Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 25, 2017 | |
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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Total operating revenue | $ 2,965 | $ 2,777 | $ 5,428 | $ 5,218 |
Purchased power and fuel | 1,175 | 1,064 | 1,959 | 1,858 |
Operation and maintenance | 707 | 721 | 1,303 | 1,350 |
Depreciation, decommissioning and amortization | 512 | 505 | 1,011 | 982 |
Property and other taxes | 86 | 85 | 186 | 178 |
Impairment and other charges | 16 | 21 | 21 | 21 |
Total operating expenses | 2,496 | 2,396 | 4,480 | 4,389 |
Operating income | 469 | 381 | 948 | 829 |
Interest and other income | 37 | 33 | 70 | 65 |
Interest expense | (159) | (144) | (311) | (284) |
Other expenses | (12) | (11) | (20) | (19) |
Income from continuing operations before income taxes | 335 | 259 | 687 | 591 |
Income tax expense (benefit) | 26 | (51) | (14) | (24) |
Income from continuing operations | 309 | 310 | 701 | 615 |
Income from discontinued operations, net of tax | 0 | (2) | 0 | (1) |
Net income | 309 | 308 | 701 | 614 |
Preferred and preference stock dividend requirements of SCE | 31 | 31 | 62 | 61 |
Other noncontrolling interests | 0 | (3) | (1) | (8) |
Net income attributable to Edison International common shareholders | 278 | 280 | 640 | 561 |
Amounts attributable to Edison International common shareholders: | ||||
Income from continuing operations, net of tax | 278 | 282 | 640 | 562 |
Income from discontinued operations, net of tax | 0 | (2) | 0 | (1) |
Net income attributable to Edison International common shareholders | $ 278 | $ 280 | $ 640 | $ 561 |
Basic earnings per common share attributable to Edison International common shareholders: | ||||
Weighted average common shares outstanding (in shares) | 326 | 326 | 326 | 326 |
Continuing operations (in dollars per share) | $ 0.85 | $ 0.87 | $ 1.96 | $ 1.72 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0 |
Total (in dollars per share) | $ 0.85 | $ 0.86 | $ 1.96 | $ 1.72 |
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) | 329 | 330 | 329 | 330 |
Continuing operations (in dollars per share) | $ 0.85 | $ 0.86 | $ 1.95 | $ 1.70 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0 |
Total (in dollars per share) | 0.85 | 0.85 | 1.95 | 1.70 |
Dividends declared per common share (in dollars per share) | $ 0.5425 | $ 0.4800 | $ 1.0850 | $ 0.96 |
Southern California Edison Company | ||||
Total operating revenue | $ 2,953 | $ 2,768 | $ 5,409 | $ 5,204 |
Purchased power and fuel | 1,175 | 1,064 | 1,959 | 1,858 |
Operation and maintenance | 666 | 687 | 1,237 | 1,290 |
Depreciation, decommissioning and amortization | 510 | 503 | 1,007 | 978 |
Property and other taxes | 85 | 85 | 182 | 176 |
Total operating expenses | 2,436 | 2,339 | 4,385 | 4,302 |
Operating income | 517 | 429 | 1,024 | 902 |
Interest and other income | 36 | 33 | 69 | 65 |
Interest expense | (146) | (134) | (287) | (265) |
Other expenses | (12) | (11) | (19) | (19) |
Income from continuing operations before income taxes | 395 | 317 | 787 | 683 |
Income tax expense (benefit) | 57 | (32) | 69 | 10 |
Net income | 338 | 349 | 718 | 673 |
Preferred and preference stock dividend requirements of SCE | 31 | 31 | 62 | 61 |
Net income attributable to Edison International common shareholders | 307 | 318 | 656 | 612 |
Amounts attributable to Edison International common shareholders: | ||||
Net income attributable to Edison International common shareholders | $ 307 | $ 318 | $ 656 | $ 612 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 309 | $ 308 | $ 701 | $ 614 |
Pension and postretirement benefits other than pensions: | ||||
Amortization of net loss included in net income | 1 | 1 | 3 | 3 |
Other | 0 | 0 | 2 | 0 |
Other comprehensive income, net of tax | 1 | 1 | 5 | 3 |
Comprehensive income | 310 | 309 | 706 | 617 |
Less: Comprehensive income attributable to noncontrolling interests | 31 | 28 | 61 | 53 |
Comprehensive income attributable to Edison International | 279 | 281 | 645 | 564 |
Southern California Edison Company | ||||
Net income | 338 | 349 | 718 | 673 |
Pension and postretirement benefits other than pensions: | ||||
Amortization of net loss included in net income | 1 | 1 | 2 | 2 |
Other | (1) | 0 | 0 | 0 |
Other comprehensive income, net of tax | 0 | 1 | 2 | 2 |
Comprehensive income | $ 338 | $ 350 | $ 720 | $ 675 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 98 | $ 96 |
Receivables, less allowance | 833 | 714 |
Accrued unbilled revenue | 399 | 370 |
Inventory | 235 | 239 |
Derivative assets | 58 | 73 |
Regulatory assets | 634 | 350 |
Other current assets | 289 | 281 |
Total current assets | 2,546 | 2,123 |
Nuclear decommissioning trusts | 4,381 | 4,242 |
Other investments | 87 | 83 |
Total investments | 4,468 | 4,325 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,914 and $9,000 at respective dates | 37,267 | 36,806 |
Nonutility property, plant and equipment, less accumulated depreciation | 245 | 194 |
Total property, plant and equipment | 37,512 | 37,000 |
Regulatory assets | 7,850 | 7,455 |
Other long-term assets | 377 | 416 |
Total long-term assets | 8,227 | 7,871 |
Total assets | 52,753 | 51,319 |
LIABILITIES AND EQUITY | ||
Short-term debt | 566 | 1,307 |
Current portion of long-term debt | 581 | 981 |
Accounts payable | 1,113 | 1,342 |
Accrued taxes | 15 | 50 |
Customer deposits | 275 | 269 |
Derivative liabilities | 190 | 216 |
Regulatory liabilities | 903 | 756 |
Other current liabilities | 959 | 991 |
Total current liabilities | 4,602 | 5,912 |
Long-term debt | 11,662 | 10,175 |
Deferred income taxes and credits | 8,709 | 8,327 |
Derivative liabilities | 869 | 941 |
Pensions and benefits | 1,377 | 1,354 |
Asset retirement obligations | 2,618 | 2,590 |
Regulatory liabilities | 5,961 | 5,726 |
Other deferred credits and other long-term liabilities | 2,143 | 2,102 |
Total deferred credits and other liabilities | 21,677 | 21,040 |
Total liabilities | 37,941 | 37,127 |
Commitments and contingencies (Note 11) | ||
Redeemable noncontrolling interest | 12 | 5 |
Common stock, no par value | 2,515 | 2,505 |
Accumulated other comprehensive loss | (48) | (53) |
Retained earnings | 9,679 | 9,544 |
Total common shareholder's equity | 12,146 | 11,996 |
Noncontrolling interests – preferred and preference stock of SCE | 2,654 | 2,191 |
Total equity | 14,800 | 14,187 |
Total liabilities and equity | 52,753 | 51,319 |
Southern California Edison Company | ||
ASSETS | ||
Cash and cash equivalents | 39 | 39 |
Receivables, less allowance | 816 | 699 |
Accrued unbilled revenue | 399 | 369 |
Inventory | 232 | 239 |
Derivative assets | 58 | 73 |
Regulatory assets | 634 | 350 |
Other current assets | 275 | 262 |
Total current assets | 2,453 | 2,031 |
Nuclear decommissioning trusts | 4,381 | 4,242 |
Other investments | 63 | 50 |
Total investments | 4,444 | 4,292 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,914 and $9,000 at respective dates | 37,267 | 36,806 |
Nonutility property, plant and equipment, less accumulated depreciation | 74 | 75 |
Total property, plant and equipment | 37,341 | 36,881 |
Regulatory assets | 7,850 | 7,455 |
Other long-term assets | 226 | 232 |
Total long-term assets | 8,076 | 7,687 |
Total assets | 52,314 | 50,891 |
LIABILITIES AND EQUITY | ||
Short-term debt | 219 | 769 |
Current portion of long-term debt | 179 | 579 |
Accounts payable | 1,103 | 1,344 |
Accrued taxes | 17 | 45 |
Accrued interest | 206 | 174 |
Customer deposits | 275 | 269 |
Derivative liabilities | 190 | 216 |
Regulatory liabilities | 903 | 756 |
Other current liabilities | 500 | 555 |
Total current liabilities | 3,592 | 4,707 |
Long-term debt | 10,845 | 9,754 |
Deferred income taxes and credits | 10,482 | 9,886 |
Derivative liabilities | 868 | 941 |
Pensions and benefits | 943 | 896 |
Asset retirement obligations | 2,611 | 2,586 |
Regulatory liabilities | 5,961 | 5,726 |
Other deferred credits and other long-term liabilities | 1,817 | 1,912 |
Total deferred credits and other liabilities | 22,682 | 21,947 |
Total liabilities | 37,119 | 36,408 |
Commitments and contingencies (Note 11) | ||
Common stock, no par value | 2,168 | 2,168 |
Additional paid-in capital | 651 | 657 |
Accumulated other comprehensive loss | (18) | (20) |
Retained earnings | 9,674 | 9,433 |
Total common shareholder's equity | 12,475 | 12,238 |
Noncontrolling interests – preferred and preference stock of SCE | 2,720 | 2,245 |
Total equity | 15,195 | 14,483 |
Total liabilities and equity | $ 52,314 | $ 50,891 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables, allowances for uncollectible accounts | $ 58 | $ 62 |
Utility property, plant and equipment, accumulated depreciation | 8,914 | 9,000 |
Nonutility property, plant and equipment, accumulated depreciation | $ 106 | $ 99 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 325,811,206 | 325,811,206 |
Common stock, shares outstanding | 325,811,206 | 325,811,206 |
Southern California Edison Company | ||
Receivables, allowances for uncollectible accounts | $ 57 | $ 61 |
Utility property, plant and equipment, accumulated depreciation | 8,914 | 9,000 |
Nonutility property, plant and equipment, accumulated depreciation | $ 92 | $ 89 |
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 | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 701 | $ 614 |
Less: loss from discontinued operations | 0 | (1) |
Income from continuing operations | 701 | 615 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation, decommissioning and amortization | 1,048 | 1,025 |
Allowance for equity during construction | (41) | (42) |
Impairment and other charges | 21 | 0 |
Deferred income taxes and investment tax credits | (12) | (40) |
Other | 11 | 11 |
Nuclear decommissioning trusts | (73) | (144) |
EME insurance proceeds | 0 | 1 |
Changes in operating assets and liabilities: | ||
Receivables | (115) | (33) |
Inventory | 8 | (41) |
Accounts payable | 34 | 67 |
Prepaid and accrued taxes | (40) | 1 |
Other current assets and liabilities | (113) | (135) |
Derivative assets and liabilities | (19) | 15 |
Regulatory assets and liabilities | 39 | 90 |
Other noncurrent assets and liabilities | (16) | 42 |
Net cash provided by operating activities | 1,433 | 1,432 |
Cash flows from financing activities: | ||
Long-term debt issued or remarketed, net of discount and issuance costs | 1,523 | 397 |
Long-term debt matured | (442) | (41) |
Preference stock issued, net | 463 | 294 |
Preference stock redeemed | 0 | (125) |
Short-term debt financing, net | (742) | 106 |
Settlements of stock-based compensation, net | (152) | (61) |
Dividends to noncontrolling interests | (62) | (61) |
Dividends paid | (354) | (313) |
Other | (11) | 3 |
Net cash provided by financing activities | 223 | 199 |
Cash flows from investing activities: | ||
Capital expenditures | (1,749) | (1,828) |
Proceeds from sale of nuclear decommissioning trust investments | 3,046 | 1,391 |
Purchases of nuclear decommissioning trust investments | (2,973) | (1,247) |
Other | 22 | 3 |
Net cash used in investing activities | (1,654) | (1,681) |
Net increase (decrease) in cash and cash equivalents | 2 | (50) |
Cash and cash equivalents at beginning of period | 96 | 161 |
Cash and cash equivalents at end of period | 98 | 111 |
Southern California Edison Company | ||
Cash flows from operating activities: | ||
Net income | 718 | 673 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation, decommissioning and amortization | 1,042 | 1,017 |
Allowance for equity during construction | (41) | (42) |
Deferred income taxes and investment tax credits | 193 | 0 |
Other | 4 | 5 |
Nuclear decommissioning trusts | (73) | (144) |
Changes in operating assets and liabilities: | ||
Receivables | (118) | (59) |
Inventory | 8 | 2 |
Accounts payable | 22 | 73 |
Prepaid and accrued taxes | (37) | (13) |
Other current assets and liabilities | (96) | (123) |
Derivative assets and liabilities | (19) | 15 |
Regulatory assets and liabilities | 39 | 90 |
Other noncurrent assets and liabilities | (121) | 22 |
Net cash provided by operating activities | 1,521 | 1,516 |
Cash flows from financing activities: | ||
Long-term debt issued or remarketed, net of discount and issuance costs | 1,126 | 0 |
Long-term debt matured | (441) | (41) |
Preference stock issued, net | 463 | 294 |
Preference stock redeemed | 0 | (125) |
Short-term debt financing, net | (550) | 457 |
Dividends paid | (444) | (401) |
Other | (53) | (35) |
Net cash provided by financing activities | 101 | 149 |
Cash flows from investing activities: | ||
Capital expenditures | (1,712) | (1,822) |
Proceeds from sale of nuclear decommissioning trust investments | 3,046 | 1,391 |
Purchases of nuclear decommissioning trust investments | (2,973) | (1,247) |
Other | 17 | 7 |
Net cash used in investing activities | (1,622) | (1,671) |
Net increase (decrease) in cash and cash equivalents | 0 | (6) |
Cash and cash equivalents at beginning of period | 39 | 26 |
Cash and cash equivalents at end of period | $ 39 | $ 20 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Discounts and issuance costs of long term debt | $ 12 | $ 3 |
Southern California Edison Company | ||
Discounts and issuance costs of long term debt | $ 9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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, Inc., a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar for commercial and industrial customers. Such business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its competitive subsidiaries. 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 Edison International's and SCE's combined Annual Report on Form 10-K for the year-ended December 31, 2016 (the "2016 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2016 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2017 are not necessarily indicative of the operating results for the full year. The December 31, 2016 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. During the fourth quarter of 2016, Edison International and SCE early adopted an accounting standard for share-based payments using the modified retrospective approach, effective January 1, 2016. Prior year financial statements have been updated to reflect the modified retrospective application of this accounting standard. For further information, see Note 1 and Note 18 of "Notes to Consolidated Financial Statements" included in the 2016 Form 10-K and Note 2 and Note 7 of this Form 10-Q. Cash Equivalents Cash equivalents includes 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) June 30, December 31, 2016 June 30, December 31, 2016 Money market funds $ 41 $ 41 $ 18 $ 18 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) June 30, December 31, 2016 June 30, December 31, 2016 Book balances reclassified to accounts payable $ 54 $ 138 $ 54 $ 136 Goodwill Edison International assesses goodwill through annual goodwill impairment tests, at the reporting unit level as of October 1st of each year. Edison International updates these tests between annual tests if events occur or circumstances change such that it is more likely than not that the fair value of a reporting unit is below its carrying value. In connection with a strategic review of the Edison Energy Group's competitive businesses, Edison International evaluated the recoverability of goodwill and recorded an impairment of SoCore Energy's goodwill totaling $16.5 million ( $10 million after-tax) in the second quarter of 2017. 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 June 30, Six months ended June 30, (in millions, except per-share amounts) 2017 2016 2017 2016 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 282 $ 640 $ 562 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 278 $ 282 $ 640 $ 562 Weighted average common shares outstanding 326 326 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.87 $ 1.96 $ 1.72 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 282 $ 640 $ 562 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 278 $ 282 $ 640 $ 562 Income impact of assumed conversions — — — — Income from continuing operations available to common shareholders and assumed conversions $ 278 $ 282 $ 640 $ 562 Weighted average common shares outstanding 326 326 326 326 Incremental shares from assumed conversions 3 4 3 4 Adjusted weighted average shares – diluted 329 330 329 330 Diluted earnings per share – continuing operations $ 0.85 $ 0.86 $ 1.95 $ 1.70 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 1,327,310 and 42,890 shares of common stock for the three months ended June 30, 2017 and 2016 , respectively, and 1,370,200 and 47,861 shares for the six months ended June 30, 2017 and 2016, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. New Accounting Guidance Accounting Guidance Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on revenue recognition and further amended the standard in 2016 and 2017. 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. This standard will be adopted on January 1, 2018. Edison International and SCE have completed the preliminary phases of their assessment of the impact on the consolidated financial statements and do not believe the adoption of this standard will have a material impact on the financial position or results of operations. For the six months ended June 30, 2017, approximately 95% of total operating revenue arises from SCE's tariff offerings that provide electricity to customers. For such arrangements, revenue from contracts with customers will be equivalent to the electricity supplied and billed in that period (including estimated billings). As such, there will not be a change in the timing or pattern of revenue recognition for such sales. This standard will require enhanced disclosures, including a disaggregation of revenue from contracts with customers. Edison International and SCE plan to disaggregate customer contract revenue between revenue from earnings activities and revenue from cost-recovery activities. Some revenue arrangements, such as alternative revenue programs, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenues recognized under the new standard on the Edison International and SCE consolidated financial statements. Edison International and SCE anticipate adopting the standard using the modified retrospective application which means that Edison International and SCE would recognize any cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2018. In January 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. In February 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 need to recognize leases on the balance sheet as a right-of-use asset and a related lease liability, and classify the leases as either operating or finance. 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 higher initial expense pattern due to the interest component. SCE, as a regulated entity, is permitted to continue to have straight-line expense for finance leases, assuming the rate recovery is based upon current payments. Lessees can elect to exclude from the balance sheet short-term contracts one year or less. This guidance is effective January 1, 2019. Early adoption is permitted, but Edison International and SCE do not expect to elect early adoption. The adoption of this standard will increase right-of-use assets and lease liabilities in Edison International's and SCE's consolidated balance sheets. Edison International and SCE are currently evaluating the impact this standard will have on the results of operations and statements of cash flows and lease disclosures. The FASB also issued an accounting standards update related to the impairment of financial instruments, effective January 1, 2020. The new guidance provides an impairment model, known as the current expected credit loss model, which is based on expected credit losses rather than incurred losses. Edison International and SCE are currently evaluating the impact of this new guidance. The FASB also issued accounting standards updates related to the presentation and classification of certain cash receipts and payments in the statement of cash flows, including a change to the amount of cash, cash equivalents, and restricted cash explained when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective January 1, 2018 and requires retrospective application. Edison International and SCE are currently evaluating the impact of this new guidance. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment. This accounting standards update changes the procedural steps in applying the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to the goodwill impairment test beginning in 2020. In March 2017, the FASB issued an accounting standards update which amends the current requirements related to the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's financial position or results of operations, but will result in the separate presentation of service costs as an operating expense and non-service costs within other income and expense. The new standards update is effective on January 1, 2018. It is required to be applied on a retrospective basis for the presentation of the service cost component and the other components of net benefit cost and on a prospective basis for the capitalization of only the service cost component of net benefit cost. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 : 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, 2016 $ 2,505 $ (53 ) $ 9,544 $ 11,996 $ 2,191 $ 14,187 Net income — — 640 640 62 702 Other comprehensive income — 5 — 5 — 5 Common stock dividends declared ($1.0850 per share) — — (354 ) (354 ) — (354 ) Dividends to noncontrolling interests — — — — (62 ) (62 ) Stock-based compensation — — (151 ) (151 ) — (151 ) Non-cash stock-based compensation 10 — — 10 — 10 Issuance of preference stock — — — — 463 463 Balance at June 30, 2017 $ 2,515 $ (48 ) $ 9,679 $ 12,146 $ 2,654 $ 14,800 The following table provides Edison International's changes in equity for the six months ended June 30, 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 — — 561 1 561 61 622 Other comprehensive income — 3 — 3 — 3 Common stock dividends declared ($0.9600 per share) — — (313 ) (313 ) — (313 ) Dividends to noncontrolling interests — — — — (61 ) (61 ) Stock-based compensation — — (18 ) 1 (18 ) — (18 ) Non-cash stock-based compensation 12 — — 12 — 12 Issuance of preference stock — — — — 294 294 Redemption of preference stock — — (2 ) (2 ) (123 ) (125 ) Balance at June 30, 2016 $ 2,496 $ (53 ) $ 9,168 $ 11,611 $ 2,191 $ 13,802 1 Edison International adopted an accounting standard related to share-based payments during the fourth quarter of 2016, effective January 1, 2016 . See Note 1 for further information. The table above reflects the adoption of this standard on January 1, 2016 . Net income and stock-based compensation (as previously reported) were $546 million and $(60) million , respectively, for the six months ended June 30, 2016 . The following table provides SCE's changes in equity for the six months ended June 30, 2017 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2016 $ 2,168 $ 657 $ (20 ) $ 9,433 $ 2,245 $ 14,483 Net income — — — 718 — 718 Other comprehensive income — — 2 — — 2 Dividends declared on common stock — — — (382 ) — (382 ) Dividends declared on preferred and preference stock — — — (62 ) — (62 ) Stock-based compensation — — — (33 ) — (33 ) Non-cash stock-based compensation — 6 — — — 6 Issuance of preference stock — (12 ) — — 475 463 Balance at June 30, 2017 $ 2,168 $ 651 $ (18 ) $ 9,674 $ 2,720 $ 15,195 The following table provides SCE's changes in equity for the six months ended June 30, 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 — — — 673 1 — 673 Other comprehensive income — — 2 — — 2 Dividends declared on common stock — — — (340 ) — (340 ) Dividends declared on preferred and preference stock — — — (61 ) — (61 ) Stock-based compensation — — — (34 ) 1 — (34 ) Non-cash stock-based compensation — 6 — — — 6 Issuance of preference stock — (6 ) — — 300 294 Redemption of preference stock — 2 — (2 ) (125 ) (125 ) Balance at June 30, 2016 $ 2,168 $ 654 $ (20 ) $ 9,040 $ 2,245 $ 14,087 1 SCE adopted an accounting standard related to share-based payments during the fourth quarter of 2016, effective January 1, 2016. See Note 1 for further information. The table above reflects the adoption of this standard on January 1, 2016 . Net income and stock-based compensation (as previously reported) were $662 million and $(40) million , respectively, for the six months ended June 30, 2016 . |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 entities that own 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 Agreements SCE has power purchase agreements ("PPAs") that are classified as variable interests in VIEs, including tolling agreements through which SCE provides the natural gas to fuel the plants and contracts with qualifying facilities 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 California Public Utilities Commission ("CPUC")-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees, or other commitments associated with these contracts other than the purchase commitments described in Note 11 of the 2016 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 4,900 MW and 4,349 MW at June 30, 2017 and 2016 , respectively, and the amounts that SCE paid to these projects were $106 million and $92 million for the three months ended June 30, 2017 and 2016 , respectively, and $246 million and $219 million for six months ended June 30, 2017 and 2016, 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, Trust V, and Trust VI were formed in 2012, 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.625% , 5.10% , 5.75% , 5.375% , 5.45% , and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust I, Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $475 million , $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series F, Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $475 million , $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series F, Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series F, Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust I, Trust II, Trust III, Trust IV, and Trust V balance sheets as of June 30, 2017 and December 31, 2016 , consisted of investments of $475 million , $400 million , $275 million , $325 million , and $300 million in the Series F, Series G, Series H, Series J, and Series K Preference Stock, respectively, $475 million , $400 million , $275 million , $325 million , and $300 million of trust securities, respectively, and $10,000 each of common stock. The Trust VI balance sheet as of June 30, 2017 consisted of investments of $475 million in the Series L Preference Stock, $475 million of trust securities, and $10,000 of common stock. In July 2017, SCE Trust I redeemed $475 million of trust securities from the public and $10,000 of common stock from SCE. See Note 12 for additional information. The following table provides a summary of the trusts' income statements: Three months ended June 30, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2017 Dividend income $ 6 $ 5 $ 4 $ 5 $ 4 $ — Dividend distributions 6 5 4 5 4 — 2016 Dividend income $ 6 $ 5 $ 4 $ 5 $ 4 * Dividend distributions 6 5 4 5 4 * Six months ended June 30, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2017 Dividend income $ 13 $ 10 $ 8 $ 9 $ 8 $ — Dividend distributions 13 10 8 9 8 — 2016 Dividend income $ 13 $ 10 $ 8 $ 9 $ 5 * Dividend distributions 13 10 8 9 5 * * Not applicable. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , nonperformance risk was not material for Edison International and SCE. Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value. Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds. Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument. The fair value of SCE's over-the-counter derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from 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 tolling arrangements and derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. 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 derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: June 30, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 23 $ 36 $ — $ 59 Other 29 — — — 29 Nuclear decommissioning trusts: Stocks 2 1,611 — — — 1,611 Fixed Income 3 1,049 1,559 — — 2,608 Short-term investments, primarily cash equivalents 111 119 — — 230 Subtotal of nuclear decommissioning trusts 4 2,771 1,678 — — 4,449 Total assets 2,800 1,701 36 — 4,537 Liabilities at fair value Derivative contracts — 10 1,048 — 1,058 Total liabilities — 10 1,048 — 1,058 Net assets (liabilities) $ 2,800 $ 1,691 $ (1,012 ) $ — $ 3,479 December 31, 2016 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 6 $ 68 $ — $ 74 Other 33 — — — 33 Nuclear decommissioning trusts: Stocks 2 1,547 — — — 1,547 Fixed Income 3 865 1,751 — — 2,616 Short-term investments, primarily cash equivalents 36 170 — — 206 Subtotal of nuclear decommissioning trusts 4 2,448 1,921 — — 4,369 Total assets 2,481 1,927 68 — 4,476 Liabilities at fair value Derivative contracts — — 1,157 — 1,157 Total liabilities — — 1,157 — 1,157 Net assets (liabilities) $ 2,481 $ 1,927 $ (1,089 ) $ — $ 3,319 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 68% and 70% of SCE's equity investments were located in the United States at June 30, 2017 and December 31, 2016 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $ 74 million and $79 million at June 30, 2017 and December 31, 2016 , respectively. 4 Excludes net payables of $ 68 million and $127 million at June 30, 2017 and December 31, 2016 , respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. Edison International Parent and Other Edison International Parent and Other assets measured at fair value consisted of money market funds of $ 23 million at both June 30, 2017 and December 31, 2016 , 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 June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Fair value of net liabilities at beginning of period $ (1,166 ) $ (1,213 ) $ (1,089 ) $ (1,148 ) Total realized/unrealized losses: Included in regulatory assets and liabilities 1 11 43 (66 ) (22 ) Contract amendment 2 143 — 143 — Fair value of net liabilities at end of period $ (1,012 ) $ (1,170 ) $ (1,012 ) $ (1,170 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (12 ) $ 19 $ (97 ) $ (54 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 Represents a tolling contract that was amended during the second quarter of 2017, which is no longer accounted for as a derivative as of June 30, 2017. 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 material transfers between any levels during 2017 and 2016 . 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 June 30, 2017 $ 36 $ — Market simulation model and auction prices Load forecast 3,708 MW - 22,840 MW Power prices 1 $3.65 - $99.58 Gas prices 2 $2.51 - $4.87 December 31, 2016 67 — Market simulation model and auction prices Load forecast 3,708 MW - 22,840 MW Power prices 1 $3.65 - $99.58 Gas prices 2 $2.51 - $4.87 Tolling June 30, 2017 — 1,043 Option model Volatility of gas prices 13% - 43% (21%) Volatility of power prices 27% - 67% (34%) Power prices $23.41 - $47.10 ($33.16) December 31, 2016 — 1,154 Option model Volatility of gas prices 15% - 48% (20%) Volatility of power prices 29% - 71% (40%) Power prices $23.40 - $51.24 ($34.70) 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. There are no securities classified as Level 3 in the nuclear decommissioning trusts. Fair Value of Debt Recorded at Carrying Value The carrying value and fair value of Edison International's and SCE's long-term debt (including current portion of long-term debt) are as follows: June 30, 2017 December 31, 2016 (in millions) Carrying Value 1 Fair Value Carrying Value 1 Fair Value SCE $ 11,024 $ 12,507 $ 10,333 $ 11,539 Edison International 12,243 13,742 11,156 12,368 1 Carrying value is net of debt issuance costs. The fair value of Edison International's 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 | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt During the first quarter of 2017, SCE borrowed $300 million under a Term Loan Agreement due July 2018, with a variable interest rate based on the London Interbank Offered Rate plus 65 basis points ( 1.82% at June 30, 2017 ). The proceeds were used for general corporate purposes. During the first quarter of 2017, SCE reissued $135 million of 2.625% pollution-control bonds subject to mandatory remarketing in December 2023. The proceeds were used for general corporate purposes. During the first quarter of 2017, SCE issued $700 million of 4.00% first and refunding mortgage bonds due in 2047 and Edison International issued $400 million of 2.125% senior notes due in 2020. The proceeds were used to repay commercial paper borrowings and for general corporate purposes. In addition, the proceeds from SCE's bonds were used to fund SCE's capital program. 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, both maturing in July 2022. The maturity date for both credit facilities was extended in July 2017. 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 June 30, 2017 , SCE outstanding commercial paper, net of discount, was $ 219 million at a weighted-average interest rate of 1.29% . At June 30, 2017 , letters of credit issued under SCE's credit facility aggregated $53 million and are scheduled to expire in twelve months or less. At December 31, 2016 , the outstanding commercial paper, net of discount, was $ 769 million at a weighted-average interest rate of 0.9% . At June 30, 2017 , Edison International Parent's outstanding commercial paper, net of discount, was $344 million at a weighted-average interest rate of 1.38% . At December 31, 2016 , the outstanding commercial paper, net of discount, was $ 538 million at a weighted-average interest rate of 0.97% . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Derivative financial instruments are used to manage exposure to commodity price risk. These risks are managed in part by entering into forward commodity transactions, including options, swaps, and futures. To mitigate credit risk from counterparties in the event of nonperformance, master netting agreements are used whenever possible and counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Commodity Price Risk Commodity price risk represents the potential impact that can be caused by a change in the market value of a particular commodity. SCE's electricity price exposure arises from energy purchased from and sold to wholesale markets as a result of differences between SCE's load requirements and the amount of energy delivered from its generating facilities and PPAs. SCE's natural gas price exposure arises from natural gas purchased for the Mountainview power plant and peaker plants, qualifying facility contracts where pricing is based on a monthly natural gas index, and PPAs in which SCE has agreed to provide the natural gas needed for generation, referred to as tolling arrangements. Credit and Default Risk Credit and default risk represent the potential impact that can be caused if a counterparty were to default on its contractual obligations and SCE would be exposed to spot markets for buying replacement power or selling excess power. In addition, SCE would be exposed to the risk of non-payment of accounts receivable, primarily related to the sales of excess power and realized gains on derivative instruments. Certain power 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 $11 million and $12 million as of June 30, 2017 and December 31, 2016 , respectively, for which SCE has posted $8 million and $12 million collateral at June 30, 2017 and December 31, 2016 , respectively 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 June 30, 2017 , SCE would be required to post $21 million of additional collateral of which $18 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: June 30, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 60 $ 1 $ 61 $ 192 $ 868 $ 1,060 $ 999 Gross amounts offset in the consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 58 $ 1 $ 59 $ 190 $ 868 $ 1,058 $ 999 December 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 $ 74 $ 1 $ 75 $ 217 $ 941 $ 1,158 $ 1,083 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 73 $ 1 $ 74 $ 216 $ 941 $ 1,157 $ 1,083 1 In addition, at June 30, 2017 and December 31, 2016 , SCE had received $1 million and $2 million , respectively, of collateral that is not offset against derivative assets and is reflected in "Other current liabilities" on the consolidated balance sheets. Income Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to expected future recovery from customers, unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. The remaining effects of derivative activities and related regulatory offsets are 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 June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Realized losses $ (3 ) $ (25 ) $ (5 ) $ (52 ) Unrealized gains (losses) 6 72 (80 ) 8 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 June 30, 2017 December 31, 2016 Electricity options, swaps and forwards GWh 1,731 1,816 Natural gas options, swaps and forwards Bcf 144 36 Congestion revenue rights GWh 63,103 93,319 Tolling arrangements GWh 41,924 61,093 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Income from continuing operations before income taxes $ 335 $ 259 $ 687 $ 591 Provision for income tax at federal statutory rate of 35% 117 91 241 207 Increase in income tax from: State tax, net of federal benefit 6 4 16 11 Property-related 1 (83 ) (138 ) (196 ) (217 ) Change related to uncertain tax positions (6 ) 2 (18 ) 1 Shared-based compensation 2 (3 ) (4 ) (46 ) (15 ) Other (5 ) (6 ) (11 ) (11 ) Total income tax expense (benefit) from continuing operations $ 26 $ (51 ) $ (14 ) $ (24 ) Effective tax rate 7.8 % (19.7 )% (2.0 )% (4.1 )% SCE: Income from continuing operations before income taxes $ 395 $ 317 $ 787 $ 683 Provision for income tax at federal statutory rate of 35% 138 111 275 239 Increase in income tax from: State tax, net of federal benefit 9 6 22 15 Property-related 1 (83 ) (138 ) (196 ) (217 ) Change related to uncertain tax positions — (1 ) (11 ) (2 ) Shared-based compensation 2 (1 ) (3 ) (9 ) (11 ) Other (6 ) (7 ) (12 ) (14 ) Total income tax expense (benefit) from continuing operations $ 57 $ (32 ) $ 69 $ 10 Effective tax rate 14.4 % (10.1 )% 8.8 % 1.5 % 1 During the second quarter of 2016, SCE recorded $79 million for 2012 – 2014 incremental tax benefits related to repair deductions, which were flowed-through to customers ( $133 million pre-tax). 2 Includes state taxes for Edison International and SCE of $4 million and $1 million , respectively, for the three months ended June 30, 2017 and $10 million and $2 million , respectively, for the six months ended June 30, 2017 . Includes state taxes for Edison International and SCE of $3 million and $2 million , respectively, for the six months ended June 30, 2016 . Refer to Note 1 for further information. 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. In March 2017, SCE received the final decision on claims against, and counterclaims of, Mitsubishi Heavy Industries, Inc. and related companies (together, "MHI") from the arbitration tribunal, the International Chamber of Commerce, discussed further in Note 11. San Onofre was permanently shut down on June 7, 2013 as a result of failure of replacement steam generators supplied by MHI. With the resolution of the insurance claim against Nuclear Electric Insurance Limited ("NEIL") in October 2015 and the conclusion of the arbitration proceeding against MHI, a tax abandonment loss of $691 million and $1.13 billion for federal and state income tax purposes, respectively, was claimed in the first six months of 2017, resulting in a flow-through tax benefit of approximately $39 million impacting the effective tax rate. Due to the tax abandonment loss recognized during the first six months of 2017, Edison International and SCE both expect to report federal and California tax losses in 2017. Unrecognized Tax Benefits In the first quarter of 2017, Edison International settled all open tax positions with the Internal Revenue Service ("IRS") for taxable years 2007 through 2012. The following table provides a reconciliation of unrecognized tax benefits for 2017 as a result of the audit settlement: (in millions) Edison International SCE Balance at January 1, 2017 $ 471 $ 371 Tax positions taken during the current year: Increases 20 20 Tax positions taken during a prior year: Increases 3 3 Decreases — — Decreases for settlements during the period (83 ) (78 ) Balance at June 30, 2017 $ 411 $ 316 Tax Disputes In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012. Edison International has previously made cash deposits to cover the estimated tax and interest liability from this audit cycle and expects a $7 million refund of this deposited amount. Tax years that remain open for examination by the IRS and the California Franchise Tax Board are 2013 – 2015 and 2010 – 2015, respectively. Edison International has settled all open tax position with the IRS for taxable years prior to 2013. Tax years 2003 – 2009 are currently under protest with the California Franchise Tax Board. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Pension Plans Edison International made contributions of $76 million during the six months ended June 30, 2017, which includes contributions of $44 million by SCE. Edison International expects to make contributions of $60 million during the remainder of 2017 , which includes $41 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. Pension expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Service cost $ 36 $ 39 $ 72 $ 78 Interest cost 41 44 82 88 Expected return on plan assets (53 ) (56 ) (106 ) (112 ) Settlement costs 1 8 — 8 — Amortization of prior service cost 1 1 2 2 Amortization of net loss 2 5 9 10 18 Expense under accounting standards $ 38 $ 37 $ 68 $ 74 Regulatory adjustment (3 ) (9 ) (6 ) (18 ) Total expense recognized $ 35 $ 28 $ 62 $ 56 SCE: Service cost $ 35 $ 38 $ 70 $ 76 Interest cost 37 41 74 82 Expected return on plan assets (50 ) (53 ) (100 ) (106 ) Amortization of prior service cost 1 1 2 2 Amortization of net loss 2 4 8 8 16 Expense under accounting standards $ 27 $ 35 $ 54 $ 70 Regulatory adjustment (3 ) (9 ) (6 ) (18 ) Total expense recognized $ 24 $ 26 $ 48 $ 52 1 Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in April 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $7.7 million ( $4.6 million after tax) was recorded at Edison International in the second quarter of 2017. 2 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $1 million , respectively, for the three months ended June 30, 2017 , and $5 million and $3 million , respectively, for the six months ended June 30, 2017 . The amount reclassified for Edison International and SCE was $3 million and $1 million , respectively, for the three months ended June 30, 2016 , and $6 million and $3 million , respectively, for the six months ended June 30, 2016 . Postretirement Benefits Other Than Pensions Edison International made contributions of $10 million during the six months ended June 30, 2017 and expects to make contributions of $11 million during the remainder of 2017 , substantially all of which are expected to be made by SCE. Annual contributions related to SCE employees 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. 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 Plan benefits with respect to its employees and former employees. A participating employer may terminate the PBOP Plan benefits with respect to its employees and former employees, as may SCE (as PBOP Plan sponsor), and, accordingly, the participants' PBOP Plan benefits are not vested benefits. PBOP expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 24 26 48 52 Expected return on plan assets (27 ) (28 ) (54 ) (56 ) Amortization of prior service cost (1 ) (1 ) (2 ) (2 ) Total expense $ 5 $ 7 $ 10 $ 14 SCE: Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 24 26 48 52 Expected return on plan assets (27 ) (28 ) (54 ) (56 ) Amortization of prior service cost (1 ) (1 ) (2 ) (2 ) Total expense $ 5 $ 7 $ 10 $ 14 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, December 31, June 30, December 31, 2016 Stocks — $ 304 $ 319 $ 1,611 $ 1,547 Municipal bonds 2054 617 659 737 766 U.S. government and agency securities 2067 1,209 1,131 1,288 1,191 Corporate bonds 2057 523 600 584 659 Short-term investments and receivables/payables 1 One-year 156 75 161 79 Total $ 2,809 $ 2,784 $ 4,381 $ 4,242 1 Short-term investments include $32 million and $114 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 3, 2017 and J anuary 4, 2017 as of June 30, 2017 and December 31, 2016 , respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the asset retirement obligation ("ARO") regulatory liability. Unrealized holding gains, net of losses, were $1.6 billion and $1.5 billion at June 30, 2017 and December 31, 2016 , respectively. The following table sets forth a summary of changes in the fair value of the trust: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Balance at beginning of period $ 4,352 $ 4,290 $ 4,242 $ 4,331 Gross realized gains 13 22 112 75 Gross realized losses — (1 ) (16 ) (4 ) Unrealized gains, net of losses 87 72 114 113 Other-than-temporary impairments (3 ) (8 ) (4 ) (33 ) Interest and dividends 31 32 59 60 Income taxes (26 ) (24 ) (26 ) (42 ) Decommissioning disbursements (73 ) (38 ) (99 ) (154 ) Administrative expenses and other — (1 ) (1 ) (2 ) Balance at end of period $ 4,381 $ 4,344 $ 4,381 $ 4,344 Trust assets are used to pay income taxes. Deferred tax liabilities related to net unrealized gains at June 30, 2017 were $388 million . Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.0 billion at June 30, 2017 . Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. Decommissioning disbursements are funded from sales of investments of the nuclear decommissioning trusts. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, December 31, Current: Regulatory balancing accounts $ 374 $ 135 Energy derivatives and other power contracts 199 150 Unamortized investments, net of accumulated amortization 25 49 Other 36 16 Total current 634 350 Long-term: Deferred income taxes, net of liabilities 4,875 4,478 Pensions and other postretirement benefits 712 710 Energy derivatives and other power contracts 969 947 Unamortized investments, net of accumulated amortization 78 80 San Onofre 772 857 Unamortized loss on reacquired debt 176 184 Regulatory balancing accounts 72 66 Environmental remediation 123 126 Other 73 7 Total long-term 7,850 7,455 Total regulatory assets $ 8,484 $ 7,805 Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) June 30, December 31, Current: Regulatory balancing accounts $ 822 $ 736 San Onofre MHI arbitration award 1 47 — Other 34 20 Total current 903 756 Long-term: Costs of removal 2,820 2,847 Recoveries in excess of ARO liabilities 2 1,758 1,639 Regulatory balancing accounts 1,326 1,180 Other 57 60 Total long-term 5,961 5,726 Total regulatory liabilities $ 6,864 $ 6,482 1 Represents SCE's net recovery from claims against MHI. See Note 11 for further discussion. 2 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9 for further discussion. Net Regulatory Balancing Accounts The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) June 30, December 31, Asset (liability) Energy resource recovery account $ 228 $ (20 ) New system generation balancing account (175 ) (6 ) Public purpose programs and energy efficiency programs (1,064 ) (992 ) Tax accounting memorandum account and pole loading balancing account (197 ) (142 ) Base rate recovery balancing account (257 ) (426 ) Department of Energy litigation memorandum account (156 ) (122 ) Greenhouse gas auction revenue 24 31 FERC balancing accounts (136 ) (69 ) Other 31 31 Liability $ (1,702 ) $ (1,715 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Third-Party Power Purchase Agreements During the first six months of 2017, SCE had existing PPAs that met the critical contract provisions (including completion of major milestones for construction). The commitments for these contracts are estimated to be: $50 million in 2017, $120 million in 2018, $122 million in 2019, $123 million in 2020, $124 million in 2021, and $1.0 billion for the remaining period thereafter. For further information, see Note 11 in the 2016 Form 10-K. 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 the Mountainview power plant's California Energy Commission permit for cleanup or associated actions related to groundwater contaminated by perchlorate due to the disposal of filter cake at the City's solid waste landfill. The obligations under this agreement are not limited to a specific time period or subject to a maximum liability. SCE has not recorded a liability related to this indemnity. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of these other proceedings will not, individually or in the aggregate, materially affect its financial position, results of operations and cash flows. 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. San Onofre CPUC Proceedings In November 2014, the CPUC approved the Settlement Agreement by and among SCE, The Utility Reform Network, the CPUC's Office of Ratepayer Advocates and San Diego Gas & Electric ("SDG&E"), which was later joined by the Coalition of California Utility Employees and Friends of the Earth, dated November 20, 2014 (the "San Onofre OII Settlement Agreement"), which resolved the CPUC's investigation regarding the steam generator replacement project at San Onofre and the related outages and subsequent shutdown of San Onofre. Subsequently, the San Onofre Order Instituting Investigation ("OII") proceeding record was reopened by a joint ruling of the Assigned Commissioner and the Assigned administrative law judge ("ALJ") to consider whether, in light of SCE not reporting certain ex parte communications on a timely basis, the San Onofre OII Settlement Agreement remained reasonable, consistent with the law, and in the public interest, which is the standard the CPUC applies in reviewing settlements submitted for approval. In comments filed with the CPUC in July 2016, SCE asserted that the San Onofre OII Settlement Agreement continues to meet this standard and therefore should not be disturbed. A number of the parties to the San Onofre OII, however, have requested that the CPUC either modify the San Onofre OII Settlement Agreement or vacate its previous approval of the settlement and reinstate the San Onofre OII for further proceedings. In a December 2016 joint ruling, the Assigned Commissioner and the Assigned ALJ expressed concerns about the extent to which the failure to timely report ex parte communications had impacted the settlement negotiations and directed SCE and SDG&E to meet and confer with the other parties in the San Onofre OII to consider changing the terms of the San Onofre OII Settlement Agreement. In March 2017, SCE and the parties participating in the meet-and-confer process initiated a mediation of the issues identified in the December 2016 joint ruling. The CPUC has established a joint report deadline of August 15, 2017, at which time the parties must report on the outcome of the meet-and-confer process. SCE has recorded a regulatory asset of $772 million at June 30, 2017 to reflect the expected recoveries under the San Onofre OII Settlement Agreement. Management assesses at the end of each reporting period whether regulatory assets are probable of future recovery. SCE assessed the San Onofre regulatory asset at June 30, 2017 and continues to conclude that the asset is probable, though not certain, of recovery based on SCE's knowledge of facts and judgment in applying the relevant regulatory principles to the issue. Such judgment is subject to uncertainty, and regulatory principles and precedents are not necessarily binding and are capable of interpretation. Challenges related to the Settlement of 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. In light of the San Onofre OII meet-and-confer sessions, the Ninth Circuit cancelled the hearing that had been scheduled for February 9, 2017 and ordered the parties to notify the Ninth Circuit of the status of the San Onofre OII by May 1, 2017 and periodically thereafter. The parties have filed the required status reports with the court. In July 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its then Chief Executive Officer and its then Chief Financial Officer. The complaint 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 initial complaint purported to be filed on behalf of a class of persons who acquired Edison International common stock between March 21, 2014 and June 24, 2015 (the "Class Period"). In September 2016, the federal court granted defendants’ motion to dismiss the complaint, with an opportunity for plaintiff to amend the complaint. Plaintiff filed an amended complaint, which the federal court dismissed again with an opportunity for the plaintiff to amend the complaint. Plaintiff filed a third amended complaint in May 2017, which extends the Class Period to August 10, 2015. Defendants filed a motion to dismiss the third amended complaint in June 2017, and are awaiting a ruling. 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 2015 and was subsequently consolidated with the July 2015 federal derivative lawsuit. In September 2016, the federal court granted defendants' motion to dismiss the consolidated complaint, with an opportunity for plaintiffs to amend the complaint. Plaintiffs did not file an amended complaint by the required date. Plaintiffs' deadline to appeal the federal court's order granting defendants' motion to dismiss lapsed in March 2017 and no appeal was filed. 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 light of the ruling in the parallel federal derivative lawsuit discussed above, plaintiff requested that the court voluntarily dismiss the state court action. The action was dismissed in April 2017. In November 2015, a purported securities class action lawsuit was filed in federal court against Edison International, its then Chief Executive Officer and its Treasurer by an Edison International employee, alleging claims under the Employee Retirement Income Security Act. 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. In July 2016, the federal court granted the defendants' motion to dismiss the lawsuit with an opportunity for the plaintiff to amend her complaint. Plaintiff filed an amended complaint in July 2016, that dismissed Edison International as a named defendant and the remaining defendants filed a motion to dismiss in August 2016. These defendants' motion was heard by the court in November 2016. In June 2017, the federal court again granted defendants' motion to dismiss the lawsuit with an opportunity for the plaintiff to amend her complaint. Plaintiff filed an amended complaint in early July 2017. Defendants have filed motion to dismiss the amended complaint, which will be heard by the court in October 2017. Edison International and SCE cannot predict the outcome of the open proceedings. MHI Claims SCE pursued claims against MHI, which designed and supplied the replacement steam generators. In October 2013, SCE sent MHI a formal request for binding arbitration under the auspices of the International Chamber of Commerce seeking damages for all losses. SCE alleged contract and tort claims and sought at least $4 billion in damages on behalf of itself and its customers and in its capacity as Operating Agent for San Onofre. MHI denied any liability and asserted counterclaims for $41 million , for which SCE denied any liability. Each of the other San Onofre owners (SDG&E and Riverside) 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 were added as additional claimants in the arbitration. In March 2017, the arbitration tribunal found MHI liable for breach of contract, but rejected claimants' other claims. The tribunal found that damages were subject to contractual limitations on liability. In addition, the tribunal ordered the claimants to pay MHI's legal costs but rejected MHI's counterclaims. The net recovery awarded to SCE was initially determined to be $52 million . An adjustment to the interest awarded to SCE subsequently reduced the net recovery to approximately $47 million . The decision is the final award of the tribunal but can be challenged in court on limited grounds. SCE has determined that it will not appeal the decision. As a result of uncertainty associated with the allocation of the award under the San Onofre OII Settlement Agreement, SCE recorded a regulatory liability for the net recovery. 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 June 30, 2017 , SCE's recorded estimated minimum liability to remediate its 19 identified material sites (sites with a liability balance at June 30, 2017 , in which the upper end of the range of the costs is at least $1 million ) was $125 million , including $74 million related to San Onofre. In addition to these sites, SCE also has 17 immaterial sites with a liability balance as of June 30, 2017 , for which the total minimum recorded liability was $3 million . Of the $128 million total environmental remediation liability for SCE, $123 million has been recorded as a regulatory asset. SCE expects to recover $47 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 $75 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 $150 million and $8 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 $5 million to $18 million . Costs incurred for the six months ended June 30, 2017 and 2016 were $4 million and $1 million , respectively. 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 $52 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 $13.4 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 2016 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. Drought conditions in California have also increased the duration of the wildfire season and the risk of severe wildfire events. SCE has approximately $1 billion of insurance coverage for wildfire liabilities for the period ending on May 31, 2018. SCE has 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. SCE or its vegetation management contractors 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 insurance coverage. Spent Nuclear Fuel Under federal law, the U.S. 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 , including reimbursement for legal costs (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. The first such claim covering damages for 2014 – 2015 was filed on September 30, 2016 for approximately $56 million . In February 2017, the DOE reviewed the 2014 – 2015 claim submission and reduced the original request to approximately $43 million (SCE share was approximately $34 million ) primarily due to DOE allocation limits. SCE accepted the DOE's determination, and the government will pay the 2014 – 2015 claim under the terms of the settlement. SCE will make the claim submission for 2016 damages in the third quarter of 2017. 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 SCE (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Preferred and Preference Stock of SCE During the second quarter of 2017, SCE issued $475 million of 5.00% Series L preference stock ( 190,004 shares; cumulative, $2,500 liquidation value) to SCE Trust VI, a special purpose entity formed to issue trust securities as discussed in Note 3. The Series L preference stock may be redeemed at a premium, in whole, but not in part, at any time prior to June 26, 2022 if certain changes in tax or investment company law or interpretation or applicable rating agency equity credit criteria occur. On or after June 26, 2022, SCE may redeem the Series L shares at par, in whole or in part. The shares are not subject to mandatory redemption. In July 2017, the proceeds were used to redeem $475 million of SCE's Series F Preference Stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Edison International's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Beginning balance $ (49 ) $ (54 ) $ (53 ) $ (56 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 3 3 Other — — 2 — Change 1 1 5 3 Ending Balance $ (48 ) $ (53 ) $ (48 ) $ (53 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 8 for additional information. SCE's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Beginning balance $ (18 ) $ (21 ) $ (20 ) $ (22 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 2 2 Other (1 ) — — — Change — 1 2 2 Ending Balance $ (18 ) $ (20 ) $ (18 ) $ (20 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 8 for additional information. |
Interest and Other Income and O
Interest and Other Income and Other Expenses | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 SCE interest and other income: Equity allowance for funds used during construction $ 23 $ 19 $ 41 $ 42 Increase in cash surrender value of life insurance policies and life insurance benefits 10 11 22 17 Interest income 1 2 3 3 Other 2 1 3 3 Total SCE interest and other income 36 33 69 65 Other income of Edison International Parent and Other 1 — 1 — Total Edison International interest and other income $ 37 $ 33 $ 70 $ 65 SCE other expenses: Civic, political and related activities and donations $ 7 $ 8 $ 10 $ 12 Other 5 3 9 7 Total SCE other expenses 12 11 19 19 Other expenses of Edison International Parent and Other — — 1 — Total Edison International other expenses $ 12 $ 11 $ 20 $ 19 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Supplemental cash flows information for continuing operations is: Edison International SCE Six months ended June 30, (in millions) 2017 2016 2017 2016 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 240 $ 228 $ 223 $ 221 Tax payments, net of refunds 14 12 20 32 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 177 $ 156 $ — $ — Preferred and preference stock 12 12 12 12 SCE's accrued capital expenditures at June 30, 2017 and 2016 were $283 million and $338 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) | 6 Months Ended |
Jun. 30, 2017 | |
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, Inc., a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and distributed solar for commercial and industrial customers. Such business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other wholly owned and controlled subsidiaries. References to Edison International refer to the consolidated group of Edison International and its subsidiaries. References to Edison International Parent and Other refer to Edison International Parent and its competitive subsidiaries. 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 Edison International's and SCE's combined Annual Report on Form 10-K for the year-ended December 31, 2016 (the "2016 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2016 Form 10-K. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state the consolidated financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States ("GAAP") for the periods covered by this quarterly report on Form 10-Q. The results of operations for the three- and six-month periods ended June 30, 2017 are not necessarily indicative of the operating results for the full year. The December 31, 2016 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Cash Equivalents | Cash Equivalents Cash equivalents includes 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. |
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 Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on revenue recognition and further amended the standard in 2016 and 2017. 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. This standard will be adopted on January 1, 2018. Edison International and SCE have completed the preliminary phases of their assessment of the impact on the consolidated financial statements and do not believe the adoption of this standard will have a material impact on the financial position or results of operations. For the six months ended June 30, 2017, approximately 95% of total operating revenue arises from SCE's tariff offerings that provide electricity to customers. For such arrangements, revenue from contracts with customers will be equivalent to the electricity supplied and billed in that period (including estimated billings). As such, there will not be a change in the timing or pattern of revenue recognition for such sales. This standard will require enhanced disclosures, including a disaggregation of revenue from contracts with customers. Edison International and SCE plan to disaggregate customer contract revenue between revenue from earnings activities and revenue from cost-recovery activities. Some revenue arrangements, such as alternative revenue programs, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenues recognized under the new standard on the Edison International and SCE consolidated financial statements. Edison International and SCE anticipate adopting the standard using the modified retrospective application which means that Edison International and SCE would recognize any cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2018. In January 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. In February 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 need to recognize leases on the balance sheet as a right-of-use asset and a related lease liability, and classify the leases as either operating or finance. 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 higher initial expense pattern due to the interest component. SCE, as a regulated entity, is permitted to continue to have straight-line expense for finance leases, assuming the rate recovery is based upon current payments. Lessees can elect to exclude from the balance sheet short-term contracts one year or less. This guidance is effective January 1, 2019. Early adoption is permitted, but Edison International and SCE do not expect to elect early adoption. The adoption of this standard will increase right-of-use assets and lease liabilities in Edison International's and SCE's consolidated balance sheets. Edison International and SCE are currently evaluating the impact this standard will have on the results of operations and statements of cash flows and lease disclosures. The FASB also issued an accounting standards update related to the impairment of financial instruments, effective January 1, 2020. The new guidance provides an impairment model, known as the current expected credit loss model, which is based on expected credit losses rather than incurred losses. Edison International and SCE are currently evaluating the impact of this new guidance. The FASB also issued accounting standards updates related to the presentation and classification of certain cash receipts and payments in the statement of cash flows, including a change to the amount of cash, cash equivalents, and restricted cash explained when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective January 1, 2018 and requires retrospective application. Edison International and SCE are currently evaluating the impact of this new guidance. In January 2017, the FASB issued an accounting standards update to simplify the accounting for goodwill impairment. This accounting standards update changes the procedural steps in applying the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Edison International will apply this guidance to the goodwill impairment test beginning in 2020. In March 2017, the FASB issued an accounting standards update which amends the current requirements related to the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. The adoption of this standard is not expected to have a material impact on Edison International's and SCE's financial position or results of operations, but will result in the separate presentation of service costs as an operating expense and non-service costs within other income and expense. The new standards update is effective on January 1, 2018. It is required to be applied on a retrospective basis for the presentation of the service cost component and the other components of net benefit cost and on a prospective basis for the capitalization of only the service cost component of net benefit cost. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE (in millions) June 30, December 31, 2016 June 30, December 31, 2016 Money market funds $ 41 $ 41 $ 18 $ 18 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) June 30, December 31, 2016 June 30, December 31, 2016 Book balances reclassified to accounts payable $ 54 $ 138 $ 54 $ 136 |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Three months ended June 30, Six months ended June 30, (in millions, except per-share amounts) 2017 2016 2017 2016 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 282 $ 640 $ 562 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 278 $ 282 $ 640 $ 562 Weighted average common shares outstanding 326 326 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.87 $ 1.96 $ 1.72 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 278 $ 282 $ 640 $ 562 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 278 $ 282 $ 640 $ 562 Income impact of assumed conversions — — — — Income from continuing operations available to common shareholders and assumed conversions $ 278 $ 282 $ 640 $ 562 Weighted average common shares outstanding 326 326 326 326 Incremental shares from assumed conversions 3 4 3 4 Adjusted weighted average shares – diluted 329 330 329 330 Diluted earnings per share – continuing operations $ 0.85 $ 0.86 $ 1.95 $ 1.70 |
Consolidated Statements of Ch25
Consolidated Statements of Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Capitalization, Equity [Line Items] | |
Schedule of Changes in Equity | The following table provides Edison International's changes in equity for the six months ended June 30, 2017 : 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, 2016 $ 2,505 $ (53 ) $ 9,544 $ 11,996 $ 2,191 $ 14,187 Net income — — 640 640 62 702 Other comprehensive income — 5 — 5 — 5 Common stock dividends declared ($1.0850 per share) — — (354 ) (354 ) — (354 ) Dividends to noncontrolling interests — — — — (62 ) (62 ) Stock-based compensation — — (151 ) (151 ) — (151 ) Non-cash stock-based compensation 10 — — 10 — 10 Issuance of preference stock — — — — 463 463 Balance at June 30, 2017 $ 2,515 $ (48 ) $ 9,679 $ 12,146 $ 2,654 $ 14,800 The following table provides Edison International's changes in equity for the six months ended June 30, 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 — — 561 1 561 61 622 Other comprehensive income — 3 — 3 — 3 Common stock dividends declared ($0.9600 per share) — — (313 ) (313 ) — (313 ) Dividends to noncontrolling interests — — — — (61 ) (61 ) Stock-based compensation — — (18 ) 1 (18 ) — (18 ) Non-cash stock-based compensation 12 — — 12 — 12 Issuance of preference stock — — — — 294 294 Redemption of preference stock — — (2 ) (2 ) (123 ) (125 ) Balance at June 30, 2016 $ 2,496 $ (53 ) $ 9,168 $ 11,611 $ 2,191 $ 13,802 1 Edison International adopted an accounting standard related to share-based payments during the fourth quarter of 2016, effective January 1, 2016 . See Note 1 for further information. The table above reflects the adoption of this standard on January 1, 2016 . Net income and stock-based compensation (as previously reported) were $546 million and $(60) million , respectively, for the six months ended June 30, 2016 . |
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 six months ended June 30, 2017 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2016 $ 2,168 $ 657 $ (20 ) $ 9,433 $ 2,245 $ 14,483 Net income — — — 718 — 718 Other comprehensive income — — 2 — — 2 Dividends declared on common stock — — — (382 ) — (382 ) Dividends declared on preferred and preference stock — — — (62 ) — (62 ) Stock-based compensation — — — (33 ) — (33 ) Non-cash stock-based compensation — 6 — — — 6 Issuance of preference stock — (12 ) — — 475 463 Balance at June 30, 2017 $ 2,168 $ 651 $ (18 ) $ 9,674 $ 2,720 $ 15,195 The following table provides SCE's changes in equity for the six months ended June 30, 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 — — — 673 1 — 673 Other comprehensive income — — 2 — — 2 Dividends declared on common stock — — — (340 ) — (340 ) Dividends declared on preferred and preference stock — — — (61 ) — (61 ) Stock-based compensation — — — (34 ) 1 — (34 ) Non-cash stock-based compensation — 6 — — — 6 Issuance of preference stock — (6 ) — — 300 294 Redemption of preference stock — 2 — (2 ) (125 ) (125 ) Balance at June 30, 2016 $ 2,168 $ 654 $ (20 ) $ 9,040 $ 2,245 $ 14,087 1 SCE adopted an accounting standard related to share-based payments during the fourth quarter of 2016, effective January 1, 2016. See Note 1 for further information. The table above reflects the adoption of this standard on January 1, 2016 . Net income and stock-based compensation (as previously reported) were $662 million and $(40) million , respectively, for the six months ended June 30, 2016 . |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2017 Dividend income $ 6 $ 5 $ 4 $ 5 $ 4 $ — Dividend distributions 6 5 4 5 4 — 2016 Dividend income $ 6 $ 5 $ 4 $ 5 $ 4 * Dividend distributions 6 5 4 5 4 * |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 (in millions) Carrying Value 1 Fair Value Carrying Value 1 Fair Value SCE $ 11,024 $ 12,507 $ 10,333 $ 11,539 Edison International 12,243 13,742 11,156 12,368 1 Carrying value is net of debt issuance costs. |
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: June 30, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 23 $ 36 $ — $ 59 Other 29 — — — 29 Nuclear decommissioning trusts: Stocks 2 1,611 — — — 1,611 Fixed Income 3 1,049 1,559 — — 2,608 Short-term investments, primarily cash equivalents 111 119 — — 230 Subtotal of nuclear decommissioning trusts 4 2,771 1,678 — — 4,449 Total assets 2,800 1,701 36 — 4,537 Liabilities at fair value Derivative contracts — 10 1,048 — 1,058 Total liabilities — 10 1,048 — 1,058 Net assets (liabilities) $ 2,800 $ 1,691 $ (1,012 ) $ — $ 3,479 December 31, 2016 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 6 $ 68 $ — $ 74 Other 33 — — — 33 Nuclear decommissioning trusts: Stocks 2 1,547 — — — 1,547 Fixed Income 3 865 1,751 — — 2,616 Short-term investments, primarily cash equivalents 36 170 — — 206 Subtotal of nuclear decommissioning trusts 4 2,448 1,921 — — 4,369 Total assets 2,481 1,927 68 — 4,476 Liabilities at fair value Derivative contracts — — 1,157 — 1,157 Total liabilities — — 1,157 — 1,157 Net assets (liabilities) $ 2,481 $ 1,927 $ (1,089 ) $ — $ 3,319 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 68% and 70% of SCE's equity investments were located in the United States at June 30, 2017 and December 31, 2016 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $ 74 million and $79 million at June 30, 2017 and December 31, 2016 , respectively. 4 Excludes net payables of $ 68 million and $127 million at June 30, 2017 and December 31, 2016 , respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
Summary of Changes in Fair Value of Level 3 Net Derivative Assets and Liabilities | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Fair value of net liabilities at beginning of period $ (1,166 ) $ (1,213 ) $ (1,089 ) $ (1,148 ) Total realized/unrealized losses: Included in regulatory assets and liabilities 1 11 43 (66 ) (22 ) Contract amendment 2 143 — 143 — Fair value of net liabilities at end of period $ (1,012 ) $ (1,170 ) $ (1,012 ) $ (1,170 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ (12 ) $ 19 $ (97 ) $ (54 ) 1 Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities. 2 Represents a tolling contract that was amended during the second quarter of 2017, which is no longer accounted for as a derivative as of June 30, 2017. |
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 June 30, 2017 $ 36 $ — Market simulation model and auction prices Load forecast 3,708 MW - 22,840 MW Power prices 1 $3.65 - $99.58 Gas prices 2 $2.51 - $4.87 December 31, 2016 67 — Market simulation model and auction prices Load forecast 3,708 MW - 22,840 MW Power prices 1 $3.65 - $99.58 Gas prices 2 $2.51 - $4.87 Tolling June 30, 2017 — 1,043 Option model Volatility of gas prices 13% - 43% (21%) Volatility of power prices 27% - 67% (34%) Power prices $23.41 - $47.10 ($33.16) December 31, 2016 — 1,154 Option model Volatility of gas prices 15% - 48% (20%) Volatility of power prices 29% - 71% (40%) Power prices $23.40 - $51.24 ($34.70) 1 Prices are in dollars per megawatt-hour. 2 Prices are in dollars per million British thermal units. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Liabilities Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: June 30, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 60 $ 1 $ 61 $ 192 $ 868 $ 1,060 $ 999 Gross amounts offset in the consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 58 $ 1 $ 59 $ 190 $ 868 $ 1,058 $ 999 December 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 $ 74 $ 1 $ 75 $ 217 $ 941 $ 1,158 $ 1,083 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 73 $ 1 $ 74 $ 216 $ 941 $ 1,157 $ 1,083 1 In addition, at June 30, 2017 and December 31, 2016 , SCE had received $1 million and $2 million , respectively, of collateral that is not offset against derivative assets and is reflected in "Other current liabilities" on the consolidated balance sheets. |
Southern California Edison | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Asset Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: June 30, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 60 $ 1 $ 61 $ 192 $ 868 $ 1,060 $ 999 Gross amounts offset in the consolidated balance sheets (2 ) — (2 ) (2 ) — (2 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 58 $ 1 $ 59 $ 190 $ 868 $ 1,058 $ 999 December 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 $ 74 $ 1 $ 75 $ 217 $ 941 $ 1,158 $ 1,083 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted 1 — — — — — — — Net amounts presented in the consolidated balance sheets $ 73 $ 1 $ 74 $ 216 $ 941 $ 1,157 $ 1,083 1 In addition, at June 30, 2017 and December 31, 2016 , SCE had received $1 million and $2 million , respectively, of collateral that is not offset against derivative assets and is reflected in "Other current liabilities" 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 June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Realized losses $ (3 ) $ (25 ) $ (5 ) $ (52 ) Unrealized gains (losses) 6 72 (80 ) 8 |
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 June 30, 2017 December 31, 2016 Electricity options, swaps and forwards GWh 1,731 1,816 Natural gas options, swaps and forwards Bcf 144 36 Congestion revenue rights GWh 63,103 93,319 Tolling arrangements GWh 41,924 61,093 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Income from continuing operations before income taxes $ 335 $ 259 $ 687 $ 591 Provision for income tax at federal statutory rate of 35% 117 91 241 207 Increase in income tax from: State tax, net of federal benefit 6 4 16 11 Property-related 1 (83 ) (138 ) (196 ) (217 ) Change related to uncertain tax positions (6 ) 2 (18 ) 1 Shared-based compensation 2 (3 ) (4 ) (46 ) (15 ) Other (5 ) (6 ) (11 ) (11 ) Total income tax expense (benefit) from continuing operations $ 26 $ (51 ) $ (14 ) $ (24 ) Effective tax rate 7.8 % (19.7 )% (2.0 )% (4.1 )% SCE: Income from continuing operations before income taxes $ 395 $ 317 $ 787 $ 683 Provision for income tax at federal statutory rate of 35% 138 111 275 239 Increase in income tax from: State tax, net of federal benefit 9 6 22 15 Property-related 1 (83 ) (138 ) (196 ) (217 ) Change related to uncertain tax positions — (1 ) (11 ) (2 ) Shared-based compensation 2 (1 ) (3 ) (9 ) (11 ) Other (6 ) (7 ) (12 ) (14 ) Total income tax expense (benefit) from continuing operations $ 57 $ (32 ) $ 69 $ 10 Effective tax rate 14.4 % (10.1 )% 8.8 % 1.5 % 1 During the second quarter of 2016, SCE recorded $79 million for 2012 – 2014 incremental tax benefits related to repair deductions, which were flowed-through to customers ( $133 million pre-tax). 2 Includes state taxes for Edison International and SCE of $4 million and $1 million , respectively, for the three months ended June 30, 2017 and $10 million and $2 million , respectively, for the six months ended June 30, 2017 . Includes state taxes for Edison International and SCE of $3 million and $2 million , respectively, for the six months ended June 30, 2016 . Refer to Note 1 for further information. |
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits for 2017 as a result of the audit settlement: (in millions) Edison International SCE Balance at January 1, 2017 $ 471 $ 371 Tax positions taken during the current year: Increases 20 20 Tax positions taken during a prior year: Increases 3 3 Decreases — — Decreases for settlements during the period (83 ) (78 ) Balance at June 30, 2017 $ 411 $ 316 |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Expense Components for Plans | Pension expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Service cost $ 36 $ 39 $ 72 $ 78 Interest cost 41 44 82 88 Expected return on plan assets (53 ) (56 ) (106 ) (112 ) Settlement costs 1 8 — 8 — Amortization of prior service cost 1 1 2 2 Amortization of net loss 2 5 9 10 18 Expense under accounting standards $ 38 $ 37 $ 68 $ 74 Regulatory adjustment (3 ) (9 ) (6 ) (18 ) Total expense recognized $ 35 $ 28 $ 62 $ 56 SCE: Service cost $ 35 $ 38 $ 70 $ 76 Interest cost 37 41 74 82 Expected return on plan assets (50 ) (53 ) (100 ) (106 ) Amortization of prior service cost 1 1 2 2 Amortization of net loss 2 4 8 8 16 Expense under accounting standards $ 27 $ 35 $ 54 $ 70 Regulatory adjustment (3 ) (9 ) (6 ) (18 ) Total expense recognized $ 24 $ 26 $ 48 $ 52 1 Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump sum payments made in April 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately $7.7 million ( $4.6 million after tax) was recorded at Edison International in the second quarter of 2017. 2 Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was $2 million and $1 million , respectively, for the three months ended June 30, 2017 , and $5 million and $3 million , respectively, for the six months ended June 30, 2017 . The amount reclassified for Edison International and SCE was $3 million and $1 million , respectively, for the three months ended June 30, 2016 , and $6 million and $3 million , respectively, for the six months ended June 30, 2016 . |
PBOP Plan | |
Pension and Other Postretirement Benefits | |
Expense Components for Plans | PBOP expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Edison International: Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 24 26 48 52 Expected return on plan assets (27 ) (28 ) (54 ) (56 ) Amortization of prior service cost (1 ) (1 ) (2 ) (2 ) Total expense $ 5 $ 7 $ 10 $ 14 SCE: Service cost $ 9 $ 10 $ 18 $ 20 Interest cost 24 26 48 52 Expected return on plan assets (27 ) (28 ) (54 ) (56 ) Amortization of prior service cost (1 ) (1 ) (2 ) (2 ) Total expense $ 5 $ 7 $ 10 $ 14 |
Investments (Tables)
Investments (Tables) - Southern California Edison | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, December 31, June 30, December 31, 2016 Stocks — $ 304 $ 319 $ 1,611 $ 1,547 Municipal bonds 2054 617 659 737 766 U.S. government and agency securities 2067 1,209 1,131 1,288 1,191 Corporate bonds 2057 523 600 584 659 Short-term investments and receivables/payables 1 One-year 156 75 161 79 Total $ 2,809 $ 2,784 $ 4,381 $ 4,242 1 Short-term investments include $32 million and $114 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 3, 2017 and J anuary 4, 2017 as of June 30, 2017 and December 31, 2016 , 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 June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Balance at beginning of period $ 4,352 $ 4,290 $ 4,242 $ 4,331 Gross realized gains 13 22 112 75 Gross realized losses — (1 ) (16 ) (4 ) Unrealized gains, net of losses 87 72 114 113 Other-than-temporary impairments (3 ) (8 ) (4 ) (33 ) Interest and dividends 31 32 59 60 Income taxes (26 ) (24 ) (26 ) (42 ) Decommissioning disbursements (73 ) (38 ) (99 ) (154 ) Administrative expenses and other — (1 ) (1 ) (2 ) Balance at end of period $ 4,381 $ 4,344 $ 4,381 $ 4,344 |
Regulatory Assets and Liabili32
Regulatory Assets and Liabilities (Tables) - Southern California Edison | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, December 31, Current: Regulatory balancing accounts $ 374 $ 135 Energy derivatives and other power contracts 199 150 Unamortized investments, net of accumulated amortization 25 49 Other 36 16 Total current 634 350 Long-term: Deferred income taxes, net of liabilities 4,875 4,478 Pensions and other postretirement benefits 712 710 Energy derivatives and other power contracts 969 947 Unamortized investments, net of accumulated amortization 78 80 San Onofre 772 857 Unamortized loss on reacquired debt 176 184 Regulatory balancing accounts 72 66 Environmental remediation 123 126 Other 73 7 Total long-term 7,850 7,455 Total regulatory assets $ 8,484 $ 7,805 |
Regulatory Liabilities Included on the Consolidated Balance Sheets | SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) June 30, December 31, Current: Regulatory balancing accounts $ 822 $ 736 San Onofre MHI arbitration award 1 47 — Other 34 20 Total current 903 756 Long-term: Costs of removal 2,820 2,847 Recoveries in excess of ARO liabilities 2 1,758 1,639 Regulatory balancing accounts 1,326 1,180 Other 57 60 Total long-term 5,961 5,726 Total regulatory liabilities $ 6,864 $ 6,482 1 Represents SCE's net recovery from claims against MHI. See Note 11 for further discussion. 2 Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9 for further discussion. |
Schedule of Net Regulatory Balancing Accounts | The following table summarizes the significant components of regulatory balancing accounts included in the above tables of regulatory assets and liabilities: (in millions) June 30, December 31, Asset (liability) Energy resource recovery account $ 228 $ (20 ) New system generation balancing account (175 ) (6 ) Public purpose programs and energy efficiency programs (1,064 ) (992 ) Tax accounting memorandum account and pole loading balancing account (197 ) (142 ) Base rate recovery balancing account (257 ) (426 ) Department of Energy litigation memorandum account (156 ) (122 ) Greenhouse gas auction revenue 24 31 FERC balancing accounts (136 ) (69 ) Other 31 31 Liability $ (1,702 ) $ (1,715 ) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Edison International's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Beginning balance $ (49 ) $ (54 ) $ (53 ) $ (56 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 3 3 Other — — 2 — Change 1 1 5 3 Ending Balance $ (48 ) $ (53 ) $ (48 ) $ (53 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 8 for additional information. SCE's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 Beginning balance $ (18 ) $ (21 ) $ (20 ) $ (22 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 2 2 Other (1 ) — — — Change — 1 2 2 Ending Balance $ (18 ) $ (20 ) $ (18 ) $ (20 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 8 for additional information. |
Interest and Other Income and34
Interest and Other Income and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income and Expenses | Interest and other income and other expenses are as follows: Three months ended June 30, Six months ended June 30, (in millions) 2017 2016 2017 2016 SCE interest and other income: Equity allowance for funds used during construction $ 23 $ 19 $ 41 $ 42 Increase in cash surrender value of life insurance policies and life insurance benefits 10 11 22 17 Interest income 1 2 3 3 Other 2 1 3 3 Total SCE interest and other income 36 33 69 65 Other income of Edison International Parent and Other 1 — 1 — Total Edison International interest and other income $ 37 $ 33 $ 70 $ 65 SCE other expenses: Civic, political and related activities and donations $ 7 $ 8 $ 10 $ 12 Other 5 3 9 7 Total SCE other expenses 12 11 19 19 Other expenses of Edison International Parent and Other — — 1 — Total Edison International other expenses $ 12 $ 11 $ 20 $ 19 |
Supplemental Cash Flows Infor35
Supplemental Cash Flows Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Supplemental cash flows information for continuing operations is: Edison International SCE Six months ended June 30, (in millions) 2017 2016 2017 2016 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 240 $ 228 $ 223 $ 221 Tax payments, net of refunds 14 12 20 32 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 177 $ 156 $ — $ — Preferred and preference stock 12 12 12 12 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands | 6 Months Ended |
Jun. 30, 2017mi² | |
Southern California Edison | Electric Utility | |
Segment Reporting Information [Line Items] | |
Supply of electricity, area covered (square mile) | 50 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Cash Equivalents) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | $ 41 | $ 41 |
Book balances reclassified to accounts payable | 54 | 138 |
Southern California Edison | ||
Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 18 | 18 |
Book balances reclassified to accounts payable | $ 54 | $ 136 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Goodwill) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Accounting Policies [Abstract] | |
Goodwill impairment | $ 16.5 |
Goodwill impairment after tax | $ 10 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic earnings per share – continuing operations: | ||||
Income from continuing operations attributable to common shareholders | $ 278 | $ 282 | $ 640 | $ 562 |
Participating securities dividends | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders | $ 278 | $ 282 | $ 640 | $ 562 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 | 326,000,000 | 326,000,000 |
Basic earnings per share - continuing operations (in dollars per share) | $ 0.85 | $ 0.87 | $ 1.96 | $ 1.72 |
Diluted earnings per share – continuing operations: | ||||
Income from continuing operations attributable to common shareholders | $ 278 | $ 282 | $ 640 | $ 562 |
Participating securities dividends | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders | 278 | 282 | 640 | 562 |
Income impact of assumed conversions | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders and assumed conversions | $ 278 | $ 282 | $ 640 | $ 562 |
Weighted average common shares outstanding (in shares) | 326,000,000 | 326,000,000 | 326,000,000 | 326,000,000 |
Incremental shares from assumed conversions (in shares) | 3,000,000 | 4,000,000 | 3,000,000 | 4,000,000 |
Adjusted weighted average shares - diluted (in shares) | 329,000,000 | 330,000,000 | 329,000,000 | 330,000,000 |
Diluted earnings per share - continuing operations (in dollars per share) | $ 0.85 | $ 0.86 | $ 1.95 | $ 1.70 |
Stock option awards | ||||
Diluted earnings per share – continuing operations: | ||||
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares) | 1,327,310 | 42,890 | 1,370,200 | 47,861 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Southern California Edison | Sales | |
Concentration Risk [Line Items] | |
Sales from tariff offerings, percentage of total operating revenues | 95.00% |
Consolidated Statements of Ch41
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 14,187 | $ 13,388 | ||
Net income | 702 | 622 | ||
Net income | $ 309 | $ 308 | 701 | 614 |
Other comprehensive income (loss) | 1 | 1 | 5 | 3 |
Dividends declared on common stock | (354) | (313) | ||
Dividends to noncontrolling interests | (62) | (61) | ||
Stock-based compensation | (151) | (18) | ||
Non-cash stock-based compensation | 10 | 12 | ||
Issuance of preference stock | 463 | 294 | ||
Redemption of preference stock | (125) | |||
Balance, at the end of the period | $ 14,800 | $ 13,802 | $ 14,800 | $ 13,802 |
Dividends declared per common share (in dollars per share) | $ 0.5425 | $ 0.4800 | $ 1.0850 | $ 0.96 |
Accounting for Share-Based Payments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 546 | |||
Stock-based compensation | (60) | |||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 2,505 | $ 2,484 | ||
Non-cash stock-based compensation | 10 | 12 | ||
Balance, at the end of the period | $ 2,515 | 2,496 | 2,515 | 2,496 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (53) | (56) | ||
Other comprehensive income (loss) | 5 | 3 | ||
Balance, at the end of the period | (48) | (53) | (48) | (53) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 9,544 | 8,940 | ||
Net income | 640 | 561 | ||
Dividends declared on common stock | (354) | (313) | ||
Stock-based compensation | (151) | (18) | ||
Redemption of preference stock | (2) | |||
Balance, at the end of the period | 9,679 | 9,168 | 9,679 | 9,168 |
Subtotal | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 11,996 | 11,368 | ||
Net income | 640 | 561 | ||
Other comprehensive income (loss) | 5 | 3 | ||
Dividends declared on common stock | (354) | (313) | ||
Stock-based compensation | (151) | (18) | ||
Non-cash stock-based compensation | 10 | 12 | ||
Redemption of preference stock | (2) | |||
Balance, at the end of the period | 12,146 | 11,611 | 12,146 | 11,611 |
Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,191 | 2,020 | ||
Net income | 62 | 61 | ||
Dividends to noncontrolling interests | (62) | (61) | ||
Issuance of preference stock | 463 | 294 | ||
Redemption of preference stock | (123) | |||
Balance, at the end of the period | 2,654 | 2,191 | 2,654 | 2,191 |
Southern California Edison | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 14,483 | 13,672 | ||
Net income | 338 | 349 | 718 | 673 |
Other comprehensive income (loss) | 0 | 1 | 2 | 2 |
Dividends declared on common stock | (382) | (340) | ||
Dividends declared on preferred and preference stock | (62) | (61) | ||
Stock-based compensation | (33) | (34) | ||
Non-cash stock-based compensation | 6 | 6 | ||
Issuance of preference stock | 463 | 294 | ||
Redemption of preference stock | (125) | |||
Balance, at the end of the period | 15,195 | 14,087 | 15,195 | 14,087 |
Southern California Edison | Accounting for Share-Based Payments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 662 | |||
Stock-based compensation | (40) | |||
Southern California Edison | Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,168 | 2,168 | ||
Balance, at the end of the period | 2,168 | 2,168 | 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 | 657 | 652 | ||
Non-cash stock-based compensation | 6 | 6 | ||
Issuance of preference stock | (12) | (6) | ||
Redemption of preference stock | 2 | |||
Balance, at the end of the period | 651 | 654 | 651 | 654 |
Southern California Edison | Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (20) | (22) | ||
Other comprehensive income (loss) | 2 | 2 | ||
Balance, at the end of the period | (18) | (20) | (18) | (20) |
Southern California Edison | Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 9,433 | 8,804 | ||
Net income | 718 | 673 | ||
Dividends declared on common stock | (382) | (340) | ||
Dividends declared on preferred and preference stock | (62) | (61) | ||
Stock-based compensation | (33) | (34) | ||
Redemption of preference stock | (2) | |||
Balance, at the end of the period | 9,674 | 9,040 | 9,674 | 9,040 |
Southern California Edison | Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,245 | 2,070 | ||
Issuance of preference stock | 475 | 300 | ||
Redemption of preference stock | (125) | |||
Balance, at the end of the period | $ 2,720 | $ 2,245 | $ 2,720 | $ 2,245 |
Variable Interest Entities (Tex
Variable Interest Entities (Textual) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 27, 2017USD ($) | Jun. 30, 2017USD ($)$ / sharesMW | Jun. 30, 2016USD ($)MW | Jun. 30, 2017USD ($)$ / sharesMW | Jun. 30, 2016USD ($)MW | |
Variable Interest Entity | |||||
Redemption of preference stock | $ 125,000,000 | ||||
Southern California Edison | |||||
Variable Interest Entity | |||||
Redemption of preference stock | $ 125,000,000 | ||||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | SCE Power Purchase Contracts | |||||
Variable Interest Entity | |||||
Power generating capacity (in megawatts) | MW | 4,900 | 4,349 | 4,900 | 4,349 | |
Payments to unconsolidated VIEs for power purchase contracts | $ 106,000,000 | $ 92,000,000 | $ 246,000,000 | $ 219,000,000 | |
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust I | |||||
Variable Interest Entity | |||||
Common stock | 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust I | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.625% | ||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust I | Trust Securities | Subsequent event | |||||
Variable Interest Entity | |||||
Redemption of preference stock | $ 10,000 | ||||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust I | Series F Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.625% | ||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust II | |||||
Variable Interest Entity | |||||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust II | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.10% | ||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust II | Series G Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.10% | ||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust III | |||||
Variable Interest Entity | |||||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust III | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.75% | ||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust III | Series H Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.75% | ||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust IV | |||||
Variable Interest Entity | |||||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust IV | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.375% | ||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust IV | Series J Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.375% | ||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust V | |||||
Variable Interest Entity | |||||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust V | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.45% | ||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust V | Series K Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.45% | ||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust VI | |||||
Variable Interest Entity | |||||
Common stock | $ 10,000 | $ 10,000 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust VI | Trust Securities | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.00% | ||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust VI | Trust Securities | Subsequent event | |||||
Variable Interest Entity | |||||
Redemption of preference stock | $ 475,000,000 | ||||
Southern California Edison | Variable Interest Entity, Not Primary Beneficiary | Trust VI | Series L Preferred Stock | |||||
Variable Interest Entity | |||||
Security dividend rate | 5.00% | ||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | |||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of Trusts' Income Statement) (Details) - Variable Interest Entity, Not Primary Beneficiary - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Trust I | ||||
Variable Interest Entity | ||||
Dividend income | $ 6 | $ 6 | $ 13 | $ 13 |
Dividend distributions | 6 | 6 | 13 | 13 |
Trust II | ||||
Variable Interest Entity | ||||
Dividend income | 5 | 5 | 10 | 10 |
Dividend distributions | 5 | 5 | 10 | 10 |
Trust III | ||||
Variable Interest Entity | ||||
Dividend income | 4 | 4 | 8 | 8 |
Dividend distributions | 4 | 4 | 8 | 8 |
Trust IV | ||||
Variable Interest Entity | ||||
Dividend income | 5 | 5 | 9 | 9 |
Dividend distributions | 5 | 5 | 9 | 9 |
Trust V | ||||
Variable Interest Entity | ||||
Dividend income | 4 | 4 | 8 | 5 |
Dividend distributions | 4 | $ 4 | 8 | $ 5 |
Trust VI | ||||
Variable Interest Entity | ||||
Dividend income | 0 | 0 | ||
Dividend distributions | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets at fair value | ||||||
Nuclear decommissioning trusts | $ 4,381 | $ 4,242 | ||||
Southern California Edison | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | $ 4,381 | $ 4,352 | $ 4,242 | $ 4,344 | $ 4,290 | $ 4,331 |
Liabilities at fair value | ||||||
Percentage of equity investments located in the United States | 68.00% | 70.00% | ||||
Collateralized mortgage obligations and other asset backed securities | $ 74 | $ 79 | ||||
Payables, net, related to investments | 68 | 127 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | ||||||
Assets at fair value | ||||||
Derivative contracts | 59 | 74 | ||||
Other | 29 | 33 | ||||
Nuclear decommissioning trusts | 4,449 | 4,369 | ||||
Total assets | 4,537 | 4,476 | ||||
Liabilities at fair value | ||||||
Derivative contracts | 1,058 | 1,157 | ||||
Netting and Collateral | 0 | 0 | ||||
Total liabilities | 1,058 | 1,157 | ||||
Net assets (liabilities) | 3,479 | 3,319 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Stocks | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 1,611 | 1,547 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Fixed income | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 2,608 | 2,616 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 230 | 206 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | ||||||
Assets at fair value | ||||||
Derivative contracts | 0 | 0 | ||||
Other | 29 | 33 | ||||
Nuclear decommissioning trusts | 2,771 | 2,448 | ||||
Total assets | 2,800 | 2,481 | ||||
Liabilities at fair value | ||||||
Derivative contracts | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Net assets (liabilities) | 2,800 | 2,481 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 1,611 | 1,547 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed income | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 1,049 | 865 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 111 | 36 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | ||||||
Assets at fair value | ||||||
Derivative contracts | 23 | 6 | ||||
Other | 0 | 0 | ||||
Nuclear decommissioning trusts | 1,678 | 1,921 | ||||
Total assets | 1,701 | 1,927 | ||||
Liabilities at fair value | ||||||
Derivative contracts | 10 | 0 | ||||
Total liabilities | 10 | 0 | ||||
Net assets (liabilities) | 1,691 | 1,927 | ||||
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 | 1,559 | 1,751 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 119 | 170 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | ||||||
Assets at fair value | ||||||
Derivative contracts | 36 | 68 | ||||
Other | 0 | 0 | ||||
Nuclear decommissioning trusts | 0 | 0 | ||||
Total assets | 36 | 68 | ||||
Liabilities at fair value | ||||||
Derivative contracts | 1,048 | 1,157 | ||||
Total liabilities | 1,048 | 1,157 | ||||
Net assets (liabilities) | (1,012) | (1,089) | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Stocks | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 0 | 0 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Fixed income | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | 0 | 0 | ||||
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | Short-term investments, primarily cash equivalents | ||||||
Assets at fair value | ||||||
Nuclear decommissioning trusts | $ 0 | $ 0 |
Fair Value Measurements (Textua
Fair Value Measurements (Textual) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 41 | $ 41 |
Edison International Parent and Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 23 | $ 23 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Disclosures Level 3 [Roll Forward] | ||||
Fair value of net liabilities at beginning of period | $ (1,166) | $ (1,213) | $ (1,089) | $ (1,148) |
Total realized/unrealized losses: | ||||
Included in regulatory assets and liabilities | 11 | 43 | (66) | (22) |
Contract amendment | 143 | 0 | 143 | 0 |
Fair value of net liabilities at end of period | (1,012) | (1,170) | (1,012) | (1,170) |
Change during the period in unrealized losses related to assets and liabilities held at the end of the period | $ (12) | $ 19 | $ (97) | $ (54) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Southern California Edison - Level 3 $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)$ / MWh$ / MMBTUMW | Dec. 31, 2016USD ($)$ / MWh$ / MMBTUMW | |
Congestion revenue rights | Market simulation model and auction prices | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 36 | $ 67 |
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 | 3,708 | 3,708 |
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 | 22,840 | 22,840 |
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) | 3.65 | 3.65 |
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) | 99.58 | 99.58 |
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 | 2.51 | 2.51 |
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 | 4.87 | 4.87 |
Tolling | Option model | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 0 | $ 0 |
Fair Value, Liabilities | $ | $ 1,043 | $ 1,154 |
Tolling | Option model | Power prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 23.41 | 23.40 |
Expected volatility rate | 27.00% | 29.00% |
Tolling | Option model | Power prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 47.10 | 51.24 |
Expected volatility rate | 67.00% | 71.00% |
Tolling | Option model | Power prices | Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | 33.16 | 34.70 |
Expected volatility rate | 34.00% | 40.00% |
Tolling | Option model | Gas prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate | 13.00% | 15.00% |
Tolling | Option model | Gas prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate | 43.00% | 48.00% |
Tolling | Option model | Gas prices | Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Expected volatility rate | 21.00% | 20.00% |
Fair Value Measurements (Fair48
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | $ 12,243 | $ 11,156 |
Fair Value | 13,742 | 12,368 |
Southern California Edison | ||
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | 11,024 | 10,333 |
Fair Value | $ 12,507 | $ 11,539 |
Debt and Credit Agreements (Det
Debt and Credit Agreements (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 566,000,000 | $ 566,000,000 | $ 1,307,000,000 | |
Multi-year revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Commitment | $ 1,250,000,000 | $ 1,250,000,000 | ||
Weighted average interest rate | 1.38% | 1.38% | 0.97% | |
Short-term debt | $ 344,000,000 | $ 344,000,000 | $ 538,000,000 | |
Southern California Edison | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 219,000,000 | 219,000,000 | 769,000,000 | |
Southern California Edison | Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 300,000,000 | |||
London Interbank Offered Rate | 65.00% | |||
Interest rate during the period | 1.82% | |||
Southern California Edison | Pollution-control bonds | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 135,000,000 | |||
Stated interest rate | 2.625% | |||
Southern California Edison | 4.00% First and refunding mortgage bonds due 2047 | First and refunding mortgage bonds | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 700,000,000 | |||
Stated interest rate | 4.00% | |||
Southern California Edison | 2.125% Senior notes due 2020 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Issuance of debt | $ 400,000,000 | |||
Stated interest rate | 2.125% | |||
Southern California Edison | Multi-year revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Commitment | $ 2,750,000,000 | 2,750,000,000 | ||
Southern California Edison | Multi-year revolving credit facility | Letters of credit | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 53,000,000 | $ 53,000,000 | ||
Letters of credit expiration period | 12 months | |||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 769,000,000 | |||
Weighted average interest rate | 0.90% | |||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.29% | 1.29% | ||
Short-term debt | $ 219,000,000 | $ 219,000,000 |
Derivative Instruments (Textual
Derivative Instruments (Textual) (Details) - Southern California Edison - Electric Utility - Economic Hedges - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 11 | $ 12 |
Posted collateral | 8 | $ 12 |
Potential amount of collateral to be posted if contingencies triggered | 21 | |
Payables | ||
Derivative [Line Items] | ||
Potential amount of collateral to be posted if contingencies triggered | $ 18 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - Southern California Edison Company - Commodity derivative contracts - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other current liabilities | ||
Net Liability | ||
Collateral received | $ 1 | $ 2 |
Electric Utility | ||
Derivative Assets | ||
Gross amounts recognized | 61 | 75 |
Gross amounts offset in the consolidated balance sheets | (2) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 59 | 74 |
Derivative Liabilities | ||
Gross amounts recognized | 1,060 | 1,158 |
Gross amounts offset in the consolidated balance sheets | (2) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 1,058 | 1,157 |
Net Liability | ||
Gross amounts recognized | 999 | 1,083 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 999 | 1,083 |
Electric Utility | Derivative Assets, Short-Term | ||
Derivative Assets | ||
Gross amounts recognized | 60 | 74 |
Gross amounts offset in the consolidated balance sheets | (2) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 58 | 73 |
Electric Utility | Derivative Assets, Long-Term | ||
Derivative Assets | ||
Gross amounts recognized | 1 | 1 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 1 | 1 |
Electric Utility | Derivative Liability, Short-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 192 | 217 |
Gross amounts offset in the consolidated balance sheets | (2) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 190 | 216 |
Electric Utility | Derivative Liability, Long-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 868 | 941 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | $ 868 | $ 941 |
Derivative Instruments (Summari
Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized losses | $ (3) | $ (25) | $ (5) | $ (52) |
Unrealized gains (losses) | $ 6 | $ 72 | $ (80) | $ 8 |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Economic Hedges GWh in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017GWhBcfe | Dec. 31, 2016GWhBcfe | |
Electricity options, swaps and forwards (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | 1,731 | 1,816 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | Bcfe | 144 | 36 |
Congestion revenue rights (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | 63,103 | 93,319 |
Tolling arrangements (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | 41,924 | 61,093 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosures [Line Items] | ||||
Income from continuing operations before income taxes | $ 335 | $ 259 | $ 687 | $ 591 |
Provision for income tax at federal statutory rate of 35% | 117 | 91 | 241 | 207 |
Increase in income tax from: | ||||
State tax, net of federal benefit | 6 | 4 | 16 | 11 |
Property-related | (83) | (138) | (196) | (217) |
Change related to uncertain tax positions | (6) | 2 | (18) | 1 |
Shared-based compensation | (3) | (4) | (46) | (15) |
Other | (5) | (6) | (11) | (11) |
Total income tax expense (benefit) from continuing operations | $ 26 | $ (51) | $ (14) | $ (24) |
Effective tax rate | 7.80% | (19.70%) | (2.00%) | (4.10%) |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Southern California Edison | ||||
Income Tax Disclosures [Line Items] | ||||
Income from continuing operations before income taxes | $ 395 | $ 317 | $ 787 | $ 683 |
Provision for income tax at federal statutory rate of 35% | 138 | 111 | 275 | 239 |
Increase in income tax from: | ||||
State tax, net of federal benefit | 9 | 6 | 22 | 15 |
Property-related | (83) | (138) | (196) | (217) |
Change related to uncertain tax positions | 0 | (1) | (11) | (2) |
Shared-based compensation | (1) | (3) | (9) | (11) |
Other | (6) | (7) | (12) | (14) |
Total income tax expense (benefit) from continuing operations | $ 57 | $ (32) | $ 69 | $ 10 |
Effective tax rate | 14.40% | (10.10%) | 8.80% | 1.50% |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Tax abandonment loss | $ 39 | |||
State | ||||
Increase in income tax from: | ||||
Shared-based compensation | $ 4 | 10 | $ 3 | |
State | Southern California Edison | ||||
Increase in income tax from: | ||||
Shared-based compensation | $ 1 | 2 | $ 2 | |
Tax abandonment loss | 1,130 | |||
Federal | Southern California Edison | ||||
Increase in income tax from: | ||||
Tax abandonment loss | $ 691 | |||
Tax years 2012 to 2014 | IRS | Southern California Edison | ||||
Increase in income tax from: | ||||
Incremental tax benefits related to repair deductions | $ 79 | |||
Incremental tax benefits related to repair deductions, before tax | $ 133 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1, 2017 | $ 471 |
Tax positions taken during the current year, Increases | 20 |
Tax positions taken during a prior year, Increases | 3 |
Tax positions taken during a prior year, Decreases | 0 |
Tax positions taken during a prior year, Decreases for settlements during the period | (83) |
Balance at June 30, 2017 | 411 |
Southern California Edison | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1, 2017 | 371 |
Tax positions taken during the current year, Increases | 20 |
Tax positions taken during a prior year, Increases | 3 |
Tax positions taken during a prior year, Decreases | 0 |
Tax positions taken during a prior year, Decreases for settlements during the period | (78) |
Balance at June 30, 2017 | $ 316 |
Income Taxes (Tax Disputes) (De
Income Taxes (Tax Disputes) (Details) $ in Millions | Jul. 27, 2017USD ($) |
Forecast | Tax Years 2007 - 2012 | |
Income Tax Examination [Line Items] | |
IRS refund expected | $ 7 |
Compensation and Benefit Plan57
Compensation and Benefit Plans (Textual) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Pension Plans | ||
Pension and Other Postretirement Benefits | ||
Employer contributions | $ 76 | |
Estimated future contributions in remainder of year | $ 60 | 60 |
Settlement loss | (7.7) | |
Settlement loss, net of tax | 4.6 | |
PBOP Plan | ||
Pension and Other Postretirement Benefits | ||
Employer contributions | 10 | |
Estimated future contributions in remainder of year | 11 | 11 |
Southern California Edison | Pension Plans | ||
Pension and Other Postretirement Benefits | ||
Employer contributions | 44 | |
Estimated future contributions in remainder of year | $ 41 | $ 41 |
Compensation and Benefit Plan58
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | $ 36 | $ 39 | $ 72 | $ 78 |
Interest cost | 41 | 44 | 82 | 88 |
Expected return on plan assets | (53) | (56) | (106) | (112) |
Settlement costs | 8 | 0 | 8 | 0 |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Amortization of net loss | 5 | 9 | 10 | 18 |
Expense under accounting standards | 38 | 37 | 68 | 74 |
Regulatory adjustment | (3) | (9) | (6) | (18) |
Total expense recognized | 35 | 28 | 62 | 56 |
Net loss reclassified | 2 | 3 | 5 | 6 |
PBOP Plan | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | 9 | 10 | 18 | 20 |
Interest cost | 24 | 26 | 48 | 52 |
Expected return on plan assets | (27) | (28) | (54) | (56) |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Expense under accounting standards | 5 | 7 | 10 | 14 |
Southern California Edison | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | 35 | 38 | 70 | 76 |
Interest cost | 37 | 41 | 74 | 82 |
Expected return on plan assets | (50) | (53) | (100) | (106) |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Amortization of net loss | 4 | 8 | 8 | 16 |
Expense under accounting standards | 27 | 35 | 54 | 70 |
Regulatory adjustment | (3) | (9) | (6) | (18) |
Total expense recognized | 24 | 26 | 48 | 52 |
Net loss reclassified | 1 | 1 | 3 | 3 |
Southern California Edison | PBOP Plan | ||||
Pension and Other Postretirement Benefits | ||||
Service cost | 9 | 10 | 18 | 20 |
Interest cost | 24 | 26 | 48 | 52 |
Expected return on plan assets | (27) | (28) | (54) | (56) |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Expense under accounting standards | $ 5 | $ 7 | $ 10 | $ 14 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | $ 2,809 | $ 2,784 |
Fair Value | 4,381 | 4,242 |
Stocks | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 304 | 319 |
Fair Value | 1,611 | 1,547 |
Municipal bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 617 | 659 |
Fair Value | 737 | 766 |
U.S. government and agency securities | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 1,209 | 1,131 |
Fair Value | 1,288 | 1,191 |
Corporate bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 523 | 600 |
Fair Value | 584 | 659 |
Short-term investments and receivables/payables | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 156 | 75 |
Fair Value | 161 | 79 |
Repurchase agreement | $ 32 | $ 114 |
Investments (Nuclear Decommissi
Investments (Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Investments [Line Items] | ||
Unrealized holding gains, net of losses | $ 1,600 | $ 1,500 |
Deferred income taxes related to unrealized gains | 388 | |
Nuclear decommissioning trusts | $ 4,000 |
Investments (Summary of Changes
Investments (Summary of Changes in Fair Value of the Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary Of Changes In The Fair Value [Roll Forward] | ||||
Balance at beginning of period | $ 4,242 | |||
Balance at end of period | $ 4,381 | 4,381 | ||
Southern California Edison | ||||
Summary Of Changes In The Fair Value [Roll Forward] | ||||
Balance at beginning of period | 4,352 | $ 4,290 | 4,242 | $ 4,331 |
Gross realized gains | 13 | 22 | 112 | 75 |
Gross realized losses | 0 | (1) | (16) | (4) |
Unrealized gains, net of losses | 87 | 72 | 114 | 113 |
Other-than-temporary impairments | (3) | (8) | (4) | (33) |
Interest and dividends | 31 | 32 | 59 | 60 |
Income taxes | (26) | (24) | (26) | (42) |
Decommissioning disbursements | (73) | (38) | (99) | (154) |
Administrative expenses and other | 0 | (1) | (1) | (2) |
Balance at end of period | $ 4,381 | $ 4,344 | $ 4,381 | $ 4,344 |
Regulatory Assets and Liabili62
Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 634 | $ 350 |
Long-term regulatory assets | 7,850 | 7,455 |
Environmental remediation | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 123 | 126 |
Southern California Edison | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 634 | 350 |
Long-term regulatory assets | 7,850 | 7,455 |
Total regulatory assets | 8,484 | 7,805 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 374 | 135 |
Long-term regulatory assets | 72 | 66 |
Southern California Edison | Energy derivatives and other power contracts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 199 | 150 |
Long-term regulatory assets | 969 | 947 |
Southern California Edison | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 25 | 49 |
Southern California Edison | Other | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 36 | 16 |
Long-term regulatory assets | 73 | 7 |
Southern California Edison | Deferred income taxes, net of liabilities | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 4,875 | 4,478 |
Southern California Edison | Pensions and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 712 | 710 |
Southern California Edison | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 78 | 80 |
Southern California Edison | San Onofre | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 772 | 857 |
Southern California Edison | Unamortized loss on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | $ 176 | $ 184 |
Regulatory Assets and Liabili63
Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 903 | $ 756 |
Long-term regulatory liabilities | 5,961 | 5,726 |
Southern California Edison | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 903 | 756 |
Long-term regulatory liabilities | 5,961 | 5,726 |
Total regulatory liabilities | 6,864 | 6,482 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 822 | 736 |
Long-term regulatory liabilities | 1,326 | 1,180 |
Southern California Edison | San Onofre MHI arbitration award | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 47 | 0 |
Southern California Edison | Other | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 34 | 20 |
Long-term regulatory liabilities | 57 | 60 |
Southern California Edison | Costs of removal | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,820 | 2,847 |
Southern California Edison | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | $ 1,758 | $ 1,639 |
Regulatory Assets and Liabili64
Regulatory Assets and Liabilities (Schedule of Net Regulatory Balancing Accounts) (Details) - Southern California Edison - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Regulatory balancing accounts | Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | $ 228 | $ (20) |
Regulatory balancing accounts | New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (175) | (6) |
Refunds of excess revenue | Net regulatory balancing accounts | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (1,702) | (1,715) |
Refunds of excess revenue | Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (1,064) | (992) |
Refunds of excess revenue | Tax accounting memorandum account and pole loading balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (197) | (142) |
Refunds of excess revenue | Base rate recovery balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (257) | (426) |
Refunds of excess revenue | Department of Energy litigation memorandum account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (156) | (122) |
Refunds of excess revenue | Greenhouse gas auction revenue | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | 24 | 31 |
Refunds of excess revenue | FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (136) | (69) |
Refunds of excess revenue | Other | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | $ 31 | $ 31 |
Commitments and Contingencies (
Commitments and Contingencies (Third-Party Power Purchase Agreements) (Details) - Southern California Edison - Commitments meeting critical contract provisions $ in Millions | Jun. 30, 2017USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Estimated commitments in next twelve months | $ 50 |
Estimated commitments in two years | 120 |
Estimated commitments in three years | 122 |
Estimated commitments in four years | 123 |
Estimated commitments in five years | 124 |
Estimated commitments after five years | $ 1,000 |
Commitments and Contingencies66
Commitments and Contingencies (Contingencies) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 7,850 | $ 7,455 |
Southern California Edison | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7,850 | 7,455 |
Southern California Edison | San Onofre | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 772 | $ 857 |
Commitments and Contingencies67
Commitments and Contingencies (MHI Claims) (Details) - USD ($) | 1 Months Ended | |||
Mar. 31, 2017 | Apr. 30, 2016 | Oct. 31, 2013 | Jun. 30, 2010 | |
Southern California Edison | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Damages sought | $ 112,000,000 | |||
Initial recovery rewarded | $ 124,000,000 | |||
San Onofre | Southern California Edison | Mitsubishi Heavy Industries Ltd | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Initial recovery rewarded | $ 52,000,000 | |||
Net recovery | $ 47,000,000 | |||
San Onofre | Southern California Edison | Mitsubishi Heavy Industries Ltd | Minimum | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Damages sought | $ 4,000,000,000 | |||
San Onofre | Mitsubishi Heavy Industries Ltd | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Asserted counterclaim | $ 41,000,000 |
Commitments and Contingencies68
Commitments and Contingencies (Environmental Remediation) (Details) - Southern California Edison | 6 Months Ended | |
Jun. 30, 2017USD ($)site | Jun. 30, 2016USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Identified material sites for environmental remediation (in number of sites) | site | 19 | |
Minimum costs to be identified site | $ 1,000,000 | |
Minimum liability for environmental remediation for material sites | $ 125,000,000 | |
Immaterial sites for environmental remediation (in number of sites) | site | 17 | |
Environmental remediation liability | $ 128,000,000 | |
Regulatory assets related to environmental remediation | 123,000,000 | |
Portion of recorded liability recoverable from incentive mechanism | $ 47,000,000 | |
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 | $ 75,000,000 | |
Environmental remediation costs to be recovered (as a percent) | 100.00% | |
Amount that cleanup costs could exceed recorded liability for identified material sites | $ 150,000,000 | |
Amount that cleanup costs could exceed recorded liability for immaterial sites | $ 8,000,000 | |
Remediation cost estimates (period) | 5 years | |
Environmental remediation costs | $ 4,000,000 | $ 1,000,000 |
Minimum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation for immaterial sites | 3,000,000 | |
Expected annual environmental remediation costs | $ 5,000,000 | |
Maximum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Maximum expected period for cleanup of identified sites (in years) | 30 years | |
Expected annual environmental remediation costs | $ 18,000,000 | |
San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation for material sites | $ 74,000,000 |
Commitments and Contingencies69
Commitments and Contingencies (Nuclear Insurance) (Details) - Nuclear Insurance | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |
Federal limit on public liability claims from nuclear incident, approximate | $ 13,400,000,000 |
SCE and other owners of San Onofre and Palo Verde | San Onofre and Palo Verde | |
Schedule Of Commitments And Contingencies [Line Items] | |
Loss limit, property damage insurance, federal minimum requirement | 1,060,000,000 |
Southern California Edison | |
Schedule Of Commitments And Contingencies [Line Items] | |
Limit on assessment of retrospective premium adjustments, per year, approximate | 52,000,000 |
Maximum assessment per each nuclear incident | 255,000,000 |
Maximum yearly assessment per nuclear incident | $ 38,000,000 |
Commitments and Contingencies70
Commitments and Contingencies (Wildfire Insurance) (Details) - Southern California Edison | Jun. 30, 2017USD ($) |
Schedule Of Commitments And Contingencies [Line Items] | |
Threshold for wildfire claims (new lines for additional coverage) | $ 1,000,000,000 |
Self-insured retention per wildfire occurrence | $ 10,000,000 |
Commitments and Contingencies71
Commitments and Contingencies (Spent Nuclear Fuel) (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Apr. 30, 2016 | Jun. 30, 2010 | Feb. 28, 2017 | Sep. 30, 2016 | |
SCE and other owners of San Onofre and Palo Verde | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Damages sought | $ 142 | |||
Damage award | $ 162 | |||
Claim to recover damages incurred | $ 43 | |||
Southern California Edison | ||||
Schedule Of Commitments And Contingencies [Line Items] | ||||
Damages sought | $ 112 | |||
Damage award | $ 124 | |||
Claim to recover damages incurred | $ 34 | $ 56 |
Preferred and Preference Stoc72
Preferred and Preference Stock of SCE (Details) - USD ($) | Jul. 27, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Class of Stock [Line Items] | |||
Redemption of trust securities | $ 125,000,000 | ||
Southern California Edison | |||
Class of Stock [Line Items] | |||
Redemption of trust securities | $ 125,000,000 | ||
Southern California Edison | Series F Preferred Stock | Forecast | |||
Class of Stock [Line Items] | |||
Redemption of trust securities | $ 475,000,000 | ||
Southern California Edison | Trust VI | Variable Interest Entity, Not Primary Beneficiary | Series L Preferred Stock | |||
Class of Stock [Line Items] | |||
Liquidation preference | $ 475,000,000 | ||
Security dividend rate | 5.00% | ||
Preferred shares issued | 190,004 | ||
Liquidation value (in dollars per share) | $ 2,500 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension and PBOP – net loss: | ||||
Other | $ 0 | $ 0 | $ 2 | $ 0 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (49) | (54) | (53) | (56) |
Pension and PBOP – net loss: | ||||
Ending Balance | (48) | (53) | (48) | (53) |
Accumulated Other Comprehensive Loss | Southern California Edison | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (18) | (21) | (20) | (22) |
Pension and PBOP – net loss: | ||||
Ending Balance | (18) | (20) | (18) | (20) |
Accumulated Defined Benefit Plans Adjustment | ||||
Pension and PBOP – net loss: | ||||
Reclassified from accumulated other comprehensive loss | 1 | 1 | 3 | 3 |
Other | 0 | 0 | 2 | 0 |
Change | 1 | 1 | 5 | 3 |
Accumulated Defined Benefit Plans Adjustment | Southern California Edison | ||||
Pension and PBOP – net loss: | ||||
Reclassified from accumulated other comprehensive loss | 1 | 1 | 2 | 2 |
Other | (1) | 0 | 0 | 0 |
Change | $ 0 | $ 1 | $ 2 | $ 2 |
Interest and Other Income and74
Interest and Other Income and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
SCE interest and other income: | ||||
Total Edison International interest and other income | $ 37 | $ 33 | $ 70 | $ 65 |
SCE other expenses: | ||||
Total other expenses | 12 | 11 | 20 | 19 |
Edison International Parent and Other | ||||
SCE interest and other income: | ||||
Other income of Edison International Parent and Other | 1 | 0 | 1 | 0 |
SCE other expenses: | ||||
Other expenses of Edison International Parent and Other | 0 | 0 | 1 | 0 |
Southern California Edison | ||||
SCE interest and other income: | ||||
Equity allowance for funds used during construction | 23 | 19 | 41 | 42 |
Increase in cash surrender value of life insurance policies | 10 | 11 | 22 | 17 |
Interest income | 1 | 2 | 3 | 3 |
Other | 2 | 1 | 3 | 3 |
Total SCE interest and other income | 36 | 33 | 69 | 65 |
Total Edison International interest and other income | 36 | 33 | 69 | 65 |
SCE other expenses: | ||||
Civic, political and related activities and donations | 7 | 8 | 10 | 12 |
Other | 5 | 3 | 9 | 7 |
Total SCE other expenses | 12 | 11 | 19 | 19 |
Total other expenses | $ 12 | $ 11 | $ 19 | $ 19 |
Supplemental Cash Flows Infor75
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | $ 240 | $ 228 |
Tax payments, net of refunds | 14 | 12 |
Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | 177 | 156 |
Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | 12 | 12 |
Southern California Edison | ||
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | 223 | 221 |
Tax payments, net of refunds | 20 | 32 |
Dividends declared but not paid: | ||
Accrued capital expenditures | 283 | 338 |
Southern California Edison | Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | 0 | 0 |
Southern California Edison | Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | $ 12 | $ 12 |