Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | EDISON INTERNATIONAL | |
Entity Central Index Key | 827,052 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 325,811,206 | |
Southern California Edison | ||
Entity Information [Line Items] | ||
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON CO | |
Entity Central Index Key | 92,103 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 434,888,104 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Total operating revenue | $ 2,440 | $ 2,512 |
Purchased power and fuel | 794 | 786 |
Operation and maintenance | 629 | 636 |
Depreciation, decommissioning and amortization | 477 | 463 |
Property and other taxes | 92 | 89 |
Total operating expenses | 1,992 | 1,974 |
Operating income | 448 | 538 |
Interest and other income | 31 | 39 |
Interest expense | (140) | (143) |
Other expenses | (6) | (10) |
Income from continuing operations before income taxes | 333 | 424 |
Income tax expense | 38 | 106 |
Income from continuing operations | 295 | 318 |
Income from discontinued operations, net of tax | 1 | 0 |
Net income | 296 | 318 |
Preferred and preference stock dividend requirements of SCE | 30 | 28 |
Other noncontrolling interests | (5) | (9) |
Net income attributable to common shareholders | 271 | 299 |
Amounts attributable to Edison International common shareholders: | ||
Income from continuing operations, net of tax | 270 | 299 |
Income from discontinued operations, net of tax | 1 | 0 |
Net income attributable to common shareholders | $ 271 | $ 299 |
Basic earnings per common share attributable to Edison International common shareholders: | ||
Weighted-average shares of common stock outstanding (in shares) | 326 | 326 |
Continuing operations (in dollars per share) | $ 0.83 | $ 0.92 |
Total (in dollars per share) | $ 0.83 | $ 0.92 |
Diluted earnings per common share attributable to Edison International common shareholders: | ||
Weighted-average shares of common stock outstanding, including effect of dilutive securities (in shares) | 328 | 329 |
Continuing operations (in dollars per share) | $ 0.82 | $ 0.91 |
Total (in dollars per share) | 0.82 | 0.91 |
Dividends declared per common share (in dollars per share) | $ 0.4800 | $ 0.4175 |
Southern California Edison | ||
Total operating revenue | $ 2,435 | $ 2,508 |
Purchased power and fuel | 794 | 786 |
Operation and maintenance | 603 | 621 |
Depreciation, decommissioning and amortization | 475 | 463 |
Property and other taxes | 91 | 88 |
Total operating expenses | 1,963 | 1,958 |
Operating income | 472 | 550 |
Interest and other income | 31 | 33 |
Interest expense | (131) | (136) |
Other expenses | (5) | (7) |
Income from continuing operations before income taxes | 367 | 440 |
Income tax expense | 50 | 107 |
Income from continuing operations | 317 | 333 |
Net income | 317 | 333 |
Preferred and preference stock dividend requirements of SCE | 30 | 28 |
Net income attributable to common shareholders | 287 | 305 |
Amounts attributable to Edison International common shareholders: | ||
Net income attributable to common shareholders | $ 287 | $ 305 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 296 | $ 318 |
Pension and postretirement benefits other than pensions: | ||
Net gain (loss) arising during the period plus amortization included in net income | 2 | (1) |
Other comprehensive income (loss), net of tax | 2 | (1) |
Comprehensive income | 298 | 317 |
Less: Comprehensive income attributable to noncontrolling interests | 25 | 19 |
Comprehensive income attributable to Edison International | 273 | 298 |
Southern California Edison | ||
Net income | 317 | 333 |
Pension and postretirement benefits other than pensions: | ||
Net gain (loss) arising during the period plus amortization included in net income | 1 | 1 |
Other comprehensive income (loss), net of tax | 1 | 1 |
Comprehensive income | $ 318 | $ 334 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 137 | $ 161 |
Receivables, less allowances for uncollectible accounts | 649 | 771 |
Accrued unbilled revenue | 512 | 565 |
Inventory | 268 | 267 |
Derivative assets | 65 | 79 |
Regulatory assets | 538 | 560 |
Other current assets | 258 | 251 |
Total current assets | 2,427 | 2,654 |
Nuclear decommissioning trusts | 4,290 | 4,331 |
Other investments | 208 | 203 |
Total investments | 4,498 | 4,534 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 35,323 | 34,945 |
Nonutility property, plant and equipment, less accumulated depreciation | 141 | 140 |
Total property, plant and equipment | 35,464 | 35,085 |
Derivative assets | 78 | 84 |
Regulatory assets | 7,628 | 7,512 |
Other long-term assets | 364 | 360 |
Total long-term assets | 8,070 | 7,956 |
Total assets | 50,459 | 50,229 |
LIABILITIES AND EQUITY | ||
Short-term debt | 363 | 695 |
Current portion of long-term debt | 295 | 295 |
Accounts payable | 938 | 1,310 |
Accrued taxes | 139 | 72 |
Customer deposits | 253 | 242 |
Derivative liabilities | 232 | 218 |
Regulatory liabilities | 1,157 | 1,128 |
Other current liabilities | 856 | 967 |
Total current liabilities | 4,233 | 4,927 |
Long-term debt | 11,243 | 10,883 |
Deferred income taxes and credits | 7,699 | 7,480 |
Derivative liabilities | 1,136 | 1,100 |
Pensions and benefits | 1,771 | 1,759 |
Asset retirement obligations | 2,597 | 2,764 |
Regulatory liabilities | 5,920 | 5,676 |
Other deferred credits and other long-term liabilities | 2,225 | 2,246 |
Total deferred credits and other liabilities | 21,348 | 21,025 |
Total liabilities | $ 36,824 | $ 36,835 |
Commitments and contingencies (Note 11) | ||
Redeemable noncontrolling interest | $ 4 | $ 6 |
Common stock, no par value | 2,491 | 2,484 |
Accumulated other comprehensive loss | (54) | (56) |
Retained earnings | 9,002 | 8,940 |
Total common shareholders' equity | 11,439 | 11,368 |
Noncontrolling interests – preferred and preference stock of SCE | 2,192 | 2,020 |
Total equity | 13,631 | 13,388 |
Total liabilities and equity | 50,459 | 50,229 |
Southern California Edison | ||
Assets [Abstract] | ||
Cash and cash equivalents | 21 | 26 |
Receivables, less allowances for uncollectible accounts | 624 | 724 |
Accrued unbilled revenue | 511 | 564 |
Inventory | 251 | 256 |
Derivative assets | 65 | 79 |
Regulatory assets | 538 | 560 |
Other current assets | 233 | 234 |
Total current assets | 2,243 | 2,443 |
Nuclear decommissioning trusts | 4,290 | 4,331 |
Other investments | 173 | 168 |
Total investments | 4,463 | 4,499 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 35,323 | 34,945 |
Nonutility property, plant and equipment, less accumulated depreciation | 73 | 73 |
Total property, plant and equipment | 35,396 | 35,018 |
Derivative assets | 78 | 84 |
Regulatory assets | 7,628 | 7,512 |
Other long-term assets | 239 | 239 |
Total long-term assets | 7,945 | 7,835 |
Total assets | 50,047 | 49,795 |
LIABILITIES AND EQUITY | ||
Short-term debt | 101 | 49 |
Current portion of long-term debt | 79 | 79 |
Accounts payable | 935 | 1,299 |
Accrued taxes | 105 | 46 |
Customer deposits | 253 | 242 |
Derivative liabilities | 232 | 218 |
Regulatory liabilities | 1,157 | 1,128 |
Other current liabilities | 662 | 760 |
Total current liabilities | 3,524 | 3,821 |
Long-term debt | 10,422 | 10,460 |
Deferred income taxes and credits | 9,297 | 9,073 |
Derivative liabilities | 1,134 | 1,100 |
Pensions and benefits | 1,292 | 1,284 |
Asset retirement obligations | 2,595 | 2,762 |
Regulatory liabilities | 5,920 | 5,676 |
Other deferred credits and other long-term liabilities | 1,934 | 1,947 |
Total deferred credits and other liabilities | 22,172 | 21,842 |
Total liabilities | $ 36,118 | $ 36,123 |
Commitments and contingencies (Note 11) | ||
Common stock, no par value | $ 2,168 | $ 2,168 |
Additional paid-in capital | 653 | 652 |
Accumulated other comprehensive loss | (21) | (22) |
Retained earnings | 8,884 | 8,804 |
Total common shareholders' equity | 11,684 | 11,602 |
Noncontrolling interests – preferred and preference stock of SCE | 2,245 | 2,070 |
Total equity | 13,929 | 13,672 |
Total liabilities and equity | $ 50,047 | $ 49,795 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables, allowances for uncollectible accounts (in dollars) | $ 59 | $ 62 |
Utility property, plant and equipment, accumulated depreciation (in dollars) | 8,751 | 8,548 |
Nonutility property, plant and equipment, accumulated depreciation (in dollars) | $ 88 | $ 85 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 325,811,206 | 325,811,206 |
Common stock, shares outstanding | 325,811,206 | 325,811,206 |
Southern California Edison | ||
Receivables, allowances for uncollectible accounts (in dollars) | $ 59 | $ 62 |
Utility property, plant and equipment, accumulated depreciation (in dollars) | 8,751 | 8,548 |
Nonutility property, plant and equipment, accumulated depreciation (in dollars) | $ 83 | $ 81 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 560,000,000 | 560,000,000 |
Common stock, shares issued | 434,888,104 | 434,888,104 |
Common stock, shares outstanding | 434,888,104 | 434,888,104 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 296 | $ 318 |
Less: Income from discontinued operations | 1 | 0 |
Income from continuing operations | 295 | 318 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation, decommissioning and amortization | 499 | 485 |
Allowance for equity during construction | (22) | (21) |
Deferred income taxes and investment tax credits | 35 | 72 |
Other | 5 | 5 |
Nuclear decommissioning trusts | (106) | 29 |
Changes in operating assets and liabilities: | ||
Receivables | 117 | 31 |
Inventory | (1) | (10) |
Accounts payable | (184) | 63 |
Prepaid and accrued taxes | 66 | 38 |
Other current assets and liabilities | (43) | (229) |
Derivative assets and liabilities, net | 5 | (10) |
Regulatory assets and liabilities, net | 119 | 193 |
Other noncurrent assets and liabilities | 68 | 0 |
Net cash provided by operating activities | 853 | 964 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 397 | 1,287 |
Long-term debt matured | (40) | (419) |
Preference stock issued, net | 294 | 0 |
Preference stock redeemed | (125) | 0 |
Short-term debt financing, net | (332) | (355) |
Dividends to noncontrolling interests | (35) | (34) |
Dividends paid | (156) | (136) |
Other | (46) | (30) |
Net cash (used in) provided by financing activities | (43) | 313 |
Cash flows from investing activities: | ||
Capital expenditures | (951) | (1,268) |
Proceeds from sale of nuclear decommissioning trust investments | 793 | 1,026 |
Purchases of nuclear decommissioning trust investments | (687) | (1,062) |
Other | 11 | 10 |
Net cash used in investing activities | (834) | (1,294) |
Net decrease in cash and cash equivalents | (24) | (17) |
Cash and cash equivalents at beginning of period | 161 | 132 |
Cash and cash equivalents at end of period | 137 | 115 |
Southern California Edison | ||
Cash flows from operating activities: | ||
Net income | 317 | 333 |
Income from continuing operations | 317 | 333 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation, decommissioning and amortization | 496 | 483 |
Allowance for equity during construction | (22) | (21) |
Deferred income taxes and investment tax credits | 60 | 67 |
Other | 3 | 3 |
Nuclear decommissioning trusts | (106) | 29 |
Changes in operating assets and liabilities: | ||
Receivables | 100 | 18 |
Inventory | 5 | (7) |
Accounts payable | (175) | 52 |
Prepaid and accrued taxes | 60 | 43 |
Other current assets and liabilities | (25) | (205) |
Derivative assets and liabilities, net | 5 | (10) |
Regulatory assets and liabilities, net | 119 | 193 |
Other noncurrent assets and liabilities | 45 | (12) |
Net cash provided by operating activities | 882 | 966 |
Cash flows from financing activities: | ||
Long-term debt issued, net of discount and issuance costs | 0 | 1,287 |
Long-term debt matured | (40) | (419) |
Preference stock issued, net | 294 | 0 |
Preference stock redeemed | (125) | 0 |
Short-term debt financing, net | 52 | (370) |
Dividends paid | (205) | (181) |
Other | (31) | 3 |
Net cash (used in) provided by financing activities | (55) | 320 |
Cash flows from investing activities: | ||
Capital expenditures | (950) | (1,266) |
Proceeds from sale of nuclear decommissioning trust investments | 793 | 1,026 |
Purchases of nuclear decommissioning trust investments | (687) | (1,062) |
Other | 12 | 14 |
Net cash used in investing activities | (832) | (1,288) |
Net decrease in cash and cash equivalents | (5) | (2) |
Cash and cash equivalents at beginning of period | 26 | 38 |
Cash and cash equivalents at end of period | $ 21 | $ 36 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Premiums Discounts and Issuance Costs of Long Term Debt | $ 3 | $ 13 |
Southern California Edison | ||
Premiums Discounts and Issuance Costs of Long Term Debt | $ 0 | $ 13 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of Edison Energy Group, a company that holds interests in subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in competitive transmission opportunities, and exploring distributed water treatment and recycling. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's significant accounting policies were described in Note 1 of "Notes to Consolidated Financial Statements" included in the 2015 Form 10-K. This quarterly report should be read in conjunction with the financial statements and notes included in the 2015 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the operating results for the full year. The December 31, 2015 financial statement 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 amounts have been reclassified for consistency with the current period presentation. Cash Equivalents Cash equivalents included investments in money market funds. Generally, the carrying value of cash equivalents equals the fair value, as these investments have original maturities of three months or less. The cash equivalents were as follows: Edison International SCE (in millions) March 31, December 31, 2015 March 31, December 31, 2015 Money market funds $ 36 $ 37 $ 7 $ 8 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE (in millions) March 31, December 31, 2015 March 31, December 31, 2015 Book balances reclassified to accounts payable $ 102 $ 162 $ 102 $ 158 Inventory Inventory is primarily composed of materials, supplies and spare parts, and stated at the lower of cost or market, cost being determined by the average cost method. Revenue Recognition Operating revenue is recognized when electricity is delivered and includes amounts for services rendered but unbilled at the end of each reporting period. During the first quarter of 2015, SCE recognized revenue from CPUC activities largely based on 2014 authorized base revenue requirements included in customer rates. In the fourth quarter of 2015, SCE implemented its 2015 GRC decision which allowed SCE to recover its revenue requirement retroactive to January 1, 2015. Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. EPS attributable to Edison International common shareholders was computed as follows: Three months ended March 31, (in millions, except per-share amounts) 2016 2015 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 270 $ 299 Participating securities dividends — — Income from continuing operations available to common shareholders $ 270 $ 299 Weighted average common shares outstanding 326 326 Basic earnings per share – continuing operations $ 0.83 $ 0.92 Diluted earnings per share – continuing operations: Income from continuing operations available to common shareholders $ 270 $ 299 Income impact of assumed conversions — — Income from continuing operations available to common shareholders and assumed conversions $ 270 $ 299 Weighted average common shares outstanding 326 326 Incremental shares from assumed conversions 2 3 Adjusted weighted average shares – diluted 328 329 Diluted earnings per share – continuing operations $ 0.82 $ 0.91 In addition to the participating securities discussed above, Edison International also may award stock options which are payable in common shares and are included in the diluted earnings per share calculation. Stock option awards to purchase 2,023,787 and 79,394 shares of common stock for the three months ended March 31, 2016 and 2015 , respectively, were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of the awards was greater than the average market price of the common shares during the respective periods and, therefore, the effect would have been antidilutive. New Accounting Guidance Accounting Guidance Adopted On April 7, 2015, the FASB issued an accounting standards update that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. Previously, accounting guidance required these costs to be presented as a deferred charge asset. Edison International and SCE adopted this guidance in the first quarter of 2016. At March 31, 2016, the amount of debt issuance costs that are reflected as a deduction of "Long-term debt" was $76 million for SCE and $83 million for Edison International. At December 31, 2015 the amount of debt issuance costs that have been reclassified from "Other long-term assets" to a deduction of "Long-term debt" was $77 million for SCE and $81 million for Edison International. On April 15, 2015, the FASB issued an accounting standards update on fees paid by a customer for software licenses. This new standard provides guidance about whether a cloud computing arrangement includes a software license which may be capitalized in certain circumstances. If a cloud computing arrangement does not include a software license, then the arrangement should be accounted for as a service contract. Edison International and SCE adopted this guidance prospectively, effective January 1, 2016. The adoption of this standard did not have a material impact on Edison International's and SCE's consolidated financial statements. Accounting Guidance Not Yet Adopted On May 28, 2014, the FASB issued an accounting standards update on revenue recognition including enhanced disclosures and further amended the standard in 2016. Under the new standard, revenue is recognized when (or as) a good or service is transferred to the customer and the customer obtains control of the good or service. On July 9, 2015, the FASB approved a one-year deferral, updating the effective date to January 1, 2018. Edison International and SCE are currently evaluating this new guidance and cannot determine the impact of this standard at this time. Edison International and SCE anticipates adopting the standard using the modified retrospective application which means that we would recognize the cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings in 2018. On January 5, 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The amendments require equity investments (excluding those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value recognized in net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. Edison International and SCE will adopt this guidance effective January 1, 2018. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's consolidated financial statements. On February 25, 2016, the FASB issued an accounting standards update related to lease accounting including enhanced disclosures. Under the new standard, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. Lessees will classify leases with a term of more than one year as either operating or finance leases and will need to recognize a right-of-use asset and a lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. This guidance is effective January 1, 2019 but early adoption is permitted. Edison International and SCE are currently evaluating this new guidance and cannot determine the impact of this standard at this time. On March 30, 2016, the FASB issued an accounting standards update to simplify the accounting for share-based payments. Under this new guidance, the tax effects related to share based payments will be recorded through the income statement. Currently, tax benefits in excess of compensation cost ("windfalls") are recorded in equity, and tax deficiencies ("shortfalls") are recorded in equity to the extent of previous windfalls, and then to the income statement. This guidance is effective January 1, 2017 but early adoption is permitted. The new standard also revised reporting on the statement of cash flows. Edison International and SCE are currently evaluating this new guidance. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 3 Months Ended |
Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |
Consolidated Statements of Changes in Equity | Consolidated Statements of Changes in Equity The following table provides Edison International's changes in equity for the three months ended March 31, 2016 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2015 $ 2,484 $ (56 ) $ 8,940 $ 11,368 $ 2,020 $ 13,388 Net income — — 271 271 30 301 Other comprehensive income — 2 — 2 — 2 Common stock dividends declared ($0.48 per share) — — (156 ) (156 ) — (156 ) Dividends to noncontrolling interests — — — — (30 ) (30 ) Stock-based compensation 1 — (50 ) (49 ) — (49 ) Non-cash stock-based compensation 6 — — 6 — 6 Issuance of preference stock — — — — 294 294 Redemption of preference stock — — (3 ) (3 ) (122 ) (125 ) Balance at March 31, 2016 $ 2,491 $ (54 ) $ 9,002 $ 11,439 $ 2,192 $ 13,631 The following table provides Edison International's changes in equity for the three months ended March 31, 2015 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2014 $ 2,445 $ (58 ) $ 8,573 $ 10,960 $ 2,022 $ 12,982 Net income — — 299 299 28 327 Other comprehensive loss — (1 ) — (1 ) — (1 ) Common stock dividends declared ($0.4175 per share) — — (136 ) (136 ) — (136 ) Dividends to noncontrolling interests — — — — (28 ) (28 ) Stock-based compensation 9 — (61 ) (52 ) — (52 ) Non-cash stock-based compensation 6 — — 6 — 6 Balance at March 31, 2015 $ 2,460 $ (59 ) $ 8,675 $ 11,076 $ 2,022 $ 13,098 The following table provides SCE's changes in equity for the three months ended March 31, 2016 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2015 $ 2,168 $ 652 $ (22 ) $ 8,804 $ 2,070 $ 13,672 Net income — — — 317 — 317 Other comprehensive income — — 1 — — 1 Dividends declared on common stock — — — (170 ) — (170 ) Dividends declared on preferred and preference stock — — — (30 ) — (30 ) Stock-based compensation — 1 — (34 ) — (33 ) Non-cash stock-based compensation — 3 — — — 3 Issuance of preference stock — (6 ) — — 300 294 Redemption of preference stock — 3 — (3 ) (125 ) (125 ) Balance at March 31, 2016 $ 2,168 $ 653 $ (21 ) $ 8,884 $ 2,245 $ 13,929 The following table provides SCE's changes in equity for the three months ended March 31, 2015 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2014 $ 2,168 $ 618 $ (28 ) $ 8,454 $ 2,070 $ 13,282 Net income — — — 333 — 333 Other comprehensive income — — 1 — — 1 Dividends declared on common stock — — — (147 ) — (147 ) Dividends declared on preferred and preference stock — — — (28 ) — (28 ) Stock-based compensation — 9 — (22 ) — (13 ) Non-cash stock-based compensation — 4 — — — 4 Balance at March 31, 2015 $ 2,168 $ 631 $ (27 ) $ 8,590 $ 2,070 $ 13,432 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entities Disclosure [Abstract] | |
Variable Interest Entities | Variable Interest Entities A VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. A subsidiary of Edison International is the primary beneficiary of an entity that owns rooftop solar projects. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are not Consolidated Power Purchase Contracts SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities ("QFs") that contain variable pricing provisions based on the price of natural gas. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants. As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to its involvement with VIEs result from amounts due under the PPAs or the fair value of those derivative contracts. 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 11 of the 2015 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 4,383 MW and 4,125 MW at March 31, 2016 and 2015 , respectively, and the amounts that SCE paid to these projects were $127 million and $103 million for the three months ended March 31, 2016 and 2015 , respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust I, Trust II, Trust III, Trust IV, and Trust V were formed in 2012, 2013, 2014, 2015 and 2016, respectively, for the exclusive purpose of issuing the 5.625% , 5.10% , 5.75% , 5.375% and 5.45% 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 I, Trust II, Trust III, Trust IV and Trust V issued to the public trust securities in the face amounts of $475 million , $400 million , $275 million , $325 million , and $300 million respectively, (cumulative, liquidation amounts of $25 per share) and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series F, Series G, Series H, Series J, and Series K Preference Stock issued by SCE in the principal amounts of $475 million , $400 million , $275 million , $325 million and $300 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series F, Series G, Series H, Series J and Series K Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F, Series G, Series H, Series J or Series K Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust (see Note 12 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities when and if 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 I, Trust II, Trust III and Trust IV balance sheets as of March 31, 2016 and December 31, 2015 , consisted of investments of $475 million , $400 million , $275 million and $325 million in the Series F, Series G, Series H and Series J Preference Stock, respectively, $475 million , $400 million , $275 million and $325 million of trust securities, respectively, and $10,000 each of common stock. The Trust V balance sheet as of March 31, 2016 consisted of investments of $300 million in the Series K Preference Stock, $300 million of trust securities, and $10,000 of common stock. The following table provides a summary of the trusts' income statements: Three months ended March 31, (in millions) Trust I Trust II Trust III Trust IV Trust V 2016 Dividend income $ 7 $ 5 $ 4 $ 4 $ 1 Dividend distributions 7 5 4 4 1 2015 Dividend income $ 7 $ 5 $ 4 * * Dividend distributions 7 5 4 * * * Not applicable. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of March 31, 2016 and December 31, 2015 , nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds and money market funds. Level 2 – Edison International and SCE's Level 2 assets and liabilities include fixed income securities primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from exchanges (New York Mercantile Exchange and Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes over-the-counter options, tolling arrangements and derivative contracts that trade infrequently such as congestion revenue rights ("CRRs") and long-term power agreements. 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. Changes in fair value are based on changes to forward market prices, including extrapolation of short-term observable inputs into forecasted prices for illiquid forward periods. 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 fair value 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, 2016 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 143 $ — $ 143 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,464 — — — 1,464 Fixed Income 3 907 1,810 — — 2,717 Short-term investments, primarily cash equivalents 69 48 — — 117 Subtotal of nuclear decommissioning trusts 4 2,440 1,858 — — 4,298 Total assets 2,468 1,858 143 — 4,469 Liabilities at fair value Derivative contracts — 21 1,356 (11 ) 1,366 Total liabilities — 21 1,356 (11 ) 1,366 Net assets (liabilities) $ 2,468 $ 1,837 $ (1,213 ) $ 11 $ 3,103 December 31, 2015 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 163 $ — $ 163 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,460 — — — 1,460 Fixed Income 3 947 1,776 — — 2,723 Short-term investments, primarily cash equivalents 91 81 — — 172 Subtotal of nuclear decommissioning trusts 4 2,498 1,857 — — 4,355 Total assets 2,526 1,857 163 — 4,546 Liabilities at fair value Derivative contracts — 22 1,311 (15 ) 1,318 Total liabilities — 22 1,311 (15 ) 1,318 Net assets (liabilities) $ 2,526 $ 1,835 $ (1,148 ) $ 15 $ 3,228 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. 2 Approximately 70% of SCE's equity investments were located in the United States at both March 31, 2016 and December 31, 2015 . 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $101 million and $111 million at March 31, 2016 and December 31, 2015 , respectively. 4 Excludes net payables of $8 million and net payables of $24 million at March 31, 2016 and December 31, 2015 , which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. Edison International Parent and Other Edison International Parent and Other assets measured at fair value consisted of money market funds of $ 30 million and $29 million at March 31, 2016 and December 31, 2015 , respectively, classified as Level 1. SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended March 31, (in millions) 2016 2015 Fair value of net liabilities at beginning of period $ (1,148 ) $ (902 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (65 ) (74 ) Fair value of net liabilities at end of period $ (1,213 ) $ (976 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (84 ) $ (96 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no significant transfers between any levels during 2016 and 2015 . Valuation Techniques Used to Determine Fair Value The process of determining fair value is the responsibility of SCE's risk management department, which reports to SCE's chief financial officer. This department obtains observable and unobservable inputs through broker quotes, exchanges and internal valuation techniques that use both standard and proprietary models to determine fair value. Each reporting period, the risk and finance departments collaborate to determine the appropriate fair value methodologies and classifications for each derivative. Inputs are validated for reasonableness by comparison against prior prices, other broker quotes and volatility fluctuation thresholds. Inputs used and valuations are reviewed period-over-period and compared with market conditions to determine reasonableness. The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights March 31, 2016 $ 136 $ — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 December 31, 2015 152 — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 Tolling March 31, 2016 7 1,329 Option model Volatility of gas prices 16% - 46% (30%) Volatility of power prices 26% - 86% (40%) Power prices $17.67 - $47.29 ($33.00) December 31, 2015 10 1,297 Option model Volatility of gas prices 15% - 58% (20%) Volatility of power prices 26% - 38% (30%) Power prices $24.15 - $46.93 ($34.80) 1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. Level 3 Fair Value Sensitivity Congestion Revenue Rights For CRRs, where SCE is the buyer, generally increases (decreases) in forecasted load in isolation would result in increases (decreases) to the fair value. In general, an increase (decrease) in electricity and gas prices at illiquid locations tends to result in increases (decreases) to fair value; however, changes in electricity and gas prices in opposite directions may have varying results on fair value. Tolling Arrangements The fair values of SCE's tolling arrangements contain intrinsic value and time value. Intrinsic value is the difference between the market price and strike price of the underlying commodity. Time value is made up of several components, including volatility, time to expiration, and interest rates. The option model for tolling arrangements reflects plant specific information such as operating and start-up costs. For tolling arrangements where SCE is the buyer, increases in volatility of the underlying commodity prices would result in increases to fair value as it represents greater price movement risk. As power and gas prices increase, the fair value of tolling arrangements tends to increase. The valuation of tolling arrangements is also impacted by the correlation between gas and power prices. As the correlation increases, the fair value of tolling arrangements tends to decline. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. The fair value of these financial instruments is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes, issuer spreads, bids, offers and relevant credit information. Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: March 31, 2016 December 31, 2015 (in millions) Carrying Value Fair Value Carrying Value Fair Value SCE $ 10,501 $ 12,045 $ 10,616 $ 11,592 Edison International 11,538 13,109 11,259 12,252 The fair value of Edison International and SCE's short-term and long-term debt is classified as Level 2 and is based on evaluated prices that reflect significant observable market information such as reported trades, actual trade information of similar securities, benchmark yields, broker/dealer quotes of new issue prices and relevant credit information. The carrying value of Edison International's and SCE's trade receivables and payables, other investments, and short-term debt approximates fair value. |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt In March 2016, Edison International issued $400 million of 2.95% senior notes due in 2023. The proceeds from these bonds were used to repay commercial paper borrowings and for general corporate purposes. Credit Agreements and Short-Term Debt SCE and Edison International Parent have multi-year revolving credit facilities of $2.75 billion and $1.25 billion , respectively, with both maturing in July 2020. SCE's credit facility is generally used to support commercial paper borrowings and letters of credit issued for procurement-related collateral requirements, balancing account undercollections and for general corporate purposes, including working capital requirements to support operations and capital expenditures. Edison International Parent's credit facility is used to support commercial paper borrowings and for general corporate purposes. At March 31, 2016 , SCE's outstanding commercial paper was $101 million at a weighted-average interest rate of 0.45% . At March 31, 2016 , letters of credit issued under SCE's credit facility aggregated $94 million and are scheduled to expire in twelve months or less. At December 31, 2015 , the outstanding commercial paper was $ 49 million at a weighted-average interest rate of 0.51% . At March 31, 2016 , Edison International Parent's outstanding commercial paper was $262 million at a weighted-average interest rate of 0.69% . At December 31, 2015 , the outstanding commercial paper was $ 646 million at a weighted-average interest rate of 0.78% . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and power purchase agreements. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, QF contracts where pricing is based on a monthly natural gas index and power purchase agreements in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements. Credit and Default Risk Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments. Certain power contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to setoff 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 contracts contain a provision that requires SCE to maintain an investment grade rating from each of the major credit rating agencies, referred to as a credit-risk-related contingent feature. If SCE's credit rating were to fall below investment grade, SCE may be required to post additional collateral to cover derivative liabilities and the related outstanding payables. The net fair value of all derivative liabilities with these credit-risk-related contingent features was $50 million and $38 million as of March 31, 2016 and December 31, 2015 , respectively. SCE has posted $12 million collateral at March 31, 2016 and no collateral at December 31, 2015 to its counterparties at the respective dates for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2016 , SCE would be required to post $31 million of additional collateral of which $3 million is related to outstanding payables that are net of collateral already posted. Fair Value of Derivative Instruments SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets when subject to master netting agreements or similar agreements. Derivative positions are 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, 2016 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 66 $ 78 $ 144 $ 244 $ 1,134 $ 1,378 $ 1,234 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 1 — — — (11 ) — (11 ) (11 ) Net amounts presented in the consolidated balance sheets $ 65 $ 78 $ 143 $ 232 $ 1,134 $ 1,366 $ 1,223 December 31, 2015 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 81 $ 84 $ 165 $ 235 $ 1,100 $ 1,335 $ 1,170 Gross amounts offset in the consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (15 ) — (15 ) (15 ) Net amounts presented in the consolidated balance sheets $ 79 $ 84 $ 163 $ 218 $ 1,100 $ 1,318 $ 1,155 1 In addition, at March 31, 2016 and December 31, 2015 , SCE had posted $25 million and $31 million , respectively, of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. Income Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchase power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are recorded in cash flows from operating activities in the consolidated statements of cash flows. The following table summarizes the components of SCE's economic hedging activity: Three months ended March 31, (in millions) 2016 2015 Realized losses $ (27 ) $ (36 ) Unrealized losses (64 ) (69 ) Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Commodity Unit of Measure March 31, 2016 December 31, 2015 Electricity options, swaps and forwards GWh 4,842 6,221 Natural gas options, swaps and forwards Bcf 17 32 Congestion revenue rights GWh 96,182 109,740 Tolling arrangements GWh 68,331 70,663 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Income from continuing operations before income taxes $ 333 $ 424 $ 367 $ 440 Provision for income tax at federal statutory rate of 35% 117 148 128 154 Increase in income tax from: State tax, net of federal benefit 6 11 9 14 Property-related (79 ) (60 ) (79 ) (60 ) Change related to uncertain tax positions (1 ) 15 (1 ) 10 Other (5 ) (8 ) (7 ) (11 ) Total income tax expense from continuing operations $ 38 $ 106 $ 50 $ 107 Effective tax rate 11.4 % 25.0 % 13.6 % 24.3 % 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. Tax Disputes Tax Years 2007 – 2009 Edison International received a Revenue Agent Report from the IRS in February 2013 which included a proposed adjustment to disallow deductions related to certain capitalized overhead costs. Edison International has tentatively reached an agreement with the IRS regarding this matter, which if finalized, would result in a federal tax liability of approximately $64 million , including interest through March 31, 2016 . Tax Years 2010 – 2012 The IRS Revenue Agent Report was received in June 2015. As a result, Edison International and SCE have re-measured their Federal and State uncertain tax positions and recorded $94 million and $100 million , respectively, of income tax benefits including interest and penalty during the second quarter of 2015. The Revenue Agent Report included a proposed adjustment to disallow deductions related to certain capitalized overhead expenses. Edison International has tentatively reached an agreement with IRS regarding this matter, which if finalized, would result in a federal tax liability of approximately $9 million , including interest through March 31, 2016 . Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2007 – 2015 and 2003 – 2015, respectively. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Pension Plans Edison International made contributions of $5 million during the three months ended March 31, 2016, which includes contributions of $1 million by SCE. Edison International expects to make contributions of $115 million during the remainder of 2016 , which includes $94 million from SCE. Annual contributions made by SCE to most of SCE's pension plans are anticipated to be recovered through CPUC-approved regulatory mechanisms. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense. Pension expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Service cost $ 39 $ 35 $ 38 $ 35 Interest cost 44 41 41 38 Expected return on plan assets (56 ) (57 ) (53 ) (53 ) Amortization of prior service cost 1 1 1 1 Amortization of net loss 1 9 9 8 7 Expense under accounting standards $ 37 $ 29 $ 35 $ 28 Regulatory adjustment (9 ) (1 ) (9 ) (1 ) Total expense recognized $ 28 $ 28 $ 26 $ 27 1 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $3 million and $2 million , respectively, for the three months ended March 31, 2016 , and $3 million and $2 million , respectively, for the three months ended March 31, 2015 . Postretirement Benefits Other Than Pensions Edison International made contributions of $7 million during the three months ended March 31, 2016 and expects to make contributions of $26 million during the remainder of 2016 , substantially all of which are expected to be made by SCE. Annual contributions made to SCE plans are anticipated to be recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the total annual expense for these plans, pending the outcome of the 2015 GRC decision. Benefits under these plans, with some exceptions, are generally unvested and subject to change. Under the terms of the Edison International Health and Welfare Plan ("PBOP Plan") each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of all PBOP benefits with respect to its employees and former employees. A participating employer may terminate the PBOP benefits with respect to its employees and former employees, as may SCE (as Plan sponsor), and, accordingly, the participants' PBOP benefits are not vested benefits. PBOP expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Service cost $ 10 $ 12 $ 10 $ 12 Interest cost 26 29 26 28 Expected return on plan assets (28 ) (28 ) (28 ) (28 ) Amortization of prior service cost (1 ) (3 ) (1 ) (3 ) Amortization of net loss — 6 — 6 Total expense $ 7 $ 16 $ 7 $ 15 Workforce Reductions SCE continues to focus on productivity improvements to mitigate rate pressure from its capital program, optimize its cost structure and improve operational efficiency, which is expected to result in further workforce reductions through 2016. During the three months ended March 31, 2016, SCE increased the estimated impact for approved workforce reductions. The following table provides a summary of changes in the accrued severance liability associated with these reductions: (in millions) Balance at January 1, 2016 $ 22 Additions 5 Payments (15 ) Balance at March 31, 2016 $ 12 The liability presented in the table above is reflected in "Other current liabilities" on the consolidated balance sheets. The severance costs are included in "Operation and maintenance" on the consolidated income statements. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Regulated Entity, Other Assets, Noncurrent [Abstract] | |
Investments | Investments Nuclear Decommissioning Trusts Future decommissioning costs related to SCE's nuclear assets are expected to be funded from independent decommissioning trusts. The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments): Longest Maturity Dates Amortized Cost Fair Value (in millions) March 31, December 31, March 31, December 31, 2015 Stocks — $ 311 $ 304 $ 1,464 $ 1,460 Municipal bonds 2054 736 691 894 840 U.S. government and agency securities 2046 1,002 1,070 1,092 1,128 Corporate bonds 2057 662 708 731 755 Short-term investments and receivables/payables 1 One-year 106 144 109 148 Total $ 2,817 $ 2,917 $ 4,290 $ 4,331 1 Short-term investments include $8 million and $81 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 4, 2016 and January 5, 2016 as of March 31, 2016 and December 31, 2015 , respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $1.5 billion and $1.4 billion at March 31, 2016 and December 31, 2015 , respectively. The following table sets forth a summary of changes in the fair value of the trust: Three months ended March 31, (in millions) 2016 2015 Balance at beginning of period $ 4,331 $ 4,799 Gross realized gains 17 27 Gross realized losses (3 ) (2 ) Unrealized gains, net 59 44 Other-than-temporary impairments (7 ) (4 ) Interest and dividends 29 28 Contributions — 7 Income taxes (18 ) — Decommissioning disbursements (116 ) — Administrative expenses and other (2 ) (3 ) Balance at end of period $ 4,290 $ 4,896 Trust assets are used to pay income taxes as the Trust files separate income taxes returns from SCE. Deferred income taxes related to unrealized gains at March 31, 2016 were $357 million . Accordingly, the fair value of Trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.9 billion at March 31, 2016 . Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 329 $ 382 Energy derivatives 182 159 Other 27 19 Total current 538 560 Long-term: Deferred income taxes, net 3,920 3,757 Pensions and other postretirement benefits 842 849 Energy derivatives 1,066 1,027 Unamortized investments, net 169 182 San Onofre 982 1,043 Unamortized loss on reacquired debt 197 201 Regulatory balancing accounts 39 36 Environmental remediation 131 129 Other 282 288 Total long-term 7,628 7,512 Total regulatory assets $ 8,166 $ 8,072 Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 1,135 $ 1,106 Other 22 22 Total current 1,157 1,128 Long-term: Costs of removal 2,822 2,781 Recoveries in excess of ARO liabilities 1 1,690 1,502 Regulatory balancing accounts 1,352 1,314 Other 56 79 Total long-term 5,920 5,676 Total regulatory liabilities $ 7,077 $ 6,804 1 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9. Net Regulatory Balancing Accounts The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) March 31, December 31, Asset (liability) Energy resource recovery account $ (364 ) $ (439 ) New system generation balancing account (189 ) (171 ) Public purpose programs and energy efficiency programs (817 ) (683 ) Tax accounting memorandum account and pole loading balancing account (278 ) (248 ) Base rate recovery balancing account (234 ) (319 ) Greenhouse gas auction revenue (156 ) (75 ) FERC balancing accounts 43 74 Generator settlements — (4 ) Other (124 ) (137 ) Liability $ (2,119 ) $ (2,002 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have provided indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. SCE has indemnified the City of Redlands, California in connection with Mountainview's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its results of operations or liquidity. San Onofre Related Matters Replacement steam generators were installed at San Onofre in 2010 and 2011. On January 31, 2012, a leak suddenly occurred in one of the heat transfer tubes in San Onofre's Unit 3 steam generators. The Unit was safely taken off-line and subsequent inspections revealed excessive tube wear. Unit 2 was off-line for a planned outage when areas of unexpected tube wear were also discovered. On June 6, 2013, SCE decided to permanently retire Units 2 and 3. Settlement of San Onofre CPUC Proceedings In November 2014, the CPUC approved the San Onofre OII Settlement Agreement that SCE had entered into with TURN, ORA, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth. The San Onofre OII Settlement Agreement resolved the CPUC's investigation regarding the Steam Generator Replacement Project at San Onofre and the related outages and subsequent shutdown of San Onofre. The San Onofre OII Settlement Agreement does not affect proceedings related to recoveries from third parties described below, but does describe how shareholders and customers will share any recoveries. Challenges related to San Onofre CPUC Proceedings A federal lawsuit challenging the CPUC's authority to permit rate recovery of San Onofre costs and an application to the CPUC for rehearing of its decision approving the San Onofre OII Settlement Agreement were filed in November and December 2014, respectively. In April 2015, the federal lawsuit was dismissed with prejudice and the plaintiffs in that case appealed the dismissal to the Ninth Circuit in May 2015. Both the appeal and the application for rehearing remain pending. In April 2015, the Alliance for Nuclear Responsibility ("A4NR") filed a petition to modify the CPUC's decision approving the San Onofre OII Settlement Agreement based on SCE's alleged failures to disclose communications between SCE and CPUC decision-makers pertaining to issues in the San Onofre OII. The petition seeks the reversal of the decision approving the San Onofre OII Settlement Agreement and reopening of the OII proceeding. Subsequently, TURN and ORA filed responses supporting A4NR's petition to reopen the San Onofre OII proceeding. In August 2015, ORA filed its own petition to modify the CPUC's decision approving the San Onofre OII Settlement Agreement seeking to set aside the settlement and reopen the San Onofre OII proceeding. SCE and SDG&E responded to this petition in September 2015. Both petitions remain pending before the CPUC. In July 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its Chief Executive Officer and Chief Financial Officer and was later amended to include SCE's former President as a defendant. The lawsuit alleges that the defendants violated the securities laws by failing to disclose that Edison International had ex parte contacts with CPUC decision-makers regarding the San Onofre OII that were either unreported or more extensive than initially reported. The complaint purports to be filed on behalf of a class of persons who acquired Edison International common stock between March 21, 2014 and June 24, 2015. Subsequently and also in July 2015, a federal shareholder derivative lawsuit was filed against members of the Edison International Board of Directors for breach of fiduciary duty and other claims. The federal derivative lawsuit is based on similar allegations to the federal class action securities lawsuit and seeks monetary damages, including punitive damages, and various corporate governance reforms. An additional federal shareholder derivative lawsuit making essentially the same allegations was filed in August and was subsequently consolidated with the July 2015 federal derivative lawsuit. In October 2015, a shareholder derivative lawsuit was filed in California state court against members of the Edison International Board of Directors for breach of fiduciary duty and other claims, making similar allegations to those in the federal derivative lawsuits discussed above. In November 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its Chief Executive Officer and Treasurer by an Edison International employee, alleging claims under the Employee Retirement Income Security Act ("ERISA"). The complaint purports to be filed on behalf of a class of Edison International employees who were participants in the Edison 401(k) Savings Plan and invested in the Edison International Stock Fund between March 27, 2014 and June 24, 2015. The complaint alleges that defendants breached their fiduciary duties because they knew or should have known that investment in the Edison International Stock Fund was imprudent because the price of Edison International common stock was artificially inflated due to Edison International's alleged failure to disclose certain ex parte communications with CPUC decision-makers related to the San Onofre OII. Edison International and SCE cannot predict the outcome of these proceedings. MHI Claims SCE is also pursuing claims against Mitsubishi Heavy Industries, Ltd. and a related company ("MHI"), which designed and supplied the RSGs. MHI warranted the RSGs for an initial period of 20 years from acceptance and is contractually obligated to repair or replace defective items with dispatch and to pay specified damages for certain repairs. MHI's stated liability under the purchase agreement is limited to $138 million and excludes consequential damages, defined to include "the cost of replacement power;" however, limitations in the contract are subject to applicable exceptions both in the contract and under law. SCE has advised MHI that it believes one or more of such exceptions apply and that MHI's liability is not limited to $138 million . MHI has advised SCE that it disagrees. In October 2013, SCE sent MHI a formal request for binding arbitration under the auspices of the International Chamber of Commerce in accordance with the purchase contract seeking damages for all losses. In the request for arbitration, SCE alleges contract and tort claims and seeks at least $4 billion in damages on behalf of itself and its customers and in its capacity as Operating Agent for San Onofre. MHI has denied any liability and has asserted counterclaims for $41 million , for which SCE has denied any liability. Each of the other San Onofre owners sued MHI, alleging claims arising from MHI's supplying the faulty steam generators. These litigation claims have been stayed pending the arbitration. The other co-owners (SDG&E and Riverside) have been added as additional claimants in the arbitration. The arbitration is being conducted pursuant to a confidentiality order issued by the arbitration panel. Hearings concluded on April 29, 2016. A decision may be issued by year-end 2016 but could be later. SCE, on behalf of itself and the other San Onofre co-owners, has submitted seven invoices to MHI totaling $149 million for steam generator repair costs incurred through April 30, 2013. MHI paid the first invoice of $45 million , while reserving its right to challenge it and subsequently rejected a portion of the first invoice and has not paid further invoices, claiming further documentation is required, which SCE disputes. SCE recorded its share of the invoice paid (approximately $35 million ) as a reduction of repair and inspection costs in 2012. Under the San Onofre OII Settlement Agreement, recoveries from MHI (including amounts paid by MHI under the first invoice), if any, will first be applied to reimburse costs incurred in pursuing such recoveries, including litigation costs. To the extent SCE's share of recoveries from MHI exceed such costs, they will be allocated 50% to customers and 50% to SCE. The first $282 million of SCE's customers' portion of such recoveries from MHI will be distributed to customers via a credit to a sub-account of SCE's Base Revenue Requirement Balancing Account ("BRRBA"), reducing revenue requirements from customers. Amounts in excess of the first $282 million distributable to SCE customers will reduce SCE's regulatory asset represented by the unamortized balance of investment in San Onofre base plant, reducing the revenue requirement needed to amortize such investment. The amortization period, however, will be unaffected. Any additional amounts received after the regulatory asset is recovered will be applied to the BRRBA. The San Onofre OII Settlement Agreement provides the utilities with the discretion to resolve the MHI dispute without CPUC approval, but the utilities are obligated to use their best efforts to inform the CPUC of any settlement or other resolution of these disputes to the extent this is possible without compromising any aspect of the resolution. SCE and SDG&E have also agreed to allow the CPUC to review the documentation of any final resolution of the MHI dispute and the litigation costs incurred in pursuing claims against MHI to ensure they are not exorbitant in relation to the recovery obtained. There is no assurance that there will be any recovery from MHI or, if there is a recovery, that it will equal or exceed the litigation costs incurred to pursue the recovery. Energy Efficiency Incentive Mechanism In September 2015, the CPUC granted TURN and ORA requests for rehearing of prior CPUC decisions related to $74.5 million of incentive awards that SCE received for savings achieved by its 2006 – 2008 energy efficiency programs. In March 2016, ORA and TURN filed a joint proposal requesting that the CPUC recalculate SCE's 2006 – 2008 incentive awards and order SCE to refund $39.9 million to its customers. SCE disputes the assertion that SCE should be at risk to repay previously awarded incentives. SCE cannot predict the outcome of these petitions. Long Beach Service Interruptions In July 2015, SCE's customers who are served via the network portion of SCE's electric system in Long Beach, California experienced service interruptions due to multiple underground vault fires and underground cable failures. No personal injuries have been reported in connection with these events. SCE instituted an internal investigation and commissioned an external investigation of these events and their causes, which revealed that the main cause of the interruptions was a lack of adequate management oversight of the downtown network system. The investigations also revealed deficiencies in maintaining the knowledge base on the configuration and operation of the system, and a lack of sophisticated controls needed to more efficiently and effectively prevent and respond to the cascading events that occurred. These events and their causes are also being investigated by the CPUC's SED. SCE is unable to estimate a possible loss or range of loss associated with any penalties that may be imposed by the CPUC related to this matter. Subject to applicable deductibles, SCE is generally insured against customer claims arising from these service interruptions. Environmental Remediation SCE records its environmental remediation liabilities when site assessments and/or remedial actions are probable and a range of reasonably likely cleanup costs can be estimated. SCE reviews its sites and measures the liability quarterly, by assessing a range of reasonably likely costs for each identified site using currently available information, including existing technology, presently enacted laws and regulations, experience gained at similar sites, and the probable level of involvement and financial condition of other potentially responsible parties. These estimates include costs for site investigations, remediation, operation and maintenance, monitoring and site closure. Unless there is a single probable amount, SCE records the lower end of this reasonably likely range of costs (reflected in "Other long-term liabilities") at undiscounted amounts as timing of cash flows is uncertain. At March 31, 2016 , SCE's recorded estimated minimum liability to remediate its 19 identified material sites (sites in which the upper end of the range of the costs is at least $1 million ) was $133 million , including $80 million related to San Onofre. In addition to these sites, SCE also has 39 immaterial sites for which the total minimum recorded liability was $3 million . Of the $136 million total environmental remediation liability for SCE, $131 million has been recorded as a regulatory asset. SCE expects to recover $49 million through an incentive mechanism that allows SCE to recover 90% of its environmental remediation costs at certain sites (SCE may request to include additional sites) and $82 million through a mechanism that allows SCE to recover 100% of the costs incurred at certain sites through customer rates. SCE's identified sites include several sites for which there is a lack of currently available information, including the nature and magnitude of contamination, and the extent, if any, that SCE may be held responsible for contributing to any costs incurred for remediating these sites. Thus, no reasonable estimate of cleanup costs can be made for these sites. The ultimate costs to clean up SCE's identified sites may vary from its recorded liability due to numerous uncertainties inherent in the estimation process, such as: the extent and nature of contamination; the scarcity of reliable data for identified sites; the varying costs of alternative cleanup methods; developments resulting from investigatory studies; the possibility of identifying additional sites; and the time periods over which site remediation is expected to occur. SCE believes that, due to these uncertainties, it is reasonably possible that cleanup costs at the identified material sites and immaterial sites could exceed its recorded liability by up to $165 million and $7 million , respectively. The upper limit of this range of costs was estimated using assumptions least favorable to SCE among a range of reasonably possible outcomes. SCE expects to clean up and mitigate its identified sites over a period of up to 30 years. Remediation costs for each of the next five years are expected to range from $7 million to $23 million . Costs incurred were $1 million for both the three months ended March 31, 2016 and 2015. Based upon the CPUC's regulatory treatment of environmental remediation costs incurred at SCE, SCE believes that costs ultimately recorded will not materially affect its results of operations, financial position or cash flows. There can be no assurance, however, that future developments, including additional information about existing sites or the identification of new sites, will not require material revisions to estimates. Nuclear Insurance SCE is a member of NEIL, a mutual insurance company owned by entities with nuclear facilities. NEIL provides insurance for nuclear property damage, including damages caused by acts of terrorism up to specified limits, and for accidental outages for active facilities. The amount of nuclear property damage insurance purchased for San Onofre and Palo Verde exceeds the minimum federal requirement of $1.06 billion . If NEIL losses at any nuclear facility covered by the arrangement were to exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $45 million per year. Federal law limits public offsite liability claims for bodily injury and property damage from a nuclear incident to the amount of available financial protection, which is currently approximately $13.5 billion . Based on its ownership interests, SCE could be required to pay a maximum of approximately $255 million per nuclear incident. However, it would have to pay no more than approximately $38 million per incident in any one year. For more information on nuclear insurance coverage, see Note 11 in the 2015 Form 10-K. Wildfire Insurance Severe wildfires in California have given rise to large damage claims against California utilities for fire-related losses alleged to be the result of the failure of electric and other utility equipment. Invoking a California Court of Appeal decision, plaintiffs pursuing these claims have relied on the doctrine of inverse condemnation, which can impose strict liability (including liability for a claimant's attorneys' fees) for property damage. Prolonged drought conditions in California have also increased the risk of severe wildfire events. On June 1, 2015, Edison International renewed its liability insurance coverage, which included coverage for SCE's wildfire liabilities up to a $610 million limit (with a self-insured retention of $10 million per wildfire occurrence). Various coverage limitations within the policies that make up this insurance coverage could result in additional self-insured costs in the event of multiple wildfire occurrences during the policy period (June 1, 2015 to May 31, 2016). SCE also has additional coverage for certain wildfire liabilities of $390 million , which applies when total covered wildfire claims exceed $610 million , through June 14, 2016. SCE may experience coverage reductions and/or increased insurance costs in future years. No assurance can be given that future losses will not exceed the limits of SCE's insurance coverage. Spent Nuclear Fuel Under federal law, the Department of Energy ("DOE") is responsible for the selection and construction of a facility for the permanent disposal of spent nuclear fuel and high-level radioactive waste. The DOE has not met its contractual obligation to accept spent nuclear fuel. Extended delays by the DOE have led to the construction of costly alternatives and associated siting and environmental issues. Currently, both San Onofre and Palo Verde have interim storage for spent nuclear fuel on site sufficient for their current license period. In June 2010, the United States Court of Federal Claims issued a decision granting SCE and the San Onofre co-owners damages of approximately $142 million (SCE share $112 million ) to recover costs incurred through December 31, 2005 for the DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE received payment from the federal government in the amount of the damage award. In April 2016, SCE, as operating agent, settled a lawsuit on behalf of the San Onofre owners against the DOE for $162 million (SCE share $124 million ) to compensate for damages caused by the DOE's failure to meet its obligation to begin accepting spent nuclear fuel for the period from January 1, 2006 to December 31, 2013. The settlement also provides for a claim submission/audit process for expenses incurred from 2014 – 2016, where SCE will submit a claim for damages caused by the DOE failure to accept spent nuclear fuel each year, followed by a government audit and payment of the claim. This process will make additional legal action to recover damages incurred in 2014 – 2016 unnecessary. All damages recovered by SCE are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs. |
Preferred and Preference Stock
Preferred and Preference Stock of Utility | 3 Months Ended |
Mar. 31, 2016 | |
Preferred And Preference Stock Of Utility Disclosure [Abstract] | |
Preferred and Preference Stock of Utility | Preferred and Preference Stock of SCE During the first quarter of 2016, SCE issued $300 million of 5.45% Series K Preference Stock ( 120,004 shares; cumulative, $2,500 liquidation value) to SCE Trust V, a special purpose entity formed to issue trust securities as discussed in Note 3. The Series K Preference Stock may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2026 if certain changes in tax or investment company laws occur. On or after March 15, 2026, SCE may redeem the Series K shares at par, in whole or in part and distributions will accrue and be payable at a floating rate. The shares are not subject to mandatory redemption. The proceeds were used to redeem $125 million of SCE's Series D Preference Stock and for general corporate purposes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Edison International's accumulated other comprehensive loss, net of tax consist of: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Beginning balance $ (56 ) $ (58 ) $ (22 ) $ (28 ) Pension and PBOP – net loss: Other comprehensive loss before reclassifications — (3 ) — — Reclassified from accumulated other comprehensive loss 1 2 2 1 1 Change 2 (1 ) 1 1 Ending Balance $ (54 ) $ (59 ) $ (21 ) $ (27 ) 1 These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information. |
Interest and Other Income and O
Interest and Other Income and Other Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income and Other Expenses | Interest and Other Income and Other Expenses Interest and other income and other expenses are as follows: Three months ended March 31, (in millions) 2016 2015 SCE interest and other income: Equity allowance for funds used during construction $ 22 $ 21 Increase in cash surrender value of life insurance policies and life insurance benefits 7 10 Interest income — 1 Other 2 1 Total SCE interest and other income 31 33 Other income of Edison International Parent and Other — 6 Total Edison International interest and other income $ 31 $ 39 SCE other expenses: Civic, political and related activities and donations $ (5 ) $ (5 ) Other — (2 ) Total SCE other expenses (5 ) (7 ) Other expense of Edison International Parent and Other (1 ) (3 ) Total Edison International other expenses $ (6 ) $ (10 ) |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information for continuing operations is: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 158 $ 152 $ 149 $ 144 Tax payments, net 2 — 11 32 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 156 $ 136 $ — $ 147 Preferred and preference stock 1 3 1 3 SCE's accrued capital expenditures at March 31, 2016 and 2015 were $360 million and $407 million , respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the parent holding company of Southern California Edison Company ("SCE"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison International is also the parent company of Edison Energy Group, a company that holds interests in subsidiaries that are engaged in competitive businesses focused on providing energy services to commercial and industrial customers, including distributed resources, engaging in competitive transmission opportunities, and exploring distributed water treatment and recycling. Such competitive business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its nonutility subsidiaries. SCE's consolidated financial statements include the accounts of SCE and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's significant accounting policies were described in Note 1 of "Notes to Consolidated Financial Statements" included in the 2015 Form 10-K. This quarterly report should be read in conjunction with the financial statements and notes included in the 2015 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the operating results for the full year. The December 31, 2015 financial statement 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. |
Cash Equivalents | Cash Equivalents Cash equivalents included 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. |
Inventory | Inventory Inventory is primarily composed of materials, supplies and spare parts, and stated at the lower of cost or market, cost being determined by the average cost method. |
Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards payable in common shares, including performance shares and restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted On April 7, 2015, the FASB issued an accounting standards update that requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. Previously, accounting guidance required these costs to be presented as a deferred charge asset. Edison International and SCE adopted this guidance in the first quarter of 2016. At March 31, 2016, the amount of debt issuance costs that are reflected as a deduction of "Long-term debt" was $76 million for SCE and $83 million for Edison International. At December 31, 2015 the amount of debt issuance costs that have been reclassified from "Other long-term assets" to a deduction of "Long-term debt" was $77 million for SCE and $81 million for Edison International. On April 15, 2015, the FASB issued an accounting standards update on fees paid by a customer for software licenses. This new standard provides guidance about whether a cloud computing arrangement includes a software license which may be capitalized in certain circumstances. If a cloud computing arrangement does not include a software license, then the arrangement should be accounted for as a service contract. Edison International and SCE adopted this guidance prospectively, effective January 1, 2016. The adoption of this standard did not have a material impact on Edison International's and SCE's consolidated financial statements. Accounting Guidance Not Yet Adopted On May 28, 2014, the FASB issued an accounting standards update on revenue recognition including enhanced disclosures and further amended the standard in 2016. Under the new standard, revenue is recognized when (or as) a good or service is transferred to the customer and the customer obtains control of the good or service. On July 9, 2015, the FASB approved a one-year deferral, updating the effective date to January 1, 2018. Edison International and SCE are currently evaluating this new guidance and cannot determine the impact of this standard at this time. Edison International and SCE anticipates adopting the standard using the modified retrospective application which means that we would recognize the cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings in 2018. On January 5, 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The amendments require equity investments (excluding those accounted for under the equity method or those that result in consolidation) to be measured at fair value, with changes in fair value recognized in net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. Edison International and SCE will adopt this guidance effective January 1, 2018. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's consolidated financial statements. On February 25, 2016, the FASB issued an accounting standards update related to lease accounting including enhanced disclosures. Under the new standard, a lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified assets for a period of time in exchange for consideration. Lessees will classify leases with a term of more than one year as either operating or finance leases and will need to recognize a right-of-use asset and a lease liability. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. This guidance is effective January 1, 2019 but early adoption is permitted. Edison International and SCE are currently evaluating this new guidance and cannot determine the impact of this standard at this time. On March 30, 2016, the FASB issued an accounting standards update to simplify the accounting for share-based payments. Under this new guidance, the tax effects related to share based payments will be recorded through the income statement. Currently, tax benefits in excess of compensation cost ("windfalls") are recorded in equity, and tax deficiencies ("shortfalls") are recorded in equity to the extent of previous windfalls, and then to the income statement. This guidance is effective January 1, 2017 but early adoption is permitted. The new standard also revised reporting on the statement of cash flows. Edison International and SCE are currently evaluating this new guidance. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE (in millions) March 31, December 31, 2015 March 31, December 31, 2015 Money market funds $ 36 $ 37 $ 7 $ 8 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period as follows: Edison International SCE (in millions) March 31, December 31, 2015 March 31, December 31, 2015 Book balances reclassified to accounts payable $ 102 $ 162 $ 102 $ 158 |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Three months ended March 31, (in millions, except per-share amounts) 2016 2015 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 270 $ 299 Participating securities dividends — — Income from continuing operations available to common shareholders $ 270 $ 299 Weighted average common shares outstanding 326 326 Basic earnings per share – continuing operations $ 0.83 $ 0.92 Diluted earnings per share – continuing operations: Income from continuing operations available to common shareholders $ 270 $ 299 Income impact of assumed conversions — — Income from continuing operations available to common shareholders and assumed conversions $ 270 $ 299 Weighted average common shares outstanding 326 326 Incremental shares from assumed conversions 2 3 Adjusted weighted average shares – diluted 328 329 Diluted earnings per share – continuing operations $ 0.82 $ 0.91 |
Consolidated Statements of Ch25
Consolidated Statements of Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of changes in equity | The following table provides Edison International's changes in equity for the three months ended March 31, 2016 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2015 $ 2,484 $ (56 ) $ 8,940 $ 11,368 $ 2,020 $ 13,388 Net income — — 271 271 30 301 Other comprehensive income — 2 — 2 — 2 Common stock dividends declared ($0.48 per share) — — (156 ) (156 ) — (156 ) Dividends to noncontrolling interests — — — — (30 ) (30 ) Stock-based compensation 1 — (50 ) (49 ) — (49 ) Non-cash stock-based compensation 6 — — 6 — 6 Issuance of preference stock — — — — 294 294 Redemption of preference stock — — (3 ) (3 ) (122 ) (125 ) Balance at March 31, 2016 $ 2,491 $ (54 ) $ 9,002 $ 11,439 $ 2,192 $ 13,631 The following table provides Edison International's changes in equity for the three months ended March 31, 2015 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Preferred and Preference Stock Total Equity Balance at December 31, 2014 $ 2,445 $ (58 ) $ 8,573 $ 10,960 $ 2,022 $ 12,982 Net income — — 299 299 28 327 Other comprehensive loss — (1 ) — (1 ) — (1 ) Common stock dividends declared ($0.4175 per share) — — (136 ) (136 ) — (136 ) Dividends to noncontrolling interests — — — — (28 ) (28 ) Stock-based compensation 9 — (61 ) (52 ) — (52 ) Non-cash stock-based compensation 6 — — 6 — 6 Balance at March 31, 2015 $ 2,460 $ (59 ) $ 8,675 $ 11,076 $ 2,022 $ 13,098 |
Southern California Edison | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of changes in equity | The following table provides SCE's changes in equity for the three months ended March 31, 2016 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2015 $ 2,168 $ 652 $ (22 ) $ 8,804 $ 2,070 $ 13,672 Net income — — — 317 — 317 Other comprehensive income — — 1 — — 1 Dividends declared on common stock — — — (170 ) — (170 ) Dividends declared on preferred and preference stock — — — (30 ) — (30 ) Stock-based compensation — 1 — (34 ) — (33 ) Non-cash stock-based compensation — 3 — — — 3 Issuance of preference stock — (6 ) — — 300 294 Redemption of preference stock — 3 — (3 ) (125 ) (125 ) Balance at March 31, 2016 $ 2,168 $ 653 $ (21 ) $ 8,884 $ 2,245 $ 13,929 The following table provides SCE's changes in equity for the three months ended March 31, 2015 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2014 $ 2,168 $ 618 $ (28 ) $ 8,454 $ 2,070 $ 13,282 Net income — — — 333 — 333 Other comprehensive income — — 1 — — 1 Dividends declared on common stock — — — (147 ) — (147 ) Dividends declared on preferred and preference stock — — — (28 ) — (28 ) Stock-based compensation — 9 — (22 ) — (13 ) Non-cash stock-based compensation — 4 — — — 4 Balance at March 31, 2015 $ 2,168 $ 631 $ (27 ) $ 8,590 $ 2,070 $ 13,432 |
Variable Interest Entities Trus
Variable Interest Entities Trust income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Southern California Edison | |
Variable Interest Entity | |
Summary of Trusts' Income Statements | The following table provides a summary of the trusts' income statements: Three months ended March 31, (in millions) Trust I Trust II Trust III Trust IV Trust V 2016 Dividend income $ 7 $ 5 $ 4 $ 4 $ 1 Dividend distributions 7 5 4 4 1 2015 Dividend income $ 7 $ 5 $ 4 * * Dividend distributions 7 5 4 * * * Not applicable. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion | The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: March 31, 2016 December 31, 2015 (in millions) Carrying Value Fair Value Carrying Value Fair Value SCE $ 10,501 $ 12,045 $ 10,616 $ 11,592 Edison International 11,538 13,109 11,259 12,252 |
Southern California Edison | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value by Level | The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: March 31, 2016 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 143 $ — $ 143 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,464 — — — 1,464 Fixed Income 3 907 1,810 — — 2,717 Short-term investments, primarily cash equivalents 69 48 — — 117 Subtotal of nuclear decommissioning trusts 4 2,440 1,858 — — 4,298 Total assets 2,468 1,858 143 — 4,469 Liabilities at fair value Derivative contracts — 21 1,356 (11 ) 1,366 Total liabilities — 21 1,356 (11 ) 1,366 Net assets (liabilities) $ 2,468 $ 1,837 $ (1,213 ) $ 11 $ 3,103 December 31, 2015 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ — $ 163 $ — $ 163 Other 28 — — — 28 Nuclear decommissioning trusts: Stocks 2 1,460 — — — 1,460 Fixed Income 3 947 1,776 — — 2,723 Short-term investments, primarily cash equivalents 91 81 — — 172 Subtotal of nuclear decommissioning trusts 4 2,498 1,857 — — 4,355 Total assets 2,526 1,857 163 — 4,546 Liabilities at fair value Derivative contracts — 22 1,311 (15 ) 1,318 Total liabilities — 22 1,311 (15 ) 1,318 Net assets (liabilities) $ 2,526 $ 1,835 $ (1,148 ) $ 15 $ 3,228 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. 2 Approximately 70% of SCE's equity investments were located in the United States at both March 31, 2016 and December 31, 2015 . 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $101 million and $111 million at March 31, 2016 and December 31, 2015 , respectively. 4 Excludes net payables of $8 million and net payables of $24 million at March 31, 2016 and December 31, 2015 , which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended March 31, (in millions) 2016 2015 Fair value of net liabilities at beginning of period $ (1,148 ) $ (902 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (65 ) (74 ) Fair value of net liabilities at end of period $ (1,213 ) $ (976 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (84 ) $ (96 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. |
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Range Assets Liabilities Valuation Technique(s) Unobservable Input (Weighted Average) Congestion revenue rights March 31, 2016 $ 136 $ — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 December 31, 2015 152 — Market simulation model and auction prices Load forecast 6,289 MW - 24,349 MW Power prices 1 $0 - $110.44 Gas prices 2 $1.98 - $5.72 Tolling March 31, 2016 7 1,329 Option model Volatility of gas prices 16% - 46% (30%) Volatility of power prices 26% - 86% (40%) Power prices $17.67 - $47.29 ($33.00) December 31, 2015 10 1,297 Option model Volatility of gas prices 15% - 58% (20%) Volatility of power prices 26% - 38% (30%) Power prices $24.15 - $46.93 ($34.80) 1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Southern California Edison | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: March 31, 2016 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 66 $ 78 $ 144 $ 244 $ 1,134 $ 1,378 $ 1,234 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 1 — — — (11 ) — (11 ) (11 ) Net amounts presented in the consolidated balance sheets $ 65 $ 78 $ 143 $ 232 $ 1,134 $ 1,366 $ 1,223 December 31, 2015 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 81 $ 84 $ 165 $ 235 $ 1,100 $ 1,335 $ 1,170 Gross amounts offset in the consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — (15 ) — (15 ) (15 ) Net amounts presented in the consolidated balance sheets $ 79 $ 84 $ 163 $ 218 $ 1,100 $ 1,318 $ 1,155 1 In addition, at March 31, 2016 and December 31, 2015 , SCE had posted $25 million and $31 million , respectively, of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets. |
Summarization of Economic Hedging Activities | The following table summarizes the components of SCE's economic hedging activity: Three months ended March 31, (in millions) 2016 2015 Realized losses $ (27 ) $ (36 ) Unrealized losses (64 ) (69 ) |
Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE hedging activities: Economic Hedges Commodity Unit of Measure March 31, 2016 December 31, 2015 Electricity options, swaps and forwards GWh 4,842 6,221 Natural gas options, swaps and forwards Bcf 17 32 Congestion revenue rights GWh 96,182 109,740 Tolling arrangements GWh 68,331 70,663 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income tax expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Income from continuing operations before income taxes $ 333 $ 424 $ 367 $ 440 Provision for income tax at federal statutory rate of 35% 117 148 128 154 Increase in income tax from: State tax, net of federal benefit 6 11 9 14 Property-related (79 ) (60 ) (79 ) (60 ) Change related to uncertain tax positions (1 ) 15 (1 ) 10 Other (5 ) (8 ) (7 ) (11 ) Total income tax expense from continuing operations $ 38 $ 106 $ 50 $ 107 Effective tax rate 11.4 % 25.0 % 13.6 % 24.3 % |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Expense Components for Plans | Pension expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Service cost $ 39 $ 35 $ 38 $ 35 Interest cost 44 41 41 38 Expected return on plan assets (56 ) (57 ) (53 ) (53 ) Amortization of prior service cost 1 1 1 1 Amortization of net loss 1 9 9 8 7 Expense under accounting standards $ 37 $ 29 $ 35 $ 28 Regulatory adjustment (9 ) (1 ) (9 ) (1 ) Total expense recognized $ 28 $ 28 $ 26 $ 27 1 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $3 million and $2 million , respectively, for the three months ended March 31, 2016 , and $3 million and $2 million , respectively, for the three months ended March 31, 2015 . |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Expense Components for Plans | PBOP expense components for continuing operations are: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Service cost $ 10 $ 12 $ 10 $ 12 Interest cost 26 29 26 28 Expected return on plan assets (28 ) (28 ) (28 ) (28 ) Amortization of prior service cost (1 ) (3 ) (1 ) (3 ) Amortization of net loss — 6 — 6 Total expense $ 7 $ 16 $ 7 $ 15 |
Southern California Edison | |
Workforce Reductions [Abstract] | |
Workforce reductions | The following table provides a summary of changes in the accrued severance liability associated with these reductions: (in millions) Balance at January 1, 2016 $ 22 Additions 5 Payments (15 ) Balance at March 31, 2016 $ 12 |
Investments (Tables)
Investments (Tables) - Southern California Edison | 3 Months Ended |
Mar. 31, 2016 | |
Investment [Line Items] | |
Amortized Cost and Fair Value of the Trust Investments | The following table sets forth amortized cost and fair value of the trust investments (see Note 4 for a discussion of fair value of the trust investments): Longest Maturity Dates Amortized Cost Fair Value (in millions) March 31, December 31, March 31, December 31, 2015 Stocks — $ 311 $ 304 $ 1,464 $ 1,460 Municipal bonds 2054 736 691 894 840 U.S. government and agency securities 2046 1,002 1,070 1,092 1,128 Corporate bonds 2057 662 708 731 755 Short-term investments and receivables/payables 1 One-year 106 144 109 148 Total $ 2,817 $ 2,917 $ 4,290 $ 4,331 1 Short-term investments include $8 million and $81 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by April 4, 2016 and January 5, 2016 as of March 31, 2016 and December 31, 2015 , respectively. |
Summary of Changes in the Fair Value of Trust | The following table sets forth a summary of changes in the fair value of the trust: Three months ended March 31, (in millions) 2016 2015 Balance at beginning of period $ 4,331 $ 4,799 Gross realized gains 17 27 Gross realized losses (3 ) (2 ) Unrealized gains, net 59 44 Other-than-temporary impairments (7 ) (4 ) Interest and dividends 29 28 Contributions — 7 Income taxes (18 ) — Decommissioning disbursements (116 ) — Administrative expenses and other (2 ) (3 ) Balance at end of period $ 4,290 $ 4,896 |
Regulatory Assets and Liabili32
Regulatory Assets and Liabilities (Tables) - Southern California Edison | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Assets [Line Items] | |
Regulatory Assets Included on the Consolidated Balance Sheets | SCE's regulatory assets included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 329 $ 382 Energy derivatives 182 159 Other 27 19 Total current 538 560 Long-term: Deferred income taxes, net 3,920 3,757 Pensions and other postretirement benefits 842 849 Energy derivatives 1,066 1,027 Unamortized investments, net 169 182 San Onofre 982 1,043 Unamortized loss on reacquired debt 197 201 Regulatory balancing accounts 39 36 Environmental remediation 131 129 Other 282 288 Total long-term 7,628 7,512 Total regulatory assets $ 8,166 $ 8,072 |
Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) March 31, December 31, Current: Regulatory balancing accounts $ 1,135 $ 1,106 Other 22 22 Total current 1,157 1,128 Long-term: Costs of removal 2,822 2,781 Recoveries in excess of ARO liabilities 1 1,690 1,502 Regulatory balancing accounts 1,352 1,314 Other 56 79 Total long-term 5,920 5,676 Total regulatory liabilities $ 7,077 $ 6,804 1 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9. |
Schedule of Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) March 31, December 31, Asset (liability) Energy resource recovery account $ (364 ) $ (439 ) New system generation balancing account (189 ) (171 ) Public purpose programs and energy efficiency programs (817 ) (683 ) Tax accounting memorandum account and pole loading balancing account (278 ) (248 ) Base rate recovery balancing account (234 ) (319 ) Greenhouse gas auction revenue (156 ) (75 ) FERC balancing accounts 43 74 Generator settlements — (4 ) Other (124 ) (137 ) Liability $ (2,119 ) $ (2,002 ) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Edison International's accumulated other comprehensive loss, net of tax consist of: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Beginning balance $ (56 ) $ (58 ) $ (22 ) $ (28 ) Pension and PBOP – net loss: Other comprehensive loss before reclassifications — (3 ) — — Reclassified from accumulated other comprehensive loss 1 2 2 1 1 Change 2 (1 ) 1 1 Ending Balance $ (54 ) $ (59 ) $ (21 ) $ (27 ) 1 These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information. |
Interest and Other Income and34
Interest and Other Income and Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income and Expenses | Interest and other income and other expenses are as follows: Three months ended March 31, (in millions) 2016 2015 SCE interest and other income: Equity allowance for funds used during construction $ 22 $ 21 Increase in cash surrender value of life insurance policies and life insurance benefits 7 10 Interest income — 1 Other 2 1 Total SCE interest and other income 31 33 Other income of Edison International Parent and Other — 6 Total Edison International interest and other income $ 31 $ 39 SCE other expenses: Civic, political and related activities and donations $ (5 ) $ (5 ) Other — (2 ) Total SCE other expenses (5 ) (7 ) Other expense of Edison International Parent and Other (1 ) (3 ) Total Edison International other expenses $ (6 ) $ (10 ) |
Supplemental Cash Flows Infor35
Supplemental Cash Flows Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental cash flows information for continuing operations is: Edison International SCE Three months ended March 31, (in millions) 2016 2015 2016 2015 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 158 $ 152 $ 149 $ 144 Tax payments, net 2 — 11 32 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 156 $ 136 $ — $ 147 Preferred and preference stock 1 3 1 3 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Details) mi² in Thousands | 3 Months Ended |
Mar. 31, 2016mi² | |
Southern California Edison | Electric Utility | |
Summary of Significant Accounting Policies [Line Items] | |
Supply of electricity, area covered (square mile) | 50 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Cash) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Cash and Cash Equivalents Items [Line Items] | ||
Maximum maturity period of cash equivalent investments (in months) | 3 months | |
Money market funds | $ 36 | $ 37 |
Book balances reclassified to accounts payable | 102 | 162 |
Southern California Edison | ||
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 7 | 8 |
Book balances reclassified to accounts payable | $ 102 | $ 158 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic earnings per share – continuing operations: | ||
Income from continuing operations attributable to common shareholders | $ 270 | $ 299 |
Participating securities dividends | 0 | 0 |
Income from continuing operations available to common shareholders | $ 270 | $ 299 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 |
Basic earnings per share – continuing operations (in dollars per share) | $ 0.83 | $ 0.92 |
Diluted earnings per share – continuing operations: | ||
Income from continuing operations available to common shareholders | $ 270 | $ 299 |
Income impact of assumed conversions | 0 | 0 |
Income from continuing operations available to common shareholders and assumed conversions | $ 270 | $ 299 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 |
Incremental shares from assumed conversions (in shares) | 2,000,000 | 3,000,000 |
Adjusted weighted average shares - diluted (in shares) | 328,000,000 | 329,000,000 |
Diluted earnings per share – continuing operations (in dollars per share) | $ 0.82 | $ 0.91 |
Stock-Based Compensation Awards | ||
Diluted earnings per share – continuing operations: | ||
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares) | 2,023,787 | 79,394 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term debt | ||
Debt issuance costs | $ 83 | |
Other long-term assets | ||
Debt issuance costs | $ 81 | |
Southern California Edison | Long-term debt | ||
Debt issuance costs | $ 76 | |
Southern California Edison | Other long-term assets | ||
Debt issuance costs | $ 77 |
Consolidated Statements of Ch40
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | $ 13,388 | $ 12,982 |
Net income | 301 | 327 |
Other comprehensive income | 2 | (1) |
Common stock dividends declared | (156) | (136) |
Dividends to noncontrolling interests | (30) | (28) |
Stock-based compensation | (49) | (52) |
Non-cash stock-based compensation | 6 | 6 |
Issuance of preference stock | 294 | |
Redemption of preference stock | (125) | |
Balance, at the end of the period | $ 13,631 | $ 13,098 |
Dividends declared per common share (in dollars per share) | $ 0.4800 | $ 0.4175 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | $ 2,484 | $ 2,445 |
Net income | 0 | 0 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | 0 | 0 |
Dividends to noncontrolling interests | 0 | 0 |
Stock-based compensation | 1 | 9 |
Non-cash stock-based compensation | 6 | 6 |
Issuance of preference stock | 0 | |
Redemption of preference stock | 0 | |
Balance, at the end of the period | 2,491 | 2,460 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | (56) | (58) |
Net income | 0 | 0 |
Other comprehensive income | 2 | (1) |
Common stock dividends declared | 0 | 0 |
Dividends to noncontrolling interests | 0 | 0 |
Stock-based compensation | 0 | 0 |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 0 | |
Redemption of preference stock | 0 | |
Balance, at the end of the period | (54) | (59) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 8,940 | 8,573 |
Net income | 271 | 299 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | (156) | (136) |
Dividends to noncontrolling interests | 0 | 0 |
Stock-based compensation | (50) | (61) |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 0 | |
Redemption of preference stock | (3) | |
Balance, at the end of the period | 9,002 | 8,675 |
Subtotal | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 11,368 | 10,960 |
Net income | 271 | 299 |
Other comprehensive income | 2 | (1) |
Common stock dividends declared | (156) | (136) |
Dividends to noncontrolling interests | 0 | 0 |
Stock-based compensation | (49) | (52) |
Non-cash stock-based compensation | 6 | 6 |
Issuance of preference stock | 0 | |
Redemption of preference stock | (3) | |
Balance, at the end of the period | 11,439 | 11,076 |
Preferred and preference stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 2,020 | 2,022 |
Net income | 30 | 28 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | 0 | 0 |
Dividends to noncontrolling interests | (30) | (28) |
Stock-based compensation | 0 | 0 |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 294 | |
Redemption of preference stock | (122) | |
Balance, at the end of the period | 2,192 | 2,022 |
Southern California Edison | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 13,672 | 13,282 |
Net income | 317 | 333 |
Other comprehensive income | 1 | 1 |
Common stock dividends declared | (170) | (147) |
Dividends declared on preferred and preference stock | (30) | (28) |
Stock-based compensation | (33) | (13) |
Non-cash stock-based compensation | 3 | 4 |
Issuance of preference stock | 294 | |
Redemption of preference stock | (125) | |
Balance, at the end of the period | 13,929 | 13,432 |
Southern California Edison | Common stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 2,168 | 2,168 |
Net income | 0 | 0 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | 0 | 0 |
Dividends declared on preferred and preference stock | 0 | 0 |
Stock-based compensation | 0 | 0 |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 0 | |
Redemption of preference stock | 0 | |
Balance, at the end of the period | 2,168 | 2,168 |
Southern California Edison | Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 652 | 618 |
Net income | 0 | 0 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | 0 | 0 |
Dividends declared on preferred and preference stock | 0 | 0 |
Stock-based compensation | 1 | 9 |
Non-cash stock-based compensation | 3 | 4 |
Issuance of preference stock | (6) | |
Redemption of preference stock | 3 | |
Balance, at the end of the period | 653 | 631 |
Southern California Edison | Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | (22) | (28) |
Net income | 0 | 0 |
Other comprehensive income | 1 | 1 |
Common stock dividends declared | 0 | 0 |
Dividends declared on preferred and preference stock | 0 | 0 |
Stock-based compensation | 0 | 0 |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 0 | |
Redemption of preference stock | 0 | |
Balance, at the end of the period | (21) | (27) |
Southern California Edison | Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 8,804 | 8,454 |
Net income | 317 | 333 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | (170) | (147) |
Dividends declared on preferred and preference stock | (30) | (28) |
Stock-based compensation | (34) | (22) |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 0 | |
Redemption of preference stock | (3) | |
Balance, at the end of the period | 8,884 | 8,590 |
Southern California Edison | Preferred and preference stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, at the beginning of the period | 2,070 | 2,070 |
Other comprehensive income | 0 | 0 |
Common stock dividends declared | 0 | 0 |
Dividends declared on preferred and preference stock | 0 | 0 |
Stock-based compensation | 0 | 0 |
Non-cash stock-based compensation | 0 | 0 |
Issuance of preference stock | 300 | |
Redemption of preference stock | (125) | |
Balance, at the end of the period | $ 2,245 | $ 2,070 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Southern California Edison | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)$ / sharesMW | Mar. 31, 2015USD ($)MW | Dec. 31, 2015USD ($)$ / shares | |
Series K Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.45% | ||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | ||
Variable Interest Entity, Not Primary Beneficiary | SCE Power Purchase Contracts | |||
Details of projects or entities | |||
Power generating capacity (in megawatts) | MW | 4,383 | 4,125 | |
Payments to unconsolidated VIEs for power purchase contracts | $ 127,000,000 | $ 103,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | |||
Unconsolidated Trust | |||
Common stock | 10,000 | $ 10,000 | |
Dividend income | 7,000,000 | 7,000,000 | |
Dividend distributions | $ 7,000,000 | 7,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | Trust Securities [Member] | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.625% | 5.625% | |
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |
Common stock | $ 10,000 | ||
Variable Interest Entity, Not Primary Beneficiary | SCE Trust I | Series F Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.625% | 5.625% | |
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | |||
Unconsolidated Trust | |||
Common stock | $ 10,000 | $ 10,000 | |
Dividend income | 5,000,000 | 5,000,000 | |
Dividend distributions | $ 5,000,000 | 5,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | Trust Securities [Member] | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.10% | 5.10% | |
Liquidation preference | $ 400,000,000 | $ 400,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust II | Series G Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.10% | 5.10% | |
Liquidation preference | $ 400,000,000 | $ 400,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | |||
Unconsolidated Trust | |||
Common stock | $ 10,000 | $ 10,000 | |
Dividend income | 4,000,000 | 4,000,000 | |
Dividend distributions | $ 4,000,000 | $ 4,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | Trust Securities [Member] | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.75% | 5.75% | |
Liquidation preference | $ 275,000,000 | $ 275,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust III | Series H Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.75% | 5.75% | |
Liquidation preference | $ 275,000,000 | $ 275,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | |||
Unconsolidated Trust | |||
Common stock | $ 10,000 | $ 10,000 | |
Dividend income | 4,000,000 | ||
Dividend distributions | $ 4,000,000 | ||
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | Trust Securities [Member] | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.375% | 5.375% | |
Liquidation preference | $ 325,000,000 | $ 325,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust IV | Series J Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.375% | 5.375% | |
Liquidation preference | $ 325,000,000 | $ 325,000,000 | |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |
Variable Interest Entity, Not Primary Beneficiary | SCE Trust V | |||
Unconsolidated Trust | |||
Common stock | $ 10,000 | ||
Dividend income | 1,000,000 | ||
Dividend distributions | $ 1,000,000 | ||
Variable Interest Entity, Not Primary Beneficiary | SCE Trust V | Trust Securities [Member] | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.45% | ||
Liquidation preference | $ 300,000,000 | ||
Liquidation value (in dollars per share) | $ / shares | $ 25 | ||
Common stock | $ 10,000 | ||
Variable Interest Entity, Not Primary Beneficiary | SCE Trust V | Series K Preferred Stock | |||
Unconsolidated Trust | |||
Security dividend rate, (as a percent) | 5.45% | ||
Liquidation preference | $ 300,000,000 | ||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets and Liabilities at Fair Values | ||||
Money market funds | $ 36 | $ 37 | ||
Assets at fair value | ||||
Nuclear decommissioning trusts | 4,290 | 4,331 | ||
Level 1 | ||||
Assets and Liabilities at Fair Values | ||||
Money market funds | 30 | 29 | ||
Southern California Edison | ||||
Assets and Liabilities at Fair Values | ||||
Money market funds | 7 | 8 | ||
Assets at fair value | ||||
Nuclear decommissioning trusts | $ 4,290 | $ 4,331 | $ 4,896 | $ 4,799 |
Liabilities at fair value | ||||
Percentage of equity investments located in the United States (as a percent) | 70.00% | 70.00% | ||
Collateralized mortgage obligations and other asset backed securities | $ 101 | $ 111 | ||
Payables, net, related to investments | 8 | 24 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | ||||
Assets at fair value | ||||
Derivative contracts | 0 | 0 | ||
Other | 28 | 28 | ||
Nuclear decommissioning trusts | 2,440 | 2,498 | ||
Total assets | 2,468 | 2,526 | ||
Liabilities at fair value | ||||
Derivative contracts | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net assets (liabilities) | 2,468 | 2,526 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 1,464 | 1,460 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed income | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 907 | 947 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 69 | 91 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | ||||
Assets at fair value | ||||
Derivative contracts | 0 | 0 | ||
Other | 0 | 0 | ||
Nuclear decommissioning trusts | 1,858 | 1,857 | ||
Total assets | 1,858 | 1,857 | ||
Liabilities at fair value | ||||
Derivative contracts | 21 | 22 | ||
Total liabilities | 21 | 22 | ||
Net assets (liabilities) | 1,837 | 1,835 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Stocks | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Fixed income | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 1,810 | 1,776 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 48 | 81 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | ||||
Assets at fair value | ||||
Derivative contracts | 143 | 163 | ||
Other | 0 | 0 | ||
Nuclear decommissioning trusts | 0 | 0 | ||
Total assets | 143 | 163 | ||
Liabilities at fair value | ||||
Derivative contracts | 1,356 | 1,311 | ||
Total liabilities | 1,356 | 1,311 | ||
Net assets (liabilities) | (1,213) | (1,148) | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Fixed income | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in the consolidated balance sheets | ||||
Assets at fair value | ||||
Derivative contracts | 0 | 0 | ||
Other | 0 | 0 | ||
Nuclear decommissioning trusts | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities at fair value | ||||
Derivative contracts | (11) | (15) | ||
Total liabilities | (11) | (15) | ||
Net assets (liabilities) | 11 | 15 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in the consolidated balance sheets | Stocks | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in the consolidated balance sheets | Fixed income | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Gross amounts offset in the consolidated balance sheets | Short-term investments, primarily cash equivalents | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 0 | 0 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | ||||
Assets at fair value | ||||
Derivative contracts | 143 | 163 | ||
Other | 28 | 28 | ||
Nuclear decommissioning trusts | 4,298 | 4,355 | ||
Total assets | 4,469 | 4,546 | ||
Liabilities at fair value | ||||
Derivative contracts | 1,366 | 1,318 | ||
Total liabilities | 1,366 | 1,318 | ||
Net assets (liabilities) | 3,103 | 3,228 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Stocks | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 1,464 | 1,460 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Fixed income | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | 2,717 | 2,723 | ||
Southern California Edison | Fair Value, Measurements, Recurring | Total | Short-term investments, primarily cash equivalents | ||||
Assets at fair value | ||||
Nuclear decommissioning trusts | $ 117 | $ 172 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Disclosures Level 3 [Roll Forward] | ||
Fair value of net liabilities at beginning of period | $ (1,148) | $ (902) |
Total realized/unrealized gains (losses): | ||
Included in regulatory assets and liabilities | (65) | (74) |
Fair value of net liabilities at end of period | (1,213) | (976) |
Change during the period in unrealized losses related to assets and liabilities held at the end of the period | $ (84) | $ (96) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Southern California Edison - Level 3 $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)$ / MWh$ / MMBTUMW | Dec. 31, 2015USD ($)$ / MWh$ / MMBTUMW | |
Congestion revenue rights | Market simulation model and auction prices | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 136 | $ 152 |
Fair Value, Liabilities | $ | $ 0 | $ 0 |
Congestion revenue rights | Market simulation model and auction prices | Load Forecast | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, power units (in megawatts) | MW | 6,289 | 6,289 |
Congestion revenue rights | Market simulation model and auction prices | Load Forecast | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, power units (in megawatts) | MW | 24,349 | 24,349 |
Congestion revenue rights | Market simulation model and auction prices | Power Prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 0 | 0 |
Congestion revenue rights | Market simulation model and auction prices | Power Prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 110.44 | 110.44 |
Congestion revenue rights | Market simulation model and auction prices | Gas Prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | $ / MMBTU | 1.98 | 1.98 |
Congestion revenue rights | Market simulation model and auction prices | Gas Prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | $ / MMBTU | 5.72 | 5.72 |
Tolling | Option model | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 7 | $ 10 |
Fair Value, Liabilities | $ | $ 1,329 | $ 1,297 |
Tolling | Option model | Power Prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 17.67 | 24.15 |
Expected volatility rate (as a percent) | 26.00% | 26.00% |
Tolling | Option model | Power Prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 47.29 | 46.93 |
Expected volatility rate (as a percent) | 86.00% | 38.00% |
Tolling | Option model | Power Prices | Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 33 | 34.80 |
Expected volatility rate (as a percent) | 40.00% | 30.00% |
Tolling | Option model | Gas Prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate (as a percent) | 16.00% | 15.00% |
Tolling | Option model | Gas Prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate (as a percent) | 46.00% | 58.00% |
Tolling | Option model | Gas Prices | Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate (as a percent) | 30.00% | 20.00% |
Fair Value Measurements (Fair45
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 11,538 | $ 11,259 |
Fair Value | 13,109 | 12,252 |
Southern California Edison | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 10,501 | 10,616 |
Fair Value | $ 12,045 | $ 11,592 |
Debt and Credit Agreements (Det
Debt and Credit Agreements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Short-term debt | $ 363,000,000 | $ 695,000,000 |
Southern California Edison | ||
Debt Instrument [Line Items] | ||
Short-term debt | 101,000,000 | $ 49,000,000 |
Edison International Parent and Other | Credit Facility July 2020 | ||
Debt Instrument [Line Items] | ||
Commitment | $ 1,250,000,000 | |
Weighted average interest rate (percentage) | 0.69% | 0.78% |
Short-term debt | $ 262,000,000 | $ 646,000,000 |
Commercial paper | Southern California Edison | Credit Facility July 2020 | ||
Debt Instrument [Line Items] | ||
Commitment | 2,750,000,000 | |
Outstanding borrowings | $ 101,000,000 | $ 49,000,000 |
Weighted average interest rate (percentage) | 0.45% | 0.51% |
Letters of credit | Southern California Edison | Credit Facility July 2020 | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 94,000,000 | |
Letters of credit expiration period | 12 months | |
Senior Notes | 2.95% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Issuance of debt | $ 400,000,000 | |
Stated interest rate | 2.95% |
Derivative Instruments (Additio
Derivative Instruments (Additional Disclosures) (Details) - Southern California Edison - Electric Utility - Economic hedges - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivatives | |||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 50,000,000 | $ 38,000,000 | |
Collateral already posted | 12,000,000 | $ 0 | |
Potential amount of collateral to be posted if contingencies triggered | 31,000,000 | ||
Realized losses | (27,000,000) | $ (36,000,000) | |
Unrealized losses | (64,000,000) | $ (69,000,000) | |
Payables | |||
Derivatives | |||
Potential amount of collateral to be posted if contingencies triggered | $ 3,000,000 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | $ 65,000,000 | $ 79,000,000 |
Long-Term, Derivative Assets | 78,000,000 | 84,000,000 |
Short-Term, Derivative Liabilities | 232,000,000 | 218,000,000 |
Long-Term, Derivative Liabilities | 1,136,000,000 | 1,100,000,000 |
Southern California Edison | ||
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | 65,000,000 | 79,000,000 |
Long-Term, Derivative Assets | 78,000,000 | 84,000,000 |
Short-Term, Derivative Liabilities | 232,000,000 | 218,000,000 |
Long-Term, Derivative Liabilities | 1,134,000,000 | 1,100,000,000 |
Southern California Edison | Electric Utility | Gross amounts recognized | ||
Derivatives | ||
Collateral already posted | 12,000,000 | 0 |
Southern California Edison | Commodity Contracts | Electric Utility | ||
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | 65,000,000 | 79,000,000 |
Long-Term, Derivative Assets | 78,000,000 | 84,000,000 |
Derivative Assets, Total | 143,000,000 | 163,000,000 |
Short-Term, Derivative Liabilities | 232,000,000 | 218,000,000 |
Long-Term, Derivative Liabilities | 1,134,000,000 | 1,100,000,000 |
Derivative Liabilities, Total | 1,366,000,000 | 1,318,000,000 |
Net Liability | 1,223,000,000 | 1,155,000,000 |
Southern California Edison | Commodity Contracts | Electric Utility | Gross amounts recognized | ||
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | 66,000,000 | 81,000,000 |
Long-Term, Derivative Assets | 78,000,000 | 84,000,000 |
Derivative Assets, Total | 144,000,000 | 165,000,000 |
Short-Term, Derivative Liabilities | 244,000,000 | 235,000,000 |
Long-Term, Derivative Liabilities | 1,134,000,000 | 1,100,000,000 |
Derivative Liabilities, Total | 1,378,000,000 | 1,335,000,000 |
Net Liability | 1,234,000,000 | 1,170,000,000 |
Southern California Edison | Commodity Contracts | Electric Utility | Gross amounts offset in the consolidated balance sheets | ||
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | (1,000,000) | (2,000,000) |
Long-Term, Derivative Assets | 0 | 0 |
Derivative Assets, Total | (1,000,000) | (2,000,000) |
Short-Term, Derivative Liabilities | (1,000,000) | (2,000,000) |
Long-Term, Derivative Liabilities | 0 | 0 |
Derivative Liabilities, Total | (1,000,000) | (2,000,000) |
Net Liability | 0 | 0 |
Southern California Edison | Commodity Contracts | Electric Utility | Cash collateral posted | ||
Fair Value of Derivative Instruments | ||
Short-Term, Derivative Assets | 0 | 0 |
Long-Term, Derivative Assets | 0 | 0 |
Derivative Assets, Total | 0 | 0 |
Short-Term, Derivative Liabilities | (11,000,000) | (15,000,000) |
Long-Term, Derivative Liabilities | 0 | 0 |
Derivative Liabilities, Total | (11,000,000) | (15,000,000) |
Net Liability | (11,000,000) | (15,000,000) |
Other current assets | Southern California Edison | Commodity Contracts | ||
Derivatives | ||
Collateral already posted | $ 25,000,000 | $ 31,000,000 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Economic hedges GWh in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016BcfeGWh | Dec. 31, 2015BcfeGWh | |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 4,842 | 6,221 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 17 | 32 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 96,182 | 109,740 |
Tolling arrangements (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 68,331 | 70,663 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Effective Tax Rate | ||
Income from continuing operations before income taxes | $ 333 | $ 424 |
Provision for income tax at federal statutory rate of 35% | 117 | 148 |
State tax, net of federal benefit | 6 | 11 |
Property-related | (79) | (60) |
Change related to uncertain tax positions | (1) | 15 |
Other | (5) | (8) |
Total income tax expense from continuing operations | $ 38 | $ 106 |
Effective tax rate | 11.40% | 25.00% |
Federal statutory rate | 35.00% | |
Southern California Edison | ||
Effective Tax Rate | ||
Income from continuing operations before income taxes | $ 367 | $ 440 |
Provision for income tax at federal statutory rate of 35% | 128 | 154 |
State tax, net of federal benefit | 9 | 14 |
Property-related | (79) | (60) |
Change related to uncertain tax positions | (1) | 10 |
Other | (7) | (11) |
Total income tax expense from continuing operations | $ 50 | $ 107 |
Effective tax rate | 13.60% | 24.30% |
Federal statutory rate | 35.00% |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - IRS Examination - Disallowance of Repair Allowance Deduction - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Tax Years 2010 to 2012 | ||
Income Tax Disclosure [Line Items] | ||
Tax liability | $ 94 | |
Southern California Edison | Tax Years 2007 to 2009 | ||
Income Tax Disclosure [Line Items] | ||
Tax liability | $ 64 | |
Southern California Edison | Tax Years 2010 to 2012 | ||
Income Tax Disclosure [Line Items] | ||
Tax liability | $ 100 | |
Southern California Edison | Tax Years 2010 to 2012, Federal [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax liability | $ (9) |
Compensation and Benefit Plan52
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension Plans | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 39 | $ 35 |
Interest cost | 44 | 41 |
Expected return on plan assets | (56) | (57) |
Amortization of prior service cost | 1 | 1 |
Amortization of net loss | 9 | 9 |
Expense under accounting standards | 37 | 29 |
Regulatory adjustment | (9) | (1) |
Total expense recognized | 28 | 28 |
Net loss reclassified | 3 | 3 |
Postretirement Benefits Other Than Pensions | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 10 | 12 |
Interest cost | 26 | 29 |
Expected return on plan assets | (28) | (28) |
Amortization of prior service cost | (1) | (3) |
Amortization of net loss | 0 | 6 |
Expense under accounting standards | 7 | 16 |
Southern California Edison | Pension Plans | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 38 | 35 |
Interest cost | 41 | 38 |
Expected return on plan assets | (53) | (53) |
Amortization of prior service cost | 1 | 1 |
Amortization of net loss | 8 | 7 |
Expense under accounting standards | 35 | 28 |
Regulatory adjustment | (9) | (1) |
Total expense recognized | 26 | 27 |
Net loss reclassified | 2 | 2 |
Southern California Edison | Postretirement Benefits Other Than Pensions | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 10 | 12 |
Interest cost | 26 | 28 |
Expected return on plan assets | (28) | (28) |
Amortization of prior service cost | (1) | (3) |
Amortization of net loss | 0 | 6 |
Expense under accounting standards | $ 7 | $ 15 |
Compensation and Benefit Plan53
Compensation and Benefit Plans (Workforce Reduction) (Details) - Southern California Edison - Employee severance $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2016 | $ 22 |
Additions | 5 |
Payments | (15) |
Balance at March 31, 2016 | $ 12 |
Compensation and Benefit Plan54
Compensation and Benefit Plans (Textual) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Employer contributions | $ 5 |
Estimated future contributions in remainder of year | 115 |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Employer contributions | 7 |
Estimated future contributions in remainder of year | 26 |
Southern California Edison | Pension Plans | |
Pension and Other Postretirement Benefits | |
Employer contributions | 1 |
Estimated future contributions in remainder of year | $ 94 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | $ 2,817 | $ 2,917 |
Fair Value | 4,290 | 4,331 |
Stocks | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 311 | 304 |
Fair Value | 1,464 | 1,460 |
Municipal bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 736 | 691 |
Fair Value | 894 | 840 |
U.S. government and agency securities | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 1,002 | 1,070 |
Fair Value | 1,092 | 1,128 |
Corporate bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 662 | 708 |
Fair Value | 731 | 755 |
Short-term investments and receivables/payables | ||
Fair Value Disclosures: | ||
Repurchase agreement | 8 | 81 |
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 106 | 144 |
Fair Value | $ 109 | $ 148 |
Investments (Summary of Changes
Investments (Summary of Changes in Fair Value of the Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary Of Changes In The Fair Value [Roll Forward] | ||
Balance at beginning of period | $ 4,331 | |
Balance at end of period | 4,290 | |
Southern California Edison | ||
Summary Of Changes In The Fair Value [Roll Forward] | ||
Balance at beginning of period | 4,331 | $ 4,799 |
Gross realized gains | 17 | 27 |
Gross realized losses | (3) | (2) |
Unrealized gains, net | 59 | 44 |
Other-than-temporary impairments | (7) | (4) |
Interest and dividends | 29 | 28 |
Contributions | 0 | 7 |
Income taxes | (18) | 0 |
Decommissioning disbursements | (116) | 0 |
Administrative expenses and other | (2) | (3) |
Balance at end of period | $ 4,290 | $ 4,896 |
Investments (Textual) (Details)
Investments (Textual) (Details) - Southern California Edison - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Other Investments [Line Items] | ||
Unrealized holding gains, net of losses | $ 1,500 | $ 1,400 |
Deferred income taxes related to unrealized gains | 357 | |
Nuclear decommissioning trusts | $ 3,900 |
Regulatory Assets and Liabili58
Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Regulatory Assets | ||
Regulatory Assets, Current | $ 538 | $ 560 |
Regulatory Asset, Long-term | 7,628 | 7,512 |
Regulatory Liabilities | ||
Regulatory Liabilities, Current | 1,157 | 1,128 |
Regulatory Liabilities, Long-term | 5,920 | 5,676 |
Environmental Restoration Costs | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 131 | 129 |
Southern California Edison | ||
Regulatory Assets | ||
Regulatory Assets, Current | 538 | 560 |
Regulatory Asset, Long-term | 7,628 | 7,512 |
Total Regulatory Assets | 8,166 | 8,072 |
Regulatory Liabilities | ||
Regulatory Liabilities, Current | 1,157 | 1,128 |
Regulatory Liabilities, Long-term | 5,920 | 5,676 |
Total Regulatory Liabilities | 7,077 | 6,804 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Assets | ||
Regulatory Assets, Current | 329 | 382 |
Regulatory Asset, Long-term | 39 | 36 |
Southern California Edison | Energy derivatives | ||
Regulatory Assets | ||
Regulatory Assets, Current | 182 | 159 |
Regulatory Asset, Long-term | 1,066 | 1,027 |
Southern California Edison | Other | ||
Regulatory Assets | ||
Regulatory Assets, Current | 27 | 19 |
Regulatory Asset, Long-term | 282 | 288 |
Regulatory Liabilities | ||
Regulatory Liabilities, Current | 22 | 22 |
Regulatory Liabilities, Long-term | 56 | 79 |
Southern California Edison | Deferred income taxes, net | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 3,920 | 3,757 |
Southern California Edison | Pensions and other postretirement benefits | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 842 | 849 |
Southern California Edison | Unamortized investments, net | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 169 | 182 |
Southern California Edison | San Onofre | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 982 | 1,043 |
Southern California Edison | Unamortized loss on reacquired debt | ||
Regulatory Assets | ||
Regulatory Asset, Long-term | 197 | 201 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Liabilities | ||
Regulatory Liabilities, Current | 1,135 | 1,106 |
Regulatory Liabilities, Long-term | 1,352 | 1,314 |
Southern California Edison | Costs of removal | ||
Regulatory Liabilities | ||
Regulatory Liabilities, Long-term | 2,822 | 2,781 |
Southern California Edison | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities | ||
Regulatory Liabilities, Long-term | $ 1,690 | $ 1,502 |
Regulatory Assets and Liabili59
Regulatory Assets and Liabilities (Regulatory Balancing Accounts) (Details) - Southern California Edison - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Regulatory balancing accounts | Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Net liability | $ (364) | $ (439) |
Regulatory balancing accounts | New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Net liability | (189) | (171) |
Refunds of excess revenue | Significant Components | ||
Regulatory Assets and Liabilities | ||
Net liability | (2,119) | (2,002) |
Refunds of excess revenue | Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Net liability | (817) | (683) |
Refunds of excess revenue | Tax accounting memorandum account and pole loading balancing account | ||
Regulatory Assets and Liabilities | ||
Net liability | (278) | (248) |
Refunds of excess revenue | Base rate recovery balancing account | ||
Regulatory Assets and Liabilities | ||
Net liability | (234) | (319) |
Refunds of excess revenue | Greenhouse gas auction revenue | ||
Regulatory Assets and Liabilities | ||
Net liability | (156) | (75) |
Refunds of excess revenue | FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net liability | 43 | 74 |
Refunds of excess revenue | Generator settlements | ||
Regulatory Assets and Liabilities | ||
Net liability | 0 | (4) |
Refunds of excess revenue | Other | ||
Regulatory Assets and Liabilities | ||
Net liability | $ (124) | $ (137) |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 31, 2016USD ($)siteinvoices | Apr. 30, 2016USD ($) | Mar. 31, 2016USD ($)siteinvoices | Oct. 31, 2013USD ($) | Jun. 30, 2010USD ($) | Mar. 31, 2016USD ($)siteinvoices | Dec. 31, 2012USD ($) | Jun. 01, 2015USD ($) |
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damages sought | $ 39,900,000 | |||||||
Gain (Loss) Related to Litigation Settlement | $ 74,500,000 | 74,500,000 | $ 74,500,000 | |||||
Nuclear Insurance | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Federal limit on public liability claims from nuclear incident, approximate | 13,500,000,000 | |||||||
Southern California Edison | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damages sought | $ 112,000,000 | |||||||
Minimum liability for environmental remediation for immaterial sites | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | |||||
Identified material sites for environmental remediation (in number of sites) | site | 19 | 19 | 19 | |||||
Minimum costs to be Identified Site | $ 1,000,000 | |||||||
Minimum liability for environmental remediation for material sites | $ 133,000,000 | $ 133,000,000 | $ 133,000,000 | |||||
Immaterial sites for environmental remediation (in number of sites) | site | 39 | |||||||
Environmental remediation liability | $ 136,000,000 | 136,000,000 | 136,000,000 | |||||
Regulatory assets related to environmental remediation | 131,000,000 | 131,000,000 | 131,000,000 | |||||
Portion of recorded liability recoverable from incentive mechanism | $ 49,000,000 | |||||||
Percentage of environmental remediation costs recoverable through an incentive mechanism (as a percent) | 90.00% | |||||||
Liability incurred at majority of the remaining sites through customer rates | $ 82,000,000 | 82,000,000 | 82,000,000 | |||||
Environmental remediation costs to be recovered (as a percent) | 100.00% | |||||||
Amount that cleanup costs could exceed recorded liability for identified material sites | 165,000,000 | |||||||
Amount that cleanup costs could exceed recorded liability for immaterial sites | $ 7,000,000 | |||||||
Maximum expected period for cleanup of identified sites (in years) | 30 years | |||||||
Remediation cost estimates (period) | 5 years | |||||||
Expected annual environmental remediation costs, low end of range | $ 7,000,000 | |||||||
Expected annual environmental remediation costs, high end of range | 23,000,000 | |||||||
Environmental remediation costs | 1,000,000 | |||||||
Insurance coverage for wildfire liabilities Limit | $ 610,000,000 | |||||||
Self insurance retention per wildfire occurrence | $ 10,000,000 | |||||||
Additional Coverage for Certain Wildfire Liabilities | $ 390,000,000 | 390,000,000 | 390,000,000 | |||||
Threshold for wildfire claims (new lines for additional coverage) | 610,000,000 | 610,000,000 | 610,000,000 | |||||
Southern California Edison | San Onofre | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Minimum liability for environmental remediation for material sites | $ 80,000,000 | $ 80,000,000 | $ 80,000,000 | |||||
Southern California Edison | San Onofre | Mitsubishi Heavy Industries Ltd | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damages sought | $ 4,000,000,000 | |||||||
Number of invoices for reimbursement | invoices | 7 | 7 | 7 | |||||
Invoiced amount for reimbursement | $ 149,000,000 | $ 149,000,000 | $ 149,000,000 | |||||
Invoiced amount paid for reimbursement | $ 45,000,000 | |||||||
Share of invoice paid | $ 35,000,000 | |||||||
Southern California Edison | San Onofre | Mitsubishi Heavy Industries Ltd | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Ratepayer allocation of recovery from recoveries | 50.00% | |||||||
Entity allocation of recovery from recoveries | 50.00% | |||||||
Ratepayer allocation of recovery from recoveries, initial amount of settlement | $ 282,000,000 | |||||||
Southern California Edison | San Onofre | Replacement Steam Generators | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Warranty period | 20 years | |||||||
Southern California Edison | Subsequent Event | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damage award | $ 124,000,000 | |||||||
Southern California Edison | Nuclear Insurance | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Limit on assessment of retrospective premium adjustments, per year, approximate | $ 45,000,000 | |||||||
Maximum assessment per each nuclear incident | 255,000,000 | |||||||
Maximum yearly assessment per nuclear incident | 38,000,000 | |||||||
Mitsubishi Heavy Industries Ltd | San Onofre | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Maximum liability per purchase agreement for damages | $ 138,000,000 | $ 138,000,000 | 138,000,000 | |||||
Asserted counterclaim | $ 41,000,000 | |||||||
SCE and other owners of San Onofre and Palo Verde | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damages sought | $ 142,000,000 | |||||||
SCE and other owners of San Onofre and Palo Verde | Subsequent Event | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Damage award | $ 162,000,000 | |||||||
SCE and other owners of San Onofre and Palo Verde | Nuclear Insurance | San Onofre and Palo Verde | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||||
Loss limit, property damage insurance, federal minimum requirement | $ 1,060,000,000 |
Preferred and Preference Stoc61
Preferred and Preference Stock of Utility (Details) - Southern California Edison $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Series K Preferred Stock | |
Preferred and Preference Stock of Utility | |
Preferred stock issued | $ 300 |
Preference stock dividend rate (percent) | 5.45% |
Shares issued (in shares) | shares | 120,004 |
Liquidation value (in dollars per share) | $ / shares | $ 2,500 |
Series D Preferred Stock | |
Preferred and Preference Stock of Utility | |
Redemption of preference stock | $ 125 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Loss | ||
Beginning balance | $ (56) | |
Other comprehensive income (loss), net of tax | 2 | $ (1) |
Ending Balance | (54) | |
Accumulated Defined Benefit Plans Adjustment | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss | ||
Beginning balance | (56) | (58) |
Other comprehensive loss before reclassifications | 0 | (3) |
Reclassified from accumulated other comprehensive income | 2 | 2 |
Other comprehensive income (loss), net of tax | 2 | (1) |
Ending Balance | (54) | (59) |
Southern California Edison | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss | ||
Beginning balance | (22) | |
Other comprehensive income (loss), net of tax | 1 | 1 |
Ending Balance | (21) | |
Southern California Edison | Accumulated Defined Benefit Plans Adjustment | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss | ||
Beginning balance | (22) | (28) |
Other comprehensive loss before reclassifications | 0 | 0 |
Reclassified from accumulated other comprehensive income | 1 | 1 |
Other comprehensive income (loss), net of tax | 1 | 1 |
Ending Balance | $ (21) | $ (27) |
Interest and Other Income and63
Interest and Other Income and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
SCE interest and other income: | ||
Interest and other income | $ 31 | $ 39 |
SCE other expenses: | ||
Total Edison International other expenses | (6) | (10) |
Southern California Edison | ||
SCE interest and other income: | ||
Equity allowance for funds used during construction | 22 | 21 |
Increase in cash surrender value of life insurance policies | 7 | 10 |
Interest income | 0 | 1 |
Other | 2 | 1 |
Total SCE interest and other income | 31 | 33 |
Interest and other income | 31 | 33 |
SCE other expenses: | ||
Civic, political and related activities and donations | (5) | (5) |
Other | 0 | (2) |
Total SCE other expenses | (5) | (7) |
Total Edison International other expenses | (5) | (7) |
Edison International Parent and Other | ||
SCE interest and other income: | ||
Other income of Edison International Parent and Other | 0 | 6 |
SCE other expenses: | ||
Other expense of Edison International Parent and Other | $ (1) | $ (3) |
Supplemental Cash Flows Infor64
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | $ 158 | $ 152 |
Tax payments (refunds), net | 2 | 0 |
Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 156 | 136 |
Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 1 | 3 |
Southern California Edison | ||
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | 149 | 144 |
Tax payments (refunds), net | 11 | 32 |
Dividends declared but not paid: | ||
Accrued capital expenditures | 360 | 407 |
Southern California Edison | Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | 0 | 147 |
Southern California Edison | Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid: | $ 1 | $ 3 |