Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 1-9936 | ||
Entity Registrant Name | EDISON INTERNATIONAL | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 95-4137452 | ||
Entity Address, Address Line One | 2244 Walnut Grove Avenue | ||
Entity Address, Address Line Two | (P.O. Box 976) | ||
Entity Address, City or Town | Rosemead, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91770 | ||
City Area Code | (626) | ||
Local Phone Number | 302-2222 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | EIX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22 | ||
Entity Common Stock, Shares Outstanding | 380,696,945 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Los Angeles, California | ||
Entity Central Index Key | 0000827052 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
SCE | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | false | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 1-2313 | ||
Entity Registrant Name | SOUTHERN CALIFORNIA EDISON COMPANY | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 95-1240335 | ||
Entity Address, Address Line One | 2244 Walnut Grove Avenue | ||
Entity Address, Address Line Two | (P.O. Box 800) | ||
Entity Address, City or Town | Rosemead, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91770 | ||
City Area Code | (626) | ||
Local Phone Number | 302-1212 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 434,888,104 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Los Angeles, California | ||
Entity Central Index Key | 0000092103 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total operating revenue | $ 14,905 | $ 13,578 | $ 12,347 |
Purchased power and fuel | 5,540 | 4,932 | 4,839 |
Operation and maintenance | 3,645 | 3,609 | 3,018 |
Wildfire-related claims, net of insurance recoveries | 1,276 | 1,328 | 255 |
Wildfire Insurance Fund expense | 215 | 336 | 152 |
Depreciation and amortization | 2,218 | 1,967 | 1,730 |
Property and other taxes | 465 | 438 | 399 |
Impairment and other expense (income) | 71 | (116) | 184 |
Gain on sale of lease interest and other operating income | (2) | (133) | (5) |
Total operating expenses | 13,428 | 12,361 | 10,572 |
Operating income | 1,477 | 1,217 | 1,775 |
Interest expense | (925) | (902) | (841) |
Other income | 237 | 251 | 193 |
Income before income taxes | 789 | 566 | 1,127 |
Income tax expense (benefit) | (136) | (305) | (278) |
Net income | 925 | 871 | 1,405 |
Preferred stock dividend requirement of Edison International | 60 | ||
Net income available to common shareholders | $ 759 | $ 739 | $ 1,284 |
Basic earnings per share: | |||
Weighted average shares of common stock outstanding | 380 | 373 | 340 |
Basic earnings per common share attributable to Edison International common shareholders | $ 2 | $ 1.98 | $ 3.78 |
Diluted earnings per share: | |||
Weighted average shares of common stock outstanding, including effect of dilutive securities | 380 | 374 | 341 |
Diluted earnings per common share attributable to Edison International common shareholders | $ 2 | $ 1.98 | $ 3.77 |
SCE | |||
Total operating revenue | $ 14,874 | $ 13,546 | $ 12,306 |
Purchased power and fuel | 5,540 | 4,932 | 4,839 |
Operation and maintenance | 3,588 | 3,523 | 2,936 |
Wildfire-related claims, net of insurance recoveries | 1,276 | 1,328 | 255 |
Wildfire Insurance Fund expense | 215 | 336 | 152 |
Depreciation and amortization | 2,216 | 1,965 | 1,728 |
Property and other taxes | 462 | 435 | 396 |
Impairment and other expense (income) | 69 | (150) | 159 |
Other operating income | (2) | (1) | (4) |
Total operating expenses | 13,364 | 12,368 | 10,461 |
Operating income | 1,510 | 1,178 | 1,845 |
Interest expense | (791) | (768) | (739) |
Other income | 233 | 255 | 195 |
Income before income taxes | 952 | 665 | 1,301 |
Income tax expense (benefit) | 17 | (277) | (229) |
Net income | 935 | 942 | 1,530 |
Preferred stock dividend requirement of Edison International | 106 | 132 | 121 |
Net income available to common shareholders | $ 829 | $ 810 | $ 1,409 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 925 | $ 871 | $ 1,405 |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement benefits other than pensions | 15 | (9) | |
Other comprehensive income (loss), net of tax | 15 | (9) | |
Comprehensive income | 940 | 871 | 1,396 |
Less: Comprehensive income attributable to noncontrolling interests | 106 | 132 | 121 |
Comprehensive income attributable to Edison International | 834 | 739 | 1,275 |
SCE | |||
Net income | 935 | 942 | 1,530 |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement benefits other than pensions | 9 | (2) | (11) |
Other comprehensive income (loss), net of tax | 9 | (2) | (11) |
Comprehensive income | $ 944 | $ 940 | $ 1,519 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 390 | $ 87 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,398 | 1,130 |
Accrued unbilled revenue | 794 | 521 |
Insurance receivable | 708 | |
Inventory | 420 | 405 |
Prepaid expenses | 258 | 281 |
Regulatory assets | 1,778 | 1,314 |
Wildfire Insurance Fund contributions | 204 | 323 |
Other current assets | 249 | 292 |
Total current assets | 5,491 | 5,061 |
Nuclear decommissioning trusts | 4,870 | 4,833 |
Marketable securities | 12 | |
Other investments | 39 | 53 |
Total investments | 4,921 | 4,886 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 50,497 | 47,653 |
Nonutility property, plant and equipment, less accumulated depreciation | 203 | 186 |
Total property, plant and equipment | 50,700 | 47,839 |
Receivables, less allowances for uncollectible accounts | 122 | |
Regulatory assets | 7,660 | 7,120 |
Wildfire Insurance Fund contributions | 2,359 | 2,443 |
Operating lease right-of-use assets | 1,932 | 1,088 |
Long-term insurance receivables | 75 | 75 |
Other long-term assets | 1,485 | 860 |
Total long-term assets | 13,633 | 11,586 |
Total assets | 74,745 | 69,372 |
LIABILITIES AND EQUITY | ||
Short-term debt | 2,354 | 2,398 |
Current portion of long-term debt | 1,077 | 1,029 |
Accounts payable | 2,002 | 1,980 |
Wildfire-related claims | 131 | 2,231 |
Customer deposits | 193 | 243 |
Regulatory liabilities | 603 | 569 |
Current portion of operating lease liabilities | 582 | 215 |
Other current liabilities | 1,667 | 1,612 |
Total current liabilities | 8,609 | 10,277 |
Long-term debt | 24,170 | 19,632 |
Deferred income taxes and credits | 5,740 | 5,368 |
Pensions and benefits | 496 | 563 |
Asset retirement obligations | 2,772 | 2,930 |
Regulatory liabilities | 8,981 | 8,589 |
Operating lease liabilities | 1,350 | 873 |
Wildfire-related claims | 1,733 | 2,281 |
Other deferred credits and other long-term liabilities | 3,105 | 2,910 |
Total deferred credits and other liabilities | 24,177 | 23,514 |
Total liabilities | 56,956 | 53,423 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock | 1,977 | |
Common stock, no par value, including additional paid-in capital | 6,071 | 5,962 |
Accumulated other comprehensive loss | (54) | (69) |
Retained earnings | 7,894 | 8,155 |
Total Edison International's shareholders' equity | 15,888 | 14,048 |
Noncontrolling interests - preference stock of SCE | 1,901 | 1,901 |
Total equity | 17,789 | 15,949 |
Total liabilities and equity | 74,745 | 69,372 |
SCE Recovery Funding LLC | ||
ASSETS | ||
Regulatory assets | 325 | |
Other current assets | 19 | |
Regulatory assets | 325 | |
LIABILITIES AND EQUITY | ||
Current portion of long-term debt | 14 | |
Regulatory liabilities | 14 | |
Other current liabilities | 1 | |
Long-term debt | 314 | |
SCE | ||
ASSETS | ||
Cash and cash equivalents | 279 | 55 |
Receivables, less allowances for uncollectible accounts at respective dates | 1,393 | 1,126 |
Accrued unbilled revenue | 794 | 521 |
Insurance receivable | 440 | |
Insurance receivable from affiliate | 268 | |
Inventory | 420 | 405 |
Prepaid expenses | 257 | 280 |
Regulatory assets | 1,778 | 1,314 |
Wildfire Insurance Fund contributions | 204 | 323 |
Other current assets | 222 | 285 |
Total current assets | 5,347 | 5,017 |
Nuclear decommissioning trusts | 4,870 | 4,833 |
Other investments | 34 | 37 |
Total investments | 4,904 | 4,870 |
Utility property, plant and equipment, less accumulated depreciation and amortization | 50,497 | 47,653 |
Nonutility property, plant and equipment, less accumulated depreciation | 196 | 180 |
Total property, plant and equipment | 50,693 | 47,833 |
Receivables, less allowances for uncollectible accounts | 122 | |
Regulatory assets | 7,660 | 7,120 |
Wildfire Insurance Fund contributions | 2,359 | 2,443 |
Operating lease right-of-use assets | 1,925 | 1,085 |
Long-term insurance receivables | 75 | 75 |
Other long-term assets | 1,453 | 843 |
Total long-term assets | 13,594 | 11,566 |
Total assets | 74,538 | 69,286 |
LIABILITIES AND EQUITY | ||
Short-term debt | 2,354 | 2,268 |
Current portion of long-term debt | 377 | 1,029 |
Accounts payable | 1,999 | 1,983 |
Wildfire-related claims | 131 | 2,231 |
Customer deposits | 193 | 243 |
Regulatory liabilities | 603 | 569 |
Current portion of operating lease liabilities | 582 | 214 |
Other current liabilities | 1,631 | 1,294 |
Total current liabilities | 7,870 | 9,831 |
Long-term debt | 21,733 | 16,499 |
Deferred income taxes and credits | 7,181 | 6,783 |
Pensions and benefits | 111 | 144 |
Asset retirement obligations | 2,772 | 2,930 |
Regulatory liabilities | 8,981 | 8,589 |
Operating lease liabilities | 1,343 | 871 |
Wildfire-related claims | 1,733 | 2,281 |
Other deferred credits and other long-term liabilities | 2,979 | 2,708 |
Total deferred credits and other liabilities | 25,100 | 24,306 |
Total liabilities | 54,703 | 50,636 |
Commitments and contingencies (Note 12) | ||
Preferred / preference stock | 1,945 | 1,945 |
Common stock, no par value, including additional paid-in capital | 2,168 | 2,168 |
Additional paid-in capital | 7,033 | 5,387 |
Accumulated other comprehensive loss | (32) | (41) |
Retained earnings | 8,721 | 9,191 |
Total equity | 19,835 | 18,650 |
Total liabilities and equity | 74,538 | $ 69,286 |
SCE | SCE Recovery Funding LLC | ||
ASSETS | ||
Regulatory assets | 325 | |
LIABILITIES AND EQUITY | ||
Long-term debt | $ 314 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables, allowances for uncollectible accounts | $ 193 | $ 188 |
Utility property, plant and equipment, accumulated depreciation | 11,407 | 10,681 |
Nonutility property, plant and equipment, accumulated depreciation | 98 | $ 94 |
Receivables, allowances for uncollectible accounts, Long term | $ 116 | |
Preferred stock, shares authorized | 50,000,000 | |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 380,378,145 | 378,907,147 |
Common stock, shares outstanding | 380,378,145 | 378,907,147 |
Series A | ||
Preferred stock, shares issued | 1,250,000 | |
Preferred stock, shares outstanding | 1,250,000 | |
Series B | ||
Preferred stock, shares issued | 750,000 | |
Preferred stock, shares outstanding | 750,000 | |
SCE | ||
Receivables, allowances for uncollectible accounts | $ 193 | $ 188 |
Utility property, plant and equipment, accumulated depreciation | 11,407 | 10,681 |
Nonutility property, plant and equipment, accumulated depreciation | 88 | $ 86 |
Receivables, allowances for uncollectible accounts, Long term | $ 116 | |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 925 | $ 871 | $ 1,405 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 2,288 | 2,029 | 1,803 |
Allowance for equity during construction | (118) | (121) | (101) |
Impairment and other expense (income) | 71 | (116) | 184 |
Gain on sale of lease interest and other operating income | (2) | (133) | (5) |
Deferred income taxes | 43 | (296) | (284) |
Wildfire Insurance Fund amortization expense | 215 | 336 | 152 |
Other | 40 | 36 | 34 |
Nuclear decommissioning trusts | (256) | (197) | (106) |
Proceeds from Morongo Transmission LLC | 400 | ||
Contributions to Wildfire Insurance Fund | (95) | (95) | (2,457) |
Changes in operating assets and liabilities: | |||
Receivables | (514) | (283) | (76) |
Inventory | (21) | (43) | (83) |
Accounts payable | 138 | 87 | 288 |
Tax receivables and payables | 13 | 113 | 88 |
Other current assets and liabilities | (333) | 4 | (13) |
Regulatory assets and liabilities, net | (720) | (1,799) | (1,278) |
Wildfire-related insurance receivable | 708 | 932 | 285 |
Wildfire-related claims | (2,648) | (56) | (101) |
Other noncurrent assets and liabilities | (123) | (6) | (42) |
Net cash provided by (used in) operating activities | 11 | 1,263 | (307) |
Cash flows from financing activities: | |||
Long-term debt issued or remarketed, plus premium and net of discount and issuance costs | 5,412 | 3,073 | 3,696 |
Long-term debt repaid or repurchased | (1,037) | (1,099) | (82) |
Short-term debt issued | 2,654 | 2,994 | 1,750 |
Short-term debt repaid | (2,255) | (1,126) | (1,750) |
Common stock issued | 32 | 912 | 2,391 |
Preferred stock issued, net | 1,977 | ||
Preferred and preference stock redeemed | (308) | ||
Commercial paper (repayments) borrowing, net | (254) | 304 | (172) |
Dividends and distribution to noncontrolling interests | (106) | (118) | (121) |
Common stock dividends paid | (988) | (928) | (810) |
Preferred stock dividends paid | (35) | ||
Other | 45 | 23 | 1 |
Net cash provided by financing activities | 5,445 | 3,727 | 4,903 |
Cash flows from investing activities: | |||
Capital expenditures | (5,505) | (5,484) | (4,877) |
Proceeds from sale of nuclear decommissioning trust investments | 3,961 | 5,927 | 4,389 |
Purchases of nuclear decommissioning trust investments | (3,705) | (5,730) | (4,283) |
Other | 98 | 316 | 93 |
Net cash used in investing activities | (5,151) | (4,971) | (4,678) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 305 | 19 | (82) |
Cash, cash equivalents and restricted cash at beginning of year | 89 | 70 | 152 |
Cash, cash equivalents and restricted cash at end of year | 394 | 89 | 70 |
SCE | |||
Cash flows from operating activities: | |||
Net income | 935 | 942 | 1,530 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 2,280 | 2,021 | 1,798 |
Allowance for equity during construction | (118) | (121) | (101) |
Impairment and other expense (income) | 69 | (150) | 159 |
Deferred income taxes | 62 | (263) | (243) |
Wildfire Insurance Fund amortization expense | 215 | 336 | 152 |
Other | 26 | 17 | 17 |
Nuclear decommissioning trusts | (256) | (197) | (106) |
Proceeds from Morongo Transmission LLC | 400 | ||
Contributions to Wildfire Insurance Fund | (95) | (95) | (2,457) |
Changes in operating assets and liabilities: | |||
Receivables | (513) | (290) | (89) |
Inventory | (21) | (43) | (83) |
Accounts payable | 131 | 63 | 307 |
Tax receivables and payables | 31 | 141 | 178 |
Other current assets and liabilities | (333) | (7) | (15) |
Regulatory assets and liabilities, net | (720) | (1,799) | (1,278) |
Wildfire-related insurance receivable | 708 | 932 | 285 |
Wildfire-related claims | (2,648) | (56) | (101) |
Other noncurrent assets and liabilities | 5 | (4) | (44) |
Net cash provided by (used in) operating activities | 158 | 1,427 | (91) |
Cash flows from financing activities: | |||
Long-term debt issued or remarketed, plus premium and net of discount and issuance costs | 5,411 | 2,676 | 2,306 |
Long-term debt repaid or repurchased | (1,037) | (699) | (82) |
Short-term debt issued | 2,654 | 2,194 | 750 |
Short-term debt repaid | (2,255) | (326) | (750) |
Capital contributions from Edison International Parent | 1,633 | 1,432 | 3,250 |
Preferred and preference stock redeemed | (308) | ||
Commercial paper (repayments) borrowing, net | (124) | 175 | (171) |
Common stock dividends paid | (1,081) | (1,450) | (521) |
Other | 17 | 5 | (11) |
Net cash provided by financing activities | 5,218 | 3,699 | 4,771 |
Cash flows from investing activities: | |||
Capital expenditures | (5,503) | (5,480) | (4,876) |
Proceeds from sale of nuclear decommissioning trust investments | 3,961 | 5,927 | 4,389 |
Purchases of nuclear decommissioning trust investments | (3,705) | (5,730) | (4,283) |
Other | 95 | 189 | 92 |
Net cash used in investing activities | (5,152) | (5,094) | (4,678) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 224 | 32 | 2 |
Cash, cash equivalents and restricted cash at beginning of year | 56 | 24 | 22 |
Cash, cash equivalents and restricted cash at end of year | $ 280 | $ 56 | $ 24 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premium and net of discount and issuance costs | $ (43) | $ 23 | $ (4) |
SCE | |||
Premium and net of discount and issuance costs | $ (43) | $ 26 | $ 6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Common Stock, Including APIC | Preferred stockSCE | Preferred stock | Common StockSCE | Additional Paid-in CapitalSCE | Accumulated Other Comprehensive LossCumulative effect adjustmentSCE | Accumulated Other Comprehensive LossCumulative effect adjustment | Accumulated Other Comprehensive LossSCE | Accumulated Other Comprehensive Loss | Retained EarningsCumulative effect adjustmentSCE | Retained EarningsCumulative effect adjustment | Retained EarningsSCE | Retained Earnings | Equity Attributable to Common Shareholders | Noncontrolling Interest | SCE | Total |
Beginning balance at Dec. 31, 2018 | $ 2,545 | $ 2,245 | $ 2,168 | $ 680 | $ 5 | $ (10) | $ (23) | $ (50) | $ (5) | $ 10 | $ 8,715 | $ 7,964 | $ 10,459 | $ 2,193 | $ 13,785 | $ 12,652 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 1,530 | 1,284 | 1,284 | 121 | 1,530 | 1,405 | |||||||||||
Other comprehensive income (loss) | (11) | (9) | (9) | (11) | (9) | ||||||||||||
Capital contribution from Edison International Parent | 3,250 | 3,250 | |||||||||||||||
Common stock issued, net of issuance cost | 2,421 | 2,421 | 2,421 | ||||||||||||||
Common stock dividends declared | (600) | (849) | (849) | (600) | (849) | ||||||||||||
Preferred stock dividend accrued | (121) | (121) | |||||||||||||||
Dividends to noncontrolling interests | (121) | (121) | |||||||||||||||
Stock-based compensation | (3) | (15) | (27) | (27) | (18) | (27) | |||||||||||
Noncash stock-based compensation | 24 | 12 | 24 | 12 | 24 | ||||||||||||
Ending balance at Dec. 31, 2019 | 4,990 | 2,245 | 2,168 | 3,939 | (39) | (69) | 9,514 | 8,382 | 13,303 | 2,193 | 17,827 | 15,496 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 942 | 739 | 739 | 132 | 942 | 871 | |||||||||||
Other comprehensive income (loss) | (2) | (2) | |||||||||||||||
Capital contribution from Edison International Parent | 1,432 | 1,432 | |||||||||||||||
Common stock issued, net of issuance cost | 942 | 942 | 942 | ||||||||||||||
Common stock dividends declared | (1,132) | (965) | (965) | (1,132) | (965) | ||||||||||||
Preferred stock dividend accrued | (132) | ||||||||||||||||
Dividends declared on preferred and preference stock | (117) | (117) | |||||||||||||||
Dividends to noncontrolling interests | (117) | (117) | |||||||||||||||
Stock-based compensation | (5) | (5) | |||||||||||||||
Noncash stock-based compensation | 30 | 14 | (1) | (1) | 29 | 1 | 13 | 30 | |||||||||
Redemption of preferred and preference stock | (300) | 7 | (15) | (308) | (308) | (308) | |||||||||||
Ending balance at Dec. 31, 2020 | 5,962 | 1,945 | 2,168 | 5,387 | (41) | (69) | 9,191 | 8,155 | 14,048 | 1,901 | 18,650 | 15,949 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 935 | 819 | 819 | 106 | 935 | 925 | |||||||||||
Other comprehensive income (loss) | 9 | 15 | 15 | 9 | 15 | ||||||||||||
Capital contribution from Edison International Parent | 1,633 | 1,633 | |||||||||||||||
Common stock issued, net of issuance cost | 71 | 71 | 71 | ||||||||||||||
Preferred stock issued, net of issuance cost | $ 1,977 | 1,977 | 1,977 | ||||||||||||||
Common stock dividends declared | (1,300) | (1,021) | (1,021) | (1,300) | (1,021) | ||||||||||||
Preferred stock dividend accrued | (106) | (60) | (60) | (106) | (60) | ||||||||||||
Dividends to noncontrolling interests | (106) | (106) | |||||||||||||||
Stock-based compensation | (7) | (7) | |||||||||||||||
Noncash stock-based compensation | 38 | 20 | 1 | 1 | 39 | 21 | 39 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 6,071 | $ 1,945 | $ 1,977 | $ 2,168 | $ 7,033 | $ (32) | $ (54) | $ 8,721 | $ 7,894 | $ 15,888 | $ 1,901 | $ 19,835 | $ 17,789 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Dividends declared per common share (in dollars per share) | $ 2.6875 | $ 2.5750 | $ 2.4750 |
Series A | |||
Preferred stock dividends (in dollars per share) | 43.5972 | ||
Series B | |||
Preferred stock dividends (in dollars per share) | 6.8056 | ||
Minimum | Noncontrolling Interest | |||
Preferred stock dividends (in dollars per share) | 0.757 | 1.02 | |
Preference stock dividends (in dollars per share) | 62.50 | 62.50 | 62.50 |
Maximum | Noncontrolling Interest | |||
Preferred stock dividends (in dollars per share) | 0.886 | 1.195 | |
Preference stock dividends (in dollars per share) | 143.75 | 143.75 | 143.75 |
SCE | |||
Dividends declared per common share (in dollars per share) | 2.9893 | 2.6030 | 1.3797 |
SCE | Minimum | Noncontrolling Interest | |||
Preferred stock dividends (in dollars per share) | 0.757 | 1.02 | |
Preference stock dividends (in dollars per share) | 62.50 | 62.50 | 62.50 |
SCE | Maximum | Noncontrolling Interest | |||
Preferred stock dividends (in dollars per share) | 0.886 | 1.195 | |
Preference stock dividends (in dollars per share) | $ 143.75 | $ 143.75 | $ 143.75 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1. Organization and Basis of Presentation Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC ("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 an indirect wholly-owned subsidiary of Edison International and a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing integrated decarbonization and energy solutions to commercial, institutional and industrial customers. Edison Energy'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, its wholly owned and controlled subsidiaries and a variable interest entity of which SCE is the primary beneficiary, SCE Recovery Funding LLC. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 11 for composition of regulatory assets and liabilities. The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Certain prior year amounts have been conformed to the current year's presentation. 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 December 31, (in millions) 2021 2020 2021 2020 Money market funds $ 329 $ 62 $ 230 $ 38 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: December 31, December 31, (in millions) 2021 2020 Edison International: Cash and cash equivalents $ 390 $ 87 Short-term restricted cash 1 4 2 Total cash, cash equivalents and restricted cash $ 394 $ 89 SCE: Cash and cash equivalents $ 279 $ 55 Short-term restricted cash 1 1 1 Total cash, cash equivalents and restricted cash $ 280 $ 56 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. At December 31, 2021, this included the estimated impacts of the COVID-19 pandemic. The following table sets forth the changes in allowance for uncollectible accounts for SCE: Year ended December 31, 2021 Year ended December 31, 2020 (in millions) Customers All others Total Customers All others Total Beginning balance $ 175 $ 13 $ 188 $ 35 $ 14 $ 49 Plus: current period provision for uncollectible accounts Included in operation and maintenance expenses in earning activities 1 33 11 44 36 9 45 Included in operation and maintenance expenses in cost-recovery activities 2 74 — 74 15 — 15 Deferred to regulatory memorandum accounts 17 — 17 105 — 105 Less: write-offs, net of recoveries 6 8 14 16 10 26 Ending balance $ 293 $ 16 $ 309 ³ $ 175 $ 13 $ 188 1 Earning activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. 2 Cost-recovery activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. This portion of costs from the allowance for uncollectible expenses is recovered through the residential uncollectibles balancing account. 3 In June 2021, CPUC issued a decision to allow residential and small business customers of the large investor-owned utilities with arrearages over 60 days old to be enrolled in 24-month payment plans. Accordingly, approximately $238 million of gross account receivables and $116 million of allowance for uncollectible accounts have been reclassified to "Long-term account receivables" on Edison International's and SCE's consolidated balance sheets as of December 31, 2021. Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost. Emission Allowances and Energy Credits SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $47 million and $78 million at December 31, 2021 and 2020, respectively. GHG emission obligations were $34 million and $64 million at December 31, 2021 and 2020, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible customers. SCE's net proceeds from the sale of these LCFS credits were $193 million and $176 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2021 and 2020, respectively. Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows: Weighted Average Estimated Useful Lives Useful Lives Generation plant 10 years to 55 years 36 years Distribution plant 20 years to 67 years 50 years Transmission plant 45 years to 65 years 54 years General plant and other 5 years to 60 years 26 years Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.0 billion, $1.8 billion and $1.7 billion for 2021, 2020 and 2019, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.7%, 3.6% and 3.6% for 2021, 2020 and 2019, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $118 million, $121 million and $101 million in 2021, 2020 and 2019, respectively, and is reflected in "Other income." AFUDC debt was $50 million, $53 million and $63 million in 2021, 2020 and 2019, respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's facilities and equipment are expensed as incurred. Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate. Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. As a result of adoption of 2021 GRC, SCE recorded $79 million ($47 million after-tax) related to disallowed historical capital expenditures of pole replacements the CPUC determined were performed prematurely in the third quarter of 2021. As of December 31, 2021, SCE has $186 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events which may not be recoverable. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in future cost recovery proceedings. For further details, see Note 12. Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054") Edison International and SCE accounted for the contributions to the Wildfire Insurance Fund similarly to prepaid insurance. No period of coverage was provided in AB 1054, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2021, Edison International and SCE have a $2.4 billion long-term asset and a $204 million current asset reflected as "Wildfire Insurance Fund contributions" in the consolidated balance sheets for the initial $2.4 billion contribution made during 2019 and the present value of annual contributions SCE committed to make to the Wildfire Insurance Fund, reduced by amortization. At December 31, 2021, a long-term liability of $620 million has been reflected in "Other deferred credits and other long-term liabilities" for the present value of unpaid contribution amounts. Contributions were discounted to the present value at the date SCE committed to participate in the Wildfire Insurance Fund using US treasury interest rates. The asset was amortized over a period of 15 years during 2021 and 10 years during 2020. All expenses related to the contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using seven years (2014 – 2020) of available historical data in 2021 and five years (2014 – 2018) of available historical data in 2020. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, Pacific Gas & Electric Company ("PG&E") and San Diego Gas & Electric ("SDG&E") against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. Edison International and SCE evaluate all inputs annually, or upon claims being made from the fund for catastrophic wildfires, and the expected life of the insurance fund will be adjusted as required. Based on information available in the first quarter of 2022 regarding catastrophic wildfires during 2021, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. Using eight years of historical data (2014 – 2021) of wildfires caused by electrical utility equipment to create Monte Carlo simulations of expected loss, the expected life of the Wildfire Insurance Fund remained 15 years from the date SCE committed to participate in the Wildfire Insurance Fund. Edison International and SCE will assess the Wildfire Insurance Fund contribution assets for impairment in the event that a participating utility's electrical equipment is found to be the substantial cause of a catastrophic wildfire, based on the ability of SCE to benefit from the coverage provided by the Wildfire Insurance Fund in an amount equal to the recorded assets. Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2021 2020 Beginning balance $ 2,930 $ 3,029 Accretion 1 157 160 Revisions (77) (36) Liabilities settled (238) (223) Ending balance $ 2,772 $ 2,930 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.4 billion as of December 31, 2021. The liability to decommission SCE's nuclear power facilities is based on a 2020 decommissioning study to be filed as part of the 2021 NDCTP for San Onofre Unit 1, 2 and 3 and a 2019 decommissioning study for Palo Verde, with revisions to the cost estimate in 2020. As a result of the 2020 decommissioning study update to San Onofre Units 1, 2, and 3, SCE recorded a decrease of $131 million to its ARO liability in 2021, primarily due to the timing of spending compared to the 2018 decommissioning cost estimates as well as changes in escalation and discount rates. SCE records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11. Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In October 2019, the California Coastal Commission ("CCC") approved SCE's application for the Coastal Development Permit, the principal discretionary permit required to start major decommissioning activities at San Onofre Units 2 and 3. In August 2020, SCE commenced, and is currently conducting, major decommissioning activities in accordance with the terms of the permit. The CCC's issuance of the permit was challenged in December 2019 and an October 2021 Los Angeles Superior Court ruling upholding the validity of the permit has been appealed. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $6.3 billion through 2080 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 1.7% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 1.3% to 4.8% dependent on asset class. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. SCE had unamortized losses on reacquired debt of $121 million and $133 million at December 31, 2021 and 2020, respectively, reflected as long-term "Regulatory assets" in the consolidated balance sheets. In addition, Edison International and SCE had debt issuance costs related to issuances of long-term debt of $153 million and $143 million at December 31, 2021, respectively, and $131 million and $117 million at December 31, 2020, respectively, reflected as a reduction of "Long-term debt" on the consolidated balance sheets. Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Amortization of deferred financing costs charged to interest expense $ 34 $ 32 $ 30 $ 29 $ 27 $ 26 Revenue Recognition Revenue is recognized by Edison International and SCE when a performance obligation to transfer control of the promised goods is satisfied or when services are rendered to customers. This typically occurs when electricity is delivered to customers, which includes amounts for services rendered but unbilled at the end of a reporting period. SCE's Revenue from Contracts with Customers Provision of Electricity SCE principally generates revenue through supplying and delivering electricity to its customers. Rates charged to customers are based on tariff rates, approved by the CPUC and FERC. Starting with SCE's 2021 GRC, revenue will be authorized through quadrennial 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 three years are set by a methodology established in the GRC proceeding. Revenue was previously authorized by the CPUC in triennial GRC proceedings. As described above, SCE also earns revenue, with no return, to recover costs for power procurement, certain wildfire related expenses and other 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 both residential and non-residential customers, SCE satisfies the performance obligation of delivering electricity over time as the customers simultaneously receive and consume the delivered electricity. Energy sales are typically on a month-to-month implied contract for transmission, distribution and generation services. Revenue is recognized over time as the energy is supplied and delivered to customers and the respective revenue is billed and paid on a monthly basis. 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. See Note 7 for further information on SCE's revenue. 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. SCE's franchise fees billed to customers were $147 million, $131 million and $122 million for the years ended December 31, 2021, 2020 and 2019, respectively. 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. SCE's Alternative Revenue Programs The CPUC and FERC have authorized additional, alternative revenue programs which adjust billings for the effects of broad external factors. These alternative revenue programs allow SCE to recover costs that SCE has been authorized to pass on to customers, including costs of certain operations and maintenance activities, 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. 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. Regulatory Proceedings 2021 General Rate Case In August 2021, the CPUC approved a final decision in SCE's 2021 GRC, authorized a base rate revenue requirement of $6.9 billion in 2021, an increase of $1.0 billion over revenue requirements authorized for 2020 in the 2018 GRC. See Note 11 for further information. Power Purchase Agreements SCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's PPAs resulted in consolidation of a VIE at December 31, 2021 and 2020. See Note 3 for further discussion of PPAs that are considered variable interests. A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 and Note 13 for further discussion of SCE's PPAs, including agreements that are classified as operating and finance leases for accounting purposes. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These PPAs may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. PPAs that do not meet the above classifications are accounted for on an accrual basis. Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. Leases 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. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the identified asset and has the right to direct the use of the asset. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets which were first contracted in 2020 and for which each component will be separately accounted for, SCE includes both the lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized bas |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 2. SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2021 2020 Distribution $ 30,821 $ 28,663 Transmission 17,016 15,669 Generation 3,769 3,709 General plant and other 6,108 5,129 Accumulated depreciation (11,407) (10,681) 46,307 42,489 Construction work in progress 4,067 5,033 Nuclear fuel, at amortized cost 123 131 Total utility property, plant and equipment $ 50,497 $ 47,653 Capitalized Software Costs SCE capitalizes costs incurred during the application development stage of internal use software projects to property, plant and equipment. SCE amortizes capitalized software costs ratably over the expected lives of the software, primarily ranging from 5 to 7 years and commencing upon operational use. Capitalized software costs, included in general plant and other above, were $2.0 billion and $1.2 billion at December 31, 2021 and 2020, respectively, and accumulated amortization was $0.6 billion and $0.6 billion, at December 31, 2021 and 2020, respectively. Amortization expense for capitalized software was $311 million, $218 million and $190 million in 2021, 2020 and 2019, respectively. At December 31, 2021, amortization expense is estimated to be $338 million, $310 million, $272 million, $220 million and $144 million for 2022 through 2026, respectively. Jointly Owned Utility Projects SCE owns undivided interests in transmission and generating assets for which each participant provides its own financing. SCE's proportionate share of these assets is reflected in the consolidated balance sheets and included in the above table. SCE's proportionate share of expenses for each project is reflected in the consolidated statements of income. The following is SCE's investment in each asset as of December 31, 2021: Construction Plant in Work in Accumulated Nuclear Fuel Net Book Ownership (in millions) Service Progress Depreciation (at amortized cost) Value Interest Transmission systems: Eldorado $ 336 $ 94 $ 49 $ — $ 381 86 % Pacific Intertie 351 1 75 — 277 50 % Generating station: Palo Verde (nuclear) 2,146 53 1,629 123 693 16 % Total $ 2,833 $ 148 $ 1,753 $ 123 $ 1,351 In addition to the jointly owned assets in the table above, SCE has ownership interests in jointly owned power poles with other companies. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | Note 3. A VIE is defined as a legal entity that meets one of two conditions: (1) the equity owners do not have sufficient equity at risk, or (2) the holders of the equity investment at risk, as a group, lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. Commercial and operating activities are generally the factors that most significantly impact the economic performance of such VIEs. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. Variable Interest in VIEs that are Consolidated SCE Recovery Funding LLC is a bankruptcy remote, wholly owned special purpose subsidiary, consolidated by SCE. SCE Recovery Funding LLC is a VIE and SCE is the primary beneficiary. SCE Recovery Funding LLC was formed in 2021 for the purpose of issuing and servicing securitized bonds related to SCE's AB 1054 Excluded Capital Expenditures. In 2021, SCE Recovery Funding LLC issued $338 million of securitized bonds in three tranches and used the proceeds to acquire SCE's right, title and interest in and to non-bypassable rates and other charges to be collected from certain existing and future customers in SCE's service territory, associated with the AB 1054 Excluded Capital Expenditures ("Recovery Property"), until the bonds are paid in full and all financing costs have been recovered. The securitized bonds are secured by the Recovery Property and cash collections from the non-bypassable rates and other charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to SCE. For further details, see Note 5. In February 2022, SCE Recovery Funding LLC issued $533 million of securitized bonds. For further details, see Note 5. The following table summarizes the impact of SCE Recovery Funding LLC on SCE's and Edison International's consolidated balance sheets. (in millions) December 31, 2021 Other current assets $ 19 Regulatory assets: Non-current 325 Regulatory liabilities: Current (14) Current portion of long-term debt (14) Other current liabilities (1) Long-term debt 1 (314) 1 The bondholders have no recourse to SCE. Balance is net of unamortized debt issuance costs. Variable Interest in VIEs that are not Consolidated Power Purchase Agreements SCE has PPAs that are classified as variable interests in VIEs, including agreements through which SCE provides the natural gas to fuel the plants, fixed price contracts for renewable energy, and resource adequacy agreements that, upon the seller's election, include the purchase of energy at fixed prices. SCE has concluded that it is not the primary beneficiary of these VIEs since it does not control the commercial and operating activities of these entities. Since payments for capacity are the primary source of income, the most significant economic activity for these VIEs is the operation and maintenance of the power plants. As of the balance sheet date, the carrying amount of assets and liabilities in SCE's consolidated balance sheet that relate to involvement with VIEs that are not consolidated result from amounts due under the PPAs. Under these contracts, SCE recovers the costs incurred through demonstration of compliance with its CPUC-approved long-term power procurement plans. SCE has no residual interest in the entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 12. 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 3,545 megawatts ("MW") and 5,103 MW at December 31, 2021 and 2020, respectively, and the amounts that SCE paid to these projects were $673 million and $744 million for the years ended December 31, 2021 and 2020, 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 (see Note 14 for further information). The applicable trust will make distributions at the same rate and on the same dates on the applicable series of trust securities if and when the SCE board of directors declares and makes dividend payments on the related Preference Stock. The applicable trust will use any dividends it receives on the related Preference Stock to make its corresponding distributions on the applicable series of trust securities. If SCE does not make a dividend payment to any of these trusts, SCE would be prohibited from paying dividends on its common stock. SCE has fully and unconditionally guaranteed the payment of the trust securities and trust distributions, if and when SCE pays dividends on the related Preference Stock. The Trust II, Trust III, Trust IV, Trust V and Trust VI balance sheets as of December 31, 2021 and 2020, consisted of investments of $220 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, $220 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: Year ended December 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2021 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 2020 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 2019 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4. Recurring Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of December 31, 2021 and 2020, 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 an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity. Level 3 – 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: December 31, 2021 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 26 $ 49 $ (31) $ 44 Money market funds and other 230 23 — — 253 Nuclear decommissioning trusts: Stocks 2 1,972 — — — 1,972 Fixed Income 3 1,083 1,607 — — 2,690 Short-term investments, primarily cash equivalents 102 125 — — 227 Subtotal of nuclear decommissioning trusts 4 3,157 1,732 — — 4,889 Total assets 3,387 1,781 49 (31) 5,186 Liabilities at fair value Derivative contracts — 42 5 (47) — Total liabilities — 42 5 (47) — Net assets $ 3,387 $ 1,739 $ 44 $ 16 $ 5,186 December 31, 2020 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 6 $ 120 $ (18) $ 108 Money market funds and other 39 23 — — 62 Nuclear decommissioning trusts: Stocks 2 1,908 — — — 1,908 Fixed Income 3 519 2,113 — — 2,632 Short-term investments, primarily cash equivalents 447 52 — — 499 Subtotal of nuclear decommissioning trusts 4 2,874 2,165 — — 5,039 Total assets 2,913 2,194 120 (18) 5,209 Liabilities at fair value Derivative contracts — 10 12 (22) — Total liabilities — 10 12 (22) — Net assets $ 2,913 $ 2,184 $ 108 $ 4 $ 5,209 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 75% and 71% of SCE's equity investments were located in the United States at December 31, 2021 and 2020, respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $30 million and $29 million at December 31, 2021 and 2020, respectively. 4 Excludes net payables of $19 million and $206 million at December 31, 2021 and 2020, 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 and classified as Level 1 consisted of $12 million in equity investments as of December 31, 2021 and money market funds of $99 million and $24 million at December 31, 2021 and December 31, 2020, respectively. Assets measured at fair value and classified as Level 2 consisted of short-term investments of $6 million and $5 million at December 31, 2021 and December 31, 2020, respectively. 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: Year ended December 31, (in millions) 2021 2020 Fair value of net assets at beginning of period $ 108 $ 78 Purchases — 8 Sales (2) (5) Settlements (63) (117) Total realized/unrealized losses 1,2 1 144 Fair value of net assets at end of period $ 44 $ 108 1 2 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 Significant Weighted (in millions) Valuation Unobservable Range Average Assets Liabilities Technique Input (per MWh) (per MWh) Congestion revenue rights December 31, 2021 $ 49 $ 5 Auction prices CAISO CRR auction prices $(18.87) - $43.03 $ 1.46 December 31, 2020 120 12 Auction prices CAISO CRR auction prices (9.67) - 300.47 2.75 Level 3 Fair Value Uncertainty 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. SCE's investment policies and CPUC requirements place limitations on the types and investment grade ratings of the securities that may be held by the nuclear decommissioning trust funds. These policies restrict the trust funds from holding alternative investments and limit the trust funds' exposures to investments in highly illiquid markets. With respect to equity and fixed income securities, the trustee obtains prices from third-party pricing services which SCE is able to independently corroborate as described below. The trustee monitors prices supplied by pricing services, including reviewing prices against defined parameters' tolerances and performs research and resolves variances beyond the set parameters. SCE corroborates the fair values of securities by comparison to other market-based price sources obtained by SCE's investment managers. Differences outside established thresholds are followed-up with the trustee and resolved. For each reporting period, SCE reviews the trustee determined fair value hierarchy and overrides the trustee level classification when appropriate. 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: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 25,247 $ 27,718 $ 20,337 $ 23,824 SCE 22,110 24,375 17,204 20,365 1 2 . |
Debt and Credit Agreements
Debt and Credit Agreements | 12 Months Ended |
Dec. 31, 2021 | |
Debt and Credit Agreements | |
Debt and Credit Agreements | Note 5. Long-Term Debt The following table summarizes long-term debt (rates and terms are as of December 31, 2021) of Edison International and SCE: December 31, (in millions) 2021 2020 Edison International Parent and Other: Debentures and notes: 2022 – 2028 (2.40% to 5.75%) $ 3,150 $ 3,150 Current portion of long-term debt (700) — Unamortized debt discount/premium and issuance costs, net (13) (17) Total Edison International Parent and Other 2,437 3,133 SCE: First and refunding mortgage bonds: 2022 – 2051 (0.70% to 6.05%) 20,314 16,843 Pollution-control bonds: 2023 – 2035 (1.45% to 2.63%) 752 135 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 306 306 Senior secured recovery bonds 1 2033 – 2045 (0.86% to 2.51%) 333 — Other long-term debt 2 518 324 Current portion of long-term debt (377) (1,029) Unamortized debt discount/premium and issuance costs, net (113) (80) Total SCE 21,733 16,499 Total Edison International $ 24,170 $ 19,632 1 The senior secured recovery bonds are payable only from and secured by the Recovery Property at SCE Recovery Funding LLC, and do not constitute a debt or other legal obligation of, or interest in, SCE or any of its affiliates, except for SCE Recovery Funding LLC. For further details, see Note 3. 2 Amounts represent short-term obligations refinanced on a long-term basis subsequent to the balance sheet dates. For further details, see "Debt Financing Subsequent to December 31, 2021." Edison International and SCE long-term debt maturities over the next five years are as follows: Edison (in millions) International SCE 2022 $ 1,077 $ 377 2023 2,598 2,198 2024 2,063 1,563 2025 1,314 914 2026 364 364 Liens and Security Interests Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio to be less than or equal to 0.65 to 1. At December 31, 2021, SCE's debt to total capitalization ratio was 0.55 to 1 and was in compliance with all other financial covenants that affect access to capital. Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.70 to 1. At December 31, 2021, Edison International consolidated debt to total capitalization ratio was 0.61 to 1. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facilities at December 31, 2021: (in millions, except for rates) Execution Termination Secured Overnight Financing Rate ("SOFR") Outstanding Outstanding Amount date date plus (bps) Use of proceeds Commitment borrowings letters of credit available Edison International Parent June 2019 May 2025 128 Support commercial paper borrowings and general corporate purposes 1, 3 $ 1,500 $ — $ — $ 1,500 Total Edison International Parent: $ 1,500 $ — $ — $ 1,500 SCE June 2019 May 2025 108 Support commercial paper borrowings and general corporate purposes 2, 3 $ 3,350 $ 601 $ 195 $ 2,554 Total SCE: $ 3,350 $ 601 $ 195 $ 2,554 Total Edison International: $ 4,850 $ 601 $ 195 $ 4,054 1 At December 31, 2021 Edison International Parent did no t have any outstanding commercial paper. At December 31, 2020 Edison International Parent had $130 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.42% . 2 At December 31, 2021 and December 31, 2020, SCE had $601 million and $725 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.45% and 0.43% , respectively. 3 The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained. Term loan and other short-term debt In 2021, SCE borrowed $1.2 billion under a term loan agreement due in May 2022 with a variable interest rate based on SOFR plus 0.60% . SCE used the proceeds to repay outstanding indebtedness and to finance certain capital projects related to wildfire mitigation that meet the green loan principles set forth by international loan market organizations including the Loan Syndications and Trading Association. Additionally, in 2021, SCE issued $475 million of SOFR plus 0.35% first and refunding mortgage bonds, and $550 million of SOFR plus 0.47% first and refunding mortgage bonds, both due in 2022. The proceeds were used to partially repay floating rate first mortgage bonds due in 2021, commercial paper borrowings and for general corporate purposes. Debt Financing Subsequent to December 31, 2021 In January 2022, SCE issued $500 million of 2.75% first and refunding mortgage bonds due in 2032 and $700 million of 3.45% first and refunding mortgage bonds due in 2052. The proceeds of these issuances were used to finance or refinance eligible sustainable projects. In February 2022, SCE Recovery Funding LLC issued $533 million of senior secured recovery bonds, Series 2022-A, in three tranches of $100 million, 1.98% due 2030, $305 million, 2.94% due 2044, and $128 million, 3.24% due 2048 and used the proceeds to acquire SCE's right, title and interest in and to the Recovery Property. SCE used the proceeds it received from the sale of Recovery Property to reimburse itself for previously incurred AB 1054 Excluded Capital Expenditures, including partial repayment of the term loan due in May 2022 as discussed above. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments | |
Derivative Instruments | Note 6. 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 and gas contracts contain master netting agreements or similar agreements, which generally allow counterparties subject to the agreement to offset amounts when certain criteria are met, such as in the event of default. The objective of netting is to reduce credit exposure. Additionally, to reduce SCE's risk exposures counterparties may be required to pledge collateral depending on the creditworthiness of each counterparty and the risk associated with the transaction. Certain power and gas contracts contain a provision that requires SCE to maintain an investment grade rating from 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 were less than $1 million as of December 31, 2021 and 2020, for which SCE has posted no collateral to its counterparties at the respective dates for its derivative liabilities and related outstanding payable for both periods. If the credit-risk-related contingent features underlying these agreements were triggered on December 31, 2021, SCE would be required to post $18 million of additional collateral, all of which is related to outstanding payables. 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: December 31, 2021 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Long-Term 2 Subtotal Short-Term Long-Term Subtotal Net Assets Commodity derivative contracts Gross amounts recognized $ 70 $ 6 $ 76 $ 46 $ 2 $ 48 $ 28 Gross amounts offset in the consolidated balance sheets (30) (2) (32) (30) (2) (32) — Cash collateral posted 3 — — — (16) — (16) 16 Net amounts presented in the consolidated balance sheets $ 40 $ 4 $ 44 $ — $ — $ — $ 44 December 31, 2020 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Long-Term 2 Subtotal Short-Term Long-Term Subtotal Net Assets Commodity derivative contracts Gross amounts recognized $ 103 $ 23 $ 126 $ 16 $ 6 $ 22 $ 104 Gross amounts offset in the consolidated balance sheets (12) (6) (18) (12) (6) (18) — Cash collateral posted 3 — — — (4) — (4) 4 Net amounts presented in the consolidated balance sheets $ 91 $ 17 $ 108 $ — $ — $ — $ 108 1 Included in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. 3 At December 31, 2021, SCE posted $65 million of cash, of which $16 million was offset against derivative liabilities and $49 million was reflected in "Other current assets" on the consolidated balance sheets. At December 31, 2020, SCE posted $17 million of cash, of which $4 million was offset against derivative liabilities and $13 million was reflected in "Other current assets" on the consolidated balance sheets. Financial Statement Impact of Derivative Instruments SCE recognizes realized gains and losses on derivative instruments as purchased power expense and expects that such gains or losses will be part of the purchased power costs recovered from customers. As a result, realized gains and losses do not affect earnings, but may temporarily affect cash flows. Due to 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: Years ended December 31, (in millions) 2021 2020 2019 Realized gains (losses) $ 200 $ 87 $ (7) Unrealized (losses) gains (75) 17 (74) Notional Volumes of Derivative Instruments The following table summarizes the notional volumes of derivatives used for SCE economic hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2021 2020 Electricity options, swaps and forwards GWh 1,869 1,581 Natural gas options, swaps and forwards Bcf 58 34 Congestion revenue rights GWh 33,216 41,151 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue | Note 7. ● 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 as well as non-bypassable rates collected for SCE Recovery Funding LLC. 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), certain operation and maintenance expenses, and repayment of bonds and financing costs of SCE Recovery Funding LLC. SCE earns no return on these activities. The following table is a summary of SCE's revenue: 2021 2020 2019 Cost- Cost- Cost- Earning Recovery Total Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Activities Activities Consolidated Revenues from contracts with customers 1,2 $ 7,523 6,824 $ 14,347 $ 6,920 $ 5,539 12,459 $ 6,512 $ 4,655 $ 11,167 Alternative revenue programs and other operating revenue 3 349 178 527 548 539 1,087 166 973 1,139 Total operating revenue $ 7,872 $ 7,002 $ 14,874 $ 7,468 $ 6,078 $ 13,546 $ 6,678 $ 5,628 $ 12,306 1 SCE recorded CPUC revenue based on annual revenue requirement set by a methodology established in the GRC proceeding and FERC revenue authorized through a formula rate. For further information, see Note 1. 2 At December 31, 2021 and 2020, SCE's receivables related to contracts from customers were $2.3 billion and $1.5 billion, which included accrued unbilled revenue of $794 million and $521 million, respectively. 3 Includes differences between amounts billed and authorized levels for both the CPUC and FERC. Deferred Revenue In July 2021, Morongo Transmission LLC ("Morongo") paid SCE $400 million for the use of a portion of the West of Devers transmission line transfer capability. Under the terms of the agreement with Morongo, SCE will provide Morongo with the use of a portion of the West of Devers transmission line transfer capability for a period of 30 years, commencing in August 2021. After the 30-year contract term, the transfer capability will revert back to SCE. SCE recognized the entire proceeds as deferred revenue and will amortize deferred revenues from the use of the transfer capability over the 30-year term on a straight-line basis resulting in revenue of $13 million per year. The depreciation of the transmission line is also amortized over the same period on a straight-line basis. As of December 31, 2021, the deferred revenue was $394 million, of which $13 million and $381 million are included in "Other current liabilities" and "Other deferred credits and other long-term liabilities," respectively, on SCE's consolidated balance sheets. For the year ended December 31, 2021, SCE has recognized revenue of $6 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Current and Deferred Taxes The components of income tax (benefit) expense by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Current: Federal $ — $ 13 $ — $ — $ 12 $ — State (179) (22) 6 (45) (26) 14 (179) (9) 6 (45) (14) 14 Deferred: Federal 83 (230) (243) 83 (207) (206) State (40) (66) (41) (21) (56) (37) 43 (296) (284) 62 (263) (243) Total $ (136) $ (305) $ (278) $ 17 $ (277) $ (229) The components of net accumulated deferred income tax liability are: Edison International SCE December 31, (in millions) 2021 2020 2021 2020 Deferred tax assets: Property $ 856 $ 590 $ 835 $ 540 Wildfire-related 1 558 1,134 558 1,134 Nuclear decommissioning trust assets in excess of nuclear ARO liability 517 515 517 515 Loss and credit carryforwards 2 3,078 1,991 1,697 683 Regulatory balances 652 841 652 841 Pension and postretirement benefits other than pensions, net 153 163 30 35 Leases 5 543 307 543 307 Other 165 206 179 220 Sub-total 6,522 5,747 5,011 4,275 Less: valuation allowance 3 44 35 6 — Total 6,478 5,712 5,005 4,275 Deferred tax liabilities: Property 9,645 8,879 9,633 8,871 Regulatory balances 1,242 1,111 1,242 1,111 Nuclear decommissioning trust assets 517 515 517 515 Leases 5 543 307 543 307 Other 207 207 186 192 Total 12,154 11,019 12,121 10,996 Accumulated deferred income tax liability, net 4 $ 5,676 $ 5,307 $ 7,116 $ 6,721 1 Relates to accrued estimated losses for wildfire-related claims, net of expected recoveries from insurance and FERC customers, and contributions to the Wildfire Insurance Fund. For further information, see Note 12 and Note 1. 2 As of December 31, 2021, unrecognized tax benefits of $277 million and $221 million for Edison International and SCE, respectively, are presented net against the deferred tax asset for the loss and tax credit carryforwards. As of December 31, 2020, the unrecognized tax benefits netted against deferred tax assets were $270 million and $190 million for Edison International and SCE, respectively. 3 As of December 31, 2021, Edison International and SCE have recorded a valuation allowance on deferred tax assets which are estimated to expire before being utilized. The valuation allowance for Edison International includes $33 million for non-California state net operating loss carryforwards, $4 million for California capital losses generated from sale of SoCore Energy in 2018, and $7 million for federal and California charitable contribution carryover from 2017. Valuation allowance for SCE includes $6 million for federal and California charitable contribution carryover from 2017. 4 Included in "Deferred income taxes and credits" on the consolidated balance sheets. 5 Lease-related amounts were included in "Other" in the prior year. Net Operating Loss and Tax Credit Carryforwards The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2021 Loss Credit Loss Credit (in millions) Carryforwards Carryforwards Carryforwards Carryforwards Expire in 2022 $ 7 $ — $ 7 $ — Expire between 2023 to 2026 30 — 25 — Expire between 2029 to 2043 1,504 535 702 60 No expiration date 1 1,269 10 1,124 — Total $ 2,810 $ 545 $ 1,858 $ 60 1 Under the Tax Cut and Jobs Act signed into law on December 22, 2017 ("Tax Reform"), net operating losses generated after December 31, 2017 can carryforward indefinitely. Edison International consolidates for federal income tax purposes, but not for financial accounting purposes, a group of wind projects referred to as Capistrano Wind. The amount of net operating loss and tax credit carryforwards recognized as part of deferred income taxes includes $223 million and $218 million related to Capistrano Wind for 2021 and 2020, respectively. Under a tax allocation agreement, Edison International has recorded a corresponding liability as part of other long-term liabilities related to its obligation to make payments to Capistrano Wind when these tax benefits are realized. Effective Tax Rate The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Income from operations before income taxes $ 789 $ 566 $ 1,127 $ 952 $ 665 $ 1,301 Provision for income tax at federal statutory rate of 21% 166 119 237 200 140 273 Increase (decrease) in income tax from: Items presented with related state income tax, net: State tax, net of federal benefit (47) (61) (22) (33) (52) (13) Property-related (233) (320) (303) (233) (320) (303) Change related to uncertain tax position 1 (147) (15) — (37) (19) — Deferred tax re-measurement 2 — — (88) — — (88) 2018 GRC Final Decision — — (80) — — (80) Wildfire related charges 3 31 — — 31 — — Average rate assumption method ("ARAM") adjustment 4 87 — — 87 — — Corporate-owned life insurance cash surrender value (8) (8) (8) (8) (8) (8) Other 15 (20) (14) 10 (18) (10) Total income tax (benefit) expense $ (136) $ (305) $ (278) $ 17 $ (277) $ (229) Effective tax rate (17.2) % (53.9) % (24.7) % 1.8 % (41.7) % (17.6) % 1 In 2021, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board "FTB" for tax years 2007 – 2012. See further discussion in Tax Disputes below. In 2020, Edison International and SCE recognized tax expense and benefit, respectively, primarily due to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit. 2 Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders. 3 Relates to the non-tax deductible portions of the SED Agreement (as defined in Note 12). See Note 12 for further discussion under 2017/2018 Wildfire/Mudslide Events. 4 In July 2021, SCE received the IRS' response to its private letter ruling request, regarding the scope of the deferred tax normalization requirements and the computations required to comply with the average rate assumption method. As a result, SCE's estimate changed and a cumulative true-up of $87 million reduction in tax benefits was recorded in the third quarter of 2021, for the period of January 1, 2018 to June 30, 2021. The CPUC requires flow-through ratemaking treatment for the current tax benefit arising from certain property-related and other temporary differences which reverse over time. Flow-through items reduce current authorized revenue requirements in SCE's rate cases and result in a regulatory asset for recovery of deferred income taxes in future periods. The difference between the authorized amounts as determined in SCE's rate cases, adjusted for balancing and memorandum account activities, and the recorded flow-through items also result in increases or decreases in regulatory assets with a corresponding impact on the effective tax rate to the extent that recorded deferred amounts are expected to be recovered in future rates. For further information, see Note 11. Accounting for Uncertainty in Income Taxes Authoritative guidance related to accounting for uncertainty in income taxes requires an enterprise to recognize, in its financial statements, the best estimate of the impact of a tax position by determining if the weight of available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained upon examination. The guidance requires the disclosure of all unrecognized tax benefits, which includes both the reserves recorded for tax positions on filed tax returns and the unrecognized portion of affirmative claims. Unrecognized Tax Benefits The following table provides a reconciliation of unrecognized tax benefits: Edison International SCE (in millions) 2021 2020 2019 2021 2020 2019 Balance at January 1, $ 679 $ 370 $ 338 $ 320 $ 282 $ 249 Tax positions taken during the current year: Increases 53 55 46 53 56 47 Tax positions taken during a prior year: Increases 1 3 274 6 1 4 6 Decreases 2 (118) (20) (20) (29) (22) (20) Settlements with taxing authorities 3 (4) — — (5) — — Balance at December 31, $ 613 $ 679 $ 370 $ 340 $ 320 $ 282 1 Edison International recorded favorable tax positions in 2020 in connection with the Edison Mission Energy bankruptcy that required a revaluation of the reserve for uncertain tax positions. 2 Decrease in 2021 was related to re-measurement as a result of a settlement with the FTB for tax years 2007 – 2012. 3 In 2021, Edison International reached a settlement with the FTB for tax years 2007 – 2012. As of December 31, 2021, if recognized, $344 million of unrecognized tax benefits would impact Edison International's effective tax rate and $71 million of the unrecognized tax benefits would impact SCE's effective tax rate. Tax Disputes Tax years that remain open for examination by the IRS and the FTB are 2016 – 2020 and 2013 – 2020, respectively. In the fourth quarter of 2021, Edison International recorded the impacts of a settlement with the FTB for tax years 2007 – 2012 and has updated its uncertain tax positions to reflect this settlement. This update resulted in income tax benefits of $146 million and $36 million at Edison International and SCE, respectively. As a result of the settlement, Edison International expects a refund of tax and interest from the FTB in the amount of $60 million. Accrued Interest and Penalties The total amount of accrued interest and penalties related to income tax liabilities are: Edison International SCE December 31, (in millions) 2021 2020 2021 2020 Accrued interest and penalties $ — $ 52 $ 20 $ 23 The net after-tax interest and penalties recognized in income tax (benefit) expense are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Net after-tax interest and penalties tax (benefit) expense $ (41) $ 4 $ 4 $ (2) $ 6 $ 3 |
Compensation and Benefit Plans
Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Compensation and Benefit Plans | Note 9. Employee Savings Plan The 401(k) defined contribution savings plan is designed to supplement employees' retirement income. The employer contributions were as follows: Edison International SCE (in millions) Years ended December 31, 2021 $ 97 $ 96 2020 93 92 2019 82 81 Pension Plans and Postretirement Benefits Other Than Pensions Pension Plans Noncontributory defined benefit pension plans (some with cash balance features) cover most employees meeting minimum service requirements. Employees hired by the participating companies on or after December 31, 2017 will no longer be eligible to participate in the pension plan. In lieu of that, an additional non-contributory employer contribution will be deposited into the Edison 401(k) Savings Plan. The funded position of Edison International's pension is sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's pension are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, a regulatory asset is recorded equal to the unfunded status and a regulatory liability is recorded equal to the funded status. See Note 11 for further information. Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,476 $ 4,139 $ 3,984 $ 3,662 Service cost 130 121 126 117 Interest cost 103 124 92 110 Actuarial (gain) loss (245) 323 (246) 292 Benefits paid (293) (231) (262) (197) Projected benefit obligation at end of year $ 4,171 $ 4,476 $ 3,694 $ 3,984 Change in plan assets Fair value of plan assets at beginning of year $ 4,171 $ 3,755 $ 3,940 $ 3,541 Actual return on plan assets 368 584 348 551 Employer contributions 50 62 35 45 Benefits paid (293) (230) (262) (197) Fair value of plan assets at end of year 4,296 4,171 4,061 3,940 Funded status at end of year $ 125 $ (305) $ 367 $ (44) Amounts recognized in the consolidated balance sheets consist of 1 Long-term assets $ 384 $ — $ 384 $ — Current liabilities (26) (24) (2) (2) Long-term liabilities (233) (281) (15) (42) $ 125 $ (305) $ 367 $ (44) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ — $ (1) $ — $ — Net loss 1 74 96 12 16 74 95 12 16 Amounts recognized as a regulatory (liability)/asset (395) 12 (395) 12 Total not yet recognized as (income)/expense $ (321) $ 107 $ (383) $ 28 Accumulated benefit obligation at end of year $ 3,947 $ 4,238 $ 3,491 $ 3,776 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation 4,171 4,476 3,694 3,984 Accumulated benefit obligation 3,947 4,238 3,491 3,766 Fair value of plan assets 4,296 4,171 4,061 3,940 Weighted average assumptions used to determine obligations at end of year: Discount rate 2.75 % 2.38 % 2.75 % 2.38 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $132 million and $139 million at December 31, 2021 and 2020, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $12 million and $16 million at December 31, 2021 and 2020, excludes net losses of $32 million and $41 million related to these benefits, respectively. For Edison International and SCE, respectively, the 2021 actuarial gains are primarily related to $159 million and $149 million in gains from an increase in the discount rate (from 2.38% as of December 31, 2020 to 2.75% as of December 31, 2021), and $69 million and $83 million in gains from valuation and experience. For Edison International and SCE, respectively, the 2020 actuarial losses are primarily related to $339 million and $305 million in losses from a decrease in discount rate (from 3.11% as of December 31, 2019 to 2.38% as of December 31, 2020), $76 million and $72 million in losses from a demographic assumption change, $48 million and $61 million in loss from valuation and experience, partially offset by $117 million and $124 million in gains from other economic assumption changes. Net periodic pension expense components are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 130 $ 121 $ 114 $ 127 $ 119 $ 111 Non-service cost (benefit) Interest cost 103 124 155 95 114 143 Expected return on plan assets (222) (215) (205) (211) (203) (194) Amortization of prior service cost 1 2 2 1 1 2 Amortization of net loss 11 10 7 7 7 5 Regulatory adjustment 25 16 (3) 25 16 (3) Total non-service benefit (82) (63) (44) (83) (65) (47) Total expense recognized $ 48 $ 58 $ 70 $ 44 $ 54 $ 64 Other changes in pension plan assets and benefit obligations recognized in other comprehensive income: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Net (gain) loss $ (10) $ 11 $ 19 $ (5) $ 9 $ 21 Amortization of net loss (11) (10) (7) (7) (7) (5) Total (gain) loss recognized in other comprehensive income (21) 1 12 (12) 2 16 Total recognized in expense and other comprehensive income $ 27 $ 59 $ 82 $ 32 $ 56 $ 80 In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. Edison International and SCE used the following weighted average assumptions to determine pension expense: Years ended December 31, 2021 2020 2019 Discount rate 2.38 % 3.11 % 4.19 % Rate of compensation increase 4.00 % 4.10 % 4.10 % Expected long-term return on plan assets 5.50 % 6.00 % 6.50 % Interest crediting rate for cash balance account Starting rate 3.03 % 3.61 % 4.46 % Ultimate rate 4.50 % 5.00 % 5.75 % Year ultimate rate is reached 2025 2025 2022 The following benefit payments, which reflect service rendered and expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2022 $ 315 $ 274 2023 315 273 2024 313 272 2025 308 269 2026 306 267 2027 – 2031 1,358 1,210 Postretirement Benefits Other Than Pensions ("PBOP(s)") Employees hired prior to December 31, 2017 who are retiring at or after age 55 with at least 10 years of service may be eligible for postretirement healthcare benefits. Eligibility for a company contribution toward the cost of these benefits in retirement depends on a number of factors, including the employee's years of service, age, hire date, and retirement date. Employees hired on or after December 31, 2017 are no longer eligible for retiree healthcare benefits. In lieu of those benefits, Edison International will provide a health reimbursement account of $200 per month available only after meeting certain age and service year requirements. Under the terms of the Edison International Welfare Benefit Plan ("PBOP Plan"), each participating employer (Edison International or its participating subsidiaries) is responsible for the costs and expenses of al PBOP Plan benefits with respect to its employees and former employees that exceed the participants' share of contributions. 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. The expected contributions (substantially all of which are expected to be made by SCE) for PBOP benefits are $8 million for the year ended December 31, 2022. 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. SCE has three voluntary employees' beneficiary association trusts ("VEBA Trusts") that can only be used to pay for retiree health care benefits of SCE and its subsidiaries. Once funded into the VEBA Trusts, neither SCE nor Edison International can subsequently recover remaining amounts in the VEBA Trusts. Participants of the PBOP Plan do not have a beneficial interest in the VEBA Trusts. The VEBA Trust assets are sensitive to changes in market conditions. Changes in overall interest rate levels significantly affect the company's liabilities, while assets held in the various trusts established to fund Edison International's other postretirement benefits are affected by movements in the equity and bond markets. Due to SCE's regulatory recovery treatment, the funded status is offset by a regulatory liability. Information on PBOP Plan assets and benefit obligations is shown below: Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 2,073 $ 2,083 $ 2,064 $ 2,074 Service cost 40 38 40 37 Interest cost 52 63 52 63 Actuarial loss (gain) (190) (46) (190) (45) Plan participants' contributions 29 29 29 29 Benefits paid (100) (94) (100) (94) Benefit obligation at end of year $ 1,904 $ 2,073 $ 1,895 $ 2,064 Change in plan assets Fair value of plan assets at beginning of year $ 2,717 $ 2,465 $ 2,717 $ 2,464 Actual return on assets 119 309 119 309 Employer contributions 7 8 7 8 Plan participants' contributions 29 29 29 29 Benefits paid (100) (94) (100) (93) Fair value of plan assets at end of year 2,772 2,717 2,772 2,717 Funded status at end of year $ 868 $ 644 $ 877 $ 653 Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 876 $ 663 $ 885 $ 663 Current liabilities (8) (10) (8) (10) Long-term liabilities — (9) — — $ 868 $ 644 $ 877 $ 653 Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 1 $ 1 $ — $ — Amounts recognized as a regulatory liability (886) (671) (886) (671) Total not yet recognized as income $ (885) $ (670) $ (886) $ (671) Weighted average assumptions used to determine obligations at end of year: Discount rate 2.95 % 2.67 % 2.95 % 2.67 % Assumed health care cost trend rates: Rate assumed for following year 6.25 % 6.50 % 6.25 % 6.50 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 2029 For both Edison International and SCE, the 2021 actuarial gains are primarily related to $113 million in gains from valuation and experience and $83 million in gains from an increase in the discount rate (from 2.67% as of December 31, 2020 to 2.95% as of December 31, 2021). The 2020 actuarial gains are primarily related to $169 million in gains from valuation and experience, $50 million in gains from mortality change, $32 million in gains from demographic assumption changes, partially offset by $206 million in losses from a decrease in discount rate (from 3.32% as of December 31, 2019 to 2.67% as of December 31, 2020). Net periodic PBOP expense components are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 40 $ 38 $ 30 $ 40 $ 37 $ 30 Non-service cost (benefit) Interest cost 52 63 77 52 63 77 Expected return on plan assets (106) (119) (111) (106) (119) (111) Amortization of prior service cost (1) (1) (1) (1) (1) (1) Amortization of net gain (35) (29) (17) (36) (29) (17) Regulatory adjustment 51 49 29 51 49 29 Total non-service benefit (39) (37) (23) (40) (37) (23) Total expense $ 1 $ 1 $ 7 $ — $ — $ 7 In accordance with authoritative guidance on rate-regulated enterprises, SCE records regulatory assets and liabilities instead of charges and credits to other comprehensive income (loss) for the portion of SCE's postretirement benefit plans that are recoverable in utility rates. Edison International and SCE used the following weighted average assumptions to determine PBOP expense: Years ended December 31, 2021 2020 2019 Discount rate 2.67 % 3.32 % 4.35 % Expected long-term return on plan assets 4.00 % 4.90 % 5.30 % Assumed health care cost trend rates: Current year 6.50 % 6.50 % 6.75 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 The following benefit payments (net of plan participants' contributions) are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2022 $ 78 $ 78 2023 80 80 2024 83 82 2025 84 84 2026 86 86 2027 – 2031 454 452 Plan Assets Description of Pension and Postretirement Benefits Other than Pensions Investment Strategies The investment of plan assets is overseen by a fiduciary investment committee. Plan assets are invested using a combination of asset classes and may have active and passive investment strategies within asset classes. Target allocations for 2021 pension plan assets were 21.3% for U.S. equities, 13.7% for non-U.S. equities, 50% for fixed income and 15% for opportunistic and/or alternative investments. Target allocations for 2021 PBOP plan assets (except for Represented VEBA which is 95% for fixed income and 5% for U.S. and non-U.S. equities) are 44% for U.S. and non-U.S. equities, 50% for fixed income and 6% for opportunistic and/or alternative investments. Edison International employs multiple investment management firms. Investment managers within each asset class cover a range of investment styles and approaches. Risk is managed through diversification among multiple asset classes, managers, styles and securities. Plan asset classes and individual manager performances are measured against targets. Edison International also monitors the stability of its investment managers' organizations. Allowable investment types include: ● United States equities: common and preferred stocks of large, medium, and small companies which are predominantly United States-based. ● Non-United States equities: equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies. ● Fixed income: fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade. ● Opportunistic, alternative and other investments: Opportunistic investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. Alternative investments are limited partnerships that invest in non-publicly traded entities. Other investments are diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. Asset class portfolio weights are permitted to range within plus or minus 3%. Where approved by the fiduciary investment committee, futures contracts are used for portfolio rebalancing and to reallocate portfolio cash positions. Where authorized, a few of the plans' investment managers employ limited use of derivatives, including futures contracts, options, options on futures and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. Derivatives are not used to leverage the plans or any portfolios. Determination of the Expected Long-Term Rate of Return on Assets The overall expected long-term rate of return on assets assumption is based on the long-term target asset allocation for plan assets and capital markets return forecasts for asset classes employed. A portion of the PBOP trust asset returns are subject to taxation, so the expected long-term rate of return for these assets is determined on an after-tax basis. Capital Markets Return Forecasts SCE's capital markets return forecast methodologies primarily use a combination of historical market data, current market conditions, proprietary forecasting expertise, complex models to develop asset class return forecasts and a building block approach. The forecasts are developed using variables such as real risk-free interest, inflation and asset class specific risk premiums. For equities, the risk premium is based on an assumed average equity risk premium of 5% over cash. The forecasted return on private equity and opportunistic investments are estimated at a 4% premium above public equity, reflecting a premium for higher volatility and lower liquidity. For fixed income, the risk premium is based on a comprehensive modeling of credit spreads. Fair Value of Plan Assets The PBOP Plan and the Southern California Edison Company Retirement Plan Trust assets include investments in equity securities, U.S. treasury securities, other fixed-income securities, common/collective funds, mutual funds, other investment entities, foreign exchange and interest rate contracts, and partnership/joint ventures. Equity securities, U.S. treasury securities, mutual and money market funds are classified as Level 1 as fair value is determined by observable, unadjusted quoted market prices in active or highly liquid and transparent markets. The fair value of the underlying investments in equity mutual funds are based on stock-exchange prices. The fair value of the underlying investments in fixed-income mutual funds and other fixed income securities including municipal bonds are 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. Foreign exchange and interest rate contracts are classified as Level 2 because the values are based on observable prices but are not traded on an exchange. Futures contracts trade on an exchange and therefore are classified as Level 1. No investment is classified as Level 3 as of December 31, 2021 and 2020. Common/collective funds and partnerships are measured at fair value using the net asset value per share ("NAV") and have not been classified in the fair value hierarchy. Other investment entities are valued similarly to common/collective funds and are therefore classified as NAV. The Level 1 registered investment companies are either mutual or money market funds. The remaining funds in this category are readily redeemable and classified as NAV and are discussed further at Note 9 to the pension plan trust investments table below. Edison International reviews the process/procedures of both the pricing services and the trustee to gain an understanding of the inputs/assumptions and valuation techniques used to price each asset type/class. The trustee and Edison International's validation procedures for pension and PBOP equity and fixed income securities are the same as the nuclear decommissioning trusts. For further discussion, see Note 4. The values of Level 1 mutual and money market funds are publicly quoted. The trustees obtain the values of common/collective and other investment funds from the fund managers. The values of partnerships are based on partnership valuation statements updated for cash flows. SCE's investment managers corroborate the trustee fair values. Pension Plan The following table sets forth the investments for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy: December 31, 2021 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 217 $ 918 $ — $ 1,135 Corporate stocks 3 466 4 — 470 Corporate bonds 4 — 815 — 815 Common/collective funds 5 — — 964 964 Partnerships/joint ventures 6 — — 688 688 Other investment entities 7 — — 110 110 Registered investment companies 8 57 — 31 88 Interest-bearing cash 8 — — 8 Other — 45 — 45 Total $ 748 $ 1,782 $ 1,793 $ 4,323 Receivables and payables, net (27) Combined net plan assets available for benefits 4,296 SCE's share of net plan assets $ 4,061 December 31, 2020 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 151 $ 1,006 $ — $ 1,157 Corporate stocks 3 570 5 — 575 Corporate bonds 4 — 601 — 601 Common/collective funds 5 — — 1,017 1,017 Partnerships/joint ventures 6 — — 569 569 Other investment entities 7 — — 137 137 Registered investment companies 8 69 — 23 92 Interest-bearing cash 7 — — 7 Other — 39 — 39 Total $ 797 $ 1,651 $ 1,746 $ 4,194 Receivables and payables, net (23) Combined net plan assets available for benefits 4,171 SCE's share of net plan assets $ 3,940 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 3 Corporate stocks are diversified. At December 31, 2021 and 2020, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 44% and 40% ) and Morgan Stanley Capital International (MSCI) index ( 56% and 60% ). 4 Corporate bonds are diversified. At December 31, 2021 and 2020, respectively, this category includes $61 million and $54 million for collateralized mortgage obligations and other asset backed securities. 5 At December 31, 2021 and 2020, respectively, the common/collective assets are invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index ( 41% and 37% ) and Russell 1000 indexes ( 10% and 13% ). In addition, at December 31, 2021 and 2020, respectively, 38% and 40% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 9% and 8% of this category are in non-index U.S. equity fund, which is actively managed. 6 At December 31, 2021 and 2020, respectively, 62% and 49% are invested in private equity funds with investment strategies that include branded consumer products and clean technology companies, 17% and 23% are invested in ABS including distressed mortgages and commercial and residential loans, 15% and 19% are invested in publicly traded fixed income securities, and 3% and 4% are invested in a broad range of financial assets in all global markets. 7 At December 31, 2021 and 2020, respectively, 71% and 77% are invested in emerging market equity securities and 20% and 16% are invested in domestic mortgage backed securities. 8 At December 31, 2021 and 2020, respectively, registered investment companies were invested in Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index ( 63% and 73% ) and investments included fixed income fund used for cash management ( 35% and 25% ). At December 31, 2021 and 2020, respectively, approximately 62% and 59% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. Postretirement Benefits Other than Pensions The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy: December 31, 2021 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 813 $ 10 $ — $ 823 Corporate stocks 3 145 3 — 148 Corporate notes and bonds 4 — 997 — 997 Common/collective funds 5 — — 544 544 Partnerships 6 — — 107 107 Registered investment companies 7 44 — — 44 Interest bearing cash — 51 — 51 Other 8 — 59 — 59 Total $ 1,002 $ 1,120 $ 651 $ 2,773 Receivables and payables, net (1) Combined net plan assets available for benefits 2,772 SCE's share of net plan assets $ 2,772 December 31, 2020 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 380 $ 30 $ — $ 410 Corporate stocks 3 224 3 — 227 Corporate notes and bonds 4 — 1,079 — 1,079 Common/collective funds 5 — — 693 693 Partnerships 6 — — 81 81 Registered investment companies 7 65 — — 65 Interest bearing cash — 26 — 26 Other 8 — 132 — 132 Total $ 669 $ 1,270 $ 774 $ 2,713 Receivables and payables, net 4 Combined net plan assets available for benefits $ 2,717 SCE's share of net plan assets $ 2,717 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 3 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 73% and 70% ) and the MSCI All Country World Index ( 27% and 30% ) for 2021 and 2020, respectively. 4 Corporate notes and bonds are diversified and include approximately $150 million and $170 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2021 and 2020, respectively. 5 At December 31, 2021 and 2020, respectively, 65% and 70% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index. 25% and 22% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund. 6 At December 31, 2021 and 2020, respectively, 54% and 46% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. Of the remaining partnerships category, 35% and 36% are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks, 11% and 18% are invested in a broad range of financial assets in all global markets. 7 At December 31, 2021 and 2020, respectively, registered investment companies were primarily invested in a money market fund ( 61% and 51% ) and exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index and international small cap equities ( 39% and 49% ) 8 Other includes $44 million and $61 million of municipal securities at December 31, 2021 and 2020, respectively . At December 31, 2021 and 2020, respectively, approximately 68% and 66% of the publicly traded equity investments, including equities in the common/collective funds, were located in the United States. Stock-Based Compensation Edison International maintains a shareholder-approved incentive plan (the "2007 Performance Incentive Plan") that includes stock-based compensation. The maximum number of shares of Edison International's common stock authorized to be issued or transferred pursuant to awards under the 2007 Performance Incentive Plan, as amended, is approximately 71 million shares. As of December 31, 2021, Edison International had approximately 22 million shares remaining available for new award grants under its stock-based compensation plans. The following table summarizes total expense and tax benefits associated with stock-based compensation: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Stock-based compensation expense 1 Stock options $ 16 $ 15 $ 13 $ 8 $ 7 $ 7 Performance shares 9 5 8 4 2 4 Restricted stock units 12 8 6 8 4 3 Other 2 1 2 — — — Total stock-based compensation expense 39 29 29 20 13 14 Income tax benefits related to stock compensation expense $ 4 $ 4 $ 10 $ 3 $ 3 $ 6 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. Stock Options Under the 2007 Performance Incentive Plan, Edison International has granted stock options at exercise prices equal to the closing price at the grant date. Edison International may grant stock options and other awards related to, or with a value derived from, its common stock to directors and certain employees. Options generally expire 10 years after the grant date and vest over a period of four years of continuous service in equal annual increments, except for awards granted to retirement-eligible participants, which vest on an accelerated basis. The fair value for each option granted was determined as of the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires various assumptions noted in the following table: Years ended December 31, 2021 2020 2019 Expected terms (in years) 5.4 5.2 5.5 Risk-free interest rate 1.1% - 1.3% 0.4% - 0.6% 1.6% - 2.3% Expected dividend yield 4.1% - 4.8% 4.2% - 5.0% 3.3% - 4.0% Weighted average expected dividend yield 4.5% 4.7% 3.9% Expected volatility 26.9% - 27.1% 24.9% - 26.9% 21.7% - 24.1% Weighted average volatility 26.9% 25.0% 21.8% The expected term represents the period of time for which the options are expected to be outstanding and is primarily based on historical exercise and post-vesting cancellation experience and stock price history. The risk-free interest rate for periods within the contractual life of the option is based on a zero-coupon U.S. Treasury STRIPS (separate trading of registered interest and principal of securities) whose maturity corresponds to the option's expected term on the measurement date. Expected volatility is based on the historical volatility of Edison International's common stock for the length of the option's expected term for 2021. The volatility period used was 64 months, 63 months and 66 months at December 31, 2021, 2020 and 2019, respectively. The following is a summary of the status of Edison International's stock options: |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | Note 10. 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): Amortized Cost Fair Value Longest December 31, (in millions) Maturity Date 2021 2020 2021 2020 Stocks — * * $ 1,972 $ 1,908 Municipal bonds 2057 875 1,013 1,033 1,218 U.S. government and agency securities 2067 1,095 740 1,212 864 Corporate bonds 2070 386 460 446 550 Short-term investments and receivables/payables 1 One-year 199 281 207 293 Total $ 2,555 $ 2,494 $ 4,870 $ 4,833 * Not applicable 1 Short-term investments include $37 million and $138 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 3, 2022 and January 4, 2021 as of December 31, 2021 and 2020, respectively. Trust fund earnings (based on specific identification) increase the trust fund balance and the ARO regulatory liability. Unrealized holding gains, net of losses, were $2.1 billion at both December 31, 2021 and 2020. Trust assets are used to pay income taxes. Deferred tax liabilities related to net unrealized gains were $517 million and $515 million at December 31, 2021 and 2020, respectively. Accordingly, the fair value of trust assets available to pay future decommissioning costs, net of deferred income taxes, totaled $4.4 billion and $4.3 billion at December 31, 2021 and 2020, respectively. The following table summarizes the gains and losses for the trust investments: December 31, (in millions) 2021 2020 2019 Gross realized gains $ 339 $ 255 $ 87 Gross realized losses (24) (6) (2) Net unrealized gains for equity securities 103 176 343 Due to regulatory mechanisms, changes in assets of the trusts from income or loss items have no impact on operating revenue or earnings. Edison International Parent and Other's Investments Edison International Parent and Other holds strategic investments in companies focused on developing electric technologies and services. As of December 31, 2021, these investments consist of $12 million of marketable securities, and $3 million of equity investments without readily determinable fair values (included as "Other investments" on Edison International's consolidated balance sheets). The unrealized gains for equity investments held as of December 31, 2021 is $4 million for the year ended December 31, 2021, recorded as "Other income" on Edison International's consolidated statement of income. For further information, see Note 4 and Note 16. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Note 11. Included in SCE's regulatory assets and liabilities are regulatory balancing accounts. CPUC-authorized balancing account mechanisms require SCE to refund or recover any differences between forecasted and actual costs. The CPUC has authorized balancing accounts for specified costs or programs such as fuel, purchased power, demand-side management programs, wildfire related costs, nuclear decommissioning and public purpose programs. Certain of these balancing accounts include a return on rate base of 7.68% in both 2021 and 2020, respectively. The CPUC authorizes the use of a balancing account to recover from or refund to customers differences in revenue resulting from actual and forecasted electricity sales. Amounts included in regulatory assets and liabilities are generally recorded with corresponding offsets to the applicable income statement accounts. Regulatory Assets SCE's regulatory assets included on the consolidated balance sheets are: December 31, (in millions) 2021 2020 Current: Regulatory balancing and memorandum accounts $ 1,591 $ 1,127 Power contracts 168 165 Other 19 22 Total current 1,778 1,314 Long-term: Deferred income taxes, net of liabilities 4,770 4,475 Pension and other postretirement benefits — 12 Power contracts 71 239 Unamortized investments, net of accumulated amortization 114 114 Unamortized loss on reacquired debt 121 133 Regulatory balancing and memorandum accounts 1,897 1,794 Environmental remediation 242 247 Recovery assets 325 — Other 120 106 Total long-term 7,660 7,120 Total regulatory assets $ 9,438 $ 8,434 In accordance with the accounting standards applicable to rate-regulated enterprises, SCE defers costs as regulatory assets that are probable of future recovery from customers and has recorded regulatory assets for these incremental costs at December 31, 2021. While SCE believes such costs are probable of future recovery, there is no assurance that SCE will collect all amounts currently deferred as regulatory assets. SCE's regulatory assets related to power contracts primarily represent derivative contracts that were designated as normal purchases and normal sales contracts. The liabilities for these power contracts are amortized over the remaining contract terms, approximately 2 to 5 years. For further information, see Note 1. SCE's regulatory assets related to deferred income taxes represent tax benefits passed through to customers. The CPUC requires SCE to flow through certain deferred income tax benefits to customers by reducing electricity rates, thereby deferring recovery of such amounts to future periods. Based on current regulatory ratemaking and income tax laws, SCE expects to recover its regulatory assets related to deferred income taxes over the life of the assets that give rise to the accumulated deferred income taxes, approximately from 1 to 60 years. For further information, see Note 8. SCE has long-term unamortized investments which include nuclear assets related to Palo Verde and the beyond the meter program. Nuclear assets related to Palo Verde and the beyond the meter program are expected to be recovered by 2046 and 2031, respectively, and both earned returns of 7.68% in 2021 and 2020. SCE's net regulatory asset related to its unamortized loss on reacquired debt will be recovered over the original amortization period of the reacquired debt over periods ranging from 10 to 40 years or the life of the new issuance if the debt is refunded or refinanced. SCE's regulatory assets related to environmental remediation represent a portion of the costs incurred at certain sites that SCE is allowed to recover through customer rates. See "Environmental Remediation" discussed in Note 12. Recovery assets represent the balance associated with the AB 1054 Excluded Capital Expenditures related Recovery Properties and prudently incurred financing costs securitized in 2021 with issuance of the associated bond. The recovery period is until 2043, when the bonds and interest are paid in full. For further details, see Note 3. Regulatory Liabilities SCE's regulatory liabilities included on the consolidated balance sheets are: December 31, (in millions) 2021 2020 Current: Regulatory balancing and memorandum accounts $ 553 $ 471 Energy derivatives 25 87 Other 25 11 Total current 603 569 Long-term: Costs of removal 2,552 2,595 Re-measurement of deferred taxes 2,315 2,283 Recoveries in excess of ARO liabilities 2,155 1,930 Regulatory balancing and memorandum accounts 648 1,062 Pension and other postretirement benefits 1,281 671 Other 30 48 Total long-term 8,981 8,589 Total regulatory liabilities $ 9,584 $ 9,158 SCE's regulatory liabilities related to energy derivatives are primarily an offset to unrealized gains on derivatives. SCE's regulatory liabilities related to costs of removal represent differences between asset removal costs recorded and amounts collected in rates for those costs. As a result of Tax Reform, SCE's deferred tax assets and liabilities were re-measured at December 31, 2017, resulting in the initial recording of regulatory liabilities. The amount was further adjusted for CPUC's final resolution in February 2019, which stated that customers are only entitled to re-measurement of deferred taxes that were included when setting rates (i.e. included in rate base), and that all other deferred tax re-measurements belong to shareholders. The regulatory liabilities are generally expected to be refunded to customers over the lives of the assets and liabilities that gave rise to the deferred taxes. SCE's regulatory liabilities related to recoveries in excess of ARO liabilities represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion. SCE's regulatory liabilities related to pension and other post-retirement plans represent the overfunded net gains and prior service costs of the plans. This amount will be refunded through rates over time to customers. See "Pension Plans and Postretirement Benefits Other than Pensions" discussion in Note 9. Net Regulatory Balancing and Memorandum Accounts Balancing accounts track amounts that the CPUC or FERC have authorized for recovery. Balancing account over and under collections represent differences between cash collected in current rates for specified forecasted costs and such costs that are actually incurred. Undercollections are recorded as regulatory balancing account assets. Overcollections are recorded as regulatory balancing account liabilities. With some exceptions, SCE seeks to adjust rates on an annual basis or at other designated times to recover or refund the balances recorded in its balancing accounts. Memorandum accounts are authorized to track costs for potential future recovery. Regulatory balancing and memorandum accounts that SCE does not expect to collect or refund in the next 12 months are reflected in the long-term section of the consolidated balance sheets. Regulatory balancing and memorandum accounts that do not have the right of offset are presented gross in the consolidated balance sheets. Under and over collections in balancing accounts and amounts recorded in memorandum accounts typically accrue interest based on a three-month commercial paper rate published by the Federal Reserve. The following table summarizes the significant components of regulatory balancing and memorandum accounts included in the above tables of regulatory assets and liabilities: December 31, (in millions) 2021 2020 Asset (liability) Energy resource recovery account $ 759 $ (89) Portfolio allocation balancing account (183) 497 New system generation balancing account 73 (10) Public purpose programs and energy efficiency programs (1,066) (1,130) Base revenue requirement balancing account 849 622 GRC wildfire mitigation balancing accounts 1 12 — Greenhouse gas auction revenue and low carbon fuel standard revenue (298) (125) FERC balancing accounts 55 12 Wildfire and drought restoration accounts 2 299 361 Wildfire-related memorandum accounts 3 1,456 1,104 COVID-19-related memorandum accounts 94 176 Customer service re-platform memorandum account 4 128 30 Tax accounting memorandum account and pole loading balancing account 171 (35) Other (62) (25) Asset $ 2,287 $ 1,388 1 The 2021 GRC decision approved the establishment of the vegetation management balancing account ("VMBA") to track vegetation management expenses up to 115% of amounts authorized, the Wildfire Risk Mitigation balancing account ("WRMBA") to track the costs of SCE's Wildfire Covered Conductor Program up to 110% of amounts authorized and the risk management balancing account to track the authorized costs of wildfire insurance. The amount recorded to these balancing accounts represents the difference between costs tracked in the balancing accounts and authorized revenues for those costs recorded to the base revenue requirement balancing account. If spending is less than authorized, SCE will refund those amounts to customers. If spending is within the specified threshold, if any, for each balancing account, SCE will recover those costs from customers. Amounts above the specified threshold, or above amounts authorized if a higher threshold was not established, for each balancing account may be eligible for deferral to wildfire-related memorandum accounts. 2 The wildfire and drought restoration accounts regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account ("CEMA"). 3 The wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") was used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claims costs. The Wildfire Mitigation Plan Memorandum Account ("WMPMA") is used to track costs incurred to implement SCE's wildfire mitigation plan that are not currently reflected in SCE's revenue requirements. The Fire Risk Mitigation Memorandum Account ("FRMMA") is used to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's GRCs that are not tracked in any other wildfire-related memorandum account. The balance also includes vegetation management spending in excess of the 115% threshold for the VMBA described above. 4 CSRP memorandum account was established in the 2018 GRC to track costs for implementation of a new customer service system not currently reflected in SCE's revenue requirements. Expenditures for the CSRP project are subject to reasonableness review by the CPUC, expenditures for the project were significantly higher than originally projected. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Power Purchase Agreements SCE entered into various agreements to purchase power, electric capacity and other energy products. At December 31, 2021, the undiscounted future expected minimum payments for the SCE PPAs (primarily related to renewable energy contracts), which were approved by the CPUC and met other critical contract provisions (including completion of major milestones for construction), were as follows: (in millions) Total 2022 $ 3,131 2023 3,026 2024 2,460 2025 2,347 2026 2,358 Thereafter 20,179 Total future commitments 1 $ 33,501 1 Certain power purchase agreements are treated as operating or finance leases. For further discussion, see Note 13. Additionally, as of December 31, 2021, SCE has executed contracts (including capacity reduction contracts) that have not met the critical contract provisions that would increase contractual obligations by $15 million in 2022, $49 million in 2023, $74 million in 2024, $79 million in 2025, $79 million in 2026 and $844 million thereafter, if all critical contract provisions are completed. These include long-term lease contracts commencing in 2022 and 2023 with future minimum lease payments of $396 million. Costs incurred for PPAs were $4.7 billion in 2021, $3.8 billion in 2020 and $3.7 billion in 2019, which include costs associated with contracts with terms of less than one year. Other Commitments The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2022 2023 2024 2025 2026 Thereafter Total Other contractual obligations $ 47 $ 47 $ 48 $ 47 $ 37 $ 222 $ 448 Costs incurred for other commitments were $62 million in 2021, $80 million in 2020 and $110 million in 2019. Other commitments include fuel supply contracts for Palo Verde which require payment only if the fuel is made available for purchase. Also included are commitments related to maintaining reliability and expanding SCE's transmission and distribution system. The table above does not include asset retirement obligations, which are discussed in Note 1. Indemnities Edison International and SCE have various financial and performance guarantees and indemnity agreements which are issued in the normal course of business. Edison International and SCE have agreed to provide indemnifications through contracts entered into in the normal course of business. These are primarily indemnifications against adverse litigation outcomes in connection with underwriting agreements, indemnities for specified environmental liabilities and income taxes with respect to assets sold or other contractual arrangements. Edison International's and SCE's obligations under these agreements may or may not be limited in terms of time and/or amount, and in some instances Edison International and SCE may have recourse against third parties. Edison International and SCE have not recorded a liability related to these indemnities. The overall maximum amount of the obligations under these indemnifications cannot be reasonably estimated. Contingencies In addition to the matters disclosed in these Notes, Edison International and SCE are involved in other legal, tax, and regulatory proceedings before various courts and governmental agencies regarding matters arising in the ordinary course of business. Edison International and SCE believe the outcome of each of these other proceedings will not materially affect its financial position, results of operations and cash flows. Southern California Wildfires and Mudslides Wildfires in SCE's territory, including those where SCE's equipment may be alleged to be associated with the fire's ignition, have caused loss of life and substantial damage in recent years. California has experienced unprecedented weather conditions in recent years due to climate change, and SCE's service territory remains susceptible to additional wildfire activity in 2022 and beyond. Numerous claims related to wildfire events have been initiated against SCE and Edison International. Edison International and SCE have incurred material losses in connection with the 2017/2018 Wildfire/Mudslide Events (defined below), which are described below. SCE's equipment has been, and may further be, alleged to be associated with several wildfires that have originated in Southern California subsequent to 2018, including the 2019/2020 Wildfires (defined below). Edison International and SCE expect that any losses incurred in connection with those fires will be covered by insurance, subject to self-insured retentions and co-insurance, or third-party receivables, and expect that any such losses after recoveries will not be material. Liability Overview The extent of liability for wildfire-related damages in actions against utilities depends on a number of factors, including whether the utility substantially caused or contributed to the damages and whether parties seeking recovery of damages will be required to show negligence in addition to causation. California courts have previously found utilities to be strictly liable for property damage along with associated interest and attorneys' fees, regardless of fault, by applying the theory of inverse condemnation when a utility's facilities were determined to be a substantial cause of a wildfire that caused the property damage. If inverse condemnation is held to be inapplicable to SCE in connection with a wildfire, SCE still could be held liable for property damages and associated interest if the property damages were found to have been proximately caused by SCE's negligence. If SCE were to be found negligent, SCE could also be held liable for, among other things, fire suppression costs, business interruption losses, evacuation costs, clean-up costs, medical expenses, and personal injury/wrongful death claims. Additionally, SCE could potentially be subject to fines and penalties for alleged violations of CPUC rules and state laws investigated in connection with the ignition of a wildfire. Final determinations of liability for wildfire events, including determinations of whether SCE was negligent, would only be made during lengthy and complex litigation processes. Even when investigations are still pending or liability is disputed, an assessment of likely outcomes, including through future settlement of disputed claims, may require estimated losses to be accrued under accounting standards. Each reporting period, management reviews its loss estimates for remaining alleged and potential claims related to wildfire events. The process for estimating losses associated with alleged and potential wildfire related claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including, but not limited to: estimates of known and expected claims by third parties based on currently available information, opinions of counsel regarding litigation risk, the status of and developments in the course of litigation, and prior experience litigating and settling wildfire litigation claims. As additional information becomes available, management's estimates and assumptions regarding the causes and financial impact of wildfire events may change. For instance, as a result of additional information, management increased its estimated losses for the 2017/2018 Wildfire/Mudslide Events (as defined below) in the third quarter of 2021. 2017/2018 Wildfire/Mudslide Events Wildfires in SCE's territory in December 2017 and November 2018 caused loss of life, substantial damage to both residential and business properties, and service outages for SCE customers. The investigating government agencies, the Ventura County Fire Department ("VCFD") and California Department of Forestry and Fire Protection ("CAL FIRE"), have determined that the largest of the 2017 fires in SCE's territory originated on December 4, 2017, in the Anlauf Canyon area of Ventura County (the investigating agencies refer to this fire as the "Thomas Fire"), followed shortly thereafter by a second fire that originated near Koenigstein Road in the City of Santa Paula (the "Koenigstein Fire"). The December 4, 2017 fires eventually burned substantial acreage in both Ventura and Santa Barbara Counties. According to CAL FIRE, the Thomas and Koenigstein Fires, collectively, burned over 280,000 acres, destroyed or damaged an estimated 1,343 structures and resulted in two confirmed fatalities. The largest of the November 2018 fires in SCE's territory, known as the "Woolsey Fire," originated in Ventura County and burned acreage in both Ventura and Los Angeles Counties. According to CAL FIRE, the Woolsey Fire burned almost 100,000 acres, destroyed an estimated 1,643 structures, damaged an estimated 364 structures and resulted in three confirmed fatalities. Four additional fatalities are alleged to have been associated with the Woolsey Fire. As described below, multiple lawsuits related to the Thomas and Koenigstein Fires and the Woolsey Fire have been initiated against SCE and Edison International. Some of the Thomas and Koenigstein Fires lawsuits claim that SCE and Edison International have responsibility for the damages caused by debris flows and flooding in Montecito and surrounding areas in January 2018 (the "Montecito Mudslides") based on a theory alleging that SCE has responsibility for the Thomas and/or Koenigstein Fires and further alleging that the Thomas and/or Koenigstein Fires proximately caused the Montecito Mudslides. According to Santa Barbara County initial reports, the Montecito Mudslides destroyed an estimated 135 structures, damaged an estimated 324 structures, and resulted in 21 confirmed fatalities, with two additional fatalities presumed. One of the presumed fatalities has been confirmed. The Thomas Fire, the Koenigstein Fire, the Montecito Mudslides (defined below) and the Woolsey Fire are each referred to as a "2017/2018 Wildfire/Mudslide Event," and, collectively, referred to as the "2017/2018 Wildfire/Mudslide Events." Based on information available to SCE and consideration of the risks associated with litigation, Edison International and SCE expect to incur a material loss in connection with the remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. In 2021, Edison International and SCE accrued estimated losses of $1.3 billion for claims related to the 2017/2018 Wildfire/Mudslide Events, against which SCE has recorded expected recoveries through FERC electric rates of $67 million. The resulting charge was $1.2 billion ($894 million after-tax). As of December 31, 2021, Edison International and SCE had paid $5.7 billion in settlements, had $131 million to be paid under executed settlements and had $1.6 billion of estimated losses for remaining alleged and potential claims and for the SED Agreement (defined below) reflected on their consolidated balance sheets related to the 2017/2018 Wildfire/Mudslide Events. As of the same date, Edison International and SCE had assets for expected recoveries through FERC electric rates of $165 million on their consolidated balance sheets and had exhausted expected insurance recoveries related to the 2017/2018 Wildfire/Mudslide Events. Estimated losses for the 2017/2018 Wildfire/Mudslide Events litigation are based on a number of assumptions and are subject to change as additional information becomes available. Actual losses incurred may be higher or lower than estimated based on several factors, including: the uncertainty in estimating damages that have been or may be alleged, the ability to reach settlements through the ongoing claims mediation processes, uncertainties related to the litigation processes, uncertainty as to the legal and factual determinations to be made during litigation, including uncertainty as to the contributing causes of the 2017/2018 Wildfire/Mudslide Events, the complexities associated with fires that merge and whether inverse condemnation will be held applicable to SCE with respect to damages caused by the Montecito Mudslides, and the uncertainty as to how these factors impact future settlements. The CPUC and FERC may not allow SCE to recover uninsured losses through electric rates if it is determined that such losses were not reasonably or prudently incurred. SCE will seek rate recovery of prudently-incurred, actual losses realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance, other than for CPUC-jurisdictional rate recovery of the $375 million of SED Excluded Losses (defined below) if the CPUC's approval of the SED Agreement becomes final and non-appealable. See "Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates" below for additional information. External Investigations and Internal Review The VCFD and CAL FIRE have jointly issued reports concerning their findings regarding the causes of the Thomas Fire and the Koenigstein Fire. The reports did not address the causes of the Montecito Mudslides. SCE has also received a non-final redacted draft of a report from the VCFD regarding Woolsey Fire (the "Redacted Woolsey Report"). SCE cannot predict when the VCFD will release its final report regarding the Woolsey Fire. The VCFD and CAL FIRE findings do not determine legal causation of or assign legal liability for the Thomas, Koenigstein or Woolsey Fires; final determinations of legal causation and liability would only be made during lengthy and complex litigation. The CPUC's Safety and Enforcement Division ("SED") conducted investigations to assess SCE's compliance with applicable rules and regulations in areas impacted by the Thomas, Koenigstein and Woolsey Fires. As discussed below, in October 2021, SCE and the SED executed the SED Agreement (as defined below) to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events. The California Attorney General's Office has completed its investigation of the Thomas Fire and the Woolsey Fire without pursuing criminal charges. SCE's internal review into the facts and circumstances of each of the 2017/2018 Wildfire/Mudslide Events is complex and time consuming. SCE expects to obtain and review additional information and materials in the possession of third parties during the course of its internal reviews and the litigation processes. Thomas Fire On March 13, 2019, the VCFD and CAL FIRE jointly issued a report concluding, after ruling out other possible causes, that the Thomas Fire was started by SCE power lines coming into contact during high winds, resulting in molten metal falling to the ground. However, the report does not state that their investigation found molten metal on the ground. At this time, based on available information, SCE has not determined whether its equipment caused the Thomas Fire. Based on publicly available radar data showing a smoke plume in the Anlauf Canyon area emerging in advance of the report's indicated start time, SCE believes that the Thomas Fire started at least 12 minutes prior to any issue involving SCE's system and at least 15 minutes prior to the start time indicated in the report. SCE is continuing to assess the extent of damages that may be attributable to the Thomas Fire. Koenigstein Fire On March 20, 2019, the VCFD and CAL FIRE jointly issued a report finding that the Koenigstein Fire was caused when an energized SCE electrical wire separated and fell to the ground along with molten metal particles and ignited the dry vegetation below. As previously disclosed, SCE believes that its equipment was associated with the ignition of the Koenigstein Fire. SCE is continuing to assess the extent of damages that may be attributable to the Koenigstein Fire. Montecito Mudslides SCE's internal review includes inquiry into whether the Thomas and/or Koenigstein Fires proximately caused or contributed to the Montecito Mudslides, whether, and to what extent, the Thomas and/or Koenigstein Fires were responsible for the damages in the Montecito area and other factors that potentially contributed to the losses that resulted from the Montecito Mudslides. Many other factors, including, but not limited to, weather conditions and insufficiently or improperly designed and maintained debris basins, roads, bridges and other channel crossings, could have proximately caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. At this time, based on available information, SCE has not been able to determine whether the Thomas Fire or the Koenigstein Fire, or both, were responsible for the damages in the Montecito area. In the event that SCE is determined to have caused the fire that spread to the Montecito area, SCE cannot predict whether, if fully litigated, the courts would conclude that the Montecito Mudslides were caused or contributed to by the Thomas and/or Koenigstein Fires or that SCE would be liable for some or all of the damages caused by the Montecito Mudslides. Woolsey Fire SCE's internal review into the facts and circumstances of the Woolsey Fire is ongoing. SCE has reported to the CPUC that there was an outage on SCE's electric system in the vicinity of where the Woolsey Fire reportedly began on November 8, 2018. SCE is aware of witnesses who saw fire in the vicinity of SCE's equipment at the time the fire was first reported. While SCE did not find evidence of downed electrical wires on the ground in the suspected area of origin, it observed a pole support wire in proximity to an electrical wire that was energized prior to the outage. The Redacted Woolsey Report states that the VCFD investigation team determined that electrical equipment owned and operated by SCE was the cause of the Woolsey Fire. Absent additional evidence, SCE believes that it is likely that its equipment was associated with the ignition of the Woolsey Fire. SCE expects to obtain and review additional information and materials in the possession of CAL FIRE and others during the course of its internal review and the Woolsey Fire litigation process, including SCE equipment that has been retained by CAL FIRE. Litigation Multiple lawsuits related to the 2017/2018 Wildfire/Mudslide Events naming SCE as a defendant have been filed by three categories of plaintiffs: individual plaintiffs, subrogation plaintiffs and public entity plaintiffs. A number of the lawsuits also name Edison International as a defendant and some of the lawsuits were filed as purported class actions. Because potential plaintiffs can still timely file claims related to some of the 2017/2018 Wildfire/Mudslide Events, SCE expects to be the subject of additional lawsuits related to the events. The litigation could take a number of years to be resolved because of the complexity of the matters and number of plaintiffs. On October 4, 2018, the Los Angeles Superior Court denied Edison International's and SCE's challenge to the application of inverse condemnation to SCE with respect to the Thomas and Koenigstein Fires and, on February 26, 2019, the California Supreme Court denied SCE's petition to review the Superior Court's decision. In January 2019, SCE filed a cross-complaint against certain local public entities alleging that failures by these entities, such as failure to adequately plan for flood hazards and build and maintain adequate debris basins, roads, bridges and other channel crossings, among other things, caused, contributed to or exacerbated the losses that resulted from the Montecito Mudslides. These cross-claims in the Montecito Mudslides litigation were not released as part of the Local Public Entity Settlements (as defined below). Settlements In the fourth quarter of 2019, SCE paid $360 million to a number of local public entities to resolve those parties' collective claims arising from the 2017/2018 Wildfire/Mudslide Events (the "Local Public Entity Settlements"). In the third quarter of 2020, Edison International and SCE entered into an agreement (the "TKM Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation (the "TKM Subrogation Plaintiffs") collective claims arising from the Thomas Fire, Koenigstein Fire or Montecito Mudslides have been resolved. Under the TKM Subrogation Settlement, SCE paid the TKM Subrogation Plaintiffs an aggregate of $1.2 billion in October 2020 and also agreed to pay $0.555 for each dollar in claims to be paid by the TKM Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap. In January 2021, Edison International and SCE entered into an agreement (the "Woolsey Subrogation Settlement") under which all of the insurance subrogation plaintiffs' in the Woolsey Fire litigation (the "Woolsey Subrogation Plaintiffs") collective claims arising from the Woolsey Fire have been resolved. Under the Woolsey Subrogation Settlement, SCE paid the Woolsey Subrogation Plaintiffs an aggregate of $2.2 billion in March and April 2021. SCE has also agreed to pay $0.67 for each dollar in claims to be paid by the Woolsey Subrogation Plaintiffs to their policy holders on or before July 15, 2023, up to an agreed upon cap. As of December 31, 2021, SCE has also entered into settlements with approximately 5,000 individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation. In 2020 and 2021, SCE entered into settlements with individual plaintiffs in the 2017/2018 Wildfire/Mudslide Events litigation under which it agreed to pay an aggregate of approximately $300 million and $1.7 billion, respectively, to those individual plaintiffs. Edison International and SCE did not admit wrongdoing or liability as part of any of the settlements described above. Other claims and potential claims related to the 2017/2018 Wildfire/Mudslide Events remain. SCE continues to explore reasonable settlement opportunities with other plaintiffs in the outstanding 2017/2018 Wildfire/Mudslide Events litigation. SED Agreement In October 2021, SCE and the SED executed an agreement (the "SED Agreement") to resolve the SED's investigations into the 2017/2018 Wildfire/Mudslide Events and three other 2017 wildfires for, among other things, aggregate costs of $550 million. The $550 million in costs is comprised of a $110 million fine to be paid to the State of California General Fund, $65 million of shareholder-funded safety measures, and an agreement by SCE to waive its right to seek cost recovery in CPUC-jurisdictional rates for $375 million of third-party uninsured claims payments (the "SED Excluded Losses"). The SED Agreement provides that SCE may, on a permanent basis, exclude from its ratemaking capital structure any after-tax charges to equity or debt borrowed to finance costs incurred under the SED Agreement. The SED Agreement also imposes other obligations on SCE, including reporting requirements and safety-focused studies. The CPUC approved the SED Agreement in December 2021 and its approval has been legally challenged by The Utility Reform Network. SCE's obligations under the SED Agreement will only commence after CPUC approval of the SED Agreement is final and non-appealable. SCE did not admit imprudence, negligence or liability with respect to the 2017/2018 Wildfire/Mudslide Events in the SED Agreement. Loss Estimates for Third Party Claims and Potential Recoveries from Insurance and through Electric Rates At December 31, 2021 and December 31, 2020, Edison International's and SCE's balance sheets include accrued liabilities of $1.7 billion and $4.4 billion, respectively, for the 2017/2018 Wildfire/Mudslide Events. The following table presents changes in estimated losses since December 31, 2020: (in millions) Balance at December 31, 2020 1 $ 4,383 Increase in accrued estimated losses 1,265 Amounts paid (3,914) Balance at December 31, 2021 2 $ 1,734 1 At December 31, 2020, $2,231 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes an estimate for claims brought by insurance subrogation plaintiffs in the Woolsey Fire litigation, which were settled on January 22, 2021 for $2,212 million, and $19 million of other settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2020, the $2,281 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events after giving effect to the Woolsey Subrogation Settlement of $2,152 million and other wildfire-related claims estimates of $129 million. 2 At December 31, 2021, $131 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consists of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2021, the $ 1,733 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for the 2017/2018 Wildfire/Mudslide Events of $1,603 million and other wildfire-related claims estimates of $130 million . For the years-ended December 31, 2021 and 2020, the income statements include charges for the estimated losses, net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: Year ended December 31, (in millions) 2021 2020 Charge for wildfire-related claims $ 1,265 $ 1,297 Expected revenue from FERC customers (67) (84) Total pre-tax charge 1,198 1,213 Income tax benefit (304) (339) Total after-tax charge $ 894 $ 874 For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE had $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. For the Woolsey Fire, SCE had an additional $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. The following table presents changes in expected insurance recoveries associated with the estimated losses for the 2017/2018 Wildfire/Mudslide Events since December 31, 2020: (in millions) Balance at December 31, 2020 $ 708 Insurance recoveries (708) Balance at December 31, 2021 $ — In total, through December 31, 2021, SCE has accrued estimated losses of $7.5 billion, has paid or is obligated to pay approximately $5.9 billion in settlements and has recovered $2.0 billion from its insurance carriers in relation to the 2017/2018 Wildfire/Mudslide Events. Recovery of SCE's actual losses realized in connection with the 2017/2018 Wildfire/Mudslide Events in excess of available insurance is subject to approval by regulators. Under accounting standards for rate-regulated enterprises, SCE defers costs as regulatory assets when it concludes that such costs are probable of future recovery in electric rates. SCE utilizes objectively determinable evidence to form its view on probability of future recovery. The only directly comparable precedent in which a California investor-owned utility has sought recovery for uninsured wildfire-related costs is SDG&E's requests for cost recovery related to 2007 wildfire activity, where the FERC allowed recovery of all FERC-jurisdictional wildfire-related costs while the CPUC rejected recovery of all CPUC-jurisdictional wildfire-related costs based on a determination that SDG&E did not meet the CPUC's prudency standard. As a result, while SCE does not agree with the CPUC's decision, it believes that the CPUC's interpretation and application of the prudency standard to SDG&E creates substantial uncertainty regarding how that standard will be applied to an investor-owned utility in wildfire cost-recovery proceedings for fires ignited prior to July 12, 2019. SCE will continue to evaluate the probability of recovery based on available evidence, including judicial, legislative and regulatory decisions, including any CPUC decisions illustrating the interpretation and/or application of the prudency standard when making determinations regarding recovery of uninsured wildfire-related costs. While the CPUC has not made a determination regarding SCE's prudency relative to any of the 2017/2018 Wildfire/Mudslide Events, SCE is unable to conclude, at this time, that uninsured CPUC-jurisdictional wildfire-related costs are probable of recovery through electric rates. SCE would record a regulatory asset at the time it obtains sufficient information to support a conclusion that recovery is probable. In July 2019, SCE filed a CEMA application with the CPUC to seek recovery of, among other things, approximately $60 million of capital expenditures and capital related expenses incurred to restore service to customers and to repair, replace and restore buildings and SCE's facilities damaged or destroyed as a result of six 2017 fires, primarily the Thomas and Koenigstein Fires. In August 2021, the CPUC issued a final decision which denied without prejudice SCE's application to recover a revenue requirement of $8 million for all six 2017 wildfires on the basis that SCE did not demonstrate that it was prudent in relation to the Thomas and Rye fires and had failed to segregate the costs attributable to the other four fires. Of the $8 million revenue requirement that was denied, $6 million was for the Thomas and Rye fires. CAL FIRE has determined that the Thomas and Rye fires were caused by SCE equipment. The decision allows SCE to submit additional applications with the CPUC to recover the costs associated with the Thomas and Rye fires, does not specify a deadline for any such applications, and directs that SCE must prove it was prudent in relation to the Thomas and/or Rye fires, as applicable, in any such future applications. As required by the final decision with respect to the other four fires, SCE filed supplemental testimony in November 2021 segregating the restoration costs attributable to each such fire. As of December 31, 2021, SCE has $186 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events which may not be recoverable. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in future cost recovery proceedings. SCE continues to incur costs for reconstructing its system and restoring service to structures that were damaged or destroyed by the Thomas, Koenigstein and Woolsey Fires and plans to file additional applications with the CPUC to recover such costs. Through the operation of its FERC Formula Rate, and based upon the precedent established in SDG&E's recovery of FERC-jurisdictional wildfire-related costs, SCE believes it is probable it will recover its FERC-jurisdictional wildfire and mudslide related costs and has recorded total expected recoveries of $300 million within the FERC balancing account. This was the FERC portion of the total estimated losses accrued. As of December 31, 2021, collections have reduced the regulatory assets remaining in the FERC balancing account to $165 million. 2019/2020 Wildfires Several wildfires significantly impacted portions of SCE's service territory in 2019 and 2020 (the wildfires that originated in Southern California in 2019 and 2020 where SCE's equipment may be alleged to be associated with the fire's ignition are referred to collectively as the "2019/2020 Wildfires"). Edison International and SCE expect that any losses incurred in connection with the 2019/2020 Wildfires will be covered by insurance, subject to self-insured retentions and co-insurance, and expect that any such losses after insurance recoveries will not be material. As of December 31, 2021, Edison International and SCE had estimated losses (established at the lower end of the reasonably estimated range of expected losses) of $123 million, and expected recoveries from insurance of $75 million, reflected on their consolidated balance sheets related to the 2019/2020 Wildfires. One of the 2019/2020 Wildfires, the "Saddle Ridge" Fire, originated in Los Angeles county in October 2019 and burned approximately 9,000 acres, destro |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 13. Leases as Lessee SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases when SCE has dispatch rights that determine when and how a plant runs. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the lease contracts included in the table below are primarily 2 to 20 years for PPA leases, 3 to 72 years for office leases, and 5 to 13 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2021: PPA Operating Other Operating PPA Finance (in millions) Leases 1 Leases 2 Leases 1 2022 $ 579 $ 44 $ 1 2023 482 36 1 2024 73 30 — 2025 73 27 — 2026 70 24 — Thereafter 698 110 5 Total lease payments 1,975 271 7 Amount representing interest 262 59 4 Lease liabilities $ 1,713 $ 212 $ 3 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. Supplemental balance sheet information related to SCE's leases was as follows: December 31, December 31, (in millions) 2021 2020 Operating leases: Operating lease ROU assets 1 $ 1,925 $ 1,085 Current portion of operating lease liabilities 582 214 Operating lease liabilities 1,343 871 Total operating lease liabilities 1 $ 1,925 $ 1,085 Finance leases included in: Utility property, plant and equipment, gross $ 4 $ 4 Accumulated depreciation (1) — Utility property, plant and equipment, net 3 4 Other long-term liabilities 3 4 Total finance lease liabilities $ 3 $ 4 1 During the year ended December 31, 2021, three SCE PPA operating lease contracts commenced and three power contracts were amended resulting in a total of $1.1 billion additions in ROU assets and lease liabilities. The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense: Years ended December 31, (in millions) 2021 2020 2019 PPA leases: Operating lease cost $ 305 $ 111 $ 118 Finance lease cost 1 1 1 Variable lease cost 1 2,097 1,917 2,087 Short term lease cost 539 — — Total PPA lease cost 2,942 2,029 2,206 Other operating leases cost 47 47 46 Total lease cost $ 2,989 $ 2,076 $ 2,252 1 Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation. Other information related to leases was as follows: Years ended December 31, (in millions, except lease term and discount rate) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases PPA leases $ 305 $ 111 $ 118 Other leases 45 44 44 Financing cash flows from PPA finance leases 1 1 1 ROU assets obtained in exchange for lease obligations: PPA operating leases $ 1,084 $ 463 $ — Other operating leases 71 58 34 Weighted average remaining lease term (in years): Operating leases PPA leases 8.16 9.75 16.05 Other leases 11.14 12.13 12.73 PPA Finance leases 15.67 16.67 11.51 Weighted average discount rate: Operating leases PPA leases 2.43 % 3.12 % 4.46 % Other leases 3.34 % 3.63 % 3.88 % PPA Finance leases 11.29 % 11.29 % 8.76 % Leases as Lessor SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 10 to 65 years. During the years ended December 31, 2021, 2020 and 2019, SCE recognized lease income of $16 million, $17 million and $18 million, respectively, which is included in operating revenue on the consolidated statements of income. At December 31, 2021, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows: (in millions) 2022 $ 11 2023 10 2024 8 2025 7 2026 6 Thereafter 124 Total $ 166 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Equity | Note 14. Common Stock Issuances Edison International did not issue any shares during the twelve months ended December 31, 2021 through its "at-the-market" ("ATM") program established in May 2019. Under the ATM program, Edison International may sell shares of its common stock having an aggregate sales price of up to $1.5 billion. As of December 31, 2021, shares of common stock having an aggregate offering price of $1.3 billion remained available to be sold under the ATM program. Edison International has no obligation to sell the remaining available shares. Edison International continued to settle its ongoing common stock requirements of various internal programs through issuance of new common stock. During the twelve months ended December 31, 2021, 522,400 shares of common stock were purchased by employees through the 401(k) defined contribution savings plan for net cash receipts of $30 million, 629,092 shares of common stock were issued as stock compensation awards for net cash receipts of $25 million and 293,031 shares of new common stock were issued in lieu of distributing $17 million to shareholders opting to receive dividend payments in the form of additional common stock and 26,475 shares of common stock related to optional cash investments of $2 million . During the twelve months ended December 31, 2020, 1,644,500 shares of common stock were purchased by employees through the 401(k) defined contribution savings plan for net cash receipts of $99 million, 387,425 shares of common stock were issued as stock compensation awards for net cash receipts of $16 million, 280,707 shares of new common stock were issued in lieu of distributing $17 million to shareholders opting to receive dividend payments in the form of additional common stock and 35,999 shares of common stock related to optional cash investments of $2 million. Preferred Stock Issuances In 2021, Edison International issued 1,250,000 shares of 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A, and 750,000 shares of its 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B, each with a liquidation value of $1,000 per share. The dividends are payable on a semi-annual basis, commencing September 15, 2021 and March 15, 2022, respectively. The dividend rate will be reset every five years beginning on March 15, 2026 and March 15,2027, respectively, to equal the then-current five-year U.S. Treasury rate plus a spread of 4.698% and 3.901%, respectively. The net proceeds of $2.0 billion were used to repay commercial paper borrowings and for general corporate purposes, including making a total of $900 million equity contributions to SCE. Edison International may, at its option, redeem its preferred stock in whole or in part during certain periods of time prior to each of the dividend reset dates at a price equal to $1,000 per share plus any accumulated and unpaid dividends. Edison International may also, at its option, redeem the preferred stocks in whole but not in part at a price equal to $1,020 per share plus any accumulated and unpaid dividends within a certain period of time following any change in the criteria rating agencies use that would have adverse effects on the equity credit attributed by rating agencies to the preferred stocks. The preferred stocks rank senior to Edison International's common stock with respect to dividends rights and distribution rights upon liquidation. The preferred stocks are not subject to any mandatory sinking fund, retirement fund, purchase fund or other similar provisions. Holders of the shares of the preferred stocks do not have the right to require Edison International to repurchase or redeem shares of the preferred stocks. Preferred and Preference Stock of Utility SCE's authorized shares are: $100 cumulative preferred – 12 million shares, $25 cumulative preferred – 24 million shares and preference with no par value – 50 million shares. There are no dividends in arrears for the preferred or preference shares. During 2020, SCE redeemed $120 million of cumulative preferred stock consisting of all of the outstanding shares of the 4.32% Series, 4.08% Series, 4.24% Series and the 4.78% Series at a price of $28.75, $25.50, $25.80 and $25.80, respectively. SCE recorded a $9 million loss on the redemption of the preferred stock as an adjustment to net income available to common stockholders. No preferred shares were issued or redeemed in the year ended December 31, 2021. There is no sinking fund requirement for redemptions or repurchases of preferred shares. Shares of SCE's preference stock rank senior to SCE’s common stock with respect to dividend rights and distribution rights upon liquidation. Shares of SCE's preference stock are not convertible into shares of any other class or series of SCE's capital stock or any other security. SCE's outstanding preference shares are not subject to mandatory redemption and there is no sinking fund requirement for redemptions or repurchases of preference shares. Preference stocks are: Redemption Dividends Shares Price Declared December 31, (in millions, except shares and per share amounts) Outstanding per Share per Share 2021 2020 No par value: 6.25% Series E (cumulative) 350,000 $ 1,000.00 $ 62.500 $ 350 $ 350 5.10% Series G (cumulative) 88,004 2,500.00 127.500 220 220 5.75% Series H (cumulative) 110,004 2,500.00 143.750 275 275 5.375% Series J (cumulative) 130,004 2,500.00 134.375 325 325 5.45% Series K (cumulative) 120,004 2,500.00 136.250 300 300 5.00% Series L (cumulative) 190,004 2,500.00 125.000 475 475 SCE's preference stock 1,945 1,945 Less issuance costs (44) (44) Edison International's preference stock of utility $ 1,901 $ 1,901 Shares of Series E preference stock issued in 2012 may be redeemed at par, in whole or in part, on or after February 1, 2022. Distributions will accrue and be payable at a floating rate from and including February 1, 2022. Shares of Series G, H, J, K and L preference stock, issued in 2013, 2014, 2015, 2016 and 2017, respectively, may be redeemed at par, in whole, but not in part, at any time prior to March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, respectively, if certain changes in tax or investment company law or interpretation (or applicable rating agency equity credit criteria for Series L only) occur and certain other conditions are satisfied. On or after March 15, 2018, March 15, 2024, September 15, 2025, March 15, 2026 and June 26, 2022, SCE may redeem the Series G, H, J, K and L shares, respectively, at par, in whole or in part. For shares of Series H, J and K preference stock, distributions will accrue and be payable at a floating rate from and including March 15, 2024, September 15, 2025 and March 15, 2026, respectively. Shares of Series G, H, J, K and L preference stock were issued to SCE Trust II, SCE Trust III, SCE Trust IV, SCE Trust V and SCE Trust VI, respectively, special purpose entities formed to issue trust securities as discussed in Note 3. During 2020, SCE redeemed $180 million of the outstanding shares of the Series G preference stock. SCE recorded a $6 million loss on the redemption of the preference stock as an adjustment to net income available to common stockholders. No preference stocks were issued or redeemed in the year ended December 31, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 15. The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Beginning balance $ (69) $ (69) $ (41) $ (39) Pension and PBOP – net loss: Other comprehensive income (loss) before reclassifications 7 (8) 4 (7) Reclassified from accumulated other comprehensive loss 1 8 8 5 5 Change 15 — 9 (2) Ending Balance $ (54) $ (69) $ (32) $ (41) 1 . |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2021 | |
Other Income [Abstract] | |
Other Income | Note 16. Other income net of expenses is as follows: Years ended December 31, (in millions) 2021 2020 2019 SCE other income (expense): Equity allowance for funds used during construction $ 118 $ 121 $ 101 Increase in cash surrender value of life insurance policies and life insurance benefits 40 66 39 Interest income 3 20 37 Net periodic benefit income – non-service components 123 102 70 Civic, political and related activities and donations (39) (42) (46) Other (12) (12) (6) Total SCE other income 233 255 195 Other income (expense) of Edison International Parent and Other: Net periodic benefit costs – non-service components (2) (2) (3) Unrealized gains on equity securities 4 — — Other 2 (2) 1 Total Edison International other income $ 237 $ 251 $ 193 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows Information | Note 17. Supplemental cash flows information is: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Cash payments (receipts): Interest, net of amounts capitalized $ 887 $ 836 $ 705 $ 760 $ 713 $ 615 Income taxes, net (88) (34) (85) (88) (50) (164) Non-cash financing and investing activities: Dividends declared but not paid: Common stock 266 251 231 325 — 200 Preferred and preference stock of utility 11 11 12 11 11 12 SCE's accrued capital expenditures at December 31, 2021, 2020 and 2019 were $668 million, $730 million and $643 million, respectively. Accrued capital expenditures will be included as an investing activity in the consolidated statements of cash flow in the period paid. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 18. Edison International and SCE provide and receive various services to and from its subsidiaries and affiliates. Services provided to Edison International by SCE are priced at fully loaded cost (i.e., direct cost of good or service and allocation of overhead cost). Specified administrative services performed by Edison International or SCE employees, such as payroll and employee benefit programs, are shared among all affiliates of Edison International. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenue, operating expenses, total assets and number of employees). Edison International allocates various corporate administrative and general costs to SCE and other subsidiaries using established allocation factors. For the years ended December 31, 2021, 2020 and 2019, SCE purchased wildfire liability insurance for premiums of $185 million, $176 million and $260 million respectively, from Edison Insurance Services, Inc. ("EIS"), a wholly-owned subsidiary of Edison International. EIS fully reinsured the exposure for these policies through the commercial reinsurance market, with reinsurance limits and premiums equal to those of the insurance purchased by SCE, except for a contract for a premium of $25 million ($24 million, after 3% of nonadmitted insurance tax) executed in November 2021 under which EIS provided insurance protection to SCE. SCE recorded the premium as insurance expense and recorded equal revenue due to customer funding through regulatory cost recovery mechanisms, therefore there is no earnings impact on SCE's consolidated statement of income. EIS recorded the premium as insurance revenue. On the Edison International consolidated statement of income, the EIS insurance revenue eliminates with SCE's insurance expense, therefore the SCE customer revenues impact the earnings of Edison International. The related-party transactions included in SCE's consolidated balance sheets for wildfire-related insurance purchased from EIS and related expected insurance recoveries December 31, (in millions) 2021 2020 Insurance receivable due from affiliate $ — $ 268 Prepaid insurance 1 52 56 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. The expense for wildfire-related insurance premiums paid to EIS were $192 million, $189 million and $173 million for the years ended December 31, 2021, 2020 and 2019 respectively. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Parent | EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED BALANCE SHEETS December 31, (in millions) 2021 2020 Assets: Cash and cash equivalents $ 52 $ 3 Other current assets 403 43 Total current assets 455 46 Investments in subsidiaries 18,924 17,706 Deferred income taxes 697 675 Other long-term assets 68 71 Total assets $ 20,144 $ 18,498 Liabilities and equity: Short-term debt $ — $ 129 Current portion of long-term debt 700 — Other current liabilities 583 636 Total current liabilities 1,283 765 Long-term debt 2,438 3,133 Other long-term liabilities 535 552 Total equity 15,888 14,048 Total liabilities and equity $ 20,144 $ 18,498 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2021, 2020 and 2019 (in millions) 2021 2020 2019 Interest income from affiliates $ — $ 1 $ 5 Operating, interest and other expenses 176 189 150 Loss before equity in earnings of subsidiaries (176) (188) (145) Equity in earnings of subsidiaries 956 851 1,385 Income before income taxes 780 663 1,240 Income tax benefit (39) (76) (44) Income from continuing operations 819 739 1,284 Preferred stock dividend requirements of Edison International 60 — — Net income $ 759 $ 739 $ 1,284 CONDENSED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2021, 2020 and 2019 (in millions) 2021 2020 2019 Net income $ 819 $ 739 $ 1,284 Other comprehensive income (loss), net of tax 15 — (9) Comprehensive income $ 834 $ 739 $ 1,275 EDISON INTERNATIONAL SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF PARENT CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2021, 2020 and 2019 (in millions) 2021 2020 2019 Net cash provided by operating activities $ 817 $ 1,171 $ 181 Cash flows from financing activities: Long-term debt issued — 400 1,399 Long-term debt issuance costs — (3) (9) Long-term debt repaid — (400) — Short-term debt issued — 800 1,000 Short-term debt repaid — (800) (1,000) Common stock issued 32 912 2,391 Preferred stock issued 1,977 — — Payable due to affiliates (13) 135 5 Commercial paper (repayments) borrowing, net (130) 129 (1) Payments for stock-based compensation (3) (3) (27) Receipts for stock-based compensation 31 21 39 Common stock dividends paid (988) (928) (810) Preferred stock dividends paid (35) — — Net cash provided by financing activities 871 263 2,987 Capital contributions to affiliate (1,639) (1,446) (3,258) Dividends from affiliate — — 8 Net cash used in investing activities: (1,639) (1,446) (3,250) Net increase (decrease) in cash and cash equivalents 49 (12) (82) Cash and cash equivalents, beginning of year 3 15 97 Cash and cash equivalents, end of year $ 52 $ 3 $ 15 Note 1. Basis of Presentation The accompanying condensed financial statements of Edison International Parent should be read in conjunction with the consolidated financial statements and notes thereto of Edison International and subsidiaries ("Registrant") included in this Form 10-K. Edison International Parent's significant accounting policies are consistent with those of the Registrant, SCE and other wholly owned and controlled subsidiaries. Dividends Received Edison International Parent received cash dividends from SCE of $975 million, $1.3 billion and $400 million in 2021, 2020 and 2019, respectively. Dividend Restrictions CPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders. Effective January 1, 2020, the common equity component of SCE's CPUC authorized capital structure was increased from 48% to 52% on a weighted average basis over the January 1, 2020 to December 31, 2022 compliance period. Certain amounts, including the impact of SCE's contributions to the Wildfire Insurance Fund under AB 1054, are excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Southern California Wildfires and Mudslides." The CPUC authorized capital structure differs from the capital structure calculated based on GAAP due to certain exclusions allowed by CPUC. In May 2020, the CPUC issued a decision on SCE's application to the CPUC for waiver of compliance with its equity ratio requirement, that allows SCE to exclude from its equity ratio calculations (i) net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events and (ii) debt issued for the purpose of paying claims related to the 2017/2018 Wildfire/Mudslide Events up to an amount equal to the net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events. The temporary exclusion will lapse on May 7, 2022 and SCE anticipates filing another application for waiver of compliance with its equity ratio requirement in April 2022. Under the CPUC's rules, SCE will not be deemed to be in violation of the equity ratio requirement Note 2. Debt and Equity Financing Long-Term Debt At December 31, 2021 and 2020, Edison International Parent had $400 million of 2.40% senior notes and $300 million of 3.125% senior notes due in 2022, $400 million of 2.95% senior notes due in 2023, $500 million of 3.55% senior notes due in 2024, $400 million of 4.95% senior notes due in 2025, $600 million of 5.75% senior notes due in 2027 and $550 million of 4.125% senior notes due in 2028. Credit Agreements and Short-Term Debt The following table summarizes the status of the credit facility at December 31, 2021: (in millions) Commitment $ 1,500 Outstanding borrowings — Amount available $ 1,500 In April 2021, Edison International Parent amended its revolving credit facilities to extend the termination date to May 2025 and implement the transition from LIBOR to SOFR. The aggregate maximum principal amount under the Edison International Parent revolving credit facilities may be increased up to $2.0 billion, provided that additional lender commitments are obtained. The debt covenant in Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio of less than or equal to 0.70 to 1. At December 31, 2021, Edison International's consolidated debt to total capitalization ratio was 0.61 to 1. Equity Edison International did not issue any shares during the three and twelve months ended December 31, 2021 through its "at-the-market" ("ATM") program established in May 2019. Under the ATM program, Edison International may sell shares of its common stock having an aggregate sales price of up to $1.5 billion. As of December 31, 2021, shares of common stock having an aggregate offering price of $1.3 billion remained available to be sold under the ATM program. Edison International has no obligation to sell the remaining available shares. Edison International continued to settle its ongoing common stock requirements of various internal programs through issuance of new common stock. During the twelve months ended December 31, 2021, 522,400 shares of common stock were purchased by employees through the 401(k) defined contribution savings plan for net cash receipts of $30 million, 629,092 shares of common stock were issued as stock compensation awards for net cash receipts of $25 million and 293,031 shares of new common stock were issued in lieu of distributing $17 million to shareholders opting to receive dividend payments in the form of additional common stock . During the twelve months ended December 31, 2020, 1,644,500 shares of common stock were purchased by employees through the 401(k) defined contribution savings plan for net cash receipts of $99 million, 387,425 shares of common stock were issued as stock compensation awards for net cash receipts of $16 million, 280,707 shares of new common stock were issued in lieu of distributing $17 million to shareholders opting to receive dividend payments in the form of additional common stock and 35,999 shares of common stock related to optional cash investments of $2 million. Preferred Stock Issuance In 2021, Edison International issued 1,250,000 shares of 5.375% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series A, and 750,000 shares of its 5.00% Fixed-Rate Reset Cumulative Perpetual Preferred Stock, Series B, each with a liquidation value of $1,000 per share. The dividends are payable on a semi-annual basis, commencing September 15, 2021 and March 15, 2022, respectively. The dividend rate will be reset every five years beginning on March 15, 2026 and March 15, 2027, respectively, to equal the then-current five-year U.S. Treasury rate plus a spread of 4.698% and 3.901% , respectively The net proceeds of $2.0 billion were used to repay commercial paper borrowings and for general corporate purposes, including making a total of $900 million equity contribution to SCE. Note 3. Related-Party Transactions Edison International's Parent expense from services provided by SCE was $2 million in 2021, $2 million in 2020 and $2 million in 2019. Edison International Parent's interest expense from loans due to affiliates was $5 million in 2021, $4 million in 2020 and $5 million in 2019. Edison International Parent had current related-party receivables of $361 million and $43 million and current related-party payables of $211 million and $323 million at December 31, 2021 and 2020, respectively. Edison International Parent had long-term related-party receivables of $52 million and $68 million at December 31, 2021 and 2020, respectively, and long-term related-party payables of $227 million and $219 million at December 31, 2021 and 2020, respectively. Note 4. Contingencies For a discussion of material contingencies see "Notes to Consolidated Financial Statements—Note 8. Income Taxes" and "—Note 12. Commitments and Contingencies." |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | EDISON INTERNATIONAL SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions Balance at Charged to Charged to Balance at Beginning of Costs and Other End of (in millions) Period Expenses Accounts Deductions Period For the Year ended December 31, 2021 Allowance for uncollectible accounts Customers $ 175 $ 33 $ 91 $ 6 $ 293 All others 13 11 — 8 16 Total allowance for uncollectible amounts $ 188 $ 44 $ 91 b $ 14 a $ 309 Tax valuation allowance $ 35 $ 9 c $ — $ — $ 44 For the Year ended December 31, 2020 Allowance for uncollectible accounts Customers $ 35 $ 36 $ 120 $ 16 $ 175 All others 14 10 — 11 13 Total allowance for uncollectible amounts $ 49 $ 46 $ 120 b $ 27 a $ 188 Tax valuation allowance $ 35 $ — $ — $ — $ 35 For the Year ended December 31, 2019 Allowance for uncollectible accounts Customers $ 31 $ 22 $ — $ 18 $ 35 All others 20 10 — 16 14 Total allowance for uncollectible amounts $ 51 $ 32 $ — $ 34 a $ 49 Tax valuation allowance $ 36 $ — $ — $ 1 $ 35 a. Accounts written off, net. b. Amounts are deferred to regulatory assets. c. During 2021, Edison International recorded additional valuation allowance of $3 million for non-California state net operating loss carryforwards and $6 million for federal and California charitable contributions carryover from 2017. SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions Balance at Charged to Charged to Balance at Beginning of Costs and Other End of (in millions) Period Expenses Accounts Deductions Period For the Year ended December 31, 2021 Allowance for uncollectible accounts Customers $ 175 $ 33 $ 91 $ 6 $ 293 All others 13 11 — 8 16 Total allowance for uncollectible accounts $ 188 $ 44 $ 91 b $ 14 a $ 309 Tax valuation allowance $ — $ 6 c $ — $ — $ 6 For the Year ended December 31, 2020 Allowance for uncollectible accounts Customers $ 35 $ 36 $ 120 $ 16 $ 175 All others 14 10 — 11 13 Total allowance for uncollectible accounts $ 49 $ 46 $ 120 b $ 27 a $ 188 For the Year ended December 31, 2019 Allowance for uncollectible accounts Customers $ 31 $ 22 $ — $ 18 $ 35 All others 20 10 — 16 14 Total allowance for uncollectible accounts $ 51 $ 32 $ — $ 34 a $ 49 a. Accounts written off, net. b. Amounts are deferred to regulatory assets. c. Valuation allowance for SCE includes $6 million for federal and California charitable contribution carryover from 2017. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Organization and Basis of Presentation | Organization and Basis of Presentation Edison International is the ultimate parent holding company of Southern California Edison Company ("SCE") and Edison Energy, LLC ("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 an indirect wholly-owned subsidiary of Edison International and a holding company for Edison Energy, LLC ("Edison Energy") which is engaged in the competitive business of providing integrated decarbonization and energy solutions to commercial, institutional and industrial customers. Edison Energy'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, its wholly owned and controlled subsidiaries and a variable interest entity of which SCE is the primary beneficiary, SCE Recovery Funding LLC. All intercompany transactions have been eliminated from the consolidated financial statements. Edison International's and SCE's accounting policies conform to accounting principles generally accepted in the United States of America, including the accounting principles for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utility Commission ("CPUC") and the Federal Energy Regulatory Commission ("FERC"). SCE applies authoritative guidance for rate-regulated enterprises to the portion of its operations in which regulators set rates at levels intended to recover the estimated costs of providing service, plus a return on net investments in assets, or rate base. Regulators may also impose certain penalties or grant certain incentives. Due to timing and other differences in the collection of electric utility revenue, these principles require an incurred cost that would otherwise be charged to expense by a non-regulated entity to be capitalized as a regulatory asset if it is probable that the cost is recoverable through future rates; and conversely the principles require recording of a regulatory liability for amounts collected in rates to recover costs expected to be incurred in the future or amounts collected in excess of costs incurred and refundable to customers. In addition, SCE recognizes revenue and regulatory assets from alternative revenue programs, which enables the utility to adjust future rates in response to past activities or completed events, if certain criteria are met, even for programs that do not qualify for recognition of "traditional" regulatory assets and liabilities. SCE assesses, at the end of each reporting period, whether regulatory assets are probable of future recovery. See Note 11 for composition of regulatory assets and liabilities. |
Use of Estimates | The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Certain prior year amounts have been conformed to the current year's presentation. |
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. The cash equivalents were as follows: Edison International SCE December 31, (in millions) 2021 2020 2021 2020 Money market funds $ 329 $ 62 $ 230 $ 38 Cash is temporarily invested until required for check clearing. Checks issued, but not yet paid by the financial institution, are reclassified from cash to accounts payable at the end of each reporting period. The following table sets forth the cash, cash equivalents and restricted cash included in the consolidated statements of cash flows: December 31, December 31, (in millions) 2021 2020 Edison International: Cash and cash equivalents $ 390 $ 87 Short-term restricted cash 1 4 2 Total cash, cash equivalents and restricted cash $ 394 $ 89 SCE: Cash and cash equivalents $ 279 $ 55 Short-term restricted cash 1 1 1 Total cash, cash equivalents and restricted cash $ 280 $ 56 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts The allowance for uncollectible accounts is recorded based on SCE's estimate of expected credit losses and adjusted over the life of the receivables as needed. Since the customer base of SCE is concentrated in Southern California and exposes SCE to a homogeneous set of economic conditions, the allowance is measured on a collective basis on the historical amounts written-off, assessment of customer collectibility and current economic trends, including unemployment rates and any likelihood of recession for the region. At December 31, 2021, this included the estimated impacts of the COVID-19 pandemic. The following table sets forth the changes in allowance for uncollectible accounts for SCE: Year ended December 31, 2021 Year ended December 31, 2020 (in millions) Customers All others Total Customers All others Total Beginning balance $ 175 $ 13 $ 188 $ 35 $ 14 $ 49 Plus: current period provision for uncollectible accounts Included in operation and maintenance expenses in earning activities 1 33 11 44 36 9 45 Included in operation and maintenance expenses in cost-recovery activities 2 74 — 74 15 — 15 Deferred to regulatory memorandum accounts 17 — 17 105 — 105 Less: write-offs, net of recoveries 6 8 14 16 10 26 Ending balance $ 293 $ 16 $ 309 ³ $ 175 $ 13 $ 188 1 Earning activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. 2 Cost-recovery activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. This portion of costs from the allowance for uncollectible expenses is recovered through the residential uncollectibles balancing account. 3 In June 2021, CPUC issued a decision to allow residential and small business customers of the large investor-owned utilities with arrearages over 60 days old to be enrolled in 24-month payment plans. Accordingly, approximately $238 million of gross account receivables and $116 million of allowance for uncollectible accounts have been reclassified to "Long-term account receivables" on Edison International's and SCE's consolidated balance sheets as of December 31, 2021. |
Inventory | Inventory SCE's inventory is primarily composed of materials, supplies and spare parts, and generally stated at weighted average cost. |
Emission Allowances and Energy Credits | Emission Allowances and Energy Credits SCE is allocated greenhouse gas ("GHG") allowances annually which it is then required to sell into quarterly auctions. GHG proceeds from the auctions are recorded as a regulatory liability to be refunded to customers. SCE purchases GHG allowances in quarterly auctions or from counterparties to satisfy its GHG emission compliance obligations and recovers such costs of GHG allowances from customers. GHG allowances held for use are classified as "Other current assets" on the consolidated balance sheets and are stated, similar to an inventory method, at the lower of weighted average cost or market. SCE will evaluate GHG allowances for impairment upon a triggering event that would indicate SCE might not recover the full cost of an allowance. SCE had GHG allowances held for use of $47 million and $78 million at December 31, 2021 and 2020, respectively. GHG emission obligations were $34 million and $64 million at December 31, 2021 and 2020, respectively, and are classified as "Other current liabilities" on the consolidated balance sheets. SCE is allocated low carbon fuel standard ("LCFS") credits which it sells to market participants. Proceeds from the sales, net of selling fees and program administration expenses, are recorded in a balancing account to be refunded to eligible customers. SCE's net proceeds from the sale of these LCFS credits were $193 million and $176 million and are classified as "Regulatory liabilities" on the consolidated balance sheets at December 31, 2021 and 2020, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment SCE plant additions, including replacements and betterments, are capitalized. Direct material and labor and indirect costs such as construction overhead, administrative and general costs, pension and benefits, and property taxes are capitalized as part of plant additions. The CPUC authorizes a capitalization rate for each of the indirect costs which are allocated to each project based on either labor or total costs. Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows: Weighted Average Estimated Useful Lives Useful Lives Generation plant 10 years to 55 years 36 years Distribution plant 20 years to 67 years 50 years Transmission plant 45 years to 65 years 54 years General plant and other 5 years to 60 years 26 years Depreciation of utility property, plant and equipment is computed on a straight-line, remaining-life basis. SCE's depreciation expense was $2.0 billion, $1.8 billion and $1.7 billion for 2021, 2020 and 2019, respectively. Depreciation expense stated as a percent of average original cost of depreciable utility plant was, on a composite basis, 3.7%, 3.6% and 3.6% for 2021, 2020 and 2019, respectively. The original costs of retired property are charged to accumulated depreciation. See Note 2 for further information. Nuclear fuel for the Palo Verde Nuclear Generating Station ("Palo Verde") is recorded as utility plant (nuclear fuel in the fabrication and installation phase is recorded as construction in progress) in accordance with CPUC ratemaking procedures. Palo Verde nuclear fuel is amortized using the units of production method. Allowance for funds used during construction ("AFUDC") represents the estimated cost of debt and equity funds that finance utility-plant construction and is capitalized during certain plant construction. AFUDC is recovered in rates through depreciation expense over the useful life of the related asset. AFUDC equity represents a method to compensate SCE for the estimated cost of equity used to finance utility plant additions and is recorded as part of construction in progress. AFUDC equity was $118 million, $121 million and $101 million in 2021, 2020 and 2019, respectively, and is reflected in "Other income." AFUDC debt was $50 million, $53 million and $63 million in 2021, 2020 and 2019, respectively and is reflected as a reduction of "Interest expense." Major Maintenance Major maintenance costs for SCE's facilities and equipment are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Impairments of long-lived assets are evaluated based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. If the carrying amount of a long-lived asset exceeds expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized in the amount of the excess of fair value over the carrying amount. Fair value is determined via market, cost and income-based valuation techniques, as appropriate. Accounting principles for rate-regulated enterprises also require recognition of an impairment loss if it becomes probable that the regulated utility will abandon a plant investment, or if it becomes probable that the cost of a recently completed plant will be disallowed, either directly or indirectly, for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. As a result of adoption of 2021 GRC, SCE recorded $79 million ($47 million after-tax) related to disallowed historical capital expenditures of pole replacements the CPUC determined were performed prematurely in the third quarter of 2021. As of December 31, 2021, SCE has $186 million in assets recorded in property, plant and equipment in relation to restoration costs related to the 2017/2018 Wildfire/Mudslide Events which may not be recoverable. These assets would be impaired if the restoration costs are permanently disallowed by the CPUC in future cost recovery proceedings. For further details, see Note 12. |
Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054") | Initial and annual contributions to the wildfire insurance fund established pursuant to California Assembly Bill 1054 (the "Wildfire Insurance Fund" and "AB 1054") Edison International and SCE accounted for the contributions to the Wildfire Insurance Fund similarly to prepaid insurance. No period of coverage was provided in AB 1054, therefore expense is being allocated to periods ratably based on an estimated period of coverage. At December 31, 2021, Edison International and SCE have a $2.4 billion long-term asset and a $204 million current asset reflected as "Wildfire Insurance Fund contributions" in the consolidated balance sheets for the initial $2.4 billion contribution made during 2019 and the present value of annual contributions SCE committed to make to the Wildfire Insurance Fund, reduced by amortization. At December 31, 2021, a long-term liability of $620 million has been reflected in "Other deferred credits and other long-term liabilities" for the present value of unpaid contribution amounts. Contributions were discounted to the present value at the date SCE committed to participate in the Wildfire Insurance Fund using US treasury interest rates. The asset was amortized over a period of 15 years during 2021 and 10 years during 2020. All expenses related to the contributions are being reflected in "Wildfire Insurance Fund Expense" in the consolidated statements of income. Changes in the estimated period of coverage provided by the Wildfire Insurance Fund could lead to material changes in future expense recognition. In estimating the period of coverage, Edison International and SCE used Monte Carlo simulations based on historical data from wildfires caused by electrical utility equipment to estimate expected losses, using seven years (2014 – 2020) of available historical data in 2021 and five years (2014 – 2018) of available historical data in 2020. The details of the operation of the Wildfire Insurance Fund and estimates related to claims by SCE, Pacific Gas & Electric Company ("PG&E") and San Diego Gas & Electric ("SDG&E") against the fund have been applied to the expected loss simulations to estimate the period of coverage of the fund. The most sensitive inputs to the estimated period of coverage are the expected frequency of wildfire events caused by investor-owned utility electrical equipment and the estimated costs associated with those forecasted events. Edison International and SCE evaluate all inputs annually, or upon claims being made from the fund for catastrophic wildfires, and the expected life of the insurance fund will be adjusted as required. Based on information available in the first quarter of 2022 regarding catastrophic wildfires during 2021, SCE reassessed its estimate of the life of the Wildfire Insurance Fund. Using eight years of historical data (2014 – 2021) of wildfires caused by electrical utility equipment to create Monte Carlo simulations of expected loss, the expected life of the Wildfire Insurance Fund remained 15 years from the date SCE committed to participate in the Wildfire Insurance Fund. Edison International and SCE will assess the Wildfire Insurance Fund contribution assets for impairment in the event that a participating utility's electrical equipment is found to be the substantial cause of a catastrophic wildfire, based on the ability of SCE to benefit from the coverage provided by the Wildfire Insurance Fund in an amount equal to the recorded assets. |
Nuclear Decommissioning and Asset Retirement Obligations | Nuclear Decommissioning and Asset Retirement Obligations The fair value of a liability for an asset retirement obligation ("ARO") is recorded in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, SCE capitalizes the cost by increasing the carrying amount of the related long-lived asset. For each subsequent period, the liability is increased for accretion expense and the capitalized cost is depreciated over the useful life of the related asset. SCE has not recorded an ARO for assets that are expected to operate indefinitely or where SCE cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain retirement activities, including certain hydroelectric facilities. The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2021 2020 Beginning balance $ 2,930 $ 3,029 Accretion 1 157 160 Revisions (77) (36) Liabilities settled (238) (223) Ending balance $ 2,772 $ 2,930 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. AROs related to decommissioning of SCE's nuclear power facilities are based on site-specific studies conducted as part of each Nuclear Decommissioning Cost Triennial Proceeding ("NDCTP") conducted before the CPUC. Revisions of an ARO are established for updated site-specific decommissioning cost estimates. The ARO for decommissioning SCE's San Onofre Nuclear Generating Station ("San Onofre") and Palo Verde nuclear power facilities is $2.4 billion as of December 31, 2021. The liability to decommission SCE's nuclear power facilities is based on a 2020 decommissioning study to be filed as part of the 2021 NDCTP for San Onofre Unit 1, 2 and 3 and a 2019 decommissioning study for Palo Verde, with revisions to the cost estimate in 2020. As a result of the 2020 decommissioning study update to San Onofre Units 1, 2, and 3, SCE recorded a decrease of $131 million to its ARO liability in 2021, primarily due to the timing of spending compared to the 2018 decommissioning cost estimates as well as changes in escalation and discount rates. SCE records an ARO regulatory liability as a result of timing differences between the recognition of costs and the recovery of costs through the ratemaking process. For further information, see Note 11. Decommissioning of San Onofre Unit 1 began in 1999 and the transfer of spent nuclear fuel from Unit 1 to dry cask storage in the Independent Spent Fuel Storage Installation ("ISFSI") was completed in 2005. Major decommissioning work for Unit 1 has been completed except for certain underground work. Decommissioning of San Onofre Units 2 and 3 began in June 2013 and the transfer of spent nuclear fuel from San Onofre Units 2 and 3 to dry cask storage in the two ISFSIs was completed in August 2020. In October 2019, the California Coastal Commission ("CCC") approved SCE's application for the Coastal Development Permit, the principal discretionary permit required to start major decommissioning activities at San Onofre Units 2 and 3. In August 2020, SCE commenced, and is currently conducting, major decommissioning activities in accordance with the terms of the permit. The CCC's issuance of the permit was challenged in December 2019 and an October 2021 Los Angeles Superior Court ruling upholding the validity of the permit has been appealed. Decommissioning costs, which are recovered through customer rates over the term of each nuclear facility's operating license, are recorded as a component of depreciation expense, with a corresponding credit to the ARO regulatory liability. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. Amortization of the ARO asset (included within the unamortized nuclear investment) and accretion of the ARO liability are deferred as decreases to the ARO regulatory liability account, resulting in no impact on earnings. SCE has collected in rates amounts for the future decommissioning of its nuclear assets and has placed those amounts in independent trusts. Amounts collected in rates in excess of the ARO liability are classified as regulatory liabilities. Changes in the estimated costs, timing of decommissioning or the assumptions underlying these estimates could cause material revisions to the estimated total cost to decommission. SCE currently estimates that it will spend approximately $6.3 billion through 2080 to decommission its nuclear facilities. This estimate is based on SCE's decommissioning cost methodology used for ratemaking purposes, escalated at rates ranging from 1.7% to 7.5% (depending on the cost element) annually. These costs are expected to be funded from independent decommissioning trusts. SCE estimates annual after-tax earnings on the decommissioning funds of 1.3% to 4.8% dependent on asset class. If the assumed return on trust assets is not earned or costs escalate at higher rates, SCE expects that additional funds needed for decommissioning will be recoverable through future rates, subject to a reasonableness review. See Note 10 for further information. Due to regulatory recovery of SCE's nuclear decommissioning expense, prudently incurred costs for nuclear decommissioning activities do not affect SCE's earnings. SCE's nuclear decommissioning costs are subject to CPUC review through the triennial regulatory proceedings. SCE's nuclear decommissioning trust investments primarily consist of fixed income investments that are classified as available-for-sale and equity investments. Due to regulatory mechanisms, investment earnings and realized gains and losses have no impact on earnings. Unrealized gains and losses on decommissioning trust funds, including impairment, increase or decrease the trust assets and the related regulatory asset or liability and have no impact on electric utility revenue or decommissioning expense. SCE reviews each fixed income security for impairment on the last day of each month. If the fair value on the last day of the month is less than the amortized cost for that security, SCE impairs the disclosed amortized cost. If the fair value is greater or less than the carrying value for that security at the time of sale, SCE recognizes a related realized gain or loss, respectively. |
Deferred Financing Costs | Deferred Financing Costs Debt premium, discount and issuance expenses incurred in connection with obtaining financing are deferred and amortized on a straight-line basis. Under CPUC ratemaking procedures, SCE's debt reacquisition expenses are amortized over the remaining life of the reacquired debt or, if refinanced, the life of the new debt. SCE had unamortized losses on reacquired debt of $121 million and $133 million at December 31, 2021 and 2020, respectively, reflected as long-term "Regulatory assets" in the consolidated balance sheets. In addition, Edison International and SCE had debt issuance costs related to issuances of long-term debt of $153 million and $143 million at December 31, 2021, respectively, and $131 million and $117 million at December 31, 2020, respectively, reflected as a reduction of "Long-term debt" on the consolidated balance sheets. Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Amortization of deferred financing costs charged to interest expense $ 34 $ 32 $ 30 $ 29 $ 27 $ 26 |
Revenue Recognition | Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Amortization of deferred financing costs charged to interest expense $ 34 $ 32 $ 30 $ 29 $ 27 $ 26 |
Power Purchase Agreements | Power Purchase Agreements SCE enters into power purchase agreements ("PPAs") in the normal course of business. A power purchase agreement may be considered a variable interest in a variable interest entity ("VIE"). If SCE is the primary beneficiary in the VIE, SCE should consolidate the VIE. None of SCE's PPAs resulted in consolidation of a VIE at December 31, 2021 and 2020. See Note 3 for further discussion of PPAs that are considered variable interests. A PPA may also contain a lease for accounting purposes. See "Leases" below and Note 12 and Note 13 for further discussion of SCE's PPAs, including agreements that are classified as operating and finance leases for accounting purposes. A PPA that does not contain a lease may be classified as a derivative which is recorded at fair value on the consolidated balance sheets. These PPAs may be eligible for an election to designate as a normal purchase and sale, which is accounted for on an accrual basis as an executory contract. See Note 6 for further information on derivative instruments. PPAs that do not meet the above classifications are accounted for on an accrual basis. |
Derivatives Instruments | Derivative Instruments SCE records derivative instruments on its consolidated balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases or sales. The normal purchases and sales exception requires, among other things, physical delivery in quantities expected to be used or sold over a reasonable period in the normal course of business. Realized gains and losses from SCE's derivative instruments are expected to be recovered from or refunded to customers through regulatory mechanisms and, therefore, SCE's fair value changes have no impact on purchased power expense or earnings. SCE does not use hedge accounting for derivative transactions due to regulatory accounting treatment. Where SCE's derivative instruments are subject to a master netting agreement and certain criteria are met, SCE presents its derivative assets and liabilities on a net basis on its consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded as part of cash flows from operating activities on the consolidated statements of cash flows. See Note 6 for further information on derivative instruments. |
Leases | Leases 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. An entity controls the use when it has a right to obtain substantially all of the benefits from the use of the identified asset and has the right to direct the use of the asset. SCE determines if an arrangement is a lease at contract inception. For all classes of underlying assets, except battery storage assets which were first contracted in 2020 and for which each component will be separately accounted for, SCE includes both the lease and non-lease components as a single component and accounts for it as a lease. Lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. SCE calculates and uses the rate implicit in the lease if the information is readily available or if not available, SCE uses its incremental borrowing rate in determining the present value of lease payments. Incremental borrowing rates are comprised of underlying risk-free rates and secured credit spreads relative to first mortgage bonds with like tenors of lease term durations. Lease right-of-use ("ROU") assets are based on the liability, subject to adjustments, such as lease incentives. The ROU assets also include any lease payments made at or before the commencement date. SCE excludes variable lease payments in measuring lease assets and lease liabilities, other than those that depend on an index or a rate or are in substance fixed payments. SCE's lease terms include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases are included in "Operating lease right-of-use assets," "Current portion of operating lease liabilities" and "Operating lease liabilities" on the consolidated balance sheets. Finance leases are included in "Utility property, plant and equipment," "Other current liabilities" and "Other deferred credits and other long-term liabilities" on the consolidated balance sheets. SCE elected to exclude from the balance sheet short-term lease contracts of one year or less. SCE enters into power purchase agreements that may contain leases. This occurs when a power purchase agreement designates a specific power plant, SCE obtains substantially all of the economic benefits from the use of the plant and has the right to direct the use of the plant. SCE also enters into a number of agreements to lease property and equipment in the normal course of business, primarily related to vehicles, office space and other equipment. See Note 13 for further discussion of SCE's contracts that are classified as operating and finance leases. Edison International Parent and Other's leases primarily relate to Edison Energy Group. The leases for Edison International Parent and Other are immaterial to Edison International. |
Stock-Based Compensation | Stock-Based Compensation Stock options, performance shares, deferred stock units and restricted stock units have been granted under Edison International's long-term incentive compensation programs. For equity awards that are settled in common stock, Edison International either issues new common stock, or uses a third party to purchase shares from the market and deliver such shares for the settlement of the awards. The performance shares granted during 2018 that were earned have been settled solely in cash. The performance shares granted in 2019, 2020 and 2021 that are earned will be settled in common stock. Stock options, deferred stock units and restricted stock units are settled in common stock. However, for awards that are otherwise settled entirely in common stock, Edison International substitutes cash awards to the extent necessary to satisfy applicable tax withholding obligations or government levies. Stock-based compensation expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period based on estimated fair values. For equity awards paid in common stock, fair value is determined at the grant date. For equity awards that have market conditions defined in the grants, expense is recognized based on grant date fair value if the requisite service period is fulfilled. However, with respect to the portion of the performance shares payable in common stock that are subject to financial performance conditions defined in the grants, the number of performance shares expected to be earned is subject to revision and updated at each reporting period, with a related adjustment to compensation expense. Awards paid in cash are classified as share-based liability awards and fair value is remeasured at each reporting date with the related compensation cost adjusted. For awards granted to retirement-eligible participants, stock compensation expense is recognized on a prorated basis over the initial year. For awards granted to participants who become eligible for retirement during the requisite service period, stock compensation expense is recognized over the period between the date of grant and the date the participant first becomes eligible for retirement. Edison International and SCE estimate the number of awards that are expected to vest rather than account for forfeitures when they occur. Share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. See Note 9 for further information. Employee Stock Purchase Plan In April 2021, the Edison International Employee Stock Purchase Plan ("ESPP") was approved by shareholders and was effective beginning July 1, 2021. The maximum aggregate numbers of shares of Edison International's common stock that may be issued under the ESPP is 3,000,000 shares. The ESPP is administered by the SCE Benefits Committee and allows eligible employees to purchase shares of common stock. Eligible employees may authorize payroll deductions of between 1% and 10% of their compensation, up to a maximum of $25,000, to purchase shares of common stock at 97% of the market price of the common stock on the date of purchase, which is the last day of each six months offering period. The ESPP is considered noncompensatory and stock issuances under the ESPP are recorded directly in equity. |
SCE Dividends | SCE Dividends CPUC holding company rules require that SCE's dividend policy be established by SCE's Board of Directors on the same basis as if SCE were a stand-alone utility company, and that the capital requirements of SCE, as deemed to be necessary to meet SCE's electricity service obligations, shall receive first priority from the Boards of Directors of both Edison International and SCE. In addition, the CPUC regulates SCE's capital structure which limits the dividends it may pay to its shareholders. Effective January 1, 2020, the common equity component of SCE's CPUC authorized capital structure was increased from 48% to 52% on a weighted average basis over the January 1, 2020 to December 31, 2022 compliance period. Certain amounts, including the impact of SCE's contributions to the Wildfire Insurance Fund under AB 1054, are excluded from the measurement of SCE's CPUC-jurisdictional authorized capital structure. For further information, see Note 12. The CPUC authorized capital structure differs from the capital structure calculated based on GAAP due to certain exclusions allowed by CPUC. In May 2020, the CPUC issued a decision on SCE's application to the CPUC for waiver of compliance with its equity ratio requirement, that allows SCE to exclude from its equity ratio calculations (i) net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events and (ii) debt issued for the purpose of paying claims related to the 2017/2018 Wildfire/Mudslide Events up to an amount equal to the net charges accrued in connection with the 2017/2018 Wildfire/Mudslide Events. The temporary exclusion will lapse on May 7, 2022 and SCE anticipates filing another application for waiver of compliance with its equity ratio requirement in April 2022. Under the CPUC's rules, SCE will not be deemed to be in violation of the equity ratio requirement SCE monitors its compliance with the CPUC's equity ratio requirement based on the weighted average of the common equity component of SCE's CPUC authorized capital structure over the Capital Structure Compliance Period using its actual capital structure from the beginning of the Capital Structure Compliance Period through the reporting date together with forecasted performance and expected financing activities for the remainder of the Capital Structure Compliance Period. SCE expects to be compliant with its CPUC authorized capital structure at December 31, 2022. SCE's ability to declare and pay common dividends may be restricted under the terms of its outstanding series of preference stock. For further information see As a California corporation, SCE's ability to pay dividends is also governed by the California General Corporation Law. California law requires that for a dividend to be declared: (a) retained earnings must equal or exceed the proposed dividend, or (b) immediately after the dividend is made, the value of the corporation's assets must exceed the value of its liabilities plus amounts required to be paid, if any, in order to liquidate stock senior to the shares receiving the dividend. Additionally, a California corporation may not declare a dividend if it is, or as a result of the dividend would be, likely to be unable to meet its liabilities as they mature. Prior to declaring dividends, SCE's Board of Directors evaluates available information, including when applicable, information pertaining to the 2017/2018 Wildfire/Mudslide Events, to ensure that the California law requirements for the declarations are met. On February 24, 2022, SCE declared a dividend to Edison International of $325 million. The timing and amount of future dividends are also dependent on a number of other factors including SCE's requirements to fund other obligations and capital expenditures, its ability to access the capital markets, and generate operating cash flows and earnings. If SCE incurs significant costs related to catastrophic wildfires, including the 2017/2018 Wildfire/Mudslide Events, and is unable to recover such costs through insurance, the Wildfire Insurance Fund (for fires after July 12, 2019), or from customers or is unable to access capital markets on reasonable terms, SCE may be limited in its ability to pay future dividends to Edison International and its preference shareholders. |
Earnings Per Share | Earnings Per Share Edison International computes earnings per common share ("EPS") using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Edison International's participating securities are stock-based compensation awards, payable in common shares, which earn dividend equivalents on an equal basis with common shares once the awards are vested. See Note 9 and Note 14 for further information. EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31, (in millions, except per-share amounts) 2021 2020 2019 Basic earnings per share: Net income attributable to common shareholders $ 759 $ 739 $ 1,284 Net income available to common shareholders $ 759 $ 739 $ 1,284 Weighted average common shares outstanding 380 373 340 Basic earnings per share $ 2.00 $ 1.98 $ 3.78 Diluted earnings per share: Net income attributable to common shareholders $ 759 $ 739 $ 1,284 Net income available to common shareholders $ 759 $ 739 $ 1,284 Income impact of assumed conversions 1 — — Net income available to common shareholders and assumed conversions $ 760 $ 739 $ 1,284 Weighted average common shares outstanding 380 373 340 Incremental shares from assumed conversions — 1 1 Adjusted weighted average shares – diluted 380 374 341 Diluted earnings per share $ 2.00 $ 1.98 $ 3.77 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 10,239,501, 9,066,753 and 4,511,802 shares of common stock for the years ended December 31, 2021, 2020 and 2019, respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been antidilutive. |
Income Taxes | Income Taxes Edison International and SCE estimate their income taxes for each jurisdiction in which they operate. This involves estimating current period tax expense along with assessing temporary differences resulting from differing treatment of items (such as depreciation) for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheets. Income tax expense includes the current tax liability from operations and the change in deferred income taxes during the year. Interest income, interest expense and penalties associated with income taxes are generally reflected in "Income tax expense" on the consolidated statements of income. Edison International's eligible subsidiaries are included in Edison International's consolidated federal income tax and combined state tax returns. Edison International has tax-allocation and payment agreements with certain of its subsidiaries. Pursuant to an income tax-allocation agreement approved by the CPUC, SCE's tax liability is computed as if it filed its federal and state income tax returns on a separate return basis. |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Adopted In August 2020, the FASB issued an accounting standards update to simplify the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update affect entities that issue convertible instruments indexed to or potentially settled in an entity's own equity. This guidance also simplifies an entity's application of the derivatives scope exception for contracts in its own equity and amends certain aspects of the EPS guidance. Edison International and SCE have adopted this standard on January 1, 2021 using modified retrospective adoption approach. The adoption of this standard did not have a material impact on Edison International's and SCE's financial position or results of operations. Accounting Guidance Not Yet Adopted In November 2021, the FASB issued an accounting standards update to require business entities that account for transactions with a government by analogizing to a grant or contribution accounting model to make certain annual disclosures. The guidance is effective January 1, 2022 with early adoption permitted. Edison International and SCE do not expect the adoption of this standard to materially affect the annual disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Cash Equivalents | Edison International SCE December 31, (in millions) 2021 2020 2021 2020 Money market funds $ 329 $ 62 $ 230 $ 38 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. |
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: December 31, December 31, (in millions) 2021 2020 Edison International: Cash and cash equivalents $ 390 $ 87 Short-term restricted cash 1 4 2 Total cash, cash equivalents and restricted cash $ 394 $ 89 SCE: Cash and cash equivalents $ 279 $ 55 Short-term restricted cash 1 1 1 Total cash, cash equivalents and restricted cash $ 280 $ 56 1 Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets. |
Changes in Allowance for Uncollectible Accounts | The following table sets forth the changes in allowance for uncollectible accounts for SCE: Year ended December 31, 2021 Year ended December 31, 2020 (in millions) Customers All others Total Customers All others Total Beginning balance $ 175 $ 13 $ 188 $ 35 $ 14 $ 49 Plus: current period provision for uncollectible accounts Included in operation and maintenance expenses in earning activities 1 33 11 44 36 9 45 Included in operation and maintenance expenses in cost-recovery activities 2 74 — 74 15 — 15 Deferred to regulatory memorandum accounts 17 — 17 105 — 105 Less: write-offs, net of recoveries 6 8 14 16 10 26 Ending balance $ 293 $ 16 $ 309 ³ $ 175 $ 13 $ 188 1 Earning activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. 2 Cost-recovery activities is one of SCE's disaggregated revenue sources. See Note 7 for further details. This portion of costs from the allowance for uncollectible expenses is recovered through the residential uncollectibles balancing account. 3 In June 2021, CPUC issued a decision to allow residential and small business customers of the large investor-owned utilities with arrearages over 60 days old to be enrolled in 24-month payment plans. Accordingly, approximately $238 million of gross account receivables and $116 million of allowance for uncollectible accounts have been reclassified to "Long-term account receivables" on Edison International's and SCE's consolidated balance sheets as of December 31, 2021. |
Property, plant and equipment useful lives | Estimated useful lives authorized by the CPUC in the 2021 General Rate Case ("GRC") and weighted average useful lives of SCE's property, plant and equipment, are as follows: Weighted Average Estimated Useful Lives Useful Lives Generation plant 10 years to 55 years 36 years Distribution plant 20 years to 67 years 50 years Transmission plant 45 years to 65 years 54 years General plant and other 5 years to 60 years 26 years |
Reconciliation of the Changes in ARO Liability | The following table summarizes the changes in SCE's ARO liability: December 31, (in millions) 2021 2020 Beginning balance $ 2,930 $ 3,029 Accretion 1 157 160 Revisions (77) (36) Liabilities settled (238) (223) Ending balance $ 2,772 $ 2,930 1 An ARO represents the present value of a future obligation. Accretion is an increase in the liability to account for the time value of money resulting from discounting. |
Amortization of Deferred Financing Costs | Amortization of deferred financing costs charged to interest expense is as follows: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Amortization of deferred financing costs charged to interest expense $ 34 $ 32 $ 30 $ 29 $ 27 $ 26 |
EPS Attributable to Edison International Common Shareholders | EPS attributable to Edison International common shareholders was computed as follows: Years ended December 31, (in millions, except per-share amounts) 2021 2020 2019 Basic earnings per share: Net income attributable to common shareholders $ 759 $ 739 $ 1,284 Net income available to common shareholders $ 759 $ 739 $ 1,284 Weighted average common shares outstanding 380 373 340 Basic earnings per share $ 2.00 $ 1.98 $ 3.78 Diluted earnings per share: Net income attributable to common shareholders $ 759 $ 739 $ 1,284 Net income available to common shareholders $ 759 $ 739 $ 1,284 Income impact of assumed conversions 1 — — Net income available to common shareholders and assumed conversions $ 760 $ 739 $ 1,284 Weighted average common shares outstanding 380 373 340 Incremental shares from assumed conversions — 1 1 Adjusted weighted average shares – diluted 380 374 341 Diluted earnings per share $ 2.00 $ 1.98 $ 3.77 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Schedule of Property, Plant, and Equipment | SCE's property, plant and equipment included in the consolidated balance sheets is composed of the following: December 31, (in millions) 2021 2020 Distribution $ 30,821 $ 28,663 Transmission 17,016 15,669 Generation 3,769 3,709 General plant and other 6,108 5,129 Accumulated depreciation (11,407) (10,681) 46,307 42,489 Construction work in progress 4,067 5,033 Nuclear fuel, at amortized cost 123 131 Total utility property, plant and equipment $ 50,497 $ 47,653 |
Schedule of Jointly Owned Utility Projects | The following is SCE's investment in each asset as of December 31, 2021: Construction Plant in Work in Accumulated Nuclear Fuel Net Book Ownership (in millions) Service Progress Depreciation (at amortized cost) Value Interest Transmission systems: Eldorado $ 336 $ 94 $ 49 $ — $ 381 86 % Pacific Intertie 351 1 75 — 277 50 % Generating station: Palo Verde (nuclear) 2,146 53 1,629 123 693 16 % Total $ 2,833 $ 148 $ 1,753 $ 123 $ 1,351 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities | |
Summary VIE balance sheet impact | (in millions) December 31, 2021 Other current assets $ 19 Regulatory assets: Non-current 325 Regulatory liabilities: Current (14) Current portion of long-term debt (14) Other current liabilities (1) Long-term debt 1 (314) 1 The bondholders have no recourse to SCE. Balance is net of unamortized debt issuance costs. |
Summary of the Trusts' Income Statements | The following table provides a summary of the trusts' income statements: Year ended December 31, (in millions) Trust II Trust III Trust IV Trust V Trust VI 2021 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 2020 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 2019 Dividend income $ 20 $ 16 $ 17 $ 16 $ 24 Dividend distributions 20 16 17 16 24 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value by Level within the Fair Value Hierarchy | December 31, 2021 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 26 $ 49 $ (31) $ 44 Money market funds and other 230 23 — — 253 Nuclear decommissioning trusts: Stocks 2 1,972 — — — 1,972 Fixed Income 3 1,083 1,607 — — 2,690 Short-term investments, primarily cash equivalents 102 125 — — 227 Subtotal of nuclear decommissioning trusts 4 3,157 1,732 — — 4,889 Total assets 3,387 1,781 49 (31) 5,186 Liabilities at fair value Derivative contracts — 42 5 (47) — Total liabilities — 42 5 (47) — Net assets $ 3,387 $ 1,739 $ 44 $ 16 $ 5,186 December 31, 2020 Netting and (in millions) Level 1 Level 2 Level 3 Collateral 1 Total Assets at fair value Derivative contracts $ — $ 6 $ 120 $ (18) $ 108 Money market funds and other 39 23 — — 62 Nuclear decommissioning trusts: Stocks 2 1,908 — — — 1,908 Fixed Income 3 519 2,113 — — 2,632 Short-term investments, primarily cash equivalents 447 52 — — 499 Subtotal of nuclear decommissioning trusts 4 2,874 2,165 — — 5,039 Total assets 2,913 2,194 120 (18) 5,209 Liabilities at fair value Derivative contracts — 10 12 (22) — Total liabilities — 10 12 (22) — Net assets $ 2,913 $ 2,184 $ 108 $ 4 $ 5,209 1 Represents the netting of assets and liabilities under master netting agreements and cash collateral. 2 Approximately 75% and 71% of SCE's equity investments were located in the United States at December 31, 2021 and 2020, respectively. 3 Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of $30 million and $29 million at December 31, 2021 and 2020, respectively. 4 Excludes net payables of $19 million and $206 million at December 31, 2021 and 2020, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases. |
Summary of level 3 fair value changes | The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities: Year ended December 31, (in millions) 2021 2020 Fair value of net assets at beginning of period $ 108 $ 78 Purchases — 8 Sales (2) (5) Settlements (63) (117) Total realized/unrealized losses 1,2 1 144 Fair value of net assets at end of period $ 44 $ 108 1 2 |
Valuation techniques and significant inputs | 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 Significant Weighted (in millions) Valuation Unobservable Range Average Assets Liabilities Technique Input (per MWh) (per MWh) Congestion revenue rights December 31, 2021 $ 49 $ 5 Auction prices CAISO CRR auction prices $(18.87) - $43.03 $ 1.46 December 31, 2020 120 12 Auction prices CAISO CRR auction prices (9.67) - 300.47 2.75 |
Long-term debt fair 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: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value 1 Value 2 Value 1 Value 2 Edison International $ 25,247 $ 27,718 $ 20,337 $ 23,824 SCE 22,110 24,375 17,204 20,365 1 2 . |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt and Credit Agreements | |
Long-term Debt | December 31, (in millions) 2021 2020 Edison International Parent and Other: Debentures and notes: 2022 – 2028 (2.40% to 5.75%) $ 3,150 $ 3,150 Current portion of long-term debt (700) — Unamortized debt discount/premium and issuance costs, net (13) (17) Total Edison International Parent and Other 2,437 3,133 SCE: First and refunding mortgage bonds: 2022 – 2051 (0.70% to 6.05%) 20,314 16,843 Pollution-control bonds: 2023 – 2035 (1.45% to 2.63%) 752 135 Debentures and notes: 2029 – 2053 (5.06% to 6.65%) 306 306 Senior secured recovery bonds 1 2033 – 2045 (0.86% to 2.51%) 333 — Other long-term debt 2 518 324 Current portion of long-term debt (377) (1,029) Unamortized debt discount/premium and issuance costs, net (113) (80) Total SCE 21,733 16,499 Total Edison International $ 24,170 $ 19,632 1 The senior secured recovery bonds are payable only from and secured by the Recovery Property at SCE Recovery Funding LLC, and do not constitute a debt or other legal obligation of, or interest in, SCE or any of its affiliates, except for SCE Recovery Funding LLC. For further details, see Note 3. 2 Amounts represent short-term obligations refinanced on a long-term basis subsequent to the balance sheet dates. For further details, see "Debt Financing Subsequent to December 31, 2021." |
Long-term Debt Maturities | Edison International and SCE long-term debt maturities over the next five years are as follows: Edison (in millions) International SCE 2022 $ 1,077 $ 377 2023 2,598 2,198 2024 2,063 1,563 2025 1,314 914 2026 364 364 |
Summary for Status of Credit Facilities | (in millions, except for rates) Execution Termination Secured Overnight Financing Rate ("SOFR") Outstanding Outstanding Amount date date plus (bps) Use of proceeds Commitment borrowings letters of credit available Edison International Parent June 2019 May 2025 128 Support commercial paper borrowings and general corporate purposes 1, 3 $ 1,500 $ — $ — $ 1,500 Total Edison International Parent: $ 1,500 $ — $ — $ 1,500 SCE June 2019 May 2025 108 Support commercial paper borrowings and general corporate purposes 2, 3 $ 3,350 $ 601 $ 195 $ 2,554 Total SCE: $ 3,350 $ 601 $ 195 $ 2,554 Total Edison International: $ 4,850 $ 601 $ 195 $ 4,054 1 At December 31, 2021 Edison International Parent did no t have any outstanding commercial paper. At December 31, 2020 Edison International Parent had $130 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.42% . 2 At December 31, 2021 and December 31, 2020, SCE had $601 million and $725 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.45% and 0.43% , respectively. 3 The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments | |
Schedule of derivatives financial position | December 31, 2021 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Long-Term 2 Subtotal Short-Term Long-Term Subtotal Net Assets Commodity derivative contracts Gross amounts recognized $ 70 $ 6 $ 76 $ 46 $ 2 $ 48 $ 28 Gross amounts offset in the consolidated balance sheets (30) (2) (32) (30) (2) (32) — Cash collateral posted 3 — — — (16) — (16) 16 Net amounts presented in the consolidated balance sheets $ 40 $ 4 $ 44 $ — $ — $ — $ 44 December 31, 2020 Derivative Assets Derivative Liabilities (in millions) Short-Term 1 Long-Term 2 Subtotal Short-Term Long-Term Subtotal Net Assets Commodity derivative contracts Gross amounts recognized $ 103 $ 23 $ 126 $ 16 $ 6 $ 22 $ 104 Gross amounts offset in the consolidated balance sheets (12) (6) (18) (12) (6) (18) — Cash collateral posted 3 — — — (4) — (4) 4 Net amounts presented in the consolidated balance sheets $ 91 $ 17 $ 108 $ — $ — $ — $ 108 1 Included in "Other current assets" on Edison International's and SCE's consolidated balance sheets. 2 Included in "Other long-term assets" on Edison International's and SCE's consolidated balance sheets. 3 At December 31, 2021, SCE posted $65 million of cash, of which $16 million was offset against derivative liabilities and $49 million was reflected in "Other current assets" on the consolidated balance sheets. At December 31, 2020, SCE posted $17 million of cash, of which $4 million was offset against derivative liabilities and $13 million was reflected in "Other current assets" on the consolidated balance sheets. |
Components of Economic Hedging Activity | The following table summarizes the components of SCE's economic hedging activity: Years ended December 31, (in millions) 2021 2020 2019 Realized gains (losses) $ 200 $ 87 $ (7) Unrealized (losses) gains (75) 17 (74) |
Notional Volumes of Derivative Instruments | The following table summarizes the notional volumes of derivatives used for SCE economic hedging activities: Economic Hedges Unit of December 31, Commodity Measure 2021 2020 Electricity options, swaps and forwards GWh 1,869 1,581 Natural gas options, swaps and forwards Bcf 58 34 Congestion revenue rights GWh 33,216 41,151 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Summary of Revenue | 2021 2020 2019 Cost- Cost- Cost- Earning Recovery Total Earning Recovery Total Earning Recovery Total (in millions) Activities Activities Consolidated Activities Activities Consolidated Activities Activities Consolidated Revenues from contracts with customers 1,2 $ 7,523 6,824 $ 14,347 $ 6,920 $ 5,539 12,459 $ 6,512 $ 4,655 $ 11,167 Alternative revenue programs and other operating revenue 3 349 178 527 548 539 1,087 166 973 1,139 Total operating revenue $ 7,872 $ 7,002 $ 14,874 $ 7,468 $ 6,078 $ 13,546 $ 6,678 $ 5,628 $ 12,306 1 SCE recorded CPUC revenue based on annual revenue requirement set by a methodology established in the GRC proceeding and FERC revenue authorized through a formula rate. For further information, see Note 1. 2 At December 31, 2021 and 2020, SCE's receivables related to contracts from customers were $2.3 billion and $1.5 billion, which included accrued unbilled revenue of $794 million and $521 million, respectively. 3 Includes differences between amounts billed and authorized levels for both the CPUC and FERC. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense by location of taxing jurisdiction are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Current: Federal $ — $ 13 $ — $ — $ 12 $ — State (179) (22) 6 (45) (26) 14 (179) (9) 6 (45) (14) 14 Deferred: Federal 83 (230) (243) 83 (207) (206) State (40) (66) (41) (21) (56) (37) 43 (296) (284) 62 (263) (243) Total $ (136) $ (305) $ (278) $ 17 $ (277) $ (229) |
Components of Net Accumulated Deferred Income Tax Liability | Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Current: Federal $ — $ 13 $ — $ — $ 12 $ — State (179) (22) 6 (45) (26) 14 (179) (9) 6 (45) (14) 14 Deferred: Federal 83 (230) (243) 83 (207) (206) State (40) (66) (41) (21) (56) (37) 43 (296) (284) 62 (263) (243) Total $ (136) $ (305) $ (278) $ 17 $ (277) $ (229) |
Summary of Net Operating Loss and Tax Credit Carryforwards | The amounts of net operating loss and tax credit carryforwards (after-tax) are as follows: Edison International SCE December 31, 2021 Loss Credit Loss Credit (in millions) Carryforwards Carryforwards Carryforwards Carryforwards Expire in 2022 $ 7 $ — $ 7 $ — Expire between 2023 to 2026 30 — 25 — Expire between 2029 to 2043 1,504 535 702 60 No expiration date 1 1,269 10 1,124 — Total $ 2,810 $ 545 $ 1,858 $ 60 1 Under the Tax Cut and Jobs Act signed into law on December 22, 2017 ("Tax Reform"), net operating losses generated after December 31, 2017 can carryforward indefinitely. |
Reconciliation of Income Tax Expense | The table below provides a reconciliation of income tax expense computed at the federal statutory income tax rate to the income tax provision: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Income from operations before income taxes $ 789 $ 566 $ 1,127 $ 952 $ 665 $ 1,301 Provision for income tax at federal statutory rate of 21% 166 119 237 200 140 273 Increase (decrease) in income tax from: Items presented with related state income tax, net: State tax, net of federal benefit (47) (61) (22) (33) (52) (13) Property-related (233) (320) (303) (233) (320) (303) Change related to uncertain tax position 1 (147) (15) — (37) (19) — Deferred tax re-measurement 2 — — (88) — — (88) 2018 GRC Final Decision — — (80) — — (80) Wildfire related charges 3 31 — — 31 — — Average rate assumption method ("ARAM") adjustment 4 87 — — 87 — — Corporate-owned life insurance cash surrender value (8) (8) (8) (8) (8) (8) Other 15 (20) (14) 10 (18) (10) Total income tax (benefit) expense $ (136) $ (305) $ (278) $ 17 $ (277) $ (229) Effective tax rate (17.2) % (53.9) % (24.7) % 1.8 % (41.7) % (17.6) % 1 In 2021, Edison International and SCE recognized tax benefits related to a settlement with the California Franchise Tax Board "FTB" for tax years 2007 – 2012. See further discussion in Tax Disputes below. In 2020, Edison International and SCE recognized tax expense and benefit, respectively, primarily due to the re-measurement of uncertain tax positions related to the 2010 – 2012 California state tax filings currently under audit. 2 Relates to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019. The resolution determined that customers are only entitled to excess deferred taxes which were included when setting rates, while other deferred tax re-measurement belongs to the shareholders. 3 Relates to the non-tax deductible portions of the SED Agreement (as defined in Note 12). See Note 12 for further discussion under 2017/2018 Wildfire/Mudslide Events. 4 In July 2021, SCE received the IRS' response to its private letter ruling request, regarding the scope of the deferred tax normalization requirements and the computations required to comply with the average rate assumption method. As a result, SCE's estimate changed and a cumulative true-up of $87 million reduction in tax benefits was recorded in the third quarter of 2021, for the period of January 1, 2018 to June 30, 2021. |
Reconciliation of Unrecognized Tax Benefits | The following table provides a reconciliation of unrecognized tax benefits: Edison International SCE (in millions) 2021 2020 2019 2021 2020 2019 Balance at January 1, $ 679 $ 370 $ 338 $ 320 $ 282 $ 249 Tax positions taken during the current year: Increases 53 55 46 53 56 47 Tax positions taken during a prior year: Increases 1 3 274 6 1 4 6 Decreases 2 (118) (20) (20) (29) (22) (20) Settlements with taxing authorities 3 (4) — — (5) — — Balance at December 31, $ 613 $ 679 $ 370 $ 340 $ 320 $ 282 1 Edison International recorded favorable tax positions in 2020 in connection with the Edison Mission Energy bankruptcy that required a revaluation of the reserve for uncertain tax positions. 2 Decrease in 2021 was related to re-measurement as a result of a settlement with the FTB for tax years 2007 – 2012. 3 In 2021, Edison International reached a settlement with the FTB for tax years 2007 – 2012. |
Schedule of Interest and Penalties Related to Income Tax Liabilities | The total amount of accrued interest and penalties related to income tax liabilities are: Edison International SCE December 31, (in millions) 2021 2020 2021 2020 Accrued interest and penalties $ — $ 52 $ 20 $ 23 The net after-tax interest and penalties recognized in income tax (benefit) expense are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Net after-tax interest and penalties tax (benefit) expense $ (41) $ 4 $ 4 $ (2) $ 6 $ 3 |
Compensation and Benefit Plans
Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Pension and Other Postretirement Benefits | |
Employee Savings Plan Employer Contributions | Edison International SCE (in millions) Years ended December 31, 2021 $ 97 $ 96 2020 93 92 2019 82 81 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes total expense and tax benefits associated with stock-based compensation: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Stock-based compensation expense 1 Stock options $ 16 $ 15 $ 13 $ 8 $ 7 $ 7 Performance shares 9 5 8 4 2 4 Restricted stock units 12 8 6 8 4 3 Other 2 1 2 — — — Total stock-based compensation expense 39 29 29 20 13 14 Income tax benefits related to stock compensation expense $ 4 $ 4 $ 10 $ 3 $ 3 $ 6 1 Reflected in "Operation and maintenance" on Edison International's and SCE's consolidated statements of income. |
Black-Sholes Option-Pricing Model Assumptions | Years ended December 31, 2021 2020 2019 Expected terms (in years) 5.4 5.2 5.5 Risk-free interest rate 1.1% - 1.3% 0.4% - 0.6% 1.6% - 2.3% Expected dividend yield 4.1% - 4.8% 4.2% - 5.0% 3.3% - 4.0% Weighted average expected dividend yield 4.5% 4.7% 3.9% Expected volatility 26.9% - 27.1% 24.9% - 26.9% 21.7% - 24.1% Weighted average volatility 26.9% 25.0% 21.8% |
Summary of Stock Options Activity | The following is a summary of the status of Edison International's stock options: Weighted Average Remaining Aggregate Stock Exercise Contractual Intrinsic Value Options Price Term (years) (in millions) Edison International: Outstanding at December 31, 2020 10,709,383 $ 63.85 Granted 2,515,015 55.04 Forfeited or expired (330,916) 62.49 Exercised 1 (538,656) 48.02 Outstanding at December 31, 2021 12,354,826 62.78 5.93 Vested and expected to vest at December 31, 2021 11,974,609 62.83 5.85 $ 80 Exercisable at December 31, 2021 7,412,820 $ 64.27 4.43 $ 43 SCE: Outstanding at December 31, 2020 5,490,488 $ 62.85 Granted 1,404,603 55.14 Forfeited or expired (307,607) 62.65 Exercised 1 (407,330) 48.80 Outstanding at December 31, 2021 6,180,154 62.03 5.87 Vested and expected to vest at December 31, 2021 5,997,654 62.07 5.80 $ 44 Exercisable at December 31, 2021 3,666,657 $ 63.24 4.27 $ 25 1 Edison International and SCE recognized tax benefits of $2 million and $2 million, respectively, from stock options exercised in 2021. |
Schedule of Unrecognized Compensation Expense | At December 31, 2021, total unrecognized compensation cost related to stock options and the weighted average period the cost is expected to be recognized are as follows: Edison International SCE Unrecognized compensation cost, net of expected forfeitures (in millions) $ 18 $ 9 Weighted average period (in years) 2.4 2.4 |
Supplemental Data on Stock-based Compensation | The following is a summary of supplemental data on stock options: Edison International SCE Years ended December 31, (in millions, except per award amounts) 2021 2020 2019 2021 2020 2019 Weighted average grant date fair value per option granted $ 7.26 $ 8.18 $ 8.80 $ 7.30 $ 8.16 $ 8.83 Fair value of options vested 3 2 14 3 2 7 Value of options exercised 8 9 27 6 7 19 |
Summary of Nonvested Share Activity | The following is a summary of the status of Edison International's nonvested performance shares: Equity Awards Weighted Average Shares Fair Value Edison International: Nonvested at December 31, 2020 233,624 $ 66.80 Granted 158,442 57.70 Forfeited (18,250) 62.51 Vested (111,008) 66.06 Nonvested at December 31, 2021 262,808 $ 61.92 SCE: Nonvested at December 31, 2020 120,644 $ 66.70 Granted 88,983 57.66 Forfeited (17,306) 62.77 Vested (54,514) 66.34 Nonvested at December 31, 2021 137,807 $ 61.50 |
Summary of Nonvested Restricted Stock Units Activity | The following is a summary of the status of Edison International's nonvested restricted stock units: Edison International SCE Weighted Average Weighted Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Nonvested at December 31, 2020 333,873 $ 63.78 168,420 $ 63.78 Granted 337,793 55.07 250,490 55.12 Forfeited (27,622) 58.81 (25,275) 59.18 Vested (97,889) 59.34 (48,703) 59.33 Nonvested at December 31, 2021 546,155 $ 59.44 344,932 $ 58.45 |
Pension Plans | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Information on pension plan assets and benefit obligations for continuing and discontinued operations is shown below. Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 4,476 $ 4,139 $ 3,984 $ 3,662 Service cost 130 121 126 117 Interest cost 103 124 92 110 Actuarial (gain) loss (245) 323 (246) 292 Benefits paid (293) (231) (262) (197) Projected benefit obligation at end of year $ 4,171 $ 4,476 $ 3,694 $ 3,984 Change in plan assets Fair value of plan assets at beginning of year $ 4,171 $ 3,755 $ 3,940 $ 3,541 Actual return on plan assets 368 584 348 551 Employer contributions 50 62 35 45 Benefits paid (293) (230) (262) (197) Fair value of plan assets at end of year 4,296 4,171 4,061 3,940 Funded status at end of year $ 125 $ (305) $ 367 $ (44) Amounts recognized in the consolidated balance sheets consist of 1 Long-term assets $ 384 $ — $ 384 $ — Current liabilities (26) (24) (2) (2) Long-term liabilities (233) (281) (15) (42) $ 125 $ (305) $ 367 $ (44) Amounts recognized in accumulated other comprehensive loss consist of: Prior service cost $ — $ (1) $ — $ — Net loss 1 74 96 12 16 74 95 12 16 Amounts recognized as a regulatory (liability)/asset (395) 12 (395) 12 Total not yet recognized as (income)/expense $ (321) $ 107 $ (383) $ 28 Accumulated benefit obligation at end of year $ 3,947 $ 4,238 $ 3,491 $ 3,776 Pension plans with an accumulated benefit obligation in excess of plan assets: Projected benefit obligation 4,171 4,476 3,694 3,984 Accumulated benefit obligation 3,947 4,238 3,491 3,766 Fair value of plan assets 4,296 4,171 4,061 3,940 Weighted average assumptions used to determine obligations at end of year: Discount rate 2.75 % 2.38 % 2.75 % 2.38 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 4.00 % 1 The SCE liability excludes a long-term payable due to Edison International Parent of $132 million and $139 million at December 31, 2021 and 2020, respectively, related to certain SCE postretirement benefit obligations transferred to Edison International Parent. SCE's accumulated other comprehensive loss of $12 million and $16 million at December 31, 2021 and 2020, excludes net losses of $32 million and $41 million related to these benefits, respectively. |
Expense Components for Plans | Net periodic pension expense components are: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 130 $ 121 $ 114 $ 127 $ 119 $ 111 Non-service cost (benefit) Interest cost 103 124 155 95 114 143 Expected return on plan assets (222) (215) (205) (211) (203) (194) Amortization of prior service cost 1 2 2 1 1 2 Amortization of net loss 11 10 7 7 7 5 Regulatory adjustment 25 16 (3) 25 16 (3) Total non-service benefit (82) (63) (44) (83) (65) (47) Total expense recognized $ 48 $ 58 $ 70 $ 44 $ 54 $ 64 |
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Other changes in pension plan assets and benefit obligations recognized in other comprehensive income: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Net (gain) loss $ (10) $ 11 $ 19 $ (5) $ 9 $ 21 Amortization of net loss (11) (10) (7) (7) (7) (5) Total (gain) loss recognized in other comprehensive income (21) 1 12 (12) 2 16 Total recognized in expense and other comprehensive income $ 27 $ 59 $ 82 $ 32 $ 56 $ 80 |
Schedule of Assumptions Used | Edison International and SCE used the following weighted average assumptions to determine pension expense: Years ended December 31, 2021 2020 2019 Discount rate 2.38 % 3.11 % 4.19 % Rate of compensation increase 4.00 % 4.10 % 4.10 % Expected long-term return on plan assets 5.50 % 6.00 % 6.50 % Interest crediting rate for cash balance account Starting rate 3.03 % 3.61 % 4.46 % Ultimate rate 4.50 % 5.00 % 5.75 % Year ultimate rate is reached 2025 2025 2022 |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect service rendered and expected future service, are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2022 $ 315 $ 274 2023 315 273 2024 313 272 2025 308 269 2026 306 267 2027 – 2031 1,358 1,210 |
Schedule of Pension Plan Assets by Hierarchy Levels | The following table sets forth the investments for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy: December 31, 2021 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 217 $ 918 $ — $ 1,135 Corporate stocks 3 466 4 — 470 Corporate bonds 4 — 815 — 815 Common/collective funds 5 — — 964 964 Partnerships/joint ventures 6 — — 688 688 Other investment entities 7 — — 110 110 Registered investment companies 8 57 — 31 88 Interest-bearing cash 8 — — 8 Other — 45 — 45 Total $ 748 $ 1,782 $ 1,793 $ 4,323 Receivables and payables, net (27) Combined net plan assets available for benefits 4,296 SCE's share of net plan assets $ 4,061 December 31, 2020 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 151 $ 1,006 $ — $ 1,157 Corporate stocks 3 570 5 — 575 Corporate bonds 4 — 601 — 601 Common/collective funds 5 — — 1,017 1,017 Partnerships/joint ventures 6 — — 569 569 Other investment entities 7 — — 137 137 Registered investment companies 8 69 — 23 92 Interest-bearing cash 7 — — 7 Other — 39 — 39 Total $ 797 $ 1,651 $ 1,746 $ 4,194 Receivables and payables, net (23) Combined net plan assets available for benefits 4,171 SCE's share of net plan assets $ 3,940 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. 3 Corporate stocks are diversified. At December 31, 2021 and 2020, respectively, performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 44% and 40% ) and Morgan Stanley Capital International (MSCI) index ( 56% and 60% ). 4 Corporate bonds are diversified. At December 31, 2021 and 2020, respectively, this category includes $61 million and $54 million for collateralized mortgage obligations and other asset backed securities. 5 At December 31, 2021 and 2020, respectively, the common/collective assets are invested in equity index funds that seek to track performance of the Standard and Poor's 500 Index ( 41% and 37% ) and Russell 1000 indexes ( 10% and 13% ). In addition, at December 31, 2021 and 2020, respectively, 38% and 40% of the assets in this category are in index funds which seek to track performance in the MSCI All Country World Index exUS and 9% and 8% of this category are in non-index U.S. equity fund, which is actively managed. 6 At December 31, 2021 and 2020, respectively, 62% and 49% are invested in private equity funds with investment strategies that include branded consumer products and clean technology companies, 17% and 23% are invested in ABS including distressed mortgages and commercial and residential loans, 15% and 19% are invested in publicly traded fixed income securities, and 3% and 4% are invested in a broad range of financial assets in all global markets. 7 At December 31, 2021 and 2020, respectively, 71% and 77% are invested in emerging market equity securities and 20% and 16% are invested in domestic mortgage backed securities. 8 At December 31, 2021 and 2020, respectively, registered investment companies were invested in Level 1 registered investment companies primarily consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index ( 63% and 73% ) and investments included fixed income fund used for cash management ( 35% and 25% ). |
Postretirement Benefits Other Than Pensions | |
Pension and Other Postretirement Benefits | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 2,073 $ 2,083 $ 2,064 $ 2,074 Service cost 40 38 40 37 Interest cost 52 63 52 63 Actuarial loss (gain) (190) (46) (190) (45) Plan participants' contributions 29 29 29 29 Benefits paid (100) (94) (100) (94) Benefit obligation at end of year $ 1,904 $ 2,073 $ 1,895 $ 2,064 Change in plan assets Fair value of plan assets at beginning of year $ 2,717 $ 2,465 $ 2,717 $ 2,464 Actual return on assets 119 309 119 309 Employer contributions 7 8 7 8 Plan participants' contributions 29 29 29 29 Benefits paid (100) (94) (100) (93) Fair value of plan assets at end of year 2,772 2,717 2,772 2,717 Funded status at end of year $ 868 $ 644 $ 877 $ 653 Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 876 $ 663 $ 885 $ 663 Current liabilities (8) (10) (8) (10) Long-term liabilities — (9) — — $ 868 $ 644 $ 877 $ 653 Amounts recognized in accumulated other comprehensive loss consist of: Net loss $ 1 $ 1 $ — $ — Amounts recognized as a regulatory liability (886) (671) (886) (671) Total not yet recognized as income $ (885) $ (670) $ (886) $ (671) Weighted average assumptions used to determine obligations at end of year: Discount rate 2.95 % 2.67 % 2.95 % 2.67 % Assumed health care cost trend rates: Rate assumed for following year 6.25 % 6.50 % 6.25 % 6.50 % Ultimate rate 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 2029 |
Expense Components for Plans | Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Service cost $ 40 $ 38 $ 30 $ 40 $ 37 $ 30 Non-service cost (benefit) Interest cost 52 63 77 52 63 77 Expected return on plan assets (106) (119) (111) (106) (119) (111) Amortization of prior service cost (1) (1) (1) (1) (1) (1) Amortization of net gain (35) (29) (17) (36) (29) (17) Regulatory adjustment 51 49 29 51 49 29 Total non-service benefit (39) (37) (23) (40) (37) (23) Total expense $ 1 $ 1 $ 7 $ — $ — $ 7 |
Schedule of Assumptions Used | Edison International and SCE used the following weighted average assumptions to determine PBOP expense: Years ended December 31, 2021 2020 2019 Discount rate 2.67 % 3.32 % 4.35 % Expected long-term return on plan assets 4.00 % 4.90 % 5.30 % Assumed health care cost trend rates: Current year 6.50 % 6.50 % 6.75 % Ultimate rate 5.00 % 5.00 % 5.00 % Year ultimate rate reached 2029 2029 2029 |
Schedule of Expected Benefit Payments | The following benefit payments (net of plan participants' contributions) are expected to be paid: Edison International SCE (in millions) Years ended December 31, 2022 $ 78 $ 78 2023 80 80 2024 83 82 2025 84 84 2026 86 86 2027 – 2031 454 452 |
Schedule of Pension Plan Assets by Hierarchy Levels | The following table sets forth the VEBA Trust assets for Edison International and SCE that were accounted for at fair value as of December 31, 2021 and December 31, 2020, respectively, by asset class and level within the fair value hierarchy: December 31, 2021 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 813 $ 10 $ — $ 823 Corporate stocks 3 145 3 — 148 Corporate notes and bonds 4 — 997 — 997 Common/collective funds 5 — — 544 544 Partnerships 6 — — 107 107 Registered investment companies 7 44 — — 44 Interest bearing cash — 51 — 51 Other 8 — 59 — 59 Total $ 1,002 $ 1,120 $ 651 $ 2,773 Receivables and payables, net (1) Combined net plan assets available for benefits 2,772 SCE's share of net plan assets $ 2,772 December 31, 2020 (in millions) Level 1 Level 2 NAV 1 Total U.S. government and agency securities 2 $ 380 $ 30 $ — $ 410 Corporate stocks 3 224 3 — 227 Corporate notes and bonds 4 — 1,079 — 1,079 Common/collective funds 5 — — 693 693 Partnerships 6 — — 81 81 Registered investment companies 7 65 — — 65 Interest bearing cash — 26 — 26 Other 8 — 132 — 132 Total $ 669 $ 1,270 $ 774 $ 2,713 Receivables and payables, net 4 Combined net plan assets available for benefits $ 2,717 SCE's share of net plan assets $ 2,717 1 These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the net plan assets available for benefits. 2 Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. 3 Corporate stock performance for actively managed separate accounts is primarily benchmarked against the Russell Indexes ( 73% and 70% ) and the MSCI All Country World Index ( 27% and 30% ) for 2021 and 2020, respectively. 4 Corporate notes and bonds are diversified and include approximately $150 million and $170 million for commercial collateralized mortgage obligations and other asset backed securities at December 31, 2021 and 2020, respectively. 5 At December 31, 2021 and 2020, respectively, 65% and 70% of the common/collective assets are invested in index funds which seek to track performance in the MSCI All Country World Index Investable Market Index. 25% and 22% are invested in a non-index U.S. equity fund which is actively managed. The remaining assets in this category are primarily invested in emerging market fund. 6 At December 31, 2021 and 2020, respectively, 54% and 46% of the partnerships are invested in private equity and venture capital funds. Investment strategies for these funds include branded consumer products, clean and information technology and healthcare. Of the remaining partnerships category, 35% and 36% are invested in asset backed securities including distressed mortgages, distressed companies and commercial and residential loans and debt and equity of banks, 11% and 18% are invested in a broad range of financial assets in all global markets. 7 At December 31, 2021 and 2020, respectively, registered investment companies were primarily invested in a money market fund ( 61% and 51% ) and exchange rate trade funds which seek to track performance of MSCI Emerging Market Index, Russell 2000 Index and international small cap equities ( 39% and 49% ) 8 Other includes $44 million and $61 million of municipal securities at December 31, 2021 and 2020, respectively . |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Amortized Cost and Fair Value of the Trust Investments | Amortized Cost Fair Value Longest December 31, (in millions) Maturity Date 2021 2020 2021 2020 Stocks — * * $ 1,972 $ 1,908 Municipal bonds 2057 875 1,013 1,033 1,218 U.S. government and agency securities 2067 1,095 740 1,212 864 Corporate bonds 2070 386 460 446 550 Short-term investments and receivables/payables 1 One-year 199 281 207 293 Total $ 2,555 $ 2,494 $ 4,870 $ 4,833 * Not applicable 1 Short-term investments include $37 million and $138 million of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by January 3, 2022 and January 4, 2021 as of December 31, 2021 and 2020, respectively. |
Summary of gains and losses | December 31, (in millions) 2021 2020 2019 Gross realized gains $ 339 $ 255 $ 87 Gross realized losses (24) (6) (2) Net unrealized gains for equity securities 103 176 343 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory assets | December 31, (in millions) 2021 2020 Current: Regulatory balancing and memorandum accounts $ 1,591 $ 1,127 Power contracts 168 165 Other 19 22 Total current 1,778 1,314 Long-term: Deferred income taxes, net of liabilities 4,770 4,475 Pension and other postretirement benefits — 12 Power contracts 71 239 Unamortized investments, net of accumulated amortization 114 114 Unamortized loss on reacquired debt 121 133 Regulatory balancing and memorandum accounts 1,897 1,794 Environmental remediation 242 247 Recovery assets 325 — Other 120 106 Total long-term 7,660 7,120 Total regulatory assets $ 9,438 $ 8,434 |
Regulatory liabilities | December 31, (in millions) 2021 2020 Current: Regulatory balancing and memorandum accounts $ 553 $ 471 Energy derivatives 25 87 Other 25 11 Total current 603 569 Long-term: Costs of removal 2,552 2,595 Re-measurement of deferred taxes 2,315 2,283 Recoveries in excess of ARO liabilities 2,155 1,930 Regulatory balancing and memorandum accounts 648 1,062 Pension and other postretirement benefits 1,281 671 Other 30 48 Total long-term 8,981 8,589 Total regulatory liabilities $ 9,584 $ 9,158 |
Schedule of Regulatory Balancing Accounts | December 31, (in millions) 2021 2020 Asset (liability) Energy resource recovery account $ 759 $ (89) Portfolio allocation balancing account (183) 497 New system generation balancing account 73 (10) Public purpose programs and energy efficiency programs (1,066) (1,130) Base revenue requirement balancing account 849 622 GRC wildfire mitigation balancing accounts 1 12 — Greenhouse gas auction revenue and low carbon fuel standard revenue (298) (125) FERC balancing accounts 55 12 Wildfire and drought restoration accounts 2 299 361 Wildfire-related memorandum accounts 3 1,456 1,104 COVID-19-related memorandum accounts 94 176 Customer service re-platform memorandum account 4 128 30 Tax accounting memorandum account and pole loading balancing account 171 (35) Other (62) (25) Asset $ 2,287 $ 1,388 1 The 2021 GRC decision approved the establishment of the vegetation management balancing account ("VMBA") to track vegetation management expenses up to 115% of amounts authorized, the Wildfire Risk Mitigation balancing account ("WRMBA") to track the costs of SCE's Wildfire Covered Conductor Program up to 110% of amounts authorized and the risk management balancing account to track the authorized costs of wildfire insurance. The amount recorded to these balancing accounts represents the difference between costs tracked in the balancing accounts and authorized revenues for those costs recorded to the base revenue requirement balancing account. If spending is less than authorized, SCE will refund those amounts to customers. If spending is within the specified threshold, if any, for each balancing account, SCE will recover those costs from customers. Amounts above the specified threshold, or above amounts authorized if a higher threshold was not established, for each balancing account may be eligible for deferral to wildfire-related memorandum accounts. 2 The wildfire and drought restoration accounts regulatory assets represent restoration costs that are recorded in a Catastrophic Event Memorandum Account ("CEMA"). 3 The wildfire-related memorandum accounts regulatory assets represent wildfire-related costs that are probable of future recovery from customers, subject to a reasonableness review. The Fire Hazard Prevention Memorandum Account ("FHPMA") was used to track costs related to fire safety and to implement fire prevention corrective action measures in extreme and very high fire threat areas. The Wildfire Expense Memorandum Account ("WEMA") is used to track incremental wildfire insurance costs and uninsured wildfire-related financing, legal and claims costs. The Wildfire Mitigation Plan Memorandum Account ("WMPMA") is used to track costs incurred to implement SCE's wildfire mitigation plan that are not currently reflected in SCE's revenue requirements. The Fire Risk Mitigation Memorandum Account ("FRMMA") is used to track costs related to the reduction of fire risk that are incremental to costs approved for recovery in SCE's GRCs that are not tracked in any other wildfire-related memorandum account. The balance also includes vegetation management spending in excess of the 115% threshold for the VMBA described above. 4 CSRP memorandum account was established in the 2018 GRC to track costs for implementation of a new customer service system not currently reflected in SCE's revenue requirements. Expenditures for the CSRP project are subject to reasonableness review by the CPUC, expenditures for the project were significantly higher than originally projected. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of undiscounted expected payments for PPA | (in millions) Total 2022 $ 3,131 2023 3,026 2024 2,460 2025 2,347 2026 2,358 Thereafter 20,179 Total future commitments 1 $ 33,501 1 Certain power purchase agreements are treated as operating or finance leases. For further discussion, see Note 13. |
Summary of Certain Future Other Commitments | The following summarizes the estimated minimum future commitments for SCE's other commitments: (in millions) 2022 2023 2024 2025 2026 Thereafter Total Other contractual obligations $ 47 $ 47 $ 48 $ 47 $ 37 $ 222 $ 448 |
Schedule of Contingency Accruals and Changes | (in millions) Balance at December 31, 2020 1 $ 4,383 Increase in accrued estimated losses 1,265 Amounts paid (3,914) Balance at December 31, 2021 2 $ 1,734 1 At December 31, 2020, $2,231 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes an estimate for claims brought by insurance subrogation plaintiffs in the Woolsey Fire litigation, which were settled on January 22, 2021 for $2,212 million, and $19 million of other settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2020, the $2,281 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events after giving effect to the Woolsey Subrogation Settlement of $2,152 million and other wildfire-related claims estimates of $129 million. 2 At December 31, 2021, $131 million in current liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets consists of settlements executed in connection with the 2017/2018 Wildfire/Mudslide Events. At December 31, 2021, the $ 1,733 million included in deferred credits and other liabilities, wildfire-related claims, on Edison International's and SCE's consolidated balance sheets includes Edison International's and SCE's best estimate of expected losses for the 2017/2018 Wildfire/Mudslide Events of $1,603 million and other wildfire-related claims estimates of $130 million . For the years-ended December 31, 2021 and 2020, the income statements include charges for the estimated losses, net of expected recoveries from insurance and FERC customers, related to the 2017/2018 Wildfire/Mudslide Events as follows: Year ended December 31, (in millions) 2021 2020 Charge for wildfire-related claims $ 1,265 $ 1,297 Expected revenue from FERC customers (67) (84) Total pre-tax charge 1,198 1,213 Income tax benefit (304) (339) Total after-tax charge $ 894 $ 874 For events that occurred in 2017 and early 2018, principally the Thomas and Koenigstein Fires and Montecito Mudslides, SCE had $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. For the Woolsey Fire, SCE had an additional $1.0 billion of wildfire-specific insurance coverage, subject to a self-insured retention of $10 million per occurrence. Edison International and SCE record a receivable for insurance recoveries when recovery of a recorded loss is determined to be probable. The following table presents changes in expected insurance recoveries associated with the estimated losses for the 2017/2018 Wildfire/Mudslide Events since December 31, 2020: (in millions) Balance at December 31, 2020 $ 708 Insurance recoveries (708) Balance at December 31, 2021 $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Finance Lease Payments | The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2021: PPA Operating Other Operating PPA Finance (in millions) Leases 1 Leases 2 Leases 1 2022 $ 579 $ 44 $ 1 2023 482 36 1 2024 73 30 — 2025 73 27 — 2026 70 24 — Thereafter 698 110 5 Total lease payments 1,975 271 7 Amount representing interest 262 59 4 Lease liabilities $ 1,713 $ 212 $ 3 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. |
Summary of Operating Lease Payments | The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2021: PPA Operating Other Operating PPA Finance (in millions) Leases 1 Leases 2 Leases 1 2022 $ 579 $ 44 $ 1 2023 482 36 1 2024 73 30 — 2025 73 27 — 2026 70 24 — Thereafter 698 110 5 Total lease payments 1,975 271 7 Amount representing interest 262 59 4 Lease liabilities $ 1,713 $ 212 $ 3 1 Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors. 2 Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to SCE's leases was as follows: December 31, December 31, (in millions) 2021 2020 Operating leases: Operating lease ROU assets 1 $ 1,925 $ 1,085 Current portion of operating lease liabilities 582 214 Operating lease liabilities 1,343 871 Total operating lease liabilities 1 $ 1,925 $ 1,085 Finance leases included in: Utility property, plant and equipment, gross $ 4 $ 4 Accumulated depreciation (1) — Utility property, plant and equipment, net 3 4 Other long-term liabilities 3 4 Total finance lease liabilities $ 3 $ 4 1 During the year ended December 31, 2021, three SCE PPA operating lease contracts commenced and three power contracts were amended resulting in a total of $1.1 billion additions in ROU assets and lease liabilities. |
Summary of Lease Expense Components | Years ended December 31, (in millions) 2021 2020 2019 PPA leases: Operating lease cost $ 305 $ 111 $ 118 Finance lease cost 1 1 1 Variable lease cost 1 2,097 1,917 2,087 Short term lease cost 539 — — Total PPA lease cost 2,942 2,029 2,206 Other operating leases cost 47 47 46 Total lease cost $ 2,989 $ 2,076 $ 2,252 1 Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation. Other information related to leases was as follows: Years ended December 31, (in millions, except lease term and discount rate) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases PPA leases $ 305 $ 111 $ 118 Other leases 45 44 44 Financing cash flows from PPA finance leases 1 1 1 ROU assets obtained in exchange for lease obligations: PPA operating leases $ 1,084 $ 463 $ — Other operating leases 71 58 34 Weighted average remaining lease term (in years): Operating leases PPA leases 8.16 9.75 16.05 Other leases 11.14 12.13 12.73 PPA Finance leases 15.67 16.67 11.51 Weighted average discount rate: Operating leases PPA leases 2.43 % 3.12 % 4.46 % Other leases 3.34 % 3.63 % 3.88 % PPA Finance leases 11.29 % 11.29 % 8.76 % |
Schedule of Undiscounted Cash Flow Expected from Lease Payments | (in millions) 2022 $ 11 2023 10 2024 8 2025 7 2026 6 Thereafter 124 Total $ 166 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Schedule of Preferred Stock and Preference Stock | Preference stocks are: Redemption Dividends Shares Price Declared December 31, (in millions, except shares and per share amounts) Outstanding per Share per Share 2021 2020 No par value: 6.25% Series E (cumulative) 350,000 $ 1,000.00 $ 62.500 $ 350 $ 350 5.10% Series G (cumulative) 88,004 2,500.00 127.500 220 220 5.75% Series H (cumulative) 110,004 2,500.00 143.750 275 275 5.375% Series J (cumulative) 130,004 2,500.00 134.375 325 325 5.45% Series K (cumulative) 120,004 2,500.00 136.250 300 300 5.00% Series L (cumulative) 190,004 2,500.00 125.000 475 475 SCE's preference stock 1,945 1,945 Less issuance costs (44) (44) Edison International's preference stock of utility $ 1,901 $ 1,901 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, consist of: Edison International SCE Years ended December 31, (in millions) 2021 2020 2021 2020 Beginning balance $ (69) $ (69) $ (41) $ (39) Pension and PBOP – net loss: Other comprehensive income (loss) before reclassifications 7 (8) 4 (7) Reclassified from accumulated other comprehensive loss 1 8 8 5 5 Change 15 — 9 (2) Ending Balance $ (54) $ (69) $ (32) $ (41) 1 . |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income [Abstract] | |
Summary of Other Income | Other income net of expenses is as follows: Years ended December 31, (in millions) 2021 2020 2019 SCE other income (expense): Equity allowance for funds used during construction $ 118 $ 121 $ 101 Increase in cash surrender value of life insurance policies and life insurance benefits 40 66 39 Interest income 3 20 37 Net periodic benefit income – non-service components 123 102 70 Civic, political and related activities and donations (39) (42) (46) Other (12) (12) (6) Total SCE other income 233 255 195 Other income (expense) of Edison International Parent and Other: Net periodic benefit costs – non-service components (2) (2) (3) Unrealized gains on equity securities 4 — — Other 2 (2) 1 Total Edison International other income $ 237 $ 251 $ 193 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flows Information | Supplemental cash flows information is: Edison International SCE Years ended December 31, (in millions) 2021 2020 2019 2021 2020 2019 Cash payments (receipts): Interest, net of amounts capitalized $ 887 $ 836 $ 705 $ 760 $ 713 $ 615 Income taxes, net (88) (34) (85) (88) (50) (164) Non-cash financing and investing activities: Dividends declared but not paid: Common stock 266 251 231 325 — 200 Preferred and preference stock of utility 11 11 12 11 11 12 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related-Party Transactions | December 31, (in millions) 2021 2020 Insurance receivable due from affiliate $ — $ 268 Prepaid insurance 1 52 56 1 Reflected in "Prepaid expenses" on SCE's consolidated balance sheets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Organization (Details) | 12 Months Ended |
Dec. 31, 2021mi² | |
Electric Utility | SCE | |
Segment Reporting Information [Line Items] | |
Supply of electricity area covered (in square miles) | 50,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | $ 329 | $ 62 | ||
Cash and cash equivalents | 390 | 87 | ||
Short-term restricted cash | 4 | 2 | ||
Total cash, cash equivalents, and restricted cash | 394 | 89 | $ 70 | $ 152 |
SCE | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Money market funds | 230 | 38 | ||
Cash and cash equivalents | 279 | 55 | ||
Short-term restricted cash | 1 | 1 | ||
Total cash, cash equivalents, and restricted cash | $ 280 | $ 56 | $ 24 | $ 22 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Uncollectible Allowance) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022USD ($) | Jun. 30, 2021D | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Gross long-term account receivables | $ 238 | |||
Allowance for long-term uncollectible accounts | 116 | |||
SCE | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 309 | 188 | $ 49 | |
Included in operation and maintenance expenses in earning activities | 44 | 45 | ||
Included in operation and maintenance expenses in cost-recovery activities | 74 | 15 | ||
Deferred to regulatory memorandum accounts | 17 | 105 | ||
Less: write-offs, net of recoveries | 14 | 26 | ||
Ending balance | 309 | 188 | ||
Number of arrearages days | D | 60 | |||
Term of payment plans | 24 months | |||
Allowance for long-term uncollectible accounts | 116 | |||
SCE | CAPP | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Less: write-offs, net of recoveries | 78 | |||
Cash received | 185 | |||
SCE | Customers | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 293 | 175 | 35 | |
Included in operation and maintenance expenses in earning activities | 33 | 36 | ||
Included in operation and maintenance expenses in cost-recovery activities | 74 | 15 | ||
Deferred to regulatory memorandum accounts | 17 | 105 | ||
Less: write-offs, net of recoveries | 6 | 16 | ||
Ending balance | 293 | 175 | ||
SCE | All others | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 16 | 13 | 14 | |
Included in operation and maintenance expenses in earning activities | 11 | 9 | ||
Less: write-offs, net of recoveries | 8 | 10 | ||
Ending balance | $ 16 | $ 13 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Emission Allowances) (Details) - SCE - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Accounting Policies [Line Items] | ||
Regulatory liabilities | $ 9,584 | $ 9,158 |
LCFS net sales proceeds | ||
Significant Accounting Policies [Line Items] | ||
Regulatory liabilities | 193 | 176 |
Other Current Assets | ||
Significant Accounting Policies [Line Items] | ||
GHG allowances | 47 | 78 |
Other Current Liabilities | ||
Significant Accounting Policies [Line Items] | ||
GHG emission obligations | $ 34 | $ 64 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (PPE) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2,000 | $ 1,800 | $ 1,700 |
Depreciation expense based on cost (as a percent) | 3.70% | 3.60% | 3.60% |
AFUDC equity capitalized during construction | $ 118 | $ 121 | $ 101 |
Potential impairment | 186 | ||
Other income | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC equity capitalized during construction | 118 | 121 | 101 |
Interest expense | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC debt capitalized during construction | 50 | $ 53 | $ 63 |
2021 General Rate Case | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment | 79 | ||
Asset impairment, net of tax | $ 47 | ||
Generation plant | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 10 years | ||
Generation plant | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 55 years | ||
Generation plant | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 36 years | ||
Distribution plant | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 20 years | ||
Distribution plant | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 67 years | ||
Distribution plant | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 50 years | ||
Transmission plant | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 45 years | ||
Transmission plant | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 65 years | ||
Transmission plant | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 54 years | ||
General plant and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 5 years | ||
General plant and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 60 years | ||
General plant and other | Weighted Average | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 26 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Prepaid Insurance) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Wildfire Insurance Fund contributions, noncurrent | $ 2,359 | $ 2,443 | |||
Wildfire Insurance Fund contributions, current | 204 | 323 | |||
Wildfire Insurance Fund contributions | $ 95 | $ 95 | $ 2,457 | ||
Insurance fund contribution amortization period | 15 years | ||||
Measurement Input | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Historical term used in estimate | 8 years | 7 years | 5 years | ||
Wildfire Insurance Fund | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Wildfire Insurance Fund contributions, noncurrent | $ 2,400 | ||||
Wildfire Insurance Fund contributions, current | 204 | ||||
Wildfire Insurance Fund contributions | $ 2,400 | ||||
Wildfire Insurance Fund liability, noncurrent | $ 620 | ||||
Insurance fund contribution amortization period | 15 years | 10 years | |||
SCE | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Wildfire Insurance Fund contributions, noncurrent | $ 2,359 | $ 2,443 | |||
Wildfire Insurance Fund contributions, current | 204 | 323 | |||
Wildfire Insurance Fund contributions | $ 95 | $ 95 | $ 2,457 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Nuclear Decommissioning) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | $ 2,930 | |
Ending balance | 2,772 | $ 2,930 |
SCE | ||
Asset Retirement Obligation, Roll Forward | ||
Beginning balance | 2,930 | 3,029 |
Accretion | 157 | 160 |
Revisions | (77) | (36) |
Liabilities settled | (238) | (223) |
Ending balance | 2,772 | $ 2,930 |
SCE | Palo Verde and San Onofre Units | ||
Asset Retirement Obligation, Roll Forward | ||
Ending balance | 2,400 | |
Asset retirement obligation increase (decrease) | (131) | |
Estimated cost to decommission nuclear facilities | $ 6,300 | |
Decommissioning cost escalated rates, low end (percent) | 1.70% | |
Decommissioning cost escalated rates, high end (percent) | 7.50% | |
Estimated annual net of tax earnings, low end (percent) | 1.30% | |
Estimated annual net of tax earnings, high end (percent) | 4.80% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Deferred Financing) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 7,660 | $ 7,120 | |
Unamortized debt issuance expense | 153 | 131 | |
Amortization of deferred financing costs charged to interest expense | 34 | 32 | $ 30 |
SCE | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | 7,660 | 7,120 | |
Unamortized debt issuance expense | 143 | 117 | |
Amortization of deferred financing costs charged to interest expense | 29 | 27 | $ 26 |
SCE | Unamortized loss on reacquired debt | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 121 | $ 133 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Revenue) (Details) - SCE - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Public Utilities, General Disclosures [Line Items] | ||||
Franchise fees billed to customers | $ 147 | $ 131 | $ 122 | |
2021 General Rate Case | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Approved rate amount | $ 6,900 | |||
Approved regulatory increase (decrease) | $ 1,000 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (ESPP) (Details) - USD ($) | 1 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 71,000,000 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 3,000,000 | |
Maximum payroll deduction | $ 25,000 | |
Purchase price based on market (as a percent) | 97.00% | |
Employee Stock Purchase Plan | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payroll deductions (as a percent) | 1.00% | |
Employee Stock Purchase Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payroll deductions (as a percent) | 10.00% |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (SCE Dividends) (Details) - SCE - USD ($) $ in Millions | Feb. 24, 2022 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | ||||
Weighted-average equity component authorization (as a percent) | 52.00% | 48.00% | 45.20% | |
Spot rate equity ratio | 47.70% | |||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 37 months | 37 months | ||
Waiver threshold percent | 47.70% | |||
Weighted-average common equity component of total capitalization percent (below) | 48.70% | |||
Wildfire related charge incurred after tax | $ 1,800 | |||
Dividends | $ 325 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic earnings per share: | |||
Net (loss) income attributable to common shareholders | $ 759 | $ 739 | $ 1,284 |
Net income available to common shareholders | $ 759 | $ 739 | $ 1,284 |
Weighted average common shares outstanding (in shares) | 380,000,000 | 373,000,000 | 340,000,000 |
Basic earnings per share (in dollars per share) | $ 2 | $ 1.98 | $ 3.78 |
Diluted earnings per share: | |||
Net (loss) income attributable to common shareholders | $ 759 | $ 739 | $ 1,284 |
Net income available to common shareholders | 759 | 739 | 1,284 |
Income impact of assumed conversions | 1 | 0 | 0 |
Net income available to common shareholders and assumed conversions | $ 760 | $ 739 | $ 1,284 |
Weighted average common shares outstanding (in shares) | 380,000,000 | 373,000,000 | 340,000,000 |
Incremental shares from assumed conversions (in shares) | 0 | 1,000,000 | 1,000,000 |
Adjusted weighted average shares - diluted (in shares) | 380,000,000 | 374,000,000 | 341,000,000 |
Diluted earnings per share (in dollars per share) | $ 2 | $ 1.98 | $ 3.77 |
Stock Compensation Plan | |||
Diluted earnings per share: | |||
Antidilutive awards excluded from earnings per share (in shares) | 10,239,501 | 9,066,753 | 4,511,802 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (11,407) | $ (10,681) |
Total utility property, plant and equipment | 50,497 | 47,653 |
SCE | ||
Property, Plant and Equipment [Line Items] | ||
Distribution | 30,821 | 28,663 |
Transmission | 17,016 | 15,669 |
Generation | 3,769 | 3,709 |
General plant and other | 6,108 | 5,129 |
Accumulated depreciation | (11,407) | (10,681) |
Total utility property, plant and equipment, Gross | 46,307 | 42,489 |
Construction work in progress | 4,067 | 5,033 |
Nuclear fuel, at amortized cost | 123 | 131 |
Total utility property, plant and equipment | $ 50,497 | $ 47,653 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Textual) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized software costs | $ 2,000 | $ 1,200 | |
Capitalized software, accumulated amortization | 600 | 600 | |
Capitalized software, amortization expense | 311 | $ 218 | $ 190 |
Capitalized software, estimated amortization year 1 | 338 | ||
Capitalized software, estimated amortization year 2 | 310 | ||
Capitalized software, estimated amortization year 3 | 272 | ||
Capitalized software, estimated amortization year 4 | 220 | ||
Capitalized software, estimated amortization year 5 | $ 144 | ||
Capitalized software costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Capitalized software costs | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Property, Plant and Equipment_4
Property, Plant and Equipment (Jointly Owned Utility Projects) (Details) - SCE - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Jointly Owned Utility Plant Interests [Line Items] | ||
Nuclear Fuel (at amortized cost) | $ 123 | $ 131 |
Eldorado | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | 336 | |
Construction Work in Progress | 94 | |
Accumulated Depreciation | 49 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 381 | |
Ownership Interest | 86.00% | |
Pacific Intertie | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 351 | |
Construction Work in Progress | 1 | |
Accumulated Depreciation | 75 | |
Nuclear Fuel (at amortized cost) | 0 | |
Net Book Value | $ 277 | |
Ownership Interest | 50.00% | |
Palo Verde (nuclear) | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 2,146 | |
Construction Work in Progress | 53 | |
Accumulated Depreciation | 1,629 | |
Nuclear Fuel (at amortized cost) | 123 | |
Net Book Value | $ 693 | |
Ownership Interest | 16.00% | |
Total | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Plant in Service | $ 2,833 | |
Construction Work in Progress | 148 | |
Accumulated Depreciation | 1,753 | |
Nuclear Fuel (at amortized cost) | 123 | |
Net Book Value | $ 1,351 |
Variable Interest Entities (Rec
Variable Interest Entities (Recovery Funding) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Other current assets | $ 249 | $ 292 |
Regulatory assets: Non-current | 7,660 | 7,120 |
Regulatory liabilities: Current | (603) | (569) |
Current portion of long-term debt | (1,077) | (1,029) |
Other current liabilities | (1,667) | (1,612) |
Long-term debt | (24,170) | (19,632) |
SCE Recovery Funding LLC | ||
Variable Interest Entity [Line Items] | ||
Other current assets | 19 | |
Regulatory assets: Non-current | 325 | |
Regulatory liabilities: Current | (14) | |
Current portion of long-term debt | (14) | |
Other current liabilities | (1) | |
Long-term debt | (314) | |
SCE | ||
Variable Interest Entity [Line Items] | ||
Other current assets | 222 | 285 |
Regulatory assets: Non-current | 7,660 | 7,120 |
Regulatory liabilities: Current | (603) | (569) |
Current portion of long-term debt | (377) | (1,029) |
Other current liabilities | (1,631) | (1,294) |
Long-term debt | (21,733) | $ (16,499) |
SCE | Series 2021-A senior secured recovery bonds | ||
Variable Interest Entity [Line Items] | ||
Debt | 338 | |
SCE | SCE Recovery Funding LLC | ||
Variable Interest Entity [Line Items] | ||
Long-term debt | $ (314) |
Variable Interest Entities (Tru
Variable Interest Entities (Trusts) (Details) | 12 Months Ended | |||||||
Dec. 31, 2021USD ($)MW | Dec. 31, 2020USD ($)MW | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||||||||
Redemption of trust securities | $ 308,000,000 | |||||||
SCE | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Redemption of trust securities | 308,000,000 | |||||||
SCE | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation value (in dollars per share) | $ / shares | $ 2,500 | |||||||
SCE | 5.10% Series G Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||
Redemption of trust securities | 180,000,000 | |||||||
SCE | 5.75% Series H Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||
SCE | 5.375% Series J Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||
SCE | 5.45% Series K Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||
SCE | 5.00% Series L Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.00% | |||||||
SCE | Variable Interest Entity, Not Primary Beneficiary | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | |||||||
Common stock | $ 10,000 | $ 10,000 | $ 10,000 | |||||
SCE | Power Purchase Agreement | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Power generating capacity for majority interest (in megawatts) | MW | 3,545 | 5,103 | ||||||
Amount of related party transaction | $ 673,000,000 | $ 744,000,000 | ||||||
SCE | Trust II | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | $ 400,000,000 | |||||||
SCE | Trust II | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | 220,000,000 | 220,000,000 | ||||||
SCE | Trust II | 5.10% Series G Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.10% | |||||||
Liquidation preference | 220,000,000 | 220,000,000 | $ 400,000,000 | |||||
SCE | Trust III | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | $ 275,000,000 | |||||||
SCE | Trust III | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | 275,000,000 | 275,000,000 | ||||||
SCE | Trust III | 5.75% Series H Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.75% | |||||||
Liquidation preference | 275,000,000 | 275,000,000 | $ 275,000,000 | |||||
SCE | Trust IV | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | $ 325,000,000 | |||||||
SCE | Trust IV | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | 325,000,000 | 325,000,000 | ||||||
SCE | Trust IV | 5.375% Series J Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.375% | |||||||
Liquidation preference | 325,000,000 | 325,000,000 | $ 325,000,000 | |||||
SCE | Trust V | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | $ 300,000,000 | |||||||
SCE | Trust V | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | 300,000,000 | 300,000,000 | ||||||
SCE | Trust V | 5.45% Series K Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.45% | |||||||
Liquidation preference | 300,000,000 | 300,000,000 | $ 300,000,000 | |||||
SCE | Trust VI | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | $ 475,000,000 | |||||||
SCE | Trust VI | Trust Securities [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Liquidation preference | 475,000,000 | 475,000,000 | $ 475,000,000 | |||||
SCE | Trust VI | 5.00% Series L Preferred Stock | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Security dividend rate, (as a percent) | 5.00% | |||||||
Liquidation preference | $ 475,000,000 | $ 475,000,000 |
Variable Interest Entities (Inc
Variable Interest Entities (Income Statement) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trust II | |||
Variable Interest Entity [Line Items] | |||
Dividend income | $ 20 | $ 20 | $ 20 |
Dividend distributions | 20 | 20 | 20 |
Trust III | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 16 | 16 |
Dividend distributions | 16 | 16 | 16 |
Trust IV | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 17 | 17 | 17 |
Dividend distributions | 17 | 17 | 17 |
Trust V | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 16 | 16 | 16 |
Dividend distributions | 16 | 16 | 16 |
Trust VI | |||
Variable Interest Entity [Line Items] | |||
Dividend income | 24 | 24 | 24 |
Dividend distributions | $ 24 | $ 24 | $ 24 |
Fair Value Measurements (Hierar
Fair Value Measurements (Hierarchy) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,870 | $ 4,833 |
SCE | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 4,870 | $ 4,833 |
Liabilities at fair value | ||
Percentage of equity investments located in the United States (as a percent) | 75.00% | 71.00% |
Collateralized mortgage obligations and other asset backed securities | $ 30 | $ 29 |
Payables, net, related to investments | 19 | 206 |
SCE | Fair Value, Measurements, Recurring | ||
Assets at fair value | ||
Netting and Collateral | (31) | (18) |
Derivative contracts, net | 44 | 108 |
Money market funds and other | 253 | 62 |
Nuclear decommissioning trusts | 4,889 | 5,039 |
Total assets | 5,186 | 5,209 |
Liabilities at fair value | ||
Netting and Collateral | (47) | (22) |
Derivative contracts, net | 0 | |
Total liabilities | 0 | |
Net assets | 5,186 | 5,209 |
Netting and Collateral, Total | 16 | 4 |
SCE | Fair Value, Measurements, Recurring | Level 1 | ||
Assets at fair value | ||
Derivative contracts | 0 | |
Money market funds and other | 230 | 39 |
Nuclear decommissioning trusts | 3,157 | 2,874 |
Total assets | 3,387 | 2,913 |
Liabilities at fair value | ||
Derivative contracts | 0 | |
Total liabilities | 0 | |
Net assets | 3,387 | 2,913 |
SCE | Fair Value, Measurements, Recurring | Level 2 | ||
Assets at fair value | ||
Derivative contracts | 26 | 6 |
Money market funds and other | 23 | 23 |
Nuclear decommissioning trusts | 1,732 | 2,165 |
Total assets | 1,781 | 2,194 |
Liabilities at fair value | ||
Derivative contracts | 42 | 10 |
Total liabilities | 42 | 10 |
Net assets | 1,739 | 2,184 |
SCE | Fair Value, Measurements, Recurring | Level 3 | ||
Assets at fair value | ||
Derivative contracts | 49 | 120 |
Money market funds and other | 0 | |
Nuclear decommissioning trusts | 0 | |
Total assets | 49 | 120 |
Liabilities at fair value | ||
Derivative contracts | 5 | 12 |
Total liabilities | 5 | 12 |
Net assets | 44 | 108 |
SCE | Fair Value, Measurements, Recurring | Stocks | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,972 | 1,908 |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,972 | 1,908 |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Stocks | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Fixed Income | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 2,690 | 2,632 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,083 | 519 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 1,607 | 2,113 |
SCE | Fair Value, Measurements, Recurring | Fixed Income | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 0 | |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 227 | 499 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 1 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 102 | 447 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 2 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | 125 | $ 52 |
SCE | Fair Value, Measurements, Recurring | Short-term investments, primarily cash equivalents | Level 3 | ||
Assets at fair value | ||
Nuclear decommissioning trusts | $ 0 |
Fair Value Measurements (Parent
Fair Value Measurements (Parent) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Money market funds | $ 329 | $ 62 |
Edison International Parent and Other | Level 1 | ||
Fair Value | ||
Fair value equity investment, noncurrent | 12 | |
Money market funds | 99 | 24 |
Edison International Parent and Other | Level 2 | ||
Fair Value | ||
Short-term Investments | $ 6 | $ 5 |
Fair Value Measurements (Level
Fair Value Measurements (Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures Level 3 [Roll Forward] | ||
Transfers into or out of Level 3 | $ 0 | $ 0 |
SCE | Level 3 | ||
Fair Value Disclosures Level 3 [Roll Forward] | ||
Fair value of net assets at beginning of period | 108 | 78 |
Purchases | 8 | |
Sales | (2) | (5) |
Settlements | (63) | (117) |
Total realized/unrealized losses | 1 | 144 |
Fair value of net assets at end of period | $ 44 | $ 108 |
Fair Value Measurements (Leve_2
Fair Value Measurements (Level 3 Inputs) (Details) - SCE - Level 3 - Congestion revenue rights (GWh) - Auction prices $ in Millions | Dec. 31, 2021USD ($)$ / MWh | Dec. 31, 2020USD ($)$ / MWh |
Quantitative Information About Level 3 Measurements [Line Items] | ||
Fair Value, Assets | $ | $ 49 | $ 120 |
Fair Value, Liabilities | $ | $ 5 | $ 12 |
Minimum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (18.87) | (9.67) |
Maximum | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 43.03 | 300.47 |
Weighted Average | ||
Quantitative Information About Level 3 Measurements [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 1.46 | 2.75 |
Fair Value Measurements (Debt)
Fair Value Measurements (Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | $ 25,247 | $ 20,337 |
Fair Value | 27,718 | 23,824 |
SCE | ||
Fair Value of Long-Term Debt Recorded at Carrying Value | ||
Carrying Value | 22,110 | 17,204 |
Fair Value | $ 24,375 | $ 20,365 |
Debt and Credit Agreements (Lon
Debt and Credit Agreements (Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (1,077) | $ (1,029) |
Long-term debt | 24,170 | 19,632 |
Edison International Parent and Other | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | (700) | |
Unamortized debt discount/premium and issuance costs, net | (13) | (17) |
Long-term debt | 2,437 | 3,133 |
Edison International Parent and Other | Debentures and notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,150 | 3,150 |
Edison International Parent and Other | Debentures and notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 2.40% | |
Edison International Parent and Other | Debentures and notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 5.75% | |
SCE | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (377) | (1,029) |
Unamortized debt discount/premium and issuance costs, net | (113) | (80) |
Long-term debt | 21,733 | 16,499 |
SCE | Debentures and notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 306 | 306 |
SCE | Debentures and notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 5.06% | |
SCE | Debentures and notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 6.65% | |
SCE | First and refunding mortgage bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,314 | 16,843 |
SCE | First and refunding mortgage bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 0.70% | |
SCE | First and refunding mortgage bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 6.05% | |
SCE | Pollution-control bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 752 | 135 |
SCE | Pollution-control bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 1.45% | |
SCE | Pollution-control bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 2.63% | |
SCE | Series 2021-A senior secured recovery bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 333 | |
SCE | Series 2021-A senior secured recovery bonds | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 0.86% | |
SCE | Series 2021-A senior secured recovery bonds | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on debt (as a percent) | 2.51% | |
SCE | Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 518 | $ 324 |
Debt and Credit Agreements (Mat
Debt and Credit Agreements (Maturities) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 1,077 |
2023 | 2,598 |
2024 | 2,063 |
2025 | 1,314 |
2026 | 364 |
SCE | |
Debt Instrument [Line Items] | |
2022 | 377 |
2023 | 2,198 |
2024 | 1,563 |
2025 | 914 |
2026 | $ 364 |
Debt and Credit Agreements (Cre
Debt and Credit Agreements (Credit Facilities) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | ||
Commitment | $ 4,850 | |
Outstanding borrowings | 601 | |
Outstanding letters of credit | 195 | |
Amount available | $ 4,054 | |
Edison International Parent and Other | ||
Line of Credit Facility [Line Items] | ||
Covenant debt to total capitalization ratio | 0.70 | |
Actual debt to capitalization ratio | 0.61 | |
Commitment | $ 1,500 | |
Amount available | 1,500 | |
Edison International Parent and Other | Multi-year credit facilities | ||
Line of Credit Facility [Line Items] | ||
Commitment | 1,500 | |
Amount available | 1,500 | |
Contingent maximum available borrowing | $ 2,000 | |
Edison International Parent and Other | Multi-year credit facilities | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis points | 1.28% | |
Edison International Parent and Other | Multi-year credit facilities | Commercial paper | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 0 | $ 130 |
Weighted average interest rate (as a percent) | 0.42% | |
SCE | ||
Line of Credit Facility [Line Items] | ||
Covenant debt to total capitalization ratio | 0.65 | |
Actual debt to capitalization ratio | 0.55 | |
Commitment | $ 3,350 | |
Outstanding borrowings | 601 | |
Outstanding letters of credit | 195 | |
Amount available | 2,554 | |
SCE | Multi-year credit facilities | ||
Line of Credit Facility [Line Items] | ||
Commitment | 3,350 | |
Outstanding borrowings | 601 | |
Outstanding letters of credit | 195 | |
Amount available | 2,554 | |
Contingent maximum available borrowing | $ 4,000 | |
SCE | Multi-year credit facilities | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis points | 1.08% | |
SCE | Multi-year credit facilities | Commercial paper | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 601 | $ 725 |
Weighted average interest rate (as a percent) | 0.45% | 0.43% |
Debt and Credit Agreements (Ter
Debt and Credit Agreements (Term loan) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jan. 31, 2022 | |
0.60% term loan due 2022 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 1,200 | ||
0.60% term loan due 2022 | SOFR | |||
Debt Instrument [Line Items] | |||
Basis points | 0.60% | ||
0.35% first and refunding mortgage bonds due 2022 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 475 | ||
0.35% first and refunding mortgage bonds due 2022 | SOFR | |||
Debt Instrument [Line Items] | |||
Basis points | 0.35% | ||
0.47% first and refunding mortgage bonds due 2022 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 550 | ||
0.47% first and refunding mortgage bonds due 2022 | SOFR | |||
Debt Instrument [Line Items] | |||
Basis points | 0.47% | ||
2.75% first and refunding mortgage bonds due 2032 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 500 | ||
Interest rate on debt (as a percent) | 2.75% | ||
3.45% first and refunding mortgage bonds due 2052 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 700 | ||
Interest rate on debt (as a percent) | 3.45% | ||
Series 2021-A senior secured recovery bonds | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 338 | ||
Series 2021-A senior secured recovery bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate on debt (as a percent) | 0.86% | ||
Series 2021-A senior secured recovery bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate on debt (as a percent) | 2.51% | ||
Series 2022-A senior secured recovery bonds | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 533 | ||
Recovery Bonds, 1.98% due 2030 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 100 | ||
Interest rate on debt (as a percent) | 1.98% | ||
Recovery Bonds, 2.94% due 2044 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 305 | ||
Interest rate on debt (as a percent) | 2.94% | ||
Recovery Bonds, 3.24% due 2048 | |||
Debt Instrument [Line Items] | |||
Debt, face amount | $ 128 | ||
Interest rate on debt (as a percent) | 3.24% |
Derivative Instruments (Derivat
Derivative Instruments (Derivative) (Details) - SCE - Derivatives with contingent features - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives | ||
Aggregate fair value of all derivative liabilities with credit-risk-related contingent features | $ 1 | $ 1 |
Posted collateral | 0 | $ 0 |
Potential amount of collateral to be posted if contingencies triggered | $ 18 |
Derivative Instruments (Balance
Derivative Instruments (Balance Sheet) (Details) - SCE - Commodity derivative contracts - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Assets | ||
Gross amounts recognized | $ 76 | $ 126 |
Gross amounts offset in the consolidated balance sheets | (32) | (18) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 44 | 108 |
Derivative Liabilities | ||
Gross amounts recognized | 48 | 22 |
Gross amounts offset in the consolidated balance sheets | (32) | (18) |
Cash collateral posted | (16) | (4) |
Net amounts presented in the consolidated balance sheets | 0 | 0 |
Cash collateral posted for liability | 65 | 17 |
Net Asset | ||
Gross amounts recognized | 28 | 104 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Netting and Collateral, Total | 16 | 4 |
Net amounts presented in the consolidated balance sheets | 44 | 108 |
Other Current Assets | ||
Derivative Assets | ||
Gross amounts recognized | 70 | 103 |
Gross amounts offset in the consolidated balance sheets | (30) | (12) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 40 | 91 |
Derivative Liabilities | ||
Cash collateral posted for liability | 49 | 13 |
Other long-term assets | ||
Derivative Assets | ||
Gross amounts recognized | 6 | 23 |
Gross amounts offset in the consolidated balance sheets | (2) | (6) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 4 | 17 |
Other Current Liabilities | ||
Derivative Liabilities | ||
Gross amounts recognized | 46 | 16 |
Gross amounts offset in the consolidated balance sheets | (30) | (12) |
Cash collateral posted | (16) | (4) |
Net amounts presented in the consolidated balance sheets | 0 | 0 |
Other long-term liabilities | ||
Derivative Liabilities | ||
Gross amounts recognized | 2 | 6 |
Gross amounts offset in the consolidated balance sheets | (2) | (6) |
Cash collateral posted | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 0 | 0 |
Derivative | ||
Derivative Liabilities | ||
Cash collateral posted for liability | $ 16 | $ 4 |
Derivative Instruments (Hedging
Derivative Instruments (Hedging Activities) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gains (losses) | $ 200 | $ 87 | $ (7) |
Unrealized (losses) gains | $ (75) | $ 17 | $ (74) |
Derivative Instruments (Notiona
Derivative Instruments (Notional Values) (Details) - SCE | 12 Months Ended | |
Dec. 31, 2021GWhBcfe | Dec. 31, 2020GWhBcfe | |
Electricity options, swaps and forwards (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 1,869 | 1,581 |
Natural gas options, swaps and forwards (Bcf) | ||
Derivatives | ||
Notional volumes of derivative instruments | Bcfe | 58 | 34 |
Congestion revenue rights (GWh) | ||
Derivatives | ||
Notional volumes of derivative instruments | 33,216 | 41,151 |
Revenue (Summary) (Details)
Revenue (Summary) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||||
Total operating revenue | $ 14,905 | $ 13,578 | $ 12,347 | |
SCE | ||||
Revenue | ||||
Revenues from contracts with customers | 14,347 | 12,459 | 11,167 | |
Alternative revenue programs and other operating revenue | 527 | 1,087 | 1,139 | |
Total operating revenue | 14,874 | 13,546 | 12,306 | |
Receivables from contracts with customers | 2,300 | 1,500 | ||
Accrued unbilled revenues | 794 | 521 | ||
SCE | Earning Activities | ||||
Revenue | ||||
Revenues from contracts with customers | 7,523 | 6,920 | 6,512 | |
Alternative revenue programs and other operating revenue | 349 | 548 | 166 | |
Total operating revenue | 7,872 | 7,468 | 6,678 | |
SCE | Cost- Recovery Activities | ||||
Revenue | ||||
Revenues from contracts with customers | 6,824 | 5,539 | 4,655 | |
Alternative revenue programs and other operating revenue | 178 | 539 | 973 | |
Total operating revenue | $ 7,002 | $ 6,078 | $ 5,628 | |
2021 General Rate Case | SCE | ||||
Revenue | ||||
Approved regulatory increase (decrease) | $ 1,000 |
Revenue (Deferred) (Details)
Revenue (Deferred) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2021 | Dec. 31, 2021 | |
Revenue | ||
Proceeds from Morongo Transmission LLC | $ 400 | |
SCE | ||
Revenue | ||
Proceeds from Morongo Transmission LLC | 400 | |
SCE | West of Devers | ||
Revenue | ||
Proceeds from Morongo Transmission LLC | $ 400 | |
Annual revenue to be recognized | $ 13 | |
Deferred revenue balance | 394 | |
Deferred revenue current | 13 | |
Deferred revenue non-current | 381 | |
Revenue recognized | $ 6 |
Income Taxes (Expense (Benefit)
Income Taxes (Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 13 | $ 0 |
State | (179) | (22) | 6 |
Total current | (179) | (9) | 6 |
Deferred: | |||
Federal | 83 | (230) | (243) |
State | (40) | (66) | (41) |
Total deferred | 43 | (296) | (284) |
Total income tax (benefit) expense | (136) | (305) | (278) |
SCE | |||
Current: | |||
Federal | 0 | 12 | 0 |
State | (45) | (26) | 14 |
Total current | (45) | (14) | 14 |
Deferred: | |||
Federal | 83 | (207) | (206) |
State | (21) | (56) | (37) |
Total deferred | 62 | (263) | (243) |
Total income tax (benefit) expense | $ 17 | $ (277) | $ (229) |
Income Taxes (Deferred Tax Liab
Income Taxes (Deferred Tax Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Property | $ 856 | $ 590 |
Wildfire reserve | 558 | 1,134 |
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 517 | 515 |
Loss and credit carryforwards | 3,078 | 1,991 |
Regulatory balances | 652 | 841 |
Pension and postretirement benefits other than pensions, net | 153 | 163 |
Leases | 543 | 307 |
Other | 165 | 206 |
Sub-total | 6,522 | 5,747 |
Less: valuation allowance | 44 | 35 |
Total | 6,478 | 5,712 |
Deferred tax liabilities: | ||
Property | 9,645 | 8,879 |
Regulatory balances | 1,242 | 1,111 |
Nuclear decommissioning trust assets | 517 | 515 |
Leases | 543 | 307 |
Other | 207 | 207 |
Total | 12,154 | 11,019 |
Accumulated deferred income tax liability, net | 5,676 | 5,307 |
Operating loss carryforwards valuation allowance | 277 | 270 |
Operating loss carryforward | ||
Deferred tax assets: | ||
Less: valuation allowance | 33 | |
Capital loss from sale of SoCore Energy | ||
Deferred tax assets: | ||
Less: valuation allowance | 4 | |
Charitable contribution carryover | ||
Deferred tax assets: | ||
Less: valuation allowance | 7 | |
SCE | ||
Deferred tax assets: | ||
Property | 835 | 540 |
Wildfire reserve | 558 | 1,134 |
Nuclear decommissioning trust assets in excess of nuclear ARO liability | 517 | 515 |
Loss and credit carryforwards | 1,697 | 683 |
Regulatory balances | 652 | 841 |
Pension and postretirement benefits other than pensions, net | 30 | 35 |
Leases | 543 | 307 |
Other | 179 | 220 |
Sub-total | 5,011 | 4,275 |
Less: valuation allowance | 6 | 0 |
Total | 5,005 | 4,275 |
Deferred tax liabilities: | ||
Property | 9,633 | 8,871 |
Regulatory balances | 1,242 | 1,111 |
Nuclear decommissioning trust assets | 517 | 515 |
Leases | 543 | 307 |
Other | 186 | 192 |
Total | 12,121 | 10,996 |
Accumulated deferred income tax liability, net | 7,116 | 6,721 |
Operating loss carryforwards valuation allowance | 221 | $ 190 |
SCE | Charitable contribution carryover | ||
Deferred tax assets: | ||
Less: valuation allowance | $ 6 |
Income Taxes (NOL and Carryforw
Income Taxes (NOL and Carryforwards) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Carryforwards | |||
Loss carryforwards | $ 2,810 | ||
Credit carryforwards | 545 | ||
Deferred tax expense | 43 | $ (296) | $ (284) |
Capistrano Wind | |||
Carryforwards | |||
Deferred tax expense | 223 | 218 | |
Expire in 2022 | |||
Carryforwards | |||
Loss carryforwards | 7 | ||
Credit carryforwards | 0 | ||
Expire between 2023 to 2026 | |||
Carryforwards | |||
Loss carryforwards | 30 | ||
Credit carryforwards | 0 | ||
Expire between 2029 to 2043 | |||
Carryforwards | |||
Loss carryforwards | 1,504 | ||
Credit carryforwards | 535 | ||
No expiration date | |||
Carryforwards | |||
Loss carryforwards | 1,269 | ||
Credit carryforwards | 10 | ||
SCE | |||
Carryforwards | |||
Loss carryforwards | 1,858 | ||
Credit carryforwards | 60 | ||
Deferred tax expense | 62 | $ (263) | $ (243) |
SCE | Expire in 2022 | |||
Carryforwards | |||
Loss carryforwards | 7 | ||
Credit carryforwards | 0 | ||
SCE | Expire between 2023 to 2026 | |||
Carryforwards | |||
Loss carryforwards | 25 | ||
Credit carryforwards | 0 | ||
SCE | Expire between 2029 to 2043 | |||
Carryforwards | |||
Loss carryforwards | 702 | ||
Credit carryforwards | 60 | ||
SCE | No expiration date | |||
Carryforwards | |||
Loss carryforwards | 1,124 | ||
Credit carryforwards | $ 0 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Statutory tax rate (as a percent) | 21.00% | |||
Income from operations before income taxes | $ 789 | $ 566 | $ 1,127 | |
Provision for income tax at federal statutory rate of 21% | 166 | 119 | 237 | |
Increase (decrease) in income tax from: | ||||
State tax, net of federal benefit | (47) | (61) | (22) | |
Property-related | (233) | (320) | (303) | |
Change related to uncertain tax position | (147) | (15) | ||
Deferred tax re-measurement | (88) | |||
2018 GRC Final Decision | (80) | |||
Wildfire related charges | 31 | |||
Average rate assumption method ("ARAM") adjustment | 87 | |||
Corporate-owned life insurance cash surrender value | (8) | (8) | (8) | |
Other | 15 | (20) | (14) | |
Total income tax (benefit) expense | $ (136) | $ (305) | $ (278) | |
Effective tax rate (as a percent) | (17.20%) | (53.90%) | (24.70%) | |
SCE | ||||
Income Tax Disclosure [Line Items] | ||||
Income from operations before income taxes | $ 952 | $ 665 | $ 1,301 | |
Provision for income tax at federal statutory rate of 21% | 200 | 140 | 273 | |
Increase (decrease) in income tax from: | ||||
State tax, net of federal benefit | (33) | (52) | (13) | |
Property-related | (233) | (320) | (303) | |
Change related to uncertain tax position | (37) | (19) | ||
Deferred tax re-measurement | (88) | |||
2018 GRC Final Decision | (80) | |||
Wildfire related charges | 31 | |||
Average rate assumption method ("ARAM") adjustment | $ 87 | 87 | ||
Corporate-owned life insurance cash surrender value | (8) | (8) | (8) | |
Other | 10 | (18) | (10) | |
Total income tax (benefit) expense | $ 17 | $ (277) | $ (229) | |
Effective tax rate (as a percent) | 1.80% | (41.70%) | (17.60%) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Beginning balance | $ 679 | $ 370 | $ 338 |
Tax positions taken during the current year, Increases | 53 | 55 | 46 |
Tax positions taken during a prior year, Increases | 3 | 274 | 6 |
Tax positions taken during a prior year, decreases | (118) | (20) | (20) |
Settlements with taxing authorities | (4) | ||
Ending balance | 613 | 679 | 370 |
Unrecognized tax benefits that would impact the effective tax rate | 344 | ||
SCE | |||
Reconciliation of Unrecognized Tax Benefits | |||
Beginning balance | 320 | 282 | 249 |
Tax positions taken during the current year, Increases | 53 | 56 | 47 |
Tax positions taken during a prior year, Increases | 1 | 4 | 6 |
Tax positions taken during a prior year, decreases | (29) | (22) | (20) |
Settlements with taxing authorities | (5) | ||
Ending balance | 340 | $ 320 | $ 282 |
Unrecognized tax benefits that would impact the effective tax rate | $ 71 |
Income Taxes (Interest and Pena
Income Taxes (Interest and Penalties) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Tax settlement increase (decrease) on earnings | $ 146 | $ 146 | ||
Tax refund | 60 | |||
Accrued interest and penalties | $ 52 | |||
Net after-tax interest and penalties tax (benefit) expense | (41) | 4 | $ 4 | |
SCE | ||||
Income Tax Disclosure [Line Items] | ||||
Tax settlement increase (decrease) on earnings | 36 | 36 | ||
Accrued interest and penalties | $ 20 | 20 | 23 | |
Net after-tax interest and penalties tax (benefit) expense | $ (2) | $ 6 | $ 3 |
Compensation and Benefit Plan_2
Compensation and Benefit Plans (Employee Savings Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 97 | $ 93 | $ 82 |
SCE | |||
Defined Contribution Plans [Line Items] | |||
Employer contributions | $ 96 | $ 92 | $ 81 |
Compensation and Benefit Plan_3
Compensation and Benefit Plans (Plan Assets and Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term liabilities | $ (496) | $ (563) | |
SCE | |||
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term liabilities | (111) | (144) | |
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Expected contributions | 27 | ||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 4,476 | 4,139 | |
Service cost | 130 | 121 | $ 114 |
Interest cost | 103 | 124 | 155 |
Actuarial (gain) loss | (245) | 323 | |
Benefits paid | (293) | (231) | |
Projected benefit obligation at end of year | 4,171 | 4,476 | 4,139 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 4,171 | 3,755 | |
Actual return on plan assets | 368 | 584 | |
Employer contributions | 50 | 62 | |
Benefits paid | (293) | (230) | |
Fair value of plan assets at end of year | 4,296 | 4,171 | $ 3,755 |
Funded status at end of year | 125 | (305) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 384 | ||
Current liabilities | (26) | (24) | |
Long-term liabilities | (233) | (281) | |
Amounts recognized in the consolidated balance sheets | 125 | (305) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Prior service cost | (1) | ||
Net loss | 74 | 96 | |
Total amounts recognized in accumulated other comprehensive loss | 74 | 95 | |
Amounts recognized as a regulatory (liability)/asset | (395) | 12 | |
Total not yet recognized as income | (321) | 107 | |
Accumulated benefit obligation at end of year | 3,947 | 4,238 | |
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 4,171 | 4,476 | |
Accumulated benefit obligation | 3,947 | 4,238 | |
Fair value of plan assets | $ 4,296 | $ 4,171 | |
Weighted average assumptions used to determine obligations at end of year: | |||
Discount rate | 2.75% | 2.38% | 3.11% |
Rate of compensation increase | 4.00% | 4.00% | |
Assumed health care cost trend rates: | |||
Long-term payable | $ 132 | $ 139 | |
Gain (loss) from change in discount rate | 159 | (339) | |
Gain (loss) from demographic change | (76) | ||
Gain (loss) from valuation and experience | 69 | (48) | |
Gains (losses) from other economic assumption changes | 117 | ||
Pension Plans | SCE | |||
Pension and Other Postretirement Benefits | |||
Expected contributions | 2 | ||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 3,984 | 3,662 | |
Service cost | 127 | 119 | $ 111 |
Service cost, excluding certain liabilities | 126 | 117 | |
Interest cost | 95 | 114 | 143 |
Interest cost, excluding certain liabilities | 92 | 110 | |
Actuarial (gain) loss | (246) | 292 | |
Benefits paid | (262) | (197) | |
Projected benefit obligation at end of year | 3,694 | 3,984 | 3,662 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 3,940 | 3,541 | |
Actual return on plan assets | 348 | 551 | |
Employer contributions | 35 | 45 | |
Benefits paid | (262) | (197) | |
Fair value of plan assets at end of year | 4,061 | 3,940 | $ 3,541 |
Funded status at end of year | 367 | (44) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 384 | ||
Current liabilities | (2) | (2) | |
Long-term liabilities | (15) | (42) | |
Amounts recognized in the consolidated balance sheets | 367 | (44) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net loss | 12 | 16 | |
Total amounts recognized in accumulated other comprehensive loss | 12 | 16 | |
Amounts recognized as a regulatory (liability)/asset | (395) | 12 | |
Total not yet recognized as income | (383) | 28 | |
Accumulated benefit obligation at end of year | 3,491 | 3,776 | |
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||
Projected benefit obligation | 3,694 | 3,984 | |
Accumulated benefit obligation | 3,491 | 3,766 | |
Fair value of plan assets | $ 4,061 | $ 3,940 | |
Weighted average assumptions used to determine obligations at end of year: | |||
Discount rate | 2.75% | 2.38% | |
Rate of compensation increase | 4.00% | 4.00% | |
Assumed health care cost trend rates: | |||
Ultimate rate | 4.50% | 5.00% | 5.75% |
Net loss reclassified from other comprehensive loss | $ 32 | $ 41 | |
Gain (loss) from change in discount rate | 149 | (305) | |
Gain (loss) from demographic change | (72) | ||
Gain (loss) from valuation and experience | 83 | (61) | |
Gains (losses) from other economic assumption changes | 124 | ||
Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Expected contributions | 8 | ||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 2,073 | 2,083 | |
Service cost | 40 | 38 | $ 30 |
Interest cost | 52 | 63 | 77 |
Actuarial (gain) loss | (190) | (46) | |
Plan participants' contributions | 29 | 29 | |
Benefits paid | (100) | (94) | |
Projected benefit obligation at end of year | 1,904 | 2,073 | 2,083 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,717 | 2,465 | |
Actual return on plan assets | 119 | 309 | |
Employer contributions | 7 | 8 | |
Plan participants' contributions | 29 | 29 | |
Benefits paid | (100) | (94) | |
Fair value of plan assets at end of year | 2,772 | 2,717 | $ 2,465 |
Funded status at end of year | 868 | 644 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 876 | 663 | |
Current liabilities | (8) | (10) | |
Long-term liabilities | (9) | ||
Amounts recognized in the consolidated balance sheets | 868 | 644 | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net loss | 1 | 1 | |
Amounts recognized as a regulatory (liability)/asset | (886) | (671) | |
Total not yet recognized as income | $ (885) | $ (670) | |
Weighted average assumptions used to determine obligations at end of year: | |||
Discount rate | 2.95% | 2.67% | 3.32% |
Assumed health care cost trend rates: | |||
Rate assumed for following year | 6.25% | 6.50% | |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Gain (loss) from change in discount rate | $ 83 | $ (206) | |
Gain (loss) from demographic change | 32 | ||
Gain (loss) from valuation and experience | 113 | 169 | |
Gains from mortality change | 50 | ||
Postretirement Benefits Other Than Pensions | SCE | |||
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 2,064 | 2,074 | |
Service cost | 40 | 37 | $ 30 |
Interest cost | 52 | 63 | 77 |
Actuarial (gain) loss | (190) | (45) | |
Plan participants' contributions | 29 | 29 | |
Benefits paid | (100) | (94) | |
Projected benefit obligation at end of year | 1,895 | 2,064 | 2,074 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,717 | 2,464 | |
Actual return on plan assets | 119 | 309 | |
Employer contributions | 7 | 8 | |
Plan participants' contributions | 29 | 29 | |
Benefits paid | (100) | (93) | |
Fair value of plan assets at end of year | 2,772 | 2,717 | $ 2,464 |
Funded status at end of year | 877 | 653 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 885 | 663 | |
Current liabilities | (8) | (10) | |
Amounts recognized in the consolidated balance sheets | 877 | 653 | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Amounts recognized as a regulatory (liability)/asset | (886) | (671) | |
Total not yet recognized as income | $ (886) | $ (671) | |
Weighted average assumptions used to determine obligations at end of year: | |||
Discount rate | 2.95% | 2.67% | |
Assumed health care cost trend rates: | |||
Rate assumed for following year | 6.25% | 6.50% | |
Ultimate rate | 5.00% | 5.00% |
Compensation and Benefit Plan_4
Compensation and Benefit Plans (Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | $ 130 | $ 121 | $ 114 |
Non-service cost (benefit) | |||
Interest cost | 103 | 124 | 155 |
Expected return on plan assets | (222) | (215) | (205) |
Amortization of prior service cost | 1 | 2 | 2 |
Amortization of net (gain) loss | 11 | 10 | 7 |
Regulatory adjustment | 25 | 16 | (3) |
Total non-service benefit | (82) | (63) | (44) |
Total expense recognized | 48 | 58 | 70 |
Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Service cost | 40 | 38 | 30 |
Non-service cost (benefit) | |||
Interest cost | 52 | 63 | 77 |
Expected return on plan assets | (106) | (119) | (111) |
Amortization of prior service cost | (1) | (1) | (1) |
Amortization of net (gain) loss | (35) | (29) | (17) |
Regulatory adjustment | 51 | 49 | 29 |
Total non-service benefit | (39) | (37) | (23) |
Total expense | 1 | 1 | 7 |
SCE | |||
Non-service cost (benefit) | |||
Total non-service benefit | (123) | (102) | (70) |
SCE | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Service cost | 127 | 119 | 111 |
Non-service cost (benefit) | |||
Interest cost | 95 | 114 | 143 |
Expected return on plan assets | (211) | (203) | (194) |
Amortization of prior service cost | 1 | 1 | 2 |
Amortization of net (gain) loss | 7 | 7 | 5 |
Regulatory adjustment | 25 | 16 | (3) |
Total non-service benefit | (83) | (65) | (47) |
Total expense recognized | 44 | 54 | 64 |
SCE | Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Service cost | 40 | 37 | 30 |
Non-service cost (benefit) | |||
Interest cost | 52 | 63 | 77 |
Expected return on plan assets | (106) | (119) | (111) |
Amortization of prior service cost | (1) | (1) | (1) |
Amortization of net (gain) loss | (36) | (29) | (17) |
Regulatory adjustment | 51 | 49 | 29 |
Total non-service benefit | $ (40) | $ (37) | (23) |
Total expense | $ 7 |
Compensation and Benefit Plan_5
Compensation and Benefit Plans (Changes Recognized in OCI) (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension and Other Postretirement Benefits | |||
Net (gain) loss | $ (10) | $ 11 | $ 19 |
Amortization of net loss | (11) | (10) | (7) |
Total (gain) loss recognized in other comprehensive income | (21) | 1 | 12 |
Total recognized in expense and other comprehensive income | 27 | 59 | 82 |
SCE | |||
Pension and Other Postretirement Benefits | |||
Net (gain) loss | (5) | 9 | 21 |
Amortization of net loss | (7) | (7) | (5) |
Total (gain) loss recognized in other comprehensive income | (12) | 2 | 16 |
Total recognized in expense and other comprehensive income | $ 32 | $ 56 | $ 80 |
Compensation and Benefit Plan_6
Compensation and Benefit Plans (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postretirement Benefits Other Than Pensions | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 2.67% | 3.32% | 4.35% |
Expected long-term return on plan assets | 4.00% | 4.90% | 5.30% |
Assumed health care cost trend rates: | |||
Current year | 6.50% | 6.50% | 6.75% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
SCE | Postretirement Benefits Other Than Pensions | |||
Assumed health care cost trend rates: | |||
Ultimate rate | 5.00% | 5.00% | |
SCE | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Discount rate | 2.38% | 3.11% | 4.19% |
Rate of compensation increase | 4.00% | 4.10% | 4.10% |
Expected long-term return on plan assets | 5.50% | 6.00% | 6.50% |
Assumed health care cost trend rates: | |||
Starting rate | 3.03% | 3.61% | 4.46% |
Ultimate rate | 4.50% | 5.00% | 5.75% |
Compensation and Benefit Plan_7
Compensation and Benefit Plans (Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans | |
Years ended December 31, | |
2022 | $ 315 |
2023 | 315 |
2024 | 313 |
2025 | 308 |
2026 | 306 |
2027 - 2031 | 1,358 |
Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2022 | 78 |
2023 | 80 |
2024 | 83 |
2025 | 84 |
2026 | 86 |
2027 - 2031 | 454 |
SCE | Pension Plans | |
Years ended December 31, | |
2022 | 274 |
2023 | 273 |
2024 | 272 |
2025 | 269 |
2026 | 267 |
2027 - 2031 | 1,210 |
SCE | Postretirement Benefits Other Than Pensions | |
Years ended December 31, | |
2022 | 78 |
2023 | 80 |
2024 | 82 |
2025 | 84 |
2026 | 86 |
2027 - 2031 | $ 452 |
Compensation and Benefit Plan_8
Compensation and Benefit Plans (Pension Textual) (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Health reimbursement monthly contribution | $ | $ 200 |
Permissible range of asset class weights (percent) | 3.00% |
Assumed average equity risk premium (percent) | 5.00% |
Forecasted return on private equity and opportunistic investments (percent) | 4.00% |
Pension Plans | US Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 21.30% |
Pension Plans | Non-US Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 13.70% |
Pension Plans | Fixed Income | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 50.00% |
Pension Plans | Opportunistic Alternative Investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 15.00% |
Postretirement Benefits Other Than Pensions | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Eligibility age | 55 years |
Service period for eligibility (at least) (years) | 10 years |
Postretirement Benefits Other Than Pensions | Fixed Income | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 50.00% |
Postretirement Benefits Other Than Pensions | Opportunistic Alternative Investments | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 6.00% |
Postretirement Benefits Other Than Pensions | Global Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 44.00% |
Voluntary Employee Beneficiary Association (VEBA) | Fixed Income | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 95.00% |
Voluntary Employee Beneficiary Association (VEBA) | Global Equities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Target plan asset allocations (percent) | 5.00% |
SCE | Voluntary Employee Beneficiary Association (VEBA) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Number of plans | plan | 3 |
Compensation and Benefit Plan_9
Compensation and Benefit Plans (Pension Assets Fair Value) (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 4,323 | $ 4,194 | |
Receivables and payables, net | (27) | (23) | |
Net plan assets available for benefits | $ 4,296 | $ 4,171 | $ 3,755 |
Publicly traded equity investments located in the US (percent) | 62.00% | 59.00% | |
Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 748 | $ 797 | |
Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 1,782 | 1,651 | |
NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 1,793 | 1,746 | |
U.S. government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 1,135 | 1,157 | |
U.S. government and agency securities | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 217 | 151 | |
U.S. government and agency securities | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 918 | 1,006 | |
U.S. government and agency securities | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Corporate stocks | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 470 | $ 575 | |
Corporate stocks | Russell Indexes | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 44.00% | 40.00% | |
Corporate stocks | MSCI | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 56.00% | 60.00% | |
Corporate stocks | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 466 | $ 570 | |
Corporate stocks | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 4 | 5 | |
Corporate stocks | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Corporate bonds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 815 | 601 | |
Corporate bonds | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Corporate bonds | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 815 | 601 | |
Corporate bonds | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Collateralized mortgage obligations and other asset backed securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 61 | 54 | |
Common/collective funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 964 | $ 1,017 | |
Common/collective funds | Standard and Poor's 500 | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 41.00% | 37.00% | |
Common/collective funds | Russell 1000 Index | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 10.00% | 13.00% | |
Common/collective funds | MSCI all country world index exUS | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 38.00% | 40.00% | |
Common/collective funds | Non-index U.S. equity fund | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 9.00% | 8.00% | |
Common/collective funds | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | ||
Common/collective funds | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Common/collective funds | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 964 | $ 1,017 | |
Partnerships/joint ventures | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 688 | 569 | |
Actual plan asset allocations, percentage | 17.00% | ||
Partnerships/joint ventures | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | ||
Partnerships/joint ventures | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Partnerships/joint ventures | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 688 | 569 | |
Other investment entities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 110 | 137 | |
Other investment entities | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Other investment entities | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Other investment entities | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 110 | 137 | |
Registered investment companies | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 88 | 92 | |
Registered investment companies | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 57 | 69 | |
Registered investment companies | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Registered investment companies | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 31 | 23 | |
Interest-bearing cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 8 | 7 | |
Interest-bearing cash | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 8 | 7 | |
Interest-bearing cash | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Interest-bearing cash | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Other investments | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 45 | 39 | |
Other investments | Level 1 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
Other investments | Level 2 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 45 | $ 39 | |
Other investments | NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | ||
Private equity and venture capital funds including branded consumer products, clean and information technology and healthcare | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 62.00% | 49.00% | |
Asset backed securities including distressed mortgages | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 23.00% | ||
Publicly traded fixed income securities | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 15.00% | 19.00% | |
Broad range of financial assets in all global markets | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 3.00% | 4.00% | |
Emerging market equity securities | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 71.00% | 77.00% | |
Equity Funds | MSCI World Total Return Index | |||
Pension and Other Postretirement Benefits | |||
Performance percentage benchmark, percentage | 63.00% | 73.00% | |
Fixed Income Funds | |||
Pension and Other Postretirement Benefits | |||
Actual plan asset allocations, percentage | 35.00% | 25.00% | |
SCE | |||
Pension and Other Postretirement Benefits | |||
Net plan assets available for benefits | $ 4,061 | $ 3,940 | $ 3,541 |
Compensation and Benefit Pla_10
Compensation and Benefit Plans (OPEB Assets Fair Value) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Domestic mortgage backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 20.00% | 16.00% | |
Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 2,773 | $ 2,713 | |
Receivables and payables, net | (1) | 4 | |
Net plan assets available for benefits | $ 2,772 | $ 2,717 | $ 2,465 |
Publicly traded equity investments located in the US (percent) | 68.00% | 66.00% | |
Postretirement Benefits Other Than Pensions | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 1,002 | $ 669 | |
Postretirement Benefits Other Than Pensions | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1,120 | 1,270 | |
Postretirement Benefits Other Than Pensions | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 651 | 774 | |
Postretirement Benefits Other Than Pensions | U.S. government and agency securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 823 | 410 | |
Postretirement Benefits Other Than Pensions | U.S. government and agency securities | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 813 | 380 | |
Postretirement Benefits Other Than Pensions | U.S. government and agency securities | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 10 | 30 | |
Postretirement Benefits Other Than Pensions | U.S. government and agency securities | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Corporate stocks | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 148 | $ 227 | |
Postretirement Benefits Other Than Pensions | Corporate stocks | Russell Indexes | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Performance percentage benchmark, percentage | 73.00% | 70.00% | |
Postretirement Benefits Other Than Pensions | Corporate stocks | MSCI All Country World Index | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Performance percentage benchmark, percentage | 27.00% | 30.00% | |
Postretirement Benefits Other Than Pensions | Corporate stocks | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 145 | $ 224 | |
Postretirement Benefits Other Than Pensions | Corporate stocks | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Postretirement Benefits Other Than Pensions | Corporate stocks | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Corporate notes and bonds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 997 | 1,079 | |
Postretirement Benefits Other Than Pensions | Corporate notes and bonds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Corporate notes and bonds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 997 | 1,079 | |
Postretirement Benefits Other Than Pensions | Corporate notes and bonds | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Common/collective funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 544 | $ 693 | |
Postretirement Benefits Other Than Pensions | Common/collective funds | Non-index U.S. equity fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 25.00% | 22.00% | |
Postretirement Benefits Other Than Pensions | Common/collective funds | MSCI All Country World Index Investable Market Index | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 65.00% | 70.00% | |
Postretirement Benefits Other Than Pensions | Common/collective funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
Postretirement Benefits Other Than Pensions | Common/collective funds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Common/collective funds | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 544 | 693 | |
Postretirement Benefits Other Than Pensions | Partnerships/joint ventures | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 107 | 81 | |
Postretirement Benefits Other Than Pensions | Partnerships/joint ventures | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Partnerships/joint ventures | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Partnerships/joint ventures | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 107 | 81 | |
Postretirement Benefits Other Than Pensions | Registered investment companies | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 44 | 65 | |
Postretirement Benefits Other Than Pensions | Registered investment companies | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 44 | 65 | |
Postretirement Benefits Other Than Pensions | Registered investment companies | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Registered investment companies | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Interest-bearing cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 51 | 26 | |
Postretirement Benefits Other Than Pensions | Interest-bearing cash | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Interest-bearing cash | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 51 | 26 | |
Postretirement Benefits Other Than Pensions | Interest-bearing cash | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Other investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 59 | 132 | |
Postretirement Benefits Other Than Pensions | Other investments | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Other investments | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 59 | 132 | |
Postretirement Benefits Other Than Pensions | Other investments | NAV | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Postretirement Benefits Other Than Pensions | Collateralized mortgage obligations and other asset backed securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Receivables and payables, net | $ 150 | $ 170 | |
Postretirement Benefits Other Than Pensions | Private equity and venture capital funds including branded consumer products, clean and information technology and healthcare | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 54.00% | 46.00% | |
Postretirement Benefits Other Than Pensions | Asset backed securities including distressed mortgages | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 35.00% | 36.00% | |
Postretirement Benefits Other Than Pensions | Broad range of financial assets in all global markets | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 11.00% | 18.00% | |
Postretirement Benefits Other Than Pensions | Municipal securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 44 | $ 61 | |
Postretirement Benefits Other Than Pensions | Money Market Fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 61.00% | 51.00% | |
Postretirement Benefits Other Than Pensions | Defined Benefit Plan, Equity Securities, Small Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual plan asset allocations, percentage | 39.00% | 49.00% | |
SCE | Postretirement Benefits Other Than Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net plan assets available for benefits | $ 2,772 | $ 2,717 | $ 2,464 |
Compensation and Benefit Pla_11
Compensation and Benefit Plans (Stock Based Compensation Exp) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance incentive plan award (in shares) | 71 | ||
Share-based compensation, shares available for grant | 22 | ||
Stock-based compensation expense | $ 39 | $ 29 | $ 29 |
Income tax benefits related to stock compensation expense | 4 | 4 | 10 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 16 | 15 | 13 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 9 | 5 | 8 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 12 | 8 | 6 |
Other stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 1 | 2 |
SCE | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 20 | 13 | 14 |
Income tax benefits related to stock compensation expense | 3 | 3 | 6 |
SCE | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 8 | 7 | 7 |
SCE | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4 | 2 | 4 |
SCE | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 8 | 4 | 3 |
SCE | Other stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 |
Compensation and Benefit Pla_12
Compensation and Benefit Plans (Option Pricing Assumptions) (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, expiration period, years | 10 years | ||
Stock options, vesting period, years | 4 years | ||
Expected terms (in years) | 5 years 4 months 24 days | 5 years 2 months 12 days | 5 years 6 months |
Risk-free interest rate, minimum | 1.10% | 0.40% | 1.60% |
Risk-free interest rate, maximum | 1.30% | 0.60% | 2.30% |
Weighted average expected dividend yield | 4.50% | 4.70% | 3.90% |
Expected volatility, minimum | 26.90% | 24.90% | 21.70% |
Expected volatility, maximum | 27.10% | 26.90% | 24.10% |
Weighted average volatility | 26.90% | 25.00% | 21.80% |
Volatility period | 64 months | 63 months | 66 months |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 4.10% | 4.20% | 3.30% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 4.80% | 5.00% | 4.00% |
Compensation and Benefit Pla_13
Compensation and Benefit Plans (Stock Option Activity) (Details) - Stock options $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Stock Options | |
Beginning balance (in shares) | shares | 10,709,383 |
Grants (in shares) | shares | 2,515,015 |
Forfeited or expired (in shares) | shares | (330,916) |
Exercised (in shares) | shares | (538,656) |
Ending balance (in shares) | shares | 12,354,826 |
Vested and expected to vest (in shares) | shares | 11,974,609 |
Exercisable (in shares) | shares | 7,412,820 |
Exercise Price | |
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 63.85 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 55.04 |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | 62.49 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 48.02 |
Ending balance, weighted average exercise price (in dollars per share) | $ / shares | 62.78 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | 62.83 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 64.27 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2016 (term) | 5 years 11 months 4 days |
Vested and expected to vest at December 31, 2016 (term) | 5 years 10 months 6 days |
Exercisable at December 31, 2016 (term) | 4 years 5 months 4 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2019 | $ | $ 80 |
Exercisable at December 31, 2019 | $ | 43 |
Exercise of option, tax benefit | $ | $ 2 |
SCE | |
Stock Options | |
Beginning balance (in shares) | shares | 5,490,488 |
Grants (in shares) | shares | 1,404,603 |
Forfeited or expired (in shares) | shares | (307,607) |
Exercised (in shares) | shares | (407,330) |
Ending balance (in shares) | shares | 6,180,154 |
Vested and expected to vest (in shares) | shares | 5,997,654 |
Exercisable (in shares) | shares | 3,666,657 |
Exercise Price | |
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares | $ 62.85 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 55.14 |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | 62.65 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 48.80 |
Ending balance, weighted average exercise price (in dollars per share) | $ / shares | 62.03 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | 62.07 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 63.24 |
Remaining Contractual Term (Years) | |
Outstanding at December 31, 2016 (term) | 5 years 10 months 13 days |
Vested and expected to vest at December 31, 2016 (term) | 5 years 9 months 18 days |
Exercisable at December 31, 2016 (term) | 4 years 3 months 7 days |
Aggregate Intrinsic Value (in millions) | |
Vested and expected to vest at December 31, 2019 | $ | $ 44 |
Exercisable at December 31, 2019 | $ | 25 |
Exercise of option, tax benefit | $ | $ 2 |
Compensation and Benefit Pla_14
Compensation and Benefit Plans (Unrecognized Compensation) (Details) - Stock options $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures (in millions) | $ 18 |
Weighted average period (in years) | 2 years 4 months 24 days |
SCE | |
Pension and Other Postretirement Benefits | |
Unrecognized compensation cost, net of expected forfeitures (in millions) | $ 9 |
Weighted average period (in years) | 2 years 4 months 24 days |
Compensation and Benefit Pla_15
Compensation and Benefit Plans (Supplemental Options Data) (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (in dollars per share) | $ 7.26 | $ 8.18 | $ 8.80 |
Fair value of options vested | $ 3 | $ 2 | $ 14 |
Value of options exercised | $ 8 | $ 9 | $ 27 |
SCE | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per option granted (in dollars per share) | $ 7.30 | $ 8.16 | $ 8.83 |
Fair value of options vested | $ 3 | $ 2 | $ 7 |
Value of options exercised | $ 6 | $ 7 | $ 19 |
Compensation and Benefit Pla_16
Compensation and Benefit Plans (Nonvested Performance Share Activity) (Details) - Equity Awards | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 233,624 |
Granted (in shares) | shares | 158,442 |
Forfeited (in shares) | shares | (18,250) |
Vested (in shares) | shares | (111,008) |
Ending balance (in shares) | shares | 262,808 |
Weighted Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 66.80 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 57.70 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 62.51 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 66.06 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 61.92 |
SCE | |
Shares | |
Beginning balance (in shares) | shares | 120,644 |
Granted (in shares) | shares | 88,983 |
Forfeited (in shares) | shares | (17,306) |
Vested (in shares) | shares | (54,514) |
Ending balance (in shares) | shares | 137,807 |
Weighted Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 66.70 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 57.66 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 62.77 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 66.34 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 61.50 |
Compensation and Benefit Pla_17
Compensation and Benefit Plans (Restricted Stock Unit Activity) (Details) - Restricted stock units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock Units | |
Beginning balance (in shares) | shares | 333,873 |
Granted (in shares) | shares | 337,793 |
Forfeited (in shares) | shares | (27,622) |
Vested (in shares) | shares | (97,889) |
Ending balance (in shares) | shares | 546,155 |
Weighted Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 63.78 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 55.07 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 58.81 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 59.34 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 59.44 |
SCE | |
Restricted Stock Units | |
Beginning balance (in shares) | shares | 168,420 |
Granted (in shares) | shares | 250,490 |
Forfeited (in shares) | shares | (25,275) |
Vested (in shares) | shares | (48,703) |
Ending balance (in shares) | shares | 344,932 |
Weighted Average Grant Date Fair Value | |
Beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 63.78 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 55.12 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 59.18 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 59.33 |
Ending balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 58.45 |
Investments (Trust Value) (Deta
Investments (Trust Value) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value | $ 4,870 | $ 4,833 |
Repurchase agreements | ||
Fair Value | ||
Fair Value | 37 | 138 |
SCE | ||
Fair Value | ||
Amortized Cost | 2,555 | 2,494 |
Fair Value | 4,870 | 4,833 |
SCE | Stocks | ||
Fair Value | ||
Fair Value | 1,972 | 1,908 |
SCE | Municipal bonds | ||
Fair Value | ||
Amortized Cost | 875 | 1,013 |
SCE | U.S. government and agency securities | ||
Fair Value | ||
Amortized Cost | 1,095 | 740 |
SCE | Corporate bonds | ||
Fair Value | ||
Amortized Cost | 386 | 460 |
Fair Value | 446 | |
SCE | Short-term investments and receivables/payables | ||
Fair Value | ||
Amortized Cost | 199 | 281 |
SCE | Fair Value, Measurements, Recurring | ||
Fair Value | ||
Fair Value | 4,889 | 5,039 |
SCE | Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value | ||
Fair Value | 1,033 | 1,218 |
SCE | Fair Value, Measurements, Recurring | U.S. government and agency securities | ||
Fair Value | ||
Fair Value | 1,212 | 864 |
SCE | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value | ||
Fair Value | 550 | |
SCE | Fair Value, Measurements, Recurring | Short-term investments and receivables/payables | ||
Fair Value | ||
Fair Value | $ 207 | $ 293 |
Investments (Trust Info) (Detai
Investments (Trust Info) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Holdings [Line Items] | ||
Unrealized holding gains, net of losses | $ 2,100 | $ 2,100 |
Deferred income taxes related to unrealized gains | 517 | 515 |
Nuclear decommissioning trusts, net of deferred tax | $ 4,400 | $ 4,300 |
Investments (Trust gain loss) (
Investments (Trust gain loss) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Gross realized gains | $ 339 | $ 255 | $ 87 |
Gross realized losses | (24) | (6) | (2) |
Net unrealized gains for equity securities | $ 103 | $ 176 | $ 343 |
Investments (Other) (Details)
Investments (Other) (Details) - Edison International Parent and Other $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investment Holdings [Line Items] | |
Unrealized gain, pre-tax | $ 4 |
Marketable securities | 12 |
Equity investments | $ 3 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Textual) (Details) - SCE | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory Assets [Line Items] | ||
Regulatory assets, energy derivatives, low range of contract expiration (in years) | 2 years | |
Regulatory assets, energy derivatives, high range of contract expiration (in years) | 5 years | |
Regulatory assets related to deferred income taxes, recovery period, low range (in years) | 1 year | |
Regulatory assets related to deferred income taxes, recovery period, high range (in years) | 60 years | |
Low end of the range of remaining original amortization (in years) | 10 years | |
High end of the range of remaining original amortization (in years) | 40 years | |
Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Return rate earned on assets included in rate base (as a percent) | 7.68% | 7.68% |
Regulatory Assets and Liabili_4
Regulatory Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 1,778 | $ 1,314 |
Regulatory assets: Non-current | 7,660 | 7,120 |
SCE | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1,778 | 1,314 |
Regulatory assets: Non-current | 7,660 | 7,120 |
Total regulatory assets | 9,438 | 8,434 |
SCE | Regulatory balancing accounts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1,591 | 1,127 |
Regulatory assets: Non-current | 1,897 | 1,794 |
SCE | Power contracts | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 168 | 165 |
Regulatory assets: Non-current | 71 | 239 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 19 | 22 |
Regulatory assets: Non-current | 120 | 106 |
SCE | Deferred income taxes, net of liabilities | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | 4,770 | 4,475 |
SCE | Pension and other postretirement benefits | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | 12 | |
SCE | Unamortized investments, net of accumulated amortization | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | 114 | 114 |
SCE | Unamortized loss on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | 121 | 133 |
SCE | Environmental remediation | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | 242 | $ 247 |
SCE | Recoverable assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets: Non-current | $ 325 |
Regulatory Assets and Liabili_5
Regulatory Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | $ 603 | $ 569 |
Long-term regulatory liabilities | 8,981 | 8,589 |
SCE | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 603 | 569 |
Long-term regulatory liabilities | 8,981 | 8,589 |
Total regulatory liabilities | 9,584 | 9,158 |
SCE | Revenue subject to refund | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 553 | 471 |
Long-term regulatory liabilities | 648 | 1,062 |
SCE | Energy derivatives | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 25 | 87 |
SCE | Other regulatory assets or liabilities | ||
Regulatory Liabilities [Line Items] | ||
Current regulatory liabilities | 25 | 11 |
Long-term regulatory liabilities | 30 | 48 |
SCE | Costs of removal | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,552 | 2,595 |
SCE | Re-measurement of deferred taxes | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,315 | 2,283 |
SCE | Recoveries in excess of ARO liabilities | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | 2,155 | 1,930 |
SCE | Other postretirement benefits | ||
Regulatory Liabilities [Line Items] | ||
Long-term regulatory liabilities | $ 1,281 | $ 671 |
Regulatory Assets and Liabili_6
Regulatory Assets and Liabilities (Balancing Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory Assets and Liabilities | ||
Percentage of vegetation management | 115.00% | |
Percentage of Wildfire Covered Conductor Program | 110.00% | |
SCE | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ 2,287 | $ 1,388 |
SCE | Energy resource recovery account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 759 | (89) |
SCE | Portfolio allocation balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (183) | 497 |
SCE | New system generation balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 73 | (10) |
SCE | Public purpose programs and energy efficiency programs | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (1,066) | (1,130) |
SCE | Base revenue requirement balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 849 | 622 |
SCE | GRC wildfire mitigation balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 12 | |
SCE | Greenhouse gas auction revenue and low carbon fuel standard revenue | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | (298) | (125) |
SCE | FERC balancing accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 55 | 12 |
SCE | Wildfire and drought restoration accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 299 | 361 |
SCE | Wildfire expense memorandum account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 1,456 | 1,104 |
SCE | COVID 19-related memorandum accounts | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 94 | 176 |
SCE | Customer service re-platform memorandum account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 128 | 30 |
SCE | Tax accounting memorandum account and pole loading balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | 171 | (35) |
SCE | Other balancing account | ||
Regulatory Assets and Liabilities | ||
Net regulatory assets (liabilities) | $ (62) | $ (25) |
Commitments and Contingencies_2
Commitments and Contingencies (Purchase obligations) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other contractual obligations | |||
Long-term Purchase Commitment [Line Items] | |||
Purchase cost | $ 62 | $ 80 | $ 110 |
Power Purchase Agreement | |||
Long-term Purchase Commitment [Line Items] | |||
2022 | 3,131 | ||
2023 | 3,026 | ||
2024 | 2,460 | ||
2025 | 2,347 | ||
2026 | 2,358 | ||
Thereafter | 20,179 | ||
Total | 33,501 | ||
Purchase cost | 4,700 | $ 3,800 | $ 3,700 |
PPA Operating Leases | |||
Long-term Purchase Commitment [Line Items] | |||
Long-term lease expense | $ 396 |
Commitments and Contingencies_3
Commitments and Contingencies (Unrecorded) (Details) - SCE - Power Purchase Agreement $ in Millions | Dec. 31, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2022 | $ 15 |
2023 | 49 |
2024 | 74 |
2025 | 79 |
2026 | 79 |
Thereafter | $ 844 |
Commitments and Contingencies_4
Commitments and Contingencies (Other commitments) (Details) - SCE $ in Millions | Dec. 31, 2021USD ($) |
Other Commitments [Line Items] | |
2022 | $ 47 |
2023 | 47 |
2024 | 48 |
2025 | 47 |
2026 | 37 |
Thereafter | 222 |
Total | $ 448 |
Commitments and Contingencies_5
Commitments and Contingencies (Wildfires and Mudslides) (Details) $ in Millions | 1 Months Ended | ||||||
Sep. 30, 2020USD ($)aitemindividual | Oct. 31, 2019aindividualitem | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2018aitemindividual | Jan. 31, 2018individualitem | Dec. 04, 2017aindividualitem | |
2019/2020 Wildfires | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | $ | $ 123 | ||||||
Expected insurance recoveries | $ | 75 | ||||||
2017/2018 Wildfire/Mudslide Events | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | $ | 1,734 | $ 4,383 | |||||
SCE | |||||||
Loss Contingencies [Line Items] | |||||||
Regulatory assets | $ | 9,438 | 8,434 | |||||
SCE | Saddle Ridge Fire | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 9,000 | ||||||
Structures destroyed | 19 | ||||||
Structures damaged | 88 | ||||||
Fatalities | individual | 1 | ||||||
Number of injured firefighters | individual | 8 | ||||||
SCE | Bobcat fire | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 116,000 | ||||||
Number of injured firefighters | individual | 6 | ||||||
Estimated fire suppression costs | $ | $ 80 | ||||||
SCE | Bobcat fire | Homes | |||||||
Loss Contingencies [Line Items] | |||||||
Structures destroyed | 87 | ||||||
Structures damaged | 28 | ||||||
SCE | Bobcat fire | Commercial property | |||||||
Loss Contingencies [Line Items] | |||||||
Structures destroyed | 1 | ||||||
SCE | Bobcat fire | Minor structures | |||||||
Loss Contingencies [Line Items] | |||||||
Structures destroyed | 83 | ||||||
Structures damaged | 19 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | |||||||
Loss Contingencies [Line Items] | |||||||
Regulatory assets | $ | $ 165 | ||||||
Expected insurance recoveries | $ | $ 708 | ||||||
SCE | December 2017 Wildfires | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 280,000 | ||||||
Structures destroyed | 1,343 | ||||||
Fatalities | individual | 2 | ||||||
SCE | November 2018 Wildfires | |||||||
Loss Contingencies [Line Items] | |||||||
Acres burned | a | 100,000 | ||||||
Structures destroyed | 1,643 | ||||||
Structures damaged | 364 | ||||||
Fatalities | individual | 3 | ||||||
Additional fatalities | individual | 4 | ||||||
SCE | Montecito Mudslides | |||||||
Loss Contingencies [Line Items] | |||||||
Structures destroyed | 135 | ||||||
Structures damaged | 324 | ||||||
Fatalities | individual | 21 | ||||||
Additional fatalities presumed | individual | 2 |
Commitments and Contingencies_6
Commitments and Contingencies (Wildfires litigation) (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2021USD ($) | Jan. 31, 2021$ / claim | Oct. 31, 2020USD ($)$ / claim | Apr. 30, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)plaintiff | Dec. 31, 2020USD ($) | |
2017/2018 Wildfire/Mudslide Events | |||||||
Loss Contingencies [Line Items] | |||||||
Payments | $ 3,914 | ||||||
Charge for wildfire-related claims | 1,734 | $ 4,383 | |||||
Increase in accrued estimated losses to reflect best estimate | 1,265 | 1,297 | |||||
Expected revenue from FERC customers | 67 | 84 | |||||
Total pre-tax charge | 1,198 | 1,213 | |||||
Total after-tax charge | 894 | 874 | |||||
2017/2018 Wildfire/Mudslide Events | Settled Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | 131 | ||||||
2017/2018 Wildfire/Mudslide Events | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | 1,600 | ||||||
2017/2018 Wildfire/Mudslide Events | Aggregate | |||||||
Loss Contingencies [Line Items] | |||||||
Payments | 5,700 | ||||||
2019/2020 Wildfires | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | $ 123 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | SED Settlement | |||||||
Loss Contingencies [Line Items] | |||||||
Charge for wildfire-related claims | $ 550 | ||||||
Fine to State | 110 | ||||||
Shareholder-funded safety measures costs | 65 | ||||||
Third-party uninsured claims cost recovery waiver | $ 375 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Local Public Entity Settlements | |||||||
Loss Contingencies [Line Items] | |||||||
Payments | $ 360 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | TKM Subrogation Settlement | |||||||
Loss Contingencies [Line Items] | |||||||
Payments | $ 1,200 | ||||||
Payment agreement for each dollar of claim | $ / claim | 0.555 | ||||||
SCE | 2017/2018 Wildfire/Mudslide Events | Individual Plaintiff Settlements | |||||||
Loss Contingencies [Line Items] | |||||||
Number of plaintiffs | plaintiff | 5,000 | ||||||
Payments | $ 1,700 | $ 300 | |||||
SCE | 2017/2018 Wildfire/Mudslide Events | Aggregate | |||||||
Loss Contingencies [Line Items] | |||||||
Increase in accrued estimated losses to reflect best estimate | $ 7,500 | ||||||
SCE | November 2018 Wildfires | Woolsey Subrogation Settlement | |||||||
Loss Contingencies [Line Items] | |||||||
Payments | $ 2,200 | ||||||
Payment agreement for each dollar of claim | $ / claim | 0.67 |
Commitments and Contingencies_7
Commitments and Contingencies (Wildfire loss accrual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
2017/2018 Wildfire/Mudslide Events | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | $ 4,383 | |
Increase in accrued estimated losses to reflect best estimate | 1,265 | $ 1,297 |
Amounts paid | (3,914) | |
Ending balance | 1,734 | 4,383 |
2017/2018 Wildfire/Mudslide Events | Other Current Liabilities | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 2,231 | |
Ending balance | 131 | 2,231 |
2017/2018 Wildfire/Mudslide Events | Other long-term liabilities | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 2,281 | |
Fixed payments to be made under settlement agreements | 1,733 | |
Ending balance | 2,281 | |
November 2018 Wildfires | ||
Loss Contingency Accrual [Roll Forward] | ||
Litigation settlement | 2,212 | |
November 2018 Wildfires | Other long-term liabilities | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 2,152 | |
Ending balance | 1,603 | 2,152 |
Other Wildfire Related Claims | ||
Loss Contingency Accrual [Roll Forward] | ||
Litigation settlement | 19 | |
Other Wildfire Related Claims | Other long-term liabilities | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 129 | |
Ending balance | $ 130 | $ 129 |
Commitments and Contingencies_8
Commitments and Contingencies (Wildfire loss expense) (Details) - 2017/2018 Wildfire/Mudslide Events - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Charge for wildfire-related claims | $ 1,265 | $ 1,297 |
Expected revenue from FERC customers | (67) | (84) |
Total pre-tax charge | 1,198 | 1,213 |
Income tax benefit | (304) | (339) |
Total after-tax charge | 894 | $ 874 |
SCE | ||
Loss Contingencies [Line Items] | ||
Expected insurance recoveries | $ (708) |
Commitments and Contingencies_9
Commitments and Contingencies (Wildfire Insurance Recovery) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
2019/2020 Wildfires | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |
Balance ending | $ 75 |
SCE | |
Loss Contingencies [Line Items] | |
Wildfire insurance coverage | 1,000 |
Self insurance | 50 |
SCE | 2017/2018 Wildfire/Mudslide Events | |
Loss Contingencies [Line Items] | |
Wildfire insurance coverage | 1,000 |
Self insurance | 10 |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |
Balance beginning | 708 |
Insurance recoveries | (708) |
SCE | November 2018 Wildfires | |
Loss Contingencies [Line Items] | |
Wildfire insurance coverage | 1,000 |
Self insurance | $ 10 |
Commitments and Contingencie_10
Commitments and Contingencies (Wildfire Insurance Coverage) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2019 | |
Loss Contingencies [Line Items] | |||||
Wildfire insurance expense | $ 450 | $ 450 | |||
SCE | |||||
Loss Contingencies [Line Items] | |||||
Potential impairment | 186 | ||||
Regulatory assets | $ 8,434 | 9,438 | 8,434 | ||
Wildfire insurance coverage | 1,000 | ||||
Co-insurance | 75 | ||||
Self insurance | 50 | ||||
Coverage net | 875 | ||||
Wildfire insurance expense | 425 | ||||
Revenue requirement wildfire insurance expense | $ 460 | ||||
Requested increase (decrease) in revenue requirement | 214 | ||||
SCE | Wildfire insurance costs | |||||
Loss Contingencies [Line Items] | |||||
Requested increase (decrease) in revenue requirement | 204 | ||||
2017/2018 Wildfire/Mudslide Events | |||||
Loss Contingencies [Line Items] | |||||
Increase in accrued estimated losses to reflect best estimate | 1,265 | 1,297 | |||
2017/2018 Wildfire/Mudslide Events | SCE | |||||
Loss Contingencies [Line Items] | |||||
Expected insurance recoveries | $ 708 | 708 | |||
Insurance settlements and recoveries | 708 | ||||
Restoration capital expenditures | $ 60 | ||||
Denied rate increase | 8 | ||||
Potential impairment | 186 | ||||
Expected FERC cumulative recoveries | 300 | ||||
Regulatory assets | 165 | ||||
Wildfire insurance coverage | 1,000 | ||||
Self insurance | 10 | ||||
2017/2018 Wildfire/Mudslide Events | SCE | Aggregate | |||||
Loss Contingencies [Line Items] | |||||
Increase in accrued estimated losses to reflect best estimate | 7,500 | ||||
Litigation settlement | 5,900 | ||||
Insurance settlements and recoveries | 2,000 | ||||
November 2018 Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement | $ 2,212 | ||||
November 2018 Wildfires | SCE | |||||
Loss Contingencies [Line Items] | |||||
Wildfire insurance coverage | 1,000 | ||||
Self insurance | $ 10 | ||||
Thomas and Rye wildfires | SCE | |||||
Loss Contingencies [Line Items] | |||||
Denied rate increase | $ 6 |
Commitments and Contingencie_11
Commitments and Contingencies (Environmental Remediation) (Details) - SCE $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)site | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Jointly Owned Utility Plant Interests [Line Items] | |||
Recorded estimated minimum liability | $ 260 | ||
Environmental remediation regulatory assets | 242 | ||
Expected recovery from incentive mechanism | $ 39 | ||
Expected recovery from incentive mechanism (percent) | 90.00% | ||
Recovery through customer rates | $ 203 | ||
Recovery through customer rates (percent) | 100.00% | ||
Environmental remediation expense | $ 9 | $ 7 | $ 9 |
Clean up (period) | 40 years | ||
Expected remediation costs, low end of range | $ 7 | ||
Expected remediation costs, high end of range | $ 26 | ||
Material sites | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Identified remediation sites (number) | site | 26 | ||
Minimum estimated liability | $ 1 | ||
Recorded estimated minimum liability | 257 | ||
Cost may exceed liability | 114 | ||
Material sites | San Onofre | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Recorded estimated minimum liability | $ 169 | ||
Immaterial sites | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Identified remediation sites (number) | site | 14 | ||
Recorded estimated minimum liability | $ 3 | ||
Cost may exceed liability | $ 9 |
Commitments and Contingencie_12
Commitments and Contingencies (Nuclear) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Palo Verde (nuclear) | |
Loss Contingencies [Line Items] | |
Federal loss limit, bodily injury and property damage from nuclear incident | $ 13,500 |
San Onofre | |
Loss Contingencies [Line Items] | |
Federal loss limit, bodily injury and property damage from nuclear incident | 560 |
SCE | |
Loss Contingencies [Line Items] | |
Limit on retroactive premium adjustments assessment, per year | 30 |
SCE | Palo Verde (nuclear) | |
Loss Contingencies [Line Items] | |
Minimum federal requirement of nuclear property insurance | 1,100 |
Maximum per incident | 65 |
Maximum per incident annual | 10 |
Maximum per incident, prior events | 255 |
Maximum per incident, prior events, annually | 38 |
SCE | San Onofre | |
Loss Contingencies [Line Items] | |
Minimum federal requirement of nuclear property insurance | 50 |
SCE and other owners of San Onofre and Palo Verde | |
Loss Contingencies [Line Items] | |
Maximum private primary insurance | $ 450 |
Commitments and Contingencie_13
Commitments and Contingencies (Upstream Lighting Program) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2021 | Jan. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2021 | |
Upstream Lighting Program | |||||
Loss Contingencies [Line Items] | |||||
Incentives paid to manufacturers | $ 91 | ||||
Requested manufacturer incentives refund | $ 92 | ||||
Fines | 140 | ||||
Remedy offered | $ 21 | ||||
Upstream Lighting Program, ESPI | |||||
Loss Contingencies [Line Items] | |||||
Incentives received | $ 3.5 | ||||
Incentives receivable | $ 1.3 | ||||
CPUC requested award refund | $ 33 |
Leases (Life) (Details)
Leases (Life) (Details) - SCE | Dec. 31, 2021 |
Power Purchase Agreement | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 2 years |
Power Purchase Agreement | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 20 years |
Office Leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 3 years |
Office Leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 72 years |
Other operating leases | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years |
Other operating leases | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 13 years |
Leases (Lease Payments) (Detail
Leases (Lease Payments) (Details) - SCE - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Lease liabilities | $ 1,925 | $ 1,085 |
Finance Leases | ||
2022 | 1 | |
2023 | 1 | |
Thereafter | 5 | |
Total lease payments | 7 | |
Amount representing interest | 4 | |
Lease liabilities | 3 | $ 4 |
PPA Operating Leases | ||
Operating Leases | ||
2022 | 579 | |
2023 | 482 | |
2024 | 73 | |
2025 | 73 | |
2026 | 70 | |
Thereafter | 698 | |
Total lease payments | 1,975 | |
Amount representing interest | 262 | |
Lease liabilities | 1,713 | |
Other operating leases | ||
Operating Leases | ||
2022 | 44 | |
2023 | 36 | |
2024 | 30 | |
2025 | 27 | |
2026 | 24 | |
Thereafter | 110 | |
Total lease payments | 271 | |
Amount representing interest | 59 | |
Lease liabilities | $ 212 |
Leases (Balance Sheet) (Details
Leases (Balance Sheet) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating leases: | |||
Operating lease right-of-use assets | $ 1,932 | $ 1,088 | |
Current portion of operating lease liabilities | 582 | 215 | |
Operating lease liabilities | $ 1,350 | $ 873 | |
Finance leases included in: | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Public Utilities, Property, Plant and Equipment, Net | Public Utilities, Property, Plant and Equipment, Net | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
SCE | |||
Operating leases: | |||
Operating lease right-of-use assets | $ 1,925 | $ 1,085 | |
Current portion of operating lease liabilities | 582 | 214 | |
Operating lease liabilities | 1,343 | 871 | |
Total operating lease liabilities | 1,925 | 1,085 | |
Finance leases included in: | |||
Utility property, plant and equipment, gross | 4 | 4 | |
Accumulated depreciation | (1) | ||
Utility property, plant and equipment, net | 3 | 4 | |
Other long-term liabilities | 3 | 4 | |
Total finance lease liabilities | 3 | 4 | |
SCE | PPA Operating Leases | |||
Operating leases: | |||
Total operating lease liabilities | 1,713 | ||
Finance leases included in: | |||
Operating ROU assets obtained in exchange for lease obligations | 1,084 | 463 | |
SCE | Other operating leases | |||
Operating leases: | |||
Total operating lease liabilities | 212 | ||
Finance leases included in: | |||
Operating ROU assets obtained in exchange for lease obligations | $ 71 | $ 58 | $ 34 |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Total lease cost | $ 2,989 | $ 2,076 | $ 2,252 |
PPA Operating Leases | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 305 | 111 | 118 |
Finance lease cost | 1 | 1 | 1 |
Variable lease cost | 2,097 | 1,917 | 2,087 |
Short term lease cost | 539 | ||
Total lease cost | 2,942 | 2,029 | 2,206 |
Other operating leases | |||
Lessee, Lease, Description [Line Items] | |||
Total lease cost | $ 47 | $ 47 | $ 46 |
Leases (Other Information) (Det
Leases (Other Information) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Weighted average remaining finance lease term (in years) | 15 years 8 months 1 day | 16 years 8 months 1 day | 11 years 6 months 3 days |
Finance leases weighted average discount rate | 11.29% | 11.29% | 8.76% |
PPA Operating Leases | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 305 | $ 111 | $ 118 |
Financing cash flows from PPA finance leases | 1 | 1 | $ 1 |
Operating ROU assets obtained in exchange for lease obligations | $ 1,084 | $ 463 | |
Weighted average remaining operating lease term (in years) | 8 years 1 month 28 days | 9 years 9 months | 16 years 18 days |
Operating leases weighted average discount rate | 2.43% | 3.12% | 4.46% |
Other operating leases | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 45 | $ 44 | $ 44 |
Operating ROU assets obtained in exchange for lease obligations | $ 71 | $ 58 | $ 34 |
Weighted average remaining operating lease term (in years) | 11 years 1 month 20 days | 12 years 1 month 17 days | 12 years 8 months 23 days |
Operating leases weighted average discount rate | 3.34% | 3.63% | 3.88% |
Leases (Lessor) (Details)
Leases (Lessor) (Details) - SCE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor | |||
Lease income | $ 16 | $ 17 | $ 18 |
2022 | 11 | ||
2023 | 10 | ||
2024 | 8 | ||
2025 | 7 | ||
2026 | 6 | ||
Thereafter | 124 | ||
Total | $ 166 | ||
Minimum | |||
Lessor | |||
Finance lease term | 10 years | ||
Maximum | |||
Lessor | |||
Finance lease term | 65 years |
Equity (Issuances) (Details)
Equity (Issuances) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2019 | |
Class of Stock [Line Items] | |||
Equity contribution | $ 900 | ||
Preferred stock | |||
Class of Stock [Line Items] | |||
Proceeds received, net of offering costs | $ 2,000 | ||
Liquidation value (in dollars per share) | $ 1,000 | ||
Redemption amount (in dollars per share) | 1,000 | ||
Redemption amount following change in criteria (in dollars per share) | $ 1,020 | ||
Preferred stock | SCE | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 0 | ||
Offering expenses | $ 44 | $ 44 | |
Series A | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 1,250,000 | ||
Preferred Stock, dividend rate, (as a percent) | 5.375% | ||
Dividend reset period | 5 years | ||
Margin rate for dividend rate reset (as a percent) | 4.698% | ||
Series B | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 750,000 | ||
Preferred Stock, dividend rate, (as a percent) | 5.00% | ||
Dividend reset period | 5 years | ||
Margin rate for dividend rate reset (as a percent) | 3.901% | ||
At-the-market Program (ATM) | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 0 | ||
Aggregate sale price | $ 1,500 | ||
Aggregate sales price remaining | $ 1,300 | ||
401(K) | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 522,400 | 1,644,500 | |
Proceeds received, net of offering costs | $ 30 | $ 99 | |
Stock compensation awards | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 629,092 | 387,425 | |
Proceeds received, net of offering costs | $ 25 | $ 16 | |
In lieu of dividend payment | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 293,031 | 280,707 | |
Proceeds received, net of offering costs | $ 17 | $ 17 | |
Optional cash investments | |||
Class of Stock [Line Items] | |||
Stock issued (in shares) | 26,475 | 35,999 | |
Proceeds received, net of offering costs | $ 2 | $ 2 |
Equity (Equity Contributions) (
Equity (Equity Contributions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Equity | |
Equity contribution | $ 900 |
Equity (SCE Preferred and Prefe
Equity (SCE Preferred and Preference) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 50,000,000 | |
Redemption of preferred and preference stock | $ 308 | |
Preferred / preference stock | $ 1,977 | |
Edison International's preference stock of utility | 1,901 | 1,901 |
SCE | ||
Class of Stock [Line Items] | ||
Redemption of preferred and preference stock | 308 | |
Preferred / preference stock | 1,945 | $ 1,945 |
SCE | 4.32% Series | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 4.32% | |
Redemption price (in dollars per share) | $ 28.75 | |
SCE | 4.08% Series | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 4.08% | |
Redemption price (in dollars per share) | $ 25.50 | |
SCE | 4.24% Series | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 4.24% | |
Redemption price (in dollars per share) | $ 25.80 | |
SCE | 4.78% Series | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 4.78% | |
Redemption price (in dollars per share) | $ 25.80 | |
SCE | Preferred stock | ||
Class of Stock [Line Items] | ||
Dividends in arrears preferred stock | 0 | |
Redemption of preferred and preference stock | $ 0 | $ 120 |
Redemption loss | (9) | |
Stock issued (in shares) | 0 | |
Preferred / preference stock | $ 1,945 | 1,945 |
Less issuance costs | $ (44) | (44) |
SCE | 6.25% Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 6.25% | |
Redemption price (in dollars per share) | $ 1,000 | |
Shares Outstanding | 350,000 | |
Dividends Declared per Share | $ 62.500 | |
Preferred / preference stock | $ 350 | 350 |
SCE | 5.10% Series G Preferred Stock | ||
Class of Stock [Line Items] | ||
Redemption of preferred and preference stock | 180 | |
Preferred Stock, dividend rate, (as a percent) | 5.10% | |
Redemption price (in dollars per share) | $ 2,500 | |
Redemption loss | (6) | |
Shares Outstanding | 88,004 | |
Dividends Declared per Share | $ 127.500 | |
Preferred / preference stock | $ 220 | 220 |
SCE | 5.75% Series H Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 5.75% | |
Redemption price (in dollars per share) | $ 2,500 | |
Shares Outstanding | 110,004 | |
Dividends Declared per Share | $ 143.750 | |
Preferred / preference stock | $ 275 | 275 |
SCE | 5.375% Series J Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 5.375% | |
Redemption price (in dollars per share) | $ 2,500 | |
Shares Outstanding | 130,004 | |
Dividends Declared per Share | $ 134.375 | |
Preferred / preference stock | $ 325 | 325 |
SCE | 5.45% Series K Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 5.45% | |
Redemption price (in dollars per share) | $ 2,500 | |
Shares Outstanding | 120,004 | |
Dividends Declared per Share | $ 136.250 | |
Preferred / preference stock | $ 300 | 300 |
SCE | 5.00% Series L Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred Stock, dividend rate, (as a percent) | 5.00% | |
Redemption price (in dollars per share) | $ 2,500 | |
Shares Outstanding | 190,004 | |
Dividends Declared per Share | $ 125 | |
Preferred / preference stock | $ 475 | $ 475 |
SCE | Cumulative preferred stock, $100 par value | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 100 | |
Preferred stock, shares authorized | 12,000,000 | |
SCE | Cumulative preferred stock $25 par value | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 25 | |
Preferred stock, shares authorized | 24,000,000 | |
SCE | No par value | ||
Class of Stock [Line Items] | ||
Preferred stock, par value (in dollars per share) | $ 0 | |
Preferred stock, shares authorized | 50,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 15,949 | $ 15,496 | $ 12,652 |
Pension and PBOP - net loss: | |||
Other comprehensive income (loss), net of tax | 15 | (9) | |
Ending balance | 17,789 | 15,949 | 15,496 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (69) | (69) | (50) |
Pension and PBOP - net loss: | |||
Other comprehensive income (loss), net of tax | 15 | (9) | |
Ending balance | (54) | (69) | (69) |
Accumulated Defined Benefit Plans Adjustment | |||
Pension and PBOP - net loss: | |||
Other comprehensive income (loss) before reclassifications | 7 | (8) | |
Reclassified from accumulated other comprehensive loss | 8 | 8 | |
Other comprehensive income (loss), net of tax | 15 | ||
SCE | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 18,650 | 17,827 | 13,785 |
Pension and PBOP - net loss: | |||
Other comprehensive income (loss), net of tax | 9 | (2) | (11) |
Ending balance | 19,835 | 18,650 | 17,827 |
SCE | Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (41) | (39) | (23) |
Pension and PBOP - net loss: | |||
Other comprehensive income (loss), net of tax | 9 | (2) | (11) |
Ending balance | (32) | (41) | $ (39) |
SCE | Accumulated Defined Benefit Plans Adjustment | |||
Pension and PBOP - net loss: | |||
Other comprehensive income (loss) before reclassifications | 4 | (7) | |
Reclassified from accumulated other comprehensive loss | 5 | 5 | |
Other comprehensive income (loss), net of tax | $ 9 | $ (2) |
Other Income (Details)
Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income And Expense [Line Items] | |||
Total other income and (expenses) | $ 237 | $ 251 | $ 193 |
SCE | |||
Other Income And Expense [Line Items] | |||
Equity allowance for funds used during construction | 118 | 121 | 101 |
Increase in cash surrender value of life insurance policies and life insurance benefits | 40 | 66 | 39 |
Interest income | 3 | 20 | 37 |
Net periodic benefit income - non-service components | 123 | 102 | 70 |
Civic, political and related activities and donations | (39) | (42) | (46) |
Other income and (expenses) | (12) | (12) | (6) |
Total other income and (expenses) | 233 | 255 | 195 |
Edison International Parent and Other | |||
Other Income And Expense [Line Items] | |||
Net periodic benefit income - non-service components | (2) | (2) | (3) |
Unrealized gains on equity securities | 4 | ||
Other income and (expenses) | $ 2 | $ (2) | $ 1 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash payments (receipts): | |||
Interest, net of amounts capitalized | $ 887 | $ 836 | $ 705 |
Income taxes, net | (88) | (34) | (85) |
Common Stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 266 | 251 | 231 |
Preferred stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 11 | 11 | 12 |
SCE | |||
Cash payments (receipts): | |||
Interest, net of amounts capitalized | 760 | 713 | 615 |
Income taxes, net | (88) | (50) | (164) |
Non-cash financing and investing activities: | |||
Accrued capital expenditures | 668 | 730 | 643 |
SCE | Common Stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | 325 | 200 | |
SCE | Preferred stock | |||
Non-cash financing and investing activities: | |||
Dividends declared but not paid | $ 11 | $ 11 | $ 12 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Wildfire insurance expense | $ 450 | $ 450 | ||
SCE | ||||
Related Party Transaction [Line Items] | ||||
Insurance receivable due from affiliates | 268 | |||
Wildfire insurance expense | 425 | |||
SCE | Wildfire liability insurance | Wholly-owned subsidiary | ||||
Related Party Transaction [Line Items] | ||||
Wildfire-related insurance premiums | $ 25 | 185 | 176 | $ 260 |
Insurance purchased but not reinsured | $ 24 | |||
Nonadmitted insurance tax (as a percent) | 3.00% | |||
Insurance receivable due from affiliates | 268 | |||
Prepaid Insurance | 52 | 56 | ||
Wildfire insurance expense | $ 192 | $ 189 | $ 173 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | ||||
Cash and cash equivalents | $ 390 | $ 87 | ||
Other current assets | 249 | 292 | ||
Total current assets | 5,491 | 5,061 | ||
Other long-term assets | 1,485 | 860 | ||
Total assets | 74,745 | 69,372 | ||
Liabilities and equity: | ||||
Short-term debt | 2,354 | 2,398 | ||
Current portion of long-term debt | 1,077 | 1,029 | ||
Other current liabilities | 1,667 | 1,612 | ||
Total current liabilities | 8,609 | 10,277 | ||
Long-term debt | 24,170 | 19,632 | ||
Other long-term liabilities | 3,105 | 2,910 | ||
Total equity | 17,789 | 15,949 | $ 15,496 | $ 12,652 |
Total liabilities and equity | 74,745 | 69,372 | ||
Condensed Statements of Income: | ||||
Interest income from affiliates | 14,905 | 13,578 | 12,347 | |
Operating, interest and other expenses | 13,428 | 12,361 | 10,572 | |
Operating income | 1,477 | 1,217 | 1,775 | |
Income before income taxes | 789 | 566 | 1,127 | |
Income tax (benefit) expense | (136) | (305) | (278) | |
Net income | 925 | 871 | 1,405 | |
Preferred stock dividend requirement of Edison International | 60 | |||
Net income available to common shareholders | 759 | 739 | 1,284 | |
Condensed Statements of Comprehensive Income | ||||
Net income | 925 | 871 | 1,405 | |
Other comprehensive income, net of tax | 15 | (9) | ||
Comprehensive income attributable to Edison International | 834 | 739 | 1,275 | |
Condensed Statements of Cash Flows: | ||||
Net cash provided by operating activities | 11 | 1,263 | (307) | |
Cash flows from financing activities: | ||||
Long-term debt issued | 5,412 | 3,073 | 3,696 | |
Long-term debt repaid | (1,037) | (1,099) | (82) | |
Short-term debt issued | 2,654 | 2,994 | 1,750 | |
Short-term debt repaid | (2,255) | (1,126) | (1,750) | |
Common stock issued | 32 | 912 | 2,391 | |
Preferred stock issued, net | 1,977 | |||
Commercial paper (repayments) borrowing, net | (254) | 304 | (172) | |
Common stock dividends paid | (988) | (928) | (810) | |
Preferred stock dividends paid | (35) | |||
Net cash provided by financing activities | 5,445 | 3,727 | 4,903 | |
Net cash used in investing activities | (5,151) | (4,971) | (4,678) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 305 | 19 | (82) | |
Cash, cash equivalents and restricted cash at beginning of year | 89 | 70 | 152 | |
Cash, cash equivalents and restricted cash at end of year | 394 | 89 | 70 | |
Edison International | ||||
Assets: | ||||
Cash and cash equivalents | 52 | 3 | ||
Other current assets | 403 | 43 | ||
Total current assets | 455 | 46 | ||
Investments in subsidiaries | 18,924 | 17,706 | ||
Deferred income taxes | 697 | 675 | ||
Other long-term assets | 68 | 71 | ||
Total assets | 20,144 | 18,498 | ||
Liabilities and equity: | ||||
Short-term debt | 129 | |||
Current portion of long-term debt | 700 | 0 | ||
Other current liabilities | 583 | 636 | ||
Total current liabilities | 1,283 | 765 | ||
Long-term debt | 2,438 | 3,133 | ||
Other long-term liabilities | 535 | 552 | ||
Total equity | 15,888 | 14,048 | ||
Total liabilities and equity | 20,144 | 18,498 | ||
Condensed Statements of Income: | ||||
Interest income from affiliates | 0 | 1 | 5 | |
Operating, interest and other expenses | 176 | 189 | 150 | |
Operating income | (176) | (188) | (145) | |
Equity in earnings (loss) of subsidiaries | 956 | 851 | 1,385 | |
Income before income taxes | 780 | 663 | 1,240 | |
Income tax (benefit) expense | (39) | (76) | (44) | |
Net income | 819 | 739 | 1,284 | |
Preferred stock dividend requirement of Edison International | 60 | 0 | 0 | |
Net income available to common shareholders | 759 | 739 | 1,284 | |
Condensed Statements of Comprehensive Income | ||||
Net income | 819 | 739 | 1,284 | |
Other comprehensive income, net of tax | 15 | (9) | ||
Comprehensive income attributable to Edison International | 834 | 739 | 1,275 | |
Condensed Statements of Cash Flows: | ||||
Net cash provided by operating activities | 817 | 1,171 | 181 | |
Cash flows from financing activities: | ||||
Long-term debt issued | 0 | 400 | 1,399 | |
Long-term debt issuance costs | 0 | (3) | (9) | |
Long-term debt repaid | 0 | (400) | 0 | |
Short-term debt issued | 0 | 800 | 1,000 | |
Short-term debt repaid | 0 | (800) | (1,000) | |
Common stock issued | 32 | 912 | 2,391 | |
Preferred stock issued, net | 1,977 | 0 | 0 | |
Payable due to affiliates | (13) | 135 | 5 | |
Commercial paper (repayments) borrowing, net | (130) | 129 | (1) | |
Payments for stock-based compensation | (3) | (3) | (27) | |
Receipts from stock-based compensation | 31 | 21 | 39 | |
Common stock dividends paid | (988) | (928) | (810) | |
Preferred stock dividends paid | (35) | 0 | 0 | |
Net cash provided by financing activities | 871 | 263 | 2,987 | |
Capital contributions to affiliate | (1,639) | (1,446) | (3,258) | |
Dividends from affiliate | 0 | 0 | 8 | |
Net cash used in investing activities | (1,639) | (1,446) | (3,250) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 49 | (12) | (82) | |
Cash, cash equivalents and restricted cash at beginning of year | 3 | 15 | 97 | |
Cash, cash equivalents and restricted cash at end of year | $ 52 | $ 3 | $ 15 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Parent (Notes) (Details) $ / shares in Units, $ in Millions | Jan. 01, 2020 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2021USD ($) | May 31, 2019USD ($) |
Debt and Credit Agreements | ||||||||
Commitment | $ 4,850 | $ 4,850 | ||||||
Outstanding borrowings | (601) | (601) | ||||||
Amount available | $ 4,054 | 4,054 | ||||||
Equity | ||||||||
Equity contribution | $ 900 | |||||||
Series A | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 1,250,000 | |||||||
Preferred Stock, dividend rate, (as a percent) | 5.375% | |||||||
Margin rate for dividend rate reset (as a percent) | 4.698% | 4.698% | ||||||
Series B | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 750,000 | |||||||
Preferred Stock, dividend rate, (as a percent) | 5.00% | |||||||
Margin rate for dividend rate reset (as a percent) | 3.901% | 3.901% | ||||||
Edison International | ||||||||
Basis of Presentation | ||||||||
Cash dividends received from consolidated subsidiaries | $ 975 | $ 1,300 | $ 400 | |||||
Debt and Credit Agreements | ||||||||
Covenant debt to total capitalization ratio | 0.70 | 0.70 | ||||||
Actual debt to capitalization ratio | 0.61 | 0.61 | ||||||
Equity | ||||||||
Proceeds received, net of offering costs | $ 2,000 | |||||||
Equity contribution | 900 | |||||||
Related Party Transactions | ||||||||
Expenses from services provided by SCE | 2 | 2 | 2 | |||||
Interest expense from loans due to affiliates | 5 | 4 | $ 5 | |||||
Current receivables due from affiliates | $ 361 | 361 | 43 | |||||
Current payables due to affiliates | 211 | 211 | 323 | |||||
Long-term receivables due from affiliate | 52 | 52 | 68 | |||||
Long-term payables due to affiliates | 227 | 227 | 219 | |||||
Edison International | 2.40% Senior notes due 2022 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 400 | $ 400 | $ 400 | |||||
Interest rate on debt (as a percent) | 2.40% | 2.40% | 2.40% | |||||
Edison International | 3.125% Senior notes due 2022 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 300 | $ 300 | $ 300 | |||||
Interest rate on debt (as a percent) | 3.125% | 3.125% | 3.125% | |||||
Edison International | 2.95% Senior notes due 2023 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 400 | $ 400 | $ 400 | |||||
Interest rate on debt (as a percent) | 2.95% | 2.95% | 2.95% | |||||
Edison International | 3.55% Senior note due 2024 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 500 | $ 500 | $ 500 | |||||
Interest rate on debt (as a percent) | 3.55% | 3.55% | 3.55% | |||||
Edison International | 4.95% Senior notes due 2025 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 400 | $ 400 | $ 400 | |||||
Interest rate on debt (as a percent) | 4.95% | 4.95% | 4.95% | |||||
Edison International | 5.75% Senior notes due 2027 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 600 | $ 600 | $ 600 | |||||
Interest rate on debt (as a percent) | 5.75% | 5.75% | 5.75% | |||||
Edison International | 4.125% Senior notes due 2028 | ||||||||
Debt and Credit Agreements | ||||||||
Long-term debt | $ 550 | $ 550 | $ 550 | |||||
Interest rate on debt (as a percent) | 4.125% | 4.125% | 4.125% | |||||
Edison International | Multi-year credit facilities | ||||||||
Debt and Credit Agreements | ||||||||
Commitment | $ 1,500 | $ 1,500 | ||||||
Outstanding borrowings | 0 | 0 | ||||||
Amount available | $ 1,500 | $ 1,500 | ||||||
Contingent maximum available borrowing | $ 2,000 | |||||||
Edison International | Series A | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 1,250,000 | |||||||
Preferred Stock, dividend rate, (as a percent) | 5.375% | |||||||
Liquidation value (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | ||||||
Margin rate for dividend rate reset (as a percent) | 4.698% | 4.698% | ||||||
Edison International | Series B | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 750,000 | |||||||
Preferred Stock, dividend rate, (as a percent) | 5.00% | |||||||
Margin rate for dividend rate reset (as a percent) | 3.901% | 3.901% | ||||||
At-the-market Program (ATM) | ||||||||
Equity | ||||||||
Aggregate sale price | $ 1,500 | |||||||
Aggregate sales price remaining | $ 1,300 | $ 1,300 | ||||||
Stock issued (in shares) | shares | 0 | |||||||
At-the-market Program (ATM) | Edison International | ||||||||
Equity | ||||||||
Aggregate sale price | $ 1,500 | |||||||
Aggregate sales price remaining | $ 1,300 | $ 1,300 | ||||||
Stock issued (in shares) | shares | 0 | 0 | ||||||
401(K) | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 522,400 | 1,644,500 | ||||||
Proceeds received, net of offering costs | $ 30 | $ 99 | ||||||
401(K) | Edison International | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 522,400 | 1,644,500 | ||||||
Proceeds received, net of offering costs | $ 30 | $ 99 | ||||||
In lieu of dividend payment | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 293,031 | 280,707 | ||||||
Proceeds received, net of offering costs | $ 17 | $ 17 | ||||||
In lieu of dividend payment | Edison International | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 293,031 | 280,707 | ||||||
Proceeds received, net of offering costs | $ 17 | $ 17 | ||||||
Stock compensation awards | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 629,092 | 387,425 | ||||||
Proceeds received, net of offering costs | $ 25 | $ 16 | ||||||
Stock compensation awards | Edison International | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 629,092 | 387,425 | ||||||
Proceeds received, net of offering costs | $ 25 | $ 16 | ||||||
Optional cash investments | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 26,475 | 35,999 | ||||||
Proceeds received, net of offering costs | $ 2 | $ 2 | ||||||
Optional cash investments | Edison International | ||||||||
Equity | ||||||||
Stock issued (in shares) | shares | 35,999 | |||||||
Proceeds received, net of offering costs | $ 2 | |||||||
SCE | ||||||||
Basis of Presentation | ||||||||
Weighted-average equity component authorization (as a percent) | 52.00% | 48.00% | 45.20% | |||||
Weighted-average common equity component authorization, set by CPUC remaining over number of months (in months) | 37 months | 37 months | ||||||
Wildfire related charge incurred after tax | $ 1,800 | |||||||
Spot rate equity ratio | 47.70% | |||||||
Waiver threshold percent | 47.70% | |||||||
Weighted-average common equity component of total capitalization percent | 48.70% | |||||||
Debt and Credit Agreements | ||||||||
Commitment | $ 3,350 | 3,350 | ||||||
Outstanding borrowings | (601) | (601) | ||||||
Amount available | $ 2,554 | $ 2,554 | ||||||
Covenant debt to total capitalization ratio | 0.65 | 0.65 | ||||||
Actual debt to capitalization ratio | 0.55 | 0.55 | ||||||
Related Party Transactions | ||||||||
Current receivables due from affiliates | $ 268 | |||||||
SCE | Multi-year credit facilities | ||||||||
Debt and Credit Agreements | ||||||||
Commitment | $ 3,350 | $ 3,350 | ||||||
Outstanding borrowings | (601) | (601) | ||||||
Amount available | 2,554 | 2,554 | ||||||
Contingent maximum available borrowing | $ 4,000 | $ 4,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for uncollectible amounts | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | $ 188 | $ 49 | $ 51 |
Charged to Costs and Expenses | 44 | 46 | 32 |
Charged to Other Accounts | 91 | 120 | 0 |
Deductions | 14 | 27 | 34 |
Balance at End of Period | 309 | 188 | 49 |
Allowance for uncollectible amounts | Customers | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 175 | 35 | 31 |
Charged to Costs and Expenses | 33 | 36 | 22 |
Charged to Other Accounts | 91 | 120 | 0 |
Deductions | 6 | 16 | 18 |
Balance at End of Period | 293 | 175 | 35 |
Allowance for uncollectible amounts | All others | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 13 | 14 | 20 |
Charged to Costs and Expenses | 11 | 10 | 10 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 8 | 11 | 16 |
Balance at End of Period | 16 | 13 | 14 |
Tax valuation allowance | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 35 | 35 | 36 |
Charged to Costs and Expenses | 9 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 1 |
Balance at End of Period | 44 | 35 | 35 |
Tax valuation allowance | Operating loss carryforward | |||
Movement in Valuation and Qualifying Accounts | |||
Valuation allowance increase (decrease) | 3 | ||
Tax valuation allowance | Charitable contribution carryover | |||
Movement in Valuation and Qualifying Accounts | |||
Valuation allowance increase (decrease) | 6 | ||
SCE | Allowance for uncollectible amounts | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 188 | 49 | 51 |
Charged to Costs and Expenses | 44 | 46 | 32 |
Charged to Other Accounts | 91 | 120 | 0 |
Deductions | 14 | 27 | 34 |
Balance at End of Period | 309 | 188 | 49 |
SCE | Allowance for uncollectible amounts | Customers | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 175 | 35 | 31 |
Charged to Costs and Expenses | 33 | 36 | 22 |
Charged to Other Accounts | 91 | 120 | 0 |
Deductions | 6 | 16 | 18 |
Balance at End of Period | 293 | 175 | 35 |
SCE | Allowance for uncollectible amounts | All others | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at Beginning of Period | 13 | 14 | 20 |
Charged to Costs and Expenses | 11 | 10 | 10 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 8 | 11 | 16 |
Balance at End of Period | 16 | $ 13 | $ 14 |
SCE | Tax valuation allowance | |||
Movement in Valuation and Qualifying Accounts | |||
Charged to Costs and Expenses | 6 | ||
Charged to Other Accounts | 0 | ||
Deductions | 0 | ||
Balance at End of Period | 6 | ||
SCE | Tax valuation allowance | Charitable contribution carryover | |||
Movement in Valuation and Qualifying Accounts | |||
Valuation allowance increase (decrease) | $ 6 |