Edison International (EIX) 10-Q 6 Nov 09 2009 Q3 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CONSOLIDATED STATEMENTS OF INCOME
Electric utility	$3,065	$3,467	$7,526	$8,696
Competitive power generation	592	813	1,759	2,143
Financial services and other	7	14	25	45
Total operating revenue	3,664	4,294	9,310	10,884
Fuel	406	635	1,120	1,725
Purchased power	1,032	1,333	2,155	3,053
Other operation and maintenance	1,093	1,035	3,136	3,110
Depreciation, decommissioning and amortization	365	327	1,053	972
Lease terminations and other		(1)	888	(75)
Total operating expenses	2,896	3,329	8,352	8,785
Operating income	768	965	958	2,099
Interest and dividend income	2	9	29	44
Equity in income from partnerships and unconsolidated subsidiaries - net	35	31	34	40
Other nonoperating income	74	23	131	78
Interest expense - net of amounts capitalized	(187)	(176)	(556)	(511)
Other nonoperating deductions	(16)	(82)	(41)	(115)
Income from continuing operations before income taxes	676	770	555	1,635
Income tax expense (benefit)	232	277	(169)	521
Income from continuing operations	444	493	724	1,114
Income (loss) from discontinued operations - net of tax	(1)	6	(5)
Net income	443	499	719	1,114
Less: Net income attributable to noncontrolling interests	40	60	82	115
Net income attributable to Edison International common shareholders	403	439	637	999
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax	404	433	642	999
Income (loss) from discontinued operations, net of tax	(1)	6	(5)
Net income attributable to Edison International common shareholders	$403	$439	$637	$999
Weighted-average shares of common stock outstanding (in shares)	326	326	326	326
Basic earnings per common share attributable to Edison International common shareholders:
Continuing operations (in dollars per share)	1.23	1.31	1.95	3.03
Discontinued operations (in dollars per share)		0.02	-0.01
Total (in dollars per share)	1.23	1.33	1.94	3.03
Weighted-average shares of common stock outstanding, including effect of dilutive securities (in shares)	329	328	328	329
Diluted earnings per common share attributable to Edison International common shareholders:
Continuing operations (in dollars per share)	1.22	1.31	1.95	3.02
Discontinued operations (in dollars per share)		0.02	-0.01
Total (in dollars per share)	1.22	1.33	1.94	3.02
Dividends declared per common share (in dollars per share)	0.31	0.305	0.93	0.915

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$443	$499	$719	$1,114
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments - net		(1)	4	(4)
Pension and postretirement benefits other than pensions:
Net gain arising during the period-net			1
Amortization of net loss included in net income - net	1		4
Unrealized gain (loss) on cash flow hedges:
Unrealized gain (loss) arising during the period - net of income tax expense (benefit) of $(4) and $357 for the three months and $44 and $53 for the nine months ended September 30, 2009 and 2008, respectively	(5)	535	56	81
Reclassification adjustments included in net income - net of income tax expense (benefit) of $52 and $44 for the three months and $75 and $(45) for the nine months ended September 30, 2009 and 2008, respectively	(72)	(65)	(104)	69
Other comprehensive income (loss)	(76)	469	(39)	146
Comprehensive income	367	968	680	1,260
Less: Comprehensive income attributable to noncontrolling interests	40	60	82	115
Comprehensive income attributable to Edison International	$327	$908	$598	$1,145

1_CONSOLIDATED STATEMENTS OF CO

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized gain (loss) arising during the period, income tax expense (benefit)	($4)	$357	$44	$53
Reclassification adjustment for gain (loss) included in net income, income tax expense (benefit)	($52)	($44)	($75)	$45

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 30, 2009		Dec. 31, 2008
ASSETS
Cash and equivalents	$2,411		$3,916
Short-term investments	5		7
Receivables, less allowances of $47 and $39 for uncollectible accounts at respective dates	1,158		1,006
Accrued unbilled revenue	583		328
Inventory	549		553
Derivative assets	403		327
Restricted cash	148		3
Margin and collateral deposits	222		105
Regulatory assets	57		605
Deferred income taxes - net	28		104
Other current assets	204		399
Total current assets	5,768		7,353
Nonutility property - less accumulated depreciation of $2,157 and $2,019 at respective dates	4,718		5,374
Nuclear decommissioning trusts	3,025		2,524
Investments in partnerships and unconsolidated subsidiaries	238		229
Investments in leveraged leases	164		2,467
Other investments	93		89
Total investments and other assets	8,238		10,683
Utility plant, at original cost:
Transmission and distribution	21,035		20,006
Generation	2,633		1,819
Accumulated depreciation	(5,757)		(5,570)
Construction work in progress	2,688		2,454
Nuclear fuel, at amortized cost	277		260
Total utility plant	20,876		18,969
Derivative assets	344		244
Restricted deposits	43		43
Rent payments in excess of levelized rent expense under plant operating leases	1,039		878
Regulatory assets	5,084		5,414
Other long-term assets	1,380		1,031
Total long-term assets	7,890		7,610
Total assets	42,772		44,615
LIABILITIES AND EQUITY
Short-term debt	85		2,143
Current portion of long-term debt	842		174
Accounts payable	966		1,031
Accrued taxes	271		590
Accrued interest	207		187
Customer deposits	241		228
Book overdrafts	260		224
Derivative liabilities	108		178
Regulatory liabilities	1,176		1,111
Other current liabilities	803		831
Total current liabilities	4,959		6,697
Long-term debt	10,448		10,950
Deferred income taxes - net	4,414		5,717
Deferred investment tax credits	198		109
Customer advances	123		137
Derivative liabilities	674		776
Pensions and benefits	3,000		2,860
Asset retirement obligations	3,179		3,042
Regulatory liabilities	2,848		2,481
Other deferred credits and other long-term liabilities	1,924		1,137
Total deferred credits and other liabilities	16,360		16,259
Total liabilities	31,767		33,906
Commitments and contingencies (Note 6)
Common stock, no par value (325,811,206 shares outstanding at each date)	2,294	[1]	2,272	[1]
Accumulated other comprehensive income	128		167
Retained earnings	7,401		7,078
Total Edison International's common shareholders' equity	9,823		9,517
Noncontrolling interests - other	275		285
Preferred and preference stock of utility not subject to mandatory redemption	907		907
Total equity	11,005		10,709
Total liabilities and equity	$42,772		$44,615
[1]Authorized common stock is 800 million shares at each reporting period

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Share data	Sep. 30, 2009	Dec. 31, 2008
CONSOLIDATED BALANCE SHEETS
Receivables, allowances for uncollectible accounts	$47	$39
Nonutility property, accumulated depreciation	$2,157	$2,019
Common stock, no par value (in dollars per share)	$0	$0
Common stock, shares outstanding	325,811,206	325,811,206
Common stock, shares authorized	800,000,000	800,000,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net income	$719	$1,114
Loss from discontinued operations	5
Income from continuing operations	724	1,114
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization	1,053	972
Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation)	133	42
Other amortization	95	80
Lease terminations and other	888	(75)
Stock-based compensation	17	25
Equity in income from partnerships and unconsolidated subsidiaries - net	(34)	(40)
Distributions and dividends from unconsolidated entities	5	9
Deferred income taxes and investment tax credits	(1,322)	69
Rent payments in excess of levelized rent expense	(161)	(162)
Income from leveraged leases	(13)	(39)
Long-term regulatory assets and liabilities - net	338	(28)
Long-term derivative assets and liabilities - net	(176)	29
Other assets	(136)	(71)
Other liabilities	835	(13)
Changes in working capital:
Margin and collateral deposits - net of collateral received	(99)	(70)
Receivables and accrued unbilled revenue	(409)	(378)
Inventory	4	(75)
Restricted cash	(148)
Other current assets	190	93
Book overdrafts	41	90
Accrued taxes	(318)	128
Current regulatory assets and liabilities - net	613	(97)
Current derivative assets and liabilities - net	(238)	(3)
Accounts payable and other current liabilities	235	35
Operating cash flows from discontinued operations	(5)
Net cash provided by operating activities	2,112	1,635
Cash flows from financing activities:
Long-term debt issued	939	2,132
Long-term debt issuance costs	(25)	(15)
Long-term debt repaid	(566)	(246)
Bonds repurchased	(219)	(212)
Preferred stock redeemed		(7)
Short-term debt financing - net	(2,058)	1,308
Cash contributions from noncontrolling interests	2
Stock-based compensation - net	4	(22)
Dividends and distributions to noncontrolling interests	(88)	(116)
Dividends paid	(303)	(298)
Net cash provided (used) by financing activities	(2,314)	2,524
Cash flows from investing activities:
Capital expenditures	(2,287)	(1,959)
Purchase of interest in acquired companies	(7)	(11)
Proceeds from termination of leases	1,420
Proceeds from sale of property and interests in projects	1	113
Proceeds from nuclear decommissioning trust sales	1,814	2,279
Purchases of nuclear decommissioning trust investments and other	(1,977)	(2,329)
Proceeds from partnerships and unconsolidated subsidiaries, net of investment	10	35
Maturities and sales of short-term investments	3	80
Purchase of short-term investments	(1)	(22)
Customer advances for construction and other investments	(279)	(322)
Net cash used by investing activities	(1,303)	(2,136)
Net increase (decrease) in cash and equivalents	(1,505)	2,023
Cash and equivalents, beginning of period	3,916	1,441
Cash and equivalents, end of period	$2,411	$3,464

Managements Statement

Managements Statement
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Management's Statement	Management's Statement In the opinion of management, all adjustments, including recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form10-Q. The results of operations for the three- and nine-month periods ended September30, 2009 are not necessarily indicative of the operating results for the full year. This quarterly report should be read in conjunction with Edison International's Annual Report to Shareholders incorporated by reference into Edison International's Annual Report on Form10-K for the year ended December31, 2008 filed with the Securities and Exchange Commission.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Summary of Significant Accounting Policies	Note1. Summary of Significant Accounting Policies Basis of Presentation Edison International's significant accounting policies were described in Note1 of "Notes to Consolidated Financial Statements" included in its 2008 Annual Report on Form10-K. Edison International follows the same accounting policies for interim reporting purposes. The December31, 2008 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Certain prior-year reclassifications have been made to conform to the current year financial statement presentation mostly pertaining to the presentation of noncontrolling interests in the consolidated financial statements and the elimination of the previously reported income statement caption "Provision for regulatory adjustment clauses net" through classifications within relevant captions including "Operating revenue," "Purchased power," "Other operation and maintenance" and "Depreciation, decommissioning and amortization." Except as indicated, amounts presented in the Notes to the Consolidated Financial Statements relate to continuing operations. Edison International has performed an evaluation of subsequent events through November6, 2009, the date the financial statements were issued. Cash and Equivalents Cash and equivalents as of September30, 2009 and December31, 2008 consisted of the following: In millions September30, 2009 December31, 2008 (Unaudited) Cash $ 252 $ 138 Money market funds $ 2,159 $ 3,583 U.S. government agency securities 164 Commercial paper 30 Time deposits (certificates of deposit) 1 Total cash equivalents $ 2,159 $ 3,778 Total cash and equivalents $ 2,411 $ 3,916 Cash equivalents, with the exception of money market funds, were stated at amortized cost plus accrued interest. The carrying value of cash equivalents equals the fair value as all investments have maturities of less than three months. For further discussion of money market funds, see Note11. Included in cash and equivalents is $94million and $89million at September30, 2009 and December31, 2008, respectively, for four projects that Edison International is consolidating under an accounting interpretation for VIEs. Earnings Per Common Share Edison International computes EPS using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock based compensation awards payable in common shares, including stock options, performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares. Stock options awarded during the period 2003 through 2006 received dividend equivalents. Stock options awarded prior to 2002 and after 2006 were granted without a dividend equivalent feature. As a result of meeting a performance trigger, the options granted in 1998 and 1999 began

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Instruments and Hedging Activities	Note2. Derivative Instruments and Hedging Activities Electric Utility Commodity Price Risk SCE is exposed to commodity price risk from its purchases of capacity and ancillary services to meet peak energy requirements and from exposure to natural gas prices that affect costs associated with power purchased from QFs, fuel tolling arrangements, and its own gas-fired generation, including SCE's Mountainview and peaker plants. Contract energy prices for most nonrenewable QFs are based in large part on the monthly index price of natural gas delivered at the Southern California border. SCE also has power contracts, referred to as tolling arrangements, in which SCE has agreed to provide the natural gas needed for generation under those power contracts or pay for the natural gas based on published index prices. In addition to SCE's Mountainview and peaker plants, approximately 42% of SCE's purchased power supply is subject to natural gas price volatility. Fair value changes in SCE's derivative instruments are expected to be recovered from or refunded to ratepayers and therefore, fair value changes have no impact on earnings, but may temporarily affect cash flows. Natural Gas and Electricity Price Risk SCE has an active hedging program in place to minimize ratepayer exposure to variability in market prices; however, to the extent that SCE does not mitigate the exposure to commodity price risk, the unhedged portion is subject to the risks and benefits of spot-market price movements, which are ultimately passed-through to ratepayers. To mitigate SCE's exposure to variability in market prices, SCE enters into energy options, tolling arrangements, forward physical contracts and transmission congestion revenue rights (CRRs). SCE also enters into contracts for power and gas options, as well as swaps and futures, in order to mitigate its exposure to increases in natural gas and electricity pricing. These transactions are pre-approved by the CPUC or executed in compliance with CPUC-approved procurement plans. SCE records its derivative instruments on its consolidated balance sheets at fair value unless they meet the definition of a normal purchase or sale. The derivative instrument fair values are marked to market at the end of each reporting period. Any fair value changes are expected to be recovered from or refunded to customers through regulatory mechanisms and therefore, SCE's fair value changes have no impact on purchased-power expense or earnings. Hedge accounting is not used for these transactions due to this regulatory accounting treatment. Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for hedging activities at September30, 2009: Commodity Unit of Measure Economic Hedges (Unaudited) Electricity options, swaps and forward arrangements MW 24,308 Natural gas options, swaps and forward arrangements Bcf 272 Congestion revenue rights(1) MW 516,488 Tolling arrangements(2) MW 2,556 (1) In September 2007 and November 2008, the CAISO allocated CRRs for the period April 200

Liabilities and Lines of Credit

Liabilities and Lines of Credit
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Liabilities and Lines of Credit	Note3. Liabilities and Lines of Credit Long-Term Debt In March 2009, SCE issued $500million of 6.05% and $250million of 4.15% first and refunding mortgage bonds due in 2039 and 2014, respectively. The bond proceeds were used for general corporate purposes and to finance fuel inventories. In February 2009, SCE repaid $150million of its first and refunding mortgage bonds. In March 2009, SCE purchased two issues of its tax-exempt pollution control bonds totaling $219million and converted the issues to a variable rate structure. SCE continues to hold the bonds which remain outstanding and have not been retired or cancelled. In June 2009, EME completed through its subsidiary, Viento Funding II,Inc., a non-recourse financing of its interests in the Wildorado, San Juan Mesa and Elkhorn Ridge wind projects. The financing included a $189million seven-year term loan and a $13million letter of credit facility which replaced project letters of credit previously issued under the EME corporate credit facility. In July 2009, Viento Funding II amended the credit agreement to add a working capital facility. Availability under the working capital facility is initially $3.8million and steps up semi-annually to $5.2million by maturity. The agreement restricts the use of proceeds from the working capital facility to operation and maintenance expenditures at these three wind projects. In September 2009, Midwest Generation and EME repaid $200million and $163million, respectively, of borrowings under their respective credit facilities. The outstanding balances under Midwest Generation's working capital facility of $275million and EME's corporate credit facility of $188million were reported as current portion of long-term obligations on EME's consolidated balance sheet and were repaid in October 2009. Short-Term Debt At September30, 2009, Edison International (parent) had $85million of short-term debt outstanding under its $1.4billion credit facility at a weighted average interest rate of 0.61%. Credit Agreements On March17, 2009, SCE entered into a new $500million 364-day revolving credit facility, terminating on March16, 2010. The additional liquidity provided by the facility will be used to support SCE's ongoing power procurement-related needs. In June 2009, SCE amended its $2.5billion five-year credit facility, reducing the commitment to $2.4billion, and Edison International amended its $1.5billion revolving credit facility, reducing the commitment to $1.4billion. Both amendments were made to remove a subsidiary of Lehman Brothers Holdings as a lender. The following table summarizes the status of the credit facilities at September30, 2009: In millions SCE EMG Edison International (parent) (Unaudited) Commitment $ 2,894 $ 1,100 $ 1,426 Less: Commitment from Lehman Brothers subsidiary (36 ) $ 2,894 $ 1,064 $ 1,426 Outstanding borrowings (463 ) (85 ) Outstanding letters of credit (82 ) (105 ) Amount available $ 2,812 $ 496 $ 1,341

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income Taxes	Note4. Income Taxes Edison International's composite federal and state statutory income tax rates were approximately 40% (net of the federal benefit for state income taxes) for all periods presented. Edison International's effective tax rates, excluding income attributable to non-controlling interests, were 36% and (36%) for the three- and nine-month periods ended September30, 2009, respectively, as compared to 39% and 34% for the respective periods in 2008. The principal items affecting comparability of the effective tax rates for the three- and nine-month periods ended September30, 2009 and 2008 werelower software and property flow-through deductions in 2009, partially offset by higher nondeductible expenses during 2008. The nine-month period also includes a $300million benefit recorded in 2009 related to the Global Settlement discussed below. The American Recovery and Reinvestment Act of 2009 (ARRA) included a number of provisions that provide tax incentives to stimulate the economy, including incentives for energy-related investments and activities. ARRA extends the 50% bonus depreciation provision for an additional year to include property placed in service by December31, 2009, provides for an option to elect a cash grant in lieu of an investment tax credit for certain renewable energy property, including the solar energy investment tax credit, and provides for an option to claim cash grants or an investment tax credit in lieu of certain production tax credits, including the wind production tax credit. To elect the cash grant an application must be filed with the United States Department of Treasury. SCE's PVSolar Rooftop facilities are expected to qualify for the investment tax credit and SCE also expects that it will have the option to elect the cash grant. EME placed PhaseII of the Goat Wind and High Lonesome wind projects in service during 2009. For its most recently completed projects, EME is currently planning to claim investment tax credits for PhaseII of the Goat Wind and High Lonesome wind projects and to claim production tax credits for its Elkhorn Ridge wind project. Both SCE and EME are reviewing the rules issued by the United States Department of Treasury regarding the grant program in their evaluations as to whether to make the grant election. Edison International accounts for investment tax credits on the deferred method and, accordingly, will recognize tax benefits related to such credits over the estimated useful life of the projects. Accounting for Uncertainty in Income Taxes The following table provides a reconciliation of unrecognized tax benefits from January1 to September30: In millions 2009 2008 (Unaudited) Balance at January1 $ 2,237 $ 2,114 Tax positions taken during the current year Increases 134 75 Tax positions taken during a prior year Increases 135 105 Decreases (30 ) (129 ) Decreases for settlements during the period (1,807 ) Balance at September30 $ 669 $ 2,165 Unrecognized tax benefits were reduced by $1.8billion

Compensation and Benefits Plans

Compensation and Benefits Plans
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Compensation and Benefits Plans	Note5. Compensation and Benefits Plans Pension Plans For the nine months ended September30, 2009, Edison International made 2008 plan year contributions of $6million and 2009 plan year contributions of $56million and expects to make $51million of additional 2009 plan year contributions in the last three months of 2009. SCE's total 2009 annual contributions are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to its total annual expense. Net pension cost recognized is calculated under the actuarial method used for ratemaking. The difference between pension costs calculated for accounting and ratemaking is deferred. Expense components are: Three Months Ended September30, Nine Months Ended September30, In millions 2009 2008 2009 2008 (Unaudited) Service cost $ 32 $ 32 $ 96 $ 95 Interest cost 52 50 155 151 Expected return on plan assets (42 ) (65 ) (125 ) (197 ) Amortization of prior service cost 4 4 12 13 Amortization of net loss 14 42 1 Expense under accounting standards $ 60 $ 21 $ 180 $ 63 Regulatory adjustment deferred (24 ) (72 ) Total expense recognized $ 36 $ 21 $ 108 $ 63 Postretirement Benefits Other Than Pensions For the nine months ended September30, 2009, Edison International made 2009 plan year contributions of $13million and expects to make $67million of additional 2009 plan year contributions in the last three months of 2009. SCE's total 2009 annual contributions are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to its total annual expense. Expense components are: Three Months Ended September30, Nine Months Ended September30, In millions 2009 2008 2009 2008 (Unaudited) Service cost $ 8 $ 12 $ 24 $ 36 Interest cost 31 35 93 105 Expected return on plan assets (20 ) (31 ) (60 ) (93 ) Amortization of prior service cost (credit) (8 ) (8 ) (24 ) (24 ) Amortization of net loss 11 4 33 12 Total expense recognized $ 22 $ 12 $ 66 $ 36 Stock-Based Compensation During the first quarter of 2009, Edison International granted its 2009 stock-based compensation awards, which included stock options, performance shares, deferred stock units and restricted stock units. Total stock-based compensation expense (reflected in the caption "Other operation and maintenance" on the consolidated statements of income) was $9million and $5million for the three months ended September30, 2009 and 2008, respectively, and was $25million and $24million for the nine months ended September30, 2009 and 2008, respectively. The income tax benefit recognized in the consolidated statements of income was $4million and $2million for the three months ended September30, 20

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Commitments and Contingencies	Note6. Commitments and Contingencies The following is an update to Edison International's commitments and contingencies. See Note6 of "Notes to Consolidated Financial Statements" included in Edison International's 2008 Annual Report on Form10-K for a detailed discussion. Lease Commitments Edison International has operating leases for power contracts and other operating leases for office space, vehicles, property and other equipment (with varying terms, provisions and expiration dates). SCE also has power purchase contracts which meet the requirements for capital leases and are reflected in "Utility plant" on the consolidated balance sheets. The gross amount of assets recorded in "Utility plant" for capital leases was $25million at both September30, 2009 and December31, 2008. The asset carrying amount, net of amortization, was $13million and $16million at September30, 2009 and December31, 2008, respectively. The related obligations are reflected on the consolidated balance sheets as "Other current liabilities" and "Other deferred credits and other long-term liabilities." In addition, SCE has power purchase contracts which meet the requirements for capital leases, but are not reflected on the consolidated balance sheets since the lease terms begin in 2010. There are no sublease rentals and the contingent rentals for capital leases were less than $1million for both the nine months ended September30, 2009 and 2008. For additional discussion of these lease commitments, see Note1 and 6 of "Notes to Consolidated Financial Statements" included in Edison International's 2008 Annual Report on Form10-K. The following are the estimated remaining commitments (the majority of "other operating leases" are related to EME's long-term leases for the Illinois power facilities and Homer City facilities) for noncancelable operating leases and all contracts that meet the requirements for capital leases (whether or not recorded on the consolidated balance sheets): In millions Operating Leases Power Contracts Operating Leases Other Capital Leases (Unaudited) Year ending December31, 2009 (remaining three months) $ 84 $ 64 $ 1 2010 626 400 96 2011 498 378 93 2012 361 369 120 2013 356 356 120 Thereafter 2,186 2,183 2,388 Total future commitments $ 4,111 $ 3,750 $ 2,818 Amount representing executory costs (696 ) Amount representing interest (402 ) Net commitments $ 4,111 $ 3,750 $ 1,720 The minimum commitments above do not include EME's contingent rentals with respect to the wind projects which may be paid under certain leases on the basis of a percentage of sales calculation if this is in excess of the stipulated minimum amount. Operating lease expense was $242million and $212million for the three months ended September30, 2009 and 2008, respectively, and was $478million and $456million for the nine months ended September30, 2009 and 2008, respectively. Other Commitments At September30, 2009, EME's s

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Changes in Equity	Note7. Consolidated Statement of Changes in Equity The following table provides the changes in equity for the nine months ended September30, 2009: Equity Attributable to Edison International Noncontrolling Interests In millions Common Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity (Unaudited) Balance at December31, 2008 $ 2,272 $ 167 $ 7,078 $ 9,517 $ 285 $ 907 $ 10,709 Net income 637 637 44 38 719 Other comprehensive loss (39 ) (39 ) (39 ) Common stock dividends declared ($0.93per share) (303 ) (303 ) (303 ) Dividends, distributions to noncontrolling interests and other (54 ) (38 ) (92 ) Shares purchased for stock-based compensation (8 ) (8 ) (8 ) Proceeds from stock option exercises 5 5 5 Noncash stock-based compensation and other 16 (8 ) 8 8 Excess tax benefits related to stock-based awards 6 6 6 Balance at September30, 2009 $ 2,294 $ 128 $ 7,401 $ 9,823 $ 275 $ 907 $ 11,005 The following table provides the changes in equity for the nine months ended September30, 2008: Equity Attributable to Edison International Noncontrolling Interests In millions Common Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity (Unaudited) Balance at December31, 2007 $ 2,225 $ (92 ) $ 6,311 $ 8,444 $ 295 $ 915 $ 9,654 Net income 999 999 77 38 1,114 Other comprehensive income 146 146 146 Common stock dividends declared ($0.915per share) (298 ) (298 ) (298 ) Preferred stock redeemed, net of gain 2 2 (8 ) (6 ) Dividends, distributions to noncontrolling interests and other (53 ) (38 ) (91 ) Shares purchased for stock-based compensation (57 ) (57 ) (57 ) Proceeds from stock option exercises 23 23 23 Noncash stock-based compensation and other 24 (14 ) 10 10 Excess tax benefits related to stock-based awards 12 12 12 Balance at September30, 2008 $ 2,263 $ 54 $ 6,964 $ 9,281 $ 319 $ 907 $ 10,507

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accumulated Other Comprehensive Income	Note8. Accumulated Other Comprehensive Income Edison International's accumulated other comprehensive income consists of: In millions Unrealized Gains on Cash Flow Hedges Foreign Currency Translation Adjustment Pension and PBOP Net Gain (Loss) Pension and PBOP Prior Service Cost Accumulated Other Comprehensive Income (Unaudited) Balance at December31, 2008 $ 240 $ (4 ) $ (70 ) $ 1 $ 167 Current period change (48 ) 4 5 (39 ) Balance at September30, 2009 $ 192 $ $ (65 ) $ 1 $ 128 The amount of commodity hedges included in unrealized gains on cash flow hedges, net of tax, at September30, 2009 was a gain of $194million. The amount of interest rate hedges included in unrealized gains on cash flow hedges, net of tax, at September30, 2009 was a loss of $2million. For further discussion regarding interest rate hedges, see Note2. Unrealized gains on commodity hedges included those related to Midwest Generation and EME Homer City futures and forward electricity contracts that qualify for hedge accounting. These gains arise because current forecasts of future electricity prices in these markets are lower than the contract prices. As EME's hedged positions for continuing operations are realized, $146million, after tax, of the net unrealized gains on cash flow hedges at September30, 2009 are expected to be reclassified into earnings during the next 12months. Management expects that reclassification of net unrealized gains will increase energy revenue recognized at market prices. Actual amounts ultimately reclassified into earnings over the next 12months could vary materially from this estimated amount as a result of changes in market conditions. The maximum period over which a cash flow hedge is designated is through December31, 2011.

Property and Plant

Property and Plant
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Property and Plant	Note9. Property and Plant On March12, 2009, the CPUC issued a final decision in SCE's 2009 GRC, authorizing the transfer of the assets and liabilities of Mountainview Power Company,LLC, a 100% owned subsidiary of SCE, to SCE. SCE received FERC and other necessary approvals, and on July1, 2009, terminated the FERC-approved power-purchase agreement between Mountainview Power Company,LLC and SCE, and transferred assets and liabilities valued at $680million and $173million, respectively. The transfer resulted in a $603million increase in SCE's utility plant (primarily generation plant) with a corresponding decrease in nonutility property (primarily building, plant and equipment). In addition, SCE recognized a one time, non-cash accounting benefit of approximately $46million primarily resulting from the establishment of regulatory assets to recognize differences in the accounting treatment for non-regulated and rate-regulated entities mainly related to equity AFUDC. There was no economic impact to customers from this change as compared to the FERC-approved power-purchase agreement; as these amounts would have been recognized over the life of that agreement and have no impact on cash flows.

Supplemental Cash Flows Informa

Supplemental Cash Flows Information
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Supplemental Cash Flows Information	Note10. Supplemental Cash Flows Information Edison International's supplemental cash flows information is: Nine Months Ended September30, In millions 2009 2008 (Unaudited) Cash payments for interest and taxes: Interest net of amounts capitalized $ 485 $ 390 Tax payments $ 393 $ 273 Noncash investing and financing activities: Dividends declared but not paid: Common stock $ 101 $ 99 Preferred and preference stock of utility not subject to mandatory redemption $ 8 $ 13

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fair Value Measurements	Note11. 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"). Authoritative guidance on fair value measurements and disclosures clarifies that a fair value measurement for a liability should reflect the entity's non-performance risk. In addition, a fair value hierarchy is established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level1 measurements) and the lowest priority to unobservable inputs (Level3 measurements). The three levels of the fair value hierarchy are: Level1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities; Level2 Pricing inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the derivative instrument; and Level3 Prices or valuations that require inputs that are both significant to the fair value measurements and unobservable. Edison International's assets and liabilities carried at fair value primarily consist of derivative contracts, SCE nuclear decommissioning trust investments and money market funds. Derivative contracts primarily relate to power and gas and include contracts for forward physical sales and purchases, options and forward price swaps which settle only on a financial basis (including futures contracts). Derivative contracts can be exchange traded or over-the-counter traded. The fair value of derivative contracts takes into account quoted market prices, time value of money, volatility of the underlying commodities and other factors. Derivatives that are exchange traded in active markets for identical assets or liabilities are classified as Level1. The majority of EME's derivative contracts used for hedging purposes are based on forward market prices in active markets (PJM West Hub, Northern Illinois Hub peak and AEP/Dayton) adjusted for nonperformance risks. EME obtains forward market prices from traded exchanges (ICE Futures U.S. or New York Mercantile Exchange) and available broker quotes. Then, EME selects a primary source that best represents traded activity for each market to develop observable forward market prices in determining the fair value of these positions. Broker quotes or prices from exchanges are used to validate and corroborate the primary source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources that EME believes to provide the most liquid market for the commodity. EME considers broker quotes to be observable when corroborated with other information which may include a combination of prices from exchanges, other brokers and comparison to executed trades. The majority of the fair value of EME's derivative contracts determined in this manner are

Regulatory Assets and Liabiliti

Regulatory Assets and Liabilities
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Regulatory Assets and Liabilities	Note12. Regulatory Assets and Liabilities Regulatory assets included on the consolidated balance sheets are: In millions September30, 2009 December31, 2008 (Unaudited) Current: Regulatory balancing accounts $ 47 $ 455 Energy derivatives 8 138 Other 2 12 $ 57 $ 605 Long-term: Regulatory balancing accounts $ 42 $ 29 Flow-through taxes net 1,529 1,337 ARO 224 Unamortized nuclear investment net 352 375 Nuclear-related ARO investment net 263 278 Unamortized coal plant investment net 75 79 Unamortized loss on reacquired debt 293 309 SFAS No.158 pensions and postretirement benefits 1,907 1,882 Energy derivatives 446 723 Environmental remediation 40 40 Other 137 138 $ 5,084 $ 5,414 Total Regulatory Assets $ 5,141 $ 6,019 Regulatory liabilities included on the consolidated balance sheets are: In millions September30, 2009 December31, 2008 (Unaudited) Current: Regulatory balancing accounts $ 1,146 $ 1,068 Other 30 43 $ 1,176 $ 1,111 Long-term: Regulatory balancing accounts $ 33 $ 43 ARO 132 Cost of removal 2,501 2,368 Employee benefit plans 182 70 $ 2,848 $ 2,481 Total Regulatory Liabilities $ 4,024 $ 3,592

Variable Interest Entities

Variable Interest Entities
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Variable Interest Entities	Note13. Variable Interest Entities Projects or Entities that are Consolidated Consolidation of wind projects and QFs EME has purchased a majority interest in a number of wind projects under joint development agreements with third-party developers. At September30, 2009 and December31, 2008, EME had majority interests in 15 wind projects with a total generating capacity of 700 MW that had minority interests held by others. The projects are located in Iowa, Minnesota, NewMexico, Nebraska and Texas. Minority interest holders have key rights over matters such as budgets, incurrence of debt, and sale of the project, and in certain cases, receive a higher allocation of income and losses after a minimum return is earned by EME. In determining that EME was the primary beneficiary, a key factor was the conclusion that the power sales agreements did not constitute a variable interest since the agreements have a fixed unit price and do not absorb expected losses. Based on the allocation of income and losses, EME expects to earn a majority of the expected gains or absorb the majority of the expected losses from these entities and, therefore, determined that it is the primary beneficiary. SCE has variable interests in contracts with certain QFs that contain variable contract pricing provisions based on the price of natural gas. Four of these contracts are with entities that are partnerships owned in part by a related party, EME. The QFs sell electricity to SCE and steam to nonrelated parties. SCE has determined that it is the primary beneficiary of these four variable interest entities and therefore consolidates these projects. In determining that SCE was the primary beneficiary, SCE considered the term of the contract, percentage of plant capacity, pricing, and other variable interests. SCE performed a quantitative assessment which included the analysis of the expected losses and expected residual returns of the entity by using the various estimated projected cash flow scenarios associated with the assets and activities of that entity. The quantitative analysis provided sufficient evidence to determine that SCE was the primary beneficiary absorbing a majority of the entity's expected losses, receiving a majority of the entity's expected residual returns, or both. Project Capacity Termination Date(1) EME Ownership (Unaudited) Kern River 300 MW June 2011 50 % Midway-Sunset 225 MW May 2009 50 % Sycamore 300 MW December 2007 50 % Watson 385 MW December 2007 49 % (1) SCE's power purchase agreements with Sycamore and Watson expired on December31, 2007. In addition, SCE's power purchase agreement with Midway-Sunset expired on May7, 2009. These three projects are currently selling electricity to SCE under the terms and conditions contained in its prior long-term power purchase agreement, with revised pricing terms as mandated by the CPUC. On September28, 2009, Midway-Sunset entered into a power purchase agreement with Pacific Gas and Electric Company, subject to California Public Utilities Commission approval.

Business Segments

Business Segments
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments	Note14. Business Segments Edison International's reportable business segments include its electric utility operation segment (SCE), a competitive power generation segment (EME), and a financial services and other segment (Edison Capital and other EMG subsidiaries). Edison International evaluates performance based on net income. SCE is a rate-regulated electric utility that supplies electric energy to a 50,000 square-mile area of central, coastal and Southern California. SCE also produces electricity. EME is engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from electric power generation facilities. EME also conducts hedging and energy trading activities in power markets open to competition. Edison Capital is a provider of financial services with investments worldwide. Segment income statement information was: Three Months Ended September30, Nine Months Ended September30, In millions 2009 2008 2009 2008 (Unaudited) Operating Revenue (Loss): Electric utility $ 3,069 $ 3,468 $ 7,531 $ 8,698 Competitive power generation 593 814 1,762 2,146 Financial services and other(4) 3 13 20 42 Parent and other(5) (1 ) (1 ) (3 ) (2 ) Consolidated Edison International $ 3,664 $ 4,294 $ 9,310 $ 10,884 Net Income (Loss) attributable to Edison International: Electric utility(1) $ 346 $ 235 $ 1,053 $ 542 Competitive power generation(2) 53 209 149 426 Financial services and other(3)(4) 7 5 (599 ) 53 Parent and other(5)(6) (3 ) (10 ) 34 (22 ) Consolidated Edison International $ 403 $ 439 $ 637 $ 999 Segment balance sheet information was: In millions September30, 2009 December31, 2008 (Unaudited) Total Assets: Electric utility $ 33,154 $ 32,568 Competitive power generation 9,160 9,014 Financial services and other(4) 1,027 3,091 Parent and other(6) (569 ) (58 ) Consolidated Edison International $ 42,772 $ 44,615 (1) Includes earnings of $300million recorded in the second quarter of 2009 related to the Global Settlement. See Note4. (2) Includes earnings (loss) from discontinued operations of $(1) million and $6million for the three months ended September30, 2009 and 2008, respectively, and $(5) million for the nine months ended September30, 2009. (3) Includes losses of $628million recorded in the first half of 2009 related to termination of Edison Capital's cross-border leases and the federal and state impacts of Global Settlement on Edison Capital. See Notes4 and Note15. (4) Includes amounts from other EMG subsidiaries that are not significant as a reportable segment. (5) Includes earnings of $50million recorded in the second quarter of 2009 related to the Global Settlement. See Note4. (6) Includes amounts from Edison Internation

Investments in Leveraged Leases

Investments in Leveraged Leases, Partnerships and Unconsolidated Subsidiaries
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments in Leveraged Leases, Partnerships and Unconsolidated Subsidiaries	Note15. Investments in Leveraged Leases, Partnerships and Unconsolidated Subsidiaries Leveraged Leases As of September30, 2009, Edison Capital is a lessor in several power generation and aircraft leveraged leases. Pursuant to an agreement with the Internal Revenue Service, Edison Capital terminated its interests in cross-border leases during the first half of 2009 (see "Global Settlement" in Note4 for further discussion.) The net proceeds and loss, before income tax, from termination of the cross-border leases were $1.385billion and $920million, respectively. The after-tax loss on termination of the cross-border leases, as well as the federal and state income tax impact of the Global Settlement, was $628million. In addition, Edison Capital sold its interest in another leverage lease transaction, Midland Cogeneration Ventures, during the second quarter of 2009 and recorded a pre-tax gain on sale of $33million, $20million after tax. Each of Edison Capital's leveraged lease transactions was completed and accounted for in accordance with SFAS No.13, "Accounting for Leases." All operating, maintenance, insurance and decommissioning costs are the responsibility of the lessees. The acquisition costs of these facilities were $609million and $6.2billion at September30, 2009 and December31, 2008, respectively. The equity investment in these facilities is generally 20% of the cost to acquire the facilities. The balance of the acquisition costs was funded by nonrecourse debt ($250million as of September30, 2009) secured by first liens on the leased property. The lenders do not have recourse to Edison Capital in the event of loan default. The net investment in leveraged leases (including current portion) is: In millions September30, 2009 December31, 2008 (Unaudited) Rental receivables net $ 205 $ 3,259 Estimated residual value 21 42 Unearned income (43 ) (802 ) Investments in leveraged leases $ 183 $ 2,499 Deferred income taxes (168 ) (2,313 ) Net investments in leveraged leases $ 15 $ 186

Subsequent Events

Subsequent Events
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Subsequent Events	Note16. Subsequent Events Big Sky Wind Project In October 2009, EME, through its subsidiary, Big Sky, entered into turbine financing arrangements totaling approximately $206million for wind turbine purchase obligations related to the 240 MW Big Sky wind project with the following principal terms: Big Sky's repayment obligations are guaranteed by EME until the commercial operations date of the Big Sky wind project (or shortly thereafter); interest under the loan accrues at six-month LIBOR plus 2.5% prior to the release of the EME guarantee, and at six-month LIBOR plus 3.5% thereafter; and the loan has a five-year final maturity. However, specific events, including project performance, may trigger earlier repayment. The loan is secured by a leasehold mortgage on the project's real property assets, a pledge of all other collateral of the Big Sky wind project, as well as a cash reserve account into which one-third of distributable cash flow, if any, of the Big Sky wind project is to be deposited on a monthly basis. Notice to proceed on construction of the Big Sky wind project with Suzlon S-88 wind turbines was issued in October2009. Acquisition of Cedro Hill Wind Project In October 2009, EME completed the acquisition of a 150 MW wind development project in Texas which has a 20-year power purchase agreement with the City of San Antonio (referred to as the Cedro Hill wind project). EME plans to install 100turbines (150 MW) to be purchased under its turbine supply agreement with General Electric Company to construct this project, which is scheduled for completion during the fourth quarter of 2010. In September 2009, EME made additional deposits of $174million to General Electric Company. EME plans to obtain project financing for this project prior to completion of construction.

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	9 Months Ended Sep. 30, 2009	Nov. 03, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	EDISON INTERNATIONAL
Entity Central Index Key	0000827052
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			16.7
Entity Common Stock, Shares Outstanding		325,811,206