Hedging
Derivative Instruments (Hedging Activities) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized | $ (71) | $ 116 |
Unrealized | $ (28) | $ (264) |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - SCE | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 GWh Bcfe | Dec. 31, 2023 GWh Bcfe | |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 5,533 | 3,494 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 22 | 31 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 27,612 | 35,011 |
Revenue (Summary) (Details)
Revenue (Summary) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue | |||
Total operating revenue | $ 4,078 | $ 3,966 | |
SCE | |||
Revenue | |||
Revenue from contracts with customers | 3,770 | 3,736 | |
Alternative revenue programs and other operating revenue | 294 | 214 | |
Total operating revenue | 4,064 | 3,950 | |
Receivables from contracts with customers | 2,600 | $ 2,500 | |
Accrued unbilled revenues | 777 | $ 741 | |
SCE | Earning Activities | |||
Revenue | |||
Revenue from contracts with customers | 2,175 | 2,076 | |
Alternative revenue programs and other operating revenue | 274 | 157 | |
Total operating revenue | 2,449 | 2,233 | |
SCE | Cost- Recovery Activities | |||
Revenue | |||
Revenue from contracts with customers | 1,595 | 1,660 | |
Alternative revenue programs and other operating revenue | 20 | 57 | |
Total operating revenue | $ 1,615 | $ 1,717 |
Revenue (Deferred) (Details)
Revenue (Deferred) (Details) - SCE - West of Devers $ in Millions | Mar. 31, 2024 USD ($) |
Revenue | |
Deferred revenue balance | $ 364 |
Deferred revenue non-current | $ 351 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Line Items] | ||
Statutory tax rate (as a percent) | 21% | 21% |
(Loss) income from operations before income taxes | $ (61) | $ 378 |
Provision for income tax at federal statutory rate of 21% | (13) | 79 |
(Decrease) increase in income tax from: | ||
State tax, net of federal income tax effect | (37) | (1) |
Property-related | (55) | (58) |
Other | (8) | (7) |
Total income tax (benefit) expense | $ (113) | $ 13 |
Effective tax rate | 185.20% | 3.40% |
SCE | ||
Income Tax Disclosure [Line Items] | ||
(Loss) income from operations before income taxes | $ 22 | $ 428 |
Provision for income tax at federal statutory rate of 21% | 5 | 90 |
(Decrease) increase in income tax from: | ||
State tax, net of federal income tax effect | (31) | 3 |
Property-related | (55) | (58) |
Other | (3) | (6) |
Total income tax (benefit) expense | $ (84) | $ 29 |
Effective tax rate | (381.80%) | 6.80% |
Compensation and Benefit Plan_2
Compensation and Benefit Plans (Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Plans | ||
Pension and Other Postretirement Benefits | ||
Service cost | $ 24 | $ 25 |
Non-service cost (benefit) | ||
Interest cost | 44 | 45 |
Expected return on plan assets | (59) | (54) |
Amortization of net loss (gain) | 1 | 1 |
Regulatory adjustment | (5) | (12) |
Total non-service benefit | (19) | (20) |
Total expense | 5 | 5 |
Postretirement Benefits Other Than Pensions | ||
Pension and Other Postretirement Benefits | ||
Service cost | 3 | 5 |
Non-service cost (benefit) | ||
Interest cost | 9 | 18 |
Expected return on plan assets | (28) | (27) |
Amortization of net loss (gain) | (24) | (12) |
Regulatory adjustment | 40 | 16 |
Total non-service benefit | (3) | (5) |
SCE | ||
Non-service cost (benefit) | ||
Total non-service benefit | (22) | (26) |
SCE | Pension Plans | ||
Pension and Other Postretirement Benefits | ||
Service cost | 24 | 24 |
Non-service cost (benefit) | ||
Interest cost | 40 | 42 |
Expected return on plan assets | (55) | (51) |
Amortization of net loss (gain) | 1 | |
Regulatory adjustment | (5) | (12) |
Total non-service benefit | (19) | (21) |
Total expense | $ 5 | $ 3 |
Investments (Trust Value) (Deta
Investments (Trust Value) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Measurements | ||
Fair Values | $ 4,288 | $ 4,173 |
SCE | ||
Fair Value Measurements | ||
Fair Values | 4,288 | 4,173 |
Deferred income taxes related to unrealized gains | 402 | 380 |
SCE | Total debt securities and other | ||
Fair Value Measurements | ||
Amortized Costs | 2,282 | 2,233 |
Fair Values | 2,538 | 2,515 |
SCE | Municipal bonds | ||
Fair Value Measurements | ||
Amortized Costs | 647 | 636 |
Fair Values | 760 | 757 |
SCE | Government and agency securities | ||
Fair Value Measurements | ||
Amortized Costs | 1,044 | 1,072 |
Fair Values | 1,137 | 1,186 |
SCE | Corporate bonds | ||
Fair Value Measurements | ||
Amortized Costs | 422 | 361 |
Fair Values | 463 | 401 |
SCE | Short-term investments and receivables/payables | ||
Fair Value Measurements | ||
Amortized Costs | 169 | 164 |
Fair Values | 178 | 171 |
SCE | Repurchase agreements | ||
Fair Value Measurements | ||
Fair Values | $ 86 | $ 38 |
Repurchase agreement secured by US Treasury Securities (as a percent) | 100% | 100% |
SCE | Equity securities | ||
Fair Value Measurements | ||
Fair Values | $ 1,750 | $ 1,658 |
SCE | Fair Value, Measurements, Recurring | ||
Fair Value Measurements | ||
Fair Values | $ 4,456 | $ 4,275 |
Investments (Trust Info) (Detai
Investments (Trust Info) (Details) - USD ($) $ in Billions | Mar. 31, 2024 | Dec. 31, 2023 |
SCE | ||
Investments | ||
Cumulative unrealized holding gains, net of losses | $ 1.8 | $ 1.8 |
Investments (Trust gain loss) (
Investments (Trust gain loss) (Details) - SCE - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments | ||
Gross realized gains | $ 55 | $ 71 |
Gross realized losses | (9) | (23) |
Net unrealized (losses)/gains for equity securities | $ 95 | $ 75 |
Investments (Other) (Details)
Investments (Other) (Details) - Edison International Parent and Other - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Equity investments without readily determinable fair values | $ 13 | $ 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 | Mar. 31, 2024 | Dec. 31, 2023 |
Regulatory Assets | ||
Current regulatory assets | $ 2,989 | $ 2,524 |
Regulatory assets: non-current | 8,806 | 8,897 |
SCE | ||
Regulatory Assets | ||
Current regulatory assets | 2,989 | 2,524 |
Regulatory assets: non-current | 8,806 | 8,897 |
Total regulatory assets | 11,795 | 11,421 |
SCE | Regulatory balancing and memorandum accounts-Assets | ||
Regulatory Assets | ||
Current regulatory assets | 2,955 | 2,502 |
Regulatory assets: non-current | 1,061 | 1,257 |
SCE | Deferred income taxes | ||
Regulatory Assets | ||
Regulatory assets: non-current | 5,651 | 5,533 |
SCE | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets | ||
Regulatory assets: non-current | 111 | 110 |
SCE | Unamortized losses on reacquired debt | ||
Regulatory Assets | ||
Regulatory assets: non-current | 96 | 99 |
SCE | Environmental remediation | ||
Regulatory Assets | ||
Regulatory assets: non-current | 227 | 226 |
SCE | Recovery assets | ||
Regulatory Assets | ||
Regulatory assets: non-current | 1,547 | 1,558 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Assets | ||
Current regulatory assets | 34 | 22 |
Regulatory assets: non-current | $ 113 | $ 114 |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Regulatory Liabilities | ||
Current regulatory liabilities | $ 988 | $ 763 |
Long-term regulatory liabilities | 9,814 | 9,420 |
SCE | ||
Regulatory Liabilities | ||
Current regulatory liabilities | 988 | 763 |
Long-term regulatory liabilities | 9,814 | 9,420 |
Total regulatory liabilities | 10,802 | 10,183 |
SCE | Regulatory balancing and memorandum accounts-Liabilities | ||
Regulatory Liabilities | ||
Current regulatory liabilities | 947 | 704 |
Long-term regulatory liabilities | 1,673 | 1,395 |
SCE | Costs of removal | ||
Regulatory Liabilities | ||
Long-term regulatory liabilities | 2,626 | 2,635 |
SCE | Deferred income taxes | ||
Regulatory Liabilities | ||
Long-term regulatory liabilities | 2,199 | 2,211 |
SCE | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities | ||
Long-term regulatory liabilities | 1,627 | 1,498 |
SCE | Pension and other postretirement benefits | ||
Regulatory Liabilities | ||
Long-term regulatory liabilities | 1,674 | 1,664 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Liabilities | ||
Current regulatory liabilities | 41 | 59 |
Long-term regulatory liabilities | $ 15 | $ 17 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Balancing Accounts) (Details) - SCE - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ 1,396 | $ 1,660 |
Energy procurement related costs | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (79) | 397 |
Public purpose and energy efficiency | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (1,815) | (1,736) |
GRC related balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 1,738 | 1,361 |
Wildfire risk mitigation and insurance | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 834 | 1,169 |
Wildfire and drought restoration | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 423 | 417 |
Other | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ 295 | $ 52 |
Commitments and Contingencies_2
Commitments and Contingencies (Event Description) (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 ($) a item individual | Dec. 31, 2017 USD ($) a item individual | Oct. 31, 2019 a item individual | Nov. 30, 2018 a individual item | Jan. 31, 2018 individual item | Dec. 04, 2017 a individual item | |
December 2017-Thomas and Koenigstein | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 280,000 | |||||||
Structures destroyed | 1,343 | |||||||
Fatalities | individual | 2 | |||||||
Montecito Mudslides | ||||||||
Commitments and Contingencies | ||||||||
Structures destroyed | 135 | |||||||
Structures damaged | 324 | |||||||
Fatalities | individual | 21 | |||||||
Unconfirmed fatalities | individual | 2 | |||||||
November 2018-Woolsey | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 100,000 | |||||||
Structures destroyed | 1,643 | |||||||
Structures damaged | 364 | |||||||
Fatalities | individual | 3 | |||||||
Unconfirmed fatalities | individual | 4 | |||||||
2017 Creek Fire | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 16,000 | |||||||
Structures destroyed | 123 | |||||||
Structures damaged | 81 | |||||||
Injured civilians | individual | 3 | |||||||
Damages sought by other | $ | $ 40 | |||||||
Saddle Ridge Fire | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 9,000 | |||||||
Structures destroyed | 19 | |||||||
Structures damaged | 88 | |||||||
Fatalities | individual | 1 | |||||||
Injured fire personnel | individual | 8 | |||||||
Bobcat fire | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 116,000 | |||||||
Injured fire personnel | individual | 6 | |||||||
Estimated fire suppression costs | $ | $ 80 | |||||||
Bobcat fire | Homes | ||||||||
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 | |||||||
Injured fire personnel | individual | 2 | |||||||
Estimated fire suppression costs | $ | $ 3 | |||||||
Fairview Fire | ||||||||
Commitments and Contingencies | ||||||||
Acres burned | a | 28,000 | |||||||
Structures destroyed | 22 | |||||||
Fatalities | individual | 2 | |||||||
Injured fire personnel | individual | 2 | |||||||
Injured civilians | individual | 1 | |||||||
Estimated fire suppression costs | $ | $ 39 | |||||||
Fairview Fire | Homes | ||||||||
Commitments and Contingencies | ||||||||
Structures damaged | 5 | |||||||
Fairview Fire | Minor structures | ||||||||
Commitments and Contingencies | ||||||||
Structures damaged | 17 |
Commitments and Contingencies_3
Commitments and Contingencies (Monetary) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 23, 2024 plaintiff | Oct. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Oct. 31, 2020 USD ($) $ / claim | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / claim | Dec. 31, 2019 USD ($) | |
2017/2018 Wildfire/Mudslide Events | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | $ 490 | $ 90 | |||||||||
Expected revenue through electric rates | 27 | 6 | |||||||||
Total after-tax charge | 333 | 61 | |||||||||
Payments | 174 | ||||||||||
Charge for wildfire-related claims | 1,031 | $ 715 | |||||||||
Other Wildfires | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | 180 | 6 | |||||||||
Expected revenue through electric rates | 7 | ||||||||||
Total after-tax charge | 85 | 4 | |||||||||
Payments | 77 | ||||||||||
Charge for wildfire-related claims | 786 | 683 | |||||||||
SCE | |||||||||||
Commitments and Contingencies | |||||||||||
Regulatory Assets | 11,795 | 11,421 | |||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | 490 | ||||||||||
Expected revenue through electric rates | 27 | ||||||||||
Total after-tax charge | 333 | ||||||||||
Regulatory Assets | 64 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | SED Settlement | |||||||||||
Commitments and Contingencies | |||||||||||
Charge for wildfire-related claims | $ 550 | 60 | |||||||||
Fine to State | 110 | ||||||||||
Shareholder-funded safety measures costs | 65 | ||||||||||
Third-party uninsured claims cost recovery waiver | $ 375 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Individual Plaintiff Settlements | |||||||||||
Commitments and Contingencies | |||||||||||
Payments | 216 | $ 876 | $ 1,700 | $ 1,700 | |||||||
Number of plaintiffs | plaintiff | 1,300 | ||||||||||
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 | ||||||||||
Percentage of outstanding individual plaintiff claims | 96% | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Woolsey Subrogation Settlement | |||||||||||
Commitments and Contingencies | |||||||||||
Percentage of outstanding individual plaintiff claims | 88% | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | |||||||||||
Commitments and Contingencies | |||||||||||
Charge for wildfire-related claims | 200 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | SED Settlement | |||||||||||
Commitments and Contingencies | |||||||||||
Charge for wildfire-related claims | 60 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Remaining Alleged and Potential Claims | |||||||||||
Commitments and Contingencies | |||||||||||
Charge for wildfire-related claims | 831 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Aggregate | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | 9,900 | ||||||||||
Expected revenue through electric rates | 440 | ||||||||||
Payments | 8,800 | ||||||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Aggregate | Individual Plaintiff Settlements | |||||||||||
Commitments and Contingencies | |||||||||||
Number of plaintiffs | plaintiff | 13,000 | ||||||||||
SCE | November 2018-Woolsey | Woolsey Subrogation Settlement | |||||||||||
Commitments and Contingencies | |||||||||||
Payments | $ 2,200 | $ 2,200 | |||||||||
Payment agreement for each dollar of claim | $ / claim | 0.67 | ||||||||||
SCE | Other Wildfires | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | 180 | 6 | |||||||||
Expected revenue through electric rates | 7 | ||||||||||
Total after-tax charge | 84 | $ 4 | |||||||||
Charge for wildfire-related claims | 780 | ||||||||||
Expected insurance recovery asset | 516 | ||||||||||
Regulatory Assets | 156 | ||||||||||
SCE | Other Wildfires | Aggregate | |||||||||||
Commitments and Contingencies | |||||||||||
Increase in accrued estimated losses | 1,100 | ||||||||||
Expected revenue through electric rates | 175 | ||||||||||
Total after-tax charge | 152 | ||||||||||
Payments | 286 | ||||||||||
SCE | Other Wildfires | Aggregate | CPUC | |||||||||||
Commitments and Contingencies | |||||||||||
Expected revenue through electric rates | 152 | ||||||||||
SCE | Other Wildfires | Aggregate | FERC | |||||||||||
Commitments and Contingencies | |||||||||||
Expected revenue through electric rates | 23 | ||||||||||
SCE | 2017 Creek Fire | |||||||||||
Commitments and Contingencies | |||||||||||
Expected insurance recovery asset | $ 18 |
Commitments and Contingencies_4
Commitments and Contingencies (Accrual rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loss contingency accrual roll forward | |||
Wildfire-related claims, current | $ 160 | $ 30 | |
Wildfire-related claims, non-current | 1,657 | 1,368 | |
2017/2018 Wildfire/Mudslide Events | |||
Loss contingency accrual roll forward | |||
Balance, beginning | 715 | ||
Increase in accrued estimated losses | 490 | $ 90 | |
Amounts paid | (174) | ||
Balance, end | 1,031 | 715 | |
Wildfire-related claims, non-current | 831 | 637 | |
2017/2018 Wildfire/Mudslide Events | SED Settlement | |||
Loss contingency accrual roll forward | |||
Wildfire-related claims, current | 14 | 14 | |
Wildfire-related claims, non-current | 46 | 48 | |
2017/2018 Wildfire/Mudslide Events | Settled Litigation | |||
Loss contingency accrual roll forward | |||
Wildfire-related claims, current | 140 | 16 | |
Other Wildfires | |||
Loss contingency accrual roll forward | |||
Balance, beginning | 683 | ||
Increase in accrued estimated losses | 180 | 6 | |
Amounts paid | (77) | ||
Balance, end | 786 | 683 | |
Wildfire-related claims, current | 6 | ||
Wildfire-related claims, non-current | 780 | 683 | |
SCE | |||
Loss contingency accrual roll forward | |||
Wildfire-related claims, current | 160 | 30 | |
Wildfire-related claims, non-current | 1,657 | $ 1,368 | |
SCE | 2017/2018 Wildfire/Mudslide Events | |||
Loss contingency accrual roll forward | |||
Increase in accrued estimated losses | 490 | ||
SCE | 2017/2018 Wildfire/Mudslide Events | SED Settlement | |||
Loss contingency accrual roll forward | |||
Balance, end | 60 | ||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | |||
Loss contingency accrual roll forward | |||
Balance, end | 200 | ||
SCE | 2017/2018 Wildfire/Mudslide Events | Settled Litigation | SED Settlement | |||
Loss contingency accrual roll forward | |||
Balance, end | 60 | ||
SCE | 2017/2018 Wildfire/Mudslide Events | Remaining Alleged and Potential Claims | |||
Loss contingency accrual roll forward | |||
Balance, end | 831 | ||
SCE | Other Wildfires | |||
Loss contingency accrual roll forward | |||
Increase in accrued estimated losses | 180 | $ 6 | |
Balance, end | $ 780 |
Commitments and Contingencies_5
Commitments and Contingencies (Expense summary) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
2017/2018 Wildfire/Mudslide Events | ||
Commitments and Contingencies | ||
Charge for wildfire-related claims | $ 490 | $ 90 |
Expected revenue from CPUC and FERC customers | (27) | (6) |
Total pre-tax charge | 463 | 84 |
Income tax benefit | (130) | (23) |
Total after-tax charge | 333 | 61 |
2017/2018 Wildfire/Mudslide Events | SCE | ||
Commitments and Contingencies | ||
Charge for wildfire-related claims | 490 | |
Expected revenue from CPUC and FERC customers | (27) | |
Total pre-tax charge | 463 | |
Total after-tax charge | 333 | |
Other Wildfires | ||
Commitments and Contingencies | ||
Charge for wildfire-related claims | 180 | 6 |
Expected insurance recoveries | (55) | |
Expected revenue from CPUC and FERC customers | (7) | |
Total pre-tax charge | 118 | 6 |
Income tax benefit | (33) | (2) |
Total after-tax charge | 85 | 4 |
Other Wildfires | Edison Insurance Services-EIS | ||
Commitments and Contingencies | ||
Charge for wildfire-related claims | 1 | |
Other Wildfires | SCE | ||
Commitments and Contingencies | ||
Charge for wildfire-related claims | 180 | 6 |
Expected insurance recoveries | (56) | |
Expected revenue from CPUC and FERC customers | (7) | |
Total pre-tax charge | 117 | 6 |
Income tax benefit | (33) | (2) |
Total after-tax charge | $ 84 | $ 4 |
Commitments and Contingencies_6
Commitments and Contingencies (Wildfire Insurance) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2023 | Aug. 31, 2023 | May 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Oct. 31, 2021 | |
Commitments and Contingencies | ||||||||
Requested increase (decrease) revenue requirement | $ (290) | |||||||
SCE | ||||||||
Commitments and Contingencies | ||||||||
Wildfire insurance expense | $ 450 | |||||||
Regulatory assets | $ 11,795 | $ 11,421 | ||||||
SCE | Customer-funded self-insurance | ||||||||
Commitments and Contingencies | ||||||||
Wildfire Insurance Coverage | $ 1,000 | |||||||
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% | |||||||
Payment of Self Insurance Cost | $ 500 | |||||||
Maximum annual shareholder contribution | 12.5 | |||||||
Self-insurance fund value | $ 1,000 | |||||||
SCE | Insurance coverage through June 2023 | ||||||||
Commitments and Contingencies | ||||||||
Wildfire Insurance Coverage | 1,000 | |||||||
Self insurance | 100 | |||||||
Coverage net | 937 | |||||||
SCE | Commercial insurance carriers | ||||||||
Commitments and Contingencies | ||||||||
Wildfire insurance expense | 357 | |||||||
SCE | Commercial insurance carriers | Insurance coverage through June 2023 | ||||||||
Commitments and Contingencies | ||||||||
Coverage net | $ 835 | |||||||
SCE | Edison Insurance Services-EIS | Insurance coverage through June 2023 | ||||||||
Commitments and Contingencies | ||||||||
Coverage net | 102 | |||||||
2017/2018 Wildfire/Mudslide Events | ||||||||
Commitments and Contingencies | ||||||||
Charge for wildfire-related claims | 1,031 | 715 | ||||||
Increase in accrued estimated losses | 490 | $ 90 | ||||||
Expected revenue through electric rates | 27 | 6 | ||||||
2017/2018 Wildfire/Mudslide Events | SCE | ||||||||
Commitments and Contingencies | ||||||||
Increase in accrued estimated losses | 490 | |||||||
Expected revenue through electric rates | 27 | |||||||
Regulatory assets | 64 | |||||||
Potential impairment | 169 | |||||||
2017/2018 Wildfire/Mudslide Events | SCE | Aggregate | ||||||||
Commitments and Contingencies | ||||||||
Increase in accrued estimated losses | 9,900 | |||||||
Litigation settlement | 9,000 | |||||||
Insurance recoveries | 2,000 | |||||||
Expected revenue through electric rates | 440 | |||||||
2017/2018 Wildfire/Mudslide Events | SCE | SED Settlement | ||||||||
Commitments and Contingencies | ||||||||
Charge for wildfire-related claims | 60 | $ 550 | ||||||
Thomas and Koenigstein Fires and Montecito Mudslides-TKM | SCE | ||||||||
Commitments and Contingencies | ||||||||
Wildfire Insurance Coverage | 1,000 | |||||||
Self insurance | 10 | |||||||
Requested increase (decrease) revenue requirement | $ 2,400 | |||||||
Loss contingency, Uninsured claims | 2,000 | |||||||
Legal and other costs | $ 400 | |||||||
CPUC cost recovery proceedings, capital recovery portion | 65 | |||||||
November 2018-Woolsey | SCE | ||||||||
Commitments and Contingencies | ||||||||
Wildfire Insurance Coverage | 1,000 | |||||||
Self insurance | 10 | |||||||
Other Wildfires | ||||||||
Commitments and Contingencies | ||||||||
Charge for wildfire-related claims | 786 | $ 683 | ||||||
Increase in accrued estimated losses | 180 | 6 | ||||||
Insurance recoveries | 55 | |||||||
Expected revenue through electric rates | 7 | |||||||
Other Wildfires | Edison Insurance Services-EIS | ||||||||
Commitments and Contingencies | ||||||||
Increase in accrued estimated losses | 1 | |||||||
Other Wildfires | SCE | ||||||||
Commitments and Contingencies | ||||||||
Charge for wildfire-related claims | 780 | |||||||
Increase in accrued estimated losses | 180 | $ 6 | ||||||
Insurance recoveries | 56 | |||||||
Expected revenue through electric rates | 7 | |||||||
Regulatory assets | 156 | |||||||
Other Wildfires | SCE | Aggregate | ||||||||
Commitments and Contingencies | ||||||||
Increase in accrued estimated losses | 1,100 | |||||||
Insurance recoveries | 679 | |||||||
Expected revenue through electric rates | $ 175 |
Commitments and Contingencies_7
Commitments and Contingencies (Environmental Remediation) (Details) - SCE $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) site | Mar. 31, 2023 USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | ||
Recorded estimated minimum liability | $ 247 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | |
Environmental remediation regulatory assets | $ 227 | |
Expected recovery from incentive mechanism | $ 34 | |
Expected recovery from incentive mechanism (percent) | 90% | |
Recovery through customer rates | $ 193 | |
Recovery through customer rates (percent) | 100% | |
Clean up (period) | 40 years | |
Expected remediation costs, low end of range | $ 12 | |
Expected remediation costs, high end of range | 27 | |
Environmental remediation expense | $ 2 | $ 2 |
Material sites | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Identified remediation sites (number) | site | 21 | |
Minimum estimated liability | $ 1 | |
Recorded estimated minimum liability | 243 | |
Cost may exceed liability | 113 | |
Material sites | San Onofre | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Recorded estimated minimum liability | $ 159 | |
Immaterial sites | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Identified remediation sites (number) | site | 18 | |
Recorded estimated minimum liability | $ 4 | |
Cost may exceed liability | $ 1 |
Commitments and Contingencies_8
Commitments and Contingencies (Nuclear) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Palo Verde (nuclear) | |
Commitments and Contingencies | |
Federal loss limit, bodily injury and property damage from nuclear incident | $ 16,300 |
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 | 79 |
Maximum per incident annual | 12 |
SCE | San Onofre | |
Commitments and Contingencies | |
Minimum federal requirement of nuclear property insurance | $ 50 |
Equity (Common) (Details)
Equity (Common) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Stock compensation awards | |
Equity | |
Stock issued (in shares) | shares | 661,530 |
Proceeds received, net of offering costs | $ 18 |
In lieu of dividend payment | |
Equity | |
Stock issued (in shares) | shares | 70,246 |
Proceeds received, net of offering costs | $ 5 |
401(K) | |
Equity | |
Stock issued (in shares) | shares | 43,300 |
Proceeds received, net of offering costs | $ 3 |
Employee Stock Purchase Plan | |
Equity | |
Stock issued (in shares) | shares | 31,112 |
Proceeds received, net of offering costs | $ 2 |
At-the-market Program (ATM) | |
Equity | |
Aggregate sale price | $ 500 |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Equity | ||
Preferred stock repurchased | $ 19 | |
Gain/loss on shares acquired | $ 1 | |
Series B | ||
Equity | ||
Shares repurchased | 20,000 | |
Average price shares acquired (in dollars per share) | $ 952 | |
Preferred stock repurchased | $ 19 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | $ 17,944 | $ 17,522 |
Changes in accumulated other comprehensive loss | ||
Other comprehensive income, net of tax | 2 | |
Ending Balance | 17,615 | 17,549 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (9) | (11) |
Changes in accumulated other comprehensive loss | ||
Other comprehensive income, net of tax | 2 | |
Ending Balance | (9) | (9) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss | ||
Other comprehensive (loss) income before reclassifications | 2 | |
SCE | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | 21,404 | 20,789 |
Changes in accumulated other comprehensive loss | ||
Other comprehensive income, net of tax | 1 | |
Ending Balance | 21,097 | 20,807 |
SCE | Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning balance | (12) | (8) |
Changes in accumulated other comprehensive loss | ||
Other comprehensive income, net of tax | 1 | |
Ending Balance | (11) | $ (8) |
SCE | Accumulated Defined Benefit Plans Adjustment | ||
Changes in accumulated other comprehensive loss | ||
Reclassified from accumulated other comprehensive loss1 | $ 1 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income And Expense | ||
Total other income and (expenses), net | $ 138 | $ 119 |
SCE | ||
Other Income And Expense | ||
Equity allowance for funds used during construction | 47 | 36 |
Increase in cash surrender value of life insurance policies and life insurance benefits | 12 | 11 |
Interest income | 64 | 60 |
Net periodic benefit income - non-service components | 22 | 26 |
Civic, political and related activities and donations | (7) | (9) |
Interest income and other | (3) | (4) |
Total other income and (expenses), net | 135 | 120 |
Edison International Parent and Other | ||
Other Income And Expense | ||
Net (losses) gains on equity securities | (3) | |
Interest income and other | $ 3 | $ 2 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash payments (receipts): | ||
Interest, net of amounts capitalized | $ 348 | $ 326 |
Income taxes, net | 0 | 0 |
Common stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 300 | 282 |
Preferred stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 9 | 8 |
SCE | ||
Cash payments (receipts): | ||
Interest, net of amounts capitalized | 322 | 292 |
Income taxes, net | 0 | 0 |
Non-cash financing and investing activities: | ||
Accrued capital expenditures | 620 | 592 |
SCE | Common stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | 360 | 350 |
SCE | Preferred stock | ||
Non-cash financing and investing activities: | ||
Dividends declared but not paid | $ 9 | $ 8 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Related party transactions | |||||
Long-term insurance receivable due from affiliate | $ 499 | $ 501 | |||
SCE | |||||
Related party transactions | |||||
Wildfire insurance expense | $ 450 | ||||
SCE | Wildfire liability insurance | Edison Insurance Services-EIS | |||||
Related party transactions | |||||
Wildfire-related insurance premiums | $ 273 | ||||
Long-term insurance receivable due from affiliate | $ 365 | $ 355 | |||
Wildfire insurance expense | $ 66 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
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 |