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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2018
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Commission
File Number
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Exact Name of Registrant
as specified in its charter
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State or Other Jurisdiction of
Incorporation or Organization
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IRS Employer
Identification Number
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1-9936
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EDISON INTERNATIONAL
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California
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95-4137452
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1-2313
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SOUTHERN CALIFORNIA EDISON COMPANY
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California
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95-1240335
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EDISON INTERNATIONAL
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SOUTHERN CALIFORNIA EDISON COMPANY
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2244 Walnut Grove Avenue
(P.O. Box 976)
Rosemead, California 91770
(Address of principal executive offices)
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2244 Walnut Grove Avenue
(P.O. Box 800)
Rosemead, California 91770
(Address of principal executive offices)
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(626) 302-2222
(Registrant's telephone number, including area code)
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(626) 302-1212
(Registrant's telephone number, including area code)
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
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Common Stock outstanding as of July 23, 2018:
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Edison International
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325,811,206 shares
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Southern California Edison Company
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434,888,104 shares
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SEC Form 10-Q Reference Number
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Part I, Item 2
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Part I, Item 3
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Part I, Item 1
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Part I, Item 4
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Part II, Item 1
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Part II, Item 2
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Part II, Item 6
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2017 Form 10-K
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Edison International's and SCE's combined Annual Report on Form 10-K for the year-ended December 31, 2017
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AFUDC
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allowance for funds used during construction
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ALJ
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administrative law judge
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ARO(s)
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asset retirement obligation(s)
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Bcf
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billion cubic feet
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bonus depreciation
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Current federal tax deduction of a percentage of the qualifying property placed in service during periods permitted under tax laws
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BRRBA
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Base Revenue Requirement Balancing Account
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CAISO
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California Independent System Operator
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Cal Fire
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California Department of Forestry and Fire Protection
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CCAs
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Community Choice Aggregators which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses
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CPUC
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California Public Utilities Commission
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December 2017 Wildfires
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several wind-driven wildfires, including the Thomas Fire, that occurred in December 2017 and impacted portions of SCE's service territory
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DERs
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distributed energy resources
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DOE
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U.S. Department of Energy
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DRP
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Distributed Resources Plan
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Edison Energy
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Edison Energy, LLC, a wholly-owned subsidiary of Edison Energy Group that advises and provides energy solutions to large energy users
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Edison Energy Group
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Edison Energy Group, Inc., the holding company for subsidiaries engaged in competitive businesses focused on providing energy services, including distributed generation and/or storage, to commercial and industrial customers
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EME
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Edison Mission Energy
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EME Settlement Agreement
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Settlement Agreement by and among Edison Mission Energy, Edison International and the Consenting Noteholders identified therein, dated February 18, 2014
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ERRA
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Energy Resource Recovery Account
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FASB
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Financial Accounting Standards Board
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FERC
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Federal Energy Regulatory Commission
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GAAP
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generally accepted accounting principles
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GHG
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greenhouse gas
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GRC
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general rate case
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GWh
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gigawatt-hours
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HLBV
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hypothetical liquidation at book value
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IRS
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Internal Revenue Service
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Joint Proxy Statement
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Edison International's and SCE's definitive Proxy Statement filed with the SEC in connection with Edison International's and SCE's Annual Shareholders' Meeting held on April 26, 2018
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MD&A
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Management's Discussion and Analysis of Financial Condition and Results
of Operations in this report
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MHI
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Mitsubishi Heavy Industries, Inc. and related companies
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Montecito Mudslides
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the mudslides and flooding in Montecito, Santa Barbara County, that occurred in January 2018
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MW
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megawatts
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MWdc
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megawatts measured for solar projects representing the accumulated peak capacity of all the solar modules
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NDCTP
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Nuclear Decommissioning Cost Triennial Proceeding
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NEIL
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Nuclear Electric Insurance Limited
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NEM
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net energy metering
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NERC
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North American Electric Reliability Corporation
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NOL
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net operating loss
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NRC
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Nuclear Regulatory Commission
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ORA
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CPUC's Office of Ratepayers Advocates
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OII
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Order Instituting Investigation
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OII Parties
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SCE, SDG&E, The Alliance for Nuclear Responsibility, The California Large Energy Consumers Association, California State University, Citizens Oversight dba Coalition to Decommission San Onofre, the Coalition of California Utility Employees, the Direct Access Customer Coalition, Ruth Henricks, ORA, TURN, and Women's Energy Matters, all of whom are parties to the Revised San Onofre Settlement Agreement
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Palo Verde
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nuclear electric generating facility located near Phoenix, Arizona in which SCE holds a 15.8% ownership interest
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PBOP(s)
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postretirement benefits other than pension(s)
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Prior San Onofre Settlement Agreement
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San Onofre OII Settlement Agreement by and among TURN, ORA, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth, dated November 20, 2014
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Revised San Onofre
Settlement Agreement
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Revised San Onofre OII Settlement Agreement among OII Parties, dated January 30, 2018
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ROE
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return on common equity
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S&P
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Standard & Poor's Ratings Services
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San Onofre
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retired nuclear generating facility located in south
San Clemente, California in which SCE holds a 78.21% ownership interest
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San Onofre OII Settlement Agreement
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Settlement Agreement by and among SCE, TURN, ORA, SDG&E, the Coalition of California Utility Employees, and Friends of the Earth, dated November 20, 2014
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SCE
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Southern California Edison Company
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SDG&E
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San Diego Gas & Electric
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SEC
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U.S. Securities and Exchange Commission
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SED
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Safety and Enforcement Division of the CPUC
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SoCalGas
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Southern California Gas Company
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SoCore Energy
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SoCore Energy LLC, a former subsidiary of Edison Energy Group that was sold in April 2018
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TAMA
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Tax Accounting Memorandum Account
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Tax Reform
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Tax Cuts and Jobs Act signed into law on December 22, 2017
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TURN
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The Utility Reform Network
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US EPA
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U.S. Environmental Protection Agency
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•
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ability of SCE to recover its costs through regulated rates, including costs related to uninsured wildfire-related and mudslide-related liabilities, spending on grid modernization and other capital spending incurred prior to explicit regulatory approval;
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•
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ability to obtain sufficient insurance at a reasonable cost, including insurance relating to SCE's nuclear facilities and wildfire-related and mudslide-related exposure, and to recover the costs of such insurance or, in the absence of insurance, the ability to recover uninsured losses;
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•
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decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities, including determinations of authorized rates of return or return on equity, the 2018 GRC, the recoverability of wildfire-related and mudslide-related costs, and delays in regulatory actions;
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•
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ability of Edison International or SCE to borrow funds and access the bank and capital markets on reasonable terms;
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•
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actions by credit rating agencies to downgrade our credit ratings or those of our subsidiaries or to place those ratings on negative watch or outlook;
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•
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risks associated with the decommissioning of San Onofre, including those related to public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel, and cost overruns;
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•
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extreme weather-related incidents and other natural disasters (including earthquakes and events caused, or exacerbated, by climate change, such as wildfires), which could cause, among other things, public safety and operational issues;
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•
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risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure due to CCAs;
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•
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risks inherent in SCE's transmission and distribution infrastructure investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, power curtailment costs (payments due under power contracts in the event there is insufficient transmission to enable acceptance of power delivery), changes in the CAISO's transmission plans, and governmental approvals;
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•
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risks associated with the operation of transmission and distribution assets and power generating facilities, including public safety issues, failure, availability, efficiency and output of equipment, and availability and cost of spare parts;
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•
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physical security of Edison International's and SCE's critical assets and personnel and the cybersecurity of Edison International's and SCE's critical information technology systems for grid control, and business, employee and customer data;
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•
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ability of Edison International to develop competitive businesses, manage new business risks, and recover and earn a return on its investment in newly developed or acquired businesses;
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•
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changes in tax laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could affect recorded deferred tax assets and liabilities and effective tax rate;
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•
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changes in the fair value of investments and other assets;
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•
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changes in interest rates and rates of inflation, including escalation rates (which may be adjusted by public utility regulators);
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•
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governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the NERC, CAISO, Western Electricity Council, and similar regulatory bodies in adjoining regions;
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•
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availability and creditworthiness of counterparties and the resulting effects on liquidity in the power and fuel markets and/or the ability of counterparties to pay amounts owed in excess of collateral provided in support of their obligations;
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•
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cost and availability of labor, equipment and materials;
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•
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potential for penalties or disallowance for non-compliance with applicable laws and regulations; and
|
•
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cost of fuel for generating facilities and related transportation, which could be impacted by, among other things, disruption of natural gas storage facilities, to the extent not recovered through regulated rate cost escalation provisions or balancing accounts.
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•
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Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenues or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.
|
•
|
Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.
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|
Three months ended June 30, 2018
|
Three months ended June 30, 2017
|
||||||||||||||||
(in millions)
|
Earning
Activities |
Cost-
Recovery Activities |
Total
Consolidated |
Earning Activities
|
Cost-Recovery Activities
|
Total Consolidated
|
||||||||||||
Operating revenue
|
$
|
1,535
|
|
$
|
1,268
|
|
$
|
2,803
|
|
$
|
1,584
|
|
$
|
1,369
|
|
$
|
2,953
|
|
Purchased power and fuel
|
—
|
|
1,112
|
|
1,112
|
|
—
|
|
1,175
|
|
1,175
|
|
||||||
Operation and maintenance
1
|
512
|
|
182
|
|
694
|
|
473
|
|
202
|
|
675
|
|
||||||
Depreciation and amortization
|
462
|
|
—
|
|
462
|
|
510
|
|
—
|
|
510
|
|
||||||
Property and other taxes
|
97
|
|
—
|
|
97
|
|
84
|
|
1
|
|
85
|
|
||||||
Other operating income
|
(1
|
)
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Total operating expenses
|
1,070
|
|
1,294
|
|
2,364
|
|
1,067
|
|
1,378
|
|
2,445
|
|
||||||
Operating income
|
465
|
|
(26
|
)
|
439
|
|
517
|
|
(9
|
)
|
508
|
|
||||||
Interest expense
|
(162
|
)
|
(2
|
)
|
(164
|
)
|
(146
|
)
|
—
|
|
(146
|
)
|
||||||
Other income and expenses
1
|
22
|
|
28
|
|
50
|
|
24
|
|
9
|
|
33
|
|
||||||
Income before income taxes
|
325
|
|
—
|
|
325
|
|
395
|
|
—
|
|
395
|
|
||||||
Income tax (benefits) expense
|
(2
|
)
|
—
|
|
(2
|
)
|
57
|
|
—
|
|
57
|
|
||||||
Net income
|
327
|
|
—
|
|
327
|
|
338
|
|
—
|
|
338
|
|
||||||
Preferred and preference stock dividend requirements
|
30
|
|
—
|
|
30
|
|
31
|
|
—
|
|
31
|
|
||||||
Net income available for common stock
|
$
|
297
|
|
$
|
—
|
|
$
|
297
|
|
$
|
307
|
|
$
|
—
|
|
$
|
307
|
|
Net income available for common stock
|
|
|
$
|
297
|
|
|
|
$
|
307
|
|
||||||||
Less:
|
|
|
|
|
|
|
||||||||||||
Non-core earnings
|
|
|
—
|
|
|
|
—
|
|
||||||||||
Core earnings
2
|
|
|
$
|
297
|
|
|
|
$
|
307
|
|
1
|
Expenses for the three months ended June 30, 2017 were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans.
For further information, see Note 1 in the "Notes to Consolidated Financial Statements."
|
2
|
See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."
|
•
|
Lower operating revenue of $49 million primarily due to the following:
|
•
|
A decrease of $10 million in CPUC revenue primarily resulting from recognizing 2018 revenue based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and the impact of Tax Reform, partially offset by a $17 million revenue reduction recorded in 2017 for a refund to customers of prior overcollections. See "Management Overview—2018 General Rate Case" for further information.
|
•
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A decrease in FERC revenue of $16 million primarily due to the reduction in the federal corporate income tax rate resulting from Tax Reform.
|
•
|
A decrease in revenue related to San Onofre of $49 million related to the 2017 recovery of amortization of the San Onofre regulatory asset (offset in depreciation and amortization below) and authorized return as provided by the Prior San Onofre Settlement Agreement. There was no revenue recorded in 2018 for San Onofre as a result of the Revised San Onofre Settlement Agreement (see "Management Overview—Permanent Retirement of San Onofre" for further information).
|
•
|
An increase in revenue of $23 million related to tax balancing account activities (offset in income taxes below), consisting of $41 million of lower 2018 incremental tax benefits refunded to customers partially offset by $18 million resulting from the amortization of excess deferred tax assets as a result of Tax Reform. See the year-ended 2017 MD&A, "Management Overview—Tax Reform" for further information.
|
•
|
Higher operation and maintenance costs of $39 million primarily due to higher insurance premiums associated with wildfire insurance (see "Management Overview—Southern California Wildfires—Current Wildfire Insurance Coverage" for further information).
|
•
|
Lower depreciation and amortization expense of $48 million primarily related to the amortization of the San Onofre regulatory asset in 2017 (offset in revenue above) and lower intangible plant amortization.
|
•
|
Higher property and other taxes of $13 million primarily due to higher assessed values for property taxes in 2018.
|
•
|
Higher interest expense of $16 million primarily due to increased borrowings and higher interest on balancing account overcollections.
|
•
|
Lower income tax expense of $59 million primarily due to lower pre-tax income for the second quarter of 2018 at a lower federal income tax rate. In addition, SCE had lower tax benefits refunded to customers in 2018 offset by tax benefits from the amortization of excess deferred tax assets as a result of Tax Reform (offset in revenue above). See the year-ended 2017 MD&A, "Management Overview—Tax Reform" for further information.
|
•
|
Lower purchased power and fuel costs of $63 million primarily driven by the receipt of settlement funds related to the California energy crisis of 2000 and 2001 and higher congestion revenue right credits, partially offset by higher power volume experienced in 2018 relative to 2017.
|
•
|
Lower operation and maintenance expense of $20 million primarily driven by lower employee benefit costs and lower spending on various public purpose programs.
|
•
|
Higher other income and expenses of $19 million primarily driven by higher net periodic benefit income related to the non-service cost components in 2018 relative to 2017. See "Notes to Consolidated Financial Statements—Note 9. Compensation and Benefit Plans" for further information.
|
|
Six months ended June 30, 2018
|
Six months ended June 30, 2017
|
||||||||||||||||
(in millions)
|
Earning
Activities |
Cost-
Recovery Activities |
Total
Consolidated |
Earning Activities
|
Cost-Recovery Activities
|
Total Consolidated
|
||||||||||||
Operating revenue
|
$
|
3,048
|
|
$
|
2,309
|
|
$
|
5,357
|
|
$
|
3,136
|
|
$
|
2,273
|
|
$
|
5,409
|
|
Purchased power and fuel
|
—
|
|
2,038
|
|
2,038
|
|
—
|
|
1,959
|
|
1,959
|
|
||||||
Operation and maintenance
1
|
1,021
|
|
324
|
|
1,345
|
|
922
|
|
333
|
|
1,255
|
|
||||||
Depreciation and amortization
|
921
|
|
—
|
|
921
|
|
1,007
|
|
—
|
|
1,007
|
|
||||||
Property and other taxes
|
202
|
|
—
|
|
202
|
|
181
|
|
1
|
|
182
|
|
||||||
Other operating income
|
(2
|
)
|
—
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Total operating expenses
|
2,142
|
|
2,362
|
|
4,504
|
|
2,110
|
|
2,293
|
|
4,403
|
|
||||||
Operating income
|
906
|
|
(53
|
)
|
853
|
|
1,026
|
|
(20
|
)
|
1,006
|
|
||||||
Interest expense
|
(317
|
)
|
(2
|
)
|
(319
|
)
|
(287
|
)
|
—
|
|
(287
|
)
|
||||||
Other income and expenses
1
|
46
|
|
55
|
|
101
|
|
48
|
|
20
|
|
68
|
|
||||||
Income before income taxes
|
635
|
|
—
|
|
635
|
|
787
|
|
—
|
|
787
|
|
||||||
Income tax (benefits) expense
|
(8
|
)
|
—
|
|
(8
|
)
|
69
|
|
—
|
|
69
|
|
||||||
Net income
|
643
|
|
—
|
|
643
|
|
718
|
|
—
|
|
718
|
|
||||||
Preferred and preference stock dividend requirements
|
60
|
|
—
|
|
60
|
|
62
|
|
—
|
|
62
|
|
||||||
Net income available for common stock
|
$
|
583
|
|
$
|
—
|
|
$
|
583
|
|
$
|
656
|
|
$
|
—
|
|
$
|
656
|
|
Net income available for common stock
|
|
|
$
|
583
|
|
|
|
$
|
656
|
|
||||||||
Less:
|
|
|
|
|
|
|
||||||||||||
Non-core earnings
|
|
|
—
|
|
|
|
—
|
|
||||||||||
Core earnings
2
|
|
|
$
|
583
|
|
|
|
$
|
656
|
|
1
|
Expenses for the six months ended June 30, 2017 were updated to reflect the implementation of the accounting standard update for net periodic benefit costs related to the defined benefit pension and other postretirement plans. For further information, see Note 1 in the "Notes to Consolidated Financial Statements."
|
2
|
See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."
|
•
|
Lower operating revenue of $88 million primarily due to the following:
|
•
|
A decrease of $49 million in CPUC revenue primarily resulting from recognizing 2018 revenue based on the 2017 authorized revenue requirement, adjusted for the July 2017 cost of capital decision and the impact of Tax Reform, partially offset by a $17 million revenue reduction in 2017 for a refund to customers of prior overcollections. See "Management Overview—2018 General Rate Case" for further information.
|
•
|
A decrease in FERC revenue of $32 million primarily due to the reduction in the federal corporate income tax rate resulting from Tax Reform.
|
•
|
A decrease in revenue related to San Onofre of $26 million of which $91 million related to the recovery of amortization of the San Onofre regulatory asset (offset in depreciation and amortization) and authorized return as provided by the Prior San Onofre Settlement Agreement, partially offset by a $65 million reduction in 2017 revenue related to the tax abandonment of San Onofre (offset in income taxes below). There was no revenue recorded in 2018 for San Onofre as a result of the Revised San Onofre Settlement Agreement (see "Management Overview—Permanent Retirement of San Onofre" for further information).
|
•
|
An increase in revenue of $17 million related to tax balancing account activities (offset in income taxes below), consisting of $53 million of lower 2018 incremental tax benefits refunded to customers partially offset by $36 million
|
•
|
Higher operation and maintenance costs of $99 million primarily due to higher insurance premiums associated with wildfire insurance and higher transmission and distribution costs for line clearing (see "Management Overview—Southern California Wildfires—Current Wildfire Insurance Coverage" for further information).
|
•
|
Lower depreciation and amortization expense of $86 million primarily related to the amortization of the San Onofre regulatory asset in 2017 (offset in revenue above) and lower intangible plant amortization.
|
•
|
Higher property and other taxes of $21 million primarily due to higher assessed values for property taxes in 2018.
|
•
|
Higher interest expense of $30 million primarily due to increased borrowings and higher interest on balancing account overcollections.
|
•
|
Lower income tax expense of $77 million primarily due to lower pre-tax income for the first six months of 2018 at a lower federal income tax rate partially offset by higher tax benefits in 2017 primarily related to the ratemaking treatment on the San Onofre tax abandonment. In addition, SCE had lower tax benefits refunded to customers in 2018 offset by tax benefits from the amortization of excess deferred tax assets as a result of Tax Reform (offset in revenue above). See the year-ended 2017 MD&A, "Management Overview—Tax Reform" for further information.
|
•
|
Higher purchased power and fuel costs of $79 million primarily driven by higher power prices and volume experienced in 2018 relative to 2017, partially offset by higher congestion revenue right credits and the receipt of settlement funds related to the California energy crisis.
|
•
|
Lower operation and maintenance expense of $9 million primarily driven by lower spending on various public purpose programs, partially offset by higher transmission access charges.
|
•
|
Higher other income and expenses of $35 million primarily driven by higher net periodic benefit income related to the non-service cost components in 2018 relative to 2017. See "Notes to Consolidated Financial Statements—Note 9. Compensation and Benefit Plans" for further information.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Edison Energy Group and subsidiaries
|
|
$
|
(3
|
)
|
|
$
|
(17
|
)
|
|
$
|
(55
|
)
|
|
$
|
(23
|
)
|
Corporate expenses and other subsidiaries
|
|
(18
|
)
|
|
(12
|
)
|
|
(34
|
)
|
|
7
|
|
||||
Total Edison International Parent and Other
|
|
$
|
(21
|
)
|
|
$
|
(29
|
)
|
|
$
|
(89
|
)
|
|
$
|
(16
|
)
|
•
|
Impact of the 2018 sale and associated goodwill impairment in 2017 for SoCore Energy, resulting in a $12 million decrease in losses for the three months ended June 30, 2018 and $36 million increase in losses for the six months ended June 30, 2018.
|
•
|
Lower income tax benefits of $1 million and $36 million related to stock option exercises for the three and six months ended June 30, 2018, respectively, the impact of Tax Reform on pre-tax losses, and $6 million of tax benefits recorded in 2017 related to the settlement of 2007 – 2012 federal income tax audits, partially offset by lower corporate expenses.
|
(in millions)
|
|
|
||
Collateral posted as of June 30, 2018
1
|
|
$
|
108
|
|
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade
|
|
17
|
|
|
Incremental collateral requirements for power procurement contracts resulting from adverse market price movement
2
|
|
4
|
|
|
Posted and potential collateral requirements
|
|
$
|
129
|
|
2
|
Incremental collateral requirements were based on potential changes in SCE's forward positions as of
June 30, 2018
due to adverse market price movements over the remaining lives of the existing power contracts using a 95% confidence level.
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2018
|
|
2017
1
|
||||
Net cash provided by operating activities
|
$
|
1,312
|
|
|
$
|
1,526
|
|
Net cash provided by financing activities
|
247
|
|
|
101
|
|
||
Net cash used in investing activities
|
(2,048
|
)
|
|
(1,627
|
)
|
||
Net decrease in cash, cash equivalents and restricted cash
|
$
|
(489
|
)
|
|
$
|
—
|
|
1
|
Net cash for the six months ended June 30, 2017 was updated to reflect the implementation of the accounting standards updates for cash flows related to cash receipts and restricted cash.
|
|
Six months ended June 30,
|
|
Change in cash flows
|
||||||||
(in millions)
|
2018
|
|
2017
4
|
|
2018/2017
|
||||||
Net income
|
$
|
643
|
|
|
$
|
718
|
|
|
|
||
Non-cash items
1
|
1,066
|
|
|
1,202
|
|
|
|
||||
Subtotal
|
$
|
1,709
|
|
|
$
|
1,920
|
|
|
$
|
(211
|
)
|
Changes in cash flow resulting from working capital
2
|
(507
|
)
|
|
(237
|
)
|
|
(270
|
)
|
|||
Regulatory assets and liabilities
|
204
|
|
|
39
|
|
|
165
|
|
|||
Other noncurrent assets and liabilities
3
|
(94
|
)
|
|
(196
|
)
|
|
102
|
|
|||
Net cash provided by operating activities
|
$
|
1,312
|
|
|
$
|
1,526
|
|
|
$
|
(214
|
)
|
1
|
Non-cash items include depreciation and amortization, allowance for equity during construction, deferred income taxes and investment tax credits, and other.
|
2
|
Changes in working capital items include receivables, inventory, accounts payable, prepaid and accrued taxes, and other current assets and liabilities.
|
4
|
Cash flow for the six months ended June 30, 2017 was updated to reflect the implementation of the accounting standards updates for cash flows related to cash receipts and restricted cash.
|
•
|
BRRBA overcollections increased by $300 million during the first six months of 2018 primarily due to a $263 million reclassification from TAMA to BRRBA to refund incremental tax benefits to customers in January 2019 and higher sales than forecasted in rates, partially offset by a refund of 2016 incremental tax benefits.
|
•
|
Higher cash due to $125 million of overcollections for the public purpose and energy efficiency programs resulting from lower program spending.
|
•
|
Higher cash of $91 million due to cash collected for San Onofre under the Prior San Onofre Settlement Agreement. For further information, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Permanent Retirement of San Onofre."
|
•
|
Higher cash from increased regulatory liabilities of approximately $176 million primarily due to the delay in the 2018 GRC decision. During the first six months of 2018, the amounts billed to customers was largely based on the 2017 authorized GRC revenue requirement and therefore, a regulatory liability has been established to record any associated adjustments.
|
•
|
TAMA overcollections decreased by $263 million due to a reclassification from TAMA to BRRBA to refund customers as discussed above.
|
•
|
Lower cash due to $162 million of undercollections related to the timing of greenhouse gas auction revenue and climate credit refunds to customers.
|
•
|
Higher cash due to $72 million of overcollections for the public purpose and energy efficiency programs. Overcollections for public purpose and energy efficiency programs increased due to lower spending for these programs.
|
•
|
Higher cash due to realization of $47 million in proceeds from the MHI arbitration and approximately $34 million from the DOE related to spent nuclear fuel. For further information on the MHI claims and spent nuclear fuel, see "Notes to Consolidated Financial Statements—Note 12. Commitments and Contingencies—Contingencies—Permanent Retirement of San Onofre" and "—Spent Nuclear Fuel."
|
•
|
ERRA undercollections for fuel and purchased power were $228 million in 2017 compared to overcollections of $20 million in 2016. ERRA undercollection increased $248 million during the first six months of 2017 primarily due to seasonal rates and a refund of prior year overcollections.
|
•
|
BRRBA overcollections decreased by $169 million during the first six months of 2017 primarily due to the refunds of 2015 TAMA overcollections, a revenue refund to customers of $133 million for 2012 – 2014 incremental tax benefits related to repair deductions, and 2015 overcollections resulting from the implementation of the 2015 GRC decision, which was authorized to be refunded to customers over a two-year period.
|
•
|
Higher cash of approximately $303 million primarily due to a recovery of prior FERC undercollections and lower spending for the new system generation program, including lower capacity payments.
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2018
|
|
2017
|
||||
Issuances of first and refunding mortgage bonds, net of discount and issuance costs
|
$
|
1,872
|
|
|
$
|
692
|
|
Issuance of term loan
|
—
|
|
|
300
|
|
||
Remarketing of pollution control bonds, net of issuance costs
|
—
|
|
|
134
|
|
||
Long-term debt matured or repurchased
|
(198
|
)
|
|
(441
|
)
|
||
Issuances of preference stock, net of issuance costs
|
—
|
|
|
463
|
|
||
Short-term debt repayments, net of borrowings and discount
|
(940
|
)
|
|
(550
|
)
|
||
Payments of common stock dividends to Edison International
|
(424
|
)
|
|
(382
|
)
|
||
Payments of preferred and preference stock dividends
|
(60
|
)
|
|
(62
|
)
|
||
Other
|
(3
|
)
|
|
(53
|
)
|
||
Net cash provided by financing activities
|
$
|
247
|
|
|
$
|
101
|
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2018
|
|
2017
|
||||
Net cash used in operating activities:
Net earnings from nuclear decommissioning trust investments
|
$
|
5
|
|
|
$
|
26
|
|
SCE's decommissioning costs
|
(71
|
)
|
|
(98
|
)
|
||
Net cash provided by investing activities:
Proceeds from sale of investments
|
1,770
|
|
|
3,046
|
|
||
Purchases of investments
|
(1,697
|
)
|
|
(2,973
|
)
|
||
Net cash impact
|
$
|
7
|
|
|
$
|
1
|
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2018
|
|
2017
1
|
||||
Net cash used in operating activities
|
$
|
(95
|
)
|
|
$
|
(88
|
)
|
Net cash (used in) provided by financing activities
|
(501
|
)
|
|
122
|
|
||
Net cash provided by (used in) investing activities
|
60
|
|
|
(35
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(536
|
)
|
|
$
|
(1
|
)
|
1
|
Net cash for the six months ended June 30, 2017 was updated to reflect the implementation of the accounting standards updates for cash flows related to cash receipts and restricted cash.
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2018
|
|
2017
|
||||
Dividends paid to Edison International common shareholders
|
$
|
(394
|
)
|
|
$
|
(354
|
)
|
Dividends received from SCE
|
424
|
|
|
382
|
|
||
Payment for stock-based compensation, net of receipt from stock option exercises
|
(7
|
)
|
|
(120
|
)
|
||
Issuance of long-term debt, net of repayments, discount and issuance costs
|
530
|
|
|
397
|
|
||
Short-term debt repayments, net of borrowings and discount
|
(1,091
|
)
|
|
(192
|
)
|
||
Other
|
37
|
|
|
9
|
|
||
Net cash (used in) provided by financing activities
|
$
|
(501
|
)
|
|
$
|
122
|
|
|
June 30, 2018
|
||||||||||
(in millions)
|
Exposure
2
|
|
Collateral
|
|
Net Exposure
|
||||||
S&P Credit Rating
1
|
|
|
|
|
|
||||||
A or higher
3
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
84
|
|
1
|
SCE assigns a credit rating based on the lower of a counterparty's S&P or Moody's rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the credit ratings from S&P or Moody's.
|
2
|
Exposure excludes amounts related to contracts classified as normal purchases and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheets, except for any related net accounts receivable.
|
3
|
Exposure to companies with S&P Credit Rating below A is immaterial.
|
Consolidated Statements of Income
|
|
Edison International
|
|
|||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, except per-share amounts, unaudited)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Total operating revenue
|
|
$
|
2,815
|
|
|
$
|
2,965
|
|
|
$
|
5,379
|
|
|
$
|
5,428
|
|
Purchased power and fuel
|
|
1,112
|
|
|
1,175
|
|
|
2,038
|
|
|
1,959
|
|
||||
Operation and maintenance
|
|
719
|
|
|
706
|
|
|
1,394
|
|
|
1,310
|
|
||||
Depreciation and amortization
|
|
463
|
|
|
512
|
|
|
925
|
|
|
1,011
|
|
||||
Property and other taxes
|
|
97
|
|
|
86
|
|
|
204
|
|
|
186
|
|
||||
Impairment and other charges
|
|
5
|
|
|
16
|
|
|
71
|
|
|
21
|
|
||||
Other operating income
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||
Total operating expenses
|
|
2,395
|
|
|
2,495
|
|
|
4,629
|
|
|
4,487
|
|
||||
Operating income
|
|
420
|
|
|
470
|
|
|
750
|
|
|
941
|
|
||||
Interest expense
|
|
(180
|
)
|
|
(159
|
)
|
|
(350
|
)
|
|
(311
|
)
|
||||
Other income and expense
|
|
49
|
|
|
24
|
|
|
100
|
|
|
57
|
|
||||
Income from continuing operations before income taxes
|
|
289
|
|
|
335
|
|
|
500
|
|
|
687
|
|
||||
Income tax (benefit) expense
|
|
(9
|
)
|
|
26
|
|
|
(40
|
)
|
|
(14
|
)
|
||||
Income from continuing operations
|
|
298
|
|
|
309
|
|
|
540
|
|
|
701
|
|
||||
Net income
|
|
298
|
|
|
309
|
|
|
540
|
|
|
701
|
|
||||
Preferred and preference stock dividend requirements of SCE
|
|
30
|
|
|
31
|
|
|
60
|
|
|
62
|
|
||||
Other noncontrolling interests
|
|
(8
|
)
|
|
—
|
|
|
(14
|
)
|
|
(1
|
)
|
||||
Net income attributable to Edison International common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Amounts attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations, net of tax
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Net income attributable to Edison International common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Basic earnings per common share attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding
|
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Continuing operations
|
|
$
|
0.85
|
|
|
$
|
0.85
|
|
|
$
|
1.52
|
|
|
$
|
1.96
|
|
Total
|
|
$
|
0.85
|
|
|
$
|
0.85
|
|
|
$
|
1.52
|
|
|
$
|
1.96
|
|
Diluted earnings per common share attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding, including effect of dilutive securities
|
|
327
|
|
|
329
|
|
|
327
|
|
|
329
|
|
||||
Continuing operations
|
|
$
|
0.84
|
|
|
$
|
0.85
|
|
|
$
|
1.51
|
|
|
$
|
1.95
|
|
Total
|
|
$
|
0.84
|
|
|
$
|
0.85
|
|
|
$
|
1.51
|
|
|
$
|
1.95
|
|
Dividends declared per common share
|
|
$
|
0.6050
|
|
|
$
|
0.5425
|
|
|
$
|
1.2100
|
|
|
$
|
1.0850
|
|
Consolidated Statements of Comprehensive Income
|
|
|
|
Edison International
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
(in millions, unaudited)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Net income
|
|
$
|
298
|
|
|
$
|
309
|
|
|
$
|
540
|
|
|
$
|
701
|
|
||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
||||||||||||
Pension and postretirement benefits other than pensions:
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss included in net income
|
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||||||
Other
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
2
|
|
||||||||
Other comprehensive income (loss), net of tax
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
5
|
|
||||||||
Comprehensive income
|
|
300
|
|
|
310
|
|
|
539
|
|
|
706
|
|
||||||||
Less: Comprehensive income attributable to noncontrolling interests
|
|
22
|
|
|
31
|
|
|
46
|
|
|
61
|
|
||||||||
Comprehensive income attributable to Edison International
|
|
$
|
278
|
|
|
$
|
279
|
|
|
$
|
493
|
|
|
$
|
645
|
|
Consolidated Balance Sheets
|
Edison International
|
|
|||||
|
|
|
|
|
|
||
(in millions, unaudited)
|
June 30,
2018 |
|
December 31,
2017 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
99
|
|
|
$
|
1,091
|
|
Receivables, less allowances of $53 and $54 for uncollectible accounts at respective dates
|
822
|
|
|
717
|
|
||
Accrued unbilled revenue
|
598
|
|
|
212
|
|
||
Inventory
|
252
|
|
|
242
|
|
||
Income tax receivables
|
132
|
|
|
224
|
|
||
Prepaid expenses
|
247
|
|
|
233
|
|
||
Derivative assets
|
85
|
|
|
105
|
|
||
Regulatory assets
|
860
|
|
|
703
|
|
||
Other current assets
|
162
|
|
|
202
|
|
||
Total current assets
|
3,257
|
|
|
3,729
|
|
||
Nuclear decommissioning trusts
|
4,294
|
|
|
4,440
|
|
||
Other investments
|
84
|
|
|
73
|
|
||
Total investments
|
4,378
|
|
|
4,513
|
|
||
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,370 and $9,355 at respective dates
|
39,750
|
|
|
38,708
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $78 and $114 at respective dates
|
81
|
|
|
342
|
|
||
Total property, plant and equipment
|
39,831
|
|
|
39,050
|
|
||
Regulatory assets
|
5,022
|
|
|
4,914
|
|
||
Other long-term assets
|
332
|
|
|
374
|
|
||
Total long-term assets
|
5,354
|
|
|
5,288
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
||||
Total assets
|
$
|
52,820
|
|
|
$
|
52,580
|
|
Consolidated Statements of Cash Flows
|
Edison International
|
|
|||||
|
|
||||||
|
Six months ended June 30,
|
||||||
(in millions, unaudited)
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
540
|
|
|
$
|
701
|
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,074
|
|
|
1,048
|
|
||
Allowance for equity during construction
|
(44
|
)
|
|
(41
|
)
|
||
Impairment and other charges
|
71
|
|
|
21
|
|
||
Deferred income taxes and investment tax credits
|
(5
|
)
|
|
(12
|
)
|
||
Other
|
35
|
|
|
15
|
|
||
Nuclear decommissioning trusts
|
(73
|
)
|
|
(73
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(58
|
)
|
|
(114
|
)
|
||
Inventory
|
(14
|
)
|
|
8
|
|
||
Accounts payable
|
(4
|
)
|
|
34
|
|
||
Tax receivables and payables
|
90
|
|
|
(40
|
)
|
||
Other current assets and liabilities
|
(533
|
)
|
|
(130
|
)
|
||
Regulatory assets and liabilities, net
|
204
|
|
|
39
|
|
||
Other noncurrent assets and liabilities
|
(66
|
)
|
|
(18
|
)
|
||
Net cash provided by operating activities
|
1,217
|
|
|
1,438
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Long-term debt issued or remarketed, net of discount and issuance costs of $33 and $12 for respective periods
|
2,417
|
|
|
1,523
|
|
||
Long-term debt matured
|
(213
|
)
|
|
(442
|
)
|
||
Preference stock issued, net
|
—
|
|
|
463
|
|
||
Short-term debt financing, net
|
(2,031
|
)
|
|
(742
|
)
|
||
Payments for stock-based compensation
|
(21
|
)
|
|
(337
|
)
|
||
Receipts from stock option exercises
|
9
|
|
|
185
|
|
||
Dividends and distributions to noncontrolling interests
|
(60
|
)
|
|
(62
|
)
|
||
Dividends paid
|
(394
|
)
|
|
(354
|
)
|
||
Other
|
39
|
|
|
(11
|
)
|
||
Net cash (used in) provided by financing activities
|
(254
|
)
|
|
223
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(2,159
|
)
|
|
(1,759
|
)
|
||
Proceeds from sale of nuclear decommissioning trust investments
|
1,770
|
|
|
3,046
|
|
||
Purchases of nuclear decommissioning trust investments
|
(1,697
|
)
|
|
(2,973
|
)
|
||
Proceeds from sale of SoCore Energy, net of cash acquired by buyer
|
78
|
|
|
—
|
|
||
Other
|
20
|
|
|
24
|
|
||
Net cash used in investing activities
|
(1,988
|
)
|
|
(1,662
|
)
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(1,025
|
)
|
|
(1
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
1,132
|
|
|
114
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
107
|
|
|
$
|
113
|
|
Consolidated Statements of Income
|
Southern California Edison Company
|
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, unaudited)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Operating revenue
|
|
$
|
2,803
|
|
|
$
|
2,953
|
|
|
$
|
5,357
|
|
|
$
|
5,409
|
|
Purchased power and fuel
|
|
1,112
|
|
|
1,175
|
|
|
2,038
|
|
|
1,959
|
|
||||
Operation and maintenance
|
|
694
|
|
|
675
|
|
|
1,345
|
|
|
1,255
|
|
||||
Depreciation and amortization
|
|
462
|
|
|
510
|
|
|
921
|
|
|
1,007
|
|
||||
Property and other taxes
|
|
97
|
|
|
85
|
|
|
202
|
|
|
182
|
|
||||
Other operating income
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Total operating expenses
|
|
2,364
|
|
|
2,445
|
|
|
4,504
|
|
|
4,403
|
|
||||
Operating income
|
|
439
|
|
|
508
|
|
|
853
|
|
|
1,006
|
|
||||
Interest expense
|
|
(164
|
)
|
|
(146
|
)
|
|
(319
|
)
|
|
(287
|
)
|
||||
Other income and expense
|
|
50
|
|
|
33
|
|
|
101
|
|
|
68
|
|
||||
Income before income taxes
|
|
325
|
|
|
395
|
|
|
635
|
|
|
787
|
|
||||
Income tax (benefit) expense
|
|
(2
|
)
|
|
57
|
|
|
(8
|
)
|
|
69
|
|
||||
Net income
|
|
327
|
|
|
338
|
|
|
643
|
|
|
718
|
|
||||
Less: Preferred and preference stock dividend requirements
|
|
30
|
|
|
31
|
|
|
60
|
|
|
62
|
|
||||
Net income available for common stock
|
|
297
|
|
|
307
|
|
|
583
|
|
|
656
|
|
Consolidated Statements of Comprehensive Income
|
|
|
|
|
Southern California Edison Company
|
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
(in millions, unaudited)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Net income
|
$
|
327
|
|
|
$
|
338
|
|
|
$
|
643
|
|
|
$
|
718
|
|
||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||||||
Pension and postretirement benefits other than pensions:
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net loss included in net income
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||||||
Other
|
—
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
||||||||
Other comprehensive income (loss), net of tax
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||||||
Comprehensive income
|
$
|
328
|
|
|
$
|
338
|
|
|
$
|
641
|
|
|
$
|
720
|
|
Consolidated Balance Sheets
|
Southern California Edison Company
|
(in millions, unaudited)
|
June 30,
2018 |
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
25
|
|
|
$
|
515
|
|
Receivables, less allowances of $53 for uncollectible accounts at respective dates
|
806
|
|
|
693
|
|
||
Accrued unbilled revenue
|
598
|
|
|
212
|
|
||
Inventory
|
252
|
|
|
242
|
|
||
Income tax receivables
|
237
|
|
|
229
|
|
||
Prepaid expenses
|
244
|
|
|
228
|
|
||
Derivative assets
|
85
|
|
|
105
|
|
||
Regulatory assets
|
860
|
|
|
703
|
|
||
Other current assets
|
159
|
|
|
160
|
|
||
Total current assets
|
3,266
|
|
|
3,087
|
|
||
Nuclear decommissioning trusts
|
4,294
|
|
|
4,440
|
|
||
Other investments
|
67
|
|
|
52
|
|
||
Total investments
|
4,361
|
|
|
4,492
|
|
||
Utility property, plant and equipment, less accumulated depreciation and amortization of $9,370 and $9,355 at respective dates
|
39,750
|
|
|
38,708
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $73 and $97 at respective dates
|
75
|
|
|
77
|
|
||
Total property, plant and equipment
|
39,825
|
|
|
38,785
|
|
||
Regulatory assets
|
5,022
|
|
|
4,914
|
|
||
Other long-term assets
|
215
|
|
|
237
|
|
||
Total long-term assets
|
5,237
|
|
|
5,151
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
Total assets
|
$
|
52,689
|
|
|
$
|
51,515
|
|
Consolidated Balance Sheets
|
Southern California Edison Company
|
(in millions, except share amounts, unaudited)
|
June 30,
2018 |
|
December 31, 2017
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Short-term debt
|
$
|
300
|
|
|
$
|
1,238
|
|
Current portion of long-term debt
|
479
|
|
|
479
|
|
||
Accounts payable
|
1,395
|
|
|
1,519
|
|
||
Accrued taxes
|
23
|
|
|
24
|
|
||
Customer deposits
|
291
|
|
|
281
|
|
||
Regulatory liabilities
|
1,341
|
|
|
1,121
|
|
||
Other current liabilities
|
1,093
|
|
|
1,225
|
|
||
Total current liabilities
|
4,922
|
|
|
5,887
|
|
||
Long-term debt
|
12,107
|
|
|
10,428
|
|
||
Deferred income taxes and credits
|
6,143
|
|
|
5,890
|
|
||
Pensions and benefits
|
448
|
|
|
483
|
|
||
Asset retirement obligations
|
2,889
|
|
|
2,892
|
|
||
Regulatory liabilities
|
8,659
|
|
|
8,614
|
|
||
Other deferred credits and other long-term liabilities
|
2,575
|
|
|
2,649
|
|
||
Total deferred credits and other liabilities
|
20,714
|
|
|
20,528
|
|
||
Total liabilities
|
37,743
|
|
|
36,843
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
|
|
||
Common stock, no par value (560,000,000 shares authorized; 434,888,104 shares issued and outstanding at each date)
|
2,168
|
|
|
2,168
|
|
||
Additional paid-in capital
|
676
|
|
|
671
|
|
||
Accumulated other comprehensive loss
|
(21
|
)
|
|
(19
|
)
|
||
Retained earnings
|
9,878
|
|
|
9,607
|
|
||
Total common shareholder's equity
|
12,701
|
|
|
12,427
|
|
||
Preferred and preference stock
|
2,245
|
|
|
2,245
|
|
||
Total equity
|
14,946
|
|
|
14,672
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
Total liabilities and equity
|
$
|
52,689
|
|
|
$
|
51,515
|
|
Consolidated Statements of Cash Flows
|
Southern California Edison Company
|
|
Six months ended June 30,
|
||||||
(in millions, unaudited)
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
643
|
|
|
$
|
718
|
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
1,069
|
|
|
1,042
|
|
||
Allowance for equity during construction
|
(44
|
)
|
|
(41
|
)
|
||
Deferred income taxes and investment tax credits
|
12
|
|
|
193
|
|
||
Other
|
29
|
|
|
8
|
|
||
Nuclear decommissioning trusts
|
(73
|
)
|
|
(73
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(67
|
)
|
|
(117
|
)
|
||
Inventory
|
(15
|
)
|
|
8
|
|
||
Accounts payable
|
(35
|
)
|
|
22
|
|
||
Tax receivables and payables
|
(9
|
)
|
|
(37
|
)
|
||
Other current assets and liabilities
|
(381
|
)
|
|
(113
|
)
|
||
Regulatory assets and liabilities, net
|
204
|
|
|
39
|
|
||
Other noncurrent assets and liabilities
|
(21
|
)
|
|
(123
|
)
|
||
Net cash provided by operating activities
|
1,312
|
|
|
1,526
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Long-term debt issued or remarketed, net of discount and issuance costs of $28 and $9 for the respective periods
|
1,872
|
|
|
1,126
|
|
||
Long-term debt matured
|
(198
|
)
|
|
(441
|
)
|
||
Preference stock issued, net
|
—
|
|
|
463
|
|
||
Short-term debt financing, net
|
(940
|
)
|
|
(550
|
)
|
||
Payments for stock-based compensation
|
(8
|
)
|
|
(71
|
)
|
||
Receipt from stock option exercises
|
3
|
|
|
39
|
|
||
Dividends paid
|
(484
|
)
|
|
(444
|
)
|
||
Other
|
2
|
|
|
(21
|
)
|
||
Net cash provided by financing activities
|
247
|
|
|
101
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(2,141
|
)
|
|
(1,722
|
)
|
||
Proceeds from sale of nuclear decommissioning trust investments
|
1,770
|
|
|
3,046
|
|
||
Purchases of nuclear decommissioning trust investments
|
(1,697
|
)
|
|
(2,973
|
)
|
||
Other
|
20
|
|
|
22
|
|
||
Net cash used in investing activities
|
(2,048
|
)
|
|
(1,627
|
)
|
||
Net decrease in cash, cash equivalents and restricted cash
|
(489
|
)
|
|
—
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
515
|
|
|
40
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
26
|
|
|
$
|
40
|
|
|
|
Edison International
|
|
SCE
|
||||||||||||
(in millions)
|
|
June 30,
2018 |
|
December 31, 2017
|
|
June 30,
2018 |
|
December 31, 2017
|
||||||||
Money market funds
|
|
$
|
57
|
|
|
$
|
1,024
|
|
|
$
|
—
|
|
|
$
|
483
|
|
|
|
Edison International
|
|
SCE
|
||||||||||||
(in millions)
|
|
June 30,
2018 |
|
December 31, 2017
|
|
June 30,
2018 |
|
December 31, 2017
|
||||||||
Book balances reclassified to accounts payable
|
|
$
|
16
|
|
|
$
|
64
|
|
|
$
|
16
|
|
|
$
|
63
|
|
(in millions)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Edison International:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
99
|
|
|
$
|
1,091
|
|
Short-term restricted cash
1
|
|
1
|
|
|
40
|
|
||
Long-term restricted cash
2
|
|
7
|
|
|
1
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
$
|
107
|
|
|
$
|
1,132
|
|
SCE:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
25
|
|
|
$
|
515
|
|
Short-term restricted cash
1
|
|
1
|
|
|
—
|
|
||
Total cash, cash equivalents, and restricted cash
|
|
$
|
26
|
|
|
$
|
515
|
|
1
|
Reflected in "Other current assets" on Edison International's and SCE's consolidated balance sheets.
|
2
|
Reflected in "Other long-term assets" on Edison International's consolidated balance sheets.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, except per-share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic earnings per share – continuing operations:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations attributable to common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Participating securities dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from continuing operations available to common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Weighted average common shares outstanding
|
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Basic earnings per share – continuing operations
|
|
$
|
0.85
|
|
|
$
|
0.85
|
|
|
$
|
1.52
|
|
|
$
|
1.96
|
|
Diluted earnings per share – continuing operations:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations attributable to common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Participating securities dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from continuing operations available to common shareholders
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Income impact of assumed conversions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from continuing operations available to common shareholders and assumed conversions
|
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
494
|
|
|
$
|
640
|
|
Weighted average common shares outstanding
|
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Incremental shares from assumed conversions
|
|
1
|
|
|
3
|
|
|
1
|
|
|
3
|
|
||||
Adjusted weighted average shares – diluted
|
|
327
|
|
|
329
|
|
|
327
|
|
|
329
|
|
||||
Diluted earnings per share – continuing operations
|
|
$
|
0.84
|
|
|
$
|
0.85
|
|
|
$
|
1.51
|
|
|
$
|
1.95
|
|
|
Equity Attributable to Common Shareholders
|
|
Noncontrolling Interests
|
|
|
|||||||||||||||||||||
(in millions, except per-share amounts)
|
Common
Stock
|
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings
|
|
Subtotal
|
|
Other
|
Preferred
and
Preference
Stock
|
|
Total
Equity
|
||||||||||||||
Balance at December 31, 2017
|
$
|
2,526
|
|
|
$
|
(43
|
)
|
|
$
|
9,188
|
|
|
$
|
11,671
|
|
|
$
|
2
|
|
$
|
2,193
|
|
|
$
|
13,866
|
|
Net income
|
—
|
|
|
—
|
|
|
494
|
|
|
494
|
|
|
(11
|
)
|
60
|
|
|
543
|
|
|||||||
Other comprehensive income
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
—
|
|
|
4
|
|
|||||||
Cumulative effect of accounting changes
1
|
—
|
|
|
(5
|
)
|
|
10
|
|
|
5
|
|
|
—
|
|
—
|
|
|
5
|
|
|||||||
Contributions from tax equity investor
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
—
|
|
|
24
|
|
|||||||
Common stock dividends declared ($1.2100 per share)
|
—
|
|
|
—
|
|
|
(394
|
)
|
|
(394
|
)
|
|
—
|
|
—
|
|
|
(394
|
)
|
|||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(60
|
)
|
|
(60
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
—
|
|
|
(12
|
)
|
|||||||
Noncash stock-based compensation
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
—
|
|
|
11
|
|
|||||||
Deconsolidation of SoCore Energy
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
—
|
|
|
(15
|
)
|
|||||||
Balance at June 30, 2018
|
$
|
2,537
|
|
|
$
|
(44
|
)
|
|
$
|
9,286
|
|
|
$
|
11,779
|
|
|
$
|
—
|
|
$
|
2,193
|
|
|
$
|
13,972
|
|
1
|
Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards updates on revenue recognition and measurement of financial instruments.
|
|
Equity Attributable to Common Shareholders
|
|
Noncontrolling Interests
|
|
|
||||||||||||||||||
(in millions, except per-share amounts)
|
Common
Stock
|
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings
|
|
Subtotal
|
|
Preferred
and
Preference
Stock
|
|
Total
Equity
|
||||||||||||
Balance at December 31, 2016
|
$
|
2,505
|
|
|
$
|
(53
|
)
|
|
$
|
9,544
|
|
|
$
|
11,996
|
|
|
$
|
2,191
|
|
|
$
|
14,187
|
|
Net income
|
—
|
|
|
—
|
|
|
640
|
|
|
640
|
|
|
62
|
|
|
702
|
|
||||||
Other comprehensive income
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Common stock dividends declared ($1.0850 per share)
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
(354
|
)
|
|
—
|
|
|
(354
|
)
|
||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
(62
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
(151
|
)
|
|
(151
|
)
|
|
—
|
|
|
(151
|
)
|
||||||
Noncash stock-based compensation
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Issuance of preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|
463
|
|
||||||
Balance at June 30, 2017
|
$
|
2,515
|
|
|
$
|
(48
|
)
|
|
$
|
9,679
|
|
|
$
|
12,146
|
|
|
$
|
2,654
|
|
|
$
|
14,800
|
|
|
Equity Attributable to Edison International
|
|
|
|
|
||||||||||||||||||
(in millions)
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Preferred
and Preference Stock |
|
Total
Equity |
||||||||||||
Balance at December 31, 2017
|
$
|
2,168
|
|
|
$
|
671
|
|
|
$
|
(19
|
)
|
|
$
|
9,607
|
|
|
$
|
2,245
|
|
|
$
|
14,672
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
643
|
|
|
—
|
|
|
643
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Cumulative effect of accounting change
1
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
||||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(312
|
)
|
|
—
|
|
|
(312
|
)
|
||||||
Dividends declared on preferred and preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Noncash stock-based compensation
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Balance at June 30, 2018
|
$
|
2,168
|
|
|
$
|
676
|
|
|
$
|
(21
|
)
|
|
$
|
9,878
|
|
|
$
|
2,245
|
|
|
$
|
14,946
|
|
1
|
SCE recognized a cumulative effect adjustment to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on measurement of financial instruments.
|
|
Equity Attributable to Edison International
|
|
|
|
|
||||||||||||||||||
(in millions)
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Preferred
and Preference Stock |
|
Total
Equity |
||||||||||||
Balance at December 31, 2016
|
$
|
2,168
|
|
|
$
|
657
|
|
|
$
|
(20
|
)
|
|
$
|
9,433
|
|
|
$
|
2,245
|
|
|
$
|
14,483
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
718
|
|
|
—
|
|
|
718
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(382
|
)
|
|
—
|
|
|
(382
|
)
|
||||||
Dividends declared on preferred and preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(62
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||||
Noncash stock-based compensation
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Issuance of preference stock
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
475
|
|
|
463
|
|
||||||
Balance at June 30, 2017
|
$
|
2,168
|
|
|
$
|
651
|
|
|
$
|
(18
|
)
|
|
$
|
9,674
|
|
|
$
|
2,720
|
|
|
$
|
15,195
|
|
|
|
Three months ended June 30,
|
||||||||||||||||||||||
(in millions)
|
|
Trust I
|
|
Trust II
|
|
Trust III
|
|
Trust IV
|
|
Trust V
|
|
Trust VI
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividend income
|
|
*
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
Dividend distributions
|
|
*
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
4
|
|
|
6
|
|
||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividend income
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Dividend distributions
|
|
6
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
4
|
|
|
—
|
|
|
|
Six months ended June 30,
|
||||||||||||||||||||||
(in millions)
|
|
Trust I
|
|
Trust II
|
|
Trust III
|
|
Trust IV
|
|
Trust V
|
|
Trust VI
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividend income
|
|
*
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
12
|
|
|
Dividend distributions
|
|
*
|
|
|
10
|
|
|
8
|
|
|
9
|
|
|
8
|
|
|
12
|
|
||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividend income
|
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
—
|
|
Dividend distributions
|
|
13
|
|
|
10
|
|
|
8
|
|
|
9
|
|
|
8
|
|
|
—
|
|
|
June 30, 2018
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
and
Collateral
1
|
|
Total
|
||||||||||
Assets at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
52
|
|
|
$
|
(4
|
)
|
|
$
|
88
|
|
Other
|
12
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
Nuclear decommissioning trusts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stocks
2
|
1,527
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,527
|
|
|||||
Fixed Income
3
|
1,021
|
|
|
1,679
|
|
|
—
|
|
|
—
|
|
|
2,700
|
|
|||||
Short-term investments, primarily cash equivalents
|
130
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|||||
Subtotal of nuclear decommissioning trusts
4
|
2,678
|
|
|
1,739
|
|
|
—
|
|
|
—
|
|
|
4,417
|
|
|||||
Total assets
|
2,690
|
|
|
1,800
|
|
|
52
|
|
|
(4
|
)
|
|
4,538
|
|
|||||
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
—
|
|
|
10
|
|
|
—
|
|
|
(6
|
)
|
|
4
|
|
|||||
Total liabilities
|
—
|
|
|
10
|
|
|
—
|
|
|
(6
|
)
|
|
4
|
|
|||||
Net assets
|
$
|
2,690
|
|
|
$
|
1,790
|
|
|
$
|
52
|
|
|
$
|
2
|
|
|
$
|
4,534
|
|
|
December 31, 2017
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
and
Collateral
1
|
|
Total
|
||||||||||
Assets at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
102
|
|
|
$
|
(1
|
)
|
|
$
|
110
|
|
Other
|
495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
495
|
|
|||||
Nuclear decommissioning trusts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stocks
2
|
1,596
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,596
|
|
|||||
Fixed Income
3
|
1,065
|
|
|
1,665
|
|
|
—
|
|
|
—
|
|
|
2,730
|
|
|||||
Short-term investments, primarily cash equivalents
|
101
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|||||
Subtotal of nuclear decommissioning trusts
4
|
2,762
|
|
|
1,737
|
|
|
—
|
|
|
—
|
|
|
4,499
|
|
|||||
Total assets
|
3,257
|
|
|
1,746
|
|
|
102
|
|
|
(1
|
)
|
|
5,104
|
|
|||||
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
—
|
|
|
2
|
|
|
1
|
|
|
(2
|
)
|
|
1
|
|
|||||
Total liabilities
|
—
|
|
|
2
|
|
|
1
|
|
|
(2
|
)
|
|
1
|
|
|||||
Net assets
|
$
|
3,257
|
|
|
$
|
1,744
|
|
|
$
|
101
|
|
|
$
|
1
|
|
|
$
|
5,103
|
|
1
|
Represents the netting of assets and liabilities under master netting agreements and cash collateral.
|
2
|
Approximately
71%
and
69%
of SCE's equity investments were in companies located in the United States at
June 30, 2018
and
December 31, 2017
, respectively.
|
3
|
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of
$112 million
and
$102 million
at
June 30, 2018
and
December 31, 2017
, respectively.
|
4
|
Excludes net payables of
$123 million
and
$59 million
at
June 30, 2018
and
December 31, 2017
, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fair value of net assets (liabilities) at beginning of period
|
|
$
|
81
|
|
|
$
|
(1,166
|
)
|
|
$
|
101
|
|
|
$
|
(1,089
|
)
|
Total realized/unrealized gains (losses):
|
|
|
|
|
|
|
|
|
||||||||
Included in regulatory assets and liabilities
1
|
|
(29
|
)
|
|
11
|
|
|
(49
|
)
|
|
(66
|
)
|
||||
Contract amendment
2
|
|
—
|
|
|
143
|
|
|
—
|
|
|
143
|
|
||||
Fair value of net assets (liabilities) at end of period
3
|
|
$
|
52
|
|
|
$
|
(1,012
|
)
|
|
$
|
52
|
|
|
$
|
(1,012
|
)
|
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
|
|
$
|
7
|
|
|
$
|
(12
|
)
|
|
$
|
7
|
|
|
$
|
(97
|
)
|
1
|
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
|
3
|
During the third quarter of 2017, SCE designated certain derivative contracts as normal purchase and normal sale contracts, which resulted in a reclassification of
$914 million
from derivative liabilities to other liabilities.
|
|
Fair Value (in millions)
|
|
Significant
|
|
||||||
|
Assets
|
|
Liabilities
|
Valuation Technique(s)
|
Unobservable Input
|
Range
|
||||
Congestion revenue rights
|
|
|
|
|
|
|||||
June 30, 2018
|
$
|
52
|
|
|
$
|
—
|
|
Auction prices
|
CAISO CRR auction prices
|
$(5.49) - $8.79
|
December 31, 2017
|
102
|
|
|
—
|
|
Auction prices
|
CAISO CRR auction prices
|
$(9.41) - $8.66
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
(in millions)
|
|
Carrying
Value
1
|
|
Fair
Value
|
|
Carrying
Value
1
|
|
Fair
Value
|
||||||||
Edison International
|
|
$
|
14,324
|
|
|
$
|
14,821
|
|
|
$
|
12,123
|
|
|
$
|
13,760
|
|
SCE
|
|
12,586
|
|
|
13,124
|
|
|
10,907
|
|
|
12,547
|
|
1
|
Carrying value is net of debt issuance costs.
|
|
|
June 30, 2018
|
|
|
||||||||||||||||||||||||
|
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
Assets |
||||||||||||||||||||||
(in millions)
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
|||||||||||||||
Commodity derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross amounts recognized
|
|
$
|
89
|
|
|
$
|
3
|
|
|
$
|
92
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
82
|
|
Gross amounts offset in the consolidated balance sheets
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||||||
Cash collateral posted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
|||||||
Net amounts presented in the consolidated balance sheets
|
|
$
|
85
|
|
|
$
|
3
|
|
|
$
|
88
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
84
|
|
|
|
December 31, 2017
|
|
|
||||||||||||||||||||||||
|
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
Assets |
||||||||||||||||||||||
(in millions)
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
|||||||||||||||
Commodity derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross amounts recognized
|
|
$
|
106
|
|
|
$
|
5
|
|
|
$
|
111
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
108
|
|
Gross amounts offset in the consolidated balance sheets
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||||
Cash collateral posted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||||||
Net amounts presented in the consolidated balance sheets
|
|
$
|
105
|
|
|
$
|
5
|
|
|
$
|
110
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
109
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Realized losses
|
|
$
|
(8
|
)
|
|
$
|
(3
|
)
|
|
$
|
(20
|
)
|
|
$
|
(5
|
)
|
Unrealized (losses) gains
|
|
(12
|
)
|
|
6
|
|
|
(26
|
)
|
|
(80
|
)
|
|
|
|
|
Economic Hedges
|
|||
Commodity
|
|
Unit of Measure
|
|
June 30, 2018
|
|
December 31, 2017
|
|
Electricity options, swaps and forwards
|
|
GWh
|
|
2,015
|
|
|
475
|
Natural gas options, swaps and forwards
|
|
Bcf
|
|
141
|
|
|
143
|
Congestion revenue rights
|
|
GWh
|
|
48,673
|
|
|
78,765
|
•
|
Earning activities – representing revenue authorized by the CPUC and FERC, which is intended to provide SCE a reasonable opportunity to recover its costs and earn a return on its net investment in generation, transmission, and distribution assets. The annual revenue requirements are comprised of authorized operation and maintenance costs, depreciation, taxes, and a return consistent with the capital structure. Also, included in earnings activities are revenues or penalties related to incentive mechanisms, other operating revenue, and regulatory charges or disallowances.
|
•
|
Cost-recovery activities – representing CPUC- and FERC- authorized balancing accounts, which allow for recovery of specific project or program costs, subject to reasonableness review or compliance with upfront standards. Cost-recovery activities include rates which provide recovery, subject to reasonableness review of, among other things, fuel costs, purchased power costs, public purpose related-program costs (including energy efficiency and demand-side management programs), and certain operation and maintenance expenses. SCE earns no return on these activities.
|
(in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Receivables:
|
|
|
|
||||
Billed revenue
|
$
|
693
|
|
|
$
|
613
|
|
Accrued unbilled revenues
|
598
|
|
|
212
|
|
||
Total receivables
|
$
|
1,291
|
|
|
$
|
825
|
|
Contract liabilities
1
|
$
|
20
|
|
|
$
|
20
|
|
1
|
Contract liabilities are included in "Other current liabilities" and "Other deferred credits and long-term liabilities" on the consolidated balance sheets.
|
(in millions)
|
2018
|
||
Balance at January 1,
|
$
|
36
|
|
Charged to costs and expenses
|
12
|
|
|
Write-offs
|
(12
|
)
|
|
Balance at June 30,
|
$
|
36
|
|
(in millions)
|
2018
|
||
Balance at January 1,
|
$
|
20
|
|
Additions
|
25
|
|
|
Revenue recognized during the period
|
(25
|
)
|
|
Balance at June 30,
|
$
|
20
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
$
|
289
|
|
|
$
|
335
|
|
|
$
|
500
|
|
|
$
|
687
|
|
Provision for income tax at federal statutory rate of 21% and 35%, respectively
1
|
61
|
|
|
117
|
|
|
105
|
|
|
241
|
|
||||
Increase in income tax from:
|
|
|
|
|
|
|
|
|
|
||||||
State tax, net of federal benefit
|
—
|
|
|
6
|
|
|
(5
|
)
|
|
16
|
|
||||
Property-related
2
|
(69
|
)
|
|
(83
|
)
|
|
(138
|
)
|
|
(196
|
)
|
||||
Change related to uncertain tax positions
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(18
|
)
|
||||
Shared-based compensation
3
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(46
|
)
|
||||
Other
|
(1
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(11
|
)
|
||||
Total income tax (benefit) expense from continuing operations
|
$
|
(9
|
)
|
|
$
|
26
|
|
|
$
|
(40
|
)
|
|
$
|
(14
|
)
|
Effective tax rate
|
(3.1
|
)%
|
|
7.8
|
%
|
|
(8.0
|
)%
|
|
(2.0
|
)%
|
||||
SCE:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
$
|
325
|
|
|
$
|
395
|
|
|
$
|
635
|
|
|
$
|
787
|
|
Provision for income tax at federal statutory rate of 21% and 35%, respectively
1
|
68
|
|
|
138
|
|
|
133
|
|
|
275
|
|
||||
Increase in income tax from:
|
|
|
|
|
|
|
|
||||||||
State tax, net of federal benefit
|
3
|
|
|
9
|
|
|
4
|
|
|
22
|
|
||||
Property-related
2
|
(69
|
)
|
|
(83
|
)
|
|
(138
|
)
|
|
(196
|
)
|
||||
Change related to uncertain tax positions
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(11
|
)
|
||||
Shared-based compensation
3
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Other
|
(4
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
(12
|
)
|
||||
Total income tax (benefit) expense from continuing operations
|
$
|
(2
|
)
|
|
$
|
57
|
|
|
$
|
(8
|
)
|
|
$
|
69
|
|
Effective tax rate
|
(0.6
|
)%
|
|
14.4
|
%
|
|
(1.3
|
)%
|
|
8.8
|
%
|
1
|
Tax Reform reduced the federal corporate income tax rate from
35%
to
21%
, effective January 1, 2018.
|
|
Edison International
|
|
SCE
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance at January 1,
|
$
|
432
|
|
|
$
|
471
|
|
|
$
|
331
|
|
|
$
|
371
|
|
Tax positions taken during the current year:
|
|
|
|
|
|
|
|
||||||||
Increases
|
21
|
|
|
20
|
|
|
21
|
|
|
20
|
|
||||
Tax positions taken during a prior year:
|
|
|
|
|
|
|
|
||||||||
Increases
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Decreases
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||
Decreases for settlements during the period
1
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
(78
|
)
|
||||
Balance at June 30,
|
$
|
446
|
|
|
$
|
411
|
|
|
$
|
345
|
|
|
$
|
316
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
3
|
|
2018
|
|
2017
3
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
32
|
|
|
$
|
36
|
|
|
$
|
64
|
|
|
$
|
72
|
|
Non-service cost
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
35
|
|
|
41
|
|
|
70
|
|
|
82
|
|
||||
Expected return on plan assets
|
(56
|
)
|
|
(53
|
)
|
|
(113
|
)
|
|
(106
|
)
|
||||
Settlement costs
1
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Amortization of prior service cost
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||
Amortization of net loss
2
|
2
|
|
|
5
|
|
|
4
|
|
|
10
|
|
||||
Regulatory adjustment (deferred)
|
3
|
|
|
(3
|
)
|
|
5
|
|
|
(6
|
)
|
||||
Total non-service cost
|
(16
|
)
|
|
(1
|
)
|
|
(33
|
)
|
|
(10
|
)
|
||||
Total expense recognized
|
$
|
16
|
|
|
$
|
35
|
|
|
$
|
31
|
|
|
$
|
62
|
|
SCE:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
31
|
|
|
$
|
35
|
|
|
$
|
62
|
|
|
$
|
70
|
|
Non-service cost
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
32
|
|
|
37
|
|
|
64
|
|
|
74
|
|
||||
Expected return on plan assets
|
(54
|
)
|
|
(50
|
)
|
|
(107
|
)
|
|
(100
|
)
|
||||
Amortization of prior service cost
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||
Amortization of net loss
2
|
2
|
|
|
4
|
|
|
3
|
|
|
8
|
|
||||
Regulatory adjustment (deferred)
|
3
|
|
|
(3
|
)
|
|
5
|
|
|
(6
|
)
|
||||
Total non-service cost
|
(17
|
)
|
|
(11
|
)
|
|
(34
|
)
|
|
(22
|
)
|
||||
Total expense recognized
|
$
|
14
|
|
|
$
|
24
|
|
|
$
|
28
|
|
|
$
|
48
|
|
1
|
Under GAAP, a settlement is recorded when lump-sum payments exceed estimated annual service and interest costs. Lump-sum payments made in April 2017 to Edison International executives retiring in 2016 from the Executive Retirement Plan exceeded the estimated service and interest costs, resulting in a partial settlement of that plan. A settlement loss of approximately
$8 million
(
$5 million
after-tax) was recorded at Edison International in the second quarter of 2017.
|
2
|
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was
$2 million
and
$2 million
, respectively, for the three months ended
June 30, 2018
, and
$4 million
and
$3 million
, respectively, for the six months ended
June 30, 2018
. The amount reclassified for Edison International and SCE was
$2 million
and
$1 million
, respectively, for the three months ended
June 30, 2017
, and
$5 million
and
$3 million
, respectively, for the six months ended
June 30, 2017
.
|
3
|
During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
1
|
|
2018
|
|
2017
1
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
19
|
|
|
$
|
18
|
|
Non-service cost
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
21
|
|
|
24
|
|
|
42
|
|
|
48
|
|
||||
Expected return on plan assets
|
(30
|
)
|
|
(27
|
)
|
|
(60
|
)
|
|
(54
|
)
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Total non-service cost
|
(10
|
)
|
|
(4
|
)
|
|
(19
|
)
|
|
(8
|
)
|
||||
Total expense
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
10
|
|
SCE:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
19
|
|
|
$
|
18
|
|
Non-service cost
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
21
|
|
|
24
|
|
|
42
|
|
|
48
|
|
||||
Expected return on plan assets
|
(30
|
)
|
|
(27
|
)
|
|
(60
|
)
|
|
(54
|
)
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||
Total non-service cost
|
(10
|
)
|
|
(4
|
)
|
|
(19
|
)
|
|
(8
|
)
|
||||
Total expense
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
10
|
|
1
|
During the first quarter of 2018, Edison International and SCE adopted an accounting standard retrospectively related to the presentation of the components of net periodic benefit costs for the defined benefit pension and other postretirement plans. Prior years' consolidated income statements have been updated to reflect the retrospective application of this accounting standard. Service and non-service costs are included in "Operation and maintenance" and "Other income and expenses," respectively, on the consolidated income statement. See Note 1 for further information.
|
|
Longest
Maturity
Dates
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
(in millions)
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2018 |
|
December 31, 2017
|
|||||||||
Stocks
|
—
|
|
*
|
|
|
$
|
236
|
|
|
$
|
1,527
|
|
|
$
|
1,596
|
|
|
Municipal bonds
|
2057
|
|
650
|
|
|
643
|
|
|
753
|
|
|
768
|
|
||||
U.S. government and agency securities
|
2067
|
|
1,214
|
|
|
1,235
|
|
|
1,281
|
|
|
1,319
|
|
||||
Corporate bonds
|
2057
|
|
623
|
|
|
579
|
|
|
666
|
|
|
643
|
|
||||
Short-term investments and receivables/payables
1
|
One-year
|
|
65
|
|
|
110
|
|
|
67
|
|
|
114
|
|
||||
Total
|
|
|
$
|
2,552
|
|
|
$
|
2,803
|
|
|
$
|
4,294
|
|
|
$
|
4,440
|
|
*
|
Effective January 1, 2018, SCE adopted an accounting standards update related to the classification and measurement of financial instruments in which equity investments are measured at fair value. See Note 1 for further information.
|
1
|
Short-term investments include
$47 million
and
$29 million
of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and mature by
July 2, 2018
and
January 2, 2018
as of
June 30, 2018
and
December 31, 2017
, respectively.
|
(in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Current:
|
|
|
|
||||
Regulatory balancing accounts
|
$
|
642
|
|
|
$
|
484
|
|
Power contracts and energy derivatives
|
203
|
|
|
203
|
|
||
Other
|
15
|
|
|
16
|
|
||
Total current
|
860
|
|
|
703
|
|
||
Long-term:
|
|
|
|
||||
Deferred income taxes, net of liabilities
|
3,306
|
|
|
3,143
|
|
||
Pensions and other postretirement benefits
|
265
|
|
|
271
|
|
||
Power contracts and energy derivatives
|
741
|
|
|
799
|
|
||
Unamortized investments, net of accumulated amortization
|
117
|
|
|
123
|
|
||
San Onofre
1
|
72
|
|
|
72
|
|
||
Unamortized loss on reacquired debt
|
160
|
|
|
168
|
|
||
Regulatory balancing accounts
|
175
|
|
|
143
|
|
||
Environmental Remediation
|
137
|
|
|
144
|
|
||
Other
|
49
|
|
|
51
|
|
||
Total long-term
|
5,022
|
|
|
4,914
|
|
||
Total regulatory assets
|
$
|
5,882
|
|
|
$
|
5,617
|
|
1
|
In accordance with the Revised San Onofre Settlement Agreement, SCE wrote down the San Onofre regulatory asset. SCE has requested to apply
$72 million
of the U.S. Department of Energy ("DOE") proceeds, currently reflected as a regulatory liability in the DOE litigation memorandum account, against the remaining San Onofre regulatory asset. See Note 12 for further information.
|
(in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Current:
|
|
|
|
||||
Regulatory balancing accounts
|
$
|
1,004
|
|
|
$
|
1,009
|
|
Energy derivatives
|
50
|
|
|
74
|
|
||
San Onofre
1
|
96
|
|
|
5
|
|
||
Other
2
|
191
|
|
|
33
|
|
||
Total current
|
1,341
|
|
|
1,121
|
|
||
Long-term:
|
|
|
|
||||
Costs of removal
|
2,804
|
|
|
2,741
|
|
||
Re-measurement of deferred taxes
|
2,815
|
|
|
2,892
|
|
||
Recoveries in excess of ARO liabilities
3
|
1,438
|
|
|
1,575
|
|
||
Regulatory balancing accounts
|
1,539
|
|
|
1,316
|
|
||
Other postretirement benefits
|
26
|
|
|
26
|
|
||
Other
|
37
|
|
|
64
|
|
||
Total long-term
|
8,659
|
|
|
8,614
|
|
||
Total regulatory liabilities
|
$
|
10,000
|
|
|
$
|
9,735
|
|
1
|
During the six months ended June 30, 2018, SCE recorded San Onofre revenue based on the Prior San Onofre Settlement Agreement. As a result of the Revised San Onofre Settlement Agreement, SCE recorded a regulatory liability pending the CPUC approval of the agreement. See Note 12 for additional information.
|
2
|
During the six months ended June 30, 2018, SCE recorded CPUC revenue based on the 2017 authorized revenue requirements adjusted for the July 2017 cost of capital decision and Tax Reform pending the outcome of the 2018 GRC. SCE recorded a regulatory liability primarily associated with these adjustments.
|
3
|
Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 10 for further discussion.
|
(in millions)
|
June 30,
2018 |
|
December 31,
2017 |
||||
Asset (liability)
|
|
|
|
||||
Energy resource recovery account
|
$
|
452
|
|
|
$
|
464
|
|
New system generation balancing account
|
(190
|
)
|
|
(197
|
)
|
||
Public purpose programs and energy efficiency programs
|
(1,270
|
)
|
|
(1,145
|
)
|
||
Tax accounting memorandum account and pole loading balancing account
|
4
|
|
|
(259
|
)
|
||
Base revenue requirement balancing account
|
(500
|
)
|
|
(200
|
)
|
||
DOE litigation memorandum account
|
(191
|
)
|
|
(156
|
)
|
||
Greenhouse gas auction revenue
|
140
|
|
|
(22
|
)
|
||
FERC balancing accounts
|
(220
|
)
|
|
(205
|
)
|
||
Catastrophic event memorandum account
|
109
|
|
|
102
|
|
||
Other
|
(60
|
)
|
|
(80
|
)
|
||
Liability
|
$
|
(1,726
|
)
|
|
$
|
(1,698
|
)
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
$
|
(46
|
)
|
|
$
|
(49
|
)
|
|
$
|
(43
|
)
|
|
$
|
(53
|
)
|
Pension and PBOP – net loss:
|
|
|
|
|
|
|
|
||||||||
Reclassified from accumulated other comprehensive loss
1
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||
Other
2
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
2
|
|
||||
Change
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
5
|
|
||||
Ending Balance
|
$
|
(44
|
)
|
|
$
|
(48
|
)
|
|
$
|
(44
|
)
|
|
$
|
(48
|
)
|
1
|
These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.
|
2
|
Edison International recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
$
|
(22
|
)
|
|
$
|
(18
|
)
|
|
$
|
(19
|
)
|
|
$
|
(20
|
)
|
Pension and PBOP – net loss:
|
|
|
|
|
|
|
|
||||||||
Reclassified from accumulated other comprehensive loss
1
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Other
2
|
—
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
||||
Change
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||
Ending Balance
|
$
|
(21
|
)
|
|
$
|
(18
|
)
|
|
$
|
(21
|
)
|
|
$
|
(18
|
)
|
1
|
These items are included in the computation of net periodic pension and PBOP Plan expense. See Note 9 for additional information.
|
2
|
SCE recognized cumulative effect adjustments to the opening balance of retained earnings and accumulated other comprehensive loss on January 1, 2018 related to the adoption of the accounting standards update on the measurement of financial instruments. See Note 1 for further information.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
SCE other income and expenses:
|
|
|
|
|
|
|
|
|
||||||||
Equity allowance for funds used during construction
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
44
|
|
|
$
|
41
|
|
Increase in cash surrender value of life insurance policies and life insurance benefits
|
|
6
|
|
|
10
|
|
|
14
|
|
|
22
|
|
||||
Interest income
|
|
5
|
|
|
1
|
|
|
9
|
|
|
3
|
|
||||
Net periodic benefit income – non-service components
|
|
27
|
|
|
9
|
|
|
53
|
|
|
18
|
|
||||
Civic, political and related activities and donations
|
|
(12
|
)
|
|
(7
|
)
|
|
(16
|
)
|
|
(10
|
)
|
||||
Other
|
|
2
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
||||
Total SCE other income and expenses
|
|
50
|
|
|
33
|
|
|
101
|
|
|
68
|
|
||||
Other income and expenses of Edison International Parent and Other:
|
|
|
|
|
|
|
|
|
||||||||
Net periodic benefit costs – non-service components
|
|
(1
|
)
|
|
(10
|
)
|
|
(1
|
)
|
|
(11
|
)
|
||||
Other
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Total Edison International other income and expenses
|
|
$
|
49
|
|
|
$
|
24
|
|
|
$
|
100
|
|
|
$
|
57
|
|
|
Edison International
|
|
SCE
|
||||||||||||
|
Six months ended June 30,
|
||||||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cash payments for interest and taxes:
|
|
|
|
|
|
|
|
||||||||
Interest, net of amounts capitalized
|
$
|
254
|
|
|
$
|
240
|
|
|
$
|
233
|
|
|
$
|
223
|
|
Tax (refunds) payments, net
|
(93
|
)
|
|
14
|
|
|
(18
|
)
|
|
20
|
|
||||
Non-cash financing and investing activities:
|
|
|
|
|
|
|
|
||||||||
Dividends declared but not paid:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
$
|
197
|
|
|
$
|
177
|
|
|
$
|
100
|
|
|
$
|
—
|
|
Preferred and preference stock
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
Period
|
(a) Total
Number of Shares
(or Units)
Purchased
1
|
|
(b) Average
Price Paid per Share (or Unit)
1
|
|
(c) Total
Number of Shares
(or Units)
Purchased
as Part of
Publicly
Announced
Plans or
Programs
|
|
(d) Maximum
Number (or
Approximate
Dollar Value)
of Shares
(or Units) that May
Yet Be Purchased
Under the Plans or
Programs
|
|||||
April 1, 2018 to April 30, 2018
|
30,301
|
|
|
|
$
|
64.74
|
|
|
|
—
|
|
—
|
May 1, 2018 to May 31, 2018
|
186,308
|
|
|
|
$
|
64.76
|
|
|
|
—
|
|
—
|
June 1, 2018 to June 30, 2018
|
173,142
|
|
|
|
$
|
61.70
|
|
|
|
—
|
|
—
|
Total
|
389,751
|
|
|
|
$
|
63.39
|
|
|
|
—
|
|
—
|
1
|
The shares were purchased by agents acting on Edison International's behalf for delivery to plan participants to fulfill requirements in connection with Edison International's: (i) 401(k) Savings Plan; (ii) Dividend Reinvestment and Direct Stock Purchase Plan; and (iii) long-term incentive compensation plans. The shares were purchased in open-market transactions pursuant to plan terms or participant elections. The shares were never registered in Edison International's name and none of the shares purchased were retired as a result of the transactions.
|
Exhibit
Number
|
|
Description
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.1
|
|
Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended June 30, 2018, filed on July 26, 2018, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements
|
|
|
|
101.2
|
|
Financial statements from the quarterly report on Form 10-Q of Southern California Edison Company for the quarter ended June 30, 2018, filed on July 26, 2018, formatted in XBRL: (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to Consolidated Financial Statements
|
|
EDISON INTERNATIONAL
|
|
|
SOUTHERN CALIFORNIA EDISON COMPANY
|
|
|
|
|
|
By:
|
/s/ Aaron D. Moss
|
|
By:
|
/s/ Aaron D. Moss
|
|
|
|
|
|
|
Aaron D. Moss
Vice President and Controller
(Duly Authorized Officer and
Principal Accounting Officer)
|
|
|
Aaron D. Moss
Vice President and Controller
(Duly Authorized Officer and
Principal Accounting Officer)
|
|
|
|
|
|
Date:
|
July 26, 2018
|
|
Date:
|
July 26, 2018
|
/s/ PEDRO J. PIZARRO
|
PEDRO J. PIZARRO
Chief Executive Officer
|
/s/ MARIA RIGATTI
|
MARIA RIGATTI
Chief Financial Officer
|
/s/ KEVIN M. PAYNE
|
KEVIN M. PAYNE
Chief Executive Officer
|
/s/ WILLIAM M PETMECKY III
|
WILLIAM M. PETMECKY III
Chief Financial Officer
|
1.
|
The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
2.
|
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ PEDRO J. PIZARRO
|
PEDRO J. PIZARRO
Chief Executive Officer
Edison International
|
|
/s/ MARIA RIGATTI
|
MARIA RIGATTI
Chief Financial Officer
Edison International
|
1.
|
The Quarterly Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
2.
|
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ KEVIN M. PAYNE
|
KEVIN M. PAYNE
Chief Executive Officer
Southern California Edison Company
|
|
/s/ WILLIAM M. PETMECKY III
|
WILLIAM M. PETMECKY III
Chief Financial Officer
Southern California Edison Company
|