Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 23, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total operating revenue | $ 2,815 | $ 2,965 | $ 5,379 | $ 5,428 |
Purchased power and fuel | 1,112 | 1,175 | 2,038 | 1,959 |
Operation and maintenance | 719 | 706 | 1,394 | 1,310 |
Depreciation and amortization | 463 | 512 | 925 | 1,011 |
Property and other taxes | 97 | 86 | 204 | 186 |
Impairment and other charges | 5 | 16 | 71 | 21 |
Other operating income | (1) | 0 | (3) | 0 |
Total operating expenses | 2,395 | 2,495 | 4,629 | 4,487 |
Operating income | 420 | 470 | 750 | 941 |
Interest expense | (180) | (159) | (350) | (311) |
Other income and expense | 49 | 24 | 100 | 57 |
Income from continuing operations before income taxes | 289 | 335 | 500 | 687 |
Income tax (benefit) expense | (9) | 26 | (40) | (14) |
Income from continuing operations | 298 | 309 | 540 | 701 |
Net income | 298 | 309 | 540 | 701 |
Preferred and preference stock dividend requirements of SCE | 30 | 31 | 60 | 62 |
Other noncontrolling interests | (8) | 0 | (14) | (1) |
Net income available for common stock | 276 | 278 | 494 | 640 |
Amounts attributable to Edison International common shareholders: | ||||
Income from continuing operations, net of tax | 276 | 278 | 494 | 640 |
Net income available for common stock | $ 276 | $ 278 | $ 494 | $ 640 |
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 | $ 0.85 | $ 1.52 | $ 1.96 |
Total (in dollars per share) | $ 0.85 | $ 0.85 | $ 1.52 | $ 1.96 |
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) | 327 | 329 | 327 | 329 |
Continuing operations (in dollars per share) | $ 0.84 | $ 0.85 | $ 1.51 | $ 1.95 |
Total (in dollars per share) | 0.84 | 0.85 | 1.51 | 1.95 |
Dividends declared per common share (in dollars per share) | $ 0.6050 | $ 0.5425 | $ 1.2100 | $ 1.0850 |
Southern California Edison Company | ||||
Total operating revenue | $ 2,803 | $ 2,953 | $ 5,357 | $ 5,409 |
Purchased power and fuel | 1,112 | 1,175 | 2,038 | 1,959 |
Operation and maintenance | 694 | 675 | 1,345 | 1,255 |
Depreciation and amortization | 462 | 510 | 921 | 1,007 |
Property and other taxes | 97 | 85 | 202 | 182 |
Other operating income | (1) | 0 | (2) | 0 |
Total operating expenses | 2,364 | 2,445 | 4,504 | 4,403 |
Operating income | 439 | 508 | 853 | 1,006 |
Interest expense | (164) | (146) | (319) | (287) |
Other income and expense | 50 | 33 | 101 | 68 |
Income from continuing operations before income taxes | 325 | 395 | 635 | 787 |
Income tax (benefit) expense | (2) | 57 | (8) | 69 |
Net income | 327 | 338 | 643 | 718 |
Preferred and preference stock dividend requirements of SCE | 30 | 31 | 60 | 62 |
Net income available for common stock | 297 | 307 | 583 | 656 |
Amounts attributable to Edison International common shareholders: | ||||
Net income available for common stock | $ 297 | $ 307 | $ 583 | $ 656 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 298 | $ 309 | $ 540 | $ 701 |
Pension and postretirement benefits other than pensions: | ||||
Amortization of net loss included in net income | 2 | 1 | 4 | 3 |
Other | 0 | 0 | (5) | 2 |
Other comprehensive income (loss), net of tax | 2 | 1 | (1) | 5 |
Comprehensive income | 300 | 310 | 539 | 706 |
Less: Comprehensive income attributable to noncontrolling interests | 22 | 31 | 46 | 61 |
Comprehensive income attributable to Edison International | 278 | 279 | 493 | 645 |
Southern California Edison Company | ||||
Net income | 327 | 338 | 643 | 718 |
Pension and postretirement benefits other than pensions: | ||||
Amortization of net loss included in net income | 1 | 1 | 3 | 2 |
Other | 0 | (1) | (5) | 0 |
Other comprehensive income (loss), net of tax | 1 | 0 | (2) | 2 |
Comprehensive income | $ 328 | $ 338 | $ 641 | $ 720 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 99 | $ 1,091 |
Receivables, less allowances | 822 | 717 |
Accrued unbilled revenue | 598 | 212 |
Inventory | 252 | 242 |
Income tax receivables | 132 | 224 |
Prepaid expenses | 247 | 233 |
Derivative assets | 85 | 105 |
Regulatory assets | 860 | 703 |
Other current assets | 162 | 202 |
Total current assets | 3,257 | 3,729 |
Nuclear decommissioning trusts | 4,294 | 4,440 |
Other investments | 84 | 73 |
Total investments | 4,378 | 4,513 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,370 and $9,355 at respective dates | 39,750 | 38,708 |
Nonutility property, plant and equipment, less accumulated depreciation | 81 | 342 |
Total property, plant and equipment | 39,831 | 39,050 |
Regulatory assets | 5,022 | 4,914 |
Other long-term assets | 332 | 374 |
Total long-term assets | 5,354 | 5,288 |
Total assets | 52,820 | 52,580 |
LIABILITIES AND EQUITY | ||
Short-term debt | 300 | 2,393 |
Current portion of long-term debt | 479 | 481 |
Accounts payable | 1,255 | 1,503 |
Accrued taxes | 19 | 23 |
Customer deposits | 291 | 281 |
Regulatory liabilities | 1,341 | 1,121 |
Other current liabilities | 1,237 | 1,266 |
Total current liabilities | 4,922 | 7,068 |
Long-term debt | 13,845 | 11,642 |
Deferred income taxes and credits | 4,781 | 4,567 |
Pensions and benefits | 899 | 943 |
Asset retirement obligations | 2,889 | 2,908 |
Regulatory liabilities | 8,659 | 8,614 |
Other deferred credits and other long-term liabilities | 2,853 | 2,953 |
Total deferred credits and other liabilities | 20,081 | 19,985 |
Total liabilities | 38,848 | 38,695 |
Commitments and contingencies (Note 12) | ||
Redeemable noncontrolling interest | 0 | 19 |
Common stock, no par value | 2,537 | 2,526 |
Accumulated other comprehensive loss | (44) | (43) |
Retained earnings | 9,286 | 9,188 |
Total common shareholder's equity | 11,779 | 11,671 |
Noncontrolling interests – preferred and preference stock of SCE | 2,193 | 2,193 |
Other noncontrolling interests | 0 | 2 |
Total equity | 13,972 | 13,866 |
Total liabilities and equity | 52,820 | 52,580 |
Southern California Edison Company | ||
ASSETS | ||
Cash and cash equivalents | 25 | 515 |
Receivables, less allowances | 806 | 693 |
Accrued unbilled revenue | 598 | 212 |
Inventory | 252 | 242 |
Income tax receivables | 237 | 229 |
Prepaid expenses | 244 | 228 |
Derivative assets | 85 | 105 |
Regulatory assets | 860 | 703 |
Other current assets | 159 | 160 |
Total current assets | 3,266 | 3,087 |
Nuclear decommissioning trusts | 4,294 | 4,440 |
Other investments | 67 | 52 |
Total investments | 4,361 | 4,492 |
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,370 and $9,355 at respective dates | 39,750 | 38,708 |
Nonutility property, plant and equipment, less accumulated depreciation | 75 | 77 |
Total property, plant and equipment | 39,825 | 38,785 |
Regulatory assets | 5,022 | 4,914 |
Other long-term assets | 215 | 237 |
Total long-term assets | 5,237 | 5,151 |
Total assets | 52,689 | 51,515 |
LIABILITIES AND EQUITY | ||
Short-term debt | 300 | 1,238 |
Current portion of long-term debt | 479 | 479 |
Accounts payable | 1,395 | 1,519 |
Accrued taxes | 23 | 24 |
Customer deposits | 291 | 281 |
Regulatory liabilities | 1,341 | 1,121 |
Other current liabilities | 1,093 | 1,225 |
Total current liabilities | 4,922 | 5,887 |
Long-term debt | 12,107 | 10,428 |
Deferred income taxes and credits | 6,143 | 5,890 |
Pensions and benefits | 448 | 483 |
Asset retirement obligations | 2,889 | 2,892 |
Regulatory liabilities | 8,659 | 8,614 |
Other deferred credits and other long-term liabilities | 2,575 | 2,649 |
Total deferred credits and other liabilities | 20,714 | 20,528 |
Total liabilities | 37,743 | 36,843 |
Commitments and contingencies (Note 12) | ||
Common stock, no par value | 2,168 | 2,168 |
Additional paid-in capital | 676 | 671 |
Accumulated other comprehensive loss | (21) | (19) |
Retained earnings | 9,878 | 9,607 |
Total common shareholder's equity | 12,701 | 12,427 |
Noncontrolling interests – preferred and preference stock of SCE | 2,245 | 2,245 |
Total equity | 14,946 | 14,672 |
Total liabilities and equity | $ 52,689 | $ 51,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables, allowances for uncollectible accounts | $ 53 | $ 54 |
Utility property, plant and equipment, accumulated depreciation | 9,370 | 9,355 |
Nonutility property, plant and equipment, accumulated depreciation | $ 78 | $ 114 |
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 | $ 53 | $ 53 |
Utility property, plant and equipment, accumulated depreciation | 9,370 | 9,355 |
Nonutility property, plant and equipment, accumulated depreciation | $ 73 | $ 97 |
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, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 540 | $ 701 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 1,074 | 1,048 |
Allowance for equity during construction | (44) | (41) |
Impairment and other charges | 71 | 21 |
Deferred income taxes and investment tax credits | (5) | (12) |
Other | 35 | 15 |
Nuclear decommissioning trusts | (73) | (73) |
Changes in operating assets and liabilities: | ||
Receivables | (58) | (114) |
Inventory | (14) | 8 |
Accounts payable | (4) | 34 |
Tax receivables and payables | 90 | (40) |
Other current assets and liabilities | (533) | (130) |
Regulatory assets and liabilities, net | 204 | 39 |
Other noncurrent assets and liabilities | (66) | (18) |
Net cash provided by operating activities | 1,217 | 1,438 |
Cash flows from financing activities: | ||
Long-term debt issued or remarketed, net of discount and issuance costs | 2,417 | 1,523 |
Long-term debt matured | (213) | (442) |
Preference stock issued, net | 0 | 463 |
Short-term debt financing, net | (2,031) | (742) |
Payments for stock-based compensation | (21) | (337) |
Receipts from stock option exercises | 9 | 185 |
Dividends and distributions to noncontrolling interests | (60) | (62) |
Dividends paid | (394) | (354) |
Other | 39 | (11) |
Net cash (used in) provided by financing activities | (254) | 223 |
Cash flows from investing activities: | ||
Capital expenditures | (2,159) | (1,759) |
Proceeds from sale of nuclear decommissioning trust investments | 1,770 | 3,046 |
Purchases of nuclear decommissioning trust investments | (1,697) | (2,973) |
Proceeds from sale of SoCore Energy, net of cash acquired by buyer | 78 | 0 |
Other | 20 | 24 |
Net cash used in investing activities | (1,988) | (1,662) |
Net decrease in cash, cash equivalents and restricted cash | (1,025) | (1) |
Cash, cash equivalents and restricted cash at beginning of period | 1,132 | 114 |
Cash, cash equivalents and restricted cash at end of period | 107 | 113 |
Southern California Edison Company | ||
Cash flows from operating activities: | ||
Net income | 643 | 718 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation and amortization | 1,069 | 1,042 |
Allowance for equity during construction | (44) | (41) |
Deferred income taxes and investment tax credits | 12 | 193 |
Other | 29 | 8 |
Nuclear decommissioning trusts | (73) | (73) |
Changes in operating assets and liabilities: | ||
Receivables | (67) | (117) |
Inventory | (15) | 8 |
Accounts payable | (35) | 22 |
Tax receivables and payables | (9) | (37) |
Other current assets and liabilities | (381) | (113) |
Regulatory assets and liabilities, net | 204 | 39 |
Other noncurrent assets and liabilities | (21) | (123) |
Net cash provided by operating activities | 1,312 | 1,526 |
Cash flows from financing activities: | ||
Long-term debt issued or remarketed, net of discount and issuance costs | 1,872 | 1,126 |
Long-term debt matured | (198) | (441) |
Preference stock issued, net | 0 | 463 |
Short-term debt financing, net | (940) | (550) |
Payments for stock-based compensation | (8) | (71) |
Receipts from stock option exercises | 3 | 39 |
Dividends paid | (484) | (444) |
Other | 2 | (21) |
Net cash (used in) provided by financing activities | 247 | 101 |
Cash flows from investing activities: | ||
Capital expenditures | (2,141) | (1,722) |
Proceeds from sale of nuclear decommissioning trust investments | 1,770 | 3,046 |
Purchases of nuclear decommissioning trust investments | (1,697) | (2,973) |
Other | 20 | 22 |
Net cash used in investing activities | (2,048) | (1,627) |
Net decrease in cash, cash equivalents and restricted cash | (489) | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 515 | 40 |
Cash, cash equivalents and restricted cash at end of period | $ 26 | $ 40 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Discounts and issuance costs of long term debt | $ 33 | $ 12 |
Southern California Edison Company | ||
Discounts and issuance costs of long term debt | $ 28 | $ 9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for subsidiaries engaged in competitive business opportunities, including Edison Energy, LLC ("Edison Energy") which provides energy services to commercial and industrial customers. Edison Energy Group's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other 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 and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE 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, 2017 (the "2017 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2017 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 period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. The December 31, 2017 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. Effective January 1, 2018, Edison International and SCE adopted several accounting standards retrospectively. Prior year financial statements have been reclassified and updated to reflect the retrospective application of these standards as applicable. For further information, see "New Accounting Guidance" below. Sale of SoCore Energy On February 28, 2018 , Edison International agreed to sell SoCore Energy LLC ("SoCore Energy"), a subsidiary of Edison Energy Group, to a third party, subject to the completion of closing conditions, which were satisfied on April 16, 2018. As a result, the assets and liabilities of SoCore Energy were not reflected in the June 30, 2018 consolidated Edison International balance sheet and Edison International recognized a pre-tax loss of $63 million ( $46 million after-tax) for the six months ended June 30, 2018 . Cash, Cash Equivalents and Restricted Cash Cash equivalents include 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, 2017 June 30, December 31, 2017 Money market funds $ 57 $ 1,024 $ — $ 483 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, 2017 June 30, December 31, 2017 Book balances reclassified to accounts payable $ 16 $ 64 $ 16 $ 63 Edison International's restricted cash at June 30, 2018 and December 31, 2017 was $8 million and $41 million , respectively. Restricted cash at December 31, 2017 primarily relates to funds held by SoCore Energy and its consolidated affiliates pursuant to project financing or purchase agreements, most of which lapsed during six months ended June 30, 2018. As a result of the sale of SoCore Energy, the assets and liabilities of SoCore Energy were not included in the June 30, 2018 consolidated Edison International balance sheet as discussed above. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: (in millions) June 30, 2018 December 31, 2017 Edison International: Cash and cash equivalents $ 99 $ 1,091 Short-term restricted cash 1 1 40 Long-term restricted cash 2 7 1 Total cash, cash equivalents, and restricted cash $ 107 $ 1,132 SCE: Cash and cash equivalents $ 25 $ 515 Short-term restricted cash 1 1 — Total cash, cash equivalents, and restricted cash $ 26 $ 515 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Reflected in "Other long-term assets" on Edison International's consolidated balance sheets. Revenue Recognition During the first six months of 2018, pending the outcome of the 2018 GRC decision, SCE recognized GRC-related revenue based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and the impact of Tax Reform. The amounts billed to customers for the first six months of 2018 were based on the 2017 authorized revenue requirement and a regulatory liability has been established to record the associated adjustments. See Note 11 for further details. The CPUC has authorized the establishment of a GRC memorandum account, which will make the 2018 revenue requirement ultimately adopted by the CPUC effective as of January 1, 2018. SCE cannot predict the revenue requirement the CPUC will authorize or provide assurance on the timing of a final decision. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. Pending resolution of the FERC formula rate proceeding, SCE is recognizing revenue based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. 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 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) 2018 2017 2018 2017 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 276 $ 278 $ 494 $ 640 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 276 $ 278 $ 494 $ 640 Weighted average common shares outstanding 326 326 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.85 $ 1.52 $ 1.96 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 276 $ 278 $ 494 $ 640 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 276 $ 278 $ 494 $ 640 Income impact of assumed conversions — — — — Income from continuing operations available to common shareholders and assumed conversions $ 276 $ 278 $ 494 $ 640 Weighted average common shares outstanding 326 326 326 326 Incremental shares from assumed conversions 1 3 1 3 Adjusted weighted average shares – diluted 327 329 327 329 Diluted earnings per share – continuing operations $ 0.84 $ 0.85 $ 1.51 $ 1.95 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 6,223,964 and 1,327,310 shares of common stock for the three months ended June 30, 2018 and 2017 , respectively, and 6,223,964 and 1,370,200 shares for the six months ended June 30, 2018 and 2017, 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 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 a good or service is transferred to the customer and the customer obtains control of the good or service. Some revenue arrangements, such as alternative revenue programs which include balancing account overcollections and undercollections, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenue recognized from contracts with customers in the disclosures. Edison International and SCE adopted this standard effective January 1, 2018, using the modified retrospective method for contracts that were not completed as of the adoption date. Edison International recognized a cumulative effect adjustment to increase the opening balance of retained earnings by approximately $5 million ( $7 million pre-tax) on January 1, 2018. This adjustment is related to variable consideration recognized at Edison Energy which is not subject to potential significant reversal and has no further performance obligations. See Note 7 for further details. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments, and further amended the guidance in 2018. Under the new guidance, equity investments (excluding those accounted for under the equity method or those that result in consolidation) are required to be measured at fair value, with changes in fair value recognized in net income. The new guidance also amends certain disclosure requirements associated with the fair value of financial instruments and 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 assets. Edison International and SCE adopted this guidance effective January 1, 2018. Edison International recognized a cumulative effect adjustment to increase the opening balance of retained earnings and accumulated other comprehensive loss by $5 million ( $8 million pre-tax) on January 1, 2018. See Note 2 for further details. In August and November 2016, the FASB issued two accounting standards updates to clarify the presentation and classification of certain cash receipts and payments in the statement of cash flows and to require restricted cash to be presented with cash and cash equivalents in the statement of cash flows. Edison International and SCE adopted these standards effective January 1, 2018, using the retrospective approach. The adoption of these standards did not have a material impact on Edison International's and SCE's consolidated statement of cash flows. In March 2017, the FASB issued an accounting standards update on the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. Edison International and SCE adopted this guidance retrospectively with respect to the income statement presentation requirement and prospectively for the capitalization requirement, effective January 1, 2018. The adoption of this standard did not have a material impact on Edison International's and SCE's consolidated financial statements, but did result in the separate presentation of service costs as an operating expense and non-service costs within other income and expenses and the limitation of the capitalization of benefit costs to the service cost component. During the three and six months ended June 30, 2017, non-service costs (benefits) totaled $1 million and $(7) million , respectively, for Edison International and $(9) million and $(18) million , respectively, for SCE, which were reclassified from "Operation and maintenance" to "Other income and expenses." See Note 9 and Note 14 for further details. Accounting Guidance Not Yet Adopted In February 2016, the FASB issued an accounting standards update related to lease accounting and further amended the standard in 2018. The new guidance is effective January 1, 2019. 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 the lease payments. The asset will be based on the liability, subject to adjustments, such as initial direct costs. Edison International's 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 recognize expense using the timing that conforms to the regulatory rate treatment. In accordance with the new guidance, Edison International and SCE will elect to exclude from the balance sheet short-term contracts of one year or less. In addition, Edison International and SCE will elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs and are currently evaluating the impact of an optional transition method to not restate periods prior to the adoption date. Although permitted, Edison International and SCE have elected not to adopt this guidance prior to January 1, 2019. 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 implementing a new lease accounting system and are evaluating the impact this standard will have quantitatively on the consolidated balance sheets and the lease disclosures. The FASB 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. 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 to apply the goodwill impairment test. After the adoption of this accounting standards update, a goodwill impairment will be measured as 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 goodwill impairment tests beginning in 2020. In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. The new guidance is effective January 1, 2019, with early adoption permitted. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income but the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE will adopt this guidance on January 1, 2019 and reclassify stranded tax effects from accumulated other comprehensive income to retained earnings in the period of adoption. The adoption of the standard is not expected to have a material impact on Edison International's and SCE's consolidated financial statements. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity Balance at December 31, 2017 $ 2,526 $ (43 ) $ 9,188 $ 11,671 $ 2 $ 2,193 $ 13,866 Net income — — 494 494 (11 ) 60 543 Other comprehensive income — 4 — 4 — — 4 Cumulative effect of accounting changes 1 — (5 ) 10 5 — — 5 Contributions from tax equity investor — — — — 24 — 24 Common stock dividends declared ($1.2100 per share) — — (394 ) (394 ) — — (394 ) Dividends to noncontrolling interests — — — — — (60 ) (60 ) Stock-based compensation — — (12 ) (12 ) — — (12 ) Noncash stock-based compensation 11 — — 11 — — 11 Deconsolidation of SoCore Energy — — — — (15 ) — (15 ) Balance at June 30, 2018 $ 2,537 $ (44 ) $ 9,286 $ 11,779 $ — $ 2,193 $ 13,972 1 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards updates on revenue recognition and measurement of financial instruments. 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 ) Noncash 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 SCE's changes in equity for the six months ended June 30, 2018 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2017 $ 2,168 $ 671 $ (19 ) $ 9,607 $ 2,245 $ 14,672 Net income — — — 643 — 643 Other comprehensive income — — 3 — — 3 Cumulative effect of accounting change 1 — — (5 ) 5 — — Dividends declared on common stock — — — (312 ) — (312 ) Dividends declared on preferred and preference stock — — — (60 ) — (60 ) Stock-based compensation — — — (5 ) — (5 ) Noncash stock-based compensation — 5 — — — 5 Balance at June 30, 2018 $ 2,168 $ 676 $ (21 ) $ 9,878 $ 2,245 $ 14,946 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on measurement of financial instruments. 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 ) Noncash 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 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
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. 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. 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 2017 Form 10-K. As a result, there is no significant potential exposure to loss to SCE from its variable interest in these VIEs. The aggregate contracted capacity dedicated to SCE from these VIE projects was 3,575 MW and 4,900 MW at June 30, 2018 and 2017 , respectively, and the amounts that SCE paid to these projects were $99 million and $106 million for the three months ended June 30, 2018 and 2017 , respectively, and $239 million and $246 million for six months ended June 30, 2018 and 2017 , respectively. These amounts are recoverable in customer rates, subject to reasonableness review. Unconsolidated Trusts of SCE SCE Trust II, Trust III, Trust IV, Trust V, and Trust VI were formed in 2013, 2014, 2015, 2016, and 2017, respectively, for the exclusive purpose of issuing the 5.10% , 5.75% , 5.375% , 5.45% , and 5.00% trust preference securities, respectively ("trust securities"). The trusts are VIEs. SCE has concluded that it is not the primary beneficiary of these VIEs as it does not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the trusts. SCE Trust II, Trust III, Trust IV, Trust V and Trust VI issued to the public trust securities in the face amounts of $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, liquidation amounts of $25 per share), respectively, and $10,000 of common stock each to SCE. The trusts invested the proceeds of these trust securities in Series G, Series H, Series J, Series K, and Series L Preference Stock issued by SCE in the principal amounts of $400 million , $275 million , $325 million , $300 million , and $475 million (cumulative, $2,500 per share liquidation values), respectively, which have substantially the same payment terms as the respective trust securities. The Series G, Series H, Series J, Series K, and Series L Preference Stock and the corresponding trust securities do not have a maturity date. Upon any redemption of any shares of the Series G, Series H, Series J, Series K, or Series L Preference Stock, a corresponding dollar amount of trust securities will be redeemed by the applicable trust. The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. SCE formed Trust I, a VIE, in 2012 for the exclusive purpose of issuing 5.625% trust preference securities. SCE Trust I issued trust securities in the face amounts of $475 million to the public and $10,000 of common stock to SCE. SCE Trust I invested the proceeds of these trust securities in Series F Preference Stock issued by SCE in the principal amount of $475 million . In July 2017, all of the outstanding Series F Preference Stock was redeemed, and accordingly, SCE Trust I redeemed $475 million of trust securities from the public and $10,000 of common stock from SCE. As a result in September 2017, SCE Trust I was terminated. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of June 30, 2018 and December 31, 2017 , consisted of investments of $400 million , $275 million , $325 million , $300 million , and $475 million in the Series G, Series H, Series J, Series K and Series L Preference Stock, respectively, $400 million , $275 million , $325 million , $300 million , and $475 million of trust securities, respectively, and $10,000 each of common stock. The following table provides a summary of the trusts' income statements: Three months ended June 30, (in millions) Trust I Trust II Trust III Trust IV Trust V Trust VI 2018 Dividend income * $ 5 $ 4 $ 5 $ 4 $ 6 Dividend distributions * 5 4 5 4 6 2017 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 2018 Dividend income * $ 10 $ 8 $ 9 $ 8 $ 12 Dividend distributions * 10 8 9 8 12 2017 Dividend income $ 13 $ 10 $ 8 $ 9 $ 8 $ — Dividend distributions 13 10 8 9 8 — * Not applicable |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017 , 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 (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – The fair value of SCE's Level 3 assets and liabilities is determined using the income approach through various models and techniques that require significant unobservable inputs. This level includes derivative contracts that trade infrequently such as congestion revenue rights ("CRRs"). Edison International Parent and Other does not have any Level 3 assets and liabilities. Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments. SCE The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy: June 30, 2018 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 40 $ 52 $ (4 ) $ 88 Other 12 21 — — 33 Nuclear decommissioning trusts: Stocks 2 1,527 — — — 1,527 Fixed Income 3 1,021 1,679 — — 2,700 Short-term investments, primarily cash equivalents 130 60 — — 190 Subtotal of nuclear decommissioning trusts 4 2,678 1,739 — — 4,417 Total assets 2,690 1,800 52 (4 ) 4,538 Liabilities at fair value Derivative contracts — 10 — (6 ) 4 Total liabilities — 10 — (6 ) 4 Net assets $ 2,690 $ 1,790 $ 52 $ 2 $ 4,534 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 9 $ 102 $ (1 ) $ 110 Other 495 — — — 495 Nuclear decommissioning trusts: Stocks 2 1,596 — — — 1,596 Fixed Income 3 1,065 1,665 — — 2,730 Short-term investments, primarily cash equivalents 101 72 — — 173 Subtotal of nuclear decommissioning trusts 4 2,762 1,737 — — 4,499 Total assets 3,257 1,746 102 (1 ) 5,104 Liabilities at fair value Derivative contracts — 2 1 (2 ) 1 Total liabilities — 2 1 (2 ) 1 Net assets $ 3,257 $ 1,744 $ 101 $ 1 $ 5,103 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% and 69% of SCE's equity investments were in companies located in the United States at June 30, 2018 and December 31, 2017 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $112 million and $102 million at June 30, 2018 and December 31, 2017 , respectively. 4 Excludes net payables of $123 million and $59 million at June 30, 2018 and December 31, 2017 , 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 $57 million and $541 million at June 30, 2018 and December 31, 2017 , respectively, classified as Level 1. SCE Fair Value of Level 3 The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 2018 2017 Fair value of net assets (liabilities) at beginning of period $ 81 $ (1,166 ) $ 101 $ (1,089 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (29 ) 11 (49 ) (66 ) Contract amendment 2 — 143 — 143 Fair value of net assets (liabilities) at end of period 3 $ 52 $ (1,012 ) $ 52 $ (1,012 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ 7 $ (12 ) $ 7 $ (97 ) 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. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. Edison International and SCE recognize the fair value for transfers in and transfers out of each level at the end of each reporting period. There were no material transfers between any levels during 2018 and 2017 . 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 Assets Liabilities Valuation Technique(s) Unobservable Input Range Congestion revenue rights June 30, 2018 $ 52 $ — Auction prices CAISO CRR auction prices $(5.49) - $8.79 December 31, 2017 102 — Auction prices CAISO CRR auction prices $(9.41) - $8.66 Level 3 Fair Value Sensitivity For CRRs, increases or decreases in CAISO auction price would result in higher or lower fair value, respectively. Nuclear Decommissioning Trusts SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. 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, 2018 December 31, 2017 (in millions) Carrying Value 1 Fair Value Carrying Value 1 Fair Value Edison International $ 14,324 $ 14,821 $ 12,123 $ 13,760 SCE 12,586 13,124 10,907 12,547 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. |
Debt and Credit Agreements
Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-Term Debt In January 2018, Edison International Parent borrowed $500 million under a Term Loan Agreement due in January 2019, with a variable interest rate based on the London Interbank Offered Rate plus 60 basis points . The proceeds were used to repay Edison International Parent's commercial paper borrowings. In March 2018, Edison International Parent issued $550 million of 4.125% senior notes due 2028. The proceeds from the March 2018 issuance were used to repay the $500 million Term Loan discussed above and for general corporate purposes. During the first quarter of 2018, SCE issued $450 million of 2.90% first and refunding mortgage bonds due 2021, $400 million of 3.65% first and refunding mortgage bonds due 2028 and $400 million of 4.125% first and refunding mortgage bonds due 2048. The proceeds from these bonds were used to repay commercial paper borrowings and for general corporate purposes. In June 2018, SCE issued $300 million of 3.40% first and refunding mortgage bonds due 2023 and $350 million of 4.125% first and refunding mortgage bonds due 2048. The proceeds from these bonds were used to repay commercial paper borrowings and for general corporate purposes. Credit Agreements and Short-Term Debt In May 2018, SCE and Edison International Parent amended their multi-year revolving credit facilities to increase the facilities to $3.0 billion and $1.5 billion from $2.75 billion and $1.25 billion , respectively. Both facilities mature in May 2023 and each has two 1-year extension options. 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, 2018 , SCE's outstanding commercial paper, net of discount, was $300 million at a weighted-average interest rate of 2.32% . At June 30, 2018 , letters of credit issued under SCE's credit facility aggregated $104 million , substantially all of which are scheduled to expire in twelve months or less. At December 31, 2017 , the outstanding commercial paper, net of discount, was $738 million at a weighted-average interest rate of 1.75% . In December 2017, SCE borrowed $500 million from the credit facility. The interest rate on this loan was 2.46% on December 31, 2017 . In January 2018, SCE repaid its $500 million borrowing with cash on hand. At June 30, 2018 , Edison International Parent had no outstanding commercial paper. At December 31, 2017 , the outstanding commercial paper, net of discount, was $639 million at a weighted-average interest rate of 1.70% . In December 2017, Edison International Parent borrowed $500 million from the credit facility. The interest rate on this loan was 2.56% on December 31, 2017 . In January 2018, Edison International Parent repaid its $500 million borrowing with cash on hand. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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, QF 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 offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power 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 $3 million and $1 million as of June 30, 2018 and December 31, 2017 , respectively, for which SCE has posted no collateral and less than $1 million collateral at June 30, 2018 and December 31, 2017 , respectively, to its counterparties for its derivative liabilities and related outstanding payables. If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2018 , SCE would be required to post $5 million of additional collateral of which $1 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 also offset against margin and cash collateral deposits. In addition, SCE has provided collateral in the form of letters of credit. Collateral requirements can vary depending upon the level of unsecured credit extended by counterparties, changes in market prices relative to contractual commitments, and other factors. See Note 4 for a discussion of fair value of derivative instruments. The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: June 30, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 89 $ 3 $ 92 $ 10 $ — $ 10 $ 82 Gross amounts offset in the consolidated balance sheets (4 ) — (4 ) (4 ) — (4 ) — Cash collateral posted — — — (2 ) — (2 ) 2 Net amounts presented in the consolidated balance sheets $ 85 $ 3 $ 88 $ 4 $ — $ 4 $ 84 December 31, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 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 reported 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) 2018 2017 2018 2017 Realized losses $ (8 ) $ (3 ) $ (20 ) $ (5 ) Unrealized (losses) gains (12 ) 6 (26 ) (80 ) 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, 2018 December 31, 2017 Electricity options, swaps and forwards GWh 2,015 475 Natural gas options, swaps and forwards Bcf 141 143 Congestion revenue rights GWh 48,673 78,765 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. Edison International Parent and Other revenue primarily relates to Edison Energy Group, a holding company for subsidiaries engaged in pursuing competitive business opportunities across energy services and managed portfolio solutions to commercial and industrial customers. The revenue for Edison International Parent and Other is immaterial to Edison International. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales and the price of energy procured so that SCE receives revenue equal to amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity sold to customers and specific customer classes does not have a direct impact on SCE's financial results. SCE's revenue is disaggregated by two revenue sources: • Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenues or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances. • Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities. The following table is a summary of SCE's revenue: Three months ended June 30, 2018 Three months ended June 30, 2017 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers $ 1,534 $ 1,146 $ 2,680 * * * Alternative revenue programs and other operating revenue 1 122 123 * * * Total operating revenue $ 1,535 $ 1,268 $ 2,803 $ 1,584 $ 1,369 $ 2,953 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. Six months ended June 30, 2018 Six months ended June 30, 2017 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers $ 3,070 $ 2,338 $ 5,408 * * * Alternative revenue programs and other operating revenue (22 ) (29 ) (51 ) * * * Total operating revenue $ 3,048 $ 2,309 $ 5,357 $ 3,136 $ 2,273 $ 5,409 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. SCE's Revenue from Contracts with Customers Provision of Electricity SCE principally generates revenue from contracts with customers through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Revenue is authorized by the CPUC through triennial GRC proceedings which are intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its CPUC-jurisdictional rate base. The CPUC sets an annual revenue requirement for the base year and the remaining two years are set by a methodology established in the GRC proceeding. Differences between the amount collected and authorized levels are either collected from or refunded to customers, and therefore, such differences do not impact operating revenue (see alternative revenue programs below for further information). In addition to the utility earnings activity revenue described above, SCE also earns revenue to recover costs for power procurement and other activities. SCE earns no return on these activities. Revenue is authorized by the FERC through a formula rate which is intended to provide SCE a reasonable opportunity to recover transmission capital and operating costs that are prudently incurred, including a return on its FERC-jurisdictional rate base. Under the operation of the formula rate, transmission revenue is updated to actual cost of service annually. For SCE's electricity sales for non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity. Since SCE has a right to invoice an amount that corresponds to the value of the delivered electricity mandated in the tariff rates established by the CPUC and FERC, SCE is eligible for and has elected the right-to-invoice practical expedient to recognize revenue for tariff sales in the amount for which SCE has a right to invoice. This is consistent with how SCE recognized revenue for tariff sales prior to the adoption of the new standard. Energy sales for residential customers are typically on a month-to-month implied contract for transmission, distribution and generation services, while commercial and other non-residential customer contracts can extend up to 20 years . Revenue is recognized over time as the energy is supplied and delivered to its customers and the respective revenue is billed and paid on a monthly basis. Sales and Use Taxes SCE bills certain sales and use taxes levied by state or local governments to its customers. Included in these sales and use taxes are franchise fees, which SCE pays to various municipalities (based on contracts with these municipalities) in order to operate within the limits of the municipality. SCE bills these franchise fees to its customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of SCE's ability to collect from the customer, are accounted for on a gross basis. Revenue is reflected in "Revenue from contracts with customers" in 2018 (see table above) and in "Operating revenue" in 2017 and expenses are reflected in "Operation and maintenance." SCE's franchise fees billed to customers were $29 million and $28 million for the three months ended June 30, 2018 and 2017 , respectively, and $57 million for each of the six months ended June 30, 2018 and 2017 . When SCE acts as an agent for sales and use tax, the taxes are accounted for on a net basis. Amounts billed to and collected from customers for these taxes are remitted to the taxing authorities and are not recognized as electric utility revenue. Provision of Electrical Transmission Services and Other Revenue from Contracts with Customers SCE also provides services to non-residential customers that include the use of SCE's owned transmission lines to transmit electricity from generation facilities to the grid and provide the use of SCE-owned facilities to connect to the grid. SCE contracts with its customers through contracts that are on a month to month basis. The contract pricing for the use of SCE's transmission lines is mandated by tariff rates approved by either the CPUC or FERC, as applicable. Revenue is recognized over time as the services are provided. The revenue is billed and paid monthly. SCE also earns an immaterial amount of revenue through telecommunication services and the sale of excess energy to customers. The estimated revenue expected to be recognized in the future related to SCE's performance obligations that are not completed (or partially completed) at June 30, 2018 is immaterial. SCE's Alternative Revenue Programs Alternative Revenue Programs – Decoupling Rates charged to customers are based on CPUC- and FERC- authorized revenue requirements as discussed above. CPUC and FERC rates decouple authorized revenue from the volume of electricity sales. Differences between amounts collected and authorized levels are either collected from or refunded to customers, and therefore, SCE earns revenue equal to amounts authorized. The differences between amounts billed and authorized levels for both CPUC and FERC are reflected in "Alternative revenue programs and other operating revenue" in 2018 (see table above) and in "Operating revenue" in 2017. Other Alternative Revenue Programs The CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors or to compensate SCE for demand-side management initiatives and provide for incentive awards if SCE achieves certain objectives. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, revenue is recognized for these alternative revenue programs at the time the costs are incurred and, for incentive-based programs, at the time the awards are approved by the CPUC. SCE begins recognizing revenues for these programs when a program has been established by an order from either the CPUC or FERC that allows for automatic adjustment of future rates, the amount of revenue for the period is objectively determinable and probable of recovery and the revenue will be collected within 24 months following the end of the annual period. SCE's Contract Balances The following table provides information about SCE's receivables, accrued unbilled revenue and contract liabilities related to contracts from customers: (in millions) June 30, December 31, Receivables: Billed revenue $ 693 $ 613 Accrued unbilled revenues 598 212 Total receivables $ 1,291 $ 825 Contract liabilities 1 $ 20 $ 20 1 Contract liabilities are included in "Other current liabilities" and "Other deferred credits and long-term liabilities" on the consolidated balance sheets. SCE's contract receivables are shown above, gross of allowance for uncollectible accounts. Activities in the allowance for doubtful accounts for SCE's contracts with customers were as follows: (in millions) 2018 Balance at January 1, $ 36 Charged to costs and expenses 12 Write-offs (12 ) Balance at June 30, $ 36 SCE's contract liabilities primarily relate to cash advances received from customers for executory services related to the use of SCE's operating assets. Revenue is recognized monthly as the services are provided. The following table provides a summary of significant changes in SCE's contract liabilities: (in millions) 2018 Balance at January 1, $ 20 Additions 25 Revenue recognized during the period (25 ) Balance at June 30, $ 20 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Edison International: Income from continuing operations before income taxes $ 289 $ 335 $ 500 $ 687 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 61 117 105 241 Increase in income tax from: State tax, net of federal benefit — 6 (5 ) 16 Property-related 2 (69 ) (83 ) (138 ) (196 ) Change related to uncertain tax positions — (6 ) — (18 ) Shared-based compensation 3 — (3 ) — (46 ) Other (1 ) (5 ) (2 ) (11 ) Total income tax (benefit) expense from continuing operations $ (9 ) $ 26 $ (40 ) $ (14 ) Effective tax rate (3.1 )% 7.8 % (8.0 )% (2.0 )% SCE: Income from continuing operations before income taxes $ 325 $ 395 $ 635 $ 787 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 68 138 133 275 Increase in income tax from: State tax, net of federal benefit 3 9 4 22 Property-related 2 (69 ) (83 ) (138 ) (196 ) Change related to uncertain tax positions — — (1 ) (11 ) Shared-based compensation 3 — (1 ) — (9 ) Other (4 ) (6 ) (6 ) (12 ) Total income tax (benefit) expense from continuing operations $ (2 ) $ 57 $ (8 ) $ 69 Effective tax rate (0.6 )% 14.4 % (1.3 )% 8.8 % 1 Tax Reform reduced the federal corporate income tax rate from 35% to 21% , effective January 1, 2018. 2 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. 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 2017 effective tax rate. 3 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 . 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. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits: Edison International SCE (in millions) 2018 2017 2018 2017 Balance at January 1, $ 432 $ 471 $ 331 $ 371 Tax positions taken during the current year: Increases 21 20 21 20 Tax positions taken during a prior year: Increases — 3 — 3 Decreases (7 ) — (7 ) — Decreases for settlements during the period 1 — (83 ) — (78 ) Balance at June 30, $ 446 $ 411 $ 345 $ 316 1 In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012. 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 2014 – 2016 and 2010 – 2016, respectively. Edison International has settled all open tax positions with the IRS for taxable years prior to 2013. Edison International expects to receive a final settlement for tax years 1994 – 2006 from the California Franchise Tax Board by year end 2018. Upon receipt of this settlement, SCE expects to update its assessment of uncertain tax positions. Tax years 2007 – 2009 are currently under protest with the California Franchise Tax Board. |
Compensation and Benefit Plans
Compensation and Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Compensation and Benefit Plans | Compensation and Benefit Plans Pension Plans Edison International made contributions of $23 million during the six months ended June 30, 2018 , which includes contributions of $14 million by SCE. Edison International expects to make contributions of $43 million during the remainder of 2018 , which includes $36 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. Net periodic pension expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 3 2018 2017 3 Edison International: Service cost $ 32 $ 36 $ 64 $ 72 Non-service cost Interest cost 35 41 70 82 Expected return on plan assets (56 ) (53 ) (113 ) (106 ) Settlement costs 1 — 8 — 8 Amortization of prior service cost — 1 1 2 Amortization of net loss 2 2 5 4 10 Regulatory adjustment (deferred) 3 (3 ) 5 (6 ) Total non-service cost (16 ) (1 ) (33 ) (10 ) Total expense recognized $ 16 $ 35 $ 31 $ 62 SCE: Service cost $ 31 $ 35 $ 62 $ 70 Non-service cost Interest cost 32 37 64 74 Expected return on plan assets (54 ) (50 ) (107 ) (100 ) Amortization of prior service cost — 1 1 2 Amortization of net loss 2 2 4 3 8 Regulatory adjustment (deferred) 3 (3 ) 5 (6 ) Total non-service cost (17 ) (11 ) (34 ) (22 ) Total expense recognized $ 14 $ 24 $ 28 $ 48 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 $8 million ( $5 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 $2 million , respectively, for the three months ended June 30, 2018 , and $4 million and $3 million , respectively, for the six months ended June 30, 2018 . 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 . 3 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. Postretirement Benefits Other Than Pensions ("PBOP(s)") Edison International made contributions of $6 million during the six months ended June 30, 2018 and expects to make an additional $6 million of contributions during the remainder of 2018 , 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 in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Under the terms of the Edison International Health and Welfare Benefit 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. Net periodic PBOP expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 1 2018 2017 1 Edison International: Service cost $ 10 $ 9 $ 19 $ 18 Non-service cost Interest cost 21 24 42 48 Expected return on plan assets (30 ) (27 ) (60 ) (54 ) Amortization of prior service cost (1 ) (1 ) (1 ) (2 ) Total non-service cost (10 ) (4 ) (19 ) (8 ) Total expense $ — $ 5 $ — $ 10 SCE: Service cost $ 10 $ 9 $ 19 $ 18 Non-service cost Interest cost 21 24 42 48 Expected return on plan assets (30 ) (27 ) (60 ) (54 ) Amortization of prior service cost (1 ) (1 ) (1 ) (2 ) Total non-service cost (10 ) (4 ) (19 ) (8 ) Total expense $ — $ 5 $ — $ 10 1 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 Stocks — * $ 236 $ 1,527 $ 1,596 Municipal bonds 2057 650 643 753 768 U.S. government and agency securities 2067 1,214 1,235 1,281 1,319 Corporate bonds 2057 623 579 666 643 Short-term investments and receivables/payables 1 One-year 65 110 67 114 Total $ 2,552 $ 2,803 $ 4,294 $ 4,440 * Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information. 1 Short-term investments include $47 million and $29 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 2, 2018 and January 2, 2018 as of June 30, 2018 and December 31, 2017 , 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 $1.5 billion and $1.6 billion at June 30, 2018 and December 31, 2017 , respectively, and other-than-temporary impairments of $159 million and $143 million at the respective periods. Trust assets are used to pay income taxes arising from trust investing activity. Deferred tax liabilities related to net unrealized gains at June 30, 2018 were $370 million . Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $3.9 billion at June 30, 2018 . For the three months ended June 30, 2018 and 2017 , gross realized gains were $ 26 million and $13 million , respectively. Gross realized losses were $2 million for the three months ended June 30, 2018 and there were no gross realized losses for the three months ended June 30, 2017 . For the six months ended June 30, 2018 and 2017 , gross realized gains were $87 million and $112 million , respectively, and gross realized losses were $10 million and $16 million respectively. Unrealized losses, net of gains, for equity securities were $5 million and unrealized gains, net of losses, for equity securities were $59 million for the three months ended June 30, 2018 and 2017 , respectively. Unrealized losses, net of gains, for equity securities were $68 million and unrealized gains, net of losses, for equity securities were $79 million for the six months ended June 30, 2018 and 2017 . Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
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 $ 642 $ 484 Power contracts and energy derivatives 203 203 Other 15 16 Total current 860 703 Long-term: Deferred income taxes, net of liabilities 3,306 3,143 Pensions and other postretirement benefits 265 271 Power contracts and energy derivatives 741 799 Unamortized investments, net of accumulated amortization 117 123 San Onofre 1 72 72 Unamortized loss on reacquired debt 160 168 Regulatory balancing accounts 175 143 Environmental Remediation 137 144 Other 49 51 Total long-term 5,022 4,914 Total regulatory assets $ 5,882 $ 5,617 1 In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset. SCE has requested to apply $72 million of the U.S. Department of Energy ("DOE") proceeds, currently reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset. See Note 12 for further information. Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: (in millions) June 30, December 31, Current: Regulatory balancing accounts $ 1,004 $ 1,009 Energy derivatives 50 74 San Onofre 1 96 5 Other 2 191 33 Total current 1,341 1,121 Long-term: Costs of removal 2,804 2,741 Re-measurement of deferred taxes 2,815 2,892 Recoveries in excess of ARO liabilities 3 1,438 1,575 Regulatory balancing accounts 1,539 1,316 Other postretirement benefits 26 26 Other 37 64 Total long-term 8,659 8,614 Total regulatory liabilities $ 10,000 $ 9,735 1 During the six months ended June 30, 2018, SCE recorded San Onofre revenue based on the Prior San Onofre Settlement Agreement. As a result of the Revised San Onofre Settlement Agreement, SCE recorded a regulatory liability pending the CPUC approval of the agreement. See Note 12 for additional information. 2 During the six months ended June 30, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded a regulatory liability primarily associated with these adjustments. 3 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 10 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 $ 452 $ 464 New system generation balancing account (190 ) (197 ) Public purpose programs and energy efficiency programs (1,270 ) (1,145 ) Tax accounting memorandum account and pole loading balancing account 4 (259 ) Base revenue requirement balancing account (500 ) (200 ) DOE litigation memorandum account (191 ) (156 ) Greenhouse gas auction revenue 140 (22 ) FERC balancing accounts (220 ) (205 ) Catastrophic event memorandum account 109 102 Other (60 ) (80 ) Liability $ (1,726 ) $ (1,698 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements, which are issued in the normal course of business. Edison International and SCE have provided indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, and indemnities for specified environmental liabilities and income taxes with respect to assets sold. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. SCE has indemnified the City of Redlands, California in connection with 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. Southern California Wildfires In December 2017, several wind-driven wildfires (the "December 2017 Wildfires") impacted portions of SCE's service territory and caused substantial damage to both residential and business properties and service outages for SCE customers. The largest of these fires, known as the Thomas Fire, originated in Ventura County and burned acreage located in both Ventura and Santa Barbara Counties. According to the most recent California Department of Forestry and Fire Protection ("Cal Fire") incident information reports, the Thomas Fire burned over 280,000 acres, destroyed an estimated 1,063 structures, damaged an estimated 280 structures and resulted in one fatality. As of June 30, 2018, SCE had incurred approximately $77 million of capital expenditures related to restoration of service resulting from the December 2017 Wildfires and the Montecito Mudslides. Determining wildfire origin and cause is often a complex and time-consuming process, and several investigations into the facts and circumstances of the Thomas Fire are believed to be ongoing. SCE has been advised that the origins and causes of the fire are being investigated by Cal Fire and the Ventura County Fire Department. In connection with its investigation of the Thomas Fire, Cal Fire has removed and retained certain of SCE's equipment that was located near suspected ignition points of the fire. SCE expects that the Ventura County Fire Department and/or Cal Fire will ultimately issue reports concerning the origins and causes of the Thomas Fire but cannot predict when these reports will be released. The CPUC's SED is also conducting an investigation to assess the compliance of SCE and its facilities with applicable rules and regulations in areas impacted by the Thomas Fire. In addition, as it does in all wildfire matters in which its facilities may or are alleged to be involved, SCE is conducting its own review of the Thomas Fire. SCE's internal review of the Thomas Fire is complex and examines various matters including the number of ignition points, the location of those ignition points, fire progression and the attribution of damages to fires potentially ignited at separate ignition points. Due to these complexities, SCE cannot predict when its own review, or the investigations of Cal Fire, the Ventura County Fire Department or the SED, will be completed. The extent of potential liability for December 2017 Wildfire-related damages depends on a number of factors, including whether SCE substantially caused, or contributed to, the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. Certain California courts have previously found utilities to be strictly liable for property damage, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. The rationale stated by these courts for applying this theory to investor-owned utilities is that property damages resulting from a public improvement, such as the distribution of electricity, can be spread across the larger community that benefited from such improvement. However, in November 2017, the CPUC issued a decision denying SDG&E's request to include in its rates uninsured wildfire-related costs arising from several 2007 fires, finding that SDG&E did not prudently manage and operate its facilities prior to or at the outset of the 2007 wildfires. In July 2018, the CPUC denied both SDG&E's application for rehearing on its cost recovery request and a joint application for rehearing filed by SCE and PG&E limited to the applicability of inverse condemnation principles in the same proceeding. When inverse condemnation is held to be applicable to a utility, the utility may be held strictly liable for property damages and associated interest and attorneys' fees. If inverse condemnation is held to be inapplicable to SCE in connection with the December 2017 Wildfires, SCE could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's alleged negligence. If SCE is found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, medical expenses and personal injury/wrongful death claims. These potential liabilities, in the aggregate, could be material. Additionally, SCE could potentially be subject to fines for alleged violations of CPUC rules and laws in connection with the December 2017 Wildfires. SCE is aware of multiple lawsuits filed related to the Thomas Fire naming SCE as a defendant. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. The lawsuits, which have been filed in the superior courts of Ventura, Santa Barbara and Los Angeles Counties allege, among other things, negligence, inverse condemnation, trespass, private nuisance, and violations of the public utilities and health and safety codes. By order of the Chair of the California Judicial Council, the lawsuits are being coordinated in the Los Angeles Superior Court. SCE expects to be the subject of additional lawsuits related to the Thomas Fire. The litigation could take a number of years to be resolved because of the complexity of the matters. Additionally, in July 2018, a derivative lawsuit for breach of fiduciary duties and unjust enrichment was filed in the Los Angeles Superior Court against certain current and former members of the Boards of Directors of Edison International and SCE (collectively, the "Individual Defendants"). Edison International and SCE are identified as nominal defendants in that action. The derivative lawsuit generally alleges that the Individual Defendants violated their fiduciary duties by causing or allowing SCE to operate in an unsafe manner in violation of relevant regulations, resulting in substantial liability and damage from the December 2017 Wildfires and the Montecito Mudslides. Given the ongoing uncertainty as to the causes of the Thomas Fire, the complexity of several potential ignition points, and the potential for separate damages to be attributable to fires ignited at separate ignition points, Edison International and SCE are currently unable to reasonably estimate a range of losses that may be incurred, but such losses may be material. For events that occurred in 2017, principally the December 2017 Wildfires, SCE has approximately $1 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in material self-insured costs in the event of multiple wildfire occurrences during a policy period. Should responsibility for a significant portion of the damages related to the December 2017 Wildfires be attributed to SCE, SCE's insurance may not be sufficient to cover all such damages. In addition, SCE may not be authorized to recover its uninsured damages through electric service rates if, for example, the CPUC finds that the damages were incurred because SCE did not prudently manage its facilities. Edison International and SCE are pursuing legislative, regulatory and legal strategies to address the application of a strict liability standard to wildfire-related damages without the ability to recover resulting damages in rates. Edison International and SCE cannot predict whether or when a solution mitigating the significant risk faced by a California investor-owned utility related to wildfires will be achieved. Current Wildfire Insurance Coverage SCE has approximately $1 billion of wildfire-specific insurance coverage for events that may occur during the period June 1, 2018 through December 30, 2018 and approximately $940 million of wildfire-specific insurance coverage for events that may occur during the period December 31, 2018 through May 31, 2019. SCE may obtain additional wildfire insurance for these time periods in the future. SCE's insurance coverage for wildfire-related claims is subject to a self-insured retention of $10 million per occurrence. Various coverage limitations within the policies that make up SCE's wildfire insurance coverage could result in material self-insured costs in the event of multiple wildfire occurrences during a policy period or in the event of an exceptionally large wildfire. SCE's cost of obtaining wildfire insurance coverage has increased significantly as a result of, among other things, the December 2017 Wildfires. SCE has requested approval from the CPUC for regulatory mechanisms to track and recover wildfire insurance premiums in excess of the amounts that are ultimately approved in a 2018 GRC decision. Montecito Mudslides In January 2018, torrential rains in Santa Barbara County produced mudslides and flooding in Montecito and surrounding areas (the "Montecito Mudslides"). According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in at least 21 fatalities, with two additional fatalities presumed. Of the lawsuits mentioned above, several allege that SCE has responsibility for the Thomas Fire and that the Thomas Fire proximately caused the Montecito Mudslides, resulting in the plaintiffs' claimed damages. Some of the Montecito Mudslides lawsuits also name Edison International as a defendant. In addition to other causes of action, some of the Montecito Mudslides lawsuits also allege personal injury and wrongful death. By order of the Chair of the California Judicial Council, the Thomas Fire and Montecito Mudslides lawsuits are being coordinated in the Los Angeles Superior Court. SCE expects that additional lawsuits related to the Montecito Mudslides will be filed. In the event that SCE is determined to have liability for damages caused by the Thomas Fire, SCE cannot predict whether the courts will conclude that the Montecito Mudslides were caused by the Thomas Fire or that SCE is liable for damages caused by the Montecito Mudslides. As a result, Edison International and SCE are currently unable to predict the outcome of the claims made against SCE and Edison International or reasonably estimate a range of losses that may be incurred. If it is determined that the Montecito Mudslides were caused by the Thomas Fire and that SCE is liable for damages caused by the Montecito Mudslides, then SCE's insurance coverage for such damages may be limited to its wildfire insurance. In January 2018, SCE also had other general liability insurance coverage of approximately $450 million but it is uncertain whether these other policies would apply to liabilities alleged to be related to the Montecito Mudslides. Additionally, if SCE is determined to be liable for a significant portion of costs associated with the Montecito Mudslides, SCE's insurance may not be sufficient to cover all such damages. In addition, SCE may not be authorized to recover its uninsured damages through electric service rates if, for example, the CPUC finds that the damages were incurred because SCE did not prudently manage its facilities. If it is ultimately determined that SCE is legally responsible for damages caused by the Montecito Mudslides and inverse condemnation is held to be applicable to SCE, SCE may be held liable for resulting property damages and associated interest and attorneys' fees. If inverse condemnation is held to be inapplicable to SCE in connection with the Montecito Mudslides, SCE could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's alleged negligence. If SCE is found negligent, SCE could also be held liable for, among other things, business interruption losses, evacuation costs, clean-up costs, medical expenses and personal injury/wrongful death claims associated with the Montecito Mudslides. These potential liabilities, in the aggregate, could be material. SCE cannot predict whether it will be subjected to regulatory fines related to the Montecito Mudslides. Permanent Retirement of San Onofre 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 San Onofre OII Settlement Agreement by and among The Utility Reform Network ("TURN"), the CPUC's Office of Ratepayers Advocates ("ORA"), San Diego Gas & Electric ("SDG&E"), the Coalition of California Utility Employees, and Friends of the Earth (the "Prior San Onofre Settlement Agreement"), which, at the time, 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 the Company not reporting certain ex parte communications on a timely basis, the Prior San Onofre 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. Entry into Revised Settlement Agreement On January 30, 2018 , SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, ORA, TURN, and Women's Energy Matters (the "OII Parties") entered into a Revised San Onofre Settlement Agreement in the San Onofre OII proceeding (the "Revised San Onofre Settlement Agreement"). If approved by the CPUC, the Revised San Onofre Settlement Agreement will resolve all issues under consideration in the San Onofre OII and will modify the Prior San Onofre Settlement Agreement. If approved by the CPUC, the Revised San Onofre Settlement Agreement will also result in the dismissal of a federal lawsuit currently pending in the Ninth Circuit Court of Appeals challenging the CPUC's authority to permit rate recovery of San Onofre costs. The Revised San Onofre Settlement Agreement was the result of multiple mediation sessions in 2017 and January 2018 and was signed on January 30, 2018 following a settlement conference in the OII, as required under CPUC rules. In June 2018, the CPUC issued a proposed decision approving all of the terms of the Revised San Onofre Settlement Agreement other than a provision under which SCE and SDG&E (the "Utilities") agreed to fund an aggregate of $12.5 million for a Research, Development and Demonstration program intended to develop technologies and methodologies to reduce greenhouse gas emissions (the "GHG Reduction Funding Program"). On July 12, 2018, SCE and certain of the other OII Parties filed comments with the CPUC recommending that the CPUC modify the proposed decision to approve the Revised San Onofre Settlement Agreement in its entirety. Certain parties to the San Onofre OII have also filed comments with the CPUC asserting their respective positions regarding the Revised San Onofre Settlement Agreement, including suggesting alternatives to the elimination of the GHG Reduction Funding Program. On July 26, 2018 , the CPUC approved the terms of the Revised San Onofre Settlement Agreement subject to the OII Parties eliminating the GHG Reduction Funding Program provision. The OII Parties, or a sufficient sub-set of the OII Parties, have ten days from July 26, 2018 to file a notice with the CPUC accepting elimination of the GHG Reduction Funding provision from the Revised San Onofre Settlement Agreement (the "Proposed Modification"). The Revised San Onofre Settlement Agreement with the Proposed Modification will become effective upon filing and service of the notice. If the OII Parties, or a sufficient sub-set of the OII Parties, do not file a notice accepting the Proposed Modification, the assigned ALJ will issue a ruling scheduling evidentiary hearings on the outstanding issues. Disallowances, Refunds and Recoveries If the Revised San Onofre Settlement Agreement is approved by the CPUC, the Utilities will cease rate recovery of San Onofre costs as of the date their combined remaining San Onofre regulatory assets equal $775 million (the "Cessation Date"). SCE has previously requested the CPUC to authorize SCE to reduce the San Onofre regulatory asset by applying $72 million of proceeds received from litigation with the DOE related to DOE's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. SCE expects a CPUC decision on its request in 2018. If its request is approved by the CPUC, the Cessation Date is estimated to be December 19, 2017. If its request is not approved by the CPUC, the Cessation Date is estimated to be April 21, 2018. The Utilities will refund to customers San Onofre-related amounts recovered in rates after the Cessation Date. SCE will retain amounts collected under the Prior San Onofre Settlement Agreement before the Cessation Date. SCE also will retain $47 million of proceeds received in 2017 from arbitration with Mitsubishi Heavy Industries ("MHI") over MHI's delivery of faulty steam generators. See Note 11 for additional information. In the Revised San Onofre Settlement Agreement, SCE retains the right to sell its stock of nuclear fuel and not share such proceeds with customers, as was provided in the Prior San Onofre Settlement Agreement. SCE intends to sell its nuclear fuel inventory as market conditions warrant. Proceeds from sales of nuclear fuel may be significant. If approved by the CPUC, the Revised San Onofre Settlement Agreement will also provide certain exclusions from the determination of SCE's ratemaking capital structure. Notwithstanding that SCE will no longer recover its San Onofre regulatory asset, the debt borrowed to finance the regulatory asset will continue to be excluded from SCE's ratemaking capital structure. Additionally, SCE may exclude the after-tax charge resulting from the implementation of the Revised San Onofre Settlement Agreement from its ratemaking capital structure. Additional 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 Prior San Onofre 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 Court of Appeals in May 2015. As part of the Revised San Onofre Settlement Agreement, and subject to CPUC approval of the Revised San Onofre Settlement Agreement, the plaintiffs agreed to dismiss this case with prejudice. In light of these developments, the Ninth Circuit appeal is currently stayed. 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 purports to be filed on behalf of a class of persons who acquired Edison International common stock between March 21, 2014 and June 24, 2015 (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 a second amended complaint in October 2016, 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. In March 2018, the federal court dismissed the third amended complaint with prejudice and entered judgment in defendants' favor. Plaintiffs' have appealed the dismissal. In November 2015, a purported 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. 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 another amended complaint in July 2017. Defendants filed a motion to dismiss the amended complaint and, in May 2018, the federal court again granted defendants' motion to dismiss the lawsuit with an opportunity for the plaintiff to amend her complaint. Plaintiff elected not to amend her complaint and will have an opportunity to file an appeal with the Ninth Circuit Court of Appeals after the lower court enters a final judgment. Edison International and SCE cannot predict the outcome of these proceedings. 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, 2018 , SCE's recorded estimated minimum liability to remediate its 20 identified material sites (sites with a liability balance at June 30, 2018 , in which the upper end of the range of the costs is at least $1 million ) was $138 million , including $91 million related to San Onofre. In addition to these sites, SCE also has 16 immaterial sites with a liability balance as of June 30, 2018 , for which the total minimum recorded liability was $4 million . Of the $142 million total environmental remediation liability for SCE, $137 million has been recorded as a regulatory asset. SCE expects to recover $44 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 $93 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 $135 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 $7 million to $13 million . Costs incurred for the six months ended June 30, 2018 and 2017 were $6 million and $4 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 $50 million and $1.06 billion , respectively. 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 $13.1 billion for Palo Verde and $560 million for San Onofre. SCE and other owners of San Onofre and Palo Verde have purchased the maximum private primary insurance available through a Facility Form issued by American Nuclear Insurers ("ANI"). SCE withdrew from participation in the secondary insurance pool for San Onofre for offsite liability insurance effective January 5, 2018. Based on its ownership interests in Palo Verde, SCE could be required to pay a maximum of approximately $60 million per nuclear incident for future incidents. However, it would have to pay no more than approximately $9 million per future incident in any one year. SCE could be required to pay a maximum of approximately $255 million per nuclear incident and a maximum of $38 million per year per incident for liabilities arising from events prior to January 5, 2018, although SCE is not aware of any such events. For more information on nuclear insurance coverage, see Note 11 in the 2017 Form 10-K. Spent Nuclear Fuel Under federal law, the 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 may 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 ). SCE accepted the DOE's determination, and the government paid the 2014 – 2015 claim under the terms of the settlement. In October 2017, SCE filed a claim covering damages for 2016 for approximately $58 million . In May 2018, the DOE approved reimbursement of approximately $45 million (SCE share was approximately $35 million ) of SCE's 2016 damages, not allowing recovery of approximately $13 millio |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Beginning balance $ (46 ) $ (49 ) $ (43 ) $ (53 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 2 1 4 3 Other 2 — — (5 ) 2 Change 2 1 (1 ) 5 Ending Balance $ (44 ) $ (48 ) $ (44 ) $ (48 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information. SCE's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 2018 2017 Beginning balance $ (22 ) $ (18 ) $ (19 ) $ (20 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 3 2 Other 2 — (1 ) (5 ) — Change 1 — (2 ) 2 Ending Balance $ (21 ) $ (18 ) $ (21 ) $ (18 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information. |
Other Income and Expenses
Other Income and Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other Income and Expenses Other income and expenses are as follows: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 2018 2017 SCE other income and expenses: Equity allowance for funds used during construction $ 22 $ 23 $ 44 $ 41 Increase in cash surrender value of life insurance policies and life insurance benefits 6 10 14 22 Interest income 5 1 9 3 Net periodic benefit income – non-service components 27 9 53 18 Civic, political and related activities and donations (12 ) (7 ) (16 ) (10 ) Other 2 (3 ) (3 ) (6 ) Total SCE other income and expenses 50 33 101 68 Other income and expenses of Edison International Parent and Other: Net periodic benefit costs – non-service components (1 ) (10 ) (1 ) (11 ) Other — 1 — — Total Edison International other income and expenses $ 49 $ 24 $ 100 $ 57 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 254 $ 240 $ 233 $ 223 Tax (refunds) payments, net (93 ) 14 (18 ) 20 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 197 $ 177 $ 100 $ — Preferred and preference stock 12 12 12 12 SCE's accrued capital expenditures at June 30, 2018 and 2017 were $412 million and $283 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, 2018 | |
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") and Edison Energy Group, Inc. ("Edison Energy Group"). SCE is an investor-owned public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area of southern California. Edison Energy Group is a holding company for subsidiaries engaged in competitive business opportunities, including Edison Energy, LLC ("Edison Energy") which provides energy services to commercial and industrial customers. Edison Energy Group's business activities are currently not material to report as a separate business segment. These combined notes to the consolidated financial statements apply to both Edison International and SCE unless otherwise described. Edison International's consolidated financial statements include the accounts of Edison International, SCE, and other 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 and "Edison International Parent" refer to Edison International on a stand-alone basis, not consolidated with its subsidiaries. SCE's consolidated financial statements include the accounts of SCE 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, 2017 (the "2017 Form 10-K"). This quarterly report should be read in conjunction with the financial statements and notes included in the 2017 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 period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. The December 31, 2017 financial statement data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents include 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. |
Revenue Recognition | Revenue Recognition During the first six months of 2018, pending the outcome of the 2018 GRC decision, SCE recognized GRC-related revenue based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and the impact of Tax Reform. The amounts billed to customers for the first six months of 2018 were based on the 2017 authorized revenue requirement and a regulatory liability has been established to record the associated adjustments. See Note 11 for further details. The CPUC has authorized the establishment of a GRC memorandum account, which will make the 2018 revenue requirement ultimately adopted by the CPUC effective as of January 1, 2018. SCE cannot predict the revenue requirement the CPUC will authorize or provide assurance on the timing of a final decision. In December 2017, the FERC issued an order setting the effective date of SCE's new FERC formula rate as of January 1, 2018, subject to settlement procedures and refund. Pending resolution of the FERC formula rate proceeding, SCE is recognizing revenue based on the FERC formula rate adjusted for the impact of Tax Reform and other adjustments. |
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 restricted stock units, which earn dividend equivalents on an equal basis with common shares once the awards are vested. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted 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 a good or service is transferred to the customer and the customer obtains control of the good or service. Some revenue arrangements, such as alternative revenue programs which include balancing account overcollections and undercollections, are excluded from the scope of the new standard and, therefore, will be accounted for and presented separately from revenue recognized from contracts with customers in the disclosures. Edison International and SCE adopted this standard effective January 1, 2018, using the modified retrospective method for contracts that were not completed as of the adoption date. Edison International recognized a cumulative effect adjustment to increase the opening balance of retained earnings by approximately $5 million ( $7 million pre-tax) on January 1, 2018. This adjustment is related to variable consideration recognized at Edison Energy which is not subject to potential significant reversal and has no further performance obligations. See Note 7 for further details. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments, and further amended the guidance in 2018. Under the new guidance, equity investments (excluding those accounted for under the equity method or those that result in consolidation) are required to be measured at fair value, with changes in fair value recognized in net income. The new guidance also amends certain disclosure requirements associated with the fair value of financial instruments and 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 assets. Edison International and SCE adopted this guidance effective January 1, 2018. Edison International recognized a cumulative effect adjustment to increase the opening balance of retained earnings and accumulated other comprehensive loss by $5 million ( $8 million pre-tax) on January 1, 2018. See Note 2 for further details. In August and November 2016, the FASB issued two accounting standards updates to clarify the presentation and classification of certain cash receipts and payments in the statement of cash flows and to require restricted cash to be presented with cash and cash equivalents in the statement of cash flows. Edison International and SCE adopted these standards effective January 1, 2018, using the retrospective approach. The adoption of these standards did not have a material impact on Edison International's and SCE's consolidated statement of cash flows. In March 2017, the FASB issued an accounting standards update on the presentation of the components of net periodic benefit cost for an entity's defined benefit pension and other postretirement plans. Edison International and SCE adopted this guidance retrospectively with respect to the income statement presentation requirement and prospectively for the capitalization requirement, effective January 1, 2018. The adoption of this standard did not have a material impact on Edison International's and SCE's consolidated financial statements, but did result in the separate presentation of service costs as an operating expense and non-service costs within other income and expenses and the limitation of the capitalization of benefit costs to the service cost component. During the three and six months ended June 30, 2017, non-service costs (benefits) totaled $1 million and $(7) million , respectively, for Edison International and $(9) million and $(18) million , respectively, for SCE, which were reclassified from "Operation and maintenance" to "Other income and expenses." See Note 9 and Note 14 for further details. Accounting Guidance Not Yet Adopted In February 2016, the FASB issued an accounting standards update related to lease accounting and further amended the standard in 2018. The new guidance is effective January 1, 2019. 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 the lease payments. The asset will be based on the liability, subject to adjustments, such as initial direct costs. Edison International's 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 recognize expense using the timing that conforms to the regulatory rate treatment. In accordance with the new guidance, Edison International and SCE will elect to exclude from the balance sheet short-term contracts of one year or less. In addition, Edison International and SCE will elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs and are currently evaluating the impact of an optional transition method to not restate periods prior to the adoption date. Although permitted, Edison International and SCE have elected not to adopt this guidance prior to January 1, 2019. 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 implementing a new lease accounting system and are evaluating the impact this standard will have quantitatively on the consolidated balance sheets and the lease disclosures. The FASB 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. 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 to apply the goodwill impairment test. After the adoption of this accounting standards update, a goodwill impairment will be measured as 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 goodwill impairment tests beginning in 2020. In February 2018, the FASB issued an accounting standards update to provide entities an election to reclassify stranded tax effects resulting from Tax Reform from accumulated other comprehensive income to retained earnings. The new guidance is effective January 1, 2019, with early adoption permitted. Stranded tax effects originated in December 2017 when deferred taxes were re-measured at the lower federal corporate tax rate with the impact included in operating income but the tax effects of items within accumulated other comprehensive income were not similarly adjusted. Edison International and SCE will adopt this guidance on January 1, 2019 and reclassify stranded tax effects from accumulated other comprehensive income to retained earnings in the period of adoption. The adoption of the standard is not expected to have a material impact on Edison International's and SCE's consolidated financial statements. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Cash Equivalents | The cash equivalents were as follows: Edison International SCE (in millions) June 30, December 31, 2017 June 30, December 31, 2017 Money market funds $ 57 $ 1,024 $ — $ 483 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, 2017 June 30, December 31, 2017 Book balances reclassified to accounts payable $ 16 $ 64 $ 16 $ 63 |
Cash, Cash Equivalents and Restricted Cash | The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: (in millions) June 30, 2018 December 31, 2017 Edison International: Cash and cash equivalents $ 99 $ 1,091 Short-term restricted cash 1 1 40 Long-term restricted cash 2 7 1 Total cash, cash equivalents, and restricted cash $ 107 $ 1,132 SCE: Cash and cash equivalents $ 25 $ 515 Short-term restricted cash 1 1 — Total cash, cash equivalents, and restricted cash $ 26 $ 515 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Reflected in "Other long-term assets" on Edison International's consolidated balance sheets. |
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) 2018 2017 2018 2017 Basic earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 276 $ 278 $ 494 $ 640 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 276 $ 278 $ 494 $ 640 Weighted average common shares outstanding 326 326 326 326 Basic earnings per share – continuing operations $ 0.85 $ 0.85 $ 1.52 $ 1.96 Diluted earnings per share – continuing operations: Income from continuing operations attributable to common shareholders $ 276 $ 278 $ 494 $ 640 Participating securities dividends — — — — Income from continuing operations available to common shareholders $ 276 $ 278 $ 494 $ 640 Income impact of assumed conversions — — — — Income from continuing operations available to common shareholders and assumed conversions $ 276 $ 278 $ 494 $ 640 Weighted average common shares outstanding 326 326 326 326 Incremental shares from assumed conversions 1 3 1 3 Adjusted weighted average shares – diluted 327 329 327 329 Diluted earnings per share – continuing operations $ 0.84 $ 0.85 $ 1.51 $ 1.95 |
Consolidated Statements of Ch25
Consolidated Statements of Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 : Equity Attributable to Common Shareholders Noncontrolling Interests (in millions, except per-share amounts) Common Stock Accumulated Retained Earnings Subtotal Other Preferred and Preference Stock Total Equity Balance at December 31, 2017 $ 2,526 $ (43 ) $ 9,188 $ 11,671 $ 2 $ 2,193 $ 13,866 Net income — — 494 494 (11 ) 60 543 Other comprehensive income — 4 — 4 — — 4 Cumulative effect of accounting changes 1 — (5 ) 10 5 — — 5 Contributions from tax equity investor — — — — 24 — 24 Common stock dividends declared ($1.2100 per share) — — (394 ) (394 ) — — (394 ) Dividends to noncontrolling interests — — — — — (60 ) (60 ) Stock-based compensation — — (12 ) (12 ) — — (12 ) Noncash stock-based compensation 11 — — 11 — — 11 Deconsolidation of SoCore Energy — — — — (15 ) — (15 ) Balance at June 30, 2018 $ 2,537 $ (44 ) $ 9,286 $ 11,779 $ — $ 2,193 $ 13,972 1 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards updates on revenue recognition and measurement of financial instruments. 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 ) Noncash 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 |
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, 2018 : Equity Attributable to Edison International (in millions) Common Additional Accumulated Retained Preferred Total Balance at December 31, 2017 $ 2,168 $ 671 $ (19 ) $ 9,607 $ 2,245 $ 14,672 Net income — — — 643 — 643 Other comprehensive income — — 3 — — 3 Cumulative effect of accounting change 1 — — (5 ) 5 — — Dividends declared on common stock — — — (312 ) — (312 ) Dividends declared on preferred and preference stock — — — (60 ) — (60 ) Stock-based compensation — — — (5 ) — (5 ) Noncash stock-based compensation — 5 — — — 5 Balance at June 30, 2018 $ 2,168 $ 676 $ (21 ) $ 9,878 $ 2,245 $ 14,946 1 SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on measurement of financial instruments. 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 ) Noncash 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 2018 Dividend income * $ 5 $ 4 $ 5 $ 4 $ 6 Dividend distributions * 5 4 5 4 6 2017 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 2018 Dividend income * $ 10 $ 8 $ 9 $ 8 $ 12 Dividend distributions * 10 8 9 8 12 2017 Dividend income $ 13 $ 10 $ 8 $ 9 $ 8 $ — Dividend distributions 13 10 8 9 8 — * Not applicable |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 December 31, 2017 (in millions) Carrying Value 1 Fair Value Carrying Value 1 Fair Value Edison International $ 14,324 $ 14,821 $ 12,123 $ 13,760 SCE 12,586 13,124 10,907 12,547 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, 2018 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 40 $ 52 $ (4 ) $ 88 Other 12 21 — — 33 Nuclear decommissioning trusts: Stocks 2 1,527 — — — 1,527 Fixed Income 3 1,021 1,679 — — 2,700 Short-term investments, primarily cash equivalents 130 60 — — 190 Subtotal of nuclear decommissioning trusts 4 2,678 1,739 — — 4,417 Total assets 2,690 1,800 52 (4 ) 4,538 Liabilities at fair value Derivative contracts — 10 — (6 ) 4 Total liabilities — 10 — (6 ) 4 Net assets $ 2,690 $ 1,790 $ 52 $ 2 $ 4,534 December 31, 2017 (in millions) Level 1 Level 2 Level 3 Netting and Collateral 1 Total Assets at fair value Derivative contracts $ — $ 9 $ 102 $ (1 ) $ 110 Other 495 — — — 495 Nuclear decommissioning trusts: Stocks 2 1,596 — — — 1,596 Fixed Income 3 1,065 1,665 — — 2,730 Short-term investments, primarily cash equivalents 101 72 — — 173 Subtotal of nuclear decommissioning trusts 4 2,762 1,737 — — 4,499 Total assets 3,257 1,746 102 (1 ) 5,104 Liabilities at fair value Derivative contracts — 2 1 (2 ) 1 Total liabilities — 2 1 (2 ) 1 Net assets $ 3,257 $ 1,744 $ 101 $ 1 $ 5,103 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 71% and 69% of SCE's equity investments were in companies located in the United States at June 30, 2018 and December 31, 2017 , respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $112 million and $102 million at June 30, 2018 and December 31, 2017 , respectively. 4 Excludes net payables of $123 million and $59 million at June 30, 2018 and December 31, 2017 , 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) 2018 2017 2018 2017 Fair value of net assets (liabilities) at beginning of period $ 81 $ (1,166 ) $ 101 $ (1,089 ) Total realized/unrealized gains (losses): Included in regulatory assets and liabilities 1 (29 ) 11 (49 ) (66 ) Contract amendment 2 — 143 — 143 Fair value of net assets (liabilities) at end of period 3 $ 52 $ (1,012 ) $ 52 $ (1,012 ) Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period $ 7 $ (12 ) $ 7 $ (97 ) 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. 3 During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of $914 million from derivative liabilities to other liabilities. |
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth SCE's valuation techniques and significant unobservable inputs used to determine fair value for significant Level 3 assets and liabilities: Fair Value (in millions) Significant Assets Liabilities Valuation Technique(s) Unobservable Input Range Congestion revenue rights June 30, 2018 $ 52 $ — Auction prices CAISO CRR auction prices $(5.49) - $8.79 December 31, 2017 102 — Auction prices CAISO CRR auction prices $(9.41) - $8.66 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) - Southern California Edison | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 89 $ 3 $ 92 $ 10 $ — $ 10 $ 82 Gross amounts offset in the consolidated balance sheets (4 ) — (4 ) (4 ) — (4 ) — Cash collateral posted — — — (2 ) — (2 ) 2 Net amounts presented in the consolidated balance sheets $ 85 $ 3 $ 88 $ 4 $ — $ 4 $ 84 December 31, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 |
Fair Value of Derivative Liabilities Instruments | The following table summarizes the gross and net fair values of SCE's commodity derivative instruments: June 30, 2018 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 89 $ 3 $ 92 $ 10 $ — $ 10 $ 82 Gross amounts offset in the consolidated balance sheets (4 ) — (4 ) (4 ) — (4 ) — Cash collateral posted — — — (2 ) — (2 ) 2 Net amounts presented in the consolidated balance sheets $ 85 $ 3 $ 88 $ 4 $ — $ 4 $ 84 December 31, 2017 Derivative Assets Derivative Liabilities Net (in millions) Short-Term Long-Term Subtotal Short-Term Long-Term Subtotal Commodity derivative contracts Gross amounts recognized $ 106 $ 5 $ 111 $ 3 $ — $ 3 $ 108 Gross amounts offset in the consolidated balance sheets (1 ) — (1 ) (1 ) — (1 ) — Cash collateral posted — — — (1 ) — (1 ) 1 Net amounts presented in the consolidated balance sheets $ 105 $ 5 $ 110 $ 1 $ — $ 1 $ 109 |
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) 2018 2017 2018 2017 Realized losses $ (8 ) $ (3 ) $ (20 ) $ (5 ) Unrealized (losses) gains (12 ) 6 (26 ) (80 ) |
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, 2018 December 31, 2017 Electricity options, swaps and forwards GWh 2,015 475 Natural gas options, swaps and forwards Bcf 141 143 Congestion revenue rights GWh 48,673 78,765 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue | The following table is a summary of SCE's revenue: Three months ended June 30, 2018 Three months ended June 30, 2017 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers $ 1,534 $ 1,146 $ 2,680 * * * Alternative revenue programs and other operating revenue 1 122 123 * * * Total operating revenue $ 1,535 $ 1,268 $ 2,803 $ 1,584 $ 1,369 $ 2,953 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. Six months ended June 30, 2018 Six months ended June 30, 2017 (in millions) Earning Cost- Total Earning Activities Cost-Recovery Activities Total Consolidated Revenues from contracts with customers $ 3,070 $ 2,338 $ 5,408 * * * Alternative revenue programs and other operating revenue (22 ) (29 ) (51 ) * * * Total operating revenue $ 3,048 $ 2,309 $ 5,357 $ 3,136 $ 2,273 $ 5,409 * As discussed in Note 1, prior period amounts have not been adjusted under the modified retrospective method. |
Receivables, Accrued Unbilled Revenue and Contract Liabilities | The following table provides a summary of significant changes in SCE's contract liabilities: (in millions) 2018 Balance at January 1, $ 20 Additions 25 Revenue recognized during the period (25 ) Balance at June 30, $ 20 The following table provides information about SCE's receivables, accrued unbilled revenue and contract liabilities related to contracts from customers: (in millions) June 30, December 31, Receivables: Billed revenue $ 693 $ 613 Accrued unbilled revenues 598 212 Total receivables $ 1,291 $ 825 Contract liabilities 1 $ 20 $ 20 1 Contract liabilities are included in "Other current liabilities" and "Other deferred credits and long-term liabilities" on the consolidated balance sheets. |
Activities in the Allowance for Doubtful Accounts | SCE's contract receivables are shown above, gross of allowance for uncollectible accounts. Activities in the allowance for doubtful accounts for SCE's contracts with customers were as follows: (in millions) 2018 Balance at January 1, $ 36 Charged to costs and expenses 12 Write-offs (12 ) Balance at June 30, $ 36 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Edison International: Income from continuing operations before income taxes $ 289 $ 335 $ 500 $ 687 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 61 117 105 241 Increase in income tax from: State tax, net of federal benefit — 6 (5 ) 16 Property-related 2 (69 ) (83 ) (138 ) (196 ) Change related to uncertain tax positions — (6 ) — (18 ) Shared-based compensation 3 — (3 ) — (46 ) Other (1 ) (5 ) (2 ) (11 ) Total income tax (benefit) expense from continuing operations $ (9 ) $ 26 $ (40 ) $ (14 ) Effective tax rate (3.1 )% 7.8 % (8.0 )% (2.0 )% SCE: Income from continuing operations before income taxes $ 325 $ 395 $ 635 $ 787 Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 68 138 133 275 Increase in income tax from: State tax, net of federal benefit 3 9 4 22 Property-related 2 (69 ) (83 ) (138 ) (196 ) Change related to uncertain tax positions — — (1 ) (11 ) Shared-based compensation 3 — (1 ) — (9 ) Other (4 ) (6 ) (6 ) (12 ) Total income tax (benefit) expense from continuing operations $ (2 ) $ 57 $ (8 ) $ 69 Effective tax rate (0.6 )% 14.4 % (1.3 )% 8.8 % 1 Tax Reform reduced the federal corporate income tax rate from 35% to 21% , effective January 1, 2018. 2 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. 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 2017 effective tax rate. 3 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 . |
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits: Edison International SCE (in millions) 2018 2017 2018 2017 Balance at January 1, $ 432 $ 471 $ 331 $ 371 Tax positions taken during the current year: Increases 21 20 21 20 Tax positions taken during a prior year: Increases — 3 — 3 Decreases (7 ) — (7 ) — Decreases for settlements during the period 1 — (83 ) — (78 ) Balance at June 30, $ 446 $ 411 $ 345 $ 316 1 In the first quarter of 2017, Edison International settled all open tax positions with the IRS for taxable years 2007 through 2012. |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expense Components for Plans | Net periodic pension expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 3 2018 2017 3 Edison International: Service cost $ 32 $ 36 $ 64 $ 72 Non-service cost Interest cost 35 41 70 82 Expected return on plan assets (56 ) (53 ) (113 ) (106 ) Settlement costs 1 — 8 — 8 Amortization of prior service cost — 1 1 2 Amortization of net loss 2 2 5 4 10 Regulatory adjustment (deferred) 3 (3 ) 5 (6 ) Total non-service cost (16 ) (1 ) (33 ) (10 ) Total expense recognized $ 16 $ 35 $ 31 $ 62 SCE: Service cost $ 31 $ 35 $ 62 $ 70 Non-service cost Interest cost 32 37 64 74 Expected return on plan assets (54 ) (50 ) (107 ) (100 ) Amortization of prior service cost — 1 1 2 Amortization of net loss 2 2 4 3 8 Regulatory adjustment (deferred) 3 (3 ) 5 (6 ) Total non-service cost (17 ) (11 ) (34 ) (22 ) Total expense recognized $ 14 $ 24 $ 28 $ 48 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 $8 million ( $5 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 $2 million , respectively, for the three months ended June 30, 2018 , and $4 million and $3 million , respectively, for the six months ended June 30, 2018 . 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 . 3 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
PBOP Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expense Components for Plans | Net periodic PBOP expense components for continuing operations are: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 1 2018 2017 1 Edison International: Service cost $ 10 $ 9 $ 19 $ 18 Non-service cost Interest cost 21 24 42 48 Expected return on plan assets (30 ) (27 ) (60 ) (54 ) Amortization of prior service cost (1 ) (1 ) (1 ) (2 ) Total non-service cost (10 ) (4 ) (19 ) (8 ) Total expense $ — $ 5 $ — $ 10 SCE: Service cost $ 10 $ 9 $ 19 $ 18 Non-service cost Interest cost 21 24 42 48 Expected return on plan assets (30 ) (27 ) (60 ) (54 ) Amortization of prior service cost (1 ) (1 ) (1 ) (2 ) Total non-service cost (10 ) (4 ) (19 ) (8 ) Total expense $ — $ 5 $ — $ 10 1 During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Southern California Edison | |
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, 2017 Stocks — * $ 236 $ 1,527 $ 1,596 Municipal bonds 2057 650 643 753 768 U.S. government and agency securities 2067 1,214 1,235 1,281 1,319 Corporate bonds 2057 623 579 666 643 Short-term investments and receivables/payables 1 One-year 65 110 67 114 Total $ 2,552 $ 2,803 $ 4,294 $ 4,440 * Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information. 1 Short-term investments include $47 million and $29 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by July 2, 2018 and January 2, 2018 as of June 30, 2018 and December 31, 2017 , respectively. |
Regulatory Assets and Liabili33
Regulatory Assets and Liabilities (Tables) - Southern California Edison | 6 Months Ended |
Jun. 30, 2018 | |
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 $ 642 $ 484 Power contracts and energy derivatives 203 203 Other 15 16 Total current 860 703 Long-term: Deferred income taxes, net of liabilities 3,306 3,143 Pensions and other postretirement benefits 265 271 Power contracts and energy derivatives 741 799 Unamortized investments, net of accumulated amortization 117 123 San Onofre 1 72 72 Unamortized loss on reacquired debt 160 168 Regulatory balancing accounts 175 143 Environmental Remediation 137 144 Other 49 51 Total long-term 5,022 4,914 Total regulatory assets $ 5,882 $ 5,617 1 In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset. SCE has requested to apply $72 million of the U.S. Department of Energy ("DOE") proceeds, currently reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset. See Note 12 for further information. |
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 $ 1,004 $ 1,009 Energy derivatives 50 74 San Onofre 1 96 5 Other 2 191 33 Total current 1,341 1,121 Long-term: Costs of removal 2,804 2,741 Re-measurement of deferred taxes 2,815 2,892 Recoveries in excess of ARO liabilities 3 1,438 1,575 Regulatory balancing accounts 1,539 1,316 Other postretirement benefits 26 26 Other 37 64 Total long-term 8,659 8,614 Total regulatory liabilities $ 10,000 $ 9,735 1 During the six months ended June 30, 2018, SCE recorded San Onofre revenue based on the Prior San Onofre Settlement Agreement. As a result of the Revised San Onofre Settlement Agreement, SCE recorded a regulatory liability pending the CPUC approval of the agreement. See Note 12 for additional information. 2 During the six months ended June 30, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded a regulatory liability primarily associated with these adjustments. 3 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 10 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 $ 452 $ 464 New system generation balancing account (190 ) (197 ) Public purpose programs and energy efficiency programs (1,270 ) (1,145 ) Tax accounting memorandum account and pole loading balancing account 4 (259 ) Base revenue requirement balancing account (500 ) (200 ) DOE litigation memorandum account (191 ) (156 ) Greenhouse gas auction revenue 140 (22 ) FERC balancing accounts (220 ) (205 ) Catastrophic event memorandum account 109 102 Other (60 ) (80 ) Liability $ (1,726 ) $ (1,698 ) |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Beginning balance $ (46 ) $ (49 ) $ (43 ) $ (53 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 2 1 4 3 Other 2 — — (5 ) 2 Change 2 1 (1 ) 5 Ending Balance $ (44 ) $ (48 ) $ (44 ) $ (48 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information. SCE's accumulated other comprehensive loss, net of tax consist of: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 2018 2017 Beginning balance $ (22 ) $ (18 ) $ (19 ) $ (20 ) Pension and PBOP – net loss: Reclassified from accumulated other comprehensive loss 1 1 1 3 2 Other 2 — (1 ) (5 ) — Change 1 — (2 ) 2 Ending Balance $ (21 ) $ (18 ) $ (21 ) $ (18 ) 1 These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information. 2 SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information. |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other income and expenses are as follows: Three months ended June 30, Six months ended June 30, (in millions) 2018 2017 2018 2017 SCE other income and expenses: Equity allowance for funds used during construction $ 22 $ 23 $ 44 $ 41 Increase in cash surrender value of life insurance policies and life insurance benefits 6 10 14 22 Interest income 5 1 9 3 Net periodic benefit income – non-service components 27 9 53 18 Civic, political and related activities and donations (12 ) (7 ) (16 ) (10 ) Other 2 (3 ) (3 ) (6 ) Total SCE other income and expenses 50 33 101 68 Other income and expenses of Edison International Parent and Other: Net periodic benefit costs – non-service components (1 ) (10 ) (1 ) (11 ) Other — 1 — — Total Edison International other income and expenses $ 49 $ 24 $ 100 $ 57 |
Supplemental Cash Flows Infor36
Supplemental Cash Flows Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Cash payments for interest and taxes: Interest, net of amounts capitalized $ 254 $ 240 $ 233 $ 223 Tax (refunds) payments, net (93 ) 14 (18 ) 20 Non-cash financing and investing activities: Dividends declared but not paid: Common stock $ 197 $ 177 $ 100 $ — Preferred and preference stock 12 12 12 12 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Organization and Basis of Presentation) (Details) mi² in Thousands | 6 Months Ended |
Jun. 30, 2018mi² | |
Southern California Edison | Electric Utility | |
Segment Reporting Information [Line Items] | |
Supply of electricity, area covered (square mile) | 50 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Sale of SoCore Energy) (Details) - SoCore Energy $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Pre-tax loss | $ 63 |
After-tax loss | $ 46 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Cash Equivalents) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | $ 57 | $ 1,024 |
Book balances reclassified to accounts payable | 16 | 64 |
Southern California Edison | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Money market funds | 0 | 483 |
Book balances reclassified to accounts payable | $ 16 | $ 63 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Restricted cash | $ 8 | $ 41 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 99 | 1,091 | ||
Short-term restricted cash | 1 | 40 | ||
Long-term restricted cash | 7 | 1 | ||
Total cash, cash equivalents, and restricted cash | 107 | 1,132 | $ 113 | $ 114 |
Southern California Edison | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 25 | 515 | ||
Short-term restricted cash | 1 | 0 | ||
Total cash, cash equivalents, and restricted cash | $ 26 | $ 515 | $ 40 | $ 40 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share – continuing operations: | ||||
Income from continuing operations attributable to common shareholders | $ 276 | $ 278 | $ 494 | $ 640 |
Participating securities dividends | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders | $ 276 | $ 278 | $ 494 | $ 640 |
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 | $ 0.85 | $ 1.52 | $ 1.96 |
Diluted earnings per share – continuing operations: | ||||
Income from continuing operations attributable to common shareholders | $ 276 | $ 278 | $ 494 | $ 640 |
Participating securities dividends | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders | 276 | 278 | 494 | 640 |
Income impact of assumed conversions | 0 | 0 | 0 | 0 |
Income from continuing operations available to common shareholders and assumed conversions | $ 276 | $ 278 | $ 494 | $ 640 |
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) | 1,000,000 | 3,000,000 | 1,000,000 | 3,000,000 |
Adjusted weighted average shares - diluted (in shares) | 327,000,000 | 329,000,000 | 327,000,000 | 329,000,000 |
Diluted earnings per share - continuing operations (in dollars per share) | $ 0.84 | $ 0.85 | $ 1.51 | $ 1.95 |
Stock option awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock-based compensation awards excluded from the computation of diluted earnings per share (in shares) | 6,223,964 | 1,327,310 | 6,223,964 | 1,370,200 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (New Accounting Guidance) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 9,286 | $ 9,286 | $ 9,188 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit income - non-service cost components | $ (1) | $ 7 | ||||
Southern California Edison | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | 9,878 | 9,878 | $ 9,607 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit income - non-service cost components | $ 27 | $ 9 | $ 53 | $ 18 | ||
ASU 2014-09 | Difference between revenue guidance in effect before and after topic 606 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 5 | |||||
Retained earnings, before tax | 7 | |||||
ASU 2016-07 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | 5 | |||||
Retained earnings, before tax | $ 8 |
Consolidated Statements of Ch43
Consolidated Statements of Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 13,866 | $ 14,187 | ||
Net income | 543 | 702 | ||
Net income | $ 298 | $ 309 | 540 | 701 |
Other comprehensive income | 4 | |||
Other comprehensive income | 2 | 1 | (1) | 5 |
Cumulative effect of accounting changes | 5 | |||
Contributions from tax equity investor | 24 | |||
Dividends declared on common stock | (394) | (354) | ||
Dividends to noncontrolling interests | (60) | (62) | ||
Stock-based compensation | (12) | (151) | ||
Noncash stock-based compensation | 11 | 10 | ||
Deconsolidation of SoCore Energy | (15) | |||
Issuance of preference stock | 463 | |||
Balance, at the end of the period | $ 13,972 | $ 14,800 | $ 13,972 | $ 14,800 |
Dividends declared per common share (in dollars per share) | $ 0.6050 | $ 0.5425 | $ 1.2100 | $ 1.0850 |
Common Stock Including Additional Paid in Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | $ 2,526 | $ 2,505 | ||
Net income | 0 | 0 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends to noncontrolling interests | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 11 | 10 | ||
Deconsolidation of SoCore Energy | 0 | |||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | $ 2,537 | $ 2,515 | 2,537 | 2,515 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (43) | (53) | ||
Net income | 0 | 0 | ||
Other comprehensive income | 4 | |||
Other comprehensive income | 5 | |||
Cumulative effect of accounting changes | (5) | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends to noncontrolling interests | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 0 | 0 | ||
Deconsolidation of SoCore Energy | 0 | |||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | (44) | (48) | (44) | (48) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 9,188 | 9,544 | ||
Net income | 494 | 640 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 10 | |||
Dividends declared on common stock | (394) | (354) | ||
Dividends to noncontrolling interests | 0 | 0 | ||
Stock-based compensation | (12) | (151) | ||
Noncash stock-based compensation | 0 | 0 | ||
Deconsolidation of SoCore Energy | 0 | |||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | 9,286 | 9,679 | 9,286 | 9,679 |
Subtotal | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 11,671 | 11,996 | ||
Net income | 494 | 640 | ||
Other comprehensive income | 4 | |||
Other comprehensive income | 5 | |||
Cumulative effect of accounting changes | 5 | |||
Dividends declared on common stock | (394) | (354) | ||
Dividends to noncontrolling interests | 0 | 0 | ||
Stock-based compensation | (12) | (151) | ||
Noncash stock-based compensation | 11 | 10 | ||
Deconsolidation of SoCore Energy | 0 | |||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | 11,779 | 12,146 | 11,779 | 12,146 |
Noncontrolling Interests, Other | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2 | |||
Net income | (11) | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Contributions from tax equity investor | 24 | |||
Dividends declared on common stock | 0 | |||
Dividends to noncontrolling interests | 0 | |||
Stock-based compensation | 0 | |||
Noncash stock-based compensation | 0 | |||
Deconsolidation of SoCore Energy | (15) | |||
Balance, at the end of the period | 0 | 0 | ||
Noncontrolling Interests, Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,193 | 2,191 | ||
Net income | 60 | 62 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends to noncontrolling interests | (60) | (62) | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 0 | 0 | ||
Deconsolidation of SoCore Energy | 0 | |||
Issuance of preference stock | 463 | |||
Balance, at the end of the period | 2,193 | 2,654 | 2,193 | 2,654 |
Southern California Edison | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 14,672 | 14,483 | ||
Net income | 327 | 338 | 643 | 718 |
Other comprehensive income | 3 | |||
Other comprehensive income | 1 | 0 | (2) | 2 |
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | (312) | (382) | ||
Dividends declared on preferred and preference stock | (60) | (62) | ||
Stock-based compensation | (5) | (33) | ||
Noncash stock-based compensation | 5 | 6 | ||
Issuance of preference stock | 463 | |||
Balance, at the end of the period | 14,946 | 15,195 | 14,946 | 15,195 |
Southern California Edison | Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,168 | 2,168 | ||
Net income | 0 | 0 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends declared on preferred and preference stock | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 0 | 0 | ||
Issuance of preference stock | 0 | |||
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 | 671 | 657 | ||
Net income | 0 | 0 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends declared on preferred and preference stock | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 5 | 6 | ||
Issuance of preference stock | (12) | |||
Balance, at the end of the period | 676 | 651 | 676 | 651 |
Southern California Edison | Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | (19) | (20) | ||
Net income | 0 | 0 | ||
Other comprehensive income | 3 | |||
Other comprehensive income | 2 | |||
Cumulative effect of accounting changes | (5) | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends declared on preferred and preference stock | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 0 | 0 | ||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | (21) | (18) | (21) | (18) |
Southern California Edison | Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 9,607 | 9,433 | ||
Net income | 643 | 718 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 5 | |||
Dividends declared on common stock | (312) | (382) | ||
Dividends declared on preferred and preference stock | (60) | (62) | ||
Stock-based compensation | (5) | (33) | ||
Noncash stock-based compensation | 0 | 0 | ||
Issuance of preference stock | 0 | |||
Balance, at the end of the period | 9,878 | 9,674 | 9,878 | 9,674 |
Southern California Edison | Preferred and Preference Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, at the beginning of the period | 2,245 | 2,245 | ||
Net income | 0 | 0 | ||
Other comprehensive income | 0 | |||
Other comprehensive income | 0 | |||
Cumulative effect of accounting changes | 0 | |||
Dividends declared on common stock | 0 | 0 | ||
Dividends declared on preferred and preference stock | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Noncash stock-based compensation | 0 | 0 | ||
Issuance of preference stock | 475 | |||
Balance, at the end of the period | $ 2,245 | $ 2,720 | $ 2,245 | $ 2,720 |
Variable Interest Entities (Tex
Variable Interest Entities (Textual) (Details) - Southern California Edison - Variable Interest Entity, Not Primary Beneficiary | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2017USD ($) | Jun. 30, 2018USD ($)$ / sharesMW | Jun. 30, 2017USD ($)MW | Jun. 30, 2018USD ($)$ / sharesMW | Jun. 30, 2017USD ($)MW | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2012USD ($) | |
SCE Power Purchase Contracts | |||||||
Variable Interest Entity | |||||||
Power generating capacity (in megawatts) | MW | 3,575 | 4,900 | 3,575 | 4,900 | |||
Payments to unconsolidated VIEs for power purchase contracts | $ 99,000,000 | $ 106,000,000 | $ 239,000,000 | $ 246,000,000 | |||
Trust II | |||||||
Variable Interest Entity | |||||||
Common stock | 10,000 | 10,000 | $ 10,000 | ||||
Trust II | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.10% | ||||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | ||||
Common stock | $ 10,000 | ||||||
Trust II | Series F Preferred Stock | |||||||
Variable Interest Entity | |||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | ||||||
Trust II | Series G Preferred Stock | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.10% | ||||||
Liquidation preference | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||||
Trust III | |||||||
Variable Interest Entity | |||||||
Common stock | $ 10,000 | $ 10,000 | $ 10,000 | ||||
Trust III | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.75% | ||||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||
Trust III | Series H Preferred Stock | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.75% | ||||||
Liquidation preference | $ 275,000,000 | $ 275,000,000 | 275,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||||
Trust IV | |||||||
Variable Interest Entity | |||||||
Common stock | $ 10,000 | $ 10,000 | $ 10,000 | ||||
Trust IV | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.375% | ||||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | $ 325,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||
Trust IV | Series J Preferred Stock | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.375% | ||||||
Liquidation preference | $ 325,000,000 | $ 325,000,000 | 325,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||||
Trust V | |||||||
Variable Interest Entity | |||||||
Common stock | $ 10,000 | $ 10,000 | $ 10,000 | ||||
Trust V | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.45% | ||||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||
Trust V | Series K Preferred Stock | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.45% | ||||||
Liquidation preference | $ 300,000,000 | $ 300,000,000 | 300,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||||
Trust VI | |||||||
Variable Interest Entity | |||||||
Common stock | $ 10,000 | $ 10,000 | $ 10,000 | ||||
Trust VI | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.00% | ||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||
Trust VI | Series L Preferred Stock | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.00% | ||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 | ||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | $ 2,500 | |||||
Trust I | Trust Securities | |||||||
Variable Interest Entity | |||||||
Security dividend rate | 5.625% | ||||||
Liquidation preference | $ 475,000,000 | ||||||
Redemption of trust securities | $ 10,000 | $ 10,000 | |||||
Trust I | Series F Preferred Stock | |||||||
Variable Interest Entity | |||||||
Liquidation preference | $ 475,000,000 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Trust I | ||||
Variable Interest Entity | ||||
Dividend income | $ 6 | $ 13 | ||
Dividend distributions | 6 | 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 | 8 |
Dividend distributions | 4 | 4 | 8 | 8 |
Trust VI | ||||
Variable Interest Entity | ||||
Dividend income | 6 | 0 | 12 | 0 |
Dividend distributions | $ 6 | $ 0 | $ 12 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value by Level) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,294 | $ 4,440 |
Southern California Edison | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,294 | $ 4,440 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States | 71.00% | 69.00% |
Collateralized mortgage obligations and other asset backed securities | $ 112 | $ 102 |
Payables, net, related to investments | 123 | 59 |
Southern California Edison | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | (4) | (1) |
Derivative contracts | 88 | 110 |
Other | 33 | 495 |
Nuclear decommissioning trusts | 4,417 | 4,499 |
Total assets | 4,538 | 5,104 |
Liabilities at fair value | ||
Netting and Collateral | (6) | (2) |
Derivative contracts | 4 | 1 |
Total liabilities | 4 | 1 |
Total assets, netting and collateral | 2 | 1 |
Net assets | 4,534 | 5,103 |
Southern California Edison | Fair Value, Measurements, Recurring | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,527 | 1,596 |
Southern California Edison | Fair Value, Measurements, Recurring | Fixed income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 2,700 | 2,730 |
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 190 | 173 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | 0 |
Other | 12 | 495 |
Nuclear decommissioning trusts | 2,678 | 2,762 |
Total assets | 2,690 | 3,257 |
Liabilities at fair value | ||
Derivative contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Net assets | 2,690 | 3,257 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,527 | 1,596 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Fixed income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,021 | 1,065 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 1 | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 130 | 101 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 40 | 9 |
Other | 21 | 0 |
Nuclear decommissioning trusts | 1,739 | 1,737 |
Total assets | 1,800 | 1,746 |
Liabilities at fair value | ||
Derivative contracts | 10 | 2 |
Total liabilities | 10 | 2 |
Net assets | 1,790 | 1,744 |
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 | 1,679 | 1,665 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 2 | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 60 | 72 |
Southern California Edison | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 52 | 102 |
Other | 0 | 0 |
Nuclear decommissioning trusts | 0 | 0 |
Total assets | 52 | 102 |
Liabilities at fair value | ||
Derivative contracts | 0 | 1 |
Total liabilities | 0 | 1 |
Net assets | 52 | 101 |
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 57 | $ 1,024 |
Edison International Parent and Other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 57 | $ 541 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Rollforward) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total realized/unrealized gains (losses): | |||||
Derivative liabilities reclassified to other liabilities | $ 914 | ||||
Level 3 | |||||
Fair Value Disclosures Level 3 [Roll Forward] | |||||
Fair value of net assets (liabilities) at beginning of period | $ 81 | $ (1,012) | $ (1,166) | $ 101 | $ (1,089) |
Total realized/unrealized gains (losses): | |||||
Included in regulatory assets and liabilities | (29) | 11 | (49) | (66) | |
Contract amendment | 0 | 143 | 0 | 143 | |
Fair value of net assets (liabilities) at end of period | 52 | (1,012) | 52 | (1,012) | |
Change during the period in unrealized losses related to assets and liabilities held at the end of the period | $ 7 | $ (12) | $ 7 | $ (97) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Southern California Edison - Level 3 - Congestion revenue rights - Auction prices $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)$ / MWh | Dec. 31, 2017USD ($)$ / MWh | |
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 52 | $ 102 |
Fair Value, Liabilities | $ | $ 0 | $ 0 |
CAISO CRR auction prices | Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | $ / MWh | (5.49) | (9.41) |
CAISO CRR auction prices | Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair value inputs, price level ($ per MWh) | $ / MWh | 8.79 | 8.66 |
Fair Value Measurements (Fair50
Fair Value Measurements (Fair Value of Long-Term Debt Recorded at Carrying Value) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | $ 14,324 | $ 12,123 |
Fair Value | 14,821 | 13,760 |
Southern California Edison | ||
Fair Value of Long-Term Debt Recorded at Carrying Value [Line Items] | ||
Carrying Value | 12,586 | 10,907 |
Fair Value | $ 13,124 | $ 12,547 |
Debt and Credit Agreements (Det
Debt and Credit Agreements (Details) | 1 Months Ended | 6 Months Ended | ||||
May 31, 2018USD ($)extension | Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Short-term debt | $ 2,393,000,000 | $ 300,000,000 | ||||
Term Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 500,000,000 | |||||
London Interbank Offered Rate | 0.60% | |||||
4.125% Senior notes due 2028 | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 550,000,000 | |||||
Stated interest rate | 4.125% | |||||
Multi-year revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | $ 1,500,000,000 | $ 1,250,000,000 | ||||
Short-term debt | $ 639,000,000 | 0 | ||||
Weighted average interest rate | 1.70% | |||||
Credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 2.56% | |||||
Proceeds from credit facility | $ 500,000,000 | |||||
Repayments of credit facility | $ 500,000,000 | |||||
Southern California Edison | ||||||
Debt Instrument [Line Items] | ||||||
Short-term debt | $ 1,238,000,000 | 300,000,000 | ||||
Southern California Edison | 2.90% First and refunding mortgage bonds due 2021 | First and refunding mortgage bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 450,000,000 | |||||
Stated interest rate | 2.90% | |||||
Southern California Edison | 3.65% First and refunding mortgage bonds due 2028 | First and refunding mortgage bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 400,000,000 | |||||
Stated interest rate | 3.65% | |||||
Southern California Edison | 4.125% First and refunding mortgage bonds due 2048 | First and refunding mortgage bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 400,000,000 | |||||
Stated interest rate | 4.125% | |||||
Southern California Edison | 3.40% First and refunding mortgage bonds due 2023 | First and refunding mortgage bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 300,000,000 | |||||
Stated interest rate | 3.40% | |||||
Southern California Edison | 4.125% First and refunding mortgage bonds due 2048 | First and refunding mortgage bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 350,000,000 | |||||
Stated interest rate | 4.125% | |||||
Southern California Edison | Multi-year revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Commitment | $ 3,000,000,000 | $ 2,750,000,000 | ||||
Number of extension options | extension | 2 | |||||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 1.75% | |||||
Outstanding commercial paper | $ 738,000,000 | |||||
Southern California Edison | Multi-year revolving credit facility | Letters of credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letters of credit | $ 104,000,000 | |||||
Letters of credit expiration period | 12 months | |||||
Southern California Edison | Multi-year revolving credit facility | Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Short-term debt | $ 300,000,000 | |||||
Weighted average interest rate | 2.32% | |||||
Southern California Edison | Credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 2.46% | |||||
Proceeds from credit facility | $ 500,000,000 | |||||
Repayments of credit facility | $ 500,000,000 |
Derivative Instruments (Textual
Derivative Instruments (Textual) (Details) - Southern California Edison - Electric Utility - Economic Hedges - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Net fair value of all derivative liabilities with credit-risk-related contingent features | $ 3,000,000 | $ 1,000,000 |
Posted collateral | 0 | $ 1,000,000 |
Potential amount of collateral to be posted if contingencies triggered | 5,000,000 | |
Payables | ||
Derivative [Line Items] | ||
Potential amount of collateral to be posted if contingencies triggered | $ 1,000,000 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet Disclosures) (Details) - Southern California Edison Company - Commodity derivative contracts - Electric Utility - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Assets | ||
Gross amounts recognized | $ 92 | $ 111 |
Gross amounts offset in the consolidated balance sheets | (4) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 88 | 110 |
Derivative Liabilities | ||
Gross amounts recognized | 10 | 3 |
Gross amounts offset in the consolidated balance sheets | (4) | (1) |
Cash collateral posted | (2) | (1) |
Net amounts presented in the consolidated balance sheets | 4 | 1 |
Net Assets | ||
Gross amounts recognized | 82 | 108 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 2 | 1 |
Net amounts presented in the consolidated balance sheets | 84 | 109 |
Derivative Assets, Short-Term | ||
Derivative Assets | ||
Gross amounts recognized | 89 | 106 |
Gross amounts offset in the consolidated balance sheets | (4) | (1) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 85 | 105 |
Derivative Assets, Long-Term | ||
Derivative Assets | ||
Gross amounts recognized | 3 | 5 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 3 | 5 |
Derivative Liability, Short-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 10 | 3 |
Gross amounts offset in the consolidated balance sheets | (4) | (1) |
Cash collateral posted | (2) | (1) |
Net amounts presented in the consolidated balance sheets | 4 | 1 |
Derivative Liability, Long-Term | ||
Derivative Liabilities | ||
Gross amounts recognized | 0 | 0 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | $ 0 | $ 0 |
Derivative Instruments (Summari
Derivative Instruments (Summarization of Economic Hedging Activities) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Realized losses | $ (8) | $ (3) | $ (20) | $ (5) |
Unrealized (losses) gains | $ (12) | $ 6 | $ (26) | $ (80) |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - Southern California Edison - Electric Utility - Economic Hedges MWh in Thousands, GWh in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018BcfeMWhGWh | Dec. 31, 2017BcfeMWhGWh | |
Electricity options, swaps and forwards (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | MWh | 2,015 | 475 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | Bcfe | 141 | 143 |
Congestion revenue rights (GWh) | ||
Derivative [Line Items] | ||
Notional volumes of derivative instruments | GWh | 48,673 | 78,765 |
Revenue (Summary of Revenue) (D
Revenue (Summary of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 2,815 | $ 2,965 | $ 5,379 | $ 5,428 |
Southern California Edison | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,680 | 5,408 | ||
Alternative revenue programs and other operating revenue | 123 | (51) | ||
Total operating revenue | 2,803 | 2,953 | 5,357 | 5,409 |
Southern California Edison | Earning Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,534 | 3,070 | ||
Alternative revenue programs and other operating revenue | 1 | (22) | ||
Total operating revenue | 1,535 | 1,584 | 3,048 | 3,136 |
Southern California Edison | Cost- Recovery Activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,146 | 2,338 | ||
Alternative revenue programs and other operating revenue | 122 | (29) | ||
Total operating revenue | $ 1,268 | $ 1,369 | $ 2,309 | $ 2,273 |
Revenue (Textual) (Details)
Revenue (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | ||||
Commercial and other non-residential customers implied term | 20 years | |||
Southern California Edison | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Franchise fees billed to customers | $ 29 | $ 28 | $ 57 | $ 57 |
Rate recovery period | 24 months |
Revenue (Receivables, Accrued U
Revenue (Receivables, Accrued Unbilled Revenue and Contract Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables: | ||
Billed revenue | $ 693 | $ 613 |
Accrued unbilled revenues | 598 | 212 |
Total receivables | 1,291 | 825 |
Southern California Edison | ||
Receivables: | ||
Contract liabilities | $ 20 | $ 20 |
Revenue (Activities in the Allo
Revenue (Activities in the Allowance for Doubtful Accounts) (Details) - Southern California Edison $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |
Balance at January 1, | $ 36 |
Charged to costs and expenses | 12 |
Write-offs | (12) |
Balance at June 30, | $ 36 |
Revenue (Summary of Significant
Revenue (Summary of Significant Changes Contract Liabilities) (Details) - Southern California Edison $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Contract with Customer, Asset and Liability [Roll Forward] | |
Balance at January 1, | $ 20 |
Additions | 25 |
Revenue recognized during the period | (25) |
Balance at June 30, | $ 20 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosures [Line Items] | ||||
Income from continuing operations before income taxes | $ 289 | $ 335 | $ 500 | $ 687 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 | 61 | 117 | 105 | 241 |
Increase in income tax from: | ||||
State tax, net of federal benefit | 0 | 6 | (5) | 16 |
Property-related | (69) | (83) | (138) | (196) |
Change related to uncertain tax positions | 0 | (6) | 0 | (18) |
Shared-based compensation | 0 | (3) | 0 | (46) |
Other | (1) | (5) | (2) | (11) |
Total income tax (benefit) expense from continuing operations | $ (9) | $ 26 | $ (40) | $ (14) |
Effective tax rate | (3.10%) | 7.80% | (8.00%) | (2.00%) |
State | ||||
Increase in income tax from: | ||||
Shared-based compensation | $ 4 | $ 10 | ||
Southern California Edison | ||||
Income Tax Disclosures [Line Items] | ||||
Income from continuing operations before income taxes | $ 325 | 395 | $ 635 | 787 |
Provision for income tax at federal statutory rate of 21% and 35%, respectively 1 | 68 | 138 | 133 | 275 |
Increase in income tax from: | ||||
State tax, net of federal benefit | 3 | 9 | 4 | 22 |
Property-related | (69) | (83) | (138) | (196) |
Change related to uncertain tax positions | 0 | 0 | (1) | (11) |
Shared-based compensation | 0 | (1) | 0 | (9) |
Other | (4) | (6) | (6) | (12) |
Tax abandonment loss | 39 | |||
Total income tax (benefit) expense from continuing operations | $ (2) | $ 57 | $ (8) | $ 69 |
Effective tax rate | (0.60%) | 14.40% | (1.30%) | 8.80% |
Southern California Edison | Federal | ||||
Increase in income tax from: | ||||
Tax abandonment loss | $ 691 | |||
Southern California Edison | State | ||||
Increase in income tax from: | ||||
Shared-based compensation | $ 1 | 2 | ||
Tax abandonment loss | $ 1,130 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | $ 432 | $ 471 |
Tax positions taken during the current year, Increases | 21 | 20 |
Tax positions taken during a prior year, Increases | 0 | 3 |
Tax positions taken during a prior year, Decreases | (7) | 0 |
Tax positions taken during a prior year, Decreases for settlements during the period | 0 | (83) |
Balance at June 30, | 446 | 411 |
Southern California Edison | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, | 331 | 371 |
Tax positions taken during the current year, Increases | 21 | 20 |
Tax positions taken during a prior year, Increases | 0 | 3 |
Tax positions taken during a prior year, Decreases | (7) | 0 |
Tax positions taken during a prior year, Decreases for settlements during the period | 0 | (78) |
Balance at June 30, | $ 345 | $ 316 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) $ in Millions | Mar. 31, 2017USD ($) |
Tax Years 2007 - 2012 | |
Income Tax Examination [Line Items] | |
IRS refund expected | $ 7 |
Compensation and Benefit Plan64
Compensation and Benefit Plans (Textual) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 23 |
Estimated future contributions in remainder of year | 43 |
PBOP Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 6 |
Estimated future contributions in remainder of year | 6 |
Southern California Edison | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | 14 |
Estimated future contributions in remainder of year | $ 36 |
Compensation and Benefit Plan65
Compensation and Benefit Plans (Expense Components) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-service cost | ||||
Total non-service cost | $ 1 | $ (7) | ||
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 32 | 36 | $ 64 | 72 |
Non-service cost | ||||
Interest cost | 35 | 41 | 70 | 82 |
Expected return on plan assets | (56) | (53) | (113) | (106) |
Settlement costs | 0 | 8 | 0 | 8 |
Amortization of prior service cost | 0 | 1 | 1 | 2 |
Amortization of net loss | 2 | 5 | 4 | 10 |
Regulatory adjustment (deferred) | 3 | (3) | 5 | (6) |
Total non-service cost | (16) | (1) | (33) | (10) |
Total expense recognized | 16 | 35 | 31 | 62 |
Settlement costs after tax | 5 | |||
Net loss reclassified | 2 | 2 | 4 | 5 |
PBOP Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 10 | 9 | 19 | 18 |
Non-service cost | ||||
Interest cost | 21 | 24 | 42 | 48 |
Expected return on plan assets | (30) | (27) | (60) | (54) |
Amortization of prior service cost | (1) | (1) | (1) | (2) |
Total non-service cost | (10) | (4) | (19) | (8) |
Total expense | 0 | 5 | 0 | 10 |
Southern California Edison | ||||
Non-service cost | ||||
Total non-service cost | (27) | (9) | (53) | (18) |
Southern California Edison | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 31 | 35 | 62 | 70 |
Non-service cost | ||||
Interest cost | 32 | 37 | 64 | 74 |
Expected return on plan assets | (54) | (50) | (107) | (100) |
Amortization of prior service cost | 0 | 1 | 1 | 2 |
Amortization of net loss | 2 | 4 | 3 | 8 |
Regulatory adjustment (deferred) | 3 | (3) | 5 | (6) |
Total non-service cost | (17) | (11) | (34) | (22) |
Total expense recognized | 14 | 24 | 28 | 48 |
Net loss reclassified | 2 | 1 | 3 | 3 |
Southern California Edison | PBOP Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 10 | 9 | 19 | 18 |
Non-service cost | ||||
Interest cost | 21 | 24 | 42 | 48 |
Expected return on plan assets | (30) | (27) | (60) | (54) |
Amortization of prior service cost | (1) | (1) | (1) | (2) |
Total non-service cost | (10) | (4) | (19) | (8) |
Total expense | $ 0 | $ 5 | $ 0 | $ 10 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Nuclear Decommissioning Trusts) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | $ 4,294 | $ 4,440 |
Southern California Edison | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 2,552 | 2,803 |
Fair Value | 4,294 | 4,440 |
Southern California Edison | Fair Value, Measurements, Recurring | ||
Nuclear Decommissioning Trusts Disclosures | ||
Fair Value | 4,417 | 4,499 |
Southern California Edison | Fair Value, Measurements, Recurring | Stocks | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 236 | |
Fair Value | 1,527 | 1,596 |
Southern California Edison | Fair Value, Measurements, Recurring | Municipal bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 650 | 643 |
Fair Value | 753 | 768 |
Southern California Edison | Fair Value, Measurements, Recurring | U.S. government and agency securities | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 1,214 | 1,235 |
Fair Value | 1,281 | 1,319 |
Southern California Edison | Fair Value, Measurements, Recurring | Corporate bonds | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 623 | 579 |
Fair Value | 666 | 643 |
Southern California Edison | Fair Value, Measurements, Recurring | Short-term investments and receivables/payables | ||
Nuclear Decommissioning Trusts Disclosures | ||
Amortized Cost | 65 | 110 |
Fair Value | 67 | 114 |
Repurchase agreements payable | $ 47 | $ 29 |
Investments (Nuclear Decommissi
Investments (Nuclear Decommissioning Trusts) (Details) - Southern California Edison - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Other Investments [Line Items] | |||||
Unrealized holding gains, net of losses | $ 1,500 | $ 1,500 | $ 1,600 | ||
Other-than-temporary impairments | 159 | $ 143 | |||
Deferred income taxes related to unrealized gains | 370 | 370 | |||
Nuclear decommissioning trusts | 3,900 | 3,900 | |||
Gross realized gains | 26 | $ 13 | 87 | $ 112 | |
Gross realized losses | (2) | 0 | (10) | (16) | |
Unrealized gains (losses), net of losses | $ (5) | $ 59 | $ (68) | $ 79 |
Regulatory Assets and Liabili68
Regulatory Assets and Liabilities (Schedule of Regulatory Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 860 | $ 703 |
Long-term regulatory assets | 5,022 | 4,914 |
Southern California Edison | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 860 | 703 |
Long-term regulatory assets | 5,022 | 4,914 |
Total regulatory assets | 5,882 | 5,617 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 642 | 484 |
Long-term regulatory assets | 175 | 143 |
Southern California Edison | Power contracts and energy derivatives | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 203 | 203 |
Long-term regulatory assets | 741 | 799 |
Southern California Edison | Other | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 15 | 16 |
Long-term regulatory assets | 49 | 51 |
Southern California Edison | Deferred income taxes, net of liabilities | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 3,306 | 3,143 |
Southern California Edison | Pensions and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 265 | 271 |
Southern California Edison | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 117 | 123 |
Southern California Edison | San Onofre | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 72 | 72 |
Southern California Edison | Unamortized loss on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | 160 | 168 |
Southern California Edison | Environmental Remediation | ||
Regulatory Assets [Line Items] | ||
Long-term regulatory assets | $ 137 | $ 144 |
Regulatory Assets and Liabili69
Regulatory Assets and Liabilities (Schedule of Regulatory Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 1,341 | $ 1,121 |
Long-term regulatory liabilities | 8,659 | 8,614 |
Southern California Edison | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 1,341 | 1,121 |
Long-term regulatory liabilities | 8,659 | 8,614 |
Total regulatory liabilities | 10,000 | 9,735 |
Southern California Edison | Regulatory balancing accounts | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 1,004 | 1,009 |
Long-term regulatory liabilities | 1,539 | 1,316 |
Southern California Edison | Energy derivatives | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 50 | 74 |
Southern California Edison | San Onofre | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 96 | 5 |
Long-term regulatory liabilities | 26 | 26 |
Southern California Edison | Other | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 191 | 33 |
Long-term regulatory liabilities | 37 | 64 |
Southern California Edison | Costs of removal | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,804 | 2,741 |
Southern California Edison | Re-measurement of deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,815 | 2,892 |
Southern California Edison | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | $ 1,438 | $ 1,575 |
Regulatory Assets and Liabili70
Regulatory Assets and Liabilities (Schedule of Net Regulatory Balancing Accounts) (Details) - Southern California Edison - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Regulatory balancing accounts | Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | $ 452 | $ 464 |
Regulatory balancing accounts | New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (190) | (197) |
Refunds of excess revenue | Net regulatory balancing accounts | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (1,726) | (1,698) |
Refunds of excess revenue | Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (1,270) | (1,145) |
Refunds of excess revenue | Tax accounting memorandum account and pole loading balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | 4 | (259) |
Refunds of excess revenue | Base revenue requirement balancing account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (500) | (200) |
Refunds of excess revenue | DOE litigation memorandum account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (191) | (156) |
Refunds of excess revenue | Greenhouse gas auction revenue | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | 140 | (22) |
Refunds of excess revenue | FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | (220) | (205) |
Refunds of excess revenue | Catastrophic event memorandum account | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | 109 | 102 |
Refunds of excess revenue | Other | ||
Regulatory Assets and Liabilities | ||
Asset (liability) | $ (60) | $ (80) |
Commitments and Contingencies (
Commitments and Contingencies (Southern California Wildfires) (Details) - Southern California Edison a in Thousands, $ in Millions | 5 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | |
May 31, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($)afatalitystructure | May 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||||
Wildfire-specific insurance coverage | $ 1,000 | ||||
Self-insured retention per wildfire occurrence | $ 10 | $ 10 | |||
Coverage for future periods | |||||
Loss Contingencies [Line Items] | |||||
Wildfire-specific insurance coverage | $ 940 | $ 1,000 | |||
December 2017 Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Acres burned | a | 280 | ||||
Structures destroyed | structure | 1,063 | ||||
Structures damaged | structure | 280 | ||||
Fatalities | fatality | 1 | ||||
Capital expenditures | $ 77 |
Commitments and Contingencies72
Commitments and Contingencies (Montecito Mudslides) (Details) $ in Millions | Jun. 30, 2018USD ($) | Jan. 31, 2018fatalitystructure |
Montecito mudslides | ||
Loss Contingencies [Line Items] | ||
Structures destroyed | structure | 135 | |
Structures damaged | structure | 324 | |
Fatalities | fatality | 21 | |
Additional fatalities | fatality | 2 | |
Southern California Edison | ||
Loss Contingencies [Line Items] | ||
Other general liability insurance coverage | $ | $ 450 |
Commitments and Contingencies73
Commitments and Contingencies (Permanent Retirement of San Onofre) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 19, 2017 | |
Loss Contingencies [Line Items] | |||
Regulatory assets | $ 5,022 | $ 4,914 | |
The Utilities | Settled | Revised San Onofre Settlement Agreement | |||
Loss Contingencies [Line Items] | |||
Settlement agreement funding | $ 12.5 | ||
The Utilities | San Onofre | |||
Loss Contingencies [Line Items] | |||
Proceeds received | 72 | ||
The Utilities | San Onofre | MHI Arbitration regulatory liability | |||
Loss Contingencies [Line Items] | |||
Proceeds received | $ 47 | ||
The Utilities | San Onofre | |||
Loss Contingencies [Line Items] | |||
Regulatory assets | $ 775 |
Commitments and Contingencies74
Commitments and Contingencies (Environmental Remediation) (Details) - Southern California Edison $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)site | Jun. 30, 2017USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum costs to be identified site | $ 1 | |
Minimum liability for environmental remediation | 142 | |
Regulatory assets related to environmental remediation | 137 | |
Portion of recorded liability recoverable from incentive mechanism | $ 44 | |
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 | $ 93 | |
Environmental remediation costs to be recovered (as a percent) | 100.00% | |
Amount that cleanup costs could exceed recorded liability for identified material sites | $ 135 | |
Amount that cleanup costs could exceed recorded liability for immaterial sites | $ 8 | |
Clean up (period) | 30 years | |
Remediation cost estimates (period) | 5 years | |
Expected remediation costs for each of the next four years, low end of range | $ 7 | |
Expected remediation costs for each of the next four years, high end of range | 13 | |
Environmental remediation costs | 6 | $ 4 |
San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation | $ 91 | |
Material sites | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Identified material sites for environmental remediation (in number of sites) | site | 20 | |
Minimum liability for environmental remediation | $ 138 | |
Immaterial sites | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Immaterial sites for environmental remediation (in number of sites) | site | 16 | |
Immaterial sites | Minimum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Minimum liability for environmental remediation | $ 4 |
Commitments and Contingencies75
Commitments and Contingencies (Nuclear Insurance) (Details) - USD ($) | Jan. 05, 2018 | Jun. 30, 2018 |
Southern California Edison | Palo Verde | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Maximum per incident | $ 60,000,000 | |
Maximum per incident, annually | 9,000,000 | |
Maximum per incident, prior events | 255,000,000 | |
Maximum per incident, prior events, annually | $ 38,000,000 | |
Nuclear Insurance | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss Limit, Public Offsite, Bodily Injury and Property Damage from Nuclear Incident, Federal Claim Limit | $ 13,100,000,000 | |
Nuclear Insurance | San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Federal limit on public liability claims from nuclear incident, approximate | 560,000,000 | |
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | San Onofre | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss limit, property damage insurance, federal minimum requirement | 50,000,000 | |
Nuclear Insurance | SCE and other owners of San Onofre and Palo Verde | Palo Verde | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Loss limit, property damage insurance, federal minimum requirement | 1,060,000,000 | |
Nuclear Insurance | Southern California Edison | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Limit on assessment of retrospective premium adjustments, per year, approximate | $ 52,000,000 |
Commitments and Contingencies76
Commitments and Contingencies (Spent Nuclear Fuel) (Details) - USD ($) $ in Millions | 1 Months Ended | |||||
Apr. 30, 2016 | Jun. 30, 2010 | May 31, 2018 | Oct. 31, 2017 | Feb. 28, 2017 | Sep. 30, 2016 | |
Schedule Of Commitments And Contingencies [Line Items] | ||||||
DOE determination of claim reimbursement | $ 56 | |||||
SCE and other owners of San Onofre and Palo Verde | ||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||
Damages sought | $ 142 | |||||
Damage award | $ 162 | |||||
DOE determination of claim reimbursement | $ 45 | $ 43 | ||||
Southern California Edison | ||||||
Schedule Of Commitments And Contingencies [Line Items] | ||||||
Damages sought | $ 112 | |||||
Damage award | $ 124 | |||||
DOE determination of claim reimbursement | 35 | $ 58 | $ 34 | |||
Disallowed claim amount | $ 13 |
Accumulated Other Comprehensi77
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension and PBOP – net loss: | ||||
Other | $ 0 | $ 0 | $ (5) | $ 2 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (46) | (49) | (43) | (53) |
Pension and PBOP – net loss: | ||||
Ending Balance | (44) | (48) | (44) | (48) |
Accumulated Defined Benefit Plans Adjustment | ||||
Pension and PBOP – net loss: | ||||
Reclassified from accumulated other comprehensive loss | 2 | 1 | 4 | 3 |
Other | 0 | 0 | (5) | 2 |
Change | 2 | 1 | (1) | 5 |
Southern California Edison | ||||
Pension and PBOP – net loss: | ||||
Other | 0 | (1) | (5) | 0 |
Southern California Edison | Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (22) | (18) | (19) | (20) |
Pension and PBOP – net loss: | ||||
Ending Balance | (21) | (18) | (21) | (18) |
Southern California Edison | Accumulated Defined Benefit Plans Adjustment | ||||
Pension and PBOP – net loss: | ||||
Reclassified from accumulated other comprehensive loss | 1 | 1 | 3 | 2 |
Other | 0 | (1) | (5) | 0 |
Change | $ 1 | $ 0 | $ (2) | $ 2 |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
SCE other income and expenses: | ||||
Net periodic benefit income – non-service components | $ (1) | $ 7 | ||
Total other income and expense | $ 49 | 24 | $ 100 | 57 |
Other income and expenses of Edison International Parent and Other: | ||||
Net periodic benefit income – non-service components | (1) | 7 | ||
Total other income and expense | 49 | 24 | 100 | 57 |
Edison International Parent and Other | ||||
SCE other income and expenses: | ||||
Net periodic benefit income – non-service components | (1) | (10) | (1) | (11) |
Other | 0 | 1 | 0 | 0 |
Other income and expenses of Edison International Parent and Other: | ||||
Net periodic benefit income – non-service components | (1) | (10) | (1) | (11) |
Other | 0 | 1 | 0 | 0 |
Southern California Edison | ||||
SCE other income and expenses: | ||||
Equity allowance for funds used during construction | 22 | 23 | 44 | 41 |
Increase in cash surrender value of life insurance policies | 6 | 10 | 14 | 22 |
Interest income | 5 | 1 | 9 | 3 |
Net periodic benefit income – non-service components | 27 | 9 | 53 | 18 |
Civic, political and related activities and donations | (12) | (7) | (16) | (10) |
Other | (3) | (3) | (6) | |
Other | 2 | |||
Total other income and expense | 50 | 33 | 101 | 68 |
Other income and expenses of Edison International Parent and Other: | ||||
Net periodic benefit income – non-service components | 27 | 9 | 53 | 18 |
Other | 2 | |||
Total other income and expense | $ 50 | $ 33 | $ 101 | $ 68 |
Supplemental Cash Flows Infor79
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash payments for interest and taxes: | ||
Interest, net of amounts capitalized | $ 254 | $ 240 |
Tax refunds, net | (93) | |
Tax payments, net | 14 | |
Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | 197 | 177 |
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 | 233 | 223 |
Tax refunds, net | (18) | |
Tax payments, net | 20 | |
Dividends declared but not paid: | ||
Accrued capital expenditures | 412 | 283 |
Southern California Edison | Common stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | 100 | 0 |
Southern California Edison | Preferred and preference stock | ||
Dividends declared but not paid: | ||
Dividends declared but not paid | $ 12 | $ 12 |